G/SG/N/8/ZAF/9  
G/SG/N/10/ZAF/7  
G/SG/N/11/ZAF/7/Suppl.1  
 
9 November 2021  
(21-8475) Page: 1/6 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION OF A PROPOSAL  
TO IMPOSE A MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
SOUTH AFRICA 
Bolts with Hexagon Heads of Iron or Steel  
The following communication, dated and received on 8 November 2021, is being circulated at the 
request of the delegation of South Africa.  
 
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Pursuant to Arti cle 9, Footnote 2, of the Agreement on Safeguards, South Africa provides 
notifications to the Committee on Safeguards of findings of serious injury or threat thereof caused 
by increased imports of bolts with hexagon heads of iron or steel and proposed safe guard measures.  
On 15 May 2020, the International Trade Administration Commission (the Commission) initiated an 
investigation for remedial action in the form of a safeguard against the increased imports of bolts 
with hexagon heads of iron or steel.  
On 11 September 2020, the Commission communicated its proposed preliminary determination to 
the WTO. The preliminary determination was published in the Government Gazette on 
13 November  2020.  
The initiation of the investigation and the preliminary determination has been notified to the 
Committee on Safeguards (see WTO documents G/SG/N/6/ZAF/8 and G/SG/N/7/ZAF/5  - 
G/SG/N/11/ZAF/7).  
1  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The subject product is described as bolts with hexagon heads of iron or steel, under tariff 
sub-heading 7318.15.43.  
2  NOTIFICATION UNDER ARTICLE 12.1(B) AND (C)  
Pursuant to Article 12.1(b) of the Agreement on Safeguards, the Government of South Africa hereby 
gives notification upon making a finding of serious injury caused by increased imports of bo lts with 
hexagon heads of iron or steel.  
Pursuant to Article 12.1(c) of the Agreement on Safeguards, the Government of South Africa hereby 
gives notification upon taking a decision to apply a safeguard measure on imports of bolts with 
hexagon heads of iron  or steel.  G/SG/N/8/ZAF/9 • G/SG/N/10/ZAF/7 • G/SG/N/11/ZAF/7/Suppl.1  
 
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3  PROVIDE THE BASIS FOR:  
(i) Making a finding of serious injury caused by increased imports, as provided for in Article  12.1(a);  
(ii) Taking a decision to apply a safeguard measure, as provided for in Article 12.1(b); and  
(iii) Specifying the developing countries to which the measure is not applied under Article 9.1 of the 
Agreement of Safeguards.  
The International Trade Administration Commission of South African initiated an investigation 
pursuant to an application by South African Iron and St eel Institute (SAISI) on behalf of the 
South  African Fasteners Manufacturers ' Association (SAFMA) (the Applicant), on behalf of the SACU 
industry in order to determine whether increased imports have caused serious injury to the domestic 
industry, within th e meaning of the Agreement on Safeguards, in connection with bolts with hexagon 
heads of iron or steel.  
3.1  The Commission made a final determination on the following:  
(a) Unforeseen Developments  
The Commission made a final determination on obligations incurre d post 1994 with regard to the 
imported products and the effects of such obligations:  
The Commission made a final determination that the SA government committed to bind the ordinary 
customs duty on the imported products of bolts of iron or steel with hexag on head at 
30% ad valorem . The effects of these led to the confluence of events, which form the basis of the 
unforeseen development and these events are led notably by China,  which is the biggest producer 
of global fasteners, accounting for more than 50% o f global fasteners capacity and output. South 
Africa did not foresee the following events:  
• The unprecedented steep rate of increase in fasteners production capacity (including the 
subject products) over the ensuing two decades (increased 8 folds since 1994 ) to support 
growing construction and manufacturing activity, as well as to help build infrastructure, 
particularly in emerging economies;  
• The contraction of the world economy and in particular the Chinese economy resulted in the 
contraction of demand for fasteners, that contribute to the imbalance between capacity and 
demand;  
• Record export volumes by countries with excess capacity, especially Chinese producers 
fuelled by excess capacity and output; and  
This excess output, capacity and export volumes led by  China, displaced production in other regions, 
thus harming producers in other markets. This has already led to several trade actions by major 
fasteners markets, including the SACU market. The fact that their markets are now protected, 
contracts the global  demand for fasteners even further, exasperating the problem of increased 
imports into the SACU.  
(b) Increased Imports  
The Commission made a final determination that in absolute terms, there was an increase in import 
volumes of the subject product of 12.5% between 2016/17 and 2017/18, however, between 2017/18 
and 2018/19, imports of the subject products decreased by 3.7%. During the period of investigation, 
there was an overall increase of 8.4%, with the highest increase being that which took place in 
2017/18 year.  
The Commission made a final determination that relative to production, import volumes of bolts with 
hexagon heads of iron or steel increased by 46 index points between 2016/17 and 2017/18, 
however, between 2017/18 and 2018/19, there was a dec line of 9 index points. During the period 
of investigation there was an overall increase of 37%, with the highest increase of imports relative 
to production taking place in 2017/18 year.  G/SG/N/8/ZAF/9 • G/SG/N/10/ZAF/7 • G/SG/N/11/ZAF/7/Suppl.1  
 
