G/SG/N/8/ZAF/6/Suppl.1  
G/SG/N/10/ZAF/5/Suppl.1  
G/SG/N/11/ZAF/5/Suppl.2  
 
2 September  2020 
(20-5982) Page: 1/5 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT  ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS  
ON TAKING A DECISION TO APPLY A SAFEGUARD MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
SOUTH AFRICA 
Threaded fasteners of iron or steel: bolt ends & screw studs, screw studding and other  
hexagon nuts (excluding those of stainless steel an d those identifiable for aircraft)  
Supplement  
The following communication, dated 26 August 2020, is being ci rculated at the request of the 
delegation of South Africa .* 
 
_______________  
 
 
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 t hose of stainless 
steel and those identifiable for aircraft).  
2  NOTIFICATION UNDER ARTICLE 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 i njury 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 South 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 o f stainless steel and those identifiable for aircraft).  
 
* A copy of the Final Determination has been submitted electronically. 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/8/ZAF/6/Suppl.1 • G/SG/N/10/ZAF/5/Suppl.1 • G/SG/N/11/ZAF/5/Suppl.2  
 
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  3  PROVIDE THE BASIS FOR:  
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.  
The International Trade Administration Commission of South African initiated an investigation 
pursuant to an application by  South African Iron and Steel Institute (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 mean ing 
of the Agreement on Safeguards, in 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 he xagon nuts (excluding those of stainless steel and those identifiable for aircraft) at 
30% ad varolem . 
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 vol umes;  
• The slowdown of the Chinese economy 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 su pply 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 suc h 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 
1 July 2014 to 30  June 2018.  
The Commission considered that imports of bolt ends & screw studs, sc rew studding increased during 
the period 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 decreased 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 consi dered , 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 a higher level than 2015/16. The Commission considered that imports G/SG/N/8/ZAF/6/Suppl.1 • G/SG/N/10/ZAF/5/Suppl.1 • G/SG/N/11/ZAF/5/Suppl.2  
 
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  slightly decreased during the period of inv estigation, 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 that these events cited were unforeseen developments 
which led to the i mported 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.  
c. Serious Injury  
The data evaluation for the purposes of determining serious injury covered the period from 
1 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 domestic production. There is sufficient 
evidence that the SACU ind ustry on bolt ends & screw studs, screw studding experienced a decline 
in sales volumes, market share, gross profits and negative net profits during the period 1  July 2014 
to 30 June 2018 as a result of increased imports.  
The injury analysis of other hexag on 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 Manufacturers' Association (SAFMA) , with a collective output of the l ike 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 ou tput, 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 between Increased Import and Serious Injury  
A surge in imports of th readed 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. The 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 imports 
increased.  
The other factors that were considered to have ca used 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 supply 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 developments which led to 
the imported product being imported into the SA CU 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 known factors that sufficiently detract from the causal link.  
e. Adjus tment 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.  G/SG/N/8/ZAF/6/Suppl.1 • G/SG/N/10/ZAF/5/Suppl.1 • G/SG/N/11/ZAF/5/Suppl.2  
 
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  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 
hexagon nuts (classifiable under tariff subheading 7318.16.30) of iron and steel (excluding those of 
stainless steel and those identifiable for aircr aft). 
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 expected 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 sched uled 
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 54.04%  
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 ARTICLE 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 des cribed 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  G/SG/N/8/ZAF/6/Suppl.1 • G/SG/N/10/ZAF/5/Suppl.1 • G/SG/N/11/ZAF/5/Suppl.2  
 
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  Benin  Montenegro  
Bhutan  Morocco  
Brunei Darussalam  Mozambique  
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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