WORLD TRADE  
ORGANIZATION  G/SG/N/6/MDA/2 
13 July 2004 
 (04-3005) 
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 
 
REPUBLIC OF MOLDOVA 
 
(Cosmetic and Perfumery Products
) 
   The following communication, dated 6 July 2004,  is being circulated at the request of the 
Delegation of Moldova. 
 
_______________ 
 
  Pursuant to Article 12.1(a) of the Agreemen t on Safeguards, I have the honour to present the 
notification on initiation, by the Government of  the Republic of Moldova, of a safeguards 
investigatory process related to imports  of cosmetic and perfumery products. 
 
*  *  *  *  * 
  Pursuant to Article 12.1(a) of the Agreemen t on Safeguards and using the format adopted by 
the Committee on Safeguards (G/SG/N/6), the Republic of Moldova hereby presents the notification 
on initiation of a safeguards investigatory process, as follows:  
1. Date investigation was initiated 
 
 On 18 June 2003, the Investigation Authority of  the Republic of Moldova decided to initiate 
an investigation process related to impor t of cosmetic and perfumery products. 
 
2. Cosmetics and perfumery products subject to investigation  
 
 1.  330300100 - perfumery; 
 2.  330300900 - toilet waters; 
 3.  330499000 - others;  4.  330510000 - shampoos;  5.  330610000 - dentifrice;  6.  3307 - Pre-shave, shaving or after-sha ve preparations, personal deodorants, bath 
preparations, depilatories and other perfumery, co smetic or toilet preparations, not elsewhere 
specified or included;  prepared room deodorisers. 
 
3. Reasons for initiation of the investigation  
 
 The investigation was initiated by the Investig ation Authority of the Republic of Moldova on 
the basis of a petition submitted by the “Viorica Co smetic” JSC, the single pr oducer of cosmetics and 
perfumery products in the Republic of Moldova.  G/SG/N/6/MDA/2 
Page 2  
 
 The Investigation Authority has evidence of s ubstantial increases in imports of cosmetic and 
perfumery products which have caused and threaten to cause serious injury to the domestic cosmetic 
and perfumery products industry.  
− The value of imports of perfumery (tari ff number - 330300100) have increased in the 
period of 2000 – 2003 by 7.06 times from US$23.6 thousand in 2000 to 
US$166.4 thousand in 2003; 
 
− The value of imports of toilet waters (tar iff number - 330300900)  have increased in the 
period of 2000 – 2003 by 3.97 times from US$429.9 thousand in 2000 to US$1,707 thousand in 2003; 
 
− The value of imports of other cosmetic products (tariff number - 330499000)  have 
increased in the period of 2000 – 2003 by 7.4 times from US$364.8 thousand in 2000 to US$2,687.2 thousand in 2003; 
 
− The value of imports of shampoos (tariff number - 330510000)  have increased in the 
period of 2000 – 2003 by 4.005 times from US$498.8 thousand in 2000 to US$1,997.7 thousand in 2003; 
 
− The value of imports of dentifrice (tari ff number - 330610000)  have increased in the 
period of 2000 – 2003 by 3.8 times from US$310.8 thousand in 2000 to US$1,178.1 thousand in 2003; 
 
− The value of imports of pre-shave, shav ing or after- shave preparations, personal 
deodorants, bath preparations, depilatories and other perfumery etc. (tariff number - 3307)  
have increased in the period of 2000 – 200 3 by 2.2 times from US$1,376 thousand in 
2000 to US$2,981.1 thousand in 2003;    
 
This development in imports of cosmetic and pe rfumery products led to the fact that the share 
of imports in domestic consumption has increased from 60.95 per cent in 2001 to 81.98 per cent in 
2003.  
  According to the data submitted by the domest ic producer, the Investigation Authority has 
found that due to the increased imports of cosmetic  and perfumery products, the number of employees 
in domestic cosmetic and perfumery products indu stry decreased with 61 employees.  The labour 
productivity diminished with 9.7 per cent.  Also, the utilisation of production capacity has 
considerably reduced in the last 2 years, using just  25.1 per cent out of the total production capacity of 
the enterprise.        After the examination of the petition, the Inv estigation Authority has decided to initiate the 
safeguard investigation.   
 
 
Statistical data
 
 
Figure 2000 2001 2002 2003 
Total imports of perfumery  
(US$ thousand)  
23.6 57.8 139.1 166.4 
Total imports of toilet water  
(US$ thousand)  
429.9 710.4 1,176.6 1,707 
Total imports of others  
(US$ thousand)  
364.8 830.2 1,435.6 2,687.2  G/SG/N/6/MDA/2 
 Page 3 
 
 
Figure 2000 2001 2002 2003 
Total imports of shampoos  
(US$ thousand)  
498.8 789.9 1,337.4 1,997.7 
Total imports of dentifrice  
(US$ thousand)  
310.8 437.8 787.2 1,178.3 
Total imports of pre-shaving, bath 
preparations, personal deodorants etc. (US$ thousand)  
1,376 1,257.5 1,410.9 2,981.1 
Net sales of the domestic industry (thousand MDL)  
21,361 16,412.3 15,605 16,309 
Employment in cosmetic and 
perfumery products industry (persons)  
310 305 264 241 
Production (pieces) 6,14 4 5,366 3,858 4,169 
Production capacity utilization (%)  
29.2 26.8 20.0 25.1 
 
 
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