G/SG/N/8/UKR/1/Suppl.3  
G/SG/N/14/UKR/1/Suppl.2  
 
6 October 2014  
(14-5621)  Page: 1/7  
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 UNDER ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS 
UKRAINE  
Supplement 
(Casing and pump-compressor seamless steel pipes) 
The following communication, dated 3 October 2014, is being circulated at the request of the 
Delegation of Ukraine1. 
 
_______________ 
 
 Considering of investigation the Interdepartmental Commission on International Trade 
(hereinafter - Commission) has taken its decision № SP-182/2008/143-31 of 23.07.2008 "On the 
application of special measures on imports of casing and pump-compressor seamless steel pipes regardless of country of origin and exports".  
Measures have been applied for three years from 01.10.2008 to 30.09.2011 by the introduction of 
import quotas. Annual special import quota amount ed to 14,504 tons in the first year period. 
There were also gradual liberalization measures applied by increasing the annual special quota by 
5% - up to 15,230 tons for the second year period, and by 10% - to 15,955 tons in the third year 
period.   
Measures had been applied to imports of goods to  Ukraine of the following description: casing and 
pump-compressor seamless steel pipes with the outer diameter not exceeding 406.4 mm, classified under the UKTZED
2 code 7304 29 11 00. After following nomenclature changes the 
goods are classified under UKTZED codes 7304 29 10 00 and 7304 29 30 00. 
 
Relevant notifications under Article 12.1 (a), (b)  and (c) see as  
G/SG/N/6/UKR/1-G/SG/N/8/UKR/1-G/SG/N/10/UKR/1 of 22, August 2008. 
 
On 30 September 2011 by its Decision № SP – 261/2011/4423-28 the Commission extended 
application of measures for 3 years with gradual liberalisation of import quota from 16,753 tons 
(04 October 2011 – 30 September 2012) to 17,591 tons (1 October 2012 – 30 September 2013) 
and 18,471 tons (1 October 2013 – 30 September 2014).  Relevant notifications under Article 12.1 (b) and (c):  G/SG/N/8/UKR/1/Suppl.1, G/SG/N/14/UKR/1 
of 31 October 2011 and G/SG/N/8/UKR/1/Suppl.2-G/SG/N/14/UKR/1/Suppl.1 of 30 July 2013, 
G/SG/N/8/UKR/1/Suppl.2/Corr.1-G/SG/N/14/UKR/1/Suppl.1/Corr.1 of 8 August 2013. 
                                               
1 A copy of Notice 29_09_14 in its original language has been submitted electronically. To consult this 
document, please contact Ms Richards (anne .richards@wto.org) from the Rules Division. 
2 UKTZED is the Ukrainian Foreign Economic Activity Commodity Classification, was based on 
Harmonized System 2002 in that time. Since 2014 it is based on HS2012. G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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On 29 September 2014 the Commission has taken its decision № SP-323/2014/4421-06 
concerning initiation of the review of applicatio n of special measures and their extension for the 
period of review (six months). 
 
1. Evidence, relevant data and the applicable period of investigation  of serious injury 
or threat thereof caused  by increased imports 
Period of investigation was determined as from 1 October 2010 till 30 September 2013 (some 
particular characteristics were compared with last year period of the initial investigation 2006 for reference).  
Certain social and economic indicators of the do mestic industry were analysed for the period 
before application of safeguard measures and for the period of their application.  
Table 1.1 
Indicators Period of 
investigation 
2006 ІV quarter 2010 
– 
IIІ quarter 2011  ІV quarter 2011 
– 
III quarter 2012 ІV quarter 
2012 – 
III quarter 
2013 
Sales of goods produced by domestic industry on domestic market 
Sales, tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 164.55 188.46 146.57 
Rate of the 
increase/decrease, % - 64.55 88.46 46.57 
Value of sales of goods produced by domestic industry on domestic market 
Value, thousand USA 
dollars [ ] [ ] [ ] [ ] 
Relative indicators, % 100 192.79 230.93 175.51 
Rate of the 
increase/decrease, % - 92.79 130.93 75.51 
Export of goods produced by domestic industry  
Sales, tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 92.82 126.76 100.98 
Rate of the 
increase/decrease, % - -7.18 26.76 0.98 
Value of export of goods produced by domestic industry 
Value, thousand USA 
dollars [ ] [ ] [ ] [ ] 
Relative indicators, % 100 101.55 151.25 116.32 
Rate of the 
increase/decrease, % - 1.55 51.25 16.32 
Domestic industry share on the domestic market 
Share, % [ ] [ ] [ ] [ ] 
Relative indicators, % 100 128.28 124.33 122.01 
Rate of the 
increase/decrease, % - 28.28 24.33 22.01 
Consumption of goods on the domestic market 
Consumption, tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 128.28 151.58 120.13 
Rate of the 
increase/decrease, % - 28.28 51.58 20.13 
Production 
Production, tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 85.41 103.29 82.85 
Rate of the 
increase/decrease, % - -14.59 3.29 -17.15 
Production capacity 
Production capacity, 
thousand tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 102.12 102.16 100.64 
Rate of the 
increase/decrease, % - 2.12 2.16 0.64 G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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  Indicators Period of 
investigation 
2006 ІV quarter 2010 
– 
IIІ quarter 2011  ІV quarter 2011 
– 
III quarter 2012 ІV quarter 
2012 – 
III quarter 
2013 
Capacity utilization  
Share of capacity 
utilization, % [ ] [ ] [ ] [ ] 
Relative indicators, % 100 83.6 101.08 82.29 
Rate of the 
increase/decrease, % - -16.4 1.08 -17.71 
 
