WORLD TRADE
ORGANIZATIONG/SG/N/8/PHL/5/Suppl.1
G/SG/N/10/PHL/3
G/SG/N/11/PHL/5/Suppl.1
26 May 2004
(04-2262)
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 PURSUANT TO ARTICLE 9, FOOTNOTE 2,
OF THE AGREEMENT ON SAFEGUARDS
PHILIPPINES
(Float Glass)
The following notification, dated 24 May 2004, is being circulated at the request of the
Delegation of the Philippines.
_______________
Further to the Philippine notification G/SG/N/7/PHL/5, G/SG/N/8/PHL/5, and
G/SG/N/11/PHL/5 circulated on 30 September 2003, and pursuant to Article 12.1 (b) and 12.1(c) and
Article 9, footnote 2, of the Agreement on Safeguards, the Philippines notifies the Committee on
Safeguards that an affirmative finding has been made and that increased imports of tinted float glass
and clear float glass have caused serious injury to the domestic industry, and a definitive safeguard
duty in the following amounts, in Philippine Pesos per metric ton, have been imposed on these
products as follows:
Tinted Float Glass
5,850 (Year 1)
5,560 (Year 2)
5,280 (Year 3)
Clear Float Glass
4,630 (Year 1)
4,400 (Year 2)
4,180 (Year 3)
A copy of the Order implementing the measure is enclosed.G/SG/N/8/PHL/5/Suppl.1
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IN THE MATTER OF THE APPLICATION FOR
GENERAL SAFEGUARD MEASURES AGAINST
THE IMPORTATION OF FLOAT GLASS
FROM VARIOUS COUNTRIES
(Safeguard Investigation No. 02-2003)
ASAHI GLASS PHILIPPINES, INC. (AGP)
Protestant
x - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - x
ORDER
On 30 March 2004, the Department of Trade and Industry received the Tariff Commission’s
Formal Investigation Report on the application for general safeguard measure against the importation
of float glass (H.S. Code 7005.2990 now AHTN Nos. 7005.2920 and 7005.2990 and H.S. Code
7005.2190 now AHTN Nos. 7005.2120 and 7005.2190) from various countries.
The Commission concluded that, in accordance with RA 8800 and the WTO Agreement:
1. As the sole manufacturer of clear and tinted float glass in the Philippines, petitioner AGP
accounted for the entire domestic production of subject articles during the period of
investigation (POI).
2. Locally produced clear and tinted float glass are like products to imported clear and tinted
float glass.
3. Clear and tinted float glass were imported into the Philippines in increased quantities, both in
absolute terms and relative to domestic production, during the final year of the POI
4. The domestic float glass industry suffered significant overall impairment in its condition in
terms of loss of market share, inability to increase domestic sales proportionate to the growth
in domestic demand, and substantial losses in operations during the ending year of the POI.
5. While there are other factors which contributed to the overall impairment of the condition of
the domestic industry, imports in increased quantities were the dominant cause of aforesaid
serious injury to the domestic float glass industry.
The existence of a causal link between the increased imports of float glass and serious injury to the
domestic industry having been established, the Commission recommended the imposition of
definitive general safeguard measures in the form of tariff-rate quota and specific duty to be imposed
on imports of float glass. The measure shall be effective for three (3) years starting 13 October 2003,
i.e. the date the provisional measure took effect.
The current enquiry was conducted in accordance with the requirements of the Safeguard
Measures Act and the procedures prescribed by the WTO Agreement on Safeguards and Article XIX
of GATT 1994, i.e. determination of existence of unforeseen developments and effect of obligations,
including tariff concessions which led to the increased imports and resulting injury to the local
industry. Although, these circumstances need not be demonstrated for the reason that float glass is
not the subject of any Philippine obligation or tariff concession under the WTO Agreement, currentG/SG/N/8/PHL/5/Suppl.1
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inquiry was governed by the national legislation (RA8800) and the terms and conditions of the
Agreement on Safeguard Measures.
