INTERIM RULES ON PLACING CASES ON FILE FOR INVESTIGATION FOR TAKING SAFEGUARD MEASURES

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Trade and Economic Cooperation

No.9

The Interim Rules on Placing Cases on File for Investigation for Taking Safeguard Measures has been adopted at the executive meeting
of the Ministry on February 10, 2002 and is hereby promulgated for implementation as of March 13, 2002.

Shi Guangsheng, Minister of the MOFTEC

February 10, 2002

Interim Rules on Placing Cases on File for Investigation for Taking Safeguard Measures

Chapter I General Provisions

Article 1

The present Rules have been formulated on the basis of the Regulation of the People’s Republic of China for standardizing the procedures
of applying for and placing cases on files for investigation for taking safeguard measures.

Article 2

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) designates the Fair Import and Export
Trade Bureau to implement the present Rules.

Article 3

The MOFTEC may, upon the application of the applicant, decide to place a case on file or decide to place a case on file upon its own
initiative for investigation for taking safeguard measures.

Chapter II Application

Article 4

The natural persons, legal persons or other organizations (hereinafter referred to as the applicant) that are connected with the domestic
industry may apply to the MOFTEC for investigation for taking safeguard measures.

Article 5

An application for investigation for taking safeguard measures shall be made in written form. The application shall clearly state
the will of formally applying to the MOFTEC for placing a case on file for investigation for taking safeguard measures, and shall
be sealed or signed by the applicant or any person legally authorized thereby.

Article 6

An application shall include the following contents:

1.

An account of the information about the applicant;

2.

An account of the imported products, similar domestic products or directly competing products applied for investigation;

3.

Information about the known country (region) of export, the exporter, producer and importer of the imported product that have already
been applied for investigation;

4.

An account of the domestic industry;

5.

An account of the increase in quantity of the imported product that is applied for investigation;

6.

An account of the damages suffered;

7.

An account of the causal relationship between the increase of import and the damages suffered;

8.

Pleadings;

9.

Other issues that the applicant believes necessary to make an account of.

Article 7

With regard to the information about the applicant, the applicant shall provide the following materials:

The name, legal representative, address, telephone number, zip code, fax number, person-to-contact, etc. of the applicant.

Where the applicant has entrusted an agent, such information as the name and identification of the agent shall be stated and a letter
of authorization shall be submitted.

Article 8

With regard to the imported product, similar domestic product or directly competing product, the applicant shall provide the following
evidential materials:

1.

A detailed account of the name, type, specifications, purposes of use, market situation, etc. of the imported product that is applied
for investigation and the docket number of the import tariff policy of the People’s Republic of China;

2.

The name, type, specifications, purpose of use, market situation, etc. of the similar domestic products or directly competing products;

3.

A comparison of the differences and similarities between the imported product that is applied for investigation and the similar domestic
products or directly competing products, including the physical features, chemical features, production techniques, purpose of use,
and substitutability, etc.

4.

Other evidential materials that the MOFTEC believes of necessity to be submitted.

Article 9

The applicant shall provide the names of the country (region) of export, the country (region) of origin of the imported product that
is applied for investigation, the name, address and contact information of the known exporters, producers and importers of the imported
products that have already been applied for investigation.

Article 10

With regard to the information about the domestic industry, the applicant shall provide the following evidential materials:

1.

The names, addresses and contact information of the known domestic producers and relevant societies and chambers of commerce;

2.

The annual total amount of domestic production of the similar or directly competing products produced by all the producers within
the whole country within the 5 years prior to the filing of the application;

3.

The annual amount of production of the similar or directly competing products produced by the applicant each year and the shares in
the total domestic amount within the 5 years prior to the filing of the applicant;

4.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 11

With regard to the increase of amount of the imported product that is applied for investigation, the applicant shall provide the following
evidential materials:

1.

The amount and value of the product imported each year within at least 5 years prior to the filing of application, which shall be
illustrated by flow curve charts;

2.

The absolute amount of export of all countries (regions) of export of the imported product that is applied for investigation within
at least 5 years prior to the filing of the application and the percentage of the export amount of all countries (regions) within
the total import of the imported product that is applied for investigation;

3.

The shares of the imported product that is applied for investigation and the similar domestic products or directly competing products
within their respective domestic consumptions in terms of amount and value within at least 5 years prior to the filing of the application;

4.

An analysis of reasons of the increase of import, including such considerations as but not limited to the rate of import tariff levied
on the product with the recent 5 years, materials about the deductions or preferential treatment that may have been enjoyed by the
import product that is applied for investigation, and the export prices of the imported product that is applied for investigation,
etc;

5.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 12

Where an application is filed on the ground that the increase of import has caused serious damages to the domestic industry, the applicant
shall provide the following evidential materials:

1.

All the relevant objective or quantifiable elements or indicators that affect the situation of the domestic market. Particularly,
they are: the rate and amount of the increase of import calculated on the basis of the absolute value and relative value of the imported
product that is applied for investigation, the shares of the increased import in the domestic market, and the changes in sales, production
amount, production rate, use rate of the equipments, profits and losses as well as employment;

2.

Evidential materials concerning the effects of the prices of the imported product that is applied for investigation upon the prices
of the similar domestic products or directly competing products;

3.

Other evidential materials that the MOFTEC believes of necessity to be provided.

Article 13

Where an application is filed on the ground that the increase of import is in the threat of causing serious damages to the domestic
industry, the applicant shall provide the following evidential materials:

1.

The export capacity, repertory of the country of export of the imported product that is applied for investigation and evidential materials
about the possibility that the import may continue to increase;

2.

The trend of changes of obvious approaching of the elements or indicators as mentioned in Article 12 (1) of the present Rules.

