WORLD TRADE
ORGANIZATIONG/SG/N/6/EEC/2
28 July 2003
(03-4010)
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
EUROPEAN COMMUNITIES
The following communication, dated 15 July 2003, has been received from the Permanent
Delegation of the European Commission.
_______________
We enclose for your attention a notification pursuant to Article 12.1(a) of the Agreement on
Safeguards , on taking a decision to initiate an investigatory process relating to serious injury or threat
thereof (‘a safeguard investigation’).
1. Specify the date when the investigation was initiated
On 11 July 2003, the European Commission initiated an investigatory process relating to
serious injury to the domestic producers of products like or directly competing with certain imported
prepared or preserved citrus fruits.
Public notice of the investigation was provided on 11 July 2003.
2. Specify the product subject to the investigation
The product covered by the investigation is certain prepared or preserved mandarins
(including tangerines and satsumas), clementines, wilkings and other similar citrus hybrids, notcontaining added spirit, containing added sugar, hereinafter referred to as "the product concerned".
The product concerned is currently classified within the European Community Combined
Nomenclature (CN) codes 2008 30 55 and 2008 30 75.
3. Provide the reasons for the initiation of investigation
(a) Information provided to the Commission
The Commission has been informed by Spain, pursuant to Article 2 of Council Regulations
(EC) No 3285/94
1 and 519/942 respectively, that trends in imports of the product concerned appear to
call for safeguard measures.  Spain has submitted the evidence available to it in relation to theindicators specified in Article 10 of Regulation (EC) No 3285/94 and Article 8 of Regulation (EC)
No 519/94, and asked the Commission to open a safeguard investigation.
                                                     
1  OJ L 349, 31.12.1994, p. 53.
2  OJ L 67, 10.3.1994, p. 89.G/SG/N/6/EEC/2
Page 2
(b) Increase in imports
The information currently available to the Commission indicates that there have been recent
sharp increases in imports of the product concerned either in absolute terms, and/or relative to
Community production or consumption.
Annex 1 contains detailed information as to the increases in imports which form the basis for
the initiation of the investigation.
(c) Serious injury or threat of serious injuryThe information currently available to the Co mmission includes data in relation to certain
economic indicators specified in Article 4 of the Agreement on Safeguards. In general, the data shows
a situation of stable consumption in the Community market over the four years period, together with
sharp growing imports at low prices during the last 12 months, and reduced sales volumes, prices and
profitability for Community producers.
Annex 1 contains detailed information as to  the evidence which forms the basis for the
initiation of the investigation
(d) Procedure
Following the provisions of Article 6 Regulation (EC) No 3285/94 and Article 5 of
Regulation (EC) No 519/94 governing safeguard investigations in the European Communities, the
Commission has consulted the Advisory Committee established under Article 4 of each of those
regulations. Following that consultation, it is ap parent to the Commission that there is sufficient
evidence to justify the initiation of an investigat ion in relation to the product concerned and the
Commission has decided to open an investigation, in cooperation with the Member States, to
determine whether the necessary conditions exist for the adoption of definitive safeguard measures in
relation to the product concerned.
4. Further information
A copy of the Notice of Initiation which appeared in the Official Journal of the European
Union is being submitted to the Committee ( Annex 2 ).  This document will also be available in the
WTO Secretariat for inspection by government representatives.G/SG/N/6/EEC/2
Page 3
ANNEX 1
ECONOMIC INDICATORS
Data per canning season (from October to September) 98/99 99/00 00/01 01/02
CONSUMPTION (tonnes) 88,459 82,983 74,022 87,538
IMPORTS
Volume (tonnes) 16,347 17,573 20,335 44,804
Market share (%) 18 21 27 51
Unit prices (Euro/tonne)Imports 631 670 792 690
SITUATION OF COMMUNITY PRODUCERS
ACCOUNTING FOR  A MAJOR PROPORTION OF
TOTAL COMMUNITY PRODUCTION
Production (Tonnes) 62,912 61,616 55,879 57,254
Capacity utilization (Index) 100 97 87 88
Sales volume in the EU (tonnes) 49,603 48,291 45,983 33,634
Market share(%) 56 58 62 38
Unit sales price (Index) 100 93 111 83
Net profit/loss on EU sales (in %) 5.1 0.7 8.5 -3.0
Employment (end of period) – 2,502 2,441 2,462 2,419
Productivity (Index) 100 100 90 94
Price comparison for 01/02
Price undercutting 7%G/SG/N/6/EEC/2
Page 4
ANNEX 2
Notice of initiation of (I) a safeguard investigation under Council Regulations
(EC) Nos 427/2003 and 2201/96 concern ing imports of certain prepared or
preserved citrus fruits (namely mandarins, etc.) originating in the People'sRepublic of China and (II) a safeguard investigation under Council Regulations
(EC) Nos 3285/94, 519/94 and 2201/96 con cerning imports of certain prepared or
preserved citrus fruits (namely mandarins, etc.)