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The Commission made a final determination that the surge in the volum e of imports occurred in the 
2017/18 year, both in absolute terms and relative to production.  
(c) Serious injury  
The period of investigation for data evaluation for the purposes of determining the allegation of 
serious injury is 01 July 2016 to 30 June 201 9. 
The injury analysis relates to information submitted by CBC Fasteners (Pty) Ltd, SA Bolt 
Manufacturers (Pty) Ltd and Transvaal Pressed Nuts, Bolts & Rivets (Pty) Ltd representing more than 
80% of the SACU industry by production volumes.  
There is suffici ent evidence that the SACU industry is experiencing serious injury in the form of a 
decline in sales volumes, output, market share, utilisation of capacity, net profit and productivity for 
the period 1 July 2016 to 30 June 2019.  
On this basis the Commissio n made a final determination that the SACU industry is suffering serious 
injury.  
(d) Causal link between increased imports and causal link  
The Commission made a final determination that there is sufficient evidence of serious injury to the 
domestic industr y caused by the surge in the volume of imports. There are no other known factors 
other than the increased imports that sufficiently detract from this causal link.  
(e) Public Interest  
The Commission made a final determination that it will be in the public i nterest to impose definitive 
safeguard measures.  
(f) Adjustment Plan  
The domestic industry has submitted an adjustment plan, outlining the measures it has taken and 
those it plans to take for facilitation of adjustment of the domestic industry to the compe titive 
conditions with the imports. The measures include the following:  
• Increase in production volume;  
• Increase in investment (plant, machinery and buildings);  
• Increase in supply side measures (research and development, skills development 
and training, upg rading machinery and equipment);  
• Increase in exports (volumes and value); and  
• Increase in total employment.  
(e) Offer of consultations under Article 12.3  
The Government of South Africa offers consultations on the definitive safeguard measures.  
3.2  Provide a precise description of the proposed measure  
A definitive measure of 31.8% ad valorem  on the imports of bolts with hexagon heads of iron or 
steel, imported under tariff sub -heading 7318.15.43.  
3.3  Provide the proposed date of introduction of the measure  
It is expected that the definitive measure, if adopted, will come into effect in December 2021.  
3.4  Provide the expected duration of the measure  
The safeguard measure, if adopted, will remain in force for 3 years.  G/SG/N/8/ZAF/9 • G/SG/N/10/ZAF/7 • G/SG/N/11/ZAF/7/Suppl.1  
 
