G/SG/N/7/PHL/12  
G/SG/N/8/PHL/13  
G/SG/N/11/PHL/14  
8 January  2021 
(21-0299) Page: 1/7 
Committee on Safeguards  Original:  English  
 
  
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT  
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL  
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6  
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
PHILIPPINES  
Motor vehicles  
The following communication, dated 7 January 2021, is being circulated at the request of the 
delegation of t he Philippines.1 
 
_______________  
 
 
Further to G/SG/N/6/PHL/1 5 dated 1 8 February 2020 and pursuant to Article  12 and Article  9 of the 
WTO Agreement on Safeguards, the Permanent Mission of the Philippines to the WTO hereby notifies 
the Committee on Safegua rds of its preliminary determination findings on the investigation on the 
importation of motor vehicles  from various countries, and before taking a provisional safeguard 
measure under Article 6 of the Safeguards Agreement.  
1  PROVIDE THE PRECISE DESCRIPTION OF THE PRODUCTS INVOLVED  
Motor vehicles classified under AHTN Codes 8703 (passenger cars/vehicles ), 8704.21.19 and 
8704.21.29  (light commercial vehicles ). 
2  SPECIFY THE PROPOSED PROVISIONAL SAFEGUARD MEASURE  
The provisional safeguard measure will take the form of a cash bond amounting to PhP  70,000/unit 
for passenger cars/vehicles  under AHTN Code 8703 and PhP 110,000/unit for light commercial 
vehicles  under AHTN Code 8704.21.19 and 8704.21.29 , for a period of 200  days from the date of 
issuance by the Bureau of Customs (BOC) of the relevant Customs Memorandum Order (CMO) or 
fifteen (15) days after the publication of the DTI Order in two (2) newspapers of general circulation, 
whichever comes earlier . The Order was signed by the Secretary of the DTI on 2 9 December 2020. 
Imported passenger cars/vehicles that are described as completely knocked -down (CKD), semi 
knocked -down (SKD), and used vehicles are excluded from the coverage of the provisional duty . 
Also excluded are special purpose vehicles such as ambulance, hearse, electric motor vehicles, and 
 
