. /.   WORLD TRADE  
ORGANIZATION  G/SG/N/6/UKR/7 
21 May 2010 
 (10-2853) 
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 
 
(Cooling and refrigerating equipment)
 
   The following communication, dated 19 May 2010, is being circulated at the request of the 
Delegation of Ukraine.   
 
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  Pursuant to Article 12.1(a) of the Agreemen t on Safeguards and using the format adopted by 
the Committee on Safeguards (G/SG/N/6/Rev.1), Ukraine hereby gives notification of the initiation of 
the safeguards investigatory process, as follows:    
1. Investigation initiation date  
 
 On 6 May 2010, the Decision of Interdepartmental Commission on International Trade 
(hereinafter - Commission) Nº SP-231/2010/4403-28 about "Initiation of an investigation process relating to the importation to Ukraine of coo ling and refrigerating e quipment under 8418 UKTZED
1 
heading regardless to the country of origin and expo rt" (hereinafter - the investigation) has entered 
into force.   2. Description of the product involved 
 
 The object of investigation is a product that  has the following description: refrigerators, 
freezers and other equipment for refrigerator or freezer , electric or other types, which can be classified 
under UKTZED heading 8418 excluding codes 8418 .10.10.00, 8418.30.10.00, 8418.40.10.00, 
8418.91.00.00 and Subheading 8418.61, 8418.69 and 841 8.99, regardless of country of origin and 
export (hereinafter - Goods).  
3. Reasons for the initiation of investigation 
 (i)  special investigation has been initiated on th e basis of petitions of companies of the Group 
Nord holding: OJSC "NORD", LLC "Donbas Plus" and CJSC "Intertehnika".  The value of 
Goods which has been produced by them is a major share in total production of the domestic 
market of Ukraine.  Therefore, this Investiga tion has been initiated by the domestic industry.  
 
                                                     
 
 1 UKTZED - Ukrainian Commodity Classification fo r Foreign Economic Activity, based on HS 2002. G/SG/N/6/UKR/7 
Page 2  
 
  (ii) Based on this petition the Commission found that  it contains sufficient evidence regarding to 
the growth of imports in Ukraine of the Goods that are subject to the investigation during the first half of 2009 - second half of 2009.  As a result, it may have caused threat of serious 
injury to domestic industry, in particular:   
- growth in imports into Ukraine of the G oods that are subject to investigation, in 
absolute terms of 129 per cent and regard ing to the applicant's production of Goods 
by 64 per cent and consumption of Goods on the domestic market of Ukraine by 
28 per cent;  
 
- decrease of import prices to Ukraine of the Goods that are subject to investigation by 
8.5 per cent and corresponding decrease in selling price of the Goods of the applicant in the domestic market of Ukraine by 6.2 per cent.  
  The petition contains information that at the mentioned period the applicant's cost of Goods 
has increased by 3.45 per cent.  However, taki ng into account the reduction of import prices to 
Ukraine of the Goods that are subject to investiga tion, the national producers had no chance to raise 
the selling price of Goods on the domestic market of Ukraine proportionally to th e cost increase that 
could result in causing more losses to the applicant' s realization of Goods on the domestic market of 
Ukraine by 37 per cent and to reduce the applican t's current liquidity ratio by 6 per cent.  
 
 The petition contains information that, despite the overall increase in consumption Goods on 
the domestic market of Ukraine by 79 per cent in th e second half of 2009 compared to the first half of 
2009 the share of the Goods of the applicant in the domestic market of Ukraine has decreased by 
31 per cent and the amount of employees in enterprises of an applicant has decreased by 4.6 per cent. 
 4. А point of contact for the investigatio n and preferred means for corresponding 
 
The Ministry of Economy of Ukraine 01008, Kyiv, Grushevskogo str., 12/2,  tel. (+38044) 272-54-55, fax (+38044) 226-31-81,  e-mail:  a-dump@me.gov.ua.  
 
5. Deadlines and procedures for importers, ex porters and other interested parties to 
present evidence  
 
 Within 30 days from the effective date of the decision of the Commission on initiation of 
investigation, the Ministry of Economy of Ukraine carries out registration of interested parties and 
considers the requirements for conducting of hearings.    Within 60 days from the effective date of the decision of the Commission on initiation of 
investigation, the Ministry of Economy of Ukrain e considers the written comments on the initiation of 
investigation. 
 
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