G/SG/N/7/ZAF/5  
G/SG/N/11/ZAF/7  
 
16 September 2020 
(20-6212) Page: 1/5 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS BEFORE 
TAKING A PROVISIONAL SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
SOUTH AFRICA 
Imports of bolts with hexagon heads of iron or steel  
The following communication, dated  11 September 2020, is being circulated at the request of the 
delegation of South Africa . 
 
_______________  
 
 
Pursuant to Article 12.4 of the Agreement on Safeguards the Government of  South Africa hereby 
gives notification before taking provisional safeguards measures on imports of  bolts with hexagon 
heads of iron or steel.  
Pursuant to Article 9, footnote 2 of the Agreement on Safeguards, the Government of South Africa 
hereby gives notification on a decision not to apply provisional measures on imports from developing 
countries.  
1  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The subject product is described as bolts with hexagon heads of iron or steel, under tariff sub -
heading 7318.15.43.  
2  THE PROVISIONAL SAFEGUARD MEASURE  
The provisional safeguard measure consists of ad valorem Safeguard duty of 31.8%.  
3  THE PROPOSED DATE OF IMPOSITION OF THE SAFEGUARD MEASURE  
The Commission intends to impose the provisional saf eguard measure on 02 October 2020.  
4  THE EXPECTED DURATION OF THE PROVISIONAL SAFEGUARD MEASURE  
The expected duration of the provisional safeguard measure is two hundred (200) days.  
5  PROVIDE THE BASIS FOR:  
i. Making a preliminary determination, as provided for i n Article 6, that increased imports 
have caused serious injury.  
The International Trade Administration Commission of South African initiated an investigation 
pursuant to an application by the South African Iron and Steel Institute (the Applicant), on behal f of 
the South African Fasteners Manufacturers ' Association (SAFMA) in  order to determine whether G/SG/N/7/ZAF/5 • G/SG/N/11/ZAF/7  
 
- 2 - 
 
  increased imports have caused serious injury to the domestic industry, within the meaning of the 
Agreement on Safeguards  in connection with  bolts with hexagon  heads of iron or steel.  
The Commission made a preliminary determination that:  
(a) Unforeseen Developments  
That a confluence of events formed the basis of the unforeseen development and this confluence of 
events is led notably by China which is the biggest pro ducer of global fasteners, accounting for more 
than 50% of global fasteners capacity and output. The confluence of events are as follows:  
• The unprecedented steep rate of increase in fasteners production capacity (including the 
subject products) over the en suing 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 contraction of the world economy and in particular the Chinese eco nomy resulted in the 
contraction of demand for fasteners (including the subject products), that contribute to the 
imbalance between capacity and demand;  
• Record export volumes by countries with excess capacity, especially Chinese 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.  
The Commission considered that the South Africa government committed to bind th e ordinary 
customs duty on the imported products of bolts with hexagon heads of iron or steel  at 
30% ad varolem.  
(b) Increased Imports  
The data evaluation for the purposes of determining increased imports covered the period from 
1 July 2016 to 30  June 2019.  
The Commission considered that the subject product is being imported into the SACU market in such 
increasing quantities in absolute t erms and relative to SACU production.  
The Commission made a preliminary determination that the recent, sudden, sharp and significant 
increase of the imports of bolts with hexagon heads of iron or steel  occurred in 2017/18 full year in 
absolute terms and re lative to production. The Commission considered that imports decreased 
slightly in 2018/19 but remained at higher levels than 2016/17. Although there is a slight decrease 
in 2018/19 imports are still in such increased quantities, and have been higher than SACU production 
throughout the period of investigation . The decrease in imports in 2017/18 in absolute terms and 
relative to production can be attributed more to a decline in SACU consumption, which declined in 
line with imports. Notwithstanding this sligh t decline in imports, the subject product continued to be 
imported in increased quantities both in absolute terms and relative to production.  
(c) Serious Injury  
The period of investigation for data evaluation for the purposes of determining the allegation of 
serious injury is 01 July 2016 to 30 June 2019. The injury analysis relates 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. There is 
sufficient evidence that the SACU industry is suffering serious injury in the form of a decline in sales 
volumes, output, market share, utilisation of capacity, productivity and employment for the period 
of investig ation. The Commission further considered that that although there was a slight 
improvement in the losses made by the SACU industry, it was still in a loss making situation.  G/SG/N/7/ZAF/5 • G/SG/N/11/ZAF/7  
 
