WORLD TRADE  
ORGANIZATION  G/SG/N/8/UKR/2 
G/SG/N/10/UKR/2 23 October 2009 
 
(09-5266) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT 
ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR  
THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
UKRAINE 
 
(Matches
) 
 
  The following communication, dated 19 October 2009, is being circulated at the request of the Delegation of Ukraine.  
_______________ 
 
  On 29 of November 2008, a safeguards investig atory process was initiated relating to imports 
into Ukraine of Matches (hereinafter – "Matches") ir respective of their country of origin and export. 
 
 The investigation was instituted followi ng the claim by State Enterprise "Ryvnenska 
Syrnykova Fabrika" and "Ukrayinska Syrnykova Fabrika" (hereinafter – "the Applicant"). With regard to the fact that these ente rprises account for 100 per cent of indus trial output of such goods in 
the territory of Ukraine, these enterprises constitu te an industry of domestic production of like goods 
in Ukraine in the sense of Article 4.1( c) of the Agreement on Safeguards.   
 
 Notification about initiation of a special i nvestigation was submitted to the Committee on 
Safeguards and on 18 of December 2008 the above- mentioned investigation was given the number 
G/SG/N/6/UKR/2.  
1. Evidence of serious injury or threa t thereof caused by increased imports 
 
A. Evidence of Serious Injury    To establish the fact of inflicting serious inju ry to the domestic industry producing like goods 
in Ukraine as a result of growing imports into Ukraine of Matches, all relevant factors of objective 
and quantitative nature have b een considered impacting the s ituation in this industry.   
  The dynamics of growing imports to Ukrain e of Matches and the industrial, trade and 
financial situation of the domestic manufacturin g industry was investigated in the period from 
1 July 2005 until 30 June 2008.   G/SG/N/8/UKR/2 
G/SG/N/10/UKR/2 Page 2 
 
 
   The following assessment is based upon the da ta of the body responsible for conducting the 
investigation.  The survey established that duri ng the period from second half-year of 2007 until first 
half-year of 2008:  
 - output of similar commodity and use of  production capacities of the Applicant was 
decreased by 10% as compared to second half-year of 2005 - first half-year of 2006, and by 5.8 % as compared to second half-year of 2006 - first half-year of 2007; 
  - volume of sales of similar commodity in  the domestic market of Ukraine decreased 
by 16.14 % as compared to second half-year of 2005 - first half-year of 2006, and by 
14.24 % as compared to second half-year of 2006 - first half-year of 2007; 
  - the level of Matches balances at warehou ses of Applicant increased by 273.02 % in 
second half-year of 2007 - first half-year of  2008 as compared to second half-year of 
2006 - first half-year of 2007;   
  - employment decreased by 5.46 % in second half-year of 2007 - first half-year of 2008 
as compared to second half-year of 2005 - first half-year of 2006, and also the index of labor efficiency decreased in second half-year of 2007 - first half-year of 2008 by 8% as compared to second half-year of 2005 - first half-year of 2006.   
 
 Taken together, all of the above-mentioned factors have given the grounds to the body 
responsible for investigations to conclude that the domestic industry suffered material injury during 
the period of investigation.    
B. An analysis of causes and effects 
 
 - Impact of growing imports 
  The body responsible for investigation found that  during the period of investigation there was 
growth of imports of Matches, which were the object  of investigation in absolute indexes as well as 
relative to domestic production of such Matches.   Meanwhile, the price level, under which the 
Matches were imported to Ukraine, was lower than  selling price of similar Matches and below its 
cost.   Specified conditions of import of Matches to Ukraine, which was the object of the 
investigation, led to the displace ment from the internal market and reducing of the specific gravity of 
Applicant in consumption in the domestic market of Ukraine from 23.54% in the second half-year of 
2005 - first half-year of 2006 to 18.21% in half-year of 2007 - first half-year of 2008. It should be noted that the specific gravity of Matches, which w as the object of investigation, in consumption in 
the domestic market of Ukraine on the contra ry increased from 76.46% to 81.79% in the 
corresponding periods. 
 
 In turn the increasing volume of imports to Uk raine of Matches, which were the object to 
investigation, and conditions of its realization led to a reduction of production of similar commodity, 
use of production capacity by domestic industry, decline in sales of si milar commodity on the 
domestic market of Ukraine, the number of employees at the enterprise of the Applicant and led to the 
growth of the balance of such  commodity at the warehouses. 
  G/SG/N/8/UKR/2 
 G/SG/N/10/UKR/2 
 Page 3 
 
 
   - Other factors:   
  As share of the Applicant in the nationa l production of similar commodity is 100%, 
competitive influence from other Uk rainian producers is absent. 
  
 Having considered the possible impact of ot her known factors, the body that conducted the 
investigation confirmed the fact that there is a cause-and-effect relation be tween growing imports and 
the serious injury inflicted to the domestic industry.    2. Information showing whether there is an absolute increase in imports or an increase in 
imports in relation to the volumes of domestic production and consumption 
 
 The Body responsible for the investigation found that during the investigation period there 
has been growth in imports to Ukraine of Matc hes, which were the object of investigation:  
 
 in absolute indexes: in second half-year of 2007 - first half-year of 2008 compared with 
second half-year of 2005 - first half-year of 2006 on 15.96 %, compared with second half-year of 2006 - first half-year of 2007 on 15.2%;  
  concerning the production of such commodity:  in  second half-year of 2007 - first half-year of 
2008 compared with second half-year of 2005 - first half-year of 2006 on 28.75%, compared 
with second half-year of 2006 - first half-year of 2007 on 22.32%. 
 
3. Specific description of the goods in question 
 
 The measures concern imports to Ukraine of goods  irrespective of their country of origin and 
export.  The goods are describes as follows:  Matches, other than pyrotechnic articles of heading 
3604, classified in accordance with the Ukrainian classification of goods in foreign economic activity 
by the code 3605 00 00 00.  
4. Specific description of the measure applied 
 
 Special measures are implemented by introducing special duty at the rate of 11.3%.  
5. Date of applying the measure 
  6 November 2009 
 
6. Period of applying the measure  
 The special measures are applied for the term of three (3) years  
 
7. The established date of review for the measures whose term exceeds three (3) years  
 The term of validity of the measures does not exceed three (3) years.     
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