WORLD TRADE
ORGANIZATIONG/TMB/N/452
4 July 2002
(02-3732)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 3.1
POLAND
The Textiles Monitoring Body has received a notification from Poland pursuant to Article 3.1.
The TMB, in accordance with Article 3.5, is circulating this notification to WTO Members
for their information.G/TMB/N/452
Page 2
Permanent Representative of the Republic of Poland
to the WTO
Geneva, 24 June 2002
The Honourable
Ambassador András Szepesi
Chairman
Textiles Monitoring BodyWorld Trade Organization
Geneva
Dear Mr. Chairman,
Pursuant to paragraph 1 of Article 3 of the Agreement on Textiles and Clothing, I have been
instructed  by my authorities to notify the TMB that Poland maintains a safeguard measure on imports
of synthetic fabrics originating in the Separate Customs Territory of Taiwan, Penghu, Kinmen andMatsu.
The relevant Decision of the Minister of the Economy of 24 August 1999 is attached.Please note that all references in the Decision to the origin of the product covered by this
measure refer to the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Please allow me to take this opportunity to inform the TMB, that the notified measure  will be
withdrawn on 15 September 2002.
May I kindly ask you these have these notifications circulated as appropriate.
Yours sincerely,
(Signed)
Tomasz Jodko
Minister Plenipotentiary
Attachment
Text of the DecisionG/TMB/N/452
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Official Journal – Monitor Polski 99.28.433
DECISION
OF THE MINISTER OF THE ECONOMY
of 24 August 1999
on the imposition of a safeguard measur e against the excessive imports into the
Polish customs territory of synthetic fabrics originating in Taiwan
(published in the Official Journal – Monitor Polski of 31 August 1999)
Pursuant to Article 19 paragraphs 1 to 5 of the Law of 11 December 1997 on Safeguards
Against Excessive Imports of Certain Textile and Clot hing Products into the Polish customs territory
(Official Journal – Dziennik Ustaw No. 157, item 1029) , in view of the excessive imports of synthetic
textile fabrics originating in Taiwan and falling  under HS codes 5407 (woven fabrics of synthetic
filaments yarns, including fabrics made of fibres falling under 5404 code)
- PCN 5407 42 00 0 Woven fabrics, >/=85% of nylon/other polyamides filaments,
dyed, nes;
- PCN 5407 52 00 0 Woven fabrics, >/=85% of textured polyester filaments, dyed, nes;
- PCN 5407 53 00 0 Woven fabrics, >/=85% of textured polyester filaments, yarn dyed,
nes;
- PCN 5407 54 00 0 Woven fabrics, >/=85% of textured polyester filaments, printed,
nes.
and taking into account the serious injury to the domestic industry caused by such imports, and a
threat thereof in the future, the Minister of the Economy has decided to introduce a safeguard measure
in the form of quantitative restriction which will be effective for a period of three years and cover the
following quantities of imports:
- First year:  9.8 million square meters;
- Second year:  10.4 million square meters;
- Third Year:  11.0 million square meters.
which means that the safeguard measure will be liberalized at the rate of 6 per cent p.a in the second
and third year.
The quota will be allocated proportionately to the value of the applicant's foreign trade in
those goods to which the decision applies.
Instruction
The decision is not subject to an appeal.  However, any party dissatisfied with the decision is
entitled, under Article 127 paragraph 3 of the Administrative Proceedings Code, to apply for the
decision to be re-examined by the Body which issued it.  The decision shall take effect fourteen days
following its publication.
Grounds
It has been determined in the course of a safeguard investigation that the global imports of
fabrics covered by the application increased by ca 12.5 per cent in 1998 compared with 1997,including an increase in imports from Taiwan by ca 58 per cent in 1998 compared with 1997.  TheG/TMB/N/452
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market share of such imports increased from 7.5 per cent in 1997 to 12.7 per cent in 1998, while the
prices of imported products were lower than those of the same domestic products (and so the price of
a product falling under code PCN 5407 52 00 0, which constituted a major proportion of imports in
1998, was ca 4 per cent lower than the average price offered by domestic producers).  The situation
has caused serious damage to the domestic industry and poses a threat of such damage in the future.The following circumstances indicate the occurrences of a serious damage:
- the domestic industry output decreased by ca 12.7 per cent in 1998 compared with
1997;
- the level of sales of domestic products decreased by 17.6 per cent in 1998 compared
with 1997;
- decrease in capacity utilization in the first quarter of 1999 compared with 1998;
capacity utilization increased in 1998 compared with 1997, but only due to the fact
that the decrease in capacity that exceeded the decrease in production;
- employment fell (including workforce directly involved in fabrics production),
- financial and economic indicators, including net profit margin, deteriorated;  NPM
was 2.7 per cent in 1997 and 2.0 per cent in 1998, it then declined sharply in the first
quarter of 1999 to a negative figure of 3.1 per cent (compared to the positive4 per cent in the first quarter of 1998).  Profit margin on sales of fabrics subject to the
application fell in the first quarter of 1999 to a negative figure of 6.9 per cent,
whereas it amounted to 0.5 per cent and 0.3 per cent respectively in the first quarter of
1998 and at the end of 1998;
- stocks increased by 14.6 per cent in 1998 compared with 1997;
- market share of domestic sales declined from ca 68.5 per cent in 1997 to 62 per cent
in 1998.
The threat is evident in view of a progressive increase in the exports of synthetic textile
fabrics from Taiwan to Poland, and other countries, since 1995.
In view of the above, a safeguard measure has been adopted in the form of a quota equal to
the size of imports of the product concerned with in the period of 12 months, ending two months
before the month in which consultations were held with the Taipei Economic and Cultural Office in
Warsaw.  In accordance with Article 20 paragraph 2 of the Law on Safeguards Against the ExcessiveImports of Certain Textile and Clothing Products into the Polish Customs Territory, the quota is
subject to liberalization, i.e. will be augmented on annual basis by 6 per cent with respect to the
previous year.
The quota allocation is based on Article 12 paragraph 1 sub-paragraph 3 of the Law of
11 December 1997 on the Administration of Foreign Trade in Goods and Services and Special Trade
(Official Journal – Dz.U. No. 157, item 1026 and of  1999 No. 55, item 587), with due regard to
ensuring that companies which were involved in importing synthetic fabrics from Taiwan into the
Polish customs territory in the period under investigation retain their share in the Polish market.
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