Taxation (Cross-border Trade) Bill (HC Bill 128)

Meaning of “serious injury”

2 (1) For the purposes of this Schedule, “serious injury” to UK producers of
particular goods (see paragraph 3) means—

(a) a significant overall impairment to their position, or

(b) 5the threat of such impairment.

(2) Regulations may make provision about what constitutes or does not
constitute significant overall impairment to the position of UK producers, or
the threat of such impairment, for the purposes of this Schedule.

(3) Regulations may make provision about how it is to be determined for the
10purposes of this Schedule whether the importation of goods into the United
Kingdom in increased quantities has caused or is causing serious injury to
UK producers of those goods.

(4) Such regulations may, among other things, make provision about the use of
sampling or cumulative assessments.

15Meaning of “UK producers”

3 (1) For the purposes of this Schedule, “UK producers” of particular goods
means—

(a) all the producers in the United Kingdom of like goods and all the
producers in the United Kingdom of directly competitive goods, or

(b) 20those of them whose collective output of like goods and directly
competitive goods constitutes a major proportion of the total
production in the United Kingdom of those goods.

(2) Regulations may make provision for the purposes of sub-paragraph (1)—

(a) about what constitutes or does not constitute—

(i) 25a producer in the United Kingdom of like goods or directly
competitive goods;

(ii) such a producer’s output of like goods or directly
competitive goods;

(iii) the total production in the United Kingdom of like goods and
30directly competitive goods;

(iv) a major proportion of that total production;

(b) about how any of those matters are to be determined.

(3) See paragraphs 4 and 5 for the meaning of “like goods” and “directly
competitive goods”.

35Meaning of “like goods”

4 (1) For the purposes of this Schedule, “like goods”, in relation to goods,
means—

(a) goods which are like those goods in all respects, and

(b) goods which, although not alike in all respects, have characteristics
40closely resembling those of the goods in question.

(2) Regulations may make provision about—

(a) what constitutes or does not constitute “like goods” for the purposes
of this Schedule;

(b) how “like goods” is to be determined for those purposes.

Meaning of “directly competitive goods”

5 Regulations may make provision about—

(a) what constitutes or does not constitute “directly competitive goods”
for the purposes of this Schedule;

(b) 5how “directly competitive goods” is to be determined for those
purposes.

Part 2 Safeguarding investigations

Safeguarding investigation

6 (1) 10The TRA may investigate—

(a) whether goods have been or are being imported into the United
Kingdom in increased quantities, and

(b) whether the importation of the goods in increased quantities has
caused or is causing serious injury to UK producers of those goods.

(2) 15References in this Schedule to a “safeguarding investigation” are to an
investigation under sub-paragraph (1).

Initiation of a safeguarding investigation

7 (1) The TRA may initiate a safeguarding investigation in relation to goods only
if—

(a) 20it is requested to initiate an investigation in an application made—

(i) by or on behalf of UK producers of the goods (“the applicant
UK producers”), or

(ii) by the Secretary of State,

(b) it is satisfied that the application contains sufficient evidence that—

(i) 25the goods have been or are being imported into the United
Kingdom in increased quantities, and

(ii) the importation of the goods in increased quantities has
caused or is causing serious injury to UK producers of those
goods,

(c) 30the market share requirement is met or the TRA waives the
requirement in relation to the application, and

(d) the application is accompanied by a preliminary adjustment plan.

(2) The market share requirement is met if—

(a) in the case of an application under sub-paragraph (1)(a)(i), the TRA
35is satisfied that the applicant UK producers have a share of the
market for like goods and directly competitive goods for
consumption in the United Kingdom (whether produced there or
elsewhere) which is sufficient to justify initiating the investigation;

(b) in the case of an application under sub-paragraph (1)(a)(ii), the TRA
40is satisfied that UK producers of the goods have a share of the market
for like goods and directly competitive goods for consumption in the
United Kingdom (whether produced there or elsewhere) which is
sufficient to justify initiating the investigation.

(3) A preliminary adjustment plan is—

(a) in the case of an application under sub-paragraph (1)(a)(i), a plan
setting out how the applicant UK producers think they might be able
to adjust to the importation of the goods in increased quantities;

(b) in the case of an application under sub-paragraph (1)(a)(ii), a plan
5setting out how UK producers of the goods might be able to adjust to
the importation of the goods in increased quantities.