1 A copy of the DTI Administrative Order has been submitted electronically. To consult this document 
please contact Ms Richards ( anne.richards@wto.org ) or Ms Naville ( delphine.naville@wto.org ) of the Rules 
Division.  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 2 - 
  luxury cars that have high -end features that go above and beyond the average necessities 
amounting to more than US$25,000 based on FOB price.  
Likewise, import ed light commercial vehicles that are described as completely knocked -down (CKD), 
semi knocked -down (SKD), and used vehicles are excluded from the coverage of the provisional 
duty. Also excluded are special purpose vehicles such as ambulance, hearse, e -motor vehicles, and 
luxury cars that have high -end features that go above and beyond the average necessities 
amounting to more than US$28,000 based on FOB price.  
Imports originating from developing countries listed in Annexes  A and B shall not be subject to t he 
provisional safeguard measure.  
3  SPECIFY THE PROPOSED DATE OF INTRODUCTION OF THE PROVISIONAL SAFEGUARD 
MEASURE  
The provisional safeguard measure is scheduled to enter into force upon issuance by the Bureau of 
Customs (BOC) of the relevant Customs Memoran dum Order (CMO) or fifteen (15) days after the 
publication of the DTI Order in two (2) newspapers of general circulation, whichever comes earlier . 
The Order signed by the Secretary of the DTI was published in two newspapers of general circulation 
on 5 Janu ary 2021. 
4  EXPECTED DURATION OF THE PROVISIONAL SAFEGUARD MEASURE, IF ANY DECISION 
ON THE DURATION OF THE SAFEGUARD MEASURE HAS BEEN MADE  
The provisional safeguard measure will be in force for two  hundred  (200) days.  
5  PROVIDE THE BASIS FOR:  
(a) Making a preliminary determination, as provided for in Article  6, that increased 
imports have caused or are threatening to cause serious injury  
A review of the evidence made available to DTI shows:  
1) That the volume of imports of:  
Passenger cars/vehicles  
• In absolute terms, increased from about 154,000 units in 2014 to 207,000 units in 
2018 or equivalent to 35 % growth rate . In 2019, imports declined by 16 % but 13 % 
higher than the pre -surge level . In 2020, (Jan. to Oct.) imports recorded at 88,959 
units which is 51 % of the 2019 level.  
• In relative terms, the share of imported motor vehicles to domestic production 
continuously increase from 295 % (2014) to 349 % (2016) but declined by 316 % in 
2017. In 2018, the share of imports vis -à-vis domestic production  increased to 
349% but dropped to 260 % in 2019 . The ratio of imports to domestic production 
exceeded domestic production during the POI.  
Light commercial vehicles  
• In absolute terms, showed an increasing trend during the period of investigation . 
From 17,2 73 units in 2014, imports recorded a 4 % increase in 2015, 36 % in 2016, 
54% in 2017 and 38 % in 2018 . In 2019, imports grew by another 28 % from a year 
ago. In 2020 (Jan. to Oct.), imports accounted for 27,596 units which is 42 % of 
2019 level.  
• In relative terms , the share of imported motor vehicles to domestic production 
continuously increase from 866 % (2014) to 1,745 % (2019).  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 3 - 
  2) That the increased imports caused serious injury to the domestic industry as follows:  
Passenger cars/vehicles  
• Domestic sales relative to the Philippine market ranges from 22 % to 25 % share 
during the POI, as imports ate up more than 70 % of the market . Share of imports 
to total Philippine market captured 75 % to 78% of the market during the POI.  
Light commercial vehicles  
• Domestic sales to the Philippine market contracted from 18 % in 2014 to 11 % in 
2017. In 2018, the share of the domestic industry declined to 7 % and 5 % in 2019 . 
On the other hand, the s hare of imports to the total Philippine market showed a 
steady increase during the POI, i.e. 85 % in 2015, 86 % in 2016, 89 % in 2017, 93 % 
in 2018, and 95 % in 2019.  
3) That increased imports were the substantial cause of serious injury to the domestic industry 
which was caused by increased imports based on the following:  
Passenger cars/vehicles  
• The passenger cars/vehicles are being imported in increased quantities from various 
countries (i.e. 35 % growth rate) during the POI (2014 to 2018) . The share of 
imports relative to production showed that imports exceeded domestic production 
from 295 % (2014) t o 349 % (2018).  
• Despite the expansion of the apparent market from 2014 to 2017, the domestic 
industry was not able to take advantage of the growth that occurred during the 
period . The market share of domestic sales contracted from a range of 22 % to 25% 
share, while the share of imports captured more than 70 % of the market.  
Light commercial vehicles  
• The Philippine imports of light commercial vehicles (LCV) significantly increased 
during the POI from 17,273 units in 2014 to 51,969 units in 2018 . Likewise, the 
share of imports relative to domestic production significantly increased from 645 % 
in 2015 to 1,364 % in 2018.  
• Despite the increasing total apparent consumption for the said product during the 
POI (i.e. 21,014 units in 2015 to 55,664 units in 2 018), the share of the domestic 
industry shrank from 18 % in 2014 to 7 % in 2018 while imports accounted for an 
increasing proportion at about 82 % (2014) to 93 % (2018) of the Philippine market . 
The domestic industry lost sales while the market is growing.  
(b) Determining that there are critical circumstances where delay would cause damage 
which it would be difficult to repair  
There are factors that contributed to the existence of critical circumstances, such as the 
decline in the number of manufacturers/assem blers in the country.  
The government has been actively promoting the local production of motor vehicles in the 
country as local demand increase s. However, despite government support, the decline in the 
number of manufacturers/assemblers in the country has been experienced.  
6  OFFER OF CONSULTATIONS  
The Government of the Philippines offers consultations on the provisional safeguard measures.  
  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 4 - 
  ANNEX A  
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS TERRITORIES  EXCLU DED  
FROM THE IMPOSITION OF THE PROVISIONAL SAFEGUARD MEASURE  
ON THE IMPORTATION OF PASSENGER CARS/VEHICLES  
East & Southern Africa  West Africa  North Africa  South Asia  
Angola  
Botswana  
Burundi  
Comoros  
Congo Dem. Rep. 
Djibouti  
Eritrea  
Eswatini  
Ethiopia  
Kenya  
Lesotho  
Madagascar  
Malawi  
Mauritius  
Mozambique  
Namibia  
Reunion  
Rwanda  
Seychelles  
Somalia  
South Africa  
Sudan  
Tanzania  
Uganda  
Zambia  
Zimbabwe  Benin  
Burkina Faso  
Cameroon  
Cape Verde  
Central African Rep . 
Chad 
Congo, Rep.  
Cote d'Ivoire  
Equatorial Guinea  
Gabon  
Gambia, The  
Ghana  
Guinea  
Guinea, Bissau  
Liberia  
Mali 
Mauritania  
Niger  
Nigeria  
Sao Tome & Principe  
Senegal  
Sierra Leone  
Togo Algeria  
Egypt, Arab Rep.  
Libya 
Morocco  
Tunisia  Afghanistan  
Bangladesh  
Bhutan  
British Indian Ocean 
Territory  
East Timor  
India 
Maldives  
Nepal  
Pakistan  
Sri Lanka  
 
