G/SG/N/8/RUS/1  
 
13 May 2013  
(13-2454)  Page: 1/8  
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 
RUSSIA 
(Harvesters and modules thereof) 
The following communication, dated 30 April 2013, is being circulated at the request of the 
Delegation of Russia. 
 
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On July 6, 2012 the Department for Internal Market Defence of the Eurasian Economic Commission (hereinafter ‘the Department’) initiated a safeguard investigation with regard to the imports of 
combine harvesters and modules thereof into the single customs territory of the Customs Union of 
the Republic of Belarus, the Republic of Kaza khstan and the Russian Federation (hereinafter 
‘the CU’) (see WTO document G/SG/N/6/RUS/1). 
 
On 25 December 2012 the Board of the Eurasian Economic Commission took a decision to apply a provisional safeguard measure in the form of a provisional safeguard duty at the rate of 27.5 per cent ad-valorem of the customs value of the products being imported into the CU single 
customs territory (see WTO document s G/SG/N/7/RUS/1-G/SG/N/11/RUS/1, 
G/SG/N/7/RUS/1/Suppl.1-G/S G/N/11/RUS/1/Suppl.1).  
 
In accordance with Article 12.1 (b) of the Agreem ent on Safeguards hereby the Russian Federation 
notifies the Committee on Safeguards that the Department has found serious injury caused by increased imports. 
 
The single product which has been found to have been imported into the CU single customs territory in such quantities and under such conditions as to cause serious injury to the CU industry which produces like or directly competitive product is combine harvesters and modules thereof, 
consisting at least of threshing and separating de vice, equipped or not equipped with the threshing 
drum, cleaning systems and engine mounted on th e support base or the frame and chassis, which 
envisages the installation of bridges, wheels or tracks (hereinafter ‘the product under 
consideration’). Like or directly competitive product produced by CU producers is hereinafter 
referred to as ‘the like product’.  
The Department will continue the investigation with a view to determining an appropriate remedy.  G/SG/N/8/RUS/1 
 
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  1. Provide evidence, citing relevant data and the applicable period of investigation  of 
serious injury or threat thereo f caused by increased imports 
I. Analysis of the Customs Union mark et of the product under consideration 
 
(a) Consumption 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Volume of apparent consumption, units 8921 7591 6993 4148 4372 
Change as compared to the 
previous period, % - -14,9 -7,9 - +5,4 
Change as compared to 2009, % - -14,9 -21,6 - - 
 
As shown in the table above, whereas between 2009 and 2011 consumption of the product under 
consideration in the CU decreased by 21,6%, in the first half of 2012, as compared to the first half of 2011, it increased by 5,4%.  
(b) Production 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the volume of production of the like product in the CU as compared to the previous period, % - -22,6 +22,6 - -0,4 
Change in the volume of 
production of the like product in the CU as compared to 2009, % - -22,6 -5,1 - - 
 
In 2011, as compared to 2009, production of th e like product in the CU decreased by 5,1%. 
Whereas in 2010, as compared to 2009, it fell by 22,6%, in 2011, as compared to 2010, it grew by 
22,6%.   
In the first half of 2012, as compared to the first half of 2011, production decreased by 0,4%. 
 (c) Sales 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the volume of sales of the like product by the CU producers in the CU as compared to the previous period, % - -20,1 -6,8 - -5,2 
Change in the volume of sales 
of the like product by the CU producers in the CU as compared to 2009, % - -20,1 -25,5 -  
Change of the market share 
held by the CU producers as compared to the previous period, p.p. - -5,5 +1,0 - -9,1 
 
During the period from 2009 to 2011 the volume of sales of the of like product by the CU 
producers in the CU dropped by 25,5%. In 2010, as compared to 2009, sales of the of like product 
by the CU producers’ in the CU fell by 20,1%, in 2011, as compared to 2010, they fell by 6,8%.   
In the first half of 2012, as compared to the first half of 2011, sales of the of like product by the 
CU producers on the CU market decreased by 5,2%.  
Reduction of the volume of sales of the like pr oduct by the CU producers on the CU market was 
accompanied by the loss of the market share held by the CU producers by 4,5 percentage points G/SG/N/8/RUS/1 
 
