G/SG/N/8/THA/3/Suppl.2  
G/SG/N/10/THA/3/Suppl.2  
 
21 June 2017 
(17-3317) Page: 1/8 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
THAILAND  
Supplement  
(Non Alloy Hot Rolled Stee l Flat Products in Coils and Not in Coils ) 
The following communication, dated  19 June  2017, is being circulated at the request of the 
Delegation of Thailand.  
 
_______________  
 
 
With reference to Thailand 's notification on the initiation of a review pursuan t to Article 7.2 of the 
Agreement on Safeguards regarding the extension of the safeguard measure (WTO Document 
G/SG/N/6/THA/4/Suppl.1 -G/SG/N/14/THA/3) dated 21 October 2016  and the proposal to extend a 
measure under Article 12.1(b) of the Agreement on Safe guards (WTO Document 
G/SG/N/8/THA/3/Suppl.1 -G/SG/N/10/THA/3/Suppl.1) dated 19 April 2017 , Thailand hereby 
provides notification to the Committee on Safeguards pursuant to Article 12.1(c) and Article 9, 
footnote 2 of the Agreement on Safeguards, on its deci sion to extend a safeguard measure that is 
being applied against imports of non alloy hot rolled steel flat products in coils and not in coils.  
 
Consistent with Article 12.2 of the Agreement on Safeguards,  this notification contains all pertinent 
informati on relating to the decision to extend the safeguard measure on product concerned.  
 
1  THE SAFEGUARD MEASUR E CONTINUES TO BE NE CESSARY TO PREVENT O R REMEDY 
SERIOUS INJURY OR TH REAT THEREOF CAUSED BY INCREASED IMPORTS  AND THERE IS 
EVIDENCE THAT THE IN DUSTRY CON CERNED IS ADJUSTING  
a. Basic industry indicators  
Item  2012  2013  2014  2015  2014  
(Jan. -Jun.)  2015  
(Jan. -Jun.)  2016  
(Jan. -Jun.)  
Sales (MT)*  100 92.40  86.90  80.40  100 98.30  84.81  
Market share (%)  91 74 94 98 92 98 98 
Import Share (%)  9 26 6 2 8 2 2 
Consumpti on (MT)*  100 114.00  84.17  75.23  100 92.29  79.85  
Production (MT)*  100 98.89  92.89  78.96  100 92.89  92.47  
Capacity Utilization 
(%) 36 36 34 29 33 31 31 
Productivity (%)  96 97 98 97 98 97 97 
Profit/Loss  
(million baht)  (7,731)  (3,559)  (2,690)  (6,449)  (941)  (2,747)  185 
Employment 
(number)*  100 96.68  102.42  101.57  100 105.42  105.13  
* Index: Year 2012 = 100, 2014 (Jan. -Jun.) =  100. G/SG/N/8/THA/3/Suppl.2 • G/SG /N/10/THA/3/Suppl.2  
 
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  In year 2013, Imports of product concerned dramatically increased inflicted serious injury on the 
domestic industry. Notably the  market share of the do mestic industry dropped from 91%  in year 
2012 to 74 % in year 2013 while the import share jumped to 26 % in year 2013.  
 
In year 2013, the sale volume decreased, on the other hand the consumption increased meaning 
the import of product  concerned replaced to the domestic product. After the imposition of 
safeguard measure in 2014 -2015, the import of product concerned were decreased. Therefore, the 
domestic industry was able to regain market share in 2014 and 2015 which resulted in a reduc tion 
of losses in 2014.  
 
However, from January to June 2016, the import share and the market share of product concerned 
remained the same as January to June 2015. Although the domestic industry turn to get the profit 
compared with the same period in 2015, showing the better situa tion of domestic industry 
since 2012.  
 
The authorities also considered factors other than increased imports that might be causing serious 
injury of domestic industry including the decrease of domestic demand caused by the effect of  the 
global economic slowdown, management ability of the domestic industry, productivity of domestic 
industry, investment in SSI UK of Sahaviriya Steel Industry PCL., etc., by analysing each injurious 
indicator that may be affected by these factors. The au thorities analysed those injurious effect so 
that any injury caused by these factors was not attributed to the flux of imports.  
 