(2003/C 162/02)
The Commission has received a request from the Spanish authorities for the initiation of a
safeguard investigation based both on Article 5 of Council Regulation (EC) No 427/2003
1 and
Article 2 of Council Regulations (EC) Nos 3285/942 and 519/94.3
The request concerns prepared or preserved mandarins (including tangerines and satsumas),
clementines, wilkings and other similar citrus hybrids, not containing added spirit, containing addedsugar,(‘the product concerned ’).
The Commission has analysed whether the condit ions for opening investigations under both
Council Regulation (EC) No 427/2003 and Council Regulations (EC) Nos 3285/94 and 519/94 are
fulfilled.
I. SAFEGUARD INVESTIGATION UNDER COUNCIL REGULATIONS (EC) NOS
427/2003 AND 2201/96
1. Request
In its request, Spain has informed the Commission that trends in imports of certain prepared
or preserved citrus fruits (namely mandarins, etc.) originating in China appear to call for safeguard
measures, and has provided the evidence available, as determined on the basis of the criteria laid
down in Articles 1 and 2 of the Council Regulation (EC) No 427/2003.
2. Product concerned
The product in question is prepared or preserved mandarins (including tangerines and
satsumas), clementines, wilkings and other similar citrus hybrids, not containing added spirit,
containing added sugar, (‘the product concerned ’).
The product concerned is currently classified within CN codes 2008 30 55 and 2008 30 75.
These CN codes are given for information only.
3. Increase in imports and injury
Spain has provided evidence that imports into the Community of the product concerned are
increasing rapidly both in absolute terms, and relative to Community production and consumption,
and, in particular, that imports have increased from around 16,000 tonnes in 1998/99 to around 20,000
tons in 2000/01, and 45,000 tons in 2001/02.  Spain has also provided evidence that most of the
                                                     
1 OJ L 65,8.3.2003, p. 1.
2 OJ L 349,31.12.1994, p. 53.
3 OJ L 67,10.3.1994, p. 67.G/SG/N/6/EEC/2
Page 5
increase in imports is attributable to imports of the product concerned originating in the People's
Republic of China.
It is alleged that the volumes of the imported product concerned have, among other
consequences, had a negative impact on the prices of like or directly competitive products in theCommunity, and on the market share held, the quantities sold and the level of prices charged by the
Community industry
4, resulting in material injury to the Community industry.
4. Procedure under Regulations (EC) Nos 427/2003 and 2201/96
Pursuant to Article 5 of Regulation (EC) No 427/2003, the Commission has consulted the
Advisory Committee established under Article 15 of Regulation (EC) No 427/2003.  Following thatconsultation, there appears to be sufficient evidence to justify the initiation of an investigation, and the
Commission hereby initiates an investigation pursuant to Article 5 of Regulation (EC) No 427/2003.
The Commission has also notified the Government of Ch ina of its intention to initiate an investigation
in accordance with Article 5(3) of Council Regulation (EC) No 427/2003.
4.1. Scope of the investigation
The investigation will determine whether safeguard measures are justified under Council
Regulation (EC) No 427/2003 read in conjunction with Council Regulation (EC) 2201/965 on the
common organisation of the markets in processed fruit and vegetable products.  Specifically, theinvestigation will determine whether the products concerned of Chinese origin are being imported into
the Community in such increased quantities or under such conditions as to cause or threaten to cause
market disruption to the Community industry, ta king account of additional requirements, if any,
imposed by Article 22(1) of Council Regulation (EC) 2201/96, whereby the Community market in the
product concerned must be affected by or threatened with serious disturbance likely to jeopardise theachievement of the objectives set out in Article 33 of the Treaty.
