WORLD TRADE
ORGANIZATIONG/SG/N/1/TPKM/2
10 October 2002
(02-5462)
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
The following communication, dated 7 October 2002, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
_______________
Pursuant to Article 12.6 of the Agreement 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 revised Rules for Handling Relief Cases Regarding Textiles
and Clothing.  The revised Articles are as follows:
Rules for Handling Import Relief Cases:
1. Chapter 4-1(Articles 26 bis to 26 septies ), Article 28 bis newly adopted on Feb. 15,2002;
2. Article 16 bis newly adopted and Article 26 quater  amended on Jul.31, 2002.
3. Article 13 amended and Article 16, 27 deleted on Sep. 14, 2002.Rules for Handling Relief Cases Regarding Textiles and Clothing:
1. Chapter 4-1(Articles 27 bis to 27 septies ) newly adopted on Feb. 15, 2002;
2. Article 13 amended and Article 28 deleted on Aug. 07, 2002.G/SG/N/1/TPKM/2
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Rules for Handing Import Relief Cases
Promulgated on Jun.1, 1994Amended on Dec. 30, 1998
Amended on Jun. 21, 2000Amended on Feb. 15, 2002
Amended on Jul. 31, 2002
Amended on Sep. 04, 2002
(In case of any discrepancy between the Chinese and English texts of these Rules, the Chinese text
shall govern.)
Chapter 1  General Provisions
Article 1
These Rules are prescribed in accordance with the provisions of Article 18, paragraph 3 of the
Foreign Trade Act (hereafter referred to as “the Act”).
Article 2
The term “import relief case” as referred to herein means a case in which application has been
made for investigation into the injury caused to an industry and for import relief pursuant to
Article 18, Paragraph 1 of the Act.
A case of injury to the industry as referred to in the preceding paragraph is to be established,
when there is an increase in the imported quantity of the product concerned, or an increase in such
imports relative to domestic production, so as to cause or threaten to cause serious injury to the
domestic industry producing like products or directly competitive products.
The term “serious injury” as referred to in  the preceding paragraph means an obvious and
comprehensive injury to the domestic industry; the term “threat of serious injury” means a serious
injury not yet occurred but clearly imminent.
Article 3
In making a determination regarding the existence of serious injury, the amount and rate of
increase in imports of the product concerned in absolute terms and relative to domestic productionshall be considered altogether, and consideration shal l also be given to the following factors in respect
of the domestic industry concerned and changes thereof:
1. market share,
2. sales,
3. production,
4. productivity,5. capacity utilization,
6. profits and losses,
7. employment,
8. other relevant factors.
In making a determination regarding the existence of a threat of serious injury, in addition to
the factors and their trend of changes as mentioned in the preceding paragraph, the productionG/SG/N/1/TPKM/2
Page 3
capacity and export capability of the major exporting countries shall be considered so as to evaluate
whether the said industry is to be seriously injured if the relief measure is  not adopted.
The Ministry of Economic Affairs, in determin ing the injury in accordance with the preceding
two paragraphs, shall consider all evidence or info rmation acquired in the investigation.  When factors
other than increased imports are causing injury to the domestic industry at the same time, such injury
shall not be attributed to increased imports.
Article 4
For those import relief cases in which the existence of injury or threat thereof has been
established pursuant to these Rules, the Ministry of Economic Affairs may adopt the following relief
measures:
1. adjusting the tariffs,
2. imposing import quotas,
3. providing financing guarantee, subsidy for technological research and development,
assistance for changing the line of business, professional training or other adjustmentmeasures or assistance.
The measures as referred to in the sub-paragraphs 1 and 2 of Paragraph 1 shall not be adopted
simultaneously.
The measure as referred to in sub-paragraph 1 of Paragraph 1 shall be implemented pursuant
to the provisions of the Customs Law upon the Ministry of Finance being notified by the Ministry of
Economic Affairs.  The measure as referred to in sub-paragraph 2 may be implemented based on the
agreement made between the Ministry of Economic Affairs and the exporting countries regarding
relevant matters.  The measure as referred to in sub-paragraph 3, when related to agriculturalproducts, shall be implemented by the Council of Agriculture of the Executive Yuan.  Other relief
measures shall be implemented by the Ministry of Economic Affairs in conjunction with the
government agencies concerned.