  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 5 - 
  Europe & Central Asia  Middle East  Americas  East Asia & Pacific  
Albania  
Armenia  
Azerbaijan  
Belarus  
Bosnia &  
Herzegovina  
Bulgaria  
Croatia  
Cyprus  
Czech Republic  
Estonia  
Georgia  
Greenland  
Hungary  
Kazakhstan  
Kyrgyz Republic  
Latvia  
Lithuania  
Macedonia, FYR  
Malta  
Moldova  
Poland  
Romania  
Russian Federation  
Slovakia  
Slovenia  
Tajikistan  
Turkey  
Turkmenistan  
Ukraine  
Uzbekistan  
Yuguslavia, Fed . Rep. Bahrain  
Iran, Islamic Rep.  
Iraq 
Israel  
Jordan  
Kuwait  
Lebanon  
Oman  
Qatar  
Saudi Arabia  
Syrian Arab Rep.  
United Arab Emirates  
West Bank & Gaza  
Yemen, Rep.  Anguilla  
Antigua and Barbuda  
Argentina  
Aruba  
Bahamas  
Barbados  
Belize  
Bermuda  
Bolivia  
Brazil  
British Virgin Islands  
Cayman Islands  
Chile 
Colombia  
Costa Rica 
Cuba 
Dominica  
Dominican Rep . 
Ecuador  
El Salvador  
Falkland Is. (Malvinas)  
French Guiana  
Grenada  
Guadaloupe  
Guatemala  
Guyana  
Haiti 
Honduras  
Jamaica  
Martinique  
Mexico  
Montserrat  
Netherland Antilles  
Nicaragua  
Norfolk Islands  
Panama  
Paraguay  
Peru 
Puerto Rico  
St. Helena  
St. Kitts & N evis 
St. Lucia 
St. Pierre & Miquelon  
St. Vincent & the  
Grenadines  
Suriname  
Trinidad & Tobago  
Turks & Caicos Is.  
Uruguay  
US Virgin Islands  
Venezuela  American Samoa  
Brunei Darussalam  
Cambodia  
Christmas Is.  
Chinese Taipei  
Cocos (Keeling) Is.  
Cook Is.  
Fiji 
French Polynesia  
Guam  
Hong Kong, China  
Johnston Is.  
Kiribati  
Korea, Dem. Rep. 
Lao, PDR  
Macau, China  
Malaysia  
Marshall Islands  
Micronesia, Fed . Sts. 
Midway Is.  
Mongolia  
Myanmar  
Nauru  
New Caledonia  
Niue 
Northern Marianas Is.  
Palau  
Papua New Guinea  
Pitcaim Is.  
Samoa  
Singapore  
Solomon Islands  
Tokelau  
Tonga  
Tuvalu  
Vanuatu  
Viet Nam  
Wake Is.  
Wallis & Futuna Is.  
 
