WORLD TRADE
ORGANIZATIONG/SG/N/6/POL/3
18 June 2002
(02-3382)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE
AGREEMENT ON SAFEGUARDS ON INITIATION OF
AN INVESTIGATION AND THE REASONS FOR IT
POLAND
The following communication, dated 12 June 2002, has been received from the Permanent
Mission of Poland.
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Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, Poland hereby notifies that
the Polish Minister of Economy decided to initiate a safeguard investigation concerning imports into
Polish customs territory of instantaneous gas water heaters.
1. Date of initiation of the investigation
28 May 2002.
2. Product subject to investigation
Instantaneous gas water heaters, classified under tariff item 8419 11 00 0 of the Polish
Harmonized Tariff.
3. Reasons for initiating the investigation
(i) the investigation was initiated upon the application  of the domestic industry which
contained prima facie  evidence of the injury caused to the domestic industry by the
increasing imports of product in question.
(ii) preliminary data concerning the investigation period (1998-first half of 2001) show
among others that:
(a) The volume of imports of the instantaneous gas water heaters in the investigation period
amounted to:
- 1,153,440 kilograms in 1998,
- 1,522,244 kilograms in 1999,
- 1,433,857 kilograms in 2000,
- 785,946 kilograms in the first half of 2001 (675,679 kilograms in the first half of
2000 – a growth of about 16.3 per cent)G/SG/N/6/POL/3
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(b) The share of imports in the domestic production during the investigation period rose by:
- 66.6 per cent in 1999 compared with 1998,
- 103.2 per cent in 2000 compared with 1999,
- 74.3 per cent in the first half of 2001 compared with the same period of 2000.
(c) With decreasing domestic consumption in 2000 in comparison with 1999 and its slight
increase in the first half of 2001 compared with the same period of 2000, there was a steady
increase of imports share in the domestic market.  The aforementioned share increased by:
- 29.1 per cent in 1999 in comparison with 1998,
- 29.1 per cent in 2000 in comparison with 1999,- 10.1 per cent in the first half of 2001 in comparison with the same period of 2000.
(d) The average prices of imports of the instantaneous gas water heaters since 2000 were lower in
comparison with the domestic ones.
(e) There was a steady fall of the volume of domestic production and sales:
• the fall of domestic production in 1999 in relation to 1998 amounted to 20.8 per cent;  in
2000 in relation to 1999 – 53.6 per cent and in the first half of 2001 in relation to thesame period of 2000 – 33.2 per cent,
• the fall of domestic sales in 1999 in relation to 1998 amounted to 20.0 per cent;  in 2000
in relation to 1999 – 53.2 per cent and in the first half of 2001 in relation to the same
period of 2000 – 18.0 per cent.
(f) The applicant's share in the market decreased.  In 1999 in comparison with 1998 by 30.5 per
cent;  in 2000 in comparison with 1999 by 25.9 per cent;  in the first half of 2001 in comparison with
the same period of 2000 by 22.4 per cent.
(g) The share of stocks in the production amounted to:
- 10.9 per cent in 1998,
- 14.5 per cent in 1999,- 15.7 per cent in 2000,
- 40.4 per cent in the first half of 2001 (51.1 per cent in the same period of 2000).
(h) Employment in the production of instantaneous gas water heaters decreased by 48.1 per cent
in the period 1998-2000 and by 17.9 per cent in the first half of 2001 in relation to the same
period of 2000.
(i) The productivity increased by 3.5 per cent in 1999 in comparison with 1998;  in 2000 by
7.2 per cent in comparison with 1999 and in the first half of 2001 fell by 10.0 per cent in
comparison with the same period of 2000.
(j) The domestic industry due to an increasing drop in revenues has been suffering losses.4. Other information
(i) The initiation of the investigation was published in the Official Journal – Monitor
Polski-B No. 56, item 623 of 28 May 2002, which also indicated that:G/SG/N/6/POL/3
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(ii) interested parties should declare their participation in the investigation within the
period of 30 days after its initiation,
(iii) any information or opinions which the interested parties may wish to put forward
should be submitted within 60 days following the initiation of this investigation,
(iv) any additional information concerning the investigation may be obtained in the
Department of Trade Defence Measures of the Ministry of Economy (00-489
Warsaw, Żurawia 4a;  phone + 4822 693 4592, fax + 4822 693 4018).
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