WORLD TRADE  
ORGANIZATION  G/SG/N/7/PHL/8 
G/SG/N/8/PHL/8 
G/SG/N/11/PHL/9 
10 June 2010 
 (10-3175) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON  
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARDS  
MEASURE REFERRED TO IN ARTICLE 6  
 
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 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS 
 
PHILIPPINES 
 
(Testliner board)
 
 
 The following notification, dated 8 June 2010, is being circulated at the request of the 
Delegation of the Philippines.1 
 
_______________ 
  
Pursuant to Article 12 of the WTO Agreemen t on Safeguards, the Permanent Mission of the 
Philippines to the WTO, hereby notifies the Committe e on Safeguards of the results of its preliminary 
determination on the investigation on the importation of testliner boar d and before taking a provisional 
safeguard measure under Article 6 of  the Agreement on Safeguards.   
 
1. Product subject to the proposed safeguar d measure and the precise description of the 
product involved  
 
 Testliner board is the outer layer of the corr ugated board glued to the peaks, thus making a 
liner-fluting - liner sandwich.   
 
Rate of Duty (%)  Heading No. AHTN 
Code 2007 Description MFN CEPT 
- Testliner (recycled liner board)  2000-
2009 2010 
4805.24.00 --Weighing 150 g/m2 or less 7% 3% 0% 
4805.25 --Weighing more than 150 g/m2 
4805.25.10 ---Weighing less than 225 g/m2 7% 3% 2008 to 
2010 48.05 
Other uncoated paper 
and paperboard, in rolls 
or sheets, not further worked or processed  4805.25.90 ---Other 7% 3% 0% 
                                                      
1 A copy of the Order (in English only) has been submitted electronically.  Those wishing to consult 
this document is requested to contact Ms Budd (hilary.budd@wto.org) or Ms Naville 
(delphine.naville@wto.org) of the Rules Division.   G/SG/N/7/PHL/8 
G/SG/N/8/PHL/8 G/SG/N/11/PHL/9 
Page 2 
  
  2. Proposed provisional safeguard measure  
 
 The provisional safeguard measure will take the form of a cash bond on all importations of 
testliner board with basis weight of 12 5gsm, 140gsm, 150gsm, 160gsm, 175gsm, 185gsm, 200gsm 
and 230gsm, classified under AHTN Codes 4805. 2400, 4805.2510 and 4805 .2590 amounting to 
P
 1,480.00/MT for a period of 200 days from the date of the issuance by the Bureau of Customs 
(BOC) of the relevant Customs Memorandum Order (CMO) or 15 days  after the publication of the 
Order issued by the Secretary of the Department of Trade and Indus try (DTI) in two (2) newspapers 
of general circulation, which ever comes earlier.  The Order was signed by the Secretary of the DTI 
on 5 May 2010.     However, imports originating from developing countries covered by the "developing country" 
rule under Article 9 of the WTO Safeguards Agre ement shall not be subject to the provisional 
safeguard measure.  Attached as Annex
 is the list of said developing countries.   
 
3. Proposed date of introduction of the provisional safeguard measure  
 
 The provisional safeguard measure is schedul ed to enter into force upon issuance of the 
relevant Customs Memorandum Order by the Philippi ne Bureau of Customs or 15 days after the 
publication of the DTI Order in two (2) newspapers of general circulation, whichever comes earlier.  
The Order signed by the Secretary of the DTI was pub lished in two newspapers of general circulation 
on 26 May 2010.  
4. Expected duration of the provisional safeguard measure  
 
 The provisional safeguard measure will be  applied for a time period of up to 
two hundred (200) days. 
 
5. Preliminary determination, as provided for in Article 6 
  Imports continuously increased during the POI.  Import surges were noted in 2007 and 2008.  
In 2007, import volume increased by 25 per cent and further by 56 per cent in 2008.  Imports significantly increased both in absolute terms and relative to domestic production.  The increase in 
imports is recent, sudden, sharp and significant which is e nough to contribute serious impairment to 
the local industry.  During the surge in imports , the industry suffered declining production, sales, 
capacity utilization, profitability and productivity.  Prices of domestic products were also suppressed 
due to the inability to recover increasing production costs.   
 
