SCHEDULES
SCHEDULE 5Increase in imports causing serious injury to UK producers
PART 4Definitive remedies: definitive safeguarding amount & tariff rate quotas
TRA's duty to recommend a definitive safeguarding amount or tariff rate quota
I116
1
This paragraph applies where the TRA makes a final affirmative determination in relation to goods which are the subject of a safeguarding investigation.
2
Goods in relation to which that determination is made are referred to in this paragraph as relevant goods.
3
The TRA may recommend to the Secretary of State—
a
that an additional amount of import duty (referred to in this Schedule as a “definitive safeguarding amount”) should be applicable for a specified period to all the relevant goods or to specified relevant goods;
b
that all the relevant goods, or specified relevant goods, should be subject to a quota for a specified period during which a lower rate of import duty should be applicable to imports of goods within the amount of the quota than is applicable to imports of goods outside the amount of the quota (referred to in this Schedule as a “tariff rate quota”).
4
Where the TRA makes a recommendation under sub-paragraph (3)(a) in relation to relevant goods it must, as part of the recommendation, recommend to the Secretary of State how a definitive safeguarding amount applicable to those goods should be determined.
5
The TRA may make a recommendation under sub-paragraph (3) only if it is satisfied that—
a
applying a definitive safeguarding amount to relevant goods, or making relevant goods subject to a tariff rate quota, in accordance with its recommendation meets the economic interest test (see paragraph 23), and
b
there is in place an adjustment plan setting out how UK producers of the relevant goods intend to adjust to the importation of the goods in increased quantities.
6
But sub-paragraph (5) is to be read as if paragraph (b) were omitted if the TRA waived the requirement for the application to initiate a safeguarding investigation in relation to the relevant goods to be accompanied by a preliminary adjustment plan.
7
Regulations may make provision about the form and content of an adjustment plan.
8
The TRA may only make a recommendation under one or other of paragraphs (a) and (b) of sub-paragraph (3) in relation to any particular relevant good.
9
The TRA may make a recommendation under paragraph (a) or (b) of sub-paragraph (3) in relation to specified relevant goods (rather than all the relevant goods) only if the recommendations which it makes under that sub-paragraph, when taken together, cover all the relevant goods.
10
If the TRA determines that there are one or more recommendations which it could make under sub-paragraph (3) in relation to all the relevant goods, or that there are one or more recommendations which it could make under sub-paragraph (3) in relation to specified relevant goods, it must make that recommendation or one of those recommendations (subject to sub-paragraphs (8) and (9)).
11
If the TRA determines that there is no recommendation which it could make under sub-paragraph (3) it must—
a
publish notice of its final affirmative determination in relation to the goods,
b
publish notice of its determination that there is no recommendation which it could make under sub-paragraph (3), and
c
notify the Secretary of State and interested parties (see paragraph 31(3)) accordingly.
TRA's recommendations about a definitive safeguarding amount
I217
1
This paragraph applies to a recommendation by the TRA under paragraph 16(3)(a) in relation to goods.
2
The specified period referred to in paragraph 16(3)(a)—
a
must be such period as the TRA is satisfied is necessary—
i
to remove the serious injury, or to prevent further serious injury, caused by the importation of the goods in increased quantities to UK producers of the goods, and
ii
to facilitate the adjustment of those UK producers to the importation of the goods in increased quantities,
b
must not exceed 4 years (but see paragraph 21 regarding the possibility of extensions or other variations to that period following a review), and
c
if the recommendation is accepted by the Secretary of State, must begin on the day after the date of publication of the public notice under section 13 giving effect to the recommendation.
3
A recommendation under paragraph 16(3)(a) as to how a definitive safeguarding amount applicable to goods should be determined (see paragraph 16(4)) may be by reference to either or both of the following—
a
the value of the goods, and
b
the weight or volume of the goods or any other measure of their quantity or size.
4
But that recommendation must be such that—
a
a definitive safeguarding amount applicable to goods does not exceed the amount which the TRA is satisfied is necessary—
i
to remove serious injury to UK producers of the goods, and
ii
to facilitate the adjustment of those UK producers to the importation of the goods in increased quantities, and
b
where the specified period referred to in paragraph 16(3)(a) exceeds 1 year, a definitive safeguarding amount applicable to goods becomes progressively smaller as the period progresses.
