G/SG/N/8/THA/4/Suppl.1  
G/SG/N/10/THA/4/Suppl.1  
G/SG/N/11/THA/5/Suppl.1  
 
22 February 2017  
(17-1055) Page: 1/7 
Commit tee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION PURSUAN T TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUAR DS  
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2 
OF THE AGREEMENT ON SAFEGUARDS  
THAILAND  
(Structural Hot Rolled H -Beam with Alloy)  
Supplement  
The following communication, dated 20 February 2017 , is being circulated at the request of the 
Delegation of Thailand.  
 
_______________  
 
 
With reference to Thailand's notification on findings of serious injury or threat thereof caused by 
increased imports and taking the decision not to apply the measure against products Structural 
Hot Rolled H-Beam with Alloy  originating in developing countries on 20 December  2016 
(WTO  Document G/SG/N/8/THA/4 -G/SG/N/10/THA/4 -G/SG/N/11/THA/5), Thailand hereby submits 
notification to the Committee on Safeguards pursuant to Article 12.1(c) of the Agreement on 
Safeguards on taking a decision to apply a safeguard measure.  
 
Consistent with Article 12.2 of the Agreement on Safeguards,  this notification contains all pertinent 
information relating to the application of the safeguard measure on Structural Hot Rolled H-Beam 
with Alloy  (hereinafter refer to as "product concerned "). 
 
1  PRECISE D ESCRIPTION OF THE PR ODUCT CONCERNED  
The product concerned is Structural Hot Rolled H-Beam with Alloy which was classifiable in the 
Thai Customs Tariff Code 2012 at subheadings: 7228.70.10.000 and 7228.70.90.000, and is 
currently classifiable in the Thai Cu stoms Tariff Code 2017 at subheadings: 7228.70.10.093 and 
7228.70.90.000. Please note that the Thai Customs Tariff Code is only for reference purpose, the 
product concerned is as described.  
 
2  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC  PRODUCTION  
During the period of investigation (POI) covered from 1 J anuary 2011 to 31 December 2015 
(5 years), the product concerned was imported into Thailand in significantly increased quantities, 
both in ab solute term and relative term to domestic production. The increase of imports has been 
recent enough, sudden enough, sharp enough, and significant enough, both quantitatively and 
qualitatively, to cause or threaten to cause serious injury, particularly in 2015.  
 G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl.1 • G/SG/N/11/THA/5/Suppl.1  
 
- 2 - 
 
  Absolute term:  
Year Total Import  
(MT)  % 
Change  
2011 - - 
2012 - - 
2013 - - 
2014 x,xxx - 
2015 xx,xxx  357 
 
Note: "x" refers to confidential information . 
Source: Information from Thai Industrial Standards Institute, Ministry of Industry.  
 
In absol ute term, the volume of imports of the product concerned i ncreased rapidly in 2014 from 
0 metric ton between 2011 and 2013 and has continued to significantly rise up in 2015. From 2014 
to 2015, the im ports increased steeply by 357%.  
Relative Term:  
Import i n relation to 
Domestic production  
(indexed)  2011  2012  2013  2014  2015  
- - - - 100 600 
 
While the imports of the product concerned increased for 357% from 2014 to 2015, the domestic 
production, on the contrary, has declined sharply. The table above shows t hat the ratio of imports 
in relation to the production of domestic industry increased from 100 points in 2014 to 600 points 
in 2015.  
 
3  EVIDENCE OF S ERIOUS INJURY OR THR EAT THEREOF  
Threat of Serious Injury:  
 
A substantive evaluation of the effect of all rele vant factors having a bearing on situation of the 
domestic industry during the POI has been conducted. It was concluded that the increased imports 
of product concerned threaten to cause serious injury since the ser ious injury is clearly 
imminent  based on t he significant impairment to the domestic industry 's overall condition in 
year 2014-2015, when the imports surged, in terms of shrinking market share; declining 
production and domestic sales; underutilization of production capacity; and decreasing profits and 
return on capital employed. Following parameters have been objectively examined:  
 
Item  2011  2012  2013  2014  2015  
Domestic Sales Value (million Baht)*  100 132 141 124 90 
Domestic Sales Quantity (MT)*  100 130 145 132 108 
Market share (%)  100 100 100 98 91 
Import Share (%)*  - - - 2 9 
Consumption (MT)*  100 130 145 134 119 
Production (MT) * 100 112 120 112 88 
Capacity Utilisation (%)  66 74 79 74 58 
Productivity (%)  94 95 96 96 96 
Profit/Loss (million Baht)*  100 168 273 148 116 
Employment (number)*  100 98 99 99 100 
Inventory (MT)*  100 107 138 140 104 
Cost of Production (Baht/MT)*  100 98 87 92 80 
Return on Capital Employed (%)  7.91 10.33  19.02  11.68  9.86 
 
* Index: Year 2011 = 100 . G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl. 1 • G/SG/N/11/THA/5/Suppl.1  
 
- 3 - 
 
  Effect of Increased Imports on Prices:  
 
In addition to the above -mentioned parameters, an evaluation of the following figures has been 
conducted. Therefore, it reveals that the imported products have been caused price undercutting 
and price depression during the period concerned.  
 
