WORLD TRADE  
ORGANIZATION  G/SG/N/14/TUR/3 
G/SG/N/11/TUR/3/Suppl.1 18 January 2010 
 
(10-0213) 
Committee on Safeguards Original:   English 
   
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE) 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Vacuum cleaners
) 
 
 
 The following notification, dated 14 January 2010,  is being circulated at the request of the 
Delegation of Turkey.    
_______________ 
  
 We enclose a notification pursuant to Article 12.1(c) and Article 9, Footnote 2 of the Agreement on Safeguards, on taking a decision to ex tend a safeguard measure that is being applied 
against imports of vacuum cleaners and non-app lication of safeguard measure to developing 
countries.  The introduction of the existing safe guard measure was notified with the document 
G/SG/N/8/TUR/3-G/SG/N/10/TUR/3-G/SG/N /11/TUR/3, dated 12 July 2006. 
  Consistent with Article 12.3 of the Agre ement on Safeguards, Turkey is ready to hold 
consultations with those Members having a substan tial interest as exporters of the product concerned. 
 1. Evidence that the safeguard measure continue s to be necessary to prevent or remedy 
serious injury or threat thereof caused by  increased imports and that the industry 
concerned is adjusting 
 Pursuant to Article 7, paragraphs 2 and 3 of the Agreement on Safeguards, a safeguard 
measure should not be applied for a period exceeding four years, unless it is extended.  The period 
may be extended provided that th e competent authorities of the importing Member have determined 
that the safeguard measure continu es to be necessary to prevent or remedy serious injury and that 
there is evidence that the industry is adjusting.   The investigation conducted by Turkish inves tigating authority examined the period from the 
year 2006 to January-July of 2009.  Information rela ting to certain indicators of the domestic industry 
is provided below.  Domestic industry comprises  four domestic producers that represent major 
proportion of total production of the like product. In order to maintain confidentiality of the 
information submitted by the applicant companies,  figures relating to profitability are shown by 
indexes.  G/SG/N/14/TUR/3 
G/SG/N/11/TUR/3/Suppl.1 Page 2 
 
 
  1.1 Consumption 
   
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Consumption 
(Pieces) 2,468,985 2,237,992 2,606,392 1,515,179 1,052,124 
 
 Consumption of the product concerned stood at  nearly 2.5 million pieces in 2006.  Having 
decreased by 9 per cent in 2007, consumption reached its peak in 2008.  A fall by 31 per cent was recorded in consumption in the first 6-month period of 2009.  1.2 Production  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Production 
(Pieces) 1,513,374 1,652,893 1,874,223 967,083 773,912 
 
 Production of vacuum cleaners rose by 9 per cent and 13 per cent in 2007 and 2008, respectively.  Production fell by 20 per cent in the first half of 2009.  1.3 Domestic sales 
 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Domestic sales 
(Pieces) 1,167,601 1,316,869 1,583,454 813,897 669,141 
 
 Following a parallel trend to the production, domestic sales of the product concerned reached 
its highest level in 2008.  Domestic sales decreased  by 18 per cent in the first 6-month period of 2009. 
 
1.4 Capacity and capacity utilization ratio (CUR) 
 
 2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Capacity 
(Pieces) 1,921,120 2,131,120 2,131,120 1,065,560 1,383,560 
CUR  (%) 79 78 88 91 56 
 
 Total production capacity of vacuum cleaners in creased in 2007 and 2009.  Besides, having 
risen to 88 per cent in 2008, capacity utilization ra tio decreased to 56 per cent in the first 6-month 
period of 2009, owing to both the increase in capacity and the fall in production. 
 1.5 End of period inventories  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Inventories 
(Pieces) 29,876 45,057 33,591 52,071 26,806 
  G/SG/N/14/TUR/3 
 G/SG/N/11/TUR/3/Suppl.1  Page 3 
 
 
   End of period inventories reached its peak in  2007.  Inventories began to go down in 2008 
and fell to its lowest level at  the end of June of 2009. 
 1.6 Employment 
 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Employment 
(Workers) 711 858 832 822 821 
 
 Having increased by 21 per cent in 2007, employment in the domestic industry decreased by 3 per cent in 2008.  Employment remained stable in  January-June of 2009, compared with the same 
period of 2008. 
 
