. /.  WORLD TRADE  
ORGANIZATION   
G/SG/N/6/UKR/9 
15 July 2011 
 (11-3555) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON  
SAFEGUARDS ON INITIATION OF AN INVESTIGATION AND  
THE REASONS FOR IT 
 
UKRAINE 
 
(Motor cars) 
   The following communication, dated 13 July 2011, is being circulated at the request of the 
Delegation of Ukraine. 
 
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Pursuant to Article 12.1(a) of the Agreement on Safeguards, Ukraine hereby gives notification 
of the initiation of a safeguards investigatory process, as follows:   
 
1. Investigation initiation date 
On 2 July 2011 entered into force the Decision No. SP–259/2011/4402-27 of the 
Interdepartmental Commission of Foreign Trade "O n initiation and conducting of the investigation 
process as to import into Ukraine of motor cars irrespective of the country of origin". 
 
2. Product subject to investigation 
Motor cars and other motor vehicles principally designed for the transport of persons (other 
than those of heading 8702), including station wag ons and racing cars with spark-ignition internal 
combustion engine and crank gear of a cylinder capacity exceeding 1000 cm
3 but not exceeding 
1500 cm3, new classified under UKTZED1 code 8703 22 10 00; 
 
Motor cars and other motor vehicles principally designed for the transport of persons (other 
than those of heading 8702), including station wag ons and racing cars with spark-ignition internal 
combustion engine and crank gear of a cylinder capacity exceeding 1500 cm3 but not exceeding 
2200 cm3, new classified under UKTZED code  8703 19 10 00 (further – Goods). 
 
3. Reasons for the initiation of investigation: 
(i) The investigation has been initiated on the b asis of the application of the Association 
of the Ukrainian Carmakers "UkrAvtoprom"( applied on behalf of Ltd. "PA KrACZ", 
CJSC "Zaporizhia Automobile Building Pl ant" ("ZAZ"), CJSC "Eurocar") "On 
initiation and conducting of the investigati on process as to import into Ukraine of 
                                                      
1 UKTZED is the Ukrainian Fore ign Economic Activity Commodity Classification, based on 
Harmonized System 2007. G/SG/N/6/UKR/9 
Page 2  
 
  motor cars classified under UKTZED code 8703 22 10 00 and under UKTZED code 
8703 23 19 10".  
(ii) The Commission's Decision is based  on the following information: 
 
In 2010 the import of Goods as compared to 2009 increased on 70%. 
 In 2010 the share of import in domestic consumption of Goods has increased on 16% as compare to 2008 and on 12% as compare to 2009.  
In 2010 the share of import in domestic production of Goods has increased on 33% as 
compare to 2008 and on 32% as compare to 2009.  In 2010 the price of the imported Goods classified under UKTZED code 8703 22 10 00 decreased on 11% and the Goods classified under UKTZED 
code 8703 23 19 10 decreased on 18%. 
 The applying companies informed that during the period of 2008-2010:  
 Production of Goods by domestic producers decreased on 82%; 
 Volume of sales of Goods by domest ic producers on the domestic market 
decreased on 84%; 
 Production facility use decreased on 67%; 
 Productivity of domestic producers decreased on 56%; 
 Factual employment in the domestic production of Goods decreased on 54%; 
 Profit reduced on 96%. 
 
The substantial potential of the exporting count ries and the increase of the volume of export 
of the Goods into Ukraine may cause a se rious injury to the domestic industry. 
 
4. Point of contact for the investigation and preferred means for corresponding  
The Ministry of Economic Development and Trade of Ukraine 
01008, Kyiv, Grushevskogo str., 12/2,  
Tel.  (+38044) 272-50-00;  Fax (+38044) 226-31-81, E-mail:  a-dump@me.gov.ua  
 
5. Deadlines and procedures for importers, expo rters and other interested parties to 
present evidence 
Within 30 days from the effective date (2 Ju ly 2011) of the decision of the Commission on 
initiation of investigation, the Ministry of Economic  Development and Trade of Ukraine registers the 
interested parties and considers the re quirements for conducting of hearings.  
 
Within 45 days from the date when the D ecision of the Commission on initiation of 
investigation entered into force (from 2 July 2011) , the Ministry of Economic Development and Trade 
of Ukraine will consider the written comme nts on the initiation of investigation. 
 
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