WORLD TRADE
ORGANIZATIONG/SG/N/8/EEC/1/Suppl.1
G/SG/N/10/EEC/1/Suppl.1G/SG/N/11/EEC/1/Suppl.1
23 October 2002
(02-5805)
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
NOTIFICATION PURSUANT TO ARTICLE 12.1(c)
OF THE AGREEMENT ON SAFEGUARDS
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2
OF THE AGREEMENT ON SAFEGUARDS
EUROPEAN COMMUNITIES
Supplement
The following communication, dated 21 October 2002, has been received from the Permanent
Delegation of the European Commission.
_______________
Pursuant to Articles 12.1(b), 12.1(c) and 9 footnote 2 of the Agreement on Safeguards, the
European Communities submit supplemental notifications on finding serious injury or threat thereof
caused by increased imports, on taking a decision to apply safeguard measures, and on taking a
decision not to apply those measures to products originating in developing countries.  The European
Communities also submits a copy of the relevant EC Regulation.1
                                                     
1 A copy of the relevant EC Regulation is available for review by interested delegations in office 1028.G/SG/N/8/EEC/1/Suppl.1
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I. NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT THEREOF
CAUSED BY INCREASED IMPORTS
II. NOTIFICATION PURSUANT TO ARTICLE 12.1(C) OF THE AGREEMENT ON
SAFEGUARDS
In light of the agreed format for notifica tions (G/SG/W/1, 23 February 1995), the European
Communities provides supplemental notification to the Committee on Safeguards of findings of
serious injury or threat thereof caused by increased imports and notification of safeguard measures
applied.
On 28 March 2002, the European Communities initiated an investigation relating to serious
injury to domestic producers of products like or directly competing with imported steel products.  The
21 steel products covered by the investigation were non-alloy hot-rolled coils, non-alloy hot-rolled
sheets and plates, non-alloy hot-rolled narrow strip, alloy hot-rolled flat products, cold-rolled sheets,
electrical sheets (other than GOES), metallic coated sheets, organic coated sheets, tin mill products,
quarto plates, wide flats, non-alloy merchant bars and light sections, alloy merchant bars and light
sections, rebars, stainless bars and light shapes, stainless wire rod, stainless steel wire, fittings
(<609.6 mm), flanges (other than of stainless steel), gas pipes and hollow sections.
On the same day, provisional measures were imposed on 15 selected steel products amongst
those covered by the investigation.  These products are non-alloy hot-rolled coils, non-alloy hot-rolled
sheets and plates, non-alloy hot-rolled narrow strip, alloy hot-rolled flat products, cold-rolled sheets,
electrical sheets (other than GOES), tin mill products, quarto plates, wide flats, non-alloy merchant
bars and light sections, alloy merchant bars and light sections, rebars, stainless steel wire, fittings(<609.6 mm) and flanges (other than of stainless steel).
The initiation of the investigation, the imposition of provisional measures as well as the
decision not to apply those provisional measures to certain products originating in developing
countries have been notified to the Committee on Safeguards on 27 March 2002 (G/SG/N/6/EEC/1,
G/SG/N/7/EEC/1, G/SG/N/11/EEC/1).
Consistent with Article 12.2 of the Agreement on Safeguards , the European Communities
notified on 3 September 2002 (G/SG/N/8/EEC/1 G/SG/N /10/EEC/1) information relating to the seven
products on which it proposed to apply definitive safeguard measures, i.e. non-alloy hot-rolled coils,
non-alloy hot-rolled sheets and plates, non-alloy hot-rolled narrow strip, alloy hot-rolled flat products,
cold-rolled sheets, fittings (<609.6 mm) and flanges (other than of stainless steel).
