WORLD TRADE  
ORGANIZATION   
G/SG/N/11/TUR/7/Suppl.3 
G/SG/N/14/TUR/4/Suppl.2 
16 July 2012 
 (12-3810) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT 
ON SAFEGUARDS ON TAKING A DECISION TO EXTEND 
A SAFEGUARD MEASURE 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Motorcycles) 
 
Supplement 
 
 
 The following notification, dated 11 July 2012, is being circulated at the request of the Delegation of Turkey.   
 
_______________ 
 
  We enclose a notification pursuant to Article  12.1(c) and Article 9, footnote 2 of the 
Agreement on Safeguards, on taking a decision to ex tend a safeguard measure that is being applied 
against imports of motorcycles and  non-application of safeguard measure to developing countries. 
The initial safeguard measure was notified w ith the document numbered G/SG/N/10/TUR/7, 
G/SG/N/11/TUR/7/Suppl.1, G/SG/N/8 /TUR/7, dated 6 February 2007. 
  Consistent with Article 12.3 of the Agreem ent on Safeguards, Turkey is ready to hold 
consultations with those Members having a substan tial interest as exporters of the product concerned. 
 G/SG/N/11/TUR/7/Suppl.3 
G/SG/N/14/TUR/4/Suppl.2 
Page 2 
  
  A. N
OTIFICATION UNDER ARTICLE 12.1(C)  OF THE AGREEMENT ON SAFEGUARDS UPON TAKING 
A DECISION TO EXTEND A SAFEGUARD MEASURE  
1. Evidence that the safeguard measure continue s to be necessary to prevent or remedy 
serious injury or threat thereof caused by  increased imports and that the industry 
concerned is adjusting. 
The investigation has been conducted by Turk ish investigating authority.  The economic 
indicators of the domestic producers have been su bmitted by 15 domestic producers which represents 
98.2% of total domestic production of the domes tic industry.  The investigation period was 
determined between 2009 a nd 2011.  In addition to this, the lat est figures available related to first 
quarter of 2012 were also examined by comparing the same period of the previous year.  
(i) Consumption 
 
Consumption 2009 2010 2011 2011(3) 2012 (3) 
Quantity (pcs.) 165,354 157,536 230,955 32,608 30,119 
Change (%) - -5 47 - -8 
Index 100 95 140 100 92 
 
The consumption figures represent the whole dom estic market. Domestic consumption of the 
product subject to the measure has increased by 40 % between the years 2009 and 2011.  On the other 
hand, it has been noted that domestic consumpt ion has decreased 8% in the first quarter 2012 
compared with the same period of the previous year.  
(ii) Capacity 
 
Capacity 2009 2010 2011 2011(3) 2012 (3) 
Quantity (pcs.) 641,290 714,750 736,750 184,188 187,188 
Change (%) - 11 3 - 2 
Index 100 111 115 100 102 
 
Total production capacity of 15 domestic producers has steadily increased in the period 2009-
2011.  This upward trend has also continued in the first quarter of 2012. 
 
Capacity Utilization Rate 2009 2010 2011 2011(3) 2012 (3) 
Capacity Utilization Rate (%) 14 20 35 26 36 
 
During the investigation period, domestic pr oducers have continuously increased their 
capacity utilization. Capacity utilizatio n rate reached to 36 % in the first quarter of 2012, thanks to the 
rise in domestic production.  
(iii) Production 
 
Domestic Production 2009 2010 2011 2011(3) 2012 (3) 
Quantity (pcs.) 89,348 141,170 254,810 47,566 66,928 
Change (%) - 58 80 - 41 
Index 100 158 285 100 141  G/SG/N/11/TUR/7/Suppl.3 
 G/SG/N/14/TUR/4/Suppl.2 
 Page 3 
  
  Total production of domestic producers has steadily  increased during the investigation period. 
Annual rate of increase has been 58% and 80% r espectively in 2010 and 2011.  Production has 
increased 41% in the first quarter of 2012 compared to that in the same period of 2011. 
 
