WORLD TRADE  
ORGANIZATION  G/SG/N/6/PAK/1 
20 June 2005 
 
 (05-2587) 
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 
 
PAKISTAN 
 
(Footwear)
 
   The following communication, dated 17 June 2005,  is being circulated at the request of the 
Delegation of Pakistan. 
 
_______________ 
 
  The National Tariff Commission (the "Commission") received an application for imposition 
of safeguard measures on imports of footwear being imported into Pakistan under the Safeguard 
Measures Ordinance 2002 (the "Ordinance") on 10 May 2005.  The Applicant has alleged that serious 
injury is being caused to Pakistan's footwear manufacturing industry as a direct consequence of 
unforeseen developments and of the effects of WT O obligations assumed by Pakistan resulting in a 
sudden surge in imports of footwear products into Pakistan. 
 
 The Commission has determined that there is prima facie  sufficient evidence to justify 
initiation of a safeguard investigation.  The Commissi on has, therefore, decided to initiate a safeguard 
investigation under Section 9 of the Ordinance.  A co py of the notice of initiation of investigation is 
enclosed.  
 In terms of Section 10(1) of the Ordinance and Article 12.1 of the Agreement on Safeguards, 
the Government of Pakistan is required to notify the initiation of investigation to the WTO Committee 
on Safeguards.  It is therefore, requested that th e initiation of investigation may kindly be notified. 
 G/SG/N/6/PAK/1 
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 SG C No. 1/2005/FW 
National Tariff Commission 
Government of Pakistan 
 
NOTICE OF INITIATION OF SAFEGUARD INVESTIGATION AGAINST ALLEGED
 
SURGE IN IMPORTS OF FOOTWEAR INTO PAKISTAN  
 Investigating Authority
 National Tariff Commission (the "Commission") 
 Applicant
 The application has been submitted by Pakistan Footwear 
Manufactures Association (the "Applicant"). 
 Investigated Product
 The "investigated product" is footwear, classified under Pakistan 
Customs Tariff ("PCT") Headings 6401.1000 to 6405.9090 and is subject to 25% custom duty on its  import.  Footwear is understood 
here as described in PCT Headings 6401.1000 to 6405.9090.  
Footwear, whether manufactured locally or imported is used for the same purpose.  There may be a variety of specifications of footwear depending on input used or design etc., but due to high degree of substitutability all footwear are considered as "like product" or "directly competitive product". 
 
Domestic Like Product
  The domestic like product, being the product produced in Pakistan 
having the same product description as of the investigated product, is also footwear, which is classified  under the same PCT Headings as 
for the investigated product. 
 
Sources of Imports
  From all countries. 
 Application:
  The application was lodged by the Applicant on 10 May 2005 under Section 7 of the 
Safeguard Measures Ordinance 2002 (the "Ordinance").  The application alleges that there is a sudden 
surge in imports of the investigated product into  Pakistan, which has caused and is causing serious 
injury to the domestic industry producing domestic lik e product.  The Applicant has alleged that the 
domestic industry is injured on account of decrease in  production, loss in market share, low capacity 
utilization, decrease in profits and negative effects on domestic sales.   Additional data was sought from the Applican t under Section 9(3) of the Ordinance after 
initial examination of the application.  Additiona l time period of ten days was requested by the 
Applicant for provision of information, which was allowed by the Commission.  For this reason the 
Commission extended the time period of thirty days of the date of receipt of application to initiate the 
investigation under Rule 5 of the Safe guard Measures Rules 2003 (the "Rules"). 
 Initiation of Investigation:
  The Commission hereby initiates the investigation pursuant to Section 9 of 
the Ordinance.  The investigation will determine pur suant to Section 3 of the Ordinance whether as a 
result of unforeseen developments and of the eff ect of WTO obligations assumed by Pakistan, the 
investigated product is being imported in such incr eased quantities, absolute or relative to domestic 
production, and under such conditions as to cause ser ious injury to the domestic industry.  The 
Commission will consider application of provisional measure, if required, in terms of Section 12 of 
the Ordinance.  The Commission may also, during the c ourse of this investigation, require any further 
information/data, from any of the parties mentioned in Section 13 of the Ordinance, deemed necessary 
for the purposes of this investigation.   G/SG/N/6/PAK/1 
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 Investigation Schedule  
 Date of initiation of investigation: The da te of publication of this notice in the 
official Gazette in Pakistan. 
 
Date by which parties may register as With in 15 days of initiation of investigation 
interested party in the investigation  Date by which interested parties may request Within 15 days of initiation of investigation 
for hearing 
 
Date of submission of Report of Provisional  Within 45 days of initiation of investigation 
Determination to the Federal Government  Date of Decision by Federal Government on W ithin 15 days of receipt of report by the 
Report of Provisional Determination regarding Commission 
application of a provisional measure  Date of submission of Final Report Within four months of initiation of investigation 
Determination to the Federal Government  
Date of Decision on Final Determination by Within 30 days of receipt of report by the 
Government on the Report of Final Commission Determination  Interested Parties:
  Interested parties, as defined in Sec tion 2(g) of the Ordinance, desiring to 
participate in the investigation shall indicate th eir interest to the Secretary, National Tariff 
Commission, State Life Building No.5, Blue Area, F 6/4, Islamabad, Tel:  +9251-9202839 Fax:  +9251-9221205.  An interested party applying for registration with the Commission in this investigation should submit:  the name, addr ess, telephone number and fax number of the 
undertaking;  its line of business and name of th e person authorized to deal on behalf of the 
undertaking in the subject investigation. 
 
Written Arguments:
  Interested parties may submit writte n arguments concerning any matter they 
consider relevant to the preliminary phase of inves tigation no later than twenty-one days before the 
date proposed for the determination regardi ng the application of a provisional measure. 
 
 In case a request for a hearing is not receive d by the Commission then any interested party 
may submit written arguments concerning any matter it c onsiders relevant to the investigation no later 
than sixty days before the date proposed for final determination. 
  In case where a hearing is held, interest ed parties may submit written arguments and 
information (if any) not later than 10 days before th e scheduled date of heari ng.  The scheduled date 
of any hearing shall be communicated to the interested parties. 
  All evidence and written arguments regarding th is investigation should be submitted to the 
Secretary of the Commission at the above address.  
Reliance on information available:
  Where any interested party refuses access to or otherwise does not 
provide the required information within the time limit prescribed or significantly impedes the investigation, determination by the Commission may be made on the basis of information available in 
accordance with Section 17 of the Ordinance.  G/SG/N/6/PAK/1 
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 Public File:
  In accordance with Section 15 of the Or dinance, the Commission has established and 
maintained a public file at the offices of the Commiss ion, which is available to the interested parties 
for review and copying from Monday to Thursday between 1100 hours to 1300 hours throughout the investigation.  
Further Information:
  For further information regarding this investigation please contact, 
Muhammad Hamood-ur-Rauf, Assistant Director  Tel:  +9251-9218962, Fax :  +9251-9221205. 
  By order of the Commission.  
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