  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 6 - 
  ANNEX B  
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS TERRITORIES  
EXCLUDED FROM THE IMPOSITION OF THE PROVISIONAL SAFEGUARD MEASURE  
ON THE IMPORTATION OF LIGHT COMMERCIAL VEHICLES  
East & Southern Africa  West Africa  North Africa  South Asia  
Angola  
Botswana  
Burundi  
Comoros  
Congo Dem. Rep. 
Djibouti  
Eritrea  
Eswatini  
Ethiopia  
Kenya  
Lesotho  
Madagascar  
Malawi  
Mauritius  
Mozambique  
Namibia  
Reunion  
Rwanda  
Seychelles  
Somalia  
South Africa  
Sudan  
Tanzania  
Uganda  
Zambia  
Zimbabwe  Benin  
Burkina Faso  
Cameroon  
Cape Verde  
Central African Rep . 
Chad 
Congo, Rep.  
Cote d'Ivoire  
Equatorial Guinea  
Gabon  
Gambia, The  
Ghana  
Guinea  
Guinea, Bissau  
Liberia  
Mali 
Mauritania  
Niger  
Nigeria  
Sao Tome & Principe  
Senegal  
Sierra Leone  
Togo Algeria  
Egypt, Arab Rep.  
Libya 
Morocco  
Tunisia  Afghanistan  
Bangladesh  
Bhutan  
British Indian Ocean  
Territory  
East Timor  
India 
Maldives  
Nepal  
Pakistan  
Sri Lanka  
 
  G/SG/N/7/PHL/12 • G/SG/N/8/PHL/13 • G/SG/N/11/PHL/14  
- 7 - 
  Europe & Central Asia  Middle East  Americas  East Asia & Pacific  
Albania  
Armenia  
Azerbaijan  
Belarus  
Bosnia &  
Herzegovina  
Bulgaria  
Croatia  
Cyprus  
Czech Republic  
Estonia  
Georgia  
Greenland  
Hungary  
Kazakhstan  
Kyrgyz Republic  
Latvia  
Lithuania  
Macedonia, FYR  
Malta  
Moldova  
Poland  
Romania  
Russian Federation  
Slovakia  
Slovenia  
Tajikistan  
Turkey  
Turkmenistan  
Ukraine  
Uzbekistan  
Yuguslavia, Fed . Rep. Bahrain  
Iran, Islamic Rep.  
Iraq 
Israel  
Jordan  
Kuwait  
Lebano n 
Oman  
Qatar  
Saudi Arabia  
Syrian Arab Rep.  
United Arab Emirates  
West Bank & Gaza  
Yemen, Rep.  Anguilla  
Antigua and Barbuda  
Argentina  
Aruba  
Bahamas  
Barbados  
Belize  
Bermuda  
Bolivia  
Brazil  
British Virgin Islands  
Cayman Islands  
Chile 
Colombia  
Costa Rica  
Cuba 
Dominica  
Dominican Rep . 
Ecuador  
El Salvador  
Falkland Is. (Malvinas)  
French Guiana  
Grenada  
Guadaloupe  
Guatemala  
Guyana  
Haiti 
Honduras  
Jamaica  
Martinique  
Mexico  
Montserrat  
Netherland Antilles  
Nicaragua  
Norfolk Islands  
Panama  
Paraguay  
Peru 
Puerto Rico 
St. Helena  
St. Kitts & N evis 
St. Lucia 
St. Pierre & Miquelon  
St. Vincent & the  
Grenadines  
Suriname  
Trinidad & Tobago  
Turks & Caicos Is.  
Uruguay  
US Virgin Islands  
Venezuela  American Samoa  
Brunei Darussalam  
Cambodia  
Christmas Is.  
Chinese Taipei  
Cocos (Keeling) Is.  
Cook Is.  
Fiji 
French Polynesia  
Guam  
Hong Kong, China  
Indonesia  
Johnston Is.  
Kiribati  
Korea, Dem. Rep. 
Korea, Rep.  
Lao, PDR  
Macau, China  
Malaysia  
Marshall Islands  
Micronesia, Fed . Sts. 
Midway Is.  
Mongolia  
Myanmar  
Nauru  
New Caledonia  
Niue 
Northern Marianas Is.  
Palau  
Papua New Guinea  
People 's Republic of China  
Pitcaim Is.  
Samoa  
Singapore  
Solomon Islands  
Tokelau  
Tonga  
Tuvalu  
Vanuatu  
Viet Nam  
Wake Is.  
Wallis & Futuna Is.  
 
__________