WORLD TRADE  
ORGANIZATION  G/SG/N/10/JOR/7/Suppl.2 
G/SG/N/11/JOR/3/Suppl.2 20 September 2010 
 
(10-4716) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
JORDAN 
 
(Ceramic Tiles)
 
 
Supplement  
   The following communication, dated 1 September 2010, is being circulated at the request of the Delegation of Jordan.    
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  Referring to the following notifications unde r article 12.1(b) and article 12.1(c):   
 
(i) G/SG/N/8/JOR/7-G/SG/N/10/JOR/7-G/SG/N /11/JOR/3, dated 22 July 2009. 
(ii) G/SG/N/8/JOR/7/Supp.1-G/SG/N/11/JOR/ 3/Suppl.1, dated 18 March 2010.   
  And in accordance with Article 12.1(c) of the Agreement on Safeguards, Jordan hereby 
submits its notification on taking a final decisi on to apply a safeguard measure on Ceramic Tiles 
provided for under Jordanian tariff headings of 6907.909 and 6908.909.   
 
 According to the national legislations and pro cedures in Jordan, the council of ministries has 
taken the final decision to impose the measure.  The decision took into consideration the consultations 
carried out with all members that have substan tial interest in exporting the concerned product to 
Jordan, in addition to the interest of importers and the domestic industry itself to an extent that allows 
it to survive. 
  The final decision of the council of ministers is as follows:  
i. Imposing a definitive safeguard measure on the imports of ceramic tiles for two years by 
applying a specific surcharge of 750 Jordanian fills per square meter for the first year 
and 500 Jordanian fills per s quare meter for the second year in addition to the applied 
tariff duty.  
ii. The definitive safeguard measure has to be reviewed after six months of its 
implementation in light of the commitment of  the domestic industry to put an integrated 
plan to address their financial and technical status.   
 G/SG/N/10/JOR/7/Suppl.2 
G/SG/N/11/JOR/3/Suppl.2 Page 2 
 
 
  1., 2. Provide evidence of serious injury or threat thereof caused by increased imports and, 
provide information on whether there is an absolute increase in imports or an increase in imports relative to domestic production 
 
 The National Production Protection Directorate (NPPD) has determined that there was 
sufficient evidence that the increase of imports of the subject product had caused injury to the 
domestic industry producing like products during the period of investigation (2003-2008).  
  The following are the conclusions reached by NPPD: 
 
(a) Increased Imports  
Year 2003 2004 2005 2006 2007 2008 
Volume  
(in kilograms) 79,283,149 107,221,801 147,835,001 220,095,146 215,198,319 257,376,934 
Absolute 
increase 
(base year) - 35% 86% 178% 171% 225% 
Absolute 
increase 
(year to year) - 35% 38% 49% (2%) 20% 
 
• The above table shows that imports had actually  increased, in absolute terms when compared 
to the year 2003 during the Period of Investigation (POI), starting from the year 2004 when imports increased by 35 per cent, and continue d to increase massively in the following years 
as imports increased by 86 per cent in 2005, and by 178 per cent, 171 per cent in the 
years 2006 and 2007, until it reached 225 per cent in the year 2008.   
 
• Also the above table shows that imports had actually increased in absolute terms when 
comparing year to year.  Imports increased by 35 per cent in the year 2004, and by 38 per cent in the year 2005, and by 49 per cent in the year  2006.  Imports recorded very slight decrease 
in the year 2007 by 2 per cent, and continue to increase by 20 per cent in the year 2008. 
 
Year 2003 2004 2005 2006 2007 2008 
Relative Increase 
(imports to domestic 
production) 149% 207% 224% 412% 554% 652% 
 
• Imports increased significantly also in relative terms.  The above table indicates that the 
percentage of imports of the domestic production recorded very high rates during the POI.  
The rate increased from 149 per cent in 2003 to 207 per cent in the year 2004, and increased 
to 224 per cent, 412 per cent, 554 per cent in the years 2005, 2006 and 2007 until it reached 
652 per cent in the year 2008. 
  NPPD demonstrates that the increase in imports  was sudden, sharp and recent in both absolute 
term and relative to domestic production.   
 
(b) Serious Injury  
Year 2003 2004 2005 2006 2007 2008 
Utilization rate of Capacity (%) 66 56 70 62 54 68 
Change in domestic production (%) - (5) 25 (2) (29) (29) 
Change in Gross Profit (%) - (35) (39) (121) (76) (77)  G/SG/N/10/JOR/7/Suppl.2 
 G/SG/N/11/JOR/3/Suppl.2  Page 3 
 
 
  Year 2003 2004 2005 2006 2007 2008 
Change in domestic sales (%) - 11 19 11 26 (20) 
Market Share (%) 33 29 24 17 19 11 
Change in Productivity (%) - (18) 10 (10) (27) (21) 
Change in Employment (%) - 16 13 9 (3) (11) 
Change in stock (%) - (14) 13 14 (53) (36) 
 
• Market share of the domestic industry declin ed significantly and seriously during the POI, 
falling from 33 per cent in 2003 to 11 per cent in 2008.  The domestic industry lost significant market share because of increasing imports.  Impor ts were continuously extending its share of 
the market and affecting negatively domestic producers' sales by diminishing their market share.  Market share of imports increased from 67 per cent in the year 2003 to 89 per cent in 
the year 2008.   
 
