WORLD TRADE  
ORGANIZATION  WT/DS294/RW 
17 December 2008 
 
 (08-6092) 
 Original:   English 
  
 
     
 
    
 
UNITED STATES – LAWS , REGULATIONS AND 
METHODOLOGY FOR CALCULATING 
DUMPING MARGINS ("ZEROING") 
 
Recourse to Article 21 .5 of the DSU by the European Communities  
 
  
Report of the Panel 
    
 
    
 
   
    WT/DS294/RW 
   Page i  
 
 
 TABLE OF CONTENTS 
Page
 
 
I. INTRODUCTION ................................................................................................................... ....................1  
II. BACKGROUND..................................................................................................................... .................2  
A. INTRODUCTION ............................................................................................................................... ............2  
B. THE US ANTI -DUMPING SYSTEM ..................................................................................................................2  
1. Original in vestiga tions........................................................................................................ ..................2  
2. Administrati ve revi ews......................................................................................................... .................3  
3. Sunset r eviews................................................................................................................. ......................4  
C. FINDINGS BY THE PANEL AND THE APPELLATE BODY IN THE ORIGINAL DISPUTE .........................................4  
1. Panel .......................................................................................................................... ...........................4  
(a) "As applied" claims – model zeroi ng in original investigations................................................................. ...4 
(b) "As applied" claims –  zeroing in administrati ve reviews....................................................................... ......5 
(c) "As such" claims............................................................................................................... ............................5  
(d) Recommendation ................................................................................................................. .........................6  
(e) Dissenting opinion by  one panelist ............................................................................................. ..................6  
2. Appellate Body ................................................................................................................. .....................7  
(a) "As applied" claims – simple zer oing in administ rative reviews ................................................................. .7 
(b) Zeroing "as such"  in or iginal inve stigations.................................................................................. ...............7  
(c) Zeroing "as such" in ad ministrative reviews.................................................................................... .............7  
(d) "As such" claims – USDOC Regulations........................................................................................... ...........8  
(e) Recommendation ................................................................................................................. .........................8  
3. DSB recommendatio ns and rulings................................................................................................ .......8  
III. FACTUAL ASPECTS................................................................................................................ .............9  
A. RELEVANT DEVELOPMENTS CONCERNING THE US MEASURES AT ISSUE IN THE ORIGINAL DISPUTE .............9  
B. MEASURES AT ISSUE ............................................................................................................................... ..11 
IV. PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS .....................................12  
A. EUROPEAN COMMUNITIES .........................................................................................................................12  
B. UNITED STATES ............................................................................................................................... ..........14  
V. ARGUMENTS OF THE PART IES ....................................................................................................... ..14 
A. US REQUEST FOR PRELIMINARY RULINGS ..................................................................................................14  
1. United St ates .................................................................................................................. .....................14  
2. European Co mmunitie s........................................................................................................... ............26  
B. PANEL COMPOSITION ............................................................................................................................... .32 
1. European Co mmunitie s........................................................................................................... ............32  
2. United St ates .................................................................................................................. .....................33  
C. VIOLATIONS WITH RESPECT TO ALL MEASURES COVERED IN THIS PROCEEDING ........................................33  
1. Whether the United States extended the measures challenged in the original dispute pursuant to 
sunset review proceedings which relied on du mping margins calculated with zeroing...............................33  
(a) European Co mmunities........................................................................................................... ....................33  
(b) United States.................................................................................................................. .............................35  
2. Whether the United States continues to collect anti-dumping duties and impose cash deposits inflated 
by zeroing after 9 April 2007, has failed to revoke the original orders entirely, and whether the 16 
administrative reviews challenged in the or iginal dispute have been "superseded" ...................................36  
(a) European Co mmunities........................................................................................................... ....................36  
(b) United States.................................................................................................................. .............................43  
3. Whether the United States failed to put into effect new measures between 9 April and 23 April/31 
August 2007 .................................................................................................................... .............................50  
(a) European Co mmunities........................................................................................................... ....................50  
(b) United States.................................................................................................................. .............................52  
D. VIOLATIONS WITH RESPECT TO SPECIFIC MEASURES (SECTION 129  DETERMINATIONS ).............................52  WT/DS294/RW  
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 1. Whether there has been a violation in respect of ca se 11 – Stainless Steel Sheet and Strip in Coils 
from Italy ..................................................................................................................... ................................52  
(a) European Co mmunities........................................................................................................... ....................52  
(b) United States.................................................................................................................. .............................55  
2. Whether there has been a violation in respect of cases 2, 4 and 5 – Stainless Steel Bar from France, 
Italy and the United Kingdom  ("all others" rate) ............................................................................... .........57  
(a) European Co mmunities........................................................................................................... ....................57  
(b) United States.................................................................................................................. .............................60  
3. Whether there has been a violation in respect of cases 2, 3, 4 and 5 – Stainless Steel Bar from 
France, Germany, Italy and th e United Kingdom  ("injury") ....................................................................... 61 
(a) European Co mmunities........................................................................................................... ....................61  
(b) United States.................................................................................................................. .............................63  
4. Requests fo r findings.......................................................................................................... .................64  
(a) European Co mmunities........................................................................................................... ....................64  
(b) United States.................................................................................................................. .............................66  
VI. ARGUMENTS OF THE THIRD PARTIES.......................................................................................66  
1. India .......................................................................................................................... ..........................66  
2. Japan.......................................................................................................................... .........................68  
3. Korea.......................................................................................................................... .........................77  
4. Norway......................................................................................................................... .......................81  
VII. INTERIM REVIEW ................................................................................................................. ............84  
A. EC REQUESTS FOR REVIEW ........................................................................................................................85  
B. US REQUESTS FOR REVIEW ........................................................................................................................87  
C. REQUESTS BY BOTH PARTIES CONCERNING TH E SAME ASPECTS OF THE INTERIM REPORT .........................91  
VIII. FINDINGS ....................................................................................................................... ..................92  
A. ORDER OF THE PANEL 'S ANALYSIS ...........................................................................................................92  
B. RELEVANT PRINCIPLES REGARDING STANDARD OF REVIEW , TREATY INTERPRETATION AND BURDEN OF 
PROOF ............................................................................................................................... ................................92  
1. Rules of treaty interpretation ................................................................................................. .............92  
2. Standard of  review ............................................................................................................. .................92  
3. Burden of  proof ................................................................................................................ ...................93  
C. EC CLAIMS WITH RESPECT TO THE COMPOSITION OF THE PANEL ..............................................................94  
1. Main arguments of  the parties .................................................................................................. ..........94  
2. Evaluation by the Panel ........................................................................................................ ..............95  
D. US REQUEST FOR PRELIMINARY RULINGS .................................................................................................96  
1. Whether the European Communities makes claims with  respect to measures that were not identified 
in its panel  request........................................................................................................... ............................96  
(a) Main arguments of  the parties.................................................................................................. ...................96  
(b) Main arguments of the third parties ............................................................................................ ................98  
(c) Evaluation by the Panel ........................................................................................................ ......................98  
2. Whether the "subsequent reviews" fall within our terms of reference............................................... 101  
(a) Arguments of the parties....................................................................................................... ....................101  
(b) Arguments of the third parties ................................................................................................. .................108  
(c) Evaluation by the Panel ........................................................................................................ ....................110  
(i) Introduc tion ................................................................................................................... ...........................110  
(ii) Whether the subsequent reviews are "amendments" to the measures at issue in the original dispute ..116  
(iii) Whether the subsequent reviews fall  within our terms of reference as "omissions" or "deficiencies" in 
the US implementation of the DS B's recommendations  and rulings ................................................................. .124 
(iv) Whether the subsequent reviews are measures taken to comply because they have a sufficiently close 
nexus with the measures at issue in the original  dispute and the DSB reco mmendations a nd rulings................125  
Relevant legal  principles ...................................................................................................... .........................125  
Application of a nexus-based test in th e context of trade remedy disputes ....................................................13 0 
Nature and effects............................................................................................................. .............................132  
Administrative reviews subsequent to original determinations or earlier administrative reviews (a 
and c)......................................................................................................................... ...............................134     WT/DS294/RW 
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 Sunset reviews subsequent to original determinatio ns and earlier administrative reviews (b and d)
............................................................................................................................... ...................................136  
Temporal re lations hip .......................................................................................................... .........................136  
Application to the fa cts of this case .......................................................................................... .....................138  
(v) Conclu sion ..................................................................................................................... ......................141  
E. EC GENERAL CLAIMS THAT THE UNITED STATES FAILED TO FULLY IMPLEMENT THE DSB 'S 
RECOMMENDATIONS AND RULINGS ................................................................................................................. 142  
1. Introduc tion................................................................................................................... .................... 142  
2. EC claims with respect to s ubsequent sunset  reviews ....................................................................... 143  
(a) Main arguments of  the parties.................................................................................................. .................143  
(b) Main arguments of the third parties ............................................................................................ ..............144  
(c) Evaluation by the Panel ........................................................................................................ ....................144  
3. EC claims with respect to subsequent administra tive reviews and with respect to US actions to 
collect AD duties calcul ated with zeroing...................................................................................... ............ 147  
(a) Main arguments of  the parties.................................................................................................. .................147  
(b) Main arguments of the third parties ............................................................................................ ..............154  
(c) Evaluation by the Panel ........................................................................................................ ....................156  
(i) Temporal aspect of the obligation to implement DSB recommendations and rulings with respect to AD 
measures in the case of a Member operating a retrospective duty a ssessment system .......................................156  
Whether the US obligation to implement extends to adm inistrative reviews covering imports made before the 
end of the reasonabl e period of  time........................................................................................... ...................158  
Whether the US obligation to implement extends to the liqui dation of duties................................................165  
(ii) Application to the fact s of this dispute....................................................................................... ..........168  
EC claims concerning liquidation of entries after th e end of the reasonable period of time pursuant to 
determinations of final liabi lity made before  that date ........................................................................ ..........169  
EC claims concerning assessment instru ctions and cash deposit ra tes .........................................................170  
Case 1 (Hot Rolled Carbon St eel from the Ne therlands).....................................................................170  
Case 6 (Stainless Steel Wire Rod from Sweden).................................................................................. .172 
Case 31 (Ball Bearin gs from the UK) ............................................................................................ ........173  
EC claims that the United States has failed to comply  with the DSB's recommendati ons in the original dispute 
because it has failed to fully revoke the original investigation orders contes ted in the original dispute and EC 
claims that the administrative reviews at issue in the original dispute have  not been superseded ................175  
F. REQUEST FOR FINDINGS REGARDING THE NON -EXISTENCE OF MEASURES TAKEN TO COMPLY BETWEEN 9 
APRIL AND 23 APRIL /31 AUGUST 2007............................................................................................................. 176  
1. Main arguments of  the parties .................................................................................................. ........ 176  
2. Evaluation by the Panel ........................................................................................................ ............ 177  
G. EC CLAIMS OF VIOLATIONS CONCERNING CERTAIN SECTION 129  DETERMINATIONS ............................... 178  
1. EC claims with respect to the Section 129 determination in case 11 (Stainless Steel Sheet and Strip in 
Coils from  Italy).............................................................................................................. ........................... 178  
(a) Main arguments of  the parties.................................................................................................. .................178  
(b) Main arguments of the third parties ............................................................................................ ..............181  
(c) Evaluation by the Panel ........................................................................................................ ....................181  
2. EC claims with respect to the Section 129 determinations in cases 2, 3, 4 and 5 (Stainless Steel Bar 
from France, Germany, Ital y and the Unite d Kingdom)............................................................................ 185 
(a) Introduction and authority of the Panel to addre ss claims with respect to revoked m easures...................185  
(b) EC claims with respect to "injury" – Section 129 determinations in cas es 2, 3, 4 and 5...........................186  
(i) Main arguments of  the parties.................................................................................................. .................186  
(ii) Evaluation by the Panel........................................................................................................ ................188  
Whether the EC claims ar e properly before us................................................................................... ...........188  
Substance of th e EC claim ...................................................................................................... .......................193  
(c) EC claims with respect to the "all others" rate es tablished in the Section 129 determinations in cases 
 2, 4 and 5 .................................................................................................................... ..............................195  
(i) Main arguments of  the parties.................................................................................................. .................195  
(ii) Arguments of the third parties................................................................................................. .............197  
(iii) Evaluation by the Panel........................................................................................................ ................197  
IX. CONCLUSIONS AND RE COMMENDATIO N............................................................................... 200  
 WT/DS294/RW  
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 LIST OF ANNEXES 
 
 
ANNEX A 
 
REQUEST FOR THE  
ESTABLISHMENT OF A PANEL 
 
Contents Page 
Annex A-1 Request for the Establishment of a Panel by the European 
  Communities  A-2 
 
 
 
 
 
     WT/DS294/RW 
   Page v  
 
 
 TABLE OF CASES CITED IN THIS REPORT 
 
Short Title Full Case Title and Citation 
Argentina – Footwear (EC)  Appellate Body Report, Argentina – Safeguard Measures on Imports of 
Footwear , WT/DS121/AB/R, adopted 12 January 2000, DSR 2000:I, 
515 
Argentina – Poultry Anti-Dumping Duties Panel Report, Argentina – Definitive Anti-Dumping Duties on Poultry 
from Brazil , WT/DS241/R, adopted 19 May 2003, DSR 2003:V, 1727 
Argentina – Textiles and 
Apparel  Panel Report, Argentina – Measures Affec ting Imports of Footwear, 
Textiles, Apparel and Other Items , WT/DS56/R, adopted 22 April 1998, 
as modified by Appellate Body Report, WT/DS56/AB/R, DSR 1998:III, 
1033 
Australia – Automotive Leather II (Article 21.5 – US)
  Panel Report, Australia – Subsidies Provided to Producers and 
Exporters of Automotive Leather – Recourse to Article 21.5 of the DSU 
by the United States , WT/DS126/RW and Corr.1, adopted 
11 February 2000, DSR 2000:III, 1189 
Australia – Salmon  (Article 21.5 – Canada)
  Panel Report, Australia – Measures Affec ting Importation of Salmon – 
Recourse to Article 21.5 of the DSU by Canada , WT/DS18/RW, adopted 
20 March 2000, DSR 2000:IV, 2031 
Brazil – Aircraft  Appellate Body Report, Brazil – Export Financing Programme for 
Aircraft , WT/DS46/AB/R, adopted 20 August 1999, DSR 1999:III, 1161 
Brazil – Aircraft  Panel Report, Brazil – Export Financing Programme for Aircraft , 
WT/DS46/R, adopted 20 August 1999, as modified by Appellate Body 
Report, WT/DS46/AB/R, DSR 1999:III, 1221 
Brazil – Aircraft  
(Article 21.5 – Canada)  Panel Report, Brazil – Export Financing Programme for Aircraft – 
Recourse by Canada to Article 21.5 of the DSU , WT/DS46/RW, adopted 
4 August 2000, as modified by Appellate Body Report, WT/DS46/AB/RW, DSR 2000:IX, 4093 
Canada – Aircraft  (Article 21.5 – Brazil)
  Appellate Body Report, Canada – Measures Affecting the Export of 
Civilian Aircraft – Recourse by Brazil to Article 21.5 of the DSU , 
WT/DS70/AB/RW, adopted 4 August 2000, DSR 2000:IX, 4299 
Canada – Wheat Exports and Grain Imports Panel Report, Canada – Measures Relating to Exports of Wheat and 
Treatment of Imported Grain , WT/DS276/R, adopted 
27 September 2004, upheld by  Appellate Body Report, 
WT/DS276/AB/R, DSR 2004:VI, 2817 
Chile – Price Band System  Appellate Body Report, Chile – Price Band System and Safeguard 
Measures Relating to Certain Agricultural Products , WT/DS207/AB/R, 
adopted 23 October 2002, DSR 2002:VIII, 3045, and Corr.1 
Chile – Price Band System Panel Report, Chile – Price Band System and Safeguard Measures 
Relating to Certain Agricultural Products , WT/DS207/R, adopted 
23 October 2002, as modified by Appellate Body Report, WT/DS207AB/R, DSR 2002:VIII, 3127 WT/DS294/RW  
Page vi  
 
 
 Short Title Full Case Title and Citation 
Chile – Price Band System 
(Article 21.5 – Argentina) Appellate Body Report, Chile – Price Band System and Safeguard 
Measures Relating to Certain Ag ricultural Products – Recourse to 
Article 21.5 of the DSU by Argentina , WT/DS207/AB/RW, adopted 
22 May 2007 
Dominican Republic – Import and Sale of Cigarettes Panel Report, Dominican Republic – Measures Affecting the Importation 
and Internal Sale of Cigarettes , WT/DS302/R, adopted 19 May 2005, as 
modified by Appellate Body Report, WT/DS302/AB/R, DSR 2005:XV, 
7425 
EC – Bananas III   
(Article 21.5 – Ecuador)  Panel Report, European Communities – Regime for the Importation, 
Sale and Distribution of Bananas – Recourse to Article 21.5 of the DSU 
by Ecuador , WT/DS27/RW/ECU, adopted 6 May 1999, DSR 1999:II, 
803 
EC – Bananas III   
(Article 21.5 – US) Panel Report, European Communities – Regime for the Importation, 
Sale and Distribution of Bananas – Recourse to Article 21.5 of the DSU 
by the United States , WT/DS27/RW/USA and Corr.1, circulated to 
WTO Members 19 May 2008 [adoption pending] 
EC – Bed Linen Appellate Body Report, European Communities – Anti-Dumping Duties 
on Imports of Cotton-Type  Bed Linen from India , WT/DS141/AB/R, 
adopted 12 March 2001, DSR 2001:V, 2049 
EC – Bed Linen Panel Report, European Communities – Anti-Dumping Duties on 
Imports of Cotton-Type Bed Linen from India , WT/DS141/R, adopted 12 
March 2001, as modified by Appellate  Body Report, WT/DS141/AB/R, 
DSR 2001:VI, 2077 
EC – Bed Linen  (Article 21.5 – India)
  Appellate Body Report, European Communities – Anti-Dumping Duties 
on Imports of Cotton-Type Bed Li nen from India – Recourse to 
Article 21.5 of the DSU  by India , WT/DS141/AB/RW, adopted 
24 April 2003, DSR 2003:III, 965  
EC – Bed Linen  
(Article 21.5 – India)  Panel Report, European Communities – Anti-Dumping Duties on 
Imports of Cotton-Type Bed Linen fr om India – Recourse to Article 21.5 
of the DSU  by India , WT/DS141/RW, adopted 24 April 2003, as 
modified by Appellate Body Report, WT/DS141/AB/RW, DSR 2003:IV, 1269  
EC – Chicken Cuts Appellate Body Report, European  Communities – Customs 
Classification of Frozen Boneless Chicken Cuts , WT/DS269/AB/R, 
WT/DS286/AB/R, adopted 27 September 2005, and Corr.1, DSR 2005:XIX, 9157 
EC – Salmon (Norway) Panel Report, European Communities – Anti-Dumping Measure on 
Farmed Salmon from Norway , WT/DS337/R, adopted 15 January 2008 
Guatemala – Cement I  Appellate Body Report, Guatemala – Anti-Dumping Investigation 
Regarding Portland Cement from Mexico , WT/DS60/AB/R, adopted 
25 November 1998, DSR 1998:IX, 3767 
Guatemala – Cement II  Panel Report, Guatemala – Definitive Anti-Dumping Measures on Grey 
Portland Cement from Mexico , WT/DS156/R, adopted 
17 November 2000, DSR 2000:XI, 5295    WT/DS294/RW 
   Page vii  
 
 
 Short Title Full Case Title and Citation 
India – Autos  Panel Report, India – Measures Affecting the Automotive Sector , 
WT/DS146/R, WT/DS175/R and Corr.1, adopted 5 April 2002, DSR 2002:V, 1827 
Indonesia – Autos  Panel Report, Indonesia – Certain Measures Affecting the Automobile 
Industry , WT/DS54/R, WT/DS55/R, WT/DS59/R, WT/DS64/R and 
Corr.1 and 2, adopted 23 July 1998, and Corr.3 and 4, DSR 1998:VI, 2201 
Japan – Film  Panel Report, Japan – Measures Affecting Consumer Photographic Film 
and Paper , WT/DS44/R, adopted 22 April 1998, DSR 1998:IV, 1179 
US – 1916 Act (Japan)  Panel Report, United States – Anti-Dumping Act of 1916, Complaint by 
Japan , WT/DS162/R and Add.1, adopted 26 September 2000, upheld by 
Appellate Body Report, WT/DS136/AB/R, WT/DS162/AB/R, 
DSR 2000:X, 4831 
US – Anti-Dumping Measures on Oil Country Tubular Goods Appellate Body Report, United States – Anti-Dumping Measures on Oil 
Country Tubular Goods (OCTG) from Mexico , WT/DS282/AB/R, 
adopted 28 November 2005, DSR 2005:XX, 10127 
US – Anti-Dumping Measures on Oil Country Tubular Goods Panel Report, United States – Anti-Dumping Measures on Oil Country 
Tubular Goods (OCTG) from Mexico , WT/DS282/R, adopted 
28 November 2005, as modified by Appellate Body Report, WT/DS282/AB/R, DSR 2005:XXI, 10225 
US – Carbon Steel  Appellate Body Report, United States – Countervailing Duties on 
Certain Corrosion-Resistant Carbon Steel Flat Products from Germany , 
WT/DS213/AB/R and Corr.1, adopted 19 December 2002, 
DSR 2002:IX, 3779 
US – Carbon Steel  Panel Report, United States – Countervailing Duties on Certain 
Corrosion-Resistant Carbon Steel Flat Products from Germany , 
WT/DS213/R and Corr.1, adopted 19 December 2002, as modified by Appellate Body Report, WT/DS213/AB/R, DSR 2002:IX, 3833 
US – Corrosion-Resistant Steel Sunset Review
  Appellate Body Report, United States – Sunset Review of Anti-Dumping 
Duties on Corrosion-Resistant Carbon Steel Flat Products from Japan , 
WT/DS244/AB/R, adopted 9 January 2004, DSR 2004:I, 3  
US – Corrosion-Resistant 
Steel Sunset Review  Panel Report, United States – Sunset Review of Anti-Dumping Duties on 
Corrosion-Resistant Carbon Steel Flat Products from Japan , 
WT/DS244/R, adopted 9 January 2004, as modified by Appellate Body 
Report, WTDS244/AB/R, DSR 2004:I, 85  
US – Cotton Yarn Appellate Body Report, United States – Transitional Safeguard Measure 
on Combed Cotton Yarn from Pakistan , WT/DS192/AB/R, adopted 5 
November 2001, DSR 2001:XII, 6027 
US – Countervailing Measures on Certain EC Products (Article 21.5 – EC) Panel Report, United States – Countervailing Measures Concerning 
Certain Products from the Eur opean Communities – Recourse to 
Article 21.5 of the DSU by the European Communities , WT/DS212/RW, 
adopted 27 September 2005, DSR 2005:XVIII, 8950 WT/DS294/RW  
Page viii  
 
 
 Short Title Full Case Title and Citation 
US –  Customs Bond 
Directive Panel Report, United States – Customs Bond Directive for Merchandise 
Subject to Anti-Dumping/Countervailing Duties , WT/DS345/R, adopted 
1 August 2008, as modified by Appellate Body Report, WT/DS343/AB/R, WT/DS345/AB/R 
US – FSC  
(Article 21.5 – EC) Appellate Body Report, United States – Tax Treatment for "Foreign 
Sales Corporations" – Recourse to Article 21.5 of the DSU by the 
European Communities , WT/DS108/AB/RW, adopted 29 January 2002, 
DSR 2002:I, 55 
US – FSC  (Article 21.5 – EC II) Appellate Body Report, United States – Tax Treatment for "Foreign 
Sales Corporations" – Second Recourse to Article 21.5 of the DSU by 
the European Communities , WT/DS108/AB/RW2, adopted 
14 March 2006 
US – Gasoline Panel Report, United States – Standards for Reformulated and 
Conventional Gasoline , WT/DS2/R, adopted 20 May 1996, as modified 
by Appellate Body Report, WT/DS2/AB/R, DSR 1996:I, 29 
US – Hot-Rolled Steel  Appellate Body Report, United States – Anti-Dumping Measures on 
Certain Hot-Rolled Steel Products from Japan , WT/DS184/AB/R, 
adopted 23 August 2001, DSR 2001:X, 4697 
US – Oil Country Tubular Goods Sunset Reviews  
(Article 21.5 – Argentina) Appellate Body Report, United States – Sunset Reviews of Anti-Dumping 
Measures on Oil Country Tubular Good s from Argentina – Recourse to 
Article 21.5 of the DSU by Argentina , WT/DS268/AB/RW, adopted 
11 May 2007 
US – Section 129(c)(1) URAA  Panel Report, United States – Section 129(c)(1) of the Uruguay Round 
Agreements Act , WT/DS221/R, adopted 30 August 2002, DSR 2002:VII, 
2581 
US – Shrimp  
(Article 21.5 – Malaysia) Appellate Body Report, United States – Import Prohibition of Certain 
Shrimp and Shrimp Products – Recourse  to Article 21.5 of the DSU by 
Malaysia , WT/DS58/AB/RW, adopted 21 November 2001, DSR 
2001:XIII, 6481 
US – Shrimp  (Article 21.5 – Malaysia)  Panel Report, United States – Import Prohibition of Certain Shrimp and 
Shrimp Products – Recourse to Artic le 21.5 of the DSU by Malaysia , 
WT/DS58/RW, adopted 21 November 2001, upheld by Appellate Body 
Report, WT/DS58/AB/RW, DSR 2001:XIII, 6529 
US – Shrimp (Thailand) /  US –  Customs Bond 
Directive Appellate Body Report, United States – Measures Relating to Shrimp 
from Thailand / United States – Customs Bond Directive for 
Merchandise Subject to Anti-Dumping/Countervailing Duties , 
WT/DS343/R, WT/DS345/R, circulated to WTO Members 16 July 2008 [adoption pending] 
US – Shrimp (Thailand) Panel Report, United States – Measures Relating to Shrimp from 
Thailand , WT/DS343/R, adopted 1 August 2008, as modified by 
Appellate Body Report, WT/DS343/AB/R, WT/DS345/AB/R    WT/DS294/RW 
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 Short Title Full Case Title and Citation 
US – Softwood Lumber IV 
(Article 21.5 – Canada) Appellate Body Report, United States – Final Countervailing Duty 
Determination with Respect to Certain Softwood Lumber from Canada – 
Recourse by Canada to Article 21.5 of the DSU , WT/DS257/AB/RW, 
adopted 20 December 2005, DSR 2005:XXIII, 11357 
US – Softwood Lumber IV (Article 21.5 – Canada) Panel Report, United States – Final Countervailing Duty Determination 
with Respect to Certain Softwood Lumber from Canada – Recourse by 
Canada to Article 21.5 [of the DSU] , WT/DS257/RW, adopted 
20 December 2005 , upheld by Appellate Body Report, 
WT/DS257/AB/RW, DSR 2005:XXIII, 11401 
US – Softwood Lumber V Appellate Body Report, United States – Final Dumping Determination 
on Softwood Lumber from Canada , WT/DS264/AB/R, adopted 
31 August 2004, DSR 2004:V, 1875 
US – Stainless Steel (Mexico) Appellate Body Report, United States – Final Anti-Dumping Measures 
on Stainless Steel from Mexico , WT/DS344/AB/R, adopted 
20 May 2008 
US – Stainless Steel (Mexico) Panel Report, United States – Final Anti-Dumping Measures on 
Stainless Steel from Mexico , WT/DS344/R, adopted 20 May 2008, as 
modified by Appellate Body Report, WT/DS344/AB/R 
US – Upland Cotton Panel Report, United States – Subsidies on Upland Cotton , 
WT/DS267/R, Corr.1, and Add.1 to Add.3, adopted 21 March 2005, as 
modified by Appellate Body Report, WT/DS267/AB/R, DSR 2005:II, 
299 
US – Upland Cotton (Article 21.5 – Brazil) Appellate Body Report, United States – Subsidies on Upland Cotton – 
Recourse to Article 21.5 of the DSU by Brazil , WT/DS267/AB/RW, 
adopted 20 June 2008 
US – Upland Cotton (Article 21.5 – Brazil) Panel Report, United States – Subsidies on Upland Cotton – Recourse to 
Article 21.5 of the DSU by Brazil , WT/DS267/RW and Corr.1, adopted 
20 June 2008, as modified by Appellate Body Report, WT/DS267/AB/RW 
US – Wool Shirts and Blouses  Appellate Body Report, United States – Measure Affecting Imports of 
Woven Wool Shirts and Blouses from India , WT/DS33/AB/R, adopted 
23 May 1997, and Corr.1, DSR 1997:I, 323  
US – Wool Shirts and 
Blouses Panel Report, United States – Measure Affecting Imports of Woven Wool 
Shirts and Blouses from India , WT/DS33/R, adopted 23 May 1997, 
upheld by Appellate Body Report, WT/DS33/AB/R, DSR 1997:I, 343 
US – Zeroing (EC) Appellate Body Report, United States – Laws, Regulations and 
Methodology for Calculating Dumping Margins ("Zeroing") , 
WT/DS294/AB/R, adopted 9 May 2006, and Corr.1, DSR 2006:II, 417 
US – Zeroing (EC) Panel Report, United States – Laws, Regulations and Methodology for 
Calculating Dumping Margins ("Zeroing") , WT/DS294/R, adopted 
9 May 2006, as modified by Appella te Body Report, WT/DS294/AB/R, 
DSR 2006:II, 521 WT/DS294/RW  
Page x  
 
 
 Short Title Full Case Title and Citation 
US – Zeroing (Japan) Appellate Body Report, United States – Measures Relating to Zeroing 
and Sunset Reviews , WT/DS322/AB/R, adopted 23 January 2007 
US – Zeroing (Japan) Panel Report, United States – Measures Rela ting to Zeroing and Sunset 
Reviews , WT/DS322/R, adopted 23 January 2007, as modified by 
Appellate Body Report, WT/DS322/AB/R 
   WT/DS294/RW 
 Page 1 
 
 
 I. INTRODUCTION 
1.1 On 13 September 2007, the European Communities requested the establishment of a panel 
pursuant to Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes ("DSU") concerning the alleged failure  of the United States to implement the 
recommendations and rulings of the Dispute Settlement Body ("DSB") in United States – Laws , 
Regulations and Methodology for Calculating Dumping Margins ("Zeroing") .1 
1.2 At its meeting on 25 September 2007, the Di spute Settlement Body ("DSB") decided, in 
accordance with Article 21.5 of the DSU, to refer th is matter, if possible, to the original panel. 
1.3 The Panel's terms of reference are the following: 
"To examine, in the light of the relevant provisions of the covered agreements cited 
by the European Communities in document WT/DS294/25, the matter referred to the 
DSB by the European Communiti es in that document, and to  make such findings as 
will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements." 
1.4 On 28 November 2007, the European Commun ities requested the Director-General to 
determine the composition of the Panel. 
1.5 Article 8.7 of the DSU provides: 
"If there is no agreement on the panelists within 20 days after the date of the 
establishment of a panel, at the request of  either party, the Director-General, in 
consultation with the Chairman of the DSB and the Chairman of the relevant Council 
or Committee, shall determine the com position of the panel by appointing the 
panelists whom the Director-General consid ers most appropriate in accordance with 
any relevant special or additional rules or  procedures of the covered agreement or 
covered agreements which are at issue in th e dispute, after consulting with the parties 
to the dispute.  The Chairman of th e DSB shall inform the Members of the 
composition of the panel thus formed no later than 10 days after the date the 
Chairman receives such a request." 
1.6 On 30 November 2007, the Director-Gener al composed the Panel as follows:   
 Chairperson: Mr. Felipe Jaramillo 
  Members: Ms Usha Dwarka-Canabady     Mr. Scott Gallacher
2  
 
1.7 India, Japan, Korea, Mexico, Norway, Chinese Taipei and Thailand reserved their rights to 
participate in the Panel proceedings as third parties. 
1.8 The Panel met with the parties to the dispute on 9-10 April 2008.  The Panel met with the 
third parties on 10 April 2008.   
1.9 The Panel submitted its interim report to the parties on 12 August 2008 and submitted its final 
report to the parties on 10 October 2008. 
                                                      
1 WT/DS294/25. 
2 WT/DS294/26. WT/DS294/RW  
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 II. BACKGROUND 
A. 
INTRODUCTION  
2.1 This dispute concerns the implementation by the United States of the DSB's recommendations 
and rulings in US – Zeroing (EC) , the original dispute.  The report of the panel in the original dispute 
was circulated to Members on 31 October 2005; the re port of the Appellate Body was circulated to 
Members on 18 April 2006.  On 9 May 2006, the DSB adopted the report of the Appellate Body and 
the report of the original panel, as modified by the Report of the Appellate Body .  Pursuant to 
Article 21.3(b) of the DSU, the "reasonable period of time" for the US to implement the recommendations and rulings of the DSB was set, by agreement of the parties, for a period of 
11 months expiring on 9 April 2007.
3 
2.2 The dispute before the original panel concerned the use, by the United States Department of 
Commerce ("USDOC"), of "zeroing" when determining margins of dumping in original investigations, administrative (assessment) review s, new shipper reviews, changed circumstances 
review, and sunset reviews. 
B. 
THE US ANTI -DUMPING SYSTEM  
2.3 At issue, in both the original dispute and in th is compliance dispute, is the use of "zeroing" in 
the calculation of margins of dumping in the context of the imposition, assessment and collection, by the United States, of anti-dumping duties.  Th e US system for the imposition, assessment and 
collection of anti-dumping duties can be described as follows.
4 
1. Original investigations  
2.4 In order to determine whether the impositi on of anti-dumping measures on known exporters 
of a product under consideration may be justif ied, the United States examines whether dumping 
existed during a given period of investigation.  Th is determination is made by the United States 
Department of Commerce ("USDOC") and is published in a Notice of Final Determination of Sales at 
Less Than Fair Value.  The Notice of Final Determin ation of Sales at Less Than Fair Value sets out 
the USDOC's assessment of the existence and level of dumping.  The United States International 
Trade Commission ("USITC") then determines whet her the relevant United States industry was 
injured by reason of the dumped imports.  When th e USDOC finds dumping and the USITC finds that 
dumping caused injury to the domestic industry, the USDOC issues a Notice of Antidumping Duty 
Order imposing final measures, including a cash depos it rate equivalent to the margin of dumping 
calculated for each known exporter.  The Anti-Dump ing Order provides the United States with the 
authority to require cash deposits at the time of  importation and subsequently assess anti-dumping 
duties.5 
                                                      
3 WT/DS294/19. 
4 This description is based on the description contained in paras. 2.4-2.5 of the report of the original 
panel, paras. 14-33 of the European Communities' First Written Submission (hereinafter, EC First Written 
Submission) and paras. 6-11 of the United States' Fi rst Written Submission (hereinafter, US First Written 
Submission).   
5 The original dispute concerned, inter alia , the use of "model zeroing" by the USDOC in the 
calculation of margins of dumping in the context of an original investigation:  The USDOC, in applying the weighted average-to-weighted average comparison method provided for under the first sentence of Article 2.4.2 
of the Anti-Dumping Agreement , determines not only the overall product scope of the proceeding (referred to as 
"subject product" or subject merchandise"), but also  identifies sales of sub-products which it considers 
"comparable", and includes such sales in an "averaging group" (an averaging group, as well as consisting of 
merchandise that is identical or virtually identical in all physical characteristics, also consists of merchandise  WT/DS294/RW 
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 2. Administrative reviews 
2.5 Once an Anti-Dumping Order is in place, th e United States will assess the liability for anti-
dumping duties on specific entries of the subject product by individual importers for a specified period of time on a retrospective basis.  Under th is system, an anti-dumping duty liability attaches at 
the time of entry, but duties are not actually assessed at that time.  Rather, the United States collects 
security in the form of a cash deposit at the time of entry, and determines the amount of duties due on 
the entry at a later date.  Once a year (during the anniversary month of the Order) interested parties 
may request an "administrative revi ew" to determine the amount of duties – if any –  owed on entries 
made during the previous year.
6  The amount of anti-dumping duties owed by each individual 
importer (the assessment rate) is calculated on the basis of a comparison of each individual import to a 
contemporaneous average normal value.  The tota l amount of dumping associated with each importer 
is then aggregated and expressed as a percentage of  that importer's imports into the United States.  
This assessment rate is then applied to all imports  by that importer during the period reviewed.  The 
amount of dumping found on all imports from a give n exporter (regardless of the importer) is also 
used to derive a new cash deposit rate that  applies on future entries from that exporter going forward.  
If no review is requested, the cash deposits made  on the entries during the previous year are 
automatically assessed as the final duties.  The final anti-dumping dut y liability for past entries and 
the new cash deposit rate for future entries is cal culated by the USDOC and published in a Notice of 
Final Results of Antidumping Duty Administrative Reviews. 
2.6 When assessing an importer's final liability fo r paying anti-dumping duties and any future 
cash deposit rate, the United States applies a met hodology that has been referred to as "simple 
zeroing":  When comparing a weighted-average norma l value with the price of an individual export 
transaction, the amount by which the normal value ex ceeds the export price is considered to be the 
"dumped" amount for that export transaction.  If the export price exceeds normal value, the result of that particular comparison is considered to be zer o.  The total amount of dumping for each importer is 
calculated by aggregating the results of each co mparison for which the average normal value exceeds 
the export price.  (In other words, while the va lue of all export transactions is included in the 
denominator of the fraction used to calculate the im porter's liability, the results of the comparisons for 
which export prices exceed the average normal va lue are excluded from the numerator of that 
fraction).   
2.7 Following the publication of the results of an administrative review, the USDOC 
communicates the results of its determination to US Customs and Border Protection ("USCBP") by 
issuing what are referred to as "assessment instruct ions".  The instructions advise the USCBP of the 
"assessment rate", i.e.,  the final anti-dumping duty to be collected from a given importer.  The 
                                                                                                                                                                    
 
that is sold at the same level of trade).  The weight ed average-to-weighted averag e comparison between normal 
value and export price is made within each averaging group.  The amount by wh ich the normal value exceeds 
the export price for a given averaging group is considered by the USDOC to be a "dumping margin" or dumped 
amount; the margin of dumping for the overall product is calculated by combining the averaging group results and the total of the dumped amounts is expressed as a percentage of the total export prices (including all 
averaging groups).  At the time of the original dispute, the USDOC used "model zeroing" in calculating the 
margins of dumping in the context of original investigations:  the USDOC treated as "zero" any amount by which the export price exceeded the normal value (in ot her words, in any case wher e the export price exceeded 
the normal value, the dumping margin for that averagin g group was zero). 
6 The period of time covered by the duty assessment proceedings is normally twelve months; however, 
in the case of the first assessment proceeding (first administrative review), the period of time may extend to a 
period of up to 18 months in order to cover all entries that may have been subject to provisional measures. WT/DS294/RW  
Page 4  
 
 USCBP then instructs the US ports of  entries to "liquidate" the relevant entries of subject imports at 
the established rates.
7 
3. Sunset reviews  
2.8 Five years after publication of an anti-dumping duty order, the USDOC and the USITC 
conduct a "sunset review" to determine respectively whether revocation of the order would be likely 
to lead to a continuation or recurrence of dumpi ng, and the continuation or  recurrence of material 
injury. 
2.9 The order is revoked unless both the USDOC a nd the USITC make affirmative "likelihood" 
determinations. 
C. FINDINGS BY THE PANEL AND THE APP ELLATE BODY IN THE ORIGINAL DISPUTE  
1. Panel 
2.10 The European Communities, in the original disput e, made "as applied" claims with respect to 
the use of zeroing, by the USDOC, in the calculation of  dumping margins in 15 original investigations 
and 16 administrative reviews concerning products from the European Commun ities.  The European 
Communities also made "as such" cl aims with respect to a number of US measures concerning the use 
of zeroing by the USDOC in the context of origin al investigations, administrative reviews, new 
shipper reviews, changed circumstances reviews, and sunset reviews.   
(a) "As applied" claims – model zeroing in original investigations 
2.11 The European Communities claimed that the Un ited States acted inconsistently with its 
obligations under the Anti-Dumping Agreement  and the GATT 1994 in 15 original AD investigations8 
because the USDOC, when calculating the wei ghted average dumping margin for exporters, 
performed "model zeroing".  The European Commun ities claimed that the US application of model 
zeroing in the original investigations at issue violated Articles 1, 2.4, 2.4.2, 3.1, 3.2, 3.5, 5.8, 9.3, and 
18.4 of the Agreement on implementation of Article VI of the GATT 1994 (the " Anti-Dumping 
Agreement "), Articles VI:1 and VI:2 of the GATT 1994; and Article XVI:4 of the WTO Agreement.  
The panel concluded that the United States had act ed inconsistently with Article 2.4.2 of the Anti-
Dumping Agreement  with respect to the use of zeroing in these original investigations but declined to 
make additional findings under the other pr ovisions invoked by the European Communities.9  
                                                      
7 When the USCBP liquidates an entry, the importe r of record (or its authorised customs broker) 
generally receives a notice of the liquidation.  For each entry made, the importer receives either:  (i) only a 
notice, if the cash deposit amount collected at entry is exactly the same as the amount due at liquidation; (ii) a 
notice and a bill, if the cash deposit amount collected at en try is less than the amount due at liquidation; or (iii) a 
notice and a refund cheque, if the cash deposit amount collected at entry is more than the amount due at liquidation. 
8 The European Communities described the challenged measures with respect to the 15 "original 
investigations" (included in Exhibits EC-1 to EC-15 of the European Communities in the original proceeding) as 
"the 15 Notices of Final Determinations of Sales at Less Than Fair Value, including any amendments, and 
including all the Issues and Decision  Memoranda to which they refer, and all the Final Margin Program Logs 
and Outputs to which they in turn re fer, for all the firms investigated; each  of the 15 Anti-dumping Duty Orders; 
each of the assessment instructions issued pursuant to an y of the 15 Anti-dumping Duty  Orders; and each of the 
USITC final injury determinations."  See Panel report, US – Zeroing (EC) , para. 2.6.   
9 Panel Report, United States – Laws, Regulations and Methodology for Calculating Dumping Margins 
("Zeroing") ("US – Zeroing (EC) "), WT/DS294/R, adopted 9 May 2006, as modified by Appellate Body Report, 
WT/DS294/AB/R, DSR 2006:II, 521, paras. 7.32, 7.33, 7.34, 8.1 (a) and 8.2.  WT/DS294/RW 
 Page 5 
 
 
 (b) "As applied" claims –  zeroing in administrative reviews 
2.12 The European Communities also claimed, before  the original panel, that the United States 
acted inconsistently with its obligations under Artic les 2.4, 2.4.2, 9.3, 11.1, 11.2 and 18.4 of the Anti-
Dumping Agreement , Articles VI:1 and VI:2 of the GATT 1994 and Article XVI:4 of the WTO 
Agreement as a consequence of comparing a weighted normal value with individual export 
transactions, without explanation or justificati on, and the use of zeroing in 16 periodic reviews 
("administrative reviews")10 proceedings in which the USDOC ha d used zeroing in the context of 
weighted average-to-transaction ("simple zeroing").  The original panel rejected all of the EC "as 
applied" claims with respect to the 16 administrative reviews at issue.11  
(c) "As such" claims  
2.13 The European Communities made "as such" claims  against the "Standard Zeroing Procedures 
(or the US practice or methodology of zeroing)"12 and various sections of the United States Tariff Act 
of 1930 and of the USDOC Regulations with respect to the US use of zeroing in (i) original investigations, (ii) administrative reviews, and ( iii) new shippers reviews,  changed circumstances 
reviews, and sunset reviews.   
2.14 The original panel found that the US "zeroing methodology" is a norm which could be 
challenged in WTO dispute settlement procedures.  It  found that this norm, as it relates to original 
investigations is, as such, incons istent with Article 2.4.2 of the Anti-Dumping Agreement  but found it 
unnecessary to make findings under the other pr ovisions cited by the European Communities 
(Articles 2.4, 2.4.2, 5.8, 9.3, 1 and 18.4 of the Anti-Dumping Agreement ; Articles VI:1 and VI:2 of the  
GATT 1994; and Article XVI:4 of the WTO Agreement).
13  The panel found that the sections of the 
                                                      
10 The European Communities described the challenged measures, with respect to the 16 administrative 
reviews subject to its "as applied" claims as "the 16 Notices of Final Results of Antidumping Duty 
Administrative Reviews, including any amendments, and including all the Issues and Decision Memoranda to 
which they refer, and all the Final Margin Program Logs and Outputs to which they in turn refer, for all the firms investigated; and each of the assessment instructions issued pursuant to any of the 16 Notices of Final 
Results." Panel Report, US – Zeroing (EC) , para. 2.6.  The 16 administrative reviews were detailed in Exhibits 
EC-16 to EC-31. 
11 Panel Report, US – Zeroing (EC) , paras. 7.223, 7.284, 7.288 and 8.1 (d)-(f). 
12 The European Communities used the term "Standard Zeroing Procedures" to refer to certain specific 
lines of computer programming code in the computer programme used by the USDOC to calculate dumping 
margins, which separated sales with "positive margins" an d sales with "negative margins" and subtotaled only 
the dumping amounts for sales with "pos itive margins".  As the EC claim wa s with respect to the "'standard 
zeroing procedures' (or  the US practice or methodology of zeroing)", the original panel sought clarification from 
the European Communities whether it was challenging a practice or methodology as a measure distinct from the 
standard zeroing procedures.  In light of the EC clarifications, the original panel understood the EC claim to concern both the "Standard Zeroing Procedures" and the US practice or methodology of zeroing.  Panel Report, 
US – Zeroing (EC) , paras. 7.70-7.72.  The panel considered that to characterize the Standa rd Zeroing Procedures 
as an act or instrument that sets forth rules or norms intended to have general and prospective application was difficult to reconcile with the fact that they are only applicable in a particular anti-dumping proceeding as a 
result of their inclusion in the computer programme used in that particular proceeding.  The panel found that the 
"'Standard Zeroing Procedures' by themselves do not cr eate anything and are simply a reflection of something 
else."  As a result, the panel's findings concerned the zeroing methodology "manifested in the 'Standard Zeroing 
Procedures'".  Panel Report, US – Zeroing (EC) , paras. 7.97-7.109.   
13 Panel Report, US – Zeroing (EC) , paras. 7.106, 7.108-109, 8.1 (c) and 8.2.  The European 
Communities had also identified as a measure that it was challenging the US Import Administration Anti-
Dumping Procedures Manual, but the Panel found it unnecessary to make any finding as to the WTO-
consistency of the Manual, as it considered that the Ma nual had been referred to by the European Communities 
principally as evidence to confirm the "standard" char acter of the "Standard Zeroing Procedures".  See i dem, 
para. 7.107. WT/DS294/RW  
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 Tariff Act challenged by the European Comm unities (Sections 771(35)(A) and (B), 731 and 
777(A)(d)) were not as such inconsistent with Artic les 2.4, 2.4.2, 5.8, 9.3, 1 and 18.4 of the Anti-
Dumping Agreement , Articles VI:1 and VI:2 of the GATT 1994 and Article XVI:4 of the WTO 
Agreement with respect to the calculation of dumping margins in original investigations.
14  
2.15 The original panel rejected the EC claims in respect of administrative reviews.  The panel 
considered the EC claims in this respect to be dependent upon a finding of violation of Articles 2.4 
and 2.4.2 and on an interpretation of these provi sions as prohibiting zeroing and the use of an 
"asymmetrical comparison" of export price and norma l value, which the panel had rejected in its 
analysis of the EC "as applied" claims  with respect to administrative reviews.15  The panel rejected the 
EC's "as such" claims with respect to new shipper reviews, changed circumstances reviews and sunset 
reviews on similar grounds.16 
(d) Recommendation 
2.16 The panel recommended that the Dispute Settleme nt Body request the United States to bring 
its measures into conformity w ith its obligations under the Anti-Dumping Agreement .17 
(e) Dissenting opinion by one panelist 
2.17 One panelist wrote a dissenting opinion.  That panelist concurred in th e panel's findings that 
model zeroing in original investigations is prohibited by Article 2.4.2 of the Anti-Dumping 
Agreement , that the Sections of the US Tariff Act ch allenged by the European Communities are not 
inconsistent with the provisions of the Anti-Dumping Agreement , GATT 1994 and WTO Agreement 
invoked by the European Communities and that the US zeroing methodology, as it relates to original investigations, is a norm which is, as such, inconsistent with Article 2.4.2 of the Anti-Dumping 
Agreement , but disagreed with all other findings of the panel.
18  In particular, the dissenting panelist 
would have accepted the EC claims (i) that si mple and model zeroing are inconsistent with 
Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement in assessment proceedings  (except where there 
is targeted dumping); (ii) that Section 351.414 (c )(2) of the US Regulations, which foresees simple 
zeroing in review proceedings, is inconsis tent with Articles 2.4 and 2.4.2 of the Anti-Dumping 
Agreement ; and (iii) that the US zeroing methodology used in assessment and review proceedings is 
inconsistent with Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement .19 
                                                      
14 Panel Report, US – Zeroing (EC) , paras. 7.69 and 8.1 (b). 
15 Panel Report, US – Zeroing (EC) , paras. 7.291 and 8.1(g).  With respect to administrative reviews, 
the European Communities claimed that the Standard Zeroing Procedures "or the US or methodology of 
zeroing)" and Sections 771(35)(A) and (B), 731, 777A(d) and 751(a)(2)(A)(i) of the US Tariff Act of 1930 and 
Section 351.414(c)(2) of the USDOC Regulations were "as such" inconsistent with Articles 1, 2.4, 2.4.2, 9.3, 11.1, 11.2 and 18.4 of the Anti-Dumping Agreement ; Articles VI:1 and VI:2 of GATT 1994; and Article XVI:4 
of the WTO Agreement 
16 Panel Report, US – Zeroing (EC) , paras. 7.294 and 8.1(h).  With respect to these reviews, the 
European Communities claimed that the "Standard Zero ing Procedures" "(or the United States practice or 
methodology of zeroing)" and Sections 771(35)(A) and (B), 731, 777A(d) and 751(a) (2)(A)(i) and (ii) of the 
Tariff Act and Section 351.414(c)(2) of the Regulations were "as such" inconsistent with Articles 1, 2.4, 2.4.2, 9.3, 9.5, 11.1, 11.2, 11.3 and 18.4 of the Anti-Dumping Agreement ; Articles VI:1 and VI:2 of GATT 1994; and 
Article XVI:4 of the WTO Agreement. 
17 Panel Report, US – Zeroing (EC) , para. 8.4. 
18 Panel Report, US – Zeroing (EC) , para. 9.1. 
19 Panel Report, US – Zeroing (EC) , para. 9.62.  WT/DS294/RW 
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 2. Appellate Body  
(a) "As applied" claims – simple zeroing in administrative reviews 
2.18 Following an appeal by the European Communiti es, the Appellate Body reversed the panel's 
finding that the United States had not acted inconsistently with Article 9.3 of the Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994 with respect  to administrative reviews.  The Appellate 
Body found, instead, that the United States ha d acted inconsistently with these provisions.20  T h e  
Appellate Body declared the panel's finding on Ar ticle VI:1 of the GATT 1994 "moot, and of no legal 
effect".21  The Appellate Body did not find it necessary to rule on whether the US acted inconsistently 
with the first sentence of Article 2.4 of the Anti-Dumping Agreement  ("fair comparison" 
requirement"), declared "moot and of no lega l effect" the panel's finding in this respect22, upheld the 
panel's finding that zeroing is not an impermissible al lowance or adjustment (Article 2.4, third to fifth 
sentences),23 declined to rule on a conditional appeal of the European Communities under 
Article 2.4.2 Anti-Dumping Agreement24, upheld the panel's finding that the United States had not 
acted inconsistently with Articles 11.1 and 11.2 of the Anti-Dumping Agreement25, and considered 
that it was not necessary to rule on whether the zer oing methodology, as applied in the administrative 
reviews at issue, was also inconsiste nt with Articles 1 and 18.4 of the Anti-Dumping Agreement  and 
Article XVI:4 of the WTO Agreement.26 
(b) Zeroing "as such"  in original investigations 
2.19 The Appellate Body upheld the original panel' s finding (albeit for reasons different from those 
set out by the panel) that the zeroing methodology u sed by the USDOC in original investigations in 
which the weighted-average to we ighted-average method is used c ould be challenged, as such, in 
WTO dispute settlement and that it was, as such, in consistent with Article 2.4.2 of the Agreement.27   
(c) Zeroing "as such" in administrative reviews 
2.20 The European Communities appealed the orig inal panel's findings that the zeroing 
methodology used by the United States in administrative reviews is not inconsistent, as such, with certain provisions of the Anti-Dumping Agreement , the GATT 1994, and the WTO Agreement.  The 
Appellate Body declared "moot, and of no legal eff ect", the panel's findings in this respect.  The 
Appellate Body considered, however,  that it could not "complete the analysis", i.e.,  could not make a 
finding as to whether the zeroing methodology, as it relates to administrative reviews, was 
inconsistent with these provisions.
28  
2.21 The Appellate Body also rejected a conditiona l appeal by the European Communities of the 
panel's conclusions or th e panel's exercise of judicial ec onomy regarding the Standard Zeroing 
                                                      
20 Appellate Body Report, United States – Laws, Regulations and Methodology for Calculating 
Dumping Margins ("Zeroing")  ("US – Zeroing (EC) "), WT/DS294/AB/R, adopted 9 May 2006, and Corr.1, 
DSR 2006:II, 417, paras. 135 and 263(a)(i). 
21 Appellate Body Report, US – Zeroing (EC) , paras. 135 and 263(a)(vii). 
22 Appellate Body Report, US – Zeroing (EC) , paras. 147 and 263(a)(vii). 
23 Appellate Body Report, US – Zeroing (EC) , paras. 159 and 263(a)(iii). 
24 Appellate Body Report, US – Zeroing (EC) , paras. 164 and 263(a)(iv). 
25 Appellate Body Report, US – Zeroing (EC) , paras. 169 and 263(a)(v). 
26 Appellate Body Report, US – Zeroing (EC) , paras. 172 and  263(a)(vi). 
27 Appellate Body Report, US – Zeroing (EC) , paras. 222 and 263(b).  The Appellate Body also 
rejected an appeal from the European Communities concerning the original panel's decision to exercise judicial 
economy by not making findings with regard to the EC claims concerning the Anti-Dumping Manual.  Appellate Body Report, US – Zeroing (EC) , paras. 227-228 and  263(c). 
28 Appellate Body Report, US – Zeroing (EC) , para. 228.   WT/DS294/RW  
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 Procedures ( i.e., lines of computer code).  The European  Communities had requested the Appellate 
Body to find that the Procedures were inconsis tent, as such, with the provisions invoked by the 
European Communities in its "as such" claims concerning the use of zeroing in administrative 
reviews, new shippers reviews, changed circumst ances review, and sunset reviews.  The Appellate 
Body found that the Procedures were not, per se , a measure that could be challenged and, as a 
consequence, that they could not be either WTO-c onsistent or inconsistent.  It therefore declared 
"moot, and of no legal effect, the panel's findings that the Standard Zeroing Procedures were not 
inconsistent, as such, with the provisions of the Anti-Dumping Agreement , the GATT 1994 and the 
WTO Agreement invoked by the European Communities.
29 
(d) "As such" claims – USDOC Regulations  
2.22 The European Communities appeal ed the panel's finding that Section 351.414(c)(2) of the 
USDOC Regulations was not inconsistent, as such, with  Articles 1, 2.4, 2.4.2, 9.3, 9.5, 11.1, 11.2, 
11.3 and 18.4 of the Anti-Dumping Agreement , Articles VI:1 and VI:2 of GATT 1994, and 
Article XVI:4 of the WTO Agreement.  The Appella te Body declared "moot, and of no legal effect" 
the panel's finding that Section 351 .414(c)(2) is not inconsistent w ith these provisions.  It refrained 
from completing the legal analysis in this respect, i.e.,  from deciding whether the section of the 
USDOC Regulations at issue was indeed inconsistent  with the provisions relied upon by the European 
Communities.30 
(e) Recommendation 
2.23 The Appellate Body recommended that the DS B request the United States to bring its 
measures, which had been found in its Report, and in the report of the original panel (as modified by 
the Appellate Body Report), to be inconsistent with the Anti-Dumping Agreement  and with the GATT 
1994, into conformity with its obligations under those Agreements. 
3. DSB recommendations and rulings 
2.24 In summary, the findings of inconsistency which were adopted by the DSB are as follows:   
(a) Zeroing, "as applied" in original investigations :  The original panel's finding that the 
United States acted inconsistently with Article 2.4.2 of the Anti-Dumping Agreement  
as a consequence of the USDOC performing "model zeroing" in the 15 original investigations at issue in the original dispute.
31 
(b) Zeroing "as such" in original investigations) :   The original panel's finding (upheld by 
the Appellate Body on a different reas oning) that the US "zeroing methodology" 
manifested  in the "Standard Zeroing Proce dures" (line of computer code) as it relates 
                                                      
29 Appellate Body Report, US – Zeroing (EC) , paras. 231-232 and  263(d).   
30 Appellate Body Report, US – Zeroing (EC) , paras. 242-243 and  263(g).  The Appellate Body also 
declined to rule on a conditional appeal of the European Communities regarding the original panel's decision to 
exercise judicial economy with respect to what the European Co mmunities referred to as the US "practice" of 
zeroing, as such.  See Appellate Body Report, US – Zeroing (EC) , paras. 233-234 and 263(f).   It also rejected an 
appeal by the European Communities to the effect that the original panel had erred in exercising judicial 
economy with respect to the question of whether admini strative review proceedings based on model zeroing are 
inconsistent with Article 9.3 of the Anti-Dumping Agreement  and with respect to whether zeroing "as applied" in 
the original investigations at issue was inconsistent with Article 2.4 of the Anti-Dumping Agreement .  See  
Appellate Body Report, US – Zeroing (EC) , paras. 250 and 263((h) and (i).  Finally, the Appellate Body rejected 
claims by the EC that the panel had acted inconsistently with Article 11 DSU.  See Appellate Body Report, US – 
Zeroing (EC) , paras. 262 and 263(j).   
31 See supra , para. 2.11.  WT/DS294/RW 
 Page 9 
 
 
 original investigations, is, as such, in consistent with Article 2.4.2 of the Anti-
Dumping Agreement .32 
(c) Zeroing "as applied" administrative reviews :  The Appellate Body's finding that the 
United States acted inconsistently with Article 9.3 of the Anti-Dumping Agreement  
and Article VI:2 of the GATT 1994 when  it zeroed (simple zeroing) in the 
16 administrative reviews at issue in the original dispute.33 
2.25 The DSB recommended that the United States br ing its measures, which had been found in 
the Appellate Body  Report, and in the Panel Repor t as modified by the Appellate Body Report, to be 
inconsistent with the Anti-Dumping Agreement  and with the GATT 1994, into conformity with its 
obligations under those Agreements. 
2.26 Thus, the DSB adopted no findings and made no recommendation with respect to "as such" 
claims by the European Communities with respect to administrative reviews or other types of reviews 
(including sunset reviews).   
III. FACTUAL ASPECTS 
A. RELEVANT DEVELOPMENTS CONCERNING THE US MEASURES AT ISSUE IN THE ORIGINAL 
DISPUTE  
3.1 The following developments with respect to the measures at issue in the original dispute are 
relevant to the Panel's examination of the US  implementation of the DSB recommendations and 
rulings: 
                                                      
32 The Panel further notes that the Appellate Body made it clear that the finding of inconsistency does 
not extend to the "Standard Zeroing Procedures" (computer line) in and of themselves since they do not constitute a measure that can be challenged under WTO dispute settlement. 
33 See supra , para. 2.18. WT/DS294/RW  
Page 10  
 
 With respect to the original investiga tions at issue in the original dispute
:34 
 
(a) On 27 December 2006, the United States announced that it would abandon "model 
zeroing" in original AD investigations in  which the weighted average-to-weighted 
average comparison methodology is used.  The modification became effective on 
22 February 2007 and concerned all pending and future original investigations as of 
that date.35 
(b) On 1 March 2007, the USDOC initiated pro ceedings pursuant to Section 129 of the 
Uruguay Round Agreements Act covering twelve  of the fifteen original antidumping 
investigations at issue in the original dispute.36 37  The remaining three AD orders had 
been previously revoked.38 In the Section 129 determinations, the USDOC  
recalculated, without zeroing, the relevant margins of dumping by applying the modification of its calculation methodology announced in December 2006.  The USDOC issued its determinations with respect to eleven of the Section 129 determinations on 9 April 2007.  These elev en Section 129 determinations became 
effective on 23 April 2007.
39  The results in the last Section 129 determination were 
issued on 20 August 2007 and became effective on 31 August 2007.40  As a result of 
these recalculations: 
                                                      
34 In this proceeding, the parties and the panel have referred to the 15 "original investigations" and 
16 "administrative review" "cases" by reference to th e "case numbers" assigned to them by the European 
Communities in its request for the establishment of a panel in the original proceeding (the same "case numbers" 
were listed by the European Communities in its request for the establishment of the Article 21.5 panel).  Cases 1 
to 15 concerned original investigations, i.e. case 1:  Certain Hot-Rolled Carb on Steel from the Netherlands; 
case 2:  Stainless Steel Bar from France;  case 3:  Stainless Steel  Bar from Germany; case 4:  Stainless Steel Bar 
from Italy; case 5:  Stainl ess Steel Bar from the United Kingdom; ca se 6:  Stainless Steel Wire Rod from 
Sweden; case 7:  Stainless Steel Wire Rod from Spain; cas e 8:  Stainless Steel Wire Rod from Italy; case 9:  
Certain Stainless Steel Plate in Coils  from Belgium; case 10:  Stainless Steel Sheet and Strip in Coils from 
France; case 11:  Stainless Steel Sheet and Strip in Coils from Italy; case 12:   Stainless Steel Sheet and Strip in 
Coils from the United Kingdom; case 13:  Certain Cut-to-Length Carbon-Quality Steel Plate from France; case 14:  Certain Cut-to-Length Carbon-Quality Steel Plat e from Italy; case 15:  Certain Pasta from Italy.  
Cases 16 to 31 concerned administrative reviews in 2004 and 2005, i.e. case 16:  Industrial Nitrocellulose from 
France; case 17:  Industrial Nitrocellulose from the United Kingdom; case 18:  Stainless Steel Plate in Coils 
from Belgium; case 19:  Certain Pasta from Italy; case 20:  Certain Pasta fr om Italy; 21:  Stainless Steel Sheet 
Strip Coils from Italy; case 22:  Stainless Steel Sh eet Strip Coils from Italy; case 23:  Granular 
Polytetrafluorethylene from Italy; case 24:  Granular Poly tetrafluorethylene from Italy; case 25:  Stainless Steel 
Sheet Strip Coils from France; case 26:  Stainless Steel Sh eet Strip Coils from France;  case 27:  Stainless Steel 
Sheet Strip Coils from Germany; case 28:   Stainless Steel Sheet Strip Coils from Germany; 29:  Ball Bearings 
from France; case 30:  Ball Bearings from Italy; case 31:  Ball Bearings from the United Kingdom. See EC 
request for the establishment of Article 21.5 panel (WT/DS/294/25, reproduced at Annex A-1).   
35 Exhibits EC-1 and EC-4; see also EC Firs t Written Submission, para. 16; US First Written 
Submission, para. 17.   
36 Exhibit US-9 and US First Written Submission, para. 18. 
37 Section 129 of the Uruguay Round Agreements Act establishes the US legal framework for issuing 
new determinations to comply with recommendations and rulings of the DSB . 
38 Cases 10 (July 2004), 12 (July 2004) and 13 (Feb ruary 2005); see EC First Written Submission, 
para. 40, US First Written Submission, para. 18 and note 30, Exhibit US-9. 
39 See Exhibits EC-2 (Preliminary Results of Sec tion 129 Determination), EC-5 (Notice of Final 
Results of Section 129 Determination), Exhibit EC-7  (Issues and Decision Memo randum), US First Written 
Submission, para. 19 
40 Exhibits EC-6 (Notice of Section 129 Determination) and EC-8 (Issues and Decision Memorandum) 
in case 11, Stainless Steel Sheet and Strip in Coils from Italy.  WT/DS294/RW 
 Page 11 
 
 
 (i) Two original AD orders were revoked (as a result of the recalculated margins 
being zero or de minimis  for all involved producers/exporters);41 
(ii) Ten original AD orders42 were partially revoked (revoked with respect to 
certain companies for which the USDOC found zero or de minimis  margins 
in the Section 129 determination) wh ereas for other companies, duties were 
either reduced or increased as a result of the recalculation.  The recalculated 
margins of dumping established in the Section 129 determin ations applied (as 
the new cash deposit rate) with  respect to unliquidated  entries (imports) 
made on or after 23 April 2007 (31 August 2007 with respect to case 11).43  
(c) In addition, the USDOC issued in the ordinary course a number of administrative 
review determinations with respect to  AD orders concerned in the original 
investigations that were at issue in the original dispute.  The USDOC continued to 
calculate margins of dumping in these administrative reviews by using zeroing (simple zeroing). 
With respect to the administrative revi ews at issue in the original dispute:
 
 
(d) With respect to the sixteen administrative review determinations at issue in the 
original dispute, the United States consider ed that the cash deposit rates established as 
a result of each of those reviews – with the exception of one company – were no longer in effect because they had been s uperseded by subsequent administrative 
reviews:  consequently, no further action was taken by the United States in order to 
implement the DSB recommendations and rulings in respect of these administrative 
review determinations.
44 
Sunset review determinations:  
 
(e) Following negative sunset review determin ations by the USITC (no likelihood of 
continuation or recurrence of injury), th e USDOC revoked the AD orders in 4 cases, 
effective 7 March 2007 (cash deposits on impor ts made on or after that effective date 
were to be refunded and the concerned im ports would not be subject to a final 
assessment of AD duties).45  Other sunset review determ inations adopted with respect 
to AD orders concerned in the original inves tigations at issue in the original dispute 
or in the same USDOC investigations for which administrative reviews were 
challenged in the original dispute resulte d in the continuation of the relevant AD 
order.46 
B. MEASURES AT ISSUE  
3.2 The measures at issue in this dispute are, according to the European Communities, the 
following: 
                                                      
41 Cases 1 and 6. 
42 Cases 2, 3, 4, 5, 7, 8, 9, 11, 14 and 15. 
43 See EC First Written Submission, para. 41. 
44 See US First Written Submission, para. 21, and Exhibit US-17 for a list of the administrative review 
determinations superseding, in its view, the reviews challenged in the original dispute.   
45 Cases 2, 3, 4 and 5.  See US First Written Submi ssion, para. 26, and Exhibits US-10, US-11, US-12, 
US-13.  The revocation was made on 8 February 2008, effective retroactively to 7 March 2007. 
46 See EC request for the establishment of Article 21.5 panel (WT/DS/294/25 and Annex A-1). WT/DS294/RW  
Page 12  
 
 (a) Certain of the Section 129 de terminations adopted by th e United States to implement 
the rulings and recommendations of the DSB.
47 
(b) Subsequent administrative reviews, changed circumstances reviews and sunset 
reviews adopted in the "cases" at issue in  some of the 15 original investigation 
determinations and 16 administrative review determinations challenged in the original 
dispute (as well as assessment instructions issued by the USDOC to the USCBP).  
These reviews have, in the context of this dispute, been referred to as "subsequent 
reviews" (as opposed to the administrative re views that were at issue in the original 
dispute).48  
(c) Liquidation of duties by the USCBP following instructions issued by the USDOC. 
(d) Related omissions and deficiencies in the US compliance with the DSB's 
recommendations and rulings.   
3.3 The United States argues, as part of its request for preliminary rulings, that certain of these 
measures – and in particular, each of the "subseque nt reviews" and assessment instructions – do not 
fall within the Panel's terms of reference.  The Pa nel addresses the US objection in this respect below, 
in Section VIII.D. 
IV. PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS 
A. EUROPEAN COMMUNITIES  
4.1 The European Communities requests the Pane l to make the following findings:   
(a) the United States violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping 
Agreement  when extending the measures contained in the original dispute pursuant to 
sunset review proceedings relying on margin of duties calculated with zeroing; 
(b) the United States has not complied with the DSB's recommendations in the original 
proceeding, since it continues to collect  anti-dumping duties and establish new cash 
deposit rates based on zeroing with respect to the original investigations and 
administrative reviews challenged in the original dispute;  
(c) the United States remains in violation of Articles 2.4.2 and 9.3 of the Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994, since it still collects anti-dumping 
duties calculated with zeroing with respect to measures challenged in the original 
dispute (including the measures listed in the Annex to the Panel Request and any other subsequent measures); 
                                                     
 
47 The European Communities makes claims with respect to the Section 129 determinations adopted in 
case 2 (Stainless Steel Bar from France), case 3 (Stainle ss Steel Bar from Germany), case 4 (Stainless Steel Bar 
from Italy), case 5 (Stainless Steel Bar from the Unite d Kingdom), case 11 (Stainless Steel Sheet Strip in Coils 
from Italy). 
48 The reviews are listed by the European Communities in the Annex to its Article 21.5 request for the 
establishment of a panel.  For ease of reference, the pa rties and the Panel have referred to the "case" number of 
the dispute (case number of the origin al investigation/administrative review in accordance with the list in the EC 
Annexes to its panel request in the original dispute and its Article 21.5 panel request).  See the Annex to the EC 
Article 21.5 panel request, WT/DS294/25, reproduced at Annex A-1.  WT/DS294/RW 
 Page 13 
 
 
 (d) the United States has not complied with the DSB's recommendations in the original 
proceeding, since it has failed to fully re voke the original investigation orders 
contested in the original dispute; 
(e) the United States has not complied with the DSB's recommendations in the original 
proceeding, since the 16 administrative review investigations covered in the original 
dispute have not been superseded ( i.e., the United States still collects duties based on 
the dumping margins found in those proceedings with zeroing, and the United States has also relied on those margins for the dete rmination of likelihood of recurrence of 
dumping in sunset review proceedings); 
(f) the United States violated Articles 21.3 and 21.3(b) of the DSU, since it did not take 
any measure to comply with respect to the "as applied" measures covered in the 
original dispute between 9 April and 23 April/31 August 2007; 
(g) the United States violated Articles 2, 5.8, 6.8, 9.3, 11.1 and 11.2 of the Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994 when making an error in the 
calculation of the unit value and then failing to have it removed pursuant to the 
Section 129 Determination in case 11; 
(h) the United States violated Article 6.8, Annex II and Article 9.4 of the Anti-Dumping 
Agreement  when using a weighted average of exporters with zero/ de minimis  rates 
and adverse facts available to calculate the "all others" rates pursuant to the Section 129 determinations in cases 2, 4 and 5; and 
(i) the United States violated Articles 3.1, 3.2, 3.5 and 5.8 of the Anti-Dumping 
Agreement  and Article VI:1 of the GATT 1994 when failing to reassess the injury in 
light of the new volume of non-dumped imports pursuant to the Section 129 Determinations in cases 2, 3, 4 and 5 of the Annex to the Panel Request.
49 
4.2 The European Communities also  requests the Panel to find that its composition was not 
consistent with Articles 21.5 and 8.3 of the DSU.   
4.3 Further, the European Communities considers that, since the United States has failed to 
comply with its obligations, the original recommenda tions of the DSB remain in effect, and apply to 
the full extent of the findings requested above.  The European Communities requests the Panel to 
confirm the original panel's recommendation, pur suant to Article 19 of the DSU, that the 
United States take the steps necessary to bring its measures into conformity with the cited WTO provisions. 
4.4 The European Communities also asks the Panel to make suggestions as to how the United 
States should bring its measures in conformity with  its obligations.  The European Communities asks 
the Panel to suggest that, in order to comply w ith the DSB's recommendations, the United States cease 
using zeroing when calculating dumping margins in  any anti-dumping proceeding with respect to the 
measures challenged in the original dispute a nd any other subsequent amendments of those.
50  
                                                      
49 EC First Written Submission, para. 155. 
50 The European Communities asks the Panel to take into account the following comment when making 
a suggestion as to how the United States should implement the DSB recommendations:   
"The European Communities would like to clar ify that it is not requesting retrospective 
application of DSB's recommendations and finding in this case.  However, the European Communities asks for prospective implementation of the DSB's recommendations after the 
end of the reasonable period.  In particular, the European Communities is of the opinion that WT/DS294/RW  
Page 14  
 
 B. 
UNITED STATES  
4.5 The United States requests that the Panel reject the EC claims and find that it has met its 
obligations to bring the measures found to be inconsistent with the Anti-Dumping Agreement  and the 
GATT 1994 into conformity and has, therefore, co mplied with the recommendations and rulings of 
the DSB.  The United States asks the Panel to d ecline to make the suggestion requested by the 
European Communities.   
V. ARGUMENTS OF THE PARTIES 
5.1 The arguments of the parties are set out in thei r written and oral submissions to the Panel, and 
in their answers to questions.  The parties' ar guments, based on the summaries submitted by them 
pursuant to paragraph 10 of the Panel's working proc edures, are set forth in this section.  The full non-
confidential text of the submissions of the Eur opean Communities can be downloaded from the EC's 
web site.51  The full non-confidential text of the United States submissions can be downloaded from 
the web site of the Office of the United States Trade Representative.52 
A. US REQUEST FOR PRELIMINARY RULINGS  
1. United States 
5.2 The United States requests preliminary rulings con cerning the EC's apparent effort to include 
certain determinations within the terms of re ference of this proceeding, including certain 
administrative reviews and sunset reviews that are not measures taken to comply with the recommendations and rulings of the DSB in the original proceeding.  A number of these measures also were not identified in the EC's Article 21.5 panel request.
53  The United States observes in this 
context that Article 21.5 of the DSU applies when  there is a disagreement as to the existence or 
consistency with a covered agre ement of a measure taken to comply with recommendations and 
rulings of the DSB and that the scope of an Artic le 21.5 compliance panel proceeding is inherently 
limited – it may only examine a measure that is take n to comply, and then only if that measure is 
specified in the request for the establishment of a panel.54 
5.3 The only measures that were the subject of th e DSB recommendations and rulings were the 
investigations and administrative reviews listed in th e annexes to the EC's original panel request.  The 
EC pursued a challenge against zeroing in administrati ve reviews "as such" but did not prevail.  Upon 
                                                                                                                                                                     
the United States should stop taking any positive acts providing for the final payment of duties 
or retention of cash deposits based on zeroi ng with respect to those entries not finally 
liquidated before the end of the reasonable period .  In other words, the United States (i) should 
not send new assessment instructions based on zeroing with respect to the measures covered 
by this dispute; (ii) should not establish new cash deposit rates based on zeroing in those cases; and (iii) should terminat e all proceedings seeking to collect duties based on zeroing 
after the end of the reasonable period in cases wh ere there is no final liquidation.  Finally, the 
United States should reverse any positive acts ta ken after the end of the reasonable period 
which sought the collection of anti-dumping duties or the establishment of new cash deposit 
rates based on zeroing with respect to the measures successfully challenged in the original 
dispute."  EC First Written Submission, para. 158. 
51 See http://trade.ec.europa.eu/wtodispute/search.cfm?code=1. 
52See  
http://www.ustr.gov/Trade_Agreements/Monitoring _Enforcement/Dispute_Settlement/WTO/Dispute_
Settlement_Index_-_Pending.html. 
53 Executive Summary of the First Written Submissi on of the United States (hereinafter "US First 
Written Submission, Executive Summary"), para. 5. 
54 US First Written Submission,  Executive Summary, para. 4.  WT/DS294/RW 
 Page 15 
 
 
 reviewing the EC's first submission, the United St ates notes that the EC appears to seek to include 
within the terms of reference determinations that are not properly within the terms of reference for 
two reasons:  first, because they were not identifie d in the EC's Article 21.5 panel request, as required 
by Article 6.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes 
("DSU"), and second, because those determinations  were not subject to the recommendations and 
rulings of the DSB, nor are they measures taken to comply.55 
5.4 Article 6.2 of the DSU provides that a panel re quest shall "identify the specific measures at 
issue."  The United States submits that the key passage  in the EC's Article 21.5 request is paragraph 7.  
This paragraph plainly states that the measures at  issue are the investigations and administrative 
review determinations from the original proceeding.   In its submission, however, the EC appears to 
take a different approach.  The EC seeks to transfor m the "reviews" referenced in its panel request as 
separate and distinct from the "measures at issue" in to "measures" within the terms of reference.  
Under Article 6.2, however, the EC was obliged, in its panel request , to "identify the specific 
measures at issue."  The only measures identified as "measures in question" were the investigations 
and administrative reviews from the original proceedi ng.  Therefore, any "measures" other than those 
reviews are not "measures" subject to findings in this proceeding.56 
5.5 For the foregoing reasons, the United States request s that the Panel reject the EC's attempt to 
use its first submission to expand the terms of re ference beyond the specific m easures identified in its 
panel request, i.e., the 16 administrative reviews in the original proceeding.57  The EC's attempt to use 
its submission to expand the measures within the terms of reference of this proceeding is flawed for a 
second reason.  The scope of an Article 21.5 proceed ing is limited to the issue of the existence or 
consistency of measures taken to comply.58  Pursuant to Article 6.2 of the DSU, in its request for the 
establishment of a panel in the original pr oceeding, the EC was required to "identify the specific 
measures at issue " (emphasis added).  That identification in  turn informs the question of what is a 
"measure taken to comply."59  The United States argues that there must be an express link between the 
alleged measures taken to comply and the DSB's recommendations and rulings.  Accordingly, in 
assessing whether a challenged measure is a measure taken to comply, the Panel must first look to the 
DSB's recommendations and rulings.  Nonetheless, not every measure that has some connection with, or that could have some impact upon a measure taken to comply may be scrutinized in an Article 21.5 
proceeding.  Rather, such measures falling within the competence of an Article 21.5 panel are those 
"taken in the direction of , or for the purpose of achieving  compliance [with the DSB's 
recommendations and rulings]."
60  The United States argues that here, however, the EC seeks to 
expand the terms of reference beyond the inquiry into  the existence or consistency of measures taken 
to comply.  Precisely what the EC seeks to include is something of a moving target.61  
5.6 The United States recalls that the EC challenged 16 administrative reviews, and the Appellate 
Body concluded that those reviews were inconsiste nt with the Antidumping Agreement.  Thus, those 
16 reviews were the subject of the DSB recommendations  and rulings.  None of the other "measures" 
the EC seeks to include in these pr oceedings – such as subsequent reviews or assessment instructions 
– was the basis for a DSB recommendation or ruling.62 
                                                      
55 US First Written Submission,  Executive Summary, para. 6. 
56 US First Written Submission,  Executive Summary, para. 7. 
57 US First Written Submission,  Executive Summary, para. 8. 
58 US First Written Submission,  Executive Summary, para. 9. 
59 US First Written Submission, Executive Summary, para. 10. 
60 US First Written Submission, Executive Summary, para. 11. 
61 US First Written Submission, Executive Summary, para. 12. 
62 US First Written Submission, Executive Summary, para. 13. WT/DS294/RW  
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 5.7 The United States notes at the outset that proceedings under Article 21.5 address 
disagreements "as to the existence or consistenc y with a covered agreement of measures taken to 
comply with the recommendations and rulings [of the DSB]."
63  A complaining Member may not use 
a compliance proceeding to challenge measures that it could have challenged in the original panel 
proceeding but did not.  Nor may a complaining Member use Article 21.5 to challenge measures that 
are not measures taken to comply.  This is because  Members only agreed to the truncated, expedited 
procedures under Article 21.5 in the specific case i nvolving a measure taken to comply, and did not 
agree to have these different dispute settlement proc edures used in the case of measures not taken to 
comply.64  The United States observes in this contex t that to identify the proper scope of any 
Article 21.5 proceeding, the appropriate starting point is the DSB's recommendations and rulings.65  A 
panel composed under Article 21.5, therefore, begi ns with the recommendations and rulings of the 
DSB, and examines measures that a Member ha s taken pursuant to those recommendations and 
rulings to determine if that Member is in compliance.66  In the US view, however, the EC attempts to 
expand the scope of these proceedings by incorporat ing claims regarding measures entirely distinct 
from those measures it originally challenged in its "as applied" claims and which were not measures 
taken to comply.67  
5.8 The United States recalls that in the original pr oceeding, the EC prevailed with respect to its 
"as applied" claims involving 15 investigations and 16 administrative reviews.  The EC did not 
prevail with respect to its "as such" claims.68  According to the DSB recommendations and rulings in 
this dispute, 15 determinations by the US De partment of Commerce ("Commerce") in antidumping 
investigations were found inconsis tent with a covered agreement.  The recommendations and rulings 
also include "as applied" findings of a breach with respect to 16 Commerce determinations in 
administrative reviews.  The original panel and the Appellate Body declined to make findings 
concerning the EC's "as such" claim against zeroing in administrative reviews.69  In the US view, it 
seems clear, then, that the questions before this compliance panel pertain to US compliance with the 
findings concerning those specific investigations and reviews.70  Thus, the DSB's recommendations 
and rulings were limited to "as applied" findings.71  The United States maintains that it has removed 
the border measures in question and that it has th erefore complied with the recommendations and 
rulings of the DSB.72  Therefore, this Panel should reject the EC's claims of non-compliance and its 
effort to enlarge the obligations of the United States.73 
5.9 The United States next notes that the EC has relied heavily on Softwood Lumber  for the 
proposition that these "subsequent reviews" have a su fficient "nexus" to the 15 investigations and 
16 administrative reviews found to be inconsistent "as applied" in the original proceeding.  According 
                                                      
63 US First Written Submission, Executive Summary, para. 1.  See also, Executive Summary of the 
United States, Opening Statement at th e substantive meeting of the Panel (h ereinafter "US Opening Statement, 
Executive Summary"), para. 3.  "The pu rpose of an Article 21.5 proceeding, which is to consid er the "existence 
or consistency with a covered agreement of measures taken to comply with the [DSB's] recommendations and rulings." 
64 US Opening Statement, Ex ecutive Summary, para. 3. 
65 US Opening Statement, Ex ecutive Summary, para. 4. 
66 US First Written Submission,  Executive Summary, para. 1. 
67 US First Written Submission,  Executive Summary, para. 2. 
68 Executive Summary of the United States Second  Written Submission (hereinafter "US Second 
Written Submission, Executive Summary"), para. 1. 
69 US Opening Statement, Ex ecutive Summary, para. 4. 
70 US Second Written Submission, Executive Summary), para. 1. 
71 US Opening Statement, Ex ecutive Summary, para. 4. 
72 US Second Written Submission, Executive Summ ary, para. 1., See also US First Written 
Submission, Executive Summary para 3:  "The United States has implemented the DSB's recommendations and rulings, and thus has complied with its obligations under the DSU.   
73 US First Written Submission,  Executive Summary, para. 3.  WT/DS294/RW 
 Page 17 
 
 
 to the United States, the EC's reliance is misplaced for factual and legal reasons.74  First, the 
United States maintains that the assessment reviews covered distinct sales during distinct periods of time and could address different companies.  As an  illustration, the United States calls the Panel's 
attention to the cases concerning pasta from Italy.  In the investigation, Co mmerce examined the sales 
of seven different Italian pasta companies.  In the assessment revi ew for the 2001-02 period, 
Commerce examined a total of ten companies, nine of which had not been examined in the original 
investigation.  Similarly, in the assessment revi ew for the 2002-03 period, Commerce reviewed eight 
companies, none of which was examined in the original investigation.
75 
5.10 Furthermore, the United States notes that the le gal and factual distinc tions between the two 
types of proceedings with respect to the issue of zeroing are more relevant here than was the case in 
Softwood Lumber .  There, the issue was the pass-through of  subsidies – and the legal basis for the 
panel's consideration did not differ as between the i nvestigation and the administrative review.  With 
respect to the issue of zeroing, however, that is not  the case.  Even the EC implicitly recognized this 
by referring to "model zeroing" in investigations a nd "simple zeroing" in reviews.  This distinction 
flows through to the legal bases for the findings agai nst zeroing – which rely significantly on the text 
of Article 2.4.2 and, in particular, the phrase "all comparable export transactions" in the context of 
investigations.  In the context of reviews, however, that textual basis is absent and the Appellate Body 
has, instead, relied on the term "product" and the non -textual phrase "product as a whole" to find that 
a margin of dumping cannot be calculated in a proceed ing using zeroing.  Given the distinctions in the 
factual and legal basis for the findings on inves tigations as compared to reviews, it would be 
inappropriate to find that there is a sufficiently close nexus to address the subsequent reviews in an 
Article 21.5 proceeding.76 
5.11 Moreover, as the United States noted, to conclude that one administrative review always has a 
nexus to the previous administrative review would run counter to the Appellate Body's admonition in 
Softwood Lumber  that administrative reviews are not per se  measures taken to comply.  One 
administrative review routinely succeeds another.  To conclude on that basis that subsequent reviews 
are measures taken to comply would undermine the Appellate Body's express limitation of its findings 
in this dispute to the measures "as applied."  It woul d also contradict the Appellate Body's  view that 
Article 21.5 proceedings "logically must be narrower " than the original proceedings.77  Were the EC 
to prevail on its claims in this regard, the scope of these proceedings that the matter covered would be 
nearly 3 times greater  than those covered by the original proceedings.78 
5.12 The United States reiterates that  Commerce has revoked the antidumping duty orders relating 
to three of the administrative reviews in their entir ety.  Moreover, with respect to another antidumping 
duty order, Commerce has now excluded two of the co mpanies that were the subject of the EC's "as 
applied" challenge from that antidumping duty order.79  Notwithstanding these revocations, and the 
fact that the EC accepts that relief is prospec tive only, the EC nevertheless contends that the 
United States has failed to bring its measures into compliance.80  
5.13 The United States observes that the EC advances an argument that the United States has failed 
to bring its measures into compliance by challenging an additional 54 determinations, identified in the 
annex to its Article 21.5 panel request ("the EC's annex"), and made subsequent to the 
                                                      
74 Executive Summary of the United States Closing St atement at the substantiv e meeting of the Panel 
(hereinafter "US Closing Statement,  Executive Summary"), para. 6. 
75 US Closing Statement, Ex ecutive Summary, para. 7. 
76 US Closing Statement, Ex ecutive Summary, para. 8. 
77 US Closing Statement, Executive Summary, citing US – Softwood Lumber (CVD) (21.5), para. 72. 
78 US Closing Statement, Ex ecutive Summary, para. 9. 
79 US Opening Statement, Ex ecutive Summary, para. 8. 
80 US Opening Statement, Ex ecutive Summary, para. 9. WT/DS294/RW  
Page 18  
 
 31 determinations it originally cha llenged in its "as applied" clai ms, asserting that these subsequent 
determinations were part of the original dispute, are measures taken to comply, or somehow constitute 
"omissions."
81 
5.14 The United States asserts that there are several  facts that expose the hollowness of the EC's 
argument concerning the additional 54 determinations, and, highlight  the main reasons why these 
determinations are not within th is Panel's terms of reference.82  As an initial matter, the United States 
notes that in its written submissions, it has shown that the EC did not identify these "subsequent 
reviews" as measures in its Artic le 21.5 panel request.  Therefore, they are not within the Panel's 
terms of reference.83  Moreover, contrary to the EC's asserti ons, these subsequent determinations were 
not part of the original dispute because they were not identified in the EC's original panel request.  
The United States submits that neither the original  panel nor the Appellate Body made any findings 
with respect to these determinations, noting that some  of these determinations did not even exist when 
the EC made its original panel request.84  
5.15 In addition, the United States argues that th ese determinations cannot be considered 
"amendments" to the 31 determinations originally ch allenged.  In this connection, the United States 
clarifies that Commerce amends its determinations to correct a ministerial error, or as a result of 
litigation.  The EC understood this, and specifically identified in its original panel request those 
determinations that had been amende d.  In this context, the term "amendments" specifically refers to 
those corrected Commerce determinations.  The United States argues that the term "amendments" 
does not refer to the 54 additional de terminations identified in the EC 's annex, which cover distinct 
periods of time and, in some cases, distinct compan ies and which, therefore, are separate and distinct 
from the 31 determinations originally challenged by the EC.85 
5.16 Turning to the issue of whet her these additional determinations are "measures taken to 
comply," the United States observes that the EC relies on Softwood Lumber to support its argument.  
However, the United States considers that it is impo rtant to note that in that dispute, the Appellate 
Body cautioned that "not .  .  .  every assessment re view will necessarily fall within the jurisdiction of 
an Article 21.5 panel."  Indeed, "[a]s a whole, Article 21 deals with events subsequent  to the DSB's 
adoption of recommendations and rulings in a particular dispute."  And the Softwood Lumber dispute 
indeed involved a determination that was made after  the DSB had adopted its recommendations and 
rulings and that was published very close in time  to the measure that both parties agreed was a 
measure taken to comply.  In that dispute, the A ppellate Body first cautioned that there was no finding 
that an administrative review is per se  a "measure taken to comply," but rather the analysis was more 
nuanced.  Furthermore, in concluding that an aspect of an administrative review did come within the 
terms of reference of an Article 21.5 proceeding, the Appellate Body found significant both this fact 
of timing as well as the fact that the responding Member acknowledged that the determination at issue was made "'in view of' the recommendations and rulings of the DSB."
 86  
5.17 The United States argues that even if it accepts the principle that determinations made "in 
view of" recommendations and rulings  can be brought within the terms of reference of an Article 21.5 
proceeding, it cannot  be said in this dispute that the 54 additional determinations were made "in view 
of" the DSB's recommendations and rulings.  Of the 54 additional determinations, 16 are 
determinations in sunset reviews.  On this point, th e United States contends that  the EC's original "as 
applied" claims did not include any challenges to de terminations in sunset reviews.  Consequently, 
                                                      
81 US Opening Statement, Ex ecutive Summary, para. 9. 
82 US Opening Statement, Ex ecutive Summary, para. 10. 
83 US Opening Statement, Ex ecutive Summary, para. 11. 
84 US Opening Statement, Ex ecutive Summary, para. 12. 
85 US Opening Statement, Ex ecutive Summary, para. 13. 
86 US Opening Statement, Ex ecutive Summary, para. 14.  WT/DS294/RW 
 Page 19 
 
 
 neither the original panel, nor the Appellate Body, made any findings in this dispute, whether "as 
such" or "as applied," with respect to sunset reviews.   These sunset reviews are, therefore, not part of 
the terms of reference.87 
5.18 Moreover, the United States submits that in 11 of the sunset reviews, Commerce issued its 
determination regarding the likelihood of a continuation or recurrence of dumping before  the DSB 
had even adopted its recommendations and rulings in this dispute.  The United States notes that four 
resulted in the revocation of the antidumping or ders.  In the one remaining sunset review 
determination, the interested parties did not rai se, and Commerce made no mention of, the issue of 
non-dumped sales.  Thus, this determination coul d not have been made "in view of" the DSB's 
recommendations and rulings.88  Two of the additional determinati ons identified by the EC were made 
in changed circumstances reviews.  The United States submits that Commerce made both of these 
determinations before the adoption of the DS B's recommendations and rulings.  Moreover, both 
determinations addressed whether one company w as the successor in interest of a second company, 
and was therefore entitled to the cash deposit rate  already established for that second company.  
Commerce did not recalculate any margins of dumpi ng in these two changed circumstances reviews.  
Neither of these determinations, therefore, can be said to have been made "in view of" the DSB's 
recommendations and rulings, which concerne d Commerce's treatment of non-dumped sales.89  The 
United States further notes that the remaining 36 de terminations were made in administrative reviews 
and that Commerce made determinations in 26  of these reviews before the DSB adopted its 
recommendations and rulings.90  Of the remaining 10 determin ations, 4 gave no indication that 
Commerce's treatment of non-dumped sales was an issu e in the review.  Another 4 were made before 
the end of the reasonable period of time.  The United States clarifies that in those determinations, 
Commerce made clear that the determinations were not being issued in view of the recommendations 
and rulings.  Thus, the factual predicate in Softwood Lumber  – the Appellate Body's conclusion that 
the United States acknowledged that the administ rative review was conducted "in view of" the 
recommendations and rulings – does not exist here.91 
5.19 The United States explains that in one of the two remaining determinations, the 2005-2006 
administrative review of Stainless Steel Bar from th e United Kingdom, no party specifically raised the 
issue of non-dumped sales.  However,  one party raised the issue of th e recalculation of the "all others" 
rate from the Section 129 determination.  In respon se, Commerce stated that the recalculation of the 
all others rate from the Section 129 determin ation was not challengeable in the 2005-2006 
administrative review.  Commerce further noted that b ecause the new all others rate did not take effect 
until 23 April 2007, any imports covered by this review that were subject  to an all others rate were 
subject to the all others rate in existence before  the recalculation.  Thus, again, this determination was 
not made "in view of" the DSB's recommendations and rulings.92 
5.20 In respect of the only one outstanding the determination in the 2004-2005 administrative 
review of Hot-Rolled Steel from the Netherlands, th e United States observes as an initial matter, that 
the EC's original "as applied" challenge covered only Commerce's determination in the investigation 
of Hot-Rolled Steel from the Netherlands, and not any determinations from subsequent administrative 
reviews of the order.  Commerce complied with  the DSB's recommendations and rulings in the 
Section 129 determination covering th is investigation when it granted offsets for non-dumped sales in 
the recalculation of the margin of dumping.  Ind eed, that Section 129 determination resulted in the 
revocation of the antidumping order on Hot-Rolled Steel from the Netherlands with respect to all 
                                                      
