WORLD TRADE
ORGANIZATIONG/SG/N/7/POL/1
G/SG/N/11/POL/1
19 August 2002
(02-4488)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARD
MEASURE REFERRED TO IN ARTICLE 6
NOTIFICATION PURSUANT TO ARTICLE 9,
FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS
POLAND
The following communication, dated 14 August 2002, has been received from the Permanent
Mission of Poland.
_______________
Pursuant to Article 12.4 of the Agreement on Safeguards and to the format of notifications
under this Agreement as adopted by the Committee on Safeguards in document G/SG/N/6, Poland
hereby submits a notification before taking a provisional safeguard measure regarding imports of
certain steel products, under Article 6 of the Agreement.
Notification under Article 12.4 of the Agreemen t on Safeguards before taking a provisional
safeguard measure referred to in Article 6 of the Agreement on Safeguards
1. The product subject to the proposed provisional safeguard measure
The list of steel products concerned is specified in Annex I to this notification.
2. The proposed provisional safeguard measure
The proposed provisional safeguard measure consists of additional duties to be paid on
imports exceeding certain quantities.  The level of additional duty was calculated on the basis of priceundercutting and price underselling established by comparison of prices in imports and domestic
prices (in case of price underselling target prices have been used).  The quantity of imports free from
additional duty (tariff quota) for each product category was established on the basis of average
volume of imports during the period 1999–2001 plus 10–35 per cent depending on the product
category.  The tariff quotas for various categories of products are established separately for WTOmembers and other countries (non-WTO members) proportionally to their share in imports during the
period of 1999–2001.
The quantities referred to and the additional duties, which will be applied to the various
product categories, are set out in Annex I to this notification.G/SG/N/7/POL/1
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3. The proposed introduction of  the provisional safeguard measure
The proposed provisional safeguard measure will enter into force on the day of publication of
the decree of the Minister of Economy on imposition of provisional safeguard measure in the officialjournal “Dziennik Ustaw”.  The publication is expected on 19 August 2002.
4. The expected duration of the provisional safeguard measure
The provisional safeguard measure will be applied within 200 days from the date of its
entering into force.
5. Preliminary determination that increased imports have caused or are threatening to
cause serious injury
(a) Unforeseen developments
Since 1997 imports of steel products in question into the Polish customs territory have
increased significantly.  The rise of imports in 2001 has led to the worsening of the situation of the
domestic producers of the like products.  This situation is aggravated by the expected effects of the
protective measures taken  by major importers of steel during the first 6 months of 2002.  The
resulting restriction of access to protected markets created a threat of diverting significant quantitiesof steel products towards other markets.
This has increased the exposure of the Polish steel industry to influx of diverted quantities of
steel products from other markets.
Pursuant to a Regulation on automatic registration of imports of certain steel products,
introduced in April 2002, competent authorities have already issued import licenses accounting for
more than 7 million tonnes, which is more than the volume of total imports of steel products for 2001.
This figure is the best indication of the likely level of imports in the year to come unless some
protective measures are put in place. It is also a confirmation of further diversion of trade flows in
steel market.
(b) Increase in imports
On the basis of preliminary analysis competent Polish authorities have determined that during
the period of investigation (1997–2001) imports of each category of products in question increased
significantly, in absolute terms as well as in relation to domestic production and consumption.  In2001, when total imports of products concerned rose by nearly 40 per cent as compared to the
preceding year, a sharp and sudden surge in imports was observed.  Data on imports of each category
concerned is specified in Annex II to this notification.
In general, the average prices of imports, as indicated in Annex II to this notification, were
lower than the prices of the domestic like products.
The investigating authorities pre liminary determined that during the last year of the period of
investigation there was a price underselling in each category of investigated products of the level
indicated in Annex II.G/SG/N/7/POL/1
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(c) Serious injury and threat thereof
Based on preliminary analysis of the factors concerning the situation of domestic producers of
the like and directly competitive products, as indicated in the Article 4.2 (a) of the Agreement onSafeguards, the investigating authorities have made a preliminary determination that in relation to
each of the 10 product categories concerned, depending on the case, domestic producers have suffered
or are threatened to suffer serious injury caused by significant increase of  imports in question.
Detailed information on factors concerning injury analysis for specific categories of steel products
concerned is provided in Annex II to this notification.
(d) Causation
On the basis of available information the investigating authority has made a preliminary
determination that there is clear evidence of a causal link between the recent growth of imports of the
products under investigation and the injury or threat thereof caused to domestic producers of the
products concerned.  The investigating authorities have established that worsening situation ofdomestic producers of like or directly competitive products is directly attributable to the increase of
imports and conditions under which imported products in question were offered on the Polish market.
