2. This Agreement shall respect the principle of asymmetry, commensurate to the specific needs and capacity constraints of the SACU Member States and Mozambique, in terms of levels and timing for commitments under this Agreement.
Article 21. Scope
The provisions of this Chapter shall apply to trade in goods between the Parties. (3)
Article 22. Rules of Origin
The tariff preferences provided for in this Agreement shall be applied to goods qualifying under the rules of origin laid down in Protocol 1.
Article 23. Customs Duty
1. A customs duty shall include any duty or charge of any kind imposed on or in connection with the importation of goods, including any form of surtax or surcharge, but shall not include any:
(a) internal taxes or other internal charges imposed in accordance with Article 40; or
(b) duties imposed in accordance with Chapter II of PART II; or
(c) fees or other charges imposed in accordance with Article 27.
2. For all products subject to liberalisation, no new customs duties shall be introduced, nor shall those already applied be increased in trade between the Parties as from the entry into force of this Agreement, with the exception oft
(a) paragraph 7;
(b) paragraph 9;
(c) paragraph 7 of Section A of PART 1 of ANNEX I; and
(d) paragraph 8 of Section A of PART 1 of ANNEX II.
3. Except as otherwise provided for in this Agreement, for each product the basic duty to which the tariffreduction commitments set out in this Agreement apply, shall be the Most-Favoured-Nation ("MFN") rate of duty applied on 10 October 2016 for SACU and the UK; and 4 February 2018 for Mozambique.
4. In cases where the process of tariff reduction did not start on 10 October 2016 for SACU and the UK; and 4 February 2018 for Mozambique, the basic duty to which the tariff reduction commitments set out in this Agreement apply shall be either the rate of duty referred to in paragraph 3, or the MFN rate of duty applied on the starting date of the relevant tariff reduction schedule, whichever is the lower.
5. At the date of entry into force of this Agreement, the UK shall notify its list of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the SACU Secretariat and the Ministry of Industry and Trade of Mozambique. At the date of entry into force of this Agreement, SACU and Mozambique shall notify their respective lists of basic duties, to which the tariff reduction commitments set out in this Agreement apply, to the UK. After notification, as provided for in this paragraph, each Party shall make public each of these lists according to their own internal procedures and within one month after the exchange of the notifications. The Trade and Development Committee shall, at its first meeting after notification and publication, adopt the lists of basic duties communicated by the Parties or SACU, as the case may be. The duties listed in the Schedule of the UK included in PART If of ANNEX I and in the Schedule of Mozambique included in PART II of ANNEX III serve an indicative purpose and do not constitute basic duties within the meaning of paragraph 3.
6. The reduced duties calculated in accordance with the tariff reduction schedules contained in this Agreement shall be applied rounded to the first decimal place or, in case of specific duties, to the second decimal place.
7. For those tariff preferences that are expressed as a percentage of the applied MEN rate of duty, if at any moment after the date of entry into force of this Agreement, a Party increases or reduces its applied MFN rate of duty, the rate of duty applied in relation to the other Party shall simultaneously be increased or reduced as long as the margin of preference in accordance with the Party's Schedule is maintained.
8. For those tariff preferences that are wholly expressed as a fixed rate of duty in this Agreement, if at any moment after the date of entry into force of this Agreement, a Party reduces its applied MFN rate of duty, that reduced rate of duty shall apply in relation to the other Party if and for as long as it is lower than the customs duty fixed rate calculated in accordance with that Party's Schedule.
9. The provisions of this Article shall not apply to those products excluded from tariff reduction commitments that are denoted by staging category "X" in each Party's Schedule listed in ANNEX I, II and II] respectively.
Article 24. Customs Duties of the UK on Products Originating In the SACU Member States and Mozambique
1. Products originating in Botswana, Eswatini, Lesotho, Mozambique and Namibia shall be imported into the UK in accordance with the duty-free quota-free treatment set out for those countries in ANNEX I.
2. Products originating in South Africa shall be imported into the UK in accordance with the treatment set out for South Africa in ANNEX I.
Article 25. Customs Duties of SACU and Mozambique on Products Originating In the UK
1. Products originating in the UK shall be imported into SACU in accordance with the treatment set out in ANNEX IL.
2. Products originating in the UK shall be imported into Mozambique in accordance with the treatment set out in ANNEX III.
