WORLD TRADE  
ORGANIZATION  G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 1 March 2010 
 
(10-1116) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE)  
 
PHILIPPINES 
 
(Float Glass
) 
 
  The following communication, dated 24 February 2010, is being circulated at the request of 
the Delegation of the Philippines.    
_______________ 
 
  Further to G/SG/N/6/PHL/4/Suppl.2 dated 29 September 2009, the Philippines notifies that, on 13 January 2010, the Department of Trade and I ndustry ordered for the extension of the definitive 
general safeguard measures for fours (4) years fo r clear and tinted float glass.  The definitive 
safeguard measure shall be imposed on the first year of the final extension in the amount of Philippine 
Pesos 3,404.64 per metric ton for clear float glass and Philippine Pesos 4,300.59 per metric ton for 
tinted float glass.  The Philippines also notifies th e list of developing countries exempt from the 
measure pursuant to Article 9.1 of the Agreement on Safeguards.     
 
    G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 Page 2 
 
 
  IN THE MATTER OF THE REDUCTION OF THE DEFINITIVE GENERAL SAFEGUARD 
MEASURES AGAINST THE IMPORTATION OF CLEAR FLOAT GLASS – HS Heading No. 
7005.2990 or AHTN No. 7005.2990  and TINTED FLOAT GLASS - HS Heading No. 7005.2190 
or AHTN No. 7005.2190  FROM VARIOUS COUNTRIES 
(Safeguard Investigation No. 02-2006) 
 
AGC Flat Glass Philippines, Inc. (AGPH) 
(Formerly Asahi Glass Philippines, Inc.) 
Petitioner 
 
 
ORDER 
  
 On 17 August 2009, DTI received a letter from AGPH requesting for the extension of the 
definitive general safeguard measures on clear an d tinted float glass from various countries for 
another four (4) years.  AGPH claimed that th e domestic industry needed additional time to 
implement its adjustment plan and make it globally co mpetitive.  They stated that an extension of the 
safeguard measure is necessary to prevent and reme dy the serious injury caused by the imported clear 
and tinted float glass.   
 
 On 19 August 2009, pursuant to Section 19( 2) of RA 8800, DTI referred to the Tariff 
Commission the said request of AGPH.     On 23 November 2009, DTI received a copy of the Commission's Report of Findings on the 
petition for the final extension of the definitive saf eguard measure on clear and tinted float glass from 
various countries.  The Commission concluded that:  (1) the current safeguard measure is effective 
and although the volume of imports increased from 2006 to 2008 it was still below the surge level (2) 
the domestic industry showed improvements in its production, sales, market shares, productivity and 
capacity utilization, but still incurred losses indicating serious impairment in the financial condition of 
the domestic industry (3) should the safeguard measur e be terminated, China and Indonesia, because 
of their proximity to the Philippines and their suffi cient freely disposable production capacities, and as 
major sources of imports since 2002, pose a threat  to the domestic industry as exports to the 
Philippines is likely to increase substantially (4) several anti-dumping and safeguard cases filed 
against China and Indonesia further support the li kelihood that exports from these countries will be 
diverted to the Philippines (5) despite the con tinued imposition of the safeguard measure, imports 
came in at very low prices.  In an attempt to ma intain its market share, AGPH has to sell below cost 
resulting to serious impairment of AGPH's financia l condition (6) if safeguard measure is removed, 
AGPH will be forced to price its float glass even belo w its cost to protect its market share which will 
further worsen the financial condition of AGPH.  Ther e is a threat of recurrence of serious injury if 
the safeguard measure is not extended (7) the domesti c industry made serious efforts to comply with 
its adjustment plan and there is evidence that th e industry is making positive adjustment to import 
competition.  However, factors beyond their cont rol negated the gains resulting from its adjustment 
plan.  AGPH requires more time to fully put in place its commitments in the adjustment plan to 
effectively face import competition, and (8) non-extens ion of the safeguard measure will likely led to 
increased imports of float glass which will cause serious injury to the domestic industry.    
 The Commission recommended that the impositi on of the safeguard measure be extended for 
another three (3) years.  The measure shall continue to  be liberalized by at least five per cent (5%) or 
limited to the extent of redressing or preventing the in jury and to facilitate adju stment by the domestic 
industry from the adverse effects directly attribut ed to the increased imports.  The extension will  G/SG/N/11/PHL/8 
 G/SG/N/14/PHL/6 
 Page 3 
 
