Article 1 The present Provisions are formulated in the light of the Regulation on the Safeguard Measures of the People's Republic of China (hereinafter referred to as the Regulation on the Safeguard Measures) in order to regulate the industry injury investigations under safeguard measures.

Article 2 The present Provisions shall apply to the activities related to the industry injury investigations under safeguard measures in the light of the Regulation on the Safeguard Measures.

Article 3 The Ministry of Commerce of the People's Republic of China (MOFCOM) shall take charge of the industry injury investigations under safeguard measures.
As for the industry injury investigations under safeguard measures related to agricultural products, the responsibility shall be jointly conducted by the MOFCOM and the Ministry of Agriculture.

Chapter II. Determination of Injury

Article 4 The term "industry injury" refers to a serious injury or a risk of serious injury induced by the increase of imported products to the domestic industry that produces like products or directly competitive products.
A serious injury refers to overall and serious impairment to the domestic industry.
A serious injury risk refers to a serious injury that is clearly imminent unless measures are taken against it.

Article 5 In the determination of a serious injury or a risk of serious injury caused to the domestic industry by increased imports, the following elements shall be considered:
(1) The increase of import products, including the absolute and relative increase rate and increase amount of imports;
(2) The share of the domestic market taken by the increased imports;
(3) The influence of the increased imports on the domestic industry, including the impact on the domestic industry in terms of output,
sales, market share, productivity, equipment utilization rate,
profits and losses, employment, etc.;
(4) Other elements that cause injury to the domestic industry.
The determination of a risk of serious injury shall be made on the
basis of the facts, by the means of examining the productivity ,
storage, export capacity, the possibility of the continuous increase
of exports to China of the export country and other elements, rather
than merely on the complaints, the conjectures or the least
possibility.
Article 6 In the determination of the impact of the increase of
import products on the domestic industry, the MOFCOM shall, on the
basis of the ascertained evidence, objectively and comprehensively
evaluate various quantifiable indicators that affect the status of
the domestic industry rather than simply based on several
indicators.
Article 7 The term " like products" refers to the same products as
the imported products under investigation; if not the same, the
products whose nature is most similar to that of the imported
products under investigation.
The term "directly competitive products" refers to the domestic
products not identical to the imported products under investigation,
but similar to them in use, and are substantially substitutable and
thus directly compete with the imported products under
investigation.
Article 8 In the determination of like products and directly
competitive products, there are some factors that shall be taken
into account, including the physical characteristics of the
products, chemical performance, manufacturing equipment and
techniques, purposes of use, substitutability, appraisal of
consumers and producers, distribution channels, and price, etc.
Article 9 In the process of the industry injury investigation, the
MOFCOM shall give users or consumers of imported products an
opportunity to present their views and evidences.
Article 10 The period subject to industry injury investigation shall
generally be 3 - 5 years before the investigation commences.
Chapter III. Industry Injury Investigation
Article 11 When any interested party intends to take part in the
investigation of an industry injury under safeguard measures, it
shall submit an application to the MOFCOM within 20 days from the
day when an announcement on the industry injury investigation for
taking safeguard measures is made, and shall carry out relevant
registration formalities. At the same time, it may present its views
and arguments about the industry injury under investigation and
offer corresponding proofs.
Article 12 The interested parties may be:
(1) Overseas producers, export business operators, and domestic
import business operators of the products under investigation, or
guilds or other organizations of the producers, export business
operators and import business operators of the products under
investigation;
(2) The government of the country (region) of origin and the export
country (region) of the products under investigation as well as the
representatives thereof;
(3) The producers and business operators of domestic like products,
or guilds or other organizations of the producers and business
operators of the products; or
(4) others.
Article 13 In the case that an interested party takes part in the
investigation, he shall present his identification certificate. If
the interested party is an enterprise or any other organization, it
shall present its business license and other registration
certificates, and the identification certificate of the legal
representative.
In the case that an interested party entrusts an agent to take part
in the investigation, it shall present identification certificate of
the agent and a power of attorney. In the case that an interested
party entrusts a lawyer as his agent, the lawyer shall come from a
law firm in China and shall practice law in China, and a power of
attorney, the business license of the law firm and the law-practice
certification of the lawyer shall be submitted.
Article 14 The objects of the MOFCOM''s industry injury
investigation for taking safeguard measures include domestic
producers, domestic import business operators, domestic purchasers,
domestic end consumers, overseas export business operators and
overseas producers, etc.
Article 15 The MOFCOM may, whenever necessary, hire experts in the
fields of the relevant industry, accounting, economic and trade and
law to provide advisory services it. The experts involved shall keep
the secrets to themselves.
Article 16 The MOFCOM shall take a lot of means to conduct an
industry injury investigation, including questionnaires, sampling,
hearing, technical authentication, on-the-spot investigations and
other forms.
Article 17 The questionnaires sent by the MOFCOM to the interested
parties takes a lot forms, including domestic producer
questionnaires, domestic importer questionnaires, domestic consumer
questionnaires, overseas producer and overseas exporter
questionnaires, and other types of questionnaires.
Article 18 The answers to the questionnaires shall be submitted by
the interested party according to the method and time limit as
specified in the questionnaires. If there is a need needs to extend
the time limit, it shall, 7 days prior to the time limit for the
submission of answers, submit a written application to the MOFCOM
and make an explanation. It is for the MOFCOM to decide whether to
extend the time limit or not.
Article 19 The MOFCOM may conduct on-the-spot investigations to the
interested parties. Prior to the on-the-spot investigation, it shall
notify the relevant interested parties of the main purposes and
content of the examination beforehand.
Article 20 As requested by the interested parties or in need of the
investigation, the MOFCOM may, upon the approval of the relevant
country (region), send persons to this country (region) to conduct
investigations on the productivity, investments in expanding
production, storage, place of origin or entrepot, the affiliation
among the enterprises and other information related to the product.
Article 21 The MOFCOM may request the interested parties to submit
or supplement written materials in the light of the relevant
requirements, and the interested parties may voluntarily submit
written materials to the MOFCOM as well.
Article 22 As requested by the interested parties, or whenever the
MOFCOM considers necessary, a hearing of industry injury may be
held.
Article 23 In the case that an interested party who takes part in
the industry injury investigation considers it necessary to keep the
materials and the relevant evidence secret, it shall, when
submitting the materials to the MOFCOM, offer simultaneously a
non-confidential summary of the materials, or submit confidential
texts and open texts of the materials.
Article 24 If any interested party who takes part in the industry
injury investigation fails to offer non-confidential summary or open
texts of the materials submitted by it, or fails to present good
reasons, the MOFCOM may refuse to consider the materials. If the
MOFCOM does not consider it necessary to keep the materials submitted by an interested party secret, it may request the interested party to withdraw its application for keeping secrets.