AGP was affected by the slow down in demand for glass products due to the excess capacity
within the Asian region. Such excess regional supply found its way into smaller markets like the
Philippines. The increased cheap imports in significant quantities from Asian sources consequently
eroded the local industry’s market share. Moreover, the MFN tariff rate of the Philippines is found to
be lower and has declined at a faster rate than its neighbours which made the Philippine market more
attractive to imports. The increased imports is recent, sharp and significant. These circumstances
comprised the unforeseen development under Article XIX of GATT 1994.
Section 5 of RA 8800 states that :
“The Secretary shall apply a general safeguard measure upon a positive final
determination of the Commission that a product is being imported into the
country in increased quantities, whether absolute or relative to the domestic
production, as to be a substantial cause of serious injury or threat thereof to
the domestic industry; however, in the case of non-agricultural products, the
Secretary shall first establish that the application of such safeguard measures
will be in the public interest.”
Accordingly, the DTI has reviewed the Commission’s findings and recommendations and has
established that the application of general safeguard measures shall be in the public interest.
IN VIEW THEREOF , and in accordance with Section 13 of RA 8800, the DTI hereby
orders the imposition of a definitive general safeguard duty for clear float glass and for tinted float
glass. Section 15(3) of RA 8800 provides further that “an action described in Section 13 (a), (b) or
(c) that has an effective period of more than one (1) year shall be phased down at regular
intervals within the period in which the action is in effect” . Moreover, considering that the TC
findings indicated from the major source countries, the amount of the definitive general safeguard
duty were computed to a level that will ensure adequate protection to the domestic industry while it is
undertaking the necessary adjustment measures to achieve efficiency. Thus, the amount of the
definitive general safeguard duty shall be as follows:
AMOUNT OF DUTY (P/MT)
PRODUCT 1STYEAR 2NDYEAR 3RDYEAR
Clear Float Glass 4,630 4,400 4,180
Tinted Float Glass 5,850 5,560 5,280
The first year of implementation of the definitive general safeguard measure shall include the
period in which the provisional safeguard duty took effect i.e. 13 October 2003, the date of the
issuance of Customs Memorandum Order No. 24-2003. The measure shall be effective from the date
of the issuance by the Bureau of Customs of the relevant Customs Memorandum Order (CMO) or
15 days after the publication of this Order in two (2) newspapers of general circulation, whichever
comes earlier.
Pursuant to Section 13 of RA8800 and Rule 13.1.d of its Implementing Rules and
Regulations, “a general safeguard measure shall not be applied to a product originating from aFloat -2G/SG/N/8/PHL/5/Suppl.1
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developing country if its share to total Philippine imports of the said product is less than three
percent (3%): Provided, however, that developing countries with less than three percent (3%)
share collectively account for not more than nine percent (9%) of the total Philippine imports of
the product concerned”. The countries listed in Annexes A and B are thus, excluded from the
imposition of the definitive general safeguard duty on float glass. DTI drew up this list based on the
import statistics for 2003. Imports in 2003 from the following developing countries which are regular
sources of Philippine imports of float glass were found to be de minimis or below the 3% threshold:
For clear float glass – Malaysia, India, Hongkong and Taiwan; For tinted float glass – Thailand,
Taiwan, Hongkong and Korea. In the event that imports originating from said countries individually
reach the 3% threshold or collectively account for more than 9% of the total Philippine imports, the
definitive general safeguard measure shall be applied on such imports. DTI shall conduct an annual
review of the Philippine imports of float glass and draw up the appropriate exemption lists for 2005
and 2006.
As provided further under Section 13 of RA 8800 and its IRR, all cash bonds that may have
been imposed on shipments originating from countries listed in Annexes A and B which entered in or
are withdrawn from warehouses in the Philippines for consumption starting 13 October 2003, the date
of the effectivity of CMO 24-2003, shall be immediately returned to the concerned importer. Rule
13.3.c of the IRR of RA 8800 also provides that: “In case a cash bond has been filed, the same
shall be applied to the safeguard duty assessed. In case a negative finding or if the cash bond is
in excess of the definitive safeguard duty assessed, the remainder shall be immediately returned
to the importer within ten (10) calendar days from the date a final decision has been made:
Provided, that no interest shall be payable by the government on the amount to be returned”
All importers of float glass, regardless of port of exportation, are required to secure a
Certificate of Country of Origin (CO) issued by the authorized agency/ office in the source country of
manufacture as authenticated by the Philippine Embassy/ Consulate thereat.