5
Regulations may make provision for the purposes of sub-paragraph (4)(a) about how the amount which the TRA is satisfied is necessary for the purposes mentioned is to be determined.
6
A recommendation under paragraph 16(3)(a) must include such other content as regulations may require.
7
If a provisional safeguarding remedy has been applied to some or all of the goods as part of the same safeguarding investigation, sub-paragraph (8) applies for the purposes of sub-paragraphs (2)(b) and (4)(b).
8
The length of the specified period referred to in paragraph 16(3)(a), so far as relating to goods to which a provisional safeguarding remedy has been applied, is to be treated as extended by the length of the specified period for which the TRA recommended that a provisional safeguarding remedy should be applied to them.
9
Where the application of sub-paragraph (8) results in the length of the specified period referred to in paragraph 16(3)(a), so far as relating to goods to which a provisional safeguarding remedy has been applied, exceeding 1 year, sub-paragraph (4)(b) is to be read as if references to goods were references to the goods to which the provisional safeguarding remedy has been applied.
10
In this paragraph, references to the application of a provisional safeguarding remedy are to—
a
applying a provisional safeguarding amount to goods, or
b
making goods subject to a provisional tariff rate quota.
TRA's recommendations regarding tariff rate quotas
I318
1
This paragraph applies to a recommendation by the TRA under paragraph 16(3)(b) in relation to goods.
2
The specified period referred to in paragraph 16(3)(b)—
a
must be such period as the TRA is satisfied is necessary—
i
to remove the serious injury, or to prevent further serious injury, caused by the importation of the goods in increased quantities to UK producers of the goods, and
ii
to facilitate the adjustment of those UK producers to the importation of the goods in increased quantities,
b
must not exceed 4 years (but see paragraph 21 regarding the possibility of extensions or other variations to that period following a review), and
c
if the recommendation is accepted by the Secretary of State, must begin on the day after the date of publication of the public notice under section 13 giving effect to the recommendation.
3
The recommendation must (in addition to the specified period) include—
a
the TRA's recommendation regarding—
i
the amount of the quota,
ii
how the quota should be allocated, and
iii
the rates of import duty that should be applied to goods subject to the quota, and
b
such other content as regulations may require.
4
The TRA must consult the Secretary of State before making a recommendation regarding the allocation of the quota.
5
The things recommended by the TRA by virtue of sub-paragraph (3)(a)—
a
must be such as the TRA is satisfied are necessary—
i
to remove serious injury to UK producers of the goods, and
ii
to facilitate the adjustment of those UK producers to the importation of the goods in increased quantities, and
b
where the specified period referred to in paragraph 16(3)(b) exceeds 1 year, must be such that the amount of import duty applicable to goods subject to the quota becomes progressively smaller as the period progresses (whether by increases in the amount of the quota, decreases in the rates of import duty, or both).
6
Regulations may make provision for the purposes of sub-paragraph (5)(a) about how the things which the TRA is satisfied are necessary for the purposes mentioned are to be determined.
7
If a provisional safeguarding remedy has been applied to some or all of the goods as part of the same safeguarding investigation, sub-paragraph (8) applies for the purposes of sub-paragraphs (2)(b) and (5)(b).
8
The length of the specified period referred to in paragraph 16(3)(b), so far as relating to goods to which a provisional safeguarding remedy has been applied, is to be treated as extended by the length of the specified period for which the TRA recommended that a provisional safeguarding remedy should be applied to them.
9
Where the application of sub-paragraph (8) results in the length of the specified period referred to in paragraph 16(3)(b), so far as relating to goods to which a provisional safeguarding remedy has been applied, exceeding 1 year, sub-paragraph (5)(b) is to be read as if references to goods were references to the goods to which the provisional safeguarding remedy has been applied.
10
In this paragraph, references to the application of a provisional safeguarding remedy are to—
a
applying a provisional safeguarding amount to goods, or
b
making goods subject to a provisional tariff rate quota.