87 US Opening Statement, Ex ecutive Summary, para. 15. 
88 US Opening Statement, Ex ecutive Summary, para. 16. 
89 US Opening Statement, Ex ecutive Summary, para. 17. 
90 US Opening Statement, Ex ecutive Summary, para. 18. 
91 US Opening Statement, Ex ecutive Summary, para. 19. 
92 US Opening Statement, Ex ecutive Summary, para. 20. WT/DS294/RW  
Page 20  
 
 imports on or after the date of revocation.  The Un ited States argues, therefore, that it had no further 
obligation with respect to the Appellate Body's specific "as applied" finding, which was made only 
with respect to that investigation determination.
93 Moreover, in the US view, Commerce's 
determination in the 2004-2005 review cannot be sai d to have been made "in view of" the DSB's 
recommendations and rulings.  In addressing the i ssue of non-dumped sales, Commerce stated, "With 
respect to the specific administra tive reviews at issue in [the US – Zeroing (EC) ] dispute, the 
United States has determined that each of those reviews has been superseded by a subsequent 
administrative review and the challenged reviews are no longer in effect."  Thus, Commerce clearly 
stated its position that the DSB's recommendations and rulings did not require Commerce to take any 
action with respect to the treatment of non- dumped sales in this particular review.94  In summary, the 
United States maintains that the EC has failed to s how that any of these 54 subsequent determinations 
have the required timing and connection with th e DSB's recommendations and rulings to qualify as 
"measures taken to comply."  All of these additi onal determinations are outside of the terms of 
reference of this Panel.95 
5.21 Finally, the United States asserts that the EC's  argument that these additional determinations 
constitute "omissions" which can be reviewed by th is Panel is contradictory, because the EC is 
arguing simultaneously that the measures taken to co mply both exist and do not exist at the same 
time.96 
5.22 The United States has raised serious concerns about the EC's Article 21.5 panel request.  
Noting that the EC dismisses its due process  concerns as merely "formal," the United States finds that a disturbing position to take.  The provisions in the DSU were specifically negotiated and agreed 
upon, and they cannot be casually dismissed wh enever adherence to those provisions proves 
inconvenient.
97  In addition, the EC's view on the mutable nature of "words" goes far to explain what 
the United States has found to be an ever-shifting sc ope of challenged measures, both in the original 
proceeding and here.  For example, the United Stat es understood from the EC's panel request that it 
was not challenging the subsequent reviews themselv es, but rather was presenting them as evidence of 
the undermining of US measures taken to comply (t hat is, the EC was attempting to assert that these 
subsequent reviews resulted in the "non-existence" of measures taken to comply in the language of 
Article 21.5) in respect of the 15 investigations and 16 administrative reviews that were the subject of 
the DSB recommendations and rulings in the original  proceeding.  The United States did not consider 
that the subsequent reviews themselves would be transformed into "measures taken to comply," or 
measures that were part of the DSB recommendati ons and rulings, which is how the EC began to 
describe them in its first written submission.  In th e original panel request, the EC identified certain 
reviews "as amended."  In its submissions in the original proceeding, the EC then referred to "any 
amendments," a term not found in the panel request except  to refer to determinations amended under 
US law.  The EC now seeks to construe the phr ase "any amendments" to mean any subsequent acts 
relating to the original challenged measures.  That is a far cry from the limited and specific use of the 
term "amended" in the original panel request.98 
5.23 Similarly, the United States notes that in its panel request in this proceeding, the EC 
specifically referred to the "measures in question"  as the 15 investigations and 16 administrative 
reviews found to be inconsistent "as applied" in th e original proceeding.  Now the EC considers that 
the scope of the measures in this proceeding is not limited to the measures it identified as measures in 
its panel request, but rather extends to any of the reviews listed in the Annexe s to its panel request.  
                                                      
93 US Opening Statement, Ex ecutive Summary, para. 21. 
94 US Opening Statement, Ex ecutive Summary, para. 22. 
95 US Opening Statement, Ex ecutive Summary, para. 23. 
96 US Opening Statement, Ex ecutive Summary, para. 24. 
97 US Closing Statement, Ex ecutive Summary, para. 10. 
98 US Closing Statement, Ex ecutive Summary, para. 11.  WT/DS294/RW 
 Page 21 
 
 
 To be sure, a  Member is not necessarily obliged to refer to the measures in question as "measures"; 
but when a Member expressly uses the term "measure" – a term of art referenced in Article 6.2 – to describe certain determinations, it can be reasonably inferred that not describing other determinations 
as "measures" has meaning, and that those determ inations are in fact not measures subject to 
challenge in the proceeding.  Under Article 6.2 of the DSU, the complaining party bears a clear 
obligation to identify, in  its panel request, "the specific  measures at issue."
99  I n  t h a t  w a y ,  t h e  
responding Member and potential third parties are provided clear notification of the measures at issue.  It is not for the responding Member to have to  guess which measures are at issue, nor should the 
responding Member or potential third parties bear th e adverse consequences of what the complaining 
party may later decide was an ill-advised word choice.
100  The United States argues that it is evident 
that the EC wishes to undo the limited "as applied" findings of the Appellate Body – while accusing 
the United States of declining to accept those same findings unconditionally.  However, these results 
cannot be obtained at the expense of the proce dural requirements set out in the DSU, both in 
Article 6.2 and in Article 21.  These concerns are not  "merely formal" but flow from the results of the 
particular negotiation and agreement by WTO Members.101 
5.24 The United States also observes that  the EC has stated repeatedly  in this proceeding that the 
"words" don't really matter.  The United States finds that this is a somewhat astonishing position to 
take in a dispute involving matters of treaty interp retation.  The United States is reminded of similar 
views taken by Humpty Dumpty in Through the Looking Glass.  "When I use a word, it means just 
what I choose it to mean."  Alice replies, "The question is whether you can make words mean so 
many different things."  And Humpty Dumpty res ponds:  "The question is, which is to be master – 
that's all."102  The United States emphasizes that words do in fact matter – Members negotiated and 
agreed on specific words in the covered agreements .  Complaining parties may not "choose to be 
master" by giving words different meanings over the course of a proceeding depending on what will 
net the best result.  That is precisely why due process matters.103 
5.25 In summary, the United States argues that, by attempting to include these additional 
54 determinations within the scope of this Article 21. 5 proceeding, the EC seeks to gain the benefit of 
an "as such" finding where the Appellate Body  expressly declined to make such a finding.104 
5.26 The United States notes that in the EC's original panel request, the EC identified 
determinations made by Commerce in sixteen ad ministrative reviews, but specifically challenged 
particular margins  in those determinations.  The EC also challenged multiple reviews  of the same 
product.  Thus, in the original proceeding, the EC  treated each review as a separate measure and in 
fact challenged specific margins within each such measure.  More over, while the Appellate Body 
found that Commerce's determination of margins of dumping "as applied" in the sixteen administrative reviews was inconsistent with certain  WTO obligations, the Appellate Body denied the 
EC's request that it find Commerce's methodol ogy for calculating margins of dumping in 
administrative reviews to be "as such" inconsistent with any WTO obligations.
105  This, according to 
the United States,  is consistent with the fact th at in each administrative review, Commerce examines 
different facts, a different time period, and a differe nt set of transactions.  Thus, in its initial panel 
                                                      
99 Emphasis added by the United States 
100 US Closing Statement, Ex ecutive Summary, para. 12. 
101 US Closing Statement, Ex ecutive Summary, para. 13. 
102 US Closing Statement, Ex ecutive Summary, para. 14. 
103 US Closing Statement, Ex ecutive Summary, para. 15. 
104 US Opening Statement, Ex ecutive Summary, para. 25. 
105 US First Written Submission, Executive Summary, para. 14. WT/DS294/RW  
Page 22  
 
 request, the EC recognized that a determination from one administrative review is separate and 
distinct from a determination made in  a subsequent administrative review.
106  
5.27 The United States argues that the EC cannot igno re the consequences of this and cannot bring 
entirely new and distinct determinations concerni ng different periods of tim e into this compliance 
proceeding simply because those determinations invo lved the same subject merchandise.  Rather, the 
scope of the DSB's "as applied" recommendations  and rulings are limited to those specific 
determinations that the EC indicated that it was challenging in its original panel request.  Anything 
else would, in view of the United States, be di rectly contrary to the fact that the DSB's 
recommendations and rulings were  limited to these 16 administrative reviews "as applied" and 
explicitly did not include an "as such" recommendation or ruling.107  The United States considers that 
the EC apparently understood this, as it filed a second challenge to Commerce's calculation 
methodology in an entirely separate DSB proceeding.  In the US – Zeroing (EC) II  panel request, for 
example, the EC identifies the determination in the administrative review of Certain Pasta from Italy 
covering sales made by PAM from 1 July 2002 thr ough 30 June 2003 as an "as applied" measure.  
This very same determination is also identified by th e EC as a review in the annex to its panel request 
that is "related to" the "measures in questi on."  The EC recognized that these subsequent 
determinations are distinct measures and not  measures taken to comply with the DSB's 
recommendations and rulings in this dispute.108  The United States argues that further undermining the 
EC's contention that subsequent reviews are measures taken to comply is the EC's argument that it is, 
in fact, challenging the US "omissions"  to take the necessary measures to comply.  The EC cannot 
have it both ways:  if the United States failed to comply by "omission," then any corresponding 
finding against the United States should be that a measure was not taken to comply, not that 
subsequent determinations are not consistent with US obligations.109 
5.28 The United States maintains that many of the di stinct administrative review determinations 
identified by the EC in its 21.5 panel request cannot  be considered measures taken to comply because 
they pre-date the adoption of the DSB's recommenda tions and rulings.  "As a whole, Article 21 deals 
with events subsequent  to the DSB's adoption of recommenda tions and rulings in a particular 
dispute."  Determinations made by a Member prio r to the adoption of a dispute settlement report are 
not taken for the purpose of achieving compliance and cannot be within the scope of an Article 21.5 
proceeding.110 
5.29 The United States understands the EC to argue th at the US implementation obligations with 
respect to the "as applied" claims extend to dis tinct determinations which supercede the measures 
described in its original panel request.  To this end, the EC is attempting to use these Article 21.5 
proceedings to obtain the effect of an "as such" fi nding that the Appellate B ody expressly declined to 
make.111  The US recalls that the EC made an " as such" claim against Co mmerce's methodology for 
calculating margins of dumping in administrative revi ews in its initial panel request.  The original 
panel rejected this claim.  The Appellate Body also declined to find that Commerce's calculation 
methodology in administrative reviews was inconsiste nt with US WTO obligations "as such."  Rather, 
the Appellate Body limited itself to "as app lied" findings concerning the sixteen Commerce 
determinations originally challenged by the EC.112  The United States contends, however, that the EC 
would have the United States recalculate the margin s of dumping in any subsequent determination 
which happened to involve the same products that were the subject of  the measures challenged in the 
                                                      
106 US First Written Submission, Executive Summary, para. 15. 
107 US First Written Submission, Executive Summary, para. 16. 
108 US First Written Submission, Executive Summary, para. 17. 
109 US First Written Submission, Executive Summary, para. 18. 
110 US First Written Submission, Executive Summary, para. 19. 
111 US First Written Submission, Executive Summary, para. 20. 
112 US First Written Submission, Executive Summary, para. 21.  WT/DS294/RW 
 Page 23 
 
 
 initial panel request.  That is, the EC seeks the bene fit of an "as such" finding, when neither the 
original panel nor the Appellate Body made one in  this dispute.  In light of the above, the 
United States maintains that the panel should reject the EC's efforts.113 
5.30 In its Second Written Submission, the United States  notes that the EC's r esponse to its request 
for a preliminary ruling only reinforces the defici encies in the panel request.  The United States 
considers it is telling that the EC felt the need to  include an entire section defending its view on the 
scope of a proceeding that it initiated – before the United States had even filed its first submission.  
Typically a complaining Party understands , and does not doubt, that its s ubmission is consistent with 
the terms of reference in its panel request and ther efore feels no need to make anticipatory assertions 
in that regard.114 
5.31 The United States notes the EC's contention that the "subsequent determinations" identified in 
the Annex to its panel request in this proceeding were  part of the terms of reference of the original 
proceeding, that they are measures taken to comply, and that they are "omissions".  For instance, not 
only is the EC arguing that these determinations ar e measures from the original proceeding as well as 
measures taken to comply, but the EC also argues that measures taken to comply both exist and do not 
exist, at the same time.  These propositions are, of course, mutually contradictory, in view of the 
United States.115  While the United States understands why the EC has great difficulty in finding a 
legal theory to justify why this Panel should consider  those determinations to fall within its terms of 
reference, and why the EC would th erefore write a series of contradictory arguments in the hopes that 
one of them might find favour, the United States regrets that – by the rebuttal submission – the complaining party in this matter has been  unable to simplify matters for the Panel.
116 
5.32 The United States also regrets that the EC would resort to characterizing the US arguments in 
connection with the preliminary ruling request as "s o patently absurd as to barely require further 
comment."  Having articulated that view, the EC nevertheless goes on to present two pages of commentary that does not address the basic question.
117  The crux of the matter, according to the 
United States, is simple:  why would the EC elect to refer in its panel request to the determinations in 
the 15 investigations and 16 administrative reviews as "measures" – a term with a particular meaning 
in the context of Article 6.2 of the DSU – but to all other determinations refere nced in that request as 
"reviews"?  The EC's own jurisdictional plea in its first submission exposes the EC's awareness that 
the panel request would be read just  that way, and thus the EC took great pains to argue, or overargue, 
that the panel request should be read more broadly.118 
5.33 The United States is not ignoring or deliberately misconstruing the express terms of 
paragraph 7 of the panel request.  According to th e United States, the EC acknowledges that the panel 
request refers to "reviews related to the measures in question"  but th e EC appears to assume that the 
words "related to" transform the "reviews" into "me asures" included within the terms of reference for 
purposes of its panel request.  The United States contends, however, that nowhere does the panel 
request state that those reviews ar e in fact the measures in question.119  Noting that the EC continues 
to argue that its reference to "omissions" brings  the reviews in the Annex within the terms of 
reference, the United States maintains that an omis sion is a failure to act, not an action; the reviews 
                                                      
113 US First Written Submission, Executive Summary, para. 22. 
114 US Second Written Submission, Executive Summary, para. 5. 
115 US Second Written Submission, Executive Summary, para. 6. 
116 US Second Written Submission, Executive Summary, para. 7. 
117 US Second Written Submission, Executive Summary, para. 8. 
118 US Second Written Submission, Executive Summary, para. 9. 
119 US Second Written Submission, Executive Summary, para. 10. WT/DS294/RW  
Page 24  
 
 are "actions"; and the reviews are therefore not omis sions.  Thus, a fair reading of the panel request 
does not allow subsequent reviews to be read into the word "omission."
120 
5.34 Finally, the United States notes that the EC has used a variety of terms to characterize its 
views on the measures at issue, i.e.,  the EC uses "subsequent reviews," "assessment instructions," and 
"amendments."  The United States considers that that fact that the EC appears to use them somewhat 
interchangeably adds to the confusion.121  The United States understands the EC to argue that, the 
subsequent reviews listed in the Annex to its panel request were actually measures from the original  
dispute.  It appears that the EC relies upon the use of the phrase "amendments" from the original 
proceeding as support for this proposition.  The EC  has failed to establish that these subsequent 
reviews are "amendments."  The EC has failed to est ablish that the subsequent reviews were part of 
the original proceeding.122 
5.35 The United States points out that the EC, in its original panel request, directly referenced 
amended determinations in the context of US an tidumping law.  US law provides a procedure to 
correct or remove any faults or errors in a Comme rce antidumping determination.  Thus, the reference 
to "amendments" has a precise meaning in the context of  this dispute.  It refers to corrections to the 
measures identified in the original proceeding; but it does not refer to subsequent  determinations, 
which involve different entries, different time periods , and perhaps even different parties.  The Annex 
to the original dispute itself reflects this fact.  In Annex II, the EC lists as separate "cases" multiple 
administrative reviews relating to the same order.  The EC's own original panel request therefore 
confirms that the phrase "amendments" did not refe r to subsequent determinations, and that the 
argument that the EC makes in this proceeding is therefore incorrect.123  
5.36 Similarly, the United States argues that sunset reviews are not amendments "to the original 
measures" either, despite the EC's assertion to th e contrary.  The United States maintains that 
administrative reviews are distinct proceedings because they involve different time periods and 
transactions.  Sunset reviews are distinct from inv estigations and administrative reviews because they 
determine whether the expiration of an antidumping du ty would be likely to lead to the continuation 
or recurrence of dumping and injury.  They  do not determine antidumping duty liability.124  Thus, 
according to the United States, a determination in a sunset review is not a mere correction or removal of the faults or errors from an investigation, bu t rather a separate determination for a separate purpose 
based on different evidentiary standards.  Like many  of the other determinations listed in the EC's 
annex to its Article 21.5 panel request, these sunset re view determinations did not exist at the time of 
the establishment of the original panel.
125 
5.37 The United States asserts that a further flaw with the EC's attempt to expand the terms of 
reference to include the subseque nt determinations listed in the Annex is that many of these 
determinations did not yet exist at the time of the establishment of the original panel.  A matter may only be referred to a panel if "final action has been taken by the administering authorities."  Anti-
Dumping Agreement , Article 17.4.  Measures that are not yet in existence at the time of panel 
establishment are not within a panel's terms of reference under the DSU.
126 
5.38 The United States argues that the EC's original "as applied" claims could not be as broad as 
the EC now contends because that would mean that the EC's claim encompassed Commerce 
                                                      
120 US Second Written Submission, Executive Summary, para. 11. 
121 US Second Written Submission, Executive Summary, para. 12. 
122 US Second Written Submission, Executive Summary, para. 13. 
123 US Second Written Submission, Executive Summary, para. 14. 
124 US Second Written Submission, Executive Summary, para. 15. 
125 US Second Written Submission, Executive Summary, para. 16. 
126 US Second Written Submission, Executive Summary, para. 17.  WT/DS294/RW 
 Page 25 
 
 
 determinations and actions that were  not in existence at the time of the establishment of the original 
panel.  The original panel was established at th e March 19, 2004 DSB meeting.  Yet most of the 
subsequent determinations identified by the EC in  its annex to its Article  21.5 panel request were 
made after  March 19, 2004.127  The United States further notes that some determinations listed in the 
Annex were made prior  to the EC's original corrected panel request.  Thus, the EC is using the 
concept of "subsequent determinations" to incl ude in this proceeding determinations that it could  have 
included not only in its original panel request, but in its corrected request.  This is still a further 
expansion of the findings in the original proceeding.128 
5.39 The United States also notes the EC's argument that the subsequent determinations listed in its 
annex to its Article 21.5 panel request are measures ta ken to comply, and are thus within the scope of 
this proceeding.129 The EC has asserted that these determin ations are "closely connected" to the 
original investigations and administrative reviews identified in the original proceeding.  Whether a 
determination has a connection to the DSB recommendations and rulings is not sufficient to bring that 
determination within the scope of an Article 21.5 proceeding.  The United States recalls that as the 
Appellate Body stated, not every measure that h as "some connection with," "could have an impact 
on," or could "possibly undermine" a measure taken to comply may be scrutinized in an Article 21.5 
proceeding.130  
5.40 In light of the above arguments by the EC, the United States concludes that not only is the EC 
seeking to have the Panel transform the as app lied findings of the original proceeding to future  events, 
but it is also trying to go back in time to have the Panel extend these findings to past events.  
However, the Panel's terms of reference are clear.   They are limited to the determinations in the 
15 investigations and 16 administra tive reviews, and not to reviews occurring prior to the adoption of 
the recommendations and rulings in this dispute.131 
5.41 The United States further observes that the EC's argument that it is not only challenging these 
subsequent determinations as me asures taken to comply, but th at it is, rather, challenging the 
"omissions or deficiencies " of the United States as reflected in these subsequent determinations, only 
further demonstrates, that the EC is attempting to ga in the benefits of an "as such" finding, when the 
Appellate Body declined to make one.132  That is, the "as applied" findi ngs made by the original panel 
and the Appellate Body covered the determina tions made in the 15 investigations and 
16 administrative reviews identified by the EC in its  original panel request.  As demonstrated above, 
the "as applied" findings did not cover the subseque nt determinations identified by the EC in the 
annex to its Article 21.5 panel request.133  An "as applied" challenge concerns the "application of a 
general rule to a specific set of facts."  By contr ast, "an 'as such' claim challenges laws, regulations, or 
other instruments of a Member that have general an d prospective application . . .".  As demonstrated 
in the US First Written Submission, the United St ates has removed the cash deposit rate established 
by the challenged determinations , and thus complied with the DSB's recommendations and rulings 
concerning the "as applied" claims.134 
5.42 The United States lastly reiterates that by co mplaining about the "continued" use of the 
allegedly "same methodology" that was the subject  of the DSB recommendations and rulings "when 
carrying out dumping determinations in the subse quent review proceedings", the EC effectively 
                                                      
127 US Second Written Submission, Executive Summary, para. 18. 
128 US Second Written Submission, Executive Summary, para. 19. 
129 US Second Written Submission, Executive Summary, para. 20. 
130 US Second Written Submission, Executive Summary, para. 21. 
131 US Second Written Submission, Executive Summary, para. 22. 
132 US Second Written Submission, Executive Summary, para. 23. 
133 US Second Written Submission, Executive Summary, para. 24. 
134 US Second Written Submission, Executive Summary, para. 25. WT/DS294/RW  
Page 26  
 
 complains of the general and prospective applicati on of the so-called "zeroing" methodology and that, 
despite the EC's contentions to the contrary, by seeking the application of the DSB's recommendations 
and rulings to "subsequent review proceedings," the EC is attempting to gain the benefit of an "as 
such" finding, when the Appellate  Body declined to make one.
135 
2. European Communities 
5.43 The European Communities submits that the request for a prelim inary ruling by the 
United States is unfounded.136  The EC notes in this regard that the United States137 requests the Panel 
to find that the only measures within the terms of reference of this proceeding are the 15 original 
investigations and 16 administrative reviews referenc ed in paragraph 7 of the EC's Panel Request.  In 
particular, the United States argues that certain admi nistrative and sunset review proceedings listed in 
the EC's Panel Request are not properly before this Panel because (1) they were not identified in the 
EC's Panel Request, and (2) they were not subject to the DSB's recommendations and findings in the original dispute and, thus, they are not measures taken to comply.
138  
5.44 The European Communities observe s that proceedings under Article 21.5 of the DSU relate to 
"measures taken to comply with the recommendati ons and rulings" of the DSB.  Thus, the phrase 
"measures taken to comply" refers to measures wh ich have been, or which should be, adopted by a 
Member to bring about compliance with the reco mmendations and rulings of the DSB.  In other 
words, a complaining Member can challenge either a Member's implementing actions ( i.e., measures 
which have been adopted) or their omissions ( i.e., measures which should have been adopted).  The 
European Communities recalls that an Article 21.5 pr oceeding is not only about the consistency of a 
measure taken to comply with the covered agreements , but also about the existence of such a measure 
and that this was explicitly conf irmed by the Appellate Body in US – Softwood Lumber IV (21.5) .  
Thus, if the recommendations and rulings of the DS B have not been complied with, a measure taken 
to comply does not "exist".139  In this context, the European Communities argues that the 
United States has failed to adopt measures nece ssary to comply with the DSB's recommendations.140 
5.45 The European Communities asserts that th e "measures taken to comply with the 
recommendations and rulings" for the purposes of Ar ticle 21.5 of the DSU necessarily flow from the 
particular "recommendations and rulings" in questio n:  in the present case, those adopted by the DSB 
in May 2006.141   
5.46 The European Communities recalls in this connec tion that the original dispute concerned the 
application by the United States of the so-calle d "zeroing methodology" when determining dumping 
margins in anti-dumping proceedings, including proc eedings resulting in the initial imposition of anti-
dumping measures and proceedings relating to the collection of anti-dumping duties.142 The EC 
observes that the "as applied" measures it challenge d in the original dispute were (i) 15 original 
investigations, including "any amendments" and "each  of the assessment instructions issued pursuant 
to any of the 15 Anti-dumping Duty Orders"; and ( ii) 16 administrative reviews, also including "any 
amendments" and "each of the assessment instructio ns issued pursuant to any of the 16 Notices of 
                                                      
135 US Second Written Submission, Executive Summary, para. 26. 
136 Executive Summary of the European Communities Second Written Submission (hereinafter "EC 
Second Written Submission, Executive Summary"), para. 7. 
137 US First Written Submission, paras. 30-54. 
138 EC Second Written Submission, Executive Summary, para. 7. 
139 Executive Summary of the European Communities First Written Submission (hereinafter "EC First 
Written Submission, Executive Summary"), para 15. 
140 EC First Written Submission,  Executive Summary, para. 14. 
141 EC First Written Submission,  Executive Summary, para. 17. 
142 EC First Written Submission, Executive Summary, para. 6.  WT/DS294/RW 
 Page 27 
 
 
 Final Results".143 In this respect, the European Communiti es argues that all the measures it challenges 
are clearly connected to the original Pane l and Appellate Body re ports, as explained in US – Upland 
Cotton (21.5) .  The  Annex to the Panel Request descri bes the subsequent measures adopted by the 
United States from the original investigations and ad ministrative review investigations identified in 
the original dispute.  These include (i) administ rative reviews which, in essence, collect the anti-
dumping duties due with respect to a particular pe riod of review and establish new cash deposit rates 
amending the ones calculated in the original investiga tions (or administrative reviews); and (ii) sunset 
reviews, which prolong the original anti-dumping order and, thus, the duties.144  
5.47 The European Communities argues that it has show n in detail in its Rebuttal Submission that 
those subsequent reviews were covered by the descr iption of the measures challenged in the original 
dispute.  In this context the European Commun ities specifically notes that the EC's First Written 
Submission in the original dispute described the measures at issue as 15 original investigations, 
including any amendments  and assessment instructions, and 16 administrative reviews, also including 
any amendments  and assessment instructions.145  The European Communities notes that the Panel in 
the original dispute correctly captured the desc ription of the measures at issue not only in 
paragraph 2.6 of its Report, but also in other sections, including its findings146, and that the adopted 
DSB reports found the 15 original investigations and 16 administrative reviews inconsistent with 
Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement and Article VI:2 of the GATT 1994 , and 
recommended the United States to bring its measures into conformity with its obligations.147  T h e  
European Communities also observes that its Notice of Appeal contai ned the same description of the 
measures.  Accordingly, the Appellate Body ruled on the basis of such a description.  In light of the 
above, the European Communities maintains that the DBS's recommendations and rulings in the 
original dispute comprised the 15 original investiga tions and the 16 administrative reviews, including 
any amendments  and any assessment instructions.148  Therefore, according to the EC, the 
United States was required to bring those measures, including any amendments and assessment instructions, into conformity with the mentioned agreements.
149 
5.48 The European Communities argu es that according to WTO juri sprudence, a measure that 
essentially replaces an earlier measure remains within th e terms of reference of an original panel.  
Thus, a 21.5 panel must be in a position to assess whether an annual administrative review 
determination (or sunset review) that confirms a nd supersedes the original determination relating to 
the same anti-dumping duty and the same methodology ( i.e., zeroing) constitutes a "continuing 
violation".150  Therefore, the European Communities cons iders that all matters referred to in its 
submission fall within the scope of this proceeding.   In particular, the measures mentioned in the 
Annex to the Panel Request, in addition to the S ection 129 Determinations explicitly mentioned by 
the United States as "measure taken to comply ", fall within the scope of this proceeding.151 
5.49 The European Communities observes that the Unite d States has hardly raised any substantive 
arguments in its First Written Submission; rather, it h as relied on purely formal ones.  In this respect, 
the European Communities notes its vi ew that the United States misint erprets the EC's claims with 
respect to the scope of this proceeding.  Any am endments and assessment instructions connected to 
the 15 original administrations and 16 administrativ e reviews were covered by the description of the 
                                                      
143 EC First Written Submission,  Executive Summary, para. 16. 
144 EC First Written Submission,  Executive Summary, para. 17. 
145 Executive Summary of the European Communities Opening Statement at the substantive meeting of 
the Panel (hereinafter "EC Opening Stat ement, Executive Summary"), para. 2. 
146 EC Opening Statement, Ex ecutive Summary, para. 2. 
147 EC First Written Submission,  Executive Summary, para. 18. 
148 EC Opening Statement, Ex ecutive Summary, para. 2. 
149 EC First Written Submission,  Executive Summary, para. 18. 
150 EC First Written Submission,  Executive Summary, para. 20. 
151 EC First Written Submission,  Executive Summary, para. 14. WT/DS294/RW  
Page 28  
 
 measures at issue in the original dispute.  Therefor e, the subsequent review proceedings listed in the 
Annex to the Panel Request, as well as the US omis sions and deficiencies in its compliance with the 
DSB's recommendations and findings, fall within th e scope of this proceeding.  Likewise, the 
European Communities claims that those subsequent reviews are measures taken to comply with the 
DSB's recommendations and findings and, thus, are subject to this proceeding.
152 
5.50 The European Communities  considers that in its Rebuttal Submission, the United States is 
trying to change what the Panel in the original dispute and the Appellate Body found to be the 
"measures at issue" in the origin al dispute.  The United States cannot reopen now an issue that was 
already settled by the Panel (and the Appellate Bo dy) in the original dispute.  Moreover, the 
description of the measures in the original dispute referred to " any amendments", which indicates the 
broad coverage of the measures at issue.153  The European Communities th erefore maintains that, as 
subsequent reviews were covered by the DSB's recommendations and rulings, the United States 
should have stopped using zeroing with respect to those measures, at least, after the end of the 
reasonable period of time ( i.e., 9 April 2007).  Since the United States has failed to do so, the 
European Communities challenges in this proceeding the US omissions and deficiencies  when 
complying with the DSB's recommendations and rulings.154 
5.51 The European Communities argues in  the alternative that, should the Panel consider that the 
subsequent reviews were not included in the desc ription of the measures in the original dispute 
(although the European Communities finds it impossi ble to envisage any basis on which the Panel 
could reach such a conclusion), the European Comm unities also argues that they equally fall within 
the terms of reference of this Panel because they  are "measures taken to comply".  Even if the 
subsequent review proceedings we re to be considered as separate  determinations or different 
measures from those covered by the DSB's recommenda tions and rulings in the original dispute, the 
European Communities is of the view that they can be regarded as "measures taken to comply" 
because of their close nexus  with the 15 original investigations  and the 16 administrative reviews in 
the original dispute.  The particular facts of this case show that the nature  of the subsequent reviews 
is, in essence , the same as the measures in the original dispute.  Moreover, the violation  originally 
challenged ( i.e., the use of zeroing when calculating dumping margins) still remains  in the subsequent 
review proceedings, either by a pplying simple zeroing when calculating the duties to be collected or 
establishing new deposit rates, or by relying on dumpi ng margins previously calculated with zeroing.  
Furthermore, the subsequent review proceedings relate to the same products , the same countries  and 
the same exporting companies .  In other words, according to the EC, they are a continuation  of the 15 
original investigations and the 16 administra tive reviews in the original dispute, whose effects  based 
on zeroing still remain in place after the end of the reasonable period of time.  Finally, as the 
Appellate Body observed in US – Softwood Lumber IV (21.5) , the European Communities considers 
that measures predating  the adoption of the DSB's recommendati ons and rulings may also be covered 
by Article 21.5 DSU proceedings.  Otherwise, Members could adopt new measures diametrically 
against compliance in a particular case just th e day before the adoption of the DSB report.155  In light 
of this close nexus , the European Communities submits that th e subsequent review proceedings listed 
in the Annex to the Panel Request can also be considered as "measures taken to comply" falling 
within the scope of this proceeding.156 
5.52 The EC maintains that, despite the US efforts to  argue otherwise, the measures at issue in the 
original dispute were the 15 original investigations and the 16 administrative reviews, including any 
amendments and their assessment instructions.  Sin ce the subsequent reviews proceedings listed in the 
                                                      
152 EC Second Written Submission, Executive Summary, para. 1. 
153 EC Opening Statement, Ex ecutive Summary, para. 3. 
154 EC Opening Statement, Ex ecutive Summary, para. 4. 
155 EC Opening Statement, Ex ecutive Summary, para. 5. 
156 EC Opening Statement, Ex ecutive Summary, para. 6.  WT/DS294/RW 
 Page 29 
 
 
 Annex to the Panel Request are amendments to the original measures, they fall within the scope of 
this proceeding.  Furthermore, an examination of  those subsequent review proceedings and the acts 
(and omissions) taken by the United States after the end of the reasonable period of time, shows that the United States (i) has continued collecting duti es and establishing cash deposits based on zeroing, 
and (ii) has relied on dumping margins equally b ased on zeroing to extend the original measures 
pursuant to sunset review proceedings.  Therefore, the US omissions and deficiencies in this case fully 
confirm the jurisdiction of this Panel to examine this matter.
157  Alternatively, the European 
Communities argues that it has shown that the subs equent reviews listed in the Annex to the Panel 
Request are "measures taken to comply", since they have a close nexus  with the DSB's 
recommendations and rulings in the original dispute.   Indeed, the subsequent reviews relate to the 
same products , the same countries  and the same exporters  and, thus, are a continuation  of the 15 
original investigations and 16 administrative reviews in the original dispute.  No matter which legal 
theory the Panel chooses to follow, it is eviden t that the United States cannot escape from a ruling on 
the substance of this case:  once again, the meaning of immediate compliance  with the DSB's 
recommendations and rulings.158 
5.53 The European Communities emphasi ses that through this compliance proceeding it is merely 
seeking to have the "as applied" findings adopte d by the DSB in the original dispute fully 
implemented by the United States, concluding that regardless of the characterisation of the findings 
made by the Panel and the Appellate Body in th e original dispute, the DSB's recommendations and 
rulings clearly stated that the zeroing methodology applied by the United States in the 15 original 
investigations and the 16 administrative reviews wa s inconsistent with Artic le 2.4.2 and 9.3 of the 
Anti-Dumping Agreement  and Article VI:2 of the GATT 1994 .  Consequently, in the EC view,  when 
applying the same zeroing methodology in the subse quent reviews listed in the Annex to the Panel 
Request, the United States failed to comply with  the DSB's recommendation to bring the measures 
into conformity with its obligations.159 
5.54 The European Communities argues that all matters referred to this Panel fall within the scope 
of this proceeding.160  The European Communities asserts that the Panel Request clearly identifies the 
measures at issue.  It disputes the US argument th at the European Communities has not complied with 
Article 6.2 of the DSU  since it has failed to identify the sp ecific measures at issue in its Panel 
Request.  The European Communities argues that th e US submission is entirely without merit.  
According to the European Co mmunities, the United States simply ignores or deliberately 
misconstrues the express terms of paragraph 7 of th e Panel Request, which refers to "the reviews 
related to the measures in question", and which e xpressly cross-refers to the Annex to the Panel 
Request, which lists the measures that the Europ ean Communities does place before this compliance 
Panel.161 
5.55 Moreover, the European Communities submits th at it has adequately identified the measures 
at issue in this dispute in its Panel Re quest.  As the Appellate Body observed in US – FSC (21.5 II) , in 
order to identify the "specific me asures at issue" in an Article 21. 5 proceeding, the complaining party 
must (i) cite the recommendations and rulings that  the DSB made in the original dispute which, 
according to the complaining party, have not yet been  complied with; and (ii) identify, with sufficient 
detail, the measures allegedly taken to comply with those recommendations and rulings, as well as 
                                                      
157 Executive Summary of the European Communities, Closing Statement at the substantive meeting of 
the Panel (hereinafter "EC Closing Stat ement, Executive Summary") para. 3. 
158 EC Closing Statement, Ex ecutive Summary, para. 4. 
159 EC Opening Statement, Ex ecutive Summary, para. 7. 
160 EC Second Written Submission, Executive Summary, para. 7. 
161 EC Second Written Submission, Executive Summary, para. 8. WT/DS294/RW  
Page 30  
 
 any omissions or deficiencies therein, or state that no such measures have been taken by the 
implementing Member.  The EC's Panel Request fully meets these requirements.
162 
5.56 The European Communities contends that the measures listed in the Annex to the Panel 
Request fall within the scope of this proceeding.  It rejects the US argument that the "subsequent 
reviews" listed in the Annex to the Panel Request (i ncluding administrative review and sunset review 
proceedings) were not covered by the original dis pute and, thus, are not "measures taken to comply" 
subject to this proceeding.  In this respect, the European Communities submits  that the United States 
tries to narrow the scope of the Article 21.5 pro ceedings and seeks to exclude measures that were 
subject to the DSB's recommendations and findings in  the original dispute and/or are measures taken 
to comply within the jurisdiction of this compliance Panel.163  The European Communities submits 
that the omissions by the United States are also c overed by the Article 21.5 proceeding, and the Panel 
is called upon to examine the "existence" (or inex istence) of measures taken to comply by the 
United States, in particular, by examining the sub sequent review proceedings listed in the Annex to 
the Panel Request.164 
5.57 The European Communities argues that the "subseq uent reviews" listed in the Annex to the 
Panel Request are measures which were covered by  the DSB's recommendations and findings in the 
original dispute and/or are measures taken to comply .  In this regard it notes that the United States 
argues that the subsequent reviews and their assess ment instructions that the European Communities 
contests in this proceeding were not the basis for the DSB's recommendations and ruling in the 
original dispute.  According to the United Stat es, the European Communities merely obtained DSB's 
recommendations and rulings with respect to th e USDOC's determinations in the 15 original 
investigations and the 16 administrative reviews.  The United States also main tains that the European 
Communities cannot bring new dumping determinations concerning different periods of time into this 
proceeding simply because those determinations  involved the same product.  Finally, the 
United States argues that many of the subsequent re view proceedings listed in the Annex to the Panel 
Request pre-date the adoption of the DSB reports and, thus, cannot be within the scope of an 
Article 21.5 proceeding.165 
5.58 The European Communities considers that the United States misunderstands the EC's claim 
on this point.  The European Communities is not onl y arguing that subsequent reviews and assessment 
instructions are "measures taken to comply" and, thus, that they fall within the scope of this 
proceeding.  Nor is the Europ ean Communities simply arguing that it can challenge new dumping 
determinations because they relate to the same product.  Rather, the European Communities also 
argues that subsequent reviews and assessment in structions with respect to the 15 original 
investigations and 16 administrative reviews challenge d in the original dispute were covered by the 
DSB's recommendations and findings, and thus that US omissions or deficiencies in that respect – as reflected in the said reviews – also clearly fall within the jurisdiction of this compliance Panel.
166 
5.59 The European Communities observes that its Fi rst Written Submission, the Panel Report, the 
EC's Notice of Appeal and the Appellate Body Report refer to "any amendments" and "assessment 
instructions" when describing the original investig ations and administrative reviews at issue in the 
original dispute.  Thus, the Eur opean Communities submits that the "s ubsequent reviews" listed in the 
Annex to the Panel Request (as well as any assessment instruction therein) are covered by the DSB's 
recommendations and finding and, thus, fa ll within the scope of this proceeding.167  In particular, the 
                                                      
162 EC Second Written Submission, Executive Summary, para. 9. 
163 EC Second Written Submission, Executive Summary, para. 10. 
164 EC Second Written Submission, Executive Summary, para. 11. 
165 EC Second Written Submission, Executive Summary, para. 12. 
166 EC Second Written Submission, Executive Summary, para. 13. 
167 EC Second Written Submission, Executive Summary, para. 13.  WT/DS294/RW 
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 European Communities considers that the United St ates has failed to take the necessary measures to 
eliminate zeroing in those subsequent reviews.  In other words, the United States has continued using 
the same methodology which was found inconsistent with the Anti-Dumping Agreement and the 
GATT 1994 by the reports adopted by the DSB in May 2006 when carrying out dumping determinations in the subsequent review proceedings  referring to the 15 original investigations and 16 
administrative reviews in the original dispute.  Thus, the US omissions and deficiencies in its 
compliance with the DSB's recommendations and findi ngs fall within the scope of this compliance 
proceeding.
168 
5.60 The European Communities also ar gues that the subsequent review proceedings listed in the 
Annex to the Panel Request are "measures taken to comply" since they are cl osely connected to the 
original investigations and administrative review s identified in the original dispute and the DSB's 
recommendations and rulings.  The European Communiti es observes that the nature of the subsequent 
reviews is, in essence, the same as the measures in the original dispute ( i.e., collect anti-dumping 
duties and establish cash deposits based on zeroing) .  The violation originally challenged ( i.e., the use 
of zeroing when calculating dumping margins) still re mains in the subsequent review proceedings.  
Further, the subsequent review proceedings relate  to the same products, the same countries and the 
same exporting companies.  In other words, they ar e a continuation of the 15 original investigations 
and 16 administrative reviews in the original disp ute, whose effects based on zeroing still remain in 
place after the end of the reasonable period of time.169 
5.61 The European Communities submits that the sun set reviews mentioned in the Annex to the 
Panel Request also fall within the scope of this pr oceeding.  In response to the argument made by the 
United States that, since the Eur opean Communities did not challenge  any sunset reviews in the 
original proceeding and, thus, there are no DSB's recommendations or findings relating to these, the 
sunset review proceedings listed in the Annex to th e Panel Request do not fall within the scope of this 
proceeding170, the European Communities recalls that  the adopted DSB's recommendation also 
covered any amendments to the 15 original investiga tions and 16 administrative reviews.  Article 11.3 
of the Anti-Dumping Agreement  provides for the termination of anti-dumping duties after five years in 
the absence of a positive determination in a sunset review, which restarts a new five-year period of 
application.  Determinations in sunset review  proceedings, which are based on previous dumping 
margins, may lead to the continuation of the me asures based on the level of duties found in the 
original LTFV investigation or the most recent administrative review which reflects the most 
representative degree of dumping.  Therefore, in vi ew of the European Comm unities, by their nature, 
sunset review proceedings are amendments to the original measures because they restart the 
application of the duty for another five years ( i.e., in their absence the duty would not longer be in 
force) and, thus, they were covered by the DSB' s recommendations and findings in the original 
dispute.  The European Communities argues that the US omissions or deficiencies in that respect – as 
also reflected in the said reviews – clearly fall w ithin the jurisdiction of this compliance Panel.  
Likewise, as mentioned before, the sunset review s listed in the Annex to the Panel Request are 
"measures taken to comply" since they are closel y connected to the original investigations and 
administrative reviews in the original dispute.171 
5.62 Noting the argument of the United States that th e European Communities is attempting to use 
this Article 21.5 proceeding to obtain the effect of an "as such" finding that the Appellate Body declined to make with resp ect to the use of simple zeroing in administrative reviews
172, the 
                                                      
168 EC Second Written Submission, Executive Summary, para. 14. 
169 EC Second Written Submission, Executive Summary, para. 15. 
170 EC Second Written Submission, Executive Summary, para. 16. 
171 EC Second Written Submission, Executive Summary, para. 17. 
172 EC Second Written Submission, Executive Summary, para. 18. WT/DS294/RW  
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 European Communities argues that the United States misinterprets the EC's claim in this regard.
173  
The European Communities argues that it is merely  seeking the implementation of the "as applied" 
finding of the panel report in the original disput e.  Therefore, the European Communities is not 
arguing in general , as the United States believes, that the US  implementation obligations with respect 
to the "as applied" claims extend to distinct determ inations – for example related to other products or 
other sub-regions of the European Communities, or en tirely new original investigations – or indeed to 
measures that may or may not "supersede" the measures described in the original Panel Request.  In contrast, the European Communities argues that, in this particular case , since the subsequent reviews 
and assessment instructions were part of the meas ures challenged in the original dispute, the US 
implementation obligations with respect to the " as applied" claims extend to any subsequent 
determination and assessment instruction in connec tion with the measures as described by the Panel 
and the Appellate Body in the original dispute, as well as the related US omissions or deficiencies.  In other words, the scope of the "as applied" finding co vered every instance of application (and omission 
or deficiency) of the zeroing methodology by the United States with respect to any amendments, 
including assessment instructions, of the 15 origin al investigations and 16 administrative reviews, 
since those were part of the measures challenged "as applied".
174  In light of the foregoing, the 
European Communities requests this Panel to fully re ject the request for preliminary ruling made by 
the United States.  The European Co mmunities invites this Panel to make a preliminary finding on the 
US request at an earlier stage of this proceeding, provided that this does not delay the conclusion of 
the proceeding in due time.175 
B. PANEL COMPOSITION  
1. European Communities 
5.63 The European Communities raises the issue of  the Panel composition as a procedural matter 
which must be examined in this case, also in view of the obvious and important systemic interest of a 
finding on this point.176 
5.64 The European Communities recalls that in the c ontext of an exchange of views between the 
Parties when discussing the composition of this Article 21.5 Panel, the WTO Secretariat indicated that 
the Chair of the Panel and one Member of the Panel were not available.  It was therefore clearly necessary, in the EC's view, to appoint at least two new panelists and to appoint one of the three 
panelists as Chair.  The remaining Panelist is fro m the European Communities.  On 1 October 2007, 
the European Communities sent a letter to the WTO Secretariat opposing the exclusion of this 
panelist, since he was available to serve as a panelist.   However, the EC states that in a meeting held 
with the parties on 5 October 2007, the WTO Secretar iat expressed the view that, without prejudice to 
the correct interpretation of the DSU on this point, three new panelists should be appointed.
177 
5.65 The European Communities calls upon this Panel to  interpret the relevant provisions of the 
DSU, in the exercise of its inherent jurisdiction to  consider and make findings with respect to such 
matters.  More specifically, the European Commun ities submits that a correct interpretation of the 
relevant provisions of the DSU necessarily leads to the conclusion that, when panelists of the original 
dispute are available to serve in Article 21.5 pro ceedings, they cannot be unilaterally removed from 
the panel by one of the Parties.  This is equally  the case even if the remaining panelists are of the 
nationality of one of the parties, since the origin al agreement pursuant to Article 8.3 of the DSU 
                                                      
173 EC Second Written Submission, Executive Summary, para. 19. 
174 EC Second Written Submission, Executive Summary, para. 19. 
175 EC Second Written Submission, Executive Summary, para. 20. 
176 EC Second Written Submission, Executive Summary, para. 3. 
177 EC Second Written Submission, Executive Summary, para. 4.  WT/DS294/RW 
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 cannot be revoked at any stage of the dispute proceeding, including subsequent compliance 
proceedings.178 
5.66 Finally, the European Communities is of the view  that a panel may be requested to rule on the 
propriety of its own composition, resulting in findings  subject to appellate review.  Even if the parties 
do not address this issue directly in their submissions, the Panel has a duty to address it, as it is of 
fundamental importance for the correct interpreta tion of the DSU and for the smooth and equitable 
operation of the WTO dispute settlement system.  Therefore, the European Communities requests the 
Panel to find that the composition of the Panel was not consistent with Articles 21.5 and 8.3 of the 
DSU.179 
2. United States 
5.67 The United States notes that the EC has asked th e Panel to rule on its own composition, and, 
in particular, to find that it was not composed in a manner consistent with Ar ticles 21.5 and 8.3 of the 
DSU for the first time in its rebuttal submission.  It would be tempting for a responding party to agree 
with such a claim, as it would mean the panel in qu estion had no authority to make findings on either 
of these claims, or the claims in the panel re quest.  However, taking that position would do an 
injustice to the dispute settlement system, and thus th e United States simply points out that it is struck 
by the irony in the EC's self-defeating, illogical, and unsupportable claim.180  The United States 
submits that these claims are not within the terms of reference of this Panel because they are not part 
of the "matter" referred to the DSB by the EC in its  panel request.  It argues that these claims are not 
about a measure identified in that panel request and that, in fact it is unclear, in light of DSU 6.2 and 7.1, how such a claim could ever be within  the scope of a panel's terms of reference.
181 
5.68 At the same time, the United States notes that  the EC did not have the permission of the 
United States to disclose anything that the United States may or may not have said during the panel composition process.  The United States is deeply c oncerned by the EC's unilateral actions in this 
regard.  The United States therefore requests the Pane l to strike from the record any discussion of the 
panel selection process (other than the EC's own selective allegations con cerning its own positions) 
and request that third parties destroy or return this information.
182 
C. VIOLATIONS WITH RESPECT TO ALL ME ASURES COVERED IN THIS PROCEEDING  
1. Whether the United States extended the measures challenged in the original dispute 
pursuant to sunset review proceedings which relied on dumping margins calculated with 
zeroing 
(a) European Communities 
5.69 The European Communities argues that the United States has extended the duration of the 
original measures challenged in the original disput e pursuant to sunset review proceedings concluded 
before and after 9 April 2007183, i.e.,  beyond the end of the reasonable period of time, notably as a 
result of sunset review investigations.184  The European Communities observes that although the 
future duty rate has generally been set based on the non-zeroed "Section 129 " re-determinations, the 
fact remains that, in the sunset reviews, the Unite d States expressly relied on the results of previous 
                                                      
178 EC Second Written Submission, Executive Summary, para. 5. 
179 EC Second Written Submission, Executive Summary, para. 6. 
180 US Second Written Submission, Executive Summary, para. 2. 
181 US Second Written Submission, Executive Summary, para. 3. 
182 US Second Written Submission, Executive Summary, para. 4. 
183 EC First Written Submission,  Executive Summary, para. 21. 
184 EC First Written Submission, Executive Summary, para. 7. WT/DS294/RW  
Page 34  
 
 administrative review investigations, based on zeroing.
185  In particular, it asserts that the USDOC 
decided to extend the measures challenged in the original dispute because, based on the previous 
levels of dumping found with zeroing in prior pro ceedings, it considered that it was likely that 
dumping would recur.  In this respect, the Europe an Communities submits that the United States 
violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement .186  T h e  
European Communities argues that the Anti-Dumping Agreement and the established case-law are 
clear on this point.  If a sunset review relies on a zeroed dumping margin, the sunset review is necessarily inconsistent with the Anti-Dumping Agreement .
187  
5.70 The European Communities maintains that the United States has relied on the dumping 
margins calculated with zeroing when finding the likelihood of recurrence of dumping in sunset 
review proceedings.  In this sense, the European Communities challenges the omissions  by the 
United States to take the necessary measures to comply in this case, i.e., (i) that the United States 
should, on 9 April 2007, have stopped collecting anti-dumping duties based on zeroing in connection 
with any of the measures described in the original dispute and, thus, with respect to the measures 
contained in the Annex to the Panel Request; and ( ii) that the United States should have recalculated, 
without zeroing, the previous dumping margins base d on zeroing, in order to rely on them for the 
assessment of likelihood of recurrence of dumping in sunset review proceedings with respect to the 
measures mentioned above.188 
5.71 The European Communities recalls that, as highlighted by the Appellate Body in US – 
Corrosion-Resistant Steel Sunset Review , if a likelihood determination under Article 11.3 of the Anti-
Dumping Agreement is based on a dumping margin calculated using a methodology inconsistent with 
Article 2.4 of the Anti-Dumping Agreement , then this defect taints the likelihood determination too 
and, thus, the USDOC's likelihoo d determination could not constitute a proper foundation for the 
continuation of anti-dumping duties under Article 11.3 of the Anti-Dumping Agreement .  Moreover, 
the Appellate Body had the occasion to rule on th e inconsistency of the use of zeroing in sunset 
review proceedings in measures adopted by the United States in US – Zeroing (Japan) , where it also 
noted that the USDOC relied on past margins that were calculated during administrative reviews on 
the basis of "simple zeroing".  Having previously  concluded that zeroing in administrative review 
investigations is inconsistent with Articles 2.4 and 9.3 of the Anti-Dumping Agreement , the Appellate 
Body found that the determinations in the sunset re views at issue were inconsistent with Article 11.3 
of the Anti-Dumping Agreement .189  In light of the foregoing, the European Communities submits that, 
by relying in the sunset review proceedings men tioned in the Annex to the Panel Request on margins 
calculated in prior proceedings using model or simp le zeroing, the United States did not comply with 
its obligations pursuant to Articles 2.1, 2.4 and 2. 4.2 because these margins were not based on a fair 
comparison and not calculated for the product as a whole.  As a result, the United States acted in breach of Article 11.3 of the Anti-Dumping Agreement .
190 
5.72 The European Communities notes that the Unite d States has not contested this claim in 
substance191, and that it has not produced any substa ntive evidence to rebut the EC's claims.192  The 
                                                      
185 EC First Written Submission, Executive Summary, para. 2. 
186 EC First Written Submission,  Executive Summary, para. 21. 
187 EC First Written Submission, Executive Summary, para. 2. 
188 EC First Written Submission,  Executive Summary, para. 19. 
189 EC First Written Submission,  Executive Summary, para. 22. 
190 EC First Written Submission,  Executive Summary, para. 23. 
191 EC Second Written Submission, Executive Summary, para 21.  See also, European Communities, 
Opening Statement at the substantive m eeting of the Panel (hereinafter "EC Opening Statement"), para. 8.  "As 
regards the sunset review proceedings  listed in the Annex to the Panel Request, the European Communities has 
shown that the United States has extended the life of the 15 original investigations and the 16 administrative reviews in the original dispute in a manner contrary to Article 11.3 of the Anti-Dumping Agreement.  The 
United States has not contested this claim in substance".  WT/DS294/RW 
 Page 35 
 
 
 European Communities observes that on this point , the United States only argues that, since the 
European Communities did not challenge any sunset re views in the original proceeding, there are no 
DSB's recommendations or findings relating to these a nd, therefore, the sunset reviews listed in the 
Annex to the Panel Request do not fall within the scope of this proceeding.  In this respect, the European Communities recalls its arguments that the adopted DSB's recommendation also covered 
any amendments to the 15 original investigati ons and 16 administrative reviews, including sunset 
review proceedings, and related US omissions or deficiencies therein.  Thus, the sunset reviews 
proceedings listed in the Annex to the Panel Request fall under the scope of this proceeding.
193 
Therefore, the European Communities requests the Panel to find that United States did not comply 
with the DSB's recommendations and rulings and vi olated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-
Dumping Agreement when extending the measures contained in th e original dispute pursuant to sunset 
review proceedings relying on margin  of duties calculated with zeroing.194   
(b) United States 
5.73 In response to the EC's attempts to challenge certain sunset reviews, the United States recalls 
that the EC did not challenge any sunset reviews in the original proceeding and, thus, there are no 
DSB recommendations or rulings relating to sunset  reviews.  Consequently, the sunset reviews 
identified in the EC's 21.5 panel request cannot be  within the terms of reference of this panel.195  The 
EC relies on US – Zeroing (Japan)  for support.  However, in view of the United States, that dispute 
only confirms the fundamental flaw in the EC's posture.  In US – Zeroing (Japan) , Japan in its panel 
request in the original proceeding expressly challeng ed sunset reviews and included a claim that the 
United States had acted inconsistently with Article 11.3.  By contrast, in its panel request in the 
original proceeding, the EC did not challenge sunset reviews nor set out a claim concerning 
Article 11.3.  (Indeed, the EC appears to have rec ognized that claims against sunset reviews must be 
made in the original panel request , because it has expressly done so in  its other zeroing dispute against 
the United States.)  The United States argues that the EC cannot cure its failure to pursue a claim in 
the original proceeding by seeking to include it in a compliance proceeding.196  In addition, the 
United States argues that the EC's Article 21.5 pane l request did not identify the sunset reviews as 
measures within the terms of reference of this pr oceeding.  Rather, the sunset reviews are simply 
identified as "reviews" related to the measures in question.  Therefore, with respect to those reviews, 
the EC did not "specify the measures at issue" as required by Article 6.2.197 Thus, the United States 
respectfully requests the Panel to find that the only measures within the term s of reference of this 
proceeding are the 15 original investigations and 16  administrative reviews referenced in paragraph 7 
of the EC's Article 21.5 panel request.198 
                                                                                                                                                                     
192 EC Closing Statement, Ex ecutive Summary, para. 5. 
193 EC Second Written Submission, Executive Summary, para. 21. 
194 EC Second Written Submission, Executive Summary, para. 22. 
195 US First Written Submission, Executive Summary, para. 23. 
196 US First Written Submission, Executive Summary, para. 24. 
197 US First Written Submission, Executive Summary, para. 25. 
198 US First Written Submission, Executive Summary, para. 26. WT/DS294/RW  
Page 36  
 
 2. Whether the United States continues to co llect anti-dumping duties and impose cash 
deposits inflated by zeroing after 9 April 2007, has failed to revoke the original orders entirely, and whether the 16 administrative rev iews challenged in the original dispute 
have been "superseded"  
(a) European Communities 
5.74 The European Communities argues that after the end of the reasonable period of time, the 
United States continues to take positive acts, incl uding new administrative review investigations, 
assessment instructions and final liquidations, based on zeroing.   
5.75 The European Communities clarifies that it ha d challenged certain US legal instruments, 
procedures, methodologies and practice, "as such" and "as applied".  In the 15 "as applied" cases 
referred to by the European Comm unities as "original investigations " the challenged measures were:  
the 15 Notices of Final Determinations of Sales at  Less Than Fair Value, including any amendments, 
and including all the Issues and Decision Memoranda to which they refer, and all the Final Margin 
Program Logs and Outputs to which they in turn re fer, for all the firms investigated; each of the 15 
Anti-dumping Duty Orders; each of the assessment in structions issued pursuant to any of the 15 Anti-
dumping Duty Orders; and each of the USITC final in jury determinations.  In the 16 "as applied" 
cases referred to by the European  Communities as "administrative reviews" the challenged measures 
were:  the 16 Notices of Final Results of Anti dumping Duty Administrativ e Reviews, including any 
amendments, and including all the Issues and Decisi on Memoranda to which they refer, and all the 
Final Margin Program Logs and Outputs to which they in turn refer, for all th e firms investigated; and 
each of the assessment instructions issued pursu ant to any of the 16 Notices of Final Results.
199 
5.76 The European Communities notes that on 31 October 2005, the Panel in the original 
proceedings circulated its report, finding that the United States had acted inconsistently with 
Article 2.4.2 of the Anti-Dumping Agreement when, in the original anti-dumping investigations 
concerned, the USDOC used "model zeroing".  The Pa nel in the original proceedings also found that 
the same methodology was inconsistent, "as such", with Article 2.4.2 of the Anti-Dumping 
Agreement .  However, the Panel concluded that the Un ited States did not act inconsistently with 
Article 2.4.2 of the Anti-Dumping Agreement when using "simple zeroing" in the administrative 
reviews at issue.  On 18 April 2006, the Appellate Body, following an appeal by the European Communities, issued its report, finding that the Unite d States had acted inconsistently with Article 9.3 
of the Anti-Dumping Agreement and Article VI:2 of the GATT 1994  in the administrative review 
investigations at issue due to its use of a "simpl e zeroing" methodology, a nd reversing Panel's finding 
to the contrary.  Moreover, the Appellate Body u pheld the Panel's conclusion that "model zeroing" 
was inconsistent, "as such", with Article 2.4.2 of the Anti-Dumping Agreement .  However, the 
Appellate Body was unable to complete the analys is to determine whether "simple zeroing" in 
administrative reviews was inconsistent, "as such", with the provisions of the Anti-Dumping 
Agreement .
200 
5.77 The European Communities recalls that th e Appellate Body recommended that the DSB 
request the United States to bring its measures, wh ich had been found to be inconsistent with the Anti-
Dumping Agreement and with the GATT 1994 , into conformity with its obligations under those 
Agreements.  On 9 May 2006, the DSB adopt ed the Appellate Body Report contained in 
WT/DS294/AB/R and the Panel Report contained in WT/DS294/R, as modified by the Appellate 
Body Report.201   
                                                      
199 EC First Written Submission, Executive Summary, para. 7. 
200 EC First Written Submission, Executive Summary, para. 8. 
201 EC First Written Submission, Executive Summary, para. 9.  WT/DS294/RW 
 Page 37 
 
 
 5.78 The European Communities observes that on 28  July 2006, the Eur opean Communities and 
the United States agreed, pursuant to Article 21.3(b)  of the DSU, that the reasonable period of time 
for the United States to implement the recommenda tions and rulings of the DSB in the original 
dispute "shall be 11 months", expiring on 9 April 2007.202  The European Communities points out that 
on 27 December 2006, the United States published a notice whereby it announced that it was 
abandoning "zeroing" in average-to-average comparis ons in anti dumping original investigations.  The 
final modification became effective on 22 February  2007.  The European Communities explains that 
with this, the United States committed to abandon the use of "model zeroing" in all current and future 
anti-dumping original investigations as of the effec tive date.  Subsequently, the United States began a 
recalculation of the margins of dumping in 12 of th e 15 original investigations challenged in the 
original dispute.  In three of the 15 original inv estigation measures, the United States considered that 
it did not have to take any action since the anti- dumping orders had been previously revoked for 
reasons other than zeroing.  The United States, having issued provisional findings on 26 February 2007, issued its final fi ndings in 11 of the revised origin al investigations on 9 April 2007, 
which entered into effect on 23 April 2007, and on 20 August 2007 issued its final findings in Certain 
Stainless Steel Sheet and Strip from Italy (which entered into force on 31 August 2007) (the "Section 
129 Determinations").
203  
5.79 Despite the fact that the subsequent meas ures amended the 15 original orders and 
16 administrative reviews challenged in the original  dispute, the European Communities asserts that 
the United States continued after the end of the reasonable period of impl ementation and still now 
continues collecting duties calculated using zeroing as a result of those measures.204  In other words, 
the EC argues that despite the fact that the use of zeroing has been f ound repeatedly inconsistent with 
WTO rules in previous cases, the United States is relu ctant to comply with its obligations and, thus, 
has failed to fully implement the recommendations of the DSB in the original dispute.205  
5.80 The European Communities asserts that the United States cannot change reality:  after the end 
of the reasonable period of time, it has taken pos itive acts providing for final payment of the duties 
due or retention of the cash deposits made based on  zeroing with respect to those entries not finally 
liquidated before the end of the reasonable period.206 
5.81 In the EC's view, in order to comply imme diately with the DSB's recommendations and 
rulings in the original dispute, (i) the United States should have stopped taking any positive acts 
providing for the final payment of duties or retentio n of cash deposits based on zeroing with respect to 
those entries not finally liquidated before the end of the reasonable period in connection with any of 
the measures described in the origin al dispute and, thus, with respect to the measures contained in the 
Annex to the Panel Request; and (ii) the United St ates should have recalculated, without zeroing, the 
previous dumping margins based on zeroing, in order to  rely on them for the assessment of likelihood 
of recurrence of dumping in sunset review proceedi ngs with respect to the measures mentioned above.  
In addition, the United States, once it recalculated the dumping margins without zeroing pursuant to 
the Section 129 Determinations and revoked the me asures, should have stopped collecting any duties 
at all, since the measures were thereby, in eff ect, void.  All these acts are, in the EC's view, 
prospective in nature.207  The European Communities observes that it cannot understand why the 
United States, would not, in a simple accounting exer cise, adjust its calculations so as to properly 
reflect the degree of dumping, if any, (i.e. without zeroing) that occurred, having a full opportunity to do so (in subsequent reviews of the measures co ncerned or in the appeals and protests filed by 
                                                     
 
202 EC First Written Submission,  Executive Summary, para. 10. 
203 EC First Written Submission,  Executive Summary, para. 11. 
204 EC First Written Submission,  Executive Summary, para. 19. 
205 EC First Written Submission, Executive Summary, para. 1. 
206 EC Closing Statement, Ex ecutive Summary, para. 5. 
207 EC Closing Statement, Ex ecutive Summary, para. 6. WT/DS294/RW  
Page 38  
 
 importers against them) and at least  with effect from the end of the reasonable period of time, noting 
that the United States has failed to provide any explanation on this point.
208 
5.82 In the particular circumstances of this case, in which such positive acts were expressly found 
to be part of the original measures at issue, th e European Communities is of the view that it is 
impossible to characterise the actions (and omissi ons) of the United States as constituting immediate 
compliance.209  The European Communities recalls that the matter addressed by the Panel in the 
original proceedings was the use of zeroing when calculating dumping margins in original 
investigations as well as in administrative review s and that the European Communities referred to 
15 original investigations and 16 administrative re views in order to demonstrate how the US zeroing 
methodology was inconsistent, inter alia , with Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement .  
The Appellate Body agreed with the European Co mmunities position.  Despite the DSB's findings and 
recommendation to bring its measures into conformity , the United States has manifestly failed to do 
so.210  
5.83 In support of its position, the European Communitie s asserts that, first, with respect to the 
original investigations  covered in the original dispute, the United States has issued assessment 
instructions to collect anti-dumping duties in sub sequent administrative reviews where simple zeroing 
was used and whose results were obtained afte r 9 April 2007.  Second, even in cases where 
administrative review proceedings were not requested  by the companies concerned, after 9 April 2007 
the United States still seeks to collect duties at the rate established in the original investigations 
covered by the original dispute, where "model zer oing" was used.  Third, in addition to issuing 
assessment instructions to collect anti-dumping duti es, the United States has also established new cash 
deposits as a result of subsequent administrative revi ews proceedings in connection with the original 
investigations challenged in the original dispute us ing simple zeroing after the end of the reasonable 
period.  Fourth, with respect to administrative review proceedings  covered in the original dispute, the 
United States has also issued asse ssment instructions to collect anti-dumping duties and has 
established new cash deposits in subsequent admi nistrative reviews where simple zeroing was used 
and whose results were obtained after 9 April 2007.  Fifth, with respect to both the original 
investigations and administrative reviews  covered in the original dispute, after 9 April 2007 the 
United States still actively seeks to collect anti-du mping duties as a result of modifications of the 
original measures pursuant to subsequent admini strative review proceedings for which assessment 
instructions were sent before 9 April 2007 and where "simple zeroing" was used and that after 
9 April 2007, the United States still takes positive acts providing for final payment of the duties due or 
retention of the cash deposits made based on zer oing with respect to those entries not finally 
liquidated before the end of the reasonable period to implement the DSB's recommendations.211 
5.84 The European Communities submits that the me asures adopted by the United States described 
above cannot be considered as "compliance with the DSB's recommendations".  The 
European Communities observes that the DSB recommended that the United States bring the 
measures found inconsistent with the Anti-Dumping Agreement and the GATT 1994  into conformity 
and maintains that those measures included in the original dispute "any amendments" as well as "each 
assessment instructions issued pursuant to" the original order and/or administrative review.212 
5.85 The European Communities argues that the modi fications made by the United States have not 
changed the "essence" of the contested measure in the original dispute ( i.e., use of zeroing in original 
                                                      
208 EC First Written Submission, Executive Summary, para. 3.  See also, EC Closing Statement, 
Executive Summary, para. 7, See also EC Second Written Submission, Executive Summary, para. 27 
209 EC First Written Submission, Executive Summary, para. 3. 
210 EC First Written Submission,  Executive Summary, para. 24. 
211 EC First Written Submission,  Executive Summary, para. 25. 
212 EC First Written Submission,  Executive Summary, para. 26.  WT/DS294/RW 
 Page 39 
 
 
 investigations and administrative reviews) because the products from the countries concerned in the 
original dispute still are subject to anti-dumping duties unfairly imposed pursuant to the use of a 
methodology which has been found inconsistent by  the adopted DSB reports and by the Appellate 
Body in other occasions.213  Therefore, the European Communities considers that, since the 
United States still collects anti-dumping duties calcu lated with zeroing with respect to the cases 
identified in the original dispute after 9 April 2007, the United States continues to violate 
Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement and Article VI:2 of the GATT 1994 .214 
5.86 Since it is not possible to relitigate the same issue twice in Article 21.5 proceedings, the 
European Communities submits that this Panel shoul d not enter again into the conformity of the 
zeroing methodology with the mentioned agreements .  This has already been confirmed by the 
adopted DSB reports in the original dispute, and is res judicata .215  Accordingly, since it is established 
that the United States still collects anti-dumping duties calculated with zeroing with respect to 
measures challenged in the original dispute, the Eu ropean Communities requests the Panel to find that 
the measures listed in the Annex to the Panel Request  are inconsistent with Articles 2.4.2 and 9.3 of 
the Anti-Dumping Agreement and Article VI:2 of the GATT 1994 , and that the United States remains 
in violation of these provisions.216 
5.87 The European Communities notes that the United States has not contested the facts provided 
by the European Communities that it has conti nued collecting duties and imposing cash deposits 
based on zeroing with respect to the measu res challenged in the original dispute.217  The European 
Communities observes that, instead the United Stat es argues that it has complied with the DSB's 
recommendations and rulings in the original dispute since no duties, as resulting from the 
determinations made in the 15 orig inal investigations and 16 administrative reviews identified in the 
original dispute, are collected with respect to imports made on or after the end of the reasonable 
period.  Moreover, the United States consid ers that the cash deposits resulting from the 16 
administrative review proceedings challenged in th e original dispute (the only element which may 
have remained after the end of the reasonable peri od), are no longer in place since they have been 
superseded and replaced by new determinations in  subsequent administrative review proceedings.218 
5.88 As a preliminary remark, the European Communities notes that the US arguments purporting 
to demonstrate compliance with the DSB's recommenda tions and rulings in the original dispute are 
incorrect.  But even following th e US theory that compliance in  this case means that no imports 
relating to the 15 original investigations and the 16 administrative reviews made after the end of the 
reasonable period of time are subject to duties based on zeroing, the European Communities argues 
that the facts of the case show something different .  The European Communities notes in this context 
that the United States has recognised that imports of stainless steel wire rod from Sweden (Case 6 in 
the Annex of the Panel Request) after 9 April 2007 are subject to the original anti-dumping duties based on model zeroing.  Likewise, the United Stat es has admitted that it continues collecting anti-
dumping duties and imposing cash deposits on impo rts of ball bearings from the United Kingdom 
(Case 31 in the Annex to the Panel Request) made by  one company (NSK) at the rate based on simple 
zeroing in the administrative review challenged in th e original dispute.  Therefore, according to the 
EC, even under the US own theory, it is evident that the United States has not complied with the 
                                                     
 
213 EC First Written Submission,  Executive Summary, para. 27. 
214 EC First Written Submission,  Executive Summary, para. 28. 
215 EC First Written Submission,  Executive Summary, para. 29. 
216 EC First Written Submission,  Executive Summary, para. 30. 
217 EC Second Written Submission, Executive Summary, para. 2. 
218 EC Second Written Submission, Executive Summary, para. 23. WT/DS294/RW  
Page 40  
 
 DSB's recommendations and rulings in the original dispute
219, and that the US lack of compliance 
with the DSB's recommendations and rulings in the original dispute is obvious and manifest.220 
5.89 The European Communities explains that the lia bility to pay anti-dumping duties in the US 
system is determined at a later stage than the ti me of importation.  The United States argues that the 
anti-dumping liability is created at the time of impor tation and, thus, imports made before or during 
the reasonable period of time to comply with the DSB's recommendations and rulings can be subject 
to WTO-inconsistent measures.  In contrast, the Eu ropean Communities considers that, in light of the 
particularities of the US system of duty assessment, the final amount to be collected and, thus, the 
obligation to pay any anti-dumping duties, is determined  at a later stage than the time of importation.  
According to the US system of duty assessment, th e final and true liabilities are established by the 
USDOC based on a subsequent retrospective accounti ng exercise.  This exercise may lead to the 
conclusion that the importer is not responsible for the payment of duties.  Moreover, importers can 
appeal the amounts established by the USDOC in  accordance with US municipal law.  These 
proceedings may result in a finding of no liability at  all and, thus, no obligation to pay duties (or, 
alternatively, a modification of the amounts to be collected due to, for exam ple, arithmetical errors 
made by the USDOC when calculating the duties).221 In these circumstances, the 
European Communities cannot understand why the Unite d States would not adjust its calculations so 
as to properly reflect the degree of dumping ( i.e., without zeroing) that occurred (if any), having a full 
opportunity to do so (in subsequent reviews of th e measures concerned or in the appeals and protests 
filed by importers against them), and at least w ith effect from the end of the reasonable period of 
time.222 
5.90 According to the EC, what the United States ar gues in this case is that it can collect duties 
based on zeroing after the end of the reasonable period  of time even if the original anti-dumping order 
has been revoked because, absent zeroing, no dumpi ng was found (or because of any other reason).  
Therefore, the United States acknowledges that its m easure should never have been taken in the first 
place, while still claiming the right to collect anti-dumping duties (on a non-existent measure) long 
after its revocation.223  In other words, in the view of the EC, the United States is seeking to squeeze 
the juices out of the WTO-inconsistent measures until their last drop, even after the end of the reasonable period to comply agreed by the Parties to the dispute.  Once more, this cannot be the 
meaning of "prompt compliance" in Article 21 of the DSU .  Nor can it imply that the measures have 
been withdrawn, as required by Article 3.7 of the DSU .
224 Moreover, the US interpretation of 
compliance will render the US system of duty assessment untouchable, as a moving target that 
                                                      
219 EC Second Written Submission, Executive Summary,  para. 24.  See also, EC, Opening Statement, 
para. 9: 
"In addition, the European Communities has already shown in its submissions how the 
United States, even after the end of the reasonable period of time, has continued taking 
positive acts providing for the final payment of duties or retention of cash deposits based on zeroing with respect to those entries not finally liquidated before the end of such a period.  In 
a nutshell, with respect to the 15 original inve stigations and the 16 administrative reviews in 
the original dispute, including their amendments as contained in the Annex to the Panel Request, the United States has carried out fi nal duty assessments, has sent assessment 
instructions, has liquidated duties and has continued proceedings seeking final liquidation of 
duties all based on zeroing after 9 April 2007.  Further, the United States has continued collecting duties even if the original anti-dumping orders were revoked because the non-
zeroed recalculation of the dumping margin from the original investigation resulted in a 
negative final determination of dumping." 
220 EC Opening Statement, Ex ecutive Summary, para. 10. 
221 EC Second Written Submission, Executive Summary, para. 26. 
222 EC Second Written Submission, Executive Summary, para. 27. 
223 EC Second Written Submission, Executive Summary, para. 31. 
224 EC Second Written Submission, Executive Summary, para. 32.  WT/DS294/RW 
 Page 41 
 
 
 escapes from anti-dumping duty disciplines.  Each administrative review proceeding would have to be 
subject to a new panel request, and by the tim e the panel, Appellate Body and implementation 
procedure was completed, another administrative review proceeding would have superseded the 
results of any previous review.  A new panel woul d have to be started ag ainst this review.  The 
European Communities considers that this would run diametrically contrary to the purpose and 
objective of Article 21 of the DSU .225 
5.91 The European Communities maintains that the US  theory to assess compliance in this case is 
inappropriate226, as well as inaccurate  and insufficient .227  The European Communities considers that 
the application of the US theory as regards implementa tion would lead to absurd results in light of the 
circumstances of this case228, because it would imply that a Member whose measure has been found to 
be inconsistent with the WTO Agre ements could still effectively apply that measure even after the end 
of the reasonable period of time to comply with the DSB's recommendations and findings.229  Thus, 
the European Communities submits that the Panel should reject it.230 
5.92 The European Communities sets out why it considers the US's compliance theory  is 
inaccurate .  As the United States has acknowledged and not contested, it has continued levying anti-
dumping duties at the rates originally established pursuant to model zeroing on imports of stainless 
steel wire rod from Sweden (Case 6 in the Annex of  the Panel Request) after 9 April 2007; and has 
equally continued collecting anti-dumping duties and imposing cash deposits at the rates based on 
simple zeroing on imports of ball bearings from th e United Kingdom (Case 31 in the Annex to the 
Panel Request), i.e., the same rates of the administrative review challenged in the original dispute.  
Therefore, it is evident that the United States ha s not complied with the DSB's recommendations and 
rulings in the original dispute.231  Next, the European Communities e xplains why it considers the US's 
compliance theory  is insufficient - because, in the EC view, it allows  the United States to keep its so-
declared WTO inconsistent measures effectively in place  even after the end of the reasonable period 
of time .  In simple terms, what the United States argu es in this case is that it can collect duties based 
on zeroing after the end of the reasonable period of time even if the original anti-dumping order has 
been revoked  because, absent zeroing, no dumping was found.  Likewise, the United States also 
claims that it can, after the end of the reasonable pe riod to comply, liquidate duties at rates that were 
significantly higher than those which should have been  collected absent zeroing.   In this respect, the 
measures challenged in the original dispute are s till in place since, until the United States stops taking 
positive acts to enforce them, their effects  persist even after the end of the reasonable period.  Once 
more, this cannot be the meaning of "prompt compliance" in Article 21 of the DSU .  Nor can it imply 
that the measures have been withdraw n, as required by Article 3.7 of the DSU .232  In addition, the 
European Communities notes that the United States also seeks to make the "date of entry" the 
backbone principle as regards compliance in anti-dumpi ng disputes.  In this respect, the US theory on 
compliance disregards its own system, where the "d ate of entry" is not determinative of final 
liability.233 
5.93 Therefore, the European Communities considers th at, in light of the characteristics of the US 
system, the anti-dumping liability – whether or not it is "created" at the time of importation – is not finally determined at that time, but only at a la ter stage.  In these circ umstances, the European 
                                                     
 
225 EC Second Written Submission, Executive Summary, para. 33. 
226 EC Second Written Submission, Executive Summary, para. 25. 
227 EC Opening Statement, Ex ecutive Summary, para. 10. 
228 EC Second Written Submission, Executive Summary, para. 25. 
229 EC Second Written Submission, Executive Summary, para. 33. 
230 EC Second Written Submission, Executive Summary, para. 25. 
231 EC Opening Statement, Ex ecutive Summary, para. 11. 
232 EC Opening Statement, Ex ecutive Summary, para. 12. 
233 EC Opening Statement, Ex ecutive Summary, para. 13. WT/DS294/RW  
Page 42  
 
 Communities cannot understand why the United States would not, in that simple accounting exercise , 
adjust its calculations so as to properly reflect the degree of dumping ( i.e., without zeroing) that 
occurred (if any), having a full opportunity to do so  (in subsequent reviews of the measures concerned 
or in the appeals and protests filed by importers against them), and at least  with effect from the end of 
the reasonable period of time.  Simply put, in the EC 's view, the US efforts to find arguments to keep 
its measures in place even after the end of the r easonable period should be confronted by a clear 
ruling from this Panel.
234 
5.94 The European Communities considers that, in or der for the United States to comply with the 
DSB's recommendations and rulings, immediately  after the end of the reasonable period of time the 
United States should have refrained from taking positiv e acts providing for the final payment of duties 
or retention of cash deposits based on zeroing with  respect to those entries not finally liquidated 
before the end of the reasonable period, regard less of when those imports where made.  The 
European Communities asserts that this approach  does not imply a retrospective relief, as the 
United States argues235 and that it does not argue that the WTO dispute settlement system provides for 
retrospective relief.  The European Communities cons iders that it has clarified in its First Written 
Submission that it asks for prospective implementation of the DSB's recommendations after the end of 
the reasonable period.236  In addition, the European Communities notes that it is possible for the 
United States to take positive steps after the end of the reasonable period to comply with the DSB's 
recommendations and rulings in respect of entri es which were made before then, without this 
involving any retrospective relief.  In fact, the European Communities observes that, according to the 
United States, Section 129(c)(1) permits the USDOC to apply new, WTO-consistent methodologies to 
entries made before  the date of implementation of  a Section 129 Determination.237  Therefore, the 
European Communities considers that the Un ited States would comply with the DSB's 
recommendations and findings in a prospective manner in this case if it stops taking any positive acts 
providing for the final payment of duties or retentio n of cash deposits based on zeroing with respect to 
those entries not finally liquidated before the end of the reasonable period.  However, the 
European Communities contends that  this has not yet been the case.238 
5.95 The European Communities notes that the United States has also argued that the "date of 
entry" should be the reference for assessing compli ance in the case of anti-dumping measures.  In 
particular, it has emphasised that prospective and retrospective anti-dumping systems should lead to 
the same results when bringing WTO-incons istent measures into conformity with the Anti-Dumping 
Agreement .  The European Communities agrees.  Unde r both systems, WTO Members are prevented 
from taking positive acts that are contrary to the ad opted DSB reports after the end of the reasonable 
period of time.239 
5.96 Further, as a result of the 12 Section 129 Determ inations, (i) two origin al orders were revoked 
because of the new calculation of dumping margins wit hout zeroing; and (ii) ten original orders were 
partially revoked with respect to certain compan ies, whereas with respect to others, duties were 
reduced or increased as a result of  specific calculations of dumping margins without zeroing or the 
general application of ne w "all others" duty levels.240 The European Communities considers that any 
                                                      
234 EC Opening Statement, Ex ecutive Summary, para. 14. 
235 EC Second Written Submission, Executive Summa ry, para. 25.  See also, EC Second Written 
Submission, para. 28 "In the European Communities' view, in order to comply with the DSB's recommendations and rulings, the United States should stop taking any positive acts providing for the final payment of duties or 
retention of cash deposits based on zeroing with respect to those entries not finally liquidated before the end of 
the reasonable period." 
236 EC Second Written Submission, Executive Summary, para. 28. 
237 EC Second Written Submission, Executive Summary, para. 29. 
238 EC Second Written Submission, Executive Summary, para. 30. 
239 EC Closing Statement, Ex ecutive Summary, para. 8. 
240 EC First Written Submission,  Executive Summary, para. 12.  WT/DS294/RW 
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 future liquidation of entries subject to a revoked order (including those revoked because of reasons 
other than zeroing) or with respect to an exporter excluded from the scope of the relevant order would 
be illegal since, again, as mentioned in the prev ious section, this would amount to taking a positive 
act, already found to be WTO inconsistent, af ter the expiry of the implementation period.241 The 
European Communities argues that the United States seems to ignore the fact that, under its duty 
assessment system, the final liability of importers is  determined at a later stage than the time of 
importation.  Thus, any time after the end of th e reasonable period of time the United States could 
carry out a simply accounting exercise to establis h without zeroing the true and final liabilities to 
which entries are subject (if any).  Finally, even if the legal basis for collecting duties has been 
revoked, the United States has not stayed proceed ings to obtain final payment of those duties.242 
5.97 Finally, the European Communities submits, with respect to the 16 administrative reviews at 
issue in the original dispute, that the United Stat es considered that in each case the results were 
superseded by subsequent reviews and, thus, no fu rther action was necessary for the United States to 
bring the challenged measures into compliance with  the recommendations and rulings of the DSB.243 
5.98 The European Communities argues that in orde r for the 16 administrative reviews challenged 
in the original dispute to be "superseded", the United States should have stopped them (by not 
collecting duties calculated with "simple zeroing") and replaced them (by collecting the duties and 
establishing new cash deposits based on a methodol ogy without zeroing).  The United States has 
failed in both respects.244  Firstly, the European Communities not es that the United States still collects 
duties established in the administrative reviews cont ested in the original dispute.  Second, the 
European Communities argues that the United Stat es has failed to recalculate the dumping margins 
without zeroing in all the administrative reviews covered in the original dispute.  Finally, the fact that 
the United States has not recalculated the dumping ma rgins in the administrative reviews concerned 
also affects the extension of the original orde rs pursuant to sunset review investigations.245  
(b) United States 
5.99 The United States considers that it has implem ented the DSB's recommendations and rulings 
and thus, has complied with the its obligations under the DSU. The Panel should reject the EC's 
claims non-compliance and its efforts to en large the obligations of the United States.246  Turning to 
the 15 antidumping investigations, the United Stat es notes that by the time the DSB adopted its 
recommendations and rulings, Commerce had alread y revoked 3 of the antidumping orders resulting 
from those investigations.  With respect to the other 12 investigations where antidumping orders 
remained in place, Commerce conducted proceedi ngs under US domestic la w, called Section 129 
proceedings, to recalculate the margins of dumping.   The Section 129 determinations resulted in the 
revocation of two additional orders.  Later, Comme rce revoked 4 more orders as a result of sunset 
reviews.  Thus, with respect to the 15 determina tions made in investigations, 9 concern antidumping 
orders that are now revoked.  Thus, the United States submits that for all nine of the revoked 
antidumping duty orders, no antidumping duties will be  assessed on entries of the goods made after 
the effective date of the revocation.247 
5.100  Turning to the 16 administrative reviews, the United States notes that the purpose of such 
reviews is to determine the final assessment rate  on imports that occurred before the review 
                                                      
241 EC First Written Submission,  Executive Summary, para. 31. 
242 EC Second Written Submission, Executive Summary, para. 2. 
243 EC First Written Submission,  Executive Summary, para. 13. 
244 EC First Written Submission,  Executive Summary, para. 32. 
245 EC First Written Submission,  Executive Summary, para. 33. 
246 US First Written Submission,  Executive Summary, para. 3. 
247 US Opening Statement, Ex ecutive Summary, para. 5. WT/DS294/RW  
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 commenced, and to calculate a new cash deposit rate  that will be applicable to subject imports 
occurring after the determination is made.
248  What the United States considers is noteworthy for 
purposes of this proceeding is that the 16 administra tive reviews in question all involved entries that 
occurred prior to the adoption of the DSB recommendations  and rulings.  Noting that the EC 
concedes, that implementation of WTO obligations is prospective, the United States observes that 
nevertheless, according to the EC, the United Stat es was obligated to refund duties in respect of 
entries that were made prior to the adoption of th e recommendations and rulings.  In other words, in 
the US view, the EC attempts to argue that th e United States was effectively required to provide 
retroactive relief – i.e., refunds of duties collected on prior entries solely as a result of the WTO 
dispute.  However, in view of the principle of pros pective relief to which even the EC subscribes, the 
United States submits that it was under no obligation to do so.249 
5.101  The United States observes that in the underlying dispute, the EC obtained DSB 
recommendations and rulings with respect to Comme rce determinations in sixteen administrative 
reviews.  The United States has taken measures to comply with respect to each of those determinations, and as a result of those measure s, the United States has complied with those 
recommendations and rulings.
250  
5.102  The United States clarifies th at in some instances, the United States has revoked the 
antidumping duty order giving rise to the determinati ons challenged by the EC.  Under US law, the 
United States no longer has the authority to co llect cash deposits, or assess antidumping duties, on 
products subject to a revoked antidumping order which ar e imported on or after the date of revocation.  
This is the situation with respect to the four of th e sixteen determinations challenged by the EC.  With 
respect to the remaining reviews that the EC ch allenged, the cash deposit rate established in the 
challenged determination (the only aspect of the ad ministrative review that could – absent the US  
compliance – have continued beyond the expiration of th e RPT), is no longer in effect.  To the extent 
that a cash deposit rate is currently in effect with respect to these same  products from the same 
Member States of the EC, that is the result of a separate determination of dumping made in a separate 
administrative review examining distinct facts during a subsequent period of time.251 
5.103  Turning first to the antidumping duty orders revoke d, the United States notes that these orders 
form the basis under US law for the authority to impose antidumping duties.  That is, without an 
antidumping duty order in place, the United States cannot collect cash deposits and assess antidumping duties on imports made on or after the date of revocation.
252  The United States observes 
that, in its annex to its panel request, the EC acknowledges that the following antidumping orders 
have been revoked in whole or with respect to certa in companies identified in the EC's original panel 
request:   
(1) Industrial Nitrocellulose from France (revocation effective 1 August 2003) 
(2) Industrial Nitrocellulose from the United Ki ngdom (revocation effective 1 July 2003) 
(3) Certain Pasta from Italy (revoked for Ferrara  effective 9 February 2005, and for 
Pallante on 29 November 2005); and 
(4)  Stainless Steel Sheet and Strip in Coils from France (revocation effective 
27 July 2004).253 
 
                                                      
248 US Opening Statement, Ex ecutive Summary, para. 6. 
249 US Opening Statement, Ex ecutive Summary, para. 7. 
250 US First Written Submission, Executive Summary, para. 45. 
251 US First Written Submission, Executive Summary, para. 46. 
252 US First Written Submission, Executive Summary, para. 47. 
253 US First Written Submission, Executive Summary, para. 48.  WT/DS294/RW 
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 5.104  The United States observes, by way of example, with regard to Industrial Nitrocellulose from 
France, that it revoked the antidumping duty order effective 1 August 2003.  This means that the 
United States ceased collecting cash deposits on imports occurring on or after that date, and such imports incur no antidumping duty liability.  Therefore, as of the date of the EC's panel request in this 
Article 21.5 proceeding (and, in fact, as of the expiry of the reasonable period of time established in 
this dispute), no imports are affected by that an tidumping duty order, and the measure challenged by 
the EC in the underlying proceeding has been terminat ed.  The same is true with respect to the other 
antidumping duty orders that the United States has revoked.  The United States submits that the elimination of these orders has thus brought  the United States into compliance with the 
recommendations and rulings related to those orders.
254 
5.105  The United States maintains that it has im plemented the recommendations and rulings 
because each of the reviews has been superseded  by Commerce determinations in subsequent 
administrative reviews.  The chart attached as Exhibit US-17 specifies the subsequent Commerce 
determinations that have super seded each of the administrative reviews subject to the DSB's 
recommendations and rulings.  The determinations  in these subsequent reviews cover the same 
merchandise and the same exporters or producers id entified by the EC.  However, the subsequent 
reviews examined a wholly different set of sale s transactions occurring during a different period of 
time.  Given that in these subsequent determina tions, Commerce calculated new margins of dumping, 
and put in place new cash deposits for the companie s examined, as a result, the cash deposit rates that 
had been established in the determinations that th e EC originally challenged have been superceded, 
because cash deposit rates from a determination in one administrative remain in effect only until a 
determination in a subsequent administrative review establishes a new cash deposit rate – once 
Commerce issues a determination in a subseque nt administrative review involving the same 
merchandise and the same exporter or producer, the former cash deposit rate is terminated.255 
Consequently, as of the date of the EC's panel requ est in this Article 21.5 proceeding (and in fact, as 
of the expiry of the reasonable period of time establis hed in this dispute), no further entries are subject 
to antidumping rates established in the administ rative reviews that the EC challenged in the 
underlying proceeding.  Accordingly, because the ch allenged determinations, a nd in particular their 
cash deposit rates, have been superceded, the United States maintains that it has brought the 
challenged measures into compliance with  the DSB's recommendations and rulings.256 
5.106  In this connection, the United States notes that it is puzzled by the occasional references in the 
EC's first submission to "definitive assessment of du ties" and "collect[ion] of duties pursuant to 
liquidation instructions" after Apr il 9, 2007 (the end of the reasonable period of time established in 
this dispute).  While the point of these references is not at all clear, the United States assumes that the 
EC remains faithful to its long-held and of t-repeated position that, for purposes of assessing 
compliance with the rulings and recommendations of  the DSB relating to duties, one examines the 
treatment accorded to goods entered on or after the expiration of the reasonable period of time.  The 
EC took a similar view when it implemented the recommendations and rulings  of the DSB in the 
dispute EC – Customs Classification of Frozen Boneless Chicken Cuts.257 
5.107  The United States notes that this EC position fo llows logically from the fact that the WTO 
dispute settlement provides prospective relief, not re trospective relief.  For example, Article 19.1 of 
the DSU provides, "Where a panel or the Appellate Body concludes that a measure is inconsistent 
with a covered agreement, it shall recommend that  the Member concerned bring the measure into 
conformity with that agreement" (footnotes omitted).  The ordinary meaning of the term "bring" is to 
"[p]roduce as a consequence," or " cause to become."  These definitions  give an indication of future 
                                                      
254 US First Written Submission, Executive Summary, para. 49. 
255 US First Written Submission, Executive Summary, para. 50. 
256 US First Written Submission, Executive Summary, para. 51. 
257 US First Written Submission, Executive Summary, para. 52. WT/DS294/RW  
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 action.  Furthermore, under DSU Article 3.7, "the first objective of the dispute settlement mechanism 
is usually to secure the withdrawal of the measure s concerned if these are found to be inconsistent 
with the provisions of any of the covered agreements ."  The withdrawal of the inconsistent measure is 
meant to provide a prospective solution to the nulli fication or impairment of the benefits accruing 
under the covered agreements, and not to provide compensation for any past harm.
258 
5.108  Furthermore, the United States observes that in  a WTO dispute challenging an antidumping or 
countervailing duty measure, the measure in question is  a border measure.  Accordingly, eliminating a 
WTO-inconsistent antidumping or  countervailing duty measure prospectively at the border will 
constitute "withdrawal" of the measure within the m eaning of DSU Article 3.7.  And in this case, by 
superceding the administrative reviews at issue in  the underlying proceeding, the United States has 
withdrawn the challenged measures.259 
5.109  The United States notes that in its First Written Submission, the EC raised two arguments 
concerning the determination in the investigati on of Certain Hot-Rolled Carbon Steel Products from 
the Netherlands.  First, the EC argued that the United States has assessed antidumping duties pursuant 
to determinations made in subsequent administ rative reviews, where Commerce continued to deny 
offsets for non-dumped sales.  Second, the EC contends that as a result of a rescission of an 
administrative review, the United States assessed antidumping duties at the cash deposit rate established in the original investigation.
260 The United States clarifies in this connection that these 
final assessments are the result of determinations distinct from the determination made in the investigation.  With respect to the EC's first ar gument, those assessment instructions were issued 
pursuant to the determination made in the 2004-05 ad ministrative review.  With respect to the EC's 
second argument, those assessment instructions were issued pursuant to the determination (in that 
case to terminate) the 2005-06 administrative review.
261  The United States argues that neither of these 
two subsequent determinations are within the scope of  this Article 21.5 proceeding.  The EC's original 
panel request identified only Commerce's determin ation in the investigation of Certain Hot-Rolled 
Carbon Steel Products from the Netherlands.  Simila rly, the original panel's "as applied" findings 
covered only Commerce's determina tion from the investigation.  Thus, the United States maintains 
that the Panel should reject the EC's claims as beyond the scope of this Article 21.5 dispute.262 
5.110  Turning to Commerce's Section 129 determinati on concerning the investigation of Stainless 
Steel Wire Rod from Sweden, the United States points out that Commerce complied with the recommendations and rulings of the DSB by prov iding offsets for non- dumped sales in the 
recalculation of the margin of dumping.  As a re sult of the Section 129 determination, Commerce 
revoked the antidumping duty order on Stainless Steel Wire Rod from Sweden effective 
23 April 2007.
263  The United States argues that the EC c ontention that that the United States has 
established new cash deposit rates in Stainless  Steel Wire Rod from Sweden based on an 
administrative review that Commerce published af ter concluding the Section 129 determination, 
however, is in error.264  Commerce did publish the amended final results of the 2004-05 
administrative review of Stainless Steel Wire R od from Sweden on 9 May 2007.  According to the 
United States, in those amended final results, Co mmerce did state that it would notify CBP of the 
revised cash deposit resulting from the review, that th e cash deposit rate would be effective as of the 
date of publication, and that "the cash deposit require ment shall remain in effect until further notice."  
However, on 10 May 2007, Commerce provided "further notice" by issuing instructions to CBP 
                                                      
