WORLD TRADE  
ORGANIZATION  WT/DS343/1 
G/L/776 
G/ADP/D66/1 
27 April 2006 
 (06-1979) 
 Original:   English 
  
 
UNITED STATES – ANTI-DUMPING MEASURES ON SHRIMP FROM THAILAND 
 
Request for Consultations by Thailand
 
  
 The following communication, dated 24 April 2006, from the delegation of Thailand to the 
delegation of the United States and to the Chairman of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU.  
_______________ 
 
 
My authorities have instructed me to request consultations with the United States pursuant to 
Article 4 of the Understanding on Rules and Pro cedures Governing the Settlement of Disputes (the 
"DSU"), Article XXII:1 of the General Agreem ent on Tariffs and Trade 1994 (the "GATT") and 
Articles 17.2, 17.3 and 17.4 of the Agreement on Implementation of Article  VI of the General 
Agreement on Tariffs and Trade 1994 (the "AD Agreemen t") with respect to certain issues relating to 
the final anti-dumping measures imposed by th e United States on imports of certain frozen 
warmwater shrimp from Thailand.
 
  On 27 January 2004, pursuant to section 732 of the Tariff Act of 1930, as amended (the 
"Act"), the United States initiated an anti-dumping investigation in respect of certain frozen and 
canned warmwater shrimp imported from Thailand and several other countries.
1  On 28 July 2004, 
pursuant to section 733 of the Act, the United States preliminarily determined that certain frozen and 
canned warmwater shrimp from Tha iland were being dumped in the United States (the "Preliminary 
Determination").2  On 23 December 2004, the United Stat es published a final determination that 
frozen and canned warmwater shrimp from Thailand were being dumped in the United States (the 
"Final Determination").3  Following a determination by the US International Trade Commission that 
the US domestic industry was materially injure d by imports of frozen warmwater shrimp from 
Thailand but that there was no injury or threat ther eof to the US domestic industry regarding imports 
of canned warmwater shrimp from Thailand, the United States published an amended final 
determination of dumping and an anti-dumping dut y order imposing definitive anti-dumping duties 
                                                      
1 Initiation of Antidumping Duty Investigations: Certain Frozen and Canned Warmwater Shrimp from 
Brazil, Ecuador, India, Thailand, the People's Republic of China and the Socialist Republic of Vietnam , 
69 Fed. Reg. 3876 (27 January 2004).  
2 Notice of Preliminary Determination of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Negative Critical Circumstances De termination:  Certain Frozen and Canned Warmwater 
Shrimp from Thailand , 69 Fed. Reg. 47100 (4 August 2004). 
3 Notice of Final Determination of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Negative Final Determination of Critical Circumstances:  Certain Frozen and Canned 
Warmwater Shrimp from Thailand , 69 Fed. Reg. 76918 (23 December 2004). WT/DS343/1 
G/L/776 G/ADP/D66/1 
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  only on imports of certain frozen warmwater shrimp from Thailand (the "Amended Final 
Determination").
4    
 