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3.5  For a measure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the measure, 
if such date for the review has already been scheduled  
Not applicable.  
3.6  If the expected duration is over one year, provide the expected timetable for 
progressive liberalization of the measure  
Period  Rate of safeguard measure  
10 December 2021 – 09 December 2022  31.8%  
10 December 2022 – 09 December 2023  30.8%  
10 December 2023 – 09 December 2024  29.8%  
3.7  If the measure is being extended, also provide: (i) evidence that the industry 
concerned is adjusting and that the safeguard measure continues to be necessary to 
prevent or remedy serious injury  
Not applicable.  
4  NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2  
4.1  Specify the measure  
The measure consists of 31.8% ad valorem  described in the notification under Article 12.1(c), above.  
4.2  Specify the product subject to the measure  
The measure shall be applied to the products described above, in paragraph 1 of this notification.  
4.3  Specify the d eveloping countries to which the measure is not applied under Article 
9.1 of the Agreement on Safeguards  
Afghanistan  Madagascar  
Albania  Malawi  
Algeria  Latvia  
American Samoa  Lebanon  
Angola  Maldives  
Antigua and Barbuda  Mali 
Argentina  Marshall Islands  
Armenia  Mauritania  
Azerbaijan  Mauritius  
Bangladesh  Mexico  
Bahrain, Kingdom of  Micronesia, Fed . States of  
Belarus  Moldova, Republic of  
Belize  Mongolia  
Benin  Montenegro  
Bhutan  Morocco  
Brunei Darussalam  Mozambique  
Bolivia, Plur State of  Myanmar  
Bosnia and Herzegovina  Namibia  
Botswana  Nepal  
Brazil  Nicaragua  G/SG/N/8/ZAF/9 • G/SG/N/10/ZAF/7 • G/SG/N/11/ZAF/7/Suppl.1  
 
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Bulgaria  Niger  
Burkina Faso  Nigeria  
Burundi  North Macedonia  
Cabo Verde  Oman  
Cambodia  Pakistan  
Cameroon  Palestine  
Central African Republic  Palau  
Chad Panama  
Chile Papua New Guinea  
Colombia  Paraguay  
Comoros  Peru 
Costa Rica  Philippines  
Côte d'Ivoire  Qatar  
Cuba Romania  
Democratic Republic of the Congo  Rwanda  
Congo Republic  Saudi Arabia, Kingdom of  
Djibouti  St. Kitts and Nevis  
Dominica  St. Lucia  
Dominican Republic  Saint Vincent and the Grenadines  
Ecuador  Sao Tome and Principe  
Egypt, Arab Rep.  Samoa  
El Salvador  Senegal  
Eritrea  Seychelles  
Eswatini  Sierra Leone  
Equatorial Guinea  Singapore  
Ethiopia  Solomon Islands  
Fiji Serbia  
Gabon  Somalia  
The Gambia  South Sudan  
Georgia  Sri Lanka  
Ghana  Sudan  
Grenada  Suriname  
Guatemala  Syrian Arab Republic  
Guinea  Tajikistan  
Guinea -Bissau  Tanzania  
Guyana  Timor -Leste  
Haiti Togo 
Honduras  Tonga  
Indonesia  Trinidad and Tobago  
Iran, Islamic Rep. of  Tunisia  
Iraq Turkey  
Jamaica  Turkmenistan  
Jordan  Tuvalu  
Kazakhstan  Uganda  
Kenya  Ukraine  
Kiribati  United Arab Emirates  
Korea, Democratic People 's Republic of  Uruguay  
Kyrgyz Republic  Uzbekistan  
Kosovo  Viet Nam G/SG/N/8/ZAF/9 • G/SG/N/10/ZAF/7 • G/SG/N/11/ZAF/7/Suppl.1  
 
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Kuwait, the State of  Vanuatu  
Lao People 's Dem. Republic  Venezuela, Bolivarian Republic of  
Lebanon  West Bank and Gaza*)  
Lesotho  Yemen  
Liberia  Zambia  
Libya Zimbabwe  
Lithuania   
5  FURTHER INFORMATION  
Interested parties must make themselves known within a period of 20 days after the initiation of the 
investigation.  
Any information which the interested parties may wish to submit in writing and any request for a 
hearing before the Commission that they may wish to put forward should be submitted within 
20 days following the initiation of  this investigation to the Directorate: Trade Remedies II at the 
following address: The DTI Campus, 77 Meintjies Street, Sunnyside Pretoria, Block E, Ground Floor, 
tel: +27 12 394 3600, fax +27 12 394 0518.  
If part of the information provided is of a confi dential nature, the party concerned should give the 
grounds justifying confidentiality and furnish public summaries of such information, which should be 
as detailed as possible. In instances that a public summary cannot be provided a sworn statement 
must b e provided stating the reasons why the information cannot be summarized.  
This requirement is designed to secure transparency and due access by all the parties to the 
information relating to this investigation. If the summaries are not duly provided and in the absence 
of just cause, ITAC may disregard the information deemed to be confidential.  
 
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