(iv) Domestic Sales 
 
Domestic Sales 2009 2010 2011 2011(3) 2012 (3) 
Quantity (pcs.) 77,153 126,770 202,617 35,598 33,937 
Change (%) - 64 60 - -5 
Index 100 164 263 100 95 
 
During the investigation period, domestic sal es of the producers steadily increased by 64% 
and 60% respectively in 2010 and 2011.  However, it has declined 5% between the first quarter of 
2011 and 2012.  
 
(v) End of Period Inventories  
End of Period Inventories 2009 2010 2011 2011(3) 2012 (3) 
Quantity (pcs.) 25,365 13,703 40,958 17,186 54,599 
Change (%) - -46 199 - 218 
Index 100 54 161 100 318 
 
During the investigation period, inventori es of the domestic producers have increased 
remarkably from 25 thousands to 41 thousands. By the first quarter of 2012, inventories have also 
increased significantly compared to its level in the first quarter of 2011.  
 (vi) Employment 
 
Employment 2009 2010 2011 2011(3) 2012 (3) 
Quantity (number of persons) 831 1,030 1,344 1,100 1,333 
Change (%) - 24 30 - 21 
Index 100 124 162 100 121 
 
Number of direct workers employed by domes tic producers has steadily increased during the 
investigation period. Although the employment figure in the first quarter of 2012 is lower than its 
level in 2011, it has increased 21 % compared to the first quarter of 2011.  
 
(vii) Productivity 
 
Productivity 2009 2010 2011 2011(3) 2012 (3) 
Quantity (piece per worker) 108 137 190 173 201 
Change (%) - 27 38 - 16 
Index 100 127 176 100 116 
 
Domestic producers have continuously incr eased their employment productivity in the 
investigation period. 
 G/SG/N/11/TUR/7/Suppl.3 
G/SG/N/14/TUR/4/Suppl.2 
Page 4 
  
  (viii) Profitability 
 
Profitability 2009 2010 2011 2011(3) 2012 (3) 
W.Average Profit  Margin (%) 6.8 7.6 8.7 10.8 10.6 
 
Weighted average profit margin of domestic  producers increased from 6.8% to 8.7% 
between 2009 and 2011.  Weighted average profit ma rgins in the first quarters of the 2011 and 2012 
are nearly the same.  
 (ix) Conclusion 
 
 Within the scope of the WTO Agreement on Safeguards and Turkish Legislation on 
Safeguards, a safeguard measure may be extended pr ovided that the investig ating authority of the 
importing Member has determined that the safeguard measure continues to be necessary to prevent or 
remedy serious injury and there is evidence that the industry is adjusting.  
First, overall figures of the domestic producer s in the period 2009-2012 mostly indicate 
positive signs for the domestic industry.  There appe ar positive trends in production, domestic sales, 
employment and profitability of domestic producer s despite growing inventories. In this period 
domestic producers have increased their market  share by capturing around 80% of the domestic 
market.  However, figures of the first quarter of 2012 indicate a decrease in domestic sales despite the 
increase in production and employment in comparison with the same quarter of 2011.  Consumption 
figure in the first quarter of 2012 shows that domest ic market may not grow in 2012 in line with the 
expectations of the domestic producers.  Followi ng the positive developments since 2009, it appears 
that the increase in production, domestic sales a nd consumption might not continue in 2012.  
 
Quantity of imported products which sharply d ecreased after the imposition of the safeguard 
measure in 2006 has started to increase again in 2011. While annual increase in imports was by 147% 
in 2011, increase rate has been 113% in the first quart er of 2012 compared to that in the same period 
of 2011.  The rate of increase in imports rela tive to domestic production have been 36% and 50% 
respectively in 2011 and in the first quarter of 2012 compared to the previous respective periods.  
These figures imply that the market share of im ported products might increase in 2012 despite the 
current level of safeguard measure. 
 
Comparison of average price levels of domes tic and imported products shows the asymmetric 
structure of the market which gives an idea about the market conditions in the near future if the 
safeguard measure was not extended.  For price co mparison, the average market prices of imported 
and domestic products in the first quarter of 2012  have been examined for two most demanded 
product groups:  (i) Scooters;  (ii) motorcycles w ith a cylinder capacity 80-125 cm³.  Given the current 
level of the safeguard measure, domestic products don’t have a price disadvantage in the market for 
these product groups.  However, it is determined th at, when the safeguard measure is removed the 
average price of the imported products will undercut  the average price of the domestic products by 
5 % for group (i) and 9 % for group (ii). 
 
