WORLD TRADE  
ORGANIZATION   
G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 G/SG/N/11/TUR/9/Suppl.1 
8 November 2011 
 
(11-5700) 
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 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS (EXTENSION)  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Travel Goods, Handbags a nd Similar Containers) 
 
Supplement 
  The following notification, dated 25 October 2011, is being circulation at the request of the 
Delegation of Turkey.   
 
_______________ 
 
  Concerning imports of travel goods, handbags a nd similar containers, Turkey had notified the 
initiation of a safeguard investigation with WTO Document G/SG/N/7/TUR/9-G/SG/N/11/TUR/15-
G/SG/N/14/TUR/6, dated 18 April 2011.  Turkey hereby provides notification to the Committee on Safeguards pursuant to Article 12.1(b), Article 12.1(c)  and Article 9, footnote 2 of the Agreement on 
Safeguards, on taking a decision to extend a safeguard  measure that is being applied against imports 
of travel bags, handbags and si milar containers and non-appli cation of safeguard measure to 
developing countries.  
 
A. NOTIFICATION
 UNDER  ARTICLE  12.1(B)  AND  (C) OF THE  AGREEMENT  ON 
SAFEGUARDS  UPON  MAKING  A FINDING  OF SERIOUS  INJURY  OR THREAT  
THEREOF  CAUSED  BY INCREASED  IMPORTS;   NOTIFICATION  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. 
 Pursuant to Article 7, para graphs 2 and 3 of the Agreemen t on Safeguards, a safeguard 
measure should not be applied for a period exceedi ng four years, unless it is extended.  The period 
may be extended provided that th e competent authorities of the importing Member have determined 
that the safeguard measure continues to be necessary  to prevent or remedy serious injury and that 
there is evidence that the industry is adjusting. G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 
G/SG/N/11/TUR/9/Suppl.1 
Page 2  
 
   
 In order to make a determination of the saf eguard measure continues to be necessary to 
prevent or remedy serious injury or threat thereo f caused by increased imports and that the industry 
concerned is adjusting an evaluation of all releva nt factors of an objective and quantifiable nature 
having a bearing on the situation of the domestic indus try has been undertaken.  In this analysis, data 
submitted by the domestic producers, which cons titutes major proportion of domestic production, 
were used.  Therefore, the figures in this section ar e shown by indexes to maintain the confidentiality 
of the information provided by the applicants.  In formation below covers the 5-year period from 2006 
to 2010 and the first 6-month period of the years 2010 and 2011, where necessary.  
(i) Production 
Group A 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 93,4 140,8 100 112,7 
      
Group B1 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 124,2 129,5 100 111,5 
      
Group B2 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 94,6 141,2 100 113,3 
      
Group C 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Tons - Index 100 211,1 220,0 100 111,5 
 
 For some of the product groups, production index has decreased in 2009.  However in 2010 
and in the six months of 2011 the production index has increased for every product groups again.   
 
(ii) Domestic Sales 
Group A 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 88,6 114,0 100 94,8 
      
Group B1 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 90,1 100,1 100 115,5 
  G/SG/N/8/TUR/9/Suppl.1 
 G/SG/N/10/TUR/9/Suppl.1 
 G/SG/N/11/TUR/9/Suppl.1 
 Page 3 
 
 
   
Group B2 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 91,5 116,6 100 95,9 
      
Group C 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Tons - Index 100 213,3 223,3 100 111,6 
 
 For the product groups A, B1 and B2;  domestic  sales have decreased in 2009, but increased 
in 2010 with respect to previous years.  On the other hand domestic sales index for the product group C has displayed a significant increase over the years from 2008 to 2011.  
 
(iii) Capacity and Capacity Utilization Ratio (CUR) 
Group A 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Capacity 
100 117,8 144,0 100 100 Pieces - Index 
CUR 100 79,6 98,0 100 112,5 (% - Index) 
      
Group B1 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Capacity 100 112,0 137,4 100 98 Pieces - Index 
CUR 100 110,9 94,5 100 95,7 (% - Index) 
      
Group B2 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Capacity 100 118,3 144,8 100 100 Pieces - Index 
CUR 
100 79,9 98,0 100 114,3 (% - Index) 
      
Group C 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Capacity 
100 145,4 172,9 100 104 Tons - Index 
CUR 100 145,7 128,3 100 106,8 (% - Index) G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 
G/SG/N/11/TUR/9/Suppl.1 
Page 4  
 
   After the imposition of the measure in 2008, in all of the product groups, domestic producers 
have increased their production capacity.  The rate of increase in the capacity is most significant in the 
Groups C.  On the other hand, capacity utilizat ion ratio has fluctuated in all product groups 
between 2008 and 2010. 
 
