WT/DS603/1 , G/L/1391  
G/ADP/D138/1 , G/SCM/D133/1  
29 June 2021 
(21-5169) Page: 1/4 
 Original:  English  
 
  
AUSTRALIA – ANTI -DUMPING AND COUNTERVAILING DUTY MEASURES ON CERTAIN 
PRODUCTS FROM CHINA  
REQUEST FOR CONSULTATIONS BY CHINA  
The following communication, dated  24 June 2021 , from the delegation of China  to the delegation 
of Australia , is circulated to the Dispute Settlement Body in accordance with Article 4.4 of the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with the Government of Australia  
pursuant to Articles 4 o f the Understanding on Rules and Procedures Governing the Settlement of 
Disputes (DSU), Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT 1994), 
Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tar iffs and 
Trade 1994 (Anti -Dumping Agreement), Article 30 of the Agreement on Subsidies and Countervailing 
Measures (SCM Agreement).  
I. MEASURES AT ISSUE  
This request for consultations concerns  the anti -dumping and countervailing measures imposed by 
Australia on imports of certain products originating in China, inter alia, wind towers, deep drawn 
stainless steel sinks and railway wheels.  
The measures at issue mentioned above include any and all p reliminary and final anti -dumping and 
countervailing duty measures which were issued by the Anti -Dumping Commission of the 
Department of Industry, Science, Energy and Resources of the Australian Government (hereinafter 
"the Commission"), include the determ ination s by the Commission to initiate the identified 
anti-dumping and countervailing duty investigations, the conduct of those investigations, final 
anti-dumping and countervailing duty determinations as well as definitive anti -dumping  and 
countervailing duties imposed as results of those inve stigations , as well as any notices, annexes, 
decision memorandum , orders, amendments, or other instruments issued by the Commission in 
connection with the anti -dumping and countervailing duty measures as identified in  the Appendix.  
This request also concerns subsequent periodic and sunset reviews of the anti-dumping and 
countervailing duty orders in the proceedings at issue  as specified in the Appendix . This request 
encompasses any other subsequent closely connected measure relating to the anti-dumping and 
countervailing duty orders in the proceedings at issue, including subsequent periodic review 
determinations and subsequent sunset review determinatio ns. 
II. LEGAL BASIS  
A. Anti -Dumping Measures  
The anti -dumping measures  on wind towers, deep drawn stainless steel sinks and railway wheels  
appear to be inconsistent with Australia's obligations under the following provisions of the GATT  1994 
and the Anti-Dumping Agreement:  
1.  Article 2.1, 2.2 and 2.2.1.1 of the Anti -Dumping Agreement and Article VI:1 of the GATT  1994, 
because Australia did not calculate the costs on the basis of the records kept by the exporters or WT/DS603/1 • G/L/1391 • G/ADP/D138/1 •  G/SCM/D133/1  
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  producers under investigation and b ecause Australia did not properly determine the costs of 
production;  
2.  Article 2.1 and 2.2 of the Anti -Dumping Agreement and Article VI:1 of the GATT 1994, 
because in constructing the normal value, Australia did not use the production cost in the country  
of origin;  
3.  Article 2.1, 2.2 and 2.2.1.1 of the Anti -Dumping Agreement, because in constructing the 
normal value, Australia included costs not associated with the production and sale of the product 
under consideration;  
4.  Article 2.4 of the Anti -Dumpi ng Agreement, because Australia did not make a fair comparison 
between the export price and the normal value and because Australia did not make due allowance 
for differences which affect price comparability;  
5.  Article 2.2 and 2.2.2 of the Anti -Dumping Ag reement, because Australia did not properly 
determine the amounts for profits in accordance with the rules established under those articles;  
6.  Article 9.3 of the Anti -Dumping Agreement and Article VI:2 of the GATT 1994, because the 
amount of the anti -dumping duty imposed by the Australia exceeds the margin of dumping as 
established under Article 2 of the Anti -Dumping Agreement and Article VI:1 of the GATT 1994.  
B. Countervailing Measures  
China considers that the conduct of the identified countervailing duty investigation on deep drawn 
stainless steel sinks, as well as the countervailing duty determinations, orders, and any definitive 
countervailing duties imposed pursuant thereto, are inco nsistent with the obligations of Australia 
under the SCM Agreement. More specific, China considers t he Commission  has applied unlawful 
standards and methodologies for these purposes in determining financial contribution, specificity, 
and benefit in respect  of the alleged provision of inputs for less than adequate remuneration  in the 
proceedings at issue  as detailed below:  
1.  Article 1.1(a)(1) of the SCM Agreement, because the Commission incorrectly determined, or 
did not have a sufficient basis to determin e financial contribution within the meaning of that 
provision;  
2.  Article 1.1(b) and Article 14(d) of the SCM Agreement, because the Commission improperly 
found that the alleged provision  of goods for less than adequate remuneration conferred a benefit 
upon the recipient, and improperly  calculated the amount of any benefit allegedly conferred, 
including, its erroneous findings that prevailing market conditions in China were "distorted" as the 
basis for rejecting actual transaction prices in China as benchm ark; 
3.  Article 2 .1(c) of the SCM Agreement, because the Commission  failed to make a proper 
determination on the basis of positive evidence that the alleged provision of input goods for less 
than adequate remuneration was specific to an enterprise or indu stry or group of enterprises or 
industries;  
4.  Articles 11.1, 11.2, and 11.3 of the SCM Agreement, because:  
4.1  the Commission initiated countervailing duty investiga tions in respect  of the alleged 
provision of inputs for less than adequate remuneration,  in the absence of sufficient evidence in 
the petition to determine the financial contribution  within the meaning of Article 1.1(a)(1) of the 
SCM Agreement, and in the absence of a sufficient review of the petition by the Commission in 
respect of this alle gation;  
4.2  the Commission initiated countervailing duty investigations in respect  of the alleged 
provision of inputs for less than adequate remuneration, in the absence of sufficient evidence in 
the petition to support an allegation that any such subsid y would be specific under Article 2 .1(c) 
of the SCM Agreement, and in the absence of a sufficient review of the petition by the 
Commission  in respect of this allegation.  WT/DS603/1 • G/L/1391 • G/ADP/D138/1 •  G/SCM/D133/1  
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  The above -mentioned measures of the Commission appear to nullify or impair, directly or indirectly, 
the benefits accruing to China under the mentioned agreements.  
China reserves the right  to raise additional claims and legal matters in respect of the mentioned 
issues, including any amendment, replacement, extension, implementation measures  or other 
related measures, in the course of the consultations . 
China looks forward to receiving a response to the present request from Australia  and to 
establishing a mutually convenient date for consultations.  
_______________  
 
