G/SG/N/6/TUR/13/Suppl.1 G/SG/N/7/TUR/11 G/SG/N/11/TUR/11/Suppl.1 Page 1

G/SG/N/6/TUR/13/Suppl.1
G/SG/N/7/TUR/11
G/SG/N/11/TUR/11/Suppl.1
Page 1

World Trade
Organization
G/SG/N/6/TUR/13/Suppl.1
G/SG/N/7/TUR/11
G/SG/N/11/TUR/11/Suppl.1
8 November 2011
(11-5701)
Committee on Safeguards / Original: English

notification under article 12.1(a) of theagreement
on safeguards on initiation of an investigation
and the reasons for it

notification under article 12.4 of the agreement
on safeguards before taking a provisional
safeguard measure referred to in article 6

NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2
OF THE AGREEMENT ON SAFEGUARDS

turkey

(Certain Electrical Appliances)

The following communication, dated 25October 2011, is being circulated at the request of the Delegation of Turkey.

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We enclose a notification pursuant to Article 12.1(a) of the Agreement on Safeguards, on initiation of a safeguard investigation to review the safeguard measure that is being applied against imports of certain electrical appliances; a notification pursuant to Article12.4 of the Agreement on Safeguards, before taking a provisional safeguard measure against imports of certain electrical appliances; and a notification pursuant to Article 9, footnote 2 of the Agreement on Safeguards, on taking a decision not to apply the measure to products originating in developing countries.

A.Notification under Article 12.1(a) of the Agreement on Safeguards on Initiation of an Investigation (Extension of the Existing Measure) and the Reasons for it

1.The date when the investigation was initiated

The Communiqué related to the initiation of an investigation was published in the Official Gazette on 12 October 2011.

2.The product subject to the investigation

The products under investigation are hereinafter referred to as "the products concerned".

The Harmonized System (HS) Codes within Turkish Customs Tariff Schedule and descriptions of the products concerned are listed in the table below.

Product / HS Code / Description of the Product
Product 1 / 8509.40.00.00.11 / Grinders
8509.40.00.00.12 / Mixers
8509.40.00.00.13 / Blenders
8509.40.00.00.15 / Complete sets
8509.40.00.00.19 / Others
8509.80.00.00.11 / Mincing appliances
Product 2 / 8516.60.90.00.11 / Toasters
Product 3 / 8516.31.00.00.19* / Others
Product 4 / 8508.11.00.00.19 / Others

* Turkish Customs Tariff Code of the concerned product was 8516.31.90.00.00 in the application, but it has changed in 2011. The concerned product is now classified under 8516.31.00.00.19.

3.WTO documents

The initial application of the existing safeguard measure was notified in the documentnumbered G/SG/N/8/TUR/10-G/SG/N/9/TUR/4-G/SG/N/10/TUR/10-G/SG/N/11/TUR/11 dated 22August 2008.

4.The reasons for the initiation of investigation

The investigation was initiated upon an evaluation of a safeguard petition from the domestic industry and on the basis of the evidence and the information contained therein.

The information currently available indicates that imports of the product concerned dropped significantly in 2009 with the imposition of the safeguard measure, and then imports began to increase again in 2010. Although the market share of imports has declined significantly following the imposition of the safeguard measure, it still constitutes a major share of the domestic market. On the other hand, while the domestic industry is still in an adjustment process, the latest trends imply that the market share of imports is on the rise.

Import figures and economic indicators of the domestic industry are provided in the following sections.

5.Further information

Those who fill out and send "Application Form for the Interested Party" to the competent authority within the period of 20 days after the promulgation of the related Communiqué are accepted as interested parties in the investigation.

The competent authority shall provide a "username" and a "password" to each interested party. The username of the interested party shall be the e-mail address specified in the "Application Form for the Interested Party". Logging in with the username and password, the interested parties are required to fill out "Online Questionnaire for the Interested Party", available at http://www.ekonomi.gov.tr/ithgozetim/index.cfm, within the period of 30 days after the promulgation of the related Communiqué. Interested parties are free to ask for the technical assistance to the competent authority during filling out "Online Questionnaire for the Interested Party".

Interested parties may state, in the "Application Form for the Interested Party", their request to be heard by the competent authority.

