Safeguard Measures Ordinance, 2002

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THE SAFEGUARD MEASURES ORDINANCE, 2002   
 
 
 
 
 
      CONTENTS 
       __________   
 
1                 Short title, extent and commencement  
2                 Definitions  
3                 Application of safeguard measures  
4                 Serious injury  
5                 Threat of serious injury  
6                 Factors other than increased imports  
7                 Initiation of investigation  
8                 Withdrawal of application before initiation  
9                 Initiation of investigation  
10               Notice of initiation of investigation  
11               Participation of interested parties  
12               Schedule for investigation  
13               Conduct of investigation  
14               Confidentiality   
15               Information to participating interested parties  
16               Written arguments and hearings  
17               Reliance on information available  
18               Application of provisional safeguard duty  
19               Report of provisional determination  
20               Notice of non­application of provisional safeguard duty  
21               Decision to apply provisional safeguard duty by the Federal Government  
22               Notification and consultations  
Update Till 22.8.2022
Updated Till 23.8.2022
Updated Till 23Updated Till 23.8.2022
 
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23               General principles governing application of definitive safeguard measure  
24               Determination of serious injury or threat thereof  
25               Decision by the Federal Government to apply definitive safeguard measure  
26               Public notice of application of definitive safeguard measure  
27               Notification and consultation  
28               Form and application of definitive safeguard measure  
29               Non­application of definitive safeguard measure to certain developing countries  
30               Quota as definitive safeguard measure  
31               Termination without application of safeguard measure  
32               Duration of definitive safeguard measure  
33               Progressive liberalisation  
34               Review  
35               Extension of definitive safeguard measure  
36               Reapplication of a safeguard measure  
37               Duties and fees to be held in non­lapseable personal ledger account  
38               Power to make rules  
39               O mitted  
40               Omitted  
41               Omitted 
 
42               Protection to persons prejudiced in employment because of 
assisting the commission  
43               Appointment of advisers and consultants  
44               Omitted  
45               Removal of difficulties  
46               Act to override other laws   
 
 
 
 
 
 
 
  

 
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THE SAFEGUARD MEASURES  ORDINANCE , 2002. 
 
ORDINANCE NO. XXXI OF 2002 
[20th July, 2022] 
 
An Ordinance to provide for the imposition of Safeguard Measures  
 
WHEREAS it is expedient to give effect in Pakistan to the provisions of Article XIX of the General 
Agreement on Tariffs and Trade, 1994, and to the Agreement on Safeguards to provide for the 
imposition of safeguard measures in accordance therewith, to provide a fr amework for investigation 
and determination of serious injury or threat of  serious injury caused by  products imported into 
Pakistan and for matters ancillary thereto or connected therewith; 
 
AND WHEREAS the President is satisfied that circumstances exist which render it necessary to 
take immediate action;  
 
NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of 
October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional 
Constitution Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the 
President of the Islamic Republic of Pakistan is pleased to make and promulgate the following 
Ordinance :⎯  
PART I 
PRELIMINARY 
 
 
1. Short title, extent  and  commencement . ⎯ (1) This Ordinance may be called the 
Safeguard Measures Ordinance, 2002. 
(2) It extends to the whole of Pakistan.  
(3) It shall come into force at once. 
 
 
2. Definitions.−In this Ordinance, unless there is anything repugnant in the subject or context,­ 
 
(a)  “Agreement on Safeguards” means the Agreement on Safeguards included in 
Annex (1A) to the Final Act of the Results of the Uruguay Round concerning 
the Implementation of Article XIX of the General Agreement on Tariffs 
and Trade, 1994; 
 
(b)   “Commission” means the  National Tariff Commission established under  
the National Tariff Commission Act, 1990 (VI of 1990); 
 
(c)  “Committee” means the Committee on Safeguards of the WTO established 
pursuant to Article 13 of the Agreement on Safeguards; 
 

 
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(d)   “country” means any country or territory  whether  a  Member or not and    
includes a customs union or separate customs territory; 
 
(e)  “developing country” means a country categorized as such by the WTO; 
 
(f)  “domestic industry” means the producers as a whole of products which are like 
or directly competitive with the investigated product, operating within Pakistan 
or those producers operating within Pakistan whose collective output of like or 
directly competitive products constitutes a major proportion  of the total 
production of such products in Pakistan; 
 
(g)  “interested party” includes⎯ 
(i)  the exporter or foreign producer of an investigated product. 
(ii)  the importer of an investigated product; 
(iii)       trade or business associations a majority of the members of which 
are producers, exporters or importers of an investigated product; 
(iv)  the producer of a domestic like or directly competitive product in 
Pakistan; 
(v)  trade  or  business associations  a  majority of  the  members  of  
which produce  a domestic like or directly competitive product in 
Pakistan; and 
(vi)  such other person or group of persons as the Commission may 
from time to time notify in the official Gazette; 
(h)   “investigated  product”  means  an  imported  product  subject  to  an  
investigation,  as described in the public notice of initiation of an investigation 
referred to in clause (b) of sub­section (1) of section 10; 
(i)  “investigation” means an investigation conducted under this Ordinance; 
(j)  “like product” means a product which is alike in all respects to an investigated  
product or, in the absence of such a product, another product which, although 
not alike in all respects, has  characteristics closely resembling those of  the 
investigated product; 
 
(k)  “Member” means a country which is a member of the WTO; 
 
(l)  “participating interested  parties” means those interested parties that have 
indicated their interest in participating in an investigation, to the Commission 
under section 11; 
 
(m)  “prescribed” means prescribed by rules made under this Ordinance; 
 
(n)  “public notice” means a notice published in the official Gazette; 
 
(o)  “quota” means import quotas including tariff rate quotas; 

 
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(p)   “serious injury” means a  significant overall impairment in the  position of 
a  domestic industry cau sed by increased imports, absolute or relative to 
domestic production, of an investigated product; 
 
(q)  “threat of serious injury” means serious injury that is clearly imminent; and 
   
(r)  “WTO” means the  World Trade  Organisation established pursuant to  the   
Marrakesh Agreement concluded in Marrakesh, Morocco, on the 15th April, 
1994. 
 