The notification and consultation requirements of Article 12 of the WTO Safeguards
Agreement and Section 17 of RA 8800 and its IRR shall be complied with.
Imports originating from ASEAN Member states shall be governed by the provisions of
Articles 6 and 8 of the Agreement on the CEPT Scheme.
The application of the definitive general safeguard measure shall be monitored and reviewed
in accordance with Rules 15 and 16 of RA 8800. Applicant AGP is also directed to comply with its
adjustment plan of 3 October 2003.
Let this Order be published in two (2) newspapers of general circulation and let individual
notices be sent to all interested parties including the country members concerned.
SO ORDERED
CESAR V. PURISIMA
Secretary
14 April 2004
GLASS CASE/ FLOAT REVISEG/SG/N/8/PHL/5/Suppl.1
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ANNEX A
List of Developing Countries Excluded from the Imposition of
Provisional Safeguard Measure on Clear Float Glass
East & Southern
AfricaWest Africa North Africa South Asia
Angola
Botswana
Burundi
Comoros
Congo. Dem. Rep.
Djibouti
Eritrea
Ethiopia
Kenya
Lesotho
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Reunion
Rwanda
Seychelles
Somalia
South Africa
Sudan
Swaziland
Tanzania
Uganda
Zambia
ZimbabweBenin
Burkina Faso
Cameroon
Cape Verde
Central African Rep.
Chad
Congo, Rep.
Cote d'Ivoire
Equatorial Guinea
Gabon
Gambia, The
Ghana
Guinea
Guinea, Bissau
Liberia
Mali
Mauritania
Niger
Nigeria
Sao Tome & Principe
Senegal
Sierra Leone
TogoAlgeria
Egypt, Arab Rep.
Libya
Morocco
TunisiaAfghanistan
Bangladesh
Bhutan
British Indian Ocean Territory
East Timor
India
Maldives
Nepal
Pakistan
Sri Lanka
A1-CLEARG/SG/N/8/PHL/5/Suppl.1
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Europe & Central Asia Middle East Americas East Asia & Pacific
Albania
Armenia
Azerbaijan
Belarus
Bosnia & Herzegovina
Bulgaria
Croatia
Cyprus
Czech Republic
Estonia
Georgia
Greenland
Hungary
Kazakhstan
Kyrgyz Republic
Latvia
Lithuania
Macedonia, FYR
Malta
Moldova
Poland
Romania
Russian Federation
Slovakia
Slovenia
Tajikistan
Turkey
Turkmenistan
Ukraine
Uzbekistan
Yugoslavia, Fed. Rep.Bahrain
Iran, Islamic Rep.
Iraq
Israel
Jordan
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
Syrian Arab Rep.
United Arab Emirates
West Bank & Gaza
Yemen, Rep.Anguilla
Antigua & Barbuda
Argentina
Aruba
Bahamas
Barbados
Belize
Bermuda
Bolivia
Brazil
British Virgin Is.
Cayman Is.
Chile
Colombia
Costa Rica
Cuba
Dominica
Dominican Rep.
Ecuador
El Salvador
Falkland Is. (Malvinas)
French Guiana
Grenada
Guadaloupe
Guatemala
Guyana
Haiti
Honduras
Jamaica
Martinique
Mexico
Montserrat
Netherland Antilles
Nicaragua
Norfolk Is.
Panama
Paraguay
Peru
Puerto Rico
St. Helena
St. Kitts & Navis
St. Lucia
St. Pierre & Miquelon
St. Vincent & the
Grenadines
Suriname
Trinidad & Tobago
Turks & Caicos Is.
Uruguay
US Virgin Is..
VenezuelaAmerican Samoa
Brunei Darussalam
Cambodia
Christmas Is.
Cocos (Keeling) Is.
Cook Is.
