G/SG/N/8/EGY/8  
G/SG/N/10/EGY/8  
G/SG/N/11/EGY/10  
 
26 October 2015  
(15-5640)  Page: 1/4  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION OF A PROPOSAL TO IMPOSE A MEASURE 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
EGYPT 
(Automotive Batteries) 
The following communication, dated 23 October 2015, is being circulated at the request of the 
Delegation of Egypt.  
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  1  NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS ON 
PRELIMINARY FINDING A SERIOUS INJURY OR THREAT THEREOF CAUSED BY 
INCREASED IMPORTS 
1.1  Information on whether there is an absol ute increase in imports or an increase in 
imports relative to domestic production 
The product under investigation is Electric lead-acid accumulators of capacity of 36 up to 
90 Amp-hour, whether or not rectangular (including square) of a kind used for starting piston 
engines (Automotive Batteries), classified under HS Code: 85 07 10 00 90 within the Egyptian 
Customs Tariff.  
Unit: (000 Batteries) 
Statement 2011 2012 2013 2014 
Import Volume  1,236 1,937 2,131  1,919 
Change% - 57 72  55 
Change in Imports as percentage of Production %  - 64 87  33 
 
 The above table shows an increase of 57.72 and 55% in the imports in absolute terms 
during the years of 2012, 2013 and 2014 respectively. 
 It is noticed that the imports of the product under investigation in Egypt during the period of 
investigation also increased by 64.87 and 33% as a percentage of the production of the 
domestic industry during the years of 2012, 2013 and 2014 respectively. G/SG/N/8/EGY/8 • G/SG/N/10/EGY/8 • G/SG/N/11/EGY/10 
 
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  1.2  Evidence of serious injury or thre at thereof caused by increased imports 
The determination of serious injury or threat of se rious injury is based on evaluation of the overall 
position of the domestic industry, in light of all the relevant factors having a bearing on the situation of that industry as discussed below: 
 
a. Sales and Market share: 
Unit: (000 Batteries) 
 
 
 The above table indicates that there was a dec line in the domestic sales and their market 
share during the years 2012 and 2013. Also the IA concludes that despite the increase in 
domestic sales in 2014, their market share declined by 15% due to the increase in market 
size. 
b. Production and Capacity Utilization: 
Unit: (000 Batteries) 
Statement 2011 2012 2013 2014 
Change in Production Volume % - (4) (8) 17 
Change in Available Capacity % - 146 146 148 
Change in Utilized Capacity % - (61) (62) (53) 
 
- The above table shows a decline of 4 and 8% in the production volume during the years 
2012 and 2013 respectively, and a decline of 61 and 62% in the capacity utilization despite the increase in the available capacity during the same period. 
 
- Also, the above table shows that in 2014, the production increased by 17% and the capacity 
utilization of the company declined by 53% de spite the increase in the available capacity, 
which demonstrates that the increase in production was not reflected on the increase in the 
available capacity. 
 
c. Employment and Productivity: 
Statement 2011 2012 2013 2014 
Change in Labour (Worker) % - (8) (5) (8) 
Change in Productivity 
(Battery/Worker) % - 4 (3) 27 
 
The above table shows a decline of 8.5 and 8%  in the labour during the years 2012, 2013 and 
2014 respectively. 
Also, the above table shows an increase of 4% in  the average of productivity per worker in 2012 
due to the decline in the percentage of labour was more than the decline in the percentage of Statement 2011 2012 2013 2014 
Change in Domestic Industry's Sales % - (5) (17) 27 
Import Volume 1,236 1,937 2,131 1,919 
Change in Apparent Market Size % - 43 53 49 
Change in Domestic Market Share % - (34) (46) (15) 
Change in Imports' Market Share % - 10  13  4  G/SG/N/8/EGY/8 • G/SG/N/10/EGY/8 • G/SG/N/11/EGY/10 
 
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  production during the same year. In addition, th e table shows a decline of 3% in the average of 
the productivity per worker in 2013 due to the decl ine in both labour and production during the 
same year. In 2014, the productivity continued to increase by 27% due to the decline of 8% in 
labour coinciding with the increase of 17% in production. 
 
