WORLD TRADE
ORGANIZATIONG/SG/N/8/BGR/2
G/SG/N/10/BGR/2G/SG/N/11/BGR/2
3 February 2003
(03-0686)
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
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2,
OF THE AGREEMENT ON SAFEGUARDS
BULGARIA
The following communication, dated 28 January 2003, has been received from the Permanent
Mission of Bulgaria.
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Pursuant to the above-referenced provisions of the WTO Agreement on Safeguards and
taking into account the suggested format for notifi cations under that Article (G/SG/W/1), the Republic
of Bulgaria provides the following notifications to the Committee on Safeguards:
A. NOTIFICATION UNDER ARTICLE 12.1(B) ON FINDING A SERIOUS INJURY OR
THREAT THEREOF CAUSED BY INCREASED IMPORTS AND UNDER
ARTICLE 12.1(C) UPON TAKING A DECISION TO APPLY A SAFEGUARD
MEASURE.
1. Provide evidence of serious injury or threat thereof caused by increased imports
On 16 January 2002 an investigation of the increased imports of ammonium nitrate in
Bulgaria was initiated, notified to the Committee on Safeguards in G/SG/N/6/BGR/3.
In the course of the investigation the Inter-Agency Commission on Safeguard Measures on
Imports of Products in the Republic of Bulgaria reached an affirmative preliminary determination
under Article 8(1) of Regulation No. 300 of the Council of Ministers of 16 December 1996, that
critical circumstances where delay would cause a difficult to repair damage exist, as well as that there isa clear evidence that increased imports of ammonium  nitrate have caused and are threatening to cause
serious injury.  As a result a provisional safeguard measure was introduced on 1 July 2002, notified to
the Committee on Safeguards in G/SG/N/7/BGR/2/Rev.1.G/SG/N/8/BGR/2
G/SG/N/10/BGR/2
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Imports of ammonium nitrate reached the highest level for 3 years in 2001.  Imports for the
year 2001 have increased by 262.31 per cent compared to 1999 and by 328 per cent compared to the
year 2000.
The market share of the domestic producers has decreased.  The pattern of imports has had a
distorting impact on the domestic market with the effect of hampering the structural adjustment of
domestic production.  The investigation revealed evidence of falls in the level of employment.  These
trends directly reflect the changes in sales and production.
Recent restrictions in the form of safeguard and anti-dumping measures in some of the major
ammonium nitrate markets made the ammonium nitrate exports a real and imminent threat to third
countries.  Countries, exports from which are subject to these measures, have significant production
capacities and are among the main importers to the Bulgarian market.
Table 1:  Ammonium Nitrate Data
Data per calendar year 1999 2000 2001
Total sales of ammonium nitrate on the domestic
market (tonnes)344,971 410,957 489,464
IMPORTS
Volume (tonnes) 21,959 17,560 57,601
Market share (%) 6.37 4.27 11.77
DOMESTIC PRODUCTION
Capacity utilisation (%) 37.7 69.2 66.7
Production (tonnes) 565,247 796,462 765,459
Market share (%) 93.63 95.73 88.23
Employment (end of period) – Index 100 76.68 66.65
Source:  Customs Statistics and Ministry of Economy
An examination of factors such as the general downturn in the world market of fertilizers in
1999-2001, which may have contributed to the injury, was conducted.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production (please see also Article 2.1 for the context)
The competent authority has found that there is an absolute increase in the imports of
ammonium nitrate and compared to the domestic consumption.  The rate of increase of imports is
twice as high as the rate of increase of the domestic consumption.
3. Provide precise description of the product involved
Ammonium nitrate, other than in aqueous solution, tariff No. 3102 30 90 0, except the
ammonium nitrate falling within this tariff number but having specific technical characteristics as
described below, which is utilized in the manufacture of explosives.
The ammonium nitrate is white and has a granular physical form.
The ammonium nitrate used for agricultural purposes must meet the requirements of up to
6 per cent oil absorption and consistence of 0.85 g/cm³.G/SG/N/8/BGR/2
G/SG/N/10/BGR/2
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The ammonium nitrate utilized in the manufacture of explosives must meet the requirements
of having not less than 10 per cent oil absorption and a consistence of 0,68-0,78 g/cm³.  The imports
of this kind of ammonium nitrate are negligible.
4. Provide precise description of the proposed measure
Definitive safeguard measure to be taken in relation to imports was proposed.  To remedy or
prevent the serious injury suffered by the Bulgar ian producers of ammonium nitrate it is proposed to
limit imports for a period of three years (including the period of application of the provisional
measure), unless circumstances change so that the measure is no longer necessary.
The remedy is in the form of tariff quota of 40 960 tons during the first year of the application
of the safeguard measure, in excess of which an ad ditional specific duty of 35 USD/TNE is to be paid.
The quota will be administered in accordance w ith the first come–first served principle.
