WORLD TRADE
ORGANIZATIONG/SG/N/8/CZE/6
G/SG/N/10/CZE/6G/SG/N/11/CZE/7
4 September 2003
(03-4633)
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
CZECH REPUBLIC
(Ammonium Nitrate)
The following notification, dated 28 August 2003, has been received from the Permanent
Mission of the Czech Republic.
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Pursuant to Articles 12.1 (b), 12.1(c) and 9 footnote 2 of the Agreement on Safeguards and, in
light of the agreed format for notifications (G/SG/W/1, 23 February 1995), the Czech Republic hereby
submits notifications to the Committee on Safeguards on finding serious injury or threat thereofcaused by increased imports, on taking a decision to apply safeguard measure, and on taking a
decision not to apply that measure to products originating in developing countries.
The previous notifications concerning an initiation of the investigation, an imposition of a
provisional measure as well as the decision not to apply the measure to developing countries underArticle 9.1 of the Agreement on Safeguards, can be found in documents  G/SG/N/6/CZE/8 and
G/SG/N/7/CZE/4 and G/SG/N/11/CZE/4.
This notification contains all pertinent information relating to the proposed safeguard measure
in accordance with Article 12.2 of the Agreement on Safeguards.G/SG/N/8/CZE/6
G/SG/N/10/CZE/6
G/SG/N/11/CZE/7
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I. NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT THEREOFCAUSED BY INCREASED IMPORTS
II. NOTIFICATION PURSUANT TO ARTICLE 12.1(C) OF THE AGREEMENT ON
SAFEGUARDS
1. Evidence of serious injury or threat thereof caused by increased imports
2. Information on whether there is an absolute in crease in imports or an increase in import
relative to domestic production
The imports of product in question represents increase of 55.6 per cent in 2001, compared to
the three year average of 1998-2000.  This trend remained unchanged in the first three quarters of2002 and changed only in the last quarter of 2002.
Year Imports of ammonium nitrate (tons)
1998 43,774
1999 40,425
2000 71,486
2001 80,757
2002 73,964
The share of imports to the domestic production increased by 6 percentage points in 2000
compared with 1999, by 4 percentage points in 2001 compared with 2000 and by 2 percentage points
in 2002 compared with 2001.  In addition, the imports have taken place at very low prices thatdecreased by 10 per cent in 2002 compared to 2001.
As a result of the increase in imports, the production, capacity utilisation, sales, profitability
of domestic industry have declined during the investigation period.  A similar trend is identified in
respect of stocks, employment and productivity:
1999 2000 2001 2002
Utilisation rate of capacity
(in %)86.9 99.8 92.3 76.7
Total production volume in
tonnes, expressed in %100 115 106 88
   Total sales volume in tonnes,
  expressed in %100 142 118 90
Export sales volume in tonnes,
expressed in %100 123 87 72
Domestic sales volume in
tonnes, expressed in %100 194 203 139
Unit price of domestic sales,
expressed in %100 103 117 98
Net profit/loss on domestic
market sales (in %)3.8 21.90 19.0 2.1G/SG/N/8/CZE/6
G/SG/N/10/CZE/6
G/SG/N/11/CZE/7
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1999 2000 2001 2002
Closing stocks in tonnes,
expressed in %100 35 48 60
Employment expressed in % 100 79 80 69
Productivity (tonne/employee) 747 1092 996 964
Taking account of all relevant economic factors, it has been determined by the investigating
authority - Ministry of Industry and Trade - that the domestic industry has suffered serious injury.
It is considered that there is a causal link between the increased ammonium nitrate imports
and reduced sales volumes of the like or directly competing product.  This is demonstrated by thecoincidence in time between the increase in imports and deterioration of the injury indicators.
The Ministry took into consideration and evaluated other factors, which might have effect on
the existing injury to the domestic industry, especially an import of nitre (mixture of ammonium
nitrate with calcium carbonate or other inorganic substances) and its agricultural utilisation incomparison with the product in question. It was found that such circumstances did not cause the
serious injury suffered by the domestic industry, in particular on the ground of comparability and non
injurious import prices of nitre.