____________ 
PART II 
SAFEGUARD MEASURES   
3. Application of safeguard measures.  The Federal Government may, by notification in the 
official Gazette, apply a safeguard measure on an investigated product imported into Pakistan if, it has 
been determined by the Commission pursuant to an investigation conducted by it in accordance with 
the provisions of this Ordinance that as a result of unforeseen developments and of the effect of W.T.O 
obligations assumed by Pakistan . the investigated product is being imported in such increased 
quantities absolute or relative to domestic production, an d under such conditions as to cause serious 
injury or threat of serious injury to domestic industry producing like or directly competitive products. 
 
________________ 
 
PART III 
 
SERIOUS INJURY OR THREAT OF SERIOUS INJURY AND CAUSATION 
 
4. Serious injury.  A determination of serious injury or threat of serious injury shall be based 
upon an evaluation, by the Commission, of all relevant factors of an objective and quantifiable nature 
having a bearing on the situation of domestic  industry including, but not limited to, the following, 
namely:⎯ 
 
(i)  the rate and amount of an increase in imports of an investigated product, in absolute 
terms and relative to domestic production of like or directly competitive products; 
 
(ii)  the share of domestic market taken by increased imports of an investigated product; 
 
(iii)  the impact of increased imports of an investigated product on domestic industry, as 
evidenced by relevant indicators including, but not limited to, production, productivity, 
capacity utilisation, sales, market share, profits and losses, and employment; and 
 
(iv)  factors other than increased imports of an investigated product which at the same time 
are causing serious injury or threat of serious injury. 
 
5. Threat of serious injury. ⎯ (1) In determining threat of serious injury, the Commission 
shall in addition to the factors specified in section 4, evaluate the following, namely:⎯ 

 
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(i)  the actual and potential export capacity of the country of production or origin 
of an investigated products; 
 
(ii) any build­up of inventories of an investigated products in Pakistan and in the 
country of exportation; 
 
(iii) the probability that imports of an investigated product shall enter domestic 
market in increasing quantities; and 
 
(iv) any other factors deemed relevant by the Commission. 
 
6. Factors other than increased imports. When serious injury or threat of serious injury is 
being caused by factors other than increased imports of an investigated product, such injury shall not 
be attributed to the increased imports. 
 
__________
 
PART IV  
INVESTIGATION 
 
7.  Initiation of investigation. ⎯(1) An investigation to determine serious injury or threat  
of serious injury may be initiated by the Commission ⎯ 
 
 (a)  upon receipt by the Commission of a written application for initiation of an 
investigation by or on behalf of domestic industry; or 
 
(b)  suo moto by the Commission where it is satisfied that there is sufficient 
evidence to justify the initiation of an investigation. 
 
(2) The application referred to in clause (a) of sub­section (1) shall⎯ 
 
(i)  be submitted to the Commission in such manner, number and form and with 
such fee as may be prescribed; and 
 
(ii)       include such information as may be prescribed. 
 
8. Withdrawal of application before initiation. An application received by the Commission 
pursuant to clause (a) of sub­section (1) of section 7 may be withdrawn prior to initiation of an 
investigation by the Commission in which case it shall be considered not to have been made: 
 
Provided that upon such withdrawal of an application any fee paid along with the application 
pursuant to clause (i) of sub­section (2) of section 7 shall stand forfeited in favour of the Commission. 
 
9. Initiation of investigation.⎯ (1) The Commission shall examine the accuracy and 
adequacy of the evidence given in an application received pursuant to clause (a) of sub­section (1) 
of section 7 in order to determine whether it is compliant with the requirements of sub­section (2) of 
section 7 and, if so, whether there is sufficient evidence to justify initiation of an investigation. 

 
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  (2) An application received by the Commission pursuant to clause (a) of sub-section (1) of 
section 7 shall be rejected if the Commission is satisfied that there is not sufficient evidence of 
serious injury or threat of serious injury to justify initiation of an investigation. 
 
(3) The Commission may seek additional information from an applicant submitting an 
application pursuant to clause  (a) of subsection  (1) of section  7, before deciding whether to initiate 
an investigation and such information shall be provided by the applicant to the Commission within 
such time and in such manner as the Commission may direct. 
 
(4) When the Commission is satisfied that there is sufficient evidence of serious injury or threat 
of serious injury to justify the initiation of an investigation, it shall initiate an investigation. 
 
(5) Where the Commission does not consider it appropriate to initiate investigation, it shall 
notify its decision  by a public notice of non­initiation of an investigation and such notice shall 
contain such information as may be prescribed: 
 
Provided that the Commission may, if it deems fit, only publish a summary of the public 
notice of non­initiation of an investigation in the official Gazette provided that a full text of 
such notice is promptly placed in the public file to be maintained by it pursuant to section 15. 
 
(6) The Commission shall decide whether or not to initiate an investigation within such time 
period as may be prescribed : 
 
Provided  that  different  time  periods may  be  prescribed  for  this  purpose depending 
on  the complexity of the issues involved. 
 