(iv) End of Period Inventories 
Group A 2008 2009 2010 
Pieces - Index 100 97,7 119,2 
    
Group B1 2008 2009 2010 
Pieces - Index 100 77,5 98,4 
    
Group B2 2008 2009 2010 
Pieces - Index 100 106,3 119,6 
    
Group C 2008 2009 2010 
Tons - Index 100 48,4 73,1 
 
 End of period inventories have fluctuated over the years.  Following the imposition of the measure in 2008, end of period inventories shrank to  its lowest level in 2009 excluding the group B2.  
 
(v) Employment 
Group A 2008 2009 2010 2011 
(1-6) 
Workers - 
Index 100 129,3 147,3 165,9 
     
Group B1 2008 2009 2010 2011 
(1-6) 
Workers - 
Index 100 144,6 160,1 166,5 
     
Group B2 2008 2009 2010 2011 
(1-6) 
Workers - Index 100 129,3 147,0 165,8 
     
Group C 2008 2009 2010 2011 
(1-6) 
Workers - Index 100 115,4 128,9 134,6 
 
 In every product group, employment has increased between 2008 and 2011.  Particularly in 
the first six months of 2011 employment has increased significantly in every product group.   G/SG/N/8/TUR/9/Suppl.1 
 G/SG/N/10/TUR/9/Suppl.1 
 G/SG/N/11/TUR/9/Suppl.1 
 Page 5 
 
 
  (vi) Labor Productivity 
Group A 2008 2009 2010 2011 
(1-6) 
Pieces/Worker 
Index 100 72,3 95,7 95,7 
     
Group B1 2008 2009 2010 2011 
(1-6) 
Pieces/Worker 
Index 100 85,9 81,0 86,8 
     
Group B2 2008 2009 2010 2011 
(1-6) 
Pieces/Worker 
Index 100 73,2 96,2 96,6 
     
Group C 2008 2009 2010 2011 
(1-6) 
Tons/Worker 
Index 100 183,0 170,8 182,3 
 
 Labor productivity has increased only in the product group C over the years 2008 to 2010.  For the product groups A and B2 productivity decreas ed to its lowest level in 2009.  For the product 
group B1, labor productivity has progressively decr eased between 2008 and 2010.  But in the first 
six months of 2011 it began to increase again.   
(vii) Profits 
Profitability 2008 2009 2010 
(% – Index) 100 68,1 45,0 
 
 For all product groups, data regarding the prof itability has been consolidated in the table 
above.  Following the imposition of the measure in 2008 profitability has decreased. 
 G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 
G/SG/N/11/TUR/9/Suppl.1 
Page 6  
 
  (viii) Consumption  
 
 
 Following the imposition of the safeguard me asure in 2008 the consumption index has 
decreased in 2009 for the product groups A, B1 and C.  Consumption remained stable in the product 
group C.  In the first six months of 2011 the cons umption has increased remarkably in all of the 
product groups.   
 (ix) Conclusion 
 The assessment of the data available from dome stic producers reveals that majority of the 
economic indicators of domestic industry improved af ter the measure.  However in the years 2008 and 
particularly in 2009, the financial crisis that h it the world had negative effects in Turkish domestic 
market.  In these years domestic and global consumption as well as domestic sales in most of the 
product groups have dramatically decreased.  This has interrupted the adjustment process of the 
domestic industry.  On the other hand, the imports which shrunk af ter the imposition of the measure 
began to increase again in 2010.  
  Qualified personnel and investment on research and development is crucial in this sector.  
Once the initial measure was imposed, the industry h as implemented an adjustment plan.  In this 
respect domestic producers made new investments which led to the enhancement of the production 
capacity and introduced new models.  Furthermore they initiated training programs under technical 
schools to supply the qualified personnel to the sector .  The investments and training programs require 
time to make positive contribution to the sector.  
 
 It is concluded that based on evaluations c onducted within the context of the investigation 
that the domestic producers of travel goods, handba gs and similar containe rs were adjusting and 
safeguard measure continues to be necessary to prevent or remedy serious injury.   
 Group A 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 54,7 55,5 100 182,2 
      
Group B1 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 82,0 89,7 100 158 
      
Group B2 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Pieces - Index 100 101,0 100,3 100 127,2 
      
Group C 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Tons - Index 100 80,9 83,4 100 186,5  G/SG/N/8/TUR/9/Suppl.1 
 G/SG/N/10/TUR/9/Suppl.1 
 G/SG/N/11/TUR/9/Suppl.1 
 Page 7 
 
 
  2. Information on whether there is an absolu te increase in imports or an increase in 
imports relative to domestic production.   
(i) Volume of Imports 
Group A 2008 2009 2010 2010  
(1-6) 2011  
(1-6) 
Pieces - Index 100 45,7 44,6 100 154,5 
      
