G/SG/N/6/TUR/22  
G/SG/N/7/TUR/12  
G/SG/N/11/TUR/21  
 
12 April 2017  
(17-2049) Page: 1/6 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT  
ON SAFEGUARDS ON INI TIATION OF AN INVEST IGATION  
AND THE REASONS FOR IT 
NOTIFICATION UNDER A RTICLE 12.4 OF THE A GREEMENT  
ON SAFEGUARDS BEFORE  TAKING A PROVISIONAL   
SAFEGUARD MEASURE RE FERRED TO IN ARTIC LE 6 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
TURKEY 
(Pneumatic Tyres ) 
The following communication, dated 12 April 2017, is being circulated at the request of the 
Delegation of Turkey.  
 
_______________  
 
 
The Republic o f Turkey hereby notifies the Committee on Safeguards, pursuant to Article 12.1(a) 
of the Agreement on Safeguards on initiation of a safeguard investigation on imports of Pneumatic 
Tyres, Article 12.4 of the Agreement on Safeguards before taking a provision al safeguard 
measure, and footnote 2 of Article 9 of the Agreement on Safeguards on taking a decision not to 
apply the measure to products originating in developing countries.  
 
A. NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS ON 
INITIATION  OF AN INVESTIGATION AND THE REASONS FOR IT  
1. The date when the investigation was initiated  
The investigation was initiated on 6 April 2017. The related Communiqué was published in the 
Official Gazette on the same date.  
 
2. The product subject to the investigat ion 
The products under investigation are hereinafter referred to as "the products concerned".  
The HS Codes under the Turkish Customs Tariff Schedule and descriptions of the products 
concerned are listed in the table below.  
 
H.S. Code (*)  Description  
4011. 10 New pneumatic tyres, of rubber, of a kind used on motor cars (including station wagons 
and racing cars)  
4011.20  New pneumatic tyres, of rubber, of a kind used on buses or lorries  
4011.70  New pneumatic tyres, of rubber, of a kind used on agricultural o r forestry vehicles and 
machines  G/SG/N/6/TUR/22 • G/SG/N/7/TUR/12 • G/SG/N/11/TUR/21  
 
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  H.S. Code (*)  Description  
4011.80  New pneumatic tyres, of rubber, of a kind used on construction, mining or industrial 
handling vehicles and machines  
4011.90  Other New pneumatic tyres, of rubber  
* Provided that other provisions are reserved, Pneu matic tyres under the heading 87.08 and attached to 
the rim/wheel are included.  
 
3. The reasons for the initiation of investigation  
The investigation was initiated ex -officio upon an evaluation of a preliminary investigation report 
and on the basis of the evi dence and the information contained therein.  
 
The information currently available indicates that there has been an increase in imports of the 
product concerned both in absolute terms, and relative to domestic production.  
 
The information currently availabl e shows a situation of decreasing trend in profitability, capacity 
utilization, and a declining market share for domestic industry while there is an increase in 
inventory. Furthermore while consumption is increasing, production and domestic sales have 
remained stable.  
 
The non -confidential summary of the application is available at the internet address below.  
 
 http://www.ekonomi.gov.tr/portal/url/buk  
 
4. Further information  
Those who fill out and send " Application Form for the Interested Party" (application form) to the 
competent authority within the period of 20 days after the promulgation of the related 
Communiqué are accepted as interested parties in the investigation. The application form is 
availabl e at the internet address cited in Article 3.  
 
The investigating authority shall provide a username and a password to each interested party. The 
username shall be the e -mail address specified in the application form. The interested parties are 
required to fill out the "Online Questionnaire for the Interested Party" (online questionnaire) by 
logging into http://ithkorunma.ekonomi.gov.tr  webpage with the username and password provided 
by the investiga ting authority, within the period of 30 days after the initiation of the investigation. 
Interested parties may ask for technical assistance from the investigating authority while filling out 
the online questionnaire.  
 