By Commission Regulation (EC) No 1694/2002 of 27 September, the European Communities
imposed definitive safeguard measures on imports of the seven steel products referred to above.  The
present notification confirms the findings and proposed measures notified on 3 September 2002. The
European Communities is providing a copy of Regulation (EC) No 1694/2002 to the Committeetogether with this notification. We understand that the Committee will make a copy of this regulation
available to Members on request. The regulation is a public document that can also be downloaded
from the European Commission website at http://www.europa.eu.int/eur-lex/en/dat/
2002/l_261/l_26120020928en00010123.pdf  (English version, other languages are also available on
the same site).G/SG/N/8/EEC/1/Suppl.1
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By Commission Regulation (EC) No 1695 /2002 of 27 September 2002, the European
Communities terminated the investigation initiated on 28 March 2002 with respect to electrical sheets
(other than GOES), metallic coated sheets, organic coated sheets, wide flats, non-alloy merchant barsand light sections, alloy merchant bars and light sections, stainless bars and light shapes, stainless
wire rod, stainless steel wire, gas pipes and hollow sections, and determined that any amounts paid in
respect of additional duties under the provisional measures in relation to electrical sheets (other than
GOES), wide flats, non-alloy merchant bars and light  sections, alloy merchant bars and light sections
and stainless steel wire should  be refunded as soon as possible. The European Communities is
providing a copy of Regulation (EC) No 1695/2002 to the Committee together with this notification.
We understand that the Committee will make a copy of this regulation available to Members onrequest. The regulation is a public document that can also be downloaded from the European
Commission website at http://www.europa.eu.int/eur-le x/en/dat/2002/l _261/l_26120020928en
01240139.pdf  (English version, other languages are also available on the same site) .
Finally, the European Communities to date has taken no decision in relation to three products
being tin mill products, quarto plates and rebars, for which the investigation continues.
_____________________
1. Provide evidence of serious injury or th reat thereof caused by increased imports
Annex I to notification G/SG/N/8/EEC/1 - G/SG/N/10/EEC/1 (3 September 2002) includes
information on evidence of serious injury caused by increased imports found during the investigation.
More detailed information can be found in EC Regulation 1694/2002.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production
Annex I to notification G/SG/N/8/EEC/1 - G/SG/N/10/EEC/1 (3 September 2002) includes
information on absolute increase in imports and in crease in imports relative to domestic production
for each of the seven products covered by safeguard measures. More detailed information can befound in EC Regulation 1694/2002.
3. Provide precise description of the product involved
Annex I to notification G/SG/N/8/EEC/1 - G/ SG/N/10/EEC/1 (3 September 2002) contains a
complete description of each of the seven products covered by the European Communities’
affirmative determinations. More detailed information can be found in EC Regulation 1694/2002.
4. Provide precise description of the proposed measure
EC Commission Regulation No. 1694 /2002 contains a precise description of the measures. It
also contains reference to the timetable for progressive liberalisation of the measure.
The measures consists in tariff quotas in excess of which an additional duty requires to be
paid so that even imports in excess of those quotas can still enter the Community, albeit uponpayment of an additional duty.
Such tariff quotas are based on the volume of imports during the last three years plus 10 %. In
view of the obligation to liberalise the measures,  that amount should be increased by 5 % in each yearG/SG/N/8/EEC/1/Suppl.1
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following, during which the measures are in force.  In calculating the quota for any period, it must be
recalled that the provisional measures took effect on 29 March 2002, and form six months of the three
year duration of the safeguard measures.  Therefore, the quota for the period 29 September 2002 to 28September 2003 is the aggregate of (1) one half of the average volume of imports during the last three
years plus 10 % and (2) that sum plus 5 % ; the quota for the period 29 September 2003 to 28
September 2004 will be (3) the quantity calculated at (2) and (4) that sum plus 5 % ; and, the quota for
the period 29 September 2004 to 28 March 2005 should be (5) the sum calculated at (4).
The additional duties have been fixed at a level which corresponds to the level of the
underselling margins in 2001 (subject to a maximum of 26%). In view of the obligation to liberalisemeasures, the rate of duty will decrease by 10 % in each year following during which the measures
are in force. Therefore, taking account of the fact that the provisional measures took effect on
29 March 2002, and form six months of the three year duration of the safeguard measures, the rates of
duty will be as follows. For the six month period 29 September 2002 to 28 March 2003, the initial rate
of duty will apply; for the period 29 March 2003 to 28 March 2004, the rate of duty will be the initialrate less 10 % ; and, for the period 29 March 2004 to 28 March 2005, the rate of duty will be the rate
for the immediately preceding period less 10 %.
