G/SG/N/8/JOR/8  
G/SG/N/10/JOR/8  
G/SG/N/11/JOR/4  
 
13 February 2013  
(13-0812)  Page: 1/6  
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION OF A PROPOSAL TO IMPOSE A MEASURE 
JORDAN  
(Bars and Rods of Iron and Steel) 
 
 The following communication, dated 8 February 2013, is being circulated at the request of the Delegation of Jordan. 
 
 
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 In accordance with Article 12.1(b) of the Agreement on Safeguards, Jordan hereby submits its notification on finding serious injury caused by increased imports of (Bars and Rods of Iron and 
steel) provided for under Jordanian tariff headings of 7213.105, 7213.206, 7214.105, 7214.205, 
7214.305, 7214.915, 7214.995, 7215.105, 7215.505, and 7215.905.  
1. and 2. Provide evidence of serious injury or threat thereof caused by increased 
imports and, provide information on whether th ere is an absolute increase in imports or 
an increase in imports relati ve to domestic production 
 
According to the investigation completed on 28/11/2012, The National Production Protection Directorate (NPPD) has determined that there was sufficient evidence that the increase of imports of the subject product had caused injury to the domestic industry producing like products during 
the period of investigation (2007-2011).  
 The following are the conclusions reached by NPPD: 
 
(a) Increased Imports 
Year 2007 2008 2009 2010 2011 
Volume (in ton) 16,372 37,385 74,646 107,023 130,382 
Absolute increase 
(base year) - 128% 356% 554% 696% 
Absolute increase  
(year to year) - 128% 100% 43% 22% 
 
The above table shows that imports had actually in creased, in absolute terms when compared to 
the year 2007 during POI, starting from the year 2008 when imports increased by 128%, and 
continued to increase massively in the following years as imports increased by 356% in 2009, and 
by 554%, 696% in the years 2010 and 2011 respectively. 
 G/SG/N/8/JOR/8 • G/SG/N/10/JOR/8 • G/SG/N/11/JOR/4 
 
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  Also the above table shows that imports had actually increased in absolute terms when comparing 
year to year. Imports increased by 100% in the year 2009, and by 43% in the year 2010, and by 
22% in the year 2011.  
 
Year 2007 2008 2009 2010 2011 
Relative Increase Ratio Index 
(imports to domestic production) 100% 104% 111% 122% 127% 
 
Imports also increased significantly in relative te rms. The above table indicates that the relative 
increase of imports relative to domestic producti on recorded very high rates during the POI. The 
index of relative increase ratio increased from 100% in 2007 to 104% in 2008 to 111% in 2009 to 
122% in 2010 until it reached 127% in 2011.  
NPPD demonstrates that the increase of imports was sudden, sharp and recent both in absolute 
term and relative to domestic production. Increase of imports occurred as a result of unforeseen developments and tariff concessions.  
(b) Serious Injury 
Year 2007 2008 2009 2010 2011 
Utilization rate of capaci ty (%) 52% 48% 48% 39% 39% 
Change in domestic production (%) - -9% -8% -26% -25% 
Change in gross profit (%) - -213% -124% -46% -24% 
Change in domestic sales (%) - -15% -4% -24% -17% 
Market share ratio index of the domestic 
industry 100% 96% 91% 83% 81% 
Change in productivity (%) - -6% -6% -19% -6% 
Change in employment (%) - -2 % -1.6% -9% -20% 
Change in stock (%) - 154% 90% 35% -36% 
 
Market share of the domestic industry declined significantly and seriously during the POI, the 
Market Share Ration Index of the domestic industry decreased from 100% in 2007 to 81% 
in 2011. The domestic industry lost significant market share due to the increasing of imports.  
 Production declined during the POI starting fr om the year 2008 by 9%, and decreased by 8% 
in 2009, and continued to decline in the years 2010 and 2011 compared to year 2007. 
 Domestic industry recorded sharp decline in gross profit throughout the POI when compared to the 
year 2007, as gross profit decreased in the years 2008, 2009, 2010 and 2011 by 213%, 124%, 
46% and 24% respectively.  Domestic sales decreased by 15%, 4%, 24% and 17% in th e years 2008, 2009, 2010 and 2011 
compared to year 2007. 
 Domestic industry's actual capacity utilization de clined during the POI. Capacity utilization of 
domestic industry which was about 52% in 2007 declined to 48% in 2008 and 2009, and then 
decreased to 39% in 2010 and 2011.  
 
Productivity, in terms of tons produced per person employed declined during POI. The lowest value 
reached to 19% in 2010 compared to 2007. 
 
Employment decreased by 2% , 1.6%, 9% and 20% in the years 2008, 2009,  2010 and 2011 
compared to 2007. 
 The closing stocks of domestic producer incr eased in the year 2008, 2009, 2010 by 154%, 90% 
and 35% compared to year 2007, and decreased in 2011. 
 Taking into account all the above factors, NPPD  concludes that the overall assessment of the 
situation of the domestic industry shows that it has suffered from serious injury caused by the 
increase of imports G/SG/N/8/JOR/8 • G/SG/N/10/JOR/8 • G/SG/N/11/JOR/4 
 
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  (c) Causation 
 NPPD has thoroughly investigated the causality factor between the increase in imports and injury to the domestic industry, and has determined th at there is a clear evidence of a causal link 
between the recent growth of imports of product under investigation and the injury caused to 
domestic industry, NPPD determined that the incr ease coincided with the injury to the domestic 
industry. 
 