• Domestic Production declined during the POI starting from the year 2004 by 5 per cent, and 
increased by 25 per cent in 2005, but continued to decline in the years 2006, 2007 and 2008 
compared to year 2003. 
 
• Domestic industry recorded a sharp declin e in gross profit throughout the POI when 
compared to the year 2003, as gross profit decreased in the years 2004,2005, 2006,2007 and 
2008 by 35 per cent, 39 per cent, 121 per cent, 76 per cent and 77 per cent respectively. 
 
• Domestic sales increased by 11 per cent, 19 per cent, 11 per cent and 26 per cent in the 
years 2004, 2005, 2006 and 2007 compared to year 2003 although the domestic market grew by 27 per cent, 63 per cent, 123 per cent and 124 per cent respectively.  In the year 2008 
domestic sales declined by 20 per cent although  domestic market expanded by 144 per cent 
compared to year 2003.   
 
• Domestic industry's actual capacity utilization fluc tuated during the POI.  Capacity utilization 
of domestic producers, which was about 66 per cen t in 2003, declined to 56 per cent in the 
year 2004, then increased to 70 per cent in th e year 2005, and decreased to 62 per cent, 54 per 
cent in the years 2006 and 2007.  Capacity utilizati on maintained in the year 2008 at the level 
recorded in the year 2003. 
 
• Productivity, in terms of kilograms produced per employee, declined significantly during the 
POI when compared to the year 2003.  Afte r a decline of 18 per cent in the year 2004, 
productivity increased by 10 per cent in the year  2005, but it continued to decrease rapidly by 
10 per cent, 27 per cent and 21 per cent in the follo wing years respectively.  It is observed that 
the domestic industry has lost production and obviously lost productivity. 
 
• Employment increased slightly during years 2004, 2005 and 2006 but started to decline 
gradually in years 2007 and 2008 by 3 per cent and 11 per cent respectively. 
 
• The closing stocks of domestic producers, whic h decreased in the year 2004 by 14 per cent, 
increased by 13 per cent and 14 per cent in the years 2005 and 2006.  However, the closing 
stock at the end of December 2007 and 2008 decreased due to a decrease in domestic 
production.   
  Taking into account all the above factors, N PPD concludes that the overall assessment of the 
situation in the domestic industry shows that dom estic industry has suffered from a serious injury 
caused by the increase of imports.   G/SG/N/10/JOR/7/Suppl.2 
G/SG/N/11/JOR/3/Suppl.2 Page 4 
 
 
  (c) Causation 
 
NPPD has thoroughly investigated the causality  factor between the increase in imports and 
the injury on the domestic industry, and has determin ed that there is a clear evidence of a casual link 
between the recent growth of imports of the pr oduct under investigation and the injury on the 
domestic producers.  NPPD determined that the in crease coincided with the injury domestic industry, 
and that no other injury factors had essentially attr ibuted to the injury, ot her than the increase in 
imports.  3. If the final measure replaces a provisional me asure, or if a final measure is extended, a 
Member is encouraged to provide a written description of any part of the imported 
product that will no longer be subject to  the measure and the Harmonized System 
numbers under which it enters at least at a 6-digit level, and at a sub-national level 
(e.g., 8-digit, 9-digit or 10-digit level) if applicable 
 
Not applicable. 
 
4. Provide a precise description of the product involved 
 
 Product under investigation is Ceramic Tiles provided for in the Jordanian tariff headings of 
6907,909 and 6908,909. 
  Porcelain stoneware – which cannot be consid ered "like product or directly competitive 
product", will be excluded from the a pplication of the safeguard measure. 
 5. Provide a precise description of the proposed measure 
 
i. Imposing a definitive safeguard measur e on the imports of ceramic tiles for 
two years by applying a specific surcharge of 750 Jordanian fills per square meter 
for the first year and 500 Jordanian fills per square meter for the second year in addition to the applied tariff duty.  
ii. The definitive safeguard measure has to be reviewed after six months of its 
implementation in light of the commitment of the domestic industry to put an integrated plan to address their financial and technical status.   
 
6. Provide proposed date of introduction of the measure 
 
 The date of introduction of the measure is 1 September 2010.   
 
7. Provide the expected duration of the measure 
 
 Two years. 
 
