G/SG/N/6/KAZ/1  
 
20 September 2018 
(18-5834) Page: 1/4 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1 (A) OF THE AGREEMENT  
ON SAFEGUARDS  ON INITIATION OF AN INV ESTIGATION  
AND THE REASONS FOR IT 
KAZAKHSTAN  
(Certain  flat-rolled  steel products ) 
The following communication, dated 7 September 2018, is being circulated at the request of the 
Delegation of Kazakhstan .* 
 
_______________  
 
 
1. Specify the date when the investigation was initiated  
 
The investigation was initiated on 7 August 2018.   
Public notice of the initiation of a safeguard investigation on imports of certain flat -rolled steel 
products imported into the customs territory of the Eurasian Economic Union was published on 
7 August 2018  on the official website of the Eurasian Economic  Union 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_notice_initiatio
n.pdf) (hereinafter Notice of Initiation).  
ID number of investigation: SG -10. 
2. Provide the precise description o f the product involved  
 
The products sub ject to the investigation are hot -rolled steel products, cold -rolled steel products, 
coated steel products named together "certain flat -rolled steel products ". 
2.1. Hot-rolled steel products are classified under the following codes  within the Common Commodity 
Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (CN of FEA EAEU) : 7208 
10 000 0, 7208 25 000 0, 7208 26 000 0, 7208 27 000 0, 7208 36 000 0,  
7208 37 000 0, 7208 38 000 0, 7208 39 000 0, 7208 40 000 0, 7208 51 200 1, 7208 51 200 9,  
7208 51 910 0, 7208 51 980 0, 7208 52 100 0, 7208 52 910 0, 7208 52 990 0, 7208 53 100 0,  
7208 53 900 0, 7208 54 000 0, 7208 90 200 0, 7208 90 800 0, 7211 13 000 0, 7211 14 000 0,  
7211 19 000 0, 7225 30 100 0, 7225 30 300 0 , 7225 30 900 0, 7225 40 120 1, 7225 40 120 9,  
7225 40 150 1, 7225 40 150 9, 7225 40 400 0, 7225 40 600 0, 7225 40 900 0, 7226 91 200 0,  
7226 91 910 0, 7226 91 990 0 .  
The codes of CN of FEA EAEU are given for information purposes only.  
2.2. Cold -rolled steel products are classified under the following codes of CN of FEA EAEU:  
7209 15 000 0, 7209 16 100 0, 7209 16 900 0, 7209 17 100 0, 7209 17 900 1, 7209 17 900 9,  
7209 18 100 0, 7209 18 910 0, 7209 18 990 0, 7209 25 000 0, 7209 26 100 0, 7209 26 900 0,   
                                                
* This document cancels and replaces the document G/SG/N/6/ARM/3 -G/SG/N/6/KAZ/1 -
G/SG/N/6/KGZ/7 -G/SG/N/6/RUS/5 circulated on 4 September 2018.  The content of this notification is the 
same as the content of notifications submitted by Armenia (G/SG/N/6/ARM/3 ), the Kyrgyz Republic 
(G/SG/N/6/KGZ/7) and the Russian Federation (G/SG/N/6/RUS/5).  G/SG/N/6/KAZ/1  
 