Item  
(indexed)  2011  2012  2013  2014  2015  
Sale Price  100 101 97 94 83 
Import Price Comparing with Sale Price  - - - 81 72 
Price Undercutting  - - - 13 11 
 
Unforeseen Developments:  
 
This analysis on unforeseen development is carried out during the investigation to find out which 
issues, that were un foreseen while concessions at the WTO were made, have caused a sudden, 
sharp and significant increase in the imports. Such increase of imports was attributed to the 
adverse effect of excess capacity in global steel industry and the oversupply of steel prod ucts in 
China. Hence, the countries of major steel producers, especially China, need to export their 
products to other possible markets, including Thailand, to absorb the oversupply products available 
in their home countries and to utilize their excess cap acity. In the same way, the significant 
increase of imports was attributed to the trade diversion due to the imposition of tariff or trade 
remedy measures on alloy steel product in many importing countries, such as Indonesia, Republic 
of Korea, Pakistan an d Vietnam, against several major exporting producers/countries. The shift of 
product concerned exporting to the markets without such measures was a consequence. This 
situation can be regarded as an unforeseen development resulting in increase in imports 
threatening to cause serious injury to the domestic industry.  
 
4  EVIDENCE OF SERIOUS INJURY OR THREAT THE REOF CAUSED BY INCRE ASED 
IMPORTS  
During the POI, the examination of other factors that may contribute to the imminent impairment 
of the overall condition of the domestic industry was also undertaken i.e. domestic demand, 
efficiency in management and export performance of domestic industry. On the basis of objective 
evidence, the investigation demonstrated that no such factors other than increased imports we re 
found causing the overall impairment to domestic industry. Thus, the increased imports of the 
product concerned were the only threat of serious injury suffered by the domestic industry.  
 
5  DESCRIPTION OF THE M EASURE  
The safeguard measure will be applied i n relation to increased imports in order to remedy or 
prevent the threat of serious injury suffered by the domestic industry.  
 
Following due consideration of all views received during the public hearing held on 
28 December  2016 and objective examination of  all evidence presented by all interested parties, 
the Committee on Safeguard Measures of Thailand, therefore, announced the imposition of a 
definitive safeguard measure. Such a measure shall be in a form of safeguard duty and applied 
only to the extent ne cessary to prevent serious injury for two (2) years from 28 January 2017.  
 
In accordance with the relevant provisions of the Thai Safeguard Measures on Increased Imports 
Act B.E. 2550 (2007), which refer to Thailand 's obligations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards, the measure shall be progressively liberalized at regular intervals 
as follows:  
 
Duration  Duty  
28 January 2017 – 27 January 2018  31.43 per cent of C.I.F. price  
28 January 2018 – 27 January 2019  31.05 per cent of C.I.F. price  
 G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl.1 • G/SG/N/11/THA/5/Suppl.1  
 
- 4 - 
 
  The definitive safeguard measure will not be applied to a product concerned originating in or 
exported from any developing country as long as its share of imports of the product concerned in 
Thailand does not exceed 3 per cent, provided that  developing c ountry Members with less than 
3 %import share collectively account for not more than 9 per cent of total imports of the product 
concerned. The list of developing countries excluded from the measure is attached herewith.  
 
In addition, the exemp tion of imposition of definitive safeguard duty will be granted for imports of 
certain product concerned under the following cases:  
 
(1) Imports of H -Beam products for special usages or being classified as special grade steels as 
follows:  
 
a. H-Beam products wi th Alloy which have the propert y of the tensile strength of 
58 kilogram/mm2 or more; or  
b. H-Beam products with Alloy which have the property of the flange thickness of 40 mm or 
more;  
 
(2) Imports of H -Beam products with Alloy in which the height is less than  100 mm or more 
than 912 mm; and  
 
(3) Imports of H -Beam products with Alloy that are not in conformity with Thai Industrial 
Standards (TIS) and intended to be manufactured, further processed or incorporated into a 
finished product that will be exported fr om the Kingdom of Thailand under the Industrial Estate 
Authority of Thailand Act, the Investment Promotion Act, and the Customs Act.  
 
