WORLD TRADE
ORGANIZATIONG/SG/N/6/ECU/4
28 July 2003
(03-4011)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON
SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
ECUADOR
The following communication, dated 15 July 2003, has been received from the Permanent
Mission of Ecuador.
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1. Pursuant to Article 12.1(a) of the WTO Ag reement on Safeguards, I hereby notify the
Committee on Safeguards of the initiation of an investigation relating to serious injury or threat
thereof and the reasons for it, with regard to glazed ceramic flags and paving, hearth or wall tiles(smooth ceramics), classified under NANDINA subheading 6908.90.00.
2. This notification is being made in accordance with the suggested formats for notifications
under the Agreement on Safeguards set out in document G/SG/W/1 of 28 February 1995.
1. Specify the date when the investigation was initiated
The investigation was initiated on 3 July 2003, pursuant to Resolution No. 03 038 of the
Under-Secretary for Foreign Trade and Integrati on of the Ministry of Foreign Trade, Industry,
Fisheries and Competitiveness, published in Official Register No. 117 of the same date.
2. Specify the product subject to the investigation
Glazed ceramic flags and paving, hearth or wall tiles, classified under NANDINA national
tariff subheading 6908.90.00.
3. Provide the reasons for the initiation of investigation
(i) Was the investigation initiated pursuant to a petition from the domestic
industry?
This investigation was initiated at the request of C.A. Ecuatoriana de Cerámica,
Cerámica Rialto S.A. and Cerámicas Graiman Cía. Ltda., companies that account for80 per cent of the domestic industry.G/SG/N/6/ECU/4
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(ii) Evidence on the basis of which the investigation was initiated
There is evidence of a decline in domestic industry sales on the domestic market.
Massive imports of the product are proving to be detrimental to the economic
situation of the requesting companies having led, inter alia , to negative rates of
return.  Furthermore, there has been a marked decline in the utilization of the installedcapacity of the companies concerned, which is having an adverse affect on the
product's competitiveness and on the general outlook of the companies.
(iii) Evidence, if any, of critical circumstan ces where delay would cause injury that
would be difficult to repair
There has been a sharp decline in domestic production as a result of the rapid increase
of imports, suggesting the existence of critical circumstances that would cause injuryto the domestic production of the product concerned that would be difficult to repair.G/SG/N/6/ECU/4
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OFFICIAL REGISTER NO. 117
THURSDAY, 3 JULY 2003
No. 03 038
THE UNDER-SECRETARY FOR FOREIGN TRADE AND INTEGRATION
OF THE MINISTRY OF FOREIGN TRADE, INDUSTRY,
FISHERIES AND COMPETITIVENESS
Whereas:
In a communication dated 27 May 2003, Mr  Carlos Crespo Seminario, Mr Xavier Valdivieso
and Mr Alfredo Peña Payró, acting as representatives respectively of the companies
C.A. ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO S.A. and CERÁMICAS GRAIMAN
CIA. LTDA. domiciled in the town of Cuenca, Ecuado r, requested the initiation of an investigation
process with a view to introducing a safeguard m easure, as provided for under WTO law, consisting
of a customs duty, in addition to those that already apply in Ecuador, on imports of the products
contained under NANDINA subheading 6908.90.00, for a period of four (4) years;
Under Article XIX of the General Agreement on Tariffs and Trade, the WTO Agreement on
Safeguards and the provisions of Titles XVII and XVIII of the Consolidated Legal Text of theMinistry of Foreign Trade, Industry, Fisheries and Competitiveness (MICIP), as reflected in
Executive Decree No. 3497, which was published in Official Register No. 744 of 14 January 2003 and
establishes  the rules and procedures to prevent and counteract the effects of increased imports under
such conditions as to cause or threaten to cause serious injury to domestic producers of like or directly
competing goods, countries may introduce safeguard measures;
The companies C.A. ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO S.A. and
CERÁMICAS GRAIMAN CIA. LTDA. account for 80 per cent of the domestic production of
ceramic products;
The product under investigation consists of glazed ceramic flags and paving, hearth or wall
tiles, classified under NANDINA national import tariff subheading 6908.90.00;
Under Title XVIII, Article 307 of the Consolidated Legal Text of the MICIP, it is the
responsibility of the Under-Secretary for Foreign Trade and Integration of the Ministry of Foreign
Trade, Industry, Fisheries and Competitiveness to declare the initiation of an investigation;
According to the information supplied by the Central Bank of Ecuador, the countries that are
exporting the products classified under NANDI NA subheading 6908.90.00 and whose exports are
causing serious injury to domestic production are: Netherlands Antilles, Laos, Canada, Colombia,
Chile, United States of America, Haiti, Hong  Kong, Curaçao, Jamaica, Mexico, Panama, Peru,
Puerto Rico, Dominican Republic, Norway and Venezuela;
According to the information supplied by the Central Bank of Ecuador, the following natural
and legal persons have been identified as domestic importers: Acerolaw Cía. Ltda.;  Agrícola Oficial
SA. Agroficial;  Almacenes Boyacá SA.;  Álvarez León Juan Carlos;  Álvarez Mora Gina Azucena;
Italgress;  Ambientes Hogar 2000 Cia. Ltda.;  American Hardware SA.;  Andrade Roldan José
Antonio;  Anke Naumann;  Arel lano Muñoz Nelson Fernando;  Argüel lo Espinoza Rodrigo;  Arketips
CA.;  Armando Reyes Carpio;  Baldosines Alfa Cía. Ltda.;  Baquerizo Seifert José;  Benklo S.A.;
Bestranding;  Blanca Yolanda Regalado;  Bravo León Franklin Antonio;  C.A. Ecuatoriana de
Cerámica;  Canamérica Internacional Trade;  Cargo Sur Express;  Carlos Collantes Ubilla;  CarreraG/SG/N/6/ECU/4
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Estarellas Francisco Vicente;  Carrión Maldonado  Diego Hernando;  Cenyca S.C.C.;  Cerámica Pella;
Cerámica Rialto S.A.;  Cerlux Industria Comercio y Representaciones Cía.;  Cevallos Balseca
Segundo Gustavo;  Chujón Sam Roberto;  Comercial Carchi Benavides Silvia;  Comercial CCI Cía.
