Article 4 Safeguard clause

Where a product originating in Ukraine is imported on terms which cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products, Common Customs Tariff duties under the Association Agreement on such product may be reintroduced at any time.

The Commission shall closely monitor the impact of this Regulation with regard to the products listed in Annexes I and II, including with regard to the prices on the Union market, taking into account the information on exports, imports and Union production of the products subject to the autonomous trade measures established by this Regulation.

The Commission shall take a formal decision to initiate an investigation within a reasonable period of time:

• at the request of a Member State, or

• at the request of any legal person or any association that does not have legal personality, acting on behalf of the Union industry, meaning all or a major proportion of Union producers of like or directly competing products, or

• on the Commission's own initiative if it is apparent to the Commission that there is sufficient prima facie evidence of serious difficulties as referred to in paragraph 1.

For the purposes of this Article, ‘major proportion’ means Union producers whose collective output constitutes more than 50 % of the total Union production of the like or directly competing products produced by that portion of the Union industry which have expressed either support for or opposition to the request, and which represent no less than 25 % of total production of the like or directly competing products produced by the Union industry.

Where the Commission decides to initiate an investigation, it shall publish a notice in the Official Journal of the European Union announcing the initiation of the investigation. The notice shall provide a summary of the information received and state that any relevant information should be sent to the Commission. It shall specify the period within which interested parties may submit their views in writing. Such period shall not exceed four months from the date of publication of the notice.

The Commission shall seek all information it deems necessary and may verify the information received with Ukraine or any other relevant source. It may be assisted by officials of the Member State on whose territory verification might be sought, if that Member State requests such assistance by officials.

In examining whether serious difficulties as referred to in paragraph 1 exist, the Commission shall take account, inter alia, of the following factors concerning Union producers, where the information is available:

• market share,

• production,

• stocks,

• production capacity,

• capacity utilisation,

• employment,

• imports,

• prices.

The investigation shall be completed within six months of the publication of the notice referred to in paragraph 3 of this Article. The Commission may, in the case of exceptional circumstances, extend this period in accordance with the examination procedure referred to in Article 5(2).

Within three months of the completion of the investigation, the Commission shall take a decision on whether to reintroduce the Common Customs Tariff duties under the Association Agreement by way of an implementing act, in accordance with the examination procedure referred to in Article 5(2). That implementing act shall enter into force within one month of its publication. The Common Customs Tariff duties under the Association Agreement shall be reintroduced for as long as necessary to counteract the deterioration in the economic and/or financial situation of Union producers, or for as long as the threat of such deterioration persists. The period of reintroduction shall not exceed one year, unless it is extended in duly justified circumstances. Where the facts as finally established show that the conditions set out in paragraph 1 of this Article are not met, the Commission shall adopt an implementing act terminating the investigation and proceedings in accordance with the examination procedure referred to in Article 5(2).

Where exceptional circumstances requiring immediate action make an investigation impossible, the Commission may, after informing the Customs Code Committee referred to in Article 5(1), take any preventive measure which is necessary.