India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017

Rule 11. Application of bilateral safeguard measure

(1) On receipt of the recommendation of the Director General, in order to prevent or remedy serious injury and to facilitate adjustment in respect of the originating good covered under the final findings, the Central Government may suitably amend the notification, issued under sub - section (1) of section 25 of the Customs Act, 1962 (52 of 1962) to give effect to the provisions of the Trade Agreement, so as to - 

(a) suspend further reduction of any rate of customs duty on the originating good provided for under the Trade Agreement; or 
(b) increase the rate of customs duty on the originating good to a level not to exceed the lesser of : 

(i) the Most Favoured Nation applied rate of customs duty on the originating good in effect at the time when the bilateral safeguard measure is taken ; and 
(ii) the Most Favoured Nation applied rate of customs duty on the originating good in effect on the day immediately preceding the date of entry into force of the Trade Agreement. 

(2) No bilateral safeguard measure under these rule s may be imposed in respect of a good on which action under sub - section (1) of section 8B of the Customs Tariff Act, 1975 (51 of 1975) is in place and i n the event of a safeguard measure being imposed in respect of a good under sub - section (1) section 8B of the Customs Tariff Act, 1975 (51 of 1975), any existing bilateral safeguard measure which has been imposed under these rules in respect of that good shall be terminated prior to the imposition of the action to be applied pursuant to sub - section (1) of section 8B of the Customs Tariff Act, 1975 (51 of 1975).
 
(3) In case, the final finding of the Director General is contrary to the prima facie evidence on whose basis the investigation was initiated and the final finding does not have recommendation for app lying bilateral safeguard measure, the Central Government shall within thirty days of the publication of final findings by the Director General under rule 10, withdraw the provisional bilateral safeguard measure imposed, if any. 

(4) Upon termination of the bilateral safeguard measure, whether provisional or final, the rate of customs duty for an originating good subject to the measure shall be the rate which would have been in effect but for the bilateral safeguard measure.