(e) Other factors
To ensure that the threat of serious injury is not attributable to other factors than the increase
in imports, the investigating authorities have carried out a preliminary analysis of other factors (e.g.
international economic situation, increase of costs of production, fall of exports, restructuring process
of domestic steel mills) that may have contributed to the serious injury suffered by the domestic
producers.  In the course of further investigation a detailed examination of all factors, which have, ormay have contributed to the injury, will be conducted by the investigating authorities.
(f) Critical situation
The surge of imports of steel products into Polish customs territory in 2001 along with
protective actions taken by major steel importers in 2002 and worsening situation of Polish domestic
steel industry have led investigating authorities to the conclusion that delay in taking a safeguardmeasure would cause damage to the domestic industry which would be difficult to repair.
6. Offer of consultations under Article 12.4
Poland is ready to hold consultations on the provisional safeguard measure.G/SG/N/7/POL/1
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Annex I
Proposed provisional safeguard measures and products subject to this measure
Product PCN Code Additional
Duty
(%)Tariff
quota for
WTO
members
(t)Tariff
quota for
non-
WTO
countries
(t)
1 Pig iron and spiegeleisen in pigs 7201 10 110, 7201 10 190, 7201 10 300,
7201 10 900, 7201 20 000,25 4520 24770
2 Non alloy hot rolled flat products
of a width of 600 mm or more7208 10 000, 7208 26 000, 7208 27 000,
7208 37 100, 7208 37 900, 7208 38 100,7208 38 900, 7208 39 100, 7208 39 900,
7208 40 100, 7208 51 100, 7208 51 300,
7208 51 500, 7208 51 910, 7208 51 990,7208 52 100, 7208 52 910, 7208 52 990,
7208 53 900, 7208 54 100,25 222901 114852
3 Non alloy cold rolled flat
products of a width of 600 mm or
more7209 16 900, 7209 17 900, 7209 18 910,
7209 26 900, 7209 27 900, 7209 28 900,18 76798 25205
4 Non alloy galvanized flat
products7210 30 100, 7210 30 900, 7210 41 100,
7210 41 900, 7210 49 100, 7210 49 900,7212 30 110, 7212 30 190, 7212 30 900,23 97450 5628
5 Non alloy organic coated flat
products7210 70 390, 7210 70 900, 7212 40 910,
7212 40 930, 7212 40 980,23 110331 42
6 Other non alloy hot rolled bars 7214 10 000, 7214 20 000, 7214 91 100,
7214 99 100, 7214 99 310, 7214 99 390,
7214 99 610, 7214 99 690, 7214 99 900,7215 50 190, 7215 10 000,20 55841 5487
7 Non alloy hot rolled sections 7216 31 110, 7216 31 190, 7216 31 990,
7216 32 110, 7216 32 190, 7216 32 910,
7216 33 100, 7216 33 900,11 64436 444
8 Electrical sheets 7225 11 000, 7225 19 900, 7226 11 100,
7226 11 900, 7226 19 300, 7226 19 900,18 9965 1511
9 Seamless tubes 7304 10 100, 7304 10 300, 7304 10 900,
7304 29 190, 7304 31 910, 7304 31 990,7304 39 200, 7304 39 510, 7304 39 910,
7304 39 930, 7304 59 100,20 22806 3917
10 Welded tubes of diameter 406,4
mm and less7306 10 110, 7306 10 190, 7306 10 900,
7306 30 510, 7306 30 590, 7306 30 780,
7306 30 900,20 22291 3359G/SG/N/7/POL/1
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Annex II
Data on imports of products covered by the proposed provisional safeguard measure and on
injury caused to domestic industry
II. 1 Pig iron and spiegeleisen in pigs
1997 1998 1999 2000 2001
Consumption
(tonnes)116,814 105,959 83,665 98,068 175,836
Imports (tonnes) 17,184 25,695 21,267 9,411 129,093
Share of imports in
consumption (%)14.7% 24.2% 25.4% 9.6% 73.4%
