G/SG/N/8/MYS/2  
G/SG/N/10/MYS/2  
 
21 April 2017  
(17-2198) Page: 1/3 
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  
MALAYSIA  
(Steel Concrete Reinforcing Bars)  
 
The following communication, dated 18 April 201 7, is being circulated at the request of the 
delegation of Malaysia . 
 
_______________  
 
 
(In continuation to document G/SG/N/7/MYS/2 -G/SG/N/11/MYS/2 dated 29 September 2016)  
 
Pursuant to Articles 12.1(b) and 12 .1(c) and Article 9, footnote 2, of the Agreement on 
Safeguards, Malaysia, hereby notifies the Committee on Safeguards that a decision to apply a 
definitive safeguard measures on steel concrete reinforcing bars ( "the Decision ") from various 
countries has b een made.  
 
Consistent with Article 12.2 of the Agreement on Safeguards, this notification contains all pertinent 
information relating to the Decision.  
 
1  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS OR AN 
INCREASE I N IMPORTS RELATIVE T O DO MESTIC PRODUCTION  
During the Period of Investigation (POI) commencing from 1 October 2012 to 30 September 2015, 
import volume of the Products under Investigation (PUI) into Malaysia has shown an increasing 
trend both in absolute and relative terms as show n in table below:  
 
a. Increased imports in absolute term  
Description  Year 1  Year 2  POID  
Total Import Volume (Indexed)  100 231 520 
% of increased imports (year -on-year)  - 131%  125%  
% of increase imports (Year 1 to POID)  420%  
 
b. Increased imports relative to domestic production  
Description  Year 1  Year 2  POID  
Imports relative to production  100 232 515 G/SG/N/8/MYS/2 • G/SG/N/10/MYS/2  
 
- 2 - 
 
  2  EVIDENCE OF SERIOUS INJURY OR THREAT THE REOF CAUSED BY INCRE ASED 
IMPORTS  
An evaluation of the overall position of the Domestic Industry, in the light of relevan t factors being 
considered, shows a significant overall impairment. It was thus concluded in the Decision that the 
Domestic Industry has suffered serious injury in the following factors:  
a. Market Share  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Inde xed) 
Imports  100 214 400 
Domestic Industry  100 93 76 
Other Domestic Producers  100 88 80 
Total Domestic Consumption  100 110 131 
The Domestic Industry 's market share decreased by 7 points in Year 2 and continued to shrink by 
another 17 points in POID. A s opposed to the continuously decreasing market share of the 
Domestic Industry, the imports market share increased by 114 points from Year 1 to Year 2 and 
by 186 points from Year 2 to POID.  
b. Sales  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Domestic Sales Volume  100 103 101 
Domestic Sales Revenue  100 99 86 
Despite the increase in sales volume, the Domestic Industry 's sales revenue continually declines. 
Overall, domestic sales revenue decreased by 1 point from Year 1 to Year 2 and continue s to 
shrink by another 13 points from Year 2 to POID.  
c. Profitability  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Operating Profit/ (Loss) of Domestic Operation  100 136 (121)  
Operating profit increased by 36 points from Year 1 to Year 2 bu t decreased by 257 points from 
Year 2 to POID. The Domestic Industry was seriously injured in terms of profitability.  
d. Cash  Flow  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Net cash provided by operating activities  100 195 (120)  
There was  positive cash flow in Year 1 which further increased in Year 2.  However, during POID, 
the Domestic Industry recorded a negative cash flow by 315 points. The Domestic Industry was 
seriously injured in terms of cash flow.  G/SG/N/8/MYS/2 • G/SG/N/10/MYS/2  
 
- 3 - 
 
  e. Employment and Wages  
Description  Year 1 
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Total Personnel for PUI  100 92 88 
Total Labour Cost  100 90 88 
The Domestic Industry 's trend of employment and wages showed gradual decrease during the POI. 
The Domestic Industry was seriously injured in ter ms of Employment and Wages.  
 
3  PRECISE DESCRIPTION OF THE PRODUCT CONCE RNED  
The PUI comprises of hot -rolled steel bars containing indentations, ribs, grooves or other 
deformation classified under the following HS/AHTN codes:  
7214.10.11 00, 7214.10.19 00, 721 4.10.21 00, 7214.10.29 00, 7214.20.31 00, 7214.20.39 00, 
7214.20.41 00, 7214.20.49 00, 7214.20.51 00, 7214.20.59 00, 7214.20.61 00, 7214.20.69 00, 
7214.30.10 00, 7214.30.90 00, 7214.99.11 00, 7214.99.19 00, 7214.99.91 00, 7214.99.92 00, 
7214.99.93 00, 7214 .99.99 00, 7228.10.10 00, 7228.10.90 00, 7228.20.11 00, 7228.20.19 00, 
7228.20.91 00, 7228.20.99 00, 7228.30.10 00, 7228.30.90 00, 7228.40.10 00, 7228.40.90 00, 
7228.50.10 00, 7228.50.90 00, 7228.60.10 00, 7228.60.90 00, 7228.80.11 00, 7228.80.19 00 
and 72 28.80.90 00  
 
4  PRECISE DESCR IPTION OF THE PROPOSED  MEASURE  
The Ministry of International Trade and Industry, Malaysia, being the competent authority, has 
recommended imposing safeguard duties for a period of three years beginning 14 April 2017 to 
13 April 20 20. In accordance with the Safeguards Act 2006 [Act 657], Malaysia's obligations under 
Article XIX of the GATT 1994 and the WTO Agreement on Safeguards, the safeguard duties shall 
be progressively liberalised as follows:  
Period  Definitive Safeguard Duties (%) 
14 April 2017 -13 April 2018  13.42  
14 April 2018 -13 April 2019  12.27  
14 April 2019 -13 April 2020  11.10  
 
The imposition of this safeguard duty is applicable to the People 's Republic of China which imports 
exceeded 3% individually.  
 
 
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