Ministry of Mines (Govt. of India) in its recently issued notification has drafted Indo-Japan Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017. The rules shall come into force on the date of their publication in the Official Gazette.
Final Findings- The Director General shall within eight months from the date of initiation ofthe investigation, or within an extended period not exceeding one year from the date of initiation of the investigation, as the Central Government may allow, determine whether-
(a) the increased imports of the originating good under investigation has caused or threatened to cause serious injury to the domestic industry; and
(b) a causal link exists between the increased imports of the originating good due to the elimination or reduction of a customs duty under the Trade Agreement and serious injury or threat of serious injury
The Director General shall also give his recommendation regarding bilateral safeguard measure which would be adequate to prevent or remedy the serious injury and to facilitate adjustment.
Application of provisional bilateral safeguard measure- The central govt. on the basis of the preliminary findings of the Director General, may (a) suspend further reduction of any rate of customs duty on the originating good provided for under the Trade Agreement; or
(b) increase the rate of customs duty on the originating good to a level not to exceed the lesser of: (i) the Most Favoured Nation applied rate of customs duty on the originating good in effect on the day when the bilateral safeguard measure is taken; or (ii) the Most Favoured Nation applied rate of customs duty on the originating good in effect on the day (ii) the Most Favoured Nation applied rate of customs duty on the originating good in effect on the day immediately preceding the date of entry into force of the Trade Agreement.
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