WORLD TRADE  
ORGANIZATION   
G/SG/N/8/UKR/1/Suppl.1 
G/SG/N/14/UKR/1 31 October 2011 
 
(11-5504) 
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 UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
(EXTENSION OF THE EXISTING MEASURE) AND THE REASONS FOR IT 
 
UKRAINE 
 
(Casing and pump-compressor seamless steel pipes) 
 
  The following communication, dated 19 October 2011, is being circulated at the request of the Delegation of Ukraine.
1 
 
_______________ 
 
  As a results of an investigation the Inte rdepartmental Commission on International Trade 
(hereinafter - Commission) have taken its deci sion No. SP-182/2008/143-31 of 23 July 2008 "On the 
application of special measures on imports of tubes,  pipes and hollow profiles, seamless, of iron or 
steel, regardless of country of origin and exports". 
  Measures have been applied for three years from 1 October 2008 to 30 September 2011 by the introduction of import quotas.  Annual special quota for imports of goods to Ukraine amounted to 14,504 tons in the first year period. There were  also gradual liberalization measures applied by 
increasing the annual special quota by 5% - up to 15, 230 tons for the second year period, and by 10% 
- to 15,955 tons in the third year period.  
  Measures had been applied to imports of go ods to Ukraine of the following description: 
casing and pump-compressor seamless steel pipes with the outer diameter up to 406.4 mm, classified under the UKTZED
2 code 7304 29 11 00. 
 
 Relevant notifications under Article 12.1(a) and (b) see as G/SG/N/6/UKR/1–
G/SG/N/8/UKR/1–G/SG/N/10/UKR/1 of 22 August 2008.  
                                                      
1 The text of the decision in the original language has been submitted electronically to the secretariat.   
In order to view this document, please contact  Ms Budd (hilary.budd@wto.org) or Ms Naville 
(delphine.naville@wto.org) from the Rules Division. 
2 UKTZED is the Ukrainian Foreign Economic Ac tivity Commodity Classification, was based on 
Harmonized System 2002 in that time. G/SG/N/8/UKR/1/Suppl.1 
G/SG/N/14/UKR/1 Page 2 
 
 
  1. Evidence, relevant data and the applicable period of investigation  of serious injury or 
threat thereof caused by increased imports  
 
 During the ІV quarter 2008 - III quarter 2009 (first a nnual period of application of the 
measures) compared to 2006 (the last year of inv estigation period) along with  the reduction of import 
to Ukraine of the goods in absolute terms by 25. 7%, which is due to reduced consumption of the 
goods on the domestic market of Ukraine, the shar e of imported goods in comparison with domestic 
production of pipe products increased by 34.3%.   
 During application of special measures the domestic industry has not increased the volume of 
pipe production and could not load capacities to the level of the last year of the period of special investigation.   The threat of substantial damage to domestic  producers is expected because of the global 
uptrend of production oil and gas pipe and, conse quently, the possible displacement of Ukrainian 
products on the Ukrainian and foreign markets.  In particular (the SMS Meer group company data), in 
the People's Republic of China is planning to pu t into operation the enterprise with annual pipes 
production capacity up to 3 million tons, in Saudi Ar abia - to 600 thousand tons, United States of 
Mexico - to 450 thousand tons, in Brazil - to 600 thousand tons.  
 Besides this (data from "Metal Expert" editi on) in the Republic of Kazakhstan was launched 
an expansion and modernization production facilities project for casi ng and tubing with connection of 
type "Premium", which will increase the volume of  pipe production to 170 tons per year in 2012-
2013.  At the same time the steel plant in the Re public of Belarus for 2013-2014 is planning to operate 
complex equipment for the finishing of seamless tubes (capacity - 100 thousand tons/year) and 
expand the range of production casing diameter of 114.3-168.3 mm. and tubing diameters 60.3-
114.3 mm.   These factors enabled the Commission to conclude  that there is a need for extended period of 
protective measures to prevent serious damage to the domestic industry.  2. Provide information on whether there is an  absolute increase in imports or an increase 
in imports relative to domestic production  (please see also Article 2.1 for the context)  
 
 See information above.  3. Description of the product involved  
 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel of an 
external diameter not exceeding 406.4 mm, classified under the UKTZED
3 codes 7304 29 10 00 and 
7304 29 30 00.  4. Description of any part of the imported product that will no longer be subject to the 
measure 
 
 Not applicable . 
 
                                                      
3 UKTZED is the Ukrainian Foreig n Economic Activity Commodity Classification, since 2011 based 
on Harmonized System 2007.  G/SG/N/8/UKR/1/Suppl.1 
 G/SG/N/14/UKR/1 
 Page 3 
 
 
  5. Precise description of the proposed measure 
 
 The application of the measure in respect of import to Ukraine of tubes, pipes and hollow 
profiles, seamless, of iron (other than cast iron) or steel of an external diameter not exceeding 
406.4 mm was extended in accordance with Decision No. SP – 261/2011/4423-28 of 
30 September 2011 of the Interdepartmental Co mmission of Foreign Trade from the date of 
publication (was published on 4 October 2011 in "Uryadoviy Courier" No 182).   According to the Decision of Commiss ion safeguard measures are extended from 
4 October 2011 through the imposition of import quotas of the goods.  
  Import quotas are administered through the issuance by the Ministry of Economic Development and Trade of Ukraine of special licen ses.  Import of the goods should be accompanied 
by submission of the special license and the certificate of origin.   
 