Article 26. Export Duties or Taxes
1. No new customs duties or taxes imposed on or in connection with the exportation of goods shall be introduced, nor shall those already applied be increased, in the trade between the Parties from the date of entry into force of this Agreement, except as otherwise provided for in this Article.
2. In exceptional circumstances, where justified for specific revenue needs, or where necessary for the protection of infant industries or the environment, or where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products essential to ensure food security, Botswana, Eswatini, Lesotho, Namibia, and Mozambique may introduce, after consultation with the UK, temporary customs duties or taxes imposed on or in connection with the exportation of goods, on a limited number of additional products.
3. In exceptional circumstances, where a SACU Member State or Mozambique can justify industrial development needs, that SACU Member State or Mozambique may introduce temporary customs duties or taxes imposed on or in connection with the exportation of a limited number of products to the UK. A SACU Member State or Mozambique wishing to introduce such temporary custom duties or taxes shall notify the UK of such a duty, providing all relevant information and motivation and shall consult with the UK if the UK so requests. Such temporary duties or taxes shall only be applied on a total number of eight (8) products, as defined at an HS6 tariff line level, or in case of "ores and concentrates" at an HS4 tariff line level, per SACU Member State or Mozambique at any given time and shall not be applied for a period exceeding twelve (12) years in total. This period can be extended or reinstated for the same product in agreement with the UK.
4. The following conditions shall apply to paragraph 3 but not to paragraph 2:
(a) the SACU Member State or Mozambique shall for the first six (6) years from the date of introduction of an export tax or duty exempt from the application of that tax or duty exports to the UK of an annual amount equal to the average volume of exports to the UK of such product over the three (3) years preceding the date of introduction of the tax or duty. The SACU Member State or Mozambique shall from the seventh year following the introduction of the said tax or duty until its expiry pursuant to paragraph 3, exempt from the application of the duty or tax, exports to the UK on an annual amount equal to 50 per cent of the average volume of exports to the UK of such product over the three (3) years preceding the date of introduction of the tax or duty; and
(b) export duties or taxes shall not exceed 10 per cent of the ad valorem export value of the product.
5. Any more favourable treatment consisting in or in relation to customs duties or taxes applied by a SACU Member State or Mozambique to exports of any product destined for a major trading economy shall, from the entry into force of this Agreement, be accorded to the like product destined for the territory of the UK. For the purpose of this Article, "major trading economy" is defined under Article 28(6).
6. Whenever a SACU Member State or Mozambique has reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 has been re-exported from, or re-routed without reaching, the UK to one or more third countries, that SACU Member State or Mozambique may raise this matter at the Trade and Development Committee.
7. The Trade and Development Committee shall examine the matter within ninety (90) days. After the examination, if the Trade and Development Committee takes no decision, the customs authorities of the SACU Member State concerned or Mozambique may request the Trade and Development Committee to decide that the importer of the product concerned into the UK make a declaration that the imported product will be processed in the UK and will not be re-exported to third countries.
8. If, after a system using such declarations has been in operation for at least ninety (90) days, a SACU Member State or Mozambique continues to have reasonable doubts as to whether a consignment of a product to which export duties shall not apply by virtue of paragraphs 1, 3 and 4 is re-exported from, or re-routed without reaching, the UK to one or more third countries, that SACU Member State or Mozambique may inform the Trade and Development Committee of the grounds of its concerns.
9. Having followed these steps, should no solution be found within thirty (30) days, the SACU Member State concerned or Mozambique may impose effective measures to prevent such circumvention provided that these measures are the least trade-restrictive and exclude operators who have proven not to be involved in the process of circumvention. The retroactive reinstatement of export duties on the consignment that has been re-exported from the UK to one or more third countries may offer an alternate option.
10. The Parties agree to review the provisions of this Article in the Joint SACU and Mozambique-UK Council ("Joint Council") no later than three (3) years after the entry into force of this Agreement, taking fully into account their impact on development and diversification of the SACU Member States' and Mozambique's economies.
Article 27. Fees and Charges
1. All fees and charges of whatever character, other than import and export duties and other than taxes within the scope of Article 40, imposed on or in connection with importation or exportation, shall not exceed the cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.
2. Without prejudice to Article 30, no Party shall impose substantial penalties for minor breaches of customs regulations or procedural requirements. In particular, no penalty in respect of any omission or mistake in customs documentation which is easily rectifiable and obviously made without fraudulent intent or gross negligence shall be greater than necessary to serve merely as a warning.
