G/SG/N/8/PHL/8/Suppl.4  
G/SG/N/10/PHL/7/Suppl.3  
G/SG/N/11/PHL/9/Suppl.4  
 
27 September 2016  
(16-5133) Page: 1/4 
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION PURSUAN T TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
(EXTENSION OF THE ME ASURE)  
NOTIFICATION PURS UANT TO ARTICLE 9, F OOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
PHILIPPINES  
(Testliner board)  
Supplement  
The following notification, dated 22 September 2016, is being circulated at the request of the 
Delegation of the Philippines.1 
_______________  
Further to the Philippine notification G/SG/N/7/PHL/8 –G/SG/N/8/PHL/8 –G/SG/N/11/PHL/9 
circulated on 10 June 2010 and notification G/SG/N/8/PHL/8/Suppl.3 -G/SG/N/10/PHL/7/Suppl.2 -
G/SG/N/11/PHL/9/Suppl.3 circulated on 17 January 2014, and pursuant to Articles 12.1(b) 
and 12.1(c) and Article 9, footnote 2, of the Agreement on Safeguards, the Permanent Mission of 
the Philippines to the WTO hereby notifies that a decision for the final extension of the application 
of a definitive safeguard measure against the importation of testliner board from various countries 
has been made. 
1  SERIOUS INJURY OR TH REAT THEROF CAUSED B Y INCREASED IMPORTS  
Pursuant to Section 19(2) of RA 8800, Department of Trade and Industry referred to Tariff 
Commission, the request of PPMAI for an extension of  the definitive general safeguard measure on 
imported testliner board. The Commission concluded that:  
a. The production output of the domestic industry, represented by PPMAI, constituted a 
major proportion of the total domestic production of testliner board.  
b. The current safeguard measure is effective. The domestic testliner board industry has 
shown improvements in its production, domestic sales, capacity utilization, labor 
productivity, cost of production and profitability in 2012 to 2014 and was able to 
maintain its market standing.  
c. While the safeguard measure has proven to be effective, the threat of increased imports 
that can cause serious injury to the domestic industry remains. Import volume in 2015 
more than quadrupled over the previous year’s level.  
                                                
1 A copy of the DTI Order Extension has been su bmitted electronically. To consult this document, please 
contact Ms Budd ( hilary.budd@wto.org ) or Ms Naville ( delphine.naville@wto.org ) of the Rules  Division.  G/SG/N/8/PHL/8/Suppl.4 • G/SG/N/10/PHL/7/Suppl.3 • G/SG/N/11/PHL/9/Suppl.4  
 
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  d. The Philippines will continue to be a target market for imported testliner board. 
Discontinuance of the imposition of the safeguard measure will likely lead to the 
recurrence of imports in increased quantities that would cause serious injury to the 
domestic i ndustry.  
e. The removal of the safeguard duty will make it difficult for the domestic industry to price 
its products at a level to at least recover cost to produce and sell.  
f. The domestic industry has complied substantially with its adjustment plan and there i s 
evidence that the industry is making positive adjustment to import competition.  
g. Without the safeguard measure, the positive gains made by the domestic industry could 
be negated as it still needs additional time to fully put in place its commitments in th e 
adjustment plan and effectively face import competition.  
2  PRECISE DESCRIPTION OF THE PRODUCT INVOL VED 
Testliner board is the outer layer of the corrugated board glued to the peaks, thus making a liner -
fluting -liner sandwich. The product is classified unde r HS Codes 4805.24.00, 4805.25.10 
and 4805.25.90.  
3  PRECISE DESCRIPTION OF THE PROPOSED MEAS URE 
i. The imposition of the definitive general safeguard measure on testliner board shall 
be extended for another four (4) years with an annual rate of reduction of 5%.  Thus, 
a definitive general safeguard duty in the amount of Php 986.50/MT shall be imposed 
on the first year (12 June 2016 to 13 June 2017), Php 937.17/MT, for the second 
year (14 June 2017 to 15 June 2018), Php 890.31/MT for the third year (16 June 
2018 t o 17 June 2019) and Php  845.80/MT for the fourth year (18 June 2019 to 
20 June 2020) on imported testliner board from various countries. The amount of the 
duty shall be subject to regular review to give the Department of Trade and Industry 
(DTI) the opport unity to modify the amount of the duty if necessary.  
ii. Pursuant to Section 13 of RA 8800 and Rule 13.1.d of its IRR, “ a general safeguard 
measure shall not be applied to a product originating from a developing 
country if its share to the total Philippine imp orts of the said product is less 
than three percent (3%): Provided, however that developing countries with 
less than three percent (3%) share collectively account for not more than 
nine percent (9%) of the total Philippine imports of the product concerned ”. 
The countries and separate customs territories listed in Annex A are therefore 
excluded from the imposition of the definitive general safeguard measure on testliner 
board.  
4  DATE OF INTRODUCTION  OF THE DEFINITIVE GE NERAL SAFEGUARD MEAS URE 
The safeguard me asure shall take effect upon issuance of the relevant Memorandum Order by the 
Philippine Bureau of Customs or 15 days after the publication of the DTI Order in two  (2) 
newspapers of general circulation, whichever comes earlier.  
5  EXPECTED DURATION OF  THE MEA SURE  
The measure shall be liberalized during the four (4) years of its final extension period.  
6  EXPECTED TIMETABLE F OR PROGRESSIVE LIBER ALIZATION OF THE MEA SURE  
If extended, the measure shall be liberalized after four (4) years from the date of entry into f orce. 
7  MAJOR EXPORTING MEMB ERS OF IMPORTS OF TH E PRODUCT INVOLVED : 
South Korea, China, and Japan are the major suppliers of the imported product in 2016 (January 
to May).  G/SG/N/8/PHL/8/Suppl.4 • G/SG/N/10/PHL/7/Suppl.3 • G/SG/N/11/PHL/9/Suppl.4  
 
