G/SG/N/7/THA/3  
G/SG/N/11/THA/3  
 
28 Mai 2014  
(14-3169)  Page: 1/7  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICL E 12.4 OF THE AGREEMENT 
ON SAFEGUARD BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE REFERRED 
TO IN ARTICLE 6 
 
NOTIFICATION PURSUANT TO ARTICLE 9, 
FOOTNOTE 2 OF THE AGREEMENT 
ON SAFEGUARDS 
THAILAND  
(Non Alloy Hot Rolled Steel Flat Products in Coils and Not in Coils) 
The following communication, dated 27 May 2014, is  being circulated at the request of the 
Delegation of Thailand.  
_______________ 
  
Pursuant to Article 12.4 of the WTO Agreement on Safeguards, Thailand hereby notifies the 
Committee on Safeguards of the results of its preliminary determination on the investigation on the increased imports of non alloy hot rolled steel flat products in coils and not in coils before 
taking a provisional safeguard measure under Article 6 of the Agreement on Safeguards. Pursuant 
to Article 9, footnote 2 of the Agreement on Safeguards, Thailand also notifies the Committee on Safeguards of a decision not to apply the provisional safeguard measure to products concerned originating in certain developing countries. The initiation of an investigation and reasons for it was 
notified with the document G/SG/N/6/THA/4
 dated 3 February 2014. 
 1  NOTIFICATION UNDER ARTICLE 12.4 BEFORE TAKING A PROVISIONAL SAFEGUARD 
MEASURE 
1.1  Product subject to the proposed provisional safeguard measure Non alloy hot rolled steel flat products in coils and not in coils, of a thickness of 0.9 – 50.0 mm. 
and a width of 600.0 – 3,048.0 mm., currently classified under the Thai Customs Tariff Code at 
subheadings: 7208.36.00.031,
 7208.36.00.032, 7208.36.00.033, 7208.36.00.090, 
7208.37.00.041, 7208.37.00.042, 7208.37.00.043, 7208.37.00.090, 7208.38.00.041, 7208.38.00.042, 7208.38.00.043, 7208.38.00.090, 7208.39.00.041, 7208.39.00.042, 
7208.39.00.043, 7208.39.00.090, 7208.51.00.090, 7208.52.00.090, 7208.53.00.011, 
7208.53.00.012, 7208.53.00.013, 7208.53.00.090, 7208.54.00.011, 7208.54.00.012, 7208.54.00.013, 7208.54.00.090 
 
1.2  Proposed provisional safeguard measure 
It is proposed that provisional safeguard measure be taken in relation to increased imports of the 
product concerned in the form of a tari ff increase of 34.01% of CIF price.  
 G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  1.3  Entry into force of the proposed provisional safeguard measure 
The provisional safeguard measure is proposed to enter into force on the day following the 
publication of the Notification of the Committee on Safeguard Measures of Thailand regarding the imposition of provisional safeguard measure in the Royal Gazette. 
 
1.4  Expected duration of the provisional safeguard measure 
The proposed provisional safeguard measure will remain in force for a period not exceeding 
two hundred (200) days.  
 1.5  The Basis for: 
i. Making a preliminary determination, as provided for in Article 6 that increased 
imports have caused or are threatening to cause serious injury  
The evidence relating to the serious injury suffere d by the domestic industry as a result of the 
increase in imports of the product concerned had been notified with the document G/SG/N/THA/4 
dated 3 February 2014. Information on the changes in the level of imports and certain economic 
indicators of the domestic industry that were recorded during 2010 - 2013 is provided below. 
 
CHANGE IN IMPORTS 
 There is an evidence of an absolute increase in imports of the product concerned to Thailand 
during the period of 2010-2013. Such absolute increase can be shown in the table below. 
 
Absolute Term: 
 
Unit: Metric Ton 
Imports 2010 2011 2012 2013 
Absolute Imports 69,489 112,717 276,749 942,291 
% of Change - 62.21% 145.52% 240.48 
Source: Customs Statistics 
 
It is concluded that the product concerned is being imported into Thailand in quantities that have increased suddenly, sharply and significantly in the recent past. The surge in imports 
between 2010 and 2011 of 62.21% in absolute te rms is sudden, sharp and significant, and is 
compounded when imports increased further with even higher percentage by 145.52% and 240.48% in 2012 and 2013 respectively compared with the ones in the preceding year. 
 
