WORLD TRADE  
ORGANIZATION  G/SG/N/1/TPKM/2/Suppl.2 
20 May 2005 
 (05-2045) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS, REGULATIONS AND 
ADMINISTRATIVE PROCEDURES RELATING 
TO SAFEGUARD MEASURES 
 
SEPARATE CUSTOMS TERRITORY OF 
TAIWAN, PENGHU, KINMEN AND MATSU 
 
Supplement
 
  
 The following communication, dated 11 May 2005, is being circulated at the request of the 
Delegation of the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu. 
 
_______________ 
 
 
 Pursuant to Article 12.6 of the Agreemen t on Safeguards, the Permanent Mission of the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu wishes to notify the revised 
Rules for Handling Import Relief Cases, and the ab olished Rules for Handling Import Relief Cases 
Regarding Textiles and Clothing.  The revised Articles are as follows:  
Rules for Handling Import Relief Cases:
 
 Articles 9, 13, 20 amended on 30 November 2004.  
Articles 5-1, 8, 18, 20, Chapter 4-2 (Articles 26- 7 to 26-15), Article 28 newly adopted and amended 
on 4 April 2005.  
Rules for Handling Import Relief Ca ses Regarding Textiles and Clothing:
 
 Article 29 amended on 17 November 2004.  
Abolished on 21 April 2005. G/SG/N/1/TPKM/2/Suppl.2 
Page 2  
 
 Rules for Handling Import Relief Cases (amended on 4 April 2005) 
 
Article 5-1  
 
 The term "interested parties" as referred to herein means: 
 
1. foreign producers, foreign exporters, dom estic importers or th e commercial/industrial 
associations to which they belong as major members; 
2. the government or its representative(s) of th e exporting countries or the countries of origin; 
3. the domestic producers of like products or directly competitive products or the 
commercial/industrial associations to which they belong as major members; 
4. other interested parties as identified by the Commission.  
Article 8 
 
 In the case of petition for import relief, the petitioner shall submit a written petition to the 
Ministry of Economic Affairs, setting forth the following particulars and enclosing the following 
relevant information:  1. proof that the petitioner meets the qualifications prescribed in Article 6; 2. a description of the imported goods: 
 (1) the name and import and export commodity  classification code of the goods, tariff 
code, quality, specifications, usage and other characteristics; 
 (2) the country of export, country of orig in, producer, foreign exporter, and domestic 
importer; 
3. the facts about the industry being affected: 
 (1) the production, sales, inventory, product, price, profits and losses, capacity utilization, 
and employment of the domestic industry, and their changes for the most recent 
three years prior to the petition date; 
 (2) the quantity, price and market share of imports in the domestic market for the most 
recent three years prior to the petition date; 
 (3) the quantity and price of the goods imported from the major exporting countries for 
the most recent three years prior to the petition date;  
 (4) other information which may be used to allege the fact that the industry has been 
affected; 
4. the adjustment plan and the proposed relie f measures allowing the industry to recover its 
competitiveness or to shift to another line of business.  
 
 The particulars and information which shall be  set forth or required under sub-paragraphs 2 
and 3 of the preceding paragraph may be exempted, if the petitioner has justification for not being 
able to provide the same and the Commission has so agreed.  
  The adjustment plan as referred to in sub-para graph 4 of Paragraph 1 may be submitted within 
90 days of the filing of the petition. 
 
Article 18 
 
 Unless otherwise provided in Article 19, Para graph 1, the Commission shall make a decision 
as to whether the industry has been injured with in 120 days from the day after the petitioner is 
notified of the initiation of the investigation by the Ministry of Economic Affairs.  
  G/SG/N/1/TPKM/2/Suppl.2 
 Page 3 
 
 
  The time limit referred to in the precedi ng paragraph may be ex tended by 60 days, if 
necessary, and the Commission shall notify the petitione r and the known interested parties of such an 
extension of time and the reasons for it and give public notice thereof.  
Article 20 
  In respect of a decision on whether the indus try has been injured, the Commission shall, 
within 15 days after the decision is made, prepare a letter of decision and submit it to the Ministry of 
Economic Affairs together with an investigation re port. The Ministry of Economic Affairs shall notify 
the petitioner and the known interested parties of the decision in writing and give a public notice 
thereof.  
  In case of an affirmative decision that the in dustry has been injure d, the Commission shall, 
within 30 days from the date the decision is ma de, hold a hearing on the import relief measures it 
intends to adopt, and thereafter submit to the Mi nistry of Economic Affairs a recommendation as to 
whether import relief measures shall be adopted. 
   Whenever the Commission submits a recommendation that relief measures shall not be adopted and the Ministry of Economic Affairs finds its recommendation acceptable, the Ministry of Economic Affairs shall promptly give a public notice that no relief measure will be implemented;  if 
the Ministry of Economic Affairs does not find  its recommendation acceptable, the Ministry of 
Economic Affairs shall promptly order the Commission to hold a hearing within 30 days on the 
import relief measures to be adopted, and thereaf ter submit its recommendation to the Ministry of 
Economic Affairs.    The provisions of Articles 13 through 16 shall apply mutatis mutandis  to the procedure for 
holding the hearing referred to in the preceding paragraph. 
 Chapter 4-2 Import Relief against Textiles a nd Clothing from Mainland China 
 
