G/SG/N/6/ECU/10  
6 December  2019 
(19-8429) Page: 1/3 
Committee on Safeguards  Original:  Spanish  
 
  
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS  
ON THE INITIATION OF AN INVESTIGATION PROCESS  
AND THE REASONS FOR IT  
ECUADOR  
(Smooth ceramics)  
The following communication, dated 6 December 2 019, is being circulated at the request of the 
delegation of Ecuador.  
 
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1. Date when the investigation was initiated  
 
The safeguards investigation concerning imports of smooth ceramics was initiated by the 
Ministry  of Production, Foreign Trade, Investment and Fisheries ( MPCEIP) under Resolution 
No. MPCEIP -2019-0009-R of 2 8 October 2019.1 The Resolution was published in Official Journal 
No. 88 of 2 6 November 2019.  
 
2. Precise description of the product involved  
 
The products involved are smooth ceramics classified under the following subheadings of the 
Ecuadorian customs tariff : 6907.21.00.90 " - - - Other" ; 6907.22.00.90 " - - - Other" ; 
and 6907.23.00.90 " - - - Other".  
 
3. Reasons for the initiation of the investigation  
 
The investigating authority initiated a safeguards investigation after examining  a properly 
documented application filed by the domestic smooth ceramics industry, whose output constitutes 
a major proportion of the total domestic production of the products concerned.  
The appl icant claims that serious injury has been caused by increased imports into Ecuador of the 
product in question . According to the domestic industry, the main factors that have contributed 
substantially to the deterioration of the industry include  the followi ng: 
• Regarding the increase in  imports, an analysis of the annual change in imports in terms of 
USD c.i.f. value shows growth  of 79 % in 2017 in relation to 2016, of 26 % in 2018 in 
relation to 2017, and of 28 % in 2019 (January -April) in relation to the same period in 
2018. An analysis of the trend in imports over the period 2016 -2018 shows growth of 
126%. 
 
                                                
1 The Resolution initiating the investigation may be viewed by clicking on the following link: 
http://defensacomercial.produccion.gob.ec/  (once the page has opened, go to: Mecanismos de Defensa  - 
Medidas de Salvaguardia  - Investigaciones en curso  - Cerámica plana clasificada en las subpartidas 
arancelarias: 6907.21.00.90 " - - - Los demás"; 6907.22.00.90 " - - - Los demás"; 6907.23.00.90 " - - - Los 
demás" del Arancel del Ecuador ). G/SG/N/6/ECU/10  
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  • The performance of domestic production in terms of volume (thousand s of kg) shows signs 
of fluctuation : production  rose by 11% in 2017 in relation to 2016,  fell by  2% in 2018, 
and rose by  3% in the period January -April 2 019 in relation  to the same period the 
previous year . Capacity utilization has also tended to fluctuate.  
 
• Total sales in terms of value (thousands of USD) rose by 2 % in 2017 in relation to 20 16, 
but fell by 9 % in 2018 in relation to 2017, and by 1.3 % in 2019 (January -April) in relation 
to 2018.  
 
• There has been a significant loss in the market share of the domestic product, which fell 
from 76 % in 2016 to 61 % in 2018 and  57% in the period January -April 2 019. 
Accordingly, it has been found, prima facie , that increased imports of the product concerned have 
caused or are threatening to cause serious injury to domestic producers of th at product, and it is 
therefore considered tha t sufficient evidence exists to initiat e a safeguards investigation.  
 
3. Provide a point of contact for the investigation and identify the preferred means for  
corresponding  
 
Dirección de Defensa Comercial - Autoridad Investigadora  
Subsecretaría de Defensa y Normatividad Comercial  
Ministerio de Producción, Comercio Exterior, Inversiones y Pesca  
 
Address : Av. Amazonas entre Unión Nacional de Periodistas y Alfonso Pereira . 
Plataforma Gubernamental de Gestión Financiera . Piso 9 . Quito -Ecuador.  
 
Tel.: (+593) 3935460, Ext. 386, 404, 528 or 305  
 
Website:  http://defensacomercial.produccion.gob.ec  
 
Contact via email would be preferable:  
 
defensacomercial@produccion.gob.ec  
mcifuentes@produccion.gob.ec  
jquishpe@produccion.gob.ec  
smoreno@produccion.gob.ec  
ahernandezv@produccion.gob.ec  
 
4. Provide the deadlines and procedures for importers, exporters and other 
interested parties to present  evidence  
 
All interested parties should note that, pursuant to Article 4 of Resolution No. M PCEIP -2019-0009-R 
of 28 October 2019, published in Official Journal No. 88 of 26 November 2019, the deadlines for the 
investigation are as follows:  
i. Initiation of investigation : the date on which the Resolution is published in the 
Official Journal.  
ii. Registering as interested parties : other parties interested in the investigation must 
register as interested parties, and justify this status, with the investigating authority, 
within 30  days from the date of initiation of the investigation.  
iii. Presentation of information : the investigating authority will receive information 
relating to the investigation up to 60 days from the date of its initiation.  
iv. Adjustment plan : the domestic industry applying for the measure must submit 
confidential and non -confidential versions of an  adjustment plan to the investigating 
authority within 60  days from the date  of initiation of the investigation.  G/SG/N/6/ECU/10  
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  v. Hearings : a hearing will be held for all interested parties within a period of fou r months 
from the initiation of the investigation, in accordance with Article 16 of COMEX 
Resolution No. 43-2012; however, where considered appropriate, the investigating 
authority may hold separate hearings, of which the parties will be previously informed . 
The notice convening the hearing will be published in a timely manner on the 
investigating authority's website: http://defe nsacomercial.produccion.gob.ec . 
vi. Investigation period : the investigating authority has eight months, from the date of  
publication of the initiating Resolution in the Official Journal, to conclude the 
investigation . In exceptional cases, this period may be extended by four  months at the 
discretion of the investigating authority.  
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