   
  
G/SG/N/8/ZAF/6/Suppl.3  
G/SG/N/10/ZAF/5/Suppl.3  
G/SG/N/11/ZAF/5/Suppl.6  
 
26 July 2023  
(23-5111) Page: 1/4 
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 UNDER ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS  
ON TAKING A DECISION TO APPLY A SAFEGUARD MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
SOUTH AFRICA 
Threaded fasteners of iron or steel: bolt ends & screw studs, screw studding and other  
hexagon nuts (excluding those of stainless steel an d those identifiable for aircraft)  
Supplement  
The following communication, dated and received on 25 July 2023, is being circulated at the request 
of the delegation of South Africa.  
 
_______________  
 
 
Pursuant to Article 12.1(c) of the Agreement on Safeguar ds, the Government of South Africa hereby 
gives notification upon taking a decision to extend a safeguard measure on imports of threaded fasteners 
of iron or steel: bolt ends & screw studs, screw studding and other hexagon nuts (excluding those of 
stainles s steel and those identifiable for aircraft).  
 
The duty extension notice was published in the Government Gazette  No. 49013, dated 21 July 2023.1 
 
1. The product subject to the investigation  
The subject product is described as bolt ends & screw studs (classifiable under tariff 
subheading  7318.15.41), screw studding (classifiable under tariff subheading 7318.15.42) and other 
hexagon nuts (classifiable under tariff subheading 7318.16.30) of iron and steel (excluding those of 
stainless steel and those ide ntifiable for aircraft).  
 
2. Provide the basis for t aking a decision to extend a safeguard measure, as provided 
for in Article 12.1(c)  
The International Trade Administration Commission of South African ("the Commission") initiated an 
investigation pursuant t o an application by the South African Fasteners Manufacturers' Association 
(SAFMA) on behalf of its members in order to determine whether the expiry of the safeguard measure 
will likely lead to the recurrence or continuation of serious injury to the Southe rn African Customs Union 
(SACU) industry, and whether the SACU industry is adjusting, within the meaning of the Agreement on 
 
1 To consult this document, please contact Ms  Anne Richards of the Rules Division 
(anne.richards@wto.org ). G/SG/N/8/ZAF/6/Suppl.3 • G/SG/N/10/ZAF/5/Suppl.3 • G/SG/N/11/ZAF/5/Suppl.6  
 
- 2 - 
 
  Safeguards, in connection with threaded fasteners of iron or steel: bolt ends & screw studs, screw 
studding and other hexagon nuts (excluding those of stainless steel and those identifiable for aircraft).  
 
(i) Recurrence of Serious Injury  
The Commission considered the following injury indicators:  
 
Table 1: Injury indicators  
Injury indicators  Change from 2020 to 2023  Change should the duty expire  
Imports volumes  Decreased  Increased  
Sales volumes  Increased  Decreased  
Profits  Decreased  Decreased  
Output  Increased  Decreased  
Applicant's market share  Decreased  Decreased  
Capacity utilization  Increased  Decreased  
Employment  Increased  Decreased  
 
The data evaluation for the purposes of determining the likelihood of recurrence or continuation of 
serious injury covered the period from 01 August 2020 to 31 July 2023, plus estimates from 
01 August 2023 to 31 July 2024 should the safeguard measure expire.  
 
The injury analysis of the subject product relates to information submitted by 
CBC Fasteners  (Pty) Ltd, SA Bolts Manufacturers and T&l  Chalmers Engineering, which are members 
of SAFMA, representing a major proportion of more than 50 percent of the SACU industry by 
production volumes.  
 
The information in table 1 shows that t he SACU industry 's performance improved  during the period 
for wh ich a safeguard duty has been in place. This is evident from the increase in sales volumes, 
production volumes, productivity, employment and capacity utilisation during the period when the 
duty was in place, although that improvement did not generate more profits and/or market share.  
 
