. /.  WORLD TRADE  
ORGANIZATION   
WT/DS322/36/Add.26 
8 November 2011 
 (11-5713) 
 Original:   English 
  
 
UNITED STATES – MEASURES RELATING TO ZEROING 
AND SUNSET REVIEWS 
 
Status Report by the United States 
 
Addendum 
 
  The following communication, dated 7 November 2011, from the delegation of the United States to the Chairperson of the Dispute Settle ment Body, is circulated pursuant to Article 21.6 
of the DSU. 
_______________  
 
 
Status Report Regarding Implementation of the 
DSB Recommendations and Rulings in the Dispute 
United States – Measures Relating to  Zeroing and Sunset Reviews  
(WT/DS322) 
 
  The United States submits this report in accordance with Article 21.6 of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes ("DSU"). 
  On 23 January 2007, the Dispute Settlement Body ("DSB") adopted its recommendations and 
rulings in United States – Measures Relating to Zeroing and Sunset Reviews (WT/DS322).  At the 
following DSB meeting, the United States informed  the DSB of its intention to implement the 
recommendations and rulings of the DSB in connection with this matter.  The United States and Japan 
subsequently agreed that the reasonable period of time for the United States to implement the 
recommendations and rulings of the DSB would end on 24 December 2007.   On 6 March 2006, the US Department of Commerce published a notice requesting comments 
on its intention to no longer perform average-to-a verage comparisons in anti-dumping investigations 
without offsets.  On 26 January 2007, the Departme nt published a notice that the date after which it 
would no longer perform such comparisons would be 22 February 2007.  Accordingly, as of 
22 February 2007, the United States is no longer pe rforming average-to-average comparisons in anti-
dumping investigations without offsets.    
 With respect to the one investigation that Japan challenged "as applied," the United States 
issued a revised determination in connection with  that investigation on 21 December 2007.  On 
20 May 2008, the Department published a notice of im plementation of the revised determination, in 
which it calculated the anti-dumping duty margins with offsets.   On 31 August 2009, the DSB adopted the Appella te Body report and the panel report, as 
modified by the Appellate Body report, regarding th e recourse to Article 21.5 of the DSU by Japan.  
 WT/DS322/36/Add.26 
Page 2  
 
   On 28 December 2010, in part in response to th e findings in this dispute with respect to 
administrative reviews, new shipper reviews, sunset  reviews, and investigations using transaction-to-
transaction comparisons, the US Department of  Commerce announced a proposal to change the 
methodology for calculating weighted average du mping margins and assessment rates in certain 
anti-dumping proceedings, including administrative and new shipper reviews.  The Department 
proposes to compare monthly weighted average export prices with monthly weighted average normal 
values, and to grant an offset for comparisons that show an export price that exceeds normal value in the calculation of the weighted average margin of  dumping and assessment rate.  The modifications 
the Department has made with respect to investig ations, and is proposing to make with respect to 
reviews, address the underlying issue with respect to s unset reviews.  In addition, to the extent that 
any prior application of the transaction-to-tran saction methodology in an investigation could be 
considered as establishing a practice with respect to offsets, the Department is proposing to withdraw 
any such practice.    The proposal has been published in the Fede ral Register, 75 FR 81533 (Dec. 28, 2010). Under 
US law, there is a period for public comment on this  proposal and for consulta tions with appropriate 
committees in the US Congress.   The United States is continuing its ongoing work on the proposal and will continue to consult 
with interested parties.  
 
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