G/SG/N/8/UKR/5/Suppl.1  
G/SG/N/10/UKR/5/Suppl.1  
 
4 June 2019  
(19-3803) Page: 1/6 
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT  
ON SAFEGUARDS ON FIN DING A SERIOUS INJUR Y OR  
THREAT THEREOF CAUSE D BY INCREASED IMPOR TS 
 
NOTIFICATION OF A PROPOSAL TO  
EXTEND THE EXISTING MEASURE  
UKRAINE  
(Flexible porous plates,  blocks and sheets of polyurethane foams ) 
Supplement  
The following communication, dated 27 May 2019 , is being circulated at the request of the Delegation 
of Ukraine.  
 
_______________  
 
Pursuant to Article 12.1(b) of the Agreement on Safeguards Ukraine submi ts a notification of finding 
of serious injury or threat thereof, to the domestic industry of flexible porous plates, blocks and 
sheets of polyurethane foams.  
 
On 6 April 2019 pursuant to the decision of № SP -409/2019/4411 -03 the Interdepartmental 
Commissi on on International Trade (hereinafter referred as the "Commission") initiated the review 
of safeguard measures on imports to Ukraine of flexible porous plates, blocks and sheets of 
polyurethane foams regardless of country of origin and export.  
 
The notice  of the initiation of the review was published in the official gazette  "Uryadoviy Courier" 
No. 67. The initiation was also notified in the WTO document G/SG/N/6/UKR/11/Suppl.1, circulated 
on 12 April 2019.  
 
1  PROVIDE EVIDENCE OF SERIOUS INJURY OR TH REAT OF T HEREOF BY INCREASED 
IMPORTS  
In order to determine serious injury to the domestic industry as a result of increased imports into 
Ukraine, an evaluation of all relevant factors of an objective and quantifiable nature affecting the 
situation in this industry has been undertaken.  
 
The period of investigation covers 2012 –2018.  Certain social and economic indicators of the domestic 
industry were analyzed for the period before the application of safeguard measures and for the 
period of the application.  
  G/SG/N/8/UKR/5/Suppl.1 • G/SG/N/10/UKR/5/Suppl.1  
 
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  Table 1  
Item  2012  2013  2014  3 quarter  2015   
- 
2 quarter  2016  3 quarter  2016  
–  
2 quarter  2017  3 quarter  2017  
–  
2 quarter  2018  2018  
Volume of production  
Index 2012 – 100  100 0,7 -11,8 -37,4 -24,8 -12,4 -13,5 
Index 3 quarter 2016 – 
2 quarter 2017  – 100     100 16,5 15,0 
Capacity utilization  
Index 2012 – 100 100 -33,7 -42 -58,8 -50,5 -42,4 -43 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 16,39 15,13 
Total amount of stock of goods at the end of period  
Index 2012 – 100  100 264,7 500,0 64,7 76,5 217,6 241,2 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 80,0 93,3 
Sales volume on the domestic market of Ukraine  
Index 2012 – 100  100 0,3 -12,6 -43 -36,1 -18,0 -18,6 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 28,3 27,4 
Price  on the domestic market of Ukraine  
Index 2012 – 100  100 -3,4 -8,2 -26,8 -25,9 -12,5 -14,1 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 18,1 15,9 
Investments  
Index 2012 – 100  100 -33,7 -7,0 -83,0 -76,2 -58,9 -65,5 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 72,5 44,8 
Employment  
Index 2012 – 100  100 -3,5 -14,4 -32,0 -26,1 -24,4 -23,4 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 2,2 3,6 
Labor productivity  
Index 2012 – 100  100 4,4 3,0 -7,9 1,8 16,0 13,0 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 14,0 11,0 
Profit  
Index 2012 – 100  100 -44,0 -71,5 -53,6 -53,9 -24,3 -4,4 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 64,2 107,3 
Liquidity conditions  
Index 2012 – 100  100 -41,0 -50,5 -68,8 -72,8 -73,9 -70,3 
Index 3 quarter 2016 – 
2 quarter 2017  – 100 - - - - 100 -4,3 9,1 
Share in consumption  
Index 2012 – 100  100 -1,4 -7,2 -18,9 -25,0 -8,2 -7,2 
Index 3 quarter 2016 – 
2 quarter 2017  – 100  - -  -   - 100 22,3 23,7 
 
Table 1 shows that the  main indicators of the domestic industry 's performance have improved during 
the period of the application of safeguard measures. This trend indicates the positive effect of the 
measures on the domestic industry.  G/SG/N/8/UKR/5/Suppl.1 • G/SG/N/10/UKR/5/Suppl.1  
 
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  Nevertheless, the level of the mentioned in dicators did not reach the level that had existed before 
the initiation of the safeguard investigation. This demonstrates that domestic industry has not 
recovered from the injury caused by increased imports (2012 -2014).  
 
