WORLD TRADE
ORGANIZATIONG/SG/N/10/JOR/4
21 February 2003
(03-1122)
Committee on Safeguards Original:  English
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
JORDAN
The following communication, dated 19 February 2003, has been received from the
Permanent Mission of the Hashemite Kingdom of Jordan.
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The Permanent Mission of the Hashemite Kingdom of Jordan presents its compliments to the
Committee on Safeguards and has the honour to enclose herewith a notification under Article 12.1(c)
of the Agreement on Safeguards regarding the decision to apply safeguard measures to remedy
domestic industry from serious injury caused by increased imports of sanitary ware products in alltheir forms and specifications, as mentioned in the notification, with the request to have it circulated
to the Members.G/SG/N/10/JOR/4
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NOTIFICATION UNDER ARTICLE 12.1(C)
In accordance with Article 12.1(c) of the Agreement on Safeguards, Jordan hereby submits its
notification on deciding to apply a safeguards measure to remedy domestic industry from serious
injury caused by increased imports of sanitary ware products in all its forms and specifications,imported to the Kingdom under tariff headings 6910.100 and 6910.900.
1. Evidence of serious injury or threat  thereof caused by increased imports
The National Production Protection Directorate (NPPD) has determined that the subject
product has been imported into Jordan in such incr eased quantities during the period of investigation
(1998-2001), as to be a substantial cause of serious injury to the domestic industry.  NPPD has
recommended the appropriate remedy to the Minister of Industry and Trade who decided torecommend to the Council of Ministers the application of.
The following are the conclusions reached by NPPD:
(a) Increased Imports
Years 1998 1999 2000 2001
Volume (in kilograms) 1894263 2355801 3178888 3723831
Rate of increase (%) - 24% 35% 17%
Market share (in %) 35% 42% 52% 62%
Ratio between imports and domestic
production (in %)46% 55% 91% 109%
Ratio between imports and
production sold (in %)53% 73% 107% 161%
Unit prices (in dinar/kilogram) 1.082 1.008 0.896 0.706
The product concerned is being imported in quantities that have increased suddenly, sharply
and significantly in the period of investigation.  The annual increases in imports of 24 per cent, 35 per
cent and 17 per cent in absolute term over the years 1998 to 2001 are sudden, sharp and significant.
This also applies to the increased market share, from 35 per cent in 1998 to 62 per cent in 2001.
(b) Serious Injury
It has been found upon investigation that the domestic industry of the subject product has
suffered serious injury.  The overall data of injury indicators shows an increase in negative
developments for production, sales, capacity uti lization, employment, market share, stocks and
profitability.
Situation of Domestic Producers
Years 1998 1999 2000 2001
Capacity (in kg) 5800000 5800000 5800000 5800000
Utilization rate of capacity (in %) 72% 74% 60% 59%
Total domestic production (in kg) 4148811 4272206 3482724 3424230
Total domestic sales (in kg) 3587850 3205782 2957591 2314124
Closing stock (in kg) 1016878 1476902 1531304 1300634
Unit prices of domestic sales (in %) 0.943 0.771 0.654 0.794
Net profit/loss on domestic sales
(in %)12% 14% 9% 4%
Market share (%) 65% 58% 48% 38%G/SG/N/10/JOR/4
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Years 1998 1999 2000 2001
Employment (end of period) 197 175 166 148
The above table shows that:
• Overall production capacity remained stable over the period under consideration (the
four years 1998 to 2001), suggesting no growth plans by the industry.
• The declining utilization rate of capacity, given fixed capacity, indicates that
domestic production is decreasing.  Indeed, the above schedule shows that the volumeof domestic production has decreased in 2000 and 2001 by 16 per cent and 17 per
cent, while imports increased during the said years.
• Sales of the domestic industry significantly decreased by 36 per cent over the period
mentioned, which had an impact on the volume of production that has decreased by
17 per cent in 2001.
• Inventory increased by 28 per cent over the four years 1998 to 2001.  The increase
was due to the incapability of the domestic industry to market and sell what itproduces.
• Unit prices of domestic sales declined by 15.8 per cent (from JD 0.943/kg to
JD 0.794/kg), reflecting increased competition from imports and excess inventory.
• There is an enormous decrease in the profit margin of local industry, from 12 per cent
in 1998 to 4 per cent in 2001.  An analysis of relevant elements in determining the
occurrence of injury showed that the industry suffers from enormous injury.  TheDirectorate in this respect does not agree with the allegations raised by the importers'
representative that these elements were fulfilled.  In addition, analyzing injury
elements should include local industr y as a whole and not one factory only.
• The domestic industry's market share decreased enormously during the period of
investigation- from 65 per cent in 1998 to 38 per cent in 2001.  This decrease
occurred as a result of the significant decrease in the volume of sales of the localindustry in favour of imports.
• Employment was adversely affected by the rising imports, steadily declining from
197 in 1998 to 148 in 2001 (a decrease of 25 per cent).
(c) Causation
The domestic industry has been incapable of adjusting with the sudden and unexpected
change, which in turn led to a reduction in production and an increase in unsold products.
The competent authority has determined that domestic industry of subject product has been
seriously injured due to the increase of similar imports.
Such causation is demonstrated by the coincide nce in time between the significant, sharp and
recent increase in the imports and the continuous deterioration of injury indicators pointing to a
serious overall impairment of the domestic industry's situation.  It was concluded that no other injury
factors attributed to injury of the domestic industry;  as the increase of imports was the sole reason for
serious injury of the domestic industry.
2. Provide a precise description of the product involved
The product under investigation is sanitary ware products in all of its forms and
specifications, imported to the Kingdom under tariff headings 6910.100 and 6910.900, identified as
follows:G/SG/N/10/JOR/4
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• 6910.100 sink with stands, washbasin pedestals,  flushing cisterns, urinal and similar
sanitary fixtures made out of porcelain.
• 6910.900 sinks with stands, washbasin pedestals,  flushing cisterns, urinal and similar
sanitary fixtures made out of material other than porcelain.
3. Provide a precise description of the proposed measure
The Council of Ministers has decided to apply definitive safeguard measures for a period of
three years, in the form of a specific tariff surcharge of 80 fils per kg to be liberalized by 20 fils each
subsequent year the measure is in effect.
4. Provide the expected duration of the measure
Time schedule of application of the measure is pending approval by the Council of Ministers.
5. For a measure with the duration of more than three years, provide the proposed date for
this review (under Article 7.4) to hold not late r than mid-term of the measure, if such a
date for review has already been scheduled.
Not applicable.
6. If the expected duration is over one year, pr ovide the expected timetable for progressive
liberalization of the measure.
The proposed measure is to be progressively liberalized as follows:
• From 25 February 2003 to 24 February 2004
• From 25 February 2004 to 24 February 2005
• From 25 February 2005 to 24 February 2006
JD/KG:
• 80 Fils
• 60 Fils
• 40 Fils
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