WORLD TRADE  
ORGANIZATION  WT/DS424/1 
G/L/955 
G/ADP/D88/1 
6 April 2011 
 (11-1719) 
 Original:   English 
  
 
UNITED STATES – ANTI-DUMPING MEASURES ON IMPORTS OF  
STAINLESS STEEL SHEET AND STRIP IN COILS FROM ITALY 
 
Request for Consultations by the European Union
 
 
 
 The following communication, dated 1 April 2011, from the delegation of the European Union to the delegation of the United States and to the Chairperson of the Dispute Settlement Body, is circulated in acco rdance with Article 4.4 of the DSU. 
 
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  Pursuant to Article 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994  
("GATT 1994"), and Article 17.3 of the Agreem ent on Implementation of Article VI of the 
GATT 1994 (" AD Agreement "), the European Union hereby requ ests consultations with the United 
States of America ("United States") concerning anti-dumping measures imposed on imports of stainless steel sheet and strip in coils ("stainless sh eet and strip") from Italy (dealt with under U.S. 
case number A-475-824), concerning the sole exporter of the product concerned from Italy, Thyssen 
Krupp Acciai Speciali Terni S.p.A. ("TKAST"). 
 
1. Subject of consultations 
 
 This request for consultations is w ith respect to the following measures: 
 
− the final determination of the United Stat es Department of Commerce ("USDOC") in 
the original investigation of imports of st ainless sheet and strip from Italy (adopted by 
USDOC notice published in Federal Register  No. 64 FR 30750 of 8 June 1999), as 
amended in the amended fina l determination (adopted by USDOC notice published in 
Federal Register No. 64 FR 40567 of 27 July 1999); ("The original investigation determination"), 
 
− the final determination of the USDOC in the Section 129 proceeding regarding the 
anti-dumping duty Order on imports of stainl ess sheet and strip from Italy (adopted 
by USDOC notice published in Federal Register No. 72 FR 54640 of 26 September 2007); ("The Sec tion 129 determination"), 
 
− A475, Section 129 Determination ; Memorandum of 15 October 2007 from 
Stephen Bailey to Richard O. Weible, Dir ector, Office 7, Import Administration, 
USDOC ("The Ministerial Error Determination"), 
 
− the preliminary results of the USDOC in th e second five-year (sunset) review of the 
anti-dumping duty order regard ing imports of stainless sheet and strip from Italy WT/DS424/1 
G/L/955 G/ADP/D88/1 
Page 2 
  
  (adopted by USDOC notice published in Federal Register No. 75 FR 81214 of 
27 December 2010); ("The Preliminary Sunset Review Results"). 
 2. The facts 
 
(a) On 8 June 1999, the USDOC published a final determination in its  investigation of 
stainless sheet and strip from Italy in which it calculated a dumping margin of 11.17% for the sole exporter of the pr oduct concerned, Thyssen Krupp Acciai 
Speciali Terni S.P.A ("TKAST").
1  On 27 July 1999, USDOC amended its final 
determination to reflect a revised dumping margin of 11.23%.  For the purposes of its margin calculation, USDOC applied its "zeroing" methodology, which inflated the margin of dumping substantially.  In add ition, USDOC applied a "facts available" per 
centage rate to the purported average unit va lue of 84 U.S. sales (the "84 sales") of 
the exporter in question.   
(b) In calculating the average unit value of the "facts available" sales, the United States 
authorities erroneously inverted the numerator and denominator of the ratio: instead of dividing total value by total volume, the United States divided total volume by total value, a clear mathematical error.  Th is error artificially inflated the unit value 
and therefore the amount of dumping.  On the basis of the zeroing methodology and 
the arithmetic error, an anti-dumping order was established pursuant to which 
anti-dumping duties were collected.  Correction of the zeroing methodology and the mathematical error would have resu lted in a margin of dumping below de minimis . 
(c) To simplify, the above calculation error has resulted in the imposition of an anti-
dumping duty as of 1999 until the present day,  while the correct calculation would 
have meant that no anti-dumping duty would have even been imposed once zeroing 
was removed from the calculation of the dumping margin. 
(d) The European Union challenged the use of ze roing in this investigation in the WTO 
Dispute Settlement case  United States – Laws, Regulations and Methodology for 
Calculating Dumping Margins ("Zeroing")  ("DS294").  The United States initiated 
proceedings under section 129 of the Uruguay Round Agreements Act ("Section 
129") in response to the Report of the Panel as modified by the Appellate Body in 
DS294.  In the Section 129 Preliminary Dete rmination regarding stainless sheet and 
strip from Italy, USDOC calculated a revised weighted-average margin for the exporter of 2.11 per cent.
2  A margin of less than 2 per cent would have resulted in 
the revocation of the Order.  The European Union and the exporter pointed out the 
mathematical error which, in this case, sp elled the difference between a negative and 
affirmative determination.  The United Stat es authorities refused to correct the error 
in the Section 129 determina tion.  TKAST made a claim of a ministerial error in the 
calculation of the margin of dumping and on 15 October 2007, the United States refused again, in the Ministerial Error Determination, to correct the error.  
                                                     