(a) Questionnaires
In order to obtain the information it deems necessary for its investigation, the Commission
will send questionnaires to the known producers of the like or directly competitive products in the
Community and to any association of such  producers in the Community; to the known
exporters/producers and importers of the product concerned;  to any known association of
exporters/producers and importers of the product concerned and to the Government of China.
In any event, all parties should contact the Commission forthwith by fax, but not later than the
time limit set out in paragraph 5(a) of this notice, and, if necessary, request a questionnaire.
(b) Collection of information and holding of hearings
All interested parties are hereby invited to make their views known, submit information and
to provide supporting evidence.  This information and supporting evidence has to reach theCommission within the time limit set in paragraph 5(b) of this notice.
Furthermore, the Commission will hear interested parties, provided that they make a request
for a hearing showing that they are actually likely to be affected by the result of the investigation and
that there are particular reasons why they should be heard.  This request must be made within the timelimit set in paragraph 5(c) of this notice.
                                                     
4 The term ‘Community industry ’is defined by Article 4 of Council Regulation (EC) No 427/2003.
5 OJ L 297, 21.11.1996, p.29.G/SG/N/6/EEC/2
Page 6
4.2. Procedure for the assessment of Community interest
In the event that it is determined that the product concerned is imported into the Community
in such increased quantities and/or on such cond itions as to cause or threaten to cause market
disruption to the Community industry as to justify the taking of safeguard measures, a decision as towhether the Community interest calls for intervention shall be made based on an appreciation of all
the various interests taken as a whole, including the interests of the domestic industry and users and
consumers, also taking account of additional factors, if any, set out in Article 22(1) of Council
Regulation (EC) No 2201/96.
In order to provide a sound basis on which the Commission can take account of all views and
information in the decision as to whether or no t the imposition of measures is in the Community
interest, the Community producers, importers, their representative associations, representative users
and representative consumer organisations, provided that they prove that there is an objective link
between their activity and the product concerned, may, within the time limits set in paragraph 5(c) of
this notice, make themselves known and provide the Commission with information.  Those parties
who have made themselves known within the time limit may also request a hearing setting theparticular reasons why they should be heard within the time limit set in paragraph 5(c) of this notice.
It should be noted that any information submitted will only be taken into account if supported by
actual evidence at the time of submission.
5. Time limits
(a) Questionnaires
Interested parties willing to receive a questionnaire should request it as soon as possible, but
not later than 10 days after the publication of this notice in the Official Journal of the EuropeanUnion.
(b) For parties to make themselves known, to submit questionnaire replies and any other
information
All interested parties, if their representations are to be taken into account during the
investigation, must make themselves known by contacting the Commission, presenting their views
and submitting questionnaire replies or any other inform ation within 21 days of the date of publication
of this notice in the Official Journal of the European Union, unless otherwise specified.  Attention is
drawn to the fact that the exercise of most procedural rights set out in Council Regulation (EC)
No 427/2003 depends on parties making themselves known within the aforementioned period.
(c) Hearings
Pursuant to Articles 5(5) and 6(4) of Council Regulation (EC) No 427/2003,all interested
parties may also apply to be heard by the Commission within 21 days of the publication of this notice
in the Official Journal of the European Union.
6. Written submissions, questionna ire replies and correspondence
All relevant information is to be communicated to the Commission.  All submissions and
requests made by interested parties must be made in writing (not in electronic format, unlessotherwise specified), and must indicate the name, address, e-mail address, telephone and fax, and/or
telex numbers of the interested party.
The Commission address for correspondence is:G/SG/N/6/EEC/2
Page 7
European Commission
Directorate General for Trade
Directorate B
J-79 —5/16
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.
7. Non-cooperation
When information is not supplied within the time limits or the investigation is significantly
impeded, findings, affirmative or negative, may be made on the basis of the facts available.
Where it is found that any interested party has supplied false or misleading information, the
information shall be disregarded and use may be made of the facts available.