Group B1 2008 2009 2010 2010  
(1-6) 2011  
(1-6) 
Pieces - Index 100 55,3 66,4 100 134,8 
      
Group B2 2008 2009 2010 2010  
(1-6) 2011  
(1-6) 
Pieces - Index 100 97,7 111,2 100 140,3 
      
Group C 2008 2009 2010 2010  
(1-6) 2011  
(1-6) 
Tons - Index 100 44,0 47,9 100 140,3 
 
 After the imposition of the safeguard measure in 2008, in all product groups absolute imports 
have decreased significantly.  The rate of decrease is  around 50 per cent for the product groups A, B1, 
and C.  However, starting from 2010 imports began to  increase again.  Especially in the first half 
of 2011, in every product groups, impor ts have dramatically increased.  
 
Imports / 
Production 
(Index) 2008 2009 2010 2010 2011 
(1-6) (1-6) 
Group A 100 51,4 47,1 100 66,6 
Group B1 100 57,9 64,1 100 71,4 
Group B2 100 102,5 107,1 100 74,3 
Group C 100 46,2 46,2 100 74,3 
 
 After the imposition of the measure, imports to production ratio has decreased over the 
years 2008 to 2010 except for the Group B2.  In the first half of 2011 imports to production has decreased in every product groups.   
 
(ii) Market Share of Imports 
  2008 2009 2010 2010 2011 
(1-6) (1-6) 
Group A 100 74,7 70,3 100 84,7 
Group B1 100 78,8 79,4 100 85,3 
Group B2 100 102,5 101,6 100 110,3 
Group C 100 58,9 65,8 100 75,3 G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 
G/SG/N/11/TUR/9/Suppl.1 
Page 8  
 
   After the imposition of the safeguard measure th e market shares of imports have decreased in 
all of the product groups except for the Group B2.   
 
3. Precise description of the product involved 
 The products concerned are travel bags, handba gs and other containers that are currently 
classified within the Turkish Customs Tariff Sc hedule under the subheading 42.02.  These products 
have been divided into 4 groups according to  features such as their supply chains, functions, 
characteristics, economic life, and consumer percep tions and demand.  Group A consist of trunks, 
suitcases, vanity cases and travelling-bags;  Group B1  and B2 consist of ex ecutive-cases, briefcases, 
toilet bags, rucksacks, handbags, s ports bags, wallets and purses of  sheeting of plastics, textile 
materials, and vulcanized fibre being in group B1 and of other materials being in Group B2;  Group C 
consist of spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters, insulated food or beverages bags, map-ca ses, cigarette cases, tobacco-pouches, tool bags, 
bottle-cases, jewellery boxes, powder boxes, cutlery cases and similar containers.   
 
4. If the final measure replaces a provisional measure, or if a final measure is extended, a 
Member is encouraged to provide a written description of any part of the imported 
product that will no longer be subject to the measure.  
 The original measure covers all the products  classified within the Turkish Customs Tariff 
Schedule under the subheading 42.02.  For the extension no product is excluded. 
 
5. Description of the proposed measure 
Customs 
Code Description Additional Financial Duty 
1st Period 
(8/4/2011-
7/4/2012) 2nd Period 
(8/4/2012-
7/4/2013) 3rd Period 
(8/4/2013-
7/4/2014) 
42.02 Travel Bags, 
Handbags and 
Similar Containers 2,70 $ / Kg 
(Max 4,25 $ / 
Piece) 2,60 $ / Kg 
(Max 4,00 $ / 
Piece) 2,50 $ / Kg 
(Max 3,75 $ / 
Piece) 
 
 It is proposed to impose definitive safeguard  measure as an additional financial duty.  For 
each period the amount of additional financ ial duty is shown in the table above. 
 
6. Proposed date of introduction of the measure 
 The measure will come into effect with the publication of the approval of the Council of 
Ministers after all legal procedures are completed.  
 
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/8/TUR/9/Suppl.1 
 G/SG/N/10/TUR/9/Suppl.1 
 G/SG/N/11/TUR/9/Suppl.1 
 Page 9 
 
 
  9. Expected timetable for progressive liberalization of the measure 
 The measure will be progressively liberalized, at  regular intervals, at the beginning of each 
period of application.  The timetable for progressive  liberalization of the proposed measure is shown 
in Title 5.   
 
10. If the notification relates only to a finding of serious injury or threat thereof, and does 
not relate to a decision to apply 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 1.   
(ii) Reference to the WTO document that notified the initial application of the measure.   
 Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, Turkey notified the 
Committee on Safeguards that its competent authority  has initiated a safeguard investigation on the 
imports of travel goods, handbags and similar containers with th e document G/SG/N/6/TUR/12 dated 
12 June 2007.  Introduction of the definitive saf eguard measure was notified with the document 
G/SG/N/8/TUR/9-G/SG/N/10/TUR/9-G/SG /N/11/TUR/9 dated 18 March 2008. 
 