Table 1.2 
Indicators ІV quarter 2010 – 
IIІ quarter 2011 ІV quarter 2011 – 
III quarter 2012 ІV quarter 2012 – 
III quarter 2013 
Product stock 
Product stock, tons [ ] [ ] [ ] 
Relative indicators, % 100 583.34 193.38 
Rate of the increase/decrease, % - 483.34 93.38 
Domestic industry cost of production 
cost of production, USA dollar/ 
ton [ ] [ ] [ ] 
Relative indicators, % 100 104.81 105.92 
Rate of the increase/decrease, % - 4.81 5.92 
Liquidity  
Liquidity, % [ ] [ ] [ ] 
Relative indicators, % 100 115.28 76.42 
Rate of the increase/decrease, % - 15.28 -23.58 
Productivity 
Productivity, tons/person [ ] [ ] [ ] 
Relative indicators, % 100 116.98 91.24 
Rate of the increase/decrease, % - 16.98 -8.76 
Financial results of domestic industry on domestic market3 
Profits/losses, thousand 
dollars USA [ ] [ ] [ ] 
Relative indicators, % 100 118.27 71.32 
Rate of the increase/decrease, % - 18.27 -28.68 
Financial results of domestic industry 
Profits/losses, thousand 
dollars USA [ ] [ ] [ ] 
Relative indicators, % 100 11.32 -774.63 
Rate of the increase/decrease, % - -88.68 -874.63 
Investments in modernization  
Investments, thousand 
hryvnas [ ] [ ] [ ] 
Relative indicators, % 100 152.69 124.71 
Rate of the increase/decrease, % - 52.69 24.71 
Domestic industry employment 
Employment, persons [ ] [ ] [ ] 
Relative indicators, % 100 104.44 110.12 
Rate of the increase/decrease, % - 4.44 10.12 
*The enterprises did not receive the in come from the investment of capital. 
 
On the basis of this analysis of main economic and social indicators for the domestic industry the 
conclusions are following. 
 
                                               
3 Calculated on the basis of data on production cost , volume and price of sale s on the domestic market. G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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  Domestic industry share on the domestic market has increased in IV quarter 2010 – 
III quarter 2011 by 28.28% compared with 2006. Ho wever in the following periods the share was 
gradually decreasing and corresponding increase to the base of comparison was 24.33% in IV quarter 2011 – III quarter 2012 and 22.01%  in IV quarter 2012 – III quarter 2013. 
During period of application of measures the ex port of goods by domestic industry has growth 
trend.  
During investigation period the production of the domestic industry amounted 82.85% - 103.29% 
compared with base period production.  Domestic industry production cost did not changed significantly in IV quarter 2012 – 
III quarter 2013 compared with IV quarter 2010 – III quarter 2011, having growth about 5%. 
During period of application of measures the product stock increased by 93.38% in IV quarter 2012 - III quarter 2013 compared with IV quarter 2010 – III quarter 2011. 
 
Domestic industry share on the domestic market has increased compared with the based period. However, during period of application of measur es there is a strong tendency for reduction. 
 