 Annual volume of special quota for imports of goods to Ukraine in the fourth year period (4 October 2011 - 30 September 2012) is 16,753 tons.   Annual amount of special quota is allocated as follows:  
Country of export Fourth year period quota, tons 
(10.04.2011 - 30.09.2012) 
Russian Federation 11 910 
Austria 2 455 
Poland 1 103 
Romania 209 
Slovakia 171 
India 73 
China, P.R. 49 
Other countries 783 
 
6. Date of introduction of the measure 
 
4 October 2011. 
7. Expected duration of the measure 
 
The term application of special measures extended for three years to 30 September 2014.  
8. Duration of the measure is no more than three years 
 
9. Expected timetable for progressive liberalization of the measure 
 
 The gradual liberalization of measures is provided by increasing the annual special quota by 5% - up to 16,753 tons in the fourth year period, 5% - to 17,591 tons for the fifth year period and 5% 
to 18,471 tons at the sixth annual period.  Annual amount of special quotas are allocated as follows: 
 G/SG/N/8/UKR/1/Suppl.1 
G/SG/N/14/UKR/1 Page 4 
 
 
  Country of export Fourth year period 
quota, tons 
(10.04.2011 - 
30.09.2012) Fifth year period 
quota, tons 
(01.10.2012- 
30.09.2013) Sixth year period 
quota, tons 
(01.10.2013- 
30.09.2014), tons 
Russian Federation 11 910 12 506 13 131 
Austria 2 455 2 577 2 706 
Poland 1 103 1 158 1 216 
Romania 209 220 231 
Slovakia 171 180 188 
India 73 76 80 
China, P.R. 49 51 53 
Other countries 783 823 866 
 
10. The notification relates to a decision to apply or extend a safeguard measure 
 
11. If the measure is being extended, also provide: 
 
 (i) evidence that the industry concerne d is adjusting and that the safeguard 
measure continues to be necessary to  prevent or remedy serious injury; 
 
Due to the use of special measures Ukrainian national producers had an opportunity to invest 
in development of its own production.  Furtherm ore, the domestic industr y have determined the 
further direction of implementing of the ener gy saving technologies and improving of existing 
technology of pipe production, in conditi ons of extension of special measures. 
 Application of safeguard measures had allowe d completing the first phase of certification 
tubing and casing pipes with UPJ connection the domestic industry according to the standard API 
5CT/ ISO 13679 standards with application level CAL-IV, but completion of the pipes certification 
requires additional time scheduled for period of measures extension. 
 Improving the quality of tubular products and its compliance with international standards will 
increase the competitiveness of domestic producers on both domestic and foreign markets with high-
tech products of foreign origin. 
 Thus, the Commission concluded that the domestic  industry is in the process of adaptation to 
conditions of competition. 
 
 Also see above paragraph 1.  
 ( ii) reference to the WTO document that notified the initial application of the 
measure 
 
 G/SG/N/6/UKR/1–G/SG/N/8/UKR/1 –G/SG/N/10/UKR/1 of 22 August 2008. 
   G/SG/N/8/UKR/1/Suppl.1 
 G/SG/N/14/UKR/1 
 Page 5 
 
 
   (iii) duration of the measure from initial a pplication till the date at which it will be 
extended 
 
 Three years from initial application from 1 October 2008 to 30 September 2011.  Three years 
from extension from 4 October 2011 to 30 September 2014. 
 
 (iv) precise description of the measure in place prior to the date of extension  
 
 The annual volume of the special quota on Pipe imports to Ukraine was 14 504 tons. 
 
 The established quota was allocated as follows: 
 
 Annual quota, tons 
Russian Federation 10311 
Austria 2125 
Poland 955 
Romania 181 
Slovakia 148 
India 63 
China, P.R. 42 
Other countries 679 
Total 14504 
 
 A phased liberalization of the applied special  measures was stipulated through increasing the 
annual volume of the special quota by 5% - to 15230 tons for the second-year period and by 10% - to 
15955 tons for the third-year period.   The annual volumes of the special quota with re gard to the liberalization were allocated as 
follows: 
 
Exporting country Quota for the first- 
year period 
(01.10.2008-
30.09.2009), tons Quota for the second-
year period 
(01.10.2009-30.09.2010), 
tons Quota for the third-
year period 
(01.10.2010- 
30.09.2011), tons 
Russian Federation 10311 10827 11342 
Austria 2125 2231 2337 
Poland 955 1003 1051 
Romania 181 190 200 
Slovakia 148 156 163 
India 63 66 69 
China, P.R. 42 44 46 
Other countries 679 713 747 
 G/SG/N/8/UKR/1/Suppl.1 
G/SG/N/14/UKR/1 Page 6 
 
 
  12. If the notification relates to a decision to  apply or extend a safeguard measure, Members 
are encouraged to provide the following information:   (i) The major exporting Members of  imports of the product involved 
  Austria, Poland, Romania, Slovakia, India, China. 
 
 (ii) If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Arti cle 9.1, the names of such exporting 
Members and reasons for non-application of the measure  
 
 No. 
 
__________