10. Notice of initiation of  investigation. ⎯(1) Where the Commission has decided to initiate 
an investigation it shall ⎯ 
 
(a)  immediately notify the Federal Government of its decision and the Federal 
Government shall immediately notify  the Committee of such decision in 
accordance with any requirements established by a Committee therefor; and 
 
(b)  notify its decision by means of a public notice of initiation of an investigation. 
 
(2) The public notice of initiation of an investigation referred to in clause (b) of sub­section 
(1) shall be in such form and contain such information as may be prescribed and the initiation of 
an investigation shall be effective on the date on  which such notice is published  in the o fficial 
Gazette: 
 
Provided that the Commission may, if it deems fit, only publish a summary of the public 
notice of initiation of an investigation referred to in clause (b) of sub-section (1) in the official 
Gazette provided that a full text of such notice is promptly placed in the public file to be 
maintained by it pursuant to section 15. 
 
(3) The Commission shall promptly provide a copy of the full text of public notice of initiation 
of an investigation referred to in clause (b) of sub­section (1) the Federal Government. 
 

 
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11. Participation of interested parties.−(1) Any interested party desiring to participate in 
an investigation shall have a period of fifteen days from the date of initiation of the investigation 
to indicate to the Commission, in writing, of its interest in participating in the investigation: 
 
Provided that the Commission may, at its discretion, allow any interests party to indicate 
its interest in participating in an investigation after the expiry of the fifteen days time period, 
upon good cause shown. 
 
  (2) Subject to the requirement to protect confidential information pursuant to section 14 and 
upon payment  to  the  Commission of the  prescribed  fee,  the  Commission shall, after  initiation 
of an investigation, provide any interested party on application the full text of the application 
received by the Commission pursuant to clause (a) of sub­section (1) of section 7. 
 
12. Schedule for investigation.: ⎯(1) The Commission shall complete a n  investigation 
within four months from the date of its initiation 
 
Provided that the Commission may extend such four months period where it deems it 
necessary for a further period not exceeding two months. 
 
(2) Where the application of a provisional measure is to be considered by the Commission, it 
shall reach its provisional determination no later than forty­five days, from the date of initiation 
of an investigation: 
 
Provided that  the  Commission may  extend  such  forty­five  days  period, where  it  
deems  it necessary, for a further period not exceeding fifteen days. 
 
13. Conduct of  investigation.⎯ (1) The Commission may seek from applicant submitting an 
application pursuant to clause (a) of sub­section (1) of section 7 or any or all of the participating 
interested parties, customs agents, inspection companies, forwarders, or any other enterprise or entity 
of the public or private sector, such data or information as it considers relevant or necessary for 
performance of its functions under this Ordinance and such data or information shall be provided to 
the Commission within such time period and in such manner as the Commission may direct. 
 
(2) The Commission may conduct on­the­spot investigations to verify or obtain further details 
concerning the information provided: 
 
Provided that where such investigations are conducted, the Commission shall 
prepare a report describing the findings of the verification and, subject to the requirement 
to protect  confidential information  pursuant to section 14, a copy of such  report shall be 
promptly placed in the public file to be maintained by it pursuant to section 15. 
 
14. Confidentiality.−(1) Subject to sub­section (2), the Commission shall, during and after 
an investigation, keep confidential any information submitted to it and such information shall not 
be disclosed without specific permission of the party submitting it. 
 
 
 
 

 
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(2) Information which is⎯ 
 
(a)   by nature confidential, because its disclosure shall be of significant competitive 
advantage to a competitor, or because its disclosure would have a significantly adverse 
effect upon a person supplying the information, or  upon a person  from whom the 
information was acquired; 
 
(b)     determined by the Commission to be of a confidential nature for any other reason; or 
 
(c)  provided on a confidential basis by parties to an investigation, shall, upon good     
cause shown, be treated as confidential by the Commission. 
 
(3) The following types of information shall be deemed to be by nature confidential, unless 
the Commission determines that disclosure in a particular case would  neither be of  significant 
competitive advantage  to  a  competitor nor have  a  significantly adverse  effect  upon a  person 
supplying the information or upon a person from whom such information was acquired, namely:⎯ 
 
(a)  business or  trade  secrets  concerning the  nature  of  a  product,  production processes, 
operations, production equipment, or machinery; 
 
(b)  information concerning the  financial condition  of  a  company which is not  
publicly available; and 
 
(c) information concerning costs, identification of customers, sales, inventories, shipments, 
or amount or source of any income, profit, loss or expenditure related to manufacture 
and sale of a product. 
 
(4) Any party seeking any information to be kept confidential shall request for the same at 
the time  the information is submitted, along with the reasons warranting  confidentiality. The 
Commission shall consider such requests  expeditiously and inform the  party  submitting the  
information if it determines that the request for  keeping the information confidential is not  
warranted. 
 
(5) Any party submitting any information with the request to keep it confidential shall furnish 
non­confidential summary of all such information. Such summary may take the form of ranges or 
indexation of figures provided in the confidential version or marked deletions in text or in such 
other form as the Commission may require: 
 
Provided that such non­confidential summary shall permit a reasonable understanding 
of the substance of the information submitted in confidence: 
Provided further that any deletion in text shall, unless otherwise allowed by the 
Commission, only relate to names of the buyer or supplier. 
 (6) In exceptional circumstances, any party submitting confidential information may indicate 
that much information is not susceptible of summary, in which case a statement of the reasons why 
summarisation is not possible shall be provided.  If the Commission  concludes that the  
non­confidential summary provided fails to satisfy the requirements of sub­section (5), it may 
determine that the request for keeping the information confidential is not warranted. 

