(APPROVED)
order of the Directorof the Department ofprotection of the domesticmarketECE

From 31 August 2012 г. № 7

Published on 3 September 2012

NOTIFICATION

Departmentof protectionof the domestic market
Eurasian Economic Commission
"The start ofa special protectiveinvestigation into thedishes
dining roomand kitchenof the porcelainimportedinto the common customs
territory of the CustomsUnion”

1.    Grounds for initiatingspecial safeguardinvestigation

According to the Agreementon the application ofspecial protective,anti-dumping andcountervailing measuresagainst thirdcountriesfromJanuary 25, 2008(hereinafter - Agreement),the decision ofthe Board ofthe EurasianEconomic CommissiononMarch 7, 2012№ 1 andbased on the resultsthe applicationfiled byLLC "TO"VerbilokCrafts"(hereinafter -The applicantcompany), the Departmentof protectionof the domestic marketEurasian Economic Commissiondecided to launcha specialSafetyinvestigation into thedining room andkitchenutensilsofporcelainto the common customsterritory of the CustomsUnion.

The Plant of the applicant and enterprises, supporting the statement (JSC "Porcelain Verbilok", JSC "Imperial Porcelain Factory" CJSC "Dobrush Porcelain Factory," PC "Dulevo Porcelain Factory"), in average over the period from 2009 to 2011 accounted for 81.1% of total production tableware and kitchenware of porcelain in the Customs Union, which is responsible requirements contained in paragraph 3 of Article 29 of the Agreement imposed to manufacturers, applicants and manufacturers, with the statement and allows us to consider the above mentioned company pursuant to Article 2 of the Agreement as a sector of the economy - the members Customs Union (hereinafter - the sector of the economy the vehicle).

The object of investigation is the dining room and kitchen utensils of porcelain (hereinafter, also called the "Goods") classified code 6911 10 000 0 HS TC.! HS Code TC is advisory only.

Tableware and kitchenware of porcelain produced in the Customs Union, now defined by the applicant as the goods being like or directly competitive with respect to the pan dining room and kitchen of the porcelain imported into the common customs territory of the Customs Union (hereinafter - TT TC).

Contained in an application allow to state following:

1.     The presence of increased imports of tableware and kitchen utensils of Porcelain TT TC.

Import volume of tableware and kitchenware of porcelain to TT for TC From 2009 to 2011, in absolute terms grew by 65.1%, on to the volume of production for TT TC - 189.4 Interest on item. Weighted average price for the dining room and kitchen utensils of porcelain, imported to TT TC, for the period from 2009 to 2011 increased by 28.3%.

2.     A serious harm industries TC.

The consumption of tableware and kitchenware of porcelain on the market Customs Union between 2009 and 2011 increased by 42.2%, with volume of production and sales of products by manufacturer: Customs Union fell by 12.8% and 11.3% respectively, and the share of their products in consumption fell! by 11.2 percentage points.

In the sector of the economy in the period under TC observed negative trend for the majority of industrial and economic indicators:

- Production of tableware and kitchenware of porcelain fell by 0.8% (in 2011, compared with 2010 the decrease was 7.2%);

- Sales of tableware and kitchenware of porcelain fell 2.8% (in 2011, compared with2010 adecline of 6.7%);

- The share of economic sector produced goods in the market TC Customs Union by 7 percentage points;

- Capacity utilization decreased by 5.4 percentage points;

- Profitability remained at a very low level;

- The number of personnel involved in the production of goods has declined by 2.7% (in 2011, compared with2010 adecline of 5.8%), while productivity remained at the same level.

At the same time says:

- The growth of wages of staff employed in the production of goods for 26%;

- Increase investment to develop production and cost reduction.

3.     Existence of a causal link between increased imports and serious damage to the TC industries.

- A steady increase in imports of tableware and kitchen utensils of Porcelain TT TC accompanied by the displacement of production industries TC, whose share fell by 11.2 percentage points;

- During the period under review import prices for dishes dining room and kitchen of porcelain were lower prices and vehicle industries the difference between the prices increased by 2.1 times, which had a negative impact on the price competitiveness of goods produced economic sector TC, and led to its exclusion from the market of the Customs Union and the deterioration of operating and financial performance industry Economics CU.

The availability of evidence of the above facts, in accordance with Agreement is the basis for the decision to start special safeguard investigations against tableware and kitchen porcelain imported to TT TC.

2.    Stakeholder rights and the timing of their implementation

The date of commencement of the investigation is the date of publication of this notice on the official website of the Eurasian Economic Commission.

Interested persons specified in Article 36 of the Agreement, may within 90 calendar days of the start of the investigation to provide  Protection Board of the internal market of the Eurasian Economic Commission comments and information related to the investigation (in written in Russian, in a confidential and non-confidential versions).

To be able to familiarize with non-confidential investigation materials, participation in public hearings and negotiations interested persons in accordance with paragraph 5 of Article 30 of the Agreement within 30 calendar days from the date of initiation of the investigation may claim of its intention to obtain membership status of the investigation.

Participants in the investigation within 60 calendar days from the date of investigations may request a public hearing, provided for in Article 34 of the Agreement.

3.    The confidentiality of the information

For confidential information received in the course of investigation into the Department to protect the domestic market of the Eurasian Economic Commission from stakeholders and participants investigation will apply the provisions on the use and protection of confidential and proprietary information of limited distribution in the body responsible for investigating Board approved the decision of the Eurasian Economic Commission March 7, 2012 № 1.

4.    Contact information

Interested parties may submit their comments and relating to the investigation at the following address:

Department of Protection of the internal market of the
Eurasian Economic Commission

119121, Smolenskiy bulvar, dom 3/5,Moscow,Russian Federation

Contact numbers: 7 (495) 604-40-38 #1309, #3097, #1272.