(1) The Director General shall, on receipt of a written application by or on behalf of the domestic producer of like good or directly competitive good, initiate an investigation to determine the existence of serious injury or threat of serious injury to the domestic industry, caused by increased imports of an originating good as result of the reduction or elimination of a customs duty under the Trade Agreement.

(2) An application under sub-rule (1) shall be supported by,-

(a) evidence of -

(i) increased imports of the originating good;

(ii) serious injury or threat of serious injury to the domestic industry;

(iii) a causal link between imports and the alleged serious injury or threat of serious injury; and

(iv) the reduction or elimination of a customs duty pursuant to the Trade Agreement being a cause which contributes significantly to the increase in imports of the originating good and such increase in imports is a cause of serious injury or threat of serious injury to domestic industry:

Provided that the cause of reduction or elimination of a customs duty under the Trade Agreement need not be equal to or greater than any other cause; and

(b) a statement on the efforts being made, or planned to be made, or both, to make an adjustment to import competition.

(3) The Director General shall not initiate an investigation pursuant to an application made under sub-rule (1) unless he examines the accuracy and adequacy of the evidence provided in the application and satisfies himself that there is sufficient evidence regarding-

(a) increased imports of the originating good;

(b) serious injury or threat of serious injury;

(c) a causal link between imports of the originating good and the alleged serious injury or threat of serious injury; and

(d) the reduction or elimination of a customs duty under the Trade Agreement being a cause which contributes significantly to the increase in imports of the originating good:

Provided that the cause of reduction or elimination of a customs duty pursuant to the Trade Agreement need not be equal to or greater than any other cause.

(4) Notwithstanding anything contained in sub-rule (1), the Director General may initiate an investigation suo motu if he is satisfied with the information received from any Principal Commissioner of Customs or Commissioner of Customs appointed under the Customs Act, 1962 (52 of 1962) or any other source that sufficient evidence exists as referred to in clause (a), clause (b), clause (c) and clause (d) of sub-rule (3).