In light of these facts, it is concluded that th e safeguard measure continues to be necessary to 
prevent or remedy serious injury.  
Secondly, developments in the domestic indus try in the period 2009-2011 give the clear 
evidence that the industry is adjusting.  The im provements in activities of domestic products since 
2009 have been summarized below: 
  G/SG/N/11/TUR/7/Suppl.3 
 G/SG/N/14/TUR/4/Suppl.2 
 Page 5 
  
  - Domestic producers have differentiated thei r products through the years and supplied 
a wider range of domestic products to th e market by producing various models.  
- The producers which do not have research a nd development activiti es before have set 
up their R&D departments in their premis es. Some of the producers have made 
cooperation with foreign producers in these activities in order to improve new 
products and increase product quality. 
- Some producers have increased their capacity and/or capacity utilization rate so that 
they could decrease production costs by r eaching economies of scale to some extent. 
- Some producers have made investments on information technologies for re-designing 
their producer-distributor-customer chains in  order to improve customer satisfaction 
both in sales process and in after-sales service. 
- Most of the producers have been in optimi zation activities in operational field in order 
to increase productivity. 
 
Consequently, the investigating authority h as determined that the safeguard measure 
continues to be necessary to prevent or remedy serious  injury and there is evidence that the industry is 
adjusting.  Therefore, the current safeguard measu re shall be extended for 3 years.  For accelerating 
the adjustment of domestic industry, the level of  additional-duty shall be liberalized annually.  
Similarly “exemption threshold” shall be decr eased in order to accelerate the adjustment. 
 
Moreover, in the investigation, it was determ ined that the motorcycles with a cylinder 
capacity 250-380 cm³ are no more produced by any domestic producer.  Therefore, the safeguard measure shall not be applied for those products. 
 
2. Information on absolute increase in imports 
Imports 2009 2010 2011 2011 (1-3) 2012 (1-3) 
Quantity (.) 16,203 15,901 39,268 3,733 7,937
Change (%) - 98 242 - 213
Imports/Production (%-index) 100 61 83 100 150
Market Share of Imports (%-index) 100 34 30 100 204
Market Share of Domestic 
Production (%-index) 100 172 103 100 90
 
 Imports slightly decreased in 2010, but incr eased significantly by r eaching 39,268 in 2011 
with 242% increase compared to 2011.  In the fi rst quarter of 2012, there has been 213% increase in 
imports compared to the same period of 2011.  This figure indicates that the increase in imports will 
continue in 2012.   
 Ratio of imports to domestic production signi ficantly decreased to 61 points from 100 points 
in the end of 2010.  Then, that ratio increased to 83 points in the end of 2011.  In the first 
quarter 2012, that ratio increased to 150 points fro m 100 points of the same period of 2011.  
  Market share of imports significantly dropped to 30 points in 2011 from 100 points in 2009.  
That ratio increased to 204 points in the first quarter 2012 from 100 points in the same period of the 
previous year due to the increased imports in the period concerned.  Market share of domestic 
production increased to 172 points in 2010 and again d ecreased to 103 points, close to base ratio in 
2009.  That trend has continued during the first qua rter of 2012 in comparison with same period of 
2011.    G/SG/N/11/TUR/7/Suppl.3 
G/SG/N/14/TUR/4/Suppl.2 
Page 6 
  
  3. Precise description of the product involved 
 The products subject to the safeguard measure are “motorcycles (including mopeds) and 
cycles fitted with an auxiliary motor (with reciproca ting internal combustion piston engine of a 
cylinder capacity not exceeding 250 cm³” , which currently classified in the codes 8711.10.00.00.11, 
8711.10.00.00.19, 8711.20.10.00.00, 8711.20.92.00.11, 8711.20.92.00.19 and 8711.20.98.00.00 
within the 2012 Turkish Customs Tariff Schedule. 
 
4. Description of any part of the imported pr oduct that will no longer be subject to the 
measure in the extension 
 For the extension there is a change on the scope  of the products. Motorcycles with a cylinder 
capacity exceeding 250 cm³ but not exceeding 38 0 cm³ (HS Code 8711.30.10.00.00 in the 2012 
Turkish Customs Tariff Schedule) shall be  exempted from the safeguard measure. 
 