During period of application of measures the domestic industry profitability has reduction trend and in the period IV quarter 2012 - III quarter 2013 it was negative. However it should be noted that activity on the domestic market wa s profitable and increased by 18.27% in 
IV quarter 2011 - III quarter 2012 and decreased by 28.68% in IV quarter 2012 - III quarter 2013 
compared with IV quarter 2010 – III quarter 2011.  
Domestic industry employment increased by 10 % in IV quarter 2012 - III quarter 2013 compared 
with IV quarter 2010 – III quarter 2011.  
2. Information on whether there is an absolut e increase in imports or an increase in 
imports relative to domestic production  
Table 2 
Indicators Investigation period 
2006 ІV quarter 2010 –  
IIІ quarter 2011 ІV quarter 2011 – 
III quarter 2012 ІV quarter 
2012 – 
III quarter 
2013 
Import of goods to Ukraine 
Total imports, tons 18,756 7,464 11,559 10,433 
Relative indicators, % 100 39.80 61.63 55.62 
Rate of the 
increase/decrease, % - -60.20 -38.37 -44.38 
Imports relative to production of domestic industry 
Share, % [ ] [ ] [ ] [ ] 
Relative indicators, % 100 46.69 59.76 67.23 
Rate of the 
increase/decrease, % - -53.31 -40.24 -32.77 
Consumption of goods on domestic market 
Consumption, tons [ ] [ ] [ ] [ ] 
Relative indicators, % 100 128.28 151.58 120.13 
Rate of the 
increase/decrease, % - 28.28 51.58 20.13 
Share of import in consumption of goods on domestic market 
Share, % [ ] [ ] [ ] [ ] 
Relative indicators, % 100 31.02 40.66 46.30 
Rate of the 
increase/decrease, % - -68.98 -59.34 -53.70 
Considering data in the table 2 th ere can be following conclusions. 
 
During period of application of the measures th e import of goods to Ukraine decreased by 60,2% 
in ІV quarter 2010 – II І quarter 2011, by 38.37% in IV quarter 2011 – III quarter 2012 and 
by 44.38% in IV quarter 2012 - III quarter 2013 compared with the investigation period. 
Meanwhile in IV quarter 2013 – I quarter 2014 imports amounted 6025 tons that shows the possibility of import growth in the last quarter period. G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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  There is an import growth trend relative to  the domestic industry production. Thus in 
ІV quarter 2010 – II І quarter 2011 the share of import was less by 53.31%, in IV quarter 2011 – 
III quarter 2012 – by 40.24% and in IV quarte r 2012 - III quarter 2013 - by 32.77% compared 
with the investigation period. 
 
The consumption on domestic market increased compared with 2006: by 28.28% in ІV quarter 2010 – II І quarter 2011, by 51.58% in IV quarter 2011 – III quarter 2012 and by 20, 
13% in IV quarter 2012 - III quarter 2013. 
Share of import in consumption on domestic market decreased by 69% in ІV quarter 2010 – 
IIІ quarter 2011 compared with the base period. But during the investigation period there is a 
growth trend. 
 
Thus, the import decreased compared with the base period however there is growth trend in the period of application of measures. The situation is similar with import dynamics relative to 
domestic industry production and with the share of import in domestic market consumption. 
As a whole all presented factors give reasons to conclude about serious injury to domestic industry at the period of investigation. 
 
3. Description of the product involved 
Casing and pump-compressor seamless steel pipes with the outer diameter not 
exceeding 406.4 mm, classified under the UKTZED codes 7304 29 10 00 and 7304 29 30 00. 
 
4. Description of any part of the imported product that will no longer be subject to 
the measure 
Not applicable.  
5. Precise description of the proposed measure 
 
Extension of import quotas for 6 months period with quota amounted 9328 tons. Import quotas 
are administered through the issuance by the Mi nistry of Economic Development and Trade of 
Ukraine of special licenses. The special quota is allocated as follows:  
Exporting country Quota for the period 
01.10.2014 - 31.03.2015 
Russian Federation 6631 
Austria 1367 
Poland 614 
Romania 117 
Slovak Republic 95 
India 40 
China 27 
Other 437 
Total 9328 
 