Article 14

When the applicant claims that the imported product applied for investigation affect the domestic industry and provides evidential
materials, he shall make separate decisions about the production of the similar domestic products or directly competing products;
where it is impossible to make separate decisions about the similar domestic products or directly competing products, he shall decide
according to the production of the narrowest product group or scope that includes the similar domestic products or directly competing
products.

Article 15

With regard to the causal relationship between the increase of import and the damages, the applicant shall analyze the above-mentioned
materials, stating the causal relationship between the increase of import and the damages to the domestic industry.

When proving the causal relationship between the increase of import and the damages to the domestic industry, any of the known elements
other than the increase in import that concurrently cause damages to the industry shall be analyzed, including but not limited to
the deduction of demand or the changes in consumption modes, the restrictive trade practices of the foreign and domestic producers
and the competition between them, the development of technology and the export performance and productivity of the domestic industry.
If the applicant believes any of the above-mentioned element is inapplicable, he shall make an account thereof.

Article 16

The applicant shall specify his pleadings for taking safeguard measures in the application; he may specify the form of safeguard measures
to be adopted, the concrete content, time limit and reasons thereof.

Article 17

Where the applicant pleads for taking interim safeguard measures at the same time, he shall provide evidences that prove the increase
in import has caused serious damages to or is threatening to cause serious damages to the domestic industry, and any delay in taking
such measures will lead to irremediable damages, and shall specify the rate of the tariffs to be increased.

Article 18

The applicant shall, when providing the evidential materials as mentioned in this chapter, specify the sources of the evidences.

Article 19

If an application involves any confidential materials, the applicant shall apply for keeping secret. With regard to the confidential
materials, the applicant shall provide a non-confidential summary which may help the interested parties of the case involved to have
a reasonable knowledge of the confidential materials. If the applicant fails to provide a non-confidential summary, he shall state
the reasons.

Article 20

The application for investigation for taking safeguard measures and the relevant evidential materials shall be submitted in print
hand of simplified Chinese characters. Where there are uniform technical jargons, such standardized language shall be used.

If the evidential materials provided by the applicant are in any foreign language, the applicant shall provide the foreign-language
full text of the said materials, and provide Chinese translation to the relevant parts.

Article 21

The application and the attached evidential materials shall include a confidential version (where the applicant pleads for keeping
secret) and a public version. Apart from a set of the original confidential version and 6 duplicates thereof, a set of the original
public version and 6 duplicates thereof, the applicant shall provide duplicates according to the number of the countries (regions)
of export of the imported product that is applied for investigation. If there are too many countries (regions) of export of the imported
product that is applied for investigation, the number of duplicates may be appropriately reduced, but no less than 5 duplicates.

Article 22

The applicant shall provide the electronic data version of the application and the evidential materials according to the computer
programs required by the Fair Import and Export Trade Bureau.

Article 23

The applicant shall submit the application and the evidential materials to the Fair Import and Export Trade Bureau by way of post
or direct service.

Article 24

The official application and the evidential materials submitted by the applicant shall be signed to acknowledgment of receipt by the
Fair Import and Export Trade Bureau. The day of signing shall be the day when the Fair Import and Export Trade Bureau receives the
application and relevant evidential materials.

Article 25

Before placing a case on file and making a public announcement, the MOFTEC shall keep the materials submitted by the applicant as
secret.

Chapter III Placing a Case on File

Article 26

The Fair Import and Export Trade Bureau may investigate the issues of the application and the evidential materials including the qualifications
of the applicant, the imported product that is applied for investigation by way of questionnaires and on-spot verifications, etc.

Article 27

The MOFTEC shall, as a general rule, decide whether to place the case on file within 60 days after receiving the written application
for taking safeguard measures. Where the circumstances are especially complicated, the time period for examination may be appropriately
extended.

Article 28

The Fair Import and Export Bureau may, within the time period as prescribed in Article 27 of the present Rules, request the applicant
to make readjustments or supplements to the application for investigation for taking safeguard measures. Where the applicant refuses
to make readjustments or supplements or fails to make the readjustments or supplements as requested, the application of the applicant
may be rejected and the applicant shall be informed.

Article 29

Where the MOFTEC decides to place a case on file, it shall inform the applicant of the decision not to place the case on file together
with the reasons thereof.

Article 30

Where the MOFTEC decides to place the case on file, it shall make a public announcement.

The public announcement shall clearly specify the following contents:

1.

The name and specifications of the imported product that is applied for investigation;

2.

The country (region) of the imported product that is applied for investigation;

3.

A summary account of the materials on which the place of the case on file is based;

4.

The date when the investigation for taking safeguard measures is initiated;

5.

The time limit of investigation for taking safeguard measures;

6.

The time limit for the interested parties to make comments;

7.

The contact information of the investigation organs.

Article 31

The MOFTEC shall inform the Committee for Safeguard Measures of the WTO within 7 working days after deciding to place the case on
file for investigations.

Article 32

The day when the case is place on file for investigation for taking safeguard measures shall be the day when the decision to place
the case on file is publicized.

Chapter IV Placing Cases on File by the MOFTEC on Its Own Initiatives

Article 33

Where the MOFTEC does not receive any written application for taking safeguard measures but has sufficient evidences to believe that
the increase in amount of the imported product causes serious damages to threatens to cause serious damages to the domestic industry,
it may decide to place the case on file on its own initiatives, and make investigations for taking safeguard measures.

Article 34

Where the MOFTEC places a case on file on its own initiative and makes investigations for taking safeguard measures, the evidential
materials that it obtains shall conform to the relevant provisions as mentioned in chapter II of the present Rules.

Chapter V Supplementary Provisions

Article 35

The power to interpret the present Rules shall remain with the MOFTEC.

Article 36

The present Rules shall enter into force as of March 13, 2002.