G/SG/N/8/CHN/2/Suppl.1  
G/SG/N/10/CHN/2  
G/SG/N/11/CHN/2  
 
23 May 2017  
(17-2782) Page: 1/9 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12. 1(B) OF THE AGREEMENT ON  
SAFEGUARDS  ON FINDING A SERIOUS  INJURY OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE  2 
OF THE AGREEMENT ON SAFEGUARDS  
CHINA 
(Sugar ) 
The following communication, dated 22 May 2017, is being circulated at the request of the 
delegation of China .* 
 
_______________  
 
 
On 22 May 2017, the Ministry of Commerce of the People 's Republic of China  published the 
decision to take a safeguard measure in respect of import of sugar from 22 May 2017  (Public 
Notice No.  26 of 2017 ). China  hereby notifies, pursuant to Article 12.1(c) of the WTO Agreement 
on Safeguards,  the decision to apply a safeguard measure  in respect of imports of sugar  and, 
pursuant to Article 9, footnote 2, of the WTO Agreement on  Safeguards, the non -application of a 
safeguard measure to developing countries under Article 9.1  of the Agreement on Safeguards.  
 
This communication is in follow-up to China 's notification s of 22 September 2016 under 
Article  12.1(a) of the WTO Agreement on Safeguards on initiating the safeguard investigation in 
document G/SG/N/6/CHN/2  and 26 April 201 7 under Article 12.1(b) on finding serious injury 
caused by inc reased imports of  sugar in document  G/SG/N/8/CHN/2  respectively. These 
notifications and the previous one submitted under Article 12.1(b) , which were made by adopting 
the latest formats for certain notifications under the Agreement on Safeguards circulated  by the 
Secretariat , do not cover all the content of the Public Notice No.  26 of 2017 of the Ministry of 
Commerce of China . The content not covered by the notifications can be accessed in the Public 
No. 26 Notice of 2017  of the Ministry of Commerce of Chin a published on the website 
http://www.mofcom.gov.cn . 
 
Notification to the Committee on Safeguards upon Taking a Decision to Apply a 
Safeguard Measure  
1. Provide evidence, citing relevant data and the applicable peri od of investigation of serious injury 
or threat thereof caused by increased imports.  
 
During the investigation period (from 2011 through the first quarter of 2016), affected by the 
increase d import s, the major production and operation indicators of the dom estic industry such as 
sales income, sales price, pre -tax profits and return on investment ha ve suffered an overall 
                                                
* Copy of MOFCOM's public notice and its a nnexes have been submitted electronically (in Chinese only). 
To consult these documents, please contact Ms Budd (hilary.budd@wto.org) or Ms Naville 
(delphine.naville@wto.org) of the Rules Division.  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  deterioration, and the domestic industry has suffered a significant and overall impairment. The 
increase d import s have caused serious injury  to the domestic industry.  
 