(iii) Duration of the measure from initial applica tion till the date at which it will be extended 
 The initial safeguard measure was applied fro m 8 April 2008 to 7 April 2011.  Turkey now 
intends to extend the safeguard measu re for 3 more years.  The measu re intended to be extended until 
7 April 2014.   
 
(iv) Precise description of the measure in place prior to the date of extension 
 With the Council of Ministers decision published in the Official Gazette dated 8 April 2008, 
safeguard measure was put into force in imports of the travel bags, handbags and similar containers.  
For each period the amount of additional fina ncial duty is shown in the table below. 
 
Customs 
Code Description Additional Financial Duty 
1st Period 
(8/4/2008-
7/4/2009) 2nd Period 
(8/4/2009-
7/4/2010) 3rd Period 
(8/4/2010-
7/4/2011) 
42.02 Travel Bags, 
Handbags and 
Similar Containers 3,00 $ / Kg 
(Max 5,00 $ / 
Piece) 2,90 $ / Kg 
(Max 4,75 $ / 
Piece) 2,80 $ / Kg 
(Max 4,50 $ / 
Piece) 
 
12. Information relating to exporting members 
(i) The major exporting Members of imports of the product involved.   
 The main exporter country to Turkey for the product concerned is People's Republic of China 
with a share of over 70 per cent in every product group.   G/SG/N/8/TUR/9/Suppl.1 
G/SG/N/10/TUR/9/Suppl.1 
G/SG/N/11/TUR/9/Suppl.1 
Page 10  
 
  (ii) There are no exporting Members to which the 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 investig ation and the final decision can be reached from 
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 in  the form of fixed duty as described in the 
notification under Article 12.1 above. 
 
2. The product subject to the measure 
 The measure applies to the products described in Title 3 of the notification under Article 12.1 
above.  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;  Algeria;  Antigua and Barbuda;  Angola;  Argentina;  American Samoa;  
Anguilla;  Antarctica;  Aruba;  Azerbaijan;  Bahrai n, Kingdom of;  Bahamas;  Bangladesh;  Barbados;  
Belize;  Benin;  Bermuda;  Bhutan;  Bolivarian Republic  of Venezuela;  Plurinational State of Bolivia;  
Botswana;  Bouvet Island;  Brazil;  British Virgin Is lands;  British Indian Ocean Territory;  Brunei 
Darussalam;  Burkina Faso;  Burundi;  Democratic  Republic of Congo;  Central African Republic;  
Congo;  Côte d'Ivoire;  Cameroon;  Chad;  Colombia;  Costa Rica;  Cuba;  Cape Verde;  Cayman 
Islands;  Chile;  Christmas Islands;  Cocos Islands ;  Cook Islands;  Djibouti;  Dominica;  Dominican 
Republic;  Ecuador;  Egypt;  Eritrea;  Ethiopia;  Fiji;  Federated States of Micronesia;  Falkland 
Islands;  French Polynesia;  French Southern Te rritories;  Gabon;  Grenada;  Ghana;  Gambia;  
Georgia;  Greenland;  Guinea;  Equatorial Guinea;  Guatemala;  Guinea-Bissau;  Guyana;  Gibraltar;  
Guam;  Honduras;  Haiti;  Heard Island and McDonald Islands;  India; Indonesia;  Iraq;  Iran;  
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;  Netherlands  Antilles;  New Caledonia;  Niue Island;  Norfolk 
Island;  Northern Mariana Islands;  Oman;  Pana ma;  Peru;  Papua New Guinea;  Philippines;  
Pakistan;  Palau;  Paraguay;  Pitcairn;  Qatar;  Ru ssian Federation;  Rwanda;  Samoa;  Saudi Arabia;  
Solomon Islands;  Seychelles;  Sudan;  Sierra Le one;  Senegal;  Somalia;  Suriname;  Sao Tomé and 
Principe;  El Salvador;  Syrian Arab Republic;  Swaziland;  South African;  South Georgia and South 
Sandwich Islands;  St Hele na and dependencies;  St Pierre and Miquelon;  Tajikistan;  Thailand;   G/SG/N/8/TUR/9/Suppl.1 
 G/SG/N/10/TUR/9/Suppl.1 
 G/SG/N/11/TUR/9/Suppl.1 
 Page 11 
 
 
  Togo;  Tunisia;  Tonga;  East 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 Vincen t;  Vietnam;  Vanuatu;  Virgin Islands of the US;  
Wallis and Futuna Islands;  Yemen;   Zambia;  and Zimbabwe.   
 
_________