(1) On receipt of the recommendation of the Director General, in order to prevent or remedy serious injury and to facilitate adjustment in respect of the originating good covered under the final findings, the Central Government may suitably amend the notification, issued under sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) to give effect to the provisions of the Trade Agreement, so as to -

(a) suspend further reduction of any rate of customs duty on the originating good provided for under the Trade Agreement from the day when the bilateral safeguard measure is taken; or

(b) increase the rate of customs duty on the originating good to a level not to exceed the lesser of:-

(i) the Most Favoured Nation applied rate of custom duty on the originating good in effect on the day when the bilateral safeguard measure is taken; or

(ii) the Most Favoured Nation applied rate of custom duty on the originating good in effect on the day immediately preceding the date of the start of the period of investigation.

(2) No bilateral safeguard measure under these rules may be imposed in respect of a good on which actions under sub-section (1) of section 8B of the Customs Tariff Act, 1975 (51 of 1975) is in place and in the event of a safeguard duty being imposed in respect of a good under sub-section (1) of section 8B of the Customs Tariff Act,1975 (51 of 1975), any existing bilateral safeguard measure which has been imposed under these rules in respect of that good shall be terminated prior to the imposition of the action under the sub-section (1) of section 8B of the Customs Tariff Act,1975 (51 of 1975).

(3) On termination of a bilateral safeguard measure, the rate of customs duty for an originating good subject to the measure shall be the rate which would have been in effect under the Trade Agreement on the date of termination as if the bilateral safeguard measure had never been applied.

(4) In case, in the final finding of the Director General there is no recommendation for applying bilateral safeguard measure, the Central Government shall within thirty days of the publication of final findings by the Director General under rule 10, withdraw the provisional bilateral safeguard measure imposed, if any.