WORLD TRADE  
ORGANIZATION   
G/SG/N/8/ISR/1 
G/SG/N/11/ISR/2 9 January 2012 
 
(12-0062) 
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 PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
ISRAEL 
 
(Glass Wool and Rock Wool) 
   The following communication, dated 4 January 2012, is being circulated at the request of the Delegation of Israel.    
_______________  
 
 
1. The product subject to the safeguard measure 
 
 Glass Wool and Rock Wool 
 
 The product concerned is currently classified within the Harmonized Commodity 
Description and Coding System  (HS) nomenclature codes 68.06 and 70.19.   
 
2. The basis for making a determination, as  provided for in Article 6, that increased 
imports have caused or are threa tening to cause serious injury 
 
 The Commissioner of Trade Levies carries out an inquiry, following an application submitted by domestic industries in order to determine whethe r increased imports have caused or are threatening 
to cause serious injury to the domestic industry, w ithin the meaning of the Agreement on Safeguards, 
in connection with the product defined in point 1 of this notification.   
 
 The final findings of the inquiry are that the application contains sufficient evidence of serious injury to the domestic industry caused by increased imports, thereby meeting the conditions 
laid down by the rules in force to implement possi ble safeguard measures.  The findings have to be 
approved by the Minister of Industry Trade a nd Labor, the Minister of Finance and The Knesset 
Committee of Finance. 
  The above-mentioned conclusion is based  on the following considerations:   
 
a) Increased Imports :  The data available with the Commissioner of Trade Levies 
indicate that there has been  an increase of imports, in absolute terms, from 2009 
to 2010. G/SG/N/8/ISR/1 
G/SG/N/11/ISR/2 Page 2 
 
 
 HS Code 2008 2009 2010 
Amount, $   
70.19.3919 8,265,111 6,664,834 8,723,384 
Change, % - -19% 31% 
68.06.1000 9,124,771 6,451,217 7,962,581 
Change, % - -29% 23% 
Total 17,389,882 13,116,051 16,685,965 
Change, % - -25% 27% 
Quantity, kg  
70.19.3919 3,598,688 2,997,733 4,336,860 
Change, % - -17% 45% 
68.06.1000 4,008,047 4,111,810 5,892,863 
Change, % - 3% 43% 
Total 7,606,735 7,109,543 10,229,723 
Change, % - -7% 44% 
 
 There has been an increase of approximately  44% in the total quantity of goods imported 
from 2009 to 2010. 
 
 There has been an increase of approximately 27% in the total value of goods imported from 
2009 to 2010.  
b) Unforeseen Developments:  In this case there was an increase in imports of tens of 
percent. Growth in imports in 2010 was une xpected after changing ownership of the 
local manufacturer and is not expected ev en when taking into consideration the 
economic crisis.  The increase in import was found to be in contradiction to the trend in the local market:  new owner of the lo cal producer that invests in the production 
process managed to increase market shar e in 2009.  Despite improvements in the 
manufacturing process that should continue the trend as the previous year in 2010 
reversed the trend. 
 
c) Serious Injury and Threat of Serious Injury:   Examination revealed that the 
domestic industry suffered serious injury in the insulation market mainly by the following parameters: price undercutting, price suppression, significant losses, and 
partial utilization of production capacity, return on investments.  If the levy is not 
imposed the local plant will close. 
 
d) Causal Link between Increased Import and Serious Injury or Threat of Serious 
Injury:  Imports are increasing and taking the share of domestic market.  At the same 
time the domestic industries have cut prices, to below-cost prices and have cut 
production.  The final findings show that the serious injury and threat of further serious injury is attributable to the increased imports.  The global economic crisis has not affected the local market and therefor e cannot explain the decline in imports in 
2009 and the increase in imports in 2010. 
 
e) Adjustment Plan:   The domestic producers have proposed measures for facilitating 
adjustment of the domestic industry to th e competitive conditions with the imported 
goods.  The plant needs time to organize and implement all its investments.  G/SG/N/8/ISR/1 
 G/SG/N/11/ISR/2 
 Page 3 
 
 
 f) Critical Circumstances:    
If the levy is not imposed the local plant will close. 
 
3. Specify the safeguard measure 
 
 It is proposed to impose definitive safeguard  measure for two years as shown in the table 
below:  
Levy, $ per kg Product HS Code 
0.92 Glass Wool  70.19 
0.99 Rock Wool  68.06 
 
 
Developing countries to which the measure is no t applied under Article 9.1 of the Agreement on 
Safeguards, and the import shares of th ese countries individually and collectively 
 
Imports of the products concerned originating in  any of the developing countries specified in 
Annex 1 shall not be subject to the safeguard measures. 
 
4. Specify the expected duration of the safeguard measure 
 
 Two years.  
 
5. Proposed date of introduction of the measure 
 Not applicable. 
 
6. Expected duration of the measure 
 The expected duration of the proposed measure is two years.   
 
7. Proposed date for the review 
One year.   
 
8. Expected timetable for progressive liberalization of the measure 
 After one year it is proposed to reduce duty rate by 25%. 
 