(4) Regulations may make provision about—

(a) what constitutes or does not constitute an application made by or on
behalf of UK producers for the purposes of sub-paragraph (1)(a)(i);

(b) 10when an application is made for the purposes of sub-paragraph
(1)(a);

(c) the information to be contained in such an application;

(d) the time limit for determining such an application;

(e) the form and content of a preliminary adjustment plan;

(f) 15what constitutes or does not constitute “the market for like goods
and directly competitive goods for consumption in the United
Kingdom” and UK producers’ “share” of that market for the
purposes of sub-paragraphs (1)(c) and (2);

(g) how any of those matters are to be determined for the purposes of
20sub-paragraphs (1)(c) and (2).

(5) If any of the requirements of sub-paragraph (1)(a) to (d) in respect of a
safeguarding investigation are not met, the TRA must reject the application
and notify the applicant accordingly (unless it is the requirement in sub-
paragraph (1)(a) that is not met because the application has been
25withdrawn).

(6) If the requirements of sub-paragraph (1)(a) to (d) in respect of a
safeguarding investigation are met, the TRA must—

(a) accept the application and initiate the investigation,

(b) publish notice of its decision to initiate the investigation (including
30notice of the goods which are the subject of the investigation), and

(c) notify the Secretary of State and interested parties (see paragraph
29(3)) accordingly.

(7) Notices under sub-paragraph (6)(b) and (c) must specify the date of the
initiation of the investigation.

35Conduct of a safeguarding investigation

8 (1) Regulations may make provision about the conduct of a safeguarding
investigation.

(2) Paragraph 10(2) of Schedule 4 applies to regulations under sub-paragraph
(1) in relation to a safeguarding investigation as it applies to regulations
40under paragraph 10(1) of that Schedule in relation to a dumping or a
subsidisation investigation.

Provisional affirmative determinations and final affirmative or negative determinations

9 (1) In the case of a safeguarding investigation, an “affirmative determination”
in relation to goods means a determination that—

(a) 45the goods have been or are being imported into the United Kingdom
in increased quantities, and

(b) the importation of the goods in increased quantities has caused or is
causing serious injury to UK producers of those goods.

(2) At any stage during a safeguarding investigation, the TRA may make an
affirmative determination, based on the evidence then before it, in relation
5to goods which are the subject of the investigation (referred to in this
Schedule as “a provisional affirmative determination”).

(3) But the TRA may only make such a determination if it is satisfied that
interested parties (see paragraph 29(3)) have been given an adequate
opportunity to provide information to it regarding the investigation.

(4) 10The TRA must make a final determination in relation to each of the goods
which are the subject of a safeguarding investigation.

(5) A final determination under sub-paragraph (4) in relation to goods is—

(a) an affirmative determination (referred to in this Schedule as a “final
affirmative determination”), or

(b) 15if the TRA determines that it cannot make an affirmative
determination in relation to the goods, a negative determination
(referred to in this Schedule as a “final negative determination”).

(6) The TRA may make different final determinations in relation to different
goods which are the subject of the investigation.

(7) 20The TRA must—

(a) publish notice of its final negative determination or final negative
determinations under sub-paragraph (4), and

(b) notify the Secretary of State and interested parties accordingly.

Termination of a safeguarding investigation

10 25A safeguarding investigation in relation to goods terminates (if it has not
already terminated by virtue of provision made under paragraph 8(1))—

(a) in a case where the TRA makes a final negative determination in
relation to the goods, when notice of that determination is published
under paragraph 9(7)(a),

(b) 30in a case where the TRA makes a final affirmative determination in
relation to the goods and determines that there is not a
recommendation which it could make under paragraph 14(3) in
relation to them, when notice of that determination is published
under paragraph 14(10)(b),

(c) 35in a case where the TRA makes a final affirmative determination in
relation to the goods and makes a recommendation under paragraph
14(3) in relation to them which the Secretary of State rejects, when the
notice of rejection is published under paragraph 17(3)(a) or 18(3)(a),
or

(d) 40in a case where the TRA makes a final affirmative determination in
relation to the goods and makes a recommendation under paragraph
14(3) in relation to them which the Secretary of State accepts, at the
end of the day of publication of the public notice under section 13
giving effect to the recommendation.