Article 26-7 
  The petitions filed pursuant to Paragraph 1 of Article 18 of the Act, for the investigation on 
injuries to goods industry and the application of import relief measures may be specific on the textiles 
and clothing products from Mainland China. 
  The term "textiles and clothing" as referred to herein means goods which have been so 
designated publicly by the Ministry of Economic Affairs pursuant to the Act.  The Ministry of 
Economic Affairs shall adopt import quotas as relie f measures if it has so decided, where it has, 
pursuant to these Rules, determined that the indus try has been injured in the import relief case. 
 
Article 26-8 
 
 A case of injury to the industry as referred to in the first paragraph of the preceding article is 
to be established, when there is such an increase in  the imported quantity of the textiles and clothing 
products from Mainland China, or an increase in su ch imports relative to domestic production, so as 
to cause or threaten to cause market disruption of the domestic industry producing like products or 
directly competitive products.  
 In making a determination regarding the existen ce of the market disruption of, or threat of 
market disruption to, the domestic industry as referre d to in the preceding paragraph, the volume of 
imports concerned, the effect of such imports on prices for like or directly competitive products, and G/SG/N/1/TPKM/2/Suppl.2 
Page 4  
 
 the effect of such imports on the domestic industr y producing like or directly competitive products in 
said case shall be considered together.  Article 26-9  
 As to cases of import relief cases against textiles and clothing from Mainland China, the Commission shall complete its investigation with in 90 days from the day after the petitioner is 
notified of the initiation of investigation by the Mini stry of Economic Affairs, and it shall convene a 
Commissioners Meeting to make a decision as to whet her a case of injury shall be established. When 
a decision is made that there has been injury to the industry, the Commission shall continue to make 
recommendations as to the nature and extent of rest riction to be established and the countries/regions 
to which they shall be applied. 
 
 The Commission shall, within 15 days after its decision on the import relief measures is made, prepare a letter of decision and submit to th e Ministry of Economic Affairs together with an 
investigation report. The Ministry of Economic  Affairs shall notify the petitioner and the known 
interested parties of the decision in writing, and sh all give a public notice of the decision;  in the case 
of an affirmative decision that the industry has been  injured, the Ministry of Economic Affairs shall 
notify the known Mainland China’s producers and exporters, or the re presentatives of the government 
of Mainland China.   When the Ministry of Economic Affairs deci des not to adopt any relief measures, it shall 
notify the petitioner and the known interested partie s in writing immediately and give a public notice 
thereof. 
  The time limit referred to in Paragraph 1 ma y be extended by 45 days, if necessary, and the 
extension shall be limited to one time; the Commission shall notify the petitioner and the known 
interested parties of such an extension of time a nd the reasons for it, and announce the same publicly. 
 
Article 26-10 
 
 The adoption of import relief measures and their degree shall take into account the extent of 
their effect each import relief case will have on na tional interests, the rights and interests of the 
consumers and the relevant industries, and shall be limited to the extent of curing or preventing the 
injury caused to the industry by the imports. 
 
Article 26-11 
 
 In the event that the Ministry of Economic A ffairs determines to appl y import relief measures 
in cases where a market disruption, as referred to in the preceding article, is found, it shall 
immediately request for a consultation with Mainland China. 
 
Article 26-12 
 
 Starting from the day on which the document requesting for consultation is served, the 
Ministry of Economic Affairs shall apply import quotas on the textiles and clothing products from 
Mainland China and give public notices of the said measures. Before an agreement is reached as a 
result of the consultation, the annual import quot as shall not exceed the total quantities, plus 
7.5 per cent (6 per cent for wool product categories), of such products from Mainland China during 
the 12-month period ending 2 months preceding th e month in which the document requesting for 
consultation was served. If the implementation period of the restriction measures is shorter than one 
year, the import quantities shall be calculated pro rata. 
  G/SG/N/1/TPKM/2/Suppl.2 
 Page 5 
 
 
  In the event an agreement is reached as a result of the consultation, the Ministry of Economic 
Affairs shall apply the import quotas on the text iles and clothing products from Mainland China 
pursuant to such agreement. 
 
