WORLD TRADE  
ORGANIZATION  G/SG/Q2/PHL/9 
23 November 2009 
 (09-5825) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS  
 
Replies to Follow-up Questions from THAILAND
1 
Regarding Notifications of the PHILIPPINES2 
 
(Glass Mirrors ) 
   The following communication, dated 17 November 2009, is being circulated at the request of 
the Delegation of the Philippines.   
 
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Question 1 
 
 First, in its answer to question 1 on the effect of the suspension, the Philippines states 
that importers are exempt from paying safeguar d duties during the suspension.  We would also 
appreciate it if the Philippines could clarify whether guarantees are required during the suspension.   
 
Reply
 
 
We would like to respond that guarantees are not required during the suspension of the 
measure.    Question 2 
 
 For the answer to question 2 about the duration of the measure, the Philippines states 
that the suspension will remain in place unl ess the local producer resumes normal operation 
before the measure expires.  Does this mean th at the suspension and the underlying measure 
will both be terminated once and if the dom estic producer resumes normal operation?  How 
does the Philippines determine or define the term "normal operation"?  We note that the Philippines uses the term "normal operation" in its third answer as well.   
 
Reply
 
 
We would like to confirm that the definitive ge neral safeguard measure on glass mirrors shall 
automatically terminate and the suspension revoke d on 8 December 2009, unless extended by another 
Order.  "Normal Operation" refers to the resumpti on of production of the subject product by the local 
industry.   
                                                      
1 G/SG/Q2/PHL/6.   
2 G/SG/N/14/PHL/4/Suppl.2.   G/SG/Q2/PHL/9 
Page 2  
 
  Question 3 
 
 The Philippines' third answer pertains to the possible reinstatement of the original 
measure.  Thailand had asked whether the suspen sion could be revoked and the suspended duty 
reinstated.  The Philippines answered that the suspension "will be revoked once the industry 
resumes normal operations".  Does this mean th at, if the domestic industry were to resume 
normal operations, the suspension would be  revoked and the underlying measure also 
terminated?  We also note that, like in the Philippines' second answer, the term "normal 
operations" is used here, but in conjunction wi th "industry" rather than the "local producer".  
Our next question is therefore whether the Philippines determines or defines "normal 
operations" in both contexts in the same way?    
Reply
 
  The major manufacturer of glass mirrors in the Philippines accounts approximately for 
100 per cent of the total domestic production of said product.  Thus, in this case, normal operation 
used in conjunction with "industry" is in the same context as with the "local producer".   
 
Question 4 
 
 For answer four concerning duty reinstatement procedures, we hope that any 
procedures adopted by the Philippines are transpa rent and notified in a timely manner, in line 
with the current transparency improvements we  are striving towards in this body.   
 
Reply
 
 
 We would like to reiterate our procedures that for duty reinstatement, all interested parties 
will be notified and requested to submit thei r comments before the duty is reinstated. 
 
Question 5 
 
 Finally, on answer five, the Philippines notes th at it is not aware of any intention on the 
part of domestic industry to petition for an other extension.  If this does occur and the 
Philippines' decides to extend the measure, we hope the Philippines would consider notifying its 
decision to the WTO under the new guidelines that might be adopted by the Committee on Safeguards in the near future.   
 Reply
 
  The Philippine Government abides with S ection 17 (c) of our Republic Act 8800 the 
Philippine Safeguard Measures Act and Rule 17.3 of  its Implementing Rules and Regulations which 
provide that "The Secretary shall notify the Comm ittee on Safeguards of the WTO when applying or 
extending a definitive safeguard measure following a positive determination".   
 
 Because the Philippines' suspension was made on the basis of an Order by the Secretary 
of Trade and Industry dated 1 September 2008, we once again urge the Philippines to circulate 
a copy of that Order to the Committee on Safeguards for transparency purposes.  The 
Philippines has previously notified a copy of a similar Order for the suspension of its duty on 
Figured Glass, in document G/SG/N/14/PHL/3/Suppl.1 dated 8 January 2008.    G/SG/Q2/PHL/9 
 Page 3 
 
 
  Reply  
  We would like to inform the Committee that the Philippines had circulated in 
G/SG/N/14/PHL/4/Suppl.3, the Order by the Secretar y of the Department of Trade and Industry the 
suspension of the duty on glass mirrors.  We had initially notified the suspension last 
18 September 2008.   
   
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