 
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(7)  If the Commission  finds that a request for keeping  the information confidential is not 
warranted, and if the supplier of such information is unwilling to make the information public or 
to authorise the disclosure in generalised or summary form, the Commission shall disregard such 
information and return the same to the party submitting it. 
 
(8) Notwithstanding anything contained in this Ordinance or in any other law for the time being 
in force,  any confidential information received  or obtained, directly or indirectly, by the 
Commission pursuant  to  or  in  connection  with  an  investigation  shall  not  be  subject  to  
disclosure  by  the Commission to  any  Ministry,  Division, department,  agency  or  instrumentality  
of  the  Federal Government or a Provincial Government without the prior permission of the party 
submitting such confidential Information, 
 
15. Information to participating interested parties.⎯(1) The Commission shall  
establish and maintain  a public file relating to each investigation or review pursuant to this 
Ordinance and such file shall contain such information as may be prescribed. 
 
(2) The public file to be maintained under sub­section (1) shall be available to any participating 
interested party for examination and, upon payment of the prescribed fee to the Commission 
for copying,  at the offices of t he Commission during such time se the Commission may notify, 
throughout the course of an investigation or review under this Ordinance. 
 
16. Written arguments and hearings .⎯(1) D uring an investigation any participating 
interested party may submit written a rguments to the Commission in  such form and manner and 
within such time period as may be prescribed. 
 
(2) During an investigation the Commission may hold a hearing at which participating 
interested parties may present information and arguments orally, in accordance with such provisions 
as may be prescribed: 
 
Provided that such information and arguments shall be only taken into consideration by 
the Commission if the same are confirmed in writing to the Commission. 
 
17. Reliance on information available.  If, at any time during an investigation, any 
interested party⎯ 
(a)  refuses access to, or otherwise does not provide, necessary information within 
the period of time as may be prescribed; or 
 
      (b)   otherwise significantly impedes the investigation, the Commission may        
make determinations under this Ordinance on the basis of the available 
information. 
 
 
 
 
 
______________ 
 
 
 

 
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PART V 
APPLICATION OF PROVISIONAL SAFEGUARD DUTY 
18. Application of provisional safeguard duty.⎯(1)Subject to the provisions of this 
Ordinance, the  Federal Government may, by notification in the official Gazette, impose a 
provisional safeguard duty on an investigated product where the commission determines that⎯ 
 
(a)   there are critical circumstances such that delay in taking action would cause damage 
which would be difficult to repair; and 
 
(b)  there is clear evidence of serious injury or threat of serious injury. 
(2) A provisional safeguard duty shall⎯ 
(a)  take the form of duty on an investigated product not exceeding the amount which the 
Commission considers adequate to prevent the occurrence of or facilitate recovery 
from serious injury or threat of serious injury, as recommended by the Commission 
pursuant to clause (a) of sub­section (3) of section 19; 
 
(b)   be imposed in addition to any other duties levied on an investigated product under 
any other law for the time being in force; and 
 
(c)  be collected in the same manner as customs­duty under the Customs Act, 1969 (IV of 
1969). 
 
(3) A provisional safeguard duty shall be applied for a period not exceeding two hundred 
days and may be suspended before its date of expiration if so determined by the Federal Government. 
 
19. Report  of provisional  determination.−(1) Immediately upon reaching a determination 
of the factors set forth in clauses (a) and (b) of sub­section (1) of section 18, the Commission 
shall prepare  a  report  of  provisional determination  containing  a  detailed  analysis of  the  
information obtained in an investigation and setting forth the Commission's findings and reasoned 
conclusions on the existence of the factors set forth in clauses (a) and (b) of section 17 
  (2) The Commission shall submit the report of provisional determination referred to in 
sub­section (1) to the Federal Government for its consideration. 
 
(3) Where the Commission has reached an affirmative determination of the existence of 
the factors set forth in clauses (a) and (b) of sub­section (1) of section18, the report of provisional 
determination referred to in sub­section (1) shall also include the Commission's recommendation 
regarding⎯ 
 
(a) the amount of provisional safeguard duty the Commission considers adequate    
to prevent occurrence of or facilitate recovery from serious injury or threat of 
serious injury ; and 
(b)  subject to the provisions of section 17, the duration of levy of the provisional 
safeguard duty. 
 

 
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20. Notice of non­application of provisional safeguard duty.−(1) Where the Commission 
reaches a negative determination of the existence of the factors set forth in clauses (a) and (b) of sub­ 
section (1) of section 18, it shall notify its decision by means of a public notice of non­application of 
provisional safeguard duty and such notice shall contain such information as may be prescribed; 
 
Provided that the Commission may, if it deems fit, only publish a summary of the public notice 
of non­application of a provisional safeguard measure in the official Gazette provided that a full 
text of such notice is promptly placed in the public file to be maintained pursuant to section 15. 
(2) The Commission shall promptly provide a copy of the full text of the notice of 
non­application of  provisional safeguard  duty referred to in sub­section (1)  to the Federal 
Government. 
21. Decision to apply provisional safeguard duty by the Federal  Government.⎯ (1) 
Where the report of provisional determination received by the Federal Government pursuant to 
section 19 contains an affirmative determination of the existence of the factors set forth in clauses (a) 
and (b) of sub­section (1) of section 18, the Federal Government shall, no later than fifteen days 
after the receipt of such report from the Commission, take a decision, affirmative or negative, 
regarding the imposition of  provisional  safeguard  duty  on  an  investigated  product,  taking  into  
account  the recommendations of the Commission set forth in the report of provisional determination. 
 
