WORLD TRADE
ORGANIZATIONG/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
28 August 2003
(03-4493)
Committee on Safeguards Original:  English
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2,
OF THE AGREEMENT ON SAFEGUARDS
POLAND
(Gas Water Heaters)
The following communication, dated 25 August 2003, has been received from the Permanent
Mission of Poland.
_______________
Poland hereby submits its notification pursuant to Articles 12.1.(c) and 9 footnote 2 of the
Agreement on Safeguards upon taking a decision to apply safeguard measures and on taking a
decision not to apply those measures to imports of instantaneous gas water heaters originating in
developing countries.
I. NOTIFICATION UNDER ARTICLE 12.1. (C) OF THE WTO AGREEMENT ON 
SAFEGUARDS
Pursuant to Article 12.1.(c) of the Agreement on Safeguards and to the format of notifications
under this Agreement Poland hereby submits notification upon taking a decision to apply  safeguardmeasures to imports of instantaneous gas water heaters.
1. Provide evidence of serious injury or th reat thereof caused by increased imports
Based on analysis of the factors concerning the situation of domestic producer of the like
product as indicated in Article 4.2 (a) of the Agreement on Safeguards, the investigating authority hasdetermined:
- volume of domestic production,
- domestic sales,- productivity,- capacity utilization,- employment,
- profits and losses,
- share of the domestic industry in the market.G/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
Page 2
– volume of domestic production (previous year = 100):
There was a steady fall of the volume of domestic production
• in 1998  - 100
• in 1999 – 79,9
• in 2000 – 46,4
• in the first half of 2000 – 100
• in the first half of 2001 – 66,7 in comparison with the same period of 2000
– level of sales (previous year = 100):
• in 1998 – 100
• in 1999 – 80,0
• in 2000 -  46,7
• in the first half of 2000 – 100
• in the first half of 2001 – 82,0 compared with the same period of 2000
– productivity (previous year = 100):
• in 1998 – 100
• in 1999 – 103,5
• in 2000 – 107,2
• in the first half of 2000 – 100
• in the first half of 2001 – 90,0 in comparison with the same period 2000
– capacity utilization (previous year = 100):
• in 1998 – 100
• in 1999 – 70,2
• in 2000 – 60,3
• in the first half of 2000 – 100
• in the first half of 2001 – 66,8 in comparison with the same period of 2000
– employment:
Employment in the production of instantaneous gas water heaters decreased by 48,1 per cent
in the period 1998-2000 and by 17,9 per cent in the first half of 2001 in relation to the same period of2000.
– profits and losses:G/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
Page 3
During period of investigation domestic industry was suffering losses which increased
substantially in the first half of 2001.
– share of the domestic industry in the mark et was falling steadily (previous year = 100):
• in 1998 – 100
• in 1999 – 78,3
• in 2000 – 64,1
• in the first half of 2000 – 100
• in the first half of 2001 – 77,6 compared with the same period of 2000
As a result of the  analysis the Minister of Economy, Labour and Social Policy stated that the
domestic industry suffered an injury what is evidenced by such economic indicators as: fall in the
sales level, production, productivity, capacity utilization, decrease in the share in the domestic market,
fall in employment and financial losses.
On the basis of available information the investigating authority has made a determination
that there is clear evidence of a causal link betw een the recent growth of imports of product under
investigation and the injury caused to domestic producer. In the course of the investigation the
Minister of Economy, Labour and So cial Policy found that sharp increase in imports of instantaneous
gas water heaters took place in 2001 .  Increased imports was realized at prices lower than the
domestic ones and thus have caused serious injury to the domestic industry.
To ensure that serious injury is not attributable  to others factors than increase in imports, the
investigating authority evaluated all relevant factors, including fall in exports, influencing thesituation of that industry.  Minister of Economy,  Labour and Social Policy found that the fall in
exports was not so relevant to cause serious injury to the domestic industry. In the course of the
investigation Minister of Economy, Labour and Social Policy has not found other factors which could
cause injury to the domestic industry.
The investigating authority has established that  worsening of the situation of the domestic
producer of like product is directly attributable to increase in imports. 
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production
The volume of imports of the instantaneous gas water heaters in the investigation period
amounted to:
• 1153 440 kilograms in 1998,
• 1 522 244 kilograms in 1999,
• 1 433 857 kilograms in 2000,
• 785 946 kilograms in the first half of 2001 (675 679 kilograms in the first half of 2000 -
rate of increase 16,3 per cent).