Article 5
The term “domestic industry” as referred to in these Rules means the domestic producers of
like products or directly competitive products whose collective output of the products constitutes, as
determined by the International Trade Commission of the Ministry of Economic Affairs (hereafter
referred to as the “Commission”), a major proportion of the total domestic production of those
products.
The term “like products” as referred to herein means products having the same characteristics
and are composed of the same materials; the term “directly competitive products” means products
which, despite the differences in their characteristics or composing materials, are directly substitutable
products in terms of their utility purpose and commercial competitiveness.
Article 6
With respect to an import relief case, the Ministry of Economic Affairs may, upon the petition
by the relevant authority, the injured domestic industry, the association representing the injured
domestic industry or the relevant entities, refer th e case to the Commission to proceed with the injury
investigation.G/SG/N/1/TPKM/2
Page 4
Article 7 
Unless otherwise provided by these Rules, a decision of the Commission shall be taken by a majority
of the attending Commissioners at a meeting attended by a majority of the Commissioners.
Chapter 2  Petition
Article 8
In a 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 followingrelevant information:
1. proof that the petitioner meets the qualifications prescribed in Article 6;
2. a description of the imported goods:
(1) the name and standard classification code of the goods, tariff code, quality,
specifications, usage and other characteristics;
(2) the country of export, country of origin, producer, exporter, and importer;
3. the facts on 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 demonstrate the fact that the industry is
being affected;
4. the adjustment plan and the proposed relief 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 waived, if the petitioner has justification for not being ableto provide the same and the Commission has so agreed.
The adjustment plan as referred to in sub-paragraph 4 of Paragraph 1 may be submitted within
90 days of the filing of the petition.
Article 9
Unless in any of the following situations which 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 decision 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 stipulated in Article 8, Paragraph 1, and fails to
supplement data within the period as notified or fails completely to supplement the
information.G/SG/N/1/TPKM/2
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Regardless of whether a decision is made to initiate an investigation or not, the Ministry of
Economic Affairs shall immediately notify the petiti oner and known interested parties in writing and
publish such a decision in the Gazette of the Ministry of Economic Affairs.
Chapter 3   Investigation Into Injury Caused To The Industry
Article 10
Where the Commission investigates into an import relief case, the Chairperson of the
Commission shall designate one or two Commissioners to be responsible for handling the case and,
where necessary, request the relevant agency to assign staff or commission scholars and experts in therelevant fields on a case-by-case basis to assist in the investigation.
Article 11
The Commission, when conducting investigation in to an import relief case, shall comply with
the following:
1. it shall review the information provided by the petitioner and the interested parties, and may
assign staff to conduct on-site verification, and when necessary, may require the provision of
additional relevant information; and
2. it shall hold hearings.
The petitioner or interested parties shall provid e information according to the requirements of
the Commission; if such information is not prov ided, the Commission may proceed to examine the
case based on the information available.
Article 12
The Commission shall permit public access to the information provided by the petitioner or
interested parties, except where a request with just ification has been made for keeping the information
confidential.
With respect to the request for confidentialit y referred to in the preceding paragraph, the
Commission may require provision of a summary which can be made public; if the request for
provision of a summary is refused without ju stification, the Commission may disregard the said
information.
Article 13
The Commission shall give public notice in advance of the date set forth for each hearing and
shall publish such notice in the government gazette or by other adequate means.
The Commission shall at the same time notify the petitioner and the known interested parties
to attend the hearing.
Article 14
Application to attend a hearing may be submitted to the Commission in advance of the date
set forth for a specific hearing.  The applicant may present its substantive opinions relating to the casein writing to the Commission prior to a specific hearing.G/SG/N/1/TPKM/2
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Article 15
The Commission may, prior to the formal holding of a specific hearing, convene a meeting
relating to procedural matters to decide on the order of presentations, the time allocated to each
presentation, and other relevant matters.
Each hearing shall be presided over by the one or more Commissioners designated by the
Chairperson of the Commission pursuant to Article 10.
Article 16  (deleted)Article 16 bis
If the Commission, in its preliminary investigation of a case, determines that there is clear
evidence that increased imports have caused or are threatening to cause serious injury to the domestic
industry producing like products or directly competitive products, and that the situation is critical,
such that delay would cause damage that would be difficult to repair , the Commission may make a
proposal for a provisional increase of the tariffs before its final determination on the existence of theinjury.  The said proposal shall be made within 70 days from the next day following the notification
by the Ministry of Economic Affairs to the petitioner on the initiation of the investigation.