Interested parties may state, in the a pplication form, their request to be heard by the investigating 
authority. The date and venue of the hearing and other information regarding the investigation will 
also be announced internet address cited in Article 3.  
 
The address of the investigating aut hority for correspondence is:  
 
 Ministry of Economy  
 Directorate General for Imports, Department of Safeguards  
 Söğütözü Mah. 2176. Sk. No: 63 06530 Çankaya/Ankara/TURKEY  
 Tel: +90 312 204 99 42 / +90 312 204 99 43  
 Fax: +90 312 212 87 65 / +90 312 212 87 11  
E-mail: korunma@ekonomi.gov.tr   
 
B. NOTIFICATION UNDER A RTICLE 12.4 BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE  
1. The product subject to the proposed provisional safeguard measure  
The products subject to the proposed provisional safeguard measure are listed in the table below.  
 G/SG/N/6/TUR/22 • G/SG/N/7/TUR/12 • G/SG/N/11/TUR/21  
 
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  H.S. Code (*)  Description  
4011.1 0 New pneumatic tyres, of rubber, of a kind used on motor cars (including station wagons 
and racing cars)  
4011.20  New pneumatic tyres, of rubber, of a kind used on buses or lorries  
4011.70  New pneumatic tyres, of rubber, of a kind used on agricultural or  forestry vehicles and 
machines  
4011.80  New pneumatic tyres, of rubber, of a kind used on construction, mining or industrial 
handling vehicles and machines  
4011.90  New pneumatic tyres, of rubber, other  
* Provided that other provisions are reserved, Pneu matic tyres under the heading 87.08 and attached to 
the rim/wheel are included.  
 
2. The proposed provisional safeguard measure  
It is proposed to impose provisional safeguard measure in the form of specific duty  that will be 
implemented as 0.50 USD per kilogra m. 
 
3. Entry into force of the proposed provisional safeguard measure  
The provisional safeguard measure is proposed to enter into force with the publication of the 
approval of the Council of Ministers in the Official Gazette.  
 
4. The expected duration of the pro visional safeguard measure  
The provisional safeguard measure is proposed to be in force for 200 days from the date of 
publication of the approval of the Council of Ministers in the Official Gazette.  
 
5. The basis for:  
a. Making a preliminary determination, as pr ovided for in Article 6, that increased imports have 
caused or are threatening to cause serious injury  
In recent years, global tyre producers have increased their production of tyres and diversified their 
product range and production facilities. These prod ucers have either acquired old brands and 
facilities or opened new production facilities in different parts of the world. These companies have 
produced tyres in different price ranges and used their distribution channels and sales force for the 
marketing o f tyres including low cost tyres.  
 
These global tyre producers have currently significant production capacity. With the slowdown in 
tyre demand in European markets, these excess capacity have unexpectedly turned towards 
Turkish market. Turkey has a competi tive domestic market, therefore these global tyre producers 
began to sell low cost tyres to Turkish market in order to gain maximum market share. The 
substantial fall in the unit prices of imports, from 4.77 USD/KG (72.32 USD/Piece) in 2014 
to 3.69 USD/KG (54.25 USD/Piece) in 2016, is the indicator of the aggressive price policy of the 
exporting companies to Turkey.  
 
For the preliminary determination the years 2014, 2015 and 2016 are taken into consideration and 
this period will hereinafter referred to as "the period concerned".  
INCREASE IN IMPORTS  
Imports  Unit 2014  2015  2016  
Kg 191,846,046  198,786,860  216,520,825  
Pieces  12,659,468  14,035,933  14,742,353  
 G/SG/N/6/TUR/22 • G/SG/N/7/TUR/12 • G/SG/N/11/TUR/21  
 
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  Imports of the product concerned have increased in absolute terms consistently throughout the 
period concerned. The cumulative increase between 2014 -2016 is 12.9% in Kg and 16.5 in pieces. 
In the same period unit price has fallen by 22.6% in Kg and 25% in pieces.  
 