Article 26-13 
 
 The implementation period of the import quotas as referred to in Paragraph 1 of the preceding 
article shall be started from the day the document re questing consultation is ser ved to the end of the 
same year. If the period from the day the document re questing for consultation is served to the end of 
the same year is shorter than 3 months, the impl ementation period shall be 12 months starting from 
the day the document requesting for consultation is served. 
 
 The implementation period of the restriction measu res, applied pursuant to Paragraph 1 of the 
preceding article or the preceding paragraph of th is article, shall not exceed one year unless an 
agreement is reached as a result of the consultation. 
 
Article 26-14 
  During the implementation period of the subject relief, if the textiles and clothing products 
concerned are imported via another country/region or  if another method of circumvention is used, the 
Ministry of Economic Affairs may, acting ex officio  or upon petition by the petitioner and interested 
parties, initiate an investigation and ask the Ma inland China exporters and domestic importers, as well 
as Mainland China government agency or its  representative to submit explanations. 
  In the event that the Ministry of Economic Affairs reaches an affirmative finding from the 
aforesaid investigation, it may, in accordance with th e result of the investigation, adjust the import 
quotas of Mainland China based on the quantity that is found to be of the circumvented. 
  Prior to the adjustment, the Ministry of Econom ic Affairs may enter into consultations with 
Mainland China.   The provisions of Article 26-8 shall apply mutatis mutandi s to the application procedures of 
paragraph 1. 
 
Article 26-15 
 
 Except for Article 4, Subparagraph 4 of Pa ragraph 1 and Paragra ph 3 of Article 8,  
Article 16-1, Paragraph 2 of Article17, Ar ticle 18 to Article 26, and Article 26-1 , to Article 26-6, 
articles in these Rules shall be applied mutatis mutandis to this Chapter. 
 
Article 28 
 
 If the Ministry of Economic Affairs shall, during the proceeding of investigation into the 
injury caused to the industry, find that subsid ization or dumping as provided under Article 67 or 
Article 68 of the Customs Law is involved, it shall promptly notify the Ministry of Finance and the 
petitioner.  
Rules for Handling Import Relief Ca ses Regarding Textiles and Clothing 
 Abolished on 21 April 2005 G/SG/N/1/TPKM/2/Suppl.2 
Page 6  
 
 Rules for Handling Import Relief Cases （amended on 30 November 2004 ) 
Article 9 
 Unless in any of the following situations whic h would cause the dismissal of the petition, the 
Ministry of Economic Affairs, shall, within 30 days  from the day after receiving the petition, refer the 
import relief case to the Commission for review and d ecision on whether to initiate an investigation; 
provided, however, that the time required for the petitioner to supplement information shall not be 
included in the thirty-day period: 
1. the petitioner is not qualified as required in Article 6;  or 
2. the petitioner fails to meet the requirements sti pulated in Article 8, Pa ragraph 1, and fails to 
supplement data within the period as notifie d or fails completely to supplement the 
information. 
 Regardless of whether a decision is made to in itiate an investigation or not, the Ministry of 
Economic Affairs shall immediately notify the petitio ner and known interested parties in writing and 
give a public notice thereof. 
Article 13 
 The Commission shall give public notice in adva nce of the date set forth for each hearing. 
 The Commission shall at the same time notif y the petitioner and the known interested parties 
to attend the hearing. 
Article 20 
 In respect of a decision on whether the indus try has been injured, the Commission shall, 
within 15 days after the decision is made, prepare a letter of decision and submit to the Ministry of 
Economic Affairs together with an investigation re port. The Ministry of Economic Affairs shall notify 
the petitioner of the decision in writing and give a public notice thereof. 
 In case of an affirmative decision that the in dustry has been injure d, the Commission shall, 
within 30 days from the date the decision is ma de, hold a hearing on the import relief measures it 
intends to adopt, and thereafter submit to the Mi nistry of Economic Affairs a recommendation as to 
whether import relief measures shall be adopted. 
 Whenever the Commission submits a recommendation that relief measures shall not be 
adopted and the Ministry of Economic Affairs finds its recommendation acceptable, the Ministry of 
Economic Affairs shall promptly give a public notice that no relief measure will be implemented;  if 
the Ministry of Economic Affairs does not find  its recommendation acceptable, the Ministry of 
Economic Affairs shall promptly order the Commission to hold a hearing within 30 days on the import relief measures to be adopted, and thereaf ter submit its recommendation to the Ministry of 
Economic Affairs. 
 The provisions of Articles 13 through 16 shall apply mutatis mutandis  with respect to the 
procedure for holding the hearing referred to in the preceding paragraph. 
Rules for Handling Import Relief Ca ses Regarding Textiles and Clothing 
(amended on 17 November 2004 ） 
Article 29  (deleted)  
 
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