In fact, the domestic industry currently has 7.9 million tons total production capacity which is 
more than enough to meet the d omestic demand. Moreover, it maintains productivity 
(output/input) approximately at the 96% - 98% level. Therefore, the lack of capability to supply 
the domestic demand is not the reason for the need of importation. In addition, the product 
concerned which  had received special exemption i.e. for the production of spiral pipe products; 
import for export, i.e., imports of products that are intended to be manufactured, further 
processed or incorporated into a finished product that will be exported from Thailan d under the 
Industrial Estate Authority of Thailand Act; or, the Investment Promotion Act; or, the Customs Act. 
and as special grade steels granted to certain importers already precluded from this analysis.  
 
In view of the clearly established coincidence i n time between, on the one hand, increase of 
market share, on the other hand, the domestic industry 's decreasing profitability, it is concluded 
that the safeguard measure continues to be necessary to prevent or remedy serious injury or 
threat thereof cause d by increased imports.  
 
b. Condition of imports  
As imports maintain at 2% from Jan. -Jun. 2015 to Jan. -Jun. 2016, the domestic industry got the 
first profit since 2013. However the domestic industry still need more time to adjust with the 
import product.  
 
c. Evidence that the industry concerned is adjusting  
The Committee on Safegua rd Measure of Thailand appointed the working group of steel industry 
experts to closely monitor the adjustment plan in phase I and evaluated the achievement of the 
domestic industry. This working group will also monitor the adjustment plan in phase II.  
 
1. Initial Adjustment Plan for 2014 – 2016 (Phase I)  
 
Since June 2014 until December 2016 when the safeguard measure was in force, the domestic 
industry exercised several programs aiming at the overall cost reduction, product development and 
production effic iency in order to increase its competitiveness. The programs included:   2012 2013  2014  2015  2014  
(Jan. -Jun.)  2015  
(Jan. -Jun.)  2016  
(Jan. -Jun.)  
Import Share (%)  9 26 6 2 8 2 2 
Profit/Loss  
(million baht)  (7,731)  (3,559)  (2,690)  (6,449)  (941)  (2,747)  185 G/SG/N/8/THA/3/Suppl.2 • G/SG/N/10/THA/3/Suppl.2  
 
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  a. Increase production efficiency including new machine installation, for expand the 
market and support the wider customers ' expectation;  
b. Cost reduction programs: the domestic industry h as planed 3 cost reduction programs 
i.e. the electricity reduction, the factories ' energy reduction, the maintenance and idle time 
reduction programs;   
c. Product development and product value -added: the domestic industry has developed 
their product quality e.g. developing high tensile and increased a thickness. At this stage, 
the domestic industry aim to support the wider customers ' expectation.   
 
2. Adjustment Plan for 2017 – 2019 (Phase II)  
 
After the huge investment in Phase I and several programs being underway, this second phase 
involves the continuous implementation of the programs in Phase I by lowering the production 
cost, increasing production efficiency, development of new product standards and grades to meet 
wider customers ' expectation, improving  the competency of human resources especially in 
production control and improving customer satisfaction.  
 
In sum, Phase II of the adjustment plan, which is the continuation of Phase I plan, involves a lot of 
investment by the domestic industry which will r esult in cost reduction of almost the same level 
but which will improve the overall competency of the domestic industry.  
 
d. Public interests  
During the course of the investigation, concern has been expressed that measure was against the 
public interest in th at the safeguard measure will increase cost of production of the down steam 
productions. As a result, those products would not be able to compete with low price finished 
products from the exporting countries.  
 
In this respect, the authorities conclude tha t it is in the long term public interest to extend the 
temporary protection to allow the industry to complete the adjustment process and regain 
competitiveness so as to provide the consumer with a variety of quality products at a reasonable 
price.  
 
2  INFORM ATION ON WHETHER THE RE IS AN ABSOLUTE IN CREASE IN IMPORTS OR  AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC  PRODUCTION  
See points 1.a and 1.b above.  
 
