G/SG/N/6/ZAF/8  
 
25 May 2020 
(20-3760) Page: 1/3 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT ON SAFEG UARDS ON 
INITIATION OF AN INV ESTIGATION AND THE R EASONS FOR IT  
SOUTH AFRICA 
Imports of bolts with hexagon heads of iron or steel  
The following communication, dated  21 May 2020 , is being circulated at the request of the delegation 
of South Africa . 
 
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Pursuant to Article 12.1(a) of the Agreement on Safeguards, South Africa hereby gives notification 
of the initiation of a safeguard investigation on the imp orts of bolts with hexagon heads of iron or 
steel.  
1  THE DATE WHEN THE IN VESTIGATION WAS INIT IATED  
The notice of initiation by the investigating authority was published through notice No. 272 of 2020 
in Government Gazette No 43316 on 15 May 2020.  
2  THE PRODUCT  SUBJECT TO THE INVE STIGATION  
The subject product is described as bolts with hexagon heads of iron or steel, under tariff 
sub-heading  7318.15.43 . 
3  THE REASONS FOR THE INITIATION OF INVEST IGATION  
i. The application was lodged by South African Iron and Steel Ins titute (SAISI) on behalf 
of the South African Fasteners Manufacturers ' Association (SAFMA) and its members 
producing the subject products.  
The claim is that the subject product is being imported into the SACU market in such 
increasing quantities in absolute terms and relative to SACU production and under such 
conditions, to be causing serious injury to the SACU industry.  
ii. Prima facie  informati on on which the investigation was initiated:  
The Commission found that the applicant submitted prima facie  information to indicate 
that volumes of bolts with hexagon heads of iron or steel increased both in absolute 
terms and relative to domestic productio n in the 2017/18 (1 July 2016 to 
30 June 2019) period.  
4  SERIOUS INJURY AND C AUSAL LINK  
The period of investigation for data evaluation for the purposes of determining the allegation of 
serious injury is 1 July 2016 to 30 June 2019.  G/SG/N/6/ZAF/8  
 
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  The injury analysis relat es to information submitted by CBC Fasteners (Pty) Ltd, SA Bolt 
Manufacturers (Pty) Ltd and Transvaal Pressed Nuts, Bolts & Rivets (Pty) Ltd representing more than 
80% of the SACU industry by production volumes.  
The Applicant alleged and submitted prima fa cie information indicating that it is experiencing serious 
injury in the form of a decline in sales volumes, output, market share, utilisation of capacity, net 
profit and productivity for the period 1 July 2016 to 30 June 2019.  
On this basis the Commission  found that prima facie  information was submitted to indicate that the 
SACU industry was suffering serious injury which could be causally linked to the surge in the volumes 
of imports of the subject products.  
5  UNFORESEEN DEVELOPME NTS 
The Commission consider ed the following information:  
The Applicant submitted that a confluence of events forms the basis of the unforeseen development 
that supports this application. This confluence of events is led notably by China which is the biggest 
producer of global fasten ers, accounting for more than 50% of global fasteners capacity and output.  
The Applicant stated that during the Uruguay Round of negotiations, South Africa did not foresee 
the following events:  
• The unprecedented steep rate of increase in fasteners produc tion capacity (including 
the subject products) over the ensuing two decades (increased 8 folds since 1994) to support 
growing construction and manufacturing activity, as well as to help build infrastructure, 
particularly in emerging economies;  
• The contra ction of the world economy and in particular the Chinese economy resulted 
in the contraction of demand for fasteners, that contribute to the imbalance between capacity 
and demand;  
• Record export volumes by countries with excess capacity, especially Chines e producers 
fuelled by excess capacity and output; and  
• This excess output, capacity and export volumes led by China, displaced production in 
other regions, thus harming producers in other markets. This has already led to several trade 
actions by major fasteners markets, including the SACU market. The fact that  their markets 
are now protected, contracts the global demand for fasteners even further, exasperating the 
problem of increased imports into the SACU . 
6  FURTHER INFORMATION  
Interested parties must make themselves known within a period of 20 days after the in itiation 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 t his investigation to the Directorate  Trade Remedies II at the 
following address:   
The DTI Campus  
77 Meintjies Street  
Sunnyside , Block E, Ground Floor  
Pretoria  0002 
tel: +27 12 394 3600  
fax +27 12 394 0518  
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 G/SG/N/6/ZAF/8  
 
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  as detailed as possible. In instances that a public su mmary 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 
information relating to this investigatio n. 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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