WORLD TRADE
ORGANIZATIONG/SG/N/8/POL/2
28 July 2003
(03-4008)
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 17 July 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
During 1998-2000 the volume of imports decreased in absolute terms;  however, within the
first three quarters of 2001, there was an upward trend of imports which amounted to 57.2 per cent
compared to the same period of 2000.
The share of imports in the domestic production during the investigation period rose by:- 5.72 percentage points in 1999 compared with 1998,
- 0.68 percentage points in 2000 compared with 1999,
- 17.47 percentage points in the first three quarters of 2001 compared with the same
period of 2000.
The share of imports in the domestic market during the investigation period rose by:- 3.72 percentage points in 1999 compared with 1998,
- 0.4 percentage points in 2000 compared with 1999,- 12.3 percentage points in the first three quarters of 2001 compared with the same
period of 2000.
The average prices of the domestic product during the investigation period increased.
The results of the analysis indicate that, since 2000 the prices of imported calcium carbide has
been lower than prices of the domestic like product.  Price undercutting margin in the first three
quarters of 2001 amounted to 3.4 per cent.
Imports of calcium carbide at lower prices resulted in price fall of the domestic product.  Price
underselling margin in the first three quarters of 2001 amounted to 9.8 per cent and 14.4 per cent in
the same period of 2002.G/SG/N/8/POL/2
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(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 hasdetermined:
- fall in the volume of domestic production (previous year = 100),
• in 1998:  100,
• in 1999:  62.76,
• in 2000:  92.37,
• in the first three quarters 2000:  100,
• in the first three quarters 2001:  78.2 compared with the same period of 2000,
- fall in the domestic sales (previous year = 100),
• in 1998:  100,
• in 1999:  82.33,
• in 2000:  90.72,
• in the first three quarters of 2000:  100,
• in the first three quarters 2001:  82.04 compared with the same period of 2000,
- fall of the productivity (previous year = 100),
• in 1998:  100,
• in 1999:  88.93,
• in 2000:  102.05,
• in the first three quarters 2000:  100,
• in the first three quarters 2001:  88.7 compared with the same period of 2000,
- fall of the share of the domestic industry in the market (previous year = 100),
• in 1998:  100,
• in 1999:  95,
• in 2000:  99,
• in the first three quarters 2000:  100,
• in the first three quarters 2001:  85 compared with the same period of 2000,
- decrease of employment in the production of calcium carbide by 25.2 per cent in the
period 1998-2000 and by 11.7 per cent in the first three quarters of 2001 in relation to
the same period of 2000,
- significant decline in profits; in 2001 domestic industry was suffering losses.
As a result of this analysis the Ministry of Economy, Labour and Social Policy stated that the
domestic industry suffered an injury which is indicated by such economic indicators as: fall in the
level of sales, production, productivity, decrease in the share in the domestic market, fall in
employment and financial losses.G/SG/N/8/POL/2
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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 theMinistry of Economy, Labour and Social Policy found that sharp increase in imports of calcium
carbide took place in 2001.  The effective prices of imports, in the investigation period were lower
than the domestic ones and thus have caused serious injury to the domestic industry.
To ensure that serious injury is not attributable to other factors than increase in imports, the
investigating authority evaluated all relevant factors (including fall in exports) influencing the
situation of that industry.  In the course of the investigation Ministry of Economy, Labour and SocialPolicy 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
Calcium carbide is classified under tariff item 2849 10 00 0 of the Polish Harmonized Tariff.
Calcium carbide is obtained from burnt lime and coke electrothermally.  That product is chiefly used
for the production of acetylene, which basic application is welding.
Having regard data concerning the product submitted by the parties, particularly its chemical
composition, its application and price, it is ascertained that calcium carbide made by domestic
producer is like product to calcium carbide - subject to safeguard investigation.
3. Description of the measure
On the basis of the conclusions concerning injury and causal link Ministry 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 impor ts exceeding certain quantities.  The level of
additional duty will be calculated on the basis of price underselling margin in recent period and will
amount to 15 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 years 1998-2000 (9,000 tons).
4. Date of introduction of the measure
The measure shall be introduced on 16 July 2003.  The decision on final findings was
published in the official journal “Monitor Polski” No 29, item 406 of 5 June 2003.
5. Duration of the measure
The safeguard measure will be applied up to 30
 April 2004.
Period The quantity of imports free
from additional dutyAdditional duty
16.07.2003 - 30.04.2004 7,188 tons 15%
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