WORLD TRADE
ORGANIZATIONG/SG/N/7/CZE/3
30 November 2001
(01-6115)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARDS
MEASURE REFERRED TO IN ARTICLE 6
CZECH REPUBLIC
The following communication, dated 27 November 2001, has been received from the
Permanent Mission of the Czech Republic.
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Pursuant to Article 12.4 of the Agreement on Safeguards and in keeping with the format for
notifications under the Agreement on Safeguards adopted by the Committee on Safeguards (G/SG/1),
the Czech Republic hereby gives notification before taking a provisional safeguard measure underArticle 6 of the Agreement on Safeguards.
1. Product subject to the proposed provisional safeguard measure
Cocoa powder containing 80 per cent or more by weight of sucrose (including invert sugar
expressed as sucrose) or isoglucose expressed as sucrose (HS item 1806 10 90).
2. Proposed provisional safeguard measure
The provisional safeguard measure will be applied in the form of a tariff increase by the
introduction of the additional import duty at the level of  113 per cent to the product in question.  The
additional duty will be applied to all imports irrespective of their source.
3. Proposed date of introduction of the provisional safeguard measure
The provisional safeguard measure is scheduled to enter into force on 30 November 2001.
4. Expected duration of the provisional safeguard measure
The provisional safeguard measure will be applied for a time-period of up to 200 days until
17 June 2002 at the latest during which the investigation will proceed further.
5. Preliminary determination that increased imports have caused or are threatening to
cause serious injury
It has been found that the product in question is being imported into the Czech Republic in
such increased quantities and under such conditions as  to cause or threaten to cause serious injury to
the domestic industry concerned.G/SG/N/7/CZE/3
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Imports of product in question in tonnes recounted
to the volume of sugar
1998 1999 2000 2001 (1 January-
31 October)
HS 1806 10 90 5.48 3.94 242.21 13,125.67
Share of product in question (recounted to the volume of sugar)
in domestic sugar production, consumption and sales in per cent
Share 1998 1999 2000 2001
In domestic sugarproduction0.0012 0.0010 0.0558 2.6*
In domestic sugar
consumption0.0014 0.0010 0.0577 3.1*
In domestic sugar
sales0.0015 0.0011 0.0756 4.2*
*1 January-31 October 2001
The imports of the product in question, recounted to the volume of sugar, increased in 2001
(1 January-31 October) to 13,125.67 tonnes.  It represents an increase of 5,319 per cent when
compared with the volume of imports in 2000.  This dramatic upsurge of imports would have
continued in the absence of a preliminary measure of a protective nature.  The average volume of
imports for the preceding three years was 93 tonnes, or 84 tonnes when recounted to the volume ofsugar.
The value of sugar that was not sold due to increased imports of cocoa powder corresponds to
CZK 236.8 million (measured at average producers sugar price in 2001).  Such a substantial increase
of imports has an adverse effect on the domestic sugar industry, in particular due to the continuousdecrease in domestic sugar sales in 2001 (295,300 tonnes - estimate, in 2001 in comparison with
320,362 tonnes in 2000).
6. Determination of critical circumstances where delay would cause damage which it
would be difficult to repair
The increase in imports of cocoa powder coincides with the adoption of the safeguard
measure on substitutes of sugar in January 2001 (G /SG/N/11/CZE/2).  The upsurge in imports is
evident from the monthly data of 2001.
Monthly imports of the product in question in tonnes
recounted to the volume of sugar in 2001
I II III IV V VI VII VIII IX X XI
Imports
recounted
to volumeof sugar42 892 1,090 1,183 768 2,123 911 1,514 1,567 3,035 1,231G/SG/N/7/CZE/3
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The Ministry of Industry and Trade determined that all these factors constitute critical
circumstances, as set out in Article 6 of the Agreement on Safeguards, where delay would cause
damage which it would be difficult to repair.
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