WT/DS490/1  
G/L/1106  
G/SG/D47/1  
 
19 February 2015  
(15-1011)  Page: 1/3  
  Original: English  
 
 INDONESIA – SAFEGUARD ON CERTAIN IRON OR STEEL PRODUCTS 
REQUEST FOR CONSULTATIONS BY THE SEPARATE CUSTOMS TERRITORY  
OF TAIWAN, PENGHU, KINMEN AND MATSU 
The following communication, dated 12 February 2015, from the delegation of  the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu to the delegation of Indonesia and to the Chairperson of the Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU. 
 
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My authorities have instructed me to request consultations with Indonesia pursuant to Articles 1 and 4 of the Understanding on Rules and Procedur es Governing the Settlement of Disputes (DSU), 
Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 14 of the 
Agreement on Safeguards with respect to the imposition of a safeguard measure on imports of certain flat-rolled product of iron or non-alloy steel, the investigation and determinations leading thereto, and other aspects related to the notifi cation requirements and consultations required 
under Article XIX:2 of the GATT 1994 and Article 12 of the Agreement on Safeguards.   
Pursuant to Article 4.4 of the DSU, the reasons for this request for consultations,   including 
identification of the measures at issue and of the legal bases for this complaint, are provided 
below.  
BACKGROUND  1. On 19 December 2012, Indonesia's investigating authority on safeguard measures, Komite 
Pengamanan Perdagangan Indonesia/KPPI  (the investigating authority), initiated a safeguard 
investigation on imports of flat-rolled product of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated with aluminium-zinc alloys, containing by weight less than 0,6% of carbon, with a thickness not exceeding 1,2mm, under HS code 7210.61.11.00.
1 
2. On 27 May 2014, WTO Members were notified of the investigating authority's positive 
findings of threat of serious injury caused by increased imports.2 However, Indonesia's 
"Notification of a Proposal to Impose a Measure" does not contain a precise description of the 
proposed measure and its proposed date of introduction. 
3. On 28 July 2014, WTO Members were notified of the actual imposition of the safeguard 
measure pursuant to Regulation Number 137.1/PML. 011/2014 of Indonesia's Minister of Finance, 
dated 7 July 2014 and promulgated on 15 July 2014 in the Berita Negara of Indonesia Year 2014 
Number 978 (safeguard measure). The notification also contains the list of 120 countries that are 
                                               
1 Committee on  Safeguards, Notification under Article 12.1(a) of the Agreement on Safeguards on 
Initiation of an Investigation and the reasons for it, Indonesia, (Flat-Rolled Product of Iron or Non-Alloy Steel ), 
G/SG/N/6/IDN/22, 8 January 2013; and the supplement, G/SG/N/6/IDN/22/Suppl.1, 24 April 2013. 
2 Committee on  Safeguards, Notification under Article 12.1(b) of the Agreement on Safeguards on 
Finding a Serious Injury or Threat Ther eof Caused by Increased Imports, Notification of a Proposal to Impose a 
Measure, Indonesia, (Flat-Rolled Product of Iron or Non-Alloy Steel under HS code 7210.61.11.00 ), 
G/SG/N/8/IDN/16, G/SG/N/10/IDN/16, 27 May 2014. WT/DS490/1 • G/L/1106 • G/SG/D47/1 
 
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  excluded from the application of the safeguard measure.3 The relevant determination is contained 
in an investigating authority's final disclosure report.  
4. The safeguard measure consists of a specif ic duty to be applied from 22 July 2014, and 
reduced onwards in accordance with the following timetable: 
Timetable of the Safeguard Duty 
Period Safeguard Duty 
22 July 2014 - 21 July 2015 Rp  4,998,784 per ton 
22 July 2015 - 21 July 2016 Rp  4,314,161 per ton 
22 July 2016 - 21 July 2017 Rp  3,629,538 per ton 
 
MEASURES AT ISSUE 
5. The measures at issue in this dispute are the following: 
a. The specific duty imposed as a safeguard measure on imports of flat-rolled product of 
iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated with aluminium-zinc alloys, containing by weight less than 0,6% of carbon, with a thickness 
not exceeding 1,2mm, under HS code 7210.61.11.00, as referred to in paragraphs 3 and 
4 above. 
b. The notification of the finding of threat of serious injury caused by increased imports and 
of a proposal to impose a safeguard measure, as referred to in paragraph 2 above. 
c. Indonesia's failure to provide an opportunity for consultations on relevant information 
related to the safeguard measure, including on the proposed measure and its date of introduction prior to the actual imposition of the measure. 
LEGAL BASIS 
6. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu notes that according 
to Article 11.1(a) of the Agreement on Safeguards, a Member shall not take or seek a safeguard 
action unless such action conforms with the prov isions of Article XIX of the GATT 1994 applied in 
accordance with the Agreement on Safeguards.  In this respect, this complaint is based on the following legal grounds: 
a. With respect to the specific duty, imposed as a safeguard measure: 
i. Article XIX:1(a) of the GATT 1994 and Article 3.1, last sentence, of the Agreement 
on Safeguards, as the safeguard measure appears not to be based on proper determination or a reasoned and adequate explanation of any unforeseen 
developments and the effe ct of GATT obligations that led to the increased 
imports that caused or threatened to cause serious injury to the domestic industry. 
ii. Article XIX:1(a) of the GATT 1994 and Articles 2.1, 3.1, last sentence, 4.1(a), 4.2(a), 
4.2(b) and 4.2(c) of the Agreement on  Safeguards, as the safeguard measure 
appears not to be based on a proper determination or a reasoned and adequate explanation of any increased imports .   
                                               
