WORLD TRADE
ORGANIZATIONG/SG/N/6/BGR/5
18 September 2002
(02-4957)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
BULGARIA
The following communication, dated 9 September 2002, has been received from the
Permanent Mission of Bulgaria.
_______________
Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards and taking into account the
suggested format for notifications under that Arti cle (G/SG/N/6), the Republic of Bulgaria hereby
notifies that its competent authority has initiated an investigation process, as follows:
1. Date of initiation of the investigation
Upon proposal by the Inter-Agency Commi ssion on Safeguard Measures on Imports of
Products in the Republic of Bulgaria, the Minister of Economy of the Republic of Bulgaria issued an
Ordinance No. RD-16-97 dated 8 July 2002 on initiation of investigation.
The respective announcement pursuant to Article 3 of the Agreement on Safeguards and
Article 4(7) of Regulation No. 300 of the Council of Ministers of 16 December 1996 (notified in
WTO document G/SG/N/1/BGR/1) was published in State Gazette No. 26 on 26 July 2002.
The time-limit for declaring a participation in the investigation, submitting written statements
and information to be considered in the investigation, is 30 days after the publication of the
announcement in State Gazette.
2. Products subject to the above investigation
Tariff No. Description
7208 25 00 0
7208 26 00 0
7208 27 00 0
7208 37 90 0
7208 38 90 0
7208 39 90 0Flat-rolled products of non-alloy stee l, of a width of 600 mm or more,
hot-rolled, not clad, platted or coated, in coilsG/SG/N/6/BGR/5
Page 2
Tariff No. Description
7208 40 10 0
7208 51 99 0
7208 52 10 0
7208 52 99 0
7208 53 90 0
7208 54Flat-rolled products of non-alloy stee l, of a width of 600 mm or more,
hot-rolled, not clad, platted or coated, in sheets
7209 16 90 0
7209 17 90 0
7209 25 00 0
7209 26 90 0
7209 27 90 0Flat-rolled products of non-alloy stee l, of a width of 600 mm or more,
cold-rolled, not clad, platted or coated
7210 12 Flat-rolled products of non-alloy stee l, of a width of 600 mm or more,
clad, platted or coated
7213 91 10 0
7213 91 49 0Bars and rods, hot-rolled in irregularly wound coils, or iron or
non-alloy steel
3. Reasons for initiation of the investigation procedure
(i) The investigation procedure was initiated pursuant to a petition from the Bulgarian
producer - Kremikovtzi Corp., constituting a major proportion of the total domestic
production of the product concerned;
(ii) The competent authority has found that there is a substantial increase in the imports
of steel products subject to investigation either in absolute terms, and/or relative to
the domestic production or consumption during the period 1999-2001.
As per the Bulgarian Customs` statistics the imports of hot-rolled steel products in coils in
2001 have increased sharply compared to the imports in 1999 – over 14 times.  The index of increaseof imports 2001/2000 for this group of products is 140.
Imports of hot-rolled steel products in sheets in 2001 have increased 4.5 times compared to
the imports in 1999.  The index of increase of imports 2001/2000 for this group of products is
above 170.
In 2001 the imports of cold-rolled steel products concerned have increased more than 4 times
compared to the imports in 1999.  The index of increase of imports 2001/2000 for this group of
products is 190.  The imports of the rest of the products concerned have also increased.
Capacity utilization of the Bulgarian producer in relation to production of each of the
products generally decreased during the period of investigation.  Employment has declined by 35 per
cent since 1999.
The increased imports of steel products caused significant changes in the structure of the
domestic market:  the market share of the imported products increased, while the market share of the
domestic products decreased.
4. Additional information
Further information with respect to the investigation may be submitted to or can be obtained
from the competent authority on the following address:G/SG/N/6/BGR/5
Page 3
Interagency Commission on Safeguard Measures on
  Imports of Products in the Republic of Bulgaria
Sector and Regional Analysis Directorate
Ministry of Economy8, Slavyanska Str.
Sofia
Bulgaria
Tel: + 359 2 940 7581
Fax: + 359 2 980 5109
e-mail:   SRAnalizi@mi.government.bg
__________