"Application Form for the Interested Party" is available in the web address below. Also, the date and venue of the hearing and other announcements regarding the investigation is accessible on the same address.

http://www.tpsa.gov.tr/index.cfm?sayfa=A231B55C-D8D3-8566-4520C970FEB9CE71

The address of the competent authority for correspondence is:

Republic of Turkey Ministry of Economy

Directorate General for Imports, Department of Safeguards

İnönü Bulvarı, No:36

06510 Emek/AnkaraTURKEY

Tel: +90 (312) 204 75 31 / +90 (312) 204 77 03

Fax: +90 (312) 212 87 65

Web page: http://www.economy.gov.tr

E-mail:

B.Notıfıcatıon under Artıcle 12.4 before takıng a Provısıonal Safeguard Measure

1.The products subject to the proposed provisional safeguard measure

The product subject to the proposed provisional safeguard measure are certain electrical appliances. The Harmonized System (HS) Codes within Turkish Customs Tariff Schedule and descriptions of the products concerned are listed in the table below.

* Turkish Customs Tariff Code of the concerned product was 8516.31.90.00.00 in the application, but it has changed in 2011. The concerned product is now classified under 8516.31.00.00.19.

2.The proposed provisional safeguard measure

It is proposed to impose provisional safeguard measure in the form of additional duty as listed in the table below for a period of maximum 200 days.

HS Code / Description of the Product / Additional Duty
(USD per piece)
8508.11.00.00.19 / Others / 4,75
8509.40.00.00.11 / Grinders / 3,75
8509.40.00.00.12 / Mixers / 3,75
8509.40.00.00.13 / Blenders / 3,75
8509.40.00.00.15 / Complete sets / 5,70
8509.40.00.00.19 / Others / 3,75
8509.80.00.00.11 / Mincing appliances / 5,70
8516.31.00.00.19 / Others / 3,75
8516.60.90.00.11 / Toasters / 4,75

3.Entry into force of the proposed provisional safeguard measure

The provisional safeguard measure is proposed to enter into force from 1 November 2011, with the publication of the approval of the Council of Ministers in the Official Gazette.

4.The expected duration of the provisional safeguard measure

The decision whether or not to extend the existing safeguard measure will be made at the end of the investigation. Therefore the provisional safeguard measure shall be applied during the investigation period. In any case, the provisional safeguard measure shall last for maximum 200 days.

5.The basis for:

(i)Making a preliminary determination, as provided for in Article 6, that increased imports have caused or are threatening to cause serious injury

The evidence relating to the serious injury suffered by the domestic industry as a result of theincrease in imports of the products concerned had been notified with thedocumentG/SG/N/8/TUR/10-G/SG/N/9/TUR/4-G/SG/N/10/TUR/10-G/SG/N/11/TUR/11 dated 22August2008. Accordingly, a safeguard measure against imports of "certain electrical appliances" for a period of 3 years was put into force on 1 November 2008. Information on the changes in the level of imports and certain economic indicators of the domestic industry that were recorded during the period the safeguard measure has been applied is provided below.

CHANGE IN IMPORTS

Imports / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1
(Excluding 8509.80.00.00.11)
(Thousand Pieces) / 2,018 / 2,209 / 2,221 / 1,868 / 455 / 603
8509.80.00.00.11
(Tons) / 213 / 528 / 1,390 / 174 / 114 / 120
Product 2
(Thousand Pieces) / 449 / 538 / 834 / 840 / 394 / 331
Product 3
(Thousand Pieces) / 1,584 / 1,483 / 1,798 / 1,836 / 445 / 693
Product 4
(Thousand Pieces) / 401 / 494 / 558 / 714 / 210 / 327

After the imposition of the safeguard measure in 2008, in each category, the imports have declineddramatically. However,the imports increased in each category except Product 2 in 2010.

Imports / Production % / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 (Excluding 8509.80.00.00.11)* / 139 / 123 / 134 / 133 / 35 / 35
Product 2 / 244 / 131 / 175 / 192 / 77 / 52
Product 3 / 1.199 / 1.888 / 3.619 / 4.745 / 238 / 97
Product 4 / 285 / 444 / 544 / 912 / 264 / 191

*Domestic production figures of 8509.80.00.00.11 "Mincing appliances" were given in pieces whereas imports figures are in tons.

The ratio of imports to domestic production declined dramatically after the safeguard measure imposed in 2008, but it continues to remain relatively high.

Market share of imports % / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 / 81 / 78 / 83 / 81 / 40 / 39
Product 2 / 75 / 68 / 72 / 78 / 54 / 75
Product 3 / 92 / 95 / 97 / 98 / 71 / 51
Product 4 / 81 / 86 / 89 / 93 / 76 / 68

Following the imposition of the safeguard measure, market share of imports gradually declined except Product 2. In 2010, the share of imports declined to its lowest level.

ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY

A preliminary analysis to assess the impacts of the existing safeguards on the situation of the domestic industry was carried out. In this analysis, data submitted by a major association which its members constitute major proportion of domestic production, were utilized.

