Common use of Structural Adjustment Clause in Contracts

Structural Adjustment. 1. Exceptional measures of limited duration, which derogate from the provisions of Article 4, may be taken by Montenegro in the form of increased customs duties. 2. These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 3. Customs duties on imports applicable in Montenegro to products originating in Turkey introduced by these measures may not exceed the level of the basic duty referred in Article 2 for the concerned product and shall maintain an element of preference for products originating in Turkey. The total value of imports of the products which are subject to these measures may not exceed 15% of total imports of industrial products from Turkey as defined in Article 3, during the last year for which statistics are available. 4. These measures shall be applied for a period not exceeding five years unless a longer duration is authorized by the Joint Committee. 5. No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product. 6. Montenegro shall inform the Joint Committee of any exceptional measures they intend to take and, at the request of Turkey, consultations shall be held in the Joint Committee on such measures and the sectors to which they apply before they are applied. When taking such measures Montenegro shall provide the Joint Committee with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction, at equal rates. The Joint Committee may decide on a different schedule.