 
  allow the industry to adjust fully to import compe tition and thus prepare it for the time when the 
action terminates.     The DTI reviewed the Commission's findings and recommendations and has established that 
the final extension of the definitive general safeguard  measure is in the public interest.  There was a 
marked improvement in the local industry's performance as evidence by increased production, sales, 
market share, productivity, rated capacity and capacity  utilization.  However, other factors i.e. rising 
fuel and raw material prices and very low priced im ports, have adversely affected the industry's cost 
competitiveness.  Thus, the industry has not fully reali zed the full potential of its cost savings from the 
efficiency measures implemented.  It requires mo re time to undertake the improvements committed in 
its adjustment plan.     IN VIEW THEREOF, and in accordance with Section 19 (2) of RA 8800, the following is hereby issued:   
 
1. Considering that Section 15, paragraph 2 of RA  8800 and Rule 15.2 of its IRR provide that 
the effective period of the measure, including an y extension thereof may not in the aggregate 
exceed ten (10) years, the imposition of the de finitive general safeguard measure shall be 
extended for another four (4) years.  Therefore, this is the final extension of this measure.  
Moreover, as provided under Section 15 (4) of RA  8800 and Rule 15.8 of its IRR, any further 
petition for safeguard measure for the same article s shall not be accepted within two (2) years 
after the expiration of this measure.  The de finitive safeguard measure shall be imposed on 
the first year of the final extension in the amount of P
3,404.64/MT for clear float glass and 
P4,300.59/MT for tinted float glass, respectively,  from various countries.  The measure shall 
continue to be liberalized annually for the remaining years of the extension period to the 
extent of redressing or preventing the injury and to facilitate adjustment by the domestic 
industry from the adverse effects directly  attributed to increased imports.   
 
2. Pursuant to Section 13 of RA 8800 and Rule 13.1.d of its IRR, "a general safeguard 
measure shall not be applied to a product or iginating from a developing country if its 
share to total Philippine imports of the said  product is less than three per cent (3%):  
Provided, however, that developing countri es with less than three per cent (3%) share 
collectively account for not more than nine p er cent (9%) of the total Philippine imports 
of the product concerned".   
 
Considering that imports of clear float glass from Saudi Arabia (which was previously 
exempt) have exceeded the three (3%) threshol d in 2009, henceforth, su ch imports shall be 
subject to the extended defin itive general safeguard measure. 
  However, imports from countries listed in Anne xes A and B shall continue to be excluded 
from the definitive general safeguard measure on float glass products (clear and tinted).  The 
composition of the developing countries in the de minimis  list may change depending on the most 
recent data available during the annual review whic h will be conducted by DTI within the extension 
period.  All importers of float glass (clear and tin ted), regardless of port of exportation, are required to 
obtain a Certificate of Origin (CO) from the ag ency/office in the country of manufacture to be 
authenticated by the Philippine Embassy/Consulate thereat.    
 The application of the extended definitive ge neral safeguard measure shall be monitored and 
reviewed in accordance with Sections 15 and 16 of RA 8800.     Considering that clear and tinted float glass are covered by the ASEAN-CEPT Agreement and 
as provided under Article 6 and 8 of the said Agre ement, the Philippines shall notify and accord G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 Page 4 
 
 
  adequate opportunity for consultation with th e governments of the ASEAN countries concerned 
which maybe affected by the application of provisional safeguard measures on imports sourced from said ASEAN countries.    
 The notification and consultation requirem ents of Article 12 of the WTO Safeguards 
Agreement and Section 17 of RA 8800 and its IRR shall be complied with.   
  The Order shall take effect upon the issu ance of the relevant Memorandum Order by the 
Bureau of Customs or 15 days after the publication of this Order in two (2) newspapers of general 
circulation, whichever comes earlier.   
  Let this Order be published in two (2) newspa pers of general circul ation and let individual 
notices be sent to all interested parties including the country members concerned.    
 SO ORDERED. 
   13 January 2010    PETER B. FAVILA  Secretary    G/SG/N/11/PHL/8 
 G/SG/N/14/PHL/6 
 Page 5 
 