The Commission shall submit, within ten days, to the Ministry of Economic Affairs the
proposal referred to in the preceding paragraph fo r the provisional increase of tariffs.  Upon the
Ministry’s adoption of the said proposal, the Ministry shall consult with the relevant competent
authorities within ten days and then submit the proposal to Executive Yuan for approval.  The
implementation period shall not exceed 200 days and shall be counted in the implementation period as
prescribed in Article 23.
The provisional measures referred to in the preceding paragraph shall terminate when the
Ministry of Economic Affairs gives a public notice stating either that the import relief measures are
applied or that the injury does not exist.
The tariffs imposed under the provisional measures may be substituted and guaranteed by
government bonds or other securities approved by the Ministry of Finance of equivalent amount.
When the Ministry of Economic Affairs gives a public notice that the market disruption does not
exist, the tariffs collected under the provisional measures shall be refunded or the guarantees be
waived.  When the Ministry gives a public notice on the application of import relief measures, the
tariffs imposed under the provisional measures shall be fully paid in cash and the guarantees be
waived thereupon
Article 17
Having completed the investigation with respect to an import relief case, the Commission
shall convene a Commissioners Meeting to decide whether the domestic industry has been injured.
The decision referred to in the preceding paragraph shall be made by at least two thirds of the
attending Commissioners at a meeting attended by at least two thirds of the Commissioners.
Article 18
Unless otherwise provided in Article 19, Paragraph 1, the Commission shall make a decision
as to whether the industry has been injured within 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
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The time limit referred to in the preceding paragraph may be extended by 60 days, if
necessary, the Commission shall notify the petitioner of such extension of time and give public notice
thereof.
Article 19
With respect to an import relief case for perishable agricultural products where the serious
injury would be difficult to cure if relief measures are not adopted in time, the Ministry of Economic
Affairs shall, within 20 days from the day following  the receipt of the petition, refer the case to the
Commission for review as to whether or not to initiate an investigation, and shall also apply Article 9
mutatis mutandis  with respect to the procedures regarding supplementation, dismissal, notification
and giving public notice.
When an investigation is to be initiated, the Commission shall make a decision as to whether
the industry has been injured or not within 70 days from the day after the petitioner is notified of the
initiation of the investigation by the Ministry of Economic Affairs.
The perishable agricultural products referred to in the preceding paragraph shall be
determined by the competent central agricultural authority on a case-by-case basis.
Article 20
In respect of a decision on whether the industry 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 report.  The Ministry of Economic Affairs shall
notify the petitioner of the decision in writing and publish the decision in the Gazette of the Ministry
of Economic Affairs.
In case of an affirmative decision that the industry has been injured, the Commission shall,
within 30 days from the date the decision is made, hold a hearing on the import relief measures it
intends to adopt, and thereafter submit to the Ministry 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 Commi ssion to hold a hearing within 30 days on the
import relief measures to be adopted, and thereafter submit its recommendation to the Ministry ofEconomic 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.
Article 21
The Commission’s recommendation to the Ministry of Economic Affairs for adopting or not
adopting relief measures shall be made by at least two thirds of the attending Commissioners at a
meeting attended by at least two thirds of the Commissioners.G/SG/N/1/TPKM/2
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Chapter 4  Import Relief
Article 22
After the Ministry of Economic Affairs has agreed to the Commission’s recommendation to
adopt import relief measures, it shall, except for the adoption of the relief measures as provided inArticle 4, sub-paragraph 1 of Paragraph 1, which shall be dealt with in accordance with the relevant
provisions of the Customs Law, decide within 60 days on the relief measures which shall be adopted
ex officio  or in consultation with the government agencies concerned; thereafter, it shall give public
notice of and implement such relief measures and report to the Executive Yuan for recordal.
The Ministry of Economic Affairs may, if necessary, notify and consult with the interested
countries before making the decision referred to in the preceding paragraph.
Article 23
The implementation of import relief measures sh all take into account the effect each import
relief case will have on national economic interests, the rights and interests of the consumers and therelevant industries, and shall be limited to the scope of curing or preventing the injury caused to the
industry by the import. The period of implementation shall not exceed 4 years.
