G/SG/N/6/KGZ/9  
 
4 April 2019 
(19-2156) Page: 1/2 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1 (A) OF THE AGREEMENT  
ON SAFEGUARDS  ON INITIATION OF AN INV ESTIGATION  
AND THE REASONS FOR IT 
KYRGYZ REPUBLIC  
(Welded tubes of stainless steel) 
The following communication, dated 3 April 2019, is being circulated at the request of the Delegation 
of the Kyrgyz Republic .* 
 
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1. Specify the date when the investigation was initiated  
 
The investigation was initiated on 4 March 2019.  
 
Public notice of the initiation of a safeguard investigation on imports of welded tubes of stainless 
steel imported into the customs territory of the Eurasian Economic Union was published on 4 March 
2019 on the official website of the Eurasian Economic Uni on 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG12_notice_initiatio
n.pdf) (hereinafter the Notice of initiati on). 
 
ID number of investigation: SG -12. 
 
2. Provide the precise description of the product involved  
 
The product subject to the investigation is welded tubes of stainless steel (welded pipes and tubes 
of stainless steel with an outside diameter from 6 mm to 115 mm and a wall thickness from 0,4 mm 
to 6 mm and welded hollow profiles of stainless steel with an outside diameter  not exceeding 140  mm 
and a wall thickness from 0,4 mm to 6 mm).  
 
Welded tubes of stainless steel  are classified under the following co des within the Common 
Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union : 
7306 40 200 9, 7306 40 800 1, 7306  40 800 8, 7306 61 100 9 and 7306 69 100 9 .  
 
3. Provide the reasons for the initiation of investigation  
 
The invest igation was initiated on the basis of results of consideration of the application filed by 
Eurasian Economic Union (hereinafter Union) producers of welded tubes of stainless steel . 
The information in the application indicates that total imports of welded t ubes of stainless steel  
increased in absolute terms. Total imports in absolute terms increased by 68,3  % in the period 
2015-2017; by 38,1 % in the first 9  months of 2018 compared with the first 9  months  of 2015 and 
by 41,4 % in the period 2015 -2018. The increase in imports appears to be the result of unforeseen 
developments such as the global overcapacity in steel making and trade measures adopted by a 
series of third countries during the last years in the context of that global overcapacity.  
 
                                                
* The content of this notification is the same as the content of notifications submitted by the 
Russian  Federation (G/SG/N/6/RUS/ 7) and by Kazakhstan (G/SG/N/6/KAZ/3) . G/SG/N/6/KGZ/9  
 
- 2 - 
 
  There is al so sufficient evidence in the application showing that imports of welded tubes of stainless 
steel are threatening to cause serious injury to the Union industry. The  volume of imports of welded 
tubes of stainless steel  has already had a negative impact on t he Union industry 's pricing policy . In 
particular, the Union industry had to reduce its sales prices in the Union market in an attempt to 
maintain its market share. After losing its market share in the Union in 2017 compared with 2016 
by 5,9 percentage poi nts (while import market share of welded tubes of stainless steel in the Union 
increased by 5,5 percentage points), in the first 9 months of 2018 the Union industry reduced its 
sales prices  by 1,7%, despite the increase in cost per unit of 2,4%.  
 
In additi on, even though the import prices were throughout the period higher than the Union 
industry 's sales prices, the price gap narrowed significantly in the period 2015 -2017 (by 31 ,0%), 
which was due to a decrease in price difference in 2017 compared with 2016 by 53 ,3%. 
 
In the first 9 months of 2018 compared with the same period of 2017 the difference between the 
Union industry 's sales prices and the import prices increased, which, inter alia , was a consequence 
of the reduction of the Union industry 's sales pri ces. 
 
As a result , production and financial indicators  of the Union industry  in the first 9  months of 2018  
compared with the first 9  months  of 2017 decreased ( sales revenue by 1,4%; profit by  10,5 times; 
production profitability by 4,2 percentage points; p rofitability of sales by 4,0  percentage points, 
investments by 72,3%, volume of production by 0,1% ). 
 
The state of the Union industry in the period 2015 -2017, and specifically in the first 9  months of 
2018, indicates that the Union industry is vulnerable t o a further increase in imports, which is likely 
to be imminent given the context of an overall steel overcapacity, the increasing number of trade 
defence measures taken by third countries on steel products, ongoing safeguard investigations , the 
recent mea sures under Section 232 of the Trade Expansion Act of 1962 adopted by the United States 
of America, and, consequently, trade diversion.  
 
For more details on the reasons for the initiation of the investigation please refer to the Notice of 
initiation.  
 
4. Provide a point of contact for the investigation and identify the preferred means for 
corresponding  
 
Department for Internal Market Defence (DIMD)  
Eurasian Economic Commission  
3/5, Smolensky boulevard  
Moscow, 119121, Russia  
Tel +7 (495) 669 -24-00 # 1309, # 4966, #1272  
E-mail: tradedefence@eecommission.org  
 
5. Provide the deadlines and procedures for importers, exporters and other interested 
parties to present evidence and t heir views  
 
In accordance with the Protocol on Application of Safeguard, Anti -Dumping and Countervailing 
Measures to Third Countries (Annex №  8 to the Treaty on the Eurasian Economic Union of 
29.05.2014), interested parties may declare their intention to s eek participant status not later than 
25 days from the date of initiation of the investigation. Participants to the safeguard investigation 
have the right to request access to the non -confidential file and participate in public hearings.  
The participants t o the safeguard investigation may request for public hearings within 45  days from 
the date of initiation of the investigation.  
Interested parties should submit comments within 60 days from the date of the initiation of the 
investigation in writing in the R ussian language to the following address:  
 
Department for Internal Market Defence (DIMD)  
Eurasian Economic Commission  
3/5, Smolensky boulevard  
Moscow, 119121, Russia  
E-mail: tradedefence@eecommission.or g 
 
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