. /.  WORLD TRADE  
ORGANIZATION  G/SG/N/13/BGR/1 
9 August 2005 
 (05-3558) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.5 OF THE 
AGREEMENT ON SAFEGUARDS OF THE RESULTS 
OF A MID-TERM REVIEW REFERRED TO IN ARTICLE 7.4 
 
BULGARIA 
 
(Crown Corks
) 
 
 
 The following communication, dated 5 August 2005, is being circulated at the request of the Delegation of Bulgaria. 
 
_______________ 
 
  This notification is made pursuant to pa ragraph 5 of Article 12 of the Agreement on 
Safeguards, which sets forth that mid-term reviews, under paragraph 4 of Article 7, shall be notified to 
the Council for Trade in Goods, in conformity w ith the format established in document G/SG/W/1, 
dated 23 February 1995.  1. Specify the measure and the product subject to  the measure for which the mid-term review 
was conducted, and provide re ference to the WTO document that notified the safeguard 
measure subject to the review  
  The safeguard measure on imports of crown corks, made from white tinplate and used for 
glass bottles, was introduced on 19 November 2002 as an additional duty of Euro 1.5 per 1,000 pce.  
 The product subject to the safeguard measure is classified under tariff line 8309 10 000 of the 
Customs Tariff of Bulgaria.   The application of the safeguard measu re was notified to the WTO in document 
G/SG/N/10/BGR/1. 
 
2. Provide the dates of initiation and conclusion of the review
 
  The review was initiated on 9 September 2004 and concluded on  22 November 2004. 
 
3. Describe the results of the review, providi ng some detail on the basis for reaching those 
results  
  For the purposes of this mid-term review, years 2002, 2003 and 20 04 (I-III Quarter) have 
been analysed, considering that the safeguard me asure has been in force as of 19 November 2002. 
 
 Imports of crown corks in Bulgaria and domestic industry economic indicators during the 
application of the safeguard measure are described below: G/SG/N/13/BGR/1 
Page 2  
 
  - Although the volume of imports of crown corks for the year 2003 decreased by 78.6 per 
cent compared to 2002, in 2004 (I-III Quarter) the imports of crown corks increased by 
61 per cent compared to the total imports in 2003. 
 
 - The low value of imports contributed to  the price decline on the domestic market.  
Hence, the prices of the crown corks in 20 03 and the first two quarters of 2004 have 
decreased in comparison with 2002. 
 
 - The reduction of prices still hampers the producers to utilise sufficient resources for 
technological renovation of the production process, as well as to decrease the cost of production significantly and to achieve a su stainable financial stabilization of the 
companies. 
 
 - Nevertheless, in compliance with the Rec overy Programme annexed to the petition of the 
domestic producers, investments for renovation of the production equipment have been 
made. 
  - An increase of 23 per cent of the sales of the producers who have applied for the 
introduction of a safeguard measure is ach ieved only in the first quarter of 2004 
compared to the respective time-period of 2003.   Unfortunately this is a separate example 
of the improvement of the situation of the domestic producers. 
 
 - The capacity utilization remained below 25 per cent during the period under review. 
 
 - Employment decreased. 
 
 - A preliminary withdrawer of the measu re would hamper and possibly impede the 
investments return. 
  The analysis of the domestic industry economic indicators demonstrated that the efforts made 
by the sector concerning its restructuring process al ready had positive results, specifically as regards 
the renovation of the equipment. 
 
 The safeguard measure has had a positive effect  for the domestic industry, though not all of 
the expected results have been achieved during the period under revi ew.  Thus, the safeguard measure 
is still necessary to ensure the recovery of the sector .  Therefore, and taking into account the results of 
the mid-term review, the liberalization staging of the safeguard measure will not be changed. 
 
4. Indicate whether
: 
 
 (i) the measure has been, or will be, withdr awn as a result of the review.  If yes, then  
indicate the date of withdrawal;  and , 
 
 (ii) the pace of liberalization has been, or w ill be increased as a result of the review.  If 
yes, then indicate the revised time-table for progressive liberalization  
 
 The liberalization of the measure is in complia nce with the Regulation No. 255 of the Council 
of Ministers of 19 November 2002 on the imposition of  a safeguard measure on the imports of crown 
corks in the Republic of Bulgaria (State Gazette No. 108 of 19 November 2002).  As of 
19 November 2004 an additional duty of Euro 1.3 pe r 1,000 pce is applied for the third and fourth 
year after the imposition. 
 
 The measure is not applied to imports orig inating from developing countries listed in the 
Annex to the notification under Article 9,  footnote 2 (document G/SG/N/10/BGR/1). 
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