Fiji
French Polynesia
Guam
Hongkong
Johnston Is.
Kiribati
Korea, Dem. Rep.
Lao PDR
Macau
Malaysia
Marshall Islands
Micronesia, Fed. Sts.
Midway Is.
Mongolia
Myanmar
Nauru
New Caledonia
Niue
Northern Marianas Is.
Palau
Pitcairn Is.
Papua New Guinea
Samoa
Solomon Islands
Taiwan
Tokelau
Tonga
Tuvalu
Vanuatu
Wake Is.
Wallis & Futuna Is.
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ANNEX B
List of Developing Countries Excluded from the Imposition of
Provisional Safeguard Measure on Tinted Float Glass
East & Southern
AfricaWest Africa North Africa South Asia
Angola
Botswana
Burundi
Comoros
Congo. Dem. Rep.
Djibouti
Eritrea
Ethiopia
Kenya
Lesotho
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Reunion
Rwanda
Seychelles
Somalia
South Africa
Sudan
Swaziland
Tanzania
Uganda
Zambia
ZimbabweBenin
Burkina Faso
Cameroon
Cape Verde
Central African Rep.
Chad
Congo, Rep.
Cote d'Ivoire
Equatorial Guinea
Gabon
Gambia, The
Ghana
Guinea
Guinea, Bissau
Liberia
Mali
Mauritania
Niger
Nigeria
Sao Tome & Principe
Senegal
Sierra Leone
TogoAlgeria
Egypt, Arab Rep.
Libya
Morocco
TunisiaAfghanistan
Bangladesh
Bhutan
British Indian Ocean Territory
East Timor
Maldives
Nepal
Pakistan
Sri Lanka
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Europe & Central Asia Middle East Americas East Asia & Pacific
Albania
Armenia
Azerbaijan
Belarus
Bosnia & Herzegovina
Bulgaria
Croatia
Cyprus
Czech Republic
Estonia
Georgia
Greenland
Hungary
Kazakhstan
Kyrgyz Republic
Latvia
Lithuania
Macedonia, FYR
Malta
Moldova
Poland
Romania
Russian Federation
Slovakia
Slovenia
Tajikistan
Turkey
Turkmenistan
Ukraine
Uzbekistan
Yugoslavia, Fed. Rep.Bahrain
Iran, Islamic Rep.
Iraq
Israel
Jordan
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
Syrian Arab Rep.
United Arab Emirates
West Bank & Gaza
Yemen, Rep.Anguilla
Antigua & Barbuda
Argentina
Aruba
Bahamas
Barbados
Belize
Bermuda
Bolivia
Brazil
British Virgin Is.
Cayman Is.
Chile
Colombia
Costa Rica
Cuba
Dominica
Dominican Rep.
Ecuador
El Salvador
Falkland Is. (Malvinas)
French Guiana
Grenada
Guadalupe
Guatemala
Guyana
Haiti
Honduras
Jamaica
Martinique
Mexico
Montserrat
Netherland Antilles
Nicaragua
Norfolk Is.
Panama
Paraguay
Peru
Puerto Rico
St. Helena
St. Kitts & Navis
St. Lucia
St. Pierre & Miquelon
St. Vincent & the
Grenadines
Suriname
Trinidad & Tobago
Turks & Caicos Is.
Uruguay
US Virgin Is..
VenezuelaAmerican Samoa
Brunei Darussalam
Cambodia
Christmas Is.
Cocos (Keeling) Is.
Cook Is.
Fiji
French Polynesia
Guam
Hongkong
Johnston Is.
Kiribati
Korea, Dem. Rep.
Korea, Rep. of
Lao PDR
Macau
Malaysia
Marshall Islands
Micronesia, Fed. Sts.
Midway Is.
Mongolia
Myanmar
Nauru
New Caledonia
Niue
Northern Marianas Is.
Palau
Pitcairn Is.
Papua New Guinea
Samoa
Solomon Islands
Taiwan
Thailand
Tokelau
Tonga
Tuvalu
Vanuatu
Vietnam
Wake Is.
Wallis & Futuna Is.
B2-TINTED
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