5. Precise description of the proposed measure 
 It is proposed to impose a definitive safeguard measure in the form of additional duty, which 
will be implemented against imports having CIF unit pri ce lower than the relevant threshold level.  If 
imports are undertaken at a CIF unit price equal to or above the relevant th reshold level established, 
the imports will not be subject to the proposed measure.  The amounts of fixed duty for each period 
and threshold values are cited below.   
Customs code  
of the product Threshold 
(USD per piece) Fixed duty (USD per piece) 
1st Period 
(15/8/2012-
14/8/2013) 2nd Period
(15/8/2013-
14/8/2014) 3rd Period 
(15/8/2014-
14/8/2015) 
8711.10.00.00.11 1,080 155 150 145 
8711.10.00.00.19 1,260 155 150 145 
8711.20.10.00.00 1,800 190 185 180 
8711.20.92.00.11 1,260 155 150 145 
8711.20.92.00.19 1,800 190 185 180 
8711.20.98.00.00 2,070 240 235 230 
 
6. Proposed date of introduction of the measure 
 The measure will come into force in 15 August 2012.  
 
7. Expected duration of the measure 
 The expected duration of the proposed measure is three years. 
 
8. Proposed date for the review  
 Not applicable. 
  G/SG/N/11/TUR/7/Suppl.3 
 G/SG/N/14/TUR/4/Suppl.2 
 Page 7 
  
  9. Expected timetable for progressive liberalization of the measure 
 The measure is proposed to be liberalized annually as stated in the Title A-5. 
 10. If the notification relates only to a finding of serious injury or threat thereof, and does 
not relate to a decision to appl y or extend a safeguard measure: 
 Not applicable. 
 
11. Information relating to the extension of a safeguard measure 
(i) Evidence that the industry  concerned is adjusting and that the safeguard measure continues to 
be necessary to prevent or remedy serious injury is provided in Title A-1.  
(ii) Reference to the WTO document that notifie d the initial application of the measure. 
 
 The introduction of the definitive safeguard  measure was notified with the document 
G/SG/N/10/TUR/7, G/SG/N/11/TUR/7/Suppl.1, G/SG/N/8/TUR/7, dated 6 February 2007. 
 (iii) Duration of the measure from initial applicati on till the date at which it will be extended. 
 
 The initial safeguard measure was applied fro m 15 August 2006 to 14 August 2009, and then 
the measure extended until 14 August 2012.  Turkey  now intends to extend the safeguard measure 
until 14 August 2015. 
 (iv) Precise description of the measure in place prior to the date of extension 
 
 The measure in place prior to the date of ex tension was a specific duty which was put into 
force in imports of motorcycles by the Council of Ministers decision published in the Official Gazette 
dated 23 February 2010, no. 27502.  The level of duties identified in the table below.   
 
Customs code  
of the product Threshold 
(USD per piece) Fixed duty (USD per piece) 
1st Period 
(15/8/2009-
14/8/2010) 2nd Period
(15/8/2010-
14/8/2011) 3rd Period 
(15/8/2011- 
14/8/2012) 
8711.10.00.00.11 1,200 170 165 160 
8711.10.00.00.19 1,400 170 165 160 
8711.20.10.00.00 2,000 205 200 195 
*8711.20.91.00.00 1,400 170 165 160 
*8711.20.93.00.00 2,000 205 200 195 
8711.20.98.00.00 2,300 255 250 245 
8711.30.10.00.00 2,600 255 250 245 
       * HS Codes revised within  the 2012 Turkish Customs Tariff Schedule. 
 
12. Information relating to exporting members 
(i) The major exporting Members of imports of the product involved. G/SG/N/11/TUR/7/Suppl.3 
G/SG/N/14/TUR/4/Suppl.2 
Page 8 
  
   The main exporter to Turkey for the product c oncerned is the Peoples’ Republic of China. 
China has 77% import share in the first quarter of 2012.  
(ii) There are no exporting Members to which th e measure does not apply for any reason other 
than the application of Article 9.1 
 13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision (s) made by the competent authority.   
 The official documents regarding the investiga tion and the final decision are available at the 
link below. 
  http://www.tpsa.gov.tr/index.cfm?sayfa=A24099FE-D8D3-8566-45207D9243E05F76  
 
B. NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON SAFEGUARDS  
1. The measure 
 It is proposed to impose safeguard measure as described in Title A-5. 
 