258 US First Written Submission, Executive Summary, para. 53. 
259 US First Written Submission, Executive Summary, para. 54. 
260 US First Written Submission, Executive Summary, para. 35. 
261 US First Written Submission, Executive Summary, para. 36. 
262 US First Written Submission, Executive Summary, para. 37. 
263 US First Written Submission, Executive Summary, para. 38. 
264 US First Written Submission, Executive Summary, para. 39.  WT/DS294/RW 
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 informing it of the revocation resulting from the Section 129 determination.  These instructions 
informed CBP that any cash deposits paid on imports of wire rod from Sweden made on or after 23 April 2007, were to be refunded.   All imports made on or after 23 April 2007, would not be subject 
to the final assessment of antidumping duties.
265  The United States submits that as a result of the 
revocation of the antidumping duty order on stainl ess steel wire rod from Sweden, Commerce did not 
issue new cash deposit instructions to CBP b ased on the determination made in the 2004-05 
administrative review.  Accordingly, the United Stat es requests that this Panel reject the EC's claim 
regarding the Section 129 determination in Stai nless Steel Wire Rod from Sweden because Commerce 
provided offsets for non-dumped sales in the recalculation of the margin of dumping and that measure is no longer in effect.  
266 
5.111  The United States observes that when the DS B's recommendations and rulings concern a 
border measure, such as an antidumping duty, impl ementation occurs when the Member removes the 
border measure.  Thus, the United States complied with the DSB's recommendations and rulings in 
two ways.  First, with respect to some of the antidumping measures challenged by the EC, the 
United States revoked the antidumping duty orders , thereby removing the antidumping duty liability 
for entries occurring on or after the date of revoca tion.  Second, the United States removed the border 
measure, the cash deposit rate, with respect to  entries occurring on or after the date of 
implementation.267  The United States notes that the text of GATT 1994 and the Anti-Dumping 
Agreement  confirms that it is the legal regime in exis tence at the time that an import enters the 
Member's territory that determines whether th e import is liable for the payment of antidumping 
duties.268 
5.112  The interpretive note to GATT Article VI clarifies that, notwithstanding that duties are 
generally levied at the time of importation, Members may instead require a cash deposit or other security, in lieu of the duty, pendi ng final determination of the releva nt information.  Thus, the cash 
deposit serves as a place-holder for the liability which is incurred at the time of entry.  Consistent with 
the interpretive note, final assessment in the US system  occurs after the date of importation.  Indeed, a 
Commerce determination in an administrative revi ew normally covers impor tations of the subject 
merchandise during the 12 months prior to the month in which the review is initiated.
269  S e v e r a l  
provisions of the Anti-Dumping Agreement  further demonstrate that determining whether relief is 
"prospective" or "retroactive" can only be determin ed by reference to date of entry.  Thus, by 
implementing the DSB's recommendations and ruli ngs regarding its antidumping measures with 
respect to entries made on or after the date of implementation, the United States has complied with 
those recommendations and rulings.  The United States has acted consistently with the principle of 
prospective implementation, as unders tood in the antidumping duty context.270 
5.113  This result is consistent with the effect th at a finding of inconsistency would have on an 
antidumping measure in a prospective antidumping syst em.  Under such systems, the Member collects 
the amount of antidumping duties at the time of importation.  If an antidumping measure is found to 
be inconsistent with the Anti-Dumping Agreement , the Member's obligation is merely to modify the 
measure as it applies at the border to imports occurring on or after the date of importation [sic].  That 
is, the Member changes the amount of antidumping duties to be collected on importations occurring after the end of the reasonable period of time.  The Member need not remedy the effects of the measure on imports that occurred prior to the date of implementation.  That is, the Member is under 
                                                     
 
265 US First Written Submission, Executive Summary, para. 40. 
266 US First Written Submission, Executive Summary, para. 41. 
267 US Second Written Submission, Executive Summary, para. 27. 
268 US Second Written Submission, Executive Summary, para. 28. 
269 US Second Written Submission, Executive Summary, para. 29. 
270 US Second Written Submission, Executive Summary, para. 30. WT/DS294/RW  
Page 48  
 
 no obligation to refund any antidumping duties assessed  on importations occurring prior to the end of 
the reasonable period of time.
271 
5.114  The EC argues that prospective implementati on of the DSB's recommendations and rulings 
with respect to US administrative reviews would make the US system of duty collection "untouchable " and a "moving target."  In this regard, the US system is no different from a prospective 
antidumping system – the EC's system.  An "as applied" challenge to the allegedly improper 
collection of antidumping duties in a prospective sy stem would necessarily come after the duties have 
been collected.  By that time, the complaining Member could not recover the duties collected.  
Moreover, if the allegedly incons istent collection continues during the pendency of the dispute, the 
complaining Member will be required to initiate further disputes in order to address the situation 
pursuant to the WTO dispute settlement system.  This  is the system to which the Members agreed, and 
it applies to all Members equally.  This Panel should reject the attempts of th e EC to gain a greater 
degree of relief from this system than that the Members provided for.
272 
5.115  Finally, the United States notes that there is a fundamental problem with the EC's arguments 
in this dispute.  In paragraph 72 of its Rebutta l Submission the EC argues, "Therefore, even if the 
products at the time of importation are potentially liable for anti-dumping duties, the US system of 
duty assessment implies that such a responsibility only materializes when the amount of the duties due 
for a particular period is determined pursuant to ad ministrative review proceedings."  If it were true 
that liability for antidumping duties only arose after the completion of an administrative review, this would mean that there would be no "final action" as required by Article 17.4 of the Anti-Dumping 
Agreement  for the EC to challenge whenever Commerce issued a determination in an antidumping 
investigation.  Rather, the EC could only challe nge a Commerce antidumping duty determination after 
such a determination was made in an administrative review.
273 
5.116  The United States notes that the EC agreed in  its written submissions that WTO relief is 
prospective.  In its submissions, the EC took pain s to describe the US duty assessment system and the 
fact that "final" liability attaches at a point later in time than entry.  Thus, it is the EC that emphasized 
the relevance of a retrospective system to the issues in this dispute.  The United States argues that it 
responded by pointing out that "final" liability is not germane to the question of when a Member's 
duty to provide relief is triggered.  The United States pointed out that the date of entry of the good is 
the only date upon which to evaluate whether relie f is due.  To conclude otherwise would be to 
discriminate against Members like the United St ates for having a retrospective duty assessment 
system, one expressly provided for under Article 9.3.1 of the Antidumping Agreement.  As the 
United States explained, and as the original panel f ound, in a retrospective system, liability attaches at 
the time of entry, but final liability attaches at a later date.  By contrast, in a prospective system, final liability is determined at the time of entry.  This  is precisely the distinction the EC emphasized when, 
as recently as its rebuttal submission, it referred to the "particularities of the US system of duty assessment."
274  If final liability is the relevant point for assessing whether relief must be provided, 
then Members with prospective systems will have no implementation obligations in respect of entries 
made prior to the expiry of the reasonable period of time, but Members with retrospective systems 
will have such obligations in the event that final liability is calculated after the expiry of the RPT.275 
5.117  Notably, the EC seems to be abandoning its th eory that the determination of final liability 
after importation is "particular" to retrospective system s, implying that it is equally applicable to 
prospective systems.  Perhaps this new theory re flects acknowledgment of the fact that, otherwise, 
                                                      
271 US Second Written Submission, Executive Summary, para. 31. 
272 US Second Written Submission, Executive Summary, para. 32. 
273 US Second Written Submission, Executive Summary, para. 33. 
274 See EC Second Written Submission, para. 69. 
275 US Closing Statement, Ex ecutive Summary, para. 2.  WT/DS294/RW 
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 using final liability as the basis for establishing im plementation obligations would put retrospective 
systems at a disadvantage.  However, the EC's sudde n change of position is not supported by the text 
of Articles 9.3.1 and 9.3.2, its written submissions276, or the panel report277, all of which make clear 
that calculation of "final liability" after importation is a facet "particular" (to borrow the EC's term) to 
the US retrospective system.278 
5.118  In addition, the EC argued that the Ikea case is an example of how the EC provides 
retrospective relief.  Ikea does not stand for the proposition that  the EC provides retrospective relief in 
connection with its implementation of recommendations and rulings.  In the Ikea case, the European 
Court of Justice expressly rejected  the notion of refunding the duties on that basis.279  Instead, the 
Court found that zeroing was inconsistent with para graph 2(11) of the EC's basic regulation and was 
"a manifest error of assessment with regard to Community law."280   On that basis – that zeroing was 
inconsistent with the EC's ow n regulations, rather than the Antidumping Agreement – the Court 
ordered repayment of duties.281  Thus, the EC may in some circumstances provide refunds under its 
municipal law; but that does not mean that there is any WTO obligation to do so.282 
5.119  The United States observes that it has great trouble reconciling the EC's current litigation 
position – that entries made before the end of the reasonable period of time are subject to refunds – 
with:  (1) EC statements to the contrary, as cited in  the US first submission at  paragraph 100, in which 
the EC makes clear that it will not provide reimburse ments for prior entries; (2) the very nature of 
"prospective relief"; and (3) the EC's emphasis on the f act that "final liability" attaches at a later point 
in time in a retrospective system.283  If the United States accepts the th eory proffered by the EC at the 
panel meeting – that refunds must be given on imports dating back to some undetermined date 
preceding the expiry of the RPT – the question of "final" liability particular to a retrospective 
assessment system would be irrelevant.284 
5.120  Turning to the EC's claims regarding the dete rmination in the investigation of Certain Hot-
Rolled Carbon Steel Products from the Netherlands, th e United States asserts that it has complied with 
the recommendations and rulings of the DSB by providing offsets for non-dumped sales when it 
recalculated the margin of dumping in the Section 129 determination.  As a result of the Section 129 
determination, the antidumping duty order was revoked effective 23 April 2007.  Moreover, as a 
result of a subsequent Commerce determination in a sunset review, the revocation of the antidumping 
duty order became effective as of November 29, 2006.  All cash deposits made on imports occurring 
on or after 29 November 2006 have been or will be re funded.  Additionally, imports made on or after 
29 November 2006 are not subject to any final assessment of antidumping duties.  Thus, the 
United States submits that the EC's claims c oncern a measure that is no longer in effect.285 
                                                      
276 See EC Second Written Submission, paras. 69-76. 
277 Panel Report, US – Zeroing (EC),  para. 2.4. 
278 US Closing Statement, Ex ecutive Summary, para. 3. 
279 See Paragraphs 35, 67, and 69 (Exhibit US-34). 
280 Paragraph 56 (Exhibit US-34). 
281 Paragraph 69 (Exhibit US-34). 
282 US Closing Statement, Ex ecutive Summary, para. 4. 
283 See, e.g. , EC Second Written Submission, paras. 69-76. 
284 US Closing Statement, Ex ecutive Summary, para. 5. 
285 US First Written Submission, Executive Summary, para. 34. WT/DS294/RW  
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 3. Whether the United States failed to put into effect new measures between 9 April and 
23 April/31 August 2007 
(a) European Communities 
5.121  The EC submits that it is not contested that th e United States was late in its implementation.  
The European Communities seeks findings from the Pane l also on this point.  The EC notes that the 
Appellate Body has made clear that it is for the co mplaining Member to judge whether or not dispute 
settlement may be fruitful.  In this case, the Eu ropean Communities observes that it remains of the 
view that the findings it seeks may have au tonomous consequences in US municipal law.
286 
5.122  The European Communities notes that the measure s adopted by the United States to comply 
with the DSB's recommendations and rulings  concerning the "as applied" violations, i.e., the Section 
129 Determinations, entered into force on 23 April and 31 August 2007.  However, the parties had 
agreed on a reasonable period of time which ended on 9 April 2007.  This allows the United States to 
still collect duties which refer to a period of time where compliance should have been achieved.287 
5.123  Article 21 of the DSU requires WTO Memb ers to comply immediately with the 
recommendations of an adopted DSB report.  In particular, Article 21.1 of the DSU states that 
"[p]rompt compliance  with the recommendations and rulings of the DSB is essential in order to 
ensure effective resolution of disputes to the benefit of all Members" ( emphasis added ).  Article 21.3 
of the DSU also highlights that "[i]f it is impracticable to comply immediately  with the 
recommendations and rulings, the Member concerned shall have a reasonable period of time in which 
to do so" ( emphasis added ).  In this respect, WTO Members must bring their measures found 
inconsistent with their obligations immediately  after the date of adoption of the DSB report or, should 
a reasonable period be agreed between the parties to the dispute, at the end of such a period at the 
latest .288 
5.124  Since the United States manifestly failed to do so with respect to the "as applied" violations 
found in the original dispute, the European Comm unities considers that the United States violated 
Articles 21.3 and 21.3(b) of the DSU when failin g to adopt new measures between 9 April and 
23 April/31August 2007.289 
5.125  The European Communities requests this Panel to make an explicit finding that no measure 
taken to comply existed at all during the mentioned period of time.  This is different from a finding on 
the existence or consistency with a covered agreemen t of measures taken to comply "at the end of the 
reasonable period of time" in addition to a finding on  the existence of a measure taken to comply "as 
of the date of the establishment of a panel".  In other words, the European  Communities is not asking 
the Panel to rule on the existence of measures taken to comply "at the end of the reasonable period of 
time", i.e., on 9 April 2007.  In contrast, the European Co mmunities wants the Panel to declare that no 
measure taken to comply existed between 9 Apr il 2007 and 23 April/31 August 2007.  A similar 
finding of non-compliance in past periods was made by the panel in Australia – Salmon (21.5) .290 
5.126  The European Communities notes that the Unite d States opposes the request for a specific 
finding by the European Communities that, since the United States did not take new measures 
between 9 April 2007 ( i.e., the end of the reasonable period) and 23 April/31 Augus t 2007 (when all 
the Section 129 Determinations were  completed and entered into force), it failed to comply with the 
                                                      
286 EC First Written Submission, Executive Summary, para. 4. 
287 EC First Written Submission,  Executive Summary, para. 34. 
288 EC First Written Submission,  Executive Summary, para. 35. 
289 EC First Written Submission,  Executive Summary, para. 36. 
290 EC First Written Submission,  Executive Summary, para. 37.  WT/DS294/RW 
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 DSB's recommendations and ruling in a timely manner and, thus, violated Articles 21.3 and 21.3(b) of 
the DSU .  In particular, it argues that Articles 21.3 and 21.3(b) of the DSU  do not impose obligations 
on Members.291  The European Communities argues that a careful reading of Article 21 of the DSU  
implies that WTO Members must bring their meas ures found inconsistent with their obligations 
immediately after the date of adoption of the DS B report or, should a reasonable period be agreed 
between the parties to the dispute, at the end of such a period at the latest .292  T h e  
European Communities considers that unlike in US – Upland Cotton (21.5) , in this case the 
European Communities is not asking the Panel to ru le on the existence of measures taken to comply 
"at the end of the reasonable period of time", i.e., on 9 April 2007.  In contrast, the 
European Communities wants the Panel to declare th at no measure taken to comply existed between 
9 April 2007 and 23 April/31 August 2007.  The EC's re quest is similar to the one made by Canada in 
Australia – Salmon (21.5) , which was granted by the panel.293 
5.127  Finally, the European Communities argues that  the United States seems to agree with its 
observation that the Panel should refrain from entering in to the analysis of the effects of its report in 
the US municipal law jurisdiction.  The European  Communities considers that the Panel is called 
upon to interpret Article 21.3 of the DSU  and infer the necessary consequences from the facts of this 
case.294  
5.128  The European Communities argues th at it has shown that the United States failed to take new 
measures to comply with the DSB's recommendations and rulings in the original dispute before the 
end of the reasonable period of time ( i.e., 9 April 2007) and the United States has not contested that 
imports subject to anti-dumping duties in the or iginal proceeding made between 9 April 2007 and 
23 April/31 August 2007 must pay duties based on zeroing.  The European Communities asks a 
specific finding from this Panel on this issu e, again, showing that this cannot be immediate 
compliance .295  The European Communities considers that, by failing to put into effect the measures 
taken to comply between 9 April and 23 April/31 August 2007, the United States violated Articles 21.3 and 21.3(b) of the DSU , and failed to comply with the DSB's recommendations and 
rulings.
296 In light of the foregoing, the European Comm unities submits that the United States has not 
complied with the DSB's recommendations in the orig inal proceeding and, thus, remains in violation 
of Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement and Article VI:2 of the GATT 1994, since it 
continues collecting anti-dumping duties and est ablishing new cash deposit rates based on zeroing 
with respect to the original investigations and administrative reviews as described in the original 
dispute.297 
5.129  In conclusion, the European Communities request s the Panel to make an explicit finding on 
this matter since there are entries which have not yet been liquidated by the United States.  Such a 
finding may lead the relevant authorities to stop pr oceedings for collection of duties and, thus, is of 
relevance to the effective resolution of the present dispute.298  In light of the foregoing, the European 
Communities considers that the United States has faile d to show that it has complied with the DSB's 
recommendations and ruling in the original dispute.299 
                                                      
291 EC Second Written Submission, Executive Summary, para. 35. 
292 EC Second Written Submission, Executive Summary, para. 36. 
293 EC Second Written Submission, Executive Summary, para. 37. 
294 EC Second Written Submission, Executive Summary, para. 38. 
295 EC Closing Statement, Ex ecutive Summary, para. 9. 
296 EC Opening Statement, Ex ecutive Summary, para. 15. 
297 EC Second Written Submission, Executive Summary, para. 34. 
298 EC Second Written Submission, Executive Summary, para. 39. 
299 EC Second Written Submission, Executive Summary, para. 40. WT/DS294/RW  
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 (b) United States 
5.130  The United States understands the EC to claim that the United States breached Article 21.3 
and Article 21.3(a) by implementing its measures ta ken to comply on April 23, 2007, two weeks after 
the conclusion of the reasonable period of time.  However the United States argues, the EC fails to explain how US implementation of the recommendati ons and rulings of the DSB constituted a breach 
of Article 21.3 or Article 21.3(a).
300  The United States argues that contrary to the EC's assertion, the 
report in Australia – Salmon  does not support the EC's position.  Th at panel simply concluded that the 
measures taken to comply did not exist at the end of the reasonable period of time.  The panel made 
no finding that Australia had breached Article 21.3, or any of its subparagraphs, as a result.  By 
contrast, the United States does find support for the futility of such a finding in the report in US – 
Upland Cotton (21.5) .  There, the panel explained that a finding of a breach of Article 21.3 would "be 
of little relevance to the effective resolution of disputes."301 
5.131  In light of the above, the United States submits that this Panel should decline to make the 
suggestion requested by the EC.  It observes in th is context that a Member retains the right to 
determine the manner of implementing DSB recomme ndations and rulings.  The question in this 
proceeding is the existence or consistency of the me asure taken to comply, not what future actions the 
United States should take to ensure compliance.302 
5.132  The United States reiterates that there is no te xtual basis for the EC's claim of a breach of 
Article 21.3.  The EC has continued to fail to explai n the textual basis for its claim.  The EC asserts 
that Article 21.3 "requires WTO Members to co mply immediately with the recommendations of 
adopted DSB reports."  Article 21.3 does no such thing.  Indeed, Article 21.3 acknowledges that 
immediate compliance may be impracticable and t hus confers a right on the responding Member to a 
reasonable period of time.303  The United States observes that the EC's reliance on Australia – Salmon 
(21.5) is of no help in this regard.  The panel in that dispute did not find a breach of Article 21.3, 
which is what the EC is requesting here.  In that context, the EC's attempt to distinguish US – Cotton 
Subsidies (Article 21.5) (Panel)  is unavailing.  The panel in that dispute squarely rejected the claim 
the EC is advancing here:  a breach of Article 21.3.304 
D. VIOLATIONS WITH RESPECT  TO SPECIFIC MEASURES (SECTION 129 DETERMINATIONS ) 
1. Whether there has been a violation in respect of case 11 – Stainless Steel Sheet and Strip 
in Coils from Italy 
(a) European Communities 
5.133  The European Communities considers that the "measures taken to comply" by the 
United States in this case ( i.e., the Section 129 Determinations relati ng to the original investigations 
challenged in the previous Panel proceedings) are inconsistent with its WTO obligations.305  T h e  
European Communities submits that the Section 129 Determinations adopted by the United States to 
bring its measures into conformity violated certain provisions of the Anti-Dumping Agreement and the 
GATT 1994 .  In this respect, the European Commun ities notes that the scope of Article 21.5 
proceedings allows for new legal claims against "measures taken to comply".  The Appellate Body 
has already clarified that panels are to review the "totality" of claims relating to the consistency of 
                                                      
300 US First Written Submission, Executive Summary, para. 55. 
301 US First Written Submission, Executive Summary, para. 56. 
302 US First Written Submission, Executive Summary, para. 57. 
303 US Second Written Submission, Executive Summary, para. 54. 
304 US Second Written Submission, Executive Summary, para. 55. 
305 EC First Written Submission, Executive Summary, para. 5.  WT/DS294/RW 
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 "measures taken to comply" with the covered agr eements (continuing violations, new violations and 
consequential violations of the covered agreements).  Thus, a co mpliance panel is not limited to 
examining the consistency of the "measures taken to comply" with the original DSB's rulings and 
recommendations.  The task of a compliance panel is rather to examine the consistency of the 
measures with "the covered agreements".306 
5.134  The European Communities submits that the United States committed, and then failed to 
remove, an obvious calculation error when adopting a Section 129 Determination in Stainless Steel 
Sheet and Strip in Coils from Italy , listed in the Annex to the Panel Request as Case 11.307 
5.135  The Section 129 Determination covered one manuf acturer/exporter of stainless steel sheet and 
strips in coil from Italy, ThyssenKrupp Acciai  Speciali Terni S.p.A and ThyssenKrupp AST USA 
(collectively "TKAST").  Errors were made in the dumping margin calculation by the USDOC in the 
original less-than-fair value (LTFV) investigation.  In particular, the USDOC incorrectly calculated 
the average unit value of 84 TKAST US sales.  Th e USDOC applied a "facts available" rate to these 
84 unreported US sales.  The USDOC, in its calculati on, erroneously inverted the fraction:  instead of 
dividing total value by total volume, it divided tota l volume by total value.  This error artificially 
inflated the unit value and, therefore, the amount of dumping found.  Despite realising this obvious 
error, the United States failed to correct it.308 
5.136  The European Communities notes that if, in add ition to eliminating zeroing, the United States 
had corrected this obvious calculation error, the dum ping margin would have be en negative and, thus, 
the measure would have been revoked.  Thus, as re gards this obvious calculation error, the European 
Communities submits that the United States violated Ar ticles 2, 5.8, 6.8, 9.3, 11.1 and 11.2 of the 
Anti-Dumping Agreement and Article VI:2 of the GATT 1994 .309 
5.137  The European Communities notes the argument made by the United States that the EC's claim 
that the USDOC made an error in the calculation of  the unit value and then failed to have it removed 
pursuant to the Section 129 Determination at hand is beyond the scope of this proceeding, since that 
clerical error is not part of the measure taken to  comply with the DSB's recommendations and rulings 
in the original dispute.  It also notes that th e United States also maintains that the European 
Communities has not made a prima facie  case since the EC's claims are based on unsupported 
assertions.  Finally, the EC observes that the Unite d States notes that the failure by the USDOC to 
disregard the allegations of error made by the respondents in that Sec tion 129 Determination is 
consistent with an investigating authority's right  to the orderly conduct of its proceedings.  The 
European Communities submits that these arguments should be rejected.310 
5.138  The European Communities is of the view that  the Section 129 Determinations are "measures 
taken to comply".  The United States agrees with th is.  The European Communities also notes that the 
scope of Article 21.5 proceedings allows for new legal claims against "measures taken to comply" 
and, thus, panels are to review the "totality" of cl aims relating to the consistency of "measures taken 
to comply" with the covered agreements (continui ng violations, new violat ions and consequential 
violations of the covered agreemen ts).  Consequently, since the exis tence of the calculation error has 
not been contested by the United States, and remains in the "measure taken to comply" ( i.e., the 
Section 129 Determination concerning stainless steel sh eet and strip in coils from Italy), it is part of 
that measure and, thus, may be subject to claims within this Article 21.5 proceeding.  Indeed, when the USDOC recalculated the non-zeroed anti-du mping duty for TKAST in the Section 129 
                                                     
 
306 EC First Written Submission,  Executive Summary, para. 38. 
307 EC First Written Submission,  Executive Summary, para. 39. 
308 EC First Written Submission,  Executive Summary, para. 40. 
309 EC First Written Submission,  Executive Summary, para. 41. 
310 EC Second Written Submission, Executive Summary, para. 41. WT/DS294/RW  
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 proceeding, it repeated exactly th e same calculation error (the inversion of the fraction) that it had 
made in the original investigation.  Without this  error, the dumping margin for TKAST would have 
been negative.  Therefore, the calculation error in question was actually committed in the Section 129 
proceeding, while makes it even clearer that it is part of the "measure taken to comply".
311 
5.139  The European Communities argues that even assuming arguendo  the US argument that the 
calculation error is not part of the "measure take  to comply", the European Communities considers 
that it would still fall under the scope of th is proceeding.  Indeed, measures having a close nexus  with 
the "measure taken to comply" can also fall with in the scope of Article 21.5 proceedings.  The 
European Communities observes that the arithmetical error in questi on artificially inflated the unit 
value and, therefore, affected the amount of dumpi ng found by the USDOC.  In this respect, the error 
it is part of the calculation exercise carried out by the USDOC when determining the new amount of 
dumping in the Section 129 Determination.  The United States could not recalculate the correct 
dumping margin without zeroing and bring the measure in to compliance if there ar e basic errors in the 
data used for this purpose.312  Consequently, the European Comm unities maintains that EC's claim 
that the USDOC made an error in the calculation of  the unit value and then failed to have it removed 
pursuant to the Section 129 Determin ation at hand falls within the scope of this proceeding.  The 
calculation error is part of the new dumping determination, i.e., the measure taken to comply by the 
United States in this case.313  On the basis of the above, the European Communities considers that it 
has sufficiently made a prima facie  case that the failure by the United States to correct the arithmetical 
error pursuant to the Section 129 De termination at hand violates the Anti-Dumping Agreement .314 
5.140  In addition, the European Communities rejects the argument of the United States that, in the 
Section 129 Determination at hand, the USDOC rejected all claims of errors by all interested parties 
on the basis of the need for finality of proceedings and for equitable treatment of all parties.  The 
European Communities submits that the USDOC, in this particular case, should have taken into 
account all claims of errors and, in fact, had enough time to do so.315 It notes that, as the United States 
confirmed, the Section 129 Determinatio n concerning this case was delayed for four months  precisely 
because the USDOC was examining the claims brought  by interested parties.  The European 
Communities explains that the USDOC decided to do so even if the scope of the Section 129 
Determination was, allegedly, "limited to recalculate the margins of dumping by applying a methodology without zeroing".  However, at the end of the proceeding, the USDOC decided to reject 
all claims.  Thus, contrary to what the United St ates asserts, the examination of the claims concerning 
errors made by the USDOC in the calculation of the new margin of dumping was part of the 
Section 129 proceeding.  Moreover, the European Communities notes that the USDOC has taken into 
account (and corrected) other errors in Section 129 proceedings.  Finally, the European Communities 
submits that the USDOC could not have remained passive and refuse to correct its own mistake.  
Otherwise, this would imply that clerical erro rs made by the investigating authorities remain 
untouchable  for interested parties.
316 In light of the above, the European Communities submits that the 
Panel should reject the arguments raised by the Un ited States with respect to Case 11 relating to the 
arithmetical error.317 
5.141  The European Communities notes that the United St ates has made several arguments to try to 
justify the fact that, thanks to an arithmetical error, anti-dumping duties have remained in place as a 
result of its Section 129 Determination in Stainless Steel Sheet and Strip in Coils from Italy .  
                                                      
311 EC Second Written Submission, Executive Summary, para. 42. 
312 EC Second Written Submission, Executive Summary, para. 43. 
313 EC Second Written Submission, Executive Summary, para. 44. 
314 EC Second Written Submission, Executive Summary, para. 45. 
315 EC Second Written Submission, Executive Summary, para. 46. 
316 EC Second Written Submission, Executive Summary, para. 47. 
317 EC Second Written Submission, Executive Summary, para. 48.  WT/DS294/RW 
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 However, in the EC's view, this Panel should reject  those unfounded arguments in order to avoid the 
abusive application of the Anti-Dumping Agreement  by the United States and provide compliance 
proceedings with effectiveness.318 
5.142  In particular, the European Communities notes that  the calculation error is part of the measure 
taken to comply and, thus, may be subject to claims within this Article 21.5 proceeding.  The fact that 
the USDOC decided, at the last moment, to disregard the claim on the clerical error and stated so in 
its decision , shows that the error (and particularly the d ecision to fail to correct it) was part of the 
measure taken to comply.  Further, the European  Communities observes that there is an important 
difference between EC – Bed Linen (21.5)  and the case at hand.  In the present case, the clerical error 
affecting the calculation of the normal value is on e of the elements included in the set of data 
necessary to recalculate the correct amount of dumpi ng.  In other words, both the error and the 
zeroing methodology affect the calculation of the dumping margin, which the United States had to "bring into conformity with its obligations".  Th erefore, it is not possibl e to separate in the re-
determination made by the USDOC pursuant to th e Section 129 proceeding one of the elements ( i.e., 
the normal value) from the rest of the calculation of the dumping margin.
319  Moreover, the European 
Communities has sufficiently made a prima facie  case that the failure by the United States to correct 
the arithmetical error pursuant to the Sec tion 129 Determination at hand violates the Anti-Dumping 
Agreement .320 
5.143  Finally, the European Communities considers th at the United States cannot maintain its anti-
dumping duties in force, once it has been alerted repeat edly by the interested parties in the context of 
the Section 129 Determination, since it is evident that, without the arithmetical error, there is no 
dumping.  Therefore, the United States is ignoring the basic principle that anti-dumping duties can 
only be levied in order to offset dumping .321  In sum, the European Communities maintains that the 
Panel should reject the arguments raised by the Un ited States with respect to Case 11 relating to the 
arithmetical error.322 
(b) United States 
5.144  In respect of the EC's claims that in the original  investigation of stainless steel sheet and strip 
in coils ("SSSS") from Italy, Commerce made a calc ulation error, the United States contends that 
these claims are made for the first time in this compliance proceeding.  Although the EC could have 
made these claims in the original dispute, it did not.  Therefore, the United States submits that the 
EC's claims are beyond the terms of reference of this proceeding.323  In addition, the United States 
argues that the EC has failed to make a prima facie  case with respect to the claims asserted.324 
Moreover, according to the United States, Commerc e's decision not to consider the respondent's 
argument, when raised for the first time in the se ction 129 proceeding, is fully consistent with an 
investigating authority's right to th e orderly conduct of its proceedings.325 
5.145  The United States observes that,  in its rebuttal su bmission, the EC continues to maintain that 
the alleged error in question is with in the terms of reference of this  Article 21.5 panel.  Specifically, 
the EC contends that the alleged error is part of  the measure taken to comply because it "was actually 
committed" in the context of the Section 129 procee ding.  Additionally, the EC avers that it has 
                                                      
318 EC Opening Statement, Ex ecutive Summary, para. 16. 
319 EC Opening Statement, Ex ecutive Summary, para. 17. 
320 EC Opening Statement, Ex ecutive Summary, para. 18. 
321 EC Opening Statement, Ex ecutive Summary, para. 19. 
322 EC Opening Statement, Ex ecutive Summary, para. 20. 
323 US First Written Submission, Executive Summary, para. 42. 
324 US First Written Submission, Executive Summary, para. 43. 
325 US First Written Submission, Executive Summary, para. 44. WT/DS294/RW  
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 established a prima facie case with respect to its claims, and that the United States could not disregard 
an "obvious mistake" in the Section 129 proceeding.
326 
5.146  The EC's arguments are without merit.  As the United States discusse s below, the alleged 
error is an unchanged aspect of the original measure a nd, therefore, is not a part of the measure taken 
to comply.  Moreover, the EC still has not made a prima facie  case with respect to the claims asserted, 
nor has it put forth any authority to support its cont ention that the United States could not disregard an 
"obvious mistake" in the instant proceeding.327  
5.147  As a preliminary matter, the EC advances factua l inaccuracies in support of its argument that 
the alleged error "was actually committed" in th e Section 129 proceeding.  The only change that 
Commerce made within the computer program applie d to the part of the program that caused the 
program to disregard non-dumped comparisons.  Once that part of the program was changed in a 
manner consistent with the DSB's recommendations  and rulings, Commerce re-ran the program to 
calculate a revised margin for the respondent.328 
5.148  Commerce made no other changes to the program  and made no changes to the sets of data 
used by the program to calculate the dumping marg in.  Moreover, to the extent that Commerce had 
found, in the original investigation, that the res pondent had failed to provide information with respect 
to 84 transactions, the original program include d certain information in order to address those 
transactions, using "the facts available."  In the course of the Section 129 proceeding, Commerce made no changes to the program related to these 84 un reported transactions.  Thus , to the extent that 
the EC contends that an error was made with  respect to the treatment of these 84 unreported 
transactions, it is clear that the alleged error was not "actually committed" in the Section 129 
proceeding as the EC asserts.
329   
5.149  This fact is of critical importance because an unchanged aspect of the original measure is not 
a part of the measure taken to comply .  The Appellate Body's decision in EC – Bed Linen (21.5) (AB)  
confirms this point.330 
5.150  The EC's alternative argument – that the alleged error is within the scope of this proceeding 
because it bears a close nexus to the measure  taken to comply – is inapposite.  In Softwood Lumber , 
there was an original investigation, which was f ound inconsistent with the covered agreements.  The 
United States revised the determination relating to th e original investigation.  Canada argued that a 
separate measure, an administrative review, constitu ted a measure taken to comply.  For the reasons 
described above, the Appellate Body concluded that , under those particular facts, the administrative 
review was within the scope of that Article 21.5 proceeding.331 
5.151  Here, however, there is no third measure.  There is the original investigation and the measure 
taken to comply.  Thus, this  situation is analogous to Bed Linen , not Softwood Lumber.  The EC failed 
to advance a claim (assuming arguendo that there is a basis in the Antidumping Agreement for such a 
claim) in the original proceeding, and is using th e Article 21.5 proceeding to challenge an aspect of 
the original measure that was unchanged, and that the United States did not have to change, to bring 
its measure into compliance.  Here, the EC is  seeking precisely what it opposed (and the Appellate 
Body did not permit) in EC – Bed Linen :  affording complaining parties a second bite at the apple.332 
                                                      
326 US Second Written Submission, Executive Summary, para. 38. 
327 US Second Written Submission, Executive Summary, para. 39. 
328 US Second Written Submission, Executive Summary, para. 40. 
329 US Second Written Submission, Executive Summary, para. 41. 
330 US Second Written Submission, Executive Summary, para. 42. 
331 US Second Written Submission, Executive Summary, para. 43. 
332 US Second Written Submission, Executive Summary, para. 44.  WT/DS294/RW 
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 5.152  The United States notes that in its first submissi on, the EC asserted that the United States' 
failure to address the alleged errors is in consistent with various Articles of the Anti-Dumping 
Agreement .  Even if, arguendo , this Panel could reach this claim (though for the reasons given in the 
previous subsection it should not), the EC's clai ms fail.  The United States rebutted the EC's 
arguments by noting that the EC failed to make a prima facie  case with respect to the claims asserted.  
The EC has not responded to that argument, other than to assert that "the mere text of those provisions 
reflects the obligations that the United States, by  failing to correct the error, has infringed."333  As the 
United States noted in its first written submissi on, the Appellate Body has stated that "a prima facie  
case must be based on 'evidence and legal argument' put forward by the complaining party in relation 
to each  of the elements of the claim."  The EC, as the complaining party, bears the burden of coming 
forward with evidence and legal argument to establish a prima facie case of a violation.  A bald 
assertion that a clerical error breaches a series of provisi ons is insufficient.  Having failed at that task 
yet again, the United States respectfully request s that this Panel reject the EC's claims.334 
5.153  The EC argues that "obvious mistakes" shoul d have been addressed in the Section 129 
proceeding.  According to the EC, the United States should have addressed all claims of error and, in 
fact, had ample time to do so.  The EC is offering a test that is not found in the Anti-Dumping 
Agreement  or the DSU – indeed, the EC offers no text ual support for its assertion.  Moreover, the 
EC's test would tend to create more problems than it solves.  What is an "obvious" mistake?  To whom?  Why would "obvious" mistakes be exempt from the limitations on compliance proceedings, 
but "non-obvious" mistakes would not?  And if the mistake were "obvious," why did the EC fail to 
raise it in the original proceedings?
 335 To support its view that obvious mistakes should be corrected, 
the EC attempts to demonstrate that the United States has corrected mistakes in the past.  The 
United States maintains that whether the United St ates has used section 129 proceedings to correct 
mistakes is not germane to the question at hand, which is whether the United States – or any other responding party – is obligated  to do so.
336 
2. Whether there has been a violation in respect of cases 2, 4 and 5 – Stainless Steel Bar 
from France, Italy and the United Kingdom ("all others" rate) 
(a) European Communities 
5.154  The European Communities submits  that in the Section 129 Determinations adopted by the 
United States in the Cases listed in the Annex to th e Panel Request as 2, 4 and 5, the United States 
established new duty levels based on an unjus tified increase in the "all others" rates.337 In two of the 
cases, Stainless Steel Bar from France and Stainless Steel Bar from the United Kingdom , the Section 
129 Determination led to the revocation of the orde r for Ugitech and Corus r espectively and created a 
situation where all the company-speci fic dumping margins were either zero/ de minimis  or based on 
adverse facts available.  In both cases, the US DOC changed the "all others" rate (previously 
equivalent to the "zeroed" rate of Ugitech and Corus) to a simple weighted average of the zero/ de 
minimis  and adverse facts available rates.  This resulte d in an astronomic increase in the "all others" 
rate, from 3.9 per cent to 35.92 per cent in Fr ance and 4.48 per cent to 83.85 per cent in the 
United Kingdom.338 
                                                      
333 US Second Written Submission, Executive Summary, para. 45. 
334 US Second Written Submission, Executive Summary, para. 46. 
335 US Second Written Submission, Executive Summary, para. 47. 
336 US Second Written Submission, Executive Summary, para. 48. 
337 EC First Written Submission,  Executive Summary, para. 42. 
338 EC First Written Submission,  Executive Summary, para. 43. WT/DS294/RW  
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 5.155  In the case of Stainless Steel Bar from Italy , the exclusion of Valbruna and Foroni led to an 
increase of the "all others" rate from 3.81 per cent to 6.6 per cent, following a similar averaging exercise which included an adverse facts available rate.
339 
5.156  The European Communities observes that the a bove situations have come about because the 
USDOC, following the provisions of Article 9.4 of the Anti-Dumping Agreement , had originally based 
the "all others" rate on the highest dumping margin  for a co-operating exporter, thus excluding zero/ de 
minimis  margins and margins based on facts availabl e from the calculation.  Once the impact of 
zeroing was removed in the Section 129 proceed ing, all co-operating exporters had zero or de minimis  
margins.  Thus, USDOC had to find another basis for setting the "all others" rate.  The method it 
chose led to the steep increases described above.  The European Communities submits that such 
increases in the "all others rate" are unreasonable a nd inconsistent with Articles 9.4 and 6.8 of the 
Anti-Dumping Agreement .340 
5.157  According to the European Communities, in th e three cases concerned, the United States had 
originally used a methodology consistent with Article 9.4 of the Anti-Dumping Agreement .  In 
contrast, when carrying out the Section 129 Dete rminations, in the absence of any remaining co-
operating exporters with a dumping margin above de minimis , not only did the United States use 
margins based on facts available, but also zero/ de minimis  margins ( i.e., the new ones calculated 
without zeroing).  In fact, the United States made  a weighted average between the two types of 
margins to calculate the final "all others" rates.  The European Communities considers that this is 
directly contrary to the text of Article 9.4 of the Anti-Dumping Agreement , as interpreted by the 
Appellate Body.341 
5.158  In addition, the European Communities argues that, basing the "all others" rate on adverse 
facts available rates also violates Article 6.8 and Annex II of the Anti-Dumping Agreement .  Indeed, 
the method applied by the USDOC to calculate the "a ll others" rate in practice moves from a situation 
where the "all others" rate is based on "facts available" ( i.e., the highest rate for a co-operating 
exporter) to one where it is largely based on "adverse inferences" ( i.e., a rate for an exporter which 
has failed to "act to the best of its ability to comp ly with a request for information").  By basing the 
rate on adverse facts available, the USDOC effectiv ely determined that exporters subject to the "all 
others" rate were guilty of behaviour that would wa rrant the application of adverse inferences and has 
put them in the same basket as firms which are a lleged to have actively im peded the investigation, 
without demonstrating that such treatment is appropriate.342 
5.159  The European Communities notes that the United States asks the Panel to reject the EC's 
claim concerning the Section 129 Determinations on Stainless Steel Bar from France, Italy and the 
United Kingdom because the original anti-dumping or ders were revoked and, thus, the measures are 
no longer in place.  Moreover, the United States ma intains that the European Communities has failed 
to demonstrate that the calculation of the "all othe rs" rates from the Section 129 Determinations was 
inconsistent with the Anti-Dumping Agreement.  The European Communities submits that the US 
arguments should be rejected in light of the following reasons.343  First, as the United States points 
out, pursuant to sunset reviews of the anti-dum ping duty orders on Stainless Steel Bar from, inter alia , 
France, Italy and the United Kingdom, the USITC found that the revocation of the orders would not be likely to lead to the continuation or recurrence of  material injury to the domestic industry.  Thus, 
on 7 February 2008 the USDOC revoked the original or der.  However, this revocation is not final and 
conclusive because, under US law, interested parti es may challenge the USITC's determination within 
                                                     
 
339 EC First Written Submission,  Executive Summary, para. 44. 
340 EC First Written Submission,  Executive Summary, para. 45. 
341 EC First Written Submission,  Executive Summary, para. 46. 
342 EC First Written Submission,  Executive Summary, para. 47. 
343 EC Second Written Submission, Executive Summary, para. 49.  WT/DS294/RW 
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 30 days after the publication of the notice in the Fe deral Register.  Should the appeal be successful, 
the measure would be reintroduced.  Therefore, th e European Communities considers that the Panel 
should examine the conformity of this measure with the Anti-Dumping Agreement and the GATT 
1994.344  Second, the European Communities observes that  the fact that a challenged measure is no 
longer in effect, of itself, does not necessarily prev ent the Panel from assessing that measure, even 
though it may affect the Panel's rulings in connection with implementation.  The 
European Communities recalls that several panels  have indicated their willingness to examine and 
make findings regarding measures that have al ready expired or allegedly expired.  The 
European Communities argues that this approach is  necessary in order to provide a positive solution 
to the dispute, and to prevent the purpose of th e dispute settlement system from being defeated.345  
Third, the European Communities contends that it h as demonstrated that the calculation of the "all 
others" rates from the Section 129 De terminations is inc onsistent with the Anti-Dumping Agreement, 
having sufficiently addressed this issue in its First Written Submission.346  In light of the above, the 
European Communities submits that the Panel should reject the arguments raised by the United States 
with respect to Cases 2, 4 and 5 relating to the unjustified increased of "all others" rates.347 
5.160  The European Communities observes that it has explained in its submissions how the 
significant increase of "all others" rates (sometimes even almost twenty times  higher that the original 
"all others" rates") as a result of the Sec tion 129 Determinations in the cases concerning Stainless 
Steel Bar from France , Italy and the United Kingdom  violates Articles 9.4 and 6.8 of the Anti-
Dumping Agreement .  The United States has not contested these claims.348 
5.161  As for the revocation of the original orders, the European Communities requests this Panel to 
continue with its analys is of consistency of all the measures challenged in this proceeding with the 
Anti-Dumping Agreement  and the GATT 1994 , regardless of whether the original anti-dumping orders 
have been revoked or not.  Otherwise, it would need  to come back to a new panel to discuss the same 
issue and, thus, a positive solution to the dispute on th is point would have to wa it.  This cannot be the 
purpose of the dispute settlement system which, according to Article 3.2 of the DSU , must provide 
"security and predictability" and serves to "cla rify the existing provisions" of the covered 
agreements.349 
5.162  As regards the observation made by the United States that the EC's arguments are result-
oriented, the European Communities adds that the situation is rather the contrary.  It is the 
United States which is seeking to artificially incr ease the "all others" rates, in disregard of its 
obligations contained in Articles 9.4 and 6.8 of the Anti-Dumping Agreement .  If the United States 
finds it difficult to justify its duties on the basis of the Anti-Dumping Agreement , it might well be, as 
the European Communities has sugg ested, that the only WTO-consistent solution available for the 
United States is that the level of "all others" rate should be zero.  Yet it should not be forgotten that 
this situation arose because the anti-dumping duti es for the major exporters, as selected by the 
United States in the original investigation, were revoked  after zeroing was eliminated from the 
calculation.  Should the United States have disregarded those companies at the very beginning of the 
original investigation (because dumping would not have been found without zeroing), the United States could have selected other sources of information in order to calculate the "all others" 
rates. 
350  Consequently, the European Communities s ubmits that it has demonstrated that the 
calculations of the "all others" rates in the Secti on 129 Determinations in qu estion are inconsistent 
                                                      
344 EC Second Written Submission, Executive Summary, para. 50. 
345 EC Second Written Submission, Executive Summary, para. 51. 
346 EC Second Written Submission, Executive Summary, para. 52. 
347 EC Second Written Submission, Executive Summary, para. 53. 
348 EC Opening Statement, Ex ecutive Summary, para. 21. 
349 EC Opening Statement, Ex ecutive Summary, para. 22. 
350 EC Opening Statement, Ex ecutive Summary, para. 23. WT/DS294/RW  
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 with Articles 9.4 and 6.8 of the Anti-Dumping Agreement , and that the United States has not rebutted 
this claim.
351 
(b) United States 
5.163  The United States first submits that the EC's cl aims regarding the Section 129 determinations 
on Stainless Steel Bar from France, Germany, Italy and the United Kingdom should be rejected 
because these claims concern measures that are no longer in effect.  Commerce revoked the orders 
covering Stainless Steel Bar from France, Germany, Italy and the United Kingdom effective as of 7 March 2007.
352 
5.164  The United States observes in this context that the Section 129 determinations, which resulted 
in a change to the all others rates, became effec tive on April 23, 2007.  Thus, imports made on or after 
23 April 2007, from exporters or producers who did not  have their own cash deposit rate were subject 
to the posting of a cash deposit at the new all others  rate.  However, the revocation of the antidumping 
duty orders on Stainless Steel Bar from France, Italy and the United Kingdom became effective as of 7 March 2007.  Pursuant to this revocation, th e United States will refund any cash deposits posted on 
imports of stainless steel bar from these countries made on or after 7 March 2007 and those imports 
will not be subject to any final assessment of anti dumping duties.  Alternatively, the EC also has 
failed to demonstrate that the calculation of the all others rates from the Section 129 determinations 
was inconsistent with the Anti-Dumping Agreement .
353 
5.165  Despite the revocation of the antidumping duty  orders covering Stainless Steel Bar from 
France, Italy and the United Kingdom, the EC persists  with its claim against the "all others" rate 
resulting from Commerce's Section 129 determinations.  The United States argu es that the EC's claim 
continues to be unfounded.354 
5.166  The United States explains that consistent with Article 6.10, in the original investigations 
Commerce limited its examination to the largest pe rcentage of the volume of the exports from the 
country in question which could reas onably be investigated.  Commerce then calculated an all others 
rate to apply to imports from those exporters or  producers who did not have their own margin of 
dumping, consistent with Article 9.4.  In the S ection 129 Determinations, Commerce recalculated the 
rates for the selected respondents as well as the all others rate.  For the three stainless steel bar 
determinations challenged by the EC, each of the margins of dumping Commerce calculated were 
either zero or de minimis , or based on facts available.  Article 9.4 does not address this situation, and 
Commerce determined the simple average of the ma rgins of dumping calculated in each of the Section 
129 Determinations to establish the all others rate for that determination.355  The United States notes 
in this regard that the EC's contention here is not with the reasonableness of the methodology 
Commerce employed.  Rather, the EC's arguments are results-oriented, pointing to the fact that the 
resulting all others rates were higher than those calcu lated in the original investigations.  Should the 
Panel reach this claim, which it need not, the United States argues that the EC has failed to 
demonstrate that Commerce acted inconsisten tly with Articles 6.8, 6.10 or 9.4 of the Anti-Dumping 
Agreement , and the Panel should so find.356 
5.167  According to the United States, the EC contends that under Article 9.4 of the Anti-Dumping 
Agreement , the United States could not use zero or de minimis  margins or margins based on facts 
                                                      
351 EC Opening Statement, Ex ecutive Summary, para. 24. 
352 US First Written Submission, Executive Summary, para. 27. 
353 US First Written Submission, Executive Summary, para. 28. 
354 US Second Written Submission, Executive Summary, para. 34. 
355 US First Written Submission, Executive Summary, para. 29. 
356 US First Written Submission, Executive Summary, para. 30.  WT/DS294/RW 
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 available in calculating the new all others rate.  This is despite the fact that these were the only 
margins remaining after Commerce recalculated th e margins of dumping to implement the DSB's 
recommendations and rulings.357 The EC contends that its altern ative methods would be consistent 
with WTO obligations.  Namely, the EC argues th at Commerce could have continued to use the 
original all others rates.  The EC, however, ignor es the inconsistency of its own argument.  The EC 
originally challenged Commerce's determinations in these investigations because Commerce did not 
grant offsets for the non-dumped sales.  The original  all others rates were based on the very margins 
of dumping challenged by the EC.  Following the EC's logic in the original dispute, therefore, the 
original all others rates were tainted with the sa me inconsistencies present in the challenged margins 
of dumping.  Accordingly, when implementing the DSB's recommendations and rulings, Commerce 
could not simply use those same all others rates.358 
5.168  The United States observes indeed that, had Commer ce used the original all others rates, as 
advocated by the EC in this dispute, and had an average of zero or de minimis  margins and margins 
based on facts available resulted in lower all other rates, the United States anticipates that the EC 
would have claimed that the use of the original all others rates was inappropriate as the underlying 
margins were tainted with "zeroing."   The EC's ar guments in this dispute are thus clearly results-
oriented, and not based on the obligations found in the Anti-Dumping Agreement .359 
3. Whether there has been a violation in respect of cases 2, 3, 4 and 5 – Stainless Steel Bar 
from France, Germany, Italy and the United Kingdom ("injury") 
(a) European Communities 
5.169  The European Communities observes that pursuant to the Section 129 Determinations 
concerning Cases 2 to 5 listed in the Annex to th e Panel Request, the United States recalculated the 
dumping margins without zeroing and found that some exporters were not dumping or had de minimis  
dumping margins.  However, in those cases the United States maintained the anti-dumping duties without establishing (i) whether the remaining amount of dumped imports was causing injury to the domestic industry, and (ii) whether this volume of du mped imports was not negligible.  In particular, 
the United States disregarded the fact that, afte r the recalculation of duties without zeroing, on 
average around 75 per cent of the volume of imports which had been considered as dumped, could no 
longer be considered as dumped.  The European Comm unities submits that this is inconsistent with 
Articles 3.1, 3.2, 3.5, 5.8 of the Anti-Dumping Agreement and Article VI:1 of the GATT 1994 .
360 
5.170  The European Communities notes that the Un ited States argues that the EC's claim 
concerning the Section 129 Determinations on Stainless Steel Bar from France, Germany, Italy and 
the United Kingdom should be rejected because the original anti-dumping orde rs were revoked and, 
thus, the measure is no longer in place.  In this r espect, the European Commun ities refers the Panel to 
the arguments made in Section IV.2(a) of its Re buttal Submission, arguing that the Panel must 
continue with its analysis of c onsistency of all the measures challe nged in this proceeding with the 
Anti-Dumping Agreement and the GATT 1994, regardless of whet her the original anti-dumping orders 
have been revoked or not.361 
5.171  The European Communities further notes that the United States is of the view that the 
European Communities made the same claim in the or iginal proceeding, but the Panel in the original 
dispute declined to consider it.  Thus, the United States argues that such cl aims are not within the 
                                                      
357 US Second Written Submission, Executive Summary, para. 35. 
358 US Second Written Submission, Executive Summary, para. 36. 
359 US Second Written Submission, Executive Summary, para. 37. 
360 EC First Written Submission,  Executive Summary, para. 48. 
361 EC Second Written Submission, Executive Summary, para. 54. WT/DS294/RW  
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 terms of reference of this proceeding.  The Eur opean Communities observes in  this respect that the 
United States has not based this argument on any legal claims or provisions of the DSU .  Nor have the 
United States referred to the specific documents wh ere the European Communities made such claims 
in the original proceeding.  Thus, the Panel should reject it as unfounded.
362 
5.172  In any event the European Co mmunities maintains, that, should the Panel examine the 
argument raised by the United States on this point,  the claim concerning the failure to reassess the 
injury in the Section 129 Determinations  concerned refers to new measures ( i.e., measures taken to 
comply) and, thus, new claims can be made against them.363 In light of the foregoing, the European 
Communities submits that the Panel should reject th e arguments made by the United States against the 
violations identified by the European Communities with respect to the Section 129 Determinations 
covered in this proceeding.364 
5.173  The European Communities observes that it has extensively argued that the US failure to 
reassess injury when, after the recalculation of duties without zeroing, on average around 75 per cent 
of the volume of imports which had been consider ed as dumped could no longer be considered as 
dumped, is inconsistent with Artic les 3.1, 3.2, 3.5, 5.8 of the Anti-Dumping  Agreement and 
Article VI:1 of the GATT 1994 .365 
5.174  The European Communities argues that the claims made by th e European Communities with 
respect to the Section 129 Determinations at issue are not "dependent claims " as the United States has 
characterised them.  They relate to new measures ( i.e., the Section 129 Determinations), against which 
new claims can be made, and with respect to whic h the European Communities is asking for a finding 
from this Panel.366 
5.175  In addition, the European Communities notes that  the Panel in the original dispute did not 
reject the EC's claims, as the US prete nds to argue; rather, the Panel exercised judicial economy  since 
the EC's claims were consequential  of the violation when calculating the dumping margin.  In this 
respect, it is worth remembering that, in US – OCTG (Sunset Reviews) (21.5) , the Appellate Body 
held that a claim relating to an aspect of a measure  on which the panel in the original proceeding had 
exercised judicial economy was properly  within the scope of Article 21.5 of the DSU.  Therefore, the 
EC's claim in the present case is e qually properly before this Panel.367 
5.176  Thus, the European Communities requests a finding that the United States violated 
Articles 3.1, 3.2, 3.5 and 5.8 of the Anti-Dumping Agreement  and Article VI:1 of the GATT 1994 
when failing to reassess the injury in light of th e new volume of non-dumped imports in the Section 
129 Determinations concerned.368 
5.177  As regards the Section 129 Determinations sp ecifically challenged in this proceeding, the 
European Communities requests this Pa nel to find that the calculation error, the unjustified increase in 
"all others" rates and the failure to reass ess injury amount to violations of the Anti-Dumping 
Agreement  and the GATT 1994 .  Even if the United States has re voked some of these measures, it is 
vital for a proper solution to this dispute, including  the correct interpretation of the relevant provisions 
of the Anti-Dumping Agreement  and the GATT 1994 , that this Panel provides a clarification of the 
relevant rules.  Otherwise, nothing would prevent the United States from infringing the rules again in 
                                                      
362 EC Second Written Submission, Executive Summary, para. 55. 
363 EC Second Written Submission, Executive Summary, para. 56. 
364 EC Second Written Submission, Executive Summary, para. 57. 
365 EC Opening Statement, Ex ecutive Summary, para. 25. 
366 EC Opening Statement, Ex ecutive Summary, para. 26. 
367 EC Opening Statement, Ex ecutive Summary, para. 27. 
368 EC Closing Statement, Ex ecutive Summary, para. 10.  WT/DS294/RW 
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 new anti-dumping measures.  In fact, a lack of a ru ling on this issue would allow the United States to 
introduce WTO inconsistent measures at one point, wait for a challenge brought by a WTO Member, 
wait for the panel proceedings to be initiated and then  modify the measure at the last minute, in order 
to prevent a negative finding.  Again, this would set  a bad example not only applicable to compliance 
cases, but to the dispute settlement system in general.369 
(b) United States  
5.178  The United States asserts that the Panel should reject the EC's contention that the United 
States acted inconsistently with the Anti-Dumping Agreement  and GATT 1994 by maintaining the 
orders with respect to Stainless Steel Bar fro m France, Germany, Italy and the United Kingdom 
without reconsidering the issue of injury after th e Section 129 Determinations found that some of the 
exporters originally investigated were not dumping because it concerns measures that are no longer in 
effect.370 The United States clarifies that pursuant to  the sunset reviews, it revoked the orders on 
Stainless Steel Bar from France, Germany, Italy a nd the United Kingdom effective March 7, 2007.  
Thus, contrary to the EC's contention, the United States no longer maintains antidumping duties on products subject to these orders.  Indeed, the revocati on is effective more than one month prior to the 
end of the reasonable period of time.  The Unite d States observes that it will refund the cash deposits 
on any imports occurring on or after March 7, 2007.  Additionally, these imports will not be subject to 
any final assessment of antidumping duties in the future.
371 
5.179  As a procedural matter, the United States not es that the EC asserted these claims in the 
original proceeding, and the original panel declin ed to consider them.  Should the EC pursue these 
claims even though the order has been revoked, the United States reserves its right to request a ruling 
from the Panel that such claims are not within its terms of reference.372 
5.180  The United States notes, with respect to the EC 's claims involving injury, that the EC has 
failed to demonstrate that these claims are within the terms of reference of this proceeding.  The 
United States considers that the EC, by  including a brief statement that its claim "refers to new 
measures ( i.e., measures taken to comply) and, thus, new clai ms can be made against them,"  the EC, 
however, is not making "new claims", instead trying  to resuscitate failed claims from the original 
dispute.  The United States recalls that the Appe llate Body has clarified that "adopted panel and 
Appellate Body reports must be accepted by the parties to a dispute" and complian ce bodies will 
decline to revisit original panel and Appellate B ody reports that have been adopted and accepted by 
the parties.   
5.181   The EC raised these claims in the original pr oceeding, and the original panel affirmatively 
declined to make findings on them.373   The United States, referring to the EC's First Written 
Submission, notes that the EC does not dispute this  fact.  The United States understands that the EC 
asks the United States to identify wh ere in the original proceeding the EC made these claims.  The 
United States responds by noting that that these clai ms appear in the corrected version of the EC's 
original Panel request under Section 3.2, "as applied claims,"374 and that the EC is precluded from 
pursuing these claims here for two reasons.  First, in  view of the United States, the original Panel did 
not find that the United States had breached its obliga tions with respect to Articles 3.1, 3.2, 3.5, and 
5.8.  The United States recalls that the Appellate Body noted and did not disturb the original panel's 
treatment of the injury claims.  Thus, the recommendations and rulings of the DSB did not pertain to 
                                                      
369 EC Closing Statement, Ex ecutive Summary, para. 11. 
370 US First Written Submission, Executive Summary, para. 31. 
371 US First Written Submission, Executive Summary, para. 32. 
372 US First Written Submission, Executive Summary, para. 33. 
373 US Opening Statement, Ex ecutive Summary, para. 26. 
374 US Second Written Submission, Executive Summary, para. 49. WT/DS294/RW  
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 any findings on these claims, and the United States was under no obligation to take a measure to 
comply with respect to such claims
375 -- the United States cannot be faulted for a failure to comply 
since there was nothing to comply with.376  Observing that the EC now argues, however, that the 
United States was in fact obliged to take steps with  respect to the injury claims, the United States 
submits that that argument contradicts the express finding of the original panel that no such steps 
would need to be taken.377 The original Panel specifically foun d those claims unavailing, stating it 
"perceive[d] no need to pronounce on the dependent  claims raised by th e European Communities" 
under, inter alia , Articles 3.1, 3.2, 3.5, and 5.8 of the Anti-Dumping Agreement .  Because the original 
panel rejected the EC's injury claims in the orig inal dispute on the basis that addressing them would 
provide no further guidance to the United States for purposes of implementation, the United States 
maintains that the EC is preclude d from renewing those claims here.378  
5.182  The United States argues that the reasons give n by the original Panel for dismissing the 
claims similarly apply to compel rejection of the EC's reiterated argument here.  Now, according to 
the United States, as in the original proceeding, it is not necessary for the Panel to address dependent 
claims where the United States has implemented the DSB's recommendations with respect to the 
violations found.  As the original Panel stated, "[d]eciding such dependent claims would provide no 
additional guidance as to the steps to be undertaken by the United States in order to implement our 
recommendation regarding the viola tion on which it is dependent."379  
5.183  The United States also recalls that the orders  in question have been revoked.  Petitioners 
appealed the determination that resulted in revocation,  but that appeal has been dismissed.  Thus, the 
antidumping duty orders in question no longer exist.380  
4. Requests for findings  
(a) European Communities 
5.184  The European Communities requests the Pa nel to make the following findings:381 
• the United States violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping 
Agreement when extending the measures contained in the original dispute pursuant to 
sunset review proceedings relying on margin of duties calculated with zeroing;  
• the United States has not complied with the DSB's recommendations in the original 
proceeding, since it continues to collect  anti-dumping duties and establish new cash 
deposit rates based on zeroing with respect to the original investigations and 
administrative reviews challenged in the original dispute;  
• the United States remains in violation of Articles 2.4.2 and 9.3 of the Anti-Dumping 
Agreement and Article VI:2 of the GATT 1994 , since it still collects anti-dumping 
duties calculated with zeroing with respect to measures challenged in the original 
dispute (including the measures listed in the Annex to the Panel Request and any 
other subsequent measures); 
                                                      
375 US Second Written Submission, Executive Summary, para. 50. 
376 US Opening Statement, Ex ecutive Summary, para. 26. 
377 US Second Written Submission, Executive Summary,  para. 52.  See also, US Opening Statement, 
Executive Summary, para. 26.   
378 US Second Written Submission, Executive Summary, para. 53. 
379 US Second Written Submission, Executive Summary, para. 51. 
380 US Opening Statement, Ex ecutive Summary, para. 27. 
381 See also, EC Second Written Subm ission, Executive Summary, para. 58 and EC Opening Statement, 
Executive Summary, para. 29  WT/DS294/RW 
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 • the United States has not complied with the DSB's recommendations in the original 
proceeding, since it has failed to fully re voke the original investigation orders 
contested in the original dispute; 
• the United States has not complied with the DSB's recommendations in the original 
proceeding, since the 16 administrative review investigations covered in the original dispute have not been superseded ( i.e., the United States still collects duties based on 
the dumping margins found in those proceedings with zeroing, and the United States 
has also relied on those margins for the dete rmination of likelihood of recurrence of 
dumping in sunset review proceedings); 
• the United States violated Articles 21.3 and 21.3(b) of the DSU, since it did not take 
any measure to comply with respect to the "as applied" measures covered in the 
original dispute between 9 April and 23 April/31 August 2007; 
• the United States violated Articles 2, 5.8, 6.8, 9.3, 11.1 and 11.2 of the Anti-Dumping 
Agreement and Article VI:2 of the GATT 1994  when making the error in the 
calculation of the unit value and then failing to have it removed pursuant to the Section 129 Determination in Case 11 of  the Annex to the Panel Request; 
• the United States violated Article 6.8, Annex II and Article 9.4 of the Anti-Dumping 
Agreement when using a weighted average of exporters with zero/ de minimis  rates 
and adverse facts available to calculate th e "all others" rates pursuant to the Section 
129 Determinations in Cases 2, 4 and 5 of  the Annex to the Panel Request; and 
• the United States violated Articles 3.1, 3.2, 3.5 and 5.8 of the Anti-Dumping 
Agreement and Article VI:1 of the GATT 1994  when failing to reassess the injury in 
light of the new volume of non-dumped imports pursuant to the Section 129 Determinations in Cases 2, 3, 4 and 5 of the Annex to the Panel Request.
382 
 
5.185  The European Communities also  requests the Panel to find that its composition was not 
consistent with Articles 21.5 and 8.3 of the DSU. 
5.186  The European Communities considers that, since the United States has failed to comply with 
its obligations, the original recommendations of the DS B remain in effect, and apply to the full extent 
of the findings requested above.  Thus, the Europ ean Communities requests this  Panel to confirm its 
previous recommendation, pursuant to Article 19 of the DSU, that the United States takes the steps 
necessary to bring its measures into conformity with the cited WTO provisions.383 
5.187  In the European Communities' view, the Panel should suggest that, in order to comply with 
the DSB's recommendations, the United States cease using zeroing when calculating dumping margins in any anti-dumping proceeding with respect  to the measures challenged in the original 
dispute and any other subsequent amendments of tho se.  This suggestion will be appropriate to help 
promote the resolution of the dispute.
384 
5.188  The European Communities clarifies that it is not requesting retrospective application of 
DSB's recommendations and finding in this case.   However, the European Communities asks for 
prospective implementation of the DSB's recommendati ons after the end of the reasonable period.  In 
particular, the European Communities is of the opinion that the United States should stop taking any positive acts providing for the final payment of duti es or retention of cash deposits based on zeroing 
with respect to those entries not finally liquidated before the end of the reasonable period.  In other 
words, the United States (i) should not send new assessment instructions based on zeroing with 
respect to the measures covered by this dispute; (ii) should not establish new cash deposit rates based 
on zeroing in those cases; and (iii) should terminate all proceedings seeking to  collect duties based on 
                                                     
 
382 EC First Written Submission,  Executive Summary, para. 49. 
383 EC First Written Submission,  Executive Summary, para. 50. 
384 EC First Written Submission,  Executive Summary, para. 51. WT/DS294/RW  
Page 66  
 
 zeroing after the end of the reasonable period in cases where there is no final liquidation.  Finally, the 
United States should reverse any positive acts take n after the end of the reasonable period which 
sought the collection of anti-dumping duties or the establishment of new cash deposit rates based on 
zeroing with respect to the measures successf ully challenged in the original dispute.
385 
(b) United States 
5.189  The United States considers that it has implem ented the DSB's recommendations and rulings, 
and thus has complied with its obligations under the DSU.  Thus, the Panel should reject the EC's  
claims of non compliance and its effort to enla rge the obligations of the United States.  The 
United States also considers that the Panel should d ecline to make the suggestion requested by the EC.  
A Member retains the right to determine the manner of implementing DSB recommendations and 
rulings.  The question in this proceeding is the ex istence or consistency of  the measure taken to 
comply, not what future actions the United States should take to ensure compliance.386 
VI. ARGUMENTS OF THE THIRD PARTIES 
6.1 The arguments of the third parties are set out in their written and oral submissions to the 
Panel, and in their answers to questions.  The third parties' arguments, based on the summaries 
submitted by them pursuant to paragraph 10 of the Pa nel's working procedures, are set forth in this 
section.  Certain of the third parties made only an or al submission, while others  did not make either an 
oral or written submission, but attended the Pane l's meeting with the parties and third parties.387    
1. India 
6.2 At the Panel meeting with third parties, India stated  that it has strong systemic interests in the 
interpretation and application of various provisions of the Anti-Dumping Agreement , which 
individually and collectively, prohibit  the utilizati on of zeroing practice in all proceedings regulated 
by the Anti-Dumping Agreement .388 
6.3 India considers that the issue of zeroing is of extreme systemic  importance to the multilateral 
trading system.  India strongly opposes the pract ice of zeroing in dumping margin calculations in 
every comparison methodology under Article 2.4.2 in th e original investigations as well as in all kinds 
of reviews – administrative, interim, sunset.  India c onsiders that it is regrettable that the United States 
continues to apply the zeroing methodology for determining the anti-dumping margins, except in the comparison of weighted-average normal value with  weighted average export price during original 
investigations, despite the fact that the panel and the Appellate Body unequivocally held that the US 
DOC's application  of zeroing in both the original investigations and subsequent reviews constitute 
violation of relevant provisions of the Anti-Dumping Agreement .
389    
6.4 India has strong concerns on the manner in which the US claims to have complied with panel/ 
Appellate Body rulings in this dispute.  The US states in paragraph 50 of the Executive Summary of 
its First Written Submissions of February 8, 200 8 that it has implemented the recommendations and 
                                                      
385 EC First Written Submission,  Executive Summary, para. 52. 
386 US First Written Submission, Executive Summary, paras. 3, 57. 
387 The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; India; Mexico and 
Thailand informed the Panel that they would not be provi ding written submissions in this dispute.  Furthermore, 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, Mexico; Norway and Thailand informed the Panel that they would not be making oral statements at the Panel meeting with the parties and third 
parties.   
388 Opening Statement of India at the meeting of th e Panel with third partie s (hereinafter "India's 
Opening  Statement"), para. 1. 
389 India's Opening Statement, para. 2.  WT/DS294/RW 
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 rulings because each of those revi ews has been superseded by determinations in subsequent 
administrative reviews.  The US further states th at the subsequent reviews examined a wholly 
different set of sales transactions occurring during a different period of time.  Further in these 
subsequent determinations, Commerce calculated ne w margins of dumping, and put in place new cash 
deposits for the companies examined.  India disagrees with this argument of the US.  Even if the 
original measures may have been reviewed on diffe rent occasions, these are continuation of original 
measures, the results of the previous review still affect interested parties and subsequent equally 
critical procedures.  The Appellate Body in its report, found that the United States had acted inconsistently with Article 9.3 of the Anti-Dumping Agreement and Article VI:2 of the GATT 1994  in 
the administrative review investigations at issue due  to its use of a "simple zeroing" methodology, and 
reversed Panel's finding to the contrary.
390 
6.5 India notes that from the US claim of its stated compliance with the rulings in this dispute it 
seems that there is no discipline for calculating dumpi ng margin in administrative reviews.  Whereas, 
as per Article 9.3, the margin of dumping has to be established as per Article 2 even in the 
administrative reviews.  Therefore, the principle of  'fair comparison' as enshrined in Article 2.4 must 
apply.  Further, the margins are to be establis hed as per the comparison methodology provided in 
Article 2.4.2.  As seems to be the US practice, during the administrative reviews, the US compares the 
weighted average normal value  with individual export transactions (para. 24 of EC's First Written Submissions).  In this process of comparison, the US  takes into account only those transactions where 
the margin is positive.  Those transactions havi ng negative margins are not taken into account, and 
thereby assigned 'zero' value.  
391   
6.6 Article 2.4.2 of Anti-Dumping Agreement  lays down the rules for comparison of normal value 
with export price.  The margins of dumping are normally to be established on the basis of a comparison of weighted average normal value with weighted average export price.  The third option of W to T comparison of weighted average normal value with individual export transactions can only 
be used in special circumstances where the authorities find a pattern of export prices which differ 
significantly among different purchasers, regions or time  periods, and if an explanation is provided as 
to why such differences can not be taken into acc ount appropriately by the use of the other two 
methodologies of comparison.  It seems the third methodology of W to T (weighted average to weighted transaction) comparison becomes the defa ult option by the US during the administrative 
reviews and by use of this methodology the US tries to  justify use of  'zeroing' in the dumping margin 
calculations in administrative reviews.  India wo uld like to  request the US delegation to kindly 
clarify:   
• Under which provisions of the Anti dumping agreement, does the US determine the dumping 
margin in administrative reviews? 
• While determining the dumping margin in ad ministrative reviews by using the W to T 
comparison, does the US follow the principles set out in the provisions of the Article 2.4.2, 
and if so, does the US provide an explanation in  each of its determinations as regards the use 
of the W to T methodology and why the other two methodologies can not be used?
 392 
6.7 India has strong systemic concerns on this con tinuous practice of zeroing, despite the settled 
jurisprudence by the panel and the Appellate Body th at the practice of zeroing is WTO inconsistent.  
India believes that reliance on previous case law act ually flows from the necessity to ensure in any 
                                                      
390 India's Opening Statement, para. 3. 
391 India's Opening Statement, para. 4. 
392 India's Opening Statement, para. 5. WT/DS294/RW  
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 legal system security, consistency and predictability,  and therefore, the use of "zeroing", at every 
stage, either in the original investigations or in reviews of all kinds is impermissible.
393 
6.8 To conclude, India believes that the periodic reviews challenged by the EC are closely 
connected to the original measures that are the s ubject of the DSB's recommendations and rulings and 
therefore with in the jurisdiction of this panel.  394 
2. Japan 
6.9 Japan's reading of the EC's panel request is  that the review measures were explicitly 
"identified" by the EC because they were among the "measures at issue"  in these proceedings.  
Moreover, the EC devoted paragra ph 7 of its request to explaining that the reviews specifically 
identified in the annex were related to the original  measures, and involved the continued use of the 
disputed zeroing methodology.  In fact, in that para graph of its request, the EC described the reviews 
as being " in question ", the very words that the United Stat es says were not used by the EC in 
connection with these measures.395  Thus, Japan believes that the EC's panel request specifically 
identified the periodic and sunset reviews th at are related to the original measures.396 
6.10 In the original proceedings, the EC success fully challenged a group of 31 anti-dumping 
measures resulting from 15 original investigations  and 16 periodic reviews on the grounds that 
zeroing had been used in the dumping determinations.  In these proceedings, the EC contests, among others, the United States' omission or failure to ta ke steps to eliminate zeroing from certain of these, 
and other closely related, measures; additionally,  the EC challenges the United States' adoption of 
measures very closely related to the original measu res, including periodic reviews, sunset reviews, 
and measures that impose and collect definitiv e anti-dumping duties based on inflated dumping 
margins calculated with zeroing.
397 
6.11 The United States argues that these connected measures cannot be subject to Article 21.5 
proceedings because they are not "measures taken to comply" with the DSB's recommendations and 
rulings.  Japan's arguments focus on the periodic review measures challenged by the EC.398  
6.12 It is well-established that, Article 21.5 proceedings may concern measures in the form of both 
acts and omissions.  In US – Softwood Lumber IV (Article 21.5) , the Appellate Body observed that 
"[t]he word 'existence' [in Article 21.5] suggests th at measures falling within the scope of Article 21.5 
encompass not only positive acts , but also omissions ."399  Indeed, an Article 21.5 dispute may involve 
"a combination  of both [acts and omissions] in situations where the measures taken to comply, 
through omissions or other deficiencies , may achieve only partial compliance."400  Thus, the EC is 
entitled to challenge omissions  by the United States to take action to eliminate zeroing from its 
measures, as well as acts by the United States in adopting measures that involve the further 
application of zeroing, or measures involving a combination  of both.401 
                                                      
393 India's Opening Statement, para. 6. 
394 India's Opening Statement, para. 7. 
395 Executive Summary of the Third Party Submission of Japan (hereinafter "Japan's Third Party 
Submission, Executive Summary"), para. 2. 
396 Japan's Third Party Submission, Executive Summary, para. 3. 
397 Japan's Third Party Submission, Executive Summary, para. 4. 
398 Japan's Third Party Submission, Executive Summary, para. 5. 
399 Japan's Third Party Submission, Executive Summary, para. 6, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , para. 67 (original italics). 
400 Japan's Third Party Submission, Executive Summary, para. 6, citing Appellate Body Report, US – 
FSC (Article 21.5 – II) , para. 93 (emphasis added). 
401 Japan's Third Party Submission, Executive Summary, para. 7.  WT/DS294/RW 
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 6.13 In one of the very first Article 21.5 pr oceedings, the Appellate Body observed that 
"Article 21.5 proceedings involve, in principle, not the original measure, but rather a new and 
different measure which was not before the original panel ."402 In other words, compliance 
proceedings normally involve a measure that is separ ate and distinct from the original measure, and 
that was not the subject of the DSB's recommendations and rulings.403  The panel report of Australia – 
Salmon (Article 21.5)404 and the rulings of the panel and Appellate Body in US – Softwood Lumber IV 
(Article 21.5)  405 also contradicts the United States' argumen ts.  As will become clear below, the two 
measures in US – Softwood Lumber IV (Article 21.5)  stood in virtually the same relationship to each 
other as do the original and subsequent review s challenged by the EC in these proceedings.406 
6.14 In US – Softwood Lumber IV (Article 21.5) , the Appellate Body emphasized that Article 21.5 
establishes an "express link" between the measures covered by Article 21.5 and the DSB's 
recommendations and rulings.407  Accordingly, in determining whether particular measures are 
covered by Article 21.5, a compliance panel is to examine whether a close relationship exists between 
those measures, and the measures subject to the DSB's recommendations and rulings.  In conducting 
this analysis, the Appellate Body held that a panel must examine the "connection" between the 
measures challenged under Article 21.5 and the or iginal measures using what was described as a 
"nexus-based test".408  As part of that test, an Article 21.5 panel is to examine the "nature" or "subject 
matter"409 of the measures to establish whether the measure(s) challenged in Article 21.5 proceedings 
and the original measure(s) have a connection in terms of their substance .  With respect to the 
"nature" and "subject matter" of the measures, US – Softwood Lumber IV (Article 21.5)  is highly 
instructive for these proceedings.410   
6.15 In terms of the "nature" and "subject matter", Jap an argues that the links between the original 
and subsequent measures are virtually the same as those that led the Appellate Body, in US – 
Softwood Lumber IV (Article 21.5) , to conclude that a subsequent periodic review was subject to the 
Article 21.5 proceedings.  In particular: 
 the original measures and the subsequent periodic reviews all resulted from anti-
dumping proceedings  conducted by the USDOC; 
 these measures all involved that authority's determination of the dumping margin ; 
 in any given group of measures (identified in the annex to the EC's panel request 
by numbered rows), the subject product is always identical ; 
 in any given group of measures, the exporter is always identical (identified in the 
annex to the EC's panel request in the fifth column); 
                                                      
402 Japan's Third Party Submission, Executive Summary, para. 8, citing Appellate Body Report, 
Canada – Aircraft (Article 21.5) , para. 41 (emphasis added) and Appellate Body Report, US – Softwood 
Lumber IV (Article 21.5) , para. 89.  See also, Opening Statement of Ja pan at the meeting of the Panel with third 
parties (hereinafter "Japan's Op ening  Statement "), para. 5. 
403 Japan's Third Party Submission, Executive Summary, para. 8. 
404 Japan's Third Party Submission, Executive Summary, para. 9, citing Panel Report, Australia – 
Salmon (Article 21.5) , para. 7.10 (sub-para. 22). 
405 Japan's Third Party Submission, Executive Summary, para. 9, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , para. 77. 
406 Japan's Third Party Submission, Executive Summary, para. 9. 
407 Japan's Third Party Submission, Executive Summary, para. 10, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , para. 68. 
408 Japan's Third Party Submission, Executive Summary, para. 10, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , paras. 77 and 79.  See also Ja pan's Opening Statement, para. 6. 
409 Japan's Third Party Submission, Executive Summary para. 11, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , para. 83. 
410 Japan's Third Party Submission, Executive Summary, para. 11. WT/DS294/RW  
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  any given group of measures is adopted pursuant to the same anti-dumping order ; 
and, 
 for any given order, the measures provide succeeding bases for the continued 
imposition of anti-dumping duties on the subject product, with each new measure 
replacing the cash deposit rate of the previous measure, and determining the 
definitive duty rate for entries initially s ubjected to the cash deposit rate of the 
previous measure.
411 
 6.16 Japan considers that another important  parallel between this dispute and US – Softwood 
Lumber IV (Article 21.5)  is that this dispute also concerns " a specific component " of the original 
measures and the subsequent periodic reviews challe nged under Article 21.5; and in both disputes, the 
specific component concerns a calculation methodology applied by the USDOC.
412  The word chosen 
by the United States – "superseded" – expresses clear ly that the challenged periodic reviews are 
substantively linked, creating an unbroken chain of measures in which the newest measure supersedes 
the previous one.413  In this dispute, the connections between  the original and the subsequent periodic 
reviews are extremely close indeed.  The meas ures constitute an unbroken chain that provides 
succeeding legal bases for the  continued imposition  of anti-dumping duties  on the same product  and 
the same exporters , under the same order , and, with respect to each measure, the dispute concerns 
same "specific component" , namely the application of the zeroing methodology.414 
6.17 In sum, Japan asserts that the case-law shows th at a series of closely linked measures adopted 
over time – starting with the original measure s, continuing with measures adopted during 
consultations415, the original proceedings416, and into implementation417 – may all relate to 
"fundamentally the same 'dispute'",418 and all be subject to the DSB's recommendations and rulings in 
that dispute, provided they are substantively the same.419  As Japan has explained, the periodic 
reviews that the EC challenges in  these proceedings constitute just  such a chain of inter-connected 
measures.  Each measure is, in its essence, precisel y the same as the previous "superseded" measure 
with respect to "the specific component"420 that is disputed.  The orig inal measures and the measures 
challenged in these compliance proceedings  all concern the application of the same zeroing 
methodology  to the same products  and the same exporting companies , under the same anti-dumping 
order , and they provide succeeding bases for the continued imposition  of anti-dumping duties under 
that order.421 
                                                      
411 Japan's Third Party Submission, Executive Summary, para. 12.  See also, Japan Opening Statement, 
para. 8. 
412 Japan's Third Party Submission, Executive Summary, para. 13. 
413 Japan's Third Party Submission, Executive Summary, para. 14. 
414 Japan's Third Party Submission, Executive Summary, para. 15. 
415 Japan's Third Party Submission, Executive Summary, citing Appellate Body Report, Brazil – 
Aircraft . 
416 Japan's Third Party Submission, Executive Summary, para. 16, citing Appellate Body Report, Chile 
– Price Band System ; Panel Report, Dominican Republic – Cigarettes ; Panel Report, Argentina – Footwear 
Safeguards , para. 8.45; and Appellate Body Report, EC – Chicken Cuts . 
417 Japan's Third Party Submission, Executive Summary, para. 16, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) ; Panel Report, Australia – Salmon (Article 21.5) , para. 6.5; and Panel 
Report, Australia – Leather (Article 21.5) , para. 7.10. 
418 Japan's Third Party Submission, Executive Summary, para. 16, citing Panel Report, Brazil – 
Aircraft , para. 7.11. 
419 Japan's Third Party Submission, Executive Summary, para. 16. 
420 Japan's Third Party Submission, Executive Summ ary, para. 17,  citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5) , para. 83. 
421 Japan's Third Party Submission, Executive Summary, para. 17.  WT/DS294/RW 
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 6.18 Japan notes that in this dispute, the United States avers that, because the periodic reviews 
challenged in the original proceedings have been superseded by subsequent reviews, no further action 
is required to bring the WTO-inconsistent periodic reviews into conformity with the United States' 
obligations.422  In Japan's view, as a general matter, inaction  by an implementing Member to bring its 
WTO-inconsistent measure into conf ormity with WTO law is justifie d solely in circumstances where 
the measure at issue is no longer legally operational after th e end of the implementation period .  In 
that event, no affirmative action is needed by th e implementing Member to prevent the measure from 
continuing to cause nullification or impairment beca use, by the end of the RPT, the measure has 
ceased to have effects, and the result require d by Article 19.1 of the DSU has already been 
achieved.423 
6.19 For Japan, a WTO-inconsistent measure that is still "operational"424 after the end of the RPT 
continues to cause the nullification or impairment of  benefits at a time when the measure must be 
fully compliant with WTO law.  Such a measure mu st be brought into conformity with the covered 
agreements to ensure that the nullification or impairment ceases.425  In this dispute, the importer-
specific assessment rates in the c ontested periodic reviews have not expired, been revoked, modified 
or replaced in a manner that makes them WTO-consistent.426  The rates continue to be inflated as a 
result of the application of the simple zeroing methodology.  Thus, the amount of duties yet to be collected on the basis of these rates continues to ex ceed the properly determined margin of dumping, 
which is in violation of Article 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 
1994.  In these proceedings, the issue is whether the contested periodic reviews continue to operate in 
this fashion after the end of the RPT.
427 
6.20 Japan notes that if the United States has already  collected the definitive duties, and liquidated 
an entry, before expiration of the RPT, it cannot be  required to undo that action through repayment of 
the duties.428  However, if at the end of the RPT, the United States has not yet taken action to collect 
the definitive duties, and liquidate an entry, its future actions in so doing must be based on an 
importer-specific assessment rate in a periodic review  that has been brought into conformity with 
WTO law.  In Japan's view, the United States has omitted to take any action to bring the periodic 
reviews into conformity with WTO law, and ensure that the importer-specific assessment rate provides a WTO-consistent basis for duty collection after the end of the RPT.
429 
6.21 At the Panel meeting with third parties, Japan focused on two issues:  (1) the scope of these 
compliance proceedings with respect to subseque nt periodic reviews; and (2) the prospective 
character of the implementation action sought by the European Communities ("EC").430 
6.22 Japan noted that the United States argues that periodic reviews not expressly addressed by the 
DSB's recommendations and rulings are outside the scope of these proceedings.  Japan asserted it had  demonstrated, at length, that this Panel has juri sdiction over these periodic reviews, which were 
                                                     
 
422 Japan's Third Party Submission, Executive Summary, para. 18, citing US First Written Submission, 
paras. 96 ff.  See also the US statement to the DSB, WT/DS294/20/Add.6, 20 August 2007. 
423 Japan's Third Party Submission, Executive Summary, para. 19. 
424 Japan's Third Party Submission, Executive Summary, para. 20,  citing Panel Report, EC – 
Commercial Vessels , para. 8.4. 
425 Japan's Third Party Submission, Executive Summary, para. 20. 
426 (original footnote)  Japan references to contested and WTO-inconsistent periodic reviews includes 
all the periodic reviews challenged by the EC that are closely connected to the DSB's recommendations and 
rulings. 
427 Japan's Third Party Submission, Executive Summary, para. 21. 
428 Japan's Third Party Submission, Executive Summary, para. 22. 
429 Japan's Third Party Submission, Executive Summary, para. 23. 
430 Japan's Opening Statement, para. 1. WT/DS294/RW  
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 identified in the EC's Panel Request.
431  Japan did not repeat its written arguments in its opening 
statement but highlighted, briefly, several key points regarding the scope of Article 21.5 of the DSU.  
Japan also notes that the United States has failed to address Japan's written arguments.432  
6.23 Japan observed that the United States argues that  the subsequent periodic reviews challenged 
by the EC are not "measures taken to comply" with in the meaning of Article 21.5 of the DSU and, 
therefore, are outside the scope of these compliance proceedings.433  According to the United States, 
this is because the reviews in qu estion are "separate and distinct"434 and "[n]one of the[se] other 
'measures' . . .  was the basis for a DSB recommendation or ruling."435  The United States requests this 
Panel to find instead "that the only measures within the terms of reference of this proceeding are the 
15 original investigations and 16 administrative revi ews" that were the basis of the recommendations 
and rulings of the DSB.436  However, as Japan demonstrated, there is no support for the United States' 
arguments.437  On the contrary, Article 21.5 panels and the Appellate Body have specifically found 
"separate and distinct" measures – that is, measures no t challenged in the original proceedings – to fall 
within the scope of Article 21.5 of the DSU when t hose measures are closely co nnected to the original 
measures.438   
6.24 In the present dispute, Japan has shown that a close connection exists between the subsequent 
periodic reviews and the original measures that are the subject of the DSB's recommendations and 
rulings.439  In US – Softwood Lumber IV (Article 21.5) , the Appellate Body also concluded that the 
new measure at issue – that is, the subsequent peri odic review – "directly affected" the United States' 
compliance with the DSB's recommendations and rulings.440  Similarly, the periodic reviews 
challenged by the EC in the present dispute have a direct effect on the United States' compliance by 
moving the United States away from compliance with each successive review undertaken under a 
given anti-dumping order.441   
6.25 Moreover, as Japan explained442, the United States' claim that measures covered by 
Article 21.5 of the DSU are those "taken in the direction of, or for the purpose of achieving compliance [with the recommendations and rulings of the DSB]"
443 is devoid of support.  In fact, the 
Appellate Body reached the exact opposite conclusion in US – Softwood Lumber IV (Article 21.5) .  
Recognizing that Article 21.5 of the DSU provid es a mechanism by which to assess compliance, 
while also accepting that implementing Members may fail to adopt any compliance measures, the 
Appellate Body concluded that "measures taken to  comply" may include measures that move away 
                                                      
431 Japan's Third Party Submission, paras. 7-75. 
432 Japan's Opening Statement, para. 2. 
433 Japan's Opening Statement, para. 3, citing US Fi rst Written Submission, paras. 36-47; US Rebuttal 
Submission, paras. 28-32. 
434 Japan's Opening Statement, para. 3, citing US First Written Submission, para. 42.   
435 Japan's Opening Statement, para. 3, citing US First Written Submission, para. 40.   
436 Japan's Opening Statement, para. 3 citing US First Written Submission, para. 54 and  US Rebuttal 
Submission, para. 32. 
437 Japan's Opening Statement, para. 4, citing Japan's Third Party Submission, paras. 7-75. 
438 Japan's Opening Statement, para. 4, citing Japan's Third Party Submission, paras. 27-32 
439 Japan's Opening Statement, para. 7, citing Japan's Third Party Submission, paras. 45-75. 
440 Japan's Opening Statement, para. 9, citing Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5) , para. 85. 
441 Japan's Opening Statement, para. 9. 
442 Japan's Opening Statement, para. 10, citing Japan's Third Party Submission, paras. 21-26. 
443 Japan's Opening Statement, para. 10, citing US First Written Submission, para. 38 (emphasis in 
original omitted).  WT/DS294/RW 
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 from, and do not have the objective of achieving, compliance.444  Japan notes that the United States 
did not respond to Japan's argument in its Rebuttal Submission.445 
6.26 Finally, contrary to the United States' claim, Ja pan asserts that the timing of the adoption of a 
subsequent measure is not the decisive criterion in determining whether that measure is covered under 
Article 21.5 of the DSU.  Otherwise, a Member woul d be able to circumvent  Article 21.5 proceedings 
by adopting new measures, even ones very closed c onnected to the original measures, prior to the 
adoption of the DSB's recommendations and ruli ngs.  Moreover, as the Appellate Body has 
emphasized, a measure may be subject to Article  21.5 of the DSU, even though it was not adopted 
with the intention of complying with the DSB's recommendations and rulings.  The crucial consideration is whether, viewed as a whole, su fficiently close links exist between the original 
measure and the new measure.
446  Furthermore, with respect to the facts surrounding the periodic 
reviews taken before the adoption of the DSB's recommendations and rulings, Japan notes that an 
important temporal connection ex ists between these reviews and the recommendations and rulings 
because, after adoption, the United States issues liquidation instructions and payment notices pursuant 
to these reviews.  Thus, besides the substantiv e connections already addressed, these measures enjoy 
important temporal links with the DSB's recommendations and rulings.447   
6.27 In short, as discussed in greater detail in Jap an's written submission, the periodic reviews 
challenged by the EC are closely connected to the or iginal measures that are the subject of the DSB's 
recommendations and rulings and therefore ar e within the jurisdiction of this Panel.448 
6.28 According to Japan, the question before the compliance Panel is whether the United States 
must amend the WTO-inconsistent periodic reviews at  issue by the end of reasonable period of time 
or "RPT" in order to ensure that, after the e nd of the RPT, any definitive anti-dumping duties are 
collected pursuant to revised review determinations  that are consistent with Article 9.3 of the Anti-
Dumping Agreement .449  The United States contends that, on implementation, it was not required to 
take any action to change the WTO-incons istent periodic reviews with respect to imports that had 
occurred before the end of the RPT .  As regards these imports, the United States believes that it can 
collect definitive duties, after the end of the RPT,  on the basis of periodic reviews that should have 
been brought into conformity with WTO law by that time.450  The United States argues that "the text 
of the GATT 1994 and the Anti-Dumping Agreement  confirms that it is the legal regime in existence 
at the time that an import enters  the Member's territory that dete rmines whether the import is liable 
for the payment of anti-dumping duties."451  In support of this argument, the United States relies on 
Articles VI:2 and VI:6(a) of the GATT 1994, and Articles 8.6, 10.1, 10.6, and 10.8 of the Anti-
Dumping Agreement .452  The United States' reliance on these provisions, however, is misplaced.453 
6.29 In Japan's view, these provisions establish that the importation of goods is an event  that 
triggers potential  liability to pay anti-dumping duties.  Furthermore, the provisions set forth 
obligations limiting the retroactive application of an anti-dumping measure.  The United States 
                                                      