Major Production and Operation Indicators of the Domestic Industry  
Item  Unit 2011  2012  2013  2014  2015  2015  
1st 
quarter  2016  
1st 
quarter  
Demand  10K MT  1,374.91  1,403.92  1,494.34  1,504.84  1,510.00  396.65  397.44  
Import 
Quantity  10K MT  291.94  374.74  454.55  348.58  484.59  99.97  60.54  
Import Price  USD/MT  665.75  598.75  455.10  428.67  366.10  384.56  357.13  
Import 
market Share  % 21.23%  26.69%  30.42%  23.16%  32.09%  25.20%  15.23%  
Pressing 
capacity  10K MT  9,525.41  9,687.60  9,840.99  10,188.7
5 10,176.3
8 7,197.14  7,142.73  
Utilization of 
Capacity  % 68.44%  77.72%  80.35%  78.72%  63.97%  65.59%  56.35%  
Production  10K MT  786.46  894.30  953.09  972.80  801.03  572.81  484.36  
Sales 
Quantity  10K MT  779.40  926.78  948.30  964.88  821.54  236.25  176.40  
Market Sh are % 56.69%  66.01%  63.46%  64.12%  54.41%  59.56%  44.38%  
Sales Income  100M 
CNY 472.88  487.08  440.62  372.95  354.91  94.43  80.61  
Sales Price  CNY/MT  6,067.24  5,255.60  4,646.45  3,865.25  4,320.00  3,996.85  4,569.61  
Production 
Cost CNY/MT  4,422.60  4,428.54  4,212. 60 3,827.80  3,911.99  3,738.24  4,234.28  
Pre-tax Profit  100M 
CNY 77.09  17.01  -15.72  -51.51  -5.63 -9.32 -6.01 
Return on 
Investments  % 12.26%  2.31%  -2.03%  -6.62%  -0.71%  -0.99%  -0.56%  
Net Cash 
flow 100M 
CNY 51.61  41.87  -51.03  -65.44  -60.72  -91.66  -116.50  
Closing 
Inventory  10K MT  129.53  99.26  108.63  121.35  106.69  453.74  417.66  
Employment  Person  75,355  75,720  74,271  70,763  65,671  67,078  63,063  
Labor 
productivity  MT/Person  104.37  118.11  128.33  137.47  121.98  85.39  76.81  
 
2. Provide information on whether ther e is an absolute increase in imports or an increase in 
imports relative to domestic production (please see also Article 2.1 for the context).  
 
The imports of the product under investigation in absolute term have  shown "recent, sudden, 
sharp and significant " enough increase during the investigation period, and the percentage of 
imported product under investigation in domestic production  and the market share of the product 
under investigation have shown an overall  growth trend . 
 
Change of Import of Product un der Investigation  
Quantity Unit : 10k MT  
Period  Import 
Quantity  Percentage of 
Change  Period  Import 
Quantity  Percentage of 
Change  
2011 291.94  65.31% 1st quarter 2011 7.93 - 
2012 374.74  28.36%  1st quarter 2012 49.93  529.38%  
2013 454.55  21.30%  1st quarter 2013 52.88  5.92%  
2014 348.58  -23.31%  1st quarter 2014 86.36  63.31%  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  2015 484.59  39.02%  1st quarter 2015 99.97  15.76%  
- - - 1st quarter 2016 60.54  -39.44%  
 
Change of Quarterly Import of Product under Investigation during 2011 - 2015  
Unit: 10k MT  
Period  1st Quarter  2nd Quarter  3rd Quarter  4th Quarter  1st Quarter of 
Next Year  
2011 7.93 44.12  114.91  124.98  49.93  
2012 49.93  94.52  156.70  73.57  52.89  
2013 52.89  73.91  165.77  162.02  86.35  
2014 86.35  52.84  101.19  108.2  99.98  
2015 99.98  131.34  141.36  111.64  60.54 
 
Comparison of Import of Product under Investigation to Total Domestic Production  
Quantity Unit : 10k MT  
Period  Import 
Quantity  Percentage 
of Change  Domestic Total 
Production  Percentage 
of Change  Percentage of 
Domestic P roduction  
Accounted for by 
Produc t under 
Investigation  
2011 291.94  65.31% 1,066.66  - 27.37%  
2012 374.74  28.36%  1,178.80  10.51%  31.79%  
2013 454.55  21.30%  1,283.93  8.92%  35.40%  
2014 348.58  -23.31%  1,248.26  -2.78%  27.93%  
2015 484.59  39.02%  1,026.16  -17.79%  47.22%  
2015 Q1 99.97  - 734.08  - 13.62%  
2016 Q1 60.54  -39.44%  607.96  -17.18%  9.96%  
 
Change in Market Share of Product Under Investigation  
Quantity Unit : 10k MT  
Period  Domestic 
Demand  Import of 
Product under 
Investigation  Market 
Share  Change in Percentage points  
2011 1,374.91  291.94  21.23%  +8.39  
2012 1,403.92  374.74  26.69%  +5.46  
2013 1,494.34  454.55  30.42%  +3.73  
2014 1,504.84  348.58  23.16%  -7.25 
2015 1,510.00  484.59  32.09%  +8.93  
2015 Q1 396.65  99.97  25.20%  - 
2016 Q1 397.44  60.54  15.23%  -9.97 
Note: Market share = Import quantity  / Domestic Demand  
 
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 -national 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.)  
 