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  7209 27 100 0, 7209 27 900 1, 7209 27 900 9, 7209 28 100 0, 7209 28 900 0, 7209 90 200 0,  
7209 90 800 0, 7211 23 200 0, 7211 23 300 0, 7211 23 800 0, 7211 29 000 0, 7211 90 200 0,  
7211 90 800 0, 7225 50 200 0, 7225 50 800 0, 7226 20 000 0, 7226 92 000 0. 
The codes of CN of FEA EAEU are given for information purposes only.  
2.3. Coated steel products are classified under the following codes of CN of FEA EAEU:  
7210 11 000 0, 7210 12 200 0, 7210 12 800 0, 7210 20 000 0, 7210 30 000 0, 7210 41 000 0,  
7210 49 000 1, 7210 49 000 9, 7210 50 000 0, 7210 61 000 0, 7210 69 000 0, 7210 70 100 0,  
7210 70 800 0, 7210 90 300 0, 7210 90 400 0, 7210 90 800 0, 7212 10 100 0, 7212 10 900 0,  
7212 20 000 0, 7212 30 000 0, 7212 40 200 0, 7212 40 800 0, 7212 50 200 0, 7212 50 300 0,  
7212 50 400 0, 7212 50 610 0, 7212 50 690 0, 7212 50 900 0, 7212 60 000 0, 7225 91 000 0,  
7225 92 000 0, 7225 99 000 0, 7226 99 100 0, 7226 99 300 0, 7226 99 700 0.  
The codes of CN of FEA EAEU are given for information purposes only.  
3. Provide  the reasons for the initiation of investigation  
The investigation was initiated on the basis of results of consideration of the application filed by 
Eurasian Economic Union (hereinafter Union) producers of certain flat -rolled steel products.  
3.1. Hot -rolled steel products  
The information in the application indicates that total imports of hot -rolled steel products increased 
both in absolute and relative terms. Total imports in absolute terms increased by 25,9 % in the period 
2015 – 2017, with the main increa se of 45,8 % in 2017 compared with 2016. The market share of 
total imports increased by 1,2 percentage points in the period 2015 – 2017 and by 1,8 percentage 
points in 2017 compared with 2016. The increase in imports appear to be the result of unforeseen 
developments such as the global overcapacity in steel making and trade measures adopted by a 
series of third countries during the last years in the context of that global overcapacity.  
There is also sufficient evidence in the application showing that the volume and the  prices of imports 
of hot -rolled steel products are threatening to cause significant overall impairment of the position of 
the Union industry. In particular, the market share of the Union industry  decreased in the period 
2015 – 2017 and in 2017 compared wi th 2016. In addition, even though the import prices were 
throughout the period higher than the Union industry’s sales prices, the price gap narrowed 
significantly in the period 2015 – 2017. The narrowing price gap has had a negative impact on the 
Union ind ustry’s sales prices resulting in a decline in the level of profitability in 2017 compared with 
2016.  
The state of the Union industry in the period 2015 – 2017, and specifically in 2017, indicates that 
the Union industry is vulnerable to a further increas e in imports, which is likely to be imminent given 
the context of an overall steel overcapacity, the increasing number of trade defence measures taken 
by third countries on steel products, ongoing safeguard investigations , the recent measures under 
Section  232 of the Trade Expansion Act of 1962 adopted by the United States of America, and, 
consequently, trade diversion.  
For more details on the negative impact of imports of hot -rolled steel products on the state of the 
Union industry in the period 2015 – 2017 and the reasons for the initiation of the investigation please 
refer to the Notice of Initiation.  
3.2. Cold -rolled steel products  
The information in the application indicates that total imports of cold -rolled steel products increased 
both in absolute an d relative terms. Total imports in absolute terms increased by 38,4 % in the period 
2015 – 2017, with the main increase of 23,1 % in 2017 compared with 2016. The market share of 
total imports increased by 1,3 percentage points in the period 2015 – 2017 and b y 0,6 percentage 
points in 2017 compared with 2016. The increase in imports appear to be the result of unforeseen 
developments such as the global overcapacity in steel making and trade measures adopted by a 
series of third countries during the last years i n the context of that global overcapacity.  G/SG/N/6/KAZ/1  
 