Secretary of State's power to apply a definitive safeguarding amount
I419
1
If the TRA makes a recommendation under paragraph 16(3)(a) that a definitive safeguarding amount should be applicable to goods, the Secretary of State must decide whether to accept or reject the recommendation.
2
The Secretary of State may reject the recommendation only if the Secretary of State is satisfied that—
a
the application of a definitive safeguarding amount to goods in accordance with the recommendation does not meet the economic interest test (see paragraph 23), or
b
it is not otherwise in the public interest to accept the recommendation.
3
If the recommendation is rejected, the Secretary of State must—
a
publish notice of the TRA's final affirmative determination in relation to the goods, of the recommendation and of the rejection of it,
b
notify interested parties (see paragraph 31(3)) accordingly, and
c
lay a statement before the House of Commons setting out the reasons for rejecting the recommendation.
4
If the recommendation is accepted, the Secretary of State—
a
must publish notice of the TRA's final affirmative determination in relation to the goods, of the recommendation and of the acceptance of it,
b
must notify interested parties accordingly, and
c
is required under section 13 to make provision by public notice to give effect to the recommendation.
5
See paragraphs 21 and 22 for variation or revocation of the application of a definitive safeguarding amount.
Secretary of State's power to subject goods to a tariff rate quota
I520
1
If the TRA makes a recommendation under paragraph 16(3)(b) that goods should be subject to a tariff rate quota, the Secretary of State must decide whether to accept or reject the recommendation.
2
The Secretary of State may reject the recommendation only if the Secretary of State is satisfied that—
a
making goods subject to a tariff rate quota in accordance with the recommendation does not meet the economic interest test (see paragraph 23), or
b
it is not otherwise in the public interest to accept the recommendation.
3
If the recommendation is rejected, the Secretary of State must—
a
publish notice of the TRA's final affirmative determination in relation to the goods, of the recommendation and of the rejection of it,
b
notify interested parties (see paragraph 31(3)) accordingly, and
c
lay a statement before the House of Commons setting out the reasons for rejecting the recommendation.
4
If the recommendation is accepted, the Secretary of State—
a
must publish notice of the TRA's final affirmative determination in relation to the goods, of the recommendation and of the acceptance of it,
b
must notify interested parties accordingly, and
c
is required under section 13 to make provision by public notice to give effect to the recommendation.
5
See paragraphs 21 and 22 for variation or revocation of a tariff rate quota.
Reviews
I621
1
Regulations may make provision for, or in connection with, reviews by the TRA of the continuing application of a definitive safeguarding amount or the continuation of a tariff rate quota.
2
References in this paragraph to “a review” are to a review by virtue of provision made under sub-paragraph (1).
3
Regulations under sub-paragraph (1) may, among other things, provide for a review to consider—
a
whether the continuing application of a definitive safeguarding amount, or the continuation of a tariff rate quota, is necessary—
i
to remove the serious injury, or to prevent further serious injury, caused by the importation of the goods in increased quantities to UK producers of the goods, or
ii
to facilitate the adjustment of those UK producers to the importation of the goods in increased quantities;
b
whether serious injury to UK producers of the goods would be likely to continue or recur if the application of a definitive safeguarding amount were to expire or be varied or revoked or if a tariff rate quota were to expire or be varied or revoked;
c
whether replacing the application of a definitive safeguarding amount with a tariff rate quota, or replacing a tariff rate quota with the application of a definitive safeguarding amount, would better meet the aim of—
i
removing serious injury to UK producers of the goods, or
ii
facilitating the adjustment of those UK producers to the importation of the goods in increased quantities;
d
whether an adjustment plan as referred to in paragraph 16(5)(b) is being complied with.
4
Regulations under sub-paragraph (1) may, among other things, make—
a
provision for the TRA to investigate certain matters;
b
provision for the period for which a definitive safeguarding amount applies to goods by public notice under section 13, or for which goods are subject to a tariff rate quota by public notice under that section, to be treated as continuing (where it would otherwise cease to do so) while a review is ongoing;
c
other provision about the conduct of a review.
