WORLD TRADE  
ORGANIZATION   
WT/DS422/3 
14 October 2011 
 
 (11-5120) 
 Original:   English 
  
 
UNITED STATES – ANTI-DUMPING MEASURES ON CERTAIN  
SHRIMP AND DIAMOND SAWBLADES FROM CHINA 
 
Request for the Establishment of a Panel by China 
   The following communication, dated 13 October 2011, from the delegation of China to the Chairperson of the Dispute Settlement Body, is ci rculated pursuant to Article 6.2 of the DSU. 
 
_______________ 
 
 
On February 28, 2011 and July 22, 2011, the People's Republic of China ("China") requested 
consultations with the United States of America 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 of the Agreement on 
Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 ("Anti-Dumping 
Agreement") with regard to the "zeroing" practi ce by the United States Department of Commerce ( 
"USDOC") in its anti-dumping measures on certain frozen warmwater shrimp from China
1 and 
diamond sawblades and parts thereof from China2 respectively.  
Consultations were held on May 11, 2011 and September 8, 201 1.  While these consultations 
assisted in clarifying the issues before the par ties, they failed to resolve the dispute.  
Therefore, China respectfully requests, pursuant to Article XXIII of the GATT 1994, 
Articles 4 and 6 of the DSU, and Article 17.4 of  the Anti-Dumping Agreement, that the Dispute 
Settlement Body ("DSB") establish a panel to examine this matter.  
Specific Measures at Issue  
(1) Frozen Warmwater Shrimp 
The United States initiated an anti-dumping inves tigation of certain frozen warmwater shrimp 
from China on January 27, 2004 (Investigation No. A–570–893). The specific measures at issue in this dispute are the anti-dumping order imposed by the United States on certain frozen warmwater 
shrimp from China, as amended, and the final dete rmination by the USDOC, as amended, leading to 
that order. To be specific, these measures include :  
 Notice of Final Determination of Sales at Less Than Fair Value: Certain Frozen and Canned 
Warmwater Shrimp From the People's Republic of China , 69 Federal Register 70997 
(December 8, 2004);  
                                                      
1 See G/ADP/D87/1, G/L/953, WT/DS422/1.  
2 See G/ADP/D87/1/Add.1, G/L/953/Add.1, WT/DS422/1/Add.1.  WT/DS422/3 
Page 2  
 
   Notice of Amended Final Determination of Sal es at Less Than Fair Value and Antidumping 
Duty Order: Certain Frozen Warmwater Shr imp From the People's Republic of China , 70 
Federal Register 5149 (February 1, 2005); 
 Certain Frozen Warmwater Shrimp from  the People's Republic of China: Notice  of Second 
Amended Final Determination of Sales at Less Than Fair Value ， 71 Federal Register 47484 
(August 17, 2006); 
 Certain Frozen Warmwater Shrimp From Brazil,  India, the People's Republic of China, 
Thailand, and the Socialist Republic of Vietnam: Notice of Amended Final Determinations of 
Sales at Less Than Fair Value Pursuant to Court Decision , 75 Federal Register 53947 
(September 2, 2010); 
 Certain Frozen Warmwater Shrimp From Brazil,  India, the People's Republic of China, 
Thailand, and the Socialist Republic of Vi etnam: Amended Antidumping Duty Orders in 
Accordance with Final Court Decision, 76 Federal Register 23277 (April 26, 2011);3 
 Certain Frozen Warmwater Shrimp From the Pe ople's Republic of China: Notice of Amended 
Final Determination of Sales at Less Than Fair Value Pursuant to Court Decision , 76 Federal 
Register 30100 (May 24, 2011); 
 as well as any amendments to the measures identified above.  
In the final determination, as amended, th e USDOC used the "zeroing" methodology in 
determining the final dumping margins for thr ee individually investigated Chinese exporters4, for 
which margins above the 2 per cent de minimis level were calculated. 
(2) Diamond Sawblades and Parts Thereof 
The United States initiated an anti-dumping i nvestigation of diamond sawblades and parts 
thereof from China on June 21, 2005 (Investigation No. A-570-900).  The specific measures at issue 
in this dispute are the anti-dumping order imposed by the United States on diamond sawblades and 
parts thereof from China, as amended, and the final determination by the USDOC, as amended, 
leading to that order.  To be specific, these measures include:  
 Final Determination of Sales at Less Than Fair Value and Final Partial Affirmative 
Determination of Critical Circumstances: Diamond Sawblades and Parts Thereof from the 
People's Republic of China, 71 Federal Register 29303 (22 May 2006);  
 Notice of Amended Final Determination of Sales at Less Than Fair Value: Diamond 
Sawblades and Parts Thereof from th e People's Republic of China, 71 Federal Register 35864 
(22 June 2006);  
                                                      
3 On April 29, 2011, as a result of the determinations by the USDOC and the International Trade 
Commission ("ITC") that revocation of the antidumping duty orders on certain frozen warmwater shrimp from 
Brazil, India, China, Thailand, and the Socialist Republic  of Vietnam ("Vietnam") would be likely to lead to 
continuation or recurrence of dumping and of material in jury to an industry in the United States within a 
reasonably foreseeable time, the USDOC published a notice of the continuation of these antidumping duty 
orders.  See Certain Frozen Warmwater Shrimp From Brazil, India, the People’s Republic of China, Thailand, 
and the Socialist Republic of Vietnam: Continuation of Antidumping Duty Orders , 76 Federal Register 23972 
(April 29, 2011). 
4 The three exporters are Allied P acific Group ("Allied"), Yelin Enterprise Co Hong Kong ("Yelin") 
and Shantou Red Garden Foodstuff Co., Ltd. ("Red Garden").  WT/DS422/3 
 Page 3 
 