The assessment of the recurrence of serious injury in table 1 shows that there is a likelihood of 
recurrence of serious injury  to the SACU industry, should the safeguard measure expire.  The 
assessment shows that all the indust ry's performance indicators, i.e. sales volumes, production 
volumes, profits, market share, capacity utilisation, productivity, and employment numbers will 
decline in the succeeding period, should the safeguard duty expire. The profits will decline further  
and change to losses and the current market share will decline further in favour of imports that are 
likely to increase in the same period. These estimated declines and increase in import volumes are 
an indication that should the safeguard measure not be extended, the serious injury experienced 
by the SACU industry during 2015 -2018 period (period of investigation in the original investigation) 
will recur.  
 
The assessment shows that the safeguard measure continues to be necessary to prevent or remedy 
the re currence of serious injury  
 
(ii) SACU industry adjustment  
The SACU industry has submitted the following efforts and/or measures taken to demonstrate that 
the SACU  industry is adjusting in line with its the Adjustment Plan in the original safeguard 
investigation of the subject product.  
• The SACU industry has made considerable investments of more than R6 million over the last 
3 years, to improve on their technological  and human abilities to increase efficiencies and 
thereby be able to compete more effectively with the imported product;  
• The industry players have increased their work force considerably, which in turn led to 
investment in skills development and higher ove rall production;  
• The industry, together with Arcelor Mittal SA ("AMSA") have rationalised raw material 
qualities thereby allowing AMSA higher production volumes on a narrower product range;  
• The industry has volunteered to pilot the Prior Surveillance Init iative to contribute to the 
South African Steel Master Plan;  
• The industry is working closely with the South African Revenue Service to deal with duty 
circumvention and import monitoring; and  
• The industry supports designation and localisation.  G/SG/N/8/ZAF /6/Suppl.3 • G/SG/N/10/ZAF/5/Suppl.3 • G/SG/N/11/ZAF/5/Suppl.6  
 
- 3 - 
 
   
The assessme nt shows that there is sufficient evidence that the SACU industry is adjusting.  
 
3. Provide a precise description of the proposed measure   
The Commission initiated an extension investigation on 24 March 2023 through Notice No. 1695 in 
Government Gazette  and the interested parties were given 20 days until 17 April 2023 to comment 
on the Commission 's initiation notice.  
 
On 27 March 2023 the Government of South Africa sent the WTO notice to the Committee on 
Safeguards  to notify on initiation of investigation regarding the extension of a safeguard measure 
G/SG/N/6/ZAF/7/Suppl.1.  
 
Comments on the initiation notice were recei ved from interested parties. Based on the comments 
received on initiation of the investigation, the Commission, on 23 May 2023, made a final 
determination before "essentials facts" that the expiry of the safeguard measure is likely to lead to 
the recurrenc e of serious injury; and that there is evidence that the SACU industry is adjusting.  
 
On 29 May 2023 essential facts letters were sent to interested parties, informing them of the 
essential facts which were being considered by the Commission and invited co mments from 
interested parties on those "essential facts" for the Commission 's consideration prior to making a 
final determination.  
 
Comments on the essential facts letter were received from interested parties. After considering all 
interested parties ' comments received, the Commission made a final determination that:  
• the expiry of the safeguard measure is likely to lead to the recurrence of serious injury; and  
• there is evidence that the SACU industry is adjusting.  
 
Based on those findings, the current saf eguard measure of 50.04% ad valorem  is extended for a 
period of three years, phasing down at regular 12 months intervals by 2% over the next three years.  
 
4. The date of extension of the measure   
The date for the extension of the measure is 24 July 2023.  
 
5. The duration of the measure   
The measure shall be in place until 23 July 2026.  
 
6. For a measure with a duration of more than three years, provide the proposed date 
for the review (under article 7.4) to be held not later than the mid -term of the 
measure, if such date for the review has already been scheduled   
Not applicable.  
7. If the duration is over one year, provide the expected timetable for progressive 
liberalization of the measure   
The duration is three years, and the following timetable shows the progressive liberalization of the 
measure.  
 