• Applicant 's production in 2018 decr eased compared to the basic period (2012) with trend 
13,5%; 
• Applicant 's sales of goods on the domestic market decreased by 18,6%; 
• Applicant 's income from goods sales on the domestic market decreased by 4,4%; 
• Total amount of stock of goods increased by 241,2%; 
• Applicant 's capital investments decreased by 65,5%; 
• Applicant 's liquidity index decreased by 70,3%; 
• Applicant 's share in consumption decreased by 7,2%. 
 
2  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE  IN IMPORTS 
OR AN INCREASE IN IM PORTS R ELATIVE TO DOMESTIC PRODUCTION  
Table 2  
Indicators  
2012  2013  2014  3 quarter  2015  
– 
2 quarter  2016  3 quarter  2016 
–  
2 quarter  2017  3 quarter  2017  
–  
2 quarter  2018  2018  
Volume of  
imports,  ton 2 005,46  2 191,56  2 581,02  2 775,17  3 897,97  2 549,11  2 408,23  
Index 2012 – 100  100 9,3 28,7 38,4 94,4 27,1 20,1 
Index 3 quarter 
2016 – 2 quarter 
2017 – 100  -  - -  -  100 -34,6 -38,2 
Import price, US 
dollars/tonne  3 405,38  3 549,47  3 613,42  2 839,95  2 812,59  3 505,96  3 435,41  
Index 2012 – 100  100 4,2 6,1 -16,6 -17,4 3,0 0,9 
Index 3 quarter 
2016 – 2 quarter 
2017 – 100 -   - -  -  100 24,7 22,1 
Like products price on the domestic market of Ukraine, US dollars/tonne  
Index 2012 – 100  100 -3,4 -8,2 -26,8 -25,9 -12,5 -14,1 
Index 3 quarter 
2016 – 2 quarter 
2017 – 100 - - - - 100 18,1 15,9 
Like product production cost  
Index 2012 – 100  100 0,9 -2,1 -27,7 -25,7 -13,0 -17,3 
Index 3 quarter 
2016 – 2 quarter 
2017 – 100 - - - - 100 17,1 11,2 
Imports relative to production of domestic industry  
Index 2012 – 100  100 8,5 45,9 121,0  158,4  45,1 38,8 
Index 3 quarter 
2016 – 2 quarter 
2017 – 100  -  - -  -  100 -43,9 -46,3 
 
According to the investigation authority findings during the first period of the application of safeguard 
measures , imports of product under review increased in absolute terms and relative to domestic 
production compared to previous period (3 quarter 2015 - 2 quarter 2016). The safeguard measures 
had effect on reduction of imports only from the second annual applicatio n period. It should be noted 
that amount of imports in the period of safeguard measures being in force was higher than the 
amount of thereof in 2012 -2014.  
The level of prices of imports into Ukraine was lower than the level of prices of like product during  
the period of the application of safeguard measures and even lower than the level of production cost 
of like products of the domestic producer during the period before application of the measures.  G/SG/N/8/UKR/5/Suppl.1 • G/SG/N/10/UKR/5/Suppl.1  
 
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  3  PRECISE DESCRIPTION OF THE PRODUCT INVOL VED 
Flexible porou s plates, blocks and sheets of polyurethane foams  imported to Ukraine and classified 
as per UKTZED code of 3921.13.10.19 . 
 
4  DESCRIPTION OF ANY P ART OF THE IMPORTED GOODS THAT WILL NO L ONGER BE 
SUBJECT TO THE MEASU RE  
Not applicable . 
 
5  PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
Table 5 .1 
Duty for the 1st year period  Duty for the 2nd year period  Duty for the 3rd year period  
11,22  % 10,66 % 10,13 % 
 
6  PROPOSED DATE OF INT RODUCTION OF THE MEA SURE  
08.07.2019.  
 
7  EXPECTED DURATION OF  THE MEASURE  
The safeguard measures are planned to be extended for the period of 3 years:  
 
• 1st year period – July 8, 2019 – July 7, 2020;  
• 2nd year period – July 8, 2020 – July 7, 2021;  
• 3rd year period – July 8, 2021 – July 7, 2022.  
8  PROPOSED DATE FOR TH E REVIEW OF A M EASURES WITH A DURAT ION OF MORE THAN 
THREE YEARS  
Not applicable . 
 