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  between 2009 and 2011. In the first half of 2012, as compared to the same period of 2011, 
market share held by the CU producers on th e CU market fell by 9,1 percentage points. 
 (d) Imports 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Volume of imports, units 774 1080 922 450 868 
Change as compared to the previous period, % - +39,5 -14,6 - +92,9 
Change as compared 
to 2009, % - +39,5 +19,1 - - 
Change of the market share 
held by imports as compared to the previous period, p.p. - +5,5 -1,0 - +9,1 
 
Between 2009 and 2011 imports grew by 19,1% and the market share held by imports grew 
by 4,5 percentage points. In the first half of 2012 as compared to the first half of 2011 there was 
an increase in imports in absolute terms by 92,9% and in relation to the volume of consumption 
by 9,1 percentage points.  
 
II. Analysis of the situation of the CU industry 
 
Analysis of the situation of the CU industry has been conducted based on data provided by Limited 
Liability Company Combine Plant Rostselmash, Joint stock company «Industrial Corporation The Krasnoyarsk Harvester» which on average produced  47,5% of the total production of the like 
product in the CU during the period under consideration.  
 (a) Production 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the volume of production of the like product by the CU industry as compared to the previous period, % - -38,3 +38,9 - -10,0 
Change in the volume of 
production of the like product by the CU industry as compared to 2009, % - -38,3 -14,4 - - 
 
The table above shows that between 2009 and 2 011 production of the like product by the 
CU industry fell by 14,4%. In th e first half of 2012, as compared to the first half of 2011, the 
volume of production of the like product by the CU industry decreased by 10%.  
 (b) Sales  
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the volume of sales 
of the like product by the CU 
industry in the CU as compared to the previous period, % - -37,8 -9,0 - -20,6 
Change in the volume of sales 
of the like product by the CU industry in the CU as compared to 2009, % - -37,8 -43,4 - - 
 
During the period from 2009 to 2011 sales of the li ke product by the CU industry in the CU fell 
by 43,4%, which was accompanied by the reduction of the market share held by the CU industry 
by 14,4 percentage points. In the first half of 2012, as compared to the first half of 2011, the 
volume of sales of the like product by the CU in dustry in the CU decreased by 20,6%, whereas the 
market share held by the CU industry  decreased by 9,5 percentage points. 
 G/SG/N/8/RUS/1 
 
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  (c) Inventories 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Inventories of the like product in the CU industry (indexed)  =100 60,5 167,4 =100 252,0 
Change in the share of 
inventories in the volume of production of the like product by the CU industry as compared to the previous period, p.p.  -0,3 +18,9  +68,8 
 
As a result of the loss of sales during the period under consideration inventories of the like product in the CU industry dramatically increased. As of the end of 2011 the volume of inventories in the 
CU industry exceeded their volume  as of the end of 2009 by 167%. 
 As of the end of the first half of 2012 the volu me of inventories of the like product in the 
CU industry were 2,5 times higher than their vo lume as of the end of 2011 and thus exceeded the 
volume of production of the CU industry in the first half of 2012.  
(d) Exports 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the volume of 
exports of the like product by the CU industry as compared to the previous period, % - -33,2 +12,6 - -3,5 
Change in the volume of the CU 
industry’s exports as compared to 2009, % - -33,2 -24,8 - - 
Change in the volume of the CU 
industry’s exports in relation to volume of the CU industry’s production as compared to the previous period, p.p.  +1,0 -2,5 - +0,5 
 
As shown in the table above, during the period from 2009 to 2011 the volume of exports of the 
like product by the CU industry decreased in ab solute terms by 24,8% and in relation to the 
volume of production by 1,5 percentage points. In the first half of 2012, as compared to the 
first half of 2011, the volume of exports of the like product by the CU industry in absolute terms 
decreased by 3,5% and in relation to the volume of  production increased by 0,5 percentage points.  
 