3. The provisions of this Article shall extend to fees and charges, imposed by governmental authorities in connection with importation and exportation, including those relating to:
(a) consular transactions, such as consular invoices and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
4. Fees and charges shall not be imposed for consular services.
Article 28. More Favourable Treatment Resulting from Free Trade Agreements
1. With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the UK shall extend to the SACU Member States and Mozambique any more favourable treatment applicable as a result of the UK becoming party to a preferential trade agreement with third parties after the signature of this Agreement.
2. With respect to customs duties as defined in Articles 23(1) and 26(1) and fees and other charges as defined in Article 27, the SACU Member States or Mozambique shall, upon request of the UK, extend to the UK any more favourable treatment applicable as a result of the SACU Member States or Mozambique, individually or collectively as the case may be, becoming party to a preferential trade agreement with any major trading economy after the signature of this Agreement.
3. By derogation from paragraph 2, the SACU Member States or Mozambique shall not extend to the UK the treatment applicable as a result of SACU or Mozambique, individually or collectively as the case may be, becoming party to a preferential trade agreement with countries of the African, Caribbean and Pacific group or other African countries or regions.
4. By derogation from paragraph 2, where a SACU Member State or Mozambique demonstrates that as a result of a preferential trade agreement it has entered into with a major trading economy, it receives substantially more favourable treatment overall than that offered by the UK, the Parties shall consult and jointly decide how best to implement the provisions of paragraph 2.
5. The provisions of this Article shall not be construed so as to oblige the UK or any SACU Member State or Mozambique to extend reciprocally any preferential treatment applicable as a result of the UK or any SACU Member State or Mozambique being party to a preferential trade agreement with third parties on the date of signature of this Agreement.
6. For the purposes of this Article, "major trading economy" means any developed country, or any country accounting for a share of world merchandise exports above 1 per cent in the year before the entry into force of the agreement referred to in paragraph 2, or any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above 1,5 per cent in the year before the entry into force of the agreement referred to in paragraph 2.
7. By derogation from paragraph 1, where the UK becomes party to a preferential trade agreement with a third party after the signature of this Agreement and such a preferential trade agreement provides for more favourable treatment to the third party than that granted by the UK to South Africa pursuant to this Agreement, the UK and South Africa shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to South Africa. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 116.
8. By derogation from paragraph 2, where SACU or Mozambique becomes party to a preferential trade agreement with a major trading economy and such a preferential trade agreement provides for more favourable treatment granted by SACU or Mozambique to the major trading economy than to the UK pursuant to this Agreement, SACU or Mozambique and the UK shall enter into consultations with a view to deciding whether and how to extend the more favourable treatment contained in the preferential trade agreement to the UK. The Joint Council may adopt proposals to amend the provisions of this Agreement in accordance with Article 116.
Article 29. Free Circulation
1. Customs duties shall be levied only once for goods originating in the UK or in a SACU Member State or Mozambique when imported into the territory of the UK or SACU or Mozambique as the case may be.
2. Any duty paid upon importation in a SACU Member State shall be refunded fully when the goods are re-exported from the customs territory of that SACU Member State of first importation to Mozambique. Such products shall then be subject to the duty in the country of consumption. Pending agreement by SACU and Mozambique on the procedures for this paragraph, the operation of this paragraph shall be in accordance with applicable customs legislation and procedures.
3. The Parties agree to cooperate with a view to facilitating the circulation of goods and simplifying customs procedures, within SACU and Mozambique, in particular as provided for in Article 13(2).
Article 30. Special Provisions on Administrative Cooperation
1. The Parties agree that administrative cooperation is essential for the implementation and the control of the preferential treatment granted under this Chapter and underline their commitment to combat irregularities and fraud in customs and related matters.
2. The Parties also agree to cooperate in ensuring that the necessary institutional structures enable the responsible authorities to effectively respond to requests for assistance in a timely manner.
3. For the purpose of this Article, and without prejudice to Article 9 of Protocol 2, a failure to provide administrative cooperation shall mean, inter alia:
(a) repeated failure to respect the obligations to verify the originating status of the product or products concerned as provided for in Article 38 of Protocol 1;
(b) repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin as provided for in Article 38 of Protocol 1;
(c) repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question as provided for in Article 7 of Protocol 2.
4. For the purpose of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without legitimate explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.
