Bilateral Safeguard explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 11 to 16 deal with what happens after the Director General (Safeguard) gives affirmative final findings. They say how the Central Government applies the bilateral safeguard measure, from when it takes effect, when excess duty is refunded, how long it can last, how it must be liberalised over time and how it is reviewed.
This article reads the rules as amended up to the CBIC text dated 24 January 2017 (Notification No. 7/2017-Customs (N.T.) dated 24 January 2017; no amending notification found in CBIC's 2023-2026 lists). Later notifications should be checked before you rely on the current text.
The Central Government applies the final measure by amending the notification issued under section 25(1) of the Customs Act, 1962, either suspending further duty reduction or raising the duty within a ceiling. It starts on gazette publication, can be made to run from the date of the provisional measure, and in general cannot exceed three years, with a total of five years even if extended in highly exceptional circumstances. A measure longer than one year must be progressively liberalised.
Rule 11: applying the bilateral safeguard measure
The measure itself (rule 11(1))
On receiving the Director General's recommendation, the Central Government may suitably amend the notification issued under section 25(1) of the Customs Act, 1962 to give effect to the Trade Agreement, in order to prevent or remedy serious injury and facilitate adjustment for the originating good covered by the final findings. It can:
- suspend further reduction of any rate of customs duty on the originating good provided for under the Trade Agreement; or
- increase the rate of customs duty on the originating good to a level not exceeding the lesser of (i) the Most Favoured Nation applied rate in effect on the day the measure is taken and (ii) the Most Favoured Nation applied rate in effect on the day immediately before the Trade Agreement entered into force.
The rules print no rate. The actual duty is whatever the notification says, so check the notification for your goods.
Withdrawal of the provisional measure (rule 11(2))
If the final findings are contrary to the prima facie evidence on which the investigation was initiated, and the findings do not recommend a bilateral safeguard measure, the Central Government shall within thirty days of the publication of the final findings under rule 10 withdraw any provisional bilateral safeguard measure imposed.
Return to the normal rate (rule 11(3))
When a bilateral safeguard measure ends, whether provisional or final, the rate of duty for the originating good is the rate that would have been in effect but for the measure.
Rule 12: when the measure takes effect
A legal consultation is worth considering before you book new orders at the rate you assume, because the start date can differ from the date of the final findings.
| Sub-rule | Rule |
|---|---|
| 12(1) | A measure applied under rule 9 (provisional) or rule 11 (final) takes effect from the date of publication in the Official Gazette of the notification imposing it |
| 12(2) | Where a provisional measure was imposed and the Director General has recorded a finding of injury or threat, the notification under rule 11 must specify that the final measure takes effect from the date of imposition of the provisional measure |
Rule 12(2) means that, where the conditions are met, the final measure is made to apply from the date of the earlier provisional one. Importers who paid the provisional duty should read the notification for this wording.
Rule 13: refund of duty
If the final measure results in a rate of duty lower than the rate resulting from a provisional measure already taken, the differential duty collected is refunded to the importer. The rule prints no form, procedure or period for the claim.
Rule 14: duration
The three-year limit and the five-year cap (rule 14(1) and (2))
- Rule 14(1): the measure applied under rule 11 is only to the extent and for such time as is necessary to prevent or remedy serious injury and to facilitate adjustment.
- Rule 14(2): despite sub-rule (1), the measure shall not exceed three years from the date of imposition. The first proviso lets the Central Government extend it in highly exceptional circumstances on receiving the Director General's recommendation under rule 16(1). The second proviso caps the total duration, including extensions, at five years.
The bar on repeating a measure (rule 14(3))
A measure may not be applied again to the import of a particular originating good that was already subject to a bilateral safeguard measure for a period equal to that during which the measure had previously applied, provided that the period of non-application is at least one year.
For example, if a measure applied to a good for two years, a fresh measure on the same good is barred for a period of two years, subject to the proviso in the rule that the period of non-application is at least one year. Read the exact wording before relying on this arithmetic in a live case.
Rule 15: liberalisation
If the duration of the measure applied under rule 11 exceeds one year, it must be progressively liberalised at regular intervals during its application. This matches the Director General's duty under rule 3(e) and rule 10(3) to recommend progressive liberalisation when the recommended period is more than one year. See the comparable provision in Rules 16 to 18 of the Safeguard Duty Rules, 1997.
Rule 16: review
- Rule 16(1): the Director General may review the need for continued application in terms of rule 14(2). If he is satisfied that the measure is necessary to prevent or remedy serious injury and there is evidence of positive adjustment by the domestic industry, he may recommend continued imposition. If there is no justification for continuing, he recommends withdrawal.
- Rule 16(2): rules 4, 5, 6 and 10 apply to the review with necessary changes. Initiation, public notice, replies, confidentiality and final findings therefore follow the same pattern as an original investigation, as explained in our article on Rules 5 to 10.
Rule 16 prints no separate time limit for completing a review; it relies on rule 16(2) carrying over rule 10.
A practical example
Ridgeway Machinery imports a component from Japan. The Central Government applies a final measure by notification, and a provisional measure had been in force earlier. If the notification says the final measure takes effect from the date of the provisional one (rule 12(2)), the duty position for the earlier period is read accordingly. If the final level is lower than the provisional rate, Ridgeway Machinery can claim the differential duty under rule 13. If the measure is set for three years and the Central Government wants to continue it, it must rely on the highly exceptional circumstances proviso, and the total can never pass five years.
Need help with a bilateral safeguard measure?
If a notification under rule 11 affects your imports from Japan, the start date, refund right and duration limits in rules 12 to 14 decide your exposure. Our legal consultation team can read the notification against these rules and advise whether a refund claim or a representation in a review is worth pursuing.
Key takeaways
- The final measure is applied by amending the section 25(1) notification (rule 11(1)).
- A provisional measure must be withdrawn within thirty days if the final findings recommend no measure (rule 11(2)).
- The measure can be made to run from the date of the provisional measure (rule 12(2)).
- A lower final rate means a refund of the differential duty (rule 13).
- Three years is the base period, with a five-year total cap (rule 14(2)).
- A measure over one year must be progressively liberalised (rule 15).
- Reviews follow the same procedural rules as the investigation (rule 16(2)).
Read next
- Rules 5-10 of the India-Japan CEPA Bilateral Safeguard Measures Rules, 2017
- Rules 16-18 of the Safeguard Duty Rules, 1997: duration, liberalisation and review
- Safeguard and countervailing duty explained
- Types of customs duty: BCD, IGST and safeguard
Disclaimer: Based on the India-Japan Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017 as published on the CBIC Tax Information Portal, as consulted on 3 October 2026. Later notifications, duty notifications and the Customs Tariff Act, 1975 should be checked. This article is general information, not legal advice; check the official text before acting.