WORLD TRADE
ORGANIZATIONG/SG/N/6/ECU/4/Suppl.1
10 October 2003
(03-5363)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
ECUADOR
Supplement
The following communication, dated 23 September 2003, has been received from the
Permanent Mission of Ecuador.
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Further to my communication No. 4-7-120 of 15 July 2003, I hereby notify to the WTO
Committee on Safeguards the inclusion in the investigation relating to serious injury in respect of
smooth ceramics (NANDINA subheading 6908.90.00), the products classified under NANDINAsubheading 6907.90.00 of the National Tariff, "Other unglazed ceramic flags and tiles".
The above decision was adopted by the Under-Secretary for Foreign Trade and Integration of
the Ministry of Foreign Trade, Industry, Fisheries and Competitiveness (MICIP) by means of
Resolution No. 03-044, published in Official Register No. 150 of 19 August 2003, a copy of which is
attached and which extends MICIP Resolution No. 03-038 of 18 June 2003.
The companies C.A. ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO S.A. and
CERÁMICAS GRAIMAN CIA. LTDA. requested this inclusion on the grounds that the similarity
and substitutability between the two above-mentioned headings creates a problem because the
finished products are visually easily confused and hard to tell apart, and that their import volume is
significant and is causing serious damage to domestic production.G/SG/N/6/ECU/4/Suppl.1
Page 2
RESOLUTION NO. 03 044
THE UNDER-SECRETARY FOR FOREIGN TRADE AND INTEGRATION
OF THE MINISTRY OF FOREIGN TRADE, INDUSTRY,
FISHERIES AND COMPETITIVENESS
Whereas
In a communication dated 27 May 2003, Mr Carlos Crespo Seminario, Mr Xavier Valdivieso
and Mr Alfredo Peña Payró, acting as representatives respectively of the companies
C.A. ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO S.A. and CERÁMICAS GRAIMANCIA. LTDA. domiciled in the town of Cuenca, Ecuado r, requested the initiation of an investigation
process with a view to introducing a safeguard measure, as provided for under WTO law, consisting
of a customs duty, in addition to those that already apply in Ecuador, on imports of the products
contained under NANDINA s ubheading 6908.90.00, for a period of four (4) years;
The Under-Secretary for Foreign Trade of the Mi nistry of Foreign Trade, Industry, Fisheries
and Competitiveness decided, by Resolution No. 03-038 of 18 June 2003, to accept and initiate the
investigation requested by the above-mentioned companies, to determine whether the massive
increase in imports of glazed ceramic flags and paving, hearth or wall tiles classified under
NANDINA tariff subheading 6908.90.00 is causing serious injury to domestic production;
Mr Carlos Crespo Seminario, Mr Xavier Vald ivieso and Mr Alfredo Peña Payró, acting as
representatives of the companies C.A. Ecuatoriana de Cerámica, Cerámica Rialto S.A., and Cerámicas
Graiman Cia. Ltda., respectively, have requested by a letter sent to the MICIP on 24 July 2003 the
inclusion in the investigation process of NANDINA subheading 6907.90.00 of the National Tariff,
"Other unglazed", on the grounds that there is a problem of similarity and substitutability between the
latter subheading and subheading 6908.90.00 in that the finished products are visually easily confused
and difficult to differentiate;
The request submitted by the companies C.A. Ecuatoriana de Cerámica, Cerámica Rialto S.A.
and Cerámicas Graiman Cia. Ltda., is in conformity with consistent practice under the current
legislation;  and
In the exercise of its powers,
Decides:
Article 1 - To extend Resolution No. 03-038 of 18 June 2003, whereby the Under-Secretary
for Foreign Trade and Integration of the Ministry of Foreign Trade, Industry, Fisheries and
Competitiveness accepts and initiates the investigation requested by the companies C.A. Ecuatoriana
de Cerámica, Cerámica Rialto S.A. and Cerámicas Graiman Cia. Ltda.
Article 2 - To include in the investigation process the products classified under NANDINA
subheading 6907.90.00 of the National Tariff, "Other unglazed".G/SG/N/6/ECU/4/Suppl.1
Page 3
Article 3 - That pursuant to Title XVIII, Article 331 of the Consolidated Legal Text of the
MICIP, this resolution shall be notified to the World Trade Organization and to interested parties.
Done at Quito on 4 August 2003.
Signed:  Christian Espinosa, Under-Secretary for Foreign Trade and Integration.
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