G/SG/N/8/ZAF/6  
G/SG/N/10/ZAF/5  
G/SG/N/11/ZAF/5/Suppl.1  
 
10 February 2020  
(20-1069) Page: 1/5 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
 
NOTIFICATION UNDER A RTICLE 12.1(C) OF TH E AGREEMENT  
ON SAFEGUARDS ON TAK ING A DECISION TO AP PLY  
A SAFEGUARD MEASURE  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
SOUTH AFRICA 
Threaded fasteners of iron or steel  
The follo wing communication, dated 10 February 2020, is being circulated at the request of the 
delegation of South Africa.  
 
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1  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The subject product is described as bolt ends & screw studs (classifiable under tariff subheading 
7318.15.41), screw studding (classifiable under tariff subheading 7318.15.42) and other hexagon 
nuts (classifiable under tariff subheading 7318.16.30) of iron and steel (excluding those of stainless 
steel and those ide ntifiable for aircraft).  
2  NOTIFICATION UNDER A RTICLE 12.1(B) AND ( C) 
Pursuant to Article 12.1(b) of the Agreement on Safeguards, the Government of South Africa hereby 
gives notification upon making a finding of serious injury caused by increased imports of threaded 
fasteners of iron or steel: bolt ends & screw studs, screw studding and other hexagon nuts (excluding 
those of stainless steel and those identifiable for aircraft).  
Pursuant to Article 12.1(c) of the Agreement on Safeguards, the Government of Sout h Africa hereby 
gives notification upon taking a decision to apply a safeguard measure on imports of threaded 
fasteners of iron or steel: bolt ends & screw studs, screw studding and other hexagon nuts (excluding 
those of stainless steel and those identifia ble for aircraft).  
3  PROVIDE THE BASIS FO R: 
i. Making a finding of serious injury caused by increased imports, as provided for in 
Article 12.1(a);  
ii. Taking a decision to apply a safeguard measure, as provided for in Article 12.1(b); and  
iii. Specifying the developing countries to which the measure is not applied under 
Article  9.1 of the Agreement of Safeguards.  G/SG/N/8/ZAF/6 • G/SG/N/10/ZAF/5 • G/SG/N/11/ZAF/5/Suppl.1  
 
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  The International Trade Administration Commission of South African initiated an investigation 
pursuant to an application by South African Iron and Steel Institu te (SAISI) on behalf of the 
South  African Fasteners Manufacturers' Association (SAFMA) and its members in order to determine 
whether increased imports have caused serious injury to the domestic industry, within the meaning 
of the Agreement on Safeguards, i n connection with threaded fasteners of iron or steel: bolt ends & 
screw studs, screw studding and other hexagon nuts (excluding those of stainless steel and those 
identifiable for aircraft).  
3.1  The Commission made a final determination on the following:  
a. Unforeseen Developments  
The Commission made a final determination that the South Africa government  committed 
to bind the ordinary customs duty on the imported products of bolt ends & screw studs, 
screw studding and other hexagon nuts (excluding those of stainl ess steel and those 
identifiable for aircraft) at 30% ad va lorem. 
The Commission made a final determination on the following unforeseen  developments:  
• The unprecedented steep rate of increase in global fastener production capacity which 
was mainly fuelled  by the growth of the Chinese and Asian fastener market;  
• The growth of the Chinese fastener market which was driven by such steep increase in 
production of fasteners and such steep increase in fastener export volumes;  
• The slowdown of the Chinese econom y and the global contraction in demand. The 
slowdown of Chinese economy and the financial crisis of 2008 to 2010 had an impact 
on the demand for fasteners and with increased production created an imbalance 
between supply and demand which added to increased  export volumes;  
• The significant unused production capacity of carbon steel fasteners in China; and  
• An increase in trade remedy actions taken against fastener products (including the 
subject product) by countries such as Canada and the United States of  America.  
b. Increased Imports  
The data evaluation for the purposes of determining increased imports covered the period 
from 01 July 2014 to 30 June 2018.  
The Commission considered that imports of bolt ends & screw studs, screw studding 
increased during the p eriod considered. A surge in imports was experienced in 2016/17. 
Even though imports decreased in 2017/18 they remained at higher levels than 2014/15 
and 2015/16 and therefore continued to increase at such high levels. Imports relative to 
production decrea sed in 2017/18 as domestic industry's production increased following 
the steep increase in imports relative to production in 2016/17.  
With regard to  other hexagon nuts, imports slightly decreased during the period 
considered with a surge noted in 2016/17. The hexagon nuts imports decreased in 
2017/18 but the decrease is slightly lower than 2014/15 and still at higher level than 
2015/16. The Commission  considered that imports slightly decreased during the period of 
investigation, but trends do not signify a permanent downward trend. Imports relative to 
production increased during the period of investigation.  
The Commission made a final determination tha t these events cited were unforeseen 
developments which led to the imported product being imported into the SACU market in 
such increased quantities and under such conditions to cause serious injury to domestic 
producers of the SACU like product or directl y competitive products.  G/SG/N/8/ZAF/6 • G/SG/N/10/ZAF/5 • G/SG/N/11/ZAF/5/Suppl.1  
 