Article 24
If the cause for implementing import relief measures ceases to exist or if there is a change in
circumstances after the implementation of the measures, the petitioner or interested parties may file a
request, to the Ministry of Economic Affairs for te rmination or modification of the relief measures
with concrete reasons and accompanied by evidence.
The request referred to in the preceding paragraph shall be submitted at the latest within 90
days prior to the expiration of the period of implementation of the measures.
With respect to the request referred to in Paragraph 1, the Commission shall conduct an
investigation according to the procedure provided  in Chapter III and, upon the making of a decision
on whether to recommend termination or modification of relief measures, submit the recommendation
to the Ministry of Economic Affairs.  If the Ministry finds the Commission’s recommendation to be
acceptable, it shall promptly give a public notice of termination or modification of the measures.
Article 25
If the petitioner considers that there is a need to extend the period of implementation of the
import relief measures, it may petition to the Ministry of Economic Affairs within 120 days prior to
the expiration of the period of implementation of the measures at the latest, for extending the relief
measures with concrete reasons for the need to extend the period of implementation and a description
of the said industry’s adjustment performance and plan, and accompanied by evidence.
The Ministry of Economic Affairs shall, within 90 days from the date following the day on
which it receives the petition for extension, make a decision as to whether the relief shall be extended,
and give a public notice on the measures implemented and the period of extension.  The provisions of
Chapter II through IV shall apply mutatis mutandis with respect to the procedure for handling the
same.G/SG/N/1/TPKM/2
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The extent of relief of the extended measures referred to in Paragraph 1 shall not exceed that
of the original measures.  The period of extension shall not exceed four years, and the extension shall
be limited to one time.
Article 26
The Commission shall prepare an annual review report on the results and effects of the
implementation of the relief measures adopted. If it believes that the cause for implementing the said
measures have extinguished or that there is a change in circumstances, it shall recommend the
Ministry of Economic Affairs to terminate or modify the measures.  If the Ministry of Economic
Affairs finds its recommendation acceptable, the Ministry of Economic Affairs shall promptly give a
public notice of termination or modification of the measures.
Prior to the preparation of the annual review report, the Commission shall hold a hearing.
The provisions of Articles 13 through 16 shall apply mutatis mutandi s with respect to the procedure
for holding the relevant hearing.
Chapter 4 -1 Import Relief against Products from Mainland China
Article 26 bis
The petitions filed pursuant to Paragraph 1 of Article 18 of the Act, for the investigation on
injuries to an industry and the application of import relief measures, may be specific on the productsfrom Mainland China.
A case of injury to the industry as referred to in the preceding paragraph is to be established,
when there is an increase in the imported quantity of the product from Mainland China or an increase
in such imports relative to domestic production, so as to cause or threaten to cause market disruptionof the domestic industry producing like products or directly competitive products.
Article 26 ter
In making a determination regarding the existence of the market disruption of, or threat of
market disruption to, the domestic industry as referred to in the preceding article, the volume of
imports concerned, the effect of such imports on prices for like or directly competitive products, and
the effect of such imports on the domestic industry producing like or directly competitive products in
said case shall be considered together.
Article 26 quater
If the Commission, in its preliminary investigation of a case, determines that there is clear
evidence that increased imports have caused or are threatening to cause market disruption to the
domestic industry producing like products or directly competitive products, and that the situation is
critical, such that delay would cause damage that would be difficult to repair, the Commission may
make a proposal for a provisional increase of the tariffs before its final determination on the existenceof the market disruption.  The said proposal shall be made within 70 days from the next day following
the notification by the Ministry of Economic Affairs to the petitioner on the initiation of the
investigation.
The Commission shall submit, within ten days, to the Ministry of Economic Affairs the
proposal referred to in the preceding paragraph fo r the provisional increase of tariffs.  Upon the
Ministry’s adoption of the said proposal, the Ministry shall consult with the relevant competentG/SG/N/1/TPKM/2
Page 10
authorities within ten days and then submit the proposal to Executive Yuan for approval.  The
implementation period shall not exceed 200 days and shall be counted in the implementation period as
prescribed in Article 23.
The provisional measures referred to in the preceding paragraph shall terminate when the
Ministry of Economic Affairs gives a public notice stating either that the import relief measures are
applied or that the market disruption does not exist.
