G/SG/N/6/COL/8  
 
16 April 2019  
(19-2559) Page: 1/3 
Committee on Safeguards  Original: Spanish  
 
  
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT  
ON SAFEGUARDS ON INI TIATION OF AN INVEST IGATION  
AND THE REASONS FOR IT 
COLOMBIA  
(Sheets of Paperboard and Polyethylene , with an Intermediate Layer of Aluminium Foil 
as an Oxygen Barrier , Used for the Aseptic Packaging of UHT -Treated Foodstuffs ) 
The following communication, dated 16 April 2019, is being circulated at the request of the 
delegation of Colombia . 
 
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Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, Colombia hereby notifies the 
initiation of the following safeguards investigation in accordance with the regulations established in 
its domestic legislation – Decree No. 152 of 1998 .  
 
1. Date wh en the investigation was initiated  
 
The investigation was initiated on 9 April 2019 under Initiating Resolution ( Resolución de Apertura ) 
No. 073, publi shed in Colombian Official Journal No. 50.923 of 11 April 2019.  
 
2. Product involved  
 
The products under investigation are sheets of paper board and polyethylene, with an intermediate 
layer of aluminium foil as an oxygen barrier, used for the aseptic packaging of UHT -treated 
foodstuffs . These products,  also know n by the trade name "Tetra Pak", are classified in the National 
Customs Tariff (Decree No. 4927 of 2011) under the following subheading : 
 
PRODUCT  SUBHEADING  TARIFF DESCRIPTION  
Sheets of paperboard and 
polyethylene, with an 
intermediate layer of aluminium 
foil as an oxygen barrier, used for 
the aseptic packaging of 
UHT-treated foodstuffs . 4811.59.20.00  - Paper and paperboard coated, 
impregnated or covered with 
plastics (excluding adhesives) : 
 - Other :  
 - With an intermediate 
layer of aluminium foil, of a kind 
used for packing foodstuffs, 
whether or not printed .  
 
3. Reasons for the initiation of the investigation  
i. Petition   
The investigation petition  was filed by the companies PLASTILENE S.A.S. and NOVALENE ZONA 
FRANCA S.A.S., with the express support of the company FLEXOSPRING . Together these companies  
account for more than  50% of domestic output of the directly competitive product, namely flexible 
sheets and film made with polyethylene, with EVOH as an oxygen barrier, used for the aseptic 
packaging of UHT -treated foodstuffs .  G/SG/N/6/COL/8  
 
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  ii. Evidence on the basis of which the investigation was initiated  
• Analysis of imports  
The behaviour of total imports during both halves of  the years 2016 and 2017  shall be taken as the 
historical reference, while the two halves  of the year 2018 shall be taken  as the period for 
determining  whether imports have increased in such quantities and under such conditions as to 
cause injury to the domestic industry . 
The entire analysis period – covering  the reference period and both halves of 201 8 – showed a 
steady  upward trend, particularly  in the last three six -month periods. The second half of 2017  saw 
an increase of 26.15% on the previous six months, from 4,469,173 k g to 5,637,920 k g. For the 
two halves  of 2018, the increases amounted to 4.84% and 52.59%, reaching a level of 9,019,235 kg 
by the end of the analysis period . 
When considering the performance of imports in terms of volume (kg) , and comparing the average 
volume of total imports for the first and second halves of 2018 with the average from the first half 
of 2016 until the second half of 2017, it is concluded that total imports rose by 59.88%  from an 
average of 4,669,087 k g to 7,465,054 kg. 
• Analysis of injury indicators  
In order to analyse the impact that the imports had on the domestic industry in the first and second 
halves of 201 8 (critical period), the average for these periods was compared with the average for 
the first and second halves of 201 6 and 201 7 (reference period ). Thus, it was possible to observe 
the performance of the industry and of all of the economic and financial variables within the 
framework of the increase in imports in 201 8.  
The comparison between  the reference period and the critical period revealed  sufficient indication of 
serious injury in the poor performance of the domestic industry in respect of the following variables : 
volume of production for the domestic market, volume of production in relation to apparent domestic 
consumption , volume of domestic sales, total imports in relation to  volume of production , final 
finished product inventory , final inventory  in relation to sales volume , final inventory in relation to 
production volume , installed capacity utilization , productivity,  price, volume of sales of the petitioner  
in relation to apparent domestic consumption , volume of sales of producers supporting the petition 
in relation to apparent domestic consumption, and total imports in relation to  apparent domestic 
consumption . 
No indication of serious injury was , however,  found in the behaviour of the following variables: 
volume of production for the  domestic market  in relation to volume of domestic sales, wages and 
employment . 
When comparing the behaviour of financial variables, at bia nnual level, for the production of "flexible 
sheets and film made with polyethylene, with EVOH as an oxygen barrier, used for the aseptic 
packaging of UHT -treated foodstuffs ", sufficient indication of serious injury was found in respect of: 
net sales revenue, gross profit , gross  profit margin, operating profit , and operating profit margin . 
• Causal  link 
The analysis of the causal link took place in the light of  Article 2 of Decree No. 152 of 1998, which 
provides that a  safeguard measure may be applied if it has been determined that a product is being 
imported in such quantities , absolute or relative to domestic production, and under such conditions 
as to cause or threaten to cause serious injury to the domestic industry that produces like or dir ectly 
competitive products .  
The average volume of imports for the reference period amounted to 4,669,087 k g, while the volume 
for the critical period  stood at 7,465,054 kg - an increase of 2,795,967 kg amounting to a  59.88% 
rise.  
Since the first half of 2017, the market share of domestic producers has decreased, while the volume 
of imports has steadily increased .  G/SG/N/6/COL/8  
 
