. /.   WORLD TRADE  
ORGANIZATION  G/SG/Q1/NIC/4 
17 June 2008 
 
 (08-2846) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Responses to Questions Posed by CHILE
1 Regarding  
the Notification of NICARAGUA2 
 
  The following communication, dated 6 June 2008, is being circulated at the request of the 
delegation of Nicaragua.  
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Question 1 
 
 Article 27 of the new legislation states " … taking into consideratio n both the record and 
the recommendations of the investigatin g authority and public interest criteria ".  Chile would 
appreciate clarification of what is meant by "public interest criteria". 
 
Response
 
 
 The public interest criteria that Nicaragua tak es into consideration are not expressly laid down 
in any particular legal instrument.  However, Ar ticle 27 of the Central Am erican Regulations on 
Safeguard Measures provides that the Ministry or  Secretariat in charge of applying safeguard 
measures (in the case of Nicaragua, this would be th e Ministry of Development, Industry and Trade) 
may take into account, among other public interest aspects and criteria, consumer price increases and 
the extent to which domestic supply covers domestic demand. 
 
Question 2 
 
 The legislation also states that " Provisional measures shall take the form of increased 
duties, guaranteed by a security, which shall be promptly refunded … ".  Chile would also 
appreciate clarification of the concept "guaranteed  by a security".  Does this refer to a system 
used by Customs? 
 
Response  
 
 This indeed refers to a system used by Cu stoms as a financial means of guaranteeing the 
settlement of fiscal obligations, should a definitive safeguard measure be imposed at the outcome of 
the investigation.  In the absence of a definitive measure, the security must be promptly refunded if 
subsequent investigation does not determine that in creased imports have caused or threaten to cause 
serious injury to a domestic industry. 
                                                      
1 G/SG/Q1/NIC/2. 
2 G/SG/N/1/NIC/2. G/SG/Q1/NIC/4 
Page 2  
 
   The question of security covered by Article  21 of the Central American Regulations is 
governed by the Law establishing self-clearance  for imports, exports and other regimes. 
  Title IV, Powers of the Customs Authorities (Single Chapter)  
 Article 61.- The Directorate-General of Cust oms shall exercise the following powers, in 
addition to those conferred upon it by law:  (5) Ensure compliance with this Law and other le gislation governing foreign trade in respect of 
all forms of imports and exports of merchandise, the accuracy of data contained in statements or other 
representations, and the due settlement of fiscal obligations. 
 (25) Issue, subject to approval by the hi gher authorities, rules for the application of 
customs-related provisions laid down in the international treaties or ag reements to which Nicaragua is 
party. 
 
(27) Those conferred by the international treati es or agreements to which Nicaragua is party. 
  The aforementioned paragraphs of Article 61 generally encompass the powers of the customs 
authorities to monitor compliance with the provi sions of Article 21 of the Central American 
Regulations on Safeguard Measures.  The Regula tions thus empower Customs to ensure that 
provisional measures adopted in the form of increased duties are guaranteed by a security. 
 
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