Sugar is the collective name of any sugar of which sucrose (molecular formula C12H22O11) is the  
main component, consisting of raw sugar and refined sugar. Raw sugar refers to the k ind of raw  
material sugar, made from sugar cane or sugar beets through processing, which is not directly  
edible or can  not be used as additives. Refined sugar refers to any sugar made from sugar cane or  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  sugar beets or raw sugar through processing, which is  directly edible or can be used as additives,  
such as white granulated sugar, brown granulated sugar, superfine sugar, brown sugar, etc.  
 
This product is classified under the following code of the Customs Import and Export Tariff of the  
People's Republic o f China: 17011200, 17011300, 17011400, 17019100, 17019910, 17019920,  
17019990 (among which code 17011300 and 17011400 is classified under code 17011100 in the  
2011 version of the Customs Import and Export Tariff of the People's Republic of China).  
 
4. If t he final measure replaces a provisional 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 
longer 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.  
 
The safeguard measure will take the form of  an additional ad valorem  duty of 45%, which will be  
progressively reduced to 35% for the third year of its implicaiton . This duty will apply to imports 
outside  the existing  tariff quota .  
 
6. Provide proposed date of introduction of the measure.  
 
The safe guard measure should enter into force on  22 May 2017.  
 
7. Provide expected duration of the measure.  
 
The measure imposed will remain in force for three years . 
 
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 applicable.  
 
9. If the expected duration is over one year, provide expected timetable for progressive 
liberalizati on of the measure.  
 
The measure shall be progressively liberalized at regular intervals  as follows:  
 
Duration  Additional ad valorem  duty 
22 May 2017 -21 May 2018  45% 
22 May 2018 -21 May 2019  40% 
22 May 2019 -21 May 2020  35% 
 
10. If the notification relate s only to a finding of serious injury or threat thereof, and does not 
relate to a decision to apply or extend a safeguard measure:  
(i) provide the deadlines for interested parties to comment or any other procedures relevant to the 
decision to apply the mea sures, and  
(ii) provide information regarding procedures for prior consultation with those Members having a 
substantial interest as exporters of the product concerned.  
Please refer to the notification in the document G/SG/N/8/CHN/2 . 
 
11. If the measure is being extended, also provide:  
(i) evidence that the industry concerned is adjusting and that the safeguard measure continues to 
be necessary to prevent or remedy serious injury;  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  (ii) reference to the WTO document that notified the initial application of th e measure;  
(iii) duration of the measure from initial 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 Artic le 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.")  
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.  
 
Brazil, Thailand, Cuba, Australia, Guatemala , Republic of Korea  were the major exporting Members 
of sugar in 201 5. The import shares of these countries collectively were more than 97 %. 
 
(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.  
 
13. Members are encouraged to attach, in an electronic form, publicly available document(s) 
containing the relevant decision(s) made by the competent authority. This document may be in 
the origi nal language of the Member, even when the language is not one of the official languages 
of the WTO. The document will neither be translated nor circulated to the Committee, but will be 
made available by the Secretariat to Members requesting it.  
 
Public Not ice of the Ministry of Commerce of the People 's Republic of China (2017 No.  26), which 
was adopted on 22 May 201 7, is publicly available and may be consulted at  
http://www. mofcom.gov.cn . The Public Notice in electro nic form is attached herewith.  
 
 
Notification to the Committee on Safeguards of Non -application of Safeguard Measure to  
Developing Countries  (Regions)  
1. Specify the measure.  
 
The safeguard measure is described in the notification submitted under Article 1 2.1(c) of the  
Agreement on Safeguards.  
 
2. Specify the product subject to the measure.  
 
The product subject to the measure is described in the notification submitted under Article 12.1(c)  
of the Agreement on Safeguards.  
 