 
  ANNEX A  
 
 
List of Developing Countries Excluded from the Imposition 
of Definitive Safeguard Measure 
on Clear Float Glass 
  
East & Southern 
Africa West Africa North Africa South Asia 
Angola 
Botswana 
Burundi Comoros Congo. Dem. Rep. Djibouti 
Eritrea 
Ethiopia Kenya Lesotho Madagascar 
Malawi 
Mauritius Mozambique Namibia Reunion Rwanda 
Seychelles 
Somalia South Africa Sudan Swaziland 
Tanzania 
Uganda Zambia Zimbabwe Benin 
Burkina Faso 
Cameroon Cape Verde Central African Rep. Chad 
Congo, Rep. 
Cote d'Ivoire Equatorial Guinea Gabon Gambia, The 
Ghana 
Guinea Guinea, Bissau Liberia Mali Mauritania 
Niger 
Nigeria Sao Tome & Principe Senegal Sierra Leone 
Togo Algeria 
Egypt, Arab Rep. 
Libya Morocco Tunisia Afghanistan 
Bhutan 
British Indian Ocean Territory East Timor Maldives 
Nepal 
Sri Lanka 
      
 
   G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 Page 6 
 
 
   
Europe & Central 
Asia Middle East Americas East Asia & Pacific 
Albania 
Armenia 
Azerbaijan 
Belarus Bosnia & Herzegovina Bulgaria Croatia 
Cyprus 
Czech Republic Estonia Georgia Greenland 
Hungary 
Kazakhstan Kyrgyz Republic Latvia Lithuania 
Macedonia, FYR 
Malta Moldova Poland Romania Russian Federation 
Slovakia 
Slovenia Tajikistan Turkey Turkmenistan 
Ukraine 
Uzbekistan Yugoslavia, Fed. Rep. Bahrain 
Iran, Islamic Rep. 
Iraq 
Israel Jordan Kuwait Lebanon Oman 
Qatar 
Syrian Arab Rep. United Arab Emirates West Bank & Gaza Yemen, Rep. Anguilla  
Antigua & Barbuda 
Argentina 
Aruba Bahamas Barbados Belize Bermuda 
Bolivia 
Brazil British Virgin Is. Cayman Is. Chile 
Colombia 
Costa Rica Cuba Dominica Dominican Rep. 
Ecuador 
El Salvador Falkland Is. (Malvinas) French Guiana Grenada 
Guadeloupe 
Guatemala Guyana Haiti Honduras 
Jamaica 
Martinique Mexico Montserrat Netherlands Antilles 
Nicaragua 
Norfolk Is. Panama Paraguay Peru 
Puerto Rico 
St. Helena St. Kitts & Nevis St. Lucia St. Pierre & Miquelon St. Vincent & the  
  Grenadines 
Suriname Trinidad & Tobago American Samoa 
Brunei Darussalam 
Cambodia 
Christmas Is. Cocos (Keeling) Is. Cook Is. Fiji French Polynesia 
Guam 
Hong Kong, China Johnston Is. Kiribati Korea, Dem. Rep. 
Lao PDR 
Macau, China Marshall Islands Micronesia, Fed. Sts. Midway Is. 
Mongolia 
Myanmar Nauru New Caledonia Niue Northern Marianas Is. 
Palau 
Pitcairn Is. Papua New Guinea Samoa Solomon Islands 
Tokelau 
Tonga Tuvalu Vanuatu Wake Is. 
Wallis & Futuna Is.  G/SG/N/11/PHL/8 
 G/SG/N/14/PHL/6 
 Page 7 
 
