Common use of Bilateral Safeguard Measures Clause in Contracts

Bilateral Safeguard Measures. 1. Subject to the provisions of this Section, a Party may apply a bilateral safeguard measure if an originating good of the other Party, as a result of the elimination or reduction of a customs duty in accordance with Article 21, is being imported into the former Party in such increased quantities, in absolute terms, and under such conditions that the imports of that originating good constitute a substantial cause of serious injury, or threat thereof, to the domestic industry of the former Party. 2. If the conditions in paragraph 1 are met, a Party may, to the minimum extent necessary to prevent or remedy serious injury, and facilitate adjustment: (a) suspend the further reduction of any rate of customs duty on the originating good provided for in Section 1; or (b) increase the rate of customs duty on the originating good to a level not to exceed the least among: (i) the most-favored-nation applied rate of customs duty in effect on the day when the bilateral safeguard measure is applied; (ii) the Base Rate as specified in Column 3 of its Schedule in Annex 1; and Note 1: In the case of the elimination of customs duties on the date of entry into force of this Agreement, the most-favored-nation applied rate on April 1, 2009 shall be the Base Rate. Note 2: In the case of originating goods specified with "G" in Column 5 of the Schedule of Japan in Annex 1, the Base Rate shall be replaced by the most-favored-nation applied rate on April 1, 2009.

Bilateral Safeguard Measures. 1. Subject to the provisions of this Section, a Party may apply a bilateral safeguard measure if an originating good of the other Party, as a result of the elimination or reduction of a customs duty in accordance with Article 21, is being imported into the former Party in such increased quantities, in absolute terms, and under such conditions that the imports of that originating good constitute a substantial cause of serious injury, or threat thereof, to the domestic industry of the former Party. 2. If the conditions in paragraph 1 are met, a Party may, to the minimum extent necessary to prevent or remedy serious injury, and facilitate adjustment: : (a) suspend the further reduction of any rate of customs duty on the originating good provided for in Section 1; or or (b) increase the rate of customs duty on the originating good to a level not to exceed the least among: : (i) the most-favored-nation applied rate of customs duty in effect on the day when the bilateral safeguard measure is applied; ; (ii) the Base Rate as specified in Column 3 of its Schedule in Annex 1; and and Note 1: In the case of the elimination of customs duties on the date of entry into force of this Agreement, the most-favored-nation applied rate on April 1, 2009 shall be the Base Rate. Note 2: In the case of originating goods specified with "“G" ” in Column 5 of the Schedule of Japan in Annex 1, the Base Rate shall be replaced by the most-favored-nation applied rate on April 1, 2009. (iii) the most-favored-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.