3. Specify the developing countries  to which the measure is not applied under Article 9.1 of the  
Agreement on Safeguards, and the import shares of these countries individually and collectively.  
 
The list of developing countries (regions) with their import shares individually excluded from t he 
measure is attached herewith.  The import shares of these countries (regions) collectively are  
about  2.48%.  
 
4. Subsequently, if there is a change  in the list of developing countries exempted from the 
application of the safeguard measure pursuant to Art icle 9.1, please notify:  
(i) the reference to the WTO document that notified the Members about the initial action  under 
footnote 2 to Article 9.1;  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  (ii) if applicable, names of the countries which are dropped from the list of developing  countries to 
which t he safeguard measure does not apply pursuant to Article 9.1, the  list of the countries 
remaining on the list, the individual and collective import shares  of the developing countries 
remaining on the list, and the date on which the safeguard  measure applies  to the countries 
dropped from the list;  
(iii) if applicable, names of the countries which are added to the list of developing  countries to 
which the safeguard measure does not apply pursuant to Article 9.1, the  list of all the countries on 
the list, the i ndividual and collective import shares of the  developing countries on the list, and the 
date from which the safeguard measure does  not apply to the countries which are added to the 
list. 
Not applicable.  
 
List of Developing Countries (Regions) Excluded from  the Application of the Safeguard 
Measure  
Countries (Regions)  Import Share Individually  
 Afghanistan  0.00%  
 Bahrain  0.00%  
 Bangladesh  0.00%  
 Bhutan  0.00%  
 Brunei  0.00%  
 Myanmar  0.11%  
 Cambodia  0.05%  
 Korea, DPR  0.00%  
 Hong Kong, China  0.00%  
 India 0.03%  
 Indonesia  0.00%  
 Iran 0.00%  
 Iraq 0.00%  
 Jordan  0.00%  
 Kuwait  0.00%  
 Lao PDR  0.00%  
 Lebanon  0.00%  
 Macao, China  0.00%  
 Malaysia  0.18%  
 Maldives  0.00%  
 Mongolia  0.00%  
 Nepal  0.00%  
 Oman  0.00%  
 Pakistan  0.00%  
 Palestine  0.00%  
 Philip pines  0.00%  
 Qatar  0.00%  
 Saudi Arabia  0.00%  
 Singapore  0.00%  
 Sri Lanka  0.00%  
 Syrian Arab Republic  0.00%  
 Turkey  0.00%  
 United Arab Emirates  0.05%  
 Yemen  0.00%  
 Viet Nam  0.00%  
 Timor -Leste  0.00%  
 Kazakhstan  0.00%  
 Kyrgyzstan  0.00%  
 Tajikista n 0.00%  
 Turkmenistan  0.00%  
 Uzbekistan  0.00%  
 Algeria  0.00%  
 Angola  0.00%  
 Benin  0.00%  
 Botswana  0.00%  
 Burundi  0.00%  
 Cameroon  0.00%  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  Countries (Regions)  Import Share Individually  
 Canary Islands  0.00%  
 Cape Verde  0.00%  
 Central African Republic  0.00%  
 Ceuta  0.00%  
 Chad 0.00%  
 Comoros  0.00%  
 Congo  0.00%  
 Djibouti  0.00%  
 Egypt  0.00%  
 Equatorial Guinea  0.00%  
 Ethiopia  0.00%  
