G/SG/N/8/KAZ/1/Suppl.1  
G/SG/N/10/KAZ/1/Suppl.1  
G/SG/N/11/KAZ/1  
 
30 August  2019 
(19-5599) Page: 1/6 
Committee on Safeguards  Original: English  
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
NOTIFICATION PURSUANT TO ARTICLE 9 , FOOTNOTE 2   
OF THE AGREEMENT ON SAFEGUARDS  
KAZAKHSTAN  
(Certain flat -rolled steel products ) 
The following communication, dated 27 August  2019, is being circulated at the request of the 
delegation of Kazakhstan.  
 
_______________  
 
 
With reference to the WTO documents G/SG/N/6/RUS/5  - G/SG/N/8/RUS/4  - G/SG/N/10/RUS/4, 
according to Article 12.1 (c) o f the Agreement on Safeguards the Russian Federation hereby notifies 
the Committee on Safeguards that on 6  August  2019 the Board of the Eurasian Economic 
Commission (EEC) took a decision to apply a safeguard measure.  
The decision of the Board of the EEC No  137 of 6  August  2019 imposing a safeguard measure in the 
form of a special quota on imports of hot -rolled steel products imported into the customs territory 
of the Eurasian Economic Union was published on 8  August  2019 on the official website of the 
Euras ian Economic Union ( http://docs.eaeunion.org/docs/ru -ru/01422667/clcd_08082019_137 ). 
Public notice of the conclusion of a safeguard investigation on imports of hot -rolled steel products 
imported into the customs territory of the Eurasian Economic Union was published on 8  August  2019 
on the official website of the Eurasian Economic Union  
(http://docs.eaeunion.org/docs/ru -ru/01422703/oa_08082019 ). 
Report setting forth the findings and reasoned conclusions reached on all pertinent issues of fact 
and law was published on 8 August  2019 on the official website of the Eurasian Economic Union 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/Publi cDocuments/SG10_report_final.pd
f). 
1. Provide evidence, citing relevant data and the applicable period of investigation  of 
serious injury or threat thereof caused by increased imports . 
 
The Department for Internal Market Defence of the Eurasian Economic Commission (hereinafter 'the 
DIMD') has made an injury assessment for three product categories covered by the investigation, 
namely hot -rolled steel products, cold -rolled steel products and coated steel products named 
together 'certain flat -rolled  steel products'. The investigation covers the period from 1  January  2015 
to 30  June 2018 (hereinafter 'period of investigation '). 
In the case of hot -rolled steel products, the analysis of economic indicators has revealed that the 
Eurasian Economic Union ( hereinafter 'the Union') was losing its market share on the Union market 
to foreign producers, which had a negative impact on the Union industry's prices. Indeed, the growth 
in costs per unit outpaced the price increase leading to a decline in the level of  profitability.  G/SG/N/8/KAZ/1/Suppl.1 • G/SG/N/10/KAZ/1/Suppl.1 • G/SG/N/11/KAZ/1  
 
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  It has also been found that increased imports of hot -rolled steel products into the Union market are 
expected to continue in the immediate future. Indeed, in addition to the risk of trade diversion posed, 
inter alia , by the measures under S ection 232 of the Trade Expansion Act of 1962 adopted by the 
United States of America, several countries have steel capacity expansion plans while, first, demand 
on certain markets is likely to decrease and, second, the ability of third markets to absorb a dditional 
exports of steel is limited due to the trade measures in place. At the same time, the Union market 
is attractive to suppliers of hot -rolled steel products from third countries, in particular in view of its 
size and prices.  
Increasing volumes of i mports of hot -rolled steel products will continue to take market share away 
from the Union industry and displace sales of the Union industry on the Union market. This will result 
in a decline in the levels of production by the Union industry, sales of the Union industry in the Union 
market and profits earned by the Union industry from such sales. In addition, if costs of production 
continue to increase, the price of the Union industry's hot -rolled steel products on the Union market 
will be prevented from in creasing at a commensurate rate with costs and the level of profitability 
will further decline.  
The DIMD has therefore concluded that the Union industry will imminently become seriously injured 
if no measures are taken. The DIMD has also concluded that the re is a causal link between increased 
imports of hot -rolled steel products and the threat of serious injury to the Union industry.  
The DIMD has found that cold -rolled steel products and coated steel products are not being imported 
in such increased quantit ies as to cause or threaten to cause serious injury to the Union industry.  
 