 
  Europe & Central 
Asia Middle East Americas East Asia & Pacific 
Turks & Caicos Is. 
Uruguay US Virgin Is. 
Venezuela 
 G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 Page 8 
 
 
  ANNEX B 
  
List of Developing Countries Excluded from the Imposition 
of Definitive Safeguard Measure 
on Tinted Float Glass 
  
East & Southern 
Africa West Africa North Africa South Asia 
Angola 
Botswana Burundi Comoros Congo. Dem. Rep. 
Djibouti 
Eritrea Ethiopia Kenya Lesotho Madagascar 
Malawi 
Mauritius Mozambique Namibia Reunion 
Rwanda 
Seychelles Somalia South Africa Sudan 
Swaziland 
Tanzania Uganda Zambia Zimbabwe Benin 
Burkina Faso Cameroon Cape Verde Central African Rep. 
Chad 
Congo, Rep. Cote d'Ivoire Equatorial Guinea Gabon Gambia, The 
Ghana 
Guinea Guinea, Bissau Liberia Mali 
Mauritania 
Niger Nigeria Sao Tome & Principe Senegal 
Sierra Leone 
Togo Algeria 
Egypt, Arab Rep. Libya Morocco Tunisia Afghanistan 
Bangladesh Bhutan British Indian Ocean Territory East Timor 
Maldives 
Nepal Pakistan Sri Lanka  G/SG/N/11/PHL/8 
 G/SG/N/14/PHL/6 
 Page 9 
 
 
   
Europe & Central 
Asia Middle East Americas East Asia & Pacific 
Albania 
Armenia 
Azerbaijan 
Belarus Bosnia & Herzegovina Bulgaria Croatia Cyprus 
Czech Republic 
Estonia Georgia Greenland Hungary 
Kazakhstan 
Kyrgyz Republic Latvia Lithuania Macedonia, FYR 
Malta 
Moldova Poland Romania Russian Federation Slovakia 
Slovenia 
Tajikistan Turkey Turkmenistan Ukraine 
Uzbekistan 
Yugoslavia, Fed. Rep. Bahrain 
Iran, Islamic Rep. 
Iraq 
Israel Jordan Kuwait Lebanon Oman 
Qatar 
Saudi Arabia Syrian Arab Rep. United Arab Emirates West Bank & Gaza 
Yemen, Rep. Anguilla  
Antigua & Barbuda 
Argentina 
Aruba Bahamas Barbados Belize Bermuda 
Bolivia 
Brazil British Virgin Is. Cayman Is. Chile 
Colombia 
Costa Rica Cuba Dominica Dominican Rep. 
Ecuador 
El Salvador Falkland Is. (Malvinas) French Guiana Grenada 
Guadeloupe 
Guatemala Guyana Haiti Honduras 
Jamaica 
Martinique Mexico Montserrat Netherlands Antilles 
Nicaragua 
Norfolk Is. Panama Paraguay Peru 
Puerto Rico 
St. Helena St. Kitts & Nevis St. Lucia St. Pierre & Miquelon 
St. Vincent & the  
Grenadines Suriname American Samoa 
Brunei Darussalam 
Cambodia 
Christmas Is. Cocos (Keeling) Is. Cook Is. Fiji French Polynesia 
Guam 
Hong Kong, China Johnston Is. Kiribati Korea, Dem. Rep. 
Lao PDR 
Macau, China Marshall Islands Micronesia, Fed. Sts. Midway Is. 
Mongolia 
Myanmar Nauru New Caledonia Niue Northern Marianas Is. 
Palau 
Pitcairn Is. Papua New Guinea Samoa Solomon Islands 
Thailand 
Tokelau Tonga Tuvalu Vanuatu 
Wake Is. 
Wallis & Futuna Is. G/SG/N/11/PHL/8 
G/SG/N/14/PHL/6 Page 10 
 
 
  Europe & Central 
Asia Middle East Americas East Asia & Pacific 
Trinidad & Tobago 
Turks & Caicos Is. Uruguay 
US Virgin Is. 
Venezuela 
 
  
__________