3  PRECISE DESCRIPTION OF THE PRODUCTS CONC ERNED  
The products concerned are non alloy hot rolled steel flat pr oducts in coils and not in coils, of a 
thickness of 0.9 – 50.0 mm. and a width of 600.0 – 3,048.0 mm. The products concerned are 
currently classified under the Thai Customs Tariff Code at 26 subheadings: 7208.36.00.031, 
7208.36.00.032, 7208.36.00.033, 7208 .36.00.090, 7208.37.00.041, 7208.37.00.042, 
7208.37.00.043, 7208.37.00.090, 7208.38.00.041, 7208.38.00.042, 7208.38.00.043, 
7208.38.00.090, 7208.39.90.041, 7208.39.90.042, 7208.39.90.043, 7208.39.90.090, 
7208.51.00.090, 7208.52.00.090, 7208.53.00.011, 7208 .53.00.012, 7208.53.00.013,  
7208.53.00.090, 7208.54.90.011, 7208.54.90.012, 7208.54.90.013, 7208.54.90.090, originating 
in or exported from various countries.  
 
4  IF THE FINAL MEASURE  REPLACES A PROVISION AL MEASURE, OR IF A FINAL 
MEASURE IS EXTENDED,  A MEMB ER IS ENCOURAGED TO PROVIDE A WRITTEN 
DESCRIPTION OF ANY P ART OF THE IMPORTED PRODUCT THAT WILL NO  LONGER BE 
SUBJECT TO THE MEASU RE  
Not applicable.  
 
5  PRECISE DESCRIPTION OF THE EXTENDED MEAS URE 
It was concluded that the safeguard measure continues to be ne cessary to prevent or remedy 
serious injury or threat thereof caused by increase imports while the domestic industry is 
adjusting.  G/SG/N/8/THA/3/Suppl.2 • G/SG /N/10/THA/3/Suppl.2  
 
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  The extended safeguard measure would be applied in the form of a tariff increase for three years 
starting from 7 June 2017 un til 6 June 2020.  
 
In accordance with the relevant provisions of the Thai Safeguard Measures on Increased Imports 
Act B.E.2550 (2007), which refer to Thailand 's obligations under Article XIX of the GATT 1994 and 
the WTO Agreement on Safeguards, the Committ ee on Safeguard Measures of Thailand has 
decided to impose a safeguard duty which continues to be progressively liberalized during the 
period of its validity as follows:  
 
Extended Duration  Extended Safeguard Duty  
7 June 2017 – 6 June 2018  21.00% of C.I.F.  price 
7 June 2018 – 6 June 2019  20.87% of C.I.F. price  
7 June 2019 – 6 June 2020  20.74% of C.I.F. price  
 
The measure will not be applied against the products concerned originating in or exported from 
any developing country as long as its share of impor ts of the products concerned into Thailand 
does not exceed 3%. In this regard, as the list of developing countries whose share of imports of 
the products concerned into Thailand does not exceed 3% has remained unchanged since the last 
WTO notification unde r Article 9 footnote 2 (WTO Document G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -
G/SG/N/11/THA/4 dated 15 January 2015), the list of developing countries excluded from the 
measure remains the same and is attached in the Annex below.   
 
In addition, the exemption from t he imposition of the extended safeguard measures will be 
granted to certain importers importing the products concerned into Thailand for special grade 
steels; for the production of spiral pipe products; and import for export, i.e., imports of products 
that are intended to be manufactured, further processed or incorporated into a finished product 
that will be exported from Thailand under the Industrial Estate Authority of Thailand Act; or, the 
Investment Promotion Act; or, the Customs Act.  
 
6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The measure is expected to come into effect on 7 June 2017.  
 
7  EXPECTED DURATION OF THE MEASURE  
The measure would be effective from 7 June 2017 until 6 June 2020.  
 
8  PROPOSED DATE FOR TH E REVIEW  
Not applicable . 
 
9  INFORMATION RELATED TO THE EXTENSION OF A SAFEGUARD MEASURE  
(i) Evidence that the industry concerned is adjusting and that the safeguard measure continues 
to be necessary to prevent or remedy serious injury is provided under 1 a) and  c) as mentioned 
above.  
 