9  PROVIDE EXPECTED TIM ETABLE FOR PROGRESSI VE LIBERALIZATION OF  THE MEASURE  
According to Article 18 of the Law of Ukraine "On Application of Safeguard Measures against Imports 
to Ukraine " and A rticle 7.4 of the Agreement on Safeguards, final safeguard measures will be 
liberalized (Table 5.1).  
 
10  DATE OF PRIOR CONSUL TATION WITH THE MEMB ERS HAVING A SUBSTAN TIAL 
INTEREST AS EXPORTER S OF GOODS  
i. Interested parties may submit comments on this issue and participate in prior 
consultations before 31.05.2019 ; 
ii. according to Article 12.3 of the Agreement on Safeguards prior consultation with the 
interested parties, which reveal a substantial interest as exporters of goods is proposed 
before 24.06.2019 in Kyiv ( Ukraine).  
Contacts:  
 
Address: Kyiv, 01008, Ukraine, 12/2 M. Hrushevskoho Str.  
E-mail: tradedefence@me.gov.ua , meconomy@me.gov.ua  
Tel.: +38 (044) 596 -68-04 G/SG/N/8/UKR/5/Suppl.1 • G/SG/N/10/UKR/5/Suppl.1  
 
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  11  INFORMATION PROVIDED  IN CASE OF PROLONGA TION OF THE MEASURES  
11.1  Evidence that the industry concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy serious injury . 
Analysis of data of the domestic industry shows that the application of safeguard measures positively 
influence the adjusting process to the competition conditions. In 2017 -2018, the domestic industry 
partially modernized production equipment, introduced new technologies to improve 
competitiveness . 
 
However, the established period of the application of the  mentioned measures has found to be 
insufficient for the adjusting process.  
 
11.2  Reference to the WTO document that notified the initial application of the measure  
G/SG/N/8/UKR/5 -G/SG/N/10/UKR/5 -G/SG/N/11/UKR/3 of 10 June 2016.  
 
11.3  Duration of the measure from in itial application till the date at which it will be 
extended  
Three years.  
 
11.4  Precise description of the measure in place prior to the date of extension:  
The safeguard measures in respect of import to Ukraine of flexible porous plates, blocks and sheets 
of po lyurethane foams regardless of their country of origin and export was applied due to the 
Decision of the Interdepartmental Commission on International Trade No. SP -356/2016/4411 -05, of 
26 May 2016.  
 
The notice on the mentioned Decision was published in the  official gazette " Uryadoviy Courier " No. 
100 as of 28.05.2016.  
 
The rate of safeguard duty:  
 
- from the date of application – 13,09%;  
- 12 months from the date of application – by 12 ,44%;  
- 24 months from the date of application – by 11 ,81%.  
 
According to  the free trade agreements concluded by Ukraine with the EFTA States (24.06.2010), 
Montenegro (18.11.2011), participants of the Commonwealth of Independent States, (18.10.2011) 
and taking into account paragraph 8 of Article XXIV of the General Agreement on  Tariffs and Trade 
1994, imports of goods originating from Iceland, Liechtenstein, Norway, Switzerland, Montenegro, 
Armenia, Kazakhstan, Azerbaijan, Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan are 
excluded from the application of safeguards.  
 
Besid es, the safeguard measures are also not applied to such WTO members: Angola, Bangladesh, 
Benin, Burkina Faso, Burundi, Cambodia, Chad, Democratic Republic of Congo, Central African 
Republic, Djibouti, Gambia, Guinea, Guinea -Bissau, Haiti, Lao People's Demo cratic Republic, 
Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Nepal, Niger, 
Rwanda, Senegal, Sierra Leone, Solomon Islands, Tanzania, Togo, Uganda, Vanuatu, Yemen, 
Zambia.  
 
12  INFORMATION ON MAJOR  EXPORTING COUNTRIES  AND EXCLUS IONS FOR REASONS 
OTHER THAN THOSE MEN TIONED IN ARTICLE 9. 1 OF THE SAFEGUARDS AGREEMENT  
12.1  Major exporting countries  
The share of the total imports into Ukraine of products subject under review indicated in the 
Table  12.1. 
  G/SG/N/8/UKR/5/Suppl.1 • G/SG/N/10/UKR/5/Suppl.1  
 
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  Table 12.1  
Country of origin  2018  
Hungary  32,9% 
Poland  23,6% 
Germany  16,2% 
Romania  11,7% 
Other countries  15,6% 
 
 
13  PUBLICLY AVAILABLE D OCUMENT CONTAINING T HE RELEVANT DECISION  MADE BY 
THE COMPETENT AUTHOR ITY IS ATTACHED, IN AN ELECTRONIC FORM, AND CAN BE 
FOUND BY THE FOLLOWI NG LINK:  
Not applicable.  
 
__________