G/SG/N/7/MY S/3 
G/SG/N/11/MYS/3  
 
29 September  2016 
(16-5203) Page: 1/2 
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER A RTICLE 12.4 OF THE A GREEMENT ON SAFEGUAR DS 
BEFORE TAKING A PROV ISIONAL SAFEGUARD ME ASURE   
REFERRED TO IN ARTIC LE 6 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
MALAYSIA  
(Steel Wire Rod and Deformed Bar i n Coil ) 
 
The following communication, dated 28 September 2016 , is being circulated at the request of the 
delegation of Malaysia . 
 
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(In continuation to documents G/SG/N/6/MYS/ 5 dated 2  June 2016)  
 
1. Background  
 
On 29  May 2016, Malaysia initia ted a safeguard investigation on Steel Wire Rod and Deformed Bar 
in Coil  (hereinafter referred to as "products under investigation") imported from various countries.  
 
2. Products under investigation and tariff classification  
 
Product s under investigation are  hot-rolled alloyed or non -alloy wire rods and Deformed -Bar-In-
Coil in regularly or in irregularly wound coils (excluding carbon content ≥ 0.60% and diameter 
greater than 16.0 mm).  The products are classified under t he Harmonised System Code 
(H.S. Code) Number 7213.10 000, 7213.91 000, 7213.9 9 000 and 7227.90 000 and 
ASEAN  Harmonised Tariff Nomenclature (AHTN) 7213.10 00 00, 7213.91 10 00, 7213.91 20 00, 
7213.91 90 00, 7213.99 10 00, 7213.99 20 00, 7213.99 90 00 and 7227.90 00 00.  The H.S. Code 
and AHTN Number are only for information and shall have no binding effect on the classification of 
the products.  
 
3. Evidence of Serious Injury caused b y increased imports  
 
There is evidence of increase in imports in both absolute and relative terms. The imports of the 
product concerned increased in imports of the product concerned to Malaysia by 35.98% from 
786,608MT in Year 1 to 1,069,630MT in Year 2 an d continued to increase by 23.07% in Year 3. 
The imports have increased sharply by 67.35% from Year 1 to Year 3. In relative term, it is 
observed that the proportion of total imports in relation to domestic production continually 
increased from 83.16% in Y ear 1 to 122.16% in Year 2 and furt her increased to 290.94% 
during  Year 3  (Year 1: 1 October 2012 – 30 September 2013; Year 2: 1 October 2013 – 
30 September 2014; Year 3:  1 October 2014 – 30 September 2015).  
 
The increase in imports has caused serious inju ry to the Domestic Industry in terms of market 
share, decline in domestic sales, low production and capacity utilisation, decline prof itability, 
decline in cash flow  and reduction in employment and wages . 
 G/SG/N/7/MYS/3 • G/SG/N/11/MYS/3  
 
- 2 - 
 
  4. Proposed provisional safeguard measure  
 
A provisio nal safeguard duty was imposed at the rate of 13.90 % of CIF price effective from  
27 September 2016. However, the product concerned  which imported for the purpose of 
automotive, electrical & electronic, oil & gas and earth quake resilience construction industry end 
usage of all grades and specifications are exempted from the  provisional safeguard dut y. The 
imports from developing countries except the People’s Republic of China , Republic of Korea and 
Singapore are not subjected to the provisional safeguard duty. 
 
5. Expected duration of the provisional safeguard measure  
 
The provisional safeguard duty will remain in force for a period not exceeding 
two hundred  (200)  days from the date of enforcement of the provisional safeguard measure . 
 
6. Further information  
 
Information on the decision of the imposition of the provisional safeguard duty on the product s 
under investigation is accessible at the website of the Ministry of International Trade and Industry 
(www.miti.gov.my ). Furth er information and comments should be sent to:  
 
Trade Practices Section  
Ministry of International Trade and Industry (MITI)  
Level 9, Menara MITI, No. 7, Jalan Sultan Haji Ahmad Shah  
50480 Kuala Lumpur  
Malaysia  
 
Telephone Number: (+603) 6208 4632  
Facsimile Number: (+603) 6211 4429  
Email Address: alltps@miti.gov.my   
 
 
 
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