3. Provide a precise descript ion of the product involved 
 Product under investigation is "Bars and Rods of Iron and steel" provided for in the Jordanian tariff 
headings of 7213.105, 7213.206, 7214.105, 7214.205, 7214.305, 7214.915, 7214.995, 7215.105, 
7215.505, and 7215.905.  
4. Provide a precise description of the proposed measure 
 The proposed definitive safeguard measure is as follows: 
 
For the HS codes of 7213.105, 7214.105, 7214.205, 7214.305, 7214.915, 7214.995, 7215.105, 7215.505, and 7215.905: imposing, in addition to the applied tariff duty, a specific surcharge of JD 80 per ton for a period of three years and subject to annual liberalization  
of JD 10. 
 
For the HS Code of 7213.206: to fa cilitate imposing the measure, and as a prereq uisite, it is highly 
required to restructure the Jordanian Tariff Schedule of HS Code: 7213 so as to differentiate 
between different imports as a product of steel or  as raw materials (industrial inputs) for steel 
industry and for the other non-steel industry and specifying the diameters. The new HS codes will 
be notified as soon as finishing the restructuring. 
 Accordingly the definitive safeguard measure is as follows: Imposing on all HS codes within 7213 imported as "steel", in addition to the applied tariff duty, a specific surcharge of JD 80 per ton for a 
period of three years and subject to annual liberalization of JD 10. 
 5. Provide proposed date of introduction of the measure 
 
In accordance with Article 25 of the "Regulation on Safeguards of National Production", the date of introduction of the measure is the date of publishing the decision of the Council of Ministers to 
impose the safeguard measure in two daily local newspapers. 
 
The date of introduction of the measure shall be notified to the committee on safeguards once the 
decision is published in two daily local newspapers. 
 
6. Provide the expected duration of the measure  
Three years. 
 7. For a measure with the duration of more than three years, provide the proposed 
date for this review (under Article 7.4) to hold not later than mid-term of the measure, if 
such a date for review has already been scheduled  Not applicable. 
 
8. If the expected duration is over on e year, provide the expected timetable for 
progressive liberalizat ion of the measure 
 
The measure is proposed to be liberalized as stated in point 4 above.  
9. Major exporting members of the product 
 The major exporting countries with percentages of their imports from the total imports in 2011 were as follows: 
 G/SG/N/8/JOR/8 • G/SG/N/10/JOR/8 • G/SG/N/11/JOR/4 
 
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Country 2011 
Ukraine 49% 
United Arab Emirates 24% 
Turkey 14% 
Romania 6.1% 
Italy 5.9% 
 
10. Offer of consultation 
 
In accordance with Article 12.3 of the Agreem ent on Safeguards, Article 24 of the Jordanian 
National Production Protection Law and Article 33 of the Jordanian Regulation on Safeguard, 
Jordan provide adequate opportunity for prior consultations with those members having a 
substantial interest as exporters of the concerned product. G/SG/N/8/JOR/8 • G/SG/N/10/JOR/8 • G/SG/N/11/JOR/4 
 
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  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
1. Specify the developing countries to which the measure is not applied under 
Article 9.1 of the Agreement on Safeguard 
 
The developing countries concerned are the following 
  
Afghanistan Dominica Madagascar Samoa 
Albania Dominican Republic Malawi Sao Tomé and Principe 
Algeria East Timor Malaysia Saudi Arabia, Kingdom 
of 
American Samoa Ecuador Maldives Senegal 
Angola Egypt Mali Serbia & Montenegro 
Anguilla El Salvador Marshall Islands Seychelles 
Antigua and Barbuda Equatorial Guinea Martinique Sierra Leone 
Argentina Eritrea Mauritania Singapore 
Armenia Ethiopia Mauritius Slovak Republic 
Aruba Fiji Mayotte Slovenia 
Azerbaijan Gabon Mexico Solomon Islands 
Bahamas Georgia Micronesia, Fed. Sts. Somalia 
Bahrain Kingdom of Ghana Midway Is. South Africa 
Bangladesh Gibraltar Moldova Sri Lanka 
Barbados Greenland Mongolia St Helena and 
dependencies 
Belarus Grenada Montserrat St Kitts and Nevis 
Belize Guam Morocco St Pierre and Miquelon 
Benin Guatemala Mozambique St Vincent 
Bhutan Guinea Myanmar Sudan 
Bolivia Guinea-Bissau Namibia Suriname 
Bosnia and Herzegovina Guyana Nauru Swaziland 
Botswana Haiti Nepal Syrian Arab Republic 
Brazil Honduras Netherlands Antilles Tajikistan 
Brunei Darussalam Hong Kong, China New Caledonia Tanzania 
Burkina Faso India Nicaragua Thailand 
Burundi Indonesia Niger The Gambia 
Cambodia Iran Nigeria Togo 
Cameroon Iraq Niue Island Tokelau 
Cape Verde Israel Norfolk Island Tonga 
Central African Republic Jamaica Northern Mariana 
Islands Trinidad and Tobago 
Chad Kazakhstan Oman Tunisia G/SG/N/8/JOR/8 • G/SG/N/10/JOR/8 • G/SG/N/11/JOR/4 
 
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Chile Kenya Pakistan Turkmenistan 
China Kiribati Palau Turks and Caicos Islands 
Chinese Taipei Korea, Democratic 
Republic Palestinian National 
Authority Tuvalu 
Colombia Kuwait Panama Uganda 
Comoros Kyrgyz Republic Papua New Guinea Uruguay 
Congo Laos PDR Paraguay Uzbekistan 
Cook Islands Latvia Peru Vanuatu 
Costa Rica Lebanon Philippines Venezuela 
Côte d'Ivoire Lesotho Pitcairn Vietnam 
Croatia Liberia Qatar Yemen 
Cuba Libya Reunion Yugoslavia, Fed.Rep 
Democratic Republic of 
Congo Lithuania Rwanda Zambia 
Djibouti Macao Saint Lucia Zimbabwe 
 
 
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