G/SG/N/8/THA/2/Suppl.3  
G/SG/N/10/THA/2  
G/SG/N/11/THA/2/Suppl.2  
 
25 September 2013  
(13-5138)  Page: 1/6  
Committee on Safeguards  Original: English  
 
  NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) OF  
THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
THAILAND  
(Hot Rolled Steel Flat Products with Certain Amounts of Alloying Elements) 
The following communication, dated 23 September 2013, is being circulated at the request of the 
Delegation of Thailand.  
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  Pursuant to Article 12.1(b) and 12.1(c) of the Agreement on Safeguards , Thailand provides 
notification to the Committee on Safeguards on findings of serious injury or threat thereof caused 
by increased imports and notification of proposed safeguard measures. 
 
On 22 November 2012, the Department of Foreign Trade, Ministry of Commerce of Thailand issued 
the Notice of Initiation relating to serious injury to the domestic producers of products like or directly competing with imported hot rolled steel flat products with certain amounts of alloying 
elements such as boron, chromium, etc, in coils and not in coils  (the "products concerned"), 
originating in or exported from various countries into Thailand. The Notice of Initiation was published in the Thai Government Gazette on 27 November 2012.  
Later, the Committee on Safeguard Measures of Thailand (the "Committee") issued the Committee 
Notification on the Imposition of Provisional Safeguard Measures against Increased Imports of Hot Rolled Steel Flat Products with Certain Amounts of  Alloying Elements such as Boron, Chromium, 
etc., in Coils and Not in Coils B.E. 2556 (2013)  (the "Committee Notification") on 
22 February 2013 which was published in the Thai Government Gazette on 26 February 2013. The provisional safeguard duty imposed under such noti fication was applied at the rate of 33.11% of 
C.I.F. price for a period not exceeding 200 days, effective as from 27 February 2013, with the 
exemption of imports of the products concerned originating in or exported from certain developing countries. In addition, the exemption of imposition  of provisional safeguard duty was granted to 
certain importers importing the products concerned into Thailand for cold rolling process; for the 
automobile industry; for hardening process and as  special grade steels; and, import for export, 
i.e., the imported products concerned that are in tended to be manufactured, further processed or 
incorporated into a finished product that will be exported from Thailand under the Industrial Estate 
Authority of Thailand Act; or, the Investment Promotion Act; or, the Customs Act. 
 On 31 May 2013, the Committee Notification (No.2) B.E. 2556 (2013) was issued and was 
published in the Thai Government Gazette on 6 Ju ne 2013 in order to add the names of importers 
of the products concerned imported into Thailand for cold rolling process; for hardening process and as special grade steels; and, to add the stan dards and steel grades of the products concerned 
classified as special grade steels, to be exempt ed from the imposition of provisional safeguard 
duty, effective as from 7 June 2013. G/SG/N/8/THA/2/Suppl.3 • G/SG/N/10/THA/2 • G/SG/N/11/THA/2/Suppl.2 
 
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On 18 July 2013, the Committee Notification (No.3) B.E.2556 (2013) was issued and was published in the Thai Government Gazette on 24 July 2013 with the intention to 1) drop the Russian Federation from the list of excluded deve loping countries; 2) amend the list of importers 
of the products concerned imported into Thailand for cold rolling process and for hardening process 
and as special grade steels; and 3) add the standa rds and steel grades of the products concerned 
classified as special grade steels, to be exempt ed from the imposition of provisional safeguard 
duty, effective as from 25 July 2013. 
 The initiation of the investigation, the imposition of provisional measures as well as the decision not to apply provisional measures to the products concerned originating in or exported from 
certain developing countries have been notified to the Committee on Safeguards 
in G/SG/N/6/THA/2 (4 December 2012), G/SG /N/7/THA/2-G/SG/N/8/THA/2-G/SG/N/11/THA/2 
(13 February 2013), G/SG/N/7/THA/2/Suppl.1-G/SG/N/8/THA/2/Suppl.1 (24 June 2013) and 
G/SG/N/7/THA/2/Suppl.2-G/SG/N/8/THA/2/Suppl.2-G/SG/N/11/THA/2/Suppl.1 (2 August 2013). 
 Consistent with Article 12.2 of the Agreement on Safeguards , this notification contains all pertinent 
information relating to the products concerned on which definitive safeguard measures are 
imposed. 
 