3 Committee on Safeguards,  Notification under Article 12.1(b) of the Agreement on Safeguards on 
Finding a Serious Injury or Threat Thereof Caused by In creased Imports, Notification under Article 12.1(c) of 
the Agreement on Safeguards on Taking a Decision to Apply a Safeguard Measure, Notification pursuant to 
Article 9, footnote 2, of the Agreement on Safeguards, Indonesia, (Flat-Rolled Product of Iron or Non-Alloy 
Steel under HS code 7210.61.11.00), G/SG/N/8/IDN/16/Suppl.1, G/SG/N/10/IDN/16/Suppl.1, 
G/SG/N/11/IDN/14, 28 July 2014. WT/DS490/1 • G/L/1106 • G/SG/D47/1 
 
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  iii. Article XIX:1(a) of the GATT 1994 and Articles 2.1, 3.1, last sentence, 4.1(a), 4.1(b), 
4.1(c), 4.2(a), 4.2(b) and 4.2(c) of the Agreement on Safeguards, as the safeguard 
measure appears to be based on a determination of serious injury  that does not 
reflect a situation of significant overall impairment in the position of the domestic 
industry, or of threat of serious injury, i.e. serious injury that is clearly imminent. 
Furthermore, there is no reasoned and ad equate explanation of serious injury (or 
threat thereof) with respect to certain prod ucts (zincalume products) despite the fact 
that the safeguard measure also applies to these products.  
iv. Article XIX:1(a) of the GATT 1994 and Articles 2.1, 3.1, last sentence, 4.2(b) and 
4.2(c) of the Agreement on Safeguards, as  the safeguard measure is not supported 
by a reasoned and adequate explanation of how the wide range of investigated 
imports cause or threaten to cause  serious injury to the domestic industry. 
Furthermore, despite the existence of "other factors" that may have had a bearing on the situation of the domestic industry, there is no reasoned and adequate 
explanation of how the non-attribution analysis was conducted.  
v. Article I:1 of the GATT 1994, in that in any event, the specific duty is a measure that 
is not applied to products originating in or consigned from particular origins, and this 
constitutes an advantage that has not been accorded immediately and 
unconditionally to other Members. 
b. With respect to the notification of the finding of threat of serious injury and of the 
proposal to impose a safeguard measure, Article 12.2 of the Agreement on Safeguards, 
in that the notification at issue does not contain all pertinent information, including the 
proposed measure, the proposed date of introduction, or a timetable for progressive liberalization of the measure. 
c. With respect to the failure to provide an opportunity for consultations prior to the 
imposition of the safeguard measure, Article XIX:2 of the GATT 1994 and Article 12.3 of the Agreement on Safeguards, as Indonesia did not provide an opportunity to hold 
consultations on relevant matters (e.g., the proposed safeguard measure and its date of 
introduction), and the information relating to these matters was only released after the actual imposition of the measure. 
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu advises that these 
consultations may give rise to other matters having legal implications that are not expressly stated 
in this request but relate to other obligations of Indonesia under the GATT 1994 and the Agreement on Safeguards. With a view to facilita ting a wide-ranging exchange of views, it is 
emphasized that, if such were to be the case, these legal matters would also be covered by the 
scope of this request for consultations. 
Likewise, the Separate Customs Territory of Taiwan , Penghu, Kinmen and Matsu notes that while it 
is requesting consultations concerning the safeguard measure, as imposed in the aforementioned 
Indonesian legal instrument and the final disclosure, this request also covers any other legal instrument and/or relevant document containing any determination, method of determination or calculation, or supplementing, complementing, developing, or in any case relating to the normative 
instrument expressly referred to in this request for consultations. 
The Separate Customs Territory of Taiwan, Penghu , Kinmen and Matsu looks forward to receiving 
the response of Indonesia to this request. It is al so proposed that consultations be held in Geneva, 
on a date to be mutually agreed.  
 
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