444 Japan's Opening Statement, para. 10, citing Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5) , paras. 66-67. 
445 Japan's Opening Statement, para. 10. 
446 Japan's Opening Statement, para. 11, citing Japan, Third Party Submission, paras. 61-75. 
447 Japan's Opening Statement, para. 12. 
448 Japan's, Opening Statement, para. 13. 
449 Japan's Opening Statement, para. 15. 
450 Japan's Opening Statement, para. 16. 
451 Japan's Opening Statement, para. 17, citing US Rebuttal Submission, para. 38. 
452 Japan's Opening Statement, para. 17, citing US Rebuttal Submission, paras. 38-42. 
453 Japan's Opening Statement, para. 17. WT/DS294/RW  
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 appears to believe that, provided it respects these ru les, no other WTO obligatio ns apply to its actions 
after importation , including the determination of the amount of definitive anti-dumping duties due.
454 
6.30 The United States' argument ignores, in particular, Article 9.3 of the Anti-Dumping 
Agreement , the very provision that the United States was found to have violated.  Under that 
provision, irrespective of the "legal regime", or le gal framework, that applies to an individual import 
on the date of importation, a Member is required to take action, long after importation , to ensure that 
the amount of definitive anti-dumping duties collected  does not exceed the margin of dumping.  The 
mere fact that a Member correctly applies the provisions cited by the United States on importation does not mean that it is liberated from its obligations under Article 9.3 to ensure that the amount of definitive anti-dumping duties collected does not exceed the margin of dumping.
455 
6.31 The same holds true on implementation.  For these purposes, Japan assu mes that, at the time 
of importation, the United States correctly applied th e legal provisions it cites with respect to the 
entries covered by the WTO-inconsistent periodic re views at issue.  However, by so doing, the 
United States was not absolved of its duty to comply with other provisions of the Anti-Dumping 
Agreement , including Article 9.3, when conducting the peri odic reviews with respect to those entries.  
Likewise, having initially failed to comply with Ar ticle 9.3, the United States is not exonerated from 
its duty to bring the periodic reviews into conform ity with Article 9.3 simply because, at the time of 
importation, it respected the provisions it cites.456 
6.32 The existence of the review procedure in Article  9.3, which is always carried out long after 
importation, demonstrates another fallacy in the Unite d States' argument.  To recall, the United States 
argues that the "legal regime" that applied at the time of importation determin es "whether [an] import 
is liable" for anti-dumping duties, and a Member is not required to change that "legal regime" during 
implementation.457  The premise of this argument is that alte ring the "legal regime" that applied at the 
time of importation would retrospectively "undo" a legal situation definitively fixed on importation.458 
6.33 Japan considers that the United States' argument is  wrong.  The "legal regime" that applies to 
an import at the time of importation is merely provisional , and notably does not even include the 
contested periodic reviews  that were adopted, under Article 9.3, long after importation .  The 
United States itself recognizes that , at the time of importation, the importing Member establishes only 
that an import is potentially  liable for duties.  Indeed, the United States even argues that, on 
importation into the United States, no anti-dumping du ties are paid, and a cash deposit is paid merely 
as a form of security, pending the determination and collection of definitive duties some time  after 
importation .459 
6.34 Whether the cash deposit is regarded as a secu rity or as anti-dumping duties, Japan agrees 
with the following statement: 
"The United States argues that in no case is assessment  – whether at the cash deposit 
rate or otherwise – conducted at the time of entry , and in all cases the cash deposit 
collected at the time of entry is a baseline proxy of the amount that may ultimately be 
assessed, and is never itself the final liability. "460 
                                                      
454 Japan's Opening Statement, para. 18. 
455 Japan's Opening Statement, para. 19. 
456 Japan's Opening Statement, para. 20. 
457 Japan's Opening Statement, para. 21, citing US Rebuttal Submission, para. 38. 
458 Japan's Opening Statement, para. 21. 
459 Japan's Opening Statement, para. 22, citing US Rebuttal Submission, para. 40. 
460 Japan's Opening Statement, para. 23, citing Panel Report, US – Customs Bond Directive , para. 7.89 
(emphasis added).  WT/DS294/RW 
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 6.35 In other words, Japan asserts, the United States accepts – as it must – that, at the time of 
importation, solely a potential  liability for duties arises, a nd this potential liability "is never  itself the 
final liability".  Thus, the "legal regime" that a pplies to an entry at the time of importation is a 
provisional regime that serves merely as a " baseline proxy " pending the subsequent  determination of 
the " final liability ".461  The consequence of the provisional  character of the "legal regime" in place at 
the time of importation is that, at that time , the importing Member does not definitively establish any 
right to collect a specific amount of anti-dumping duti es.  Instead, when a peri odic review occurs, that 
right is established much later in the procedure under Article 9.3.462 
6.36 For example, in the United States' system, at the time of importation, a cash deposit is paid for 
the duties potentially due on the imported merchandise.  Only later, in a subsequent periodic review, 
is the "final liability" established in the importer-sp ecific assessment rate – which may be more or less 
than the cash deposit rate – and definitive duties are subsequently collected on each import at the 
importer-specific assessment rate.  A WTO-consiste nt periodic review may even determine that no 
duties are due on entries that were potentially liable for duties at the time of importation, which leads to a refund of the deposit.
463  Thus, a periodic review under Article 9.3 establishes a new "legal 
regime"  that replaces the provisional  regime that applied, at the time of importation, pursuant to other 
provisions of the Anti-Dumping Agreement  and the GATT 1994.464  
6.37 As a result, Japan argues, there is a logical in consistency in the United States' argument.  Its 
excuse for not correcting the WTO-inconsistent periodic reviews is that the provisional  "legal regime" 
that applied on importation as a "baseline proxy" canno t be changed.  However, that provisional "legal 
regime" has already been changed by the periodic reviews at issue , which establish the "final 
liability" for anti-dumping duties.465  Thus, again, the United States' arguments ignore the significance 
of Article 9.3.  First , as noted above, as a matter of law, Article 9.3 imposes obligations on the 
United States additional  to those it cites;466 and second , as a matter of fact, the contested periodic 
reviews carried out under Article 9.3 had already changed  the provisional "legal regime" that the 
United States now argues must be preserved.467 
6.38 Japan, therefore, sees no basis in law or in f act for the United States' argument that the 
periodic reviews cannot be brought into conformity with WTO law simply because a long-since-
changed  provisional "legal regime" must be preserved.   Indeed, the fact that the United States has 
already changed the provisional "legal regime" once – when it adopted the contested periodic reviews 
– demonstrates that the alleged need to preserve the provisional "legal regime" is, in reality, not an impediment to changing the "legal regime" again, by bringing the periodic reviews into conformity 
with WTO law.
468  
6.39 Finally, the "legal regime" in existence at th e time of importation is not without significance 
because it fixes the universe of imports that are poten tially liable to anti-dumping duties.  Bringing the 
periodic reviews into conformity with WTO law does not alter that universe – if and when the 
periodic reviews are brought into conformity with WT O law, the same entries that were potentially 
liable to duties at the time of importation will con tinue to be potentially liable to duties following 
implementation.  However, the amount of definitive duties collected on these entries, after the end of 
the RPT, cannot exceed a WTO-consistent margin of dumping, as required by Article 9.3 of the Anti-
                                                      
461 Japan's Opening Statement, para. 24. 
462 Japan's Opening Statement, para. 25. 
463 Japan's Opening Statement, para. 26. 
464 Japan's Opening Statement, para. 27. 
465 Japan's Opening Statement, para. 28. 
466 Japan's Opening Statement, para. 29, referring to paras. 15-20 of its Opening Statement. 
467 Japan's Opening Statement, para. 29. 
468 Japan's Opening Statement, para. 30. WT/DS294/RW  
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 Dumping Agreement  and Article VI:2 of the GATT 1994.
469  In sum, given the provisional character 
of the "legal regime" in place at the time of importation, the United States is wrong to suggest that requiring a Member to bring a periodic review into conformity with WTO law by the end of the RPT 
would change a legal situation definiti vely fixed at the time of importation.
470   
6.40 For Japan, the United States' argument that its  implementation obligations apply solely to new 
entries that occur on or after the end of the RPT  produces absurd consequences that nullify the 
disciplines in Article 9.3 of the Anti-Dumping Agreement .471  By definition, new entries that occur on 
or after the end of the RPT are not covered by the WTO-inconsistent periodic reviews at issue, which 
relate solely to past entries.  The new entries would necessarily be subject to a new periodic review 
that, in the United States' view, would have to be challenged in a new WTO proceeding.  Yet, if that 
new review were WTO-inconsistent, the United St ates contends that no implementation obligations 
would apply because the new review, by defi nition, covers entries that occurred before  the end of the 
new RPT.472  In short, the United States' argument creates a "Catch-22" that deprives exporting 
Members of the protection afforded by Article 9.3:   viewed from the perspective of the end of the 
RPT, a WTO-inconsistent periodic review always relates to past entries , whereas the WTO 
implementation obligations with respect to that review could apply solely to future entries .473  
6.41 Japan asserts that the consequence of this argume nt is that an individual "as applied" periodic 
review is totally immune  from the disciplines in Article 9.3.  Ignoring the requirements of that 
provision, a Member could always determine a WTO- inconsistent "margin of  dumping" in a review, 
and there would be no obligation to bring the peri odic review into conformity with WTO law because, 
by definition , the WTO-inconsistent periodic review relates to entries that occurred before the end of 
the RPT.  Implementing the review with respect to future entries would be both impossible and 
meaningless because these entries are not subject to the review at issue.  The United States' circular 
argument, therefore, eviscerates Article 9.3.474 
6.42 The United States' argument also reduces to a nullity its obligation to bring the WTO-
inconsistent reviews into conformity with WTO law.  Despite the explicit terms of the 
recommendations and rulings made regarding th e WTO-inconsistent periodic reviews, the 
United States believes that no action is required with  respect to these measures because they relate to 
past entries.475   
6.43 In Japan's view, the decisive issue in decidi ng whether the United States must modify the 
WTO-inconsistent periodic reviews is whether these reviews continue to produce legal effects after 
the end of the RPT .  If a review continues to operate after that  date, it must be modified to ensure that 
it is applied in the future in a WTO-consistent fashion.476  Japan's written submission explains how the 
importer-specific assessment rate in a periodic re view continues to be legally operational until 
definitive duties are collected, and entries liquidated, on the basis of the review.477  Thus, where the 
United States collects definitive duties on entr ies covered by a contested periodic review after the end 
of the RPT , it does so by applying the importer-specifi c assessment rate determined in the review478.479  
                                                      
469 Japan's Opening Statement, para. 31. 
470 Japan's Opening Statement, para. 32. 
471 Japan's Opening Statement, para. 33, citing US Rebuttal Submission, para. 44. 
472 Japan's Opening Statement, para. 34. 
473 Japan's Opening Statement, para. 35. 
474 Japan's Opening Statement, para. 36. 
475 Japan's Opening Statement, para. 37. 
476 Japan's Opening Statement, para. 38. 
477 Japan's Third Party Submission, paras. 78, 80-83. 
478 Japan's Third Party Submission, paras. 78, 80-83. 
479 Japan's Opening Statement, para. 39.  WT/DS294/RW 
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 6.44 Accordingly, Japan considers that with respect  to any periodic reviews for which there are 
unliquidated entries at the end of the RPT, the DSB's recommendations and rulings require the United 
States to bring the measure into conformity with WTO law to ensure that it is applied in a WTO-
consistent fashion after the RPT expires.  In s hort, after the end of the RPT, the United States' 
subsequent actions taken pursuant to the contested  periodic reviews must be WTO-consistent.  The 
United States should have ensured that they were  WTO-consistent by re-calculating the importer-
specific assessment rate without zeroing by the end of the RPT.480 
6.45 Japan emphasizes that, by correcting the importer-specific assessment rate, the United States 
would not retrospectively "undo" a legal situation definitively fixed at an earlier time.  The EC's 
claims focus on situations where liquidation had not occurred by the end of the RPT.  Prior to 
liquidation, the United States has not collected any definitive anti-dumping duties.  Thus, there is no 
question of repaying  duties that have already been definitivel y collected on an entry.  Nor does the EC 
seek to reduce retrospectively the cash deposit coll ected on the entries in question.  Instead, the 
implementation of DSB's recommendations and rulings ensures the WTO-consistency of the 
United States' future actions  in collecting definitive duties for the first time  after the end of the 
RPT.481 
6.46 Concerning the equal footing between the re trospective duty assessment system and the 
prospective duty assessment system, Japan disagrees with the United States' argument that this 
interpretation places "retrospective" duty assessment  systems at a disadvantage compared with 
"prospective" systems.482  The same interpretive principles apply to both systems.  A periodic review 
may occur under either system.  If that periodic revi ew is found to be WTO-inconsistent, it must be 
brought into conformity with WTO law to the extent  that the review remains legally operational after 
the end of the RPT.  In other words, even in a prospective duty assessment system under Article 9.3.2, 
once the DSB finds that a final liability determined th rough this system is inconsistent with certain 
provisions of the anti-dumping agreement, as long as th e entries concerned have not been liquidated at 
the time of expiration of the RPT, the importing Memb er is required to re-calculate the margin of 
dumping and apply this newly calculated margins in  the coming liquidation procedures in order to 
comply with the DSB's recommendation and rulings.  In both systems, a periodic review could continue to produce legal effects well after the e nd of the RPT because, for example, a Member's 
actions pursuant to that review are delayed by domestic litigation regarding the review.
483 
6.47 As Japan described in its third party submission and this oral statement, in order to comply 
with the DSB's recommendation and rulings concerning the periodic reviews, fi rst, the United States 
is not allowed to liquidate entries subject to this  proceedings with the margins of dumping calculated 
with zeroing after the end of RPT.  Second, the United States was required to take positive actions, 
i.e., recalculation of the margins of dumping without zeroi ng, by the end of the RPT in order to ensure 
that the USDOC and the USCBP would not liquidate  these entries in a WTO inconsistent manner.  484 
3. Korea 
6.48 Korea observes that it has systemic interests in  the interpretation and application of various 
provisions of the Anti-Dumping Agreement , which, individually and collectively, prohibit the 
utilization of the zeroing practice in all proceedings regulated by the Anti-Dumping Agreement .  
                                                      
480 Japan's Opening Statement, para. 40. 
481 Japan's Opening Statement, para. 41. 
482 Japan's Opening Statement, para. 42, citing US Rebuttal Submission, paras. 45 and 46. 
483 Japan's Opening Statement, para. 42. 
484 Japan's Opening Statement, para. 43. WT/DS294/RW  
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 Therefore, Korea reserved its third party rights pursuant to Article 10.2 of Understanding on Rules 
and Procedures Governing the Settlement of Dispute ("DSU").
485 
6.49 In Korea's view, although the Appellate Body unequivocally held that the USDOC's 
application of "zeroing" in both the original inves tigations and subsequent re views constitute violation 
of relevant provisions of the Anti-Dumping Agreement , the United States simply failed to implement 
the recommendations.  The United States resorts to various technical elements of its domestic 
procedure to avoid the implementation, to dela y the implementation as much as possible or to 
effectively neutralize the effect of the decision of the Appellate Body in the original dispute.486  Korea 
therefore supports the arguments raised by the EC  in its first submission dated 11 January 2008.  
Korea offers its comments below on certain core issu es discussed in the submissions of the disputing 
parties.  For the interest of brevity, Korea only focuses on some key issues in Korea's opinion.  This 
should not be interpreted as Korea approving US positions in other issues omitted in this 
submission.487 
6.50 Korea notes that, in its decision of April 18, 2006 , the Appellate Body held that the utilization 
of zeroing by the United States Department of Co mmerce ("USDOC") in challenged administrative 
reviews constitutes violation of Article 9.3 of the Anti-Dumping Agreement .488  The Appellate Body 
thus recommended that the United States bring the me asure into conformity with its obligations under 
the Anti-Dumping Agreement .  The EC and the United States agreed upon an RPT of 11 months, 
which ended on 9 April 2007.489 
6.51 Regarding 16 administrative reviews challenge d in the original dispute, however, Korea 
contends that the United States effectively ignore d the recommendation of the Appellate Body.  The 
United States now attempts to justify its position by arguing that in each administrative review case, a 
prior administrative review is superseded by a s ubsequent review, and that since the administrative 
reviews challenged in the original dispute do not ex ist any more, the United States is not required to 
do anything to implement.490  In Korea's view, however, the US position completely misconstrues the 
operating mechanism of an administrative review  and seriously threatens to undermine the basic 
purpose of the dispute settlement procedure of the WTO.  Such interpretation would make it 
impossible for a Member, who successfully challenged  an administrative review by another Member, 
to get a viable remedy.491 
6.52 It appears that the United States equates the completion of a new administrative review with 
the termination of the previous review.  In Korea' s view, however, that is not the case.  Unlike other 
instances where a measure is terminated, an admini strative review does not simply disappear when a 
new, subsequent review is under way or completed.  The results of the previous review still affect 
interested parties and subseque nt, equally critical, procedures.492  For instance, a cash deposit rate 
(that is, inflated by zeroing) will continue to be applied before it is replaced with a new one, which 
directly affects foreign respondents and importers  of the subject merchandise.  Likewise, a zero 
margin in one review may be combined with previ ous or subsequent zero margins to potentially lead 
                                                      
485 Third Party Submission of Korea (hereinafter "Korea's Third Party Submission"), para. 1. 
486 Korea's Third Party Submission, para. 2.  See also , Korea, Opening Statemen t at the meeting of the 
Panel with third parties (hereinafter "Korea's Opening Stat ement"), para. 2. 
487 Korea's Third Party Submission, para. 3. 
488 Korea's Third Party Submission, para. 4, citing Appellate Body Report, US – Zeroing (EC) , 
para. 263(a)(i). 
489 Korea's Third Party Submission, para. 4. 
490 Korea's Third Party Submission, para. 5.  S ee also, Korea's Opening  Statement, Executive 
Summary, para.3. 
491 Korea's Third Party Submission, para. 6.  S ee also, Korea's Opening  Statement, Executive 
Summary, para.4. 
492 Korea's Third Party Submission, para. 7.    WT/DS294/RW 
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 to revocation of the underlying order.493  A zero or low margin in an administrative review is also an 
important factor to be taken into account when th e underlying order is subject to a sunset review494 495 
6.53 Therefore, Korea considers that by all account s, an administrative review has not been 
terminated yet simply because there is a new admi nistrative review going on or completed.  An 
administrative review found to be WTO-inconsistent  thus equally requires adequate implementation 
by the losing party irrespective of existence or completion of a subsequent review or reviews.496 
6.54 In Korea's opinion, each administrative review ex amined in the original dispute constitutes a 
distinct measure that has not been terminated yet and that has a continuing effect to the foreign 
manufacturers or importers.  By maintaining that the previous reviews have been superseded by 
subsequent reviews, the United States simply attempts to create a fiction which does not reflect 
reality.  As a matter of fact, as a measure an admi nistrative review can only be terminated when the 
underlying order is terminated, either through a sun set review, a changed circumstances review or for 
some other grounds.497   
6.55 Furthermore, Korea contends, the US position w ould lead to bizarre consequences.  If we 
adopt the US logic, no Member could successfully challenge an administrative review at the WTO 
dispute settlement procedure or even if the Memb er is successful, it cannot hope for an effective 
remedy.  Given that an administrative review  takes about a year followed by continuing 
administrative reviews on an annual basis, it is almost  certain that there is always a new review going 
on or completed by the time a panel procedure rega rding an administrative review of a Member is 
completed.498  Thus, it would be like "chasing a ghost" from the perspective of the Member 
challenging the measure.  A challenged measure is al ways gone or terminated by the time a panel 
reaches its decision and the Member is required to initiate a new dispute to challenge a subsequent 
review, which would also be gone by the time that pa nel reaches its decision.  Such being the case, the 
US position effectively insulates administrative reviews from any meaningful oversight by a panel or the Appellate Body.  Given the significant role an  administrative plays in the operation of domestic 
Anti-dumping proceedings of Members and detailed obligations laid out in the Anti-Dumping 
Agreement  relating to administrative reviews, such  a position should be flatly rejected.
499   
6.56 In the light of the above, Korea requests th e Panel to reject the US position that all 
administrative reviews originally challenged did not require any action on the part of the United States 
simply because there were subsequent reviews afterw ards.  Korea requests the Panel to hold that the 
United States failed to implement the recommendation in this respect.500 
6.57 Korea asserts that for a losing Member to co mply with the recommendation of the Appellate 
Body, the Member must "withdraw" or "eliminate" the measure, or take otherwise comparable action, 
before  the expiration of the RPT.  If the challenged measure continues for whatever reason after the 
lapse of the RPT, the Member has simply  failed to comply with the recommendation.501  In the 
original dispute, the United Stat es agreed to an RPT of 11 months and it ended on 9 April 2007.  
                                                      
493 Korea's Third Party Submission, para. 8, citing Code of Federal Regulation of the USDOC , 
Section 351.222(b). 
494 Korea's Third Party Submission, para. 8, citing Code of Federal Regulation of the USDOC , 
Section 351.218(d). 
495 Korea's Third Party Submission, para. 8. 
496 Korea's Third Party Submission, para. 9.  S ee also, Korea's Opening  Statement, Executive 
Summary, para.6. 
497 Korea's Third Party Submission, para. 10. 
498 Korea's Third Party Submission, para. 11. 
499 Korea's Third Party Submission, para. 12. 
500 Korea's Third Party Submission, para. 13. 
501 Korea's Third Party Submission, para. 14. WT/DS294/RW  
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 Therefore, if any aspect of the challenged measure  which has been confirmed by the panel and the 
Appellate Body to be WTO-inconsistent continues after 9 April 2007, it simply constitutes US failure 
to comply with the recommendation.
502 
6.58 In this case, the record evid ence proves that the USDOC continued to apply the zeroing 
practice for original investigations and administra tive reviews after 9 April 2007.  The United States, 
therefore, simply failed to implem ent the recommendation in due course.503  Here again, however, the 
United States attempts to avoi d the required implementation by imposing a technical "timing" 
element.  In its 129 Determinations, the USDOC states  that the effect of the Determinations will apply 
only to entries made on or after  the date on which the USTR directs the USDOC to implement an 
adverse ruling of the DSB (9  April 2007 in this case).504  In other words, as long as particular subject 
merchandise entered the United States customs territory before  9 April 2007, the merchandise will not 
be affected by the 129 Determinations and will be subject to model or simple zeroing, even if the 
liquidation or other consummation of procedures occurs after the date.505 
6.59 Korea considers that what was challenged and f ound to be WTO-inconsistent in the original 
dispute was a "measure" called "zeroing."  The origin al dispute was not about dates of entries or any 
other date for that matter.  The United States cannot try to minimize or circumvent the impact of the 
DSB recommendation by simply establish ing an arbitrary entry date deadline.506  In Korea's view, it 
does not and should not matter when an entry date w as for a particular subject product in the current 
process.  What matters instead is whether a challenged measure which was found to be WTO-
inconsistent is still maintained even if the RPT has lapsed.  As long as the m easure continues as of the 
date of the RPT expiration, the Member has failed to implement the recommendation.507  In this case, 
the USDOC continues to apply the zeroing methodol ogy for certain original investigations and 
administrative reviews even after 9 April 2007.  Th is should be dispositive in this inquiry and the 
Panel should find for the EC for this issue.508 
6.60 Korea argues that in conducting a sunset revi ew, the margins and results of the original 
investigations and administrative reviews are regarded by the USDOC as key factors in reaching a 
likelihood determination.509  If applicable margins or results are inflated as a result of the application 
of zeroing and if the inflated data are then taken in to account in a sunset review, such a sunset review 
also constitutes violation of relevant provisions of the Anti-Dumping Agreement , such as Articles 2.1, 
2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement .510 
6.61 In Korea's view, the sunset reviews of the USDOC cannot be separated from previous anti-
dumping proceedings.  Rather, considering the way it is implemented, sunset reviews are more or less 
an extension of previous findings  or prediction based on previous findings, to the extent the USDOC 
                                                      
502 Korea's Third Party Submission, para. 15.  S ee also, Korea's Opening  Statement, Executive 
Summary, para.7. 
503 Korea's Third Party Submission, para. 16. 
504 Korea's Third Party Submission, para. 17, citing United States Department of Commerce, Issues and 
Decision Memorandum for the Final Results of he Section 129 Determinations (9 April 2007), at 17. 
505 Korea's Third Party Submission, para. 17.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 8. 
506 Korea's Third Party Submission, para. 18.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 9. 
507 Korea's Third Party Submission, para. 19.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 10. 
508 Korea's Third Party Submission, para. 20.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 11. 
509 Korea's Third Party Submission, para. 21, citing  Code of Federal Regulation of the USDOC , 
Section 351.218(d). 
510 Korea's Third Party Submission, para. 21.  WT/DS294/RW 
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 relies on dumping margins calculated in a prior origin al investigation or an administrative review as 
the basis for the sunset review's likelihood determinat ion.  Therefore, Korea submits that the violation 
of these provisions is unavoidable.511 
6.62 Korea considers that despite the Appellate Body 's decisions and recommendations to bring its 
measures into conformity, the United States has si mply failed to do so.  Nor have the USDOC's 
129 Determinations adequately addressed the decisi ons and recommendations of the Appellate Body.  
The United States repeatedly a ttempts to locate loopholes in DSB recommendations and technical 
requirements in its domestic statutes for an apparent reason:  to refuse to accept the decisions of the Appellate Body.
512 
6.63 At the Panel meeting with third parties, Korea agreed with the EC that, not only an 
affirmative action to implement an adverse ruling of the Appellate Body, but also omissions and 
deficiencies thereof clearly fall under the jurisdictio n of an implementation panel.  Korea notes that 
the EC is challenging in this proceeding not onl y an affirmative action by the United States ( i.e., its 
Determinations under 129), but also omissions of the United States to take a necessary step to comply 
with the decisions of the Appellate Body.513 
6.64 Furthermore, what the EC seeks in this proceed ing is a prospective remedy.  The EC is not 
asking the Panel to provide a remedy that applies retrospectively.  All it points out is that the 
United States continues to fail to el iminate the zeroing practice at issue after  the lapse of the RPT ( i.e., 
9 April 2007).  This clearly constitut es a request for a prospective remedy.514  Korea respectfully 
submits that for the reasons stated above the Panel should hold that the United States failed to comply 
with recommendations of the DSB in the original dispute.515 
4. Norway 
6.65 As a third party to this dispute, Norway a ddresses the following issues discussed in the First 
Written Submission of the EC and United States: 
• What measures are included in the scope of this  proceeding – in other words – what measures 
are within the Panel's jurisdiction; and  
• The extension of the measures challenged in th e original dispute pursuant to sunset review 
proceedings which relied on dumping margins calculated with the use of zeroing.516 
 
6.66 Norway notes the EC claims that in addition to the measures that the United States recognizes 
as being taken to comply, also measures that have confirmed, superseded and replaced the original 
measures may be included in the scope of the current proceedings.517  The United States, on the other 
hand, sets out that the EC attempts to "include certa in determinations within the terms of reference of 
this proceeding (…) that are not measures taken to comply".518 In addition, the United States claims 
                                                      
511 Korea's Third Party Submission, para. 22. 
512 Korea's Third Party Submission, para. 23.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 14. 
513 Korea's Opening Statement, para. 12. 
514 Korea's Opening Statement, para. 13. 
515 Korea's Third Party Submission, para. 24.  S ee also, Korea's Opening  Statement, Executive 
Summary, para. 15. 
516 Executive Summary of the Third Party Submission of Norway (hereinafter "Norway's Third Party 
Submission, Executive Summary"), para. 1. 
517 Norway's Third Party Submission, para. 2,  citing EC First Written Submission, para. 47. 
518 Norway's Third Party Submission, para. 3, citi ng United States First Written Submission, para. 30. WT/DS294/RW  
Page 82  
 
 that the administrative reviews and the sunset reviews are not properly identified in the Panel request 
submitted by the EC.
519  This point will not be discussed by Norway.520 
6.67 Norway observes that Article 21.5 of th e Dispute Settlement Understanding (DSU) 
determines the scope of a Panel's jurisdiction in compliance proceedings.  Panels and the Appellate 
Body have ruled on the scope of this Article several  times, and set out the correct legal interpretation 
to be given to the provision.521  It follows from the wording of Article 21.5 that both positive acts 
taken to comply and omissions are covered.   The Appellate Body confirmed this in US – Softwood 
Lumber IV (21.5 – Canada) .522 A complaining Member may thus challenge measures that have been 
adopted to comply with the recommendations and rulings  of the DSB ("consistency"), but also lack of 
such measures ("existence").523  Further, Panels and the Appellate Bo dy have underlined that it is not 
up to the complaining Member alone to determin e what constitute a measure taken to comply.  
Rather, it is for the panel to  make this determination.524  To assist a panel in making a decision on 
what is a measure taken to comply, the Appellate  Body has identified some additional criteria, 
requiring the panel to scrutinize the relationship be tween the relevant measures and to examine the 
timing, nature and effects of the various measures.525  
6.68 The EC claims that the United States after the end of the reasonable period of time continued 
to take positive acts, including administrative review investigations, assessment instructions and final 
liquidations, based on zeroing.526  The EC is of the opinion that the Panel may examine these acts as 
parts of the current proceeding, and it "challenges the omissions by the United States to take the 
necessary measures to comply in this case".527  The United States disagrees with the view set out by 
the EC, and contends that none of  the subsequent review procee dings and assessment instructions 
mentioned by the EC are measures taken to comply 528  
6.69 As is set out above, both omi ssions and positive acts are covered by Article 21.5.  Any 
subsequent administrative reviews, assessment inst ructions and liquidations based on zeroing must in 
Norway's opinion be viewed as evidencing omissions to comply with the recommendations and rulings by the DSB, and as such be within the Pa nel's jurisdiction.  The United States should after the 
reasonable period of time have stopped collecting anti-dumping duties calculated with the use of 
zeroing in connection with any of the measures that were part of the original dispute, as well as in connection with any administrative review of the dumping margins in these cases.  The same 
assessment goes for the contested sunset reviews:   The United States was under an obligation to 
recalculate without the use of zeroing the previous du mping margins, in order to rely in these margins 
when assessing the likelihood of recurrence of dumping in sunset review proceedings.  The omission 
to do so falls within the Panel's jurisdiction.
529 
                                                      
519 Norway's Third Party Submission, para. 3, citing United States First Written Submission, paras. 33, 
34 and 53. 
520 Norway's Third Party Submission, para. 3. 
521 Norway's Third Party Submission, para. 4. 
522 Norway's Third Party Submission, para. 5, citing Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5 – Canada) , para. 67. 
523 Norway's Third Party Submission, para. 5. 
524 Norway's Third Party Submission, para. 6, citing Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5 – Canada) , para. 73 with references. 
525 Norway's Third Party Submission, para. 6, citing Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5 – Canada) , para. 77. 
526 Norway's Third Party Submission, para. 7, citing EC First Written Submission, para. 6. 
527 Norway's Third Party Submission, para. 7, citing EC First Written Submission, para. 60. 
528 Norway's Third Party Submission, para. 8, citing US First Written Submission, para. 46. 
529 Norway's Third Party Submission, para. 9.  WT/DS294/RW 
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 6.70 The United States argues that the determinations attacked by the EC were not part of the 
original panel proceeding, and that there con sequently are no DSB recommendations and rulings 
relating to these determinations, and that the de terminations cannot fall within the scope of 
Article 21.5.  Regarding this argument, Norway  would like to point out that the panel in US – 
Subsidies on Upland Cotton (21.5 – Brazil)  found that even if a measure has not been the subject of 
DSB's recommendations and rulings in the original pr oceeding, a "claim relating to a measure that has 
sufficiently close nexus with the measure taken to comply or with the DSB recommendations and 
rulings in the original proceeding can be within the scope of Article 21.5.530 
6.71 As mentioned, the Appellate Body has set out th ree elements – nature, effect and timing – as 
additional criteria when assessing whether a measure wh ich is not declared by the respondent to be a 
"measure taken to comply" nevertheless may be characterized as such.  In Norway's opinion, a 
consideration of these three elements with regard  to the current case, supports the view that the 
determinations that constitute the contested omissions must be evaluated as having a sufficiently close 
relationship with the recommendations and rulings of  the DSB to be included in the scope of the 
proceeding.531 
6.72 As regards nature, there can be no doubt that there exist a clear link between the measures in 
the original dispute and the contested administrativ e and sunset reviews.  The dumping determinations 
(with zeroing) that were found to violate the Anti-Dumping Agreement in the original dispute are the 
ones that are reviewed and continued in the contested reviews.  The effect of these administrative and 
sunset reviews is to continue the violations of the Anti-Dumping Agreement  through measures that 
supersede or replace the measures that were  the subject of the original dispute.532 
6.73 Norway would also like to point to the effe ct of the line of argument set out by the 
United States:  If these determinations were not to fa ll within the scope of the proceeding, a new panel 
would need to be started for each administrative review, and when another administrative review 
superseded the first, another panel would have to be started.  This  would run counter to the aim of 
Article 21.5, which is "to promote the prompt compliance with DSU recommendations and rulings 
and the consistency of "measures taken to comp ly" with the covered agreements by making it 
unnecessary for a complainant to begin new proceedings  and by making efficient use of the original 
panelist and their relevant experience".533 
6.74 With regard to the timing element, the Unite d States argues that "determinations made by a 
member prior to the adoption of a dispute settlement  report are not taken for the purpose of achieving 
compliance and cannot be within the scope of an Article 21.5 proceeding".534  In Norway's view, the 
timing of a review is not the determining factor when  it comes to whether or not it is a "measure taken 
to comply".535  The important point is rather whether it was completed and/or continued to have 
effects after the end of the reasonable period of time.536 
                                                      
530 Norway's Third Party Submission, para. 10, citing Panel Report, US – Subsidies on Upland Cotton 
(Article 21.5 – Brazil) , para. 9.26. 
531 Norway's Third Party Submission, para. 11. 
532 Norway's Third Party Submission, para. 12. 
533 Norway's Third Party Submission, para. 13, citing Appellate Body Report, US – OCTG Sunset 
Review (Article 21.5 – Argentina) , para. 151, referring to Appellate Body Report, US – Softwood Lumber IV 
(Article 21.5 – Canada) , para. 72. 
534 Norway's Third Party Submission, para. 14, citing US First Written Submission, para 46. 
535 Norway's Third Party Submission, para. 14, observing that this is also recognized by the Appellate 
Body:  In US – Softwood Lumber IV (Article 21.5 – Canada)  it found a measure that was initiated prior to the 
adoption of the original report to be within the scope of the proceeding. 
536 Norway's Third Party Submission, para. 14. WT/DS294/RW  
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 6.75 In light of the above, it is Norway's opinion that  all measures referred to in EC's First Written 
Submission fall within the scope of the Panel's jurisd iction as provided for in Article 21.5 of the DSU, 
including measures that have confirmed, supe rseded and/or replaced the original measures.
537  
6.76 Norway notes that the EC contends that th e United States has extended the duration of the 
measures challenged in the original dispute pursuant to sunset review proceedings concluded partly 
before and partly after the expiry of the reas onable period of time, by relying on past dumping 
margins calculated with the use of zeroing in determining the likelihood of dumping in those cases.538  
The EC submits that the United States by doing so violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement .
539 
6.77 Norway contends that the Appellate Body h as held that all dumping margins in sunset 
reviews conducted in accordance with Article 11.3, must  conform to the disciplines of Article 2.4.  If 
the margins are calculated using a methodology that is inconsistent with Article 2.4, then this could 
give rise to an inconsistency not only with  Article 2.4, but also with Article 11.3.540  The Appellate 
Body has confirmed that this also applies wher e the investigating authority relies on margins 
calculated (with the use of zeroing) during periodic reviews.541  
6.78 Based on the above, Norway considers that the United States has violated Article 2.1, 2.4, 
2.4.2 and 11.3 of the Anti-Dumping Agreement  by relying on past dumping margins calculated with 
zeroing, in determining the likelihood of dumping in the sunset review proceedings related to 
measures challenged in the original dispute.542  Norway respectfully requ ests the Panel to examine 
carefully the facts presented by the parties to this case in light of its arguments, in order to ensure a 
proper and consistent interpretation of the DSU and the Anti-Dumping Agreement .543  
VII. INTERIM REVIEW 
7.1 On 12 August 2008, the Panel issued its Interi m Report to the Parties.  On 9 September 2008, 
both parties submitted requests for the review of precise aspects of the Interim Report, and on 
16 September 2008, the parties submitted comments on each  other's requests for review.  In addition, 
on 23 September 2008, the United States submitted a le tter in response to the EC Comments, and the 
European Communities submitted a letter in respons e on 26 September 2008.  Neither party requested 
an interim review meeting. 
7.2 This section of our Report summarizes each party's request for interim review as well as our 
response to the arguments made at the interim review  stage, wherever we felt that an explanation was 
necessary.  Due to changes as a result of interim re view, the numbering of para graphs and footnotes in 
the Final Report has changed from th e Interim Report.  The parties' requests and comments referred to 
sections, paragraph numbers and footnotes in the In terim Report.  For the sake of clarity, we have 
indicated the corresponding paragraphs and footnot es in the Final Report where changes have been 
made.  We have also made additional editorial co rrections to the Interim Report for the purposes of 
clarity and accuracy. 
                                                      
537 Norway's Third Party Submission, para. 15. 
538 Norway's Third Party Submission, para. 16, citing EC First Written Submission, para. 69. 
539 Norway's Third Party Submission, para. 16, citing EC First Written Submission, para. 71. 
540 Norway's Third Party Submission, pa ra. 17, citing Appellate Body Report, US – Corrosion 
Resistant Steel Sunset Review , paras. 127 and 130. 
541 Norway's Third Party Submission, para. 17, citing Appellate Body Report, US – Zeroing (Japan) . 
542 Norway's Third Party Submission, para. 18. 
543 Norway's Third Party Submission, para. 19.  WT/DS294/RW 
 Page 85 
 
 
 A. EC REQUESTS FOR REVIEW  
7.3 The European Communities request s that we include, in the description of the measures at 
issue contained in paragraph 3.2 of the Interim Report, the "US omissions or deficiencies when 
complying with the DSB's recommendations and ruling s", which it submits it has brought before us in 
addition to contesting US measures in the form of certain Section 129 Determin ations and subsequent 
reviews (including cash deposits and liquidations resu lting from the measures at issue in the original 
dispute and subsequent reviews).544  The United States objects to the EC request, arguing that neither 
such omissions nor deficiencies were set forth as di stinct measures in the EC panel request or First 
Written Submission, and considers that paragraph 62 of the EC First Written Submission does not 
support its request.   
7.4 We note that the European Communities has, in its arguments before us, referred to the US 
omissions and deficiencies in the US implementa tion of the DSB's recommendations and rulings.  
Those references were, however, primarily made in the context of the EC arguments that all the 
measures challenged by the European Communities, and in particular the subsequent reviews, fall 
within our terms of reference.  Yet, it is clear from the EC requests for findings and from Section VIII 
of our report that part of the "measures" placed by the European Communities before us are indeed 
not positive acts, but rather omissions on the part of the US in bringing itself into compliance with the DSB's recommendations and rulings.  We have th erefore made the addition to paragraph 3.2 
suggested by the European Communities, but have qua lified it by the addition of the term "related", to 
better reflect the subsidiary role of su ch "omissions" in the EC arguments. 
7.5 The European Communities request s that we include, in paragraphs 4.1 and 5.185 of the 
Interim Report, a reference to its request for a finding concerning the Panel's composition.  The 
United States did not comment on the EC request fo r review in this respect.  We have made the 
inclusion suggested by the European Communities in  what are now paragraphs 4.2 and 5.185 of the 
Final Report.  
7.6 The European Communities requests, and we have made, an additio n to what is now 
paragraph 8.22, to reflect an EC argument that th e United States seems to have correctly understood 
the measures covered by this dispute when referring to Charts I and II of the Annex to the EC panel 
request in its First Written Submission.  As it is cl ear that this paragraph reproduces the EC arguments 
before the Panel, we see no need to use the altern ative language suggested by the United States in its 
Comments on the EC request. In addition, the Euro pean Communities also requests that we insert, 
after the third sentence of paragraph 8.31 of the Interim Report, a cross-re ference to this same 
paragraph 8.22.  The United States objects to this  EC request.  We decline to make the change 
requested by the European Communities.  The Eu ropean Communities has provided no justification 
for its request in this respect. Paragraph 8.31 of the Interim Report sets out the Panel's interpretation 
of Article 6.2 (as opposed to the parties' argument s) and, as pointed out by the United States, the 
change suggested by the European Communities would modify the sense of  this paragraph. 
7.7 The European Communities requests that we make  certain changes to the description of the 
measures at issue by the original panel and the Appe llate Body in paragraphs 8.67-8.71 of the Interim 
Report. 
7.8 First, the European Communities requests that we specify, in paragraph 8.67 of the Interim 
Report, that the footnote at the end of paragraph 8.1( a) of the report of the original panel refers back 
to the findings contained in paragraph 7.32 of that  same report which, as indicated in paragraph 8.66 
of the Interim Report, refers back to footnote 1 19.  The United States does not comment on this EC 
                                                     
 
544 The European Communities refers to para. 62 of its First Written Submission. WT/DS294/RW  
Page 86  
 
 request, and we made the modification suggested by the European Communities to what is now 
paragraph 8.66. 
7.9 Second, the European Communities requests that  we modify paragraph 8.69 of the Interim 
Report, substituting the words "refer to this footnote di rectly or indirectly" to the words "refers either 
to this footnote
608 or to Exhibits EC-16 to EC-31609", and making corresponding changes to footnotes 
608 and 609 in the Interim Report, to reflect the fact  that all the paragraphs cited refer directly or 
indirectly to footnote 202.  The United States sugge sts alternative language.  Rather than making the 
change suggested by the European Communities, we have amended what are now footnotes 610 and 
611 to reflect the fact that even where the original pa nel refers to Exhibits EC-16 to EC-31, by virtue 
of cross-references, the reference to these Exhibits in turn, eventually refers back to footnote 202. 
7.10 Third, the European Communities requests that we add, at the beginning of paragraph 8.70 of 
the Interim Report, a reference to footnote 9 of the Appellate Body report concerning the original 
investigations at issue in the original dispute, and which refers to paragraph 2.6 and footnote 119 of 
the report of the original panel.  The United States objects to the change proposed by the European Communities, on the ground that para graph 8.70 of the Interim Report concerns 
administrative reviews, not original investigations. We decline to make the addition suggested by the 
European Communities.  Our report includes a discu ssion of the Appellate Body's description of the 
administrative reviews at issue because, with respect to administrative reviews, it was the findings of 
the Appellate Body that were adopted by the DSB.   The Appellate Body did not disturb the panel's 
findings on the EC "as applied" claims with respect to original investigations; we therefore see limited 
relevance in describing the Appellate Body's descr iption of these measures in the introductory section 
of its report. We now explain this in new footnote 6 12. In any case, the Appellate Body merely refers 
back to paragraph 2.6 and footnote 119 of the report of the original panel, which are already 
reproduced in paragraph 8.63 of the Final Report.   
7.11 Fourth, the European Communities requests that we include, in footnote 612 to 
paragraph 8.71 of the Interim Report, additional re ferences to other paragra phs of the Appellate Body 
Report where, the European Communities indicates, the Appellate Body also referred to original 
investigations and administrative reviews "at issue" .  The United States objects to the EC request.  It 
submits that paragraph 8.71 pertains to administ rative reviews and that some of the additional 
paragraphs listed by the EC concern original inv estigations; others concern the Appellate Body's 
summarization of either the EC or the US arguments. We have, in response to the EC request, made it 
clear that the list contained in what is now footnot e 613 is not exhaustive ( it lists those paragraphs 
most relevant to the Appellate Body 's findings with respect to the EC "as applied" claims concerning 
administrative reviews).  Consistent with the preced ing paragraph, we see no need to make reference 
to the Appellate Body's description of the measures at  issue with respect to the EC claims concerning 
original investigations.   
7.12 Finally, the European Communities requests that  we include, before paragraph 8.71 of the 
Interim Report, a reference to its Notice of Appeal  in the original dispute, which described the 
measures at issue by reference to paragraph 2.6 of th e report of the original panel, and that we indicate 
that the US did not bring any claims against su ch a description before the Appellate Body.  The 
United States submits that the EC's own description of the measures at issue has no place in this 
portion of the report.  In addition, the US contests the EC assertion that "the United States did not contest such a description before the Appellate Body".   As the United States points out, this section of 
our report describes the description of the measures at  issue by the panel and the Appellate Body in 
the original dispute.  While we consider that the EC 's panel request in the or iginal dispute sheds light 
on the scope of the measures at issue (see paragraph 8.74 of the Final Report), in our view the EC's 
Notice of Appeal did not have the effect of delimiti ng the scope of the original proceeding.  Indeed, 
the EC's Notice of Appeal described  the measures at issue by reference to paragraph 2.6 of the report  WT/DS294/RW 
 Page 87 
 
 
 of the original panel.  As a result, we declin e to make the addition suggested by the European 
Communities. 
7.13  The European Communities requests that we a dd language at the end of  paragraph 8.114 of 
the Interim Report in order to fully reflect its arguments. The United States does not object to this request of the European Communities, and we have  made the addition suggested by the European 
Communities in what is now paragraph 8.113.  Th e European Communities also requests that we 
insert the words "based on zeroing" in the text of  paragraph 8.119 of the Interim Report.   The 
United States objects to this proposed change, wh ich it submits would change the meaning of the 
Panel's finding.  While the EC request concerns, as the United States points out, our findings, we 
consider that the addition suggest ed by the European Communities eliminates an ambiguity which 
existed in the text of the Interim Report and better reflects the intent behind our findings.  We have 
therefore made the change requested by the European  Communities in what is now paragraph 8.118.  
7.14 The European Communities requests that, in orde r to provide a complete description of the 
issues not contested by the United States on this poin t, the Panel make a reference, at the end of 
footnote 897  of the Interim Report to the fact that the United States has not contested the 75 per cent 
figure provided by the European Communities.  The United States objects to the EC request, 
submitting that, as indicated in footnote 897 of the Interim Report, the Eur opean Communities failed 
to support the 75 per cent figure with any documentary evidence and failed to even make a prima 
facie  case.  Therefore, the United States considers that no response from it was necessary on this 
point.  We have, in light of the parties' comments,  clarified what is now footnote 905 by noting the 
fact that the United States did not comment on the 75 per cent figure presented by the European 
Communities.  We have also made it clear that our conclusion that the European Communities has 
made a prima facie  case that the volume of "dumped imports" decreased by virtue of the Section 129 
determinations is not dependent on the evidence s ubmitted by the European Communities with respect 
to the precise volume of imports that could no longer be regarded as dumped. 
7.15 The European Communities requests that, in order to fully reflect its argument on this point, 
we insert the term "cooperating" in paragraph 8.280  of the Interim Report to qualify the terms 
"exporters and producers". The United States did not comment on this EC request.  We do not consider that the addition requested by the Eur opean Communities is warranted.  What is now 
paragraph 8.281 contains our findings  on the scope of Article 9.4.  Its primary aim is not to reproduce 
the detail of the EC argument.  Further, making the addition suggested by the European Communities 
would detract the reader from the point that this paragraph seeks to make, i.e., the contrast between 
disciplines with respect to the calculation  of the "all others" rate itself (the EC argument) and 
disciplines concerning the ceiling  applicable to the "all others" rate (our interpretation of Article 9.4).  
B. 
US REQUESTS FOR REVIEW       
7.16 The United States requests that we eliminate the re ferences to the original panel in the fourth 
and fifth sentences of paragraph 8.107 of the Interim Report.  The United States submits that it was 
the Appellate Body, and not the panel in the original  dispute that relied on the rationale discussed in 
the fifth sentence of paragraph 8.107, and that the original panel did not find that the definition of 
dumping in Article 2 contained a general obligatio n not to zero.  The European Communities objects 
to the US request and disagrees with the US view th at the original panel did not rely on the rationale 
quoted in the fifth sentence of paragraph 8.107.  In addition, the European Communities submits that 
the United States fails to read the original panel report as modified  by the Appellate Body Report, 
which is what was adopted by the DSB.  The Eu ropean Communities further submits that the present 
panel is correct to observe that the considerations th at have played a role in prior panel and Appellate 
Body reports condemning zeroing are fundamentally slightly different ways of expressing the same 
basic point, reflecting coherent reasoning that respects the overall design and architecture of the relevant provisions and the Anti-Dumping Agreement  and Article VI of the GATT 1994, considered as WT/DS294/RW  
Page 88  
 
 a whole.  We agree with the United States that paragraph 8.107 of the Interim Report primarily 
reflected the Appellate Body's reasoning in the origin al dispute.  We have, in order to clarify the 
situation, added a discussion of the rationale for the original panel's finding with respect to zeroing in original investigations in new paragraph 8.106.  That being said, we agree with the European 
Communities concerning the reasoning of the panel a nd Appellate Body, and believe it is clear from 
new paragraph 8.106 that the panel and the Appella te Body both relied in their reasoning on a basic 
requirement to calculate dumping for the product as a w hole, and to take into account all intermediate 
comparisons where such comparisons are made by the investigating authority, which derives from 
Article 2.1 of the Anti-Dumping Agreement , and also finds expression in Article 2.4.2 ("all 
comparable export transactions").  
7.17 The United States suggests that the Panel clarify the first sentence of paragraph 8.175 of the 
Interim Report by deleting the words "the da te of the final assessment of the duties, i.e."  The 
United States submits that this phrase does not specif ically characterize either of the two dates to 
which the Panel refers, and that it creates ambiguity as to the Panel's view of the appropriate dates.  
The European Communities objects to  the US request in this resp ect.  The European Communities 
considers that the phrase at issue does not create ambiguity, and that its deletion would imply that the 
Panel would only provide a partial explanation of its views.  In addition, the European Communities 
notes that the Panel refers to "final assessment of duties" in other paragraphs of the Interim Report.
545 
We do not consider that the phrase at issue creates any real ambiguity as to our views on the relevant date.  When read in light of paragraph 8.174, it is clear that the relevant date is that of the 
determination of the amount of anti-dumping liability  due. We have now made this more explicit.  
Further, we consider it useful to maintain the ph rase at issue because the pur pose of the first sentence 
of paragraph 8.175 is to explain th at such a determination  occurs either at the time of the conclusion 
of the administrative review proceedings or, where such proceedings are not requested, on the date on 
which the right to request such a review has laps ed.  In addition, where an administrative review 
proceeding is rescinded, the relevant date would be th at of the rescission of the proceeding.  This has 
now been made clear in what is now footnote 769.  
7.18 The United States submits that the last clause of the fifth sentence of paragraph 8.192 of the 
Interim Report, ("even where the court proceedings  were unsuccessful in challenging the final duty 
liability determination"), could be misinterpreted to mean that the outcome of litigation is somehow 
relevant to the date of implementation, and sugge st that we replace it with "as a result of court 
proceedings".  In addition, the United States  submits  that the relevant date of implementation appears 
less clear in the phrase "at the time of the ad ministrative review proceedings" contained in 
paragraph 8.193 of the Interim Report.  In order to be  consistent with our finding that the relevant date 
for implementation is the date of the final determ ination, the United States suggests that we use the 
formulation "the date that the United States made its  final administrative review determination".  The 
European Communities objects to th ese US requests.  The European  Communities considers that the 
United States bases its request on an incorrect inte rpretation of footnote 798 of the Interim Report, 
and submits that the reference to "court proceedin gs" in paragraph 8.192 of the Interim Report is 
clearly made in the context of the Panel's rebuttal of  the EC's theory of implementation and, thus, does 
not mean that the Panel implied that "the outcome of litigation is somehow relevant to the date of 
implementation".  Finally, the European Communities considers that the reference to "at the time of 
the administrative review proceedings" in paragraph 8.193 of the Interim Report is sufficiently clear. 
7.19 We decline to make the changes requested by the United States.  We do not agree with the 
United States that paragraph 8.192 of the Interim Re port, as drafted, suggests that the outcome of the 
litigation is relevant to the date of  implementation, and note in this r espect, our use of the term "even" 
at the beginning of the phrase at issue.  Likewise, we see no need to modify paragraph 8.193 of the 
                                                     
 
545 The European Communities refers to, e.g., paras. 8.110, 8.183, 8.207, and 8.212 of the Interim 
Report.  WT/DS294/RW 
 Page 89 
 
 
 Interim Report as requested.  In this respect, we have  now made it clear in what is now footnote 769 
that we do not use the term "final determination" to distinguish between th e issuance of the "Final 
Results" and any "Amended Results" in the administrative review process.    
7.20  The United States argues that our finding, set forth in paragraphs 8.211-214 and 8.127 of the 
Interim Report, that the 2004-2005 administrative revi ew in case 6 falls within our terms of reference 
is contrary to our finding that our terms of  reference only properly include definitive duty 
determinations made after  the end of the reasonable period of time.  The United States also submits 
that we have elsewhere emphasized that the releva nt date for implementation is that on which the 
administering authority makes the decision  of final liability (paragraph 8.174 of the Interim Report). 
The United States notes that while the final determination of the 2004-2005 review in case 6 was 
published in the Federal Register on 10 April 20 07, it was signed by the USDOC on 4 April 2007. 
The United States considers that it is this date th at is relevant under the Panel's line of reasoning 
because that is the date on whic h the USDOC made its substantive decision of final liability 
Furthermore, the United States argues that the date of the USDOC's amended final determination (9 May 2007) cannot legitimately be construed as the date the USDOC made  its decision because the 
sole purpose of that amended determination was to make ministerial corrections to the substantive 
decision made on 4 April 2007.  The United States su bmits that, were the Panel to include this 
determination within its terms of re ference by virtue of the date of the amended final determination, it 
would in effect be requiring the USDOC to remake a substantive determination that was made prior to 
the end of the reasonable period of time, and solely  as a result of the USDOC's decision to recognize 
and correct ministerial errors that have nothing to  do with the substantive issues being argued before 
this Panel.  As a result, the United States requests th at we find that the determination falls outside our 
terms of reference and otherwise not make any findings  with respect to this determination in our Final 
Report.   
7.21 The European Communities objects to the US reque st for review, and submits that, as stated 
in paragraph 8.127 of the Interim Report, the Pane l's terms of reference in clude subsequent reviews 
"adopted" following the date when the original reports were adopted by the DSB.  Thus, the 
assessment review at hand (conducted in 2007) clearly  falls under the Panel's terms of reference.  
Further, the European Communiti es observes that the United States mistakenly assumes that the  
Panel took into account the date on which the inves tigating authority "makes the decision of final 
liability".  Yet, it is evident from Interim Report th at the Panel took into account the date when the 
results of the assessment proceeding were published  in the Federal Register, as this is the moment 
when the results of the assessment re view are made public to all interested parties, and the date as of 
which new cash deposits are established.  The Europe an Communities also notes that the results of the 
amendment published on 9 May 2007 did not modify the cash deposits resulting from the original 
determination made on 10 April 2007: the notice pub lished in the Federal Register on 9 May 2007 
states that "The Department will also notify CBP of the revised cash deposit rate for FSAB, effective 
upon publication of these amended final results of the review".  Thus, the amended cash deposit 
entered into force on 9 May 2007.  Consequently, si nce the original and the amended dete rminations 
were published after the end of the reasonable pe riod of time, the European Communities requests 
that the Panel reject the US request for review.   
7.22 We see no reason to modify our finding that  the 2004-2005 administrative review in case 6 
falls within our terms of reference and that th e US obligation to implement extended to that 
determination. First, as is clear from what is now pa ragraph 8.121, we consider  that this review falls 
within our terms of reference because it was published following the adoption of the DSB's 
recommendations and rulings.  Second, we have, in our findings with respect to the temporal scope of 
the US obligation to implement, made it clear that it is the date of the determination of the final anti-
dumping liability that is the relevant date to dete rmine the US obligation to implement.  Here, the 
final anti-dumping liability was determined on th e date of the amended administrative review 
determination, since that determin ation changed the margin of dumpi ng established for Fagersta in the WT/DS294/RW  
Page 90  
 
 original administrative review determination from 20.42 per cent to 19.36 per cent, and thus changed 
its liability for anti-dumping duties.  See also, in this  respect, new footnote 769.  Further, we consider 
that the relevant date cannot, in this context, be the date of the internal decision-making process, but 
rather, has to be the date on which a measure takes effect, i.e., the date of publication.   
7.23 The United States requests that we amend foot note 825 to paragraph 8.219 of the Interim 
Report and suggests alternative language to clarify it.  The European Communities considers that the 
original footnote reads well and reflects the US arguments.  The European Communities also suggests 
alternative language, should the Panel wish to modify  the footnote.  We agree with the United States 
that the footnote could be better formulated and have clarified what is now footnote 819. 
7.24 The United States requests that we reverse our findings on the injury determinations in cases 
2, 3, 4 and 5 (paragraphs 8.252-8.270 of the Inte rim Report).  The main elements of the lengthy 
argument submitted by the United States on this issue are as follows:  First, the United States submits 
that we need not address the EC claims with respect to "injury", and that our findings in this respect 
will do nothing to help resolve the dispute, given th at the AD orders at issue have been revoked.  
Next, United States submits that the injury determin ations are not within our terms of reference as 
they are not "measures taken to comply".  The Un ited States also argues th at the Appellate Body 
Report in US – Oil Country Tubular Goods Sunset Reviews (Article 21.5) , on which, the United States 
argues, we rely to support our findings, is disti nguishable from the instant compliance proceeding.  In 
addition, the United States argues th at there is no obligation in the Anti-Dumping Agreement  
automatically to revise an injury determination in li ght of a revised dumping determination.  In the US 
view, other provisions of the Anti-Dumping Agreement , specifically Articles 11.2 and 11.3, provide a 
vehicle to review an injury determination in orde r to address developments arising after the issuance 
of the determination.  The United States concl udes by noting that how it complies with DSB 
recommendations and rulings is up to the United St ates and that, in this case, it conducted sunset 
reviews of the orders that took into account the USDOC's Section 129 determinations, and led to the 
revocation of the orders.  
7.25 The European Communities objects to the US re quest.  The European Communities considers 
that the Panel was required to make the findings at issue given that, at the time of the Panel's 
establishment, the orders were still in place.  The European Communities also submits that, contrary 
to what the United States asserts, our findings did not concern the original injury determinations per 
se:  rather, our findings concerned the US failure to reassess the injury determinations in light of the 
new volumes of dumped imports when keeping the anti-dumping duties in place as a result of the 
Section 129 Determinations.  The European Comm unities adds that a compliance panel can examine 
the "totality" of claims relating to the consistenc y of "measures taken to comply" with the covered 
agreements (continuing violations , new violations and consequen tial violations of the covered 
agreements) and that, in this case, it argued that its claims related to new measures ( i.e., the 
Section 129 Determinations) against which new clai ms could be made.  In this respect, the US 
obligation to reassess the injury determinations derives from the original DSB recommendation to 
bring its measures into conformity with the Anti-Dumping Agreement ; if the measures taken to 
comply do not comply with the 
Agreement , then the United States cannot argue that there is no 
obligation to revise its injury determinations as a consequence of the revised  dumping determinations. 
Finally, the European Communities argues that th e United States has, in its request for review, 
submitted new evidence, and made new arguments that were not made previously during this 
compliance proceeding – for instance, the Europe an Communities submits that the United States 
never argued that the injury determinations were not measures taken to comply, and cannot do so at 
the interim review stage.  
7.26 We note first that the US request for review contains a number of arguments which were not 
made, or at least were not developed, during the co urse of this proceeding.  For instance, while the 
United States argued during the course of the pr oceeding that there were no DSB recommendations  WT/DS294/RW 
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 and rulings concerning the issue of "injury", the Un ited States did not previo usly explicitly assert that 
the EC claims regarding injury concerned measures which are not "measures taken to comply".  The 
purpose of the interim review stage is not to a llow a party to raise new arguments or develop 
arguments which were at most merely alluded to du ring the course of the proceeding.  That said, we 
consider it useful to address certain of the points ma de by the United States in its request for review. 
7.27 First, while it may be permissible for the United States to bring its measures into conformity 
through the conduct of sunset reviews resulting in th e revocation of the orders as a general matter, in 
this case, as of the date of establishment of this panel,  the orders remained in fo rce.  As we explain in 
our findings, it is for that reason, i.e., the fact that the United States had allegedly not brought itself 
into conformity as of the date of the Panel's establis hment, that we consider that the US measures at 
issue fall within our terms of reference.  The US ar gument that it could bring itself into conformity in 
the manner it chose, in this case, through the revocati on of the orders as a result of the sunset review 
determinations, overlooks that tempor al element of the US obligation to bring itself into conformity 
with its obligations.  We need not comment furt her on the US arguments that it can do nothing more 
to bring itself into conformity; we have already addr essed this issue in paragraph 8.249 of the Report.  
We have, however, substantially revised that same pa ragraph to make it clear that while we consider 
that the US measures taken to comply fall within ou r terms of reference, we consider that we, as any 
other panel, retain the discretion to make, or not  make, findings with respect to the claims and 
measures falling within our terms of reference (t he "matter" referred to us by the DSB). 
7.28 We have already addressed, at paragraph 8.2 58 of our Report, the US arguments (already 
made in its Response to Panel Question 51)  concerning the Appellate Body Report in US – Oil 
Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) .  The Appellate Body Report in 
that case concerns more than the scope of the meas ure take to comply, the aspect of the decision to 
which the United States limits its comments; it also addresses the applicability of the "stare decisis" 
principle enunciated in EC – Bed Linen (Article 21.5 – India) .  This latter element is the one which 
was specifically addressed in the report at paragraphs  8.258-8.259.  Finally, and related to this, even 
though in our view the United States did not, in th e course of this proceeding, argue that the EC 
claims concerned measures that are not "measures ta ken to comply", for the sake of completeness, we 
have now addressed that issue explicitly in our  findings. See what is  now paragraph 8.264. 
C. REQUESTS BY BOTH PARTIES CONCERNING THE SAME ASPECTS OF THE INTERIM REPORT  
7.29 The European Communities requests that the Pane l make certain changes to paragraphs 8.139 
and 8.140 of the Interim Report in order to avoid a potential contradiction between these two 
paragraphs.  The European Communities requests th at we modify the first sentence of paragraph 
8.140 of the Interim Report to read "even if the EC has made a prima facie  case" or, alternatively, that 
we delete the first part of the first sentence of paragraph 140, and start with "[H]owever, we cannot 
make ..."   
7.30 In its own request for review, the United Stat es submits that the European Communities has 
not supplied any evidence to demonstrate that  zeroing was actually employed in calculating the 
margins relied upon in the sunset reviews at issue and has therefore not made a prima facie  case in 
this respect.  For this reason, the United States does not believe that there exists a basis for our 
conclusion that the margins relied upon in the sun set reviews were calculated by using zeroing and 
requests that we delete the last sentence of paragr aph 8.139.  In its Comments on the EC request, the 
United States indicates that it considers that both th e last sentence of paragraph 8.139 and the first 
sentence of paragraph 8.140 are not relevant to  the Panel's finding because the Panel ultimately 
declines to make a finding as to th e contested sunset reviews. The Un ited States also agrees with the 
EC's alternative suggestion to modify the firs t sentence of paragraph 8.140.  The European 
Communities objects to the US request to delete the last sentence of paragraph 8.139, and disagrees WT/DS294/RW  
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 with the US view that it has failed to make a prima facie  case that zeroing was actually employed in 
the margins relied upon in the sunset reviews at issue.  
7.31 We have examined the parties' requests to amend paragraphs 8.139-8.140 of the Interim 
Report, as well as their comments on each other's request, and decline to amend either of these paragraphs.  We consider that they are clear and accurately reflect our reasoning. 
7.32 Both parties submit that paragraph 8.208 of the Interim Report contains a factual error:  the 
rate challenged by the European Communities in the 2004-2005 administrative review in case 1 stems 
from the 2004-2005 administrative review, not from the original investigation.  Each party suggests 
alternative language. We agree that as originally dr afted, what is now paragraph 8.207 suggested that 
the Panel was referring to the cash deposit rate fro m the 2004-2005 review in the sentence identified 
by the parties. We have reformulated this para graph, and the following paragraph, in order to 
eliminate that confusion.   
VIII.  FINDINGS 
A. O
RDER OF THE PANEL 'S ANALYSIS  
8.1 Our findings are organized as follows:  In the ne xt few pages,  we recall the basic principles 
that govern the exercise of our authority under Article 21.5 of the DSU.  Next, we examine two 
preliminary issues. The first concerns claims of the European Communities in relation to the 
composition of this Panel. The second concerns US  requests for preliminary rulings, in which the 
United States requests us to find that "subsequent" ad ministrative and sunset reviews, taken in relation 
to the same AD orders as the measures at issue in th e original dispute, and with respect to which the 
European Communities makes claims, are not properly before us.  
8.2 We will then proceed to examine the substance of  the EC claims insofar as they are within our 
terms of reference.  We will first consider the EC  claims with respect to all the measures which the 
European Communities includes in its panel reques t; these claims concern whether the United States 
has complied with the recommendations and rulings of the DSB in the original dispute.  Lastly, we 
will address EC claims concerning the consistency of  certain US measures taken to comply (specific 
Section 129 determinations) with the Anti-Dumping Agreement  and the GATT 1994.  
B. RELEVANT PRINCIPLES REGARDING STANDARD OF REVIEW , TREATY INTERPRETATION AND 
BURDEN OF PROOF  
1. Rules of treaty interpretation 
8.3 Article 3.2 of the DSU provides that the dis pute settlement system serves to clarify the 
provisions of the covered agreements "in accordance with customary rules of interpretation of public 
international law".  It is generally accepted that these customary rules are reflected in Articles 31-32 
of the Vienna Convention on the Law of Treaties.  Article 31(1) of the Vienna Convention  provides:   
"A treaty shall be interpreted in good faith  in accordance with the ordinary meaning 
to be given to the terms of the treaty in their context and in the light of its object and purpose".   
2. Standard of review 
8.4 Article 11 of the DSU provides the standard of review applicable in WTO panel proceedings 
in general.  This provision imposes upon panels a comprehensive obligation to make an "objective 
assessment of the matter before it".  Article 11 of the DSU provides, in relevant part:    WT/DS294/RW 
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 "The function of panels is to assist th e DSB in discharging its responsibilities under 
this Understanding and the covered agreements.  Accord ingly, a panel should make 
an objective assessment of the matter before  it, including an objective assessment of 
the facts of the case and the applicability of and conformity with the relevant covered 
agreements, and make such other findi ngs as will assist the DSB in making the 
recommendations or in giving the rulings pr ovided for in the covered agreements." 
8.5 Article 17.6 of the Anti-Dumping Agreement  sets forth a special standard of review applicable 
to disputes under that Agreement.  It provides that:   
"(i) in its assessment of the facts of the matter, the panel shall determine whether 
the authorities' establishment of the facts was proper  and whether their evaluation of 
those facts was unbiased and objective.  If the establishment of the facts was proper 
and the evaluation was unbiased and objectiv e, even though the panel might have 
reached a different conclusion, the evaluation shall not be overturned; 
(ii) the panel shall interpret the rele vant provisions of the Agreement in 
accordance with customary rules of interpreta tion of public international law.  Where 
the panel finds that a relevant provision of  the Agreement admits of more than one 
permissible interpretation, the panel sha ll find the authorities' measure to be in 
conformity with the Agreement if it rests upon one of those permissible interpretations." 
8.6 Taken together, Article 11 of the DSU and Article 17.6 of the Anti-Dumping Agreement 
establish the standard of review this Panel must a pply with respect to both the factual and the legal 
aspects of the present dispute. 
3. Burden of proof 
8.7 The general principles regarding the allocati on of the burden of proof in WTO dispute 
settlement require that a party claiming a violation of a provision of a WTO agreement by another Member assert and prove its claim.
546  These rules apply equally to proceedings under Article 21.5 of 
the DSU.547  The European Communities, as the comp laining party, must therefore make a prima 
facie  case of violation of the relevant provisions of  the WTO agreements it invokes, which the United 
States must refute.  A prima facie  case is one which, in the absence of  effective refutation by the other 
                                                      
546 Appellate Body Report, United States – Measure Affecting Imports of Woven Wool Shirts and 
Blouses from India ("US – Wool Shirts and Blouses "), WT/DS33/AB/R, adopted 23 May 1997, and Corr.1, 
DSR 1997:I, 323, p. 14.  With respect to these general rules on allocation of the burden of proof, the Appellate 
Body has observed:   
"[I]n WTO dispute settlement, as in most legal systems and international tribunals, the burden 
of proof rests on the party that asserts the affi rmative of a claim or defence.  A complaining 
party will satisfy its burden when it establishes a prima facie  case by putting forward adequate 
legal arguments and evidence.  The nature and scope of arguments and evidence required 'will 
necessarily vary from measure to measure, prov ision to provision, and case to case'.  When a 
claim is brought against a WTO Member's legislation or regulation, a panel may, in some circumstances, consider that the text of the relevant legal instrument is sufficiently clear to 
establish the scope and meaning of the law.  However, in other cases, a panel may consider 
that additional evidence is necessary to do so.  Once the complaining party has established a prima facie case, it is then for the responding party to rebut it." (footnotes omitted).   
Appellate Body Report, Chile – Price Band System and Safeguard Measures Relating to Certain 
Agricultural Products – Recourse to Article 21.5 of the DSU by Argentina  ("Chile – Price Band System 
(Article 21.5 – Argentina) "), WT/DS207/AB/RW, adopted 22 May 2007,  para. 134. 
547 Appellate Body Report, Chile – Price Band System (Article 21.5 – Argentina), para. 136.   WT/DS294/RW  
Page 94  
 
 party, requires a panel, as a matter of law, to rule in favour of the party presenting the prima facie  
case.  We also note, however, that it is generally  for each party asserting a fact, whether complainant 
or respondent, to provide proof thereof.
548  In this respect, therefore, it is also for the United States to 
provide evidence supporting the facts which it asserts.   
8.8 The Appellate Body recently discussed the appli cation of the general rules on the allocation 
of the burden of proof in the context of Article 21.5 of the DSU as follows:   
"The text of Article 21.5 expressly links the 'measures taken to comply' with the 
recommendations and rulings of the DSB con cerning the original measure.  A panel's 
examination of a measure taken to comply  cannot, therefore, be undertaken in 
abstraction from the findings by the original  panel and the Appellate Body adopted by 
the DSB.  Such findings identify the WTO-in consistency with respect to the original 
measure, and a panel's examination of a me asure taken to comply must be conducted 
with due cognizance of this background.  Thus, the adopted findings from the original proceedings may well figure prominently in proceedings under Article 21.5, especially where the measure taken to comply is alleged to be inconsistent with WTO 
law in ways similar to the original measure.  In our view, these considerations may 
influence the way in which the complaining party presents its case, and they may also be relevant to the manner in which an Article 21.5 panel determines whether that 
party has discharged its burden of proof and established a prima facie  case."
549   
C. EC CLAIMS WITH RESPECT TO THE COMPOSITION OF THE PANEL  
8.9 We first address an issue raised by th e European Communities in its Second Written 
Submission concerning the composition of this Panel.   The European Communities considers that this 
is an issue which the Panel has an inhe rent jurisdiction and the duty to examine ex officio  by 
providing a proper interpretation of the DSU.  The Un ited States argues that the EC claims in this 
respect are not within the terms of reference of th e Panel because they are not part of the "matter" 
referred to the DSB by the European Communities in th is dispute, and that this claim is not about a 
measure identified in the EC Article 21.5 panel request.   
1. Main arguments of the parties 
8.10 The European Communities550 argues that the Panel was improperly constituted under 
Articles 8.3 and 21.5 of the DSU.  The European Communities notes that with the agreement of the 
parties pursuant to Article 8.3 of the DSU, the or iginal panel included citizens of the Members whose 
governments are parties the dispute.  When this Article 21.5 panel was established, two members of 
the original panel were unavailable.  During th e ensuing composition process, the United States 
withdrew its agreement pursuant to Article 8.3 to the service of citizens of Members whose 
governments are parties to the dispute.  The Eur opean Communities argues that it "had to accede" to 
the appointment of three new panelists in order for composition to proceed, whilst protesting that it 
was not consistent with the DSU and without prejudice to its rights. 
8.11 Substantively, the European Communities argues that under Articles 8.3 and 21.5 of the DSU, 
when panelists of the original dispute are availa ble to serve in a 21.5 proceedings, they cannot be 
unilaterally removed from the panel by one of the pa rties.  In the EC view, the original agreement 
under Article 8.3 DSU cannot be revoked at any st age of the dispute proceedings, including the 
compliance panel stage.  The European Communities finds contextual support for its interpretation of 
                                                      
548 Appellate Body Report, US – Wool Shirts and Blouses , p.  14. 
549 Appellate Body Report, Chile – Price Band System (Article 21.5 – Argentina),  para. 136.   
550 EC Second Written Submission at paras. 4 ff.  WT/DS294/RW 
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 Article 8.3 of the DSU in Article 8.6, pursuant to  which parties shall not oppose panelists other than 
for "compelling" reasons.  According to the Europ ean Communities, the nationality of a panelist may 
not constitute a "compelling" reason to dismiss him,  when both parties have already agreed to him 
serving on any panel concerned with the dispute.  The European Communities also finds further 
support for its arguments in the object and purpose of the DSU, which includes the prompt and 
effective settlement of disputes (Article 12) by independent panelists (Art icle 8.2), resulting in 
binding panel reports (Article 17).  The European Communities argues that the Panel has an inherent 
jurisdiction and a duty to rule ex officio  on the propriety of its own composition, and requests the 
Panel to find that composition was not consiste nt with Articles 21.5 and 8.3 of the DSU.   
8.12 The United States551 considers that the EC claim is not within the terms of reference of the 
Panel because it is not part of the "matter" referre d to the DSB by the European Communities in this 
dispute, and that this claim is not about a measure identified in the EC Article 21.5 panel request – in 
fact, the United States questions whether such a clai m could ever fall within the scope of a panel's 
terms of reference.552   
2. Evaluation by the Panel 
8.13 The European Communities claims that Articles 8. 3 and 21.5 of the DSU were violated in the 
panel composition process and that, as a resu lt, this Panel was improperly composed.553  Should we 
agree with the European Communities that we ma y rule on the issue of our own composition and 
agree with the EC arguments on substance, we would have to conclude that we have no jurisdiction to 
examine and rule on the other EC claims in this dispute.   
8.14 The EC claims and arguments raise the question whether a panel may rule on the propriety or 
consistency with the DSU of its own composition.  It  is surprising that it is the complaining party in 
this dispute that raises this issue.  But in any ev ent, we do not believe that we need to address this 
question comprehensively. 
8.15 We note that this Panel was composed by the Director-General of the WTO pursuant to the 
provisions of Article 8.7 of the DSU.  That paragraph provides:   
"If there is no agreement on the panelists within 20 days after the date of the 
establishment of a panel, at the request of either party, the Director-General , in 
consultation with the Chairman of the DSB and the Chairman of the relevant Council 
or Committee , shall determine the composition of the panel by appointing the 
panelists whom the Director-General cons iders most appropriate in accordance with 
                                                      
551 US Second Written Submission at para. 4 ff. 
552 The United States  also submits that the European Communities did not have its permission to 
disclose anything that the United States may or may not have said during the panel composition process, and 
requests the Panel to strike from the record any discussion of the panel selection process other than the EC 
allegations concerning its own positions, and to request thir d parties to destroy or return this information.  In 
response to the US request, we have edited the summar ies of the parties' arguments in order to redact any 
reference to statements by the United States during the panel composition process.   
553 Article 8.3 of the DSU provides as follows:   
"Citizens of Members whose governments are parties to the dispute or third parties as defined 
in paragraph 2 of Article 10 shall not serve on a panel concerned with that dispute, unless the 
parties to the dispute agree otherwise." (footnote omitted) 
Article 21.5 provides, in relevant part, that: 
"Where there is disagreement as to the existen ce or consistency with a covered agreement of 
measures taken to comply with the recommendations and rulings such dispute shall be decided through recourse to these dispute settlement procedures, including wherever possible resort to 
the original panel." WT/DS294/RW  
Page 96  
 
 any relevant special or additional rules or procedures of the co vered agreement or 
covered agreements which are at issue in the dispute , after consulting with the parties 
to the dispute .  The Chairman of the DSB shall inform the Members of the 
composition of the panel thus formed no later than 10 days after the date the 
Chairman receives such a request." (emphasis added) 
8.16 The European Communities has failed to point to  any provision of the DSU, and we know of 
none, that would give us authority to make a finding or ruling with respect to the application, by the 
Director-General of the WTO, of the provisions of the DSU regarding panel composition contained in Article 8.7.
554 
8.17 Article 8.7 is clear that whenever there is no agreement between the parties, the ultimate 
power to compose the panel rests with the Director -General of the WTO.  Consequently, we refrain 
from ruling on the substance of the EC claim with respect to the composition of this panel by the 
Director-General.555  
D. US REQUEST FOR PRELIMINARY RULINGS  
8.18 The United States makes a request for preliminar y rulings, based on two grounds.  First, the 
United States argues that the Eur opean Communities seeks to include within the terms of reference of 
this proceeding measures that were not identified in  the EC Article 21.5 request for the establishment 
of a panel as required by Article 6.2 of the DSU.  Second, the United States argues that the European 
Communities makes claims with respect to determina tions that are not measures taken to comply with 
the recommendations and rulings of the DSB in the original proceeding.  Specifically, the 
United States challenges the inclusion, by th e European Communities, of claims concerning 
administrative reviews that were not at issue in th e original proceedings and of claims concerning 
sunset reviews. 
8.19 We examine, in turn, each of the two grounds raised by the United States, starting with the 
US argument that some measures were not identifie d by the European Communities in its Article 21.5 
panel request. 
1. Whether the European Communities makes cl aims with respect to measures that were 
not identified in its panel request  
(a) Main arguments of the parties 
8.20 The United States556 notes that Article 6.2 of the DSU provides that a panel request shall 
"identify the specific measures at issue".  The United States submit s that the key passage of the EC 
                                                      
554 At least two prior WTO panels have taken a similar view.  See Panel Report, United States – 
Subsidies on Upland Cotton – Recourse to Article 21.5 of the DSU by Brazil ("US – Upland Cotton (Article 21.5 
– Brazil) "), WT/DS267/RW and Corr.1, adopted 20 June 2008, as modified by Appellate Body Report, 
WT/DS267/AB/RW, para. 8.28; Panel Report, Guatemala – Definitive Anti-Dumping Measures on Grey 
Portland Cement from Mexico  ("Guatemala – Cement II "),WT/DS156/R, adopted 17 November 2000, 
DSR 2000:XI, 5295, para. 8.11. 
555 In light of our conclusion that the DSU provides no legal basis for us to make any ruling on the 
exercise, by the Director-General, of his authority under Article 8.7 of the DSU, we do not consider it necessary 
to examine further the US argument th at the EC claims with respect to our composition are not within our terms 
of reference.   
556 The US arguments are found in the US First Wr itten Submission, paras. 33-35, and in the US 
Second Written Submission, paras. 10-36.  WT/DS294/RW 
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 Article 21.5 panel request in this respect is paragraph 7.557  The United States asserts that this 
paragraph plainly states that the measures at issue in  this proceeding are the 15 original investigations 
and 16 administrative reviews that were at issue in the original proceeding.  The United States notes 
that the European Communities, in its submissions, st ates that the measures listed in the Annex to its 
Article 21.5 panel request fall with in the terms of reference of the Panel.  According to the 
United States, the only reference in the EC Article 21 .5 panel request to the Annex is in paragraph 7 
("Details of the reviews in question are set out in the annex"), and that paragraph is clear that the 
subsequent reviews listed in the Annex are not them selves "measures in question", but only "related 
to" the "measures in question".  For the United St ates, the European Commun ities seeks to expand the 
terms of reference beyond the specific measures id entified in its panel request to transform the 
"reviews", referenced in its panel request as separat e and distinct from the "measures at issue", into 
"measures" within the terms of reference.  Theref ore, the United States argues, any "measures" other 
than those reviews are not "measures" s ubject to findings in this proceeding. 
8.21 The European Communities558 asks the Panel to reject the US arguments.  The European 
Communities considers that the United States either  ignores or misconstrues the express terms of 
paragraph 7 of its Article 21.5 panel request when it asserts that the phrase "measures in question" in 
that paragraph, which refers to the 15 original inv estigations and 16 administrative reviews at issue in 
the original dispute, does not encompass the meas ures that the European Communities seeks to place 
before this compliance panel.  The European  Communities submits that the express terms of 
paragraph 7 refer to "the reviews related to  the measures in question", and expressly cross-reference 
the Annex to the panel request, which lists the measures that the European Communities does place 
before this compliance panel.   
8.22 In any event, the European Communities considers that it h as adequately identified the 
measures at issue in this dispute in its panel request.  The European Communities refers to the 
Appellate Body Report in US – FSC (Article 21.5  – EC II) , where the Appellate Body observed that 
in order to identify the "specific measures at issu e" in an Article 21.5 proceeding, the complaining 
party must (i) cite the recommendations and rulings made by the DSB in the original dispute, which 
have allegedly not been complied w ith, and (ii) identify with suffi cient detail the measures allegedly 
taken to comply with those recommendations and rulings, as well as any omissions or deficiencies 
therein, or state that no such measures have been  taken.  The EC panel request fully meets these 
requirements.  The EC request identifies not onl y the positive acts taken by the United States to 
comply, but also the omissions and deficiencies in the US compliance:  paragraphs 4 and 7 of the EC 
Article 21.5 panel request state that the "US con tinues to impose, collect, or liquidate anti-dumping 
duties at a rate inflated by 'zeroing' beyond 9 Apr il 2007" and that "the US has continued zeroing in 
the reviews related to the measures in question.  Th e United States has not eliminated zeroing in these 
reviews...".  Moreover, for the purpose of further detailing the omissions and deficiencies, the EC 
panel request includes an Annex listing "subsequent  reviews" carried out by the United States in 
connection with the 15 original investigations and 16  administrative reviews referred to in the original 
dispute.  Finally, the European Communities argues th at the list of "subsequent reviews" contained in 
the Annex is sufficiently clear so that the United States can know of the measures which are the object 
of this proceeding.  The European Communities observes that the United States seems to have 
                                                      
557 Quoted at para. 8.28 below – see WT/DS/294/25, Annex A-1 cited in US First Written Submission, 
para. 33.   
558 See EC Second Written Submission, paras. 25-31.  We note that the European Communities 
anticipated the US request for a preliminary ruling:  the European Communities addressed the issue of the jurisdiction of the panel in its First Written Submission, before the United States challenged the jurisdiction of 
the Panel over EC claims with respect to certain meas ures.  See EC First Written Submission, paras. 47-64. WT/DS294/RW  
Page 98  
 
 correctly understood the measures covered by this di spute when referring to Charts I and II of the 
Annex in its First Written Submission.
559 
8.23 In response, the United States  submits that the European Communities elected, in its panel 
request, to refer to the determinations in the 15 or iginal investigations and 16 administrative reviews 
at issue in the original proceeding as "measures", which the United States considers is a term of art 
having a particular meaning in the context of Article 6.2 DSU, but only referred to all other 
determinations in that request as "reviews".  Th e European Communities app ears to assume that the 
words "related to" transform the "reviews" into "me asures" included within the terms of reference for 
purposes of its panel request.  However, nowhere does the panel request state that those reviews are in fact the measures in question.  Further, the United States submits that the reviews are "actions", not 
omissions, so a fair reading of the panel request does not allow subseque nt reviews to be read into the 
panel request.
560  In response to the EC argument that the US ability to reference the reviews in the 
Annex is somehow evidence that those reviews are measures, the United States argues that the 
question is not whether the European Communities listed the reviews.  Rather, it is whether the 
European Communities identified those reviews as measures  for purposes of this proceeding.  Finally, 
while the European Communities contends that its re ference to "omissions" brings the reviews in the 
Annex within the terms of reference, an omission is a failure to act, not an action; the reviews are "actions"; and the reviews are therefore not omissions .  Thus, a fair reading of the panel request does 
not allow subsequent reviews to be read into the word "omission." 
(b) Main arguments of the third parties 
8.24 Japan
561 believes that the EC panel request specifically identified the periodic and sunset 
reviews that are related to the original measures.   Japan notes that the US First Written Submission 
itself states that the EC panel request "identif ies" the very measures that the United States 
simultaneously says were not "identified".562  Thus, for Japan, the United States takes issue with the 
fact that the EC panel request does not stat e that the reviews are "measures in question ", even though 
it specifically "identifies" them.  Japan notes that paragraph 7 of the panel request explains that the 
reviews specifically identified in the Annex were related to the original measures and describes these 
reviews as being "in question", the very words that the United States says were not used by the European Communities in connection with the measures.   
(c) Evaluation by the Panel 
8.25 Article 6.2 of the DSU provides that: 
"The request for the establishment of a pane l shall be made in writing.  It shall 
indicate whether consultations were held, identify the specific measures at issue  and 
provide a brief summary of the legal basis of the complaint sufficient to present the 
problem clearly...." (emphasis added) 
The Appellate Body confirmed, in its Report in US – FSC (Article 21.5 – EC II) , that the Article 6.2 
requirement to identify the measures at issue in the panel request applies in the context of an 
Article 21.5 compliance dispute.  The Appellate Body  observed that:   
                                                     
 
559 EC Second Written Submission, para. 30, referrin g to US First Written Submission, paras. 23-25. 
560 See also footnote 49 to the US First Written Subm ission and paras. 12-17 of the US Second Written  
Submission, where the United States mentions that by using different terms to describe the reviews in question, 
the EC First Written Submission (as opposed to the EC Articl e 21.5 panel request)  fails to precisely identify the 
matters and measures at issue.   
561  Japan's Third Party Submission, paras. 7-12. 
562 Japan refers to paras. 24 and 25 of the US First Written Submission.  WT/DS294/RW 
 Page 99 
 
 
 "in order to identify the "specific measures at  issue" and to provide "a brief summary 
of the legal basis of the complaint" in a panel request under Article 21.5, the complaining party must identify, at a  minimum , the following elements in its panel 
request.  First, the complaining party must  cite the recommendations and rulings that 
the DSB made in the original dispute as  well as in any preceding Article 21.5 
proceedings, which, according to the complain ing party, have not yet been complied 
with.  Secondly, the complaining party must either identify, with sufficient detail, the 
measures allegedly taken to comply with those recommendations and rulings, as well 
as any omissions or deficiencies therein, or state that no such measures have been 
taken by the implementing Member.  Thirdly, the complaining party must provide a 
legal basis for its complaint, by specifying how the measures taken,  or not taken, fail 
to remove the WTO-inconsistencies found in  the previous proceedings, or whether 
they have brought about new WTO-inconsistencies ..."
563 
8.26 In US – FSC (Article 21.5 – EC II) , the United States had argued that the European 
Communities failed to properly identify certain of the measures at issue in its second Article 21.5 
panel request.564  Thus the issue before the Appellate Body  was that of the identification of measures 
(the second element identified by the Appellate B ody in the paragraph quoted above); the Appellate 
Body characterized this issue as "whether the EC panel request put the United States on sufficient 
notice  that a challenge was being brought against the continued operation of" the measure at issue in 
the first compliance dispute.565  
8.27  The US arguments before us are, similarly, limited to the issue of the identification of the 
measures in the EC panel request.  Consequently, we must determine whethe r the EC panel request 
sufficiently put the United States on notice that it w as bringing a challenge against the measures listed 
in the Annex to that panel request, which the partie s and we have, in the course of this proceeding, 
referred to as "subsequent reviews".  The other c onsideration is, in our view, whether the EC panel 
request clearly defines the scope of this compliance dispute.566  Expressed differently, we need to 
determine whether the EC Article 21.5 panel request  creates uncertainty as to the measures that are 
the subject of this compliance proceeding.   
8.28 The parties agree that the paragraph of the EC Ar ticle 21.5 panel request th at is relevant to the 
issue of the identification of the "subsequent re views" as measures at issue in this dispute is 
paragraph 7, which reads as follows:   
                                                      
563 Appellate Body Report, United States – Tax Treatment for "Foreign Sales Corporations" – Second 
Recourse to Article 21.5 of the DSU by the European Communities  ("US – FSC (Article 21.5 – EC II) "), 
WT/DS108/AB/RW2, adopted 14 March 2006 , para. 62. 
564 Specifically, the United States argued that the European Communities had failed to explicitly 
reference Section 5 of the ETI Act, the measur e at issue in the first compliance proceeding. 
565 Appellate Body Report, US – FSC (Article 21.5 – EC II),  para. 65 
566 Appellate Body Report, United States – Countervailing Duties on Certain Corrosion-Resistant 
Carbon Steel Flat Products from Germany  ("US – Carbon Steel "), WT/DS213/AB/R and Corr.1, adopted 
19 December 2002, DSR 2002:I X, 3779, para. 126:   
"The requirements of precision in the request for the establishment of a panel flow from the 
two essential purposes of the terms of reference.  First, the terms of reference define the scope 
of the dispute.  Secondly, the terms of reference, and the request for the establishment of a panel on which they are based, serve the  due process  objective of notifying the parties and 
third parties of the nature of a compla inant's case. ...'" (footnotes omitted) 
See also Panel Report, Canada – Measures Relating to Exports of Wheat and Treatment of Imported Grain  
("Canada – Wheat Exports and Grain Imports "), WT/DS276/R, adopted 27 September 2004, upheld by 
Appellate Body Report, WT/DS276/AB/R, DSR 2004:VI, 2817, para. 6.10, subparas. 5 and 16-17.   WT/DS294/RW  
Page 100  
 
 "With regard to the 15 original investigati ons and 16 administrative reviews, the US 
has continued zeroing in the reviews rela ted to the measures in question.  The 
United States has not eliminated zeroing in these reviews though they determine the cash deposit rate currently applicable, and/ or are relied upon to maintain the AD 
measure or to impose, collect or liquidate  anti-dumping duties at a rate inflated by 
zeroing after 9 April 2007.  Details of the revi ews in question are set out in the annex.  
For the reasons set out above, this is incons istent with Article 2, including 2.1, 2.4 
and 2.4.2, Article 9.3, and Article 11, incl uding 11.1, 11.2 and 11.3 (since, by relying 
on zeroed dumping margins, the United States did not properly determine that the expiry of the duty would be likely to lead to continuation or recurrence of dumping 
and injury) of the AD Agreement  and Articles VI:1 and VI:2 of the GATT 1994."
567 
8.29 It is obvious from the text of paragraph 7 that th e purpose of this paragraph is to indicate that 
the European Communities considers that the fact that the United States continued to zero in the 
"subsequent reviews" listed in the Annex is in consistent with a number of provisions of the Anti-
Dumping Agreement  and of the GATT 1994.  In other words, it is clear that the purpose of that 
paragraph is to identify the "subsequent reviews" as  measures at issue, and it does so by stating that 
the United States "has continued zeroing" and "has not eliminated zeroing" in the reviews listed in the 
Annex.   
8.30 The United States draws a contrast between the u se in paragraph 7 of the term "measures" or 
"measures in question", which the European Comm unities employs when referring to the measures 
(15 original investigations and 16 administrative reviews) at issue in the original proceeding, and the 
description of "subsequent reviews", in the same para graph of the panel request, as "reviews related to 
the measures in question".  As part of this argument, the United States asserts that the term 
"measures" is a term of art having a particul ar meaning in the context of Article 6.2 DSU.568  The 
                                                      
567 WT/DS/294/25, reproduced in Annex A-1. 
568 The United States states, in para. 13 of its Second Written  Submission, that: 
 "The crux of the matter is simple:  why would the EC elect to refer in its panel request to the determinations in the 15 investigations and 16 administrative reviews as 'measures' – a term 
with a particular meaning in the context of Article 6.2 of the DSU – but to all other 
determinations referenced in that request as 'reviews'?   Later, in its Answers to the Panel's Questions, the US nuanced its arguments in this respect.  See US 
Answer to Panel Question 1:   
"Q1. US:  Is it the US position that, in order to "identify" the "subsequent reviews"  as 
measures at issue in this proceeding consis tent with Article 6.2 of the DSU, the EC's 
Article 21.5 panel request should have, when re ferring to these (subsequent) reviews, used the 
precise terms 'measure', 'measure in question', or  'measures at issue'?  If so, where does the US 
find support, in the DSU, or in WTO case law, for such a requirement?" 
US Answer:   "The United States does not take the position that, in general, a panel request must use the 
term 'measure' to identify the measures at issu e.  However, the EC's panel request must be 
examined on the basis of the language used.'  In its Article 21.5 panel request, the EC used the word 'measure' to describe the determinations that it had challenged as applied in the original 
proceeding.  In that same panel request, the EC did not use the term 'measure' to describe what 
we have come to term the 'subsequent reviews. '  The EC repeated its deliberate choice of 
words in the Annexes to its Article 21.5 pane l request.  Examining the panel request 'on the 
basis of the language used,' and reading the panel request 'as a whole,' one must give meaning 
to the EC's deliberate use of 'measures' to describe the determinations in the original proceeding, and its deliberate use of a different term to describe the 'subsequent reviews.'  
This is particularly so when the EC chose to use the operative term from the text of Article 6.2 
itself since the EC is to be understood as invoking Article 6.2 to the extent it uses the language therein, and thus to be understood as choosing not to have the legal effect under Article 6.2 
when using different language. ...  WT/DS294/RW 
 Page 101 
 