1  EVIDENCE OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS 
During the period of investigation commencing from 1 January 2009 to 30 September 2012, the 
volume of imports of the products concerned into Thailand increased significantly both in absolute 
terms and in relation to domestic production in Thailand. As a result of significant surge in imports, 
the domestic industry has suffered serious injury in the form of the decrease in the level of the market share of the domestic market, sales volumes, production, capacity utilization, employment 
and profitability. Evaluation of the overall position of the domestic industry in light of all the 
relevant factors having a bearing on the situation of the domestic industry shows "a significant overall impairment". Besides, the effects of the following other factors have been identified and their nature and extent has been examined: dome stic demand/consumption, productivity of the 
domestic industry and foreign investment of iron and steel making business in the UK. It is noted 
that neither domestic demand/consumption nor productivity of the domestic industry decreased during the period of investigation. Hence, serious injury inflicted on the domestic industry is not 
mainly attributable to such other factors. Instea d, when considering the increased imports and the 
decline of domestic selling prices those imports have caused, there can be no doubt that there is a genuine causal link between increased imports and the serious injury suffered by the domestic 
industry. 
 2  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION 
The products concerned have been imported into Thailand in such increased quantities and under 
such conditions in absolute terms as well as compared to the domestic production as to cause or threaten to cause serious injury to the domestic in dustry. Import figures are indicated in the tables 
below. 
 Absolute Term: 
Unit: Metric Ton 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Total Imports 234,124 403,762 793,810 534,337 938,484 
% Change  72.46% 96.60%  75.64% 
 
It is concluded that the products concerned are being imported into Thailand in quantities that have increased suddenly, sharply and significantly in the recent past. The surge in imports 
between 2009 and 2010 of 72.46% in absolute te rms is sudden, sharp and significant, and is 
compounded when imports increased further by 96.60% in 2011 in comparison with the ones in G/SG/N/8/THA/2/Suppl.3 • G/SG/N/10/THA/2 • G/SG/N/11/THA/2/Suppl.2 
 
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  the previous year. When considering imports in the nine-month period of 2011 and 2012, it is 
noted that imports also increased remarkably by 75.64%.  Relative Term: 
Unit: Metric Ton 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Total Imports 234,124 403,762 793,810 534,337 938,484 
Domestic Production 3,315,017 3,734,383 3,198,729 2,496,121 2,209,244 
Total Imports relative to Domestic Production 7.06% 10.81% 24.81% 21.41% 42.48% 
 
In relative term, it is observed that the proportion of total imports in relation to domestic production continually increased from 7.06% in 2009 to 24.81% in 2011. When considering the figures in the nine-month period of 2011 and 2012, the relative imports to domestic production 
also surged significantly from 21.41% to 42.48%. 
 
3  EVIDENCE OF SERIOUS INJURY AND THREAT THEREOF 
A substantive evaluation of the effect of all the relevant factors having a bearing on the situation 
of the domestic industry has been conducted. It  has been concluded that a sufficient number of 
the injury indicators attest to injury in a manner that points to "significant overall impairment" in 
the position of the domestic industry as reflected by the following facts: 
 
a. Market Share of Imports 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Market Share of Imports (%) 5.44% 6.89% 13.66% 12.03% 20.06% 
 
The domestic industry has lost its market share to imports of the products concerned as can be 
evidenced by a continual increase of the market  share of imports. In 2009, market share of 
imports accounted for 5.44% of the domestic market but continually rose to 13.66% in 2011. Especially, when considering the nine-month pe riod of 2011 and 2012, market share of imports 
remarkably surged from 12.03% to 20.06%. 
 
b. Domestic Sales 
Indexed Form 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Domestic Sales 100 119.44 107.59 100 90.27 
 
The domestic sales increased by 19.44% in 2010 and then adversely reduced by 11.85% in 2011 
compared with 2009 as the base year. During January to September 2012, domestic sales 
decreased by 9.73% in comparison with the same corresponding period of 2011.  G/SG/N/8/THA/2/Suppl.3 • G/SG/N/10/THA/2 • G/SG/N/11/THA/2/Suppl.2 
 
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  c. Domestic Production 
Indexed Form 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Production 100 112.68 96.52 100 88.51 
 