The tariff quotas imposed in relation to all product included in the current notification other
than hot rolled coils should be allocated amongst those countries having a substantial interest insupplying those products to the Community market.  After consultation with all countries having such
a substantial interest, it is considered appropriate to allocate a specific part of each quota to each
country having a substantial interest, based on the proportions of the total quantity of the product
supplied by that country during a previous representative period (namely 1999 to 2001), due account
having been taken of any special factors.
The circumstances in relation to product number 1 (hot rolled coils) are different.  A large
number of supplying countries have a substantial inte rest in supplying hot rolled coils so that, were
the tariff quota to be allocated amongst those countries having a substantial interest in its supply, there
would be a large number of relatively small quota allocations and only a small percentage (less than
7.5 %) of the global quota tariff quota would remain available for exporters in other countries.
Therefore, the tariff quota in relation to hot rolled coils takes the form of a single global quota.
The tariff rate quotas resulting from these safeguard measures apply to all countries.  In this
respect, the Commission has determined that, due to certain country specific elements, the appropriate
quota allocations for Russia, Kazakhstan and Ukraine in relation to the products subject to the
bilateral agreements vis-à-vis Russia and Kazakhstan, and the unilateral measures vis-à-vis Ukraineare the quota allocations foreseen in those agreements and measures respectively.  The specific
elements are as follows.  The steel industries in these three countries are still undergoing far-reaching
restructuring and still require considerable modernisation.  These three countries are already subject to
severe quantitative restrictions which may not be exceeded.  These restrictions, which have been in
place for many years, have always been set at a level substantially below the countries’ exportpotential, and their existence has limited the oppo rtunity for these countries to export to the
Community.
The safeguard measures do not apply to any product originating in a developing country
whose share of imports of that product into the Community in 2001 did not exceed 3 %.
Annex I to to the present notification contains a summary of the safeguard measures.G/SG/N/8/EEC/1/Suppl.1
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5. Provide proposed date of introduction of the measure
The measures entered into force on 29 September 2002.
6. Provide expected duration of the measure
The expected duration of the measures is two and a half years.
7. For a measure with a duration of more than three years, provide the proposed date for
the review (under Article 7.4) to be held not later than the mid-term of the measure, if such adate for the review has already been scheduled
Not applicable.
8. If the expected duration is over one year, provide expected timetable for progressive
liberalisation of the measure
As noted above in item 4, each of the measures provides for progressive liberalisation.  The
terms of the liberalisation are indicated in item 4.
9. Provide information relating to the extension of a safeguard measure
Not applicable.
_______________
III. SUPPLEMENTAL NOTIFICATION UNDER ARTICLE 9 FOOTNOTE 2 OF THE
AGREEMENT ON SAFEGUARDS
1. Specify the measure
The measures consist  of temporary tariff quotas in excess of which additional duty requires to
be paid, as described in the notification under Article 12.1 (b) and 12.1 (c) above.
2. Specify the product subject to the measure
The measures apply to the products described in the notification under Article 12.1 (b) and
12.1 (c) above.
3. Specify developing countries to which the measure is not applied under Article 9.1 of the
Agreement on Safeguards and the imports sh ares of these countries individually and
collectively.
Annex II to the present notification contains the list of developing countries.  The safeguard
measures apply only to products originating in those countries marked with an ‘x’ in respect of that
product.