Relative Term: 
 
Unit: Metric Ton  
Imports 2010 2011 2012 2013 
Absolute Imports 69,489 112,717 276,749 942,291 
Domestic Production 3,736,764 3,200,270 2,874,625 2,844,253 
Imports/Domestic Production 1.86% 3.52% 9.63% 33.13% 
 
In relative term, it is observed that the proportion of total imports in relation to domestic 
production continually increased from 1.86% in 2010 to 3.52% and 9.63% in 2011 and 2012 
respectively. In 2013, the relative imports to domestic production were recorded at 33.13%, substantially surged from 9.63% in the preceding year. 
 G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  MAJOR EXPORTING MEMBERS OF IMPORTS OF THE PRODUCT CONCERNED 
 Unit: Metric Ton  
Country 2010 2011 2012 2013 
Republic of India 930 67 3,932 315,881 
Russian Federation 10,098 - 9,854 143,333 
Australia 1,220 2,629 64,752 124,190 
Republic of Korea 11,064 59,771 53,881 121,925 
Taiwan 1,363 1,643 18,290 75,351 
Others 44,814 48,607 126,040 161,611 
Total 69,489 112,717 276,749 942,291 
Source: Customs Statistics 
 
Imports of the product concerned, mainly exported from the Republic of India, Russian Federation, 
Australia, Republic of Korea and Taiwan were recorded with their substantial quantities in 2013 in 
comparison with their relatively slight volumes in  2010. The share of imports from these exporting 
countries in relation to the total imports accounted for 33.52%, 15.21%, 13.18%, 12.94% 
and 8%, respectively in 2013. 
 ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY 
 
A preliminary analysis to assess the impacts of increased imports of the product concerned on the situation of the domestic industry was carried ou t. 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 2010 2011 2012 2013 
Market Share (%) 2% 3% 7% 21% 
 
The domestic industry has lost its market share to imports of the product concerned as can be 
evidenced by a continual increase of the market  share of imports. In 2010, market share of 
imports accounted for 2% of the domestic market but continually rose to 3% and 7% in 2011 and 2012 respectively. Especially, when considering the last year period of 2013, market share of 
imports remarkably surged to 21% of the domestic market. 
 
b. Domestic Sales 
Indexed Form 
ITEM 2010 2011 2012 2013 
Domestic Sales 100 90.26 85.73 79.21 
 
Overall, the domestic sales continually decrease d by 20.79% during the four-year period from 
2010 to 2013. 
 
c. Domestic Production 
Indexed Form 
ITEM 2010 2011 2012 2013 
Domestic Production 100 85.64 76.93 76.12 
 
Overall, the domestic production continually declin ed by 23.88% during the four-year period from 
2010 to 2013. 
 
d. Productivity 
ITEM 2010 2011 2012 2013 
Productivity (%) 92% 91% 94% 94% 
 G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  There was no significant change in the level of productivity of the domestic industry between 2010 
and 2011 with a slight decrease. Afterwards, the productivity level increased and remained relatively stable around 94% during the last two preceding years.   
e. Capacity Utilization 
Indexed Form 
ITEM 2010 2011 2012 2013 
Capacity Utilization (%) 47% 40% 36% 36% 
 
With the decrease in the domestic production, the capacity utilization rate continually fell from 47% to 36% over the injury period.  
 
f. Profit/Loss 
Indexed Form 
ITEM 2010 2011 2012 2013 
Profit/Loss (100) (53.46) (181.96) (58.67) 
 
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 over the injury period. 
Especially in 2012, the profitability of the domest ic industry steeply deteriorated as it suffered 
financial losses almost two times in comparison with the one in 2010 as the base year, clearing showing the adverse effect of increased imports. 
 
g. Employment 
Indexed Form 
ITEM 2010 2011 2012 2013 
Employment 100 98.42 93.46 88.13 
 
The level of employment shows a negative trend by  continually decreasing around 12% during the 
injury period of 2010 – 2013.  
 CONCLUSION 
 
In the preliminary analysis, the investigating authority has concluded that the product concerned is being imported into Thailand in quantities that have increased suddenly, sharply and significantly 
in the recent past in both an absolute term and a relative term to domestic production. 
 
Furthermore, the existence of the negative developments in the economic indicators of the domestic industry such as a decline in domestic market share contributing to a decrease in 
domestic production, a decrease in domestic sales and financial losses, suggests that the domestic 
industry is suffering from the serious injury caused by the increased imports of the product 
concerned. 
 
ii. Determining the existence of critical circumstances where delay would cause damage 
which it would be difficult to repair 
As mentioned above, increased imports have caused substantial damages to the domestic 
industry, notably in terms of the decrease in the level of domestic sales, the level of production, 
the level of capacity utilization, the level of employment and the level of profitability.  
Furthermore, the market share of the domestic industry had continuously declined 
during 2010 - 2013. In 2011, its market share reduced to 76% from 79% in 2010 and further 
reduced to 73% in 2012. Particularly, the market sh are of the domestic industry during the most 
recent period of 2013 apparently decreased to 60% from 73% during the same corresponding 
period of 2012. If this situation continues, the dome stic industry will inevitably lose more market 
share to imports of the product concerned and face serious losses.   G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned could negatively affect the situation of the domestic industry, the provisional safeguard measure is proposed to eliminate any possible uncertainty that could come out during an on-going investigation for determining the need for the imposition of definitive safeguard measure. The 
domestic industry is at risk of having to suspend their business activities if provisional safeguard 
measure is not quickly adopted. To achieve this objective, the provisional safeguard measure shall be taken in the form of a tariff increase. 
 