Domestic production increased by 12.68% in 2010 but then declined by 16.16% from the previous 
year. Overall, it reduced by 3.48% during the three-year period from 2009 to 2011. During 
January to September 2012, domestic production decreased by 11.49% in comparison with the 
same corresponding period of 2011. 
 
d. Productivity 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Productivity (%) 91.32% 92. 31% 90.96% 90.80% 92.96% 
 
There was no significant change in the level of productivity of the domestic industry but remained 
relatively stable around 90-93% over the injury period. 
 
e. Capacity Utilization 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Capacity Utilization (%) 42% 47% 40% 42% 37% 
 
Capacity utilization of the domestic industry  increased from 42% in 2009 to 47% in 2010 but 
declined to 40% in 2011. During January to September 2012, capacity utilization decreased to 37% from 42% in the same corresponding period of 2011.  
f. Profit/Loss 
Index Form 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Profit/Loss (100) (69.10) (18.90) (100) (234.21) 
 
The profitability of the domestic industry has deteriorated to such a situation that it is now suffering financial losses, although showing a sign of positive improvement between 2009 
and 2011. However, when considering the nine-mon th period of 2012 in comparison with the same 
corresponding period of 2011, the profitability of the domestic industry even steeply deteriorated 
as it suffered financial losses more than double times, clearly showing the effect of increased imports. 
 
g. Employment 
ITEM 2009 2010 2011 2011 
(Jan.-Sep.) 2012 
(Jan.-Sep.) 
Employment 100 99.59 97.04 100 94.70 
 G/SG/N/8/THA/2/Suppl.3 • G/SG/N/10/THA/2 • G/SG/N/11/THA/2/Suppl.2 
 
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  The level of employment shows a negative tren d by slightly decreasing around 3% during 
2009-2011. Comparing the nine-month period of 2011 and 2012, employment level also reduced 
by 5.3%.  
4  PRECISE DESCRIPTION OF THE PRODUCTS CONCERNED 
The products concerned are hot rolled steel flat products with certain amounts of alloying elements 
such as boron, chromium, etc., in coils and not in  coils, with or without patterns in relief, of a 
thickness of 0.9 – 50.0 mm. and a width 100 – 3,048 mm. The products concerned are currently 
classified under the Thai Customs Tariff Code at 36 subheadings: 7225.30.90.011, 7225.30.90.012, 7225.30.90.013, 7225.30.90.014, 7225.30.90.021, 7225.30.90.022, 7225.30.90.023, 7225.30.90.024, 7225.30.90.090, 7225.40.90.011, 7225.40.90.012, 
7225.40.90.013, 7225.40.90.014, 7225.40.90.021, 7225.40.90.022, 7225.40.90.023, 
7225.40.90.024, 7225.40.90.090, 7226.91.10.011, 7226.91.10.012, 7226.91.10.013, 7226.91.10.014, 7226.91.10.021, 7226.91.10.022, 7226.91.10.023, 7226.91.10.024, 
7226.91.10.090, 7226.91.90.011, 7226.91.90.012, 7226.91.90.013, 7226.91.90.014, 
7226.91.90.021, 7226.91.90.022, 7226.91.90.023, 7226.91.90.024, 7226.91.90.090, originating in or exported from various countries. Specifically excluded from the scope of the products 
concerned are hot rolled steel flat products with certain amounts of alloying elements used in cold 
rolling process, hardening process and the automobile industry.  5  PRECISE DESCRIPTION OF THE PROPOSED MEASURE 
It is proposed that definitive safeguard measures be taken in relation to increased imports in order 
to remedy or prevent the serious inju ry suffered by the domestic industry. 
 
The Committee on Safeguard Measures of Thailand , the competent authority, has recommended to 
impose the safeguard duty for a whole period of three years starting from 27 February 2013, i.e., 
the date when the provisional measures took effect, until 26 February 2016. In accordance with 
the relevant provisions of the Thai Safeguard Measures on Increased Imports Act B.E.2550 (2007), 
which refer to Thailand’s obligations under Article XIX of the GATT and the WTO Agreement on Safeguards, these measures shall be progressively liberalized during the period of their validity as follows: 
 