 
   Diamond Sawblades and Parts Thereof from the Pe ople's Republic of China and the Republic 
of Korea: Antidumping Duty Orders, 74 Federal Register 57145 (4 November 2009);  
 as well as any amendments to the measures identified above.  
In the final determination, as amended, th e USDOC used the "zeroing" methodology in 
determining the final dumping margins for thr ee individually investigated Chinese exporters5, for 
which margins above the 2 per cent de  minimis level were calculated. 
In respect of the two investigations identif ied above, the USDOC's methodology of "zeroing" 
negative dumping margins may be described more specifically in the following:  
a) different "models", i.e., types, of products are identified based on the most relevant 
product characteristics;  
b) weighted average prices in the United States and weighted average normal values in the 
comparison market are calculated on a model-specific basis for the entire period of investigation;  
c) the weighted average normal value of each m odel is compared to the weighted average 
United States price for that same model;  
d) to calculate the dumping margin for an exporter, the amount of dumping for each model 
is summed and then divided by the aggregat ed United States price for all models; and  
e) before summing the total amount of dumping for all models, all negative margins on 
individual models ( i.e., where the weighted average normal value is less than the 
weighted average export price ) are set to zero.  
Through this method, the USDOC calculates margins of dumping and collects cash deposits in 
amounts that exceed the actual extent of dumping, if any, by the said individually investigated 
exporters.  
In addition, in respect of the anti-dumping inv estigation of certain frozen warmwater shrimp, 
on the basis of the individual dumping margins cal culated with the application of zeroing, the 
USDOC further calculated a weighted-average margin (known as the "separate ra te") that applies to 
the cooperating non-mandatory respondents
6.  
The USDOC's unpublished Issues and Decisi on Memorandums as well as other documents 
contained in the administrative record of the investigations, including the computer programs, 
describe in more detail the USDOC's use of zeroi ng in the anti-dumping investigations of frozen 
warmwarter shrimp and diamond sawbla des and parts thereof from China. 
China considers that these measures are inconsiste nt with the obligations of the United States 
under the provisions of the GATT 1994 and the Anti-Dumping Agreement described below. 
                                                      
5 The three exporters are Advanced  Technology & Materials Co., Ltd. (including Beijing Gang Yan 
Diamond Products Company and Yichang HXF Circular Saw Industrial Co., Ltd.) ("AT&M"),  Bosun Tools 
Group Co., Ltd. ("Bosun") and Hebei Jikai Industrial Group Co., Ltd. ("Hebei Jikai").    
6 Such non-mandatory respondents were also required to pass the "separate-rate test" in order to receive 
the separate rate. WT/DS422/3 
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  The Legal Basis of the Complaint  
Through the use of "zeroing," the United States  treats transactions with negative dumping 
margins as having margins equal to zero in determ ining weighted average dumping margins in an 
anti-dumping investigation.  
The use of "zeroing" led the United States to find dumping where none would have otherwise 
been found or to calculate dumping margins that ar e inflated. China considers that, in the specific 
measures at issue as identified above, the USDOC' s use of "zeroing" in cal culating the margins of 
dumping for the individually investigated exporters  and the "separate rate" for the cooperating non-
mandatory respondents is inconsistent with th e obligations of the United States under the Anti-
Dumping Agreement. Specifically, China considers th at the measures are inconsistent with the first 
sentence of Article 2.4.2 of the Anti-Dumping Agreement.  
The "zeroing" methodology that the USDOC used in its anti-dumping investigations of shrimp 
and diamond sawblades from China is virtually iden tical to the methodology that was held to be 
inconsistent with the obligations of the Unite d States under the Anti-Dumping Agreement in the 
following disputes: United States - Final Dumping Determination on Softwood Lumber from 
Canada7; United States - Anti-Dumping Measures On Shrimp from Ecuador8; United States - Anti-
Dumping Measures on Polyethylene Retail Carrier Bags from Thailand9; and United States - 
Measures Relating to Shrimp from Thailand10. 
The forgoing paragraphs are provided without prejudice to any arguments that China may 
develop and present to the panel regarding the WTO-inconsistency of the measures at issue. 
Request for the Establishment of a Panel  
Accordingly, China requests pursuant to Article  XXIII of the GATT 1994, Articles 4 and 6 of 
the DSU, and Article 17.4 of the Anti-Dumping Agr eement, that the DSB establish a panel with the 
standard terms of reference as set out in Article 7.1 of the DSU. China asks that  this request be placed 
on the agenda of the meeting of the DSB scheduled for October 25, 2011. 
 
__________  
                                                      
7 Panel Report, WT/DS264/R, and Appellate Body Report, WT/DS264/AB/R, adopted on 
August 31, 2004.  
8 Panel Report, WT/DS335/R, adopted on February 20, 2007.  
9 Panel Report, WT/DS383/R, adopted on May 20, 2008.  
10 Panel Report, WT/DS343/R, adopted as modified by the Appellate Body on August 1, 2008.