Average unit prices in
imports (PLN/tonne)511.4 501.6 471.6 637.3 492.3
Domestic production
(tonnes)176,983 172,523 115,238 192,468 82,141
Capacity utilization (%) 79% 77% 51.4% 85.9% 36.7%
Domestic sales
(tonnes)99,630 80,264 62,398 88,657 46,743
Share of domestic sales in
consumption (%)85.3% 75.8% 74.6% 90.4% 26.6%
Average unit prices in
domestic sales (PLN/tonne)513.5 614.1 619.5 650 729.3
Productivity (tonnes /1
employee)430 409 351 600 275
Employment (1997 =
100%)100% 102% 79.6% 77.9% 72.6%
Profits and  losses (%) - 6.9% 2.1% - 4.9% 5.2% 0.6%
Price underselling in 2001  – 35.9 %G/SG/N/7/POL/1
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II. 2 Non alloy hot rolled flat products of a width of 600 mm or more
1997 1998 1999 2000 2001
Consumption
(tonnes)1,182,091 1,178,921 1,230,831 1,608,387 1,714,826
Imports (tonnes) 197,152 291,724 477,728 540,106 824,459
Share of  imports in
consumption (%)16.7% 24.7% 38.8% 33.5% 48.07%
Average unit prices in
imports (PLN/tonne)1,088 1,203.4 1,003.6 1,271 1,106.6
Domestic production
(tonnes)2,511,834 2,190,314 2,029,293 2,499,617 2,031,471
Capacity utilization (%) 82.1% 71.9% 66.9% 83.1% 67.1%
Domestic sales
(tonnes)984,939 887,197 753,103 1,098,281 890,367
Share of domestic sales in
consumption (%)83.3% 75.3% 62.1% 68.2% 51.9%
Average unit prices in
domestic sales (PLN/tonne)1,188.9 1,353.5 1,181.3 1,304 1,282.4
Productivity (tonnes/1
employee)1064 1001 1080 1532 1283
Employment (1997 =
100%)100% 92.7% 79.6% 69.1% 67.1%
Profits and  losses (%) 13.6% 13.4% - 0.9% 6.7% -  3.6%
Price underselling in 2001  – 24.7 %G/SG/N/7/POL/1
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II. 3 on alloy cold rolled flat products of a width of 600 mm or more
1997 1998 1999 2000 2001
Consumption
(tonnes)732,887 631,942 646,622 674,272 549,513
Imports (tonnes) 102,121 111,411 184,710 168,112 203,514
Share of  imports in
consumption (%)13.9% 17.6% 28.7% 24.9% 37%
Average unit prices in
imports (PLN/tonne)1,332.3 1,424.8 1,243.6 1,584.9 1,302.7
Domestic production
(tonnes)1,046,485 890,942 583,515 952,844 692,840
Capacity utilization (%) 77.5% 66% 61.7% 70.6% 51.3%
Domestic sales
(tonnes)630,766 520,531 461,912 506,160 345,999
Share of domestic sales in
consumption (%)86.1% 82.4% 71.4% 75.1% 63%
Average unit prices in
domestic sales (PLN/tonne)120.1 1,333.7 1,283.3 1,461.8 1,317.2
Productivity (tonnes/1
employee)1,010 858 730 772 589
Employment (1997 =
100%)100% 100.3% 112.8% 119.1% 113.5%
Profits and  losses (%) 2.1% 0.4% - 3% 9.4% - 11.9%
Price underselling in 2001  – 17.8 %G/SG/N/7/POL/1
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II. 4 Non alloy galvanized flat products
1997 1998 1999 2000 2001
Consumption
(tonnes)371,845 406,586 455,553 511,814 472,806
Imports (tonnes) 79,695 132,954 150,101 176,159 236,248
Share of  imports in
consumption (%)21.4% 32.7% 32.9% 34.4% 50.0%
Average unit prices in
imports (PLN/tonne)1,935.9 2,190.2 2,094.1 2,191.1 1,961.9
Domestic production
(tonnes)408,106 377,280 404,537 468,780 313,856
Capacity utilization (%) 72.9% 67.4% 72.3% 75.4% 52.1%
Domestic sales
(tonnes)292,150 273,632 305,452 335,655 236,558
Share of domestic sales in
consumption (%)78.6% 67.3% 67.1% 65.6% 50.0%
Average unit prices in
domestic sales (PLN/tonne)1,695 1,967.7 1,840.1 2,018.4 1,858.7
Productivity (tonnes / 1
employee)307 309 327 385 424
Employment (1997 =
100%)100% 91.9% 93.0% 91.7% 55.7%
Profits and  losses (%) 9.12% 18.91% 9.03% 12.11% - 2.75%
