. /.   WORLD TRADE  
ORGANIZATION  G/SG/N/6/UKR/6 
23 February 2010 
 (10-0987) 
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 
 
UKRAINE 
 
(Ferro-manganese containing by weight more than 2 per cent of carbon (except in
 
ferro-manganese granule size not more than 5 mm and the mass fraction  
of manganese over 65 per cent) and ferro-silico-manganese ) 
 
 
 The following communication, dated 18 February 2010, is being circulated at the request of 
the Delegation of Ukraine.    
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 Pursuant to Article 12.1(a) of the Agreemen t on Safeguards and using the format adopted by 
the Committee on Safeguards (G/SG/N/6/Rev.1), Ukraine hereby gives notification of the initiation of 
the safeguards investigatory process, as follows:    1. Investigation initiation date   
 According to the Decision No. SP – 228/2010/4402-29 of the Interdepartmental Commission 
on Foreign Trade "On the initiation of special inves tigation on imports into Ukraine of ferroalloys 
regardless of country of origin or export", on 17  February 2010 there was initiated the investigation 
process.  
 
2. Description of the product involved 
 
 Ferro-manganese containing by weight more than 2 per cent of carbon (except in ferro-
manganese granule size not more than 5 mm and the mass fraction of manganese over 65 per cent) 
and ferro-silico-manganese classified under UKTZED codes 7202 11 80 00, 7202 30 00 00.
1 
 
3. Reasons for the initiation of investigation 
 
(i)  The investigation has been initiated pursuant to the petition of the Ukrainian Association of 
Ferroalloys and other electro-metallurgical produc ts acting on behalf of JSC "Nikopol Ferroalloy 
Plant", JSC "Zaporizhzhya Ferroalloy Plant" and JSC "Stakhaniv Ferroalloy Plant", whose share in 
total production of the domestic market is 100 per cent.  Thus, the investigation initiated by the 
domestic industry.  
                                                     
 
 1 UKTZED is the Ukrainian Fore ign Economic Activity Commodity Classification, based on 
Harmonized System 2002. G/SG/N/6/UKR/6 
Page 2  
 
  (ii)  Based on the petition, the Commission found that it contained enough information for making 
conclusion that during III quarter of 2008 - III qu arter of 2009 the product concerned has been 
imported to Ukraine in such quantities and under such  conditions, that might have caused injury to 
domestic industry, in particular:  
 - The volume of imports in absolute term s increased by 219 pe r cent; relative to 
domestic production – by 277 per cent; in co mparison with the consumption of 
product on the domestic market – by 681 per cent. 
  - Under such conditions of import to Ukra ine, output of domestic production decreased 
by 15 per cent; productive capacity usage declined by 16 per cent, domestic product 
sales decreased by 67 per cent; share in consumption of the domestic market fell by 19 per cent, balance of finished products in the warehouses of companies grew to 45 per cent; the liquidity ratio of domestic production decreased by 36 per cent, average domestic industry employment decreased by 12 per cent. 
 
 - Against the backdrop of a reduction in consumption of the product in Ukraine of 
59 per cent, growth of imports of the produc t to Ukraine increased by 219 per cent, 
while the price of the imported product in  the mentioned period decreased by 38 per 
cent and was lower than the prices of domestic products at the domestic market of Ukraine.  In such circumstances the domestic  industry was forced to cut the price of 
the domestic product to a zero level of profita bility and to sell goods below cost in the 
III quarter of 2009.  
 
 The described above terms of import to Ukra ine of the product involved could affect the 
displacement of the domestic producer from the ma rket and reduce its share in domestic consumption 
by 18.92 per cent during III quarter of 2008 - III quarter of 2009. 
 
4. А point of contact for the investigatio n and preferred means for corresponding 
 
 The Ministry of Economy of Ukraine  01008, Kyiv, Grushevskogo str., 12/2,  
 tel.  (+38044) 272-50-00, fax  (+38044) 226-31-81,  
 e-mail:  a-dump@me.gov.ua.  
 
5. Deadlines and procedures for importers, ex porters and other interested parties to 
present evidence  
 
 Within 30 days from the effective date (17 February 2010) of the decision of the Commission on initiation of investigation, the Ministry of Econom y of Ukraine carries out registration of interested 
parties and considers the requireme nts for conducting of hearings.  
  Within 60 days from the effective date of  the decision of Commission on initiation of 
investigation the Ministry of Economy of Ukraine considers the written comments on the initiation of 
investigation.  
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