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  The share of the petitioning  domestic producer's domestic sales in apparent domestic consumption  
showed a loss of market share of 4.40 percenta ge points  in the critical period compared to the 
reference period , while the producers supporting the petition  and other domestic producers lost 
11.11 market percentage points  between them , meaning  the entire  domestic industry  lost 
15.51  market percentage points that were gained by total imports . 
 
Total imports  gained 15. 51 percentage points between the reference period and the critical period, 
thus displacing  domestic producers in the first and second hal ves of 201 8, with imports increasing 
by 59.88%. 
Accordingly , it has been concluded that following  the 59.88% increase  in imports in the two halves 
of 2018 , there are signs of a causal link between the imports  and the serious injury shown in the 
performance of economic and financial variables important t o the domestic industry producing 
"flexible sheets and film made with polyethylene, with EVOH as an oxygen barrier, used for the 
aseptic packaging of UHT -treated foodstuffs ", such as: volume of production for the domestic 
market, volume of production in re lation to apparent domestic consumption, volume of domestic 
sales, total imports in relation to volume of production, final finished product inventory, final 
inventory in relation to sales volume, final inventory in relation to production volume, installed  
capacity utilization, productivity, price, volume of sales of the petitioner  in relation to apparent 
domestic consumption, volume of sales of producers supporting the petition  in relation to apparent 
domestic consumption, total imports in relation to appa rent domestic consumption , net sales 
revenue, gross profit, gross profit margin, operating profit, and operating profit margin . 
4. Point of contact for the investigation and preferred means of communication  
Subdirección de Prácticas Comerciales  
Calle 28 No 13A - 15 Piso 16  
Bogotá, D.C.  
Tel.: (571) 6067676 , Ext. 2225 and 1694 
Fax: (571) 6069944  
Email : efernandez@mincit.gov.co  and rrojasr@mincit.gov.co  
5. Deadlines and pr ocedures for importers, exporters and other interested parties to 
present evidence and their views  
On 16 April 2019, the Foreign Trade Directorate of the Ministry of Commerce, Industry and Tourism, 
via the national newspapers El Nuevo Siglo  and La Repúblic a, invited the parties concerned by the 
investigation to express their duly substantiated views and to submit or request any evidence and 
documents that they considered relevant within thirty (30) working days from the first working day 
following the date of publication of the invitation.  
Furthermore, on 16 A pril 2019, the Sub -Directorate of Trade Practices sent communications to the 
interested parties informing them of the initiation of the investigation and requesting them to 
complete questionnaires, whic h must be returned within thirty (30) working days from the first 
working day following the date they were sent.  
These questionnaires may be downloaded from the following address: 
http://www.mincit.gov.co/mincomercioexterior/defensa -comercial/salvaguard ia/investigaciones -
por-salvaguardia -en-curso/laminas -de-carton -y-polietileno -con-lamina -interme . 
Neither a date nor a place has yet been decided for the public hearing.  This information will be 
announced to interested parties in a communication and via the  website of the Ministry of Commerce, 
Industry and Tourism.  
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