Table 2: Proposed duties and liberalization schedule  
Period  Rate of safeguard measure  
24 July 2023 – 23 July 2024  48.04% ad valorem  
24 July 2024 – 23 July 2025  46.04% ad valorem   
24 July 2025 – 23 July 2026 44.04% ad valorem   
The current liberalisation rate of the safeguard was set at an annual rate of 2%. The Commission 
assessed in this extension investigation whether this level of liberalisation continued to be 
appropriate. In order to allow the indus try sufficient protection while fully implementing its 
adjustment plan, the Commission considered that an increase in the level of liberalisation beyond G/SG/N/8/ZAF/6/Suppl.3 • G/SG/N/10/ZAF/5/Suppl.3 • G/SG/N/11/ZAF/5/Suppl.6  
 
- 4 - 
 
  its current rate was not justified. Therefore, the safeguard duty will continue to phase down by 2% 
every 12 months as of 24 July 2023.  
8. Exclusion of certain countries from the scope of the definitive measure  
The extension investigation shows that imports of the subject product originating in several 
developing countries listed in table 3, based on latest official import data, meet the requirements of 
Article 9 of the WTO Agreement on Safeguards and should therefore be excluded.  
 
Table 3: Developing WTO member countries  
 
 
 
__________  Name  Name  Name  Name  
Afghanistan  Madagascar  Dominica  Saint Vincent and the 
Grenadines  
Albania  Malawi  Dominican Republic  Sao Tome & Principe  
Algeria  Latvia  Ecuador  Samoa  
American Samoa  Lebanon  Egypt, Arab Rep.  Senegal  
Angola  Maldives  El Salvador  Seychelles  
Antigua and Barbuda  Mali Eritrea  Sierra Leone  
Argentina  Marshall Islands  Eswatini  Singapore  
Armenia  Mauritania  Equatorial Guinea  Solomon Islands  
Azerbaijan  Mauritius  Ethiopia  Serbia  
Bangladesh  Mexico  Fiji Somalia  
Bahrain  Micronesia  Gabon  South Sudan  
Belarus  Moldova, Republic of  The Gambia  Sri Lanka  
Belize  Mongolia  Georgia  Sudan  
Benin  Montenegro  Ghana  Suriname  
Bhutan  Morocco  Grenada  Syrian Arab Republic  
Brunei Darussalam  Mozambique  Guatemala  Tajikistan  
Bolivia  Myanmar  Guinea  Tanzania  
Bosnia & Herzegovina  Namibia  Guinea -Bissau  Timor -Leste  
Botswana  Nepal  Guyana  Togo 
Brazil  Nicaragua  Haiti Thailand  
Bulgaria  Niger  Honduras  Tonga  
Burkina Faso  Nigeria  St. Lucia  Trinidad and Tobago  
Burundi  North Macedonia  Iran, Islamic Rep. of  Tunisia  
Cabo Verde  Oman  Iraq Indonesia  
Cambodia  Pakistan  Jamaica  Turkmenistan  
Cameroon  Palestine  Jordan  Tuvalu  
Central African Republic  Palau  Kazakhstan  Uganda  
Chad Panama  Kenya  Ukraine  
Chile Papua New Guinea  Kiribati  United Arab Emirates  
Colombia  Paraguay  Korea  Uruguay  
Comoros  Peru Kyrgyz Republic  Uzbekistan  
Costa Rica  Philippines  Kosovo  Viet Nam 
Côte d'Ivoire  Qatar  Kuwait, the State of  Vanuatu  
Cuba Romania  Lao People's Dem. 
Republic  Venezuela  
Democratic Republic of the 
Congo  Russian Federation  Lebanon  West Bank and Gaza*)  
Congo  Rwanda  Lesotho  Yemen  
Djibouti  Saudi Arabia  Liberia  Zambia  
Lithuania  St. Kitts and Nevis  Libya  Zimbabwe  