4. Not applicableG/SG/N/8/EEC/1/Suppl.1
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G/SG/N/11/EEC/1/Suppl.1Page 6ANNEX 1
Tariff quotas referred to in Article 1
Allocation From 29.09.02 to 28.09.03 From 29.09.03 to 28.09.04 From 29.09.04 to
28.03.05
by Country Volume of
tariff quota
(tonnes net)
(1)Additional duty
rateVolume of
tariff quota
(tonnes net)
(1)Additional duty
rateVolume of
tariff quota
(tonnes
net) (1)Additional
duty rateOrder
numbersDesignation of the
productCN codes
(Where
Applicable)Quota From
29.09.02 to
28.03.03From
29.03.03 to
28.09.03Quota From
29.09.03 to
28.03.04From
29.03.04 to
28.09.04Quota
Non Alloy Hot
Rolled Coils 7208.10.00,
7208.25.00,
208.26.00,
7208.27.00,
7208.36.00,
7208.37.10,7208.37.90,7208.38.10,7208.38.90,7208.39.10,
7208.39.90N/A 3.199.240 17.5% 15.7% 3.359.234 15.7% 14.1% 1.720.583 14.1% 09.0410
Non Alloy Hot
Rolled
Sheets and Plates7208.40.10,
7208.40.90,7208.52.99,7208.53.90,
7208.54.10,
7208.54.90Total       of
which554.286 26.0% 23.4% 581.999 23.4% 21.0% 298.098 21.0%
Slovakia 179.723 188.709 96.656 09.0430
Poland 120.061 126.064 64.569 09.0431
Hungary 90.404 94.924 48.620 09.0432
Bulgaria 61.195 64.254 32.911 09.0433
Others 102.903 108.048 55.342 09.0434G/SG/N/8/EEC/1/Suppl.1
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Page 7Non Alloy Hot
Rolled
Narrow Strip7211.14.10,
7211.14.90,7211.19.20,
7211.19.90,
7212.60.11,7212.60.19,
7212.60.91Total       of
which198.365 26.0% 23.4% 208.283 23.4% 21.0% 106.680 21.0%
Bulgaria 45.263 47.526 24.342 09.0440
Slovakia 57.922 60.818 31.150 09.0441
Switzerland 28.385 29.804 15.265 09.0442
Czech Rep. 30.074 31.578 16.174 09.0443
Turkey 8.721 9.157 4.690 09.0444
Others 28.000 29.400 15.059 09.0445
Alloy Hot Rolled
Flat Products 7225.19.10,
7225.30.00,7225.40.80,7226.19.10,
7226.91.10,
7226.91.90,
7226.99.20Total       of
which50.832 26.0% 23.4% 53.374 23.4% 21.0% 27.339 21.0%
Yugoslavia 26.600 27.930 14.306 09.0450
Romania 15.055 15.808 8.097 09.0451
Others 9.177 9.636 4.936 09.0452
Cold Rolled
Sheets 7209.15.00,
7209.16.90,
7209.17.90,7209.18.91,7209.25.00,7209.26.90,7209.27.90,
7209.28.90,Total       of
which2.107.210 26.0% 23.4% 2.212.571 23.4% 21.0% 1.133.269 21.0%
7209.90.10,
7209.90.90,Turkey 333.175 349.833 179.183 09.0460
7225.20.90,
7225.50.00,Slovakia 347.363 364.731 186.814 09.0461G/SG/N/8/EEC/1/Suppl.1
G/SG/N/10/EEC/1/Suppl.1
G/SG/N/11/EEC/1/Suppl.1Page 8 7211.23.10,
7211.23.99,S. Korea 161.809 169.900 87.022 09.0462
7211.29.20,
7211.29.50,Bulgaria 126.105 132.410 67.820 09.0463
7211.29.90,
7211.90.11,Yugoslavia 94.582 99.311 50.867 09.0464
7211.90.19,
7211.90.90,Argentina 158.055 165.958 85.003 09.0465
7212.60.93,
7212.60.99,Hungary 104.735 109.972 56.327 09.0466
7226.92.10,
7226.92.90S. Africa 83.767 87.956 45.050 09.0467
Others 697.619 732.500 375.183 09.0468
Fittings
(<609,6mm)7307.93.11,
7307.93.19 Total       of
which12.031 23.7% 21.3% 12.632 21.3% 19.2% 6.469 19.2%
Slovakia 1.815 1.906 976 09.0470
Thailand 1.186 1.246 638 09.0471
Vietnam 759 797 408 09.0472
Russia 1.064 1.117 572 09.0473
Malaysia 1.131 1.188 608 09.0474
Taiwan 2.071 2.175 1.114 09.0475
Romania 589 618 317 09.0476
Czech Rep 706 741 379 09.0477
Poland 472 495 254 09.0478
S. Korea 489 513 263 09.0479
Switzerland 397 417 213 09.0480
Others 1.352 1.419 727 09.0481
Flanges (other
than stainless
steel)7307.91.00
Total       of
which90.490 23.0% 20.7% 95.014 20.7% 18.6% 48.666 18.6%
China 25.434 26.705 13.678 09.0490
Poland 24.985 26.234 13.437 09.0491
Romania 18.711 19.647 10.063 09.0492
Czech Rep. 6.107 6.413 3.285 09.0493
Others 15.253 16.015 8.203 09.0494G/SG/N/8/EEC/1/Suppl.1
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Page 9(1) The tariff quotas do not apply to products originating in the developing countries listed in Annex 2, apart from those mark ed with an "X" in relation to that product.