Price underselling in 2001  – 10.7 %G/SG/N/7/POL/1
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II. 5  Non alloy organic coated flat products
1997 1998 1999 2000 2001
Consumption
(tonnes)169,899 199,239 221,442 249,607 262,846
Imports (tonnes) 92,590 134,196 156,560 181,392 213,981
Share of  imports in
consumption (%)54.5% 67.4% 70.7% 72.7% 81.4%
Average unit prices in
imports (PLN/tonne)3,102.9 3,285.7 3,318.6 3,401.4 2,962.2
Domestic production
(tonnes)84,592 73,267 68,667 72,940 53,032
Capacity utilization (%) 99.4% 86.2% 80.8% 85.8% 62.3%
Domestic sales
(tonnes)77,309 65,043 64,882 68,215 48,865
Share of domestic sales in
consumption (%)45.5% 32.6% 29.3% 27.3% 18.6%
Average unit prices in
domestic sales (PLN/tonne)2,851.7 3,407.7 3,181.7 3,401.3 3,154.2
Productivity (tonnes / 1
employee)68 62 81 113 119
Employment (1997 =
100%)100% 94.4% 67.4% 51.5% 35.6%
Profits and  losses (%) 16.1% 21.4% 17.8% 16.8% 9.8%
Price underselling in 2001 – 10.4 %G/SG/N/7/POL/1
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II.  6  Other non alloy hot rolled bars
1997 1998 1999 2000 2001
Consumption
(tonnes)641,487 668,240 874,607 931,825 809,119
Imports (tonnes) 13,752 45,358 89,027 100,357 116,990
Share of  imports in
consumption (%)2.1% 6.8% 10.1% 10.7% 14.4%
Average unit prices in
imports (PLN/tonne)1,330.8 1,021.3 833.5 1,087.5 1,045.7
Domestic production
(tonnes)813,829 738,640 849,795 1,172,135 893,254
Capacity utilization (%) 79.8% 75% 61.7% 84.4% 64.2%
Domestic sales
(tonnes)627,735 622,882 785,580 831,468 692,219
Share of domestic sales in
consumption (%)97.9% 93.2% 89.8% 89.2% 85.5 %
Average unit prices in
domestic sales (PLN/tonne)531.9 439.7 948.5 1,021.9 1,045.7
Productivity (tonnes/ 1
employee)280 337 1,376 557 480
Employment (1997 =
100%)100% 75.4% 77.8% 72.4% 64%
Profits and  losses (%) 9.8% 5.2% 3.8% 2.4% 1.3%
Price underselling in 2001  – 8 %G/SG/N/7/POL/1
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II. 7 Non alloy hot rolled sections
1997 1998 1999 2000 2001
Consumption
(tonnes)234,170 267,371 261,494 297,415 275,932
Imports (tonnes) 13,726 19,838 68,322 79,599 140,438
Share of  imports in
consumption (%)5.9% 7.4% 26.1% 26.7% 50.8%
Average unit prices in
imports (PLN/tonne)1,280 1,329.2 1,254.3 1,298.4 1,113.1
Domestic production
(tonnes)777,419 844,655 609,258 717,771 788,141
Capacity utilization (%) 101% 93.9% 86.8% 88.5% 88.2%
Domestic sales
(tonnes)220,444 247,533 193,172 217,816 135,494
Share of domestic sales in
consumption (%)94.1% 92.6% 73.8% 73.2% 49.1%
Average unit prices in
domestic sales (PLN/tonne)1,056.3 1,215.8 1,193.7 1,255.4 1,246.2
Productivity (tonnes /
employee)1,076 1,009 1,455 1,580 1,661
Employment (1997 =
100%)100% 115.8% 58% 62.8% 65.7%
Profits and  losses (%) 25.7% 31% 23.6% 18.8% 16.3%
Price underselling in 2001r.  –  5.5%G/SG/N/7/POL/1
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II. 8 Electrical sheets
1997 1998 1999 2000 2001
Consumption
(tonnes)39,812 44,965 38,583 44,589 53,831
Imports (tonnes) 16,824 18,542 13,856 19,095 29,652
Share of  imports in
consumption (%)42.3% 41.2% 35.9% 42.8% 55.1%
Average unit prices in
imports (PLN/tonne)2,109.9 2,199.2 2,464.9 2,946.9 2,878.3
Domestic production
(tonnes)45,109 46,925 40,289 58,459 61,985
Capacity utilization (%) 90% 94% 58% 84% 89%
Domestic sales
(tonnes)22,988 26,423 24,727 25,494 24,179
Share of domestic sales in
consumption (%)57.7% 58.8% 64.1% 57.2% 44.9%
Average unit prices in
domestic sales (PLN/tonne)2,758.3 2,760.9 2,821 2,811.6 2,956.3