1.7 Labour productivity  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Productivity 
(Pieces per worker) 2,129 1,926 2,253 1,177 943 
 
 Labour productivity in the production of vacuum  cleaners improved significantly in 2008.  
Productivity fell by 20 per cent in the first 6-month period of 2009, compared with the same period of 
2008.  1.8 Profits  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Profitability 
(Index – %) 100 61 93 91 128 
 
 Profitability index declined from 100 in 2006 to  61 in 2007.  Having grown by 22 points in 
2008, profitability improved furthe r in the first half of 2009. 
 1.9 Market share  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Market share  (%) 
47 59 61 54 64 
 
 Market share of the domestic products increased  throughout the period concerned.  Market 
share reached 64 per cent in the first 6-month period of 2009.  1.10 Prices 
 
 A market survey was conducted within the inv estigation in order to compare the price levels 
of the imported and domestic products.  In the surv ey, the products were classified according to 
various technical features such as filter type, power consumption and dus t capacity.  The upper 
segment covers 26 imported and 8 domestic pr oducts while the medium segment comprises G/SG/N/14/TUR/3 
G/SG/N/11/TUR/3/Suppl.1 Page 4 
 
 
  27 imported and 29 domestic produc ts and the lower segment consists of 19 imported and 
38 domestic products.  Average price levels at the retail stage are shown in the table below. 
 
Price/Segment Upper Medium Lower 
Domestic product 
(TL per piece) 319 223 146 
Imported product       
(TL per piece) 427 299 181 
 
 The domestic products have, on average, lower unit prices than the imported products in all 
the segments analyzed.  However, the disparity between prices of the imported and the domestic 
products falls to its lowest level in the lower segme nt of the market.  Therefore, the domestic products 
in the lower segment would probably face price pre ssure of the imported products with the cessation 
of the safeguard measure. 
 1.11 Actions taken by the domestic producers   In order to adjust to the competition in th e domestic market, domestic producers took several 
actions during the period the safeguard measure has been applied.  Therefore, during this period,  
 
− Domestic producers manufactured a total of 62 models of vacuum cleaners. 
 
− Domestic producers filed applications for the registration of patents or utility models 
certificates of 28 models of vacuum cleaners. 
 
− Working capital of domestic producers incr eased by 24.3 million Turkish Liras. 
 
− Domestic producers invested in fixed capital and machinery and equipment relating to 
the production of vacuum cleaners by 9.4 million TL. 
 
− Domestic producers' R&D expenditures with regard to the production of vacuum 
cleaners amounted to approximately 3 million TL. 
 1.12 Conclusion 
 
 Economic indicators of the domestic producers re veal that the industry achieved a substantial 
recovery in 2007 and 2008.  Accordingly, mark et share of the domestic products increased from 
47 per cent in 2006 to 61 per cent in 2008.  However,  there was a partial deterioration in the economic 
indicators in January-June of 2009 du e to the global economic crisis. 
 
 Also, it was found out during the investigati on that the imported products in the lower 
segment of the market, with their average price level, might create negative impacts on the domestic products in case the safeguard measure shall not be applied.   Furthermore, domestic producers have implemented several measures to adapt themselves to 
the competition with the imported products.  Part icularly, the producers have concentrated on 
introduction on new models during the period concerned.  However, the results of the market survey 
and the recent economic indicators of the domestic indus try show that the producers are in need of an 
extra period during which the safeguard  measure shall remain in force.  G/SG/N/14/TUR/3 
 G/SG/N/11/TUR/3/Suppl.1  Page 5 
 
 
    
 As a result, it was concluded that the requireme nts for the extension of the safeguard measure 
were met.  2. Information on absolute increase in imports 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Imports 
(Pieces) 1,301,384 921,123 1,022,938 701,282 382,983 
 
 Having dropped by 29 per cent in 2007, imports  of vacuum cleaners rose by 11 per cent in 
2008.  Imports fell by 45 per cent in the first 6-mont h period of 2009, compared with the same period 
in 2008. 
 
3. Description of the product subject to the safeguard measure 
 The product subject to the safeguard measure is classified under "vacuum cleaners" with 
HS Codes 8508.11.00.00.11 and 85 08.19.00.00.00 and descr iptions "of a Voltage 110 Volts or more" 
and "others", respectively. 
 
4. WTO document that notified the initial application of the measure 
 The introduction of the existing safeguard  measure was notified with the document 
G/SG/N/8/TUR/3-G/SG/N/10/TUR/3-G/SG/N /11/TUR/3, dated 12 July 2006. 
 