- 3 - 
 
  (d) Causal Link between Increased Imports and Serious Injury  
A surge in imports of bolts with hexagon heads of iron or steel occurred in 2017/18 which caused 
serious to the SACU industry. During the period of the surge, the SACU industry 's sales volumes, 
profits output, market share, employment, productivity and cap acity declined when compared to 
2016/17. The SACU industry 's decline in sales volumes, output, capacity utilisation and market share 
was the highest decline in 2017/18, which coincided with the highest increase in the market share 
of imports.  
The serious i njury suffered by the SACU is causally linked to the increased and there are no other 
known factors that sufficiently detract from the causal link.  
The position of the SACU industry is unsustainable, and the increased imports may cause further 
damage which  may lead to the demise of the SACU industry if it is not immediately protected, given 
that the imports are entering the SACU market at such high volumes. On this basis, the Commission 
considered that there are critical circumstances were a delay would cau se serious damage to the 
SACU industry.  
6  MAJOR EXPORTING COUNTRIES  
The Government of South Africa offers consultations on the provisional measures  under Article 12.4.  
7  DEVELOPING COUNTRIES  
Below is the list of developing countries excluded from measures as they exported less than 3 % of 
total imports to South Africa (Article 9.1 of the Agreement on Safeguards):  
DEVELOPING COUNTRIES TO BE EXCLUDED FROM THE DUTY  
Afghanistan  Libya 
Albania  Madagascar  
Algeria  Malawi  
American Samoa  Maldives  
Angola  Mali 
Antigua and Barbuda  Marshall Islands  
Argentina  Mauritania  
Armenia  Mauritius  
Azerbaijan  Mexico  
Bangladesh  Micronesia,Fed. States of  
Bahrain, Kingdom of  Moldova, Republic of  
Belarus  Mongolia  
Belize  Montenegro  
Benin  Morocco  
Bhutan  Mozambique  
Brunei Darussalam  Myanmar  
Bolivia, Plur State of  Namibia  
Bosnia and Herzegovina  Nepal  
Botswana  Nicaragua  
Brazil  Niger  
Bulgaria  Nigeria  
Burkina Faso  North Macedonia  
Burundi  Oman  G/SG/N/7/ZAF/5 • G/SG/N/11/ZAF/7  
 
- 4 - 
 
  Cabo Verde  Pakistan  
Cambodia  Palestine  
Cameroon  Palau  
Central African Republic  Panama  
Chad Papua New Guinea  
Chile Paraguay  
Colombia  Peru 
Comoros  Philippines  
Costa Rica  Qatar  
Côte d'Ivoire  Romania  
Cuba Russian Federation  
Democratic Republic of the Congo  Rwanda  
Congo Republic  Saudi Arabia, Kingdom of  
Djibouti  St. Kitts and Nevis  
Dominica  St. Lucia  
Dominican Republic  Saint Vincent and the Grenadines  
Ecuador  Sao Tome and Principe  
Egypt, Arab Rep.  Samoa  
El Salvador  Senegal  
Eritrea  Seychelles  
Eswatini  Sierra Leone  
Equatorial Guinea  Singapore  
Ethiopia  Solomon Islands  
Fiji Serbia  
Gabon  Somalia  
The Gambia  South Sudan  
Georgia  Sri Lanka  
Ghana  Sudan  
Grenada  Suriname  
Guatemala  Syrian Arab Republic  
Guinea  Tajikistan  
Guinea -Bissau  Tanzania  
Guyana  Timor -Leste  
Haiti Togo 
Honduras  Tonga  
Indonesia  Trinidad and Tobago  
Iran, Islamic Rep. of  Tunisia  
Iraq Turkey  
Jamaica  Turkmenistan  
Jordan  Tuvalu  
Kazakhstan  Uganda  
Kenya  Ukraine  
Kiribati  United Arab Emirates  
Korea, Democ. P. Republic of  Uruguay  
Kosovo  Uzbekistan  G/SG/N/7/ZAF/5 • G/SG/N/11/ZAF/7  
 
- 5 - 
 
   
 
__________  Kuwait, the State of  Vietnam  
Kyrgyz Republic  Vanuatu  
Lao People 's Dem. Republic  Venezuela, Bolivarian Republic of  
Latvia  West Bank and Gaza  
Lebanon  Yemen  
Lesotho  Zambia  
Liberia  Zimbabwe  
Lithuania