2. Provide information on whether there is an absolute increase in imports or an increase 
in imports relative to domestic production (please see also Article 2.1 for the context).  
 
The DIMD has analyzed import data covering the period of investigation, i.e. the period from 
January  1, 2015 to June  30, 2018 for each three product categories covered by the investigation, 
namely hot -rolled steel products, cold -rolled steel products and coated steel products. The DIMD 
has analyzed data for each year of the period of the investigation, as well as for the period 
1 July 2017 – 30 June 2018 compared with the period 1  July 2016 - 30 June 2017.  
The DIMD has not found evidence of an absolute inc rease in imports or an increase in imports relative 
to domestic production concerning cold -rolled steel products and coated steel products.  
In the case of hot -rolled steel products, imports increased in absolute terms by 25,6 % from 2015 
to 2017 and by 25,9 % in the period 1  July 2017 - 30 June 2018 compared with the period 
1 July 2016 - 30 June 2017.  
In relation to domestic production imports increased by 6,1 % between 2015 and 2017 and by 6,5 % 
in the period 1  July 2017 - 30 June 2018 compared with the period  1 July 2016 - 30 June 2017.  
The DIMD concludes that there has been a sudden, sharp and recent increase in imports both in 
absolute and relative terms (to domestic production) for hot -rolled steel products.  
 
3. Provide the precise description of the produc t involved. Provide the Harmonized System 
numbers under which the product enters at least at a 6 -digit HS level, and at a 
sub-national level (e.g. 8 -digit HS, 9 -digit HS or 10 -digit HS) if practicable. (The HS codes 
will be provided for reference purposes only.)  
 
The products covered by the measure are hot -rolled steel products (hot -rolled carbon steel and alloy 
steel in sheets and coils).  
 G/SG/N/8/KAZ/1/Suppl.1 • G/SG/N/10/KAZ/1/Suppl.1 • G/SG/N/11/KAZ/1  
 
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  Hot-rolled steel products are classified under the following codes within the Common Commodity 
Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (CN of FEA EAEU): 7208 
10 000 0, 7208 25 000 0, 7208 26 000 0, 7208 27 000 0, 7208 36 000 0,  
7208 37 000 0, 7208 38 000 0, 7208 39 000 0, 7208 40 000 0, 7208 51 200 1, 7208 51 200 9,  
7208 51 910 0, 7208 51 980 0, 7208 52 100 0, 7208 52 910 0, 7208 52 990 0, 7208 53 100 0,  
7208 53 900 0, 7208 54 000 0, 7208 90 200 0, 7208 90 800 0, 7211 13 000 0, 7211 14 000 0,  
7211 19 000 0, 7225 30 100 0, 7225 30 300 0, 7225 30 900 0, 7225 40 120 1, 7 225 40 120 9,  
7225 40 150 1, 7225 40 150 9, 7225 40 400 0, 7225 40 600 0, 7225 40 900 0, 7226 91 200 0,  
7226 91 910 0, 7226 91 990 0.  
 
The codes of CN of FEA EAEU are given for information purposes only.  
 
4. If the final measure replaces a provisional meas ure, or if a final measure is extended, 
a Member is encouraged to provide a written description of any part of the imported 
product that will no longer be subject to the measure and the Harmonized System 
numbers under which it enters at least at a 6 -digit level, and at a sub -national level (e.g., 
8-digit, 9 -digit or 10 -digit level) if practicable.1 
 
Not applicable . 
 