 Gabon  0.00%  
 Gambia  0.00%  
 Ghana  0.00%  
 Guinea  0.00%  
 Guinea -Bissau  0.00%  
 Cote d’lvoire  0.00%  
 Kenya  0.00%  
 Liberia  0.00%  
 Libya 0.00%  
 Madagascar  0.00% 
 Malawi  0.00%  
 Mali 0.00%  
 Mauritania  0.00%  
 Mauritius  0.01%  
 Morocco  0.00%  
 Mozambique  0.00%  
 Namibia  0.00%  
 Niger  0.00%  
 Nigeria  0.00%  
 Reunion  0.00%  
 Rwanda  0.00%  
 Sao Tome and Principe  0.00%  
 Senegal  0.00%  
 Seychelles  0.00%  
 Sierra Leo ne 0.00%  
 Somalia  0.00%  
 South Africa  0.00%  
 Western Sahara  0.00%  
 Sudan  0.00%  
 Tanzania  0.00%  
 Togo 0.00%  
 Tunisia  0.00%  
 Uganda  0.00%  
 Burkina Faso  0.00%  
 Congo, DR  0.00%  
 Zambia  0.00%  
 Zimbabwe  0.00%  
 Lesotho  0.00%  
Melilla  0.00%  
Swaziland  0.00%  
Eritrea  0.00%  
Mayotte  0.00%  
Republic of South Sudan  0.00%  
Albania  0.00%  
Andorra  0.00%  
Gibraltar  0.00%  
Monaco  0.00%  
San Marino  0.00%  
Georgia  0.00%  
Armenia  0.00%  
Azerbai jan 0.00%  
Belarus  0.00%  
Moldova  0.00%  
Russian Federation  0.00%  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  Countries (Regions)  Import Share Individually  
Ukraine 0.00%  
State Union of Serbia and Montenegro  0.00%  
Macedonia, FYR  0.00%  
 Bosnia and Herzegovina  0.00%  
 Vatican City State  0.00%  
 Faroe Islands  0.00%  
 Serbia  0.00%  
 Montenegro  0.00%  
 Antigua & Barbuda  0.00%  
 Argentina  0.00%  
 Aruba  0.00%  
 Bahamas  0.00%  
 Barbados  0.00%  
 Belize  0.00%  
Bolivia, Plurinational State of  0.00% 
 Bonaire  0.00%  
 Cayman Islands  0.00%  
 Chile 0.00%  
 Colombia  0.01%  
 Dominica  0.00%  
 Costa Rica  0.00%  
 Curacao  0.00%  
 Dominican Republic  0.00%  
Ecuador  0.00%  
French Guiana  0.00%  
Grenada  0.00%  
Guadeloupe  0.00%  
Guyana  0.00%  
Haiti 0.00%  
Honduras  0.00%  
Jamaica  0.00%  
Martinique  0.00%  
Mexico  0.00%  
Montserrat  0.00%  
Nicaragua  0.00%  
Panama  0.00%  
Paraguay  0.00%  
Peru 0.00%  
Puerto Rico  0.00%  
Saba 0.00%  
Saint Lucia  0.00%  
Saint Martin Islands  0.00%  
Saint Vincent and Grenadines  0.00%  
El Salvado r 2.04%  
Suriname  0.00%  
Trinidad and Tobago  0.00%  
Turks and Caicos Islands  0.00%  
Uruguay  0.00%  
Venezuela  0.00%  
Virgin Islands, British  0.00%  
Saint Kitts and Nevis  0.00%  
Saint. Pierre and Miquelon  0.00%  
Netherlands Antilles  0.00%  
Greenland  0.00%  
Bermuda  0.00%  
Cook Islands  0.00%  
Fiji 0.00%  
Gambier Islands  0.00%  
Marquesas Islands  0.00%  
Nauru  0.00%  
New Caledonia  0.00%  
Vanuatu  0.00%  
Norfolk Island  0.00%  
Papua New Guinea  0.00%  
Society Islands  0.00%  G/SG/N/8/CHN/2/Suppl.1 • G/SG/N/10/CHN/2 • G/SG/N/11/CHN/2  
 
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  Countries (Regions)  Import Share Individually  
Solomon Islands  0.00%  
Tonga  0.00%  
Tuamotu Islands  0.00%  
Tubai Islands  0.00%  
Samoa  0.00%  
Kiribati  0.00%  
Tuvalu  0.00%  
Micronesia, Federated States  0.00%  
Marshall Islands  0.00%  
Palau  0.00%  
French Polynesia  0.00%  
Wallis and Futuna  0.00%  
 
 
__________