WORLD TRADE  
ORGANIZATION   
G/SG/N/6/RUS/2 
11 September 2012 
 (12-4846) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
AND THE REASONS FOR IT 
 
RUSSIA 
 
(Tableware and Kitchenware of Porcelain) 
 
 
The following communication, dated 6 September 2012, is being circulated at the request of 
the Delegation of the Russian Federation. 
 
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Pursuant to the Article 12.1(a) of the Agre ement on Safeguards the Russian Federation hereby 
provides notification to the Committee on Safeguards of the initiation of an investigation and the 
reasons for it.  
1. The date when the investigation was initiated  
  On 3 September 2012, the Department for Inte rnal Market Defence of the Eurasian Economic 
Commission initiated a safeguard investigation.  Pu blic notice of the safeguards investigation was 
provided on 3 September 2012.  
2. The product subject to the investigation  
  Tableware and kitchenware of porcelain (furthe r - products) classified under HS code 6911 10 
000 0.  HS code is indicated for information purpose.   
3. The reasons for the initiation of investigation  
 
In accordance with the Agreement on the a pplication of safeguards, anti-dumping and 
countervailing measures against third countries of 25  January 2008, Decision of the Board of the 
Eurasian economic commission of 7 March 2012 No. 1 a nd on the basis of results of consideration of 
the application filed by JSC "Do Promysly Verbiluk"  the Department for Internal Market Defence of 
the Eurasian Economic Commission initiated the safeguards investigation. 
 
 The application includes the following information:  
(1) Increase in imports of tableware and k itchenware of porcelain on the Customs Union 
customs territory (further – CU CT) during 2009 - 2011 in absolute terms by 65.1% in relation to the volume of production on CU CT - by 189.4%. Weighted  average price for tableware and kitchenware 
of porcelain imported to the CU CT, during 2009 - 2011 increased by 28.3%. 
 G/SG/N/6/RUS/2 
Page 2  
 
  (2)  Serious injury to the Customs Union (further – CU) industry.  
 The consumption of tableware and kitchenware of porcelain in the market of the Customs 
Union during 2009 - 2011 increased by 42.2%, while the volume of production and sales of products 
by producers of the CU decreased by 12.8% and 11.3 % respectively, and the share of their production 
to consumption decreased by 11.2%.  
 During the period under review a negative trend in the CU industry for the majority of 
operating and economic indicators was observed:  
 
-  Production of tableware and kitchenware of porcelain decreased by 0.8% (in 2011 
compared to 2010, a decline of 7.2%); 
 -  Sales of tableware and kitchenware of porcelain decreased by 2.8% (in 2011, 
compared with 2010 a decline of 6.7%);  
 
-  The share of economic sector produced products in the market of the CU by 7 %;   -  Capacity utilization decreased by 5.4%;   -  Profitability remained at a very low level; 
 
-  The number of personnel involved in th e production of products decreased by 2.7% 
(in 2011, compared with 2010 a decline of 5.8%), while productivity remained at the same level. 
 
At the same time: 
 - The growth of wages of personnel involved in the production of products by 26%;  
- An increase in investments aimed at development of production and cost reduction. 
 
(3)  Causal link between increased imports and serious injury of the CU industry. 
 
-  A constant increase in imports of tabl eware and kitchenware of porcelain on CU CT 
accompanied with the simultaneous substitu tion of products of the CU industry, 
whose share decreased by 11.2%; 
 
-  During the period under review import pr ices for tableware and kitchenware of 
porcelain were lower than in the CU indus try and the difference between the prices 
increased by 2.1 times, which had a negative impact on the price competitiveness of products produced by the CU industry, and led to its substitution in the market and 
the decreasing of operating and financial indicators of the CU industry.  
 
4. Further information 
 
 A copy of the Notice of Initiation which is available on http://www.tsouz.ru  is being 
submitted to the Committee on Safeguards. 1   
 
                                                      
1 In Russian only.  Those wishing to consult th is document are requested to contact Ms Budd 
(hilary.budd@wto.org ) or Ms Naville ( delphine.naville@wto.org ) of the Rules Division.  G/SG/N/6/RUS/2 
 Page 3 
 
 
   All views or comments should be made in writing and submitted to the following address: 
 
The Eurasian Economic Commission 
Department of internal market defense 
119121, Moscow, Russia, Smolenskiy bulvar, building 3/5 
Telephone / Facsimile: +7 (495) 604 4038 #1309, #3097, #1272 
 
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