Part 3 Provisional remedy: provisional safeguarding amount

TRA’s duty to recommend a provisional safeguarding amount

11 (1) This paragraph applies where the TRA makes a provisional affirmative
5determination in relation to goods which are the subject of a safeguarding
investigation.

(2) Goods in relation to which that determination is made are referred to in this
paragraph as relevant goods.

(3) The TRA may recommend to the Secretary of State—

(a) 10that an additional amount of import duty (referred to in this
Schedule as a “provisional safeguarding amount”) should be
applicable for a specified period to all the relevant goods, and

(b) how a provisional safeguarding amount applicable to those goods
should be determined.

(4) 15The TRA may make a recommendation under sub-paragraph (3) only if it is
satisfied that the application of a provisional safeguarding amount in
accordance with its recommendation—

(a) is necessary to prevent serious injury which it would be difficult to
repair from being caused during the investigation to UK producers
20of the goods, and

(b) meets the economic interest test (see paragraph 21).

(5) If the TRA determines that there is one, or more than one, recommendation
which it could make under sub-paragraph (3), it must make the
recommendation or one of those recommendations.

(6) 25If the TRA determines that there is no recommendation which it could make
under sub-paragraph (3), it must—

(a) publish notice of its provisional affirmative determination in relation
to the goods,

(b) publish notice of its determination that there is no recommendation
30which it could make under sub-paragraph (3), and

(c) notify the Secretary of State and interested parties (see paragraph
29(3)) accordingly.

TRA’s recommendations about a provisional safeguarding amount

12 (1) This paragraph applies to a recommendation by the TRA under paragraph
3511(3) in relation to goods.

(2) The specified period referred to in paragraph 11(3)(a)—

(a) must not exceed 200 days, and

(b) if the recommendation is accepted by the Secretary of State, must
begin on the day after the date of publication of the public notice
40under section 13 giving effect to the recommendation.

(3) The recommendation referred to in paragraph 11(3)(b) as to how a
provisional safeguarding amount applicable to goods should be determined
may be by reference to either or both of the following—

(a) the value of the goods, and

(b) the weight or volume of the goods or any other measure of their
quantity or size.

(4) But that recommendation must be such that a provisional safeguarding
amount applicable to goods does not exceed the amount which the TRA is
5satisfied is necessary to prevent serious injury which it would be difficult to
repair from being caused during the investigation to UK producers of the
goods.

(5) Regulations may make provision for the purposes of sub-paragraph (4)
about how the amount which the TRA is satisfied is necessary to prevent the
10serious injury described in that provision is to be determined.

(6) A recommendation under paragraph 11(3) must include such other content
as regulations may require.

Secretary of State’s power to accept or reject a recommendation

13 (1) If the TRA makes a recommendation under paragraph 11(3), the Secretary of
15State must decide whether to accept or reject the recommendation.

(2) The Secretary of State may reject the recommendation only if the Secretary
of State is satisfied that—

(a) the application of a provisional safeguarding amount to goods in
accordance with the recommendation does not meet the economic
20interest test (see paragraph 21), or

(b) it is not otherwise in the public interest to accept the
recommendation.

(3) If the recommendation is rejected, the Secretary of State must—

(a) publish notice of the TRA’s provisional affirmative determination in
25relation to the goods, of the recommendation and of the rejection of
it,

(b) notify interested parties (see paragraph 29(3)) accordingly, and

(c) lay a statement before the House of Commons setting out the reasons
for rejecting the recommendation.

(4) 30If the recommendation is accepted, the Secretary of State—

(a) must publish notice of the TRA’s provisional affirmative
determination in relation to the goods, of the recommendation and
of the acceptance of it,

(b) must notify interested parties accordingly, and

(c) 35is required under section 13 to make provision by public notice to
give effect to the recommendation.

(5) For the purposes of this Schedule, “the period of a provisional remedy” in
respect of goods means the period for which a provisional safeguarding
amount applies to the goods.

(6) 40The period of a provisional remedy in respect of goods ceases (if it has not
already expired) when the safeguarding investigation in relation to the
goods terminates.

Part 4 Definitive remedies: definitive safeguarding amount & tariff rate quotas

TRA’s duty to recommend a definitive safeguarding amount or tariff rate quota

14 (1) This paragraph applies where the TRA makes a final affirmative
5determination in relation to goods which are the subject of a safeguarding
investigation.

(2) Goods in relation to which that determination is made are referred to in this
paragraph as relevant goods.