Imports/ 
Production  Unit 2014  2015  2016  
%  47.9 50.6 55.7 
 
The ratio of imports to dom estic production has also risen continuously during the period 
concerned. The ratio increased by 16.3% in the same period  
 
Based on the figures relating to imports that are summarized above, it is concluded that there has 
been an increase, both in absolute  and relative terms, in the imports of the product concerned.  
 
SERIOUS INJURY OR THREAT OF SERIOUS INJURY  
In order to make a determination of serious injury or threat thereof to the domestic producer of 
the like product, a preliminary evaluation of all re levant factors of an objective and quantifiable 
nature having a bearing on the situation of the domestic industry has been undertaken. In this 
analysis, data submitted by the two major domestic producers, which constitute major proportion 
of domestic produ ction, were utilized. Information below covers the 3 -year period from 2014 to 
2016.  
 
(i) Market Share of Imports  
Market Share of 
Imports  Unit 2014  2015  2016  
%  45 46 48 
 
The market share of the import product has expanded throughout the period concerned. C ompared 
with its value in 2014, 6.7% increase in the market share was recorded throughout the period 
concerned.  
 
(ii) Consumption  
Consumption   2014  2015  2016  
(Pieces – Index)  100 107.4  107.43  
 
Consumption has risen during the period concerned. This rise was m ost significant in 2015, in the 
following year consumption has remained stable.  
 
(iii)  Production  
Production   2014  2015  2016  
(Pieces – Index)  100 104.98  100.28  
 
Production has fluctuated throughout the period concerned. In 2015 production has grown by 
almost 5 %, in 2015 it decreased to almost the same level it was in 2014.  
 
(iv) Capacity and Capacity Utilization Ratio (CUR)  
Capacity & CUR  2014  2015  2016  
Capacity (Piece – Index)  100 122.2  119.37  
CUR (% – Index)  100 85.91  84 
 
Capacity has increased by around 20% t hroughout the period concerned. On the other hand, 
capacity utilization ratio has decreased sharply in 2015, and slightly decreased in 2015.  G/SG/N/6/TUR/22 • G/SG/N/7/TUR/12 • G/SG/N/11/TUR/21  
 
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(v) Domestic Sales  
Domestic Sales  2014  2015  2016  
(Piece – Index)  100 104.6  100.17  
 
Domestic sales have fluctuated t hroughout the period concerned. In 2015 domestic sales have 
grown by almost 5%, in 2016 it decreased to almost the same level it was in 2014.  
 
(vi) Inventories  
End of Period Inventories   2014  2015  2016  
(Pieces – Index)  100 147.68  111.2  
 
End of period invento ries have increased dramatically in 2015 by almost 50%. With the decrease 
in production, inventories have also decreased in 2016.  
 
(vii)  Employment  
Employment   2014  2015  2016  
(Workers – Index)  100 99.84  101.89  
 
Employment has remained stabled throughout the p eriod concerned.  
 
(viii)  Productivity  
Productivity  2014  2015  2016  
(Pieces /Worker – Index)  100 105.15  98.42  
 
As the employment has remained stable, productivity has fluctuated with the level of production. 
In 2015 productivity has grown by around 5%, in 2016 it decreased to below the level it was 
in 2014.  
 
(ix)  Profitability  
Profitability  2014  2015  2016  
(% – Index)  100 97.39  56.17  
 
Profitability has decreased throughout the period concerned by around 50%. Decrease in 
profitability is most significant in 2016.  
 
CAUS ATION  
Imports of the product concerned have increased both in absolute terms and relative terms 
consistently throughout the period concerned. In the same period domestic consumption has also 
increased. Furthermore, the market penetration of the import prod uct have also increased during 
the same period. On the other hand, during the same period, based on the figures above, market 
share of domestic production and capacity utilization ratio have decreased and inventories have 
increased substantially. Particula rly in 2016 production and domestic sales have decreased, 
profitability has deteriorated.  
 