5. Duration of the measure from initial applicatio n till the date at which it will be extended 
 The initial safeguard measure was applied from 10 August 2006 to 9 August 2009.  Turkey 
now intends to extend the safeguard measure for 3 more years.  The measure to be extended is 
expected to be in force from 10 August 2009 to 9 August 2012.  
6. Precise description of the measure in place prior to the date of extension 
 According to the Council of Ministers d ecision published in the Official Gazette of 
11/7/2006, no. 26225, a variable duty was applie d as a safeguard measure against products under a 
certain threshold level.  The difference between th e threshold level and the actual price of the import 
product was collected as additional financial liab ility.  The threshold level was USD 40 per piece in 
the first year, USD 38 per piece in the second year and USD 36 per piece in the third year. 
 
7. Description of the extended measure 
 It is proposed to impose a variable duty as a safeguard measure for an additional period of 
three years against products under a certain thres hold level.  The difference between the threshold 
level and the actual price of the import product will be  collected as additional financial liability.  The 
threshold level will be USD 34 per piece in the first year, USD 33 per piece in the second year and 
USD 32  per piece in the third year. 
 
8. Progressive liberalization of the measure 
 The measure will be progressively liberalized, at regular intervals as explained under 
Heading 7 above. G/SG/N/14/TUR/3 
G/SG/N/11/TUR/3/Suppl.1 Page 6 
 
 
  9. The developing countries to which the measure is not applied under Article 9.1 of the 
Agreement on Safeguards 
 The developing countries in the list below are excluded from the measure as they export less 
than 3 per cent of imports to Turkey. 
 
 Afghanistan; Algeria; Antigua and Barbuda; A ngola; Argentina; American Samoa; Anguilla; 
Antarctica; Aruba; Azerbaijan; Barbados; Banglad esh; Burkina Faso; Bahrain; Burundi; Benin;  
Bolivarian Republic of Venezuela; Brunei Darussalam ; Bolivia; Brazil; Bahamas; Bhutan; Botswana;  
Belize; Bermuda; Bouvet Island; British Virgin Is lands; British Indian Ocean Territory; Democratic 
Republic of Congo; Central Africa n Republic; Congo; Côte d'Ivoire; Cameroon; Chad; Colombia;  
Costa Rica; Cuba; Cape Verde; Cayman Islands; Chile; Christmas Islands; Cocos Islands; Cook 
Islands; Djibouti; Dominica; Dominican Republic; Ec uador; Egypt; Eritrea; Ethiopia; Fiji; Federated 
States of Micronesia; Falkland Islands; French Polynesia; French Southern Territories; Gabon;  Grenada; Ghana; Gambia; Georgia; Greenland; Guinea; Equatorial Guin ea; Guatemala; Guinea-
Bissau; Guyana; Gibraltar; Guam; Honduras; Haiti; Heard Island and McDonald Islands; India;  
Indonesia; Iraq; Iran (Islamic Republic of); Jamaica; Jordan; Kazakhstan; Kenya; Cambodia; Kiribati;  
Comoros; St Kitts and Nevis; Kuwait; Kyrgyzstan; Laos; Lebanon; St Lucia; Sri Lanka; Liberia;  
Lesotho; Libyan Arab Jamahiriya; Morocco; Madagascar; Marshall Islands; Mali; Moldova;  
Mongolia; Mauritania; Mauritius; Malaysia; Mald ives; Malawi; Mozambique; Macao; Mayotte;  
Mexico; Montserrat; Namibia; Niger; Nigeria; Ni caragua; Nepal; Nauru; Netherlands Antilles; New 
Caledonia; Niue Island; Norfolk Island; Northern  Mariana Islands; Oman; Panama; Peru; Papua New 
Guinea; Philippines; Pakistan; Palau; Paraguay; Pit cairn; Qatar; Russian Federation; Rwanda; Samoa;  
Saudi Arabia; Solomon Islands; Seychelles; Sudan;  Sierra Leone; Senegal; Somalia; Suriname;  Sao 
Tomé and Principe; El Salvador; Syrian Arab Re public; Swaziland; South Africa; South Georgia and 
South Sandwich Islands; St Helena and dependencies; St Pierre and Miquelon; Tajikistan; Thailand;  
Togo; Tunisia; Tonga; East Timor; Trinidad and To bago; Turkmenistan; Tuvalu; Tanzania; Tokelau;  
Turks and Caicos Islands; Ukraine; United Arab Emirates; United States Minor outlying islands;  
Uganda; Uruguay; Uzbekistan; St Vincent; Vietna m; Vanuatu; Virgin Islands of US; Wallis and 
Futuna Islands; Yemen; Zambia and Zimbabwe  
__________