Ltda.;  Comercial Ginatta S.A.;  Comercial Héctor Herdoíza C. Cía. Ltda.;  Comercial Kywi S.A.;
Comercio Construcción y Reposición C.C.R. Cía. Ltda., Compañía Anónima Practicasa;  CONAUTOC.A. Automotriz;  Conegocios Corporación de Nego cios Cía. Ltda.;  CONM ACO & Cía.;  Consorcio
Grusmán Cia. Ltda.;  Construacabados Cía. Ltda.;  COOSUR S.A.;  Córdova Godoy, Wladimiro
Xavier, Coronel Salcedo Mireya Elizabeth, Corpceramic S.A.;  Dgres Pisos y Techos S.A.;  Daniel
Murillo Vinza, Daronti S.A.;  Decortinas Cía. Ltda .;  Depconmaco, Dibeal Ci a. Ltda.;  Diego Reyes
Gonzales. Distrib. Mater. Construí. y Elect. Sani elec, Distrib. Nac. de Art. de la Construcción;
Di Cía. Ltda.;  Duramas Cía. Ltda.;  Durán Erazo Miriam Targelia, ECUAMEFAL S.A.;  Ecuatoriana
de Filtros ECUAFILTROS SA.;  Edith Gutiérrez Moya;  Electrocables C.A.;  Electronic AmusementS.A.;  Empresa de Televisión Stelcom S.A.;  Espinoza Larriva Thalia del Carmen;  Furogress S.A.;
Europisos SA.;  Exportadora e Importadora Ferridalgo S.A.;  Fracomed, Fernando Gamboas;
Fernando Joselito Osorio Bastidas;  Flexiplast S.A.;  Francisco Fernando Lara Carranco;  Fundación
Malecón 2000;  Galo Patricio Dávalos Muirragui;  Gerardo Ortiz e Hijos;  Gilberto Guerrero Franco;
Godoy Almeida Cristian Fernando, Graiman Cía. Lt da.;  Granito, Baldosas, Pisos y Algo Más SA.,
Balpisa;  Grifería y Sanitarios S.A. 'Grifersa', Grupo Comercial Termikón Cía. Ltda.;  Guerra Bosano
Maria Cristina;  Guido Esteban Macchiavello Almeid a;  H.O.V. Hotelera Quito S.A.;  Han Tongzhen,
Hegagres S.A.;  Helsin S.A.;  Hernán Cabezas Ro dríguez;  Hwang Chang Chih Yung;  Hwang Chang
Chung Pin;  Ibarra Tulcanaza Irene Guadalupe;  lmbagres del Ecuador;  Imporpisos Cía. Ltda.;
Importaciones Abramowicz Ricaurte A.R.;  Importaciones Lineas Exclusivas en Acabados;Importadora Alaska Imporalaska;  Importadora El  Rosado Cía. Ltda.;  Importadora Vega S.A.;
Importadora y Distribuidora Zhong Xing Cia. Ltda .;  Industria Ecuamármol SA.;  Inmobiliaria
Almarti Cia. Ltda.;  Inmobiliaria Prat SA.;  Italgress S.A.;  ltalibérica Trading S.A.;  Jabeco;  Javier
Renán Rosero Fierro;  Jorge Alejandro Yépez Acosta;  Jorge Núnez Calvachi, José Milton Mullo
Sandoval;  Juan Valladares Garzón;  Julio César Astudillo Pacheco;  Karinflowers SA.;  Krajisol S.A.:La Llave SA. de Comercio;  Lichelani S.A.;  Ligia de Jesús Bobadilla de Valencia, Lih Tsong Chan
Hwang;  Lislop S.A.;  Madeco;  Marcelo Villagóm ez, Marjorie Marisol Delgado Tapia;  Marraco de
los Arcos Antonio;  Materiales para Decoración Decorcasa Cía. Ltda.;  Matexsain del Ecuador S.A.;
Mega Constructora Cía. Ltda.;  Mesorio S.A.;  Microtimes S.A.;  Miranda Castrillón Gladis
Susana/Pisos;  Mullo Proaño Diego;  Mullo Sandoval José Milton;  Multipunto C. Ltda., Mundiferro
C.A.;  El Mundo Ferretero Importaciones;  Mundom armi SA.;  Muñoz Urgiles Jorge Fernando;
Narváez Cordero Jorge Estuardo;  Nogales Massuh Pedro Aurelio;  Pauta Astudillo Julio Hernán;Plásticos del Litoral Plastlit S.A.;  Plásticos Industriales CA.;  Pollo Favorito S.A. Pofasa;  Proaño
Zambrano Víctor Hugo;  Prohogar Cia. Ltda., Prom ulsa Productos Multiples S.A.;  Proveedora para
Metalmecánica e Industria;  Puma Mayancela Luis Alberto;  Pycca S.A.;  Quiroz Ayala Tobías
Rodrigo;  Quiroz Ayala Ximena Yolanda;  Ramiro Sánchez Tirape;  Reyes González Diego Fernando;
Riviera Rigsa SA.;  Roberto Toledo Soria;  Rura lsa SA.;  Saud Benítez Wabib Estefano;  Savoma
S.A.;  Solano Merino Greta Marino de Medina;  Sozoranga Sandoval Anita Teresa, Supertrade SA.;
Tamayo Escandón Iván Patricio;  Trade Vannucci Sala zar Cía. Ltda.;  Tulio Alberto Delgado López;
Universidad de Guayaquil;  Ursatrex S.A.;  Válvulas Industriales S.A.;  Vavinsa, Vargas Fernando;