2  NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT TO APPLY THE PROVISIONAL SAFEGUARD MEASURE TO PRODUCTS CONCERNED 
ORIGINATING IN CERTAIN DEVELOPING COUNTRIES 
The developing countries and separate customs territories in the list below are excluded from the 
imposition of the proposed provisional safeguard measure on non alloy hot rolled steel flat products in coils and not in coils as they export less than 3% of total imports to Thailand. G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  ANNEX  
LIST OF DEVELOPING COUNTRIES AND SEPARATE  CUSTOMS TERRITORIES EXCLUDED FROM THE 
IMPOSITION OF PROVISIONA L SAFEGUARD MEASURE ON 
NON ALLOY HOT ROLLED STEEL FLAT PRODUCTS IN COILS AND NOT IN COILS 
No. COUNTRY No. COUNTRY 
1. 
2. 3. 
4. 
5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 
16. 
17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 
28. 
29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 
40. 
41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 
52. 
53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 
64. 
65. Afghanistan 
Albania Algeria 
American Samoa 
Angola  
Anguilla Antigua and Barbuda Argentina Armenia Aruba Azerbaijan Bahamas Bahrain Bangladesh Barbados 
Belarus 
Belize Benin Bhutan Bolivia (Plurinational State of)  Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Brazil British Virgin Islands Brunei Darussalam Burkina Faso 
Burundi 
Cambodia Cameroon Cape Verde Cayman Islands Central African Republic Chad Chile China Colombia Comoros Congo 
Cook Islands 
Costa Rica Cote d’Ivoire Croatia Cuba Curacao Democratic People’s Republic of Korea Democratic Republic of the Congo Djibouti Dominica Dominican Republic Ecuador 
Egypt 
El Salvador Equatorial Guinea Eritrea Ethiopia Falkland Islands (Malvinas) Fiji French Polynesia Gabon Gambia Georgia Ghana 
Grenada 
Guam 66. 
67. 68. 
69. 
70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 
81. 
82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 
93. 
94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 
105. 
106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 
117. 
118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 
129. 
130. Guatemala 
Guinea Guinea-Bissau 
Guyana 
Haiti Honduras Hong Kong, Special Administrative Region of China
 
Indonesia Iraq Iran (Islamic Republic of) Jamaica Jordan Kazakhstan Kenya Kiribati 
Kuwait 
Kyrgyzstan  Lao People’s Democratic Republic Lebanon Lesotho Liberia Libya Macao, Special Administrative Region of China Madagascar Malawi Malaysia Maldives 
Mali 
Marshall Islands Mauritania Mauritius Mexico Micronesia (Federated States of) Mongolia Montenegro Montserrat Morocco Mozambique Myanmar 
Namibia 
Nauru Nepal New Caledonia Nicaragua Niger Nigeria Niue  Northern Mariana Islands Oman Pakistan Palau 
Panama 
Papua New Guinea Paraguay Peru Philippines Qatar Republic of Moldova Rwanda Saint Helena Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines 
Samoa 
Sao Tome and Principe G/SG/N/7/THA/3 • G/SG/N/11/THA/3 
 
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  No. COUNTRY No. COUNTRY 
131. 
132. 
133. 134. 135. 136. 137. 138. 139. 140. 141. 142. 
143. 
144. 145. 146. 147. 148. 149. 150. 151.  Saudi Arabia 
Senegal 
Serbia Seychelles Sierra Leone Singapore Sint Maarten (Dutch part) Solomon Islands Somalia South Africa South Sudan Sri Lanka 
State of Palestine 
Sudan Suriname Swaziland Syrian Arab Republic Tajikistan The former Yugoslav Republic of Macedonia Timor-Leste Togo 152. 
153. 
154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 
164. 
165. 166. 167. 168. 169. 170. 171. 172. Tokelau 
Tonga 
Trinidad and Tobago Tunisia Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Republic of Tanzania Uruguay 
Uzbekistan 
Vanuatu Venezuela (Bolivarian Republic of) Viet Nam Wallis and Futuna Islands Western Sahara Yemen Zambia Zimbabwe 
 
 
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