Provisional import defense mechanism enforced by the Ministry of Economic Affairs

The Board of Foreign Trade indicated on Sep 2, 2002 that for the purpose of strengthening import defense mechanism, respond to protectionism of various country, the Ministry of Economic Affairs (“MOEA”) had revised “Regulations Governing Relief Cases About Import of Goods” and followed suit the Europe and the U.S. by increasing a “provisional defense measure.” In the future, if the number of imported foreign goods increases sharply, the MOEA may timely raise customs duties on foreign goods in accordance with the provisional defense mechanism before a ruling on industrial damages is given to protect domestic industries.

According to the provisional defense mechanism, if imported agricultural or industrial goods increase sharply, manufacturers, industrial associations and competent authorities (Board of Foreign Trade, Industrial Development Bureau or Council of Agriculture) may apply for investigation with International Trade Commission (“ITC”) of MOEA. The ITC may suggest raising customs duty provisionally in accordance with the aforesaid mechanism and report the case to the Executive Yuan after meeting relevant organizations within ten days.  The duration of enforcement shall not exceed 200 days.

Source: Commercial Times 09/03/2002