For further information, please contact  
 
Department of Foreign Trade (DFT), Ministry of Commerce of Thailand  
563 Nonthabu ri Road, Bangkasor, Meung Nonthaburi 11000 THAILAND  
Telephone: (662) 547 -4722 Facsimile: (662) 547 -4741 
 
 
_______________  
 G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl. 1 • G/SG/N/11/THA/5/Suppl.1  
 
- 5 - 
 
  ANNEX  
LIST OF DEVELOPING C OUNTRIES AND SEPARAT E CUSTOMS TERRITORIE S EXCLUDED FROM THE 
IMPOSITION OF PROPOS ED DEFINITIVE SAFEGU ARD ME ASURES ON STRUCTURAL  HOT 
ROLLED H -BEAM WITH ALLOY  
No. COUNTRY  No. COUNTRY  
1 Afghanistan  36 Colombia  
2 Albania  37 Comoros  
3 Algeria  38 Congo  
4 American Samoa  39 Cook Islands  
5 Angola  40 Costa Rica  
6 Anguilla  41 Cote d'Ivoire  
7 Antigua and Barbuda  42 Cuba 
8 Argentina  43 Curacao  
9 Armenia  44 Democratic People's Republic of Korea  
10 Aruba  45 Democratic Republic of the Congo  
11 Azerbaijan  46 Djibouti  
12 Bahamas  47 Dominica  
13 Bahrain  48 Dominican Republic  
14 Bangladesh  49 Ecuador  
15 Barbados  50 Egypt 
16 Belarus  51 El Salvador  
17 Belize  52 Equatorial Guinea  
18 Benin  53 Eritrea  
19 Bhutan  54 Ethiopia  
20 Bolivia (Plurinational State of)  55 Falkland Islands (Malvinas)  
21 Bonaire, Sint Eustatius and Saba  56 Federal Republic of Brazil  
22 Bosnia an d Herzegovina  57 Fiji 
23 Botswana  58 French Polynesia  
24 British Virgin Islands  59 Gabon  
25 Brunei Darussalam  60 Gambia  
26 Burkina Faso  61 Georgia  
27 Burundi  62 Ghana  
28 Cambodia  63 Grenada  
29 Cameroon  64 Guam  
30 Cape Verde  65 Guatemala  
31 Cayman Islands  66 Guinea  
32 Central African Republic  67 Guinea -Bissau  
33 Chad 68 Guyana  
34 Chile 69 Haiti 
35 Chinese Taipei  70 Honduras  
 G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl.1 • G/SG/N/11/THA/5/Suppl.1  
 
- 6 - 
 
   
71 Hong Kong, Special Administrative Region of 
China  108 New Caledonia  
72 Indonesia  109 Nicaragua  
73 Iran (Islamic Re public of)  110 Niger  
74 Iraq 111 Nigeria  
75 Jamaica  112 Niue 
76 Jordan  113 Northern Mariana Islands  
77 Kazakhstan  114 Oman  
78 Kenya  115 Pacific Islands, Trust Territory  
79 Kiribati  116 Pakistan  
80 Kuwait  117 Palau  
81 Kyrgyzstan  118 Panama  
82 Lao People's Democratic Republic  119 Papua New Guinea  
83 Lebanon  120 Paraguay  
84 Lesotho  121 Peru 
85 Liberia  122 Philippines  
86 Libya 123 Qatar  
87 Macao, Special Administrative Region of China  124 Republic of India  
88 Madagascar  125 Republic of Korea  
89 Malawi  126 Republic of Moldova  
90 Malaysia  127 Republic of Turkey  
91 Maldives  128 Russian Federation  
92 Mali 129 Rwanda  
93 Marshall Islands  130 Saint Helena  
94 Mauritania  131 Saint Kitts and Nevis  
95 Mauritius  132 Saint Lucia  
96 Mexico  133 Saint Vi ncent and the Grenadines  
97 Micronesia (Federated States of)  134 Samoa  
98 Mongolia  135 Sao Tome and Principe  
99 Montenegro  136 Saudi Arabia  
100 Montserrat  137 Senegal  
101 Morocco  138 Serbia  
102 Mozambique  139 Serbia and Montenegro  
103 Myanmar  140 Seychelles  
104 Namibia  141 Sierra Leone  
105 Nauru  142 Singapore  
106 Nepal  143 Sint Maarten (Dutch part)  
107 Netherlands Antilles  144 Socialist Federal Republic of Yugoslavia  
 G/SG/N/8/THA/4/Suppl.1 • G/SG/N/10/THA/4/Suppl. 1 • G/SG/N/11/THA/5/Suppl.1  
 
- 7 - 
 
   
145 Solomon Islands  163 Turkmenistan  
146 Somalia  164 Turks and Caicos Islan ds 
147 South Africa  165 Tuvalu  
148 South Sudan  166 Uganda  
149 Sri Lanka  167 Ukraine  
150 State of Palestine  168 Union of Soviet Socialist Republics  
151 Sudan  169 United Arab Emirates  
152 Suriname  170 United Republic of Tanzania  
153 Swaziland  171 Uruguay 
154 Syrian Arab Republic  172 Uzbekistan  
155 Tajikistan  173 Vanuatu  
156 The former Yugoslav Republic of Macedonia  174 Venezuela (Bolivarian Republic of)  
157 Timor -Leste  175 Viet Nam  
158 Togo 176 Wallis and Futuna Islands  
159 Tokelau  177 Western S ahara  
160 Tonga  178 Yemen  
161 Trinidad and Tobago  179 Zambia  
162 Tunisia  180 Zimbabwe  
 
 
 
__________