G/SG/N/8/THA/3/Suppl.1  
G/SG/N/10/THA/3/Suppl. 1 
 
19 April 2017  
(17-2138) Page: 1/5 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION OF A PROPOSAL TO EXTEND  A MEASURE  
THAILAND  
Supplement  
(Non Alloy Hot Rolled Steel Flat Products in Coils and Not in Coils ) 
The following communication, dated  18 April 2017 , is being circulated at the request of the 
Delegation of Thailand.  
 
_______________  
 
 
With reference to Thailand’s notification on the initiation of a review pursuant to Article 7.2 of the 
Agreement on Safeguards regarding the extension of the safeguard measure (WTO Document 
G/SG/N/6/THA/4/Suppl.1 -G/SG/N/14/THA/3) dated 21 October 2016. Thailand hereby provides 
notification to the Committee on Safeguards pursuant to Article 12.1(b) of the Ag reement on 
Safeguards, on its proposal to extend a safeguard measure that is being applied against imports of 
non alloy hot rolled steel flat products in coils and not in coils . 
Consistent with Article 12.2 of the Agreement on Safeguards, this notification  contains all pertinent 
information relating to the proposal to extend the safeguard measure on product concerned.  
1  THE SAFEGUARD MEASUR E CONTINUES TO BE NE CESSARY TO PREVENT O R REMEDY 
SERIOUS INJURY OR TH REAT THEREOF CAUSED BY INCREASED IMPORTS  AND THERE I S 
EVIDENCE THE INDUSTR Y CONCERNED IS ADJUS TING  
a. Basic Industry Indicators  
 
Item  2012  2013  2014  2015  2014  
(Jan-Jun) 2015  
(Jan-Jun) 2016  
(Jan-Jun) 
Sales (MT)*  100 92.40  86.90  80.40  100 98.30  84.81  
Market share (%)  91 74 94 98 92 98 98 
Import Share (%)  9 26 6 2 8 2 2 
Consumption (MT)*  100 114.00  84.17  75.23  100 92.29  79.85  
Production (MT)*  100 98.89  92.89  78.96  100 92.89  92.47  
Capacity Utilization (%)  36 36 34 29 33 31 31 
Productivity (%)  96 97 98 97 98 97 97 
Profit/Loss (million baht)  (7,731)  (3,559 ) (2,690)  (6,449)  (941)  (2,747)  185 
Employment (number)*  100 96.68  102.42  101.57  100 105.42  105.13  
* Index: year 2012 = 100 , Jan. -Jun. 2014 = 100 . G/SG/N/8/THA/3/Suppl.1 • G/SG/N/10/THA/3/Suppl.1  
 
- 2 - 
 
  In year 2013, Imports of product concerned dramatically increased inflicted serious injury on the 
domestic industry. Notably the market share of the domestic industry dropped from 91 per cent in 
year 2012 to 74 per cent in year 2013 while the import share jumped to 26 per cent in year 2013.   
 
In year 2013,  the sale volume decreased, on the other hand the consum ption increased meaning 
the import of product concerned replaced to the domestic product. After the imposition of 
safeguard measure in 2014 -2015, the import of product concerned were decreased. Therefore,  the 
domestic industry was able to regain market sha re in 2014 and 2015 which resulted in a reduction 
of losses in 2014.  
 
However, from January to June 2016, the import share and the market share of product concerned 
remain ed the same as January to June 2015. Although the domestic industry turn to get the p rofit 
compared with the same period in 2015, showing the better situation of domestic industry 
since 2012.   
 
The authorities also considered factors other than increased imports that might be causing serious 
injury of domestic industry including the decrea se of domestic demand caused by the effect of the 
global economic slowdown, management ability of the domestic industry, productivity of domestic 
industry, investment in SSI UK of Sahaviriya Steel Industry PCL., etc., by analysing each injurious 
indicator that may be affected by these factors. The authorities analysed those injurious effect so 
that any injury caused by these factors was not attributed to the flux of imports.  
 
In fact, the domestic industry currently has 7.9 million tons total production cap acity which is 
more than enough to meet the domestic demand. Moreover, it maintains productivity 
(output/input) approximately at the 96% - 98% level. Therefore, the lack of capability to supply 
the domestic demand is not the reason for the need of importat ion. In addition, the product 
concerned which had received special exemption i.e. for the production of spiral pipe products ; 
import for export, i.e., imports of products that are intended to be manufactured, further 
processed or incorporated into a finish ed product that will be exported from Thailand under the 
Industrial Estate Authority of Thailand Act; or, the Investment Promotion Act; or, the Customs Act.  
and as special grade steels granted to certain importers already precluded from this analysis.  
 