Productivity (tonnes / 1
employee)78 88 84 122 129
Employment (1997 =
100%)100% 92% 83% 82.4% 82.7%
Profits and  losses (%) 0.7% 0.5% 0.2% 1.5% 0.1%
Price underselling in 2001  – 15.3 %G/SG/N/7/POL/1
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II. 9 Seamless tubes
1997 1998 1999 2000 2001
Consumption
(tonnes)220,055 209,124 187,561 190,709 181,956
Imports (tonnes) 33,823 49,146 44,232 47,594 53,942
Share of  imports in
consumption (%)15.4% 23.5% 23.6% 25% 29.6%
Average unit prices in
imports (PLN/tonne)2,905.6 2,880.3 2,808.3 2,698.8 2,344
Domestic production
(tonnes)235,893 208,204 189,681 190,760 184,705
Capacity utilization (%) 74.1% 64.9% 58.6% 58.6% 55.3%
Domestic sales
(tonnes)186,232 159,978 143,329 143,115 128,014
Share of domestic sales in
consumption (%)84.6% 76.5% 76.4% 75% 70.4%
Average unit prices in
domestic sales (PLN/tonne)2,080.6 2,241.3 2,163.6 2,229.1 2,419.5
Productivity tonnes / 1
employee)43 38 48 63 79
Employment (1997 =
100%)100% 98.5% 70.7% 55% 42%
Profits and  losses (%) 5.5% 1.8% - 4.2% - 8.1% -4.4%
Price underselling in 2001  – 16.7 %G/SG/N/7/POL/1
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II. 10 Welded tubes of diameter 406,4 mm and less
1997 1998 1999 2000 2001
Consumption
(tonnes)220,055 209,975 202,987 215,999 209,159
Imports (tonnes) 31,358 41,631 51,191 38,197 50,526
Share of  imports in
consumption (%)14.3% 19.8% 25.2% 17.7% 24.2%
Average unit prices in
imports (PLN/tonne)2,471.6 2,435.5 1,910.4 2,267 1,888.9
Domestic production
(tonnes)260,103 206,555 223,642 267,953 240,337
Capacity utilization (%) 74.5% 70.4% 57.1% 68.1% 58.9%
Domestic sales
(tonnes)188,697 168,344 151,796 177,802 158,633
Share of domestic sales in
consumption (%)85.7% 80.2% 74.8% 82.3% 75.8%
Average unit prices in
domestic sales (PLN/tonne)1,415.1 1,563.2 1,488.1 1,636.6 1,581.3
Productivity (tonnes/1
employee)228 377 305 358 358
Employment (1997 =
100%)100% 48.1% 64.4% 65.6% 58.9%
Profits and  losses (%) - 20.7% 12.8% - 14.3% - 30.4% - 20.1%
Price underselling in 2001  – 10 %G/SG/N/7/POL/1
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Notification pursuant to Article 9, Footnote 2, of the Agreement on Safeguards
1. Specify the measure
The provisional safeguard measure concerned is described in Polish notification under
Article 12.4 of the Safeguard Agreement.
2. Specify the product subject to the measure
The measure applies to certain steel product indicated in Annex I to Polish notification under
Article 12.4 of the Safeguard Agreement.
3. Specify the developing countries to which the measure is not applied under Article 9.1 of
the Agreement on Safeguards and the import shares of these countries individually and
collectively
The developing countries concerned are the following:
Angola
Bangladesh
BelizeBenin
Bolivia
Botswana
Burkina Faso
BurundiChina
Chad
Democratic Republic of
  Congo
Dominica
Dominican Republic
DjiboutiEgypt
Ecuador
Fiji
Philippines
GambiaGhana
Grenada
Georgia
Guyana
GuatemalaGuineaGuinea-Bissau
Haiti
HondurasIndia
Indonesia
Jamaica
Jordan
CameroonKenya
Kyrgyz Republic
Columbia
Congo
Costa Rica
Cuba
LesothoMadagascar
Malawi
Maladies
Mali
MoroccoMauritania
Mauritius
Mongolia
Mozambique
MyanmarNamibiaNiger
Nigeria
NicaraguaPakistan
Panama
Papua-New Guinea
Paraguay
PeruCentral African Republic
Rwanda
Salvador
Senegal
Sierra Leone
Sri Lanka
St. Vincent and GrenadinesSwaziland
Surinam
Thailand
Tanzania
TogoTunisia
Uganda
Ivory Coast
Salomon Islands
ZambiaZimbabwe
__________