G/SG/N/8/MYS/3  
G/SG/ N/10/MYS/3  
 
21 April 2017  
(17-2192) Page: 1/3 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12. 1(B) OF THE AGREEMENT ON  
SAFEGUARDS  ON FINDING A SERIOUS  INJURY OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
MALAYSIA  
(Steel Wire Rods & Deformed Bar in Coils) 
The following communication, dated 18 April 201 7, is being circulated at the request of the 
delegation of Malaysia . 
 
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(In continuation to document  G/SG/N/7/MYS/3 -G/SG/N/11/MYS/3 dated 29 September 2016).  
 
Pursuant to Articles 12.1(b ) and 12.1(c) and Article 9, footnote 2, of the Agreement on 
Safeguards, Malaysia, hereby notifies the Committee on Safeguards that a decision to apply a 
definitive safeguard measures on steel wire rods & deformed bar in coils ( "the Decision ") from 
various  countries has been made.  
 
Consistent with Article 12.2 of the Agreement on Safeguards, this notification contains all pertinent 
information relating to the Decision.  
 
 
1  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS OR AN 
INCREASE IN IMPOR TS RELATIVE TO DOMES TIC PRODUCTION  
During the Period of Investigation (POI) commencing from 1 October 2012 to 30 September 2015, 
import volume of the Products under Investigation (PUI) into Malaysia has shown an increasing 
trend both in absolute and relat ive terms as shown in table below:  
a. Increased imports in absolute term  
Description  Year 1  Year 2  POID  
Total Import Volume (MT)  786,608  1,069,630  1,316,350  
% of increased imports (year -on-year)  - 35.98%  23.07%  
% of increase imports (Year 1 to POID)  67.35%  
b. Increased imports relative to domestic production  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Imports relative to production  100 147 350 G/SG/N/8/MYS/3 • G/SG/N/10/MYS/3  
 
- 2 - 
 
  2  EVIDENCE OF SERIOUS INJURY OR THREAT THE REOF CAUSED BY INCRE ASED 
IMPORTS  
An evaluation of the ove rall position of the Domestic Industry, in the light of relevant factors being 
considered, shows a significant overall impairment. It was thus concluded in the Decision that the 
Domestic Industry has suffered serious injury in the following factors:  
a. Market  Share  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Imports  100 125 168 
Domestic Industry  100 77 39 
Total Domestic Consumption  100 109 99 
Domestic industry 's market share decreased by 23 points from Year 1 to Year 2 and continued to 
shrink by another 38 points in POID. As opposed to the continuously decreasing market share of 
the Domestic Industry, the import 's market share increased by 25 points and 43 points in Year 2 
and POID respectively.  
b. Sales  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Domestic Sales Volume  100 84 38 
Domestic Sales Revenue  100 84 34 
Sales volume decreased by 16 points from Year 1 to Year 2 and continued to shrink by 46 points in 
POID. The domestic sales revenue also decreased by 16 points from Year 1 to Year 2 and 
continued to shrink by another 50 points in POID. The decline in sales revenue is consistent with 
the decline in sales volume.  
c. Production and Capacity Utilisation  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Production  capacity  100 100 100 
Actual production  100 87 39 
Production capacity has remained the same during the POI. However actual production decreased 
by 13 points from Year 1 to Year 2 and continued to shrink by another 48 points in POID.  
d. Profitability  
Descri ption  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Operating loss of Domestic Operation  (100)  (25) (68) 
Operating losses improved by 75 points from year 1 to Year 2 but detracted by 43 points from 
Year 2 to POID. The Domestic Industry was seriously injured in terms of profitability.  G/SG/N/8/MYS/3 • G/SG/N/10/MYS/3  
 
- 3 - 
 
  e. Cash Flow  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Net cash provided by operating activities  (100)  (21) (68) 
Domestic Industry recorded a negative cash flow throughout the POI and was seriously injur ed in 
terms of cash flow.  
f. Employment and Wages  
Description  Year 1  
(Indexed)  Year 2  
(Indexed)  POID  
(Indexed)  
Total Personnel for PUI  100 87 73 
Total Labour Cost  100 95 62 
The trend of employment and wages showed gradual decrease over the POI.  
3  PRECISE DES CRIPTION OF THE PROD UCT CONCERNED  
The PUI comprises of steel wire rods in hot rolled alloy or non -alloy and deformed bar in coils, in 
regular or ir regular wound coils, excluding - 
(a) steel wire rods and deformed bar in coils with carbon content of 0.60% or  more or 
diameter greater than 16.0 millimetres, and  
(b) products imported for the end -usage purposes of automotive, electrical and electronic, 
oil and gas industries of all grades and specifications and;  
(c) deformed bar in coils, in regular or irregular  wound coils products imported for the 
end-usage purposes of earthquake proof construction industries of all grades and 
specifications  
classified under the Harmonised System Code (H.S. Code) and ASEAN Harmonized Tariff 
Nomenclature (AHTN):  
7213.10 1000, 72 13.91 1000, 7213.91 2000, 7213.91 9000, 7213.99 1000, 7213.99 2000, 
7213.99 9000 and 7227.90 0000  
4  PRECISE DESCRIPTION OF THE PROPOSED MEAS URE 
The Ministry of International Trade and Industry, Malaysia, being the competent authority, has 
recommended imposin g safeguard duties for a period of three years beginning 15 April 2017 
to14 April 2020. In accordance with the Safeguard Act 2006 [Act 657], Malaysia's obligations 
under Article XIX of the GATT 1994 and the WTO Agreement on Safeguards, the safeguard duties  
shall be progressively liberalized as follows:  
Period  Definitive Safeguard Duties (%)  
15 April 2017 -14 April 2018  13.90  
15 April 2018 -14 April 2019  12.90  
15 April 2019 -14 April 2020  11.90  
The imposition of this safeguard duty is applicable to the Peop le's Republic of China, Republic of 
Korea and Singapore which imports exceeded 3% individually.  
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