G/SG/N/6/ZAF/4/Suppl.1  
 
3 August 2020 
(20-5387) Page: 1/2 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS  
ON INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT  
SOUTH AFRICA 
Certain flat -rolled products of iron, non -alloy steel or  
other alloy steel (not including stainless steel)  
Supplement  
The following communication, dated 31 July 2020 , is being circulated at the request of the delegatio n 
of South Africa . 
 
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Pursuant to Article 12.1(a) of the Agreement on Safeguards, South Africa hereby gives noti fication 
of the initiation of a n investigation into the extension of safeguard measures on the imports of certain 
flat-rolled products of iron, non -alloy steel or other alloy steel (not including stainless steel), whether 
or not in coils (including product s cut-to-length and 'narrow strip '), not further worked than hot -
rolled (hot -rolled flat), not clad, plated or coated, excluding grain -oriented silicon electrical steel.  
1. The date when the investigation was initiated  
The investigation was initiated on 24  July 2020 . The notice of initiation by the investigating authority 
was published through notice 392 in Gov ernment Gazette No. 43542 on 24  July 2020 .1 
2. The product subject to the investigation  
The subject product is described as certain flat -rolled products of iron, non -alloy steel or other alloy 
steel (not including stainless steel), whether or not in coils (including products cut -to-length and 
'narrow strip '), not further worked than hot -rolled (hot -rolled flat), not  clad, plated or coated, 
excluding grain -oriented silicon electrical steel, imported under tariff subheading 7208.10, 7208.25, 
7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.40, 7208.51, 7208.52, 7208.53, 
7208.54, 7208.9 0, 7211.14, 7211.19, 7225.30, 7225.40, 7225.99, 7226.91 and 7226.99.  
3. The reasons for the initiation of investigation  
i. The application was lodged by South African Iron & Steel Institute (SAISI) an industry 
body, on behalf of ArcelorMittal South Africa Lim ited (AMSA) the only producer of the 
subject products in the Southern African Customs Union (SACU) . 
The claim is that the SACU industry is suffering serious injury and the expiry of the 
safeguard measures will likely lead to a recurrence of serious injury  to the SACU 
industry . 
 
1 An electronic version of the document has also been submitted by South Africa . To consult this 
document please contact Ms Richards ( Anne.Richards@wto.org ) or Ms Naville ( Delphine.naville@wto.org ) of 
the Rules Division.  G/SG/N/6/ZAF/4/Suppl.1  
 
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  ii. Prima facie  information on which the investigation was initiated:  
The Commission found that the applicant submitted prima facie  information to indicate 
that the expiry of the safeguard measures on the imports of certain flat -rolled pr oducts 
of iron, non -alloy steel or other alloy steel (not including stainless steel), whether or not 
in coils (including products cut -to-length and 'narrow strip '), not further worked than 
hot-rolled (hot -rolled flat), not clad, plated or coated, excluding  grain-oriented silicon 
electrical steel will likely lead to a recurrence of serious to the SACU industry . 
4. Serious Injury and Causal Link  
The period of investigation for data evaluation for the purposes of determining the allegation of 
serious injury is  1 September 2017 to 31 May 2020. Plus an estimate from June 2020 – August  2021.  
The injury analysis relates to information submitted by AMSA, a member of SAISI the only producer 
of the subject product in the SACU with a major proportion of the total domes tic production of those 
products.  
The Applicant alleged and submitted prima facie information indicating that it is experiencing serious 
injury in the form of a decline in sales volumes, profits, output, productivity, market share, utilisation 
of capacity and employment for the period 1 September 2017 to 31 May 2020. The applicant further 
alleged and submitted prima facie information based on estimates that should the duties expire, 
serious injury will recur in the form a decline in sales volumes, profits, output, productivity, market 
share, utilisation of capacity and employment for the period estimate from June 2020 – August 2021.  
On this basis the Commission found that prima facie information was submitted to indicate that the 
SACU industry was suffering serious injury and that expiry of the safeguard measures will likely lead 
to a recurrence of serious injury  to the SACU industry . 
5. Further information  
Interested parties must make  themselves known within a period of 20 days after the initiation of the 
investigation.  
Any information which the interested parties may wish to submit in writing and any request for a 
hearing before the Commission that they may wish to put forward should be submitted within 
20 days following the initiation of this investigation to the Directorate: Trade Remedies II at the 
following address:  
The DTI Campus  
77 Meintjies Street  
Block Uuzaji, Ground Floor  
Sunnyside Pretoria  0002, South Africa  
tel: +27 12 394 3 600 
email: emkwanazi@itac.org.za  
If part of the information provided is of a confidential nature, the party concerned should give the 
grounds justifying confidentiality and furnish public summaries of such information, which should be 
as detailed as possib le. In instances that a public summary cannot be provided a sworn statement 
must be provided stating the reasons why the information cannot be summarized. This requirement 
is designed to secure transparency and due access by all the parties to the informat ion relating to 
this investigation. If the summaries are not duly provided and in the absence of just cause, ITAC 
may disregard the information deemed to be confidential.  
 
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