(e) Production capacity and capacity utilization 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in capacity utilization as compared to the previous period, p.p.  -19,7 +12,3  -4,2 
 
During the period under consideration production capacity in the CU industry remained the same. 
In 2011, as compared to 2009, the level of capacity utilization fell by 7,4 percentage points, in the first half of 2012, as compared to the first half of 2011, it fell by 4,2 percentage points. G/SG/N/8/RUS/1 
 
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  (f) Costs, price and profitability 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the weighted average cost of production of a unit of the like product by the CU industry as compared to the previous period, % - +16,4 -2,3 - +0,1 
Change in the weighted average 
cost of production of a unit of the like product by the CU 
industry as compared 
to 2009, % - +16,4 +13,6 - - 
 
The table above shows that during the period from 2009 to 2011 the weighted average cost of 
production of a unit of the like product by the CU industry grew by 13,6%. In the first half of 2012, 
as compared to the first half of 2011, it did not change significantly (grew by 0,1%).  
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change in the weighted average price of the like product as compared to the previous period, % - -1,8 -0,3 - +0,7 
Change in the weighted average 
price of the like product as compared to 2009, % - -1,8 -2,1 - - 
 
As shown in the table above, weighted averag e price of the like product did not change 
significantly. 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Profits (indexed)  =100 21,3 28,0 =100 86,7 
Change in prof itability as 
compared to the previous period, p.p. - -14,5 +1,9 - +0,6 
 
Between 2009 and 2011 profitability of sales of th e like product in the CU fell by 12,6 percentage 
points, in the first half of 2012, as compared to the first half of 2011, it remained practically the 
same.  In 2011 profits made by the CU industry from th e sales of the like product in the CU were 
3,6 times lower than they were in 2009. In the first half of 2012, as compared to the first half 
of 2011, the profits fell by 13,3%.  
(g) Employment 
 Between 2009 and 2011 employment in relation to  the like product fell by 25,4%, at the same 
time wages increased by 53,3%. In the first half of 2012, as compared to the first half of 2011, 
employment in relation to the like produc t grew by 1,9%, the wages fell by 0,9%.  
 (h) Investments 
 
During the period from 2009 to 2011 the volume of investments into the production of the like product fell sharply by 580%. In the first half of 2012, as compared to the first half of 2011, it 
increased by 290%. 
 G/SG/N/8/RUS/1 
 
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  III. Causality 
 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Change of the market share held by the CU industry as compared to the previous period, p.p. - -13,9 -0,5 - -9,5 
Change of the market share 
held by imports as compared to the previous period, p.p. - +5,5 -1,0 - +9,1 
 
During the period under consideration effect of increased imports on the CU industry manifested 
itself in a substitution of the like product produc ed by the CU industry on the CU market by the 
imported product. As shown in the table, in 2011, as compared to 2011, the market share held by 
imports increased by 4,5 percentage points; in the first half of 2012, as compared to the first half of 2011, it increased by 9,1 percentage points.  
 
Analysis of weighted average prices of the imported product and of the like product produced by the CU industry has shown that during the period under consideration the weighted average price 
of the like product produced by the CU industry was lower than the weighted average price of the 
imported product. Meanwhile, analysis of prices of the imported product and of the like product produced by the CU industry in relation to the models with comparable technical characteristics has shown that these prices are generally comparable.  
 
Analysis of effects of other factors (exports of the CU industry, financial crisis, dry season in 2011 and others) has shown that they did not result  in the serious injury being caused to the 
CU industry. 
 2. Provide information on whether there is  an absolute increase in imports or an 
increase in imports relative  to domestic production 
 2009 2010 2011 January-
June 2011 January – 
June 2012 
Volume of imports, units 774 1080 922 450 868 
Change as compared to the previous period, % - +39,5 -14,6  +92,9 
Change as compared to 2009, 
% - +39,5 +19,1  - 
Imports/CU production   
change as compared to the previous period, p.p.  +7,4 -5,0 - +8,4 
Imports/CU production   
change as compared to 2009, p.p.  +7,4 +2,4 - - 
 
The above table shows that during the period from 2009 to 2011 imports increased in absolute 
terms by 19,1% and in relation to CU production by 2,4 percentage points. 
 
