G/SG/N/8/ZAF/5/Suppl.2  
G/SG/N/10/ZAF/4/Suppl.2  
 
29 June 2021  
(21-5219) Page: 1/3 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  (EXTENSION)  
SOUTH AFRICA 
Other screws fully threaded  
with hexagon heads made of steel  
Supplement  
The following notification, dated 24 May 2021,  and received on 28 June 2021, is being circulated at 
the request of the delegation of South Africa.  
 
_______________  
 
 
Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards (Safeguards Agreement), the SACU 
is notifying its decision to extend a sa feguard measure on imports of other screws fully threaded 
with hexagon heads made of steel.  
1. The date when the investigation was initiated  
The investigation was initiated on 21 May 2021. The notice of initiation by the investigating authority 
was published through Notice No. 304 of 2021 in Government Gazette  No.44593.1 
2. The product subject to the investigation  
The subject product is described  as other screws fully threaded with hexagon heads made of steel 
imported under tariff subheading 7318.15.39.  
3. The reasons for the initiation of investigation  
i. The application was lodged by the South African Iron and Steel Institute (SAISI) (the 
Applicant) o n behalf of on behalf South African Fasteners Manufacturers ' Association 
("SAFMA ") and its members CBC Fasteners (Pty) Ltd ( "CBC") and Transvaal Pressed Nuts 
Bolts and Rivets (Pty) Ltd ( "TPN"). 
The claim is that the SACU Industry is experiencing serious in jury and that the expiry of the 
current duties will likely lead to recurrence of serious injury.  
 
1 A copy of Notice No. 304 of 2021 in Government Gazette  N. 44593 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/5/Suppl.2 • G/SG/N/10/ZAF/4/Suppl.2  
 
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 ii. Prima facie  information on which the investigation was initiated:  
The Commission found that the applicant has submitted prima facie  information to indicate 
that SACU Industry is suffering serious injury and that the expiry of the current duties will 
likely lead to recurrence of serious injury.  
4. The proposed date of introduction  
The measure is proposed to take effect for three years from 3 August 2021 until 2 Augu st 2024.  
5. The expected duration and timetable for progressive liberalization of the proposed 
safeguard measure  
The proposed liberalisation of the safeguard measure is as follows:  
Liberalisation of the safeguard measure  
Period  Rate of safeguard measure  
03 Aug 2021 – 02 Aug 2022  35.6%  
03 Aug 2022 – 02 Aug 2023  30.6%  
03 Aug 2023 – 02 Aug 2024  25.61%  
6. Serious injury and the likely recurrence of serious injury  
The period of investigation for data evaluation for the purposes of determining the allegation of 
serious injury is 1 January 2018 to 31 December 2020.  
The injury analysis relates to information submitted by the South African Iron and Steel Institute 
(SAISI) (the Applicant) on behalf of on behalf South African Fasteners Manufacturers ' Association 
("SAFMA ") and its members CBC Fasteners (Pty) Ltd ( "CBC") and Transvaal Pressed Nuts Bolts and 
Rivets (Pty) Ltd ( "TPN") for the period 1 January 2018 to 31 December 2020 representing 70 % of 
the domestic industry by production volume.  
The Applicant alleged and sub mitted prima facie  evidence indicating that it is still experiencing 
serious injury in the form of increased of imports volume and a decline in sales volumes, output, 
market share, utilisation of capacity and employment for the period 1 January 2018 to 
31 December  2020. The Applicant experienced increase of profit during the period of investigation 
and it was as a result of the Applicant that is currently busy restructuring under Section 189 of the 
South African Labour Relations Act, 1995 and retrenchments.  
Should the duties expire, the Applicant will experience the recurrence of serious injury in the 
following indicators:  
Serious Injury Indicators (Jan 2018 –Dec 2020)  
Sales volumes (Tonnes)  Decrease  
Net Profit (R)  Decrease  
Output (Tonnes)  Decrease  
Market share (Applicant)  Decrease  
Utilisation of capacity (%)  Decrease  
Employment (Number of employees)  Decrease  
7. The evidence that SACU Industry is adjusting  
In accordance with the SGR, the Applicant provided a development plan that it indicated it will 
implement to be competitive and efficient. The plan is meant to allow the applicant time to adjust, G/SG/N/8/ZAF/5/Suppl.2 • G/SG/N/10/ZAF/4/Suppl.2  
 
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 while the safeguard measures are in place, and therefore be able to compete with imports when 
safeguards measures expire.  
The development plan that was submitted by the domestic industry highlighted the following 
measures it will put in place to improve the competitiveness of the industry:  
• Increase in total product ion volume;  
• Investment in new equipment and technology;  
• Product development to rationalize the input material range to assist 
ArcelorMittal  Newcastle with the consolidation of their production volumes and to 
optimise the product offering to the domestic ma rket; 
• Support the introduction of a prior import surveillance system, similar to that of 
Europe and the USA to deal with the influx of final products;  
• Continuous training of SARS to improve customs control;  
• Establishment of an industry forum; and  
• Support h igher level designation/localization.  
8. Further information  
Interested parties must make themselves known within a period of 20 days after the initiation of the 
investigation.  
Any information which the interested parties may wish to submit in writing and any  request for a 
hearing before the Commission that they may wish to put forward should be submitted within 
20 days following the initiation of this investigation to the Directorate: Trade Remedies I for attention 
of the Senior Manager: Trade Remedies I at t he email addresses below:  
STakacs@itac.org.za  or TTshikomba@itac.org.za  
If part of the information provided is of a confidential nature, the party concerned should giv e the 
grounds justifying confidentiality and furnish public summaries of such information, which should be 
as detailed as possible. In instances that a public summary cannot be provided a sworn statement 
must be provided stating the reasons why the informa tion cannot be summarized. This requirement 
is designed to secure transparency and due access by all the parties to the information relating to 
this investigation. If the summaries are not duly provided and in the absence of just cause, ITAC 
may disregard the information deemed to be confidential.  
 
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