5
Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-paragraph (4)(c) in relation to a review as it applies to regulations under paragraph 10(1) of that Schedule in relation to a dumping or a subsidisation investigation.
6
Regulations may make provision for or in connection with—
a
the TRA recommending to the Secretary of State that—
i
the application of a definitive safeguarding amount to goods should be varied, revoked or replaced with a tariff rate quota, or
ii
a tariff rate quota to which goods are subject should be varied, revoked or replaced with the application of a definitive safeguarding amount, and
b
the Secretary of State accepting or rejecting such a recommendation.
7
Where, by virtue of provision made under sub-paragraph (6), the Secretary of State accepts a recommendation that the application of a definitive safeguarding amount to goods, or a tariff rate quota to which goods are subject, should be varied or revoked, the Secretary of State—
a
must publish notice of the recommendation and of the acceptance of it,
b
must notify interested parties (see paragraph 31(3)) accordingly, and
c
is required under section 13 to make provision by public notice to give effect to the recommendation.
8
The variation of the application of a definitive safeguarding amount to goods which the TRA may recommend to the Secretary of State by virtue of regulations under sub-paragraph (6) may take the form of one or both of the following—
a
varying the period for which a definitive safeguarding amount is applicable (including extending it beyond the period referred to in paragraph 17(2)(b));
b
varying how a definitive safeguarding amount should be determined such that a lower amount of import duty is applicable.
9
The variation of a tariff rate quota which the TRA may recommend to the Secretary of State by virtue of regulations under sub-paragraph (6) may take the form of one or more of the following—
a
increasing the amount of the quota;
b
varying the allocation of the quota;
c
reducing the rates of import duty that apply to goods subject to the quota;
d
reducing the part of the period for which the amount of the quota is lower or for which import duty at a higher rate applies (so that the amount of the quota is increased, or import duty applies at a lower rate, more quickly);
e
varying the period for which goods are subject to the quota (including extending it beyond the period referred to in paragraph 18(2)(b)).
10
Where, by virtue of provision made under sub-paragraph (6), the Secretary of State accepts a recommendation that, for the first time, a definitive safeguarding amount should be applicable to goods or goods should be subject to a tariff rate quota, the Secretary of State—
a
must publish notice of the recommendation and of the acceptance of it,
b
must notify interested parties accordingly, and
c
is required under section 13 to make provision by public notice to give effect to the recommendation.
Variation or revocation following an international dispute decision
22
1
Regulations may make provision for or in connection with—
a
the TRA recommending to the Secretary of State that the application of a definitive safeguarding amount to goods, or a tariff rate quota to which goods are subject, should be varied or revoked in light of an international dispute decision, and
b
the Secretary of State accepting or rejecting such a recommendation.
2
The regulations may, among other things—
a
provide for the TRA to investigate certain matters for the purposes of determining whether to make a recommendation to the Secretary of State and what to recommend;
b
make provision about the conduct of such an investigation;
c
provide for the suspension, by public notice given by the Secretary of State, of the application of a definitive safeguarding amount or the making of goods subject to a tariff rate quota.
3
Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-paragraph (2)(b) in relation to such an investigation as it applies to regulations under paragraph 10(1) of that Schedule in relation to a dumping or a subsidisation investigation.
4
Where, by virtue of provision made under the regulations, the Secretary of State accepts a recommendation that the application of a definitive safeguarding amount to goods, or a tariff rate quota to which goods are subject, should be varied or revoked, the Secretary of State—
a
must publish notice of the recommendation and of the acceptance of it,
b
must notify interested parties (see paragraph 31(3)) accordingly, and
c
is required under section 13 to make provision by public notice to give effect to the recommendation.
5
Paragraph 21(8) and (9) apply for the purposes of regulations under this paragraph as they apply for the purposes of regulations under paragraph 21(6).
6
An “international dispute decision” means—
a
a report of a panel or Appellate Body that is adopted by the Dispute Settlement Body of the WTO, or
b
if not within paragraph (a), a decision under the dispute settlement procedures of an arrangement relating to trade to which Her Majesty's government in the United Kingdom is a party with the government of a foreign country or territory.