(i)Consumption

Consumption / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1
(Excluding 8509.80.00.00.11)*
(Thousand Pieces) / 2.488 / 2.828 / 2.674 / 2.315 / 1.123 / 1.563
Product 2
(Thousand Pieces) / 600 / 851 / 1.220 / 1.124 / 810 / 815
Product 3
(Thousand Pieces) / 1.713 / 1.569 / 1.850 / 1.876 / 628 / 1.349
Product 4
(Thousand Pieces) / 494 / 577 / 629 / 766 / 275 / 483

*Domestic sales figures of 8509.80.00.00.11 "Mincing appliances" were given in pieces whereas imports figures are in tons.

The consumption of the goods in each category declined in 2009. This decline stemmed from the safeguard measure and the impacts of financial crisis that hit the world in 2009.

(ii)Production

Domestic Production / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1
(Thousand Pieces) / 1.472 / 1.806 / 1.674 / 1.428 / 1.327 / 1.755
Product 2
(Thousand Pieces) / 184 / 410 / 476 / 437 / 514 / 637
Product 3
(Thousand Pieces) / 132 / 79 / 50 / 39 / 187 / 715
Product 4
(Thousand Pieces) / 140 / 111 / 103 / 78 / 79 / 171

The production in each category increased gradually after the imposition of the safeguard measure except the decrease in Product 1 in 2009.

(iii)Capacity and Capacity Utilization Rate (CUR)

Capacity / 2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2010(6) / 2011(6)
Product 1
(Thousand Pieces) / 1.924 / 2.163 / 3.145 / 3.145 / 3.470 / 3.870 / 1.935 / 1.935
Product 2
(Thousand Pieces) / 250 / 500 / 550 / 700 / 700 / 830 / 415 / 508
Product 3
(Thousand Pieces) / 1.250 / 1.250 / 1.250 / 1.250 / 1.400 / 1.840 / 920 / 1.275
Product 4
(Thousand Pieces) / 196 / 200 / 200 / 200 / 200 / 200 / 100 / 100
Capacity Utilization Rate (%) / 2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2010(6) / 2011(6)
Product 1 / 77 / 83 / 53 / 45 / 38 / 45 / 44 / 46
Product 2 / 74 / 82 / 87 / 62 / 73 / 77 / 72 / 86
Product 3 / 11 / 6 / 4 / 3 / 13 / 39 / 29 / 51
Product 4 / 72 / 56 / 51 / 39 / 40 / 85 / 68 / 67

Following the imposition of the safeguard measure, the domestic industry has increased its production capacity. Despite an increase in capacity utilization rate, domestic producers used less than half of their capacity in Product 1 and Product 3 in 2010.

(iv)Domestic Sales

Domestic Sales / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1
(Thousand Pieces) / 489 / 636 / 474 / 464 / 689 / 986
Product 2
(Thousand Pieces) / 151 / 314 / 386 / 284 / 416 / 484
Product 3
(Thousand Pieces) / 129 / 85 / 52 / 40 / 183 / 655
Product 4
(Thousand Pieces) / 94 / 83 / 70 / 51 / 65 / 156

Following the imposition of the safeguard measurein 2008, domestic sales increased gradually.

(v)End of Period Inventories

Inventories (Pieces) / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 / 56,425 / 62,140 / 32,955 / 35,548 / 23,524 / 144,569
Product 2 / 8,944 / 14,032 / 13,341 / 79,405 / 29,864 / 77,623
Product 3 / 14,212 / 7,570 / 5,732 / 4,272 / 6,968 / 44,643
Product 4 / 7,264 / 3,296 / 2,097 / 2,285 / 4,088 / 1,494

Inventories of domestic industry increased between 2009 and 2010 except for Product 4.

(vi)Employment

Employment (Persons) / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 / 345 / 408 / 406 / 398 / 384 / 427
Product 2 / 82 / 184 / 178 / 178 / 247 / 282
Product 3 / 49 / 42 / 36 / 33 / 47 / 107
Product 4 / 32 / 25 / 23 / 20 / 20 / 37
Total / 508 / 659 / 643 / 629 / 698 / 853

The employment figures of the domestic industry increased by 35,6 per cent between 2008–2010.

(vii)Productivity

Productivity
(Piece/Person) / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 / 4,267 / 4,426 / 4,124 / 3,587 / 3,455 / 4,109
Product 2 / 2,243 / 2,226 / 2,674 / 2,456 / 2,081 / 2,261
Product 3 / 2,697 / 1,870 / 1,380 / 1,172 / 3,970 / 6,683
Product 4 / 4,385 / 4,444 / 4,463 / 3,915 / 3,975 / 4,621

Labor productivity of domestic industry has increased significantly in 2010.