The above -mentioned demonstration showed the remedial effect of the safeguard measure in 
place and the linkage between imports of product concerned and injury of domestic industry.  
 
b. Condition of imports  
 
As imports maintain at 2% from Jan -Jun 2015 to Jan -Jun 2016, the domestic industry got the first 
profit since 2013. However the domestic industry still need more time to adjust with the import 
product.  
 
Item  2012  2013  2014  2015  2014  
(Jan-Jun) 2015  
(Jan-Jun) 2016  
(Jan-Jun) 
Import Share (%)  9 26 6 2 8 2 2 
Profit/Loss (million baht)  (7,731)  (3,559)  (2,690)  (6,449)  (941)  (2,747)  185 
 
c. Evidence that the Industry concerned is adjusting  
The Committee on Safeguard Measure of Thailand appointed the working group of steel industry 
experts to closely monitor the  adjustment plan in phase I and evaluated the achievement of the 
domestic industry. This working group will also monitor the adjustment plan in phase II.  
1. Initial Adjustment Plan for 2014 – 2016 (Phase I ) 
Since June 2014 until December 2016 when the safegua rd measure was in force, the domestic 
industry exercised several programs aiming at the overall cost reduction, product development and 
production efficiency in order to increase its competitiveness. The programs included:  
a. Increase production efficiency in cluding new machine installation, for expand the market 
and support the wider customers’ expectation;  G/SG/N/8/THA/3/Suppl.1 • G/SG/N/10/THA/3/Suppl.1  
 
- 3 - 
 
  b. Cost reduction programs : the domestic industry has planned  3 cost reduction programs 
i.e. the electricity reduction, the factories’ energy reduction, th e maintenance and idle 
time reduction programs;  
c. Product deve lopment and product value -added : the domestic industry has developed 
their product quality e.g. developing high tensile and increased a thickness. At this stage, 
the domestic industry aim to suppo rt the wider customers’ expectation.  
2. Proposed Adjustment Plan for 2017 – 2019 (Phase II)  
After the huge investment in Phase I and several programs being underway, this second phase 
involves the continuous implementation of the programs in Phase I by loweri ng the production 
cost, increasing production efficiency, development of new product standards and grades to meet 
wider customers’ expectation, improving the competency of human resources especially in 
production control and the study of investing in speci al grade and wider of hot rolled steel flat 
product.  
d. Public Interests  
The adjustment plan in Phase I and Phase II  have been the vital role to meet the public interest. 
To extend , the authorities conclude that it is in the long term public interest to ex tend the 
temporary protection to allow the industry to complete the adjustment process and regain 
competitiveness so as to provide the consumer with a variety of quality products at a reasonable 
price.   
 
2  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE  IN IMPORTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC  PRODUCTION  
See points 1.a and 1.b above.  
 
3  PRECISE DESCRIPTION OF THE PRODUCTS CONC ERNED  
The products concerned are non alloy hot rolled steel flat products in coils and not in coils , of a 
thicknes s of 0 .9 – 50.0 mm. and a width of 600.0 – 3,048.0 mm.  The products concerned are 
currently classified under the Thai Customs Tariff Code at 26 subheadings: 7208.36.00.031 , 
7208.36.00.032, 7208.36.00.033, 7208.36.00.090, 7208.37.00.041, 7208.37.00.042, 
7208.37.00.043, 7208.37.00.090, 7208.38.00.041, 7208.38.00.042, 7208.38.00.043, 
7208.38.00.090, 7208.39.00.041, 7208.39.00.042, 7208.39.00.043, 7208.39.00.090, 
7208.51.00.090, 7208.52.00.090, 7208.53.00.011, 7208.53.00.012, 7208.53.00.013, 
7208.53.00.090,       7208.54.00.011,      7208.54.00.012,     7208.54.00.013,    7208.54.00.090, 
originating in or exported from various countries.   
 
4  IF THE FINAL MEASURE  REPLACES A PROVISION AL MEASURE, OR IF A FINAL 
MEASURE IS EXTENDED,  A MEMBER IS ENCOURAG ED TO PROVIDE A WRIT TEN 
DESCRIPTION OF ANY P ART OF THE IMPORTED PRODUCT THAT WILL NO  LONGER BE 
SUBJECT TO THE MEASU RE  
Not applicable.  
5  PRECISE DESCRIPTION OF THE PROPOSED MEAS URE 
It is proposed that the safeguard measure continues to be necessary to prevent or remedy serious 
injury or threat thereof caused by increase imports while the domestic industry is adjusting.  
 
The proposed extended safeguard measure would be applied in the form of a tariff increase for 
three years starting from 7 June 2017 until 6 June 2020.   
 