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  There is also sufficient evidence in the application showing that the volume and the prices of cold -
rolled steel products are threatening to cause significant overall impairment of the position of the 
Union indust ry. In particular, this evidence shows that imports of cold -rolled steel products have had 
a negative impact on the market share of the Union industry in the period 2015 – 2017 and in 2017 
compared with 2016. In addition, even though the import prices were  throughout the period 2015 
– 2016 higher than the Union industry’s sales prices, the price gap narrowed significantly in the 
period 2015 – 2016, after which in 2017 the import prices became lower than the Union industry’s 
sales prices. The narrowing price  gap in the period 2015 – 2016 and the lower import prices in 2017 
have had a negative impact on the Union industry’s sales prices resulting in a decline in the level of 
profit and profitability in 2017 compared with 2016.  
The state of the Union industry i n the period 2015 – 2017, and specifically in 2017, indicates that 
the Union industry is vulnerable to a further increase in imports, which is likely to be imminent given 
the context of an overall steel overcapacity, the increasing number of trade defence measures taken 
by third countries on steel products, ongoing safeguard investigations, the recent measures under 
Section 232 of the Trade Expansion Act of 1962 adopted by the United States of America, and, 
consequently, trade diversion.  
For more details o n the negative impact of imports of cold -rolled steel products on the state of the 
Union industry in the period 2015 – 2017 and the reasons for the initiation of the investigation please 
refer to the Notice of Initiation.  
3.3. Coated steel products  
The inf ormation in the application indicates that total imports of coated steel products increased 
both in absolute and relative terms. Total imports in absolute terms increased by 4,3 % in the period 
2015 – 2017, with the main increase of 4,2 % in 2017 compared wi th 2016. The market share of 
total imports increased by 0,3 percentage points in 2017 compared with 2016. The increase in 
imports appear to be the result of unforeseen developments such as the global overcapacity in steel 
making and trade measures adopted by a series of third countries during the last years in the context 
of that global overcapacity.  
There is also sufficient evidence in the application showing that the volume and the prices of imports 
of coated steel products are threatening to cause signif icant overall impairment of the position of 
the Union industry. In particular, this evidence shows that imports of coated steel products have 
had a negative impact on the market share of the Union industry in 2017 compared to 2016. In 
addition, even though  the import prices were throughout the period higher than the Union industry’s 
sales prices, the price gap narrowed significantly in the period 2015 – 2017. The narrowing price 
gap has had a negative impact on the Union industry’s sales prices resulting in  a decline in the level 
of profit and profitability in the period 2015 – 2017 and in 2017 compared with 2016.  
The state of the Union industry in the period 2015 – 2017, and specifically in 2017, indicates that 
the Union industry is vulnerable to a further increase in imports, which is likely to be imminent given 
the context of an overall steel overcapacity, the increasing number of trade defence measures taken 
by third countries on steel products, ongoing safeguard investigations, the recent measures under 
Section 232 of the Trade Expansion Act of 1962 adopted by the United States of America, and, 
consequently, trade diversion.  
For more details on the negative impact of imports of coated steel products on the state of the Union 
industry in the period 2015 – 2017 and the reasons for the initiation of the investigation please refer 
to the Notice of Initiation.  
4. Provide a point of contact for the investigation and identify the preferred means for 
corresponding  
Department for Internal Market Defence (DIMD)  
Eurasian Economic Commission  
3/5, Smolensky boulevard  
Moscow, 119121, Russia  
Tel +7 (495) 669 -24-00 # 1309, # 3097, # 3223, #1272  
E-mail: tradedefence@eecommission.org . G/SG/N/6/KAZ/1  
 
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5. Provide the deadlines and procedures for importers, exporters and other interested 
parties to present evidence and their views  
In accordance with the Protocol on Application of Safeguard, Anti -Dumping and Countervailing 
Measures to Third Countries (Annex №  8 to the Treaty on the Eu rasian Economic Union of 
29.05.2014), interested parties may declare their intention to seek participant status not later than 
25 days from the date of initiation of the investigation. Participants to the safeguard investigation 
have the right to request a ccess to the non -confidential file and participate in public hearings.  
The participants to the safeguard investigation may request for a public hearing within 45  days from 
the date of initiation of the investigation.  
Interested parties should submit commen ts within 60 days from the date of the initiation of the 
investigation in writing in the Russian language to the following address:  
Department for Internal Market Defence (DIMD)  
Eurasian Economic Commission  
3/5, Smolensky boulevard  
Moscow, 119121, Russia  
E-mail: tradedefence@eecommission.org.  
 
 
__________