2. The product subject to the measure 
 The measure is applied to the product described in Title A-3. 
 
3. Developing countries to which the measure is not applied under article 9.1 of the 
Agreement on Safeguards. 
 The developing countries which are excluded from the measure as they export less than 3 per 
cent of imports to Turkey are listed below.  
 
 Afghanistan;  Albania;  Algeria;  Anti gua and Barbuda;  Angol a;  Argentina;  
American Samoa;  Anguilla;  Antarctica;  Aruba;  Azerbaijan;  Barbados;  Bangladesh;  Burkina Faso;  
Bahrain, Kingdom of;  Burundi;  Benin;  Brunei Daru ssalam;  Bolivia, Plurinational State of;  Brazil;  
Bahamas;  Bhutan;  Botswana;  Belize;  Berm uda;  Bouvet Island;  Br itish Virgin Islands;  
British Indian Ocean Territory;  Democratic Republic  of Congo;  Central African Republic;  Congo;  
Côte d'Ivoire;  Cameroon;  Chad;  Colombia;  Cost a Rica;  Cuba;  Cape Verde;  Cayman Islands;  
Chile;  Christmas Islands;  Cocos Islands;  Cook Isla nds;  Djibouti;  Dominica;  Dominican Republic;  
Ecuador;  Egypt;  Eritrea;  Ethiopia;  Fiji;  Fede rated States of Micronesia;  Falkland Islands;  
French Polynesia;  French Southern Territories;  Gabon;  Grenada;  Ghana;  Gambia;  Georgia;  
Greenland;  Guinea;  Equatorial Guinea;  Guatemal a;  Guinea-Bissau;  Guyana;  Gibraltar;  Guam;  
Honduras;  Haiti;  Heard Island and McDonald Islands;  Indonesia;  Iraq;  Iran (Islamic Republic of);  
Jamaica;  Jordan;  Kazakhstan;  Kenya;  Cambodia;  Kiribati;  Comoros;  St Kitts and Nevis; Kuwait;  
Kyrgyzstan;  Laos;  Lebanon;  St Lucia;  Sri Lanka;  Liberia;  Lesotho;  Libya;  Morocco;  
Madagascar;  Marshall Islands;  Mali;  Moldova;  Mongolia;  Maurita nia;  Mauritius;  Malaysia;  
Maldives;  Malawi;  Mozambique;  Macao;  Mayotte;  Mexico;  Montserrat;  Namibia;  Niger;  Nigeria;  Nicaragua;  Nepal;  Nauru;  Nether lands Antilles;  New Caledonia;  Niue Island;  
Norfolk Island;  Northern Mariana Islands;  Oman;  Panama;  Peru;  Papua New Guinea;  Philippines;  
Pakistan;  Palau;  Paraguay;  Pitcairn;  Qata r;  Russian Federation;  Rwanda;  Samoa;  
Saudi Arabia, Kingdom of;  Solomon Islands;  Seychell es;  Sudan;  Sierra Le one;  Senegal;  Somalia;  
Suriname;  Sao Tomé and Principe;  El Salvador ;  Swaziland;  South Africa;  South Georgia and 
South Sandwich Islands;  St Helena and dependencies;  St Pierre and Miquelon;  Tajikistan;  Togo;  
Tunisia;  Tonga;  East Timor;  Trinidad and Toba go;  Turkmenistan;  Tuvalu;  Tanzania;  Tokelau;   G/SG/N/11/TUR/7/Suppl.3 
 G/SG/N/14/TUR/4/Suppl.2 
 Page 9 
  
  Turks and Caicos Islands;  Ukraine;  United Arab  Emirates;  United States Minor outlying islands;  
Uganda;  Uruguay;  Uzbekistan;  St Vincent;  Venezu ela, Bolivarian Republic of;  Vietnam;  Vanuatu;  
Virgin Islands of US;  Wallis and Futuna Islands;  Yemen;  Zambia and Zimbabwe. 
 
 
 
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