It is concluded that the increased imports of ammonium nitrate and their conditions
(especially pricing), caused and still threaten to cause serious injury to the domestic industry.
3. Precise description of the product involved
The product subject to the safeguard measure is ammonium nitrate - a solid nitrogen fertilizer
commonly used in agriculture, falling within CN code 3102 30 90 (ammonium nitrate, whether or not
in aqueous solution; other).
4. Precise description of the proposed measure
The Ministry of Industry and Trade proposed the safeguard measure in the form of additional
tariff duty of 5 per cent to be applied to the imported product in question. No additional duty will beapplied to imports of product in question with the declared customs value above CZK 4,200.
Developing countries - Members of WTO - are excluded from the application of the measure
in accordance with the provision of Article 9.1 of the Agreement on Safeguards.
5. Proposed date of introduction of the measure
The measure entered into force on 22 August 2003 by a publishing Government Order
No. 272/2003 Sb., in the Collection of Laws of the Czech Republic (Sbírka zákon ů).
6. Expected duration of the measure
The proposed safeguard measure will be applied up to 30 April 2004.G/SG/N/8/CZE/6
G/SG/N/10/CZE/6
G/SG/N/11/CZE/7
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7. Not applicable
8. Not applicable
9. Not applicable
III. NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION
NOT TO APPLY THOSE PROVISIONAL SAFEGUARD MEASURES TO CERTAIN
PRODUCTS ORIGINATING IN DEVELOPING COUNTRIES.
1. Specify the measure
See response to question 4 above.
2. Specify the product subject to the measure
See response to question 3 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 developing countries to which the measure is not applied under Article 9.1 of the
Agreement on Safeguards are the members of the WTO listed in Government Order No. 534/2002
Coll., issuing the Customs Tariff and establishing rates of import tariffs on goods originating in
developing countries and least developed countries and the terms for their application.  A list of these
countries is attached in Annex 1 to this notification.
4. Not applicable.G/SG/N/8/CZE/6
G/SG/N/10/CZE/6
G/SG/N/11/CZE/7
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ANNEX
AL Albania LS Lesotho
DZ Algeria MG Madagascar
AG Antigua and Barbuda MY Malaysia
AR Argentina MW Malawi
BH Kingdom of Bahrain MV Maldives
BD Bangladesh ML Mali
BB Barbados MR Mauritania
BZ Belize MU Mauritius
BJ Benin MX Mexico
BO Bolivia MD Moldova
BW Botswana MN Mongolia
BR Brazil MA Morocco
BN Brunei Darussalam MZ Mozambique
BF Burkina Faso MM Myanmar
BI Burundi NA Namibia
CM Cameroon NI Nicaragua
CF Central African Republic NE Niger
TD Chad NG Nigeria
CL Chile OM Oman
CN China PK Pakistan
CO Colombia PA Panama
CG Congo PG Papua New Guinea
CR Costa Rica PY Paraguay
CI Côte d’Ivoire PE Peru
CU Cuba PH Philippines
CD Democratic Republic of the Congo QA Qatar
DJ Djibouti RW Rwanda
DM Dominica LC Saint Lucia
DO Dominican Republic VC Saint Vincent and the Grenadines
EC Ecuador SN Senegal
EG Egypt SL Sierra Leone
SV El Salvador SB Solomon Islands
FJ Fiji ZA South Africa
GA Gabon LK Sri Lanka
GM Gambia SR SurinameG/SG/N/8/CZE/6
G/SG/N/10/CZE/6
G/SG/N/11/CZE/7
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GE Georgia SZ Swaziland
GH Ghana TZ Tanzania
GD Grenada TH Thailand
GT Guatemala TG Togo
GN Guinea TT Trinidad and Tobago
GW Guinea-Bissau TN Tunisia
GY Guyana UG Uganda
HT Haiti AE United Arab Emirates
HN Honduras UY Uruguay
IN India VE Venezuela
ID Indonesia ZM Zambia
JM Jamaica ZW Zimbabwe
JO Jordan
KE Kenya
KW Kuwait
KG Kyrgyz Republic
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