 
 United States also submits that "the question is  not whether the European Communities listed the 
reviews.  The question is whether the Eu ropean Communities identified those reviews as measures  for 
purposes of this proceeding".569 
8.31 Insofar as the United States may be ascribing pa rticular significance to the use, by the 
European Communities, of the term "measure" only  in relation to the 31 determinations at issue in the 
original dispute, we consider that the US argum ents are overly formalistic.  Article 6.2 does not 
mandate the use of any particular term in identif ying the measures at issue.  What that provision 
requires is that the panel request state with suffi cient precision the measures that the complainant is 
bringing before the panel, so that the respondent  is put on notice of which measures are challenged 
and no uncertainty remains on the scope of the disput e.  Whether in doing so the complainant uses the 
term "measure" is, in our view, at most secondary.  Reading the EC Article 21.5 panel request as a 
whole, as we must570, we find that it clearly expresses the EC intent to place the "subsequent reviews" 
before us as part of the "specific measures at issue" in this compliance dispute. 
8.32 In light of the above, we find that the EC Artic le 21.5 panel request sufficiently identifies the 
"subsequent reviews" as "measures at issue" in th is dispute and we therefore decline to make the 
ruling under Article 6.2 of the DSU requested by the United States.   
2. Whether the "subsequent reviews"571 fall within our terms of reference 
(a) Arguments of the parties 
8.33 The United States  submits that the subsequent review s are not "measures taken to comply" 
and therefore do not fall within the Panel's terms of reference.  The United States requests the Panel to 
find that the only measures within the terms of re ference of this proceeding are the 15 original 
investigations and 16 administrative reviews at issue in the original dispute.572  The United States 
                                                                                                                                                                     
 
The United States is not asking the Panel to find that Article 6.2 would require the EC to use 
the term 'measure' to describe the subsequent re views.  Rather, the United States is asking the 
Panel to find that, reading the EC's panel request as a whole and in context, the EC's deliberate use of the term 'measure' to describe the determinations challenged as applied in the original 
proceeding, and its deliberate choice not to use that term to describe the 'subsequent reviews,' 
leads to the conclusion that the EC's Article 21.5 panel request did not identify the 'subsequent 
reviews' as measures for pu rposes of this proceeding." 
See also United States, Closing Statement at the substa ntive meeting of the Panel (hereinafter "US Closing 
Statement"), para. 12: 
"To be sure, a  Member is not necessarily obliged to refer to the measures in question as 
'measures'; but when a Member expressly uses the term 'measure' – a term of art referenced in 
Article 6.2 – to describe certain determina tions, it can be reasonably inferred that not 
describing other determinations as 'measures' has meaning, and that those determinations are 
in fact not measures subject to  challenge in the proceeding." 
569 US Second Written Submission, para. 15 (emphasis original). 
570 Appellate Body Report, US – Carbon Steel , para. 127:  "[C]ompliance with the requirements of 
Article 6.2 must be determined on the merits of each cas e, having considered the panel request as a whole, and 
in the light of attendant circumstances ."  See also Appellate Body Report, US – FSC (Article 21.5 – EC II) , 
para. 67. 
571 As noted above, we use the terms "subsequent reviews" as a shorthand for the various 
administrative and sunset review determinations listed in the Annex to the EC Article 21.5 Panel Request, other 
than the 15 original investigations and 16 administrative reviews at issue in the original dispute. 
572 US First Written Submission, para. 54.  The United States also argues that the European 
Communities apparently understood this to be the case, as it filed a second challenge to the US calculation 
methodology in an entirely separate proceeding (DS350) and, in its panel request in that dispute, included some WT/DS294/RW  
Page 102  
 
 argues that there must be an express link between the alleged measures taken to comply and the 
recommendations and rulings of the DSB, and that not every measure that has some connection with, 
or could have some impact upon a measure taken to comply may be scrutinized in an Article 21.5 proceeding.  Rather, only those measures "taken in the direction of , or for the purpose of achieving  
compliance [with the recommendations and rulings of  the DSB]" fall within the competence of an 
Article 21.5 panel.
573   
8.34 The United States argues that the European Comm unities seeks to add to the Panel's terms of 
reference reviews that are distinct from the measures that were the subject of the DSB 
recommendations and rulings.  With respect to administrative reviews, only the 16 administrative reviews at issue in the original proceeding were  the subject of DSB recommendations and rulings; 
none of the other measures the European Communities seeks to include in these proceedings was the 
basis for a DSB recommendation or ruling.  Further, the European Communities, in its original panel 
request, identified USDOC determinations in  16 administrative reviews, but challenged particular 
margins in those determinations.  The European Communities also challenged multiple reviews  
arising out of the same AD order.  Thus, in th e original proceeding, the European Communities 
treated each review as a separate measure, and cha llenged specific margins in such measures and, in 
its original panel request, recognized that a determin ation in one administrative review is separate and 
distinct from a determination made in a subsequent administrative review.  For the United States, this 
is consistent with the fact that in an inves tigation and in each administrative review, the USDOC 
examines different facts for a different time period, and a different set of transactions.  The European Communities cannot bring entirely new and distinct review determinations concerning 
different periods of time into the scope of th is proceeding simply b ecause these determinations 
involved the same subject merchandise.   
8.35 The United States also argues based on the timing of the subsequent reviews.  First, the 
United States contests the inclusion by the Eu ropean Communities of administrative review 
determinations that pre-date  the adoption of the DSB recommendations and rulings.
574  Relying on the 
Appellate Body’s statement in US – Softwood Lumber IV (Article 21.5 – Canada)  that "[a]s a whole, 
Article 21 deals with events subsequent  to the DSB's adoption of recommendations and rulings in a 
particular dispute",575 the United States considers that determinations that pre-date the adoption of a 
dispute settlement report are not taken for the pur pose of achieving compliance and cannot be within 
the scope of an Article 21.5 proceeding.  The United States notes that some of the disputed determinations even pre-date the revised panel request in the original dispute, meaning that the 
European Communities is seeking to include in this proceeding dete rminations that it could have 
challenged, but did not challenge, in the original dispute.
576    
8.36 The United States argues that the European Comm unities attempts to use this proceeding to 
obtain the effect of an "as such" finding with respect  to administrative reviews when it argues that the 
US implementation obligations with respect to the "as applied" claims extend to distinct 
determinations which supersede the measures at issue in the original dispute.  The United States notes 
that only "as applied" findings were made with r espect to administrative reviews in the original 
dispute and thus there are no DSB recommendations or  rulings relating to "as such" findings.  With 
                                                                                                                                                                     
of the same measures that are listed in the Annex to its  panel request in the present dispute.  US First Written 
Submission, para. 44. 
573 The United States cites from Appellate Body Report, United States – Final Countervailing Duty 
Determination with Respect to Certain Softwood Lumber from Canada – Recourse by Canada to Article 21.5 of 
the DSU  ("US – Softwood Lumber IV (Article 21.5 – Canada) "), WT/DS257/AB/RW, adopted 
20 December 2005, DSR 2005:XXIII, 11357, pa ra. 66 (emphasis in the original). 
574 See US First Written Submission, footnote 62 for the determinations identified by the United States 
as having been made prior to the adoption by the DSB of the panel and Appellate Body reports. 
575 Appellate Body Report, US – Softwood Lumber (Article 21.5 – Canada) , para. 70. 
576 US Second Written Submission, para. 27.  WT/DS294/RW 
 Page 103 
 
 
 respect to sunset reviews, the United States recalls  that the European Communities did not challenge 
any sunset review in the original proceeding an d thus, there are no DSB recommendations or rulings 
relating to sunset reviews.  The United States argues that, as a consequence, the sunset reviews 
identified in the EC Article 21.5 panel request cannot be within the terms of reference of this Panel.577 
8.37 The European Communities578 considers that all the measures referred to in its submissions 
(i.e., the measures mentioned in the Annex to its Panel request, in addition to the Section 129 
determinations explicitly designate d by the United States as "measures taken to comply") fall within 
the scope of this proceeding.  The European Co mmunities submits that a complaining party in an 
Article 21.5 proceeding can challenge either a Member's implementing actions ( i.e.,  measures which 
have been adopted) or their omissions  (i.e., measures which should have been adopted) – an 
Article 21.5 proceeding is not only about the consistency  of a measure taken to comply with the 
covered agreements, but also about the existence  of such a measure.   
8.38 The European Communities first argues that  the subsequent reviews and assessment 
instructions with respect to the measures challenge d in the original dispute are measures which were 
covered by the DSB's recommendations and rulings in the original dispute and adds that the 
"measures taken to comply" necessarily flow from the particular "recommendations and rulings" in 
question.  The European Commun ities argues that in the present case,  the "as applied" measures 
challenged in the original dispute were describ ed as:  (i) the 15 original investigations, including "any 
amendments"  and " each of the assessment instructions  issued pursuant to any of the 15 Anti-Dumping 
Duty Orders" and (ii) the 16 administrative reviews, including " any amendment " and " each of the 
assessment instructions  issued pursuant to any of the 16 Notices of Final Results".579  Therefore, the 
United States was required to bring the 15 original  investigations and 16 administrative reviews at 
issue in the original dispute, in cluding any amendments and assessment instructions, into conformity.  
The European Communities considers, in particular , that the United States has failed to take the 
necessary measures to eliminate zeroing in the sub sequent reviews – it has continued using the same 
methodology which was found inconsistent with the  Anti-Dumping Agreement  and the GATT 1994 by 
the reports adopted by the DSB when carrying out  dumping determinations in subsequent review 
proceedings referring to the measures at issue in the original dispute.  The European Communities 
also submits that the United States cannot now reope n an issue that was already settled by the panel 
and the Appellate Body in the original disput e.  The European Communities asserts that the 
United States had tried without success to change th e description of the measures when the original 
panel issued the descriptive part of its report, but th at the panel considered that the description of the 
measures was clear and respected the EC description of the measures, including any amendments and 
any assessment instructions.580  The European Communities further argues that the ordinary meaning 
of the term "amendment" is "change , modification", which is not limited only to "corrections", as the 
United States submits.   
                                                      
577 The United States observes that "the EC appears to have recognized that claims against sunset 
reviews must be made in the original panel request, because it has expressly done so in its other zeroing dispute 
[DS350] against the United States".  US First Writte n Submission, para. 52. The United States adds, in 
footnote 70 to its First Written Submission, that four of the sunset review determinations cited by the 
European Communities have been terminated because the USDOC revoked the AD orders (cases 2, 3, 4 and 5) 
effective 7 March 2007.  The United States refers to Exhibit US-13. 
578 The European Communities included in its First Written Submission a section entitled "Preliminary 
Issue:  Jurisdiction of the Panel".  EC First Written Submission, paras. 47-64. 
579 The European Communities indicates that the original panel described the measures at issue, both in 
its description of the EC claims, and in its findings, as including "any amendments, including the assessment 
instructions" to the AD orders, and that the Appellate Body merely referred to the original panel's description of 
the measures.  EC Second Written Submission, paras. 39-43.   
580 EC Opening Statement, para. 13, referring to Exhibit EC-32 and Panel Report, US – Zeroing (EC) , 
paras. 6.12-613. WT/DS294/RW  
Page 104  
 
 8.39 The European Communities also submits that the omissions  and deficiencies  by the 
United States are also covered by this proceedi ng and that, accordingly, the Panel is called upon to 
examine the existence (or non-existence) of measu res taken to comply by the United States, in 
particular by examining the subsequent review proc eedings listed in the Annex to the Panel Request.  
The complainant in an Article 21.5 case can cha llenge either a Member's implementing actions 
(measures that have been adopted, i.e., measures taken to comply) or  omissions (measures which 
should have been adopted, i.e., measures which do not exist).
581  The European Communities 
considers that the Section 129 determinations  are insufficient to comply with the DSB 
recommendations and rulings because the United Stat es has continued using zeroing when calculating 
the duties to be collected and establishing new cash deposits with respect to the measures challenged 
in the original dispute (including those listed in the Annex as subsequent measures), and because the 
United States has relied on the dumping margins cal culated with zeroing when finding a likelihood of 
recurrence of dumping in sunset review proceedings.  In this sense, in addition to challenging certain 
Section 129 determinations, the European Communities challenges the omissions by the United States 
to take the necessary measures to comply.  According to the Euro pean Communities, the 
United States, on 9 April 2007, (i) should have stopped taking any positive acts providing for the 
collection of anti-dumping duties based on zeroing in connection with any of the measures at issue in the original dispute, and thus, with respect to the "subsequent reviews",
582 and (ii) should have 
recalculated, without zeroing, the previous dumping  margins based on zeroing in order to rely on 
them in assessing likelihood of dumping in sunset re view proceedings with respect to the measures at 
issue in the original proceedings .  According to WTO jurisprude nce, a measure that essentially 
replaces an earlier measure remains within the terms of reference of an original panel.583  T h e  
European Communities asserts that an Article 21.5 panel must be in a position to assess whether an 
annual administrative review (or sunset review) that confirms and supersedes the original 
determination relating to the same anti -dumping duty and the same methodology ( i.e.,  zeroing) 
constitutes a "continuing violation".   
8.40 For the European Communities,  the consequence of concluding that the subsequent 
administrative and sunset reviews are not before the panel would be that the US system of duty 
assessment is turned into a moving target that escapes from AD disciplines:  each administrative 
review would have to be the subject of a new pane l request, and by the time the panel, Appellate Body 
and implementation procedures were completed, another administrativ e review would have overtaken 
the results of any Section 129 determination. Such a result would run contrary to the purpose and 
objective of Article 21.5 of the DSU.584   
8.41 In the alternative, the European  Communities argues that even if  the subsequent reviews were 
to be considered as separate dete rminations or different measures than those covered by the DSB's 
recommendations and rulings in the original disput e, they can be regarded as "measures taken to 
comply" because they are closely connected with  the 15 original investigations and the 16 
                                                      
581 The European Communities rejects the US argument that only measures that are "taken in the 
direction of, or for the purpose of achieving compliance" fall under the jurisdiction of an Article 21.5 panel. 
582 The European Communities, in its Opening Statement,  clarified its argument in this respect:  "the 
United States should, on 9 April 2007, have stopped taking any positive acts providing for the final payment of 
duties or retention of cash deposits based on zeroing with respect to those entries not finally liquidated before the end of the reasonable period of time, in connectio n with any of the measures described in the original 
dispute, and thus, with respect to the measures contained in the Annex to the Panel Request".  EC Opening 
Statement, para. 21. 
583 Panel Report, Dominican Republic – Measures Affecting the Importation and Internal Sale of 
Cigarettes  ("Dominican Republic – Import and Sale of Cigarettes "), WT/DS302/R, adopted 19 May 2005, as 
modified by Appellate Body Report, WT/DS302/AB/R, DSR 2005:XV, 7425, paras. 7.11-7-21, cited in EC First Written Submission, footnote 57. 
584 EC First Written Submission, para. 63.  WT/DS294/RW 
 Page 105 
 
 
 administrative reviews in the original dispute.585  The European Communities relies on the panel 
report in US – Upland Cotton (Article 21.5 – Brazil)  and the Appellate Body Report in US – Softwood 
Lumber IV (Article 21.5 – Canada)  for the proposition that measures with a sufficiently close nexus  to 
the measures taken to comply or with the DSB r ecommendations and rulings fall within the scope of 
Article 21.5 proceedings.  The European Communities argues that the nature  of the subsequent 
reviews is, in essence, the same as the measures (o riginal investigations and administrative reviews) 
in the original dispute ( i.e., collect anti-dumping duties and establish cash deposits based on zeroing) 
and that the violation originally challenged (the  use of zeroing when calculating dumping margins) 
still remains in the subsequent review proceedings.  Further, the subsequent review proceedings relate 
to the same products, the same countries and the same  exporting companies; they are a continuation of 
the 15 original investigations and 16 administrative reviews at issue in the original dispute, whose 
effects based on zeroing still remain in place after the end of the reasonabl e period of time.  The 
European Communities submits that the United States itself admits this close relationship when it 
argues that the subsequent reviews (and/or the revo cation of the original orders) relieves it of any 
obligation to act in order to comply with th e DSB's recommendations and rulings.  But for these 
reviews, the United States would have been requi red to revise the challenged measures.  As to timing , 
the close relationship between the subsequent review  proceedings remains, regardless of when they 
were issued; the fact that a me asure predates the adoption of the reports by the DSB cannot exclude 
per se  such a measure from the scope of compliance proceedings.   
8.42 The European Communities responds  to the US argument that it is attempting to use this 
Article 21.5 proceeding to obtain the effect of an "as such" finding586 by asserting that it is not arguing 
in general  that the US implementation obligations with respect to the "as applied" claims extend to 
distinct determinations – for example related to  other products or other sub-regions of the 
European Communities, or entirely new original investigations.  Rather, what the European 
Communities argues is that, in this particular cas e, since the subsequent reviews and assessment 
instructions were part of the measures challenged in the original dispute, the US implementation 
obligations with respect to the "as applied" cl aims extend to any subsequent determination and 
assessment instruction in connection with the measur es in the original dispute, as well as the related 
US omissions or deficiencies.  In other words, the sc ope of the "as applied" finding covered, in the EC 
view, every instance of application (and omission or deficiency) of the zeroing methodology by the United States with respect to any amendments (whi ch in the EC view includes subsequent reviews) 
and assessment instructions, relating to the 15 original  investigations and 16 administrative reviews, 
since those were part of the measures originally challenged "as applied".  Limiting the "as applied" 
finding as the United States suggests would in the EC vi ew lead to absurd results:  it would imply that 
an investigating authorit y could adopt new measures to replace th e one found to be WTO-inconsistent 
but containing exactly the same violations.  In addition, the European Co mmunities argues that the 
distinction between "as such" and "as applied" findi ngs should not be mechanistically applied in this 
case.
587  Regardless of the characterisation of the findings made by the Panel and the Appellate Body 
in the original dispute, the DSB's recommendati ons and rulings clearly stated that the zeroing 
methodology applied by the United States in the 15 or iginal investigations and the 16 administrative 
reviews was inconsistent with Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement  and Article VI:2 
of the GATT 1994.  When it applied the same zeroi ng methodology in the subsequent reviews listed 
in the Annex to the Panel Request, the United Stat es failed to comply with the DSB's recommendation 
to bring the measures into conf ormity with its obligations. 
                                                      
585 The European Communities clarified in its Opening Statement that its arguments in this respect are 
made in the alternative, should the Panel consider th at the subsequent reviews were not included in the 
description of the measures in the original di spute.  EC Opening Statement, para. 24.   
586 EC Second Written Submission, paras. 52-58. 
587 EC Opening Statement, para. 40. WT/DS294/RW  
Page 106  
 
 8.43 With respect to sunset reviews, the Europ ean Communities  makes essentially the same 
arguments as it makes in relation to administrative reviews:
588 the DSB recommendations and rulings 
also covered any amendments to the 15 original in vestigations and 16 administrative reviews.  By 
their nature, the European Commun ities argues, sunset review pro ceedings are amendments to the 
original measures because they restart the application of  the duty for another five years and, thus, they 
were covered by the DSB's recommendations and the findings in the original dispute.  The European 
Communities also argues that, like the administrative reviews, the sunset reviews listed in the Annex 
are "measures taken to comply" since they are clo sely connected to the original investigations and 
administrative reviews in the original dispute.   
8.44 The United States , in response, maintains that the EC contentions that (i) the subsequent 
reviews were part of the terms of reference of the original proceeding, (ii) that they are measures 
taken to comply, and (iii) that they are "omissions",  are mutually contradictory.  The United States 
notes in addition that the European Communities argu es that measures taken to comply both exist and 
do not exist, at the same time.  These propositions are, the United States submits, mutually contradictory.
589   The European Communities cannot have it both ways – if the United States failed to 
comply by "omission", then any corresponding finding against the United States should be that a 
measure was not taken to comply, not that subsequent dete rminations are inconsistent with the US 
obligations. 
8.45 The United States refutes the EC argument that the subsequent reviews were part of the 
original proceedings as "amendments" to the 15 orig inal investigations and 16 administrative reviews 
at issue in the original dispute.  The United Stat es submits that the term "amendment" had a precise 
meaning in the original dispute:  it referred to co rrections to the measures identified in the original 
proceeding e.g.  to correct for ministerial errors590 or amendments resulting from domestic litigation, 
but not to subsequent determina tions, which involve different entr ies, different time periods, and 
perhaps even different parties.  This  is evidenced by the EC panel requ est in the original dispute:  in 
that request, the European Communities referre d to specific determinations as "amended",591 but listed 
as separate "cases" the investigation and the administrative review relating to the same order and 
listed separately multiple administrative reviews relati ng to the same order.  Thus, the original EC 
panel request confirms that the term  "amendments" did not refer to sub sequent reviews.  Similarly, the 
United States argues that sunset reviews are not ame ndments to the original measures; sunset reviews 
do not determine anti-dumping liability, they are not me re corrections or removal of errors from an 
investigation, but rather are a separate determin ation for a separate purpose based on different facts 
and evidentiary standards.   
8.46 In addition, the United States asserts that the original "as applied" claims of the 
European Communities could not have been as br oad as it contends:  most of the subsequent 
determinations did not exist at the time of est ablishment of the original panel (19 March 2004).592  
                                                      
588 EC Second Written Submission, paras. 47-50. 
589 The US recalls that the Appellate Body has indicat ed that "[i]n principle, a measure which has been 
taken to comply ... will not be the same measure as the me asure which was the subject of  the original dispute..."  
US Second Written Submission, footnote 11. 
590 Under US law and regulations, parties to an anti-dumping investigation (or review) may, within a 
specified period after publication of the final determination, identify "ministerial" errors – i.e.,  calculation and 
other similar errors, which USDOC will consider and, if it finds the error exists, will correct in an amendment to 
the final determination and anti-dumping order.   
591 See US Second Written Submission, para. 19. 
592 As indicated above, the United States further notes that some determinations listed in the Annex to 
the EC Article 21.5 panel request were made prior  to the EC original corrected panel request, meaning that the 
European Communities seeks to include in this proceeding determ inations that it could have included in its 
corrected panel request.  US Second Written Submission, para. 27.    WT/DS294/RW 
 Page 107 
 
 
 They could therefore not have been part of  the original panel's terms of reference.593  Likewise, the 
DSB's recommendations and rulings could not have c overed any liquidation instructions that were not 
issued as of 19 March 2004.594    
8.47  The United States argues, in response to the EC  view that the determinations are "closely 
connected" to the measures at issue in the original pr oceeding, that the Appellate Body has stated that 
not every measure that has "some connection with", "could have an impact on" or could "possibly 
undermine" a measure taken to comply may be sc rutinized in an Article 21.5 proceeding.  The 
United States notes that in US – Softwood Lumber IV  (Article 21.5 – Canada) , the Appellate Body 
found it significant that the United States acknowle dged that the "methodology used by the USDOC 
in the First Assessment Review was adopted 'in view of' the recommendations and rulings of the 
DSB."  This was evident from the fact that the S ection 129 determination and the determination in the 
first administrative review both closely corresponde d to the expiration of the reasonable period of 
time, which provided the USDOC with the ability to take account of the DSB's recommendations and rulings in the first administrative review.  The situati on in this dispute is different:  in this dispute, 
many of the "subsequent" determinations were  made prior to the adoption of the DSB's 
recommendations and rulings.  The United States main tains that they could not have taken into 
consideration the recommendations a nd rulings of the DSB, and the European Communities has failed 
to provide any evidence that these subsequent dete rminations were adopted "in view" of the DSB's 
recommendations and rulings. 
8.48 The United States notes that two of the subsequent determinations identified by the 
European Communities were in changed circumstan ces reviews, and were made before the adoption 
of the DSB's recommendations and rulings; moreov er, both determinations addressed whether one 
company was successor in interest to another company, and was therefore entitled to that company's 
cash deposit rate – the USDOC did not recalculate any margins of dumping in these two changed circumstances reviews.  The remaining 36 determin ations were administrative reviews; the USDOC 
made its determinations in 26 of these reviews be fore the adoption of the DSB's recommendations and 
rulings.  Of the 10 remaining determinations, 4 ga ve no indication that the USDOC's treatment of 
non-dumped sales was an issue in the review; a nother four were made before the end of the 
reasonable period of time, and in those, the USDOC  made clear that the determinations were not 
being issued in view of the recommendations and ru lings.  The United States further indicates that in 
one of the two remaining determin ations, the 2005-2006 administrative review in Stainless Steel Bar 
from the United Kingdom, no party specifically raised the issue of non-dumped sales (although one 
party raised the issue of the recalculation of the all others rate from the Section 129 determination).  In 
the last administrative review, the 2004-2005 admi nistrative review in Hot Rolled Steel from the 
Netherlands, the Section 129 determ ination resulted in the revocation of the AD order.  The 
United States considers that it therefore had no furthe r obligation with respect to the Appellate Body's 
specific "as applied" finding, which was made only w ith respect to the original  investigation in that 
determination.  Moreover, that administrative review  determination cannot be said to have been made 
                                                     
 
593 The United States submits that under WTO jurisprude nce, measures that are not yet in existence at 
the time of panel establishment are not within a panel's terms of reference under the DSU; it cites in this regard the Appellate Body Report, European  Communities – Customs Cla ssification of Frozen B oneless Chicken Cuts 
("EC – Chicken Cuts "), WT/DS269/AB/R, WT/DS286/AB/R, adopted 27 September 2005, and Corr.1, DSR 
2005:XIX, 9157, para. 156; Panel Report, United States – Subsidies on Upland Cotton  ("US – Upland Cotton "), 
WT/DS267/R, Corr.1, and Add.1 to Add.3, adopted 21 March 2005, as modified by Appellate Body Report, 
WT/DS267/AB/R, DSR 2005:II, 299, para. 7.158; Panel Report, Indonesia – Certain Measures Affecting the 
Automobile Industry   ("Indonesia – Autos "), WT/DS54/R, WT/DS55/R, WT/DS59/R, WT/DS64/R and Corr.1 
and 2, adopted 23 July 1998, and Corr. 3 and 4, DSR 1998:VI, 2201, para. 14.3. 
594 The United States argues that the Panel should lik ewise find that it has no authority to review the 
sunset review determinations in cases 2, 3, 4 and 5 (Stainless Steel Bar from Fran ce, Germany, Italy and the 
United Kingdom) as the determination to revoke these an tidumping duty orders occurred after the establishment 
of not only the original panel, but also of this Panel.  US Second Written Submission, footnote 27. WT/DS294/RW  
Page 108  
 
 "in view of" the DSB's recommendations and rulings since the USDOC clearly stated that it did not 
consider that the DSB's recommendations and rulings required it to take any ac tion with respect to the 
treatment of non-dumped sales in that review, in particular because it considered that the challenged 
reviews were no longer in effect as each of the re views at issue in the original dispute had been 
superseded by a subsequent administrative review.
595  
8.49 The United States also notes that the original EC "as applied" claims did not include any 
challenges to determinations in sunset reviews.  Consequently, neither the original panel, nor the 
Appellate Body, made any findings in this dispute with respect to sunset reviews.596  
8.50 Further, the United States recalls that an "as a pplied" challenge concerns the "application of a 
general rule to a specific set of facts"; by contr ast, an "as such" claim challenges instruments of a 
Member that have general effect, and seeks to prevent a Member from engaging in certain conduct ex 
ante.  The European Communities complains of th e "continued" use of the allegedly "same 
methodology" that was the subject of DSB reco mmendations and ruling "when carrying out dumping 
determinations in the subsequent review proceedi ngs"; that is, the European Communities complains 
of the general and prospective application of the so-called zeroing methodology, and is attempting to 
gain the benefit of an "as such" finding when  the Appellate Body declined to make one. 
8.51 Finally, the United States submits that the legal and factual distinctions between the two types 
of proceedings with respect to the issue of zeroi ng are more relevant here than was the case in 
Softwood Lumber , in which the issue was the pass-through of  subsidies, and the legal basis for the 
panel's consideration did not differ as between the i nvestigation and the administrative review.  With 
respect to the issue of zeroing, however, there is a distinction between "model zeroing" in 
investigations and "simple zeroing" in reviews.  Th is distinction flows through to the legal bases for 
the findings against zeroing – which rely significantly on the text of Article 2.4.2 and, in particular, 
the phrase "all comparable export transactions" in the context of investigations.  In the context of 
reviews, however, that textual basis is absent and the Appellate Body has, instead, relied on the term 
"product" and the non-textual phrase "product as a whol e" to find that a margin of dumping cannot be 
calculated in a proceeding using zeroing.  Given the di stinctions in the factual and legal basis for the 
findings on investigations as compared to reviews, it would be inappropriate for the Panel to find that 
there is a sufficiently close nexus to address the s ubsequent reviews in an Article 21.5 proceeding.   
(b) Arguments of the third parties 
8.52 Norway  considers that all the measures referred to in the EC First Written Submission fall 
within the scope of the Panel's jurisdiction.  It  recalls that both positive acts taken to comply and 
omissions are covered by Article 21. 5, and considers that that any subsequent administrative reviews, 
sunset reviews, assessment instructions and li quidations based on zeroing must be viewed as 
evidencing "omissions" on the part of the United States.597  Like the European Communities, Norway 
                                                      
595 US Opening Statement at the substantive meeting of the Pa nel (hereinafter "US Opening 
Statement"), paras. 17 ff.   
596 In its Opening Statement, the United States noted, in addition, that in 11 of the sunset reviews 
challenged by the European Communities, the USDOC is sued its determination regarding the likelihood of a 
continuation or recurrence of zeroing before  the adoption of the reports by the DSB, and that four resulted in the 
revocation of the AD order.  In the one remaining sunset review determination, the interested parties did not 
raise, and the USDOC made no mention of the issue of non-dumped sales and thus, the determination could not have been made "in view of" the DSB's recommendations and rulings.  See US Opening Statement, para. 16 ff.   
597 Like the European Communities, Norway considers that the United States should, after the 
reasonable period of time, have stopped collecting anti-dumping duties calculated with the use of zeroing in connection with any of the measures th at were part of the original dispute, as well as in connection with any 
administrative review in these cases and that the US wa s under an obligation to recal culate without the use of  WT/DS294/RW 
 Page 109 
 
 
 also relies on US – Upland Cotton (Article 21.5 – Brazil) .  It recalls that, in that case, the Appellate 
Body set out three elements – nature, effect a nd timing – as additional criteria when assessing whether 
a measure which is not declared by the respondent to be a "measure taken to comply" nevertheless 
may be characterized as such.  In Norway's opini on, a consideration of these three elements with 
regard to the current case leads to the conclusion th at the subsequent reviews have a sufficiently close 
relationship with the recommendations and rulings of the DSB to be included in the scope of this 
proceeding.  With regard to the timing  element, Norway points out that in US – Softwood Lumber IV 
(Article 21.5 – Canada) , the Appellate Body assessed a measure  resulting from a review that was 
initiated before the adoption of the report.  The timi ng of a review is not the determining factor when 
it comes to whether it is a measure taken to comply; the important point is rather whether the review 
was completed and/or continued to  have effects after the end of the reasonable period of time.  
Finally, Norway submits that following the line of  argument set out by the United States would lead 
to the need to start a new panel for each admini strative review, and when another administrative 
review superseded the first, another panel would have  to be started.  This would run counter to the 
aim of Article 21.5 of the DSU. 
8.53 Japan  agrees with the European Communities that  the "subsequent" periodic and sunset 
reviews are covered by this proceeding.  Japan recalls that Article 21.5 proceedings may involve 
either acts and omissions (or a combination of both)  and that, contrary to what is argued by the 
United States, the Appellate Body has indicated that  not only measures that formed the basis of DSB 
recommendations and rulings or measures that have b een taken in the direction of compliance or with 
the objective of achieving compliance fall under the scope of Article 21.5.  Rather, Article 21.5 
proceedings may include closely conn ected measures that are "separate and distinct" from the original 
measures.  Japan recalls that, in US – Softwood Lumber IV (Article 21.5 – Canada) , the Appellate 
Body examined the connection between the measur es challenged under Article 21.5 and the original 
measures under what it describes as a "nexus-based test " that paid attention to (i) the nature or 
subject-matter of the measures; and (ii) the "effects" of the challenged measures on United States 
compliance with the DSB's recommendations and ruli ngs.  Applying these criteria, Japan asserts that 
the links between the original and subsequent measur es in this dispute are virtually the same as those 
that led the Appellate Body, in US – Softwood Lumber IV (Article 21.5 – Canada) , to conclude that a 
subsequent periodic review was subj ect to the Article 21.5 proceedings.598 
8.54 Japan considers that, contrary to the US ar gument, the DSB's recommendations and rulings 
are not converted into rulings on an "as such" measu re as a result of the position taken by the 
European Communities and Japan.  Only a very small subset of all US periodic reviews is challenged 
by the European Communities in these proceedings – those subsequent reviews that are closely 
connected to the DSB's recommendations and rulings  (same product, same exporters, same order or 
"proceeding", same "specific component":  zeroing).  Japan also considers that  the United States itself 
admits that the various measures are closely connected  when it argues that each of the reviews at issue 
in the original dispute has been "superseded" by subsequent administ rative review determinations (an 
argument of the United States with which Japan does not agree).  Accepting the US position would 
                                                                                                                                                                     
zeroing the previous dumping margins, in order to rely  on these margins in sunset reviews. Norway's Third 
Party Submission, para. 14. 
598 In particular, Japan notes that, in the present Article 21.5 dispute, (i) the original measures and the 
subsequent periodic reviews all resulted from anti-dumping proceedings  conducted by the USDOC; (ii) these 
measures all involved that authority's determination of the dumping margin ; (iii) in any given group of measures 
(identified in the annex to the EC panel request by numbered rows), the subject product is always identical ; 
(iv) in any given group of measures, the exporter is always identical (identified in the annex to the EC panel 
request in the fifth column); (v) any given group of measures is adopted pursuant to the same anti-dumping 
order ; and, (vi) for any given or der, the measures provide succeeding bases for the continued imposition of anti-
dumping duties on the subject product, with each new meas ure replacing the cash deposit rate of the previous 
measure, and determining the definitive duty rate for entries initially subjected to the cash deposit rate of the 
previous measure.  Japan's Third Party Submission, para. 46. WT/DS294/RW  
Page 110  
 
 mean that the WTO dispute settlement system cannot  effectively resolve disputes regarding the 
application of calculation methodologies in AD proceedings.   
8.55 With respect to the US arguments on timing , Japan argues that the United States incorrectly 
assumes that the timing of a measure's adoption is decisive under Article 21.5 because a measure can 
only be "taken" with the intent  "to comply" after the date of adoption of the DSB's recommendations 
and rulings.  Yet, it is well-established that a measur e may be "taken to comply" even if the Members 
intent  in taking the measure was not "to comply".  We re Article 21.5 not to apply to measures adopted 
prior to adoption by the DSB of the relevant report(s), it would be straightforward for the 
implementing Member to force the complainant to  begin new dispute settlement proceedings by 
adopting closely connected measures, prior to adop tion by the DSB of the relevant report(s), that 
undermine or prevent compliance.  The case-law under Article 6.2 of the DSU also suggests that the 
United States is incorrect in arguing that closel y connected measures adopted during a WTO dispute, 
but prior to adoption, must be split into separate WTO proceedings.  Past panels and the Appellate 
Body
599 have, in assessing the scope of a panel's jurisdiction, focused on the substantive connection , 
with respect to the disputed component, between  an original measure and a replacement or 
amendment measure adopted at any stage after th e consultations request.  The Appellate Body's 
approach in US – Softwood Lumber IV (Article 21.5 – Canada)  is very similar.  In sum, the case-law 
shows that a series of closely linked measures adopted  over time – starting with the original measures, 
continuing with measures adopted during consu ltations, the original proceedings, and into 
implementation – may all relate to "fundamentally th e same 'dispute'", and all be subject to the DSB's 
recommendations and rulings in that dispute, pr ovided they are substantively the same.   
(c) Evaluation by the Panel  
(i) Introduction 
8.56 The US request for preliminary rulings rai ses the issue of the scope of Article 21.5 
proceedings, and more specifically, the issue of wh ich measures may be examined by an Article 21.5 
panel to assess the responding Member's implemen tation of DSB recommendations and rulings.   
8.57 Article 21.5 of the DSU provides, in relevant part, that: 
"Where there is disagreement as to the existence or consistency with a covered 
agreement of measures taken to comply with the recommendations and rulings such dispute shall be decided through recourse to these dispute settlement procedures, 
including wherever possible resort to the original panel."  
8.58 The parties fundamentally disagree as to whet her the "subsequent reviews" – administrative 
reviews, changed circumstances reviews, and s unset reviews listed in the Annex to the EC 
Article 21.5 request for the establishment of a panel,  as well as related "assessment instructions" fall 
within the scope of this proceeding.  The follo wing table lists, in the right hand column, the 
subsequent reviews included in the Annex to the EC  panel request, and in the left hand column, the 
measure at issue in the original dispute with which each is associated (numbers 1-15 are the original 
                                                     
 
599 Japan refers to Panel Report, Brazil – Export Financing Programme for Aircraft  ("Brazil – 
Aircraft "), WT/DS46/R, adopted 20 August 1999, as modified by Appellate Body Report, WT/DS46/AB/R, 
DSR 1999:III, 1221, para. 7.11 and Appellate Body Report, Brazil – Export Financing Programme for Aircraft  
("Brazil – Aircraft "), WT/DS46/AB/R, adopted 20 August 1999, DSR 1999:III, 1161, para. 132; Appellate 
Body Report, Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products 
("Chile – Price Band System "), WT/DS207/AB/R, adopted 23 October 2002, DSR 2002:VIII, 3045, and Corr.1, 
para. 139; Panel Report, Dominican Republic – Cigarettes , paras. 7.15 and 7.21; Appellate Body Report, EC – 
Chicken Cuts , para. 157.    WT/DS294/RW 
 Page 111 
 
 
 determinations challenged in the original dis pute, numbers 16-31 are the administrative reviews 
challenged in the original dispute): 
Measures at issue in the original 
dispute Subsequent reviews 
 
Administrative reviews: 3 May 2001 – 31 October 2002 (69FR 43801, 22 July 2004) 4.8% 
1 November 2002 – 31 October 2003 (70FR 18366, 11 April 2005) 4.42% 1.  Certain Hot-Rolled Carbon Steel from the Netherlands 
1 November 2004 – 31 October 2005 (72FR 34441, 
22 June 2007) 2.26% 
Administrative reviews: 
1 March 2003 – 29 February 2004 (70 FR 46482, 10 August 2005) Ugitech 14.98% 
1 March 2004 – 28 February 2005 (71 FR 30873, 31 May 2006) Ugitech 9.68% 2.  Stainless Steel Bar from France 
Sunset Review:  DOC Final Determination (72 FR 30772, 
4 June 2007) 
Administrative reviews: 2 August 2001–28 February 2003 (69 FR 32982, 14 June 2004) BGH 0.52% 
1 March 2004–28 February 2005 (71 FR 52063, 1 September 2006) BGH 0.73% 3.  Stainless Steel Bar from Germany 
Sunset Review:  DOC Preliminary  Determination (72 FR 
29970, 30 May 2007) 
Administrative reviews: 2 August 2001– 28 February 2003 (69 FR 32984, 14 June 2004) Foroni 4.03% 
Ugine 33% 
4.  Stainless Steel Bar from Italy 
Sunset Review:  DOC Final Determination (72 FR 30772, 
4 June 2007)  
Administrative review: 1 March 2005 – 28 February 2006 (72 FR 15106, 30 March 2007) Enpar Special Alloys 33.87% 
5.  Stainless Steel Bar from the United Kingdom Sunset Review:  DOC Final Determination (72 FR 30772, 
4 June 2007) 
Administrative reviews: 1 September  2004 – 31 August 2005 (72 FR 26337, 
9 May 2007) Fagersta 19.36% 6.  Stainless Steel Wire Rod from 
Sweden Sunset Review:  Continuation order, (69 FR 50167, 
13 August 2004) 
Administrative review: 5 March 1998 – 31 August 1999 (66 FR 10988, 21 February 2001) Roldan SA 0.8%  
7.  Stainless Steel Wire Rod from Spain Sunset Review:  Continuation order, (69 FR 50167, 
13 August 2004) WT/DS294/RW  
Page 112  
 
 Measures at issue in the original 
dispute Subsequent reviews 
 
8.  Stainless Steel Wire Rod from 
Italy Sunset Review:  Continuation Order  (69 FR 50167, 
13 August 2004) 
9.  Certain Stainless Steel Plate in 
Coils from Belgium See case 18 below 
10.  Stainless Steel Sheet and Strip 
in Coils from France See cases 25 & 26 below 
 
Measure revoked  July 2004 (70 FR 44894, 
4 August 2005) 
11.  Stainless Steel Sheet and Strip 
in Coils from Italy See cases 21 & 22 below 
12.  Stainless Steel Sheet and Strip 
in Coils from the United Kingdom Measure revoked:  July 2004 (70 FR 44894, 
4 August 2005) 
13.  Certain Cut-to-Length Carbon-Quality Steel Plate from France Measure revoked:  Febr uary 2005 (70 FR 72787, 
7 December 2005)  
14.  Certain Cut-to-Length Carbon-Quality Steel Plate from Italy Sunset review:  Continuation Order (70FR 72607, 
6 December 2005). 
15.  Certain Pasta from Italy See cases 19 & 20 below 
16.  Industrial Nitrocellulose from 
France Two subsequent administrative reviews were rescinded, 
covering the periods: 
1 August 2000 – 31 July 2001 1 August 2002 – 31 July 2003  Measure revoked:  (69 FR 52231, 25 August 2004) 
Two subsequent administrative reviews were rescinded, covering the periods: 1 July 2001 – 30 June 2002 1 July 2002 – 30 June 2003 
Changed circumstance re view (December 2003) 
confirmed the rate of 3.06% to apply to Troon Investments, successor to ICI 17.  Industrial Nitrocellulose from the United Kingdom 
Measure revoked:  (69 FR 52231, 25 August 2004) 
Two subsequent reviews resu lting in change to rate: 
 1 May 2002 – 30 April 2003 (70FR 2999, 19 January 2005) 
2.71% 
1 May 2003 – 30 April 2004 
(70FR 72789, 7 December 2005) 2.96% 18.  Stainless Steel Plate in Coils from Belgium 
Sunset Review:  Continuation Order (70 FR 41202, 
18 July 2005)  WT/DS294/RW 
 Page 113 
 
 
 Measures at issue in the original 
dispute Subsequent reviews 
 
Ferrara:  Order revoked in Fe bruary 2005 following third 
consecutive review where the company had de minimis  
rate (70 FR6832, 9 February 2005) 
Pallante:  Order revoked in  November 2005 following third consecutive review where the company had de minimis  rate (70 FR71464, 29 November 2005) 
PAM:  Two subsequent reviews resulting in change to 
rate: 1 July 2001 – 30 June 2002 (69 FR 6255, 10 February 2004) 
45.49% 
1 July 2002 – 30 June 2003 
(70 FR 6832, 9 February 2005) 
4.78% 19.  Certain Pasta from Italy 
Sunset review:  DOC Final Determination (72 FR 5266 
5 February 2007) 
20.  Certain Pasta from Italy Pastifi Garofalo: 
One subsequent review resulting in change to rate:  1 July 2001 – 30 June 2002 (69 FR 22761, 27 April 2004) 
2.57% 
 
One review rescinded covering period: 
1 July 2002 – 30 June 2003 
21.  Stainless Steel Sheet Strip Coils from Italy See case 22 
Two subsequent reviews resu lting in change to rate: 
 
1 July 2001 – 30 June 2002 
(68 FR 69382, 12 December 2003) 1.62% 
1 July 2002 – 30 June 2003 (70FR 13009, 17 March 2005) 3.73% 22.  Stainless Steel Sheet Strip Coils from Italy 
Sunset review:  Continuation Order (70 FR 44886, 
4 August 2005) 
23.  Granular 
Polytetrafluorethylene from Italy See case 24 
24.  Granular 
Polytetrafluorethylene from Italy Two subsequent administrative reviews were rescinded, 
covering the periods: 
1 August 2002 – 31 July 2003 1 August 2003 – 31 July 2004  Changed circumstance review (May, 2003) confirmed the 
rate of 12.08% to apply to Solvay Solexis, successor to 
Ausimont WT/DS294/RW  
Page 114  
 
 Measures at issue in the original 
dispute Subsequent reviews 
 
1 subsequent review resulting in change to rate: 
 
1 August 2004 – 31 July 2005 (72FR 1980, 17 January 2007) 39.13%  
Sunset review:  Continuation Order (70 FR 76026, 
22 December 2005) 
25.  Stainless Steel Sheet Strip 
Coils from France See case 26 
3 subsequent reviews resulting in change to rate: 
 
1 July 2001 – 30 June 2002 (68 FR 69379, 12 December 2003) 2.93% 
1 July 2002 – 30 June 2003 (70 FR 7240, 11 February 2005) 9.65% 
1 July 2003 – 30 June 2004 (71 FR 6269, 7 February 2006) 12.31% 26.  Stainless Steel Sheet Strip 
Coils from France 
Measure revoked:  (70 FR 44894, 4 August 2005) 
27.  Stainless Steel Sheet Strip 
Coils from Germany See case 28 
4 subsequent reviews resulting in change to rate: 
 1 July 2001 – 30 June 2002 
(69FR 6262, 10 February 2004) 3.72% 
1 July 2002 – 30 June 2003 
(69 FR 75930, 20 December 2004) 7.03% 
1 July 2003 – 30 June 2004 (70 FR 73729, 13 December 2005) 9.5% 
1 July 2004 – 30 June 2005 (71 FR 74897, 13 December 2006) 2.45% 28.  Stainless Steel Sheet Strip Coils from Germany 
Sunset review:  Continuation Order (70 FR 44886, 
4 August 2005) 
SKF:  4 subsequent reviews resulting in change to rate: 
 1 May 2001 – 30 April 2002 (68 FR 43712, 24 July 2003) 6.70% 29.  Ball Bearings from France 
1 May 2002 – 30 April 2003 
(69 FR 55574, 15 September 2004) 5.25%  WT/DS294/RW 
 Page 115 
 
 
 Measures at issue in the original 
dispute Subsequent reviews 
 
1 May 2003 – 30 April 2004 
(70 FR 54711, 16 September 2005) 
8.41% 
1 May 2004 – 30 April 2005 (71 FR 40064, 14 July 2006) 12.57%  
Sunset Reviews:  Continuation Order (71 FR 54469, 
15 September 2006) 
FAG:  4 subsequent reviews resulting in change to rate:  1 May 2001 – 30 April 2002 (68 FR 35623, 16 June 2003) 2.87% 
1 May 2002 – 30 April 2003 (69 FR 55574, 15 September 2004) 4.79% 
1 May 2003 – 30 April 2004 (70 FR 54711, 16 September 2005) 5.88% 
1 May 2004 – 30 April 2005 (71 FR 40064, 14 July 2006) 2.52% 
SKF:  4 subsequent reviews resulting in change to rate: 
 
1 May 2001 – 30 April 2002 (68 FR 35623, 16 June 2003) 5.08% 
1 May 2002 – 30 April 2003 (69 FR 55574, 15 September 2004) 1.38% 
1 May 2003 – 30 April 2004 
(70 FR 54711, 16 September 2005) 
2.59% 
1 May 2004 – 30 April 2005 (71 FR 40064, 14 July 2006) 
7.65% 30.  Ball Bearings from Italy 
Sunset Reviews:  Continuation Order (71 FR 54469, 
15 September 2006) 
31.  Ball Bearings from the United Kingdom NSK Bearings:  No subsequent administrative reviews WT/DS294/RW  
Page 116  
 
 Measures at issue in the original 
dispute Subsequent reviews 
 
Barden:  1 subsequent administrative review rescinded for 
period:  1 May 2001 – 30 April 2002 
 2 subsequent reviews resulting in change to rate:  1 May 2002 – 30 April 2003 
(69 FR 55574, 15 September 2004) 
4.10% 
1 May 2003 – 30 April 2004 (70 FR 54711, 16 September 2005) 
2.78%  
Sunset Reviews:  Continuation Order (71 FR 54469, 
15 September 2006) 
 
8.59 The European Communities argues that the sub sequent reviews fall within our terms of 
reference for three reasons: 
(a) The subsequent reviews are covered by the DSB's recommendations and rulings as 
"amendments" to the original investigations  and administrative reviews at issue in the 
original dispute since the measures at issu e in the original dispute included "any 
amendments" and "any assessment instructions " to the 15 original investigations and 
16 administrative reviews challenged by the European Communities in that 
proceeding; 
(b) The subsequent reviews fall within th e terms of reference as "omissions" or 
"deficiencies" in the US implementation of  the DSB recommendations and rulings;   
and, in the alternative: 
 
(c) The subsequent reviews are "measur es taken to comply" because of the close nexus  
that exists between these reviews a nd the measures at issue and the DSB's 
recommendations and rulings in the original dispute. 
8.60 We examine each of the EC arguments in turn. 
(ii) Whether the subsequent reviews are "amendments" to the measures at issue in the original 
dispute 
8.61 The European Communities' first line of argumenta tion is that the original dispute "covered" 
not only the 15 original investigations and 16 ad ministrative reviews specifi cally identified in the 
context of the original dispute, but also any am endments thereto and any "assessment instructions", 
and that the subsequent reviews are such "amendme nts".  The United States rejects the EC arguments 
in this respect, and submits that the use of the term "amendments" in the original proceeding – in 
particular in the EC request for the establishment of the original panel – referre d to amendments in the 
form of corrections for ministerial errors or co rrections adopted following litigation in US courts.600 
                                                      
600 See, inter alia ,  US Second Written Submission, para. 21, US Opening Statement, para. 13.  WT/DS294/RW 
 Page 117 
 
 
 8.62 We must, to resolve this question, first examin e the findings of the pane l and of the Appellate 
Body in the original dispute. 
8.63 In the descriptive part of its report, at paragra ph 2.6 of its report, the original panel identified 
the measures challenged by the European Communities in the context of its "as applied" claims as 
follows: 
"the 15 Notices of Final Determinations of Sales at Less Than Fair Value, including 
any amendments , and including all the Issues and Decision Memoranda to which they 
refer, and all the Final Margin Program Logs and Outputs to which they in turn refer, 
for all the firms investigated; each of the 15 Anti-dumping Duty Orders; each of the 
assessment instructions issued pursuant to  any of the 15 Anti-dumping Duty Orders; 
and each of the USITC final injury determinations.21 ...  the 16 Notices of Final 
Results of Antidumping Duty Administrative Reviews, including any amendments , 
and including all the Issues and Decision Memo randa to which they refer, and all the 
Final Margin Program Logs and Outputs to wh ich they in turn refer, for all the firms 
investigated; and each of the assessment instru ctions issued pursuant to any of the 16 
Notices of Final Results." 22 
______________________ 
21 Exhibits EC-1 to EC-15;  EC-First Writte n Submission, paras. 48-56, 63 and 102;  
EC-Rebuttal Submission, para. 55.   
22 Exhibits EC-16 to EC-31; EC-First Written Submission, paras. 57-61, 148 and 
211.;  EC-Rebuttal Submission, para. 91."601 (underline added) 
8.64 Exhibits EC-1 to EC-15 include documents and information of the type referred to in this 
paragraph with respect to the 15 original inves tigation proceedings challe nged by the European 
Communities in the original case; Exhibits EC -16 to EC-31 contain similar documents and 
information with respect to the 16 administrative re views at issue in the original dispute.  The 
documents contained in the Exhibits correspond to the various measures or aspects thereof602 listed by 
the European Communities in its re quest for establishment in the original dispute.  The EC panel 
request in the original dispute603 contained two Annexes:  Annex I listed original investigation 
"cases", with different columns for (1) the DOC Fi nal Determination in the case, (2) the Final USITC 
Determination, and (3) the Final AD Order.  Furthe r specifics were provided:  rates for each exporter 
and what the rate without zeroing would allegedly be .  Similarly, Annex II listed  the administrative 
review "cases", with columns iden tifying (1) the reference to the publication of the Final Results, (2) 
the exporter(s) concerned and the relevant dumping ma rgin found, and (3), the period covered by the 
review.  Later, still in the descriptive part of its re port, the original panel described the findings sought 
by the European Communities with respect to its " as applied" claims by referring to the "original 
investigations" "identified" and "periodic revi ews" "listed" in the relevant EC Exhibits.604 
8.65 In describing again the EC requests for findings w ith respect to its "as applied" claims in the 
"Findings" section of its report, the original panel us ed a slightly different formulation and referred to 
the "cases and measures" "listed" in the EC exhibits.605  In the same "Findings" section of its report, 
                                                      
601 Panel Report, US – Zeroing (EC) , para. 2.6. (underline added) 
602 See infra , para. 8.78. 
603 WT/DS294/7Rev.1.  The European Communities made a request for the establishment of the panel 
on 5 February 2004, (WT/DS294/7), which it revised on 16 February 2004.  Unless otherwise indicated, we 
refer here to the revised  EC request for the establishment of a panel in the original dispute. 
604 Panel Report, US – Zeroing (EC) , para. 3.1. 
605 Panel Report, US – Zeroing (EC) , para. 7.1. WT/DS294/RW  
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 when addressing the EC claims with respect to the id entified original investigations, the original panel  
indicated that the European Communities claimed that: 
"the United States has acted inconsistently  with its WTO obligations in 15 anti-
dumping investigations listed in Exhibits EC-1 to EC-15
119..." 
Footnote 119 identifies the 15 original investigations and notes: 
 
"The measures at issue also include the anti-dumping duty order and any amendments, including the assessment in structions, and the USITC injury 
determination.  EC-First Written Submission, para. 63."
606  
8.66 In its findings, and in its conclusions, the orig inal panel refers back to footnote 119 when 
describing the measures at issue, and uses the terms "the anti-dumping investigations at issue".  For 
instance, the panel concludes in para. 7.32 that: 
"In light of the foregoing considerations, the Panel finds  that the United States has 
acted in breach of Article 2.4.2 of the AD Agreement  when in the anti-dumping 
investigations at issue132 ..." 
__________________________ 
132 Supra , footnote 119."607  
In the final section of its report ("Conclusions a nd recommendations"), the panel refers once again to 
the original investigations listed in Exhibits EC-1  to EC-15 by reference to paragraph 7.32 (which, 
again, refers to footnote 119):    
"In light of our findings above, we conclude that: 
The United States acted inconsistently with Article 2.4.2 of the AD Agreement when 
in the anti-dumping investigations listed in Exhibits EC-1 to EC-15 
USDOC did not 
include in the numerator used to calcula te weighted average dumping margins any 
amounts by which average export prices in individual averaging groups exceeded the 
average normal value for such groups.382 
__________________________ 
382 Supra , para. 7.32."608 
8.67 The findings of the original panel with respect  to the EC claims concerning administrative 
reviews describe the measures at issue in similar fashion:   
"The European Communities requests the Pa nel to find that the United States has 
acted inconsistently with its WTO obliga tions in 16 'anti-dumping duty administrative 
review' proceedings listed in  Exhibits EC-16 to EC-31202..."  
Footnote 202 identifies the 16 administrative review proceedings and notes: 
 
                                                      
606 Panel Report, US – Zeroing (EC) , para. 7.9 and footnote 119. 
607 Panel Report, US – Zeroing (EC) , para. 7.32.  See also paras. 7.24 and footnote 125 and para. 7.28 
and footnote 128, which use similar language and references to footnote 119. 
608 Panel Report, US – Zeroing (EC) , para. 8.1(a) (underline added).  WT/DS294/RW 
 Page 119 
 
 
 "The European Communities indicates that in addition to the Final Results  of the 
administrative review, the measures at issu e include the amendments to these Final 
Results  and that the Final Results  of the administrative review refers to the 
accompanying Issues and Decision Memorandum , which in turn refers to the Margin 
Calculations, i.e.,  the Final Margin Program Log and Outputs for the firms 
investigated, and to the assessment instructions .  EC-First Written Submission, 
para. 148."609  
Later, when referring to the measures challenged by  the European Communities in its findings with 
respect to the EC claims concerning administrative re view, the original panel again refers either to 
this footnote610 or to Exhibits EC-16 to EC-31.611  
 
8.68 The Appellate Body, in the introductory section of  its report, describes the measures at issue 
with respect to the EC "as applied" claims con cerning administrative reviews, by referring to the 
description of the measures in the report of the panel and to Exhibits EC-16 to EC-31:   
"The administrative reviews challenged by  the European Communities are listed in 
Exhibits EC-16 through EC-31 submitted by the European Communities to the Panel.  
Further details may be found in para. 2.6 and footnote 202 to para. 7.110 of the Panel 
Report."612  
8.69 In its analysis of the EC appeal with respect to the findings of the original panel concerning 
the EC "as applied" claims with respect to admini strative reviews, the Appellate Body refers to the 
"administrative reviews of anti-dumping duty orde rs listed in Exhibits EC-16 through EC-31",613 or to 
"the administrative reviews at issue".614 
8.70 This description of the measures at issue by th e original panel and the Appellate Body is 
consistent  with the Annexes to the EC request for the establishment of the panel, in which it lists 15 
original investigation proceeding "cases" or "mea sures" and 16 administrative review proceeding 
"cases" or "measures" and lists a number of aspects of each such case.   
8.71 The EC arguments before us focus on the fact th at both the original panel and the Appellate 
Body described the measures at issue as including "a mendments" to the 15 original investigations and 
16 administrative review "cases".  While we ag ree with the European Communities as to the 
description of the measures at issue, we cannot agree with the European Communities that these 
references to "amendments" encompass any subsequent  determinations in the same "case", in the form 
of subsequent administrative reviews or sunset revi ews.  A close examination of the EC panel request 
                                                      
609 Panel Report, US – Zeroing (EC) , para. 7.110 and footnote 202.  (underline added) 
610 Panel Report, US – Zeroing (EC) , para. 7.142 and footnote 235; para. 7.223 and footnote 305; 
para. 7.224 and footnote 306; para. 7.248 and footnote 335; para. 7.284 and footnote 372; para. 7.286 and 
footnote 375; para. 7.288 ("the administrative reviews at issue", without any reference to footnote 202, this time, 
although such a reference is made at the beginning of the section). 
611 Panel Report, US – Zeroing (EC) , para. 7.223 (referring to "the administrative reviews listed in 
Exhibits EC-16 to EC-31", but containing a footnote reference to footnote 202) and paras. 8.1(d), (e), and (f) 
("Conclusions and Recommendations").  The latter include footnote references to, respectively, paragraphs 7.223, 7.284 and 7.288, and thus, in turn, also eventually refer back to footnote 202.  
612 Appellate Body Report, US – Zeroing (EC) , footnote 11.  We limit ourselves to the Appellate 
Body's identification of the administrative reviews at issue; the Appellate Body did not disturb the Panel's 
findings on the EC "as applied" claims with respect to original investigations. 
613 Appellate Body Report, US – Zeroing (EC) , para. 108. 
614 See, notably, Appellate Body Report, US – Zeroing (EC) , paras. 133, 134, 135 (the latter containing 
the Appellate Body's finding of inconsistency with Article 2.4.2), and 263(a) (overall "Findings and 
Conclusions"). WT/DS294/RW  
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 in the original dispute and of the reports of the original panel and of the Appellate Body shows that 
what the European Communities challenged in its "as applied" claims in that case, and therefore what 
the panel and the Appellate Body actually ruled on , was the use of zeroing in calculating margins of 
dumping in the context of specific "determinations", either original investigations or administrative 
reviews, which the European Commun ities had explicitly identified.   
8.72 While, in the abstract, the term "amendment" mi ght be understood to include any subsequent 
measure that bears some relationship to or somehow modifies the measures that were specifically identified in the original dispute as the measures at i ssue, we are of the view that, in the circumstances 
of this dispute, the term "amendment" must be  read as referring to amendments of the nature 
identified by the United States – amendments to corr ect the original investigation and administrative 
review determinations specifically identified by th e European Communities to correct for ministerial 
or similar errors
615 or, in some cases, to amend the dete rmination following US court rulings.616 
8.73 The EC argument that the term "amendment" exte nds to the subsequent reviews finds, in our 
view, no support in the manner in which the measures at  issue were described in the original dispute.  
Put simply, even assuming that it could have done  so, the European Communities did not frame its 
claims, in the original dispute, as a challenge of (i ) specific original investigations (or administrative 
reviews), including various "aspects" of these determ inations and (ii) any s ubsequent determinations 
that might be adopted by the USDOC in the context of the same AD order.  It limited itself to the former, and did not raise the latter. 
8.74 We find, in this respect, the EC request for the establishment of the panel in the original 
dispute, to be of particular assistance.  We recall th at the terms of reference of a dispute are dependent 
on a party's request for the establishment of a panel – measures not "identified" in that request are not 
before the panel, and therefore are not the subject  of any DSB recommendations and rulings.  The EC 
request for the establishment of a panel in the orig inal dispute sheds light, we believe, on the meaning 
of the term "amendment" in the context of the origin al dispute.  Paragraph 3.2 of that request reads: 
"In the specific anti-dumping proceedings annexed
 to the present request, the 
United States applied the methodologies a nd the laws, regulations, administrative 
procedures and measures described under point 2 above.  [ i.e.,  pertaining to 
"zeroing"].  In consequence, the Eu ropean Communities considers that the 
determinations of dumping by DOC, the determinations of injury by the United States 
International Trade Commission, the impositi on of definitive duties in the original 
investigations and the outcome of the admi nistrative review investigations as detailed 
in the annexes are inconsistent with the AD Agreement .  ..."  (underline added). 
                                                      
615 See EC Article 21.5 request for the establishment of a panel, WT/DS294/25, Annex A-1:  amended 
USDOC final determination in case 1 (66 FR 55637, 2 November 2001), amended USDOC final determination 
in case 3 (67 FR 10382, 7 March 2002), amended USDOC final determination in case 4 (67 FR 8228, 22 February 2002), amended AD order in case 9 (68 FR 20114, 24 April 2003) (in this case, a first amendment, 
not listed in the Annex, amended the AD order to implement a USITC decision on remand, amending the scope 
of the order; a second amendment, this one listed by the European Communities, corrects a clerical error in the listing of HTS numbers in the amended AD order), amended fi nal results of administrative review in case 19 (67 
FR 5088, 4 February 2002), amended final results of administrative review in case 25 (67 FR 12522, 
19 March 2002),  amended final results of administrative review in case 26 (68 FR 4171, 28 January 2003), amended final results of administrative review in case 28 (68 FR 14193, 24 March 2003). 
616 See EC Article 21.5 request for the establishment of a panel, WT/DS294/25, Annex A-1:  amended 
USDOC final determination in case 15 (66 FR 65889, 21 December 2001); amended final results of administrative review in case 27 (67 FR 15178, 29 March 2002); see also the discussion of the amendment to 
case 9 in the previous footnote.  WT/DS294/RW 
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 8.75 As indicated above, Annex I to the EC original  panel request listed original investigation 
"cases", with different columns for (1) the DOC Fi nal Determination in the case, (2) the Final USITC 
Determination, and (3) the Final AD Order.  Simila rly, Annex II provided a list of the administrative 
review "cases", with columns iden tifying (1) the reference to the publication of the Final Results, (2) 
the exporters concerned and the relevant dumping ma rgin found, and (3), the period covered by the 
review.  The European Communities treated subse quent administrative reviews under the same AD 
order as separate "cases".  There are five inst ances where the European Communities listed two 
successive administrative reviews as separate "cases" ; equally, Annex II includes some administrative 
reviews adopted pursuant to an original  investigation included in Annex I ( e.g., cases 21 and 22 of 
Annex II are two successive administrative reviews pe rtaining to the original investigation reported in 
Annex I as case 11).617   
8.76 There is no indication that the subsequent administrative reviews were included by the 
European Communities as  "amendments" – they are clearly identified as distinct measures.  The two 
Annexes also include specific references to "amendm ents".  In each case, the "amendment" referred to 
in the Annex is an amendment of the specific measure listed to correct for ministerial errors and/or as 
a result of litigation in US courts.618 
8.77 In our view, there is no doubt the EC panel request in the original dispute did not ascribe to 
the term "amendment" the broad meaning that  the European Commun ities now ascribes to it. 
8.78 The European Communities argued, in its Open ing Statement, that the United States had 
tried, without success, to change the description of the measures when the panel in the original dispute 
issued its descriptive part, but that the original panel declined to do so, considering that the 
description of the measures was clear and r espected the EC description of the measures.619  T h e  
European Communities referred us to paragraphs 6.12- 6.13 of the report of the original panel, which 
read as follows: 
"The United States requests the Panel to replace paragraph 2.6 of the Report with 
paragraph 2.4 of the original draft descriptiv e part of the Report.  The United States 
objects in particular to the inclusion in this  paragraph of references to three kinds of 
'measures':  (1) the Issues and Decision Memoranda;  the (2) Final Margin Program Logs and Outputs;  and (3) assessment inst ructions.  The United States considers that 
these three measures are not part of the re quest for establishment of a panel.  The 
European Communities objects to the amendmen ts suggested by the United States.   
When read in light of the relevant paragr aphs of the First Written Submission of the 
European Communities, as referred to in f ootnotes 21 and 22 of the Report, it is clear 
to us that paragraph 2.6 of the Report does not treat the Issues and Decision 
Memoranda, the Final Margin Program Logs and Outputs, and the assessment 
instructions as three separate categories of  measures but as aspects of the measures at 
issue . Thus, paragraph 2.6 of our Report does not imply that we are presented with a 
                                                      
617 The European Communities submits that it decided to separate the original investigations and 
administrative reviews as "cases" "even though they a ll referred to the same anti-dumping measures being in 
place against specific products from particular countries" in order to allow for a separate examination of the 
measures and due to the structure of its  claims (as such vs.  as applied clai ms with respect to, one the one hand, 
original investigations, on the other hand, administrative reviews).  See EC Answer to Panel Question 1.  We are 
not convinced by this explanation, which does not explain why the European Communities listed subsequent reviews as different measures, and, in any case, do no t consider that the reasons for the manner in which the 
European Communities decided to formulate its claims are decisive.   
618 Supra , para. 8.72 and footnotes 615 and 616. 
619 EC Opening Statement, para. 13, referring to Exhibit EC-32 and Panel Report, US – Zeroing (EC) , 
paras. 6.12-613.  See also EC Answer to Panel Question 1. WT/DS294/RW  
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 request for separate findings on the I ssues and Decision Memoranda, the Final 
Margin Program Logs and Outputs and the assessment instructions.  While it is certainly true that there is no express men tion of these 'measures' in the request for 
the establishment of a panel, they clearly form  part of the measures mentioned in that 
document.  Therefore, we have not made the change requested by the United States." 
(footnotes omitted, underline added) 
8.79 The European Communities contends that the original panel's decision in this regard 
demonstrates that the term "amendments" incl udes subsequent reviews.  We do not believe 
paragraphs 6.12-6.13 can be read this broadly.  At  the most, the original panel's decision  may suggest 
that the original panel considered that these "aspect s" of each of the measures at issue were covered 
by the reference to "amendments".
620 It does not in any way suggest that subsequent determinations in 
the form of original investigations or administ rative reviews are "amendments".  In fact, the 
discussion in paras. 6.12-6.13 of the report of the original panel reinforces our view that the "amendments" at issue in the original dispute did not include any subsequent administrative review or 
sunset review:  in the second paragraph, the orig inal panel indicates that it considered that the 
"measures" before it were each of the 15 original  investigations and 16 administrative reviews at 
issue, and that it viewed each of the Issues and Decision Memoranda, the Final Margin Program Logs and Outputs, or assessment instructions not as "measu res" but as "as aspects of the measures at issue". 
8.80 In sum, we reject the EC view that the term "amendments" covers any subsequent review 
adopted under the same AD order as either an orig inal investigation or administrative review 
specifically challenged in the original proceeding.
621  The conclusion suggested by the 
                                                      
620 The European Communities argues that the reference to "any amendments" in the description of the 
measure by the Panel and the Appellate Body in the original dispute referred to something more than what the 
European Communities had already provided in the annex to its original panel request (EC Answer to Panel 
Question 1).  The underpinnings of the EC argument are not clear, but seem to be linked to the EC indication, earlier in the same Reply, that:   
"[I]n the request for establishment of the Panel in the original dispute ('original Panel 
Request'), the European Communities identified (i ) with respect to original investigations, 
USDOC's determinations, amended results of those determinations, original orders and 
amendments to those original orders; and (ii) with respect to administrative reviews, USDOC's 
duty assessment determinations and amended results of those determinations.  
In this respect, the European Communities provided the most r ecent information available to 
identify the original investigations and admi nistrative reviews in a precise manner, in 
accordance with the requirements of Article 6.2 of the DSU.  Any documents which could be 
found at that time showing the origin of the measures at issue as well as their most recent 
amendments were mentioned in the annex to the original Panel Request and provided to the 
Panel in the original dispute.  These included the original order and also various amendments, 
which did not only  refer to correction of ministerial e rrors.  For instance, in case 9 of the 
original request the European Communities identified the original order (dated 21 May 1999) 
and an amendment (dated 24 Ap ril 2003) which modified the product scope of the order ." 
(italics original) 
The EC Answer to Panel Question 1 seems to indicate th at it considers that the reference to "amendments", 
covered any amendment (to the measures, original inve stigations and administrative reviews listed in the 
Annex) that the European Communities had or had not (for whatever reason), identified in its panel request.  We 
recall that the nature of the amendments identified in th e EC panel request was limited to amendments to correct 
for ministerial errors or as a result of litigation in US courts (the amendment to the product scope of the order in 
case 9 referred to in the citation above was a combination of both).  See supra , footnotes 615 and 616.  In any 
case, even accepting as true that the term "amendments" included additional amendments to the measures  at 
issue that the EC had, for whatever reason, not included in the panel request, does not lead to the result that 
subsequent measures , which is what the subsequent reviews are,  were also covered by that reference.  
621 To accept the EC view that the term "amendment" covered the subsequent re views would imply that 
the original panel (and the Appellate Body) made findings with respect to measures which did not exist at the  WT/DS294/RW 
 Page 123 
 
 
 European Communities simply cannot be re conciled with the manner in which the 
European Communities itself framed the measu res at issue in the original dispute.622 
8.81 We note that the European Communities refers  us to the Appellate Body report in Chile – 
Price Band  in which, it argues, the Appellate Body "inter preted the reference to 'amendments' or 'any 
amendments' as part of the measures at issue in panel requests in broad terms".623  The European 
Communities notes that in its report in that case, the Appellate Body stated: 
"If the terms of reference in a dispute are broad enough  to include amendments  to a 
measure—as they are in this case—and if it is necessary to consider an amendment in 
order to secure a positive solution to the di spute—as it is here—then it is appropriate 
to consider the measure as amended in coming to a decision in a dispute".624 
8.82 The European Communities also argues that, following the same approach, the panel in US – 
Shrimp (Thailand) concluded that the inclusion of the language  "any amendments or extensions to the 
[measure at issue]" in Thailand's panel request wa s "broad enough" to allow for the inclusion of a 
modification of the original measure.625 
8.83 Both of the reports referred to by the Eur opean Communities concern the question of whether 
amendments to the measures at issue in an origin al dispute, which are adopted during the course of 
panel proceedings, may fall within that panel's terms of reference.  The Appellate Body in Chile – 
Price Band found that the amendment at issue in that dispute should be considered as part of the 
measure at issue for two reasons.  First, the "ame ndment" at issue clarified the legislation that 
established the measure at issue and did not change  the original measure into something different 
from what was in force before the amendment.626  Second, as noted by the European Communities, 
the panel request in that case was broad enough to  cover "amendments" to the measure at issue.627  
The US – Shrimp  (Thailand)  panel reached a similar conclusion on similar grounds.  It found that the 
amendment at issue in that case "seeks to clarify the legislation that established the measure at issue 
and does not change the essence of the original me asure into something different than what was in 
force before its issuance".628 
8.84 Besides the fact that we are not, in this case, dealing with an amendment to a measure in the 
course of an original proceeding, but rather, to disp uted allegations that certain subsequent measures 
are "amendments" to a measure found to be WTO- inconsistent in an original proceeding, one 
additional notable difference exists between the situation in the presen t dispute and those relied on by 
the European Communities.  For the parallel dr awn by the European Communities between these 
cases and the situation at hand to be apt, the subse quent reviews – administrative reviews and sunset 
reviews – allegedly before us would have had to merely clarify the term s of the original investigations 
or (and , in certain cases) administrative reviews that we re at issue in the original dispute, without 
                                                                                                                                                                     
time they made these findings.  It is not clear to us that the DSU allows a panel or the Appellate Body to make 
findings with respect to measures that are not yet in existence.  Even assuming the DSU allowed such a 
possibility, we would be reluctant to read the findings of the original panel and of the Appellate Body so broadly in this case without an express indication by the original panel and the Appellate Body that this was their intent.   
622 To be clear, we do not consider that reliance on  any dictionary definition of the term "amendment" 
would be of assistance in resolving this issue. 
623 EC Opening Statement, para. 15. 
624 Appellate Body Report, Chile – Price Band , para. 144 (emphasis added by the EC). 
625 EC Opening Statement, para. 16, citing Panel Report, United States – Measures Relating to Shrimp 
from Thailand  ("US – Shrimp (Thailand) "), WT/DS343/R, adopted 1 August 2008, as modified by Appellate 
Body Report, WT/DS343/AB/R, WT/DS345/AB/R, para. 7.48. 
626 Appellate Body Report, Chile – Price Band , para. 137. 
627 Appellate Body Report, Chile – Price Band , para. 144. 
628 Panel Report, US – Shrimp (Thailand) , para. 7.48. WT/DS294/RW  
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 modifying the essence or the effects of these me asures.  We do not understand the European 
Communities to advocate such an extreme position, nor, in our view, would such a position be 
tenable.  Thus, the analogy drawn by the Eur opean Communities is, in our view, inapposite.   
(iii) Whether the subsequent reviews fall within our terms of reference as "omissions" or 
"deficiencies" in the US implementation of the DSB's recommendations and rulings 
8.85 The European Communities also argues that the s ubsequent reviews listed in the Annex to its 
Article 21.5 panel request fall within  our terms of reference as "omissions" or "deficiencies" in the US 
implementation of the DSB's recommendations and rulings.
629 
8.86 We understand this argument to be primarily dependent on the EC argument that the 
subsequent reviews are "amendments" to the measures at  issue in the original di spute, an argument we 
have rejected.  Even if the European Communities intends this argument to be self-standing, and it is 
far from clear from the EC arguments that this is th e case, we do not consider that we need to address 
it separately in the context of determining whether the subsequent reviews fall within our terms of 
reference.  We examine in the next section of our report whether the subsequent reviews are measures 
taken to comply because they are cl osely connected with the measures at  issue in the original dispute 
and/or the DSB's recommendations and rulings.  We c onduct this analysis in view of the fact that our 
authority extends not only to those acts which the United States has taken to comply, including 
allegedly the subsequent reviews adopted after the ex piry of the reasonable period of time, but also to 
those acts which the United States allegedly should have taken to bring itself into compliance .  As a 
result, any "omission" or "deficiency" of the United States in the form of a subsequent review  would 
be captured in the analysis below and we do not consid er that the characterization of the EC claims as 
challenging omissions and deficiencies in the US  implementation can broaden the scope of this 
proceeding to measures  which we otherwise determine not to fa ll within our terms of reference.  We 
recall in this respect that we are, at this stag e, addressing the procedural question of whether the 
subsequent reviews fall within the scope of this proceeding as measures that should be regarded as 
"measures taken to comply", and not the substa ntive question of whethe r the United States has 
omitted to comply with the DSB's recommendations and rulings, a question which we address below, 
in section E of our findings. 
                                                      
629 See EC Answer to Panel Question 8, in whic h the European Communities indicates that it 
"considers that the subsequent reviews listed in the Anne x to the Panel Request constitute evidence of the US 
omissions and deficiencies in light of  the DSB's recommendations and rulings in  the original dispute."  See also 
EC Opening Statement, paras. 21-22: 
"In this proceeding, the European Communities ch allenges, in addition to certain Section 129 
Determinations, the omissions and deficiencies by the United States to take the necessary 
measures to comply with the adop ted DSB's recommendations and rulings, i.e., (i) that the 
United States should, on 9 April 2007, have stopped taking any positive acts providing for the 
final payment of duties or retention of cash deposits based on zeroing with respect to those 
entries not finally liquidated before the end of the reasonable period, in connection with any of the measures described in the original dispute and, thus, with respect to the measures 
contained in the Annex to the Panel Request; and (ii) that the United States should have 
recalculated, without zeroing, th e previous dumping margins based on zeroing, in order to rely 
on them for the assessment of likelihood of  recurrence of dumping in sunset review 
proceedings with respect to the m easures in the original dispute."  WT/DS294/RW 
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 (iv) Whether the subsequent reviews are measu res taken to comply because they have a 
sufficiently close nexus with the measures at issue in the original dispute and the DSB 
recommendations and rulings  
Relevant legal principles 
8.87 We now turn to the EC argument that the "subsequent reviews" and any associated 
assessment instructions are "measures taken to co mply" because they bear a sufficiently close nexus 
with, or are closely connected to, the DSB's reco mmendations and rulings, and with the measures at 
issue in the original proceeding.  In making th is argument, the European Communities relies in 
particular on the reports of the panel in US – Upland Cotton  and of the Appellate Body in US – 
Softwood Lumber IV (Article 21.5 – Canada) .   
8.88 The terms of Article 21.5 DSU themselves "delimit a particular category of measures that fall 
within the scope of proceedings conducted pursuant to that provision";630 Article 21.5 proceedings "do 
not concern just any measures of a Member of the WTO, rather, Article 21.5 proceedings are limited 
to 'those measures taken  to comply  with the recommendations and rulings' of the DSB."631  Further, 
Article 21.5 proceedings concern a disagreement as to either the existence  or the consistency  with a 
covered agreement of such measures taken to comply – "or a combination of both, in situations where 
the measures taken to comply, through omissi ons or otherwise, may achieve only partial 
compliance."632  One of the preliminary steps in an Artic le 21.5 proceeding is therefore to decide 
whether the measures challenged by the claimant are "measures taken to comply" with the DSB's 
recommendations and ruling and therefore fall within th e terms of reference of the compliance panel.   
8.89 Further, not only measures taken "in the direc tion of", or "for the purpose of achieving" 
compliance may fall within the competence of an Article 21.5 panel.  In US – Softwood Lumber IV 
(Article 21.5 – Canada) , the Appellate Body noted that "[o]n its  face ...  the phrase 'measures taken to 
comply' seems to refer to measures taken in the direction of , or for the purpose of achieving , 
compliance".633  But crucially, the Appellate Body added that : 
"The fact that Article 21.5 mandates a pane l to assess 'existence' and 'consistency' 
tends to weigh against an interpretation of  Article 21.5 that would confine the scope 
of a panel's jurisdiction to measures that move in the direction of , or have the 
objective of achieving ,  compliance.  These words also suggest that an examination of 
                                                      
630 Appellate Body Report,  US – Softwood Lumber IV (Article 21.5 – Canada) , para. 65. 
631 Appellate Body Report, Canada – Measures Affecting the Export of Civilian Aircraft – Recourse by 
Brazil to Article 21.5 of the DSU ("Canada – Aircraft (Article 21.5 – Brazil) "), WT/DS70/AB/RW, adopted 
4 August 2000, DSR 2000:IX, 4299, para. 36 (emphasis original), cited with approval in, inter alia , Appellate 
Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 65.  We note that the Appellate Body 
has also indicated that, normally, th e measure challenged in an Article 21 .5 proceeding will not be the same 
measure that was the subject of the origin al dispute.  See Appellate Body Report, Canada – Aircraft 
(Article 21.5 – Brazil) , para. 36:  
"In principle, a measure which has been 'tak en to comply with the recommendations and 
rulings' of the DSB will not be the same measure as the meas ure which was the subject of the 
original dispute, so that, in principle, there would be two separate and distinct measures:  the 
original measure which  gave rise to  the recommendations and rulings of the DSB, and the 
'measures taken to comply' which ar e – or should be – adopted to  implement  those 
recommendations and rulings." (emphasis original) 
632 Appellate Body Report, US –  FSC (Article 21.5 –  EC II) , para. 60. (emphasis original) 
633 Appellate Body Report,  US – Softwood Lumber IV (Article 21.5 – Canada) , para. 66 (emphasis 
original). WT/DS294/RW  
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 the effects of a measure may also be relevant to the determination of whether it 
constitutes, or forms part of, a 'measure[] taken to comply'".
634 
8.90 WTO panels and the Appellate Body  have made it clear that it is for the Article 21.5 panel to 
determine whether a given measure is a "measure  taken to comply":  while an implementing 
Member's characterization of a measure as being one "taken to comply" should be taken into 
consideration by the panel,  it is not determinative.635  Equally, the compliance panel is not bound by 
the complainant's characterization of a measure as being one "taken to comply".636 
8.91 As noted by the parties and third parties to this dispute, a number of prior WTO panels and 
the Appellate Body have found that measures not characterized by the implementing Member as 
being taken to comply nonetheless were within thei r terms of reference, on the basis of the close 
connection of those measures with either the "decl ared" measures taken to comply, the measures at 
issue in the original dispute, and/or  the DSB's recommendations and rulings. 
8.92 In Australia –  Salmon (Article 21.5 – Canada) ,637 the compliance panel determined that an 
import ban on salmonids enacted by the Australia n State of Tasmania during the course of its 
proceedings, and therefore not explicitly identified in  Canada's Article 21.5 panel request, fell within 
its terms of reference.  The pane l reasoned that if a compliance panel were to leave it to the full 
discretion of the implementing Member to decide whet her or not a measure is one "taken to comply", 
                                                      
634 Appellate Body Report,  US – Softwood Lumber IV (Article 21.5 – Canada) , para. 67 (footnote 
omitted, italics original).  We read the Appellate Body's statement as indicating that the proposition that only 
measures taken "in the direction of", or "for the purpose of achieving" compliance fall within the terms of 
reference of an Article 21.5 is at odds with the fact that that provision requires a compliance panel to also examine a Member's omissions in achieving implementati on.  For a similar reading of the Appellate Body's 
statement, see Panel Report, European Communities – Regime for the Importation, Sale and Distribution of 
Bananas – Recourse to Article 21.5 of the DSU by the United States  ("EC – Bananas III (Article 21.5 – US) "), 
WT/DS27/RW/USA and Corr.1, circulated to WTO Members 19 May 2008 [adoption pending], paras. 7.304-
7.306.  In any case, we subscribe to the following observations made by the Australia – Salmon (Article 21.5 – 
Canada)  panel: 
"The question of whether a measure is one in the direction of WTO conformity or, on the 
contrary, maintains the original violation or aggravates it, can, in our view, not determine 
whether a measure is one 'taken to comply'.  If this were so, one would be faced with an 
absurd situation:  if the implementing Member in troduces a 'better' measur e -- in the direction 
of WTO conformity -- it would be subject to an expedited Article 21.5 procedure; if it 
introduces a 'worse' measure -- maintaining or aggravating the violation -- it would have a 
right to a completely new WTO procedure."   
Panel Report, Australia – Measures Affecting Importation of Salmon – Recourse to Article 21.5 of the 
DSU by Canada  ("Australia – Salmon (Article 21.5 – Canada) "), WT/DS18/RW, adopted 20 March 2000, 
DSR 2000:IV, 2031, para. 7.10, subpara. 23. 
635 Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , paras. 73-74; Appellate 
Body Report, European Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India 
– Recourse to Article 21.5 of the DSU  by India ("EC – Bed Linen (Article 21.5 – India) "), WT/DS141/AB/RW, 
adopted 24 April 2003, DSR 2003:III, 965, para. 78;  Panel Report, Australia – Subsidies Provided to Producers 
and Exporters of Automotive Leather – Recourse to Article 21.5 of the DSU by the United States ("Australia – 
Automotive Leather II (Article 21.5 – US) "), WT/DS126/RW and Corr.1, adopted 11 February 2000, 
DSR 2000:III, 1189, para. 6.4; Panel Report,   Australia – Salmon (Article 21.5 – Canada) , para. 7.10, 
subparas. 22-23.  The Appellate Body cautioned that "cha racterising an act by a Member as a measure taken to 
comply when that Member maintains otherwise is not something that should be done lightly by a panel." 
Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 74. 
636 Panel Report, European Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen 
from India – Recourse to Article 21.5 of the DSU  by India  ("EC — Bed Linen (Article 21.5 – India) "), 
WT/DS141/RW, adopted 24 April 2003, as modified by Appellate Body Report, WT/DS141/AB/RW, DSR 2003:IV, 1269, para. 6.15. 
637 Panel Report, Australia – Salmon (Article 21.5 – Canada) , paras. 7.11-7.22.  WT/DS294/RW 
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 that implementing Member could avoid any scrutiny of certain measures "even where such measures 
would be so clearly connected to the panel and Appellate Body reports concerned , both in time and in 
respect of the subject-matter , that any impartial observer would c onsider them to be measures 'taken 
to comply'".638 
8.93 The panel in Australia – Leather II (Article 21.5 – US)  applied a similar approach to find that 
it could examine a measure that it found to be "inextricably linked" to the steps taken by the 
implementing Member to comply with the DSB's recommendations and rulings, in view of both its timing and its nature.
639  This dispute concerned the impl ementation, by Australia, of a DSB 
recommendation to "withdraw the subsidy", a grant, in that case, under Article 4.7 of the SCM 
Agreement .  In addition to challenging the measure that Australia declared it had taken to comply (a 
partial repayment of the grant), the United States also  included in its claims a new loan granted to the 
grant beneficiary's parent company.  Australia argued that the loan was not "part of the implementation of the DSB rulings and recommendati ons" and was not part of the measures that had 
been notified to the DSB.  The panel rejected Australia's objections: 
"The 1999 loan is inextricably linked
 to the steps taken by Australia in response to 
the DSB's ruling in this dispute, in view of  both its timing and its nature.  In our view, 
the 1999 loan cannot be excluded from our consideration without severely limiting 
our ability to judge, on the basis of the Un ited States' request, whether Australia has 
taken measures to comply with the DSB's ruling."640 
8.94 The Appellate Body upheld a similar conclusion by the panel in US – Softwood Lumber IV 
(Article 21.5 – Canada) .641  In the original proceeding in that  case, the panel and the Appellate Body 
had found that the calculation of the amount of the subsidy in the final CVD determination on 
softwood lumber from Canada was inconsistent with the SCM Agreement  due to the USDOC's failure 
to conduct a "pass-through" analysis in respect of cer tain sales.  A few days before the expiration of 
the reasonable of time, the USDOC published a S ection 129 determination to implement the DSB 
recommendations and rulings, in which it performed a pass-through analysis; the rate of subsidization 
established in the determination became the new cash  deposit rate.  Four days later, the USDOC 
published the final results of the first administrativ e review in the same case, which established a new 
cash deposit rate.  In the review, the USDOC applie d the same pass-through analysis that it had used 
in the Section 129 determination, stating that it did so in view of the findings made in the original 
dispute.  The compliance panel held that the USDOC's treatment of pass-through in the first 
administrative review, but not the administrative revi ew determination in its entirety, fell within its 
terms of reference because (i) it was clearly c onnected to the panel a nd Appellate Body reports 
concerning the Final CVD Determination, and (ii) it was inextricably linked to the treatment of pass-
through in the Section 129 determination.  On a ppeal, the Appellate Body endorsed the "nexus-based" 
                                                      
638 Panel Report, Australia – Salmon (Article 21.5 – Canada) , para. 7.10, subpara. 22 (emphasis 
added).  The panel considered that, in the context of the dispute before it, at least any quarantine measure on imports of salmonids from Canada introduced by Australia subsequent to the adoption of the DSB 
recommendations and rulings and within a more or less limited period of time thereafter was a "measure taken 
to comply" and found, on that basis, that the Tasmanian ban fell within its terms of reference.   
639 Panel Report, Australia – Automotive Leather II (Article 21.5 – US),  paras. 6.1-6.7.   
640 Panel Report, Australia – Automotive Leather II (Article 21.5 – US) , para. 6.5.  (underline added) 
The new loan had been granted concurrently with the repayment of the original grant. 
641 Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , paras. 61 ff, Panel 
Report, United States – Final Countervailing Duty Determination with Respect to Certain Softwood Lumber 
from Canada – Recourse by Canada to Article 21.5 ("US – Softwood Lumber IV (Article 21.5 – Canada) "), 
WT/DS257/RW, adopted 20 December 2005, upheld by Appellate Body Report, WT/DS257/AB/RW, DSR 
2005:XXIII, 11401, paras. 4.36-4.50. WT/DS294/RW  
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 test used by the panel and upheld its application in the particular circumstances of the dispute.
642  The 
United States had argued on appeal that the determin ation in the First Assessment Review was not a 
measure taken to comply.  In explaining that a pa nel's mandate under Article  21.5 is not necessarily 
limited to examining those measures declared to be  "taken to comply" by the responding party, the 
Appellate Body indicated that: 
"[S]ome measures with a particularly clo se relationship to the declared 'measure 
taken to comply', and to the recommendations and rulings of the DSB, may also be susceptible to review by a panel acting under Article 21.5.  Determining whether this 
is the case requires a panel to scrutinize th ese relationships, which may, depending on 
the particular facts, call for an examination of the timing , nature , and effects of the 
various measures.  This also requires an Article 21.5 panel to examine the factual and 
legal background against which a declared 'm easure taken to comply' is adopted.  
Only then is a panel in a position to take a view as to whether there are sufficiently 
close links for it to characterize such an ot her measure as one 'taken to comply'  and, 
consequently, to assess its consistency with the covered agreements in an Article 21.5 
proceeding."
643    
8.95 More recently, the panel in US – Upland Cotton (Article 21.5 – Brazil)  considered that: 
"[A] claim relating to a measure that has a sufficiently close nexus with the measure 
taken to comply or with the DSB recommendations and rulings in the original proceeding can be within the scope of Artic le 21.5 even where that measure itself has 
not been the subject of DSB recommenda tions and rulings in the original 
proceeding."
644 
8.96 In that case, the panel considered that a claim re jected by the original panel in a finding that 
was reversed by the Appellate Body, but with resp ect to which the Appellate Body found itself unable 
to complete the analysis in the original proceeding, was within its terms of reference.  The panel 
found that the measures in question were measures with a "particularly close relationship to the 
declared measure taken to comply and to the r ecommendations and rulings of the DSB"; in making 
this finding, it relied on the Appellate Body's findings in US – Softwood Lumber IV (Article 21.5 – 
Canada) .  The Appellate Body upheld th e panel's conclusion that the measures at issue fell within the 
panel's terms of reference, based on a different r easoning.  The Appellate Body considered that its 
reasoning in US – Softwood Lumber (Article 21.5 – Canada)  was not applicable in the instant case:  
the dispute in Lumber  concerned the identification of closely connected measures so as to avoid 
circumvention, whereas in Cotton  the issue was whether a single programme may be permissibly 
atomized for the purposes of Article 21.5 review.645 646 
                                                      