8. Schedule of the investigation
In accordance with and Article 6 of Council Regulation (EC)  No 427/2003,the investigation
shall, if possible, be concluded within 9 months of the date of the publication of this notice in the
Official Journal of the European Union .
In exceptional circumstances the investigation may be extended by a further maximum period
of 2 months.  If the time limit is extended, the Commission will publish a notice in the Official
Journal of the European Union setting forth the duration of the extension and a summary of the
reasons therefor.
II. SAFEGUARD INVESTIGATION UNDER COUNCIL REGULATIONS (EC) NOS
3285/94, 519/94 AND 2201/96
1. Request
In its request, Spain has informed the Commission that trends in imports of certain prepared
or preserved citrus fruits (namely mandarins, etc.) appear to call for safeguard measures, and has
provided the evidence available, as determined on the basis of the criteria laid down in Article 10 of
Regulation (EC) No 3285/94 and Article 8 of Regulation (EC) No 519/94.
2. Product concerned
The product in question is prepared or preserved mandarins (including tangerines and
satsumas), clementines, wilkings and other similar citrus hybrids, not containing added spirit,
containing added sugar, (‘the product concerned ’).
The product concerned is currently classified within CN codes 2008 30 55 and 2008 30 75.
These CN codes are given for information only.
3. Increase in imports and injury
Spain has provided evidence that imports into the Community of the product concerned are
increasing rapidly both in absolute terms, and relative to Community production and consumption,
and, in particular, that imports have increased from around 16,000 tonnes in 1998/99 to around 20,000
tons in 2000/01, and 45,000 tons in 2001/02.G/SG/N/6/EEC/2
Page 8
It is alleged that the volumes of the imported product concerned have, among other
consequences, had a negative impact on the prices of like or directly competitive products in the
Community, and on the market share held, the quantities sold and the level of prices charged by the
Community producers6, resulting in serious injury to the Community producers.
4. Procedure
Following the provisions of Article 6 of Regulation (EC) No 3285/94 and Article 5 of
Regulation (EC) No 519/94, the Commission has consulted the Advisory Committees established
under Article 4 of Regulations (EC) No 3285/94 and 519/94 respectively.  Following that
consultation, it is apparent to the Commission that ther e is sufficient evidence to justify the initiation
of an investigation, and the Commission hereby initiates an investigation pursuant to Article 6 of
Regulation (EC) No 3285/94 and Article 5 of Regulation (EC) No 519/94.
4.1. Scope of the investigation
The investigation will determine whether safeguard measures are justified under Council
Regulations (EC) No 3285/94 and 519/94 read in conjunction with Council Regulation (EC) 2201/96
on the common organisation of the markets in processed fruit and vegetable products.  Specifically,
the investigation will determine whether, as a result of unforeseen developments, the product
concerned is imported into the Community in such greatly increased quantities and/or on such termsor conditions as to cause or threaten to cause  serious injury to the Community producers, taking
account of additional requirements, if any, imposed by Article 22 (1) of Council Regulation (EC)
2201/96,whereby the Community market in the product concerned must be affected by or threatened
with, serious disturbance likely to jeopardise the achievement of the objectives set out in Article 33 of
the Treaty.
(a) Questionnaires
In order to obtain the information it deems necessary for its investigation, the Commission
will send questionnaires to the known producers of the like or directly competitive products in the
Community and to any association of such  producers in the Community; to the known
exporters/producers and importers of the product concerned;  to any known association ofexporters/producers and importers of the product concerned.
In any event, all parties should contact the Commission forthwith by fax, but not later than the
time limit set out in paragraph 5(a) of this notice, and, if necessary, request a questionnaire.
(b) Collection of information and holding of hearings
All interested parties are hereby invited to make their views known, submit information and
to provide supporting evidence.  This information and supporting evidence has to reach the
Commission within the time limit set in paragraph 5(b) of this notice.
Furthermore, the Commission will hear interested parties, provided that they make a request
showing that they are actually likely to be affected by the result of the investigation and that there are
particular reasons why they should be heard.  This request must be made within the time limit set in
paragraph 5(c) of this notice.
