Proposed definitive safeguard measures by EU
The Commission proposes to impose definitive safeguard measures with respect to imports of the following seven groups of products:- HRC (product group number 1); - Hot rolled sheets and plates (product group number 2); - Narrow strip (product group number 3); - Hot rolled flat products (product group number 4); - Cold rolled sheets (product group number 5); - Fittings; (product group number 18); - Flanges (product group number 19)Expected date of commencement of the definitive measures would be September 29, 2002. Proposed duration of the definitive measures is considered to be three years. The definitive measures would take form of a country-specific quota for each product group. The only important exception applies to hot-rolled coils for which a global quota is proposed, i.e. the indicative quota for hot-rolled coils would be at least 3.1. million tonnes for the first period from March 29, 2002 to March 28,2003; 3.2. million tonnes for the second period from March 29, 2003 to March 28,2004; and 3.4million tonnes for the third period from March 29,2004 to March 28,2005. There is no explanation available for the reasons of the general HRC quota not having been subdivided in country-specific quota. The additional duties to be paid above these quotas, in the first year, should be set at the level of the underselling margin being subject to a maximum of 26 percent in order to avoid excessive levels of duty. The rate of duty should be decreased by 10 percent in each following year, during which the measures are in place. Another important point is that the proposed definitive measures will not apply to imports originating in developing countries with import share of less than 3 percent. The proposed definitive measures will also not apply to imports originating in Russia, Kazakhstan and Ukraine which are already subject to quantitative restrictions. The proposal for the definitive safeguards measures does not explain how the Commission plans to avoid double protection with respect to imports of products which are already subject to EU anti-dumping measures.