6. Date of introduction of the measure  
1 October 2014. 
 7. Expected duration of the measure 
 
Six months, from 1 October 2014 till 31 March 2015.  G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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  8. Duration of the measure is less than three years 
9. Expected timetable for progressi ve liberalization of the measure 
There gradual liberalization of measures is provided by increasing the annual special quota by 1%  
 
10. The deadline for interested  parties to comment and for prior consultations with 
those Members having a substantial interest  as exporters of the product concerned 
 
30 days from the date of publication – deadline for registration of interested parties for review and 
requests for hearings;  45 days from the date of publication – deadline for written comments. 
The decision was published in "Uryadoviy Courier" No 180 of 1 October 2014. 
 11. Information provided if th e measure is being extended 
 
i. evidence that the industry concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy serious injury; 
Analysis of data of the domestic industry shows that application of safeguard measures positively 
influence the adjusting process to the competition conditions.  Since ІV quarter 2010 – II І quarter 2011 the domestic industry made significant investments in 
development of production of casing and pump-compressor seamless steel pipes. 
In IV quarter 2011 – III quarter 2012 investments increased by 52.69%, in IV quarter 2012 – III quarter 2013 – by 24.71%. 
 
Moreover there are plans to put into production higher quality casing pipes in the second half 2016. 
 
Meanwhile Ukrainian producers conduct research on  development of highly sealed screwed fittings 
of new generation for casing and pump-compressor pipes of levels CAL IE and CAL II, CAL IV according to standards API 5C5:2013/ISO 13679:2011.  Expected completion of the project on 
development CAL IE fittings - period IV quarter 2014 – I quarter 2015. 
 Thus the domestic producer effectively conducts planned adjustment activities while there is a 
need for safeguard for next two years for their completion. 
 If the safeguard measures are ceased to apply the probability of serious injury to domestic 
industry is supported by the world trends in de velopment of production capacity for oil & gas 
pipes. It concerns increasing capacity of existi ng enterprises and establishment of new production 
enterprises in Russian Federation, China, US A, Brazil, Mexico, Kaza khstan, Saudi Arabia. 
 
ii. reference to the WTO document that notified the initial application of the measure; 
G/SG/N/6/UKR/1-G/SG/N/8/UKR/1-G/SG/N/10/UKR/1 of 22, August 2008; 
iii. duration of the measure from initial application till the date at which it will be 
extended; 
Six years and six months. 
 
iv. precise description of the measure in place prior to the date of extension: 
The application of measure in respect of import to Ukraine of casing and pump-compressor 
seamless steel pipes with the outer  diameter not exceeding 406,4 mm was extended in accordance 
with Decision № SP – 261/2011/4423-28 of 30.09.11 of the Commission from the date of 
publication (was published on 4 October 2011 in "Uryadoviy Courier" No 182). 
The safeguard measures were extended for three years from 04 October 2011 through the imposition of import quotas. 
 G/SG/N/8/UKR/1/Suppl.3 • G/SG/N/14/UKR/1/Suppl.2 
 
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  Annual volume of special quota for imports of goods to Ukraine in the fourth year period 
(04.10.2011 - 09.30.2012) was 16,753 tons.  Annual amount of special quota was allocated as follows: 
 
Country of export Fourth year period quota, tons 
(04.10.2011 - 30.09.2012) 
Russian Federation 11,910 
Austria 2,455 
Poland 1,103 
Romania 209 
Slovak Republic 171 
India 73 
China 49 
Other countries 783 
 
There gradual liberalization of measures was provided by increasing the annual special quota 
by 5% - up to 16,753 tons in the fourth year period, 5% - to 17,591 tons for the fifth year period 
and 5% to 18,471 tons at the sixth annual period.  
Country of export  
Fourth year period 
quota, tons 
(04.10. 2011 - 
30.09.2012) 
 Fifth year period 
quota, tons 
(01.10.2012- 
30.09.2013) Sixth year period 
quota, tons 
(01.10.2013- 
30.09.2014) 
Russian Federation 11,910 12,506 13,131 
Austria 2,455 2,577 2,706 
Poland 1,103 1,158 1,216 
Romania 209 220 231 
Slovakia 171 180 188 
India 73 76 80 
China 49 51 53 
Other countries 783 823 866 
 
12. i. The major exporting Members of imports of the product involved:  
 
Russian Federation, Austria, Poland, Romania, Slovak Republic.  
ii. – not applicable. 
 
__________