(3) The TRA may recommend to the Secretary of State—

(a) 10that an additional amount of import duty (referred to in this
Schedule as a “definitive safeguarding amount”) should be
applicable for a specified period to all the relevant goods or to
specified relevant goods;

(b) that all the relevant goods, or specified relevant goods, should be
15subject to a quota for a specified period during which a lower rate of
import duty should be applicable to imports of goods within the
amount of the quota than is applicable to imports of goods outside
the amount of the quota (referred to in this Schedule as a “tariff rate
quota”).

(4) 20Where the TRA makes a recommendation under sub-paragraph (3)(a) in
relation to relevant goods it must, as part of the recommendation,
recommend to the Secretary of State how a definitive safeguarding amount
applicable to those goods should be determined.

(5) The TRA may make a recommendation under sub-paragraph (3) only if it is
25satisfied that—

(a) applying a definitive safeguarding amount to relevant goods, or
making relevant goods subject to a tariff rate quota, in accordance
with its recommendation meets the economic interest test (see
paragraph 21), and

(b) 30there is in place an adjustment plan setting out how UK producers of
the relevant goods intend to adjust to the importation of the goods in
increased quantities.

(6) Regulations may make provision about the form and content of an
adjustment plan.

(7) 35The TRA may only make a recommendation under one or other of
paragraphs (a) and (b) of sub-paragraph (3) in relation to any particular
relevant good.

(8) The TRA may make a recommendation under paragraph (a) or (b) of sub-
paragraph (3) in relation to specified relevant goods (rather than all the
40relevant goods) only if the recommendations which it makes under that sub-
paragraph, when taken together, cover all the relevant goods.

(9) If the TRA determines that there are one or more recommendations which it
could make under sub-paragraph (3) in relation to all the relevant goods, or
that there are one or more recommendations which it could make under sub-
45paragraph (3) in relation to specified relevant goods, it must make that

recommendation or one of those recommendations (subject to sub-
paragraphs (7) and (8)).

(10) If the TRA determines that there is no recommendation which it could make
under sub-paragraph (3) it must—

(a) 5publish notice of its final affirmative determination in relation to the
goods,

(b) publish notice of its determination that there is no recommendation
which it could make under sub-paragraph (3), and

(c) notify the Secretary of State and interested parties (see paragraph
1029(3)) accordingly.

TRA’s recommendations about a definitive safeguarding amount

15 (1) This paragraph applies to a recommendation by the TRA under paragraph
14(3)(a) in relation to goods.

(2) The specified period referred to in paragraph 14(3)(a)—

(a) 15must be such period as the TRA is satisfied is necessary—

(i) to remove the serious injury, or to prevent further serious
injury, caused by the importation of the goods in increased
quantities to UK producers of the goods, and

(ii) to facilitate the adjustment of those UK producers to the
20importation of the goods in increased quantities,

(b) must not exceed 4 years (but see paragraph 19 regarding the
possibility of extensions or other variations to that period following
a review), and

(c) if the recommendation is accepted by the Secretary of State, must
25begin on the day after the date of publication of the public notice
under section 13 giving effect to the recommendation.

(3) A recommendation under paragraph 14(3)(a) as to how a definitive
safeguarding amount applicable to goods should be determined (see
paragraph 14(4)) may be by reference to either or both of the following—

(a) 30the value of the goods, and

(b) the weight or volume of the goods or any other measure of their
quantity or size.

(4) But that recommendation must be such that—

(a) a definitive safeguarding amount applicable to goods does not
35exceed the amount which the TRA is satisfied is necessary—

(i) to remove serious injury to UK producers of the goods, and

(ii) to facilitate the adjustment of those UK producers to the
importation of the goods in increased quantities, and

(b) where the specified period referred to in paragraph 14(3)(a) exceeds
401 year, a definitive safeguarding amount applicable to goods
becomes progressively smaller as the period progresses.

(5) Regulations may make provision for the purposes of sub-paragraph (4)(a)
about how the amount which the TRA is satisfied is necessary for the
purposes mentioned is to be determined.

(6) 45A recommendation under paragraph 14(3)(a) must include such other
content as regulations may require.

(7) If a provisional safeguarding amount has been applied to some or all of the
goods as part of the same safeguarding investigation, sub-paragraph (8)
applies for the purposes of sub-paragraphs (2)(b) and (4)(b).