Article 25 During the process of industry injury investigation, any interested party subject to the industry injury investigation shall faithfully present the information and offer relevant materials. In the case that any interested party fails to do so, or fails to provide necessary information within a reasonable time limit, or seriously intervene the investigation by any other means, the MOFCOM may make a judgment on the basis of the facts it has already
obtained and the best information available.

Chapter IV. Supplementary Provisions

Article 26 When an interested party, who takes part in the industry injury investigation, offers any document or evidential material to the MOFCOM, it shall submit the original Chinese text in quintuplicate accompanied by relevant electronic text (computer floppy disks or CDs) in triplicate.

Article 27 In the industry injury investigation, the standard Chinese prescribed by the administrative department of languages of  the state shall be taken by the MOFCOM as the formal language. Any document, materials or information offered by an interested party shall be written in standard Chinese. As for any non-Chinese materials, a Chinese version and the original text shall be submitted, and the Chinese version shall prevail. Any non-Chinese materials without attaching a Chinese translation shall not be considered as valid and lawful evidential material.

Article 28 The authority to interpret the present Provisions shall remain with the MOFCOM.

Article 29 The present Provisions shall go into effect 30 days after promulgation. And at the same time , the Provisions on Safeguards Investigation and Ruling of Industry Injury (Order No. 47 (2002) of the former State Economic and Trade Commission shall be abolished.

Bright Jon, Attorney-at-law   Fax: +86-512-53516040   email@colaw.cn