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  c. Serious Injury  
The data evaluation for the purposes of determining serious injury covered the period from 
01 July 2014 to 30 June 2018.  
The injury analysis of bolt ends & screw studs, screw studding relates to information 
submitted  by T&I Chalmers Engineering (Pty) Ltd a member of South African Fasteners 
Manufacturers' Association (SAFMA) with a collective output of the like or directly 
competitive products constituting a major proportion (approximately around 50%) of the 
total dome stic production. There is sufficient evidence that the SACU industry on bolt ends 
& screw studs, screw studding experienced a decline in sales volumes, market share, gross 
profits and negative net profits during the period 01 July 2014 to 30 June 2018 as a  result 
of increased imports.  
The injury analysis of other hexagon nuts relates to information submitted by CBC 
Fasteners (Pty) Ltd; SA Bolt Manufacturers (Pty) Ltd; Transvaal Pressed Nuts, Bolts & 
Rivets (Pty) Ltd; members of South African Fasteners Manuf acturers' Association (SAFMA) 
with a collective output of the like or directly competitive products constituting a major 
proportion (approximately more than 90%) of the total domestic production. There is 
sufficient evidence that the SACU industry on other  hexagon nuts suffered a constant 
market share, a decline in output, productivity, gross profits; negative net profits and low 
capacity utilisation.  
The Commission made a final determination that SACU industry is suffering serious injury.  
d. Causal Link betwe en Increased Import and Serious Injury  
A surge in imports of threaded rods occurred in 2016/17 which caused serious injury to 
SACU industry. The applicant lost market share during the period considered while the 
share of imports in the market increased. Th e loss of market share by the applicant was 
highest in 2016/17 which coincided with the biggest in the market share by the imports. 
With hexagon nuts, the applicant 's market remain constant during the period of 
investigation while the market share of impor ts increased.  
The other factors that were considered to have caused injury included cost structures, lack 
of export opportunities, domestic industry own imports of the subject product, 
restructuring of the domestic industry, labour unrest, raw material sup ply difficulties and 
exchange rate fluctuations. It was found that these factors did not sufficiently detract from 
the causal link between increased imports and serious injury.  
The Commission made a final determination that there were unforeseen developmen ts 
which led to the imported product being imported into the SACU market in such increased 
quantities and under such conditions to cause serious injury to domestic producers of the 
SACU like product or directly competitive products. There are no other know n factors that 
sufficiently detract from the causal link.  
e. Adjustment Plan  
The domestic industry has submitted an adjustment plan, outlining the measures it has 
taken and those it plans to take for facilitation of adjustment of the domestic industry to 
the competitive conditions with the imports.  
f. Offer of consultations under Article 12.3  
The Government of South Africa offers consultations on the definitive safeguard measures.  
3.2  Provide a precise description of the proposed measure  
A definitive measure of 54.04 % on the imports of bolt ends & screw studs (classifiable under tariff 
subheading 7318.15.41), screw studding (classifiable under tariff subheading 7318.15.42) and other G/SG/N/8/ZAF/6 • G/SG/N/10/ZAF/5 • G/SG/N/11/ZAF/5/Suppl.1  
 