642 In addition, the Appellate Body cited Australia – Automotive Leather II (Article 21.5 – US)   and  
Australia – Salmon (Article 21.5 – Canada)  as "useful illustrations" of when a panel may properly decide to 
characterize a Member's act as a "measure taken to comp ly" when that Members maintains otherwise. Appellate 
Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 76. 
643 Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 77 (emphasis 
added). 
644 Panel Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 9.26. 
645 In the original dispute, expor t credit guarantees gr anted with respect to exports of certain 
commodities were found to be WTO-inconsistent.  The original panel rejected claims with respect to other commodities, e.g.  poultry meat and pig meat.  The original panel' s finding in this respect was reversed by the 
Appellate Body, but the Appellate Body found itself unable  to complete the analysis.  There were therefore no 
DSB recommendations or rulings with respect to subsidies granted to pig meat and poultry meat.  To implement the DSB's recommendations and rulings, the United States implemented programme-wide changes to its export 
credit guarantee programme, which applied to exports of  all commodities.  The question before the panel and  WT/DS294/RW 
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 8.97 We consider that a nexus-based analysis, as articulated in Australia – Leather II (Article 21.5 
– US) , Australia – Salmon (Article 21.5 – Canada)  and US – Softwood Lumber (Article 21.5 – 
Canada)  is useful in examining which measures challe nged by a complainant properly fall within the 
scope of an Article 21.5 proceeding.  A number of c onsiderations are at play in such an analysis.  
First, because of the necessary link with the origin al dispute and given that adopted panels and 
Appellate Body reports constitute a final r esolution of the dispute between the parties647, there are 
inherent limits on the claims that may be submitted to an Article 21.5 panel.648  Yet, it is equally clear 
that "these limits should not allow circumvention by Members by allowing them to comply through 
one measure, while, at the same time , negating compliance through another".649  We also recall that 
Article 21.5 proceedings cover not only a Member's  actions to implement DSB recommendations and 
rulings, but also its omissions – i.e., its failure to take actions to do so .  Finally, Article 3.3 of the DSU 
provides that one of the objectives of the WTO di spute settlement process is the "prompt settlement" 
of disputes.650  These considerations, in our view, favour the resolution of claims before an 
                                                                                                                                                                     
the Appellate Body was whether export credit guarantees granted to exports of pig meat and poultry meat were 
"measures taken to comply".  The panel considered that  the subsidies granted to each commodity were separate 
measures and considered that the subsidies granted to e xports of pig meat and poultry meat fell within its terms 
of reference because of their "close relationship" to th e declared measure taken to comply.  The Appellate Body 
adopted a different approach and concluded that the amended export credit guarantee programme was a single 
measure.  Further, the US – Upland Cotton (Article 21.5 – Brazil)  panel also determined that certain payments 
made under programmes challenged in the original disput e, but made in a subsequent period, fell within the 
scope of its review.  The panel found support for its fi nding in this respect in pr ior panel and Appellate Body 
reports where it was found that measures taken to comply include "measures that have a particularly close 
relationship to the declared measures taken to comply and to the recommendations and rulings of the DSB".  Panel Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 9.80, citing Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5 – Canada) .  The Appellate Body upheld the panel's conclusion, but again for 
different reasons.  See Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , paras. 233-249.   
646 The Report of the Appellate Body in US – Upland Cotton (Article 21.5 – Brazil) was circulated after 
the main submissions from the parties had been received, and before the i ssuance of our Interim Report.  We 
note however that the parties made submissions to the Panel after the issuance of the Appellate Body Report in that case, in the form of comments on each other's Comments on Answers to Panel Questions and further 
comments on these comments.  In the context of such comments, the United States submitted its view that:  
"In the recent Appellate Body Report in US – Upland Cotton 21.5 , the Appellate Body 
reversed the panel's reasoning that was based on the very approach advocated by the EC in 
this proceeding.  That Appellate Body report makes clear that there is no 'closely related' test.  
Appellate Body Report, United States – Subsidies on Upland Cotton – Recourse by Brazil to 
Article 21.5 of the DSU, WT/DS267/AB/RW, circulated 2 June 2008, para. 205."   
US letter to the Panel of 11 June 2008, footnote 1.  We disagree with the US assertion in this respect.  
In US – Upland Cotton (Article 21.5 – Brazil) , the Appellate Body distinguishe d between the case at hand in 
Cotton  and a situation in which it considered the " Lumber " jurisprudence would apply; it did not suggest that 
"there is no 'closely related' test".   
647 Appellate Body Report, United States – Import Prohibition of Certain Shrimp and Shrimp Products 
– Recourse to Article 21.5 of the DSU by Malaysia  ("US – Shrimp (Article 21.5 – Malaysia) "), 
WT/DS58/AB/RW, adopted 21 November 2001, DSR 2001:XIII, 6481, para. 97; Appellate Body Report, EC – 
Bed Linen (Article 21.5 – India) , para. 93. 
648 See Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , footnote 110, 
Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 210. 
649 Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 71. 
650 See inter alia  Panel Report, US – Softwood Lumber IV (Article 21.5 – Canada)  para. 4.48.  That 
panel indicated that given the overlap in effect of th e Final Determination, Section 129 determination and the 
First Assessment Review, it was  
"very conscious that if we exclude the pass-th rough analysis in the First Assessment Review 
from these proceedings, Canada and the United States will still dispute the same issue, i.e., 
pass-through of subsidy benefit, in respect of the same import entries, as they did in the 
original proceedings concerning the Final Determination.  In our view, this would be wholly WT/DS294/RW  
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 Article 21.5 panel where the contested measures are closely connected with the measures at issue in 
the original dispute or with the steps taken by the Member to implement the DSB's recommendations 
and ruling.
651 
Application of a nexus-based test in the context of trade remedy disputes 
8.98 The facts and issues in US – Softwood Lumber IV (Article 21.5 – Canada)  and in the dispute 
before us present a number of similarities;  for th is reason, we have carefully considered the panel's 
application and the Appellate Body 's evaluation of that applicati on of a nexus-based test in that 
dispute.  That said, as the Appellate Body recognized in US – Softwood Lumber IV (Article 21.5 – 
Canada) , the application of such a test will necessa rily be case-specific and depend on the factual 
circumstances of each dispute.  Thus, although th e parties and some of the third parties have 
extensively argued how, in their view, the fact s before us resemble or differ from those in US – 
Softwood Lumber IV  (Article 21.5 – Canada) , and although we refer to the reasoning of the panel and 
the Appellate Body in that dispute on occasion, we do not regard that decision as setting forth a 
precise set of generally-applicable ru les establishing when certain measures, e.g., administrative 
reviews, are sufficiently "closely conn ected" with original investigations to fall with the purview of an 
Article 21.5 panel.  Nor do we consider that th e approach we adopt below would be necessarily 
applicable in different contexts a nd under other factual circumstances. 
8.99 We now examine, whether, in light of the fact s before us, the subsequent reviews challenged 
by the European Communities are so closely connected to the measur es at issue in the original dispute 
and to the DSB's recommendations and rulings as to wa rrant that we take them into consideration in 
assessing the US implementation of the DSB's reco mmendations and rulings.  To do so, we first 
                                                                                                                                                                     
inconsistent with the object and purpose of the DSU which, as noted above, is to ensure the 
prompt settlement of disputes". See also Appellate Body Report, US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – 
Argentina) , para. 151:   
"Furthermore, we recall that the aim of Articl e 21.5 of the DSU is to promote the prompt 
compliance with DSB recommendations and rulings and the consistency of 'measures taken to 
comply' with the covered agreements by making it unnecessary for a complainant to begin 
new proceedings and by making efficient use of the original panelists and their relevant experience."  
See also Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 212, where after 
citing this paragraph from US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) , the 
Appellate Body added that, in the case on appeal:  
"having an Article 21.5 panel examine Braz il's claims against export credit guarantees 
provided under the revised GSM 102 programme to upland cotton and certain other products, 
while a new panel examines Brazil's claims against export credit guarantees provided under 
the same programme to pig meat and poultry m eat, would not be the most efficient use of 
WTO dispute settlement procedures."  
651 The Appellate Body expressed similar views in US – Softwood Lumber IV (Article 21.5 – Canada)  
when it indicated that Article 21.5 strikes a balance between competing considerations:   
"On the one hand, it seeks to promote the prompt resolution of disputes, to avoid a 
complaining Member having to initiate dispute settlement proceedings afresh when an original 
measure found to be inconsistent has not been brought into conformity with the recommendations and rulings of the DSB, and to make efficient use of the original panel and 
its relevant experience.  On the other hand, the applicable time-limits are shorter than those in 
original proceedings, and there are limitations on  the types of claims that may be raised in 
Article 21.5 proceedings.  This confirms that the scope of Artic le 21.5 proceedings logically 
must be narrower than the scope of original dispute settlement proceedings.  This balance 
should be borne in mind in interpreting Article  21.5 and, in particular, in determining the measures that may be evaluated in pr oceedings pursuant to that provision."  
Appellate Body Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 72.  WT/DS294/RW 
 Page 131 
 
 
 examine the links, in terms of their nature  and of their effects , that exist in general between, on the 
one hand, the subsequent reviews challenged by the European Communities and, on the other hand, 
the measures at issue in the original dispute and the recommendations and rulings of the DSB.  Next, 
we consider the links, in terms of the timing  of the determinations at issue, to the US implementation 
of the DSB's recommendations and rulings.  Fi nally, we apply these principles to each of the 
subsequent reviews challenged by the European Co mmunities to determine whether each review falls 
within our terms of reference.   
8.100  We note at the outset that the European Co mmunities asks that we "not mechanistically" 
apply the distinction between "as such" and "as applied" findings.652  By this, we understand the 
European Communities to mean that we should disr egard the fact that only "as applied" findings 
resulted from the original dispute w ith respect to administrative review s; in other words, that all the 
subsequent administrative reviews are before us because they involve the use of zeroing.653  
Conversely, the United States submits that accepting th e EC argument that the subsequent reviews fall 
within our terms of reference would convert the ruling of the Appellate Body with respect to 
administrative reviews into an "as such" finding.  We  observe in this respect that the findings of the 
Appellate Body regarding the administrative reviews at  issue in the original dispute were "as applied" 
findings, that the European Communities itself had ma de a distinction, in the original dispute, 
between its "as applied" and its "as such" claims, a nd that in any case, the US obligation to implement 
with respect to administrative reviews flows from these findings of the Appellate Body, and these findings only.  There is indeed, as the United States notes, a risk that by the application of a nexus-
based analysis, a compliance panel would in effect  broaden the scope of the DSB's recommendations 
and rulings adopting the findings made in the origin al dispute.  We have, in conducting our analysis, 
paid particular attention to the fact that the findi ngs with respect to zeroing in the original dispute 
concerned the use of zeroing in the specific original investigations and administrative reviews at issue 
in that case, and not the US zeroing methodology "as such".
654  Proceeding in this manner does not 
                                                      
652 EC Opening Statement, para. 40.  The European Communities seeks support in a statement by the 
US – Upland Cotton (Article 21.5 – Brazil)  panel (para. 9.51).  We do not consider that, read in context, the 
statement of the US – Upland Cotton (Article 21.5 – Brazil)  panel relied on by the European Communities 
supports its call for a relaxation of the distinction betwee n "as such" and "as applied" findings with respect to 
administrative reviews.  We understand the statement cited by the European Communities as standing for the proposition that in the specific context of "as applied" adverse effect claims under Article 5 of the SCM 
Agreement , the analysis of payments grante d under a programme logically implies at least some examination of 
the programme under which the payments ar e made.  See also the Appellate Body's obiter dictum  in its report in 
the same case, para. 234:  "We have some difficulty  accepting the notion that a subsidy programme and the 
payments provided under that programme can be assessed se parately."  In other words, we do not consider that 
the European Communities' argument is supported by the statement of the US – Upland Cotton (Article 21.5 – 
Brazil)  panel on which it relies. 
653 See EC Answer to Panel Question 3:   
"In our present case, we have a similar situation [as in US – Upland Cotton (Article 21.5 – 
Brazil) ].  Even if the Appellate Body in the or iginal dispute was unable to complete the 
analysis on the methodology 'as such', there were  a whole series of findings of instances of 
application of that methodology.  Thus, the analysis made by the Panel and the Appellate 
Body in the original dispute of the 15 original investigations and the 16 administrative reviews 
'as applied' also took into consideration the essence  of the problem in question:  the zeroing 
methodology, i.e., a computer code , whether in the methodology or in cases of its application 
to a particular set of transactions.  This is the same methodology that the United States has 
repeatedly applied in the subsequent reviews listed in the Annex to the Panel Request." (emphasis original). 
654 We note that the EC claims are, in any  case, more limited than suggested by the United States.  The 
European Communities makes claims with respect to determinations adopted under the same AD order as the measures at issue in the original dispute ( i.e.,  with respect to the same product from the same country), and not 
with respect to all administrative reviews conducted by the United States. WT/DS294/RW  
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 amount to applying the "as such" vs. "as applied" distinction mechanistically, it only reflects the 
nature of the findings made in the original dispute. 
Nature and effects 
8.101  We note that administrative reviews, sunset reviews and other types of reviews such as new 
shipper reviews or changed circumstances reviews are conducted in the ordinary course of the 
application of antidumping and countervailing duty  laws by Members operating retrospective duty 
assessment systems.  Similarly, Members opera ting prospective duty assessment systems routinely 
conduct sunset and other types of reviews, as we ll as refund proceedings.  For an administrative 
review or sunset review to be considered to have a "close connection" with the DSB's 
recommendations concerning a measure at issue in th e original proceeding, the mere fact that the 
Member made a determination in a review involving the same products and countries as the AD 
measure that was found to be WTO-inconsistent in th e original dispute cannot be sufficient.  It is 
obvious that not every determination made in the context of a given AD proceeding – which can span 
several years, if not decades – is subject to review by an Article 21.5 panel for the mere reason that another, previous, determination made in the same proceeding was found to be WTO-inconsistent in 
an original WTO dispute at an earlier point in ti me.  It is only where a specific aspect of the 
"subsequent" determination is closely related to the violation found in the original dispute, and affects 
the Member's implementation of the DSB's recommendati ons and rulings in respect of that violation, 
that that specific aspect of the subsequent determin ation may, under certain circumstances, be subject 
to review in the context of a compliance proceeding.  Here, our analysis is limited to the question of 
whether the use of zeroing in the calculation of marg ins of dumping in the subsequent reviews bears a 
sufficiently close nexus or close connection to the findings of the panel and Appellate Body in the 
original dispute so as to warrant our consideration of that precise aspect of the subsequent reviews.  
No other aspect of the subsequent reviews is before us.   
8.102  We recall that in US – Softwood Lumber IV (Article 21.5 – Canada) , the panel and the 
Appellate Body found that close links existed, in terms of the nature and effects, between the three 
measures at issue – the original determination f ound to be WTO-inconsistent in the original 
proceeding, the Section 129 determination made by the United States to implement the DSB's recommendations and rulings, and the results of the first administrative review. All three were CVD 
proceedings conducted by the USDOC, concerning th e same product, from the same country, and all 
three involved the calculation of the rate of subs idization; further the same, new "pass-through" 
methodology applied by the USDOC to implement the DSB's recommendations in the Section 129 
determination was also used in the first administra tive review.  The panel and the Appellate Body also 
took account of the effects of the publication of th e results of the first administrative review, in 
particular, the fact that the cash deposit rate estab lished in the Section 129 determination was replaced 
by that calculated in the first administrative review.
655 
8.103  In general terms, the successive determinations of different typ es are made in the context of a 
single trade remedy proceeding, involving the imposition and assessment of anti-dumping duties on 
imports of a particular subject product, from the same country.  They all concern the imposition and 
collection of anti-dumping duties under a particular anti-dumping order.  In this sense, these determinations form part of a c ontinuum of events and measures th at are all inextricably linked; 
indeed, this continuum is largely determined by the provisions of the Anti-Dumping Agreement .   
                                                     
 
655 The Appellate Body also observed that imports of softwood lumber from Canada entered during the 
period 22 May 2002 to 31 March 2003 were, first subject to the cash deposit rate determined in the original determination, and subsequently, to the final duty liab ility determined in the first administrative review.  
Appellate Body Report,  US – Softwood Lumber (Article 21.5 – Canada) , para. 83.  WT/DS294/RW 
 Page 133 
 
 
 8.104  As in US – Softwood Lumber , in the case before us there also exists a close nexus between the 
subsequent reviews and the measures at issue in the original dispute and the DSB's recommendations 
and rulings in respect thereof in terms of their nature and effects.656   First, the measures at issue either 
provide a legal basis for the application of anti-dum ping duties and calculate future cash deposit rates 
for individual exporters (original investigations),  establish the amount of AD liability for individual 
importers and the future cash deposit rates for indi vidual exporters (administrative reviews), or 
establish a new legal basis for the imposition of anti-dumping duties (sunset reviews).  In each context, the issue of "zeroing"  arises either in th e calculation of dumping margins, the amount of duty 
liability, or the reliance on dumping margins in the cont ext of sunset reviews.  This is the only aspect 
of the subsequent reviews that is challenged by the European Communities; it is also the precise issue 
that was challenged in the original dispute, a nd which was the subject of the DSB rulings and 
recommendations.   
8.105  The United States submits, in this respect, that the legal bases for the findings of the panel and 
Appellate Body regarding original investigations and administrative reviews in the original dispute 
differed.  The original panel found that the use of "model zeroing" in the original investigations at 
issue, and the US "zeroing methodology" as it relates to  original investigations, were inconsistent with 
Article 2.4.2 of the Anti-Dumping Agreement , while the Appellate Body found that the use of "simple 
zeroing" in the administrative reviews at issu e was inconsistent with Articles 9.3 of the Anti-Dumping 
Agreement  and VI:2 of the GATT 1994.  The United States notes that, by contrast, in US – Softwood 
Lumber (Article 21.5 – Canada) , the legal basis for the obliga tion to conduct a "pass-through" 
analysis in a countervailing duty proceeding did not vary depending on whether the issue arose in an 
investigation or an assessment review.
657  While the United States is correct in this respect, it 
overlooks a fundamental aspect of the findings of the original panel and of the Appellate Body.  
8.106  The original panel relied on the Appellate Body's conclusion, in EC – Bed Linen  and US – 
Softwood Lumber V , that when a margin of dumping is cal culated on the basis of multiple averaging 
by model type, the margin of dumping for the product in question must reflect the results of all such 
comparisons, including weighted-average export pri ces that are above the normal value for individual 
models.658  The Appellate Body, in EC – Bed Linen , had found that Article 2.4.2 requires that 
                                                      
656 We recall that the present exerci se is one in which the Panel assesses whether measures which are 
different  from the measures at issue in the original disput e should fall within the sc ope of this proceeding.  
Perfect identity of the measures is therefore not required,  nor even expected.  Of more relevance, in our view, 
are the effects of a measure (in terms of their im pact on the Member's implementation of the DSB's 
recommendations and rulings).  We note that, in Australia – Leather II (Article 21.5 – US) , the measures did not 
have the same legal form (loan vs. grant), and that in Australia – Salmon (Article 21.5 – Canada) , they were not 
adopted by the same decision-maker or even the same level of government.  US – Softwood Lumber 
(Article 21.5 – Canada)  also stands for the proposition that the different nature of original investigations and 
administrative reviews does not preven t finding that the latter may fall within the scope of an Article 21.5 
proceeding in respect of an original dispute that concerned the former.  In Lumber , the Appellate Body rejected 
US arguments with respect to the different nature of  original investigations and administrative reviews by 
noting, first, that municipal law cl assifications are not determinative in  WTO dispute settle ment proceedings 
(the United States had pointed to the different legal base s in United States law for original investigations and 
assessment review); and, second, that the SCM Agreement 's recognition that original CVD investigations are 
proceedings distinct from duty assessment reviews did not answer the question of whether the Panel was entitled 
to examine the USDOC's pass-through analysis in the first administrative review.  Appellate Body Report, US – 
Softwood Lumber IV (Article 21.5 – Canada) , para. 82. 
657 In either case, the obligation arose from Articles 10 and 32.1 of the SCM Agreement , and 
Article VI:3 of the GATT 1994.  See US Answer to Panel Question 13. 
658 Panel Report, US – Zeroing (EC) , paras. 7.27 (referring to Appellate Body Report, European 
Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India ("EC – Bed Linen  "), 
WT/DS141/AB/R, adopted 12 March 2001, DSR 2001:V, 2049, paras. 46-66, and Appellate Body Report,  United States – Final Dumping Determination on Softwood Lumber from Canada ("US – Softwood Lumber V  "), 
WT/DS264/AB/R, adopted 31 August 2004, DSR 2004:V, 1875, paras. 76-117) and 7.31. WT/DS294/RW  
Page 134  
 
 "margins of dumping" be established with respect to the product under investigation as a whole, on 
the basis of a comparison including all comparable export transactions.  The Appellate Body similarly 
concluded in US – Softwood Lumber V  that "dumping" and "margins of dumping" can only be 
established for the product under inv estigation as a whole. It reached that conclusion on the basis of, 
inter alia , Article VI:1 of the GATT 1994 and Article 2.1 of the Anti-Dumping Agreement (noting 
that both provisions refer to the dumping of "produc t(s)"). The Appellate Body thus reasoned that the 
result of all comparisons at the sub-group level mu st be included in calculating a margin of dumping 
for the product as a whole.  The panel and the Appe llate Body, in the original dispute in the present 
case, recognized the same basic obligation deriving fr om the definition of "d umping" and "margin of 
dumping" under Article 2 of the Anti-Dumping Agreement  – namely, that the margin of dumping, 
under that provision, must be calculated for the "product as a whole", and consequently, that "if the 
margin of dumping is calculated on the basis of multiple comparisons made at an intermediate stage, it is only on the basis of aggregating all these intermed iate results that an investigating authority can 
establish the margins of dumping for the product as a whole".
659  Thus, while the panel and the 
Appellate Body's findings of inc onsistency were made under differe nt legal provisions, they were 
premised on the same fundamental obligation under the Anti-Dumping Agreement , following from the 
definition of the term "margin of  dumping" under the Agreement. 
8.107  The original dispute concerned 15 original i nvestigation determinations and 16 administrative 
review determinations, whereas the subsequent revi ews are of two types – administrative reviews and 
sunset reviews.660   There are four different relationships betw een the measures at issue in the original 
dispute and the subsequent reviews at issue:   
(a) In some cases, the measure at issue in  the original dispute was an original 
investigation and the subsequent review challenged is an administrative review;  
(b) In others, the measure at issue in the orig inal dispute was an original investigation 
and the subsequent review ch allenged is a sunset review; 
(c) In yet other cases, both the measure at issue in the original dispute and the subsequent 
review challenged are administrative reviews;  
(d) Finally, in some cases, the measure at issue in the original dispute is an administrative 
review and the subsequent review challenged is a sunset review.   
Administrative reviews subsequent to original  determinations or earlier administrative 
reviews (a and c) 
 8.108  We first examine the situations in which an original investigation was found to be WTO-
inconsistent in the original dispute.  Original inv estigations have two functions.  First, they serve to 
                                                     
 
659 Appellate Body Report, US  –  Zeroing (EC), para. 132;  see also Panel Report, US – Zeroing (EC),  
para. 7.27 ff.  To be more precise, the Appellate Body considered that under Article 9.3 of the  Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994, the amount of the assessed anti-dumping duties may not exceed 
the margin of dumping as established "for the product as a whole" and found that the USDOC's use of zeroing in 
administrative reviews had resulted in the collection of duties in an amount greater than the margin of dumping established "for the product as a whole".   
660 Two of the subsequent reviews are changed circumstances reviews (May 2003 changed 
circumstances review in case 24, December 2003 changed circumstances review in case 17).  For the reasons 
discussed in para. 8.119 below, with respect to the "temporal" link between these measures and the DSB's 
recommendations and rulings, the Panel concludes that th ese measures do no fall within the scope of this 
proceeding.  In any case, because the sole effect of these reviews is to change the company whose exports are 
subject to the anti-dumping duties, they would be of limited relevance to our assessment of the US 
implementation of the DSB's recommendations and rulings.  WT/DS294/RW 
 Page 135 
 
 
 determine the existence of dumping, leading to issu ance of an anti-dumping order providing the legal 
basis for the imposition of anti-dumping duties.661  Second, they establish the cash deposit rate for 
future entries of the subject product from each expor ter.  Of these two functions, the establishment of 
a cash deposit rate is more closely connected with administrative reviews.  This is because cash 
deposits at the rate established in the original inv estigation serve as security for the collection of anti-
dumping duties; the amount of the final anti-dumping liability is established in the administrative 
review.662  The administrative review also establishes a new cash deposit rate fo r each exporter, which 
supersedes the previous cash deposit rate.663  Thus, the use by the USDOC of zeroing in the 
calculation of margins of dumping in the context of  a "subsequent" administrative review potentially 
negates action taken by the United States in the form  of a Section 129 determination recalculating the 
margin of dumping from the original investigation in order to implement the DSB's recommendations 
in respect of that original investigation, as it (i ) allows for the assessment of anti-dumping duties at a 
rate that is based on zeroing, incons istent with the provisions of the Anti-Dumping Agreement , despite 
alleged implementing action to eliminate such zeroing, and (ii) replaces the rate established in the original investigation (and any new rate establis hed as a result of the implementation of the DSB 
recommendations and rulings) with a new cash deposit rate calculated with zeroing.
664 
8.109  Likewise, successive administrative reviews in the same anti-dumping proceeding bear a 
close relationship with each other as each new revi ew performs a final assessment of duties secured 
by cash deposits at the rate established in the previ ous review and replaces that cash deposit rate with 
a newly-calculated one.  The fact that a subsequent administrative review may not relate to the same 
period and the same export transactions as the administra tive review at issue in the original dispute or 
the fact that the exporters concerned may, in some cases, vary does not, in our view, preclude a 
conclusion that the two measures are closely related.665  I n  US – Softwood Lumber (Article 21.5 –  
Canada) , the subsequent administrative review had the effect of undermining the US implementing 
action (the Section 129 determina tion); no such implementing action exists in the case before us.  
Rather, the United States asserts that it did not have to take any action to implement the DSB's 
recommendations and rulings because the administra tive reviews that were the subject of these 
recommendations and rulings were no longer in effect  as they had been superseded by subsequent 
administrative reviews.666  We find this US assertion significant.  It tends to confirm the close 
                                                      
661 Of course, an anti-dumping order can only be issued  if the necessary elements of injury and causal 
link are also established, but we are not here concerned with those issues. 
662 Where no administrative review is requested, the cash deposit rate established in the original 
investigation becomes the assessment rate. 
663 The European Communities and some of the third parties have indicated, in response to a question 
from the Panel, that they considered both "functions" performed by administrative reviews to bear the same 
"close nexus" to an original investigation" See EC Answer to Panel Question 13 and Japan's, Korea's, and 
Norway's Answer to Panel Questio n 5 to the third parties.   
664 We note that the US – Softwood Lumber IV (Article 21.5 – Canada)  panel found that:  
"even though the period of investigation of the Final Determination and Section 129 Determination may differ from the period of re view of the First Assessment Review, and even 
though the latter was initiated before the DSB adopted any rulings or recommendations 
regarding this matter, there is in fact consid erable overlap in the e ffect of these various 
measures.  Since the pass-through analysis in the First Assessment Revi ew could, therefore, 
have an impact on, and possibly undermine, any implementation of the DSB rulings and 
recommendations regarding pass-through by the Section 129 Determination, we consider that the pass-through analysis in the First Assessment Review should also fall within the scope of 
these DSU Article 21.5 proceedings."  
Panel Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 4.41. 
665 Nor does it affect our conclusion with respect to  the close relationship between the measures where 
the original measure is an original investigation an d the subsequent review is an administrative review. 
666 See inter alia , US First Written Submission, paras. 91-102 and Exhibit US-17 (containing a list of 
administrative review determinations which the United St ates considers superseded the measures challenged in 
the original dispute).   WT/DS294/RW  
Page 136  
 
 relationship that exists between subsequent admi nistrative reviews, and supports our view that 
subsequent administrative reviews may affect  the overall US implementation of the DSB's 
recommendations and rulings in respect of prior administrative reviews.
667  As a result, we consider 
that the use of zeroing in a "subsequent" administra tive review affects the US implementation of the 
DSB's recommendations with respect to the use of zero ing in the administrative reviews at issue in the 
original dispute or circumvents the US ob ligation to implement these recommendations. 
Sunset reviews subsequent to original determinations and earlier administrative reviews 
(b and d) 
 
8.110  The other function of original investigations, as mentioned above, is that they establish the 
legal basis for the imposition of antidumping duties.   Here, there is a close relationship with 
subsequent sunset reviews.   Sunset review determ inations provide a new legal basis for the imposition 
of anti-dumping duties, based on a different determination, i.e., likelihood of continuation or 
recurrence – rather than existence of – dumping (and injury).  Without an affirmative sunset review 
determination, an anti-dumping measure lapses at th e end of five years.  The European Communities 
argues that the USDOC improperly relied on margins of dumping calculated with the use of zeroing 
(in prior original investigations or administrative re views) in the context of subsequent sunset reviews 
conducted in the same proceeding as measures found to be WTO-inconsistent in the original dispute.  
Assuming that we were to agree with th e EC substantive claims in this respect668, it would follow that 
those "subsequent" sunset reviews which relie d on "zeroed" dumping margins affect the US 
implementation of the DSB recommendations with respect to the original investigations and 
administrative reviews at issue in  the original dispute by prolonging the original anti-dumping order 
or the results of the administrative reviews challenge d in the original dispute and, thus, the imposition 
and collection of duties based on zeroing. 
Temporal relationship 
8.111  Finally, we turn to the last element of our  analysis, the consideration of the temporal 
relationship between these measures and the DSB' s recommendations and rulings and the actions 
taken by the United States to comply with these recommendations and rulings, if any.  We also 
address, in this section of our analysis, the US argum ents with respect to the fact that subsequent 
reviews were not adopted "in view" of  the DSB's recommendations and rulings. 
8.112  The United States notes that in US – Softwood Lumber (Article 21.5 – Canada)  on which the 
European Communities relies, the Appellate Body f ound significant both the timing of the measure, 
which was taken after the adoption of the DSB's r ecommendations and rulings and very close in time 
to the "official" measure taken to comply, as well as the fact that the responding Member 
acknowledged that the determination had been made "in view of" the recommendations and rulings of 
the DSB.  The United States argues that, even ac cepting that determinations made "in view of" 
recommendations and rulings can be brought within  the terms of reference of an Article 21.5 
                                                      
667 See also the Panel Report in US – Softwood Lumber IV (Article 21.5 – Canada) , para. 4.41, where 
the panel took into consideration the fact that "the prospective effect of the Section 129 Determination was 
superseded by the prospective effect of the First Assessment Review, once the latter took effect"; and Appellate 
Body Report, US – Softwood Lumber (Article 21.5 – Canada) , para. 85, where the Appellate Body noted that 
the First Assessment Review directly  affected the Section 129 determin ation because the cash deposit rate 
resulting from that Determination was "updated", or "superseded", by the cash deposit rate resulting from the 
First Assessment Review.   
668 The European Communities claims  that the sunset review determinations are inconsistent with, inter 
alia, Article 11.3 of the Anti-Dumping Agreement .  We consider that only where the determination in a sunset 
review effectively relied on the dumping margins calculate d with zeroing does there exist a sufficiently close 
relationship to the original measures to warrant its consid eration by this Panel.  As this issue is intrinsically 
related to the substance of the European Communities' claims, it is examined below.    WT/DS294/RW 
 Page 137 
 
 
 proceeding does not mean that the subsequent reviews in this case fall within our terms of reference.  
First, some of the "subsequent" reviews were  decided prior to the adoption of the DSB's 
recommendations and rulings.  Second, the USDOC's de terminations in those reviews that were made 
after the adoption of the DSB's recommendations a nd rulings were not made "in view" of them.  
Further, the United States also asks the Panel to distinguish the findings of the panels in Australia 
Salmon (Article 21.5 – Canada)  and Australia Leather II (Article 21.5 – US) .  The United States 
argues that in these two cases, the additional "measure  taken to comply" was the result of a deliberate 
choice on the part of the authorities.  In contr ast, the United States submits that assessment reviews 
are required by the Anti-Dumping Agreement , when requested and that administrative reviews occur 
on a schedule that is established without regard to dispute settlement proceedings.  Thus, the 
subsequent reviews were not actions taken  by the United States to avoid any scrutiny of the measures 
found to be inconsistent with th e DSB recommendations and rulings.669  
8.113  The European Communities, and some of the thir d parties, Japan, Korea and Norway, argue  
that the "timing" is not dispositive of the questi on of whether the subsequent reviews are "closely 
connected with" the measures at i ssue in the original proceeding.670  The European Communities also 
argues that the USDOC had time to take account of the DSB's recommendation and rulings in 
subsequent anti-dumping proceedings but instead cho se to take actions directly contrary to its 
obligations arising therefrom ( i.e., the United States continued taking positive acts providing for the 
final payment of duties or retention of cash deposits based on zeroing).671   
8.114  The subsequent reviews brought before us can be divided into two broad categories:  the 
determinations that were made before the date of the adoption of the DSB's recommendations and 
rulings, and those made after that date.   
8.115   One would expect, as a matter of logic, that a measure taken before the adoption of the DSB's 
recommendations and rulings could rarely, if ever, be found to be a measure taken "to comply" with 
such recommendations and rulings.672  As a result, it would normally follow that only those 
subsequent reviews that were decided after such a doption could be taken into consideration as part of 
a compliance panel's examination of the implem entation of DSB recommendations and rulings. 673 
                                                      
669 US Answer to Panel Question 10. 
670 See e.g., EC Answer to Panel Question 20, and Japan's, Korea's and Norway's Answers to Panel 
Question 3 to the third parties. 
671 EC Answer to Panel Question 9. 
672 We recall the Appellate Body's indication that "[a]s a whole, Article 21 deals with events 
subsequent to the DSB's adoption of  recommendations and rulings in a particular dispute." Appellate Body 
Report, US – Softwood Lumber IV (Article 21.5 – Canada) , para. 70. 
673 The European Communities and Japan, in particular, have sought to justify the inclusion of 
measures pre-dating the adoption of the DSB's recommendati ons and rulings, and going as far back as the initial 
consultations in some cases.  (See EC Answer to Panel Question 20, in which the Eu ropean Communities argues 
that "it should not matter whether the measure subject to  the compliance proceeding was taken before or after 
the adopted DSB report, or at least, this criterion should  not be definitive to exclude certain measures from the 
scope of Article 21.5 DSU pro ceedings.") The European  Communities also argu es that under WTO 
jurisprudence, a measure that essentia lly replaces an earlier measure remains w ithin the terms of reference of an 
original panel.  (EC First Written Submission, para. 61, citing to Panel Report, Dominican Republic – Import 
and Sales of Cigarettes , paras. 7.11-7.21).  Japan makes similar arguments, and relies on prior WTO panel and 
Appellate Body decisions under Article 6.2 of the DSU, in which panels and Appellate Body have considered 
that measures adopted after consultations  or during the course of an origin al proceeding were within the panel's 
jurisdiction because they were, in substance , the same measures as those included in the consultations or panel 
request.  (Japan's Third Party Submission, paras. 65 ff.)  We do not understand Japan to argue that the prior 
panel and Appellate Body reports it refers to are directly applicable in this case, but only that they should inform 
the Panel's  application of the nexus based test applied in, inter alia , US – Softwood Lumber IV (Article 21.5 – 
Canada) .  We  simply note that the cases relied upon by the European Communities and Japan all concern 
original proceedings, and that, in many of the cases re ferred to, the panel and/or the Appellate Body explicitly WT/DS294/RW  
Page 138  
 
 The European Communities has not c onvinced us that a different conclusion is warranted in the 
present dispute. 
8.116  Conversely, measures adopted following the adoption of the DSB's recommendations may 
have a close link with the DSB's recommendations and rulings and with the steps, if any, taken by the 
implementing Member to achieve compliance with  the recommendations and rulings, and therefore 
warrant inclusion in the scope of an Article 21.5 proceeding.
674  In our view, the application of a 
nexus-based test should primarily aim at bringing  within the scope of the compliance dispute 
measures that potentially circumvent implementa tion or undermine measures officially taken to 
comply.  
Application to the facts of this case 
8.117  We now proceed to apply the general principl es articulated above in order to determine 
whether the subsequent reviews challenged by th e European Communities pr operly fall within our 
terms of reference. 
8.118   With respect to the nature and effects of th e subsequent reviews, we consider that the 
subsequent administrative reviews involving the calcu lation of a margin of dumping based on zeroing 
and subsequent sunset reviews in which the USDO C relies on margins of dumping calculated with the 
use of zeroing potentially fall within the scope of  this compliance proceeding.  We reach this 
preliminary conclusion on the basis of : 
(a) the close nexus that exists in terms of th eir nature between the subsequent reviews 
and the measures at issue in the original measure; 
(b) the fact that the subsequent reviews potentially affect or undermine the steps 
otherwise taken – or the steps that should have been taken – by the United States to 
comply with the recommendations and rulings of the DSB, notably in the form of Section 129 determinations. 
8.119  With respect to the temporal element of our analysis
675, we consider, for the reasons stated 
above, and even though they may have the sufficient nexus  in terms of nature a nd effects, that none of 
                                                                                                                                                                     
indicated that they reached their find ing in view of the fact that the amending measure did not affect the 
substance of the original measure.  In any case, we consider the panel and Appellate Body decisions cited by the 
parties ( Chile – Price Band , Dominican Republic – Cigarettes, EC  – Chicken Cuts, Brazil – Aircraft , Appellate 
Body Report, Argentina – Safeguard Measures on Imports of Footwear ("Argentina – Footwear (EC) "), 
WT/DS121/AB/R, adopted 12 January 2000, DSR 2000:I, 51 5), to be of little relevance in deciding the degree 
of the temporal relationship between the subsequent measures challenged by the European Communities and the DSB's recommendations and rulings.   
674 Provided, of course, that they otherwise bear the sufficient nexus with the measures at issue in the 
original dispute and/or the DSB's recommendations and rulings. 
675 We recall the timeline of the original dispute:   
 Original panel request:     5 February 2004 
 Revised panel request:   19 February 2004  Establishment of the Panel:  19 March 2004 
 Issuance of Panel Report (to parties): 28 September 2005 
 Circulation of Panel Report (to Members): 31 October 2005  Issuance of AB Report:   18 April 2006 
 Adoption by the DSB:   9 May 2006  WT/DS294/RW 
 Page 139 
 
 
 the subsequent reviews challenged by the Europ ean Communities that were decided before the 
adoption of the DSB's recommendations and rulings676 fall within our terms of reference . 
8.120  We note in this respect that the European Communities includes in its Annex subsequent 
reviews that were decided prior to the establishment of  the original panel.  Including such reviews in 
the scope of this compliance proceeding would mean  that the European Communities could, in the 
context of the Article 21.5 proceeding, revise the scope of the measures challenged in the original 
dispute; that would in our view be an overly ex tensive understanding of the flexibilities afforded by 
Article 21.5 of the DSU.  The European Communi ties has asserted that some of these measures (in 
particular the 2001-2002 administrative review in ca se 19 (Pasta from Italy, for exporter PAM), and 
the 2001-2002 administrative review in case 28 (Stain less steel sheet strip coils from Germany)) were 
adopted "just before" its revised re quest for the establishment of a panel in the original dispute (the 
results in both of these administrative re views were published on 10 February 2004, i.e.,  after the 
initial but before the revised EC panel request in th e original dispute.  Yet, as the United States points 
out, other determinations were take n many months, or even years before the EC panel request.  The 
European Communities could have sought to furthe r amend its original request for the establishment 
of a panel, or could have brought these measures to th e attention of the original panel; it did not do so.  
In our view, that decision of the European Communities has consequences on the scope of the 
findings made in the original dispute, and preclud es our consideration of those measures in this 
proceeding. 
8.121  We consider that each of the subsequent administrative review adopted following the 
adoption of the DSB's recommendations and rulings bears a sufficiently close nexus with the DSB's 
recommendations and rulings in the original dispute to warrant its inclusion in the scope of this 
proceeding.   
                                                      
676 The following "subsequent reviews" fall into this category:  2001-2002 administrative review 
(adopted 22 July 2004) and 2002-2003 administrative review (adopted 11 April 2005) in case 1 (Hot Rolled 
Steel from the Netherlands); 2003-2004 administrative revi ew (10 August 2005) in case 2 (Stainless Steel Bar 
from France); 2001-2003 administrative review (14 June  2004) in case 3 (Stainless Steel Bar from Germany); 
2001-2003 administrative review (14 June 2004) in case 4 (Stainless Steel Bar from Italy); sunset review 
(continuation order) (13 August 2004) in case 6 (Stainless Steel Wire Rod from Sweden); 1998-1999 
administrative review (21 February 2001), sunset review (continuation order) (August 13, 2004) in case 7 (Stainless Steel Wire Rod from Spain); sunset review (continuation order) (13 August 2004) in case 8 (Stainless 
Steel Wire Rod from Italy); sunset review (continuation order) (6 December 2005) in  case 14 (Certain Cut-to-
Length Carbon-Quality Steel Plate from Italy); 2002-2 003 administrative review (19 January 2005), 2003-2004 
administrative review (7 December 2005) and sunset review (continuation order) (18 July 2005) in case 18 
(Stainless Steel Plate in Coils from Belgium); 2001-2002 administrative review in case 19 (Pasta from Italy, for exporter PAM) (10 February 2004, i.e., after the initial but before the corrected EC panel request in the original 
dispute); 2001-2002 administrative review (27 April 2004) in case 20 (Certain Pasta from Italy, for exporter 
Pastifi Garofalo); 2001-2002 administrative review (12 December 2003), 2002-2003 administrative review (17 March 2005) and sunset review (continuation order) (4 August 2005) in case 22 (Stainless Steel Strip Coils from 
Italy); sunset review (continuation or der) (22 December 2005) in case 24 (Granular Polytetraf luorethylene from 
Italy); 2001-2002 administrative review (12 December 2003), 2002-2003 administrative review (11 February 2005) and 2003-2004 administrative review (7 February 2006) in case 26 (Stainless Sheet Strip 
Coils from France); 2001-2002 administrative review (10 February 2004) ( i.e., after the initial but before the 
revised EC panel request in the original dispute), 2 002-2003 administrative revi ew (20 December 2004), 2003-
2004 administrative review (13 December 2005) and sunset  review continuation order (4 August 2005) in case 
28 (Stainless Steel Sheet Strip Coils from Germany); 2001-2002 administrative review (24 July 2003), 2002-
2003 administrative review (15 September 2004) and 2003-2004 administrative review (16 September 2005) in case 29 (Ball Bearings from France); 2001-2002 administrative review (16 June 2003), 2002-2003 
administrative review (15 September 2004), 2003-2004 administrative review (16 September 2005) in case 30 
(Ball Bearings from Italy, exporters SKF and FAG); 2002-2003 administrative review (15 September 2004) and 2003-2004 administrative review (16 September 2005) in case 31 (Ball Bearings from the United Kingdom, 
with respect to The Barden Corporation UK). WT/DS294/RW  
Page 140  
 
 8.122  We note that in certain cases, the United Stat es argues that the determination was not made 
"in view" of the DSB's recommendati ons and rulings.  In some instance, the United States notes that 
the determination makes no reference to the issu e of zeroing:  2004-2005 administrative review in 
case 2 (Stainless Steel Bar from France);
677 2004-2005 administrative review in case 3 (Stainless Steel 
Bar from Germany);678 2004-2005 administrative review in case 24 (Granular Polytetrafluorethylene 
from Italy)679, 2004-2005 administrative review in case 6 (Stainless Steel Wire Rod from Sweden);680 
2005-2006 administrative review in case 5 (Stainle ss Steel Bar from the United Kingdom) (in this 
case because no party specifically raised the issue).681  In other cases, the issue of zeroing is 
addressed, but the USDOC declines to  follow the respondents' invitation to discontinue the use of 
zeroing because "the United States has not yet gone  through the statutorily mandated process of 
determining how to implement the report [in the orig inal dispute]":  2004-2005 administrative review 
in cases 29 and 30 (Ball bearings from France, Italy – respondents FAG and SKF)682 and 2004-2005 
administrative review in case 28 (Stainless Steel Sheet Strip Coils from Germany)683 or in addressing 
the issue of zeroing in that review, the USDOC stat ed that the administrative reviews at issue in the 
original dispute had been superseded and we re therefore no longer in effect:  2004-2005 
administrative review in case 1 (Hot-Rolled Steel from the Netherlands).684  
8.123  Accepting the general argument of the United States that the USDOC is not making certain 
determinations "in view" of the DSB's recommendations where the USDOC declines to implement the DSB's recommendations with respect to administrative  reviews could lead to the incongruous result 
that a measure would evade scrutiny in Article 21.5 proceedings because the implementing Member's 
authorities specifically indicated their refusal to take into consideration the DSB's recommendations 
and rulings.  In fact, the USDOC's statements in our view supports inclusion of these measures in the 
scope of this proceeding.  With respect to the other situation (where the USDOC makes no reference 
to zeroing in the determination or the Issues and Decision Memoranda or indicates that the United States has not yet begun the implementation process), we consider that insofar as zeroing was 
used in the determination, whether or not the issu e was specifically raised by an interested party 
should not prevent us from considering it.   
8.124  Turning to the sunset reviews that the Europ ean Communities challenges, we consider that 
the sunset reviews in cases 2, 4 and 5 (Stainless Steel Bar from France, Italy and the United Kingdom)
685 in case 3 (Stainless Steel Bar from Germany)686, and in case 19687 all fall within 
our terms of reference because they bear the required nexus with the DSB's recommendations and 
                                                      
677 71 FR 30873, 31 May 2006.   
678 71 FR 52063, 1 September 2006. 
679 72 FR 1980, 17 January 2007. 
680 72 FR 26337, 9 May 2007, Exhibit EC-16 (amended results of administrative review, the original 
final results were published on 10 April 2007).  We note that, as a result of the Section 129 determination, the 
order was revoked effective 23 April 2007. 
681 72 FR 15106, 30 March 2007. 
682 71 FR 54469, 14 July 2006. 
683 71  FR 74897, 13 December 2006. 
684 72 FR 3441, 22 June 2007 (amended final results; final results issued on 22 May 2007).  Exhibits 
EC-11 and EC-12.   
685 72 FR 30772, 4 June 2007. 
686 72 FR 29970, 30 May 2007. 
687 72 FR 5266, 5 February 2007.  With respect to case 19, the United States argues that interested 
parties did not raise, and the USDOC made no mention of, the issue of zeroing and that therefore, the 
determination could not have been made "in view of " the DSB's recommendations and rulings.  US Opening 
Statement, para. 16, US Answer to Panel Question 14.  For the reasons set out in para. 8.123, we find this 
argument unpersuasive. With respect to cases 2, 3, 4 and 5, the Panel understands the United States to consider 
that the measures cannot be before us because the determinations resulted in the revocation of the order.  We address this argument as part of our substantive analys is of the EC claims in respect of these reviews.  Infra , 
paras. 8.245 to 8.264.  WT/DS294/RW 
 Page 141 
 
 
 rulings to warrant their inclusion in the scope of  this proceeding.  In each of these reviews, the 
USDOC's likelihood-of-dumping determination w as made after the adoption of the DSB's 
recommendations and rulings.  In our view, it is the date of that determination that is the most 
appropriate point in time to focus upon in the context of  sunset reviews.  After all, that is the time at 
which the USDOC determines whether dumping is likely  to continue or recur, allegedly on the basis 
of dumping margins calculated with zeroing.  By contrast, the sunset reviews in cases 29, 30 and 31 
(Ball bearings from France, Italy, and the United Kingdom)688 do not, in our view, bear the required 
"temporal" nexus with the DSB's recommendations and rulings to warrant their inclusion in the scope 
of this proceeding.  In these case s, while the continuation order was issued after the adoption of the 
reports by the DSB, the USDOC's likelihood-of-d umping determination was issued prior to the 
adoption of the DSB's recommendations and rulings.   
8.125  In addition, the European Communities has refe rred, in its submissions, to an additional 
"subsequent review", the 2005-2006 administ rative review in case 23/24 (Granular 
Polytetrafluorethylene from Italy).689  We note that this administrative review determination was not 
included in the EC Article 21.5 panel request.  We  do not consider that the EC Article 21.5 panel 
request is broad enough to include any subsequent review other than those specifically listed by the 
European Communities in the Annex thereto.  As a consequence, neither the 2005-2006 
administrative review in cases 23/24690 nor any other subsequent review not specifically listed are 
before us.691   
(v) Conclusion 
8.126  We therefore find that the following subsequent reviews fall within our terms of reference: 
(a) Subsequent administrative reviews:   
(i) 2004-2005 administrative review (22 June  2007) in case 1 (Hot-Rolled Steel 
from the Netherlands);  
(ii) 2004-2005 administrative review (31 Ma y 2006) in case 2 (Stainless Steel 
Bar from France); 
(iii) 2004-2005 administrative review (1 September 2006) in case 3 (Stainless 
Steel Bar from Germany); 
(iv) 2005-2006 administrative review (preli minary results) (30 March 2007)  in 
case 5 (Stainless Steel Bar from the United Kingdom); 
(v) 2004-2005 administrative review (9 May 2007) in case 6 (Stainless Steel 
Wire Rod from Sweden). 
                                                      
688 71 FR 54469, 15 September 2006 (Notice of continuation of AD order).  See Exhibits EC-37 and 
EC-59 for the Notice and the Issues and Decision Memorandum of the USDOC likelihood-of-dumping determination issued 5 October 2005. 
689 EC First Written Submission, para. 81, Exhibit EC-17. 
690 We note that the determination in this review was issued after the establishment of this compliance 
panel. 
691 The European Communities requests that we make findings with respect to US actions in relation to 
"measures challenged in the original dispute (including the measures listed in the Annex to the Panel Request and any other subsequent review )".  EC First Written Submission, para. 155; supra , para. 4.1(c) (emphasis 
added). WT/DS294/RW  
Page 142  
 
 (vi) 2004-2005 administrative review (17 January 2007) in case 24 (Granular 
Polytetrafluorethylene from Italy); 
(vii) 2004-2005 administrative review (13 December 2006) in case 28 (Stainless 
Steel Sheet Strip Coils from Germany); 
(viii) 2004-2005 administrative review in (14 July 2006) case 29 (Ball Bearings 
from France); 
(ix) 2004-2005 administrative review (14 July  2006) in case 30 (Ball Bearings 
from Italy, with respect to respondents FAG and SKF); 
(b) Subsequent sunset reviews:   
(i) USDOC final likelihood-of-dumping determination in cases 2, 4 and 5 
(4 June 2007); 
(ii) USDOC preliminary likelihood-of-dumping determination in case 3 
(30 May 2007); 
(iii) USDOC final likelihood-of-dumping determination in case 19 
(5 February 2007). 
8.127  We note however that our conclu sion that only these subsequent reviews fall within our terms 
of reference does not mean that we  may not take into consideration omissions  to implement on the 
part of the United States as part of our substantive an alysis of the EC claims below.  In particular, we 
are of the view that alleged omissions in the form of the continued imposition of cash deposit 
requirements at rates calculated with zeroing, after the end of the reasonable period of time, should be 
considered in order to make findings with respect  to whether the United States has complied with the 
recommendations and rulings of the DSB.   To conclude otherwise would allow the United States to 
circumvent its obligation to implement those recomme ndations and rulings by virtue of the fact that 
the cash deposit rate originally at issue and found to  be inconsistent with US obligations is replaced 
by a new, potentially similarly-inconsistent, rate calculated in another review. In this sense, and 
insofar as they continued to apply, we make  no distinction between cash deposits requirements 
established in subsequent administrative reviews d ecided before and after the adoption of the DSB's 
recommendations and rulings. 
E. 
EC GENERAL CLAIMS THAT TH E UNITED STATES FAILED TO FULLY IMPLEMENT THE DSB 'S 
RECOMMENDATIONS AND RULINGS  
1. Introduction 
8.128  In this section of our report, we address the general EC claims692 to the effect that the 
United States failed to implement the DSB's recomme ndations and rulings in the original dispute.  
The European Communities makes specific claims:693 
(a) with respect to "subsequent" sunset reviews; 
                                                      
692 The European Communities has referred to these cl aims as pertaining to "violations with respect to 
all measures covered in this proceeding".  See e.g., EC First Written Submission, heading II.B.   
693 We address below the EC claims  that certain of the US measur es taken to comply (Section 129 
determinations) are inconsistent with the United Stat es' obligations under the covered agreements.  See infra , 
section VIII.G.  WT/DS294/RW 
 Page 143 
 
 
 (b) with respect to actions taken by the Unit ed States to collect anti-dumping duties with 
respect to the measures at issue in the original dispute (including pursuant to 
subsequent administrative reviews)694 after the end of the reasonable period of time; 
(c) with respect to the fact that no US measu res taken to comply existed in the period 
between the end of the reasonable period of time and the effective date of the Section 
129 determinations (23 Apr il and 31 August 2007).   
8.129  We consider each of these groups of claims in turn.   
2. EC claims with respect to subsequent sunset reviews 
(a) Main arguments of the parties 
8.130  The European Communities  submits695 that the United States has extended the measures 
challenged in the original dispute pursuant to sun set review proceedings c oncluded before and after 
9 April 2007, and which relied on dumping margin s calculated with zeroing.  In particular, the 
USDOC decided to extend the measures challenged in the original dispute because, based on the 
previous levels of dumping found in original inves tigations or administrativ e review determinations 
and calculated using zeroing, it considered that it w as likely that dumping would recur.  The European 
Communities submits that, by relying, in the sub sequent sunset review proceedings listed in the 
Annex to its Article 21.5 panel request, on margins ca lculated in prior proceedings using zeroing, the 
United States did not comply with its obligations pursuant to Articles 2.1, 2.4 and 2.4.2 because these 
margins were not based on a fair comparison and not calculated for the product as a whole and that, as 
a result, the United States acted in breach of Article 11.3 of the Anti-Dumping Agreement .696 
8.131  The European Communities relies on the Appellate Body Report in US – Corrosion-Resistant 
Steel Sunset Review , in which the Appellate Body found th at if a likelihood determination under 
Article 11.3 is based on a dumping margin cal culated using a methodolog y inconsistent with 
Article 2.4 of the Anti-Dumping Agreement , then this defect also taints the likelihood determination 
and, thus, the USDOC's likelihoo d determination could not constitute a proper foundation for the 
continuation of anti-dumping duties under Article 11.3.   Moreover, the Appellate Body has ruled on 
the inconsistency of the use of zeroing in sunset review proceedings in US – Zeroing (Japan) , where it 
also noted that the USDOC relied on past margins th at were calculated during administrative reviews 
on the basis of "simple zeroing".  Having previously  concluded that zeroing in administrative review 
investigations is inconsistent with Articles 2.4 and 9.3 of the Anti-Dumping Agreement , the Appellate 
Body found that the determinations in the sunset review s at issue were inconsistent with Article 11.3.   
8.132  The United States  argues that the sunset reviews identified in the EC Article 21.5 panel 
request are not within the terms of reference of this Panel.697   Further, the United States submits that 
                                                      
694 The European Communities regards subsequent administrative reviews as amendments to the 
measures at issue in the original dispute.  See supra , paras. 8.38 and 8.61-8.84, infra  para. 8.146 and e.g. EC 
Opening Statement, para. 46. 
695 EC First Written Submission, paras. 69-75, EC Second Written Submission, paras. 63-65, EC 
Opening Statement, paras. 44-45.  See also Annex B to the EC Answer to Panel Question 6, providing the margin of dumping relied upon in the sunset review, included in the EC Article 21.5 panel request, and 
providing references to various EC exhibits suppor ting its claims with respect to sunset reviews. 
696 Further, in its argument that the 16 administrative review investigations challenged in the original 
dispute have not been superseded, th e European Communities submits that the US failure to recalculate the 
dumping margins without zeroing in all the administrative reviews covered in the original dispute affects the 
extension of the original orders pursuant to sunset revi ew investigations.  EC First Written Submission, para. 97. 
697 US First Written Submission, paras. 51-53, US  Second Written Submission, paras. 23-24.  See 
supra , sections VIII.D.1(c) and VIII.D.2(c) where the Panel addresses the US arguments that the subsequent WT/DS294/RW  
Page 144  
 
 the European Communities has failed to establish that the United States acted inconsistently with its 
WTO obligations in making those s unset review determina tions.  The United States considers that the 
European Communities has failed to present any ev idence that the USDOC or the USITC in any way 
relied upon "the margin likely to prevail" in maki ng their respective likeli hood determinations; and 
that the European Communities h as also failed to demonstrate whether the USDOC relied on margins 
calculated in the 31 determinations at issue in the original dispute in making its likelihood-of-
dumping determination.  Under US law, the USDOC's  determinations in sunset reviews serve two 
purposes.  First, the USDOC determines whether the revocation of the an tidumping duty order would 
likely lead to the continuation or recurrence of dum ping.  The USDOC then reports to the USITC the 
margin of dumping that is likely to prevail if the order is revoked.  The USITC, in turn, determines 
whether the revocation of the antidumping duty order would likely lead to a continuation or 
recurrence of material injury.  The USDOC doe s not, as the European Communities suggests,  
calculate any new margins of dumping in a sunset re view determination.  Further, as the panel in US – 
Anti-Dumping Measures on Oil Country Tubular Goods recognized, the USDOC does not rely on the 
margin reported to the USITC as the margin likely to  prevail in making its de termination of likelihood 
of continuation or recurrence of dumping.  The Appellate Body did not disturb these findings, and 
noted that Mexico had provided no evidence that th e USITC had relied on or otherwise factored in the 
margin of dumping likely to prevail that was reported to it by the USDOC.
698 
(b) Main arguments of the third parties 
8.133  Korea  submits that, in conducting a sunset review, the margins and results of the original 
investigations and administrative reviews are regarded by the USDOC as key factors in reaching a 
likelihood determination.  If applicable margins or re sults are inflated as a result of the application of 
zeroing and if the inflated data are then taken into  account in a sunset review, such a sunset review 
also constitutes violation of relevant provisions of the Anti-Dumping Agreement , such as Articles 2.1, 
2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement .  In Korea's view, the sunset reviews of the 
USDOC cannot be separated from previous anti-dumping proceedings.699 
8.134  Norway  submits that the Appellate Body has held that all dumping margins in sunset reviews 
conducted in accordance with Article 11.3, must c onform to the disciplines of Article 2.4.  If the 
margins are calculated using a methodology that is inc onsistent with Article 2.4, then this could give 
rise to an inconsistency not only with Article 2.4,  but also with Article 11.3.  The Appellate Body has 
confirmed that this also applies where the inves tigating authority relies on margins calculated (with 
the use of zeroing) during periodic reviews.  Based on the above, Norway considers that the 
United States has violated Article 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement  by relying 
on past dumping margins calculated with zeroing, in  determining the likelihood of dumping in the 
sunset review proceedings related to me asures challenged in the original dispute.700 
(c) Evaluation by the Panel 
8.135  With respect to subsequent sunset review de terminations, the European Communities requests 
that we make the following finding:   
                                                                                                                                                                     
sunset reviews challenged by the EC are not within our terms of reference and are not "identified" in the EC 
panel request, as required by Article 6.2 of the DSU. 
698 US Comments on EC Answer to Panel Question 6, referring to Panel Report, United States – Anti-
Dumping Measures on Oil Country Tu bular Goods (OCTG) from Mexico  ("US – Anti-Dumping Measures on 
Oil Country Tubular Goods  "), WT/DS282/R, adopted 28 November 2005, as modified by Appellate Body 
Report, WT/DS282/AB/R, DSR 2005:XXI, 10225, para. 7.83, and Appellate Body Report, United States – Anti-
Dumping Measures on Oil Country Tu bular Goods (OCTG) from Mexico , ("US – Anti-Dumping Measures on 
Oil Country Tubular Goods ") WT/DS282/AB/R, adopted 28 November 2005, DSR 2005:XX, 10127, para. 180. 
699 Korea's Third Party Submission, paras. 21-22. 
700 Norway's Third Party Submission, paras. 23-27.  WT/DS294/RW 
 Page 145 
 
 
 "the United States violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping 
Agreement  when extending the measures contained in the original dispute pursuant to 
sunset review proceedings relying on margin of duties calculated with zeroing." 
8.136  We recall that we have determined that the fo llowing sunset review determinations fall within 
our terms of reference because they potentially affect the US implementation of the DSB's 
recommendations and rulings: 
(a) USDOC final likelihood-of-dumping determina tion in cases 2, 4 and 5 (4 June 2007); 
(b) USDOC preliminary likelihood-of-dumping determination in case 3 (30 May 2007); 
(c) USDOC final likelihood-of- dumping determination in case 19 (5 February 2007). 
8.137  In the first instance, we note that there is a certain degree of inconsistency in the EC 
arguments in support of its claims with respect to subsequent sunset  review determinations.  In its 
First Written Submission, the European Communities argued that in all the sunset reviews that it 
challenges, the USDOC relied on past dumping marg ins in making the determination of likelihood of 
dumping and that those dumping margins had been calculated in original investigations or 
administrative reviews using zeroing.701  In its Answer to Panel Question 6, however, the European 
Communities submits that "the dumping margins used in  all sunset reviews liste d in the Annex to the 
Panel Request were those of the original orders".702  The European Communities seems, in this later 
submission, to refer to the margins reported by  the USDOC to the USITC as margins of dumping 
likely to prevail in case the orders were continue d.  Yet, the Appellate Body reports on which the 
European Communities relies address the USDOC's reliance on the continued existence of dumping 
after the issuance of the AD order, i.e. basing its decision regarding likelihood-of-dumping on 
margins calculated in administrative reviews.703 
8.138  With respect to cases 2, 4 and 5, the Eur opean Communities specifically refers to the 
statement of the USDOC  that "[g]iven that dumping has continued at above de minimis  levels, the 
Department determines that dumpi ng is likely to continue or recur if the order were revoked".704  The 
Issues and Decision Memorandum in these cases indicat es clearly that the USDOC relied on both the 
fact that imports had decreased following issuan ce of the order, and on the fact that dumping 
continued after the issuance of the order, with r espect to imports from France, Italy, and the United 
                                                      
701 The European Communities submits that the USDOC has explicitly rejected arguments of exporters 
that it should take into consideration what the margins would have been had the Department not applied zeroing in calculating them, noting in this respect that it had not modified its calculation methodology in respect of the 
use of zeroing in administrative reviews.  EC First Written Submission, para. 69, referring to Issues and 
Decision Memorandum for the Sunset Review of the Antidumping Duty Order on Stainless Steel Bar from Germany; Final Results, USDOC (1 October 2007), p. 5 (Exhibit EC-10). 
702 Annex B of EC Answer to Panel Question 6. 
703 See, inter alia , Appellate Body Report, United States – Sunset Review of Anti-Dumping Duties on 
Corrosion-Resistant Carbon Steel Flat Products from Japan ("US – Corrosion-Resistant Steel Sunset Review "), 
WT/DS244/AB/R, adopted 9 January 2004, DSR 2004:I, 3, para. 130 and Panel Report, United States – Sunset 
Review of Anti-Dumping Duties on Corrosion-Resistant Carbon Steel Flat Products from Japan  ("US – 
Corrosion-Resistant Steel Sunset Review "), WT/DS244/R, adopted 9 January 2004, as modified by Appellate 
Body Report, WTDS244/AB/R, DSR 2004:I, 85, paras. 7.150-7.155; Panel Report, United States – Measures 
Relating to Zeroing and Sunset Reviews ("US – Zeroing (Japan) "), WT/DS322/R, adopted 23 January 2007, as 
modified by Appellate Body Report, WT/DS322/AB/R, paras. 7.255-256 and the panel's comments, reflecting 
our own, at para. 7.243 and footnote 849. 
704 EC First Written Submission, para. 69, referrin g to Issues and Decision Memorandum for the 
Expedited Sunset Reviews of the Antidumping Duty Orders on Stainless Steel Bar from France, Italy, South 
Korea, and the United Kingdom; Final Results, USDOC (25 May 2007), p. 6 (Exhibit EC-9). WT/DS294/RW  
Page 146  
 
 Kingdom.
705  With respect to the USDOC's likelihood-of-dumping determination in case 3, the 
European Communities included in the Annex to  its Panel Request the Preliminary USDOC 
Determination.  As part of its First Written Su bmission, the European Communities subsequently 
provided the Panel with the Issues and Decision Memorandum to the USDOC's Final likelihood-of- 
dumping determination.  That Memorandum indicates that the USDOC relied on the fact that imports 
decreased after the issuance of the order and that dumping occurred at more than a de minimis  level 
after the issuance of the order, on the basis of the margins of dumping calculated using zeroing in subsequent administrative reviews.
706  With respect to the USDOC likelihood-of-dumping 
determination in case 19, the European Commun ities has not referred us to any specific USDOC 
language in support of its claims, limiting itself to asserting that the margin of dumping used by the 
USDOC was that calculated in the original inv estigation.  The Issues and Decision Memorandum 
submitted to the Panel by the United States however  indicates that the USDOC found that dumping 
was likely to continue or recur if the orders  were revoked based on its finding that dumping had 
continued at above de minimis levels since the issuance of the order.707  It seems clear to us from the 
Issues and Decision Memoranda in th ese cases that the findings that dumping had continued at above 
de minimis  levels since the issuance of the relevant AD  order refer to dumping margins that had been 
calculated in administrative reviews, using zeroing. 
8.139  Even assuming that the Europ ean Communities has made a prima facie  case that the USDOC 
relied on dumping margins calculated with zeroing in these sunset reviews, however, we cannot make 
the finding requested by the European Comm unities. The European Communities has not 
demonstrated that the USDOC determinations it challenges resulted in the continuation of the 
underlying AD order as of the time  this Panel was established.708  In fact, in cases 2, 3, 4, and 5, the 
sunset review proceedings had not been concluded as of that date, and eventually resulted in the 
revocation of the orders, following a negative likelihood-of-injury determination by the USITC.709  
With respect to case 19, the proceedings had not b een concluded, and thus, there was no continuation 
of the underlying order as of this Panel's establishment. 
8.140   Thus, any failures by the United States in these sunset reviews had not yet materialized as at 
the date of the establishment of this Panel, and thus had no effect on the US implementation of the 
DSB's recommendations and rulings.  As a conseque nce, we cannot find that the United States has 
"violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement  when extending  the 
measures contained in the original dispute pursuant to  sunset review proceedings relying on margin of 
duties calculated with zeroing" (emphasis added) .  We therefore do not consider that the 
European Communities has demonstrated that the United States failed to comply with the 
recommendations and rulings of the DSB in the sunset reviews at issue.  
8.141  As a result, we do not make any findings in respect of the EC claims of violation under 
Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement in subsequent sunset review 
determinations.  Nor do we need to make findings w ith respect to the EC claim that the United States 
failed to comply with the DSB's recommendations  and rulings because the United States relied on 
                                                      
705 Issues and Decision Memorandum for the Expedited Sunset Reviews of the Antidumping Duty 
Orders on Stainless Steel Bar from France, Italy, South Korea, and the United Kingdom; Final Results, USDOC 
(25 May 2007), p. 6 (Exhibit EC-9). 
706 Exhibit EC-10, p. 5. 
707 Exhibit US-25, p. 5. 
708 Issues and Decision Memorandum from Notice of Final Results of Expedited Sunset Review of the 
Anti-dumping Orders:  Certain Pasta from Italy and Turkey (5 February 2007). As discussed further below, para. 8.226, we consider that we must make our findings with respect to the situation existing on the date of our 
establishment. 
709 Exhibit US-13, Revocation of Antidumping Duty Orders on Stainless Steel Bar from France, 
Germany, Italy, South Korea, and the United Kingdom and the Countervailing Duty Order on Stainless Steel 
Bar from Italy (73 FR 7258), 7 February 2008.  WT/DS294/RW 
 Page 147 
 
 
 margins of dumping calculated in subsequent administ rative reviews in the context of sunset review 
determinations.710  
3. EC claims with respect to subsequent admini strative reviews and with respect to US 
actions to collect AD duties calculated with zeroing 
(a) Main arguments of the parties 
8.142  The European Communities  submits that the United States has not fully implemented the 
recommendations made by the DSB in the original di spute.  The European Communities claims that, 
with respect to the original investigations and admi nistrative reviews at issue in the original dispute, 
the United States continues, after the end of the reasonable period of time, to take positive acts, 
including new administrative review investigations , assessment instructions and final liquidations, 
based on zeroing.711  The European Communities submits that the United States still seeks to liquidate 
entries concerning measures which were covered by the original di spute, applying the same zeroing 
methodology which was found inconsistent with the Anti-Dumping Agreement  and the GATT 1994 by 
the rulings and recommendations of the DSB.  In pa rticular, the European Communities considers that 
any determination of dumping based on zeroing made after the end of the reasonable period of time in 
connection with the measures challenged in the orig inal dispute is inconsistent with the DSB's 
recommendations.  Further, the European Commun ities maintains that any collection or final 
liquidation of duties based on zeroing with respect to  the measures at issue in the original dispute, 
including the subsequent reviews listed in the Annex to its Panel request taking place after 
9 April 2007, is also inconsistent with those recommendations and rulings.712  The European 
Communities considers that, with respect to the or iginal investigations a nd administrative reviews 
challenged in the original dispute, the United Stat es still continues to collect anti-dumping duties and 
establish cash deposit rates inflated by zeroing after the end of the reasonable period of time.  Indeed, 
after the end of the reasonable period of time, the United States (i) has issued assessment instructions 
to collect anti-dumping duties based on zeroing; (ii)  has established new cash deposit rates based on 
zeroing, and (iii) continues proceedings for final liquidation of duties calcu lated with zeroing with 
respect to measures which were covered by the original dispute.713  Since the United States still 
collects anti-dumping duties calculated with zeroing with respect to measures challenged in the 
original dispute, the European Co mmunities requests that the Panel fi nd that the measures listed in the 
Annex to the Panel request are inconsiste nt with Articles 2.4.2 and 9.3 of the Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994 and that the United States remains in violation of these 
provisions.714  The claims of the European Communities c oncern both the original investigations and 
the administrative reviews covered by the original proceeding. 
8.143  With respect to the original investigations  at issue in the original dispute, the European 
Communities asserts that: 
(a) the United States has issued assessment instru ctions to collect duties in subsequent 
administrative reviews in which simple zeroing was used in calculating the amount of 
duty to be paid, and the results were obtained after  9 April 2007.715  In addition, the 
                                                      
710 See below para. 8.198 for the EC claims in this respect; see also the discussion at para. 8.222. 
711 EC First Written Submission, para. 6. 
712 EC First Written Submission, para. 45. 
713 EC First Written Submission, para. 66. 
714 EC First Written Submission, para. 88. The European Communities considers that the issue of the 
conformity of the use of zeroing with the Anti-Dumping Agreement  is res judicata  and that this Panel should 
therefore not address it.  EC First Written Submission, para. 87. 
715 European Communities First Written Submission, para. 78.  The European Communities gives the 
example of case 1 (Hot-Rolled Steel Fl at Products from the Netherlands), in which the USDOC instructed the WT/DS294/RW  
Page 148  
 
 European Communities claims that the Un ited States has also issued assessment 
instructions to collect duties after 9 April 2007 in cases where the results were 
obtained before  9 April 2007, after legal proceedi ngs brought by importers against 
the final assessments made by the USDOC were concluded;
716  
(b) in cases where administrative reviews were not requested, the United States has, after 
9 April 2007, issued assessment instructions to  collect duties at the rate established in 
the original investigations covered by the original dispute, in which model zeroing 
was used;717 
(c) the United States, after 9 April 2007, h as established new cash deposit rates, 
calculated using simple zeroing in subse quent administrative reviews in connection 
with the original investigations challenged in the original dispute.718  
8.144  With respect to the admini strative review proceedings  covered in the original dispute, the  
European Communities asserts that the United States  has issued assessment instructions to collect 
anti-dumping duties, and has established new cash depos it rates calculated using simple zeroing, in 
subsequent administrative reviews where results were obtained after 9 April 2007.719   
8.145  With respect to both the original inves tigations and the administrative reviews  covered by the 
original proceedings, the European  Communities asserts that the Un ited States, after 9 April 2007, 
still actively seeks to collect AD duties as a result of modifications of the original measures pursuant 
to subsequent administrative reviews for which assess ment instructions were sent before 9 April 2007 
and where "simple zeroing" was used.  The US aut horities continue proceedings to obtain the final 
payment of the duties, even where importers have  brought legal proceedings against the assessment 
instructions issued to collect duti es calculated with zeroing or have protested the liquidations made by 
the US authorities.  Thus, the European Co mmunities argues that, after 9 April 2007, the 
United States continues to take positive acts to obt ain final payment of duties due or retain cash 
deposits made which were calculated based on zeroing with respect to those entries that were not 
finally liquidated before the end of  the reasonable period to implement.720 
8.146  With respect to the above, the European Co mmunities argues that the DSB recommended that 
the United States bring the measures at issue in the original dispute into c onformity, including "any 
amendments" and "each assessment instructions issu ed pursuant" to the original orders and/or 
administrative reviews.  The European Communiti es adds that the modifications made by the 
United States have not changed the "essence" of the contested measure in the original dispute (use of 
                                                                                                                                                                     
USCBP to collect duties at 2.26 per cent on 22 June 2007, even though the Section 129 determination revoked 
the original order on 23 April 2007 since, without zeroing, no dumping was found. 
716 See EC First Written Submission, footnote 67. 
717 EC First Written Submission, para. 79.  The European Communities gives again the example of 
case 1 (Hot-Rolled Steel Flat Products from the Netherla nds), in which the fifth administrative review, covering 
imports from 1 November 2005 to 31 October 2006, was rescinded, and the duty resulting from the original investigation was therefore applied.  The assessment inst ructions in that case were issued on 16 April 2007 and 
the USCBP subsequently instructed the ports to liquidate those entries on 23 April 2007.   
718 EC First Written Submission, para. 80.  The European Communities submits that, for instance, in 
case 6, on 9 May 2007, the USDOC inst ructed USCBP to collect AD duties at 19.36 per cent, even though the 
Section 129 determination revoked the original order on  23 April 2007, and in add ition, the USDOC notified the 
USCBP of the revised cash deposit rate for the exporter concerned. 
719 The European Communities gives, as example, that of case 23, in which it alleges that the USDOC 
imposed duties at a rate of 35.35 per cent on Solvay Solexis, successor of Ausimont SpA, using "simple 
zeroing" and established the new amount as the new cash deposit rate.  EC First Written Submission, para. 73. 
720 EC First Written Submission, para. 82.  The European Communities again gives as example that of 
case 1.  See EC First Written Submission, footnote 75.  WT/DS294/RW 
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 zeroing in original investigations and administra tive reviews), and the products from the countries 
concerned in the original dispute are still subject  to anti-dumping duties imposed pursuant to the use 
of a WTO-inconsistent methodology.721 
8.147  The European Communities also submits the United States has failed to revoke the original 
AD orders entirely , as it should have done as a result of the DSB recommendations and rulings, in 
cases where the original orders were revoked in fu ll or in part.  The European Communities alleges 
that in such cases, there is no longer, as from the date of revocation, any legal basis allowing the 
United States to collect duties on past entries or s ubmit future entries to a cash deposit rate based on 
zeroing and that, in such cases, the status of an y subsequent administrative review and methodology 
used to determine dumping margins is irrelevant.  As a result, the European Communities considers 
that any future liquidation of entries subject to a revoked order (including those revoked for reasons 
other than zeroing), or with respect to an expor ter excluded from the scope of the relevant order, 
would be illegal, since this would amount to taking a positive act, already found to be WTO 
inconsistent, after the expiry of the implementati on period, and since the original measure is void. 
8.148  The European Communities further argues that the 16 administrative reviews challenged in 
the original dispute have not yet been "superseded" by subsequent administrative reviews, since the 
effects of the originally-challenged administ rative reviews still continue today.  The 
European Communities argues that for the 16 admi nistrative reviews to be "superseded", the 
United States should have stopped them (by not co llecting duties calculated with "simple zeroing") 
and replaced them (by collecting the duties and establishing new cash deposits based on a methodology without zeroing).  The United States do es neither as (i) it still collects duties established 
in the administrative reviews contested in the original dispute;
722 and (ii) it has failed to recalculate the 
dumping margins without zeroing in all the administrativ e reviews covered in the original dispute and, 
as a result, still collects the duties and estab lishes new cash deposit rates based on zeroing.723  
8.149  The European Communities considers that for th e United States to comply with the DSB's 
recommendations and rulings immediately after th e end of the reasonable period of time, the 
United States should have refrained  from taking positive acts providing for the final payment of duties 
or retention of cash deposits based on zeroing with r espect to entries not finally liquidated before the 
end of the reasonable period, regardless of when those imports where made.  The European Communities focuses on the fact that lia bility to pay AD duties, which the European 
Communities considers to be the determination of th e final amount to be collected and, thus, the 
obligation to pay duties in that amount, is decided at a later stage than the time of importation under 
the US system.  While the potential liability for anti-dumping duties estimated as a result of the 
original anti-dumping order is created at the time of  importation, the specific amount of duties to be 
collected, and thus, the final anti-dumping liability (if any) is only established at a later stage, pursuant 
to administrative review proceedings.
724  The European Communities cannot understand why the 
                                                      
721 EC First Written Submission, paras. 84-85. 
722 The European Communities gives the ex ample of case 31 (Ball Bearings from the 
United Kingdom), in which the United States still issues assessment instructions and establishes cash deposits 
based on the last completed administrative review for NSK Bearing Europe ( i.e., the one challenged and found 
WTO-inconsistent in the origin al proceedings).  EC First Wr itten Submission, paras. 92-98. 
723 The European Communities also su bmits that the fact that the US  has not recalculated the dumping 
margins in the administrative reviews co ncerned also affects the extension of the original orders through sunset 
reviews (the US has relied on the dumping margins found in the administrative reviews covered by the original 
dispute, and therefore calculated on the basis of zero ing, in order to extend the original AD orders). 
724 EC Second Written Submission, paras. 69-74, EC Opening Statement, paras. 50-51.  Referring to 
the Panel Report in US – Shrimp (Thailand) , para. 7.106, the European Communities argues that the 
United States has admitted this feature of its duty assessment system.  The European Communities explains that even if products are, at the time of importation, po tentially liable for AD duties, the US system of duty 
assessment implies that such a respon sibility only materialises when the am ount of duties due for a particular WT/DS294/RW  
Page 150  
 
 United States would not, in a simple accounting exerci se, adjust its calculations so as to properly ( i.e., 
without zeroing) reflect the degree of dumping that occurred, if any, having a full opportunity to do so 
in subsequent reviews of the measures concerned or  in the appeals and protests filed by importers 
against them, and at least  with effect from the end of the reasonable period of time.
725 
8.150  The European Communities considers that the approach it advocates does not imply 
retrospective relief.726   It argues that it is possible for the Un ited States to take positive steps after the 
end of the reasonable period of time to comply with the DSB's recommendations and rulings in respect of entries which were made before then, w ithout this involving any retrospective relief.  The 
European Communities argues in th is respect that the United St ates has itself re cognized that 
Section 129 (c)(1) permits the USDOC to apply new,  WTO-consistent methodologies to entries made 
before  the date of implementation of a Section 129 determination.
727   
8.151  The European Communities rejects the US th eory that implementation obligations only 
extend to imports made after the end of the reasona ble period of time.  It considers that the US 
description of AD measures as "border measures" is  irrelevant since the US system of duty 
assessment operates on a retrospective basis – when th e product is imported no duty is collected at the 
border and, thus, AD proceedings do not hinder customs clearance728, and the final amount of duties 
to be collected in connection to the importation s ubject to the anti-dumping order is established when 
the product has been already introduced into the US market.729  The European Communities argues 
that the US theory on compliance is insufficient because it allows the United States to keep its WTO-
inconsistent measures effectively in place even afte r the end of the reasonable period of time.  The 
measures challenged in the original dispute are s till in place since, until the United States stops taking 
positive acts to enforce them, their effects persist even  after the end of the reasonable period of time.  
The European Communiti es also notes that the US – Shrimp (Thailand)  Panel already rejected the US 
argument that, if final liability only arises after the completion of an administrative review, there 
                                                                                                                                                                     
period is determined pursuant to ad ministrative review proceedings.  Bu t, the European Communities notes, 
even the amount established by the administrative review proceeding is not final and conclusive:  interested 
parties may challenge the results of administrative reviews in court.  Such an appeal may involve the suspension 
of the issuance of assessment instructions until there is a final ruling on the matter.  Once there is a final ruling 
from the courts, the USDOC sends assessment instructions to the USCBP, which sends liquidation instructions 
to the ports authorities.  However, importers may file a protest against those liquidations with the USCBP.  Only 
when there is a decision from the USCBP on such a protest does the liquidation becomes final and conclusive 
(i.e., according to the EC, only at that time is the final liabi lity of  the importer to pa y AD duties established).   
725 EC Second Written Submission, para. 76, EC Opening Statement, para. 51. 
726 The European Communities does not argue that the WTO dispute settlement system provides for 
retrospective relief.  EC Second Written Submission, para. 77.   
727 The European Communities cites to the arguments made by the United States to this effect in the 
context of the US – Section 129  dispute.  The European Communities also notes that the panel in that case found 
that "Section 129(c)(1) does not have the effect of precluding the application of methodologies developed in a Section 129 determination in administrative reviews of 'prior unliquidated entries'".  See EC Second Written 
Submission, para. 80, referring to Panel Report, US – Section 129 , citing para. 6.72.  The 
European Communities argues that it follows a similar approach in Council Regulation No 1515/2001 on measures which may be taken following an adopted DSB report on AD matters; that Regulation provides that 
"any measure taken under this Regulation will take ef fect from the date of their entry into force, unless 
otherwise specified , and therefore, do not provide any basis for the reimbursement of the duties collected prior 
to that date".  (emphasis added by the European Comm unities).  See EC Second Written Submission, para. 81. 
728 The European Communities cites to on Article 5.9 of the  Anti-Dumping Agreement .  EC Second 
Written Submission, para. 83. 
729 The European Communities also notes that in the anti-dumping context under US municipal law, the 
general rules for distinguishing prospective effect from retrospective effect turns on the date of liquidation, not 
the date of entry.  The European Co mmunities refers the Panel to the decision of the US Court of Appeals for 
the Federal Circuit in Parkdale International v. United States , 475 F.3d 1375, 1379 (Fed.  Cir.  2007) 
(9 February 2007).  EC Answer to Panel Question 33.    WT/DS294/RW 
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 would not be "final action" in the sense of Ar ticle 17.4 and thus, no WT O challenge would be 
possible until the completion of an administrative review.730  The European Communities also 
disagrees with the US assertion that taking the date of entry as the reference for compliance is in line 
with the prospective implementation of DSB recomme ndations and rulings, and is also the only relief 
available under prospective anti-dumping systems.  The European Communities maintains that in both 
prospective and retrospective systems, after the e nd of the reasonable period of time, no new measure 
(or omission) can be taken that is inconsistent with  the adopted DSB report, regardless of the date of 
entry covered by that measure.  The European Co mmunities asserts that it is not itself prevented from 
applying a WTO-consistent methodology to previous en tries pursuant to an act or decision taken after 
the end of the reasonable period of time, and indeed would do so, thereby complying with the DSB's 
recommendations and rulings in a prospective manner.731  
8.152  The European Communities submits that the application of the US theory as regards 
implementation would lead to absurd results, contra ry to Article 21 of the DSU, as the United States 
could continue collecting duties based on zeroing after the end of the reasonable period of time even if 
the original antidumping order has been revoked .  Moreover, the European Communities argues, the 
US interpretation would render its system of duty assessment untouchable , as a moving target that 
escapes AD disciplines, contrary to the purpose and objective of Article 21 of the DSU.  Each US 
administrative review would have to be the subject of a new panel request, and by the time the panel, 
Appellate Body and implementation procedure were completed, another administrative review would 
have superseded its results, meaning that a new panel would have to be  started against this subsequent 
review.  Finally, the European Communities submit s that even if complia nce is assessed under the 
United States' own theory, the United States has not complied with the DSB recommendations and 
rulings.  The United States continues to subject im ports made after 9 April 2007 in case 6 (Stainless 
Steel Wire Rod from Sweden) to the original AD duties based on model zeroing and continues to collect AD duties and to impose cash deposits on imports in case 31 (Ball Bearings from the United Kingdom) made by one company (NSK) at the rate based on simple zeroing in the 
administrative review challenged in the original dispute.
732 
8.153  The United States  considers that it has taken the necessary measures to comply with the 
recommendations and rulings of the DSB.  The Un ited States asserts that it has complied with the 
DSB's recommendations and rulings in two ways.  Fi rst, with respect to some of the anti-dumping 
measures challenged in the original dispute,  it revoked the anti-dumping duty orders, thereby 
removing the anti-dumping duty liability for entries o ccurring on or after the date of revocation.  
Second, the United States removed the border measur e, the cash deposit rate, with respect to entries 
occurring on or after the date of implementation.733 
8.154  With respect to the original investigations  at issue in the original dispute, the United States 
has recalculated the margins of dumping in these dete rminations and has, in some cases, revoked the 
anti-dumping order or excluded certain exporters. Ot her orders were revoked for reasons other than 
zeroing before the adoption by the DSB of its r ecommendations and rulings, and still other orders 
were revoked subsequently as a result of sunset review s.  Thus, with respect to the 15 determinations 
made in investigations that were at issue in the original dispute, 9 concern anti-dumping orders that 
                                                      
730 EC Opening Statement, para. 52 and footnote 28, referring to Panel Report, US – Shrimp 
(Thailand) , para. 7.121.   
731 The European Communities argues that in the European Communities' system, the date of entry is 
not the only parameter as regards prospective compliance, and the new WTO consistent measure may well apply 
to prospective entries.  Th e European Communities refers to the recent ruling of the European Cour t of Justice 
in Ikea Wholesale .  See European Communities Opening Statement, para. 56 
732 EC Second Written Submission, para. 67; EC Opening Statement, para. 48. 
733 US Second Written Submission, para. 37. WT/DS294/RW  
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 are now revoked.  For all of these, no anti-dumping duties will be assessed on entries made after the 
effective date of the revocation.   
8.155  With respect to the 16 administrative reviews
 at issue in the original dispute: 
(a) In some instances, the United States has revoked the AD order giving rise to the 
determinations challenged by the European Communities .  Under US law, the 
United States no longer has the authority to collect cash deposits, or assess anti-
dumping duties, on products subject to  a revoked anti-dumping order which are 
imported on or after the date of revocation.  This is the situation with respect to 4 of 
the 16 determinations challenged by th e European Communities in which the AD 
orders have been revoked in whole or  with respect to certain companies.734  T h e  
United States considers that the elimina tion of these orders has brought it into 
compliance with the recommendations a nd rulings related to those orders. 
(b) With respect to the remaining reviews,  the United States considers that it has 
implemented the recommendations and rulings because each of those reviews has been superseded by subsequent administrative reviews.  The cash deposit rate 
established in the challenged determinati on, which is the only aspect of the 
administrative review that could, absent US compliance, have continued beyond the expiration of the reasonable period of time, is  no longer in effect; to the extent that a 
cash deposit rate is currently in effect with  respect to the same product from the same 
EU Member State, it is the result of a separate determination of dumping made in a separate administrative review examining distinct facts and different transactions 
during a subsequent period of time.
735  The United States considers that since the 
originally challenged reviews were supersed ed by the date of the EC Article 21.5 
panel request (and before the expiry of the reasonable period of time), no further 
entries are subject to cash deposit rates established in the administrative reviews challenged in the original dispute.
736  
8.156  The United States considers that for the pur poses of assessing compliance with rulings and 
recommendations of the DSB relating to duties, one has to examine the treatment accorded to goods 
entered on or after the expiration of the reasonable period of time.  The United States considers that, 
as a result, it has no implementation obligation with respect to entries made before 9 April 2007.  The United States argues that the European Co mmunities has long held the same position
737, and that this 
follows logically from the fact that the WTO dispute settlement provides prospective, not 
                                                      
734 US First Written Submission, paras. 93-95, referring to case 16 (Industrial Nitrocellulose from 
France,  revocation effective 1 Augu st 2003); case 17 (Industrial Nitrocellulose from the United Kingdom, 
revocation effective 1 July 2003); case 19 (Pasta from Italy, revoked for Ferrara effective 9 February 2005, and for Pallante effective 29 November 2005 ); and cases 25/26 (Stainless Steel Sh eet and Strip in Coils from France, 
revocation effective 27 July 2004). 
735 See the chart in Exhibit US-17 for a list of the subsequent reviews that the United States submits 
superseded each of the administrativ e reviews challenged in  the original dispute.  See US First Written 
Submission, footnote 100.  The United States, however, admits that the cash deposit rate established in the 
administrative review of Ball Bearings from the United Kingdom (case 31), which was found to be WTO-inconsistent in the original dispute, still remains in place. 
736 US First Written Submission, paras. 96-97. 
737 The United States notes that the European Communities argued along these lines in the Section 129 
dispute (siding with the United States and opposing Canada's arguments) and that the European Communities 
has taken the same position in the preamble to its Regulation on the Measures that May be Taken by the 
Community Following a Report Adopted by the WTO Dispute Settlement Body Concerning Anti-Dumping and Anti-Subsidy Matters, and took a similar view when it implemented the DSB recommendations and rulings in 
EC – Chicken Cuts .  US First Written Submission, paras.  98-99, Exhibits US-18 and US-19.  WT/DS294/RW 
 Page 153 
 
 
 retrospective relief.  The United States also cont ends, in this respect, that in a WTO dispute 
challenging an AD or CVD measure, the me asure in question is a "border measure".738   Accordingly, 
eliminating a WTO-inconsistent anti-dumping or CVD measure prospectively at the border, including 
where an administrative review is superseded by a subsequent one, constitutes "withdrawal" of the 
measure within the meaning of Article 3.7 DSU.   
8.157  The United States submits that relief in the WTO dispute settlement system is prospective in 
nature, with the result that in the context of an ti-dumping duties, the recommendations and rulings of 
the DSB do not serve as the basis for the reimburse ment of duties – even EC law recognizes this 
principle.739  The United States argues that the texts of the GATT 1994 and the Anti-Dumping 
Agreement  confirm that it is the legal regime in exis tence at the time of importation that determines 
whether the import is liable for the payment of AD duties, and that determining whether relief is 
"prospective" or "retroactive" can only be dete rmined by reference to the date of entry.740  In this 
regard, the US system is no different from a pr ospective duty system and would not be made 
"untouchable" or a "moving target" under the US inte rpretation.  The United States asserts that the 
result it advocates is consistent with the effect that a finding of inconsistency would have on an anti-
dumping measure in a prospective anti-dumping system :  if an anti-dumping measure is found to be 
inconsistent with the Anti-Dumping Agreement , the Member's obligation is merely to modify the 
measure as it applies at the border to imports occu rring on or after the date of implementation.  The 
Member changes the amount of anti-dumping duti es to be collected on importations occurring after 
the end of the reasonable period of time, but need not remedy the effects of the measure on imports 
that occurred prior to the date of implementation.   This is the system to which the WTO Members 
agreed, and it applies to all Members equally.  Th e EC theory of implementation would discriminate 
against Members like the United States for having a retrospective duty assessment system.  If liability 
is the relevant point for assessing whether relief must  be provided, then Members with prospective 
systems will have no implementation obligations in resp ect of entries made prior to the expiry of the 
reasonable period of time, but Members with retrosp ective systems will have such obligations in the 
event that the final liability is calculated after the expiry of the reasonable period of time.741  T h e  
United States also submits that th e European Communities seems to have changed its theory during 
the course of the proceeding, first arguing that the determination of the fina l liability after importation 
is particular to retrospective systems, and later im plying that it is equally applicable to prospective 
systems.  The United States posits that perhap s the new theory defended by the European 
Communities reflects its acknowledgement of the fact th at, otherwise, using final liability as the basis 
for establishing implementation would put retrospec tive systems at a disadvantage.  However the 
European Communities' sudden change of position is not supported by the text of Articles 9.3.1 and 
9.3.2, the report of the original panel, or the European Communities' own prior submissions.742 
                                                      
738 See US First Written Submission paras. 101-10 2, footnote 107. See also US Second Written 
Submission, para. 38; the United States concludes that liability for antidumping and countervailing duties attaches at the time of entry. 
739 US Answer to Panel Question 4, US First Written Submission, paras. 99-101, US Closing 
Statement, para. 4. 
740 US Second Written Submission, paras. 38 ff. 
741 US Closing Statement, para. 2. 
742 US Closing Statement, para. 3.  In addition, the United States submits that the Ikea case does not 
stand for the proposition that the European Communities provides retrospective relief (refund of duties) in 
connection with its implementation of DSB recommendations  and rulings; in that case, the European Court of 
Justice expressly rejected th e notion of refunding the duties on that basis.  Instead, the Court found that that 
zeroing was inconsistent with the European Commun ities' Basic anti-dumping Regulation and was a "manifest 
error of assessment with regard to Community law"; it is  on that basis (inconsistency with Community law), not 
inconsistency with the Anti-Dumping Agreement , that the Court ordered the repayment of duties.  Thus, while 
the European Communities may in some circumstances prov ide refunds under its municipal law, that does not 
mean that there is any WTO obligation to do so.  US Closing Statement, para. 4. WT/DS294/RW  
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 8.158  Finally, the United States submits that the EC  arguments raise a fundamental problem.  If it 
were true  that, as alleged by the European Co mmunities, liability for AD duties only arose after the 
completion of an administrative review, this w ould mean that whenever the USDOC issued a 
determination in an AD investigation, there would be no "final action" as required by Article 17.4 of 
Anti-Dumping Agreement  to challenge.  As a consequence,  US determinations could only be 
challenged after an administrative review was completed. 
(b) Main arguments of the third parties 
8.159  India  disagrees with the argument of the Un ited States that it has implemented the 
recommendations and rulings because each of those revi ews has been superseded by determinations in 
subsequent administrative reviews.  It submits th at even if the original measures may have been 
reviewed on different occasions, these are continuati ons of original measures, the results of the 
previous review still affect interested par ties and subsequent, equally critical procedures.
743   
8.160  Japan  disagrees with the US argument that no fu rther action is required with respect to 
administrative reviews because the reviews at issue in  the original dispute have been superseded by 
subsequent reviews.  Japan notes that, with respect to both of the purposes of a review (establishing a 
cash deposit rate for future entries and an importe r-specific assessment rate to determine duties on 
past entries), a review continues to operate, and produce legal effects, for some uncertain period of 
time after the completion of the review.744   In Japan's view, the decisive issue in deciding whether the 
United States must modify the WTO-inconsistent periodic reviews is whether these reviews continue 
to produce legal effects after the end of the reasonabl e period of time.  If a review continues to operate 
after that date, it must be modified to ensure that  it is applied in the future in a WTO-consistent 
fashion.745  Bringing a measure into conformity with WTO law under Articles 19.1 and 21.3 of the 
DSU requires an implementing Member to take action to withdraw , modify or replace  the WTO-
inconsistent measures before the e nd of the reasonable period of time.746  In this dispute, the importer-
specific assessment rates in the c ontested periodic reviews have not expired, been revoked, modified 
or replaced in a manner that makes them WTO-consiste nt and the rates continue to be inflated as a 
result of the application of simple zeroing.  Thus, the amount of duties yet to be collected on the basis 
of these rates continues to exceed the properly de termined margin of dumping, in violation of 
Article 9.3 Anti-Dumping Agreement  and Article VI:2 GATT 1994.  Jap an agrees with the European 
Communities that where the United States takes act ion, through USDOC instructions to the USCBP 
or USCBP payment notices, to collect duties after the end of the reasonable period of time pursuant to the assessment rate of a WTO-inconsistent review, it must bring the measure into conformity before 
proceeding to duty collection as in that event, the re view continues to be operational after the end of 
the reasonable period of time because it provides the United States with a legal basis for the actions taken by the USDOC and USCBP after that date to collect duties.
747  Japan considers that there is 
                                                      