d. Profits and Losses: 
Unit: LE/Battery 
Statement 2011 2012 2013 2014 
Change in Average 
Profit per Unit % - (92) (112) (55) 
 
- The above table shows that the domestic industry sustained losses per unit in 2011. Such 
losses declined in 2012 to reach 92% when compared to previous year. In 2013, losses declined to reach percent of 112 to turn to  profits. In 2014, the imports increased in 
absolute terms and relative to production  and profits turned again into losses. 
 
e. Unforeseen Developments: 
- The domestic industry mentions that the trade preferences and exemption from customs 
duties resulted from the application of trade agreements, free zones agreements, 
partnership agreements and development of  trade exchange between Egypt and the 
countries of the world are considered one of the unforeseen developments that resulted in 
an increase in the imports volumes.  
 
f. In accordance with the statistics obtained by  the Investigating Authority, the IA finds 
that the substantial increase in transportation prices resulted in an increase in the market size and 
demand for the product under investigation and a subsequent increase in imports of the product concerned.  
1.3  Adjustment Plan 
The Domestic Industry has provided a viable adjustment plan, which focuses on the following: 
 
-     
 Labour training; 
 Using modern technology; 
 Quality maintenance centres;  
 Improve quality infrastructure to match the environmental requirements. 
1.4  Product involved The product under investigation is Electric lead-acid accumulators of capacity of 36 up to 
90 Amp/hour, whether or not rectangular (including square) of a kind used for starting piston 
engines (Automotive Batteries), classified under HS Code: 85 07 10 00 90 within the Egyptian Customs Tariff. 
 
1.5  Precise description of the proposed measure 
The Investigating Authority proposed imposing safeguard measure for three years at the rate of 
additional duty 16% of the CIF value and not less than 46 L.E. per battery for the first year, 12% 
of the CIF value and not less than 34 L.E. per batte ry for the second year and 8% of the CIF value 
and not less than 23 L.E. per battery for the third year on imports of Automotive Batteries into Egypt. 
 G/SG/N/8/EGY/8 • G/SG/N/10/EGY/8 • G/SG/N/11/EGY/10 
 
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  1.6  Proposed date of imposi tion of safeguard Measure 
The safeguard measure will be applicable from the date of publication of the ministerial decree in 
this regard in the Egyptian official gazette.  
2  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS 
2.1  Specify the measure 
The Investigating Authority proposed imposing safeguard measure for three years at the rate of 
additional duty 16% of the CIF value and not less than 46 L.E. per battery for the first year, 12% 
of the CIF value and not less than 34 L.E. per batte ry for the second year and 8% of the CIF value 
and not less than 23 L.E. per battery for the third year on imports of Automotive Batteries into 
Egypt. 
 2.2  Specify the product subject to the measure 
The product under investigation is Electric lead-acid accumulators of capacity of 36 up to 90 
Amp/hour, whether or not rectangular (including squa re) of a kind used for starting piston engines 
(Automotive Batteries), classified under HS Code: 85 07 10 00 90 within the Egyptian Customs 
Tariff. 
 2.3  Specify the Developing Countries to  which the measure is not applied under 
Article 9.1 of the Agreement on Safeguards 
Imports from Developing Country Members shall not be subject to the definitive safeguard 
measure as long as each Member's imports do not exceed 3% of total imports into Egypt and the share of the Members with less than a 3% import share do not collectively account for more than 
9% of total imports into Egypt. 
 CORRESPONDENCE ADDRESS 
 
Ministry of Trade and Industry,  Trade Agreements Sector  Central Department for International Trade Policies  
(Anti-dumping, Subsidy and Safeguard Department)  
Head of the Central Department for International Trade Policies "Ibrahim El Sginy"  Ramses Extension St., Nasr City, Al-Maleya Towers  
Tower 6 – Floor 9  
Tel: 00 202 - 23422479  Fax: 00 202 - 23420784  
e-mail: Tas@tas.gov.eg  
 
 
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