 Critical circumstances where delay would cause damage which it would be difficult to repair.    
 The global recession which started in the last quart er of 2008 was largely felt in 2009.  This 
global situation exacerbated the injury attributed to the surge in imports being suffered by the 
domestic testliner board industry.  Regardless of the global economic condition, there is therefore a 
need to impose a safeguard measure which will provi de the domestic industry, that is badly hurt, a 
temporary relief and protection from the effects of  the global market condition and the surge in 
imports.  The effect of the increased imports con tinued in 2009 since import levels are still higher 
than in 2004 to 2007.  During the surge in imports, the industry suffered declining production, sales, 
capacity utilization, profitability and productivity.  Prices of domestic products were also suppressed 
due to the inability to recover increasing production costs.    G/SG/N/7/PHL/8 
 G/SG/N/8/PHL/8 
 G/SG/N/11/PHL/9 
 Page 3 
  
  6. Major exporting Members of imports of the product involved 
 
 Thailand, Indonesia, Chinese Taipei, Australia , and the People's Republic of China are the 
major suppliers of the imported product in 2008.  
   G/SG/N/7/PHL/8 
G/SG/N/8/PHL/8 G/SG/N/11/PHL/9 
Page 4 
  
  ANNEX 
 
List of Developing Countries and Separate Cu stoms Territories Excluded from the Imposition of 
Provisional Safeguard Measure on Testliner Board  
  
East & Southern Africa 
 West Africa 
 North Africa 
 South Asia 
 
Angola 
Botswana 
Burundi 
Comoros 
Congo. Dem. Rep. 
Djibouti 
Eritrea Ethiopia 
Kenya 
Lesotho 
Madagascar 
Malawi 
Mauritius 
Mozambique 
Namibia 
Reunion 
Rwanda 
Seychelles 
Somalia 
South Africa 
Sudan 
Swaziland 
Tanzania 
Uganda 
Zambia 
Zimbabwe Benin 
Burkina Faso 
Cameroon 
Cape Verde 
Central African Rep. 
Chad 
Congo, Rep. Cote d' Ivoire 
Equatorial Guinea 
Gabon 
Gambia, The 
Ghana 
Guinea 
Guinea, Bissau 
Liberia 
Mali 
Mauritania 
Niger 
Nigeria 
Sao Tome & Principe 
Senegal 
Sierra Leone 
Togo Algeria 
Egypt, Arab Rep. 
Libya 
Morocco 
Tunisia Afghanistan 
Bangladesh 
Bhutan 
British Indian Ocean 
Territory 
East Timor 
India Maldives 
Nepal 
Pakistan 
Sri Lanka 
 
    
 
  G/SG/N/7/PHL/8 
 G/SG/N/8/PHL/8 
 G/SG/N/11/PHL/9 
 Page 5 
  
   
Europe & Central 
Asia Middle East Americas East Asia & Pacific 
Albania 
Armenia 
Azerbaijan 
Belarus 
Bosnia & Herzegovina 
Bulgaria 
Croatia 
Cyprus 
Czech Republic 
Estonia 
Georgia 
Greenland 
Hungary 
Kazakhstan 
Kyrgyz Republic 
Latvia 
Lithuania 
Macedonia, FYR 
Malta 
Moldova 
Poland 
Romania 
Russian Federation 
Slovakia 
Slovenia 
Tajikistan 
Turkey 
Turkmenistan 
Ukraine 
Uzbekistan 
Yugoslavia, Fed. Rep. Bahrain 
Iran, Islamic Rep. 
Iraq 
Israel 
Jordan 
Kuwait 
Lebanon 
Oman 
Qatar 
Saudi Arabia 
Syrian Arab Rep. 
United Arab Emirates 
West Bank & Gaza 
Yemen, Rep. Anguilla  
Antigua & Barbuda 
Argentina 
Aruba 
Bahamas 
Barbados 
Belize 
Bermuda 
Bolivia 
Brazil 
British Virgin Is. 
Cayman Is. 
Chile 
Colombia 
Costa Rica 
Cuba 
Dominica 
Dominican Rep. 
Ecuador 
El Salvador 
Falkland Is. (Malvinas) 
French Guiana 
Grenada 
Guadaloupe 
Guatemala 
Guyana 
Haiti 
Honduras 
Jamaica 
Martinique 
Mexico 
Montserrat 
Netherland Antilles 
Nicaragua 
Norfolk Is. 
Panama Paraguay 
Peru 
Puerto Rico 
St. Helena 
St. Kitts & Navis 
St. Lucia 
St. Pierre & Miquelon 
St. Vincent & the 
Grenadines 
Suriname 
Trinidad & Tobago 
Turks & Caicos Is. 
Uruguay 
US Virgin Is. 
Venezuela American Samoa 
Brunei Darussalam 
Cambodia 
Christmas Is. 
Cocos (Keeling) Is. 
Cook Is. 
Fiji French Polynesia 
Guam 
Hong Kong, China 
Johnston Is. 
Kiribati 
Korea, Dem. Rep. 
Korea, Rep. 
Lao PDR 
Macao, China 
Malaysia 
Marshall Islands 
Micronesia, Fed. Sts. 
Midway Is. 
Mongolia 
Myanmar 
Nauru 
New Caledonia 
Niue 
Northern Marianas Is. 
Palau 
Pitcairn Is. 
Papua New Guinea 
Samoa 
Singapore 
Solomon Islands 
Tokelau 
Tonga 
Tuvalu 
Vanuatu Viet Nam 
Wake Is. 
Wallis & Futuna Is. 
 
  
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