The Investigating Authority has found that there is a sufficient preliminary conclusion that 
significant increase in imports have caused or is threatening to cause serious injury to the 
domestic industry.  
 
 G/SG/N/6/TUR/22 • G/SG/N/7/TUR/12 • G/SG/N/11/TUR/21  
 
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  b. Determining the existence of critical circumstances where delay would cause damage which 
it would be difficult to repair.  
The investigating authority has made a preliminary determination that critical circumstance s exist 
in which delay would cause damage, which it would be difficult to repair. Production, domestic 
sales, market share, capacity utilization and profitability fell particularly in 2016 while imports and 
consumption is rising. End of period inventories have increased throughout the period concerned.  
 
It can be anticipated that without the application of a provisional safeguard measure, imports of 
the product concerned into Turkey will continue to rise at a high level and the domestic industry 
will contin ue to lose its share in the domestic market.  
 
There exists a critical situation in which any delay in the adoption of a provisional safeguard 
measure would cause damage, which it would be difficult to repair.  
 
6. Offer of consultations under Article 12.4  
Consistent with Article 12.4 of the Agreement on Safeguards, Turkey is prepared to consult on the 
provisional safeguard measure with those Members having a substantial interest as exporters of 
the product concerned.  
 
C. NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT 
TO APPLY THE PROVISIONAL SAFEGUARD MEASURE TO CERTAIN PRODUCTS 
ORIGINATING IN DEVELOPING COUNTRIES  
1. The measure  
It is proposed to impose provisional safeguard measure in the form of specific duty as described in 
the notification  under Article 12.4 above.  
 
2. The product subject to the measure  
The measure applies to the products described in paragraph 1 of the notification under Article  12.4 
above.  
 
3. The developing countries to which the measure is not applied under Article 9.1 of 
the Agreement on Safeguards  
The developing countries in the list below are excluded from the measure as they export less 
than 3% of imports to Turkey.  
 
Afghanistan, Albania, Algeria, Angola, Antigua and Barbuda, Argentina, Azerbaijan, Bangladesh, 
Barbados, B elarus, Belize, Benin, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, 
Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chile, 
Colombia, Comoros, Congo, Cook Islands, Costa Rica, Cote d'Ivoire, Cuba, Democra tic People's 
Republic of Korea, Democratic Republic of Congo, Djibouti, Dominica, Dominican Republic, 
Ecuador, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, Gambia, Georgia, Ghana, 
Grenada, Guatemala, Guinea, Guinea -Bissau, Guyana, Haiti,  Honduras, Indonesia, Iran, Iraq, 
Jamaica, Jordan, Kazakhstan, Kenya, Kiribati, Kosovo, Kyrgyzstan, Lao People's Democratic 
Republic, Lebanon, Lesotho, Liberia, Libya, Macedonia, Madagascar, Malawi, Malaysia, Maldives, 
Mali, Marshall Islands, Mauritania, M auritius, Mexico, Micronesia (Federated States of), Moldova, 
Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nauru, Nepal, Nicaragua, Niger, 
Nigeria, Niue, Pakistan, Palau, Palestine, Panama, Papua New Guinea, Paraguay, Peru, Philippines, 
Russian Federation, Rwanda, Samoa, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, 
Solomon Islands, Somalia, South Africa, South Sudan, Sri Lanka, St. Kitts and Nevis, St. Lucia, 
St. Vincent and the Grenadines, Sudan, Suriname, Swaziland, Tajikistan,  Tanzania, Timor Leste, 
Togo, Tonga, Trinidad and Tobago, Tunisia, Turkmenistan, Tuvalu, Uganda, Ukraine, Uruguay, 
Uzbekistan, Vanuatu, Venezuela, Vietnam, West Bank and Gaza Strip, Yemen, Zambia, Zimbabwe.  
 
 
__________