5. Where a Party has made a finding, on the basis of objective information, ofa failure to provide administrative cooperation and/or of irregularities or fraud, the Party concerned may, in exceptional circumstances, temporarily suspend the relevant preferential treatment of the product or the products concerned, and of the specific origin concerned in accordance with this Article.
6. For the purposes of this Article, exceptional circumstances mean those circumstances which have or might have a significant negative effect on a Party ifa relevant preferential treatment of the product or the products concerned is to be continued.
7. The application of a temporary suspension pursuant to paragraph 5 shall be subject to the following conditions:
(a) the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the Trade and Development Committee of its finding together with the objective information and enter into consultations within the Trade and Development Committee, on the basis of all relevant information and objective findings, including information related to capacity and/or structural constraints, with a view to reaching a solution acceptable to both Parties;
(b) where the Trade and Development Committee has examined the matter and has failed to agree on an acceptable solution within four (4) months from the receipt of the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product or products concerned, and of the specific origin concerned. A temporary suspension shall be notified to the Trade and Development Committee without undue delay. At the request of either Party, the period to agree on an acceptable solution may, where duly justified, be extended to five (5) months;
(c) temporary suspensions under this Article shall be limited to those necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six (6) months, which may be renewed after the Trade and Development Committee has had the opportunity to re-examine the matter. Temporary suspensions shall be notified immediately after their adoption to the Trade and Development Committee. They shall be subject to periodic consultations within the Trade and Development Committee in particular with a view to their termination as soon as the conditions for their application are no longer given.
Article 31. Management of Administrative Errors
The Parties recognise each other's right to correct administrative errors during the implementation of this Agreement. Where errors are identified, either Party may request the Trade and Development Committee to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.
Chapter II. TRADE DEFENCE INSTRUMENTS
Article 32. Anti-Dumping and Countervailing Measures
The rights and obligations of either Party in respect of the application of anti- dumping or countervailing measures shall be governed by the relevant WTO Agreements. The provisions of this Article shall not be subject to the provisions of PART II.
Article 33. Multilateral Safeguards
1. Subject to the provisions of this Article, nothing in this Agreement shall prevent a Party from adopting measures in accordance with Article XIX of the GATT 1994, the WTO Agreement on Safeguards, Article 5 of the WTO Agreement on Agriculture annexed to the Marrakesh Agreement Establishing the World Trade Organisation ("WTO Agreement") and any other relevant WTO Agreements.
2. Notwithstanding paragraph 1, the UK shall, in the light of the overall development objectives of this Agreement and the small size of the economies of the SACU Member States and Mozambique, exclude imports from any SACU Member State and Mozambique from any measures taken pursuant to Article XIX of the GATT 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.
3. The provisions of paragraph 2 shall apply for a period of five (5) years, beginning from 10 October 2016 for the SACU Member States and 4 February 2018 for Mozambique. Not later than one hundred and twenty (120) days before the end of this period, the Joint Council shall review the operation of paragraph 2 in the light of the development needs of the SACU Member States and Mozambique, with a view to determining their possible extension for a further period.
4. The provisions of paragraph 1 shall not be subject to the provisions of PART I.
Article 34. General Bilateral Safeguards
1. Notwithstanding Article 33, after having examined alternative solutions, a Party or SACU, as the case may be, may apply safeguard measures of limited duration which derogate from the provisions of Articles 24 and 25, under the conditions and in accordance with the procedures laid down in this Article.
2. Safeguard measures referred to in paragraph 1 may be taken if, as a result of the obligations incurred by a Party under this Agreement, including tariff concessions, a product originating in one Party is being imported into the territory of the other Party or SACU, as the case may be, in such increased quantities and under such conditions as to cause or threaten to cause:
(a) serious injury to the domestic industry producing like or directly competitive products in the territory of the importing Party or SACU, as the case may be; or
(b) disturbances in a sector of the economy producing like or directly competitive products, particularly where these disturbances produce major social problems, or difficulties which could bring about serious deterioration in the economic situation of the importing Party or SACU, as the case may be; or
(c) disturbances in the markets of like or directly competitive agricultural products in the territory of the importing Party or SACU, as the case may be.
These safeguard measures shall not exceed what is necessary to remedy or prevent the serious injury or disturbances.
3. Safeguard measures referred to in this Article shall take the form of one or mote of the following:
(a) suspension of the further reduction of the rate of import duty for the product concerned, as provided for under this Agreement; or
(b) increase in the customs duty on the product concerned up to a level which does not exceed the MFN applied rate at the time of taking the measure; or
(c) introduction of tariff quotas on the product concerned.