(8) The length of the specified period referred to in paragraph 14(3)(a), so far as
5relating to the provisional goods, is to be treated as extended by the length
of the specified period for which the TRA recommended that a provisional
safeguarding amount should be applied to them.

(9) Where the application of sub-paragraph (8) results in the length of the
specified period referred to in paragraph 14(3)(a), so far as relating to the
10provisional goods, exceeding 1 year, sub-paragraph (4)(b) is to be read as if
references to goods were references to the provisional goods.

TRA’s recommendations regarding tariff rate quotas

16 (1) This paragraph applies to a recommendation by the TRA under paragraph
14(3)(b) in relation to goods.

(2) 15The specified period referred to in paragraph 14(3)(b)—

(a) must be such period as the TRA is satisfied is necessary—

(i) to remove the serious injury, or to prevent further serious
injury, caused by the importation of the goods in increased
quantities to UK producers of the goods, and

(ii) 20to facilitate the adjustment of those UK producers to the
importation of the goods in increased quantities,

(b) must not exceed 4 years (but see paragraph 19 regarding the
possibility of extensions or other variations to that period following
a review), and

(c) 25if the recommendation is accepted by the Secretary of State, must
begin on the day after the date of publication of the public notice
under section 13 giving effect to the recommendation.

(3) The recommendation must (in addition to the specified period) include—

(a) the TRA’s recommendation regarding—

(i) 30the amount of the quota,

(ii) how the quota should be allocated, and

(iii) the rates of import duty that should be applied to goods
subject to the quota, and

(b) such other content as regulations may require.

(4) 35The TRA must consult the Secretary of State before making a
recommendation regarding the allocation of the quota.

(5) The things recommended by the TRA by virtue of sub-paragraph (3)(a)—

(a) must be such as the TRA is satisfied are necessary—

(i) to remove serious injury to UK producers of the goods, and

(ii) 40to facilitate the adjustment of those UK producers to the
importation of the goods in increased quantities, and

(b) where the specified period referred to in paragraph 14(3)(b) exceeds
1 year, must be such that the amount of import duty applicable to
goods subject to the quota becomes progressively smaller as the

period progresses (whether by increases in the amount of the quota,
decreases in the rates of import duty, or both).

(6) Regulations may make provision for the purposes of sub-paragraph (5)(a)
about how the things which the TRA is satisfied are necessary for the
5purposes mentioned are to be determined.

(7) If a provisional safeguarding amount has been applied to some or all of the
goods as part of the same safeguarding investigation, sub-paragraph (8)
applies for the purposes of sub-paragraphs (2)(b) and (5)(b).

(8) The length of the specified period referred to in paragraph 14(3)(b), so far as
10relating to the provisional goods, is to be treated as extended by the length
of the specified period for which the TRA recommended that a provisional
safeguarding amount should be applied to them.

(9) Where the application of sub-paragraph (8) results in the length of the
specified period referred to in paragraph 14(3)(b), so far as relating to the
15provisional goods, exceeding 1 year, sub-paragraph (5)(b) is to be read as if
references to goods were references to the provisional goods.

Secretary of State’s power to apply a definitive safeguarding amount

17 (1) If the TRA makes a recommendation under paragraph 14(3)(a) that a
definitive safeguarding amount should be applicable to goods, the Secretary
20of State must decide whether to accept or reject the recommendation.

(2) The Secretary of State may reject the recommendation only if the Secretary
of State is satisfied that—

(a) the application of a definitive safeguarding amount to goods in
accordance with the recommendation does not meet the economic
25interest test (see paragraph 21), or

(b) it is not otherwise in the public interest to accept the
recommendation.

(3) If the recommendation is rejected, the Secretary of State must—

(a) publish notice of the TRA’s final affirmative determination in
30relation to the goods, of the recommendation and of the rejection of
it,

(b) notify interested parties (see paragraph 29(3)) accordingly, and

(c) lay a statement before the House of Commons setting out the reasons
for rejecting the recommendation.

(4) 35If the recommendation is accepted, the Secretary of State—

(a) must publish notice of the TRA’s final affirmative determination in
relation to the goods, of the recommendation and of the acceptance
of it,

(b) must notify interested parties accordingly, and

(c) 40is required under section 13 to make provision by public notice to
give effect to the recommendation.

(5) See paragraphs 19 and 20 for variation or revocation of the application of a
definitive safeguarding amount.