743 India's Opening Statement, para. 3. 
744 Japan notes that, in the case of the cash deposit rate, it continues to operate until a further periodic 
review occurs, which can be at least 12 months and, in some circumstances, much longer.  In the case of the importer-specific assessment rate, it continues to be legally operational until definitive duties are collected on 
the basis of that rate, which can be a period of several years after the review is completed.  See Japan's Third 
Party Submission, paras. 78-82.   
745 Japan's Opening Statement, para. 38. 
746 Japan's Third Party Submission, paras. 84-93.  In Japan view, inaction  by a Member to bring its 
measure into conformity is justified only where the measure at issue is no longer legally  operational after the 
end of the implementation period . 
747 Japan's Third Party Submission, paras. 94-100; Japan's Opening Statement, paras. 38-42.  Japan also 
notes a contrast between the action taken by the USDOC in cases where the final results of a periodic review are contrary to US law, on the one hand, and to WTO law, on the other hand:  if the final results of a periodic 
review are found to be inconsistent with US law, they must be revised before  the USDOC and USCBP takes any  WT/DS294/RW 
 Page 155 
 
 
 nothing retrospective about the interpretation that it, or the European Communities, advances.  The 
key date for judging the prospective character of a remedy is the end of the reasonable period of time 
and any actions taken by the implementing Member afte r that date pursuant to the measure at issue are 
prospective in character when viewed from the pe rspective of the end of the reasonable period of 
time; this applies to USDOC instructions or US CBP payment notices issued after the end of the 
reasonable period of time.  The date of importa tion is not pertinent in judging the prospective 
character of the US actions after the end of the reasonable period of time.748  Japan submits in this 
respect that the covered agreements impose obligations on a Member's conduct  and that, at the time of 
entry, the United States does not take action to collect definitive duties; that action is taken subsequently  pursuant to a periodic review.
749  If the date of entry, and not the end of the reasonable 
period of time, were decisive, WTO remedies could never  discipline any US actions to collect 
definitive anti-dumping duties, even actions occurri ng long after the end of the reasonable period of 
time pursuant to a WTO-inconsistent review.  The US argument that its implementation obligations 
apply solely to new entries that occur on or af ter the end of the RPT produces absurd consequences 
that nullify the disciplines in Article 9.3 of the Anti-Dumping Agreement .750  The United States has 
omitted to take any action to bring the periodic revi ews into conformity with WTO law, and ensure 
that the importer-specific assessment rate provides a WTO-consistent basis for duty collection after 
the end of the reasonable period of time.751 
8.161  Japan also disagrees with the US argument under Article 17.4 of the Anti-Dumping 
Agreement .  The fact that final liability is determined in a periodic review does not mean that the 
measures resulting from other types of anti-dumpi ng proceedings – investigations, new shipper 
reviews, changed circumstances reviews and sunset reviews – are not "final action" for purposes of 
Article 17.4.  The panel in US – 1916 Act (Japan) explained that this provision addresses challenges 
to "actions taken by anti-dumping authorities", as opposed to laws, regulations and administrative 
procedures covered by Article 18.4 of the Agreemen t, which may also be challenged even though not 
expressly referenced in Article 17.4.  Further, the US – Shrimp (Thailand)  panel found that 
Article 17.4 does not require that definitive anti- dumping duties must have been levied before 
consultations may be requested.  Thus, the words "f inal action" do not limit the measures that may be 
challenged to those collecting the definitive amount of anti-dumping duties determined to be due in a 
periodic review; instead, the panel found that "final  action" refers to measures whose purpose  is "to 
levy definitive anti-dumping duties".752  
8.162  Korea  considers that, regarding the 16 administrative reviews challenged in the original 
dispute, the United States has effectively ignored the recommendations of the Appellate Body.  In 
Korea's view, the US argument that each administrative  review is superseded by a subsequent review, 
and that it is not required to do anything to impl ement since the administrative reviews challenged in 
the original dispute do not exist anymore, comple tely misconstrues the operating mechanism of an 
administrative review and seriously threatens to  undermine the basic purpose of a WTO dispute 
                                                                                                                                                                     
further action to collect duties on the basis of the periodic review.  Japan refers to 19 U.S.C.  § 1516a(c)(3).  See 
Japan's Third Party Submission, paras. 99-100. 
748 Japan also submits that in the US – Section 129  dispute, the United States admitted that under US 
law, a mechanism exists for the USDOC to assess in WT O-consistent fashion, on the basis of adverse DSU 
recommendations and rulings, the amount of definitive duties due on entries that occurred  prior to the expiry of 
the reasonable period of time that were not liquidated by that date.  See Japan's Third Party Submission, note 77. 
749 In response to the US arguments, Japan argues that the "legal regime that applies to an import at the 
time of importation is merely provisional, as at that time, the importing Member does not definitively establish any right to collect a specific amount of anti-dumping duties; instead, when a periodic review occurs, that right 
is established much later in the procedure under Article 9.3."  Japan's Opening Statement, paras. 22-25. 
750 Japan's Third Party Submission, paras. 101-111, Japan's Opening Statement, paras. 33-37.   
751 Japan's Third Party Submission, para. 111. 
752 Japan's Answer to Panel Question 21 to the third parties. WT/DS294/RW  
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 settlement procedure.
753  In Korea's view, the completion of a new administrative review does not 
mean that the previous review was terminated:  unlike other instances where a measure is terminated, 
an administrative review does not simply disappear when a new, subsequent review is under way or 
completed.  The results of the previous review s till affect interested parties and subsequent, equally 
critical, procedures.  An administrative review found to be WTO-inconsistent thus requires adequate 
implementation irrespective of the existence or completion of a subsequent review or reviews.  Korea 
considers that, in fact, as a measure, an admini strative review can only be terminated when the 
underlying order is terminated, either through a sun set review, a changed circumstances review or for 
some other reason.754  Furthermore, the US position would have as a consequence that no Member 
could successfully challenge an administrative revi ew or, even if the complaining Member were 
successful, it could not hope for an effective remedy.  With respect to the US argument that the effects 
of the Section 129 determinations apply only to en tries made on or after April 9, 2007, Korea submits 
that what was challenged and found to be WTO-inc onsistent in the original dispute was a measure 
called "zeroing."  In Koreas' view, the entry date of the product should not matter; what matters is 
whether a challenged measure which was found to be WTO-inconsistent is still maintained after the 
reasonable period of time has lapsed.  In this case, the USDOC continues to apply the zeroing 
methodology for certain original investigations and ad ministrative reviews even after that date.  This 
should be dispositive and the Panel should find for the European Communities on this issue.755   
Furthermore, what the European Communities seeks in this proceeding is a prospective remedy.  All 
the European Communities points out is that the United States continues to fail to eliminate the 
zeroing practice at issue after the end of the reasonabl e period of time.  This constitutes a request for a 
prospective remedy.756  
8.163  Norway  considers that the US argument that unde r the EC theory of implementation, there 
would be no "final action" to ch allenge under Article 17.4 of the Anti-Dumping Agreement  until an 
administrative review is concluded is based on a mis understanding of Article 17.4.  "Final action" in 
that Article is used to distinguish provisional me asures under Article 7.  Thus, the argument of the 
United States is irrelevant.757  
(c) Evaluation by the Panel  
(i) Temporal aspect of the obligation to impl ement DSB recommendations and rulings with 
respect to AD measures in the case of a Memb er operating a retrospective duty assessment 
system  
8.164  We first turn our attention to the question of the temporal aspect of a Member's obligation to 
implement DSB recommendations and rulings conc erning anti-dumping measures where the Member 
concerned operates a retrospective anti-dumping duty assessment system.758  
                                                      
753 Korea's Third Party Submission, paras. 5-6, Korea's Opening Statement, para. 4. 
754 Korea's Third Party Submission, para. 7-10, Korea's Opening Statement, paras. 5-6. 
755 Korea's Third Party Submission, para. 14-20, Korea's Opening Statement, paras. 7-11. 
756 Korea's Opening Statement, para. 13. 
757 Norway's Answers to Panel Questions 20 and 21 to the third parties.   
758 No WTO panel has addressed this precise question before, although the issue arose in US – Section 
129(c)(1) URAA .  In that dispute, Canada challenged the WTO-consistency of Section 129(c)(1) of the US 
Uruguay Round Agreements Act, arguing that it had the effect of requiring the USDOC to apply Section 129 
determinations only with respect to imports entered on or after the date of effectiveness of a Section 129 determination, and not to prior unliquidated entries.  Th e panel in that dispute, however, considered that it 
needed not decide that precise question, as it found that Canada had failed to establish that Section 129(c)(1) 
actually required the United States to act in the manner alleged by Canada.  See Panel Report, United States – 
Section 129(c)(1) of the Uruguay Round Agreements Act  ("US – Section 129(c)(1) URAA "), WT/DS221/R, 
adopted 30 August 2002, DSR 2002:VII, 2581, para. 6.77.  The United States notes that the EC arguments  WT/DS294/RW 
 Page 157 
 
 
 8.165  The disagreement between the parties concerns the relevant date as of which a Member's 
obligation to implement DSB recommendations and rulings attaches to particular decisions and 
actions of that Member.  The United States consid ers that its implementation obligation in an anti-
dumping dispute is dependent on the date of importation ("entry") of products subject to the AD duty, 
and only extends to imports made after the e xpiry of the reasonable period of time.  The 
European Communities, as well as Korea and Japan, cons ider the relevant date to be that of the action 
taken by the responding Member.  For these Members, as of the expiry of the reasonable period of time, the implementing Member cannot take any positive act, be it a dumping determination, e.g. in an 
administrative review or some other action, e.g., an instruction to collect anti-dumping duties, to 
provide for the final payment of duties or retention of cash deposits calculated inconsistently with the 
Anti-Dumping Agreement  with respect to entries not finally liquidated as of the expiry of the 
reasonable period of time.
759  In practical terms, the disagreement between the parties revolves around 
two questions:  (i) whether administrative review determinations made after the expiry of the 
reasonable period of time, but concerning imports made  before that date, must be consistent with the 
DSB recommendations and rulings, and (ii) whether actions after the end of the reasonable period of 
time to liquidate entries and definitively collect dutie s with respect to imports made before that date 
must be consistent with the DSB's recommendations  and rulings, even though the calculation of the 
amount of duties owing, in an administrative revi ew, may have been made before the end of the 
reasonable period of time.  
8.166  Thus, the disagreement between the parties rela tes only to the "assessment" and collection of 
anti-dumping duties.  We do not understand the parties to be in disagreement that a cash deposit rate 
established in an administrative review successfully  challenged in the original dispute and which 
continues to be in effect after the end of the reasonable period of time is subject to the Member's obligation to implement, i.e., that any such cash deposit rate must be consistent with the Member's 
obligations under the Agreement, that is, it cannot  derive from a margin of dumping calculation in 
which zeroing was used. 
8.167  Neither party argues that the obligation to implement DSB recommendations and rulings 
should have retrospective effects.  Both parties c onsider that the position they advocate is consistent 
with the principle that the DSU only provides for pr ospective remedies.  Rather, the parties disagree 
on what a prospective implementation of DSB r ecommendations and rulings in an anti-dumping 
dispute entails in the context of a Member ope rating a retrospective duty assessment system.  The 
United States in particular considers that the position advocated by the European Communities would 
amount to the imposition of a retrospective remedy , contrary to the dispositions of the DSU. 
8.168  We do not consider that, to resolve the questi on before us, we need to address whether the 
DSU provides only for prospective, as opposed to retrospective, remedies, as the parties do not 
disagree on this question.  We simply note that th ere is support in previous panel and Appellate Body 
decisions for the proposition that the DS U only provides for prospective remedies
760 and, take that 
                                                                                                                                                                     
before us are at odds with the position it defended as a third party before the US – Section 129(c)(1) URAA 
panel.  See US First Written Submission, para. 98 and Exhibit US-18. 
759 As explained in the summary of its arguments, the European Communities considers that where 
liquidation is delayed by litigation in the US courts, any ac tion to collect or liquidate duties after the expiry of 
the reasonable period of time is likewise subject to  the US obligation to act in conformity with the Anti-
Dumping Agreement  and the DSB's recommendations and rulings. 
760 Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , footnote 494; Panel Report, 
United States – Countervailing Measures Concerning Certain Products from the European Communities ("US – 
Countervailing Measures on Certain EC Products "), WT/DS212/R, adopted 8 January 2003, as modified by 
Appellate Body Report, WT/DS212/AB/R, DSR 2003:I, 73, para. 6.106; Panel Report, European Communities 
– Regime for the Importation, Sale and Distribution of Bananas – Recourse to Article 21.5 of the DSU by Ecuador ("EC – Bananas III (Article 21.5 – Ecuador)" ), WT/DS27/RW/ECU, adopted 6 May 1999, DSR 
1999:II, 803, para. 6.105. WT/DS294/RW  
Page 158  
 
 proposition as the starting point of our analysis.  An d while we need not definitively decide what is 
understood by a "prospective remedy" under the DSU ( a fortiori  since the concept is not reflected 
expressis verbis  in the text of the DSU),
761 we consider that the concept of non-retroactivity in 
international law recognized in Article 28 of the Vienna Convention on the Law of Treaties  sheds 
some light on the application of such a principle of "non-retroactivity".  Article 28 of the Vienna 
Convention provides as follows:   
"Article 28:  Non-retroactivity of treaties 
Unless a different intention appears from the treaty or is otherwise established, its 
provisions do not bind a party in relation to any act or fact which took place or any situation which ceased to exist before the da te of the entry into force of the treaty 
with respect to that party."
762 
8.169  By analogy, this would suggest that a retrospec tive remedy would consist in the application of 
the obligation to bring measures into conformity wh ere those measures relate to an act or a fact 
"which took place" or a "situation which ceased to exis t" before the date of expiry of the reasonable 
period of time.  The same concept would be captured in the idea of not requiring a Member to "undo" 
past acts.763  Of course, if the act (or measure) continu es to produce effects, it may have to be 
amended. 
Whether the US obligation to implement exte nds to administrative reviews covering imports 
made before the end of the reasonable period of time  
8.170  As a starting point to our analysis, we re call that the covered agreements, and the Anti-
Dumping Agreement in particular, discipline measures adopted by a Member or actions taken by such 
Member.  In the case of a dispute under the Anti-Dumping Agreement , those actions and measures 
                                                      
761 That said, we do consider that the principle finds expression in, e.g., Article 3.7 of the DSU ("… the 
first objective of the dispute settlement is usually to s ecure the withdrawal of the measures concerned if these 
are found to be inconsistent with the provisions of any of the covered agreements") and 19 of the DSU ("Where 
a panel or the Appellate Body concludes that a measur e is inconsistent with a covered agreement, it shall 
recommend that the Member concerned  bring the m easure into conformity with that agreement.") 
762 We note that the United States does not consider Ar ticle 28 to be relevant to the question of what a 
"prospective remedy" means.  See US Answer to Panel Question 32.  Japan and Norway are of a similar view.  
Japan's Answers to Panel Questions 15, 17 and 18 to th e third parties.  Norway's Answer to Panel Question 18 
to the third parties.  The European Communities indicates that:  
"although [Article 28] may provide some guidance in respect of the meaning of the concept of retroactivity in public international law, it addres ses the temporal applica tion of treaties, not of 
DSB's recommendations... In any event, any contextual support that might be gleaned from 
Article 28 of the VCLT would support the European Communities, insofar as that provisions makes it clear that any acts or omission post-da ting the entry into fo rce of the new treaty 
would be governed by the terms of that treaty".  
 European Communities Answer to Panel Question 32.  Korea considers that the end of the reasonable 
period of time could be considered to be similar to the entry into force of a treaty.   Korea's Answer to Panel 
Question 18 to the third parties.  Like the Brazil – Aircraft (Article 21.5 – Canada)  panel, we consider that 
"[a]lthough Article 28 addresses the temporal applica tion of treaties, and not of DSB recommendations, it 
nevertheless provides some guidance in respect of the meaning of the concept of retroactivity in public 
international law".  Panel Report, Brazil – Export Financing Programme for Aircraft – Recourse by Canada to 
Article 21.5 of the DSU  ("Brazil – Aircraft (Article 21.5 – Canada) ") WT/DS46/RW, adopted 4 August 2000, 
as modified by Appellate Body Report, WT/DS46/AB/RW, DSR 2000:IX, 4093, footnote 22.  In any case, our 
findings do not depend on the precise interpretation of the concept of non-retroactive remedies. 
763 See also Panel Report, US – Upland Cotton (Article 21.5 – Brazil)  para 14.38 (indicating that 
requiring a Member to take action with respect to acts which took place before the end of the reasonable period 
of time would constitute a retroactive remedy).  WT/DS294/RW 
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 necessarily concern the imposition of anti-dump ing measures against imports from another 
Member.764  Thus, one would normally assume that a Me mber is required to bring its actions into 
conformity with the Anti-Dumping Agreement  by the end of the reasonable period of time, at the 
latest, which would suggest that any determination, e.g.  in an assessment review, made after the end 
of the reasonable period of time must be consistent with the Anti-Dumping Agreement . 
8.171  The United States submits that anti-dumping du ties (and countervailing duties) are different 
in this respect because they are border measures, i.e., they are applied at the national border to 
counteract the dumping or subsidization of goods.765  For the United States, eliminating a WTO-
inconsistent anti-dumping or counte rvailing duty measure prospectivel y at the border, including by 
superseding one measure with another, constitutes "w ithdrawal" of the measure within the meaning of 
Article 3.7 of the DSU.  From this fact (and from various provisions of the Anti-Dumping Agreement  
which we discuss below), the United States draws the inference that, for anti-dumping duties, the 
relevant legal regime is that which applies to the products and is in existence at the time of 
importation, and that it is this legal regime that  determines whether an import is "liable" for anti-
dumping duties.  We understand the United States to ar gue that since the legal regime applicable to 
the subject imports was determined at the time of  their importation, a Member is not required to 
change that legal regime as a result of its oblig ation to implement the DSB's recommendations and 
rulings and that requiring it to do so would amount to a retrospective remedy.   
8.172  The United States also invokes a number of provisions of the Anti-Dumping Agreement and 
of the GATT 1994 in support of its argument that th e relevant time to dete rmine implementation is 
that of the importation.  First, the United States brings to our attention the use of the term "levy" in 
Article VI:2 of the GATT 1994; it also submits that  Article VI:6(a) GATT 1994 "reflects the fact that 
the levying of a duty generally takes place in conne ction with 'the importati on of any product", but 
notes that the Ad Note  to paragraphs 2 and 3 of Article VI clarifies that notwithstanding that duties are 
generally levied at the time of importation, Members may instead require a cash deposit or other security, in lieu of the duty pend ing final determination of the re levant information.  Thus, the 
United States argues, the cash deposits serve as a plac e-holder for the liability which is incurred at the 
time of entry.  Second, the United States su bmits that a number of provisions of the Anti-Dumping 
Agreement  demonstrate that whether relief is "prospectiv e" or "retrospective" can only be determined 
by reference to the date of importation.  Th e United States refers to Article 10.1 of the Anti-Dumping 
Agreement , which states that provisional measures and anti-dumping duties sha ll only be applied to 
"products which enter for consumption after the ti me" when the provisional or final determination 
enters into force, subject to certain exceptions, a nd notes that this limitation applies even though the 
dumping activity that forms the basis for the dumpi ng and injury findings necessarily occurs prior to 
the time that the determination enters into force.  Similarly, the United States submits, Article 8.6 of 
the Anti-Dumping Agreement  states that if an exporter violates an undertaking, duties may be assessed 
on products "entered for consumption not more than 90 days before the application of ... provisional 
measures, except that any such retroactive assessmen t shall not apply to imports entered before the 
violation of the undertaking."  Finally, the United States notes that Article 10.6 states that when certain criteria are met, "[a] definitive anti- dumping duty may be levied  on products which were 
entered for consumption not more than 90 days pr ior to the date of application of provisional 
measures" and that under Article 10.8, "[n]o duti es shall be levied retroactively pursuant to 
paragraph 6 on products en tered for consumption prior to the date  of initiation of the investigation." 
The United States reads these provision s as indicating that, whenever the Anti-Dumping Agreement  
                                                     
 
764 Appellate Body Report, Guatemala – Anti-Dumping Investigation Regarding Portland Cement from 
Mexico  ("Guatemala – Cement I "), WT/DS60/AB/R, adopted 25 November 1998, DSR 1998:IX, 3767, para. 79. 
765 US First Written Submission, para. 102; US Second Written Submission, para. 37.   WT/DS294/RW  
Page 160  
 
 specifies an applicable date for an action of for anti-dumping duty liability, the scope of applicability 
is based on entries occurring on or after that date.
766  
8.173  In our view, the US arguments disregard the f undamental fact that, in a retrospective duty 
assessment system, the duties appli cable to specific imports of a product are not determined at the 
time of entry, but rather, are determined at a later date.  In a retrospective system, the actual amount of 
any anti-dumping duty liability is only determined at a later point in time, wh en an assessment review 
is conducted, or when it has been determined that such a review will not be conducted, and therefore, 
that the duties will be assessed at the cash depos it rate that applied at the time of importation.767  
Article 9.3.1 indicates that, in a retrospective duty assessment system, the " determination of the final  
[anti-dumping] liability " is made in the context of an assessment review, retrospectively .768  
Article 9.3 and paragraph 1 thereof thus make it cl ear that, in a retrospective assessment system, the 
final anti-dumping duty liability determination is only made at the time of the duty assessment 
proceeding provided for under Article 9.3.1.   
8.174  In our view, it follows that the relevant da te for implementation of DSB recommendations 
and rulings concerning anti-dumping duties by a Member operating a retrospective duty assessment 
system is the date of the final determination of liability for anti-dumping duties, i.e., the date of the 
final determination in the administrative review pr oceeding or the date on which the right to request 
such a review has lapsed.769  As a result, any definitive duty determination made after the end of the 
reasonable period of time must be cons istent with the provisions of the Anti-Dumping Agreement  and 
with the DSB's recommendations and rulings.  To c onclude otherwise would mean that a Member is 
effectively allowed, after the end of the reasonabl e period of time, to determine the amount of anti-
dumping duties with respect to certain imports in contravention of the provisions of the Anti-Dumping 
Agreement .  We find no support in either the Anti-Dumping Agreement  or the DSU for such a 
proposition. 
8.175  Our conclusion does not imply the imposition of a retrospective remedy; on the contrary, the 
obligation to cease performing WTO-inconsistent acts as  of the end of the reasonable of time is, in our 
view, eminently prospective in nature.770  Further, we recall that in the instant case, the 
recommendations and rulings of the DSB in the orig inal dispute concerned the calculation of margins 
of dumping in the original investigations and ad ministrative reviews challenged.  The panel and 
Appellate Body found the use of zeroing in the cal culation of margins of dumping in those measures 
                                                      
766 US Second Written Submission, paras. 41-43. 
767 In the US system, this happens when the time to request an administrative review has lapsed.  The 
United States does not contest this basic feature of its du ty assessment system.  In f act, the United States argues 
that because of this unique feature, and because the implementation obligations must be similar for Members 
operating a retrospective system and a definitive system, the position defended by the European Communities 
and Japan would impose greater obligations on retrospective systems than prospective systems, with no textual justification for the disparate treatment.  See US Answer to Panel Questions 28 and 40.   
768 See also footnote 22 to the Anti-Dumping Agreement :   
"When the amount of the anti-dumping duty is assessed on a retrospective basis, a finding in the most recent assessment proceedi ng under subparagraph  3.1 of Article 9 that no duty is to 
be levied shall not by itself require the authorities to terminate the definitive duty." 
769 Where an administrative review pr oceeding is initiated but later rescinded, the relevant date is that 
of the rescission of the proceeding.  Further, we note that by "final determination" we do not refer to the date on 
which the "Final Results" are signed by the relevant USDOC official, but rather, the effective date (normally the 
date of publication in the Federal Register) of th e determination of final anti-dumping liability in the 
administrative review process ( i.e., the date of publication of the final results of the administrative review or, 
where applicable, the date of publication of th e amended results of the administrative review). 
770 Panel Report, Brazil – Aircraft (Article 21.5 – Canada) , para. 6.15; Panel Report, India – Measures 
Affecting the Automotive Sector ("India – Autos "), WT/DS146/R, WT/DS175/R and Corr.1, adopted 
5 April 2002, DSR 2002:V, 1827, para. 6.58.    WT/DS294/RW 
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 to be inconsistent with Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement and Article VI:2 of the 
GATT 1994.  Our finding has essentially the effect of requiring the United States to cease using 
zeroing in the calculation of margins of dumping in th e measures that were at issue in the original 
dispute and the other, subsequent , determinations which we have determined fall under our terms of 
reference, where the margin of dumping, and the anti-dumping duty liability is determined after the 
end of the reasonable period of time.771  To implement the DSB's recommendations and rulings, the 
United States was at least obligated, after 9 April 2007, to cease using the "zeroing" methodology in 
the calculation of anti-dumping duties, not only with respect to imports entered after the end of the reasonable period of time, but also in the context of decisions involving the calculation of dumping margins made after the end of the reasonable period of time with respect to imports entered before 
that date.  The fact that the imports concerned pr e-date the expiry of the reasonable period of time 
does not excuse the United St ates acting inconsistently with the provisions of the Anti-Dumping 
Agreement  after the end of the reasonable period of time.   
8.176  As a result, we disagree with the US view that it is the legal regime in existence at the time of 
importation that determines whether an import is " liable" for anti-dumping duties.  The legal regime 
that was in place at the time of the importation of th e products at issue in that review is not dispositive 
as to whether duties are due, and if so, in what am ount.  The legal regime in place at the time of 
importation is, at most, a provisional one as concerns the final anti-dumping duty liability incurred by the imports.  As a result, our conclusion does not im ply that the United States is required to "undo" or 
modify a legal situation which occurred, or was fixed, in the past.   
8.177  Our reasoning above is consistent with views e xpressed by the panels and the Appellate Body 
in US – Shrimp (Thailand)  and US – Customs Bond Directive .  These disputes concerned the 
consistency with the Anti-Dumping Agreement  and the Ad Note  to paragraphs 2 and 3 of Article VI of 
GATT 1994
772 of additional security collected with respect to certain imports subject to an AD order 
and consequent cash deposits. The panels found th at such additional security was subject to the 
temporal  scope of the Ad Note .773   
8.178  On appeal, the Appellate Body upheld the pa nels' ultimate findings with respect to the 
temporal scope of the Ad Note , finding that the Ad Note  authorizes the imposition of security 
requirements during the period following the imposition of a US anti-dumping order.774  While the 
Appellate Body did not share the panels' reasoning on th e issue of the legal status of cash deposits as a 
security775, it agreed with the panels that, under the US duty assessment system, the final 
                                                      
771 We recall our finding, in section VIII.D.2(c)(iv)  above, that the dumping margin calculation in 
subsequent administrative review determinations is closely connected with the margin of dumping calculations in prior administrative review determinations and/or th e original investigation, and that this warrants a 
consideration of the USDOC's dumping margin calculations in the subsequent review in the context of this 
proceeding.   
772 Para. 1 of the Ad Note  provides that: 
"As in many other cases in customs administration, a contracting party may require reasonable  
security (bond or cash deposit) for the paym ent of anti-dumping or countervailing duty 
pending final determination of the facts in any case of suspected dumping or subsidization." 
773 See Panel Report, US – Shrimp (Thailand) , para. 7.99 and Panel Report, United States – Customs 
Bond Directive for Merchandise Subject to Anti-Dumping/Countervailing Duties ("US – Customs Bond 
Directive "), WT/DS345/R, adopted 1 August 2008, as modified by Appellate Body Report, WT/DS343/AB/R, 
WT/DS345/AB/R, para. 7.78. 
774 Appellate Body Report, United States – Measures Relating to Shrimp from Thailand / United States 
– Customs Bond Directive for Merchandise Subject to Anti-Dumping/Countervailing Duties ("US – Shrimp 
(Thailand) / US –  Customs Bond Directive "), WT/DS343/AB/R, WT/DS345/AB/R, adopted 1 August 2008, 
para. 243. 
775 See Appellate Body Report, US – Shrimp (Thailand) / US –  Customs Bond Directive , para. 226.  The 
Appellate Body considered that it was not necessary for the panels to decide on the legal characterization of US WT/DS294/RW  
Page 162  
 
 determination of the amount of anti-dumping duties due is made at the time of the assessment review 
or, where no assessment review is requested, at the time where it is determined that duties will be 
assessed on the basis of the cash deposits  collected at the cash deposit rate: 
"In the retrospective duty assessment system followed by the United States , the 
factual determination of the amounts of anti-dumping duties payable by the importers 
is not complete until an assessm ent review has been conducted .  A factual 
determination of the amount of anti-dumping duties payable occurs even if an assessment review does not take place.  If no interested party requests an assessment review, the USDOC will instruct United States Customs to assess anti-dumping duties and liquidate the import entries at the cash deposit rate required upon import 
entry.  This cash deposit rate is determin ed for each exporter or producer individually 
investigated, and is established on the basis of its transactions ove r the period covered 
by the original investigation or the la test assessment review, as the case may be.  
Thus , even in the event that no asses sment review has been requested , the final 
determination of the facts includes a determination regarding amounts of anti-
dumping duties finally payable , as the USDOC has to instru ct United States Customs 
to liquidate the import entries on the basis of the cash deposit rates."
776 
"Under the United States' retrospective duty assessment system, the magnitude  of 
dumping, or, in other words, the amount of final liability for payment of anti-dumping duties, is determined only in an assessment review."
 777 
8.179  Further, the Appellate Body went on to note: 
"where no assessment review is requested , the USDOC instructs the United States 
Customs to liquidate the import entries on the basis of the cash deposit rate of the original anti-dumping duty order or the cash  deposit rate assessed for the exporter in 
the most recent assessment review.  Whet her or not an assessment review will be 
requested (and whether the final liability w ill be assessed at the previous cash deposit 
rate or according to the current data) is not known ex ante .  Thus, even in the event 
that no assessment review is requested, until liq uidation of the import entries, there is 
some uncertainty regarding the magnitude of dumping."
778 
8.180  Whether cash deposits are "duties" or a form of  security, a question which is not before us, 
and which we therefore do not address, the fact remains that in a retrospective duty assessment 
system, the final determination of the amount of duty due, based on a calculation of the margin of 
dumping for the imports subject to an administrativ e review, only occurs at the time of the final 
determination in that review.  As a consequence, in our view, where the DSB makes recommendations and rulings concerning the cal culation of the margin of dumping, the 
determinations in subsequent assessment reviews decided after the end of the reasonable period of 
time, and involving the same products from the sa me countries, must be consistent with those 
recommendations and rulings, regardless  of whether the imports in ques tion were made before or after 
the end of the reasonable period of time. 
                                                                                                                                                                    
 
cash deposits as duties governed by Article 9 in order to interpret the Ad Note  and decide the dispute before 
them.  As a result, the Appellate Body declared of no legal effect the interpretation developed by the panels that 
US cash deposits are not anti-dumping duties governed by Article 9.  See  Appellate Body Report, US – Shrimp 
(Thailand) / US –  Customs Bond Directive , paras. 235, 240-242.   
776 Appellate Body Report, US – Shrimp (Thailand) / US –  Customs Bond Directive , para. 222.  
(emphasis added) 
777 Appellate Body Report, US – Shrimp (Thailand) / US –  Customs Bond Directive , para. 226. 
778 Appellate Body Report, US – Shrimp (Thailand) / US –  Customs Bond Directive , footnote 268.  WT/DS294/RW 
 Page 163 
 
 
 8.181  The United States argues that the EC argument that the AD duty liability only materializes 
when the amount of duties due for a particular pe riod is determined pursuant to an administrative 
review proceeding leads to the absurd result that there would be no "final action" in the sense of 
Article 17.4 of the Anti-Dumping Agreement , and therefore, no measure for an aggrieved Member to 
challenge, until an assessment review is conducted.779  It does not, in our view follow from the EC 
argument or from our conclusion above that there is  no "final action ... to levy definitive anti-dumping 
duties".  As the European Communities notes780, a similar argument by Thailand was considered and 
rejected by the US – Shrimp (Thailand)  panel.  The panel noted that Ar ticle 17.4 refers to "final action 
... by the administering authorities ... to levy defi nitive anti-dumping duties".  Thus, the panel found, 
Article 17.4 does not state that definitive anti-dumping duties must have been levied ; rather, it merely 
requires that final action to levy definitive anti- dumping duties must have been taken.  The panel 
considered that, in this context, the word "to" sh ould be interpreted adverb ially, to express purpose.  
Accordingly, the panel considered that the impos ition of an anti-dumping order by the United States 
constitutes "final action ... to levy of definitive anti-dumping duties" , in the sense that the order puts in 
place a mechanism providing for the levying of definitive anti-dumping duties, even though the 
amount of those duties – if any – is not calcula ted until some time in the future.  In the US – Shrimp 
(Thailand)  panel's view, if the drafters of Article 17.4 had meant that Members must wait until 
definitive anti-dumping duties were actually levied before initiating dispute settlement proceedings, 
the relevant phrase in Article 17.4 would have re ad "if definitive anti-dumping duties have been 
levied, or price undertakings accepted".781  We agree with the US – Shrimp (Thailand)  panel's 
interpretation of Article 17.4.  In our view, the use of the term "final action …to levy definitive anti-
dumping duties" in that Article is to be contrasted with the concept of the final determination of the 
anti-dumping liability, on which the EC arguments rely.782 
8.182   Finally, the parties make a number of argumen ts with respect to the effect the finding 
advocated by the European Communities would have in  terms of the equality of treatment afforded to 
Members operating a retrospective duty assessment system and those operating a prospective 
assessment system or a prospective normal value system .  In particular, the United States argues that 
the position advocated by the European Communitie s would mean that a DSB recommendation with 
respect to anti-dumping duties has a different im pact for the Member concerned, depending on 
whether it operates a retrospective or a prospec tive duty assessment system.  A Member operating a 
prospective duty assessment system would not have to reimburse duties collected in excess of a rate 
consistent with the Anti-Dumping Agreement , on imports made before the expiration of the reasonable 
period of time, but a Member ope rating a retrospective duty assessment system would have to forgo 
the collection of such duties since the duties are only "collected" at a later point in time.783  T h e  
                                                      
779 US Second Written Submission, para. 47  and US Answer to Panel Question 41. 
780 EC Answer to Panel Question 36.   
781 Panel Report, US – Shrimp (Thailand) , para. 7.121. 
782 EC Answer to Panel Question 41, Japan's Answers to Panel Questions 20 and 21 to the third parties. 
783 See, inter alia , US Comments on EC Answer to Panel Ques tions 37 and 38.  The US notes that even 
if it is assumed, as the European Communities argues, that a Member operating a prospective duty assessment 
system would be obligated to act consistently w ith the DSB's recommendations and rulings in a refund 
proceeding concerning imports before the end of the reasonable period of time,  a discrepancy would still persist 
as the Member operating the prospective system would be under no obligation to provide a refund in the 
absence of a request to that effect whereas a Member operating a retrospective duty assessment system would be obligated to release cash deposits if a recalculation to im plement resulted in a determin ation of liability less than 
the amount of the original cash deposit.  The US also notes that in a retrospective system, an importer or 
exporter may request a review by right, while in a prospe ctive system, no such right exists.  A review may only 
be requested by importers, and that request must be "duly supported by evidence".  The United States also 
argues that notwithstanding the European Communities' argument to the contrary, EC law provides that a 
change in the anti-dumping dumping margin based on implementation of a WTO dispute report does not provide a basis for requesting a refund on duties predating the end of the reasonable period of time.  US 
Comment on EC Answer to Panel Questions 37 and 38. WT/DS294/RW  
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 United States submits that a proper interpretation of a Member's implementa tion obligations requires 
that all systems of duty assessment be treated  equally unless the Agreement expressly provides 
otherwise, and that nothing in Article 9.3 sugg ests that the existence of a mechanism for final 
assessment in a retrospective system imposes increas ed implementation obligations for Members with 
such systems as compared to Members opera ting a prospective duty assessment system.
784  
8.183  The European Communities considers that the ex tent of the "level playing field" between 
Members operating different duty assessment systems is that in no system can the amount of duty 
finally collected exceed the margin of dumping calcula ted in conformity with Article 2.  Indeed, the 
European Communities argues that a Member operati ng a prospective duty assessment system would, 
after the end of the reasonable period of tim e, be under the obligation to conduct any refund 
proceeding under Article 9.3.2 in conformity w ith the recommendations and rulings of the DSB, 
irrespective of the date of importation.785  
8.184  We note the statement of the Appellate Body, in US – Zeroing (Japan),  that: 
"The Anti-Dumping Agreement  is neutral as between different systems for levy and 
collection of anti-dumping duties .  The Agreement lays down the 'margin of dumping' 
as the ceiling for collection of duties rega rdless of the duty assessment system 
adopted by a WTO Member, and provides for a refund if the ceiling is exceeded.  It is therefore incorrect to say that the Anti-Dumping Agreement  favours one system, or 
places another system at a disadvantage."
786 (emphasis added) 
8.185  The recognition of the existence of different systems under the Anti-Dumping Agreement  
necessarily implies that, in interpreting the Agreement , the treaty interpreter must take into 
consideration the existence of such different systems.  It also means that a proper  interpretation of the 
Agreement cannot negate the existence of one of the permissible systems of duty assessment or render 
its operation impossible.  Yet, while we think that the interpreter should be mindful of the Appellate 
Body's indication that the Anti-Dumping Agreement  does not disadvantage Members operating either 
duty collection system, it may simply be unavoidable that the same legal provisions of the Anti-
Dumping Agreement  or – as is the case in this dispute – of the DSU, have different consequences as a 
result of the different characteristics of each system .  In other words, it should not come as a surprise 
that the application of the same legal principles to  different legal situations can result in different 
                                                      
784 See, e.g. US Answers to Panel Questions 28, 30, 34, US Comments on EC Answer to Panel 
Question 24. 
785 EC Answer to Panel Questions 28 and 30, EC Comments on US Answer to Panel Questions 32, 34 
and 40.  The Panel understands Korea to agree with th e European Communities.  See Korea's Answer to Panel 
Question 16(a) to the third parties.  See also Norway's Answer to Panel Question 16 to  the third parties, where it 
indicates that it considers that, due to the specific requirement regarding refunds in Article 9.3, an importer has the right to request a refund based on the corrected calculations under the domestic legal system of the Member 
imposing the measure.  Japan also considers that the am ount of anti-dumping duties collected at the time of 
importation is not final for purposes of WTO under a prospective system and that the same principles would apply in case a refund procedure under Article 9.3.2 were found to be WTO-inconsistent, as long as the entries 
covered have not been liquidated by the end of the reasonable period of time.  Japan's Answers to Panel 
Questions 11, 14 and 16 to the third parties; Japan's Opening Statement, para. 42. 
786 Appellate Body Report,  US – Zeroing (Japan) , para. 163; cited with approval in Appellate Body 
Report, United States – Final Anti-Dumping Meas ures on Stainless Steel from Mexico ("US – Stainless Steel 
(Mexico) "), WT/DS344/AB/R, adopted 20 May 2008, para. 121.  See also, the comment of the Appellate Body 
in US – Shrimp (Thailand) / US –  Customs Bond Directive  that "In our view, this finding is neutral as between 
prospective and retrospectiv e duty assessment systems, because the de termination of the final liability for 
payment of duty takes place in a retrospective system in assessment reviews subsequent to the imposition of the 
anti-dumping duty order." Appellate Body Report, US – Shrimp (Thailand) / US –  Customs Bond Directive , 
para. 227.  WT/DS294/RW 
 Page 165 
 
 
 implications.787  In the instant case, any different impact  in terms of a Member's obligation to 
implement DSB recommendations and rulings could merely be a result of the characteristics of the system under consideration, i.e.,  that the duty liability is only de termined when duties are "assessed" 
in the context of an assessment re view.  That one or the other of the duty assessment systems gives 
rise to certain advantages and disadvantages does not, in our view, mean that the recognition of these 
systems in the Anti-Dumping Agreement  is brought into question, or that the Anti-Dumping 
Agreement  favours one system, or places another system at a disadvantage.
788  Given the reality that 
prospective and retrospective duty assessment system s use different approaches in determining anti-
dumping liability under the Anti-Dumping Agreement , it would not be surprising that the mechanisms 
for implementation would differ between a Member  operating a retrospective duty assessment system 
and a Member operating a prospective duty assessment system.789  
Whether the US obligation to implement extends to the liquidation of duties  
8.186  As indicated above, the EC claims are not li mited to subsequent administrative reviews 
concluded after the end of the reasonable period of  time.  The European Co mmunities argues that any 
action of the United States to collect duties after the end of the reasonable period of time must be 
consistent with the DSB's recommendations and ruli ngs, even when the final collection of duties is 
delayed, for instance by judicial proceedings.  In  other words, the European Communities fixes the 
outer limit to the US obligation to implement as applying to any entries that were not liquidated as of the end of the reasonable period of time.  In the EC view, any liquidation before the end of the reasonable period of time need not be consistent  with the DSB's recommendations and rulings  
whereas any liquidation after the end of the reasonable period of time must be consistent with the US 
obligations under the Anti-Dumping Agreement  and the DSB's recommendations and rulings.  Thus, 
the European Communities also challenges US actions to collect anti-dumping duties based on 
zeroing after the end of the reasonable period of time, but where the administrative review was concluded before the end of the reasonable period of time.   
8.187  The European Communities argues that the amount established in a US administrative review 
is not final and conclusive.  Following an admini strative review determination, the USDOC issues 
assessment instructions to the USCBP, which then issues liquidation instructions to local customs 
authorities ("port authorities") to liquidate the import entries at the rate established by the USDOC.  
Local authorities then proceed to the actual liquidatio n of the entries, by issuing payment notices or 
refunds to the importer(s) concerned.  But the Euro pean Communities submits th at interested parties 
                                                     
 
787 We add, however, that the interpretation  of the provisions of a covered agreement should not vary 
depending on how a Member qualifies or organizes its duty collection system; it simply results from the different characteristics of the system that the consequences of the ensuing legal obligations ( i.e., the application 
of the obligation to the factual ci rcumstances at hand) may differ. 
788 That said, while the question of the obligation to implement of a Member operating a prospective 
duty assessment system is not before this panel, the European Communities indicated that in its view, in a case 
presenting similar circumstances to those before us, any refund procedure conducted under Article 9.3.2, 
decided after the end of the reasonable period of time, but with respect to imports made before that date, would need to be consistent with the disciplines of the Anti-Dumping Agreement  and recommendations and rulings of 
the DSB. EC Answers to Panel Questions 28 and 30.  This is consistent with our view that a determination of 
the amount of final anti-dumping duty liability made afte r the end of the reasonable period of time must be 
consistent with the implementing Member's obligations under the Anti-Dumping  Agreement  and with any 
rulings of the DSB.   
789 As noted above, footnote 783, the United States also  argues that in a retros pective duty assessment 
system, an importer or an exporter may request a revi ew by right, while in a prosp ective system, a review may 
only be requested by importers in a request duly supported by evidence.  We observe, however, that the 
Agreement does not specify which party may request an assessment review under Article 9.3.1 – the difference on which the United States relies is an aspect of the domestic law of Members.  For this reason, we find this US 
argument to be unavailing.   WT/DS294/RW  
Page 166  
 
 can challenge administrative revi ew determinations before US co urts, which challenge may involve 
the suspension of the issuance of assessment instructions until a final court ruling on the matter; 
further, once assessment instructions have been i ssued to the USCBP, importers may file a protest 
against liquidation before the USCBP.  Thus, the Eu ropean Communities submits, only where there is 
a decision from the USCBP, or the period to file  a protest has elapsed, do es the liquidation become 
final and conclusive.
790  The European Commun ities submits that the Anti-Dumping Agreement  
recognizes and takes into account judicial review pr oceedings in the imposition and collection of anti-
dumping duties, for instance in footnote 20 to Article  9.3.1.  Therefore, the European Communities 
considers that judicial review proceedings are part  of the context in which anti-dumping measures are 
adopted and maintained in place.791 
8.188   The United States rejects the European Communities' position.  As indicated above, the 
United States considers that the relevant date to assess implementation is not that of the final 
liquidation of entries, but that of the importation of the products subject to anti-dumping duties.  Further, the United States notes that the concept of "liquidation" is not universal and not found in the 
Anti-Dumping Agreement , but rather is an element of the US system.
792   Nothing in the Anti-Dumping 
Agreement  or the DSU suggests that the status of entries as "liquidated" or "unliquidated"  is germane 
to a Member's implementation obligations.  Furthe r, the United States considers that the same issue 
does not arise under a prospective systems since th ere is no distinction between potential and final 
liability in such systems.793 
8.189  The United States also submits th at there is no support in the Anti-Dumping Agreement  for the 
proposition that judicial review proceedings shou ld be taken into account in assessing a Member's 
implementation of DSB recommendations and rulings, a nd that where judicial review is to be taken 
into consideration in the Anti-Dumping Agreement , there are express provisions to that effect, for 
instance in footnote 20, which recognizes that the observance of the time periods set out in the Anti-
Dumping Agreement  may not be possible because of judicial review.794  The United States further 
submits that if the DSB's recommendations and rulings called for compliance with respect to 
determinations made prior to the end of the reasona ble period of time, but subject to pending judicial 
review, this would create an incentive for private par ties to make requests for judicial review for the 
sole purpose of  delaying finality in the hope that a favourable ruling could be obtained through WTO 
dispute settlement.795   
8.190  Japan essentially agrees with th e European Communities.  Japan  considers that in a case 
where there are outstanding unliquidated entries on imports on which cash deposits were made in the 
amount set out in the administrative review challe nged in the original dispute, the Member must 
revise the importer-specific assessme nt rate to ensure that the definitive duties collected on 
unliquidated entries are fully consistent  with the Member's WTO obligations.796  It considers that the 
United States was required to bring the reviews at i ssue in the original dispute into conformity with 
WTO law because it will take action pursuant to th e WTO-inconsistent importer-specific assessment 
                                                      
790 See, inter alia , EC First Written Submission,  para. 82; EC Second Written Submission, paras. 73-
75, 79-84. 
791 EC Answer to Panel Question 25.   
792 US Answer to Panel Question 24 and US Comments on EC Answer to Panel Question 24; US 
Answer to Panel Question 34. 
793 US Answer to Panel Question 24 and US Commen ts on EC Answer to Panel Question 24.  We 
addressed the US arguments based on the requirement th at the different duty assessment systems receive equal 
treatment under the Anti-Dumping Agreement  above, at para. 8.185.   
794 US Comments on EC Answer to Panel Question 25. 
795 US Comments on EC Answer to Panel Question 25. 
796 Japan's Answer to Panel Question 11(c) to the third parties; see also Japan's Third Party Submission, 
paras. 95-101.  WT/DS294/RW 
 Page 167 
 
 
 rates established in these reviews to collect  anti-dumping duties on unliquidated entries.797  Thus, for 
Japan, what is relevant is that after the end of  the reasonable period of time, the United States will 
take action pursuant to a measure found to be WTO-in consistent.  Japan also submits that US periodic 
reviews continue to produce legal effects because, inter alia , under US law, the enforcement of the 
final results of the reviews is suspended pe nding the outcome of domestic judicial review 
proceedings.  Yet, Japan explains, the Panel is no t asked to take into acco unt the judicial review 
proceedings as a substantive element of its exam ination of the EC claims regarding the US non-
compliance; rather, the existence of these procedures  is merely a background fact that explains why 
the importer-specific assessment rates in the periodic reviews in question will be applied after the end 
of the reasonable period of time.798  Korea also supports the EC position.799 
8.191  In our view, the date that is relevant  for the US implementation of the DSB's 
recommendations and rulings is, as we have found above, that of the final determination of duty 
liability, and not that of the actual liquidation of the duties.800   In essence, the European Communities 
asks the Panel to take into consideration delays in  the actual collection of anti-dumping duties that are 
the consequence of judicial proceedings challenging the final duty liability determination.  Yet, we 
recall that the EC claims in the original dispute, and the findings of the panel and the Appellate Body, 
concerned the calculation of margins of dumping.  We have already determined that, under the US 
system, the final amount of duty is determined at the time of the assessment review conducted 
pursuant to Article 9.3.  The EC theory of implemen tation would lead to the undesirable result that the 
implementing Member may have to recalculate fina l duty liability calculations  which were concluded 
before the end of the reasonable period of time, fo r the simple reason that the actual collection of 
duties was suspended, even where the court proceed ings were unsuccessful in challenging the final 
duty liability determination.  We also note that in  response to a panel question on an unrelated issue 
(the US argument under Article 17.4 Anti-Dumping Agreement ), the European Communities 
submitted that:   
"the USDOC's duty assessments in the context of administrative review proceedings 
is the final action taken by the US author ities for the purpose of determining the duty 
rates applicable to entries within the period of review and, thus, levying duties in the 
sense of Article 17.4 of the Anti-Dumping Ag reement.  Then, liquidation will be final 
and conclusive depending of the actions take n by importers under US municipal law.  
Thus, the final action to levy duties in the sense of Article 17.4 of the Anti-Dumping 
                                                      
797 Japan's Answer to Panel Question 12 to the third parties, Japan's Third Party Submission, paras. 78-
84, 95-99 and 111-112, Japan's Opening Statement, paras. 38-42. 
798 Japan's Answer to Panel Question 12 to the third parties.  Japan also notes that footnote 20 
recognizes that, due to domestic court proceedings, Members may permissibly take action pursuant to a periodic review long after the completion of that review.   
799 See Korea's Answer to Panel Question 11 to the third parties:  "Korea notes that if there are still 
outstanding unliquidated entries on imports after the expiration of the RPT, the administrative review at issue is still in operation and has not been revoked yet."  See al so Korea's Answer to Panel Question 12 to the third 
parties:  "a pending judicial review proceeding with respect to an anti-dumping measure could indicate that the 
measure has not been finally disposed yet even in the domestic jurisdiction of the Member.  So, if a judicial 
action has suspended the liquidation of entries, even if assessment instruction has already been issued for them, 
the entries should be considered to be pending, which is then subject to the implementation obligation of the 
implementing Member after the expiration of the RPT." 
800 The concept of "liquidation" of duties is not one which is found in the Anti-Dumping Agreement .  
We use this term here to refer to the conclusion of the administrative action of collecting duties by either 
providing a refund where the assessed amount of duty is  inferior to the cash deposits provided, or where an 
invoice is sent where insufficient cash deposits were provided, or the information to the importer that the cash 
deposits provided correspond to the amount of duties to be collected.   WT/DS294/RW  
Page 168  
 
 Agreement must be the action taken by the competent government authorities, 
regardless of the actions taken by private parties."
801 
8.192  It is significant, in our view, that the European Communities itself recognizes that the 
administrative review proceeding is the final action undertaken by the US authorities to determine the 
duty liability applicable to particular imports, an d that where liquidation is delayed after that 
determination, it is due to actions  on the part of private parties.  We do not consider that the US 
obligation to implement should de pend on the date at which the US authorities collect duties where 
the amount of the duties to be collected was fina lized at the time of the administrative review 
proceedings.  Merely that the act of the US auth orities in collecting the duties is delayed by the 
actions of private parties does not change our views in this regard.  The issue that is before us 
concerns the temporal aspect of the US obliga tion to implement the DSB's recommendations and 
rulings, in other words, to which actions of the Un ited States this obligation to implement extends.  In 
our view, the US obligation to implement should not, once the determination of the amount of anti-
dumping liability has been made, depend on when the actual collection of the duty takes place. 
8.193  Also, were we to agree with the European Co mmunities, it would mean that duties that are 
liquidated at any point in time following the assess ment of amount of the final liability – sometimes 
several years afterwards – would require the Unite d States authorities to revisit the final assessment  
of duties previously performed in the context of th e administrative review, for the sole reason that 
implementation of the US determination (via actual liquidation) was delayed, in some cases because 
of legal challenges having nothing to do with the issue of zeroing.802   
(ii) Application to the facts of this dispute 
8.194  In essence, the European Communiti es makes three groups of claims. 
8.195  First, the European Communities makes claims with respect to the collection of anti-dumping 
duties after the end of the reasonable period of tim e.  We understand these legal claims to correspond 
to the following requests for findings presented by the European Communities: 
(a) the United States has not complied with the DSB's recommendations in the original 
proceeding, since it continues to collect  anti-dumping duties and establish new cash 
deposit rates based on zeroing with respect to the original investigations and 
administrative reviews challenged in the original dispute;  
(b) the United States remains in violation of Articles 2.4.2 and 9.3 of the Anti-Dumping 
Agreement  and Article VI:2 of the GATT 1994, since it still collects anti-dumping 
duties calculated with zeroing with respect to measures challenged in the original 
dispute (including the measures listed in the Annex to the Panel Request and any 
other subsequent measures); 
                                                      
801 EC Answer to Panel Question 34. 
802 In addition, with respect to footnote 20, we note that this footnote indicates that observance of the 
12 (in some cases 18) months time limit set out for the completion of the assessment review and the 90-day limit 
for the issuance of refunds in Article  9.3.1 may be impossible because of judicial review proceedings. To the 
extent that footnote 20 has any relevance to the issue before us, we would note that it does not suggest that a "determination of the final liability for payment of anti-dumping duties" is not finalized pending judicial review; 
rather, it indicates that, in certain cases, it may be impossi ble to arrive at that dete rmination in the prescribed 
time limit because of judicial review proceedings or that the implementation of that determination may be delayed for similar reasons.  Thus, footnote 20 does not, in our view, bring into question the fact that final anti-
dumping duty liability determination is, under Article 9.3.1, made at the time of the assessment review.    WT/DS294/RW 
 Page 169 
 
 
 8.196  We analyze these EC claims with respect to the collection of anti-dumping duties after the 
end of the reasonable period of time by distinguishing between:   
(a) US actions to collect (liquidate) anti-dum ping duties after 9 April 2007, pursuant to 
the original investigations at issue in the original dispute or to subsequent 
administrative reviews made before the end of the reasonable period of time; 
(b) US assessment of duties and establishment of new cash deposit rates using zeroing 
pursuant to determinations in subsequent  administrative reviews concluded after 
9 April 2007; 
(c) US maintenance of cash deposit rates estab lished in the measures at issue in the 
original dispute. 
8.197  Second, the European Communities makes legal cl aims and requests for fi ndings to the effect 
that the United States has not complied with the DS B's recommendations in the original proceeding, 
since it has failed to fully revoke the original inves tigation orders contested in the original dispute. 
8.198  Third, the European Communities claims that the United States has not complied with the 
DSB's recommendations in the original proceeding, since the 16 administrative review investigations 
covered in the original dispute have not been superseded, i.e., the United States still collects duties 
based on the dumping margins found in those pro ceedings with zeroing, and the United States has 
also relied on those margins for the determinati on of likelihood of recurrence of dumping in sunset 
review proceedings.   
EC claims concerning liquidation of entries after the end of the reasonable period of time 
pursuant to determinations of final liability made before that date 
8.199  We recall that while we have determined that  the US obligation to implement applies to 
administrative review determinations made after 9 April 2007, we have found that the US obligation 
to implement does not extend to US actions to coll ect (liquidate) duties pursuant to determinations 
made before the end of the reasonable period of tim e.  It follows that US actions to collect anti-
dumping duties after the end of the reasonable period of time pursuant to final determinations of anti-
dumping liability before the end of the reasonable period of time do not constitute a failure to comply 
with the DSB's recommendations and rulings. 
8.200  As a result, insofar as the EC claims concern the collection of anti-dumping duties, i.e., 
"liquidation", after the end of the reasonable pe riod of time pursuant to anti-dumping duty liability 
determinations made before the end of the reasonable period of time, we reject them.803  
                                                      
803 In response to a question from the panel, the European Communities provided some information to 
the panel on the amount of unliquidated duties  at different points in time, as well as information whether there were ongoing judicial proceedings with respect to du ties associated with entrie s covered by each of the 
subsequent review included in the Annex to the EC Article  21.5 panel request at these different points in times.  
Annex A to the EC Answer to Panel Question 5.  The parties subsequently provided the Panel with their views on whether certain litigation proceedings were still ongoing, whether certain entries remained "unliquidated", 
and, related to this, whether the scope of protests of USCBP decisions is limited to challenging decisions made 
by USCBP, as opposed to the duty assessment perfor med by the USDOC.  See European Communities letter of 
11 June 2008, commenting on the US Comments on EC Answers to Panel Questions, US letter of 11 June 2008 
commenting on the EC Comments on US Answers to Pa nel Questions, US letter of 13 June commenting on the 
EC letter of 11 June, EC letter of 24 June 2008 commenting on the US letter of 13 June 2008.  The information contained in Annex A and the parties' comments concerned primarily the question of whether certain duties 
remain "unliquidated" and the scope of current challenges .  Given that we have concluded that the "liquidation" WT/DS294/RW  
Page 170  
 
 Consequently, we find that the European Commun ities has not established that the United States has 
failed to comply with the DSB's recommendations in th e original proceeding by virtue of the fact that 
it has continued and continues to collect anti- dumping duties with respect to the original 
investigations and administrative reviews challenged in  the original dispute for that reason.  We also 
find that the European Communities has not established that the United States remains in violation of 
Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 1994 because of 
US actions to liquidate anti-dumping duties calcu lated with zeroing pursuant to final duty assessment 
determinations made before the e nd of the reasonable period of time, including pursuant to subsequent 
reviews listed in the Annex to the EC Article 21. 5 request for the establishment of a Panel.   
EC claims concerning assessment instructions and cash deposit rates 
8.201  We now turn to the claims and requests for fi ndings of the European Communities concerning 
the allegation that the United St ates has failed to comply with the DSB's recommendations in the 
original dispute because the United States has esta blished (and establishes) new cash deposits rates 
and has issued (and issues) new assessment instructi ons based on zeroing with respect to the original 
investigations and administrative reviews challenged in  the original dispute, and remains in violation 
of Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 1994 since it 
still collects anti-dumping duties calculated with zer oing with respect to measures challenged in the 
original dispute, including the m easures listed in the Annex to the EC request for the establishment of 
a panel. 
8.202  The European Communities has referred to US actions (duty assessment and cash deposit 
requirement) in cases 1 and 6 as examples of specific US failure to implement the DSB's 
recommendations and rulings with respect to the orig inal investigations at issue in the original 
dispute, and in case 31 with respect to the administrativ e reviews at issue in the original dispute.  In 
the absence of specific reference to and arguments  by the European Communities concerning other 
instances in which the United States allegedl y acted in the manner challenged by the 
European Communities, we limit our examination an d conclusions to the specific arguments made by 
the European Communities, i.e. to these three cases.
804 In fact, we simply do not have before us any 
substantive arguments or supporting materials in  relation to any other cases which would have 
allowed us to make any additional substantive findings.  
Case 1 (Hot Rolled Carbon Steel from the Netherlands) 
 
8.203  With respect to case 1, the Eur opean Communities claims that th e United States has (i) issued 
assessment instructions to collect anti-dumping duti es in subsequent administrative reviews in which 
simple zeroing was used and the results of such reviews were obtained after 9 April 2007, and 
(ii) issued assessment instructions to collect duties at the rate establis hed in the original investigation 
challenged in the original dispute as no administra tive review was requested or the administrative 
review was rescinded. 
8.204  With respect to the first claim concerning assessme nt instructions issued after 9 April 2007 in 
the context of a subsequent administrative revi ew, the European Communities submits that, on 
                                                                                                                                                                     
of duties after the end of the reasonab le period of time does not constitute a failure to implement the DSB's 
recommendations and rulings, we need not examine an y further the parties' arguments in this respect. 
804 Further, we recall that the European Communities claims that the United States issued assessment 
instructions and established new cash deposit rates with respect to one of the administrative review  proceedings 
at issue in the original dispute; these arguments of the European Communities concern the 2005-2006 
administrative review in case 23/24 (Granular Polytetrafl uorethylene from Italy) (EC First Written Submission, 
para. 81 and Exhibit EC-17, Notice of Final Results of administrative review, 72 FR 65939, 26 November 2007).  We have already determined that this subsequent review does not fall within our terms of 
reference.  See supra , para. 8.125.  WT/DS294/RW 
 Page 171 
 
 
 22 June 2007,  i.e.,  after the expiry of the reasonable period of time, the USDOC issued the final 
results of the 2004-2005 administrative review cove ring imports in the period 1 November 2004 to 
31 October 2005 and instructed the USCBP to collect duties at 2.26 per cent.805  The European 
Communities also notes that the Section 129 determina tion with respect to case 1 revoked the original 
order on 23 April 2007 since, without zeroing, no dumping was found. 
8.205   With respect to the second claim, the Eu ropean Communities submits that the fifth 
administrative review in that case, covering im ports from 1 November 2005 to 31 October 2006, was 
rescinded and the duty rate resulting from the original  investigation, in which zeroing was used, was 
applied.  The administrative review was resci nded on 30 March 2007 and the assessment instructions 
issued on 16 April 2007; the USCBP subsequently in structed the ports of entry to liquidate the 
relevant entries on 23 April 2007.806 
8.206  The United States has limited itself to indicating that, in its view, it has complied with the 
DSB's recommendations and rulings by recalculating, without zeroing, the margin of dumping in the 
Section 129 determination and, as a result, revoked th e order, effective 23 April 2007.  Moreover, the 
United States indicates that as a result of a subsequent sunset review, the anti-dumping order was 
actually revoked effective 29 November 2006807 and that all cash deposits made on imports occurring 
on or after that date are not subject to any final assessment of duties.  Thus, the United States submits, 
the EC claims concern a measure that is no longer in effect.808  
8.207  The EC claims do not, as the United States subm its, concern a measure that is no longer in 
effect.  The European Communities challenges an ad ministrative review determination made after the 
end of the reasonable period of time and a decision to assess duties at a rate based on zeroing, 
following the rescission of an administrative revi ew proceeding.  Neither of these measures was 
revoked as a result of the revocation of the order pursuant to the Section 129 determination or the 
sunset review determination mentioned by the United States. 
8.208  We have already determined that the 2004-2005 ad ministrative review in case 1 falls within 
our terms of reference.809  The United States has not contested that the USDOC used zeroing in the 
calculation of the margin of dumping for the sole  respondent, Corus,  and indeed, the Issues and 
Decision Memorandum for that administrative review  determination makes it clear that the USDOC 
used zeroing in calculating Corus' margin of dumping.810  For the reasons discussed by the Appellate 
                                                      
805 EC First Written Submission, paras. 78-79 and corresponding footnotes, EC Second Written 
Submission, para. 67.  The Amended Final Results of the administrative review determination were published 
on 22 June 2007 at 72 FR 34441 (Exhibit EC-11), the Final Results of the administrative review were published 
at 72 FR 28676, 22 May 2007; the Issues and Decision Memorandum for the final results was also submitted by the European Communities as Exhibit EC-12.  The Final Results and Amended Final Results indicate that the 
AD order having been revoked in that case, effective 23 April 2007, no new cash deposit instructions were to be 
provided.   
806 The notice of rescission of the 2004-2005 administrative review, effective 30 March 2007, 
published at 72 FR 15105 (30 March 2007), is found at Exhibit EC-13.  The USDOC assessments instructions to 
the USCBP were issued on 16 April 2007 and were prov ided by the European Communities as Exhibit EC-14.  
The USCBP instructions to the ports, dated 23 April 2007, were submitted by the European Communities as 
Exhibit EC-15. 
807 Final Results of the Sunset Review of Antidumping Duty Order and Revocation of the Order, 
Certain Hot–Rolled Carbon Steel Flat Products from the Netherlands, 72 FR 35220 (27 June 2007), Exhibit US-
14. 
808 US First Written Submission, para. 66. See also, US Opening Statement, para 21.  We also recall 
that the US submits that the final assessment was the result of determinations distinct from the determination 
made in the original investigation and that this subsequent determination is not within the scope of this 
proceeding, an argument of the United States which we have rejected.  US First Written Submission, para 68. 
809 See supra , para. 8.126. 
810 Exhibit EC-12, pp. 12-14. WT/DS294/RW  
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 Body in paragraphs 123-135 of its Report in the or iginal dispute, we find that the United States acted 
inconsistently with Article 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 1994 in 
its determinations in this administrative review a nd in issuing the consequent assessment instructions.  
As a result, we also find that the United States h as failed to comply with the DSB's recommendations 
and rulings to bring the original investigation in case 1 into conformity with th e covered agreements.   
8.209  With respect to the EC claims concerning imports in the 2005-2006 period, we note that the 
USDOC issued its notice of rescission of the admi nistrative review prior to the expiry of the 
reasonable period of time, on 30 March 2007.  Cons istent with our findings above, we therefore 
consider that the determination of final anti-dumpi ng duty liability with respect to the imports covered 
by the assessment instructions challenged by the Eu ropean Communities was made  prior to the end of 
the reasonable period of time, with the result that th ey do not constitute a failure on the part of the 
United States to implement the recommendations of the DSB.  We therefore find that the 
United States has not failed to comply with the DSB's rulings and recommendations to bring the 
original investigation in case 1 into conformity w ith its obligations under th e covered agreements by 
virtue of these assessment instructions. 
Case 6 (Stainless Steel Wire Rod from Sweden) 
 
8.210  The European Communities provides case 6 as an example of the United States having, after 
9 April 2007, established cash deposit requirements based on zeroing on imports of products from  
countries at issue in the original dispute.  Specifi cally, the European Communiti es submits that in this 
case, on 9 May 2007 the USDOC instructed the US CBP to collect anti-dumping duties at 19.36 per 
cent (even though the Section 129 de termination revoked the original  order effective 23 April 2007), 
and notified the USCBP of the revised cash deposit ra te for the exporter concerned.  According to the 
notice, this new cash deposit is "effective upon publica tion of these amended final results of review.  
This cash deposit requirement shall rema in in effect until further notice".
811  
8.211  The United States submits that the EC statement of facts is in error:  the USDOC did, as 
alleged by the European Communities, publish the amended final results of the 2004-2005 
administrative review on 9 May 2007 and, in those amended final results, stated that it would notify 
USCBP of the revised cash deposit resulting from the review, that the cash deposit rate would be effective as of the date of publication, and that "t he cash deposit requirement shall remain in effect 
until further notice."  However, on 10 May 2007, Commerce provided "further notice" by issuing 
instructions to USCBP informing it of the revoca tion resulting from the Section 129 determination; 
these instructions informed USCBP that any cash de posits paid on imports of wire rod from Sweden 
made on or after 23 April 2007, were to be refunde d and all imports made on or after 23 April 2007 
would not be subject to the final assessment of anti-dumping duties.
812  Thus, the United States 
argues, as a result of the revocation of the an ti-dumping duty order, the USDOC did not issue new 
cash deposit instructions to USCBP based on the determination made in the 2004-05 administrative 
review and the EC claim concerns a measure that has been revoked.813 
8.212  We have already determined that the 2004-2005 ad ministrative review in case 6 falls within 
our terms of reference.814  Given the evidence provided by the United States that no cash deposit was 
                                                      
811 European Communities First Written Submission, para. 80.  The Amended Final Results of the 
2004-2005 administrative review, covering imports from 1 September 2004 to 31 August 2005, were submitted 
by the European Communities as Exhibit EC-16 (72 FR 26337, 9 May 2007).  The final results were published 
on 10 April 2007 (72 FR 17834). 
812 US First Written Submission, para. 72.  See also  Exhibit US-15 Instructions to US Customs and 
Border Protection, Revocation of Antidumping Duty Order on Stainless Steel, Wire Rod from Sweden Pursuant 
to Final Results in Section 129 determination (10 May 2007). 
813 US First Written Submission, paras. 70-73. 
814 See supra , para. 8.126  WT/DS294/RW 
 Page 173 
 
 
 imposed on imports covered by the anti-dumpi ng order in this case following the 2004-2005 
administrative review, and the absence of rebuttal of  this evidence by the Eu ropean Communities, we 
find that the European Communities has failed to establish that the United States failed to comply 
with the DSB's recommendations and rulings by virtue of having imposed new cash deposit requirements with respect to case 6. 
8.213   With respect to the assessment of duties pursuan t to the 2004-2005 administrative review, the 
United States has not contested that it used zeroi ng in the calculation of the margin of dumping for 
Fagersta (the sole exporter concerned by the review ).  We therefore find, for the reasons discussed by 
the Appellate Body in paragraphs 12 3-135 of its Report in the original  dispute, that the United States 
acted inconsistently with Article 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 
1994 in this administrative review determination a nd the assessment instructions issued pursuant to 
that determination.  As a result, we also find that  the United States has failed to comply with the DSB 
rulings and recommendations to bring the original investigation in case 6 into conformity with the 
covered agreements.
815 
Case 31 (Ball Bearings from the UK) 
 
8.214  The European Communities makes ar guments with respect to case 31 as part of its claim that 
the administrative reviews challenged in the original dispute have not been superseded by subsequent 
reviews since the effects of the administrative re views challenged in the original proceeding still 
continue today, and that for the 16 administrativ e reviews to be "superseded", the United States 
should have stopped them, by not collecting duties calculated using zeroing, and should have replaced 
them by collecting the duties and establishing ne w cash deposits based on a methodology without 
zeroing.  Since this claim concerns a cash deposit rate applicable after the end of the reasonable 
period of time, and which continues to apply as of  the date of our establishment, and assessment 
instructions issued after the end of the reasonable period of time, we examine it in this section of our 
report.   
8.215  With respect to cash deposits, specifically , the European Communities argues that the 
United States still collects duties established in the ad ministrative reviews at issue in the original 
dispute.816  The United States admits that the cash  deposit rate for NSK established in the 
administrative review challenged in the original dispute, which concerned covered imports entered 
from 1 May 2000 through 30 April 2001, remains in effect.817  
                                                      
815 In addition, while the arguments of the European Communities in this respect are not clear, the 
European Communities seems to make a claim in respect of the cash deposit requirements that applied after the 
end of the reasonable period of time (9 April 2007)  until the revocation of the measure pursuant to the 
Section 129 determination in that case (23 April 20 07). See EC Second Written Submission, para. 67, and 
Opening Statement, para. 48, where the European Commun ities argues that the United States "has recognized 
that imports of stainless steel wire rod from Sweden (Case 6 in the Annex to the Panel Request) after 
9 April 2007 are subject to the original anti-dumping duties based on model zeroing".  The Panel considers that it must assess the existence of measures taken to comply as of the date of its establishment. See infra , 
para. 8.226. Consequently, to the extent that the European Communities is making a claim with respect to the 
fact that cash deposits requirements applied to imports  in case 6 between 9 and 23 April 2007, we decline to 
make a finding on such a claim. 
816 EC First Written Submission, para. 95, EC Second Written Submission, para. 67. 
817 See US Answer to Panel Question 35: 
Question:  "US:  Does the US conced e that it has not implemented the DSB's 
recommendations and ruling with respect to case 31 (the administrative review determination 
in respect of NSK's imports)? The Panel recalls that the EC alleges that the cash deposit rate applicable to NSK's entries is still the one that was calculated in the administrative review 
challenged in the original dispute. WT/DS294/RW  
Page 174  
 
 8.216  Given this admission of the United States, the Pa nel finds that the United States has failed to 
comply with the DSB recommendations and rulings to  bring its measure into conformity with the 
covered agreements, as it has continued to apply to imports of NSK the cash deposit rate established 
in an administrative review determination found to be inconsistent with Article 9.3 of the Anti-
Dumping Agreement  and Article VI:2 of the GATT 1994 in the original dispute.   
8.217  While the European Communities argues that th e USDOC continues to assess duties at that 
cash deposit rate after the end of the reasonable period of time, the European Communities has not 
directed us to any specific duty assessment determination after the end of the reasonable period of time.  Given the lack of identification of a precise US action in this respect, we refrain from making a specific finding with respect to any duty assessment  with respect to imports of NSK under case 31 
after the end of the reasonable period of time. 
8.218  We do not understand the European Communities to seek a specific finding on the continued 
application of cash deposits established on the basis of  "zeroed" margins of dumping after the end of 
the reasonable period of time, other than with resp ect to case 31.  We note that the EC claims and 
arguments in this respect have not been a model of clarity.  Nonetheless, we consider it appropriate to 
add that the continued imposition of cash deposit requi rements at rates calculated in the administrative 
reviews at issue in the original dispute or in subsequent administrative review would constitute a 
failure (omission) on the part of the United St ates to implement the DSB's recommendations and 
rulings, because of the use of zeroing in calculating the margin of dumping.
818  In fact, we do not 
understand the United States to dispute the proposition that the application of cash deposits pursuant 
to the measures at issue in the original dis pute constitutes a failure to implement the DSB's 
recommendations and rulings.  We understand the Unite d States to limit its arguments in this respect 
to the fact that any cash deposit requirement applie d as of the end of the reasonable period of time 
results from another determination, i.e., one of the subsequent reviews.819  Yet, in our view, in order to 
comply with the recommendations and rulings of th e DSB, the United States had to ensure that any 
cash deposit rate applied after the end of the reaso nable period of time in relation to one of the 
measures at issue in the original dispute was not one that derived from a margin of dumping 
calculated with zeroing, even where that cash deposit was established as a result of a subsequent 
review, and not a measure at issue in the original dispute. Concluding otherwise would mean that the 
United States is allowed to circumvent its obligati on to bring its measures and action into conformity 
with those recommendations and rulings by the mere  replacement of the cash deposits established in 
the measures challenged in the original dispute by subsequent ones established in administrative 
reviews in which zeroing was again used.820 
                                                                                                                                                                     
Answer:  "Yes.  The cash deposit rate for imports of merchandise manufactured or exported 
by NSK established by Commerce in its determination from the May 1, 2000 through 
April 30, 2001 administrative review of Ball Bearings from the United Kingdom  remains in effect.  This was one of the determinations challenged by the EC in the original dispute." 
818 We have already determined that US omissions to implement, and specifically, cash deposit rates 
applied after the end of the reasonable period of time may be considered as part of our analysis of the US implementation of the DSB recommendations and rulings. See supra  para. 8.127. 
819 With the exception of the cash deposit requirement in respect of NSK's imports in case 31: with 
respect to that case,  the US admits that the cash deposit rate established as a result of the administrative review 
challenged in the original dispute still applies. 
820 We recall that we have indicated above th at a Member must, to implement the DSB's 
recommendations and rulings, ensure that actions it undert akes after the end of the reasonable period of time are 
consistent with its obligations under the DSB.  The con tinuing requirement to provide cash deposits constitutes, 
in our view, such an action.  WT/DS294/RW 
 Page 175 
 
 
 EC claims that the United States has failed to  comply with the DSB' s recommendations in the 
original dispute because it has failed to fu lly revoke the original investigation orders 
contested in the original dispute and EC claims that the administrative reviews at issue in the 
original dispute have not been superseded  
8.219  The European Communities claims that the Un ited States has failed to fully revoke the 
original anti-dumping orders at issue in the origin al dispute.  The EC claim in this respect is 
essentially that, due to the revocation of some AD orders and the exclusion of some exporters from 
other orders following the adoption of the Secti on 129 determinations, ther e is no longer any legal 
basis allowing the United States to collect duties on p ast entries or to submit future entries to a cash 
deposit rate based on zeroing.  The European Comm unities considers that any future liquidation of 
prior entries subject to a now-revoked order, includi ng orders revoked for reasons other than zeroing, 
or with respect to an exporter now excluded from the scope of the relevant  order would be illegal 
since this would amount to the taking of a positive act, already found to be WTO-inconsistent, after 
the end of the reasonable period of time.821  
8.220  To the extent that the Europ ean Communities is claiming that the United States was, after 
23 April 2007, precluded from liquidating duties collected pursuant to the margins of dumping 
calculated in the measures at issue in the original di spute, this claim is, in our view, subsumed in the 
EC claim concerning US actions to collect ("liquida te") duties after the end of the reasonable period 
of time.  We have already rejected the EC claim in this respect.822  Further, to the extent that the 
European Communities is claiming that the United Stat es is precluded, as of the date of the revocation 
of the orders, from making any final anti-dumpi ng duty liability determin ation in subsequent 
administrative reviews, we consider that this cl aim is subsumed in the claim of the European 
Communities which we have addressed above in paragr aphs 8.201-8.218.  Indeed, the European 
Communities has not provided any evidence of US actions other than that addressed in our 
consideration of the EC claims in these paragraphs. 
8.221  Insofar as the EC request for findings concerns cash deposit requirements  that applied after 
the end of the reasonable period of time, but prior to  the revocation of the relevant order, as indicated 
below, we do not consider that we need to make findings with respect  to measures that were no longer 
in place as of the date of the establishment of this Panel.823  In fact, we consider that this request for a 
finding by the European Communities is not a separat e "claim", but rather an additional argument in 
support of the EC general claim that the Un ited States has failed to implement the DSB's 
recommendations and rulings with respect to the co llection of duties calculated with zeroing after the 
end of the reasonable period of time.  As a result, we  decline to make any findings in respect of this 
argument of the European Communities. 
8.222  Likewise, we consider it unnecessary to make specific findings on whether the United States 
has failed to comply with the DSB's recommend ations in the original proceeding "since the 
16 administrative review investigations covered in th e original dispute have not been superseded."  
We understand the European Communities to challenge, as part of this request for finding, the fact 
                                                      
821 EC First Written Submission, para. 91.  See also EC Opening Statement, para. 49: 
"Second, [the US theory of implementation] is insufficient because it a llows the United States 
to keep its so-declared WTO inco nsistent measures effectively in place even after the end of 
the reasonable period of time.  Indeed, in simple terms, what the United States argues in this 
case is that it can collect duties based on zeroing after the end of the reas onable period of time 
even if the original anti-dumping order has been revoked precisely  because, absent zeroing, no 
dumping was found.  ... In this respect, the measures challenged in the original dispute are still 
in place since, until the United States stops taki ng positive acts to enforce them, their effects 
persist even after the end of the reasonable period. ..." 
822 Supra , para. 8.206. 
823 See infra , para. 8.226. WT/DS294/RW  
Page 176  
 
 that certain aspects of the measures at issue in the original dispute remain in place, unaffected by the 
DSB's recommendations and rulings in the original di spute.  We recall that we have found above that 
with respect to the assessment of duties, any final determination of the amount due made after the end 
of the reasonable period of time must be made in accordance with the DSB's recommendations and 
rulings, and therefore that the use of zeroing in th e calculation of margins of dumping in assessment 
reviews after the end of the reasonable period of  time constitutes a failure on the part of the 
United States to implement the reco mmendations and rulings of the DSB.
824  We have also addressed 
the EC claims concerning the maintenance of cash de posits established in the measures at issue in the 
original dispute.825  Since we have addressed all of the EC claims that concern specific instances 
where the United States has failed to implement, we do not need to make the finding requested by the 
European Communities.  
F. REQUEST FOR FINDINGS REGARDING THE NON -EXISTENCE OF MEASURES TAKEN TO COMPLY 
BETWEEN 9 APRIL AND 23 APRIL /31 AUGUST 2007 
1. Main arguments of the parties 
8.223  The European Communities  makes a claim in relation to the fact that the measures the 
United States asserts it took to comply, the Section 129 determinations, only entered into force on 
23 April and (in the case of the Section 129 determination in case 11), 31 August 2007, i.e., after the 
expiration of the reasonable period of time on 9 April 2007.826  The European Communities claims 
that, by failing to put into effect the me asures taken to comply between 9 April and 
23 April/31 August 2007, the United States acted incons istently with Articles 21.3 and 21.3(b) of the 
DSU and requests that the Panel make an explicit finding to this effect.  The European Communities 
argues that while the substantive obligation to comply with particular provisions of the WTO 
Agreements derives from the DSB's recommendations and rulings, Article 21.3 of the DSU brings in 
a temporal element, i.e.,  when the losing Member has to comply at the latest.827  The European 
Communities notes that a similar finding of non-complia nce in past periods was made by the panel in 
Australia – Salmon (Article 21.5 – Canada).  The European Communities also distinguishes US – 
Upland Cotton (Article 21.5 – Brazil) , noting that in that case, the panel declined to make a finding on 
the fact that the United States did not take any measu res to comply with the adverse effects ruling and 
recommendations of the DSB by the end of the reasonable period of time .  The 
European Communities therefore considers that its  request in the present case is different in nature 
from the one made by Brazil in Cotton .  The European Communities asserts as one reason for 
requesting such a finding the possibility that it woul d have implications for interested parties under 
US municipal law, arguing that since there are entries which have not yet been liquidated, a finding of 
the Panel in this respect may lead the relevant US  authorities to stop proceedings for the collection of 
duties.828  Further, the European Communities indicates that following the US theory on compliance, 
a finding that no measures taken to comply ex isted during the period between 9 April and 
23 April/31 August 2007 could imply that the United St ates should apply the results of its Section 129 
determinations, at least, to entries made on or af ter 9 April 2007 (which is not the case, since the 
Section 129 determinations apply to entries ma de on or after 23 April/3 1 August 2007).  The 
                                                      
824 Supra , paras. 8.201 to 8.213 
825 Supra , paras. 8.214 to 8.218. 
826 European Communities First Written Submission, para s. 99-106; EC Opening Statement, paras. 59-
63. 
827 EC Second Written Submission, paras. 93-101; EC Opening Statement, paras. 59-63.   
828 The European Communities submits that the US delay in compliance allows it to still collect duties 
with respect to a period of time where compliance shou ld have been achieved.  See EC Opening Statement, 
para. 58.  WT/DS294/RW 
 Page 177 
 
 
 European Communities adds, however, that it is not up to the Panel to enter into the analysis of the 
effects of its report in the municipal law or administrative practices of WTO Members.829 
8.224  The United States  argues that Article 21.3 of the DSU does not impose an obligation on the 
Members concerned, but rather provides that Member  with the right to a reasonable period of time 
should immediate compliance be impracticable, a nd that Article 21.3(b) simply identifies the 
reasonable period of time.830  Thus, the United States considers that the European Communities has 
failed to provide a textual basis for its Article 21.3 claim.  The United States notes that Article 21.3 does not, as the European Communities argu es, require WTO Members to comply immediately  with 
the recommendations of adopted DSB reports.  Ra ther, Article 21.3 acknowledges that immediate 
compliance may be impracticable and thus confer s a right on the responding Member to a reasonable 
period of time within which to comply.
831  The United States also argues that the panel report in 
Australia – Salmon  (Article 21.5 – Canada)  does not support the EC position since, in that case, the 
panel simply concluded that the measures taken to comply did not exist at the end of the reasonable 
period of time and made no finding that Aust ralia had breached Article 21.3 or any of its 
subparagraphs as a result.  The United States finds further support for its position in the report of the 
US – Upland Cotton (Article 21.5 – Brazil)  panel.  This panel explained that a finding such as the one 
requested by the European Communities would be of  little relevance to the effective resolution of 
disputes.  Finally, the United States considers that the European Communities would have to 
substantiate its assertions about the operation of US municipal law with evidence and that, further, as 
the European Communities appears to have realized itself, it would be inappropriate for the Panel to 
engage in such an inquiry in the context of this dispute. 
2. Evaluation by the Panel 
8.225  The EC request raises the questions of whethe r it is within our mandate and, assuming it is 
within our mandate, whether it would be appropriate, for us to make findings not only with respect to 
the US implementation of the DSB recommendations and rulings as of the date of the establishment of this Panel, but also during the period of time that preceded the en try into force of the US measures 
taken to comply.
832   
8.226  It is not clear to us that Article 21.3, includi ng subparagraph (b) thereof, provides a legal basis 
for the finding requested by the Eu ropean Communities.  But even if it were assumed that it does, we 
consider that it is neither necessary, nor appropriate , as a matter of judicial economy, for us to make 
the finding requested by the European Communities.  Article 21.5 does not specify with respect to 
what date the assessment of the "existence or consis tency ... of measures taken to comply" is to be 
conducted.  Yet,  several compliance panels ( US – Upland Cotton (Article 21.5 – Brazil) , EC – Bed 
Linen (Article 21.5 – India) ), have determined that the relevant da te is that of the establishment of the 
compliance panel.833  We agree with this approach, even  though we recognize that one panel 
                                                      
829 The European Communities submits that the US delay in compliance allows it to still collect duties 
with respect to a period of time where compliance should have been achieved.  See EC Opening Statement, 
para. 58. 
830 US First Written Submission, paras. 103-107. 
831 US Second Written Submission, paras. 70-71. 
832 The European Communities specifies that it is not  seeking a finding that no US measure taken to 
comply existed at the end of the reasonable period of time ; rather the European Communities seeks a finding on 
the absence of any US measure taken to comply during a period of time  from 9 April (the date on which the 
reasonable period of time ended) to 23 April/31 August 2007 (the dates on which the US Section 129 determinations came into effect).   
833 US – Upland Cotton (Article 21.5 – Brazil) , paras. 9.64-9.71 , EC – Bed Linen (Article 21.5 – India) , 
para. 6.28 ; see also Panel Report, United States – Import Prohibition of Certain Shrimp and Shrimp Products – 
Recourse to Article 21.5 of the DSU by Malaysia ("US – Shrimp (Article 21.5 – Malaysia) "), WT/DS58/RW, 
adopted 21 November 2001, upheld by Appellate Body Report, WT/DS58/AB/RW, DSR 2001:XIII, 6529, WT/DS294/RW  
Page 178  
 
 (Australia – Salmon (Article 21.5 – Canada))  considered it appropriate to also make findings with 
respect to the situation that prevailed until the entry into force of the measures taken to comply.
834  
8.227  In any case, it is not in dispute that the factua l situation, non-existence of the US measures 
taken to comply, and more specifically, of the Secti on 129 determinations, that forms the basis of the 
EC claim had ceased to exist at the time of the estab lishment of this Panel.  As a result, like the US - 
Upland Cotton (Article 21.5 – Brazil)  panel, we consider that making the finding requested by the 
European Communities would be of little relevance to  the effective resolution of the dispute between 
the parties, and without practical implications  as to the obligations of the United States.835  We note, 
in respect of the latter, that th e European Communities seek s to justify its request by indicating that 
the finding it seeks may have implications under US law.  The mandate of this Panel flows from its 
establishment under the provisions of the DSU, which concern the resolution of disputes concerning 
the consistency of Members' measures with the cove red agreements.  We do not  consider that it would 
be appropriate for us to make findings that are ot herwise not necessary to the resolution of the dispute 
which is before us on the basis that they may have  implications in the national legal system of the 
responding Member.  Nor do we cons ider it appropriate to take such potential effects into account in 
discharging our duties under the DSU.  Indeed, th e European Communities itself seems to have 
realized that it would be inappropriate for a WTO pa nel to engage in an analysis of such effects.836  
We therefore decline to make the finding re quested by the European Communities.   
G. EC CLAIMS OF VIOLATIONS CONCERNING CERTAIN SECTION 129 DETERMINATIONS  
8.228  In this section of our report, we examine the EC claims concerning certain of the measures 
taken by the United States to comply – the Section 129 determinations in cases 2,837 3,838 4,839 5840 and 
11.841  The European Communities cons iders that the Section 129 determinations in these cases are 
inconsistent with various provisions of the Anti-Dumping Agreement  and of the GATT 1994.   
1. EC claims with respect to the Section 129 determination in case 11 (Stainless Steel Sheet 
and Strip in Coils from Italy) 
(a) Main arguments of the parties 
8.229  The European Communities  submits that the United Stat es committed, and then failed to 
remove, an obvious calculation error in its Section 129 determination in case 11.842  The Section 129 
determination in that case concerned one manuf acturer/exporter of the subject product, ThyssenKrupp 
Acciai Speciali Terni S.p.A. and ThyssenKrupp AST USA (collectively "TKAST").843  The European 
                                                                                                                                                                     
paras. 5.12-5.13.  The requests for findings examined (and rejected) by the Bed Linen and Cotton panels were 
made under Article 21.5 of the DSU. 
834 Panel Report, Australia – Salmon (Article 21.5 – Canada) , para. 7.30.  In fact, while the European 
Communities relies on the findings of this panel in support of its claim, we note that the Salmon  panel made its 
findings under Articles 21.5 and 22.6 of the DSU, not Article 21.3.  See Panel Report, Australia – Salmon 
(Article 21.5 – Canada) , paras. 7.30 and 8.1(i). 
835 Panel Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 9.67. 
836 EC Answer to Panel Question 42. 
837 Stainless Steel Bar from France.   
838 Stainless Steel Bar from Germany. 
839 Stainless Steel Bar from Italy. 
840 Stainless Steel Bar from the United Kingdom. 
841 Stainless Steel Sheet and St rip in Coils from Italy. 
842 EC First Written Submission, paras. 112-123. 
843 See Exhibits EC-6, EC-7 and EC-8 for, respectively, the Notice of Section 129 determination of 
26 September 2007, the general Issues and Decision Memoranda for the various Section 129 determinations of 
9 April 2007 (postponing the USDOC's decision with respect to case 11), and the Issues and Decision  WT/DS294/RW 
 Page 179 
 
 
 Communities submits that in the original investiga tion, the USDOC incorrectly  calculated the average 
unit value of 84 TKAST US sales, to which the USDOC applied a "facts available" rate.  The 
European Communities submits that the USDOC, in it s calculation, erroneously inverted the fraction:  
it divided the total volume of the sales by their total value, instead of dividing the total value by the 
total volume.  This error artificially inflated the unit value, and therefore, the amount of dumping 
found.  The European Communities argues that despit e realising this obvious error, the USDOC failed 
to correct it in the Section 129 determination, but rather considered that any alleged clerical or 
computational error unrelated to the implementation of the USTR instructions was outside the scope 
of the Section 129 proceeding.  The European Comm unities notes that, without zeroing, the original 
duty imposed by the USDOC was reduced from 11.23 per cent to 2.11 per cent.  Had the USDOC 
eliminated the calculation error, the European Communities alleges th at the margin would have been 
negative, and thus, the United States would have had to revoke the measure.844   
8.230  The European Communities claims that the erro r renders the Section 129 determination in 
case 11 inconsistent with Article 2 of the Anti-Dumping Agreement , as it affected the overall 
determination of the dumping margin, and with Article 6.8 and Annex II of the Anti-Dumping 
Agreement because the United States, by making the e rror, failed to correctly apply the facts 
available.  Further, the European Communities cl aims that the failure to revoke the measure is 
inconsistent with Article 5.8 of the Anti-Dumping Agreement  and that the United States violated 
Articles 11.1 and 11.2 of the Anti-Dumping Agreement  by keeping the duties in force, and Articles 9.3 
of the Anti-Dumping Agreement  and VI:2 of the GATT 1994 since, because of the error, the amount 
of anti-dumping duty exceeds the margin of dumping. 
8.231  The European Communities considers that the ca lculation error can be challenged in this 
proceeding because it was actually committed in the Section 129 proceeding, as in that proceeding, the United States repeated exactly the calculation error that had been made in the original 
determination.
845  Further, the European Communities consider s that it is not possible to separate one 
of the elements of the calculation of the dumping margin from the rest of the calculation of the 
dumping margin in the Section 129 determination.  In contrast to EC – Bed Linen (Article 21.5 – 
India) , both the error and the zeroing methodology aff ect the calculation of the dumping margin, 
which the United States had to "bring in to conformity with its obligations".846  E v e n  i f  i t  w e r e  
assumed that the error is not part of the "measu re taken to comply", the European Communities 
submits that it would fall under the scope of the proceeding as having a "particularly close 
                                                                                                                                                                     
Memorandum in the Section 129 determination in case 11, published on 20 August 2007.  TKAST's case brief 
in the Section 129 proceedings befo re the USDOC is found in Exhib it EC-22, and the Notice of Final 
Determination and Notice of Amended Final Determination in the original investigations are, respectively, 
found in Exhibits US-23 and US-24. 
844 The European Communities adds that since the measure remains in force, it is subject to further 
amendments through new administrative reviews where th e duty rates will be increased automatically if the 
United States continues applying simple zeroing in future administrative reviews. 
845 EC Second Written Submission, paras. 104-122; see also EC Opening Statement, paras. 65-76.  The  
European Communities recalls that Article 21.5 panels are to review  the totality of claims relating to the 
consistency of "measures taken to comply" with the covere d agreements, with the excep tion of claims that were 
raised in the original proceeding and rejected by the panel and/or the Appellate Body ( res judicata ).  See also 
EC Opening Statement, para. 69, where the European  Communities argues that the fact that the USDOC 
decided, at the last moment, to disregard the claim on the clerical error and stated so  in its decision shows that 
the error (and particularly the decision to fail to correct it) was part of the measure taken to comply. 
846 EC Opening Statement, paras. 71-73.  See also EC Answer to Panel Question 46, in which the 
European Communities argues that, in the present case,  the use of the wrong set of data by the USDOC has an 
impact on the re-determination of dumping.  In that Reply, the European Communities also notes a statement 
made by the US – Countervailing Measures on Certain EC Products (Article 21.5 – EC ) panel and argues that, 
in the present case, the data sets for the purpose of carrying out a new dumping margin determination in the 
Section 129 determinations concerned are part of the measure taken to comply. WT/DS294/RW  
Page 180  
 
 relationship to the declared 'measure taken to co mply'" or having a suffici ently close nexus to the 
measure taken to comply because it was part of th e calculation exercise to determine the new amount 
of dumping in the Section 129 determination, and th at it artificially inflated the unit value, and 
therefore the dumping margin. 
8.232  The European Communities clarifies that it is not arguing that all allegations of errors in 
original determinations need to be revisited in a S ection 129 proceeding, but that the error at issue is a 
blatant, simple arithmetical one, and therefor e should have been addressed.  The European 
Communities considers that the USDOC could not re main passive and refuse to correct its mistake.
847 
The USDOC should, in this particular case, haven taken into account all claims of errors, and had 
enough time to do so:  the Section 129 determinati on was delayed for four months because the 
USDOC was examining the claims brought by the di fferent interested parties (TKAST, as well as US 
producers); the USDOC decided to do so even if the scope of the Section 129 determination was, 
allegedly limited to recalculating the margins of dumping by applying a methodology without zeroing.  Thus, the European Communities argues, th e examination of the claims concerning errors 
made by the USDOC in the calculation of the new margin of dumping was part of the Section 129 
determination.  It also notes that the United States has taken into account and corrected errors in other 
Section 129 proceedings and therefore could have correct ed the error but refused to do so in this case. 
8.233  The United States
848 argues that the EC claim falls outside the Panel's terms of reference 
because the European Communities could have made th at claim in the original proceeding but failed 
to do so and that, as a result, the DSB made no find ings with respect to the alleged error and only 
made findings with respect to zeroing.  The United States considers that the calculation error issue is 
entirely separate from the zeroing issue.  The United States  clarifies that the USDOC did not actually 
commit the error in the Section 129 proceeding, it onl y reran its computer programme so that zeroing 
was not applied.849  The USDOC made no other change to th e data or the programme in recalculating 
the margins of dumping.  The United States consid ers that the error alleged by the European 
Communities is "separable" from the rest of the Sec tion 129 determination.  Relying on the Appellate 
Body report in EC – Bed Linen (Article 21.5 – India) , the United States recalls that an unchanged 
aspect of the original measure is not part of th e measure taken to comply; the mere fact that a 
particular analysis is incorporated into a redete rmination does not render that analysis part of the 
measure taken to comply.850  In this case, the alleged error had nothing to do with the 
recommendations and rulings in this dispute,  which were limited to the use of zeroing.851  T h e  
United States also considers that the EC alterna tive argument alleging a close connection or nexus, is 
inapposite as there is not, in this case, a third measure, such  as there was in US – Softwood Lumber IV 
(Article 21.5 – Canada) .   
8.234  The United States also argues that the Eu ropean Communities has failed to present a prima 
facie  case of violation in respect of its claim.  Esse ntially, the United States ar gues that the European 
Communities limits itself to identifying and citing the provision it relies upon, and states that the 
calculation error breaches the provision, without making any legal arguments.  Further, the 
                                                      