4. Without prejudice to paragraphs 1 to 3, where any product originating in the UK is being imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations referred to in paragraphs 2(a) to (c) to SACU or Mozambique, as the case may be, SACU or Mozambique, as the case may be, may take surveillance or safeguard measures limited to its territory in accordance with the procedures laid down in paragraphs 5 to 7.
5. Safeguard measures referred to in this Article:
(a) shall only be maintained for such a time as may be necessary to prevent or remedy serious injury or disturbances as defined in paragraphs 2 and 4;
(b) shall not be applied for a period exceeding two (2) years. Where the circumstances warranting imposition of safeguard measures continue to exist, such measures may be extended for a further period of no more than two (2) years. Where Mozambique or SACU, as the case may be, apply a safeguard measure, they may however apply that measure for a period not exceeding four (4) years and, where the circumstances warranting imposition of safeguard measures continue to exist, extend it for a further period of four (4) years;
(c) that exceed one (1) year shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest; and
(d) shall not be applied to the import of a product that has previously been subject to such a measure, within a period of at least one (1) year from the expiry of the measure.
6. For the implementation of paragraphs 1 to 5 the following provisions shall apply:
(a) where a Party or SACU, as the case may be, takes the view that one of the situations referred to in paragraphs 2(a) to (c) and/or 4 exists, it shall immediately refer the matter to the Trade and Development Committee for examination;
(b) the Trade and Development Committee may make any recommendation needed to remedy the circumstances which have arisen. If no recommendation has been made by the Trade and Development Committee aimed at remedying the circumstances, or no other satisfactory solution has been reached within thirty (30) days of the matter being referred to the Trade and Development Committee, the importing party may adopt the appropriate measures to remedy the circumstances in accordance with this Article;
(c) before taking any measure provided for in this Article or, in the cases to which paragraph 7 applies, the Party or SACU, as the case may be, shall, as soon as possible, supply the Trade and Development Committee with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the parties concerned;
(d) in the selection of safeguard measures pursuant to this Article, priority must be given to those which least disturb the operation of this Agreement. If the MFN applied rate in effect the day immediately preceding the day of entry into force of this Agreement is lower than the MFN applied rate at the time of taking the measure, measures applied in accordance with the provisions of paragraph 3(b) may exceed the MFN rate in effect the day immediately preceding the day of entry into force of this Agreement. In such a case, the Party or SACU, as the case may be, shall supply, in accordance with the provisions of paragraph (c), the Trade and Development Committee with the relevant information indicating that an increase of the duty up to the level of MFN applied at the time of entry into force is not sufficient and that a measure exceeding this duty is necessary to remedy or prevent the serious injury or disturbances pursuant to paragraph 2;
(e) any safeguard measure taken pursuant to this Article shall be notified immediately to the Trade and Development Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.
7. Where delay would cause damage which would be difficult to repair, the importing Party or SACU, as the case may be, may take the measures provided for in paragraphs 3 and/or 4, on a provisional basis without complying with the requirements of paragraph 6.
(a) Such action may be taken for a maximum period of one hundred and eighty (180) days where measures are taken by the UK and two hundred (200) days where measures are taken by Mozambique or SACU, as the case may be.
(b) The duration of any such provisional measure shall be counted as a part of the initial period and any extension referred to in paragraph 5.
(c) In taking such provisional measures, the interest of all parties involved shall be taken into account.
(d) The importing Party or SACU, as the case may be, shall inform the other Party concerned and it shall immediately refer the matter to the Trade and Development Committee for examination.
8. If the importing Party or SACU, as the case may be, subjects imports of a product to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows liable to give rise to the problems referred to in this Article, it shall inform the Trade and Development Committee without delay.
9. Safeguard measures adopted under the provisions of this Article shall not be subject to WTO Dispute Settlement provisions.
Article 35. Agricultural Safeguards
1. Notwithstanding Article 34, a safeguard measure in the form of an import duty may be applied if, during any given twelve (12) month period, the volume of imports into SACU of an agricultural product listed in Annex IV originating in the UK exceeds the reference quantity for the product therein indicated.
2. A duty which shall not exceed 25 per cent of the current WTO bound tariff or 25 percentage points, whichever is higher, may be imposed to the agricultural products referred to in paragraph 1. Such duty shall not exceed the prevailing MFN applied rate.