(ii) Reference to  the WTO document that notified the initial application of the measure  
 
 Initiation of the original investigation, G/SG/N/6/THA/4  (3 February 2014)  
 Imposition of provisional measures, G/SG/N/7/THA/3/Suppl.1 -G/SG/N/11/THA/3/Suppl.1  
(25 September 2014 ) 
 Impos ition of definitive measure, G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -G/SG/N/11/THA/4  
(15 January 2015 ) 
 
 G/SG/N/8/THA/3/Suppl.2 • G/SG/N/10/THA/3/Suppl.2  
 
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   Notifications under Article 9 footnote 2, G/SG/N/7/THA/3 -G/SG/N/11/THA/3  (28 May 2014 ), 
G/SG/N/7/THA/3/Suppl.1 -G/SG/N/11/THA/3/Suppl.1 (25 September 2014)  and 
G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -G/SG/N/11/THA/4  (15 January 2015 ) 
 
(iii) Duration  of the measure from initial application till the date at which it will be extended;  
 
7 June 2014 (provisional measure) - 6 June 2020 . 
 
(iv) Precise description of the measure i n place prior to the date of extension  
 
Duty of 21.13% of C.I.F. price during 7 June 2016 - 6 June 2017 . 
 
10  INFORMATION RELATING  TO EXPORTING MEMBERS  
a) The main exporting countries to Thailand are the Republic of India , the Russian Federation  
and the Repub lic of Korea.  
b) There are no exporting Members to which the measure does not apply for any reason other 
than the application of Article 9.1 . 
 
11  PUBLIC HEARING AND P RIOR CONSULTATION WI TH THOSE MEMBERS HAV ING A 
SUBSTANTIAL INTEREST  AS EXPORTERS OF THE PRODUC T CONCERNED.  
The public hearing was held on 24 April 2017  at the Department of Foreign Trade (DFT), Ministry 
of Commerce of Thailand and the prior consultations were held on 21 April 2017  at the DFT. 
However, only the Ministry of Economy of Republic of Tu rkey requested a time slot for prior 
consultation with DFT.  
 
12  FURTHER INFORMATION  
The Committee on Safeguard Measure of Thailand 's notification on the extension of safeguard 
measure was published in the Royal Thai Government Gazette on 6 June 2017.  G/SG/N/8/THA/3/Suppl.2 • G/SG /N/10/THA/3/Suppl.2  
 
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  ANNEX  
LIST OF DEVELOPING C OUNTRIES AND SEPARAT E CUSTOMS TERRITORIE S EXCLUDED FROM  THE 
IMPOSITION OF E XTENDED SAFEGUARD MEASURE ON  NON ALLOY HOT ROLLED   
STEEL FLAT PRODUCTS IN COILS AND NOT IN COILS  
 
No. Developing Countries exempted from the 
Imposition of Safeg uard Measure  No. Developing Countries exempted from the 
Imposition of Safeguard Measure  
1 The Republic of Burundi  31 The Kingdom of Morocco  
2 The Union of the Comoros  32 The Republic of Sudan  
3 The Republic of Djibouti  33 The Republic of Tunisia   
4 The State of Eritrea  34 Western Sahara  
5 The Federal Democratic Republic of Ethiopia  35 The Republic of Botswana  
6 The Republic of Kenya  36 Kingdom of Lesotho  
7 The Republic of Madagascar  37 The Republic of Namibia    
8 The Republic of Malawi  38 The Republic of South Africa    
9 The Republic of Mauritius  39 Kingdom of Swaziland  
10 The Republic of Mozambique  40 The Republic of Benin    
11 The Republic of Rwanda  41 Burkina Faso    
12 The Republic of Seychelles  42 The Republic of Cape Verde     
13 Somalia  43 The Republic of Cote d'Ivoire    
14 Republic of South Sudan  44 The Republic of Gambia  
15 The Republic of Uganda  45 The Republic of Ghana  
16 The United Republic of Tanzania  46 The Republic of Guinea    
17 The Republic of Zambia  47 The Republic of Guinea -Bissau  
18 The Republic of Zimbabwe  48 The Republic of Liberia    
19 The Republic of Angola  49 The Republic of Mali  
20 The Republic of Cameroon  50 Islamic Republic of Mauritania   
21 Central African Republic  51 The Republic of Niger   
22 The Republic of Chad  52 Federal Republic of Nigeria  
23 The Republic of the Congo  53 Saint Helena  
24 The Democratic Republic of the Congo  54 The Republic of Senegal  
25 Republic of Equatorial Guinea  55 The Republic of Sierra Leone    
26 The Republic of Gabon  56 The Republic of Togo    
27 The Democratic Republic of Sao Tome & 
Principe  57 The Republic of Cuba    
28 The People's Democratic Republic of Algeria  58 Dominican Republic    
29 The Arab Republic of Egypt  59 The Republic of Hai ti    
30 The Great Socialist Peoples Libyan Arab 
Jamahiriya    60 Jamaica  
 G/SG/N/8/THA/3/Suppl.2 • G/SG/N/10/THA/3/Suppl.2  
 