The tariffs imposed under the provisional measures may be substituted and guaranteed by
government bonds or other securities approved by the Ministry of Finance of equivalent amount.
When the Ministry of Economic Affairs gives a public notice that the market disruption does not
exist, the tariffs collected under the provisional measures shall be refunded and/or the guarantees bewaived.  When the Ministry gives a public notice on the application of import relief measures, the
tariffs imposed under the provisional measures shall be fully paid in cash and the guarantees be
waived thereupon.
Article 26 quinguies
In the event that a member of the World Trade Organization (hereinafter “WTO”) deals with
import relief cases relating to products imported from Mainland China and, as a result, there is a
significant trade diversion to the market of this country or a threat thereof, the Commission may
initiate an investigation and submit the investigation report to the Ministry of Economic Affairs.
The Ministry of Economic Affairs may consult with the interested WTO members and the
relevant competent authorities in order to apply measures to the extent necessary to remedy or prevent
the aforesaid trade diversion.
The measures referred to in the preceding two paragraphs shall terminate within thirty days
after the causes of the trade diversion cease to exist.  If there is any change of circumstances after the
application of the said measure, the Commission shall, after investigation, submit a report to the
Ministry of Economic Affairs to decide whether to terminate, modify or continue the measures.
Article 26 sexies
In determining whether there is a significant trade diversion or a threat thereof, overall
consideration shall be given to the following factors:
1. the domestic market share of the products from Mainland China;
2. the nature or level of the measures applied or to be applied by the WTO members in the cases
of import relief relating to the products imported from Mainland China;
3. the quantities of products imported into Taiwan from Mainland China due to the measures
mentioned in the preceding sub-paragraph;
4. the condition of demand and supply in the domestic market for the like products or directly
competitive products;
5. the extent of the export of the products from Mainland China to the WTO members as
referred to in sub-paragraph 2 and the trade diversion to this country.
Article 26 septies
Except for Subparagraph 4 of Paragraph 1 and Paragraph 3 of Article 8 regarding the
adjustment plan of the written petition and Paragraph 1 of Article 22 regarding the adoption of import
relief, articles in these Rules shall be applied mutatis mutandis to this Chapter.G/SG/N/1/TPKM/2
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Chapter 5  Supplement Provisions
Article 27  (deleted)
Article 28
If the Ministry of Economic Affairs shall, during the proceeding of investigation into the
injury caused to the industry, find that subsidization or dumping as provided under Article 46 or
Article 46-1 of the Customs Law is involved, it shall promptly notify the Ministry of Finance and the
petitioner.
Article 28 bis
The matters regarding the investigation, determination, consultation, the relief measures, etc.
which are not provided for in the Act or these Rules shall be handled in accordance with the
applicable international agreements and customs.
Article 29
These Rules shall be implemented from the date of promulgation.G/SG/N/1/TPKM/2
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Rules for Handing Import Relief Case s Regarding Textiles and Clothing
Promulgated on Jun. 2, 1999
Amended on Sept. 13, 2000
Amended on Feb. 15, 2002
Amended on Aug. 7, 2002
(In case of any discrepancy between the Chinese and English texts of these Rules , the Chinese text
shall govern.)
Chapter 1  General Provisions
Article 1
These Rules are prescribed in accordance with the provisions of Article 18, paragraph 3 of the
Foreign Trade Act (hereafter referred to as "the Act").
Article 2
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.
Article 3
The term "import relief case regarding textiles and clothing " as referred to herein means a
case for which a petition has been filed for investigation into the injury caused to an industry and for
import relief pursuant to Article 18, paragraph 1 of the Act.
The establishment of a case of injury to the industry as referred to in the preceding paragraph
means an increase in the imported quantities of the product concerned, resulting in the domestic
industry producing the like products or directly competitive products being seriously injured or
threatened thereof.
Article 4
The term “domestic industry” as referred to in these Rules means the domestic producers of
like products or directly competitive products whose collective output of the products constitutes, asdetermined by the International Trade Commission of the Ministry of Economic Affairs (hereafter
referred to as the "Commission"), a major proportion of the total domestic production of those
products
The term“like products”as referred to herein means textiles and clothing products having the
same characteristics and are composed of the same materials; the term “directly competitive products”
means textiles and clothing products which, despite the differences in their characteristics, are directly
substitutable textiles and clothing products in terms of their utility purpose and commercial
competitiveness.G/SG/N/1/TPKM/2
Page 13
Article 5
The term "interested party" as referred to herein means:
1. foreign producers, foreign exporters, domestic importers or the commercial/industrial
associations to which they belong as members;
2. the government or its representative(s) of the exporting countries or the countries of the
origin;
3. the domestic producers of like products or directly competitive products or the
commercial/industrial associations to which they belong as members;
4. other interested parties as identified by the Commission.