3. Safeguard measures referred to in this Article shall be maintained for the remainder of the calendar year or five (5) months, whichever is the longer.
4. Safeguard measures referred to in this Article shall not be maintained or applied with respect to the same good at the same time as:
(a) a general bilateral safeguard measure in accordance with Article 34;
(b) a measure under Article XIX of the GATT 1994 and the WTO Agreement on Safeguards; or
(c) a special safeguard measure under Article 5 of the WTO Agreement on Agriculture.
5. Safeguard measures referred to in this Article shall be implemented in a transparent manner. Within ten (10) days after applying such a measure, SACU shall notify the UK in writing and shall provide relevant data concerning the measure. On request, SACU shall consult the UK regarding the application of the measure. SACU shall also notify the Trade and Development Committee within thirty (30) days after such imposition.
6. The implementation and operation of this Article may be the subject of discussion and review in the Trade and Development Committee. On request of either Party, the Trade and Development Committee may review the reference quantities and agricultural products as provided for in this Article.
7. The provisions of this Article may only be applied during the period of twelve (12) years from 10 October 2016.
Article 36. Food Security Safeguards
1. The Parties acknowledge that the removal of barriers to trade between them, as envisaged in this Agreement, may pose significant challenges to the SACU Member States' and Mozambique's producers in the agricultural and food sectors and agree to consult with each other on these issues.
2. Notwithstanding Article 34, where essential for the prevention or relief of critical general or local shortages of foodstuffs or other products in order to ensure food security of a SACU Member State or Mozambique and where this situation gives rise or is likely to give rise to major difficulties for such a SACU Member State or Mozambique, that SACU Member State or Mozambique may adopt safeguard measures in accordance with the procedure set out in paragraphs 6(b) to (d), 7 and 8 of Article 34. The measure will be reviewed at least annually and shall be removed as soon as the circumstances leading to its adoption cease to exist.
Article 37. BELN Transitional Safeguards
1. The Parties acknowledge the sensitivity of the liberalised products listed in Annex V for the BELN States.
2. Notwithstanding Article 34, in the event that one of the products listed in Annex V and originating in the UK being imported into the territory ofa BELN State in such increased quantities as to cause or threaten to cause serious injury in any BELN State, that BELN State may apply a transitional safeguard measure.
3. Safeguard measures referred to in paragraph 2 shall take the form of a duty on the product concerned listed in Annex V up to a level which does not exceed the MEN applied rate at the time of taking the measure or introduce a zero duty tariff rate quota (TRQ), provided that the level of the duty outside the quota does not exceed the MFN applied rate at the time of taking the measure.
4. Thirty (30) days in advance of applying the safeguard measure, the BELN State concerned shall notify the measure to the UK in writing. After notification, the BELN State concerned shall have sixty (60) days to provide all relevant information concerning the measure.
5. Without prejudice to paragraph 2, the BELN State concerned and the UK shall, upon request of either Party, enter into consultations on the safeguard measure.
6. Safeguard measures referred to in this Article shall be applied for a period not exceeding four (4) years. Where the circumstances warranting imposition of the measure continue to exist, such a measure may be extended for a further period of no more than four (4) years.
7. No safeguard measure referred to in this Article may be adopted after twelve (12) years from 10 October 2016.
Article 38. Infant Industry Protection Safeguards
1. Notwithstanding Article 34, Botswana, Eswatini, Lesotho, Namibia and Mozambique may temporarily suspend further reductions of the rate of customs duty or increase the rate of customs duty up to a level which does not exceed the applied MFN duty, where a product originating in the UK, as a result of the reduction of duties, is being imported into its territory in such increased quantities and under such conditions as to threaten the establishment of an infant industry, or cause or threaten to cause disturbances to an infant industry producing like or directly competitive products.
2. Safeguard measures adopted in accordance with the conditions of paragraph 1 by a SACU Member State shall take the form of the levying of additional duties exclusively by the SACU Member State invoking this provision.
3. Safeguard measures referred to in paragraph 1 may be applied for a period of up to eight (8) years and may be further extended by a decision of the Joint Council
4. With regard to the implementation of paragraphs 1 and 2, the following provisions shall apply:
(a) where a SACU Member State or Mozambique takes the view that the circumstances set out in paragraph 1 exist, it shall immediately refer the matter to the Trade and Development Committee for examination. The SACU Member State concerned or Mozambique shall supply the Trade and Development Committee with all relevant information required for a thorough examination of the situation;