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  ANNEX A  
LIST OF DEVELOPING C OUNTRIES AND SEPARAT E CUSTOMS  
TERRITORIES EXCLUDED  FROM TH E IMPOSITION OF DEFI NITIVE  
SAFEGUARD MEASURE ON  TESTLINER BOARDS  
East & Southern  
Africa  West Africa  
 North Africa  
 South Asia  
 
Angola  Benin  Algeria  Afghanistan  
Botswana  Burkina Faso  Egypt, Arab Rep.  Bangladesh  
Burundi  Cameroon  Libya Bhutan  
Comoros  Cape Verde  Morocco  British Indian Ocean  Territory  
Congo Dem. Rep.  Chad Tunisia  East Timor  
Djibouti  Central African Rep.   India 
Eritrea  Congo Rep.   Maldives  
Ethiopia  Cote d'Ivoire   Nepal  
Kenya  Equatorial Guinea   Pakistan  
Lesotho  Gabon   Sri Lanka  
Madagas car Gambia, The    
Malawi  Ghana    
Mauritius  Guinea    
Mozambique  Guinea, Bissau    
Namibia  Liberia    
Reunion  Mali   
Rwanda  Mauritania    
Seychelles  Niger    
Somalia  Nigeria    
South Africa  Sao Tome & Principe    
Sudan  Senegal    
Swaziland  Sierra Leone    
Tanzania  Togo   
Uganda     
Zambia     
Zimbabwe     
 G/SG/N/8/PHL/8/Suppl.4 • G/SG/N/10/PHL/7/Suppl.3 • G/SG/N/11/PHL/9/Suppl.4  
 
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Europe & Central Asia  Middle East  Americas  East Asia & Pacific  
Albania  Bahrain  Anguilla  American Samoa  
Armenia  Iran, Islamic Rep.  Antigua & Barbuda  Brunei Darussalam  
Azerbaijan  Iraq Argentina  Camb odia 
Belarus  Israel  Aruba  Chinese Taipei  
Bosnia & Herzegovina  Jordan  Bahamas  Christmas Is.  
Bulgaria  Kuwait  Barbados  Cocos (Keeling) Is.  
Croatia  Lebanon  Belize  Cook Is.  
Cyprus  Oman  Bermuda  Fiji 
Czech Republic  Qatar  Bolivia  French Polynesia  
Estonia  Syrian Arab Rep.  Brazil  Guam  
Georgia  United Arab Emirates  British Virgin Islands  Hong Kong, China  
Greenland  West Bank & Gaza  Cayman Islands  Indonesia  
Hungary  Yemen, Rep.  Chile Johnston Is.  
Kazakhstan   Colombia  Kiribati  
Kyrgyz Republic   Costa Rica  Korea,  Dem. Rep.  
Latvia   Cuba Lao, PDR  
Lithuania   Dominica  Macau, China  
Macedonia, FYR   Dominican Rep.  Marshall Islands  
Malta   Ecuador  Micronesia, Fed. Sts.  
Moldova   El Salvador  Midway Is.  
Poland   Falkland Is. (Malvinas)  Mongolia  
Romania   French Guiana  Myanmar  
Russian Federation   Grenada  Nauru  
Slovakia   Guadeloupe  New Caledonia  
Slovenia   Guatemala  Niue 
Tajikistan   Guyana  Northern Marianas Is.  
Turkey   Haiti Palau  
Turkmenistan   Honduras  Pitcaim Is.  
Ukraine   Jamaica  Papua New Guinea  
Uzbekistan   Martin ique Samoa  
Yugoslavia, Fed. Rep.   Mexico  Solomon Islands  
  Montserrat  Tokelau  
  Netherland Antilles  Tonga  
  Nicaragua  Tuvalu  
  Norfolk Islands  Vanuatu  
  Panama  Wake Is.  
  Paraguay  Wallis & Futuna Is.  
  Peru  
  Puerto Rico   
  St. Helena   
  St. Ki tts & Nevis   
  St. Lucia   
  St. Pierre & Miquelon   
  St. Vincent & the Grenadines   
  Suriname   
  Trinidad & Tobago   
  Turks & Caicos Islands   
  Uruguay   
  US Virgin Islands   
  Venezuela   
 
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