 Thailand requests consultations on the United Stat es' application in the Preliminary, Final and 
Amended Final Determina tions of the practice known as "zeroing" negative dumping margins, the 
effect of which was artificially to create margin s of dumping where none would otherwise have been 
found or, at a minimum, to inflate margins of dumping and the consequent  imposition of definitive 
anti-dumping measures on imports of certain frozen warmwater shrimp from Thailand.  The United 
States' practice of "zeroing" has, in the rulings of the Appellate Body in United States – Final 
Dumping Determination of Softwood Lumber from Canada5 and United States – Laws, Regulations 
and Methodology for Calculating Dumping Margins ("Zeroing") ,6 previously been found to be 
inconsistent with the AD Agreement.  Thailand cons iders that through its use of "zeroing", the United 
States failed to make a fair comparison between the export price and the normal value, and calculated 
distorted margins of dumping, therefore violating Articles 1,  2.1, 2.4, 2.4.2, 3.1, 3.2, 3.3, 3.4, 3.5, 5.8, 
9.2 and 9.3 of the AD Agreement, as well as GATT Articles II, III, VI:1 and VI:2.     In addition, the United States has imposed on importers of frozen warmwater shrimp from 
Thailand a requirement to maintain a continuous bond in the amount of the anti-dumping duty margin 
multiplied by the value of imports of frozen wa rmwater shrimp imported by the importer in the 
preceding year.  This bond requirement was impo sed pursuant to the U.S. Customs and Border 
Protection ("CBP") agency's Amendment to B ond Directive 99-3510-004 for Certain Merchandise 
Subject to Antidumping/Countervailing Cases, dated 9 July 2004 (the "Amendment").  Prior to the 
adoption of this Amendment, importers of goods subject to US anti-dumping or countervailing duties 
were required to maintain a minimum bond only in th e amount of 10 per cent of the duties, taxes and 
fees paid by the importer on the subject merchandi se in the previous year.  In addition, the 
Amendment appears to selectively apply th e new bond requirement solely to certain 
agriculture/aquaculture goods.   The new continuous bond requirement set forth in  the Amendment is being applied to all US 
imports of frozen warmwater shrimp  from Thailand that are subject to anti-dumping duties.  As a 
result, importers of these goods must pay not onl y a cash deposit of estimated anti-dumping duties 
equal to the margin of dumping determined by the United States, but must also incur significant 
additional costs to obtain and maintain a conti nuous bond in the amount described above for each 
year's imports until the final assessment of anti-dumping duties on that year's imports.  Because the amount of final anti-dumping duty liability may not be established until after the completion of an 
annual administrative review of the margins of dum ping – the first of which, including any judicial 
appeals, may not be completed until up to five years after the imposition of the anti-dumping duties – the bond for each year's imports may have to be main tained for as long as five years.  Thailand is of 
the view that these measures raise the cost of im porting frozen warmwater shrimp from Thailand into 
the United States to prohibitive levels and that th ey are not necessary to secure compliance with the 
United States' anti-dumping laws.  
 
 
                                                     
 
4 Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order:  Certain Frozen Warmwater Shrimp from Thailand , 70 Fed. Reg. 5145 (1 February 2005).   
5 Appellate Body Report, United States – Final Dumping Determination of Softwood Lumber from 
Canada , WT/DS264/AB/R (adopted 31 August 2004). 
6 Appellate Body Report, United States – Laws, Regulations and Methodology for Calculating 
Dumping Margins ("Zeroing") , WT/DS294/AB/R (18 April 2006) (not yet adopted).  WT/DS343/1 
 G/L/776 
 G/ADP/D66/1 
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   Thailand therefore also requests consultations  on this continuous bond requirement as such 
and on its application to imports of  frozen warmwater shrimp from Thailand.  Thailand considers that 
the continuous bond requirement and its applicati on to imports of frozen warmwater shrimp from 
Thailand may be inconsistent with Article 18.1 of the AD Agreement, in that they constitute specific 
action against dumping not in accordance with the provisions of the GATT as interpreted by the AD 
Agreement, including Article VI:2 and the Ad Article thereto.  In addition, Thailand considers that the 
continuous bond requirement as such and its appli cation to imports of frozen warmwater shrimp from 
Thailand may be inconsistent with the provisions of Articles 7.1, 7.2 and 7.5 of the AD Agreement 
regarding the imposition of provisional measures and with Articles 2, 9.2, and 9.3 of the 
AD Agreement regarding the imposition and collection of anti-dumping duties.     Thailand also considers that the continuous b ond requirement as such and its application to 
imports of frozen warmwater shrimp from Thailand may be inconsistent with Articles I:1, II, III, XI:1, 
and XIII:1 of the GATT and may not be jus tified under Article XX(d) of the GATT.   
  Thailand considers that the foregoing actions, methodologies, calculations, comparisons and determinations made by the United States cannot be reconciled with Articles I, II, III, VI, XI and XIII 
of the GATT, and Article 1 and the other specifi c provisions of the AD Agreement cited above.  
Thailand reserves the right to raise issues relating to other aspects of the Preliminary, Final and 
Amended Final Determinations and the continuous bond requirement during the course of the 
consultations.   Thailand looks forward to receiving your reply to  this request at your earliest convenience.  I 
propose that the date and venue of these consu ltations be agreed between our two missions. 
 
__________