  (2) Immediately upon taking  an affirmative  decision regarding imposition of a provisional  
safeguard duty, the Federal Government shall notify its decision by means of a public notice of 
application of a provisional safeguard duty: 
 
Provided that the Federal Government may, if it deems fit, only publish a summary of 
the public notice of application of a provisional safeguard measure in official Gazette provided 
that a full text of such notice shall be promptly  placed in the public file to be maintained 
pursuant to section 15. 
 
(3) The public notice  of application of a provisional safeguard measure referred to in 
sub­section (1) shall contain such information as may be prescribed and a copy of the full text 
thereof shall be provided by the Federal Government to the Commission. 
 
22. Notification and consultations. ⎯ (1) Immediately upon receipt of the Commission's 
report pursuant  to section 19,  the Federal Government  shall notify  the Committ ee of  the 
recommendation in conformity with any requirements established by the Committee therefore. 
 
  (2) The Federal Government shall immediately engage in consultations, upon a request from 
any Member having a substantial interest as an exporter of an investigated product subject to the 
provisional safeguard duty, in accordance with the requirements of the Agreement on Safeguards. 
 
 
___________________ 
 
                                                        
 
 
 

 
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PART VI 
 
APPLICATION OF DEFINITIVE SAFEGUARD MEASURES AND DETERMINATION 
REGARDING SERIOUS INJURY OR THREAT THEREOF 
 
 
23. General principles governing  application of definitive safeguard measure. ⎯(1) 
Subject to the  provisions of this Ordinance, the Federal Government may, by notification in the  
official Gazette, impose  a definitive safeguard measure where the  Commission makes a final 
affirmative determination of the existence of serious injury or threat of serious injury. 
 
(2) The duration and level of any such measure shall be no more than is necessary to prevent 
or remedy serious injury and to facilitate adjustment. 
 
24. Determination of serious injury or  threat thereof. ⎯(1) The Commission shall 
determine the existence  of serious injury or threat of serious injury, in conformity with the 
provisions of sections 4 and 5 and on the basis of objective evidence obtained in an investigation. 
 
(2) Immediately upon reaching its determination, whether  affirmative or negative, as to  
the existence of serious injury or threat of serious injury pursuant to sub-section (1), the Commission 
shall prepare a report of its final determination containing a detailed analysis of the information 
obtained in an investigation and setting forth the Commission's findings and reasoned conclusions 
on all pertinent issues of fact and law including a demonstration of the relevance of the factors 
examined by the Commission. 
 
(3) The Commission shall submit the report of its final determination referred to in sub­section 
(2) to the Federal Government for its consideration. 
 
(4) Where the Commission has reached an affirmative final determination of serious injury 
or threat of serious injury pursuant to sub­section (1), the Federal Government shall, immediately 
upon receipt of the report of final determination from the Commission, notify the Committee of 
such a ffirmative final determination in conformity with  any requirements established by the 
Committee therefore. 
 
(5) Where the Commission has reached an affirmative final determination of serious injury 
or threat  of serious injury, its report of final determination referred  to in sub­section (2) shall 
also include the  Commission's recommendation regarding the  form, level and duration of a  
definitive safeguard measure: 
 
Provided that where the Commission recommends that a definitive safeguard measure 
take the form of a quota on import of an investigated product, such recommendation shall 
be consistent with the provisions of section 30. 
 
(6) Where the Commission has reached a negative final determination of serious injury or 
threat of serious injury pursuant to sub­section (1), it shall notify its decision by means of a public 
notice of negative final determination and  such notice shall include such  information as may be 
prescribed:  
 
Provided that the Commission may, if it deems fit, only publish a summary of the 
public notice of negative final determination in the official Gazette provided that a full text 
of such notice shall be promptly placed in the public file to be maintained pursuant  to section 
15. 

 
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(7) The Commission shall promptly provide a copy of the full text of the public notice of negative 
final determination referred to in sub­section (6) to the Federal Government. 
 
(8) Where the Commission has reached a negative final determination, the Federal 
Government shall, by notification in the official Gazette, within fifteen days of receipt of the public 
notice of negative  final determination  referred to in sub-section (5), withdraw the provisional 
safeguard duty, if any, imposed on an investigated product. 
 
 (9) Where the Federal Government has withdrawn a provisional safeguard duty imposed on 
an investigated product pursuant to sub­section (8), the Commission shall promptly refund the 
actual amount collected as provisional safeguard duty on the investigated product, upon receipt of 
a written application from the importer in question. 
 
(10) Where the Commission recommends that a definitive safeguard measure take the form of 
a definitive safeguard duty, it shall⎯ 
 
(a)  specify the rate   of  definitive safeguard duty  the  Commission considers adequate  
to prevent the occurrence of or facilitate recovery from serious injury or threat of 
serious Injury; and 
 
(b) subject to the provisions of section 32, the duration of levy of a definitive safeguard 
duty and  where the period so recommended is more than one year, recommend a 
timetable for progressive  liberalisation adequate to facilitate positive adjustment of  
domestic industry. 
 
25. Decision by the Federal Government to apply definitive safeguard measure.  Where the 
report of final determination received by the Federal Government pursuant to section 24, contains 
an affirmative determination of serious injury or threat of serious injury, the Federal Government 
shall, no later than thirty days after the receipt of such report from the Commission, take a 
decision, affirmative or negative, regarding the imposition of a definitive safeguard measure on an 
investigated product, taking into account the recommendations of the Commission set forth in the 
report of final determination. 
 
26. Public notice of application of definitive safeguard measure.⎯(1) Immediately upon 
taking a decision regarding the imposition of a definitive safeguard measure, whether affirmative or 
negative, the Federal Government shall notify its decision by means of a public notice of application 
of a definitive safeguard measure. 
 