Article 6
In determining whether the domestic industry is seriously injured, overall consideration shall
be given to the following factors of the injured domestic industry and the change(s) in circumstances:
1. output,
2. productivity,
3. utilization of capacity,
4. inventories,
5. market share,
6. exports,7. wages and employment,
8. domestic prices,
9. profits and investment,
10. other related economic factors.
In making a determination regarding the existence of a threat of serious injury, the factors and
their trend of changes as mentioned in the precedin g paragraph shall be considered so as to evaluate
whether the said industry would be seriously injured if relief measures were not adopted.
The Ministry of Economic Affairs, in determin ing the injury in accordance with the preceding
two paragraphs, shall consider all evidence or data acquired in the investigation.  When factors other
than increased imports are causing injury to the domes tic industry at the same time, such injury shall
not be attributed to increased imports.
Article 7
The Ministry of Economic Affairs may adopt import quotas as relief measures if it has,
pursuant to these Rules, determined that the indu stry has been injured in an import relief case.
Any import quota invoked pursuant to the provisions of these Rules shall be applied on a
country-by-country or region-by-region basis.
Article 8
In applying the aforesaid import quotas on a country-by-country or region-by-region basis,
overall considerations shall include:
1. sharp and substantial increases in imports, actu al or imminent, from such a country/region or
countries/regions;G/SG/N/1/TPKM/2
Page 14
2. a comparison of the scale of the increase as referred to in the preceding item with imports
from other countries or regions and their market shares;
3. a price comparison between the imported textiles and clothing and those of the domestic
industry at the same trade level.
Article 9
With respect to an import relief case regarding textiles and clothing, the Ministry of
Economic Affairs may, upon petition by the relevant authority, the injured domestic industry, or the
trade association representing the injured domestic industry or the relevant entities, hand over the case
to the Commission to proceed with the investigation.
Chapter 2     Petition
Article 10
In a 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 relevant
information:
1. proof that the petitioner meets the qualifications prescribed in Article 9;
2. a description of the imported textiles and clothing:
(1) the name and standard classification code of textiles and clothing products, tariff
code, specifications and grade, main production process, composition, usage and
other characteristics;
(2) the exporting countries, country of origin, producer, foreign exporter, and domestic
importer.
3. facts of the affected industry:
(1) the output, productivity, utilization of capacity, inventories, export volume, price,
profits and investment, wages and number of employees, inclusive of changes over
the last three years prior to the petition date;
(2) the quantity, prices and the market share of imports in the domestic market of the said
textiles and clothing products for the last three years prior to the petition date;
(3) the quantity and prices of the said textiles and clothing products imported from the
major exporting countries for the last three years prior to the petition date;
(4) other information which can be used to demonstrate the fact that the industry is being
affected.
The particulars and information which shall be set forth or required under sub-paragraph 2
and 3 of the preceding paragraph can be waived if the petitioner has a justification for not being able
to provide the same and the Commission has so agreed.
Article 11
Unless any one of the following situations occur in which a petition shall be dismissed, the
Ministry of Economic Affairs, shall, within 30 days from the day after receiving the petition for
import relief, refer the case to the Commission for review and decision on whether to initiate an
investigation; provided, however, that the time re quired for the petitioner to supplement information
shall not be included in the 30-day period.
1. the petitioner is not qualified according to Article 9;G/SG/N/1/TPKM/2
Page 15
2. the petitioner fails to meet the requirements stipulated in Article 10, Paragraph 1, and fails to
supplement data within the period as notified or fails completely to supplement the
information.
Regardless of whether a decision is made to initiate an investigation or not, the Ministry of
Economic Affairs shall immediately notify the petiti oner and known interested parties in writing and
publish such a decision in the Gazette of the Ministry of Economic Affairs.
