. /.  WORLD TRADE  
ORGANIZATION   
G/SG/N/6/RUS/1 
11 September 2012 
 (12-4845) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
AND THE REASONS FOR IT 
 
RUSSIA 
 
(Combine Harvesters and Modules) 
 
 
The following communication, dated 6 September 2012, is being circulated at the request of 
the Delegation of the Russian Federation. 
 
_______________ 
 
 
Pursuant to the Article 12.1(a) of the Agre ement on Safeguards the Russian Federation hereby 
provides notification to the Committee on Safeguards of the initiation of an investigation and the 
reasons for it.  
1. The date when the investigation was initiated  
  On 6 July 2012, the Department for Inte rnal Market Defence of the Eurasian 
Economic Commission initiated a safeguard investig ation.  Public notice of the safeguards 
investigation was provided on 6 July 2012.  
2. The product subject to the investigation  
  Combine harvesters and modules, consisting at least of threshing and separating 
device, equipped or not equipped with the thresh ing drum, cleaning systems and engine mounted on 
the support base and the frame and chassis, provides for the installation of bridges, wheels or tracks 
(collectively as "products" or "harvesters"), cl assified under HS codes 8433 51 000 1, 8433 51 000 9, 
8433 90 000 0. HS codes are indicated only for information purpose.  
 
3. The reasons for the initiation of investigation  
 
In accordance with the Agreement on the a pplication of safeguards, antidumping and 
countervailing measures against third countries of 25  January 2008, Decision of the Board of the 
Eurasian economic commission of 7 March 2012  No. 1 a nd on the basis of results of consideration of 
the application filed by LLC "Combine plant"  Rostselmash "and JSC" Production Association 
"Krasnoyarsk Combine Plant" the Department for In ternal Market Defence of the Eurasian Economic 
Commission initiated the safeguards investigation.  
The application includes the following information:  
 G/SG/N/6/RUS/1 
Page 2  
 
  (1) Increase in imports of combine harveste rs to the Customs Union customs territory 
(further – CU CT) during 2009 – 2011 in absolute terms by 25%, while the average price for combine harvesters imported into the CU CT, excluding import duties decreased by 18.6%;  
(2) Serious injury to the Customs Uni on (further – CU) member-states industry. 
 
During 2009 - 2011 there was a decrease in produc tion and sales by manufacturers of the CU 
by 6.9% and 23.1%, respectively, and a decrease in the share of products in the CU market by 4.1% 
while the market capacity of combine harv esters in the CU was decreased by 19.5%. 
 
During 2009 - 2011 a negative trend in the CU industry for the majority of industrial and 
economic indicators was observed: 
 -  reduced production of combine harvesters in  the enterprises of the applicant by 14.4%; 
-  decline in sales of combine harvesters by 42.9%; 
-  share of products send by applicant in the CU market was decreased by 14.9%;  
-  inventory growth by 44.5% and an incr ease of the volume of production by 1.7 times; 
-  increase in cost per unit of product by 17.7%; -  net value of a product in the CU market in the period remained stable; -  reduction in profitability of production by 3.6 times; -  reducing profit by 5.4 times;  
-  reducing capacity utilization at the enterprises of applicant by 4.3%;  
-  decline in investments for the production development by 5.2 times; 
-  increase in productivity by 4.8% and an in crease in wages of personnel involved in the 
production of products by 51.3% while th e number of personnel involved in the 
production of combine harvesters in the en terprises of applicants was decreased by 
18.3%. 
 
(3) Causal link between increased imports a nd serious injury to the CU member-states 
industry. In particular: 
 
 -  substitution of manufacturers of the CU in  the CU market while the share of imported 
goods has been increasing; 
-  decrease in sales of the product of producer s in the CU member-states in the CU market 
while the imported supplies has been increasing. 
 
4. Further information  
  A copy of the Notice of Initiation which is available on http://www.tsouz.ru  is being 
submitted to the Committee on Safeguards.1 
  All views or comments should be made in writing and submitted to the following address: 
 
The Eurasian Economic Commission 
Department of internal market defense 
119121, Moscow, Russia, Smolenskiy bulvar, building 3/5 
Telephone / Facsimile: +7 (495) 604 4038 #1316, #1308, #1272 
 
 
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1 In Russian only.  Those wishing to consult th is document are requested to contact Ms Budd 
(hilary.budd@wto.org ) or Ms Naville ( delphine.naville@wto.org ) of the Rules Division.