(2) The public notice of application of a definitive safeguard measure referred to in sub­section 
(1) shall contain such information as may be prescribed and a copy thereof shall be provided by 
the Federal Government to the Commission: 
 
Provided that where Federal Government has taken a decision not to impose a definitive 
safeguard measure, the public notice of final determination referred to in sub­section (1) shall 
only set forth the factual and legal basis for the decision: 
 
Provided further that the Federal Government may if it deems fit, only publish a summary 
of the public notice of final determination referred to in subsection (1) in the official Gazette 
provided that a full text of such notice shall be promptly placed in the public file to be maintained 
pursuant to section 15. 

 
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27. Notification and consultation.⎯(1) Immediately upon taking a decision to apply a 
definitive safeguard measure but before such measure comes into force, the Federal Government 
shall notify the  Committee  regarding the  evidence  of serious injury or threat  of serious injury,  
the  precise description of an investigated product, the form, level and duration of the proposed 
measure, the proposed date  of application of the measure, and, where applicable, the proposed 
timetable for its progressive l iberalisation. Such notification shall conform to any requirements 
established by the Committee therefore. 
 
(2) Where the Federal Government proposes to apply a definitive safeguard measure it shall 
provide adequate opportunity for prior consultations with those Members requesting consultations 
and having a substantial interest as exporters of an investigated product subject to the definitive 
safeguard measure, with a view to, inter alia, reviewing the information notified to the Committee 
regarding the finding of serious injury or threat of serious injury and regarding the proposed measure, 
exchanging views about the measure, and reaching an understanding on ways to achieve the objective 
set forth in sub­section (3). 
 
(3) In applying a  definitive  safeguard measure,  the  Federal  Government shall endeavour 
to maintain a substantially equivalent level of concessions and other obligations to those existing 
under the General Agreement on Tariffs and Trade, 1994, between Pakistan and the exporting 
Members which would be affected by such measures. 
 
(4) For the purposes of maintaining a substantially equivalent level of concessions and other 
obligations as referred to in sub­section (3), agreement may be reached  with affected  Members, 
through the consultations referred to in sub-section (2), on any adequate means of trade 
compensation for  the adverse e ffects of  a definitive safeguard  measure on  the trade of  those 
Members. 
 
(5)  The  Federal  Government  shall  notify  the  Council  for  Trade  in  Goods  of  the  WTO 
immediately, through the Committee, of the results of any consultations undertaken pursuant to this 
section, including, where applicable, any compensation granted. 
 
28.  Form and application of definitive safeguard measure  .⎯ (1) A definitive safeguard  
measure may take the form of either a definitive safeguard duty on an investigated product or a quota 
on imports of the investigation product, as may be recommended by the Commission in its report of 
final determination referred to in sub­section (5) of section 24. 
 
 (2) Subject to the provisions of section 29, a definitive safeguard measure shall be applied to 
all imports of an investigated product, irrespective of source, imported into Pakistan on or after the 
date on which the measure comes into force. 
 
(3) Where a definitive safeguard measure takes the form of a definitive safeguard duty, such 
duty shall be⎯ 
 
(a)  in the form of duty on an investigated product not exceeding the amount which 
the Commission considers adequate to prevent the occurrence of or facilitate recovery 
from serious injury or threat of serious injury, as recommended by the Commission 
pursuant to clause (a) of sub-section (10) of section 24; 
 

 
Page 16 of 21 
 
(b) imposed in addition to any other duties imposed on an investigated product under any 
law for the time being in force; and 
(c) collected in the same manner as customs­duty under the Customs Act. 1969 (IV of 1969). 
(4) Where a definitive safeguard measure is in the form of a quota on imports of an investigated 
product such measure shall be imposed and administered  by the Federal Government in­conformity 
with the provisions of section 30 and taking into account the recommendations of the Commission 
set forth in the report of final determination. 
 
(5) Where a definitive safeguard duty imposed by the Federal Government is lower than the 
amount collected as a provisional safeguard duty, the Commission shall upon receipt of a written 
application from the importer in question refund the differential. 
 
29. Non­application of definitive safeguard measure  to certain  developing countries. 
Notwithstanding anything contained in this Ordinance a definitive safeguard measure shall not be 
applied to imports of an investigated product originating from a developing county Member as long 
as such imports account for no more than three percent of the total imports of the investigated 
product into Pakistan: 
 
Provided that if imports from developing country Members which individually account 
for less than three per cent of imports of an investigated product into Pakistan, collectively 
account for more than  nine per cent of imports of the investigated product into Pakistan, a 
definitive safeguard measure may be applied to such  imports from  those developing  country 
Members. 
 
30. Quota  as definitive safeguard measure. ⎯ (1)  A definitive safeguard measure in the 
form of a quota on imports of an investigated product shall not reduce the quantity of those imports 
below the average level registered in the most recent three representative years for which statistics 
are available with the Commission. 
 
 (2) Notwithstanding the provisions of sub­section (1), the Federal Government may, upon 
clear justification that a different level is necessary to prevent or remedy serious injury or threat of 
serious injury, apply a quota which reduces the quantity of imports of an investigated product below 
the average  level  registered  in  the  most  recent  three  representative  years  for  which  statistics  
are available. 
 
(3) If more than one country exports an investigated product to Pakistan, any quota on imports 
shall be  allocated  among supplying countries. The  Federal  Government shall attempt  to  reach 
agreement with those Members having a substantial interest in supplying the investigated product 
as to the allocation of shares of the total quota amount. 
 
