G/SG/N/8/ZAF/5/Suppl.3  
 
3 August  2021 
(21-6055) Page: 1/3 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 12.1( B) OF THE AGREEMENT ON  
SAFEGUARDS  ON FINDING SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
SOUTH AFRICA 
Other screws fully threaded  
with hexagon heads made of steel  
Supplement  
The following notification, dated 30 July 2021 and received on 31 July 2021,  is being circulated at 
the request of the delegation of South Africa.  
 
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In light of the agreed format for notifications (G/SG/N/6 ), South Africa provides notifica tions to the 
Committee on Safeguards of findings of serious injury or threat thereof caused by increased imports 
and proposed safeguard measures.  
On 21 May 2021, the International Trade Administration Commission ("Commission" or "ITAC") 
initiated an investigation into the extension of the safeguard measure on other screws fully threaded 
with hexagon heads made of steel  (the subject product) through Notice No. 304 of 
Government  Gazette  No. 44593 dated  21 May 2021 (the "Initiation Notice").  
1. Product classification  
The subject product is described as other screws fully threaded with hexagon heads made of steel, 
classifiable under tariff subheading 7318.1 5.39. 
2. Investigation period  
The period of investigation for serious injury is 1 January 2020 to 31 December 2020, plus, an 
estimate injury 1 January 2021 to 31 December 2022.  G/SG/N/8/ZAF/5/Suppl.3  
 
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  3. Evidence of serious injury and a threat thereof  
Based on the information, the eval uation of the injury information of the Applicant for the period 
January 2018 to December 2020 is shown below:  
Serious Injury Indicators (Jan 2018 –Dec 2020)  
Imports in absolute terms  Decreased  
Imports in relative terms  Decreased  
Sales volumes (Tonnes)  Decreased  
Net Profit (R)  Increased  
Output (Tonnes)  Decreased  
Market share (Applicant)  Decreased  
Total production volume (Tonnes)  Decreased  
Utilisation of capacity (%)  Decreased  
Employment (Number of employees)  Decreased  
Having assessed each injury factor and noting that there is a decline in the industry 's performance 
as listed above, the Commission made a final determination that the expiring of the safeguard 
measures will likely lead to a continuation and/or recurrence of seri ous injury.  
4. Duration and liberalization of the measure  
The expected timetable for progressive liberalization of the measure is as follows:  
Period  Rate of safeguard measure  
2 August 2021 – 1 August 2022  35.6%  
2 August 2022 – 1 August 2023  30.6%  
2 August 2023 – 1 August 2024  25.61%  
The measures will be imposed against imports from all countries.  
5. Evidence that the industry is adjusting  
Although imports continued in the immediate aftermath of the imposition of the final duty, for the 
first time in years there was a definite shift in sentiment away from imports toward a more 
sustainable local manufacturing industry. Furthermore, despite stockpiling from distributors the 
industry was in a position to achieve and even exceed the commitments made in ter ms of the tariff 
application.  
• There was an increase in orders placed with local manufacturers;  
• This led to an increase in orders placed for the raw material;  
• This led to an increase in capacity utilisation as higher volumes are produced;  
• There is a direct benefit on employment as more employees were employed to facilitate 
higher manufacturing levels;  
• For the first time in almost a decade, machines that were "mothballed" were reintroduced 
into the production line;  
• New investments are being considered, or hav e already taken place; and  
• The benefits to related industries such as galvanisers, heat treatment etc. have been 
significant.  
6. Original investigation  
The reference to the original  investigation 's reference is:  G/SG/N/8/ZAF/5/Suppl.1  - 
G/SG/N/10/ZAF/4/Suppl. 1. G/SG/N/8/ZAF/5/Suppl.3  
 
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  7. Original duration of measure  
Period  Rate of safeguard measure  
03 Aug 2018 – 02 Aug 2019  50.54%  
03 Aug 2019 – 02 Aug 2020  48.01%  
03 Aug 2020 – 01 Aug 2021  45.61%  
 
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