WORLD TRADE
ORGANIZATIONG/SG/N/8/POL/4
23 October 2003
(03-5598)
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
POLAND
The following communication, dated 21 October 2003, has been received from the Permanent
Mission of Poland.
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Pursuant to Article 12.1 (b) of the Agreement on Safeguards Poland hereby submits
notification upon making a finding of serious injury caused by increased imports.
1. Determination that increased im ports have caused serious injury
(a) Increase in imports
The volume of imports of matches in the investigation period amounted to:
• 44 688 kilograms in 1999,
• 255 558 kilograms in 2000,
• 510 009 kilograms in 2001,
• 1 078 826 kilograms in 2002
The share of imports in the domestic production during the investigation period amounted to:
• 0,48 per cent in 1999,
• 2,99 per cent in 2000,
• 6,45 per cent in 2001,
• 15,8 per cent in 2002.
The share of imports in the domestic consumption during the investigation period amounted
to:
• 0,54 per cent in 1999,
• 3,34 per cent in 2000,
• 7,08 per cent in 2001,
• 15,58 per cent in 2002r.G/SG/N/8/POL/4
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Import prices ( PLN/kg):
• 1999 – 10,25
• 2000 – 3,92
• 2001 – 3,84
• 2002 – 3,39
Prices of the domestic product (previous year = 100):
• 1999 – 100
• 2000 – 96,9
• 2001 – 104,4
• 2002 – 97,7.
The results of the analysis indicate that, since 2000 the prices of imported matches has been
lower than prices of the domestic like product.  Price undercutting in the last period of investigation
(2002) surpassed 18 per cent.
Imports of matches at lower prices resulted in price fall of the domestic product.  Price
underselling in the last period of investigation (2002) surpassed 25 per cent.
(b) Serious injury
Based on analysis of the factors concerning the situation of domestic producer of the like
product as indicated in Article 4.2 (a) of the Agreement on Safeguards, the investigating authority has
determined:
- volume of domestic production,
- domestic sales,
- productivity,- capacity utilization,
- employment,
- profits and losses,
- share of the domestic industry in the market.
volume of domestic production:
There was a steady fall of the volume of domestic production:
• 9 220 500 kilograms in 1999,
• 8 555 000 kilograms in 2000,
• 7 908 000 kilograms in 2001,
• 6 829 000 kilograms in 2002.
level of domestic sales:
The volume of domestic sales of matches in the investigation period amounted to:
• 8 193 426 kilograms in 1999,
• 7 397 315 kilograms in 2000,
• 6 706 666 kilograms in 2001,
• 5 845 929 kilograms in 2002.G/SG/N/8/POL/4
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productivity (previous year = 100):
• in 1999 – 100
• in 2000 – 106,7
• in 2001 – 100,9
• in 2002 – 93
capacity utilization:• 41,6 per cent in 1999,
• 42,5 per cent in 2000,
• 46 per cent in 2001,
• 41,8 per cent in 2002.
employment:
(a) Overall employment in domestic industry of the product under investigation decreased
(previous year = 100):
• in 1999 – 100,
• in 2000 – 91,2
• in 2001 – 100
• in 2002 – 94,5
(b) Number of employees directly involved in the manufacturing process of the product
decreased (previous year = 100):
• in 1999 – 100,
• in 2000 – 88,2
• in 2001 – 99,5
• in 2002 – 90,4
profits and losses:
The domestic industry due to an increasing drop in revenues has been suffering losses.
share of the domestic industry in  the market was falling steadily:
• 99,46 per cent in 1999,
• 96,66 per cent in 2000,
• 92,93 per cent in 2001,
• 84,42 per cent in 2002
As a result of analysis the Minister of Economy, Labour and Social Policy stated that the
domestic industry suffered an injury what is evidenced by such economic indicators as: fall in thesales level, production, productivity, capacity utilization, decrease in the share in the domestic market,
fall in employment and financial losses.G/SG/N/8/POL/4
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(c) causation
On the basis of available information the investigating authority has made a determination
that there is clear evidence of a causal link betw een the recent growth of imports of product under
investigation and the injury caused to domestic producer.  In the course of the investigation theMinister of Economy, Labour and So cial Policy found that sharp increase in imports of matches took
place in the investigation period .  Increased imports was realized at prices lower than the domestic
ones and thus have caused serious injury to the domestic industry.
To ensure that serious injury is not attributable  to others factors than increase in imports, the
investigating authority evaluated all relevant factors, including fall in domestic consumption,
influencing the situation of that industry. Minist er of Economy, Labour and Social Policy found that
in spite of decreasing consumption the share of imports in the domestic market has grown
systematically in the investigation period. In the course of the investigation Minister of Economy,
Labour and Social Policy has not found other factors which could cause injury to the domestic
industry.
The investigating authority has established that  worsening of the situation of the domestic
producer of like product is directly attributable to increase in imports.
2. Product subject to investigation
The product subject to investigation are matches classified under tariff item 3605 00 00 0  of
the Polish Harmonized Tariff.
3. Description of the proposed measure
On the basis of the conclusions concerning injury and causal link Minister of Economy,
Labour and Social Policy intends to impose safeguard measure.  The safeguard measure is proposed
to  consist  of  additional duty to be paid on imports exceeding certain quantities.
The level of additional duty will be calculated on the basis of price underselling and will
amount to 20 per cent.
The quantity of imports free from additional duty will be established on the basis of the
average volume of imports of the product concerned in the last three years of the investigation period.
4. Proposed date of introduction of the measure
The measure is expected to be introduced before the end of 2003.
The decision on final findings was published in the official journal “Monitor Polski” No 48,
item 737 of 15 October 2003.
5. Expected duration of the measure
The safeguard measure will be applied up to 30 April 2004 until accession of Poland to the
European Union.
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