5. Provide precise description of the proposed measure.  
 
The measure is a quota on imports of hot -rolled steel products with an out -of-quota duty of 20 %. 
Consistent with the obligations under Article 9.1 of the Agreement on Safeguards, the measure 
applies to imports from all sources other than originating in developing and least -developed 
countries benefitting from the Unified System of T ariff Preferences (USTP) of the Eurasian Economic 
Union, except for the Republic of Korea (see the list of developing and least -developed countries in 
Annex below).  
Shares of imports from developing and least -developed countries, except for the Republic of  Korea, 
individually do not exceed 3 % and collectively do not account for more than 9 %. 
In order to comply with bilateral obligations under the Treaty on a Free Trade Area between Members 
of the Commonwealth of Independent States (CIS), Republic of Moldova , Uzbekistan and Tajikistan 
are also excluded from the scope of the measure.  
The quota allocation is as follows.  
Product concerned  
(CN of FEA EAEU)  Quota Volume (tones)  
Armenia  Belarus  Kazakhstan  Kyrgyz 
Republic  Russian 
Federation  
7208 10 000 0, 7208  25 000 0, 
7208 26 000 0, 7208  27 000 0, 
7208 36 000 0, 7208  37 000 0, 
7208 38 000 0, 7208  39 000 0, 
7208 40 000 0, 7208  51 200 1, 
7208 51 980 0, 7208  52 100 0, 
7208 52 910 0, 7208  52 990 0, 
7208 53 100 0, 7208  53 900 0, 
7208 54 000 0, 7 208 90 200 0, 
7208 90 800 0, 7211  13 000 0, 
7211 14 000 0, 7211  19 000 0, 
7225 30 100 0, 7225  30 300 0, 
7225 30 900 0, 7225  40 120 1, 
7225 40 120 9, 7225  40 150 1, 
7225 40 150 9, 7225  40 600 0, 
7225 40 900 0, 7226  91 200 0, 
7226 91 910 0,           7226 91 990 0 14 699  227 633  5 913  2 357  334 993  
7208 51 200 9, 7208  51 910 0, 
7225 40 400 0  829 36 640  6 116  329 698 249  
                                                
1 The HS codes will be provided for reference purposes only.  G/SG/N/8/KAZ/1/Suppl.1 • G/SG/N/10/KAZ/1/Suppl.1 • G/SG/N/11/KAZ/1  
 
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  6. Provide proposed date of introduction of the measure.  
 
The measure shall become effective on 1  December  2019.  
 
7. Provide expected duration of the measure.  
 
The measure will be in force for 1 year.  
 
8. For a measure with a duration of more than three years, provide the proposed date for 
the review (under Article 7.4) to be held not later than the mid -term of the measure, if 
such a date for the review has already been scheduled.  
 
Not applicable . 
 
9. If the expected duration is over one year, provide expected timetable for progressive 
liberalization of the measure.  
 
Not applicable  
 
10. If the notification relates on ly to a finding of serious injury or threat thereof, and does 
not relate to a decision to apply or extend a safeguard measure:  
 
i. provide the deadlines for interested parties to comment or any other 
procedures relevant to the decision to apply the measures, and 
ii. provide information regarding procedures for prior consultation with those 
Members having a substantial interest as exporters of the product concerned.  
Not applicable  
 
11. If the measure is being extended, also provide:  
 
i. evidence that the industry conc erned is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;  
ii. reference to the WTO document that notified the initial application of the 
measure;  
iii. duration of the measure from initial application till the d ate at which it will 
be extended;  and 
iv. precise description of the measure in place prior to the date of extension (in 
this context, please note that the last sentence of Article 7.4 states that: "A 
measure extended under paragraph 2 shall not be more restri ctive than it was 
at the end of the initial period, and should continue to be liberalized.")  
Not applicable . 
 