The share of imports  in relation to the domestic production during the investigation period
rose by:G/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
Page 4
• 66,6 per cent in 1999 compared with 1998,
• 103,2 per cent in 2000 compared with 1999,
• 74,3 per cent in the first half of 2001 compared with the same period of 2000.
With rapid fall of the domestic sales, there was a steady increase of imports share in the
domestic market which amounted to:
• 29,1 per cent in 1999 compared with 1998,
• 29,1 per cent in 2000 compared with 1999,
• 10,1 per cent in the first half of 2001 compared with the same period of 2000.
Import prices ( PLN/kg)
• 1998 – 27,80
• 1999 -  30,05
• 2000 – 29,19
• in the first half of 2000 –29,26
• in the first half of 2001 – 29,12
• Prices of the domestic product: (previous year = 100)
• 1998 – 100
• 1999 – 117,3
• 2000 – 135,3
• in the first half of 2001 – 116,8 in comparison with the same period of 2000.
The result of the analysis indicate that, since 2000 the prices of imported instantaneous gas
water heaters has been lower than prices of the domestic like product. Price undercutting in the last
period of investigation it is in the first half of 2001 surpassed 34 %.
Imports of instantaneous gas water heaters at lower prices resulted in price fall of the
domestic product. Price underselling since 2000 amounted to above 36 %. 
3. Provide precise description of the product involved
The products subject to safeguard measures are instantaneous gas water heaters classified
under tariff item 8419 11 00 0  of the Polish Harmonized Tariff.
4. Provide precise description of the measure
The safeguard measure consists of additional duty to be paid on imports exceeding certain
quantities. The level of additional duty was calculated on the basis of price undercutting and priceunderselling established by comparison of prices in imports and domestic prices ( in case of price
underselling target prices have been used).G/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
Page 5
The quantity of imports free from additional duty was established on the basis of the average
volume of imports of the product concerned in the last three years of the investigation period.
Additional
duty (%)Quantity imports
free from
additional duty
(%)Additional
duty (%)Quantity of
imports free from
additional duty
(units)Product Code
First period
13.08.2003 – 31.12.2003Second period
1.01.2004 – 30.04.2004r.
(1) (2) (3) (4) (5) (6)
Gas water
heaters8419 11 00 0 25% 39 375 25% 35 000
5. Provide proposed date of introduction of the measure
The measure entered into force on 13 August 2003. The regulation imposing the safeguard
measure was published in the official journal “Dziennik Ustaw” No 142 item 1384 of
13 August 2003.
6. Provide expected duration of the measure
The safeguard measure will be applied till 30 April 2004.
II. NOTIFICATION UNDER ARTICLE 9.1 FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS ON NON APPLICATION OF SAFEGUARD MEASURE
TAKEN BY POLAND TO THE IMPORTS ORIGINATING IN DEVELOPINGCOUNTRIES
1. Specify the Measure
The safeguard measure is described in the Polish notification under Article 12.1 (c) of the
Safeguard Agreement.
 
2. Specify the Product Subject to the Measure
The measure applies to instantaneous gas water heaters classified under tariff item
8419 11 00 0 of the Polish Harmonized Tariff.G/SG/N/10/POL/2/Suppl.1
G/SG/N/11/POL/3
Page 6
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 concerned are the following:
AngolaBangladeshBelizeBeninBoliviaBotswana
Burkina Faso
BurundiChinaChadDemocratic Republic of CongoDominicaDominican RepublicDjiboutiEgypt
Ecuador
FijiPhilippinesGambiaGhanaGrenadaGeorgiaGuyanaGuatemala
Guinea
Guinea-BissauHaiti
HondurasIndiaIndonesiaJamaicaJordan
Cameroon
KenyaKyrgyz RepublicColumbiaCongoCosta RicaCubaLesothoMadagascar
Malawi
MaladiesMalaysiaMaliMoroccoMauritaniaMauritiusMongoliaMozambique
Myanmar
NamibiaNiger
NigeriaNicaraguaPakistanPanamaPapua-New Guinea
Paraguay
PeruCentral African RepublicRwandaSalvadorSenegalSierra LeoneSri LankaSt. Vincent and Grenadines
Swaziland
SurinamThailandTanzaniaTogoTunisiaUgandaIvory CoastSalomon Islands
Zambia
Zimbabwe
__________