In compliance with Article 5 (2) (a) of the Agreement on Safeguards, and Article XIII of the
GATT 1994, all Members having a substantial interest in supplying the product concerned have the
possibility to obtain the allocation of a specific share in this quota (see Table 2 below).
Table 2 : Allocation of the quota among countries having a
substantial interest in supplying the product
Country Quantity (in tons)
Romania 25,000
Free trade agreements partners, except Romania 7,000
Other countries 8,960
5. Provide proposed date of introduction of the measure
Under Regulation No. 300 of the Council of Ministers of 16 December 1996, a decision
whether to impose safeguard measure is to be taken, in principle within 9 months from the date of the
initiation of the investigation.  In exceptional circumstances the time limit may be extended by a
period of 2 months.  The product for which safeguard measure is proposed is subject to a provisional
safeguard measure, which was set to expire on 28 December 2002.
The safeguard measure was introduced after the Council of Ministers adopted it and on the day
of publication of Regulation No. 315 of the C ouncil of Ministers of 20 December 2002 on the
imposition of a safeguard measure on the imports of  ammonium nitrate in the Republic of Bulgaria
(State Gazette No. 120 of 29 December 2002).
6. Provide expected duration of the measure
Proposed duration of the measure is 3 years, including the period of application of the
provisional safeguard measure.
7. For a measure with duration of more than three years, provide the proposed date for
the review (under Article 7.4) to be held
Not applicable.G/SG/N/8/BGR/2
G/SG/N/10/BGR/2
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8. If the expected duration is over one year, provide expected timetable for progressive
liberalization of the measure
In accordance with Article 7.4 of the Agreement on Safeguards and the relevant provisions of
the Regulation No. 300 of the Council of Ministers of 16 December 1996 the measure shall be
liberalized progressively during the period of its validity, as follows:
- from 28 December 2003 to 28 December 2004 - an increase of 10 per cent of the quota
specified above;
- from 28 December 2004 to 30 June 2005 - an increase of 10 per cent of the half of the
set quantity for the period from 28 December 2003 to 28 December 2004.
9. Information relating to the extension of the measure
Not applicable.
B. NOTIFICATION UNDER ARTICLE 9.1, FOOTNOTE 2 OF THE AGREEMENT ON
SAFEGUARDS OF NON-APPLICATION OF SAFEGUARD MEASURE TO
DEVELOPING COUNTRIES UNDER ARTICLE 1.
1. Specify the measure.
The remedy is in the form of tariff quota of 40 960 tons during the first year of the application
of the safeguard measure, in excess of which an ad ditional specific duty of 35 USD/TNE is to be paid.
The measure is described in the notification under Article 12.1(b) and 1(c) above.
2. Specify the product subject to the measure.
Ammonium nitrate, tariff No. 3102 30 90 0.  The pr oduct has been described in the notification
under Article 12.1(b) and 1(c) above.
3. Specify the developing countries to which the measure is not applied under Article 9.1 of
the Agreement on Safeguards, and the import shares of these countries individually and
collectively
The safeguard measure does not apply to the imports originating from the countries listed in
the Annex to this notification pursuant to Article 9.1, footnote 2.  Each listed country accounts for less
than 3 per cent of ammonium nitrate imports.  Collectively, the listed countries account for less than
9 per cent of total imports of the product involved.
4. Change in the list of developing countries exempted from the safeguard measure pursuant
to Article 9.1
Not applicable.G/SG/N/8/BGR/2
G/SG/N/10/BGR/2
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ANNEX
Countries to which the measure is not applied
pursuant to Article 9.1, footnote 2
United Arab Emirates
Antigua and BarbudaAngola
Argentina
Barbados
Bangladesh
Burkina FasoBahrain
Burundi
Benin
Brunei Darussalam
BoliviaBrazil
Botswana
Belize
Cameroon
Democratic Republic of CongoCentral African Republic
Chad
Chile
Congo
Côte d’Ivoire
Colombia
Costa RicaCuba
Djibouti
Dominica
Dominican Republic
EcuadorEgypt
FijiGabon
GrenadaGhana
Gambia
Guinea
Guatemala
Guinea-BissauHonduras
Haiti
Indonesia
India
JamaicaJordan
Kenya
St Kitts and Nevis
Kuwait
St LuciaSri Lanka
Lesotho
Macao
Morocco
Madagascar
Mali
MyanmarMongolia
Mauritania
Mauritius
Malawi
MexicoMalaysia
MozambiqueNamibia
NigerNigeria
Nicaragua
Oman
Panama
PeruPapua New Guinea
Philippines
Pakistan
Paraguay
QatarRwanda
Solomon Islands
Sierra Leone
Senegal
SurinameEl Salvador
Swaziland
Tanzania (United Republic of)
Thailand
Togo
Tunisia
Trinidad and TobagoUganda
Uruguay
St Vincent and Northern
     Grenadines
VenezuelaZambia
Zimbabwe
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