12. If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
 
i. The major exporting Members of imports of the product involved ; 
The major exporting Members of hot -rolled steel products are Ukraine, the European  Union, Republic 
of Korea, Japan.  
 G/SG/N/8/KAZ/1/Suppl.1 • G/SG/N/10/KAZ/1/Suppl.1 • G/SG/N/11/KAZ/1  
 
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  ii. If there are any exporting Members to which the measure does not apply for 
any reason other than the application of Article 9.1, the names of such 
exporting Members and reasons for non -application of the measure.  
In order to comply with bilateral obligations under the Treaty on a Free Trade Area between Members 
of the C ommonwealth of Independent States (CIS), Republic of Moldova, Uzbekistan and Tajikistan 
are also excluded from the scope of the measure.  
 
13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant de cision(s) made by the competent authority. This 
document may be in the original language of the Member, even when the language is not 
one of the official languages of the WTO. The document will neither be translated nor 
circulated to the Committee, but wil l be made available by the Secretariat to Members 
requesting it.  
 
The decision of the Board of the EEC No 137 of 6  August  2019 imposing a safeguard measure in the 
form of a special quota on imports of hot -rolled steel products imported into the customs ter ritory 
of the Eurasian Economic Union was published on 8  August  2019 on the official website of the 
Eurasian Economic Union ( http://docs.eaeunion.org/docs/ru -ru/01422667/clcd_08 082019_137 ). 
Public notice of the conclusion of a safeguard investigation on imports of hot -rolled steel products 
imported into the customs territory of the Eurasian Economic Union was published on 8  August  2019 
on the official website of the Eurasian Econ omic Union  
(http://docs.eaeunion.org/docs/ru -ru/01422703/oa_08082019 ). 
 
Report setting forth the findings and reasoned conclusions reached on all pertinent issues of fact 
and law was published on 8 August  2019 on the official website of the Eurasian Economic Union 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/Publi cDocuments/SG10_report_final.pd
f).  G/SG/N/8/KAZ/1/Suppl.1 • G/SG/N/10/KAZ/1/Suppl.1 • G/SG/N/11/KAZ/1  
 
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  ANNEX   
List of developing and least -developed countries, Members of WT O 
Afghanistan   Madagascar  
Albania  Malawi  
Angola  Malaysia  
Antigua and Barbuda  Maldives  
Argentina  Mali  
Bahrain  Mauritania  
Bangladesh  Mauritius  
Barbados  Mexico  
Belize  Mongolia  
Benin  Montenegro  
Bolivarian Republic of Venezuela  Morocco  
Botswana  Mozambique  
Brazil  Myanmar  
Brunei Darussalam  Namibia  
Burkina Faso  Nepal  
Burundi  Nicaragua  
Cabo Verde  Niger  
Cambodia  Nigeria  
Cameroon  North Macedonia  
Central African Republic  Oman  
Chad  Pakistan  
Chile  Panama  
China  Papua New Guinea  
Colombia  Paraguay  
Congo  Peru  
Costa Rica  Philippines  
Côte D'Ivoire  Plurinational State of Bolivia  
Croatia  Qatar  
Cuba  Rwanda  
Democratic Republic of the Congo  Saint Kitts and Nevis  
Djibouti  Saint Lucia  
Dominica  Saint Vincent and the Grenadines  
Dominican Republic  Samoa  
Ecuador  Senegal  
Egypt  Seychelles  
El Salvador  Sierra Leone  
Eswatini  Singapore  
Fiji  Solomon Islands  
Gabon  South Africa  
Gambia  Sri Lanka  
Ghana  Suriname  
Grenada  Tanzania  
Guatemala  Thailand  
Guinea  The State of Kuwait  
Guinea -Bissau  Togo  
Guyana  Tonga  
Haiti  Trinidad and Tobago  
Honduras  Tunisia  
Hong Kong, China  Turkey  
India  Uganda  
Indonesia  United Arab Emirates  
Jamaica  Uruguay  
Jordan  Vanuatu  
Kenya  Viet Nam  
Kingdom of Saudi Arabia  Yemen  
Lao People's Democratic Republic  Zambia  
Lesotho  Zimbabwe  
Liberia   
__________