Chapter 3   Investigation into Injury Caused to the Industry
Article 12
Where the Commission investigates into an import relief case, the chairman of the
Commission shall designate one or two Commissioners to be responsible for handling the case and,
where necessary, request the relevant agency to assign staff or commission scholars and experts in the
relevant fields on a case-by-case basis to assist in the investigation.
Article 13
The Commission, when conducting investigation in to an import relief case, shall comply with
the following rules:
1. it shall review the information provided by the petitioner and the interested parties, may
assign staff to conduct on-site verification and, when necessary, may require additional
provision of relevant information;  and
2. it shall hold hearings.
The hearing referred to in sub-paragraph 2 of the preceding paragraph shall be presided over
by the specific Commissioner designated by the Chairman of the Commission .
The petitioner or the interested parties sh all provide information according to the
requirements of the Commission; if such informati on is not provided within the specified time, the
Commission may proceed to examine the case based on the information available.
Article 14
The petitioner and the interested parties shal l indicate in writing whether or not the
information they provide may be made public or shall be kept confidential; when a request forconfidentiality is made, a summary which can be made public shall be provided.
If the request for confidentiality is not justified or a public summary is not provided, the
Commission may disregard the said information.
When the petitioner or interested parties have made a request for confidentiality with
justification, the Commission shall not disclose the said information without the approval of the
petitioner or the interested parties.
Article 15The Commission shall permit access to non-confidential information provided by the petitioner or
interested parties.G/SG/N/1/TPKM/2
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Article 16
The Commission shall complete its investigation within 90 days from the day after the
petitioner is notified of the initiation of investigation by the Ministry of Economic Affairs, and it shall
convene a Commissioners Meeting to make a decision as to whether a case of injury shall or shall not
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 restriction to be established and the
countries/regions to which they shall be applied.
The time limit referred to in Paragraph 1 may be extended by 45 days, if necessary, and the
extension shall be limited to one time; the Commission shall notify the petitioner and the knowninterested parties of such an extension of time and the reasons for it, and announce the same publicly.
Article 17
The decision referred to in the preceding Article shall be made by at least half of the attending
Commissioners at a meeting attended by at least two-thirds of the total number of Commissioners.
Article 18The Commission shall, within 15 days after its decision on the import relief measures is made,
prepare a letter of decision and submit to the 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 shall give a public notice of the decision; in case of an
affirmative decision that the industry has been injured, the Ministry of Economic Affairs shall notify
the known producers and exporters or the representatives of governments in those countries/regions towhich the measures shall be applied.
Chapter 4    Import Relief
Article 19
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 national 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 20
When the Ministry of Economic Affairs decides not to adopt any relief measures, it shall
notify the petitioner and the known interested parties in writing immediately and give a public notice
thereof.
Article 21
When the Ministry of Economic Affairs decides to adopt relief measures, it shall notify the Textiles
Monitoring Body of the World Trade Organization (hereafter referred to as “TMB”) in accordance
with the Agreement on Textiles and Clothing and enter into consultation with those countries/regionsto which the measures shall be applied.G/SG/N/1/TPKM/2
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Article 22
The Ministry of Economic Affairs shall, after an agreement for the textiles and clothing
products concerned is reached as a result of the consultation, give public notice of quota measures to
be implemented and notify the TMB of the contents of the agreement within 60 days following the
date of the conclusion of the agreement.
In the event that no agreement has been reached within 60 days after the date on which the
request for consultations was received, the Ministry of Economic Affairs may, within 30 days upon
expiration of the said period, announce the implementation of the import quotas and at the same time
refer the matter to the TMB.
Article 23The level of such import quotas on the product as aforesaid shall be set at a level not lower than the
actual level of imports or exports from the exporting countries/regions concerned during the 12-month
period ending 2 months preceding the month in which the request for consultations was made.
Article 24
In highly unusual and critical circumstances, where delay would cause damage to the
domestic industry which would be difficult to cure, the Ministry of Economic Affairs may implement
import quotas provisionally on the condition that the request for consultations and notification to theTMB shall be effected within no more than 5 working days after taking the action.
Article 25
The implementation period for the import quotas sh all not exceed 3 years. Provided that the
textiles and clothing products concerned are not designated in Article 2 in accordance with the public
notice, the said measures shall be terminated immediately.