(4) Where the Federal Government determines that the method set forth in sub-section (3) is 
not reasonably practical for allocation of the quota, the Federal Government shall allocate the quota 
among countries having a substantial interest in supplying an investigated product:   
 
Provided that  such allocation by the  Federal Government shall be  based  upon the  
proportions, supplied by such countries during a previous three years representative period, of 
the total quantity or value of the investigated product: 
 

 
Page 17 of 21 
 
Provided further that in allocating the quota among supplying countries, the 
Federal Government shall take due account of any special factors which may have 
affected or may be affecting trade in the investigated product. 
 
(5) Notwithstanding the provisions of sub­sections (3) and (4), in a case in which serious 
injury has been found, the Federal Government may allocate the quota among supplying countries 
on a different basis , provided that  consultations  have  been  held  with  supplying Members under  
the auspices of the Committee, and a clear demonstration is provided to the Committee that⎯ 
 
(a) imports from certain countries have increased in disproportionate percentage in 
relation to the total increase in imports of an investigated product during the 
representative period; 
 
(b) the reasons for the departure from the methodology for quota allocation envisaged 
under sub­sections (3) and (4) are justified; and 
 
(c) the conditions of such departure are equitable to all suppliers of an investigated 
product concerned. 
 
 (6) Notwithstanding the provisions of section 34, a definitive safeguard measure in the form 
of a quota allocated on the alternative basis provided for in sub-section (5) shall not be extended 
beyond the initial period of its application. 
 
31. Termination without application  of safeguard measure.  If at any point an 
investigation is terminated without the application of a definitive safeguard measure, the Federal 
Government shall immediately  notify  the  Committee,  in  conformity  with  any  requirements  
established  by  the Committee therefore. 
 
32. Duration of definitive safeguard measure.  A definitive safeguard measure shall be 
applied for a period of no more than four years, including the period of application of any 
provisional measure, unless it is extended as provided for in section 35: 
 
Provided that  the  total  duration  of  a  definitive safeguard measure,  including the  period 
of application of any provisional measure, the period of initial application, and any extension 
thereof pursuant to section 36, shall not exceed ten years. 
 
33. Progressive liberalisation.  A definitive safeguard measure  whose period of application 
exceeds  one  year  shall  be  progressively liberalised  at  regular  intervals  during  the  period  
of application in accordance  with the  schedule  published in the  public notice  of application 
of a definitive safeguard measure referred to in section 26. 
 
 
____________ 
 
  

 
Page 18 of 21 
 
                PARTVII 
REVIEW OF DEFINITIVE SAFEGUARD 
MEASURES 
  
34.  Review.⎯(1)  If  the  duration  of  a  definitive  safeguard measure,  including the  period  
of application of any provisional safeguard duty, exceeds three years, not later than the mid­term of 
the period of application of such measure, the Commission shall examine the situation, through a 
review conducted in accordance with the procedures set forth in sections 10, 11, 12, 13, 14, 15, 16 
and 17, mutatis mutandis, including a  review of the  effects  of the  definitive safeguard measure  
on the domestic industry concerned and of the domestic industry's progress in implementing its 
adjustment plan. 
 
(2) The results of review shall be set out by the Commission in a report in which it shall 
also recommend whether to maintain or withdraw a definitive safeguard measure under review or 
to increase the pace of its liberalisation. 
 
(3) The report referred to in sub­section (2) shall be promptly provided by the Commission to 
the Federal Government for its consideration. 
 
(4) The Federal Government shall, no later than thirty days of the receipt of a report under sub­ 
section (3), notify its decision whether to maintain or withdraw a definitive safeguard measure under 
review or to increase the pace of its liberalisation, by mea n of a public notice and the contents of 
such notice shall conform mutatis mutandis,  to the requirements for the public notice of the 
application of a definitive safeguard measure referred to in section 26. 
 
 (5) The Federal Government shall notify the results of review, including the withdrawal of 
any modification of a definitive safeguard measure, to the WTO Council for Trade in Goods, through 
the Committee, in conformity with any requirements established by the Committee therefor. 
 
(6) Any review initiated pursuant to sub­section (1) shall be concluded by the Commission 
within a period not exceeding four months from the date of initiation, of such review: 
 
Provided that the Commission may where it deems necessary extend four months 
period by a further period not exceeding two months. 
 
                                                     ______________ 
 
                                                                                         PART VIII 
EXTENSION AND REAPPLICATION OF DEFINITIVE SAFEGUARD 
MEASURES 
 
35. Extension of definitive safeguard measure.⎯(1)  If domestic industry considers that 
there is a continuing need to apply a definitive safeguard measure beyond its initial period of 
application, it may, submit a written application to the Commission requesting extension of the 
measure, not later than four  months before the end  of the initial period  of application of  such 
measure. 
 

 
Page 19 of 21 
 
(2) An application under sub­section (1) to the Commission shall include evidence that 
domestic industry is carrying out its adjustment plan. 
 
(3) Upon receipt of an application under sub­section (1), the Commission shall conduct an 
investigation to determine whether an extension is warranted. 
 
(4)  For the purpose of an investigation  and determination pursuant to sub -section (3), the 
procedures set forth in this Ordinance for applying an original definitive safeguard measure shall 
be followed mutatis mutandis. 
 
(5) For the purpose of extension of a definitive safeguard measure, the procedures set forth in 
sections 25, 26, 27 and 28 shall be followed mutatis mutandis. 
 
(6) Notwithstanding anything contained in this Ordinance, the Federal Government may, by 
notification in the official Gazette, extend a definitive safeguard measure only if the Commission 
determines through an investigation pursuant to sub­section (3) that the measure continues to be 
necessary to offset the effects of serious injury or a threat of serious injury and that there is evidence 
that the domestic industry is adjusting. 
 