Duration Definitive Safeguard Duty 
15 September 2013 – 26 February 2014 44.20% of C.I.F. price 
27 February 2014 – 26 February 2015 43.57% of C.I.F. price 
27 February 2015 – 26 February 2016 42.95% of C.I.F. price 
 The definitive measures will not be applied against the products concerned originating in or 
exported from any developing country as long as its share of imports of the products concerned into Thailand does not exceed 3%. The list of developing countries excluded from the definitive 
measure is attached herewith. 
 In addition, the exemption of imposi tion of definitive safeguard measures will be granted to certain 
importers importing the products concerned into Thailand for cold rolling process; for the 
automobile industry; for hardening process and as  special grade steels; and, import for export, 
i.e., the imported products that are intended  to be manufactured, further processed or 
incorporated into a finished product that will be exported from Thailand under the Industrial Estate 
Authority of Thailand Act; or, the Investment Promotion Act; or, the Customs Act. 
 6  FURTHER INFORMATION 
The Final Findings has been published in the Thai Government Gazette of Thailand on 
13 September 2013. G/SG/N/8/THA/2/Suppl.3 • G/SG/N/10/THA/2 • G/SG/N/11/THA/2/Suppl.2 
 
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  ANNEX 
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS TERRITORIES EXCLUDED FROM 
THE IMPOSITION OF DEFINITIVE SAFEGUARD MEASURE ON HOT ROLLED STEEL FLAT 
PRODUCTS WITH CERTAIN AMOUNTS OF ALLOYING ELEMENTS SUCH AS BORON, 
CHROMIUM, ETC., IN COILS AND NOT IN COILS  
East & Southern Africa West Af rica North Africa South Asia 
Angola 
Botswana Burundi 
Comoros 
Congo. Dem. Rep. Djibouti Eritrea Ethiopia 
Kenya 
Lesotho Madagascar Malawi 
Mauritius 
Mayotte Mozambique Namibia Reunion 
Rwanda 
Seychelles Somalia South Africa Sudan 
Swaziland 
Tanzania Uganda Zambia Zimbabwe Benin 
Burkina Faso Cameroon 
Cape Verde 
Central African Rep. Chad Congo, Rep. Cote d' Ivoire 
Gabon 
Gambia, The Ghana Guinea 
Guinea, Bissau 
Liberia Mali Mauritania Niger 
Nigeria 
Sao Tome & Principe Senegal Sierra Leone Togo 
 
 Algeria
 
Egypt, Arab Rep. 
Libya 
Morocco 
Tunisia Afghanistan 
Bangladesh Bhutan 
British Indian Ocean 
Territory East Timor Maldives Nepal 
Pakistan 
Sri Lanka   
 
    
 
    
 
   
Europe & Central Asia Middle East  Americas  Asia & Pacific  
Albania Armenia 
Azerbaijan 
Belarus Bosnia & Herzegovina Bulgaria 
Georgia 
Kazakhstan Kosovo Kyrgyz Republic Lithuania 
Macedonia, FYR 
Moldova Montenegro Romania Serbia 
Tajikistan 
Turkey Turkmenistan Ukraine Uzbekistan 
Yugoslavia, Fed. Rep. Iran, Islamic Rep.
 
Iraq 
Jordan 
Lebanon Syrian Arab Rep. 
West Bank & Gaza 
Yemen, Rep. Anguilla 
 
Antigua & Barbuda 
Argentina 
Belize Bolivia Brazil 
British Virgin Islands 
Chile Colombia Costa Rica Cuba 
Dominica 
Dominican Rep. Ecuador El Salvador Falkland Is. (Malvinas) 
French Guiana 
Grenada Guadaloupe Guatemala Guyana 
Haiti 
Honduras Jamaica Martinique 
Mexico 
Montserrat Nicaragua Norfolk Island Panama 
Paraguay 
Peru St. Helena St. Kitts & Nevis St. Lucia 
St. Pierre & Miquelon 
St. Vincent & the Grenadines Suriname Uruguay Venezuela American Samoa 
Cambodia 
Chinese Taipei  
Christmas Is. Cocos (Keeling) Islands Cook Is. 
Fiji 
Indonesia Johnston Islands Kiribati Korea, Dem. Rep. 
Lao PDR 
Malaysia Marshall Islands Micronesia, Fed. Sts. Midway Is. 
Mongolia 
Myanmar Nauru Niue Palau 
Pitcairn Is. 
Papua New Guinea Philippines Samoa 
Solomon Islands 
Tokelau Tonga Tuvalu Vanuatu 
Vietnam 
Wake Island Wallis & Futuna Island   
   
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