 
1 At the time of the original determination, the exporter was known as Acciai Speciali Terni S.P.A. 
2 A-421-807, A-427-820, A-428-830, A-475-829, A-412-822, A-401-806, A-469-807, A-475-820, 
A-423-808, A-475-824, A-475-818, A-475-826, A-412-818, A-427-816, A-427-814 
Section 129 Determinations 26 February 2007 Memorandum from Stephen Claeys, Deputy Assistant 
Secretary for Import Administration to David Spooner, Assistant Secretary for Import Administration.  WT/DS424/1 
 G/L/955 
 G/ADP/D88/1 
 Page 3 
  
  (e) The second five-year ("sunset") review in th is case was initiated on June 1, 2010.  In 
sunset reviews, the USDOC determines , whether dumping is likely to resume or 
continue if the Order is revoked.  In  carrying out such a review, the USDOC 
considers margins of dumping in the original  investigation (as modified in a later 
Section 129 determination) and in periodic ad ministrative reviews.  In the preliminary 
results of the second sunset review regarding stainless sheet and strip from Italy, dated 21 December 2010, the United States de termined that dumping was likely to 
continue or recur if the anti-dumping order were revoked, notably because of the 
dumping margin calculated in the original investigation, as amended by the 
Section 129 determination, a nd subsequent administrative reviews.  USDOC relied on 
the original investigation dumping marg in, as recalculated in the Section 129 
Determination, which was only above de minimis  because the above-referenced 
mathematical error was not corrected.   
3. Matters at issue 
 
 The matters, which the European Union would like  to raise in the course of the consultations 
include, but are not limited to, the following:  
(a) the impact of the arithmetic error identif ied above in the original investigation 
determination  regarding stainless sheet and strip from Italy, 
(b) the impact of the arithmetic error identified above in the Section 129 determination 
regarding stainless sheet and strip from Italy, 
(c) in the second sunset review of the anti-dum ping order regarding stainless sheet and 
strip from Italy, the use of the dumping margin from the original investigation, 
calculated without the correction of the known arithmetic error, resulting in the 
determination that revocation of the anti- dumping order would be likely to lead to 
continuation or recurrence of dumping. 
 The European Union is concerned that the me asures listed above appear  to be, in several 
respects, not in conformity with the obligations of the United States under the GATT 1994, and the AD Agreement , in particular under: 
 
− Articles 2, 5.8, 6.8, 9.3, 11.1, 11.2, and 11.3 of the AD Agreement ,  
 
− Article VI:2 of the GATT 1994. 
  The European Union reserves the right to address additional measures and claims under the 
WTO Agreement during the course of the consultations.   
 
 The European Union looks forward to receivi ng in due course a reply from the United States 
to this request.  The European Union is ready to consider with the United States mutually convenient 
dates to hold consultations in Geneva.  
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