WORLD TRADE
ORGANIZATIONG/C/17
G/SG/46
21 May 2002
(02-2789)
Council for Trade in Goods
Committee on SafeguardsOriginal:  English
IMMEDIATE NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT
ON SAFEGUARDS TO THE COUNCIL FOR TRADE IN GOODS OF
PROPOSED SUSPENSION OF CONCESSIONS AND OTHER
OBLIGATIONS REFERRED TO IN PARAGRAPH 2 OF
ARTICLE 8 OF THE AGREEMENT ON SAFEGUARDS
THE PEOPLE'S REPUBLIC OF CHINA
The following communication, dated 17 May 2002, has been received from the Permanent
Mission of China.
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Pursuant to Article 12.5 of the Agreement on Safeguards, and in accordance with the agreed
format for notifications (G/SG/1, 1 July 1996), the People’s Republic of China provides the
immediate notifications to the Council for Trade in Goods of proposed suspension of concessions and
other obligations referred to in Article 8.2 of the Agreement on Safeguards.
1. Which Member is proposing suspension of co ncessions and other obligations referred to
in Article 8.2
The People’s Republic of China.
2. Specify the measures, the product subjec t to the measure, the WTO document that
notified the safeguard measure, and the Member imposing the measure in relation to
which the Member is proposing suspension of concessions and other obligations referred
to in Article 8.2
The measures imposed by the United States consist of an increase in duty on imports of
certain flat steel (including hot-rolled sheet, cold-r olled sheet, plate, coated sheet), tin mill products,
hot-rolled bar, cold-finished bar, rebar, certain welded tubular products, carbon and alloy pipe fittingsand flanges, stainless steel bar, stainless steel rod and stainless steel wire and a tariff-rate-quota on
imports of slabs, for a period of three years and one day starting 20 March 2002.
It was notified in WTO documents G/SG/N /10/USA/6, G/SG/N/11/ USA/5 (14 March 2002),
G/SG/N/10/USA/6/Suppl .1 and G/SG/N/11/USA/5/Suppl.1 (15 March 2002);
G/SG/N/10/USA/6/Suppl .2 and G/SG/N/11/USA/5/Suppl.2 (18 March 2002);
G/SG/N/10/USA/6/Corr.1 and G/SG /N/11/USA/5/Corr.1 (20 Marc h 2002); G/SG/N/10/USA/6/Corr.2
and G/SG/N/11/USA/5/Corr.2 (25 Marc h 2002); G/SG/N/10/USA/6/Suppl.3 and
G/SG/N/11/USA/5/Suppl.3 (27 March 2002 ) and G/SG/N/10/USA/6/Suppl.4 and
G/SG/N/11/USA/5/Suppl.4 (12 April 2002).G/C/17
G/SG/46
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3. Describe the proposed suspension of conc essions and other obligations referred to in
Article 8.2, and the proposed date from which it will come into effect
The proposed suspension of substantially equivalent concessions and other obligations under
GATT 1994 to the trade of the United States takes the form of an increase in duty of 24 per cent on
selected products originating in the United States, as indicated in Annex I.
The substantially equivalent concessions or other obligations under GATT 1994 were
calculated as indicated in Annex II.
The People’s Republic of China hereby reserves its right to apply the proposed suspension
from March 2005 or from the fifth day following the date of a decision by the WTO Dispute
Settlement Body that the safeguard measure imposed by the United States is inconsistent with the
WTO Agreements.G/C/17
G/SG/46
Page 3
ANNEX I
List of Products Subject to Additional Customs Duties
Product Name HTS Subheading Additional Duty
Waste paper 47071000 24%
47073000 24%
Soybean oil 15071000 24%
15079000 24%
Compressor 84143011 24%
84143012 24%
84143019 24%G/C/17
G/SG/46
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ANNEX II
The substantially equivalent concessions or other obligations under GATT 1994 were
calculated as follows:
The US measure affects $395.1 million of Chinese exports as of year 2000, to which the
application of the increase in duty results in $95.5 million of duty collected.  See Table 1 infra.
Table 1
Affected Products Chinese Exports
(in million dollars)US Increase in Duty Duty collected
(in million dollars)
hot-rolled sheet, cold-rolled sheet, plate,
coated sheet, tin mill
products, hot-rolled
bar, cold-finished bar*slab248.661 30% 74.5983
rebar, certain welded
tubular products,
stainless steel bar,
stainless steel rod110.358 15% 16.5537
Carbon and alloy pipe
fittings and flanges,28.567 13% 3.7137
stainless steel wire 7.508 8% 0.6006
Total 395.094 95.4663
Note:  *Since China was not allocated separate TRQ, we suppose that all our slab export will
be subject to 30 per cent out of quota tariff.
To maintain a substantially equivalent level of concessions and other obligations under GATT
1994, as regards selected products listed in Annex I, the proposed suspension of concession byPeople’s Republic of China would affect $391.7 million of Chinese imports originating in the US and
would result in $94.0 million of duty collected.  See Table 2 infra.
Table 2
Product Name China Imports
Originating in the US as
of Year 2001
(in million dollars)China Proposed
Increase in DutyTheoretical Duty
Collected
(in million dollars)
Waste paper 370.597 24% 88.9432
Soybean oil 3.846 24%  0.9232
Compressor  17.270 24% 4.1448
Total 391.713 94.0111
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