Common use of Standards for a Bilateral Safeguard Measure Clause in Contracts

Standards for a Bilateral Safeguard Measure. 1. A Party may apply a safeguard measure for an initial period of no longer than 2 years. The period of a safeguard measure may be extended for a period not exceeding 1 year provided that the competent authorities of the importing Party have determined, in accordance with the procedures set out in Article 69, that the continued application of the measure is necessary to prevent or remedy serious injury and that the industry is adjusting. Regardless of its duration, a safeguard measure shall terminate at the end of the transition period. No new safeguard measure may be applied to a product after that date. 2. A Party shall not apply a safeguard measure or provisional safeguard measure again on a product which has been subject to such a measure for a period of time equal to that during which such a measure had been previously applied, provided that the period of non-application is at least 2 years. 3. Neither Party may apply a safeguard measure on a product that is subject to a measure that the Party has applied pursuant to Article XIX of GATT 1994 and the Safeguards Agreement, and neither Party may continue maintaining a safeguard measure on a product that becomes subject to a measure that the Party applies pursuant to Article XIX of GATT 1994 and the Safeguards Agreement. 4. On the termination of a safeguard measure, the rate of duty shall be the customs duty set out in the Party's Schedule to Annex 1 as if the safeguard measure had never been applied.