Villarreal Mafia Hugo Ignacio;  Villarreal Rubio Importadores SA.;  Villarreal Villacís Alicia Cecilia;
Villarreal Villacís Hernán Oswaldo;  Villarreal Villacís Luis Alfredo;  Villarreal Villacís Melva;Villarreal Villacís Melva Beatriz;  Villarreal Villacís Susana E.;  Wahib Saud Benítez;  Worlnet Cia.
Ltda.;  Zamora Carrera Fausto;
According to the information supplied by the requesting companies, the massive imports of
glazed ceramic flags and paving, hearth or wall tiles are capturing a large share of the domesticmarket;
The companies C.A. ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO S.A. and
CERÁMICAS GRAIMAN CIA. LTDA., in conformity with Article 4.2(a) of the WTO Agreement onG/SG/N/6/ECU/4
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Safeguards and Title XVII, Article 302 of the Consolidated Legal Text of the MICIP, submitted
information relating to the level of sales, production, productivity, capacity utilization, profits and
losses and employment, which leads to the presumption of serious injury to the domestic industry;
The request submitted by the compan ies C.A. ECUATORIANA DE CERÁMICA,
CERÁMICA RIALTO SA. and CERÁMICAS GRAIMAN CIA. LTDA. meets the requirements set
out in current legislation;
The investigating authority has sufficient eviden ce to justify the initiation of an investigation;
and,
In the exercise of its powers,
Decides:
Article 1 - To accept and initiate the investigation requested by the companies C.A.
ECUATORIANA DE CERÁMICA, CERÁMICA RIALTO SA. and CERÁMICAS GRAIMAN CIA.LTDA., legal persons of Ecuadorian nationality, to determine whether the massive increase in imports
of glazed ceramic flags and paving, hearth or wall tiles under NANDINA tariff subheading
6908.90.00 is causing serious injury to domestic production.
Article 2 – That the products under investigation are glazed ceramic flags and paving, hearth
or wall tiles classified under NANDINA national import tariff subheading 6908.90.00 that are like or
directly competing with domestically manufactured products.
Article 3 – That pursuant to Title XVIII, Artic le 310 of the Consolidated Legal Text of the
MICIP, the investigation process shall take place over a period of three months from the date of thepublication of this Resolution in the Official Register.  This period will be extendable in exceptional
circumstances in accordance with the procedures established in Article 3 of the WTO Agreement on
Safeguards with regard to providing public notice to all interested parties and arranging public
hearings or other appropriate means in which importers, exporters and other interested parties can
present evidence and their views, including the oppo rtunity to respond to the presentations of other
parties and to submit their views, inter alia , as to whether or not the application of a safeguard
measure would be in the public interest.
Article 4 – That the investigation period shall cover the years 2000, 2001, 2002 and the
months of 2003 to date.
Article 5 - To treat any confidential information supplied by CA. ECUATORIANA DE
CERÁMICA, CERÁMICA RIALTO S.A. and CERÁMICAS GRAIMAN CIA. LTDA. as such.
Article 6 – That pursuant to Article 12.1(a) of the WTO Agreement on Safeguards and
Title XVIII, Article 331 of the Consolidated Legal Text of the MICIP, the investigating authority shall
notify the WTO Committee on Safeguards and the interested parties concerning the initiation of theinvestigation.
Article 7 – In accordance with Title XVIII, Article 330 of the Consolidated Legal Text of the
MICIP, to ensure that this resolution is published in the Official Register as well as in a widely
circulated newspaper in Ecuador.
Done in Quito on 18 June 2003.
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