In accor dance 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 the GATT 1994 and 
the WTO Agreement on Safeguards, the Committee on Safeguard Measures of  Thailand has G/SG/N/8/THA/3/Suppl.1 • G/SG/N/10/THA/3/Suppl.1  
 
- 4 - 
 
  decided to impose a safeguard duty which continues to be progressively liberalized during the 
proposed period of its validity as follows:  
 
Extended Duration  Extended Safeguard Duty  
7 June 2017 – 6 June 2018  21.00% of C.I.F. price  
7 June 201 8 – 6 June 2019  20.87% of C.I.F. price  
7 June 2019 – 6 June 2020  20.74% of C.I.F. price  
 
The measure will not be applied against the products concerned originating in or exported from 
any developing country as long as its share of imports of the products  concerned into Thailand 
does not exceed 3%. In this regard, as the list of developing countries whose share of imports of 
the products concerned into Thailand does not exceed 3% has remained unchanged since the last 
WTO notification under Article 9 footno te 2 (WTO Document G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -
G/SG/N/11/THA/4 dated 15 January 2015), the list of developing countries excluded from the 
measure remains the same.  
 
In addition, the exemption from the imposition of the proposed extended safeguard measur es will 
be granted to certain importers importing the products concerned into Thailand for special grade 
steels ; for the production of spiral pipe products ; and import for export, i.e., imports of products 
that are intended to be manufactured, further proc essed or incorporated into a finished product 
that will be exported from Thailand under the Industrial Estate Authority of Thailand Act; or, the 
Investment Promotion Act; or, the Customs Act.  
 
6  PROPOSED DATE OF INT RODUCTION OF THE MEA SURE  
The proposed measu re is expected to come into effect on 7 June 2017 . 
 
7  EXPECTED DURATION OF THE MEASURE  
The proposed safeguard measure adopted would be effective from 7 June 2017  until 6 June 2020 . 
 
8  PROPOSED DATE FOR TH E REVIEW  
Not applicable . 
9  INFORMATION RELATED TO THE PROP OSED EXTENSION OF A SAFEGUARD MEASURE  
(i) Evidence that the industry concerned is suffering serious injury and adjusting is provided 
under  1 a) and  c) as mentioned above. Therefore, the safeguard measure continues to be 
necessary to prevent or remedy serio us injury.  
 
(ii) Reference to the WTO document that notified the initial application of the measure ; 
 
- Initiation of the original investigation, G/SG/N/6/THA/4  (3 February 2014)  
 
- Imposition of provisional measures, G/SG/N/7/THA/3/Suppl.1 -
G/SG /N/11/THA/3/Sup pl.1 (25 September 2014 ) 
 
- Proposed definitive measure G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -G/SG/N/11/THA/4  
(15 January 2015 ) 
 
- Notifications under Article 9 footnote 2, G/SG/N/7/THA/3 -G/SG/N/11/THA/3  
(28 May 2014) 
 
(iii) Duration  of the proposed measure from init ial application till the date at which it will be 
extended;  
 
7 June 2014 (provisional measure) - 6 June 2020  
 G/SG/N/8/THA/3/Suppl.1 • G/SG/N/10/THA/3/Suppl.1  
 
- 5 - 
 
  (iv) Precise description of the measure in place prior to the date of extension  
Duty of 21.13% of C.I.F. price during 7 June 2016 - 6 June 2017   
10  INFORMATION RELATING  TO EXPORTING MEMBERS  
a. The main exporting countries to Thailand are the Republic of India , the Russian Federation  and 
the Republic of Korea.  
b. There are no exporting Members to which the measure does not apply for any reason other th an 
the application of Article 9.1 . 
 
11  THE DEADLINES FOR IN TERESTED PARTIES TO COMMENT OR ANY OTHER  
PROCEDURES RELEVANT TO THE DECISION TO A PPLY OR EXTEND A SAF EGUARD 
MEASURE  
The interested parties wishing to comment on the proposed extended measure and to at tend the 
public hearing should submit their comments to DFT by 21 April 2017 and provide the list of 
attendees (name and position), latest, on 18 April 2017.  
 
A public hearing has been set for interested parties directly concerned by this proceeding to be 
held on 24 April 2017 , conference room no. 1601, 16th floor, 9.00 hrs. , Department of Foreign 
Trade Building, at the address:  
Department of Foreign Trade (DFT), Ministry of Commerce of Thailand  
563 Nonthaburi Road, Bangkasor, Meung Nonthaburi 11000 THAILAN D 
Telephone: (662) 547 -5082 Facsimile: (662) 547 -4741 
Email: butrade@moc.go.th , ochissp@moc.go.th  
 
12  INFORMATION REGARDIN G PROCEDURES FOR PRI OR CONSULTATION WITH  THOSE 
MEMBERS HAVING A SUBSTANTIAL  INTEREST AS EXPO RTERS OF THE PRODUCT  
CONCERNED  
The interested parties with substantial interest are invited for prior consultations to be held  on 
21 April 2017 . The requests for prior consultation should submit to DFT as soon as possib le, but 
not later than 18 April 2017.  
 
 
__________