RESTRICTED
WORLD TRADE WT/L/32
6February 1995
ORGANIZATION(95-0225)
Original: English
NOTIFICATION INPURSUANCE OFARTICLE XVIII:C
AND THE 1979 DECISION ON"SAFEGUARD ACTION
FOR DEVELOPMENT PURPOSES"
Communication byMalaysia
Thefollowing communication, dated 30January 1995, hasbeenreceived fromthePermanent
Mission ofMalaysia.
_______________
IwishtosubmitherewithnotificationoftheGovernmentofMalaysiapursuanttoArticleXVIII:C
ofGATT 1994 andthe1979 Decision ofSafeguard Action forDevelopment Purposes.
Inthisconnection, Irequest thatthisnotification becirculated toallmembers oftheWorld
Trade Organization.
./.WT/L/32
Page2
1. Thisnotification ismade inpursuance ofArticle XVIII:C ofGATT 1994readwiththeprovision
ofthe1979Decisionon"SafeguardActionforDevelopmentPurposes"relatingtogovernmentassistance
forthepromotion ofdomestic industry. The1979 Decision provides that"...there maybeunusual
circumstances where delay intheapplication ofmeasures which aless-developed contracting party
wishes tointroduce under Section AorSection CofArticle XVIII maygiverisetodifficulties inthe
application ofitsprogrammes andpolicies ofeconomic development fortheaforesaid purposes... in
suchcircumstances, theless-developed contracting party concerned maydeviate fromtheprovisions
of...Section C,paragraphs 14,15,17and18totheextent necessary forintroducing themeasures...".
2. Witheffect from7April 1994, theMalaysian Government introduced import licensing measures
onthefollowing products:
(i) polyethylene -HS:3901 10000andHS:3901 20000
(ii) polypropylene -HS:3902 10300andHS:3902 30000
3. Thelicensing mechanism isatemporary measure. TheGovernment willreview themeasure
attheendoftwoyears.
4. TheinformationaboutthemeasurewaspublishedintheGovernmentGazettedated7April1994.
5. Under thelicensing requirements forthese products, animporter would havetoobtain prior
approval oftheMinistry ofInternational Trade andIndustry before theproducts canbeimported into
thecountry. Themeasure isaimed atregulating thelevelofimports soasnottofurther materially
injure thedomestic industry andretard itsdevelopment. Themeasure, however, doesnotconstitute
aprohibition ofimports aslicences areissued tobonafideimporters.
6. Thepetrochemical industry isanascent industry which would make fulluseoftheresources
fromthepetroleum industry, andthereby creating important linkages, forward andbackward withother
related industries. Further, thedevelopment ofthisindustry isimportant forensuring continuous and
stable supply ofrawmaterials forthelarge andsignificant domestic plastic industry.