WORLD TRADE
ORGANIZATIONG/SG/N/8/JOR/4
28 January 2003
(03-0569)
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
JORDAN
The following notification, dated 7 January 2003, has been received from the Permanent
Mission of Jordan.
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The Permanent Mission of the Hashemite Kingdom of Jordan presents its compliments to the
World Trade Organization/Safeguards Committee and has the honour to enclose herewith a
notification under Article 12.1(b) of the Agreement on safeguards regarding the finding of a serious
injury caused by increased imports of sanitary ware products in all its forms and specifications,
imported into the Kingdom under tariff headings 6910.100 and 6910.900, with the request to have it
circulated to the Members.G/SG/N/8/JOR/4
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In accordance with Article 12.1(b) of the Agreement on Safeguards, Jordan hereby submits its
notification on finding a serious injury caused by increased imports of sanitary ware products in all of
its forms and specifications, imported into the Kingdom under tariff headings 6910.100 and 6910.900.
1. Evidence of serious injury or threat  thereof caused by increased imports
The National Production Protection Directorate (NPPD) has determined that the subject
product has been imported into Jordan in such incr eased quantities during the period of investigation
(1998-2001), as to be a substantial cause of serious injury to the domestic industry.  NPPD has
recommended the appropriate remedy to the Minister of Industry and Trade who decided to
recommend the application to the Council of Ministers.
The following are the conclusions reached by NPPD:
- Increased imports
Years 1998 1999 2000 2001
Volume (in kilograms) 1894263 2355801 3178888 3723831
Rate of increase (in %) - 24% 35% 17%
Market share (in %) 35% 42% 52% 62%
Ratio between imports and domestic
production (in %)46% 55% 91% 109%
Ratio between imports and production sold
(in %)53% 73% 107% 161%
Unit prices (in dinar/kilogram) 1.082 1.008 0.896 0.706
The product concerned is being imported in quantities that have increased suddenly, sharply
and significantly in the period of investigation.  The annual increases in imports of 24 per cent, 35 per
cent and 17 per cent in absolute terms over the years 1998 to 2001 are sudden, sharp and significant.
This also applies to the increased market share, from 35 per cent in 1998 to 62 per cent in 2001.
- Serious Injury
It has been found upon investigation that the domestic industry of the subject product has
suffered serious injury.  The overall data of injury indicators shows an increase in negative
developments for production, sales, capacity uti lization, employment, market share, stocks and
profitability.
Situation of Domestic Producers
Years 1998 1999 2000 2001
Capacity (in kg) 5800000 5800000 5800000 5800000
Utiilization rate of capacity (in %) 72% 74% 60% 59%
Total domestic production (in kg) 4148811 4272206 3482724 3424230
Total domestic sales (in kg) 3587850 3205782 2957591 2314124
Closing stock (in kg) 1016878 1476902 1531304 1300634
Unit prices of domestic sales (dinar/kg) 0.943 0.771 0.654 0.794
Net profit/loss on domestic sales (in %) 12% 14% 9% 4%
Market share (%) 65% 58% 48% 38%
Employment (end of period) 197 175 166 148G/SG/N/8/JOR/4
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The above table shows that:
• Overall production capacity remained stable over the period under consideration (the
four years 1998 to 2001), suggesting no growth plans by the industry.
• The declining utilization rate of capacity, given fixed capacity, indicates that
domestic production is decreasing.  Indeed, the above schedule shows that the volume
of domestic production has decreased in 2000 and 2001 by 16 per cent and 17 per
cent, while imports increased during the said years.
• Sales of the domestic industry significantly decreased by 36 per cent over the period
mentioned, which had an impact on the volume of production that has decreased by
17 per cent in 2001.
• Inventory increased by 28 per cent over the four years 1998 to 2001.  The increase
was due to the incapability of the domestic industry to market and sell what it
produces.
• Unit prices of domestic sales declined by 15.8 per cent (from JD 0.943/kg to
JD 0.794/kg), reflecting increased competition from imports and excess inventory.
• There is an enormous decrease in the profit margin of local industry, from 12 per cent
in 1998 to 4 per cent in 2001.  An analysis of relevant elements in determining the
occurrence of injury showed that the industry suffers from enormous injury.  The
Directorate in this respect does not agree with the allegations raised by the importers'
representative that these elements were fulfilled.  In addition, analysing injury
elements should include local industr y as a whole and not one factory only.
• The domestic industry's market share decreased enormously during the period of
investigation from 65 per cent in 1998 to 38 per cent in 2001.  This decrease occurredas a result of the significant decrease in the volume of sales of the local industry in
favour of imports.
• Employment was adversely affected by the rising imports, steadily declining from
197 in 1998 to 148 in 2001 (a decrease of 25 per cent).
- Causation
The domestic industry has been incapable of adjusting with the sudden and unexpected
change, which in turn led to a reduction in production and an increase in unsold products.
The competent authority has determined that the domestic industry of subject product has
been seriously injured due to the increase of similar imports.
Such causation is demonstrated by the coincide nce in time between the significant, sharp and
recent increase in the imports and the continuous deterioration of injury indicators pointing to a
serious overall impairment of the domestic industry's situation.  It was concluded that no other injury
factors attributed to the injury of the domestic indu stry;  as the increase of imports was the sole reason
for serious injury of the domestic industry.G/SG/N/8/JOR/4
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2. Provide a precise description of the product involved
The product under investigation is sanitary ware products in all of its forms and
specifications, imported into the Kingdom under tariff headings 6910.100 and 6910.900, identified as
follows:
- 6910.100 sink with stands, washbasin pedestals, flushing cisterns, urinal and similar sanitary
fixtures made out of porcelain.
- 6910.900 sinks with stands, washbasin pedestals, flushing cisterns, urinal and similar sanitary
fixtures made out of material other than porcelain.
3. Provide a precise description of the proposed measure
It is proposed that a definitive safeguard measure be taken in relation to imports in order to
limit imports in excess for a period of three years, in the form of a specific tariff surcharge of 80 fils
per kg to be liberalized by 20 fils each subsequent year the measure is in effect.
4. Provide the expected duration of the measure
Time schedule of application of the measure is pending approval by the Council of Ministers.
5. For a measure with the duration of more than three years, provide the proposed date
for this review (under Article 7.4) to hold not later than mid-term of the measure, if
such a date for review has already been scheduled
Not applicable.
6. If the expected duration is over one year, provide the expected timetable for progressive
liberalization of the measure
The proposed measure is to be progressively liberalized as indicated in item 4 above.
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