. /.WORLD TRADE
ORGANIZATIONG/SG/N/6/VEN/4
30 October 2001
(01-5329)
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
VENEZUELA
The following communication, dated 24 October 2001, has been received from the Permanent
Mission of Venezuela.
_______________
Pursuant to Article 12.1(a) of the Agreement on Safeguards on initiation of an investigation
and the reasons for it, I have the pleasure to submit the following notification.
The competent Venezuelan authority hereby reports that this investigation commenced on
16 October 2000 and that the products subject to investigation are as follows:  uncoated paper and
paperboard, of a kind used for writing, printing or other graphic purposes, and punch card stock and
punch tape paper, in rolls or sheets, identified in the Venezuelan Customs Tariff under tariff
codes 4802.10.00, 4802.30.00, 4802.51.00, 4802.52.90 and 4802.53.00;  other paper, paperboard,
cellulose wadding and webs of cellulose fibres, cut to size or shape;  other articles of paper pulp,
paper, paperboard, cellulose wadding or webs of cellulose fibres, identified under tariff
codes 4823.51.10, 4823.51.90 and 4823.59.00;  and cartons, boxes, cases, bags and other packingcontainers, of paper, paperboard, cellulose wadding or webs of cellulose fibres;  box files, letter trays,
and similar articles, of paper or paperboard of a kind used in offices, shops or the like, corresponding
to tariff subheadings 4819.30.10, 4819.30.90 and 4819.40.00.G/SG/N/6/VEN/4
Page 2
Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, and taking into account the
model proposed by the Committee on Safeguards (G/SG/N/6, dated 7 February 1995), the
Committee is hereby informed that the compet ent Venezuelan authority has initiated the
following safeguards investigation:
1. Date of initiation of the investigation : 16 October 20011, by means of
Decision No. ST-S-AP002/01 of the Technical Se cretariat of the Anti-Dumping and Subsidies
Commission.
2. Products subject to the investigation :  uncoated paper and paperboard, of a kind used for
writing, printing or other graphic purposes, and punch card stock and punch tape paper, in
rolls or sheets, identified in the Venezuelan Customs Tariff under tariff codes 4802.10.00,4802.30.00, 4802.51.00, 4802.52.90 and 4802.53.00; other paper, paperboard, cellulose
wadding and webs of cellulose fibres, cut to size or shape;  other articles of paper pulp, paper,
paperboard, cellulose wadding or webs of cellulose fibres, identified under tariff
codes 4823.51.10, 4823.51.90 and 4823.59.00;  and cartons, boxes, cases, bags and other
packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres;  boxfiles, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops
or the like, corresponding to tariff subheadings 4819.30.10, 4819.30.90 and 4819.40.00.
3. Reasons for initiation of the investigation :
(i) The investigation was initiated at the request of the Asociación Venezolana de Productores de
Pulpa y Papel APROPACA, as the representative of the companies Manufacturas de Papel,
C.A. (MANPA) S.A.C.A. and VENEPAL, C.A., given that, as can be gathered from the
application, these are the only domestic manufacturers of paper for writing and printing in
rolls and paper bags and they account for 80 per cent of the domestic production of paper forwriting and printing in the form of ream paper and paper bags.
(ii) The Technical Secretariat of the Anti-Dumping and Subsidies Commission (CASS) initiated
the investigation on the basis of evidence su bmitted by the applicant in support of the
application.  In this connection, the applican t submitted figures relating to the increased
volume of imports of the above-mentioned paper products, corresponding to the last three
calendar years and first four months of 2001, supported by official statistical data.  It alsosubmitted evidence of the serious injury caused to the domestic industry by the contested
imports and, to that end, provided information in relation to paper for writing, printing or
other graphic purposes on the deterioration of its main economic variables, such as
production, capacity utilization, sales, market share, inventories, employment, profit margins,
return on investment and cash flow; likewise it provided information in relation to papercartons, boxes, cases and bags on  the deterioration of their main economic variables, such as
production, capacity utilization, sales, market share, inventories and employment, indicating
in each instance the causal link between the deterioration and the increased imports.  Thus,
the Technical Secretariat considered whether to open an investigation and found that there
was sufficient evidence of an increase in imports, serious injury to the domestic industry anda causal link between both elements.
(iii) With regard to the existence of critical circumstances, the applicant submitted the most recent
data in its possession on the increased imports and injury.
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1 The text of the Decision to open the investigation, No. ST-S-AP002/01 of 16 October 2001, will be
published shortly in the Official Gazette of the Republic of Venezuela.