Note:  Notwithstanding the rules for the interpretation of the combined nomenclature, the description of products is to be cons idered as indicative, the scope of the measures being determined by the CN
codesG/SG/N/8/EEC/1/Suppl.1
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ANNEX 2
List of products originating in  developing countries to which
the measures apply
12 3 451 8 1 9
AE United Arab Emirates
AF Afghanistan
AG Antigua and Barbuda
AO Angola
AR Argentina X X
BB Barbados
BD Bangladesh
BF Burkina Faso
BH Bahrain
BI Burundi
BJ Benin
BN Brunei Darussalam
BO Bolivia
BR Brazil
BS Bahamas
BT Bhutan
BW Botswana
BZ Belize
CD Democratic Republic of Congo
CF Central African Republic
CG Congo
CI Côte d’Ivoire
CL Chile
CM Cameroon
CN People’s Republic of China X X
CO Colombia
CR Costa Rica
CU Cuba
CV Cape Verde
CY Cyprus
DJ Djibouti
DM Dominica
DO Dominican Republic
DZ Algeria
EC Ecuador
EG Egypt X
ER Eritrea
ET Ethiopia
FJ Fiji
FM Federated States of Micronesia
GA Gabon
GD Grenada
GH GhanaG/SG/N/8/EEC/1/Suppl.1
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GM Gambia
GN Guinea
GQ Equatorial Guinea
GT Guatemala
GW Guinea-Bissau
GY Guyana
HN Honduras
Hong Kong
HT Haiti
ID Indonesia
IN India
IQ Iraq
IR Iran (Islamic Republic of) X
JM Jamaica
JO Jordan
KE Kenya
KH Cambodia
KI Kiribati
KM Comoros
KN St Kitts and Nevis
KW Kuwait
LA Lao People’s Democratic
Republic
LB Lebanon
LC St Lucia
LK Sri Lanka
LR Liberia
LS Lesotho
LY Libyan Arab Jamahiriya X
MA Morocco
MG Madagascar
MH Marshall Islands
ML Mali
MM Myanmar
MN Mongolia
MR Mauritania
MU Mauritius
MV Maldives
MW Malawi
MX Mexico
MY Malaysia X
MZ Mozambique
NA Namibia
NE Niger
NG Nigeria
NI Nicaragua
NP Nepal
NR Nauru
OM Oman
PA PanamaG/SG/N/8/EEC/1/Suppl.1
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PE Peru
PG Papua New Guinea
PH Philippines
PK Pakistan
PW Palau
PY Paraguay
QA Qatar
RW Rwanda
SA Saudi Arabia
SB Solomon Islands
SC Seychelles
SD Sudan
SL Sierra Leone
SN Senegal
SO Somalia
SR Suriname
ST Sao Tomé and Principe
SV El Salvador
SY Syrian Arab Republic
SZ Swaziland
TD Chad
TG Togo
TH Thailand X
TN Tunisia
TO Tonga
TP East Timor
TT Trinidad and Tobago
TV Tuvalu
TZ Tanzania (United Republic of)
Chinese Taipei X
UG Uganda
UY Uruguay
VC St Vincent and Northern
Grenadines
VE Venezuela
VN Viet Nam X
VU Vanuatu
WS Samoa
YE Yemen
ZA South Africa X X
ZM Zambia
ZW Zimbabwe
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