                                                     
6 ‘Community producers’ includes the ‘Community producers’ as defined in Article 5(3)(c) of Council
Regulation (EC) No 3285/94 and ‘Community producers of like or directly competing products’ as referred to in
Article 15(1) of Council Regulation (EC) No 519/94.G/SG/N/6/EEC/2
Page 9
4.2. Procedure for the assessment of Community interest
In the event that it is determined that the product concerned is imported into the Community
in such greatly increased quantities and/or on such terms or conditions as to cause or threaten to causeserious injury to the Community producers as to justify the taking of safeguard measures, a decision
as to whether the Community interest calls for intervention shall be made based on an appreciation of
all the various interests taken as a whole, including the interests of the domestic industry and users
and consumers, also taking account of additional fa ctors if any set out in Article 22(1) of Council
Regulation (EC) 2201/96.
In order to provide a sound basis on which the Commission can take account of all views and
information in the decision as to whether or no t the imposition of measures is in the Community
interest, the Community producers, importers, their representative associations, representative users
and representative consumer organisations, provided that they prove that there is an objective link
between their activity and the product concerned, may, within the time limits set in paragraph 5(c) of
this notice, make themselves known and provide the Commission with information.  Those partieswho have made themselves known within the time limit may also request a hearing setting the
particular reasons why they should be heard within the time limit set in paragraph 5(c) of this notice.
It should be noted that any information submitted will only be taken into account if supported by
actual evidence at the time of submission.
5. Time limits
(a) Questionnaires
Interested parties willing to receive a questionnaire should request it as soon as possible, but
not later than 10 days after the publication of this notice in the Official Journal of the European Union
.
(b) For parties to make themselves known, to submit questionnaire replies and any other
information
All interested parties, if their representations are to be taken into account during the
investigation, must make themselves known by contacting the Commission, presenting their views
and submitting questionnaire replies or any other inform ation within 21 days of the date of publication
of this notice in the Official Journal of the European Union, unless otherwise specified.  Attention is
drawn to the fact that the exercise of most procedural rights set out in Council Regulation (EC)
No 3285/94,and Council Regulation (EC) No 519/94 depends on parties making themselves known
within the aforementioned period.
(c) Hearings
Pursuant to Article 6(4) of Council Regulation (EC) No 3285/94 and Article 5(4) of Council
Regulation (EC) No 519/94,all interested parties may also apply to be heard by the Commissionwithin 21 days of the publication of this notice in the Official Journal of the European Union .
6. Written submissions, questionna ire replies and correspondence
All relevant information is to be communicated to the Commission.  All submissions and
requests made by interested parties must be made in writing (not in electronic format, unless
otherwise specified), and must indicate the name, address, e-mail address, telephone and fax, and/or
telex numbers of the interested party.G/SG/N/6/EEC/2
Page 10
The Commission address for correspondence is:
European Commission
Directorate General for Trade
Directorate BJ-79 —5/16
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.
7. Non-cooperation
When information is not supplied within the ti me limits or the investigation is significantly
impeded, findings, affirmative or negative, may be made on the basis of the facts available.
Where it is found that any interested party has supplied false or misleading information, the
information shall be disregarded and use may be made of the facts available.
8. Schedule of the investigation
In accordance with Article 7 of Regulation (EC) No 3285/94 and Article 6 of Regulation (EC)
No 519/94 the investigation shall, if possible, be concluded within 9 months of the date of the
publication of this notice in the Official Journal of the European Union .
In exceptional circumstances the investigation may be extended by a further maximum period
of 2 months.  If the time limit is extended, the Commission will publish a notice in the OfficialJournal of the European Union setting forth the duration of the extension and a summary of the
reasons therefor.
III. PARALLEL INVESTIGATIONS UNDER COUNCIL REGULATION (EC)
NO 427/2003 AND COUNCIL REGULATIONS (EC) NOS 3285/94, 519/94 AND
2201/96
The Commission intends to conduct the investigation under Council Regulation (EC)
No 427/2003 and the investigation under Counc il Regulations (EC) Nos 3285/94 and 519/94 in
parallel so as to avoid any unnecessary burden on interested parties.  The files and information for
each investigation will, however, be kept separate.  Nevertheless, if interested parties so wish, they
may submit the same information to the Commission for each investigation.
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