 (7) The Federal Government shall notify  its decision, whether affirmative or negative, 
regarding the extension of a definitive safeguard measure by means of a public notice of 
extension of a definitive safeguard measure or a public notice of non­extension of a definitive 
safeguard measure, as the case may be, and the provisions of section 26 or sub­section (6) of section 
23 respectively shall, mutatis mutandis, apply to such notices. 
 
(8) Subject to the provisions of sub­section (6) of section 30, a definitive safeguard measure 
may be extended for a period of not more than six years. 
 
(9) A definitive safeguard measure extended pursuant to this section shall not be more restrictive 
than at the end of the initial period of its application and during the extension period such measure 
shall continue to be progressively liberalised in accordance with the schedule published in a notice 
of extension of a definitive safeguard measure referred to in sub­section (7). 
 
(10) In extending a definitive safeguard measure, the Federal Government shall endeavour to 
maintain a substantially equivalent level of concessions and other obligations to those existing 
under the General Agreement on Tariffs and Trade, 1994, between Pakistan and the exporting 
Members which would be affected by such measure. 
 
(11) The requirements pertaining to notifications to the Committee and to the Council for 
Trade in Goods of the  WTO set forth in sections 10, 21, 24, 27, 29, 30, and 31, and the  
requirements pertaining to consultations with the exporting Members whose interests would be 
affected by the measure set forth in sections 22, 27 and 30 shall apply in full to any extension of a 
safeguard measure by the Commission under this section. 
 
36. Reapplication of a safeguard measure.⎯(1)  No new safeguard measure shall be applied 
for a period of at least two years to imports of a product which was the subject of a definitive 
safeguard measure first applied after the 1st day of January, 1995. 
 
 

 
Page 20 of 21 
 
(2) No safeguard measure shall be applied again to the imports of a product which has been 
subject to such a measure, taken after the 1st day of January, 1995 unless a period equal to one­half 
of the duration of the earlier definitive safeguard measure on that product has elapsed and the period 
of non­application of a safeguard measure on such product is at least two years. 
 
(3) Notwithstanding the provisions  or sub­sections (1) and (2), a safeguard measure with 
a duration of one hundred and eighty days or less may be applied to the imports of a product which 
was the subject of an earlier safeguard measure if⎯ 
 
(a)  at least one year has elapsed since the date of imposition of the earlier safeguard 
measure on the imports of that product; and 
 
(b) a safeguard measure has not been applied on imports of the product more than twice 
in the five years period immediately preceding the date on which the new safeguard 
measure is to take effect.  
                                            ___________ 
    PART IX 
                                                  MISCELLANEOUS 
 
37. Duties and fees to be held in non­lapseable personal  ledger account.⎯(1)  The  
Commission shall establish and maintain a non­lapseable personal ledger account in its name for 
the purposes of this Ordinance and all duties and fees collected pursuant to this Ordinance shall be 
held in such account 
 
(2) The account to be established under sub­section (1) shall be maintained and operated in 
such manner as may be prescribed. 
 
38. Power to make rules. The Federal Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of this Ordinance. 
 
1[39. *  *  *  *  *  *  *] 
 
1[40. *  *  *  *  *  *  *] 
 
1[41. *  *  *  *  *  *  *] 
 
42. Protection to persons prejudiced in employment because of assisting the 
Commission.⎯(1) An employer shall not ⎯ 
 
(a) dismiss an employee, or prejudice an employee in his employment, because 
the employee has assisted the Commission in connection with an 
investigation or inquiry under this Ordinance; or 
 
(b) dismiss or threaten to dismiss an employee, or prejudice or threaten to 
prejudice an employee in his employment, because the employee proposes to 
assist the Commission in connection with an investigation or inquiry under 
this Ordinance.  
 
1 Omitted by Act XV of 2015, s.2. 

 
Page 21 of 21 
 
 
(2)  For the purposes of sub -section (1), a person shall be taken to assist the Commission in 
connection with an inquiry if the person ⎯ 
 
(a)  gives information, whether orally or in writing, or gives documents, to  the 
Commission in connection with an inquiry or investigation under  this 
Ordinance; 
 
  (b)         gives evidence or produces documents, at an inquiry, investigation of hearing 
held under this Ordinance. 
 
43. Appointment of advisers and consultants. ⎯(1) Su bject to subsection (2), the 
Commission ma y, employ  and pay consultants and agents, and technical, professional and other 
advisers, including bankers, economists, actuaries, accountants, lawyers and other persons to do 
any act required to be done in the exercise of its powers, the performance of its functions or for 
the better implementation of the purposes of this Ordinance. 
 
(2) The decision to employ and the terms and conditions of employment of external advisers 
and consultants pursuant to sub­section (1) shall be made by the Commission in accordance with 
such policy guidelines as may  be established  by the  Federal  Government , in  consultation  
with  the Commission, from time to time. 
 
1[44. *  *  *  *  *  *  *] 
 
45. Removal of difficulties. If any difficulties arise in giving effect to any of the provisions of 
this Ordinance, the Federal Government may make such order, not inconsistent with the provisions 
of this Ordinance, as may appear to it to be necessary for the purpose of removing the difficulty: 
 
Provided that no such power shall be exercised after the expiry of two years from 
the commencement of this Ordinance. 
 
1[46. Act to override other laws .⎯ The provisio ns of th is Act shall have effect 
notwithstanding anything inconsistent therewith contained in any other law for the time being 
in force: 
 
 Provided that this provision shall not apply to the National Tariff Commission Act, 1990 (VI 
of 1990).] 
 
 
 
 
 
 
 
 
 
 
 
 
1 Omitted and Subs. by Act XV of 2015, s.2-3.