9. Offer of consultations under Article 12.4 
 The Government of Israel offers cons ultations on the safeguard measures.   G/SG/N/8/ISR/1 
G/SG/N/11/ISR/2 Page 4 
 
 
 10. Other information 
 The final findings of the Commissioner of Trade Levies and other information regarding the 
investigation are available on the internet at:  
http://www.moital.gov.il/dumping  
and also by direct contact to: 
 Commissioner of Trade Levies Ministry of Industry, Trade and Labor 
Government of Israel 
5 Bank Israel St., P.o.box 3166 Jerusalem 91036 State of Israel 
Tel:  972-2-6662621/2 
Fax:  972-2-6662939 E-Mail:  reuben.pessah@moital.gov.il  
 
   G/SG/N/8/ISR/1 
 G/SG/N/11/ISR/2 
 Page 5 
 
 
 ANNEX 1 
  
List of developing countries to which the pr ovisional measures apply or do not apply: 
 
 
Col.1 Col.2 Col.3 
1 Afghanistan Not Apply 
2 Algeria Not Apply 
3 Angola Not Apply 
4 Antigua and Barbuda Not Apply 
5 Argentina Not Apply 
6 Bahamas Not Apply 
7 Bahrain Not Apply 
8 Bangladesh Not Apply 
9 Barbados Not Apply 
10 Belize Not Apply 
11 Benin Not Apply 
12 Bhutan Not Apply 
13 Bolivia Not Apply 
14 Bosnia and Herzegovina Not Apply 
15 Botswana Not Apply 
16 Brazil Not Apply 
17 Brunei Darussalam Not Apply 
18 Burkina Faso Not Apply 
19 Burundi Not Apply 
20 Cambodia Not Apply 
21 Cameroon Not Apply 
22 Cape Verde Not Apply 
23 Central African Republic Not Apply 
24 Chad Not Apply 
25 Chile Not Apply 
26 China Not Apply 
27 Colombia Not Apply 
28 Comoros Not Apply 
29 Congo Not Apply 
30 Costa Rica Not Apply 
31 Coste d' lvoire Not Apply 
32 Cuba Not Apply 
33 Cyprus Not Apply 
34 Democratic People's Republic of Korea Not Apply 
35 Democratic Republic of the Congo Not Apply 
36 Djibouti Not Apply 
37 Dominica Not Apply 
38 Dominican Republic Not Apply 
39 Ecuador Not Apply 
40 Egypt Not Apply 
41 El Salvador Not Apply 
42 Equatorial Guinea Not Apply G/SG/N/8/ISR/1 
G/SG/N/11/ISR/2 Page 6 
 
 
 Col.1 Col.2 Col.3 
43 Eritrea Not Apply 
44 Ethiopia Not Apply 
45 Fiji Not Apply 
46 Gabon Not Apply 
47 Gambia Not Apply 
48 Ghana Not Apply 
49 Grenada Not Apply 
50 Guatemala Not Apply 
51 Guinea Not Apply 
52 Guinea-Bissau Not Apply 
53 Guyana Not Apply 
54 Haiti Not Apply 
55 Honduras Not Apply 
56 Indonesia Not Apply 
57 India Not Apply 
58 Iran (Islamic Republic of) Not Apply 
59 Iraq Not Apply 
60 Jamaica Not Apply 
61 Jordan Not Apply 
62 Kenya Not Apply 
63 Kiribati Not Apply 
64 Kuwait Not Apply 
65 Lao People's Democratic Republic Not Apply 
66 Lebanon Not Apply 
67 Lesotho Not Apply 
68 Liberia Not Apply 
69 Libyan Arab Jamahiriya Not Apply 
70 Madagascar Not Apply 
71 Malawi Not Apply 
72 Malaysia Not Apply 
73 Maldives Not Apply 
74 Mali Not Apply 
75 Malta Not Apply 
76 Marshall Islands Not Apply 
77 Mauritania Not Apply 
78 Mauritius Not Apply 
79 Micronesia Not Apply 
80 Mongolia Not Apply 
81 Morocco Not Apply 
82 Mozambique Not Apply 
83 Myanmar Not Apply 
84 Namibia Not Apply 
85 Nepal Not Apply 
86 Nicaragua Not Apply 
87 Niger Not Apply 
88 Nigeria Not Apply 
89 Oman Not Apply 
90 Pakistan Not Apply  G/SG/N/8/ISR/1 
 G/SG/N/11/ISR/2 
 Page 7 
 
 
 Col.1 Col.2 Col.3 
91 Palestine Not Apply 
92 Panama Not Apply 
93 Papua New Guinea Not Apply 
94 Paraguay Not Apply 
95 Peru Not Apply 
96 Philippines Not Apply 
97 Qatar Not Apply 
98 Romania Not Apply 
99 Rwanda Not Apply 
100 St. Kitts and Nevis Not Apply 
101 St. Lucia Not Apply 
102 St. Vincent and the Grenadines Not Apply 
103 Samoa Not Apply 
104 Sao Tomo and Principe Not Apply 
105 Saudi Arabia Not Apply 
106 Senegal Not Apply 
107 Seychelles Not Apply 
108 Sierra Leone Not Apply 
109 Singapore Not Apply 
110 Solomon Islands Not Apply 
111 Somalia Not Apply 
112 South Africa Not Apply 
113 Sri Lanka Not Apply 
114 Sudan Not Apply 
115 Suriname Not Apply 
116 Swaziland Not Apply 
117 Syrian Arab Republic Not Apply 
118 Thailand Not Apply 
119 Togo Not Apply 
120 Tonga Not Apply 
121 Trinidad and Tobago Not Apply 
122 Tunisia Not Apply 
123 Turkmenistan Not Apply 
124 Tuvalu Not Apply 
125 Uganda Not Apply 
126 Ukraine Not Apply 
127 United Arab Emirates Not Apply 
128 United Republic of Tanzania Not Apply 
129 Uruguay Not Apply 
130 Vanuatu Not Apply 
131 Venezuela Not Apply 
132 Vietnam Not Apply 
133 Yemen Not Apply 
134 Yugoslavia Not Apply 
135 Zambia Not Apply 
136 Zimbabwe Not Apply 
137 Mexico Not Apply 
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