Article 26
If the cause for import relief ceases to exist or if there is a change in circumstances after the
import quotas have been implemented for one year, the petitioner or interested parties may file a
report to the Ministry of Economic Affairs for termination or modification of the relief measures with
concrete reasons and accompanied by evidence.
In the event of the following situations occu rring during the implementation period of the
import quotas, the Ministry of Economic Affairs may, acting in an ex officio  capacity or upon petition,
terminate the said import quotas:
1. a substantial rise in the domestic prices of the textiles and clothing products concerned is
caused by implementation of the import quotas,
2. the industry structure of the textiles and clothing products concerned cannot be effectively
improved.
The provisions of Chapter II shall then apply mutatis mutandi s with respect to the application
procedures of the preceding paragraphs.
For any petitions submitted under Paragraph 1 and Paragraph 2, the Commission shall
complete its investigation within 90 days from the day after the petitioner is notified of the initiation
of the investigation by the Ministry of Economic Affairs.  The time limit may be extended by 45 days,G/SG/N/1/TPKM/2
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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 and the reasons for it, and announce the
same publicly.
Article 27
During the implementation period of the subject relief, if the textiles and clothing products
concerned are imported via another country/region or  another method of circumvention is used, the
Ministry of Economic Affairs may, acting in an ex officio  capacity or upon petition by the petitioner
and interested parties, initiate an investigation and notify the foreign exporters and domestic
importers, as well as the government agency or its representative of the exporting country of the
textiles and clothing products concerned, 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 the result of the investigation, adjust the import
quotas of the concerned countries/regions based on the quantity that is found to be of the
circumvented.
Prior to the adjustment, the Ministry of Economic Affairs may enter into consultations with
the said countries/regions.
For any petitions submitted under Paragraph 1, the Commission shall complete its
investigation within 90 days from the day after the petitioner is notified of the initiation of theinvestigation by the Ministry of Economic Affairs.  The time limit may 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 and the reasons for it, and announce the
same publicly.
Chapter 4 -1  Import Relief Regarding Textiles and Clothing from Mainland China
Article 27 bis
The petitions filed pursuant to Paragraph 1 of Article 18 of the Act, for the investigation on
injuries to the textile industry and the application of import relief measures may be specific on the
textiles and clothing products from Mainland China.
A case of injury to the industry as referred to in the preceding paragraph is to be established,
when there is an increase in the imported quantity of the textiles and clothing products from MainlandChina or an increase in such 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.
Articles 27 ter
In making a determination regarding the existence of the market disruption of, or threat of
market disruption to, the domestic industry as referred to in the preceding article, the volume of
imports concerned, the effect of such imports on prices for like or directly competitive products, and
the effect of such imports on the domestic industry producing like or directly competitive products in
said case shall be considered together.G/SG/N/1/TPKM/2
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Article 27 quater
In the event that the Ministry of Economic Affairs determines to apply 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 27 quinguies
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 quotas shall not exceed the total quantities, plus 7.5
percent (6 percent for wool product categories), of such products from Mainland China during the 12-
month period ending 2 months preceding the 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.
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 textiles and clothing products from Mainland China
pursuant to such agreement.
Article 27 sexies
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 requesting consultation is served to the end of the
same year.  If the period from the day the document requesting for consultation is served to the end of
the same year is shorter than 3 months, the implementation period shall be 12 months starting from
the day the document requesting for consultation is served.
The implementation period of the restriction measures, applied pursuant to Paragraph 1 of the
preceding article or the preceding paragraph of this article, shall not exceed one year unless an
agreement is reached as a result of the consultation.
Article 27 septies
In the event a petition is filed pursuant to Article 27-1, no other petition may be filed for the
same case pursuant to Article 26-1 of “Rules for Handling Import Relief Cases”.
Except for Article 8, Paragraph 2 of Article 22, and Article 23 to Article 26, articles in these
Rules shall be applied mutatis mutandis to this Chapter.
Chapter 5   Supplemental Provisions
Article 28   (deleted)
Article 29
The public notice to be issued in accordance with these Rules shall be published in the
Gazette of the Ministry of Economic Affairs and, in addition, may be published in the daily
newspaper.G/SG/N/1/TPKM/2
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Article 30
The matters regarding the investigation, determination, consultation, the relief measures, etc.
which are not provided for in the Act or these Rules shall be handled in accordance with the
applicable international agreements and customs.
Article 31
These Rules shall be implemented from the date of promulgation.
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