WORLD TRADE  
ORGANIZATION  G/SG/N/7/TUR/5 
29 July 2009 
 (09-3687) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT 
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
TURKEY 
 
(Vacuum Cleaners)
 
   The following communication, dated 21 July 2009, is being circulated at the request of the 
Delegation of Turkey.   
 
_______________ 
 
 
We enclose a notification pursuant to Article 12.4 of the Agreement on Safeguards, before 
taking a provisional safeguard measur e against imports of vacuum cleaners and a notification pursuant 
to Article 9, footnote 2 of the Agreement on Safeguards, on taking a decision not to apply the measure 
to products originating in developing countries.  The initial application of the safeguard measure 
against imports of vacuum cleaners was notifie d with the document G/SG/N/10/TUR/3, dated 
12 July 2006.  The initiation of an investigation to review the exis ting safeguard measure was notified 
with the document G/SG/N/6/TUR/8/S uppl.1, dated 4 June 2009.   
 A. N
OTIFICATION UNDER ARTICLE 12.4  BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE  
1. The product subject to the proposed provisional safeguard measure 
The product subject to the proposed provisional safeguard measure is classified under 
"vacuum cleaners" with Customs Codes 8508.11.00. 00.11 and 8508.19.00.00.00  and descriptions "of 
a Voltage 110 Volts or more" and "others", respectively.   
 
2. The proposed provisional safeguard measure 
It is proposed to impose provisional safeguard measu re in the form of variable duty that shall 
be implemented against im ports under CIF price of 34 USD per piece.  If imports are undertaken at a 
CIF price equal to or above the relevant thres hold level established (34 USD per piece), the imports 
will not be subject to the proposed measure.  If impor ts are undertaken at a lower price, the difference 
between the actual price and the threshold level (3 4 USD per piece) would become payable.  The duty 
shall be collected as a security.    3. Entry into force of the proposed  provisional safeguard measure 
The provisional safeguard measure is proposed to enter into force, with the publication of the 
approval of the Council of Ministers in the Offici al Gazette no later than 10 August 2009.   
 G/SG/N/7/TUR/5 
Page 2  
 
  4. The expected duration of the provisional safeguard measure 
The decision whether or not to extend the exis ting safeguard measure will be made at the end 
of the investigation.  Therefore, the provisiona l safeguard measure shall be applied during the 
investigation period.  In any case, the provisional safeguard measure shall last for 200 days at the 
most.   
 
5. The basis for: 
(i) Making a preliminary determination, as provided for in Article 6, that increased 
imports have caused or are th reatening to cause serious injury 
The evidence relating to the serious injury suffered by the domestic industry as a result of the 
increase in imports of the product concerned had be en notified with the document G/SG/N/8/TUR/3, 
dated 12 July 2006.  Accordingly, a safeguard me asure against imports of vacuum cleaners for a 
period of 3 years was put into force on 10 August 20 06.  Information on the changes in the level of 
imports and certain economic indicators of the domestic  industry that were recorded during the period 
the safeguard measure has been applied is provided below.   
 
CHANGE IN IMPORTS  
Imports Unit 2006 2007 2008 
Absolute Imports Pieces 1, 301,384 921,123 1,022,938 
Change % - -29 11 
 
 Having reached the level of 1.3 million pieces in 2006, imports of the product concerned 
declined by 29 per cent in 2007.  However, imports  increased by 11 per cent in 2008 and exceeded the 
level of 1 million pieces.     Based on the figures relating to imports that  are summarized above, it is concluded that 
imports of the product concerned decreased notably in  the year following the first year the measure 
was initiated.  However, imports rose by 11 per cent in 2008.   
 ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY  
A preliminary analysis to assess the impacts of the existing safeguard measure on the 
situation of the domestic industry was carried out.  In this analysis, data submitted by 4 domestic 
producers, that constitute major proportion of domestic  production, were used.  In order to maintain 
confidentiality of the information submitted by the applicant companies, figures relating to profitability are shown by indexes.    
(i) Consumption 
Consumption Unit 2006 2007 2008 
Quantity Pieces 2,468,985 2,237,992 2,606,392 
Change % - -9 16 
 
 Consumption of the product concerned fell by 9 per cent in 2007.  However, domestic 
consumption exceeded its initial level in 2008, with an annual increase of 16 per cent.    G/SG/N/7/TUR/5 
 Page 3 
 
 
  (ii) Production 
Production Unit 2006 2007 2008 
Quantity Pieces 1,513,374 1,652,893 1,874,223 
Change % - 9 13 
 
 Production of the product concerned incr eased by 9 per cent and 13 per cent in 2007 
and 2008, respectively.   
 