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No. Developing Countries exempted from the 
Imposition of Safeguard Measure  No. Developing Countries exempted from the 
Imposition of Safeguard Measure  
61 Anguilla  91 The Re public of Ecuador    
62 Antigua & Barbuda  92 Falkland Islands(Malvinas)    
63 Aruba  93 The Cooperative Republic of Guyana  
64 Bahamas  94 The Republic of Paraguay  
65 Barbados  95 The Republic of Peru   
66 Bonaire, Sint Eustatius and Saba  96 The Republic of Suriname  
67 British Virgin Islands    97 The Republic of Uruguay  
68 Cayman Islands  98 The Bolivarian Republic of Venezuela  
69 Curacao  99 The People's Republic of China  
70 The Commonwealth of Dominica  100 The Democratic People's Republic of Korea    
71 Grenada  101 China, Hong Kong SAR  
72 Montserrat    102 Macao  
73 The Federation of Saint Kitts & Nevis  103 Mongolia    
74 Saint Lucia    104 The Islamic Republic of Afghanistan    
75 Saint Vincent & the Grenadines  105 The People's Republic of Bang ladesh    
76 Sint Maarten  106 The Kingdom of Bhutan    
77 Trinidad and Tobago  107 The Islamic Republic of Iran    
78 Turks and Caicos Islands  108 The Republic of Maldives  
79 Belize    109 The Democratic Republic of Nepal    
80 The Republic of Costa Ric a    110 The Islamic Republic of Pakistan    
81 The Republic of El Salvador    111 The Democratic Socialist Republic of Sri Lanka    
82 The Republic of Guatemala    112 Negara Brunei Darussalam  
83 The Republic of Honduras  113 The Kingdom of Cambodia    
84 The United Mexican States  114 The Republic of Indonesia  
85 The Republic of Nicaragua    115 The Lao People's Democratic Republic  
86 The Republic of Panama    116 Malaysia    
87 The Republic of Argentina    117 The Republic of the Union of Myanmar  
88 The Plurinational State of Bolivia    118 The Republic of the Philippines    
89 The Republic of Chile  119 Republic of Singapore  
90 The Republic of Colombia    120 The Democratic Republic of Timor -Leste  
 
 G/SG/N/8/THA/3/Suppl.2 • G/SG /N/10/THA/3/Suppl.2  
 
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No. Developing Countries exempted from the 
Imposition of Safeguard Measure  No. Developing Countries exempted from the 
Imposition of Safeguard Measure  
121 The Socialist Republic of Vietnam      151 The Kingdom of Tonga      
122 The Kingdom of Bahrain  152 Tuvalu  
123 The Republic of Iraq    153 The Republic of Vanuatu  
124 Hashemite Kingdom of Jordan  154 Wallis & Futuna Island  
125 The State of Kuwait  155 The Republic of Albania    
126 The Republic of Lebanon  156 The Republic of Armenia    
127 The Sultanate of Oman  157 The Republic of Azerbaij an    
128 The State of Qatar  158 The Republic of Belarus  
129 The Kingdom of Saudi Arabia  159 Bosnia & Herzegovina   
130 State of Palestine  160 Republic of Croatia  
131 The Syrian Arab Republic    161 Georgia    
132 The United Arab Emirates  162 The Repu blic of Kazakhstan    
133 The Republic of Yemen    163 The Kyrgyz Republic    
134 American Samoa    164 Montenegro  
135 Cook Islands    165 The Republic of Moldova  
136 The Republic of Fiji  166 The Republic of Serbia  
137 French Polynesia  167 The Republ ic of Tajikistan  
138 Guam  168 Socialist Federal Republic of Yugoslavia  
139 Republic of Kiribati  169 Turkmenistan  
140 The Republic of the Marshall Islands  170 Ukraine  
141 The Federated States of Micronesia    171 The Republic of Uzbekistan  
142 The Repu blic of Nauru  
143 New Caledonia  
144 Niue      
145 Northern Mariana Islands  
146 The Republic of Palau  
147 Papua New Guinea  
148 Independent State of Samoa  
149 Solomon Islands    
150 Tokelau    
 
 
 
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