   
  WT/DS603/1 • G/L/1391 • G/ADP/D138/1 •  G/SCM/D133/1  
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Appendix  
 
A. Wind Towers 1 
 
No. Case Type  Legal Instruments  Date (latest update)  
1 Investigation  EPR 221: Notice and Final Report concerning the Dumping of Wind Towers 
Exported from China  16 April 2014  
2 Continuation  EPR 487: Findings and Final Report of the Inquiry into the Continuation of 
Anti-Dumping Measures Applying to Wind Towers Exported from China  27 March 20192 
 
B. Deep Drawn Stainless Steel Sinks3 
 
No. Case Type  Legal Instruments  Date (latest update)  
1 Investigation  EPR 238: Notice and Final Report concerning the Alleged Dumping of Deep 
Drawn Stainless Steel Sinks Exported from the People's Republic of China 
and Alleged Subsidisation of Dee p Drawn Stainless Steel Sinks Exported 
from China   
26 March 2015  
2 Review  EPR 352  21 November 2016  
3 Review  EPR 459  15 June 2018  
4 Review  EPR 461  12 October 2018  
5 Continuation  EPR 517  28 February 2020  
 
C. Railway Wheels4 
 
No. Case Type  Legal Instruments  Date (latest update)  
1 Investigation  EPR 466: Notice and Final Report concerning the Alleged Dumping of 
Certain Railway Wheels Exported from China  16 July 2019  
 
__________  
 
1 See https ://www.industry.gov.au/regulations -and-standards/anti -dumping -and-countervailing -system/anti -dumping -commission -archive -
cases?field_adc_commodities_tid=2055&field_adc_case_type_tid=All&field_adc_country_tid=2062&combine=  
2 See https://www.industry.gov.au/r egulations -and-standards/anti -dumping -and-countervailing -system/anti -dumping -commission -archive -cases/487  
3 See https://www.industry.gov.au/regulations -and-standards/anti -dumping -and-countervailing -system/anti -dumping -commission -archive -
cases?field_adc_com modities_tid=2022&field_adc_case_type_tid=All&field_adc_country_tid=2062&combine=  
4 See https://www.industry.gov.au/regulations -and-standards/anti -dumping -and-countervailing -system/anti -dumping -commission -archive -
cases?field_adc_commodities_tid=2043&field_adc_case_type_tid=All&field_adc_country_tid=2062&combine=