(iii) Capacity and Capacity Utilization Rate (CUR) 
Capacity Unit 2006 2007 2008 
Quantity Pieces 1,921,120 2,131,120 2,131,120 
CUR % 79 78 88 
 
 Total production capacity of the domestic industr y increased slightly in 2007 and remained 
unchanged in 2008.  Capacity utilization ra tio recovered substan tially in 2008.   
 
(iv) Domestic Sales 
Domestic Sales Unit 2006 2007 2008 
Quantity Pieces 1,167,601 1,316,869 1,583,454 
Change % - 13 20 
 
 Similar to the change seen in production, dom estic sales of the producers increased by 13 per 
cent and 20 per cent in 2007 and 2008, respectively.    
(v) End of Period Inventories 
Inventories Unit 2006 2007 2008 
Quantity Pieces 29,876 45,057 33,591 
Change % - 51 -25 
 
 Having risen by 51 per cent in 2007, inventories of the product concerned declined by 25 per cent in 2008.    
(vi) Employment 
Employment Unit 2006 2007 2008 
Labor  Direct 
Worker 711 858 832 
Change % - 21 -3 
 
 The number of direct workers employed in the production of the product subject to application rose by 21 per cent in 2007 and fell by 3 per cent in 2008.   G/SG/N/7/TUR/5 
Page 4  
 
  (vii) Productivity 
Productivity Unit 2006 2007 2008 
Labor Productivity Piece/ 
Worker 2,129 1,926 2,253 
Change % - -9 17 
 
 Labor productivity went down by 9 per cent in 2007.  However, there was a significant 
improvement in productivity in 2008. 
(viii) Profits 
Profits Unit 2006 2007 2008 
Profitability Index 100 61 93 
 
 Profitability index (2006=100) dec lined to 61 in 2007.  The inde x increased to 93 in 2008.   
 CONCLUSION  
The preliminary analysis reveals that imports of the product concerned decreased notably in 
the second calendar year after the safeguard measure was initiated.  However, the imports increased 
by a significant per cent in 2008 despite the existing safeguard measure.  Hence, it would be fair to 
say that the increase in imports in 2008 would be higher if there were no measure applied against 
imports of the product concerned.    
Besides, there have been positive developmen ts in certain economic indicators of the 
domestic industry during the application period of the safeguard measure.  Particularly, production, 
domestic sales, capacity utilization and productivity reached their peak in 2008.    
Therefore, given these facts, it seems possible to argue that in the application period of the 
safeguard measure the domestic producers entere d an improvement phase that would help them 
overcome the injurious effects of the increase in imports.   
 
 (ii) Determining the existence of critical circumstances where delay would cause damage 
which it would be difficult to repair 
 
The safeguard measure that is currently be ing applied against imports of the product 
concerned came into force on 10 August 2006 and will come to an end on 9 August 2009.  The 
investigation to review this meas ure was initiated on 31 May 2009.   
 
Concerning the required examinations that shoul d be carried out within the context of a 
safeguard investigation, it has been understood that  the current investigation will not be completed 
until the end of the 3-year application period of the existing safeguard measure.   
 
It was determined that imports of the product concerned increased notably in 2008 despite the 
current safeguard measure.  Moreover, preliminar y figures reveal that certain figures relating to 
domestic industry recovere d during the period the safeguard measure has been implemented.    G/SG/N/7/TUR/5 
 Page 5 
 
 
  Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned after the end of the 3-year period coul d negatively affect the recovery process of the 
domestic industry, the provisional safeguard me asure is proposed to eliminate any possible 
uncertainty that could come out with the ongoing i nvestigation on the need of the extension of the 
current measure.  To achieve this objective, the prov isional measure shall be collected as a security.   
 