(viii)Profits

Profitability
(%) / 2005 / 2006 / 2007 / 2008 / 2009 / 2010
Product 1 / 1 / 0 / -2 / -2 / 0 / 1
Product 2 / 2 / 1 / 5 / 5 / 4 / 7
Product 3 / 18 / 6 / 7 / -15 / 7 / 9
Product 4 / 26 / 20 / 9 / 7 / -5 / 16

Profitability of the domestic industry increased from 2009 to 2010.

CONCLUSION

The assessment of the data available from domestic industry reveals that economic indicators have improved after the implementation of the safeguard measure. However this improvement in the economic indicators and adaptation of the domestic producers to the competitiveness of the industry has interrupted by the financial crisis that hit the world, which has caused significant decrease in the domestic demand. Therefore, it can be alleged that domestic industry did not benefit to some extent because of the imposition of the safeguard measure due to the financial crisis in 2009.

The findings of the preliminary determination show that the domestic industry managed to implement an extensive adjustment plan. After imposition of the safeguard measure, domestic industry has made new investments and introduced new models. However the adaptation and the rehabilitation process of the domestic industry has not completed yet.

(ii)Determining the existence of critical circumstances where delay would cause damage which it would be difficult to repair

The safeguard measure that is currently being applied against imports of the products concerned entered into force on 1 November 2008 and will come to an end on 31 October 2011.

It was determined, in the preliminary analysis that, import data of 2009 and 2010 reflect the impact of the safeguard measure. In general, domestic industry increased its market share in 2009 and2010. Moreover, preliminary figures reveal that certain figures relating to domestic industry show positive trend during the period that the safeguard measure has been implemented.

However, by 2010 imports began to increase again by around 30 per cent. On the other hand, whereas economic indicators of the domestic industry slightly improved, imported products continue to have a major share in the domestic market within the years of 2009 and 2010 during which the safeguard measure was in force.

Therefore, bearing in mind that a sudden and significant increase in the imports of the products concerned after the end of the 3-year period could negatively affect the recovery period of the domestic industry and cause serious injury which it would be difficult to repair, the provisional safeguard measure is proposed to apply as security.

6.Offer of consultations under Article 12.4

Consistent with Article 12.4 of the Agreement on Safeguards, Turkey is ready to consult on the provisional safeguard measure with those Members having a substantial interest as exporters of the products concerned.

C.Notıfıcatıon under Artıcle 9, Footnote 2 upon taking a Decısıon not to apply the Provısıonal Safeguard Measure to Certaın Products orıgınatıng ın Developıng Countrıes

1.The measure

It is proposed to impose provisional safeguard measure in the form of specific duty as described in title 2 of the notification under Article 12.4 above.

2.The product subject to the measure

The measure is applied to the products described in title 1 of the notification under Article12.4 above.

3.The developing countries to which the measure is not applied under Article 9.1 of the Agreement on Safeguards

The developing countries in the list below are excluded from the measure as they export less than 3 per cent of imports to Turkey.

Afghanistan; Albania; Algeria; Antigua and Barbuda; Angola; Argentina; AmericanSamoa; Anguilla; Antarctica; Aruba; Azerbaijan; Bahamas; Bahrain, Kingdom of; Bangladesh; Barbados; Belize; Benin; Bermuda; Bhutan; Bolivarian Republic of Venezuela; Plurinational State of Bolivia; Botswana; Bouvet Island; Brazil; British Virgin Islands; British Indian Ocean Territory; BruneiDarussalam; 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; FrenchPolynesia; French Southern Territories; 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; StKitts and Nevis; Kuwait; Kyrgyzstan; Laos; Lebanon; St Lucia; Sri Lanka; Liberia; Lesotho; Libya; Morocco; Madagascar; Marshall Islands; Mali; Moldova; Mongolia; Mauritania; 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; Panama; Peru; Papua New Guinea; Philippines; Pakistan; Palau; Paraguay; Pitcairn; Qatar; Russian Federation; Rwanda; Samoa; Saudi Arabia; Solomon Islands; Seychelles; Sudan; Sierra Leone; Senegal; Somalia; Suriname; Sao Tomé and Principe; El Salvador; Syrian Arab Republic; Swaziland; South Africa; SouthGeorgia and South Sandwich Islands; St Helena and dependencies; St Pierre and Miquelon; Thailand; Tajikistan; Togo; Tunisia; Tonga; East Timor; Trinidad and Tobago; Turkmenistan; Tuvalu; Tanzania; Tokelau; Turks and Caicos Islands; Ukraine; United Arab Emirates; UnitedStates Minor outlying islands; Uganda; Uruguay; Uzbekistan; StVincent; Vietnam; Vanuatu; Virgin Islands of US; Wallis and Futuna Islands; Yemen; Zambia and Zimbabwe.

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