8. For a measure with the duration of more th an three years, provide the proposed date 
for this review (under Article 7.4) to hold not later than mid-term of the measure, if such a date for review has already been scheduled 
  Not applicable.  G/SG/N/10/JOR/7/Suppl.2 
 G/SG/N/11/JOR/3/Suppl.2  Page 5 
 
 
  9. If the expected duration is over one year, provide the expected timetable for progressive 
liberalization of the measure 
 
 The proposed measure is to be progressively liberalized as follows: 
 
    
 
 
10. 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 .   
   Egypt, Spain, China, Italy, United Arab Emirates.    
(ii) If there are any exporting Members to which the measure does not apply for 
any reason other than the application of Article 9.1, the names of such 
exporting Members and reasons for non-application of the measure. 
 
  Not applicable.     HS CODE First Year 
From 1/9/2010 
To 31/8/2011 Second Year 
From 1/9/2011 
To 31/8/2012 
6907.909 0.750 JD/m2 0.500 JD/m2 
6908.909 0.750 JD/m2 0.500 JD/m2 G/SG/N/10/JOR/7/Suppl.2 
G/SG/N/11/JOR/3/Suppl.2 Page 6 
 
 
  NOTIFICATION OF NON-APPLICATION OF SAFEGUARD MEASURE TO 
DEVELOPING COUNTRIES UNDER ARTICLE 9,1 OF THE  
AGREEMENT ON SAFEGUARDS  
 
1. Specify the measure 
 
 The Safeguard measure is described in the Jord an's notification under Article 12.1(C) of the 
Safeguard Agreement.  2. Specify the product subject to the measure  
 Product subject to the measure is described in  the Jordan's notification under Article 12.1(C) 
of the Safeguard Agreement.  3. Specify the developing countries to which th e measure is not applied under Article 9.1 of 
the agreement on Safeguard 
 
 The developing countries concerned are the following:    
Afghanistan Albania Antigua and Barbuda 
Angola Argentina Algeria 
American Samoa Anguilla Armenia 
Aruba Azerbaijan Barbados 
Bangladesh Burkina Faso Bahrain Kingdom of 
Burundi Benin Belarus 
Brunei Darussalam Bolivia Brazil 
Bahamas Bhutan Botswana 
Belize Bermuda Buvet Island 
British Virgin Islands British Indian Ocean Territory Bosnia and Herzegovina 
Central African Republic Congo Côte d'Ivoire 
Cameroon Cambodia Chad 
Colombia Costa Rica Cuba 
Cape Verde Cayman Islands Chile 
Chinese Taipei Christmas Islands Cocos Islands 
Cook Islands Comoros Croatia 
Djibouti Democratic Republic of Congo Dominica 
Dominican Republic East Timor Ecuador 
El Salvador Eritrea Equatorial Guinea  
Ethiopia Fiji Federated States of Micronesia 
Falkland Islands French Polynesi a French Southern Territories 
Former Yugoslav Republic of 
Macedonia (FYROM)  Gabon  Grenada 
Ghana The Gambia  Georgia  
Greenland Guinea Guatemala 
Guinea-Bissau Guyana Gibraltar 
Guam Honduras Haiti 
Heard Island and McDonald Is lands Hong Kong, china India 
Indonesia  Iraq Iran 
Israel Jamaica Kazakhstan 
Kenya Kiribati Korea, Democratic Republic 
Kuwait Kyrgyz Republic Laos PDR 
Latvia Lebanon Lithuania  
Liberia Lesotho Libyan Arab Jamahiriya 
Madagascar Marshall Islands Mali 
Malaysia Moldova Mongolia 
Mauritania Mauritius Maldives 
Malawi Midway Is. Micronesia, Fed Sts  G/SG/N/10/JOR/7/Suppl.2 
 G/SG/N/11/JOR/3/Suppl.2  Page 7 
 
 
  Martinique Mozambique Macao 
Mayotte Myanmar Mexico 
Montserrat Morocco Namibia 
Niger Nigeria Nicaragua 
Nepal Nauru  Netherlands Antilles 
New Caledonia Niue Island Norfolk Island 
Northern Mariana Islands Oman Qatar 
Palestinian National Authority Panama Peru 
Papua New Guinea  Ph ilippines Pakistan 
Palau Paraguay Pitcairn 
Reunion Russian Federation Rwanda 
Samoa Saudi Arabia Saint Lucia 
Serbia & Montenegro St Kitts and Nevis St Vincent 
Solomon Islands Seychelles Sudan 
Sierra Leone Singapore Sri Lanka 
Senegal Somalia South Africa 
Suriname Sao Tomé and Principe Swaziland 
South Georgia and South Sandwich 
Islands Slovenia  Slovakia 
St Helena and dependencies St Pierre and Miquelon Tajikistan 
Thailand Togo Tunisia 
Turkey Tonga Trinidad and Tobago 
Turkmenistan Tuvalu Tanzania 
Tokelau Turks and Caicos Islands Ukraine 
United States Minor outlying 
islands Uganda Uruguay  
Uzbekistan Vanuatu Vietnam 
Venezuela  Virgin Islands of USA Wallis and Futuna Islands 
Wake Is Yemen Y ugoslavia, Fed.Rep 
Zambia  Zimbabwe  
 
  
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