6. Offer of consultations under Article 12.4 
Consistent with Article 12.4 of the Agreement on Safeguards, Turkey is prepared to consult 
on the provisional safeguard measure with those Memb ers having a substantial interest as exporters of 
the product concerned.   
 
B. NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT TO APPLY THE 
PROVISIONAL SAFEGUARD MEASURE TO CERTAIN PRODUCTS ORIGINATING IN DEVELOPING 
COUNTRIES  
1. The measure 
It is proposed to impose provisional safeguard measure in the form of variable duty as 
described in the notification under Article 12.4 above.   
 
2. The product subject to the measure 
The measure shall be to the product described  in paragraph 1 of the notification under 
Article 12.4 above.   
 
3. The developing countries to which the measure is not applied under Article 9.1 of the 
Agreement on Safeguards  
The developing countries in the list below are excluded from the measure as they export less 
than 3 per cent of imports to Turkey.   
 
Afghanistan;  Algeria;  Antigua and Barbuda;  Angola;  Argentina;  American Samoa;  
Anguilla;  Antarctica;  Aruba;  Azerbaijan;  Barb ados;  Bangladesh;  Burkina Faso;  Bahrain;  
Burundi;  Benin;  Bolivarian Republic of Venezuela;  Brunei Darussalam;  Bolivia;  Brazil;  Bahamas;  
Bhutan;  Botswana;  Belize;  Bermuda;  Bouvet Isla nd;  British Virgin Islands;  British Indian Ocean 
Territory;  Democratic Republic of Congo;  Cent ral African Republic;  Congo;  Côte d'Ivoire;  
Cameroon;  Chad;  Colombia;  Costa Rica;  Cu ba;  Cape Verde;  Cayman Islands;  Chile;  
Christmas Islands;  Cocos Islands;  Cook Islands ;  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 ;  India;  Indonesia;  Iraq;  Iran (Islamic 
Republic of);  Jamaica;  Jordan;  Kazakhstan;  Keny a;  Cambodia;  Kiribati;  Comoros;  St Kitts and 
Nevis;  Kuwait;  Kyrgyzstan;  Laos;  Lebanon;  St Luci a;  Sri Lanka;  Liberia;  Lesotho;  Libyan Arab 
Jamahiriya;  Morocco;  Madagascar;  Marshall Is lands;  Mali;  Moldova;  Mongolia;  Mauritania;  
Mauritius;  Malaysia;  Maldives;  Malawi;  Mozambi que;  Macao;  Mayotte;  Mexico;  Montserrat;  
Namibia;  Niger;  Nigeria;  Nicaragua;  Nepal;  Nauru;  Netherlands Antilles;  New Caledonia;  
Niue Island;  Norfolk Island;  Northern Mariana Isla nds;  Oman;  Panama;  Peru;  Papua New Guinea;  
Philippines;  Pakistan;  Palau;  Paraguay;  Pitcairn ;  Qatar;  Russian Federation;  Rwanda;  Samoa;  
Saudi Arabia;  Solomon Islands;  Seychelles;  Suda n;  Sierra Leone; Senega l;  Somalia;  Suriname;  
Sao Tomé and Principe;  El Salvador;  Syrian  Arab Republic;  Swaziland;  South Africa;  
South Georgia and South Sandwich Is lands;  St Helena and dependenci es;  St Pierre and Miquelon;  G/SG/N/7/TUR/5 
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  Tajikistan;  Thailand;  Togo;  Tunisia;  Tonga;  E ast Timor;  Trinidad and Tobago;  Turkmenistan;  
Tuvalu;  Tanzania;  Tokelau;  Turks and Caicos  Islands;  Ukraine;  United Arab Emirates;  
United States Minor outlying islands;  Uganda;  Uruguay;  Uzbekistan;  St Vincent;  Vietnam;  Vanuatu;  Virgin Islands of US;  Wallis and Futu na Islands;  Yemen;  Zambia and Zimbabwe.   
 
 
 
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