In the first half of 2012, as compared to the first half of 2011, imports increased in absolute terms by 92,9% and in relation to CU production by 8,4 percentage points.  
3. Provide the precise description of the product involved 
Provide the Harmonized System numbers under which the product enters at 
least at a 6-digit HS level, and at a sub-na tional level (e.g. 8-digit HS, 9-digit HS or 
10-digit HS) if practicable. (The HS codes will be provided for reference purposes 
only.) 
 
Combine harvesters and modules thereof, consisting  at least of threshing and separating device, 
equipped or not equipped with the threshing drum , cleaning systems and engine mounted on the 
support base or the frame and chassis, which en visages the installation of bridges, wheels or 
tracks, classified under the following codes of the Single Commodity Nomenclature for Foreign G/SG/N/8/RUS/1 
 
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  Economic Activities of the Customs Union:  8433 51 000 1, 8433 51 000 9, 8433 90 000 0. The 
above codes are provided only for information purpose.  4. If the final measure replaces a provis ional measure, or if a final measure is 
extended, a Member is encouraged to provide a written description of any part of 
the imported product that will no long er be subject to the measure and the 
Harmonized System numbers under which it enters at least at a 6-digit level, and 
at a sub-national level (e.g., 8-digit, 9- digit or 10-digit level) if practicable. 
 Not applicable.  
5. Provide precise description of the proposed measure. 
 Not available. 
 
6. Provide proposed date of  introduction of the measure. 
 
Not available. 
 7. Provide expected duration of the measure.  
Not available. 
 8. For a measure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid-term of the 
measure, if such a date for the review has already been scheduled.  
 
Not available. 
 9. If the expected duration is over one year, provide expected timetable for 
progressive liberalization of the measure. 
 
Not available.  
10. If the notification relates only to a find ing of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure, provide 
information regarding procedures for prior consultation with those Members 
having a substantial interest as ex porters of the product concerned. 
 Consistent with Article 12.3 of the Agreement on Safeguards, the Russian Federation is prepared 
to hold consultation with those Members having a substantial interest as exporters of the product 
concerned, with a view to, inter alia, reviewing the information provided in this notification and 
exchanging views on appropriate remedies.  
11. If the measure is being extended, also provide: 
  (i) evidence that the industry concer ned is adjusting and that the safeguard 
measure continues to be necessary to  prevent or remedy serious injury; 
  (ii) reference to the WTO document that  notified the initial application of the 
measure; 
 
 (iii) duration of the measure from initia l application till the date at which it will 
be extended; 
 
and, 
 
 (iv) precise description of the measure in  place prior to the date of extension (in 
this context, please note that the last sentence of Article 7.4 states that: "A measure extended under paragraph 2 shall not be more restrictive than it was at the end of the initial period, and should continue to be liberalized.") 
 G/SG/N/8/RUS/1 
 
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  Not applicable. 
 12. If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information: 
 
 (i) The major exporting Members of imports of the product involved. 
 
 (ii) If there are any exporting Members to which the measure does not apply for 
any reason other than the application of Article 9.1, the names of such exporting 
Members and reasons for non-application of the measure.  
 
Not applicable. 
 The address of the competent authority for correspondence is: 
 
Eurasian Economic Commission Department for Internal Market Defen сe 
3/5, Smolensky boulevard 
Moscow, 119121, Russia Tel. +7 (495) 6692400   ext. 1316, 1272, 1291 Fax +7 (495) 6692400  ext. 1109 
E-mail: tradedefence@eecommission.org  
 
 
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