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  hexagon nuts (classifiable under tariff subheading 7318.16.30) of iron and steel (excl uding those of 
stainless steel and those identifiable for aircraft).  
3.3  Provide the proposed date of introduction of the measure  
It is expected that the definitive measure, if adopted, will come into effect between March 2020 and 
April 2020.  
3.4  Provide the expec ted duration of the measure  
The safeguard measure, if adopted, will remain in force for 3 years.  
3.5  For a measure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the measure, 
if such date for the review has already been scheduled  
Not applicable.  
3.6  If the expected duration is over one year, provide the expected timetable for 
progressive liberalization of the measure  
Period  Rate of safeguard measure  
27 March 2020 - 26 March 2021  54.04%  
27 March 2021 - 26 March 2022  52.04%  
27 March 2022 - 26 March 2023  50.04%  
3.7  If the measure is being extended, also provide: (i) evidence that the industry 
concerned is adjusting and that the safeguard measure continues to be necessary  to 
prevent or remedy serious injury  
Not applicable.  
4  NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2  
4.1  Specify the measure  
The measure consists of 54.04% described in the notification under Article 12.1(c), above.  
4.2  Specify the products subject to the measure  
The measure shall be applied to the products described above, in paragraph 1 of this notification.  
4.3  Specify the developing countries to which the measure is not applied under Article 
9.1 of the Agreement on Safeguards  
Afghanistan  Madagascar  
Albania  Malawi  
Algeria Latvia  
American Samoa  Lebanon  
Angola  Maldives  
Antigua and Barbuda  Mali 
Argentina  Marshall Islands  
Armenia  Mauritania  
Azerbaijan  Mauritius  
Bangladesh  Mexico  
Bahrain, Kingdom of  Micronesia,  Fed. States of  
Belarus  Moldova, Republic of  
Belize  Mongolia  
Benin  Montenegro  
Bhutan  Morocco  
Brunei Darussalam  Mozambique  G/SG/N/8/ZAF/6 • G/SG/N/10/ZAF/5 • G/SG/N/11/ZAF/5/Suppl.1  
 
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  Bolivia, Plur State of  Myanmar  
Bosnia and Herzegovina  Namibia  
Botswana  Nepal  
Brazil  Nicaragua  
Bulgaria  Niger  
Burkina Faso  Nigeria  
Burundi  North Macedonia  
Cabo Verde  Oman  
Cambodia  Pakistan  
Cameroon  Palestine  
Central African Republic  Palau  
Chad Panama  
Chile Papua New Guinea  
Colombia  Paraguay  
Comoros  Peru 
Costa Rica  Philippines  
Côte d'Ivoire  Qatar  
Cuba Romania  
Democratic Republic of  the Congo  Russian Federation  
Congo Republic  Rwanda  
Djibouti  Saudi Arabia, Kingdom of  
Dominica  St. Kitts and Nevis  
Dominican Republic  St. Lucia  
Ecuador  Saint Vincent and the Grenadines  
Egypt, Arab Rep.  Sao Tome and Principe  
El Salvador  Samoa  
Eritrea  Senegal  
Eswatini  Seychelles  
Equatorial Guinea  Sierra Leone  
Ethiopia  Singapore  
Fiji Solomon Islands  
Gabon  Serbia  
The Gambia  Somalia  
Georgia  South Sudan  
Ghana  Sri Lanka  
Grenada  Sudan  
Guatemala  Suriname  
Guinea  Syrian Arab Republic  
Guinea -Bissau  Tajikistan  
Guyana  Tanzania  
Haiti Timor -Leste  
Honduras  Togo 
Indonesia  Thailand  
Iran, Islamic Rep. of  Tonga  
Iraq Trinidad and Tobago  
Jamaica  Tunisia  
Jordan  Turkey  
Kazakhstan  Turkmenistan  
Kenya  Tuvalu  
Kiribati  Uganda  
Korea, Democ. P. Republic of  Ukraine  
Kyrgyz Republic  United Arab Emirates  
Kosovo  Uruguay  
Kuwait, the State of  Uzbekistan  
Lao People 's Dem. Republic  Vietnam  
Lebanon  Vanuatu  
Lesotho  Venezuela, Bolivarian Republic of  
Liberia  West Bank and Gaza  
Libya Yemen  
Lithuania  Zambia  
 Zimbabwe  
 
 
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