847 The European Communities relies on the Appellate Body Report, United States – Transitional 
Safeguard Measure on Combed Cotton Yarn from Pakistan ("US – Cotton Yarn "), WT/DS192/AB/R, adopted 
5 November 2001, DSR 2001:XII, 6027, para. 73 and  Panel Report, United States – Countervailing Duties on 
Certain Corrosion-Resistant Carbon Steel Flat Products from Germany ("US – Carbon Steel "), WT/DS213/R 
and Corr.1, adopted 19 December 2002, as modified by Appellate Body Report, WT/DS213/AB/R, 
DSR 2002:IX, 3833, para. 8.118 for the proposition that investigating authorities cannot remain passive in the 
face of shortcomings in evidence submitted to them .  See EC First Written Submission, para. 116 and EC 
Second Written Submission, para. 120 
848 US First Written Submission, paras. 74 ff. 
849 US Second Written Submission, paras. 53-63. 
850 See US Answer to Panel Question 46. 
851 US First Written Submission, para. 77; US Answer to Panel Question 46.    WT/DS294/RW 
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 United States argues that the European Communities h as not demonstrated that if all claims of error 
(including those made by the petitioners in the S ection 129 proceeding) were taken into account, the 
margin would have been negative or less than de minimis .  Indeed, the United States considers that, 
depending on which errors would have been corrected  in the Section 129 determination, it is possible 
that the resulting margin would have been higher than the 2.11 per cent margin calculated in the 
Section 129 determination.   
8.235  The United States submits852 that US – Carbon Steel,  on which the European Communities 
relies, concerned the question of whether an investig ating authority is required to consider relevant 
factual evidence already on the reco rd before it.  The issue in the present dispute is different, and 
concerns whether a compliance proceeding is the a ppropriate venue to advance a claim that could 
have been brought in the original proceeding.  The United States argues that the need for finality of 
proceedings and for equitable treatment of all par ties formed the basis for the USDOC's decision not 
to correct any of the errors alleged in relation to the original investigation and that the Appellate Body 
has recognized the need for investigating authoriti es to establish procedures "in the interest of the 
orderly administration" of the proceedings, including setting and enforcing deadlines.853  T h e  
United States notes that during the Section 129 proceeding, both TKAST and the US producers 
(petitioners) argued that the USDOC should correct a lleged errors.  The USDOC rejected all requests 
– by both exporters or petitioners – to correct cler ical errors and therefore consistently and even-
handedly confined its Section 1 29 proceedings to complying with the DSB recommendations and 
rulings.  Finally, the United States considers that the test proposed by th e European communities – 
that "obvious mistakes" should be treated differently  from other allegations of error in a Section 129 
determinations – is not found in the Anti-Dumping Agreement  or the DSU, and would create more 
problems that is solves.  And it is irrelevant  whether the USDOC may, in other Section 129 
proceedings, have corrected errors.   
(b) Main arguments of the third parties 
8.236  Korea  considers that there clearly seems to be a clerical error in the Section 129 
determination in case 11.  Further, Korea submits that although an instruction from the USTR may not 
have included a reference to the effect that the USDOC should ensure that there does not exist any 
clerical error in the course of the new calculation,  it should be axiomatic that such a reference is 
always implied in all such instructions.854 
(c) Evaluation by the Panel 
8.237  The first question we must resolve is whethe r the EC claim with respect to the alleged 
calculation error in the Section 129 determination in case 11 falls within our terms of reference. 
8.238  We note in this respect that there is no di spute between the parties that the European 
Communities did not make any claims with respect to  the alleged calculation error in the context of 
the original dispute.855  The European Communities indicates that  it did not make any such claim in 
                                                      
852 US First Written Submission, para. 85. 
853 The United States refers to the Appellate Body Report in United States – Anti-Dumping Measures 
on Certain Hot-Rolled Steel Products from Japan ("US – Hot Rolled Steel "), WT/DS184/AB/R, adopted 23 
August 2001, DSR 2001:X, 4697, para. 73, and the Appellate Body Report in US – Oil Country Tubular Goods 
Sunset Reviews , para. 241. 
854 Korea's Answer to Panel Question 22 to the third parties.   
855 The parties agree that TKAST raised the issue of the calculation error in the context of the Section 
129 proceeding before the USDOC, but disagree to some extent as to whether and when the alleged error was 
raised in the context of proceedings before the US authorities.  The European Communities submits that TKAST raised the calculation issue in the context of the original  investigation, in the course of requesting amendments 
to the original investigation determination to correct  for ministerial errors.  See EC Answer to Panel WT/DS294/RW  
Page 182  
 
 the original proceeding because according to its own calculations, the margin of dumping for TKAST 
would be reduced to zero once it was recalculated without zeroing.   
8.239  We consider that the EC claim with respect  to the alleged calculation error constitutes a new 
claim with respect to an unchanged  aspect of the original measure, the determination in the original 
investigation, which the European Communities could have made , but did not make , in the original 
dispute .  For this reason, we conclude that the Eu ropean Communities is precluded from raising this 
claim in this Article 21.5 proceeding. 
8.240  Our reasoning finds support in previous panel a nd Appellate Body decisions, in particular the 
panel report in US – Countervailing Measures on Certai n EC Products (Article 21.5 – EC) .  The  
panel in US – Countervailing Measures on Certai n EC Products (Article 21.5 – EC)  considered a 
claim by the European Communiti es that the United States should ha ve re-conducted its likelihood-of-
injury determination in the context of a sunset review re-determination in  which the USDOC made a 
new likelihood-of-dumping determination.  The pane l concluded that this claim concerned an aspect 
of the measure that was not a measure taken to comply.
856  But, of relevance to our analysis, the panel 
added that even if it were to consider that the aspect  of the measure in question were an aspect of the 
measures taken to comply, it would nevertheless still ha ve concluded that the EC claim was not within 
its mandate.857  The panel noted that the EC claim concerne d aspects of the original measure that were 
unchanged and were not cha llenged in the original proceedings.  It reasoned that the purpose of an 
Article 21.5 proceeding is to provide an expeditio us procedure to establish whether a Member has 
properly implemented the DSB recommendations and rulings and that admitting such a new claim 
would mean providing the European Communities with  a second chance to raise a claim that it had 
failed to raise in the original proceeding.858  It added that: 
"Moreover, the Panel is concerned that  allowing a new claim on the likelihood-of-
injury in the current proceedings may jeopardize the principles of fundamental fairness and due process.  In our view, it w ould be unfair to expose the United States 
to the possibility of a finding of violation on an aspect of the original measure that the 
United States was entitled to assume was c onsistent with its obligations under the 
relevant agreement given the absence of a finding of violation in the original report. 
                                                                                                                                                                    
 
Question 45.  The United States considers that the Eu ropean Communities fails to identify where the USDOC 
"refused to correct the error" in th e amended original investigation determination.  The United States also 
questions whether the error challenged in the context of the original investigation "w as connected" to the error 
alleged by the European Communities in the present proceeding.  Finally, the United States adds that TKAST 
challenged the alleged error before th e United States Court of  International Trade ("CIT"), and that the CIT 
rejected TKAST's claim.  See US Co mments on EC Answer to Panel Question 45.  We also note that, as 
indicated in the summary of the parties' arguments, in the context of the prolonged proceeding for case 11 in the 
Section 129 proceeding,  TKAST also raised a handful of other alleged er rors, and the domestic producers also 
raised errors or other issues which they considered the USDOC should take into account if it were to entertain 
TKAST's request for revision.  The USDOC declined to cons ider any of these allegations  of error.  See Exhibit 
EC-8, p.  4.  We do not consider, however, that whether the alleged error was raised by TKAST in the course of 
proceedings before the USDOC or the CIT is relevant to our conclusion in this case.   
856 Panel Report, US – Countervailing Measures on Certain EC Products (Article 21.5 – EC) , 
paras. 7.31 and 7.72.   
857 Panel Report, US – Countervailing Measures on Certain EC Products (Article 21.5 – EC) , 
para. 7.73.   
858 Panel Report, US – Countervailing Measures on Certain EC Product (Article 21.5 – EC) , para. 7.74.  
We note that the panel seemed to dr aw an analogy with Appellate Body d ecisions to the effect that a party 
cannot cure the failure to include a claim in the panel request by raising the claim in subsequent submissions or 
statements.  We consider the requiremen t to include a claim in the panel request, contained in Article 6.2 of the 
DSU, to be distinct from the issue of the constraints or limits on the claims that can be  raised under Article 21.5 
of the DSU; as a result, we do not consider prior panel and Appellate Body decisions on Article 6.2 of the DSU 
to be particularly relevant to the question before us.  WT/DS294/RW 
 Page 183 
 
 
 In sum, permitting the European Communiti es to introduce a new claim on an aspect 
of the original measure that was never challenged and remained unchanged raises 
serious issues regarding the United States' due process rights.  On balance, the utility 
of an Article 21.5 proceeding should not override the basic due process rights of the 
parties to a dispute."859 
8.241  The US – Countervailing Measures on Certain EC Products (Article 21.5 – EC)  panel 
reached this conclusion after review ing prior Appellate Body decisions  with respect to the scope of 
measures that can be challenged and the claims that can be made in an Article 21.5 proceeding.  The 
panel explained that while prior A ppellate Body jurisprudence seemed to indicate that a party is not 
precluded from raising claims that it did not raise in the original proceedings, provided that these 
claims concern the measures taken to comp ly and are included in the Panel request860, the Appellate 
Body's reasoning for the inclusion of new claims in the scope of Article 21.5 proceedings in these past 
decisions was that "the 'measure taken to comply' may be  inconsistent   with WTO obligations in ways 
different from the original measure".  By contrast, the question before that panel – and the question 
before us – is whether this conclusion should also apply to new claims where the measure taken to 
comply is unchanged from the original measure  and thus, allegedly inconsistent with WTO 
obligations in ways identical to  (not different from ) the original measure.861 
                                                      
859 Panel Report, US – Countervailing Measures on Certain EC Products , (Article 21.5 – EC)   
paras. 7.75-7.76. 
860 The panel reviewed the Appellate Body decisions in Canada – Aircraft (Article 21.5 – Brazil) , US – 
FSC (Article 21.5 – EC) (Appellate Body Report, United States – Tax Treatment for "Foreign Sales 
Corporations" – Recourse to Article 21.5 of the DSU by the European Communities , WT/DS108/AB/RW, 
adopted 29 January 2002, DSR 2002:I, 55) and EC – Bed Linen (Article 21.5 – India) .  This analysis led the 
panel to conclude that an Article 21.5 panel can consider a new claim on an aspect of the measure taken to comply that constitutes a new or revised element of the original measure, which claim could not have been 
raised in the original pro ceedings (this was the case in Canada – Aircraft (Article 21.5 – Brazil)  and US – FSC 
(Article 21.5 – EC) ).  On the other hand, the panel noted, an Article 21.5 panel cannot consider the same claim 
on an aspect of the measure taken to comply that is  an unchanged element of th e original measure and was 
already challenged in  the original proceeding and dism issed in an adopted report ( EC – Bed Linen  (Article 21.5 
– India)  and US Shrimp (Article 21.5 – Malaysia) ).  The panel noted, however, that none of these reports 
explicitly address a situation in which new claims are rais ed which refer to aspects of the original measure that 
were not changed by the responding Member during the implementation, although, allegedly, they should have 
been changed.  Panel Report,  US – Countervailing Measures on Certain EC Products , (Article 21.5 – EC),  
paras. 7.64-7.65. 
861 Panel Report, US – Countervailing Measures on Certain EC Products  (Article 21.5 – EC)   
paras. 7.55-7.56. This same panel considered that another "new" claim of the European Communities was 
properly before it.  The claim con cerned the evidence considered by th e USDOC in its revised likelihood-of-
subsidization analysis:  in its Section 129 determination, the USDOC changed the basis for its affirmative likelihood-of-subsidization finding, and the panel found that even though the USDOC's treatment of evidence in 
the Section 129 determination might appear to be unchanged compared to the original sunset reviews, the 
USDOC had modified the basis for its determination and th at, as a result, the relativ e importance of the evidence 
in question had changed.  The panel thus considered that this second "new" claim concerned an aspect of the 
measure taken to comply that had changed  vis-à-vis  the original measure and co ncluded that the European 
Communities could not have meaningfully raised the treatment of evidence in the original proceeding.  The panel also noted that Article 21.5 pro ceedings aim to ensure the effective resolution of di sputes by providing the 
complaining Member with an expeditious procedure to challenge the implementation of the DSB 
recommendations and rulings and that it could therefore consider new claims "arising from the implementation."  Further, the panel considered that permitting the new claim did not unduly deprive the United States of its due 
process rights as the United States ha d itself introduced the issue of treatme nt of evidence by revising the entire 
likelihood-of-subsidization determination and by changing th e legal basis of its determination.  As a result, the 
United States could have anticipated a claim on th e USDOC's treatment of evidence.  Panel Report, US – 
Countervailing Measures on Certain EC Products (Article 21.5 – EC) ,  paras. 7.69-7.70. WT/DS294/RW  
Page 184  
 
 8.242  We agree with the US – Countervailing Measures  on Certain EC Products  (Article 21.5 – 
EC) panel that the scope of Article 21.5 of the DSU is  not so broad as to allow a complaining party to 
make claims that it could have made, but did not make, in the original proceeding, with respect to aspects of the original measure at issue that we re incorporated, but remained unchanged, in the 
measure taken to comply.  We find further support for this proposition in the following statement of 
the Appellate Body in US – Upland Cotton (Article 21.5 – Brazil) :  "A complaining Member 
ordinarily would not be allowed to raise claims in an Article 21.5 proceeding that it could have 
pursued in the original proceedings, but did not."
862 
8.243  Of course, the calculation of TKAST's margin of dumping in the  Section 129 determination, 
and the use of zeroing in this calculation, is closel y linked to the issue of the set of data used to 
calculate the dumping margin.  Yet, we consider th at the calculation error alleged by the European 
Communities concerns an aspect of the Section 129 determination in case 11 that is unchanged from 
the original determination.863  Further, the alleged error is distin ct from any of the claims made by the 
European Communities in the original dispute, which related only to the issue of the use of zeroing by 
the USDOC in calculating the margin of dumping; the error is not a consequence of the use of zeroing 
in the original dispute, and the recalculation of th e margin of dumping without zeroing did not lead to 
or affect the alleged error, or even affect its significance in the overall WTO-consistency of the calculation of the margin of dumping.  In this  sense, we consider that the claims of the 
European Communities relate to a part of the S ection 129 determination that has remained unchanged 
from the original measure, and that that part can be  "separated" from the remainder of the Section 129 
determination for the pur pose of this proceeding.
864  
8.244  Thus, we find that the European Communities c ould have raised the a lleged calculation error 
in the original dispute and that, having failed to do so, the United States was not obligated to amend its original measure in this respect.  We therefore find that the EC claim with respect to the alleged 
error in the calculation of TKAST's dumping margin  is not one which the European Communities 
could properly make in the contex t of this Article 21.5 proceeding.
865  As a result, we find that the EC 
claims in respect of the Section 129 determina tion in case 11 are not prope rly before us, and we 
therefore make no findings on the substance of the EC claims in this respect.   
                                                      
862 Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 211.   
863 The European Communities relies on the fact that the USDOC repeated  the error in the Section 129 
determination; also, while its arguments in this respect  are not very clear, the European Communities seems to 
argue that the error became part of the Section 129 dete rmination because the USDOC postponed its 
determination in case 11 because of the allegations of erro r by TKAST.  We are not co nvinced by this argument 
of the European Communities – however  it is presented, the alleged calculation error was committed in the 
original determination, and the same alleged error was simply reproduced in the Section 129 determination as a 
result of the USDOC having simply re-run the data thr ough a modified computer pr ogramme that eliminated 
zeroing but was otherwise unchanged.   
864 As a consequence of our analysis that the alleged error concerns an unchanged aspect of the original 
measure, we do not consider that we need to examine further the parties' argument as to whether the calculation 
error is part of the measure taken to comply; we also  need not decide whether the alleged calculation error 
should be found to be part of that measure on the basis of the close nexus  argument put forward by the 
European Communities. 
865 We might well have reached a different conclusi on had the European Co mmunities brought a claim 
against the alleged calculation error in the original dispute and had the original panel or the Appellate Body 
decided to exercise judicial economy with  respect to such a claim.  But that is not the case before us.  It is clear 
to us that the European Communities made a conscious choice not to raise the alleged error in the original 
dispute and, in our view, that choice has c onsequences in this compliance proceeding.  WT/DS294/RW 
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 2. EC claims with respect to the Section 129 determinations in cases 2, 3, 4 and 5 (Stainless 
Steel Bar from France, Germany, Italy and the United Kingdom) 
(a) Introduction and authority of the Panel to a ddress claims with respect to revoked measures 
8.245  The European Communities makes two groups of  claims with respect to the Section 129 
determinations in cases 2, 3, 4 and 5.  The first gr oup of claims concerns the issue of whether, as a 
result of the recalculation of the margins of dum ping in these Section 129 determinations, and the 
resulting exclusion of certain exporters, the Un ited States should have revisited the injury 
determination in the original determination in these cases.  The second group of claims by the 
European Communities concerns the new "all others" rates established as a result of the Section 129 
determinations in cases 2, 4 and 5.   
8.246  The United States argues that both groups of cl aims concern measures that have been revoked 
and that the Panel should therefore decline to rule on them.866  The United States indicates that the 
anti-dumping orders covering Stainless Steel Bar from France, Italy, Germany and the United Kingdom were revoked, effec tive 7 March 2007, as a result of sunset reviews later adopted in 
these cases and that, therefore, it no longer mainta ins anti-dumping duties on products subject to these 
orders.
867  
8.247  The European Communities868 asks us to make findings on its claims notwithstanding the fact 
that the AD orders at issue have been revoked.   The European Communitie s submits that several 
panels have in the past considered that the fact that a challenged measure is no longer in effect does 
not necessarily prevent a Panel from assessing its conformity with the covered agreements.869 
8.248  The European Communities had initially argued that the revocation of the anti-dumping 
orders could not be regarded as definitive as a successf ul legal challenge to the sunset review at issue 
could result in a reinstatement of the orders.  The United States subsequently informed the Panel that 
an appeal of the determination that lead to the re vocation had been dismissed, meaning that revocation 
of the orders is now final.870  The European Communities has submitted that the United States may 
                                                      
866 US First Written Submission, paras. 54, 62-64 a nd Exhibit US-13, Revocation of Antidumping Duty 
Orders on Stainless Steel Bar From France, Germany, Italy, South Korea, and the United Kingdom and the Countervailing Duty Order on Stainless Steel Ba r From Italy (73 FR 7258, 7 February 2008). 
867 The United States indicates that cash deposits on  any imports on or after 7 March 2007 will be 
refunded. 
868 EC Second Written Submission, paras. 125-127, 132-134. 
869 See footnote 97 of the EC Second Written Submission, in which it refers to Panel Report, United 
States – Measure Affecting Imports of Woven Wool Shirts and Blouses from India  ("US – Wool Shirts and 
Blouses ") WT/DS33/R, adopted 23 May 1997, upheld by Appellate Body Report, WT/DS33/AB/R, DSR 
1997:I, 343, para. 6.2; Panel Report, Chile – Price Band System and Safeguard Measures Relating to Certain 
Agricultural Products  ("Chile – Price Band System "), WT/DS207/R, adopted 23 October 2002, as modified by 
Appellate Body Report, WT/DS207AB/R, DSR 2002:VIII, 3127, para. 7.112; Panel Report, Indonesia – Autos , 
para. 14.9; Panel Report, India – Autos , para. 7.26 and Appellate Body Report, Argentina – Textiles and 
Apparel , para. 64; and EC Answer to Panel Question 47 in  which, in addition, it refers to Panel Report, 
Dominican Republic – Cigarettes , para. 7.343, Panel Report, Argentina – Measures Affecting Imports of 
Footwear, Textiles, Apparel and Other Items ("Argentina – Textiles and Apparel "), WT/DS56/R, adopted 
22 April 1998, as modified by Appellate Body Report, WT/DS56/AB/R, DSR 1998:III, 1033, paras 6.14-6.15,  
Panel Report, Japan – Measures Affecting Consumer Photographic Film and Paper ("Japan – Film "), 
WT/DS44/R, adopted 22 April 1998, DSR 1998:IV, 1179, para 10.58, and Panel Report, United States – 
Standards for Reformulated and Conventional Gasoline  ("US – Gasoline "), WT/DS2/R, adopted 20 May 1996, 
as modified by Appellate Body Report, WT/DS2/AB/R, DSR 1996:I, 29, para 6.19.  While the findings of these 
panels were made in the context of original disputes , the European Communities considers that they equally 
apply in the context of an Article 21.5 dispute (EC Answer to Panel Question 47). 
870 US Opening Statement, para. 27, referring to Exhibit US-33. WT/DS294/RW  
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 take similar measures in the future , which would lead to the need fo r an aggrieved Member to bring a 
new legal challenge.
871 
8.249  In this case, the Section 129 determinations at issue were still in effect on the date of the 
establishment of this Panel .  Only later (in February 2008) were they revoked, with retroactive effect 
to March 2007. As the measures were in existence on the date of our establishm ent, we consider that 
they fall within our terms of reference and that we  have the authority to make findings on the WTO-
consistency of these US measures taken to comply.872 Of course, any finding of inconsistency with 
respect to a measure that is no longer in effect  will not affect any remaining US obligation to 
implement the DSB's recommendations and rulings.   
8.250  We do not agree with the European Communities that a potential repetition of the alleged 
inconsistencies with the provisions cited by the European Communities is a relevant consideration 
that warrants us making findings on the US measures at  issue.  It is not disputed that the anti-dumping 
orders have now been definitively revoked.  Any future similar in consistency on the part of the 
United States with the provisions cited by th e European Communities would therefore necessarily 
arise in the context of another dispute.873  That said, we consider it appropriate to make findings on 
the EC claims with respect to the revoked measu res challenged by the European Communities.  As 
indicated above, the measures were revoked several m onths after the establishment of this Panel.  We 
have elsewhere indicated that we would examine th e existence and WTO-consistency of US measures 
taken to comply as of that date.  Making the fi ndings requested by the European Communities is 
consistent with our overall approach in this dispute and, in our view, fulfils the mandate assigned to us 
by the DSB.  
8.251  We now proceed to examine the two groups of EC claims in respect of the Section 129 
determinations in cases 2, 3, 4 and 5. 
(b) EC claims with respect to "injury" – Secti on 129 determinations in cases 2, 3, 4 and 5 
(i) Main arguments of the parties 
8.252  The European Communities claims that the United States failed to reassess its findings of 
injury in light of the new volume of non-dump ed imports resulting from the conclusion in the 
Section 129 determinations in cases 2 to 5 that a number of exporters found  to be dumping in the 
original investigation were not dumping or had de minimis margins.874 In particular, the European 
                                                      
871 The European Communities argues that "it is likel y that, unless this Panel issues a ruling on these 
matters, the United States would repeat the same actions ".  EC Answers to Panel Question 47; see also EC 
Answer to Panel Question 52 ("unless this Panel issues a finding  with respect to the measures at issue in this 
case ... the dispute between the parties will continue and would have to be repeated  in the context of other 
dispute settlement proceedings").  See al so EC Opening Statement, para. 79. 
872 The US – Stainless Steel (Mexico) panel noted that:   
"There is no specific provision in the DSU that addresses whether a WTO panel may or may 
not make findings and recommendations on a measure which, while within the panel's terms of reference at the outset of the panel proceedings, subsequently expires.  We note, however, 
that this is not a novel issue in WTO dispute settlement proceedings.  This specific issue has 
arisen in a number of cases, and panels, taking  into consideration the particularities of the 
disputes before them, have used their discretion in deciding whether making findings on an 
expired measure would be appropriate in each case."
  
Panel Report, United States – Final Anti-Dumping Me asures on Stainless Steel from Mexico  ("US – 
Stainless Steel (Mexico) "), WT/DS344/R, adopted 20 May 2008, as modified by Appellate Body Report, 
WT/DS344/AB/R Panel Report, para. 7.48. (footnote omitted) 
873 We recall that the findings of the original panel we re that the challenged measures were inconsistent 
"as applied".   
874 EC First Written Submission, paras. 144-153, EC Opening Statement, para. 82.  WT/DS294/RW 
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 Communities argues that the United States disregarded the fact that, after the recalculation of margins 
without zeroing, on average around 75 per cent of the volume of imports which had been considered 
to be  dumped could no longer be considered as such.  The European Communities submits that this is 
inconsistent with Articles 3.1, 3.2, 3.5, 5.8 of the Anti-Dumping Agreement  and Article VI:1 of the 
GATT 1994, arguing that in these cases, the United States, through the Section 129 determinations, 
maintained anti-dumping duties without establishing (i) whether the remaining amount of dumped 
imports was causing injury to the domestic injury; and (ii) whether this volume of dumped imports 
was not negligible.  The European Communities s ubmits that a number of WTO panels have found 
that the term "dumped imports" in Articles 3.1, 3.2 and 3.5 of the Anti-Dumping Agreement  does not 
include imports by producers or exporters  for which no dumping was found or for which de minimis  
margins were calculated.875 
8.253  The United States  submits that the European Communities is precluded from pursuing its 
claims before this Panel as the European Comm unities asserted these claims in the original panel 
proceeding, and the original panel declined to c onsider them, which resulted in the DSB making no 
recommendations and rulings with respect to these clai ms.  The United States therefore considers that 
it was under no obligation to take a measure to comply in respect of the original injury 
determinations.876  Further, the original panel did not exercise judicial economy with respect to these 
claims, but rather found the EC claims unavailing, and that no ch ange to the original injury 
determination was necessary to effect implementa tion, stating that it "perceive[d] no need to 
pronounce on the dependent claims raised by the European Communities" under, inter alia , these 
provisions.  Had the original panel believed that  the United States was oblig ated to conduct a new 
injury analysis in light of revised volumes attributable to non-zeroed margins of dumping, then it 
would have been necessary for th e panel to decide those claims in order to provide additional 
guidance as to the steps the United States had to u ndertake.  And the United States would then have 
been on notice that the original panel considered rec onsideration of aspects of the injury analysis to be 
the necessary result of any change in the volume of dumped imports.  The United States considers 
that, like the original panel, this Panel should not rule on these claims since deciding such dependent 
claims would provide no additional guidance as to the steps the United States would have to take in 
order to implement the recommendation regard ing the violation on which it is dependent.877  While 
the European Communities argues that  the claims concerns new measures, its claims are not "new"; 
rather, the European Communities is trying to resuscitate failed claims from the original dispute.  The 
Appellate Body has clarified that adopted reports must been accepted by the parties to a compliance 
dispute and that compliance panels should decline to revisit original panel a nd Appellate Body reports 
that have been adopted and accepted by the parties.878 
8.254  In any case, the United States submits that irr espective of how one characterizes the findings 
of the original panel, it disagrees that in US – Oil Country Tubular Goods Sunset Reviews  
(Article 21.5 – Argentina) , the Appellate Body indicated that a Member may, before an Article 21.5 
panel, repeat a claim with respect to which the or iginal panel exercised judicial economy.  In that 
compliance dispute, the Appellate Body simply obser ved that the "participants have characterized the 
original panel's approach as an exercise of judicial economy" and did not itself express a view as to 
                                                      
875 The European Communities refers to Panel Report, Argentina – Definitive Anti-Dumping Duties on 
Poultry from Brazil ("Argentina – Poultry Anti-Dumping Duties "), WT/DS241/R, adopted 19 May 2003, 
DSR 2003:V, 1727, para.7.303, which itself referred to the findings of the panels in European Communities – 
Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India  ("EC – Bed Linen "), WT/DS141/R, 
adopted 12 March 2001, as modified by Appellate Body Report, WT/DS141/AB/R, DSR 2001:VI, 2077) and EC – Bed Linen (Article 21.5 – India) .  See EC First Written Submission, para. 147. 
876 US First Written Submission, para. 64. 
877 The United States also notes that the Appellate Body did not disturb the original panel's treatment of 
these claims. 
878 US Second Written Submission, paras. 65-69. WT/DS294/RW  
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 whether such a characterization of the original panel's approach was correct.
879  Finally, the 
United States considers that the European Communiti es has failed to substantiate its assertions.  The 
EC arguments on injury assume that an "incorrect" volume of dumped imports automatically constitutes a breach of Articles 3.1, 3.2, 3.5, and Article VI:1 of the GATT 1994.  Nothing in the text of those provisions suggests that the mere exis tence of differences in the volume of the dumped 
imports suffices to prove that the entire injury determination is flawed.
880 
8.255  The European Communities  responds that its claims with respect to the Section 129 
determinations at issue are not "dependent clai ms" as the United States has characterized them.  
Rather, they relate to new measures (the Section 129 determinations), against which new claims can 
be made, and with respect to which the Europ ean Communities is asking for a finding from this 
Panel.881  Further, the European Communities consider s that the United States mischaracterizes the 
treatment of the EC claims on injury by the original panel.  The panel in the original dispute did not 
reject the EC claims.  Rather, the panel exerci sed judicial economy since the EC claims were 
consequential of the violation in calculating the dumping margin.  This was explicitly acknowledged 
by the Appellate Body.  The fact that the panel in the original dispute consid ered that resolving these 
claims would not provide guidance in terms of implementation does not mean that the United States 
was under no obligation to conduct its injury analysis  anew.  Panels are not obliged to address all the 
aspects of a measure.  Nor can panels foresee how the Member concerned is going to implement the ruling and recommendation and, thus, cannot foresee a ll possible new violations which might arise in 
connection with measures taken to comply.  To th e contrary, the obligation to bring the measure 
found WTO-inconsistent into conformity relates to the Member concerned, which is obliged to do 
everything which is necessary for the measure taken to comply to be consistent with the covered 
agreements as a whole.
882  The Appellate Body, in US – Oil Country Tubular Goods Sunset Reviews 
(Article 21.5 – Argentina) , held that a claim relating to an asp ect of a measure on which the panel in 
the original proceeding had exercised judicial econom y was properly within the scope of Article 21.5 
of the DSU.883  Therefore, the European Communities argu es that the claim in the present case is also 
properly before this Panel.884  
(ii) Evaluation by the Panel 
Whether the EC claims are properly before us 
8.256  The United States asks that we decline to  examine the EC claims because the 
European Communities "raised these claims in the original proceeding, and the original panel 
affirmatively declined to make findings on them" a nd the Appellate Body noted the panel's action and 
did not disturb it.885  The US arguments rely on the principle, recognized by the Appellate Body in, 
inter alia , EC – Bed Linen (Article 21.5 – India) that the findings of an original panel rejecting certain 
claims, including because the claimant failed to make a prima facie  case, and that are not reversed on 
appeal are res judicata .886  However, contrary to the US arguments, this principle does not apply in 
                                                      
879 US Answers to Panel Questions 51-52, US Comments on EC Answer to Panel Question 51. 
880 US Answer to Panel Question 52. 
881 EC Second Written Submission, para. 134. 
882 EC Comments on US Answer to Panel Question 51. 
883 The European Communities adds that the US – Upland Cotton (Article 21.5 – Brazil) panel agreed 
with its reading of the Appellate Body findings in US – Oil Country Tubular Goods Sunset Reviews 
(Article 21.5 – Argentina) (Appellate Body Report, United States – Sunset Reviews of Anti-Dumping Measures 
on Oil Country Tubular Goods from Argentina – Recourse to Article 21.5 of the DSU by Argentina ("US – Oil 
Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) "), WT/DS268/AB/RW, adopted 
11 May 2007) .  EC Answer to Panel Question 51. 
884 EC Opening Statement, paras. 84-85, EC Answer to Panel Question 51. 
885 US Opening Statement, para. 26. 
886 Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 93.  WT/DS294/RW 
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 the present case.  The original panel declined to make  findings with respect to the EC "injury" claims 
in the following terms:   
"The Panel also perceives no need to prono unce on the dependent claims raised by 
the European Communities under Articles 1; 3.1, 3.2 and 3.5; 5.8; 9.3; and 18.4 of the Anti-Dumping Agreement , Articles VI:1 and VI:2 of the GATT 1994 and 
Article XVI:  4 of the WTO Agreement.  Deciding such dependent claims would 
provide no additional guidance as to the step s to be undertaken by the United States 
in order to implement our recommendation regarding the violation on which it is dependent."
887 
In the footnote to this paragraph, the panel added: 
 
"Our decision not to make findings on depe ndent claims is consistent with the 
approach followed in recent panel reports , including, for example, Panel Report, US – 
Softwood Lumber V , para. 7.378; Panel Report, Argentina – Poultry Anti-Dumping 
Duties , para. 7.369; Panel Report, US – Softwood Lumber VI , para. 8.4"888 
8.257  There is no doubt in our mind that the original panel exercised judicial economy  with respect 
to the EC claims concerning "injury".  This is al so how the Appellate Body interpreted the original 
panel's treatment of the EC claims.889  In fact, the original panel's tr eatment of the EC claims seems to 
be a straightforward instance of a panel exercising judicial economy, that is, declining to address certain claims because the measure at issue has already been found to be inconsistent with other 
provisions of the covered agreemen ts.  Here, as we understand it, the original panel considered that 
the measures at issue (specific original investig ation determinations) were  inconsistent with the 
covered agreements as a result of inconsistency with Article 2.4.2 a nd that any additional violation of, 
inter alia , paras. 3.1, 3.2, 3.5 and 5.8 of the Anti-Dumping Agreement  would be a result of the 
                                                     
 
887 Panel Report, US – Zeroing (EC) , para. 7.34.  The United States identified para. 7.109 as the 
paragraph in which the original panel (according to the United States) made a finding with respect to the EC "injury" claims.  In our view, the more relevant paragraph is 7.34, since it is in this paragraph that the panel 
addressed the EC "as applied" claims with respect to th e original investigations at issue in that dispute; 
paragraph 7.109 relates to the panel's examination of the EC "as such" claims with respect to original investigations.  In any case, with the exception of the fo otnote attached to paragraph 7.34, which is not repeated 
in paragraph 7.109, both paragraphs are identical.  See also para. 8.2 of the report of the original panel: 
"We have also concluded that it is not necessary for us to make findings on the claim of the 
European Communities that the application of the model zeroing method in the investigations 
listed in Exhibits EC-1 to EC -15 was inconsistent with Articles 1, 2.4, 3.1,3.2,3.5,5.8,9.3 and 18.4 of the AD Agreement , Articles VI:1 and VI:2 of the GATT 1994 and Article XVI:4 of the 
WTO Agreement, and on the claim of the Euro pean Communities that the Standard Zeroing 
Procedures used by USDOC in original investiga tions are inconsistent as such with Articles 1, 
2.4 3.1, 3.2, 3.5, 5.8, 9.3 and 18.4 of the AD Agreement , Articles VI:1 and VI:2 of the GATT 
1994 and Article XVI:4 of the WTO Agreement."(footnotes omitted). 
888 Panel Report, US – Zeroing (EC) , footnote 134. 
889 Appellate Body Report, US – Zeroing (EC) , footnote 12: 
"Panel Report, para. 8.1.  The Panel decided to exercise judicial economy and did not rule on 
the European Communities' claim that the application of model zeroing in the investigations listed in Exhibits EC-1through EC-15 was inconsiste nt with Articles 1, 2.4, 3.1, 3.2, 3.5, 5.8, 
9.3, and 18.4 of the Anti-Dumping Agreement, Articles VI:1 and VI:2 of the GATT 1994, and 
Article XVI:4 of the WTO Agreement.  The Panel also exerci sed judicial economy  on the 
European Communities' claim that the Standard Zeroing Procedures used by the USDOC in 
original investigations are inconsistent, as such, with Articles 1, 2.4, 3.1, 3.2, 3.5, 5.8, 9.3, and 
18.4 of the Anti-Dumping Agreement, Artic les VI:1 and VI:2 of the GATT 1994, and 
Article XVI:4 of the WTO Agreement.  (Ibid., para. 8.2)" (emphasis added). 
 WT/DS294/RW  
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 Article 2.4.2 violation, and that making findings with respect to these additional claims would 
contribute little to the resolution of the dispute since the measures had already been found to be 
inconsistent with the covered agreements.  In  any case, the panel neither made a finding of 
inconsistency nor a finding of c onsistency with the provisions cited by the European Communities.  
As a result, we fail to see how the issue could be res judicata .  We therefore reject the US argument 
that the original panel's conclusion that to ru le on the claims would have provided no additional 
guidance as to the steps to be undertaken by the Un ited States to implement transformed the panel's 
exercise of judicial economy into a negative ruling on the EC claims. 
8.258  The parties disagree whether the findings of the Appellate Body in US – Oil Country Tubular 
Goods Sunset Reviews (Article 21.5 – Argentina)  stand for the proposition th at Article 21.5 allows the 
reassertion, in a compliance dispute, of a claim w ith respect to which an original panel exercised 
judicial economy.  The Appellate Body has observed in this regard:     
"EC – Bed Linen (Article 21.5 – India)  concerned a claim for which the complainant 
was found not to have made out a  prima facie  case in the original proceedings.  This 
is not what occurred in the original proceedi ngs in the present case.  The participants 
have characterized the original panel's a pproach as an exercise of judicial economy.
320  
We do not express a view on whether this is a proper characterization of the approach taken by the original panel.  In any event, even if the original panel's approach should 
properly be characterized as judicial economy, it would still mean that the central 
rationale of the Appellate Body in  EC – Bed Linen (Article 21.5 – India)  would not 
be applicable .321  The Appellate Body explained that  the issue raised in that case 
differed 'from a situation where a panel, on  its own initiative, exercises 'judicial 
economy' by not ruling on the substance of a claim.322 
______________ 
320 Panel Report, para. 7.89 and footnote 56 thereto. 
321  In  EC – Bed Linen  (Article 21.5 – India) , the Appellate Body referred to situations where 
there was a finding of WTO-consistency or the complainant had failed to make out a prima 
facie  case in the original proceedings.  (Appellate Body Report, EC – Bed Linen (Article 21.5 
– India) , para. 96)  See also Appellate Body Report, US – Shrimp (Article 21.5 – Malaysia) , 
para. 97. 
322 The Appellate Body went on to  indicate that, "in a situation wh ere a panel, in declining to 
rule on a certain claim, has provided only a partial resolution of the matter at issue, a 
complainant should not be held responsible for the panel's false exercise of judicial economy, such that a complainant would not be prevented from raising the claim in a subsequent 
proceeding." (Appellate Body Report,  EC – Bed Linen (Article 21.5 – India) , footnote 115 to 
para. 96).
"890 
8.259  It is not totally clear to us whether the di scussion of this issue by the Appellate Body US – Oil 
Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina)  is more properly regarded as an 
obiter dictum , or as an additional reason as why the claims at issue in that case were properly before 
the compliance panel.  In any case, it is beyond doubt that the Appellate Body's findings in US – Oil 
Country Tubular Goods Sunset Revi ews (Article 21.5 – Argentina)  indicate that the conclusion in the 
EC – Bed Linen (Article 21.5 – India)  dispute regarding res judicata  does not apply in cases where the 
original panel exercised judicial economy with respect  to the claims at issue, and the Appellate Body 
                                                      
890 Appellate Body Report, US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – 
Argentina) , para. 148 and corresponding footnotes (italics original, underline added).  WT/DS294/RW 
 Page 191 
 
 
 did not  make any findings with respect to the claims either.  The US – Upland Cotton (Article 21.5 – 
Brazil) panel understood the Appellate Body 's findings in the same manner. 891 
8.260  Further, in our view, one of the considerati ons underlying the principle that a Member may 
not make before a compliance panel a claim whic h it did not make, but could have made, in the 
original dispute, and may not, in a compliance pr oceeding, repeat a claim which it made in the 
original dispute but which was rejected by the or iginal panel, is that due process entails that a 
complainant should not be afforded a "second ch ance" to make its case.  Such due process 
considerations do not arise in a case where the origin al panel exercised judicial economy with respect 
to certain claims made and argued before it.892 
8.261  The United States argues that it could not be under an obligation to comply with respect to the 
EC claims on "injury" and that had the panel made such findings, it would have been "on notice" that 
the original panel considered the reconsideration of  aspects of the injury anal ysis to be the necessary 
result of the change in dumped imports.  In our view, these arguments are devoid of merit.  In our 
view, the United States could not "assume" that the injury determination was consistent with the 
covered agreements; the United States was put on notice, by the EC claims in the original dispute, that 
the European Communities consid ered the injury determinati ons to be flawed because of, inter alia , 
the same inconsistencies with the Anti-Dumping Agreement  that the European Communities now 
raises again.  Thus, in our view, the United States was aware that the injury determination could be 
challenged in a compliance dispute.893   
                                                      
891 Panel Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 9.26 ("the Appellate Body recently 
held that a claim relating to an aspect  of a measure on which the panel in the original proceeding had exercised 
judicial economy was properly within the scope of Article 21.5 of the DSU") . 
892 See also, by analogy, Appellate Body Report, US – Upland Cotton (Article 21.5 – Brazil) , para. 210, 
where the Appellate Body distinguishes the situation in that case (the Appellate Body reversed the original 
panel's findings but was unable to complete the analysis) from the situation addressed in  EC – Bed Linen 
(Article 21.5 – India) , and notes that because Brazil's claims had not been resolved on the merits in the original 
proceedings, allowing Braz il's claims in the compliance dispute would not raise the concern that Brazil get a 
"second chance" to make a case it had failed to make out in the original proceedings such that the finality of the 
DSB's recommendations and rulings would be compromised.   
893 We also note, in this respect, certain statements made by the Appellate Body in US – Oil Country 
Tubular Goods Sunset Reviews (Article 21.5 – Argentina) , in response to arguments of the United States that 
because the original panel did not make a finding of inco nsistency as to its volume analysis, it was placed in a 
position of having to guess that the panel "might have  thought" that there were WTO-inconsistencies with 
respect to that aspect of the measure, and that a respon dent whose measure is found to be WTO-inconsistent for 
the first time by a compliance panel is not given a "reasonab le period of time" to bring itself into conformity:   
"On the basis of the original panel's conclusions, the USDOC could not assume that its 
findings regarding the alleged decline in the volume of imports were WTO-consistent.  The United States was given a 'reasonable period of time' to bring the USDOC's likelihood-of-
dumping determination into compliance following the adoption by the DSB of the panel and 
the Appellate Body reports in the original proceedings.  Moreover, Argentina's arguments relating to the finding on import volumes were not raised for the first time in these 
Article 21.5 proceedings.  Inst ead, the parties have offered ar guments and counter-arguments 
on the issue twice, first in the original proceeding s, and then in these Article 21.5 proceedings.  
Additionally, we do not believe that Argentina is unfairly getting a 'second chance', as would 
be the case where a panel or the Appellate Body  had found the measure to be WTO-consistent 
in the original proceedings, or that the complainant failed to make out a  prima facie  case.   
 
Furthermore, we recall that the aim of Article 21.5 of the DSU is to promote the prompt 
compliance with DSB recommendations and rulings  and the consistency of "measures taken to 
comply" with the covered agreements by maki ng it unnecessary for a complainant to begin 
new proceedings and by making efficient use of the original panelists and their relevant WT/DS294/RW  
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 8.262  Second, it would, in our view, be a denial of th e complainant's right to seek the resolution of a 
dispute under the DSU to prevent it from raising,  in a compliance dispute, a claim on which the 
original panel declined to rule as a matter of judicial economy.  The Appellate Body, in EC – Bed 
Linen (Article 21.5 – India) , stated that "in a situation where a pa nel, in declining to rule on a certain 
claim, has provided only a partial resolution of the matter at issue, a complainant should not be held 
responsible for the panel's false exercise of judici al economy, such that a complainant would not be 
prevented from raising the claim in a subsequent proceeding."
894  We agree.895 
8.263  Thus, insofar as the EC claims relate to an asp ect of the measure that was challenged in the 
original dispute, but with respect to which the original panel exercised judicial economy and did not rule, the European Communities is not  prevented from repeating them befo re this panel.  Even if we 
were to consider that the EC claims concern a new measure (a new original investigation in the form 
of the Section 129 determination), we would come to the same conclusion, that is, that the EC 
"injury" claims are properly before us.  In fact, we note that the arguments ma de by the United States 
in the original dispute suggest that this "new" claim could not properly have been made in the original 
dispute.
896  While before the original panel, the effect of the violation found on the injury 
determination, if any, could not have been eval uated, the situation is different now that the 
United States has recalculated the dumping margins,  and the resulting volume of dumped imports can 
be determined.897 
8.264  The EC claims raise the issue of the extent of  an implementing Member's obligation to take 
further action where the changes effected as a r esult of "implementation" allegedly affect other 
aspects of the original measure which were not the subject of any of any findings in the original 
dispute.  In this case, the original panel's findings  addressed an inconsistency in the calculation of the 
margin of dumping, whereas the EC claims before us relate to the injury analysis – a different aspect 
of the original measure, which was not revisited in the Section 129 determinations.  Yet, the DSB 
recommended that the United States bring its measures ( i.e. the anti-dumping measures based on the 
determinations in the original investigations at i ssue) into conformity with its obligations under the 
                                                                                                                                                                     
experience.  These considerations support the Panel's finding that the volume analysis was 
properly before it."  
Appellate Body Report, US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) , 
paras. 150-151.  (footnotes omitted). 
894 Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , footnote 115, cited by the Appellate 
Body in US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) , footnote 322 .   
895 In our view, it does not matter wh ether the original panel's exercise  of judicial economy was "false" 
– what matters is that the complaining Member did not obta in a finding with respect to its claim as a result of 
exercise of j udicial economy. 
896 See paras. 4.119-4.120 of the report of the original panel: 
"The European Communitie s cannot establish that USDOC nece ssarily would have calculated 
zero or de minimis dumping margins in the cite d cases, or that the USITC treated certain non-
dumped imports as dumped.  In the absence of such showings, the United States contends that 
the European Communities has failed to meet its burden to demonstrate that any of the cited 
determinations by the USITC is inconsis tent with Articles 3.1, 3.2, and 3.5. 
 
The United States notes that the European Communities, in response to the Panel's 
Question 32, does not deny that its claims as to such measures are merely speculative, given 
that the European Communities cannot presume the results of an alternative margin 
calculation methodology permitted by the AD Agreement.  According to the United States, the 
European Communities instead adopts the new position that the use of so called zeroing somehow renders the injury determinations necessarily "unsound".  The 
European Communities does not ex plain, however, how the use of zeroing necessarily caused 
the volume of dumped imports to be inflated, or how zeroing otherwise gives rise to an Article 3 claim." 
897 Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 86.  WT/DS294/RW 
 Page 193 
 
 
 Anti-Dumping Agreement  and the GATT 1994.  In this sense, the EC claims now before us relate to 
an omission  on the part of the United States to bring its measures into conformity with its obligations 
under the Anti-Dumping Agreement  and the GATT 1994.898  Further, we note that past panel and 
Appellate Body decisions indicate that the effect of  the findings of inconsistency and of the actions 
taken by the implementing Member is relevant to  determining the scope of the measure taken to 
comply.899  The European Communities alleges that th e United States could not, in implementing the 
DSB's recommendations and rulings, limit itself to modifying the dumping margin calculations, without also revisiting its injury determination.  In this sense, the European Communities seeks to 
challenge an aspect of the original measure whic h has not changed, but which should have been 
changed in order to comply with the DSB recommenda tions and rulings to bring the measure at issue 
in the original dispute, the original anti-dumping meas ure, based on the determinations in the original 
investigation, into consistency with US obligations under the Anti-Dumping Agreement  and the GATT 
1994.  In light of the relevance of the volume of dum ped imports to the injury determination, there is 
no question in our minds that the EC claims fall within our term s of reference as relating to a 
"measure taken to comply".
900       
Substance of the EC claim 
8.265  The substance of the EC claim is that the United States, having recalculated (without zeroing) 
the margins of dumping in cases 2, 3, 4 and 5, and having found that so me exporters were not 
dumping or had de minimis  dumping margins, maintained the anti-dumping duties without 
establishing (i) whether the resulting volume of dum ped imports was causing injury to the domestic 
industry, and (ii) whether this volume of dumpe d imports was not negligible.  The European 
Communities alleges that this is inconsistent with Articles 3.1, 3.2, 3.5, and 5.8 of the Anti-Dumping 
Agreement  and Article VI:1 of the GATT 1994.  The Eu ropean Communities notes in particular that 
the United States disregarded the fact that, after the recalculation of dumping margins without zeroing, approximately 75 per cent (on average) of the volume of imports which had originally been 
considered as dumped could no longe r be considered as dumped.   
8.266  Article 3.1 of the Anti-Dumping Agreement  provides:   
"A determination of injury for purposes of  Article VI of GATT 1994 shall be based 
on positive evidence and involve an objective examination of both (a) the volume of 
the dumped imports  and the effect of the dumped imports  on prices in the domestic 
                                                     
 
898 In other words, the EC claims concerns the no n-existence of a measure taken to comply.  See 
Appellate Body report, Canada – Aircraft (Article 21.5 – Brazil) , para. 36 ("In our view, the phrase 'measures 
taken to comply' refers to measures which have been, or which should be , adopted by a Member to bring about 
compliance with the recommendations and rulings of the DSB." (emphasis added)) and Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 79 ("the mandate of Article 21.5 panels is to examine either the 
'existence' of 'measures taken to comply' or, more frequently, the ' consistency with a covered agreement ' of 
implementing measures" (emphasis original)).  Even though the Section 129 determinations only concern the dumping margin calculations and do not explicitly address the injury determination, in our view they can be 
regarded as resulting in a revised basis for the imposition the anti-dumping measure that comprises both the 
revised dumping determination and the original injury dete rmination. The fact that th ese are, in the US system, 
determinations that are made by separate agencies has, in our view, no relevance to how they should be 
considered by a compliance panel examining the existence or WTO-consistency of measures taken to comply 
899 See, inter alia , US – Countervailing Measures on Certain EC Products (Article 21.5 – EC) , paras. 
7.28-7.29, Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , paras. 85-86; see also Appellate Body 
Report, US – Oil Country Tubular Goods Sunset Reviews (Article 21.5 – Argentina) , para. 148.     
900 See also Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 86: 
"The  amount   of dumped imports will, of course, have an impact on the assessment of the  effects   of 
the "dumped imports" for the purposes of determining  injury."   WT/DS294/RW  
Page 194  
 
 market for like products, and (b) the consequent impact of these imports  on domestic 
producers of such products."(emphasis added) 
8.267  Thus, Article 3.1 requires that a determination of injury be based on positive evidence and an 
objective examination of the volume of dumped imports and of the effects on price of dumped 
imports, and of the consequent impact of these dumped imports on the domestic industry.  Article 3.2 
sets out more specific guidance for the consideration of the volume and price effects of dumped 
imports while Article 3.5 provides further guida nce in determining the causal link between the 
dumped imports and any injury to the domestic i ndustry.  Finally, Article 5.8 requires that the 
investigating authorities terminate an investigation as soon as, inter alia , the authorities are satisfied 
that there is not sufficient evidence of either dumping or of injury to justify proceeding with the case. 
8.268  Several panels have expressed the view that the term "dumped imports" in Article 3 refers to 
all imports attributable to producers or exporte rs for which a margin of dumping greater than de 
minimis  has been calculated and excludes imports from producers and exporters found in the course of 
the investigation not to have dumped.
901  The Appellate Body, in addressing the question whether 
imports from all unexamined producers could be treated as "dumped imports" for the purposes of 
injury analysis in EC – Bed Linen (Article 21.5 – India)  observed that "[n]one of the provisions of 
[Articles 3.1, 3.2, 3.5] of the Anti-Dumping Agreement  can be construed to s uggest that Members may 
include in the volume of dumped imports the imports from producers that are not found to be 
dumping".902  Further, the Appellate Body noted that:   
"[I]f a producer or exporter is found to be dumping, all imports from that producer or 
exporter may be  included  in the volume of dumped imports, but, if a producer or 
exporter is found  not  to be dumping, all imports from that producer or exporter must 
be  excluded  from the volume of dumped imports."903  
8.269  More recently, the EC – Salmon (Norway)  panel found that the European Communities had 
acted inconsistently with Articles 3.1 and 3.2 by treating as "dumped" imports attributable to an 
exporter for which it had calculated a de minimis  dumping margin:   
"We can conceive of no rational basis on which the imports which are not legally 
cognizable as 'dumped' because a de minimis  margin has been calculated for the 
producer/exporter in question could be in cluded in the volume of dumped imports 
taken into account in assessing the question of  injury.  In our view, the consequences 
from a determination that there is no lega lly cognizable dumping must be taken into 
account in the injury analysis. ... 
We consider that an interpretation of 'dumped imports' in Article 3 which would 
allow an investigating authority to include in the volume of dumped imports for purposes of injury analysis imports attri butable to a producer/exporter for which a de 
minimis margin has been calculated is impermissi ble. ... A consistent interpretation of 
the term 'dumped' requires that such impo rts be excluded from the "dumped imports" 
considered in the analysis of in jury (and causation, of course)."
904 
                                                      
901 See Panel Report, Argentina – Poultry Anti-Dumping Duties , para. 7.303; Panel Report, EC – Bed 
Linen , para. 6.138; Panel Report, EC – Bed Linen (Article 21.5 – India) , para. 6.131; Panel Report, European 
Communities – Anti-Dumping Measure on  Farmed Salmon from Norway ("EC – Salmon (Norway) ") 
WT/DS337/R, adopted 15 January 2008, discussed, infra , para. 8.269. 
902 Appellate Body Report, EC –  Bed Linen (Article 21.5 – India) , para. 112. 
903 Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 115.   
904 Panel Report, EC – Salmon (Norway) , paras. 7.627-7.628.  WT/DS294/RW 
 Page 195 
 
 
 8.270  In this case, the European Comm unities asserts that, once the Unit ed States had concluded, in 
the Section 129 determinations, that some of the imports previously found to be dumped were not 
dumped, after margins of dumping were re-calculated without zeroing, it did not reconsider its injury 
determination and therefore failed to base its in jury determination on positive evidence and an 
objective examination of the correct volume of dum ped imports, as required by Article 3.1 of the 
Anti-Dumping Agreement .  Further, the European Communities asser ts that by failing to reconsider its 
injury determination, the United States also failed to  comply with Article 3.2, with respect to the 
determination of the volume of dumped imports, any increase (in absolute or relative terms) in dumped imports, and the effect of dumped imports  on prices, and acted inconsistently with the 
Article 3.5 of the Anti-Dumping Agreement  with respect to the determination that dumped imports 
were through the effects of dumping causing injury , and the examination of other known factors, 
including the new volume of non-dumped imports.   
8.271  We consider that the Euro pean Communities has made a prima facie  case that the volume of 
dumped imports had changed, and that as a conseque nce, the injury determination was not based on 
consideration of "dumped" imports with in the meaning of Articles 3.1 and 3.2.
905  The volume of 
imports considered as dumped in the original injury  determinations in the cases at issue necessarily 
included imports which could not properly be treated as dumped following the Section 129 
determinations.  Thus, we are of the view that th e United States was obliged to  reconsider the injury 
determination in cases 2, 3, 4 and 5 in light of volumes of dumped imports determined based on the Section 129 determinations in those cases.  Having failed to do so, the injury determinations are 
necessarily inconsistent with Artic les 3.1, 3.2, and 3.5 of the Anti-Dumping Agreement .   
8.272  In light of the above findings, we do not cons ider it necessary to address the EC claims under 
Articles 5.8 of the Anti-Dumping Agreement  and VI:1 of the GATT 1994, and make no findings with 
respect to those claims. 
(c) EC claims with respect to the "all others" rate established in the Section 129 determinations in 
cases 2, 4 and 5  
(i) Main arguments of the parties 
8.273  The European Communities  submits that in the Section 129 determinations in cases 2, 4 and 
5, the United States unjustifiably increased the "all others " rates.  The EC claim relates to the fact that 
the Section 129 determination in each case led to th e revocation of the order with respect to some 
exporters and created a situation where all the comp any-specific dumping margins were either zero or 
de minimis or based on adverse facts available.  In each case, the USDOC established a new "all 
others" rate based on a simple weighted average of the zero/ de minimis and facts available rates.  As a 
result, the all others rate increased from 3.9 per cent  to 35.92 per cent in case 2 (Stainless Steel Bar 
from France), from 3.81 per cent to 6.6 per cent in case 4 (Stainless Steel Bar from Italy), and from 4.48 per cent to 83.95 per cent in case 5 (S tainless Steel Bar from the United Kingdom).
906  T h e  
                                                      
905 The European Communities has referred us to its submission before the USITC in the context of 
sunset review proceedings, where it also submitted that 75 per cent of the volume of imports considered to be 
dumped in the original investigation was from exporters for which zero or de minimis  margins were calculated 
in the Section 129 determinations.  European Communities' Brief Pre-Hearing on Stainless Steel Bar from France, Germany, Italy and the Un ited Kingdom, 22 October 2007, Exhibit EC-27.  While the European 
Communities has not provided documentary evidence supporting this 75 per cent figure, the United States has 
not commented on the figure.  Nevertheless, we consider that the European Communities has made a prima 
facie  case that the volume of dumped imports decreased as a result of the Section 129 determinations, and the 
United States does not dispute that the original injury determination was not reconsidered in the context of 
implementation of the DSB's recommendations and rulings. 
906 EC First Written Submission, paras. 124-140.  The European Communities refers to the Issues and 
Decision Memorandum for the Final Results of the Section 129 determinations, 9 April 2007, pp. 23-24 (Exhibit WT/DS294/RW  
Page 196  
 
 European Communities claims that  these increases in the "all others" rates are unreasonable and 
inconsistent with Articles 9.4 and 6.8 and with Annex II of the Anti-Dumping Agreement .  First, the 
European Communities submits that Article 9.4 e xplicitly prohibits the inclusion of zero and/or de 
minimis margins, and of margins based on facts available, in the calculation of "all others" rates.  In 
the three cases concerned, the USDOC relied on all th ree, calculating a weighted average including all 
three types of margins.  The European Commun ities recognizes that the situation faced by the 
USDOC, in which all margins were either zero, de minimis or based on facts available, poses a 
problem, but considers that US law advocates a sen sible approach to this problem, based on the 
concept of reasonableness.  Section 735(c)(5)(B) of the Tariff Act of 1930 provides that, in such a 
situation, the USDOC may use "any reasonable met hod" to establish the all others rate, "including 
averaging the estimated weighted average dump ing margins determined for the exporters and 
producers individually investigated".  The Europ ean Communities argues that the method employed 
by the USDOC in the three cases is not "reasonable" , since in some cases, the all others rate was 
multiplied by up to 19 times without there being any evidence that the underlying behaviour of the affected exporters had changed at all.  An exam ple of a reasonable solution would have been, as the 
European Communities advocated befo re the US authorities, to maintain the original "all others" 
rates.  In any case, the European Communities cons iders that even if Article 9.4 does not indicate 
what to do in a situation such as the one faced by the USDOC in the Section 129 determinations, it 
clearly states what not
 to do, i.e., use zero, de minimis  or facts available margins.907  While Article 9.4 
establishes a ceiling on the dumping margin applicab le to imports from exporters or producers not 
included in the sample, the last part of that pr ovision establishes a condition which always applies 
(that any zero, de minimis , or facts available rate be disregarded) when calculating those margins of 
dumping within the ceiling.908  Thus the European Communities cons iders that there is no need for the 
Panel to resolve the interpretation i ssue raised by the existence of a lacuna  in Article 9.4 given that 
there is no lacuna  as to what the provision requires Members not to do.909 
8.274  Alternatively, the European Communities c onsiders that, absent information on dumping 
margins other than zero, de minimis margins and margins based on adverse facts available, the "all 
others" rate should be zero.  The European Commun ities notes in this respect that the situation arose 
because the duties for the major exporters in thes e cases were revoked after zeroing was eliminated 
from the calculation of their individual dumping margins.  The European Communities asserts that, had the United States disregarded these companies in th e original investigation, it could have selected 
other sources of information in order to  calculate the "all others" rate.   
8.275  In addition, the European Communities argues that basing the "all others" rate on adverse 
facts available also violates Article 6.8 and Annex II of the Anti-Dumping Agreement  because the 
method used by the USDOC in the Section 129 determination in fact moves from a situation where the "all others" rate is based on "facts available" ( i.e., highest rate for a cooperating exporter) to one 
where it is largely based on "adverse inferences" ( i.e., rate for an exporter which has failed to "act in 
the best of its ability to comply with a request for information").  By doing so, the European 
Communities argues, the USDOC effectively determined that exporters subject to the "all others" rate 
                                                                                                                                                                    
 
EC-7).  The European Communities also indicates that the USDOC had originally based the "all others" rates on 
the highest dumping margin for a non-cooperating exporter, thus excluding zero, de minimis and facts available 
margins.  Once the impact of zeroing was removed in the Section 129 determination, all cooperating exporters 
had either zero or de minimis rates.   
907 EC Second Written Submission, para. 128. 
908 EC Answer to Panel Question 48.  The Panel asked the parties "What significance must be given, in 
the resolution of the matter before the panel, to the fact that the prohibition contained in Article 9.4 is expressed 
in terms of a ceiling for the anti-dumping margin that may be applied to imports from exporters or producers not 
individually examined". 
909 EC Answer to Panel Question 49.  WT/DS294/RW 
 Page 197 
 
 
 were guilty of behaviour that would warrant th e application of adverse inferences, without 
demonstrating that such treatment was appropriate.910 
8.276  The United States  argues that the European Commun ities has failed to point to any 
obligation under the Anti-Dumping Agreement  with which the United States has acted inconsistently, 
and that Article 9.4 does not address the situation with which the USDOC was faced in the 
Section 129 determinations, in which all indivi dually calculated rates were either zero, de minimis , or 
based on adverse facts available.  The United St ates also underlines what it considers to be the 
inconsistency of the European Communities' own suggestion that the USDOC should have used the 
original "all others" rates – following the European Communities' logic in the original dispute, the 
original "all others" rates were tainted by the USDOC 's use of zeroing, such that USDOC could not, in 
implementing the DSB recommendations and ruli ngs, simply use those "all others" rates.911  T h e  
United States further submits that Article 9.4 provides a "ceiling" for the "all others" rate.  In order to 
determine this ceiling, certain results from the invest igated companies have to be excluded.  However, 
when the only margins from inv estigated companies are zero, de minimis or facts available margins, 
this simply means that a ceiling cannot be determin ed pursuant to Article 9.4.  Yet, a Member may 
still apply an anti-dumping duty to non-investigated  companies, and under the general principles of 
Article 9.4, that amount may be based on the results of other companies.912  Finally, the United States 
argues that where a lacuna  exists in the covered agreements, the Members have not agreed to be 
bound by any specific obligation; accordingly, th e Panel should not find an obligation where none 
exists.  The Panel should be guide d by those provisions of the covered agreements that address the 
establishment of the "all others" rate in general:  the Ad Note 1 to paragraphs 2 and 3 of Article VI of 
the GATT 1994, for example, provides that "a co ntracting party may require reasonable security 
(bond or cash deposit) for the payment of an y case of suspected dumping or subsidization".  
Moreover, Article 9.4 establishes that the "all others" rate cannot be arbitrary; rather, it provides that 
the "all others" rate is to be based upon the ma rgins of dumping for those producers who have been 
investigated.913  
(ii) Arguments of the third parties  
8.277  Korea  submits that the absence of cooperating, above de minimis respondents does not allow 
an investigating authority to deviate from the clear obligation in Article 9.4.914  Korea adds that it 
would have been impossible for the drafters of the ag reements to set out all the details in resolving a 
particular dispute and a fair amount of discretion has been given to a panel, within the confinement of 
the explicit terms of the relevant provisions, to  apply a reasonable interpretation and render a 
reasonable decision to fill the "loopholes" in the text.915  Therefore, Korea considers it appropriate for 
a WTO panel to assess the reasonableness of an alle gedly WTO-inconsistent measure in resolving a 
dispute involving a provision of a WTO Agreement containing a lacuna .   
(iii) Evaluation by the Panel 
8.278  The EC claims raise the question of what – if any – disciplines apply to the calculation of the 
"all others" rate under Article 9.4 of the Anti-Dumping Agreement  in a case where the only margins of 
dumping that are calculated by the investigating auth ority, and which could therefore serve as a basis 
to establish an "all others" rate, are zero or de minimis margins, or margins based on facts available.  
Article 9.4 provides, in relevant part:   
                                                      
910 EC First Written Submission, paras. 141-143 
911 US Second Written Submission, paras. 48-52. 
912 US Answer to Panel Question 49. 
913 US Answer to Panel Question 50. 
914 Korea's Answer to Panel Question 23 to the third parties. 
915 Korea's Answer to Panel Question 24 to the third parties. WT/DS294/RW  
Page 198  
 
 "When the authorities have limited their examination in accordance with the second 
sentence of paragraph 10 of Article 6, an y anti-dumping duty applied to imports from 
exporters or producers not included in the examination shall not exceed: 
(i) the weighted average margin of du mping established with respect to the 
selected exporters or producers ... 
provided that the authorities shall disregard for the purpose of this paragraph any zero 
and de minimis margins and margins established under the circumstances referred to 
in paragraph 8 of Article 6..."
 916 
8.279  The specific problem we face in the present dispute arises from the fact that Article 9.4 
specifies that the "all others rate" for non-investig ated exporters shall not exceed a certain value, 
equivalent to the weighed average margin of dumpi ng for selected exporters, and that in establishing 
that value, the authorities shall disregard any zero or de minimis margins of dumping or margins based 
on facts available ("margins estab lished under the circumstances re ferred to in paragraph 8 of 
Article 6").  Article 9.4 does not, however, give any guidance as to how that value is to be established 
in a situation where all margins are either zero, de minimis , or based on facts available.  The Appellate 
Body, in US – Hot Rolled Steel from Japan , referred to this as a lacuna  in Article 9.4:   
"This  lacuna arises because, while Article 9.4 prohibits  the use of certain margins in 
the calculation of the ceiling for the 'all others' rate, it does not expressly address the issue of  how  that ceiling should be calculated in the event that  all  margins are to be 
 excluded   from the calculation, under the prohibitions."
917   
8.280  The European Communities submits that while Article 9.4 may not specifically provide how 
the "all others" rate is to be determined in such a case, Article 9.4 nonetheless makes it clear that zero 
or de minimis margins or margins based on facts available sh all not be used in the establishment of the 
"all others" rate. 
8.281  The EC argument is predicated on Article 9.4 setting forth disciplines concerning the 
calculation of an "all others" rate to be applied to exporters and producers who were not included in 
the investigated sample.  However, in our view, Article 9.4 sets forth no such rule.  What that 
provision does is establish a methodology for the calcu lation of a "ceiling" which the "all others" rate 
may not exceed.  What Article 9.4 prohi bits is an "all others" rate that exceeds  the "weighted average 
margin of dumping established with respect to th e selected exporters or producers", not including 
margins of zero, de minimis , or "facts available" margins.  Article 9.4 does not specify a method for or 
impose disciplines on the calculation of the "all others" rate itself.  It is correct, as the 
European Communities points out, that the closing portion of Article 9.4 indicates that the authorities 
                                                      
916 Article 9.4 applies only "[w]hen the authorities have limited their examination in accordance with 
the second sentence of paragraph 10 of Article 6".  The s econd sentence of Article 6. 10 provides that in cases 
where the number of exporters is so large as to make the determination of an individual margin of dumping for each known  exporter, the investigating authorities may limit their examination either to a reasonable number of 
interested parties or products by using samples which are statistically valid or to the largest percentage of the 
volume of the exports from the country in question which can reasonably be investigated.  Thus, the provisions of Article 9.4 only apply to the calculation of an "all others" rate applicable to cooperating exporters who have 
made themselves known to the investigating authorities and not to exporters that have not yet exported or 
exporters that have not come forward to the investigating authorities.  See Panel Report, EC – Salmon (Norway) , 
para. 7.431; Panel Report, Mexico – Rice AD Measures , para. 7.159. 
917 Appellate Body Report, US – Hot Rolled Steel , para. 126 (footnote omitted).  See also Panel Report, 
EC – Salmon (Norway) , paras. 7.350-7.351 where the panel also refers to the lacuna in Article 9.4.  Neither the 
Appellate Body in US –  Hot Rolled Steel  nor the panel in EC – Salmon  (Norway)  were called upon to resolve 
the lacuna .    WT/DS294/RW 
 Page 199 
 
 
 shall disregard "for the purpose of this paragraph" any zero and de minimis margins and margins 
based on facts available.  However, as we have not ed, Article 9.4 nowhere contains any discipline or 
reference to the calculation of the "all others" rate itsel f.  It follows that the prohibition set forth in the 
closing portion of Article 9.4 only applies to the discipline established in that paragraph, i.e., that 
which concerns the calculation of the ceiling  applicable to that "all others" rate.  Indeed, were the 
European Communities correct that Article 9.4 prohib its the use of the three types of margins (zero, 
de minimis , facts available), Article 9.4 would, in situ ations such as the one in the case before us, 
result not only in a lacuna , but in an internal inconsistency:  the EC interpretation could lead to a 
situation where the investigating authorities are barr ed from taking into consideration any and all of 
the margins of dumping calculated in the cour se of the investigation (and not only, as the 
European Communities suggests, tho se based on facts available), and therefore are left with no basis 
on which to establish the "all others" rate.  I ndeed, this case poses that very situation. 
8.282  Our reading of Article 9.4 as only establishi ng disciplines with respect to the "ceiling" 
applicable to the "all others" rate is consiste nt with the findings of the Appellate Body in US – Hot 
Rolled Steel .918  We refer in this respect to the statem ent of the Appellate Body quoted above in 
respect of the lacuna , and to the following description of the prohibition contained in Article 9.4 by 
the Appellate Body:   
"Article 9.4 does not prescribe any method that WTO Members must use to establish 
the 'all others' rate that is actually applie d to exporters or producers that are not 
investigated.  Rather, Article 9.4 simply identifies a maximum limit, or ceiling, which investigating authorities ' shall not exceed  ' in establishing an 'all others' rate.  Sub-
paragraph (i) of Article 9.4 states the genera l rule that the relevant ceiling is to be 
established by calculating a 'weighted averag e margin of dumping established' with 
respect to those exporters or producers who  were   investigated.  However, the clause 
beginning with 'provided that', which fo llows this sub-paragraph, qualifies this 
general rule.  This qualify ing language mandates that, 'for the purpose of this 
paragraph', investigating authorities ' shall disregard  ', first, zero and  de minimis  
margins and, second, "margins establishe d under the circumstances referred to in 
paragraph 8 of Article 6.'  Thus, in dete rmining the amount of the ceiling for the "all 
others" rate, Article 9.4 establishes two  prohibitions .  The first prevents investigating 
authorities from calculating the 'all others' ceiling using zero or  de minimis  margins;  
while the second precludes investigating authorities from calculating that ceiling 
using 'margins established under the circum stances referred to' in Article 6.8."
919   
                                                      
918 In Hot Rolled Steel , the Appellate Body found that Section 735(c)(5)(A) of the US Tariff Act of 
1930 was inconsistent with Article 9.4 because th at provision allowed the use of margins of dumping partly 
calculated on the basis of facts available to be used in the calculation of the "all others" rate.  Appellate Body 
Report, US – Hot Rolled Steel from Japan , paras. 110 ff. 
919 Appellate Body Report, US – Hot Rolled Steel from Japan , para. 116.  We note in particular that the 
Appellate Body makes no reference to any prohibition with respect to the actual "all others" rate and only refers 
to the ceiling that applies to that rate.  Further, the Appellate Body found, in that case, that the US provision 
challenged was inconsistent with Ar ticle 9.4 not because it allowed the ta king into consider ation of margins 
based on facts available in the cal culation of the "all others" rate, bu t because "in cases where margins 
established in part  on the basis of facts available are used to calculate the "all others" rate, the "all others" rate ...  
may well exceed the maximum allowable "all others" rate under Article 9.4 of the Anti-Dumping Agreement "; 
accordingly, the Appellate Body affirmed  the panel's conclusion that Secti on 735(c)(5)(A) of the US Tariff Act 
of 1930 was inconsistent with Article 9.4 "to the extent that [the fact that the Section requires the inclusion of 
margins established in part on the basis of facts available in the calculation of the 'all others' rate] results in an "all others" rate in excess of the maximum allowable rate under Article 9.4".  Appellate Body Report, US – Hot 
Rolled Steel from Japan , paras. 128-129.  See also the reference, by the Appellate Body, to Article 9.4 defining WT/DS294/RW  
Page 200  
 
 8.283  In a situation such as the one that arose in th e Section 129 determinations in cases 2, 4, and 5, 
where all the margins of dumping determined for sel ected exporters and producer fall within one of 
these categories, there are simply no margins of dumping from which the investigating authority or a panel may calculate the maximum allowable "all others" rate.  Thus, in such a case, Article 9.4 simply 
imposes no prohibition, as no ceiling  can be calculated.
920  It follows that there would be no legal 
basis for a panel to conclude that the "all others " rate actually established is inconsistent with 
Article 9.4. We therefore find that the United States  has not acted inconsistently with Article 9.4 of 
the Anti-Dumping Agreement  in establishing new "all others" rates in the Section 129 determinations 
in cases 2, 4 and 5. 
8.284  The European Communities also  raises claims under Article 6.8 and Annex II of the Anti-
Dumping Agreement .  The European Communities argues that calculating the "all others" rate on the 
basis of adverse facts available violates these pr ovisions because the method used by the USDOC in 
the Section 129 determination in fact moves from a situation where the all others rate is based on 
"facts available" to one where it is largely based on "adverse inferences" ( i.e.,  the treatment provided 
for an exporter which has failed to  "act in the best of its ability to comply with a request for 
information").  The European Communities submits  that the USDOC effectively determined that 
exporters subject to the "all others " rate were guilty of behaviour that  would warrant the application of 
adverse inferences, without demonstrating that su ch treatment was appropriate.  We regard these 
claims of the European Communities as dependent on its claims of violation of Article 9.4 and do not 
consider that Article 6.8 and Annex II of the Anti-Dumping Agreement  provide an independent basis 
for a finding of inconsistency where the all "other s rate" at issue is not inconsistent with the 
provisions of Article 9.4.  Having concluded that the United States has not acted in violation of the 
provisions of Article 9.4, we therefore make no findings with respect to the EC claims under 
Article 6.8 and Annex II. 
IX. CONCLUSIONS AND RECOMMENDATION  
9.1 In accordance with our mandate under Article 21.5 of the DSU, we have examined the 
existence or consistency with a c overed agreement of measures taken by the United States to comply 
with the recommendations and rulings adopted by the DS B in the original proceeding.  On the basis of 
the findings above, we conclude that: 
(a) We have no authority to make findings with  respect to the EC claim that the Panel 
was improperly constituted under Articles 8. 3 and 21.5 of the DSU and therefore 
refrain from doing so. 
(b) With respect to the EC general claims of  failure, by the United States, to fully 
implement the recommendations and rulings of the DSB in the original dispute: 
(i) The United States has failed to comply with the recommendations and rulings 
of the DSB in the original dispute and has acted inconsistently with 
Article 9.3 of the Anti-Dumping Agreement  and Article VI:2 of the GATT 
1994 by determining, after the end of  the reasonable period of time, the 
amount of anti-dumping duty to be assessed based on zeroing in the 2004-2005 administrative review in case 1 ( Hot Rolled Steel from the Netherlands ) 
and issuing assessment instructions purs uant to that determination and by 
determining, after the end of the r easonable period of time, the amount of 
                                                                                                                                                                    
 
"the maximum anti-dumping duty" that may be applied to exports from producers not individually examined in 
Appellate Body Report, EC – Bed Linen (Article 21.5 – India) , para. 122. 
920 In the absence of any guidance in the text, we do not consider that it would be appropriate for us to 
fill that gap.  WT/DS294/RW 
 Page 201 
 
 
 anti-dumping duty to be assessed based on zeroing in the 2004-2005 
administrative review in case 6 ( Stainless Steel Wire Rod from Sweden ) and 
issuing assessment instructions pursuant to that determination.  
(ii) The United States has failed to comply with the recommendations and rulings 
of the DSB in the original dispute by continuing to apply to imports of NSK 
cash deposit rates established in the 2000-2001 administrative review in case 
31 (Ball Bearings from the United Kingdom ), a measure which was found to 
be inconsistent with Articles 9.3 of the Anti-Dumping Agreement  and VI:2 of 
the GATT 1994 in the original dispute. 
(iii) The United States has not failed to comply with the recommendations and 
rulings of the DSB in the original dispute by taking actions to liquidate anti-
dumping duties calculated with zeroing pursuant to final duty assessment 
determinations made before the e nd of the reasonable period of time 
(including pursuant to subsequent administrative reviews listed in the Annex to the EC Article 21.5 panel request).  
(iv) The United States has not failed to comply with the recommendations and 
rulings of the DSB in the original dispute by determining, prior to the end of the reasonable period of time, the amount of anti-dumping duty to be assessed based on zeroing in the 2005-2006 administrative review determination in case 1 ( Hot Rolled Steel from the Netherlands ).  
(v) The United States has not failed to comply with the recommendations and 
rulings of the DSB in the original dispute and has not acted inconsistently 
with Articles 2.4.2 and 9.3 of the Anti-Dumping Agreement  and Article VI:2 
of the GATT 1994 by establishing a ne w cash deposit rate based on zeroing 
in the 2004-2005 administrative review determination in case 6 ( Stainless 
Steel Wire Rod from Sweden ) because due to the revocation of the measure in 
question, no cash deposit requirement was actually imposed. 
(vi) Having found that none of the sunset reviews with respect to which the 
European Communities makes claims and which are within our terms of reference had, by the time of the establishment of the Panel, resulted in the continuation of the concerned anti-dumpi ng orders, we make no findings in 
respect of the claims of the Europ ean Communities that the United States 
violated Articles 2.1, 2.4, 2.4.2 and 11.3 of the Anti-Dumping Agreement  as a 
result of having relied on margins of dumping calculated with zeroing in the 
context of sunset reviews involving measures challenged in the original 
dispute.  
(vii) We make no findings with respect to th e EC claim that the United States 
violated Articles 21.3 and 21.3(b) of the DSU by failing to take any measure 
to comply between 9 April and 23 April/31 August 2007. 
(c) With respect to the EC claims that cer tain US measures taken to comply are 
inconsistent with the US obligati ons under the covered agreements: 
(i) Having found that the claim of the European Communities with respect to the 
Section 129 determination in case 11 ( Stainless Steel Sheet and Strip in Coils 
from Italy ) concerning the calculation error is not properly before us, we 
make no findings on the cons istency of that determination with Articles 2, WT/DS294/RW  
Page 202  
 
 5.8, 6.8, 9.3, 11.1 and 11.3 of the Anti-Dumping Agreement  and Article VI:2 
of the GATT 1994 . 
(ii) With respect to cases 2, 3, 4 and 5 ( Stainless Steel Bar from France, 
Germany, Italy and the United Kingdom ), the United States acted 
inconsistently with Articles 3.1, 3.2 and 3.5 of the Anti-Dumping Agreement  
by maintaining the anti-dumping duty orders in those cases without having 
made a determination of injury based  on positive evidence of the volume of 
dumped imports following the recalculation of dumping margins in the Section 129 determinations in these ca ses and consequent changes in the 
volume of dumped imports.  We make no findings regarding the EC claims 
under Article 5.8 of the Anti-Dumping Agreement  and Article VI:I of the 
GATT 1994 in respect of the same measures.  
(iii) With respect to cases 2, 4 and 5  (Stainless Steel Bar from France, Italy and 
the United Kingdom ), the United States did not act inconsistently with 
Article 9.4 of the Anti-Dumping Agreement  in the establishment of "all 
others" rates in the Section 129 determ inations in these cases. We make no 
findings regarding the EC claims unde r Article 6.8 and Annex II of the Anti-
Dumping Agreement  in respect of these same measures. 
9.2 To the extent that the measures taken by  the United States to comply with the 
recommendations and rulings adopted by the DSB in th e original proceeding are inconsistent with the 
obligations of the United States under the covered agre ements, and to the extent that the United States 
has otherwise failed to implement the recommenda tions and rulings of the DSB in the original 
dispute, these recommendations and rulings of the DS B remain operative.  We therefore make no new 
recommendation. 
9.3 The European Communities requests that th e Panel make suggestions as to how the 
United States should bring its measures into conf ormity with its obligations under the covered 
agreements.
921  We note that Article 19.1 of the DSU states that WTO panels may suggest ways 
through which the Member concerned could implement their recommendations.922  Having in this 
Report provided our views with respect to US actions  taken, or not taken, to implement the rulings 
and recommendations in the original dispute, as well as on the scope of the US obligation to implement, we see no reason to make any suggesti on to the United States and therefore decline the 
EC request. 
_______________ 
 
                                                     
 
921 See supra , para. 4.4 and footnote 50. 
922 Article 19.1 of the DSU provides that: 
"Where a panel or the Appellate Body concludes that a measure is inconsistent with a covered agreement, it shall recommend th at the Member concerned  brin g the measure into conformity 
with that agreement.  In addition to its recommendations, the panel or Appellate Body may 
suggest ways in which the Member concerned could implement the recommendations." (footnotes omitted).  WT/DS294/RW 
 Page A-1 
 
 
  ANNEX A 
 
 
REQUEST FOR THE ESTABL ISHMENT OF A PANEL 
 
 
 
Contents Page 
Annex A-1 Request for the Establishment of a Panel by the European 
Communities A-2 
 WT/DS294/RW 
Page A-2  
 
  ANNEX A-1 
 
REQUEST FOR THE ESTABL ISHMENT OF A PANEL 
BY THE EUROPEAN COMMUNITIES 
 
 
 WORLD TRADE  
ORGANIZATION  WT/DS294/25 
14 September 2007 
 
 (07-3919) 
 Original:   English 
   
UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY 
FOR CALCULATING DUMPING MARGINS ("ZEROING") 
 
Recourse to Article 21.5 of the DSU by the European Communities
 
 
Request for the Establishment of a Panel 
  
 The following communication, dated 13 Sept ember 2007, from the delegation of the 
European Communities to the Chairman of the Dis pute Settlement Body, is circulated pursuant to 
Article 21.5 of the DSU.  
_______________ 
 
  On 9 May 2006, the Dispute Settlement Body  (the "DSB") adopted the Appellate Body 
Report and the Panel Report, as modified by the Appellate Body, in the case WT/DS294 " United 
States – Laws, Regulations and Methodology for Calculating Dumping Margins ("Zeroing") ".  The 
resulting DSB rulings found that the United States' administrative practice (the zeroing  methodology 
in original investigations in which the weighted -average-to-weighted-avera ge comparison method is 
used) and other measures (15 original investigations
1 and 16 "administrative reviews"2 in which 
zeroing was used), including each of the assessment in structions issued pursuant to any of one of 
these measures, were inconsistent with Article VI  of the General Agreement on Tariff and Trade 1994 
("GATT 1994") and the Agreement on implementa tion of Article VI of the GATT 1994 (the 
"AD Agreement").  The DSB recommended that the United States brings those measures into 
conformity with its obligations under those Agreements.  
                                                     
 
1 Listed in WT/DS294/7/Rev.1, cases 1 to 15 on pages 5-6. 
2 Listed in WT/DS294/7/Rev.1, cases 16 to 31 on pages 14-15. The term "administrative review" is a 
term of US municipal law that is not used in the AD Agreement . A US "administrative review" involves an 
investigation into and a re-calculation of the existence an d degree of an exporter's margin of dumping during the 
review investigation period, contemporaneous with the imports for which final liability is being assessed. An 
"administrative review" investigation also results in th e fixing of a new "cash deposit" rate to be applied 
prospectively to future imports, pending the next "administrative review".  WT/DS294/RW 
 Page A-3 
 
 
   On 30 May 2006, the United States informed the DSB that it intended to implement the 
recommendations and rulings of the DSB in a ma nner consistent with its  WTO obligations, but 
needed a reasonable period of time to do so. Th e parties agreed under Article 21.3(b) of the 
Understanding on rules and proce dures governing the settlement of disputes ("DSU") that the United 
States would have until 9 April 2007 to implemen t the recommendations and rulings of the DSB 
(WT/DS294/19). 
  On 27 December 2006, the United States publishe d a notice whereby it announced that it was 
abandoning "zeroing" in average-to-average comparis ons in anti-dumping original investigations (see 
Antidumping Proceedings: Calculation of th e Weighted–Average Dumping Margin during an 
Antidumping Investigation; Final Modification  published in 71 FR 77722). The final modification 
became effective on 22 February 2007 (see Antidumping Proceedings: Calculation of the Weighted–
Average Dumping Margin in Antidumping Investigations; Change in Effective Date of Final 
Modification,  published in 72 FR 3783, 26 January 2007). 
 
 Subsequently, the US began a recalculation of the margins of dumping in 12 of the 15 original 
investigations (the anti-dumping measures having been  previously revoked in three of the 15 original 
investigations for reasons other than zeroing
3). The United States issued its final findings in 11 of the 
original investigations on 9 Apr il 2007 ("Section 129 determinations")4 which entered into effect on 
23 April 2007 (published in 72 FR 25261, 4 Ma y 2007) and on 20 August 2007 issued its final 
findings in the one outstanding case5. At the DSB meeting of 24 April 2007, and at subsequent DSB 
meetings, the United States stated that it had im plemented the DSB recommendations and rulings in 
this dispute.  The EC did not agree.   On 4 May 2007, the parties concluded an agreement on the procedures under Articles 21 and 
22 of the DSU ("sequencing agreement")
6 with a view to facilitating the procedures for a resolution of 
the dispute. 
 
On 9 July 2007, the European Communities in itiated the procedures under Article 21.5 of the 
DSU by requesting the United States to enter into  consultations.  The request was circulated in 
document WT/DS294/22 of 12 July 2007.  Consultati ons were held on 30 July 2007. Consultations 
have allowed a better understanding of respective positions but have failed to settle the dispute. 
 
 Accordingly, " there is a disagreement as to the existence or consistency with a covered 
agreement of measures taken to comp ly with the recommendations and rulings " of the DSB.  Pursuant 
to Article 6 and Article 21.5 of the DSU, Article 17 of the AD Agreement, Article XXIII of 
GATT 1994 and Paragraph 1 of the sequencing agreem ent, the EC hereby requests the establishment 
of a panel. 
  In particular, the European Communities claims the following:  1. The Section 129 determinations entered into  force on 23 April 2007, not on the date of 
9 April 2007 as agreed by the parties under Article  21.3(b) of the DSU. This is inconsistent 
                                                     
 
3 Cases Number 10, 12 and 13 in the Annex to this Panel Request. 
4 The term "Section 129 determination" is a term of US municipal law that is not used in the AD 
Agreement. It is used in this Panel Request without pr ejudice to the correct categor isation of the measures at 
issue under one or more provisions of the AD Agreement . 
5 Case Number 11 in the Annex to this Panel Request. Certain Stainless Steel Sheet and Strip from Italy 
(A-475-824)  Published on US Commerce Department Web Site on 29 August 2007 
http://ia.ita.doc.gov/download/section129/Italy-S SSS-in-Coils-129-Final-Decision-Memo-08-20-07.pdf  
6 "Understanding between the United States and the European Communities Regarding Procedures 
under Articles 21 and 22 of the DSU" (WT/DS294/21, 9 May 2007). WT/DS294/RW 
Page A-4  
 
  with Article 17(14) and Article 21, including 21.3 and 21.3(b) of the DSU and with the 
agreement between the parties concerning the reasonable period of time. In particular: 
 
• Article 17(14) DSU because the United States,  by its actions, has not unconditionally 
accepted the Appellate Body Report. 
 
• Article 21, including Article 21.3 and 21.3( b) DSU and the agreement between the 
parties concerning the reasonable period of time because the United States has failed 
to comply immediately and/or within the reasonable period of time agreed by the 
parties. 
 2. The US failed to properly implement the DS B recommendations and rulings with respect to 
the 16 administrative reviews found to be incons istent with the US' WTO obligations since 
"zeroing" was not eliminated in any of the a bove-mentioned measures. Th is is inconsistent 
with Article 2, including 2.1, 2.4 and 2.4.2, Article 9.3 and Article 11, including Article 11.1 
and 11.2 of the AD Agreement  and Article VI:2 of the GATT 1994. In particular: 
 
• Article 2, including Article 2.1 of the AD Agreement  and Article VI:2 of the 
GATT 1994 because the US has not re-calculated margins of dumping for the product as whole. 
 
• Article 2.4 of the AD Agreement  because the United States has not made a fair 
comparison between normal value and export price. 
 
• Article 2.4.2 of the AD Agreement  because the United States has used an 
asymmetrical method of comparison, and zeroed, without determining and demonstrating that the conditions provided for in that provision are met. 
 
• Article 9.3 of the AD Agreement  and Article VI:2 of the GATT 1994 because the 
United States has not re-calculated margins of dumping for the product as a whole, and has failed to ensure that the amount of duty does not exceed the dumping margin, 
as calculated in conformity with Article 2. 
 
• Article 11, including Article 11.1 and 11.2, because the re-calculation of the cash 
deposit rate is also subject to the obligati ons set out in those provisions, and must be 
calculated in accordance with th e rules in Article 2, as set out above, but has not been 
so calculated. 
 
3. With respect to Case No. 11 – Stainless Steel Sheet and Strip in Coils from Italy  (A-475-824 ), 
in its Issues and Decision Memorandum of 20 August 2007 ( Final Results for the Section 129 
Determination: Certain Stainless Steel Sheet and Strip in Coils from Italy ), the United States 
committed (or failed to remove) an obvious calcu lation error. When calculating an average 
unit value for a small number of US sales of th e exporter in question, to which it applied a 
"facts available" percentage rate for the purpose of its dumping calculation, the United States 
erroneously inverted the fraction: instead of di viding total value by total volume, the United 
States has divided total volume by total value. This error artificially inflated the unit value 
and therefore the amount of dumping. If, in addition to eliminating zeroing, the United States would correct this obvious calculation error, the dumping margin would fall below de 
minimis , and the measure would be revoked. In resp ect of this measure there have been a 
number of subsequent review investigations as we ll as future review investigations involving 
zeroing. As regards the obvious calculation erro r, the European Communities claims that the 
measure is inconsistent with  Articles 2.1 and 2.2 of the AD Agreement  because there is an  WT/DS294/RW 
 Page A-5 
 
 
  obvious calculation error in the determinati on of normal value (and thus in the dumping 
margin); and Article 6.8 and Annex II of the AD Agreement  because the United States has 
failed to correctly apply facts available. As regards zeroing and failure to revoke the measure, 
the US failed to properly implement the DS B recommendations and rulings since duties 
calculated with zeroing continue to be imposed, collected or liquidated. For the reasons set 
out above, this is inconsistent with Article 2, including 2.1, 2.4 and 2.4.2, Article 5.8 (since 
the dumping margin is de minimis  the measure should have been terminated), Article 9.3 and 
Article 11, including 11.1 and 11.2 of the AD Agreement  and Article VI:2 of the GATT 1994. 
 4. With respect to all measures (original inves tigations and administrative reviews) that were 
found inconsistent with the US' WTO obligations , the US continues to impose, collect or 
liquidate anti-dumping duties at a rate inflated by "zeroing" beyond 9 April 2007. With regard 
to those measures which were revoke d by the Section 129 determinations
7, the US continues 
to impose, collect or liquidate anti-dumping duties after 9 April 2007. For the reasons set out above, this is inconsistent with  the provisions cited in paragr aph 1 of this Panel Request, as 
well as with Article 2, including 2.1, 2.4 and 2. 4.2, Article 5.8 (since the United States did not 
immediately terminate the measures on evidence that there was no dumping or dumping below de minimis  level), Article 9.3 and Article 11,  including 11.1 and 11.2 of the 
AD Agreement  and Articles VI:1 (since the United States imposes, collects or liquidates anti-
dumping duties in cases where the imported pr oduct is not dumped) and VI:2 of the 
GATT 1994. 
 
5. In three cases (Case No. 2: Stainless Steel Bar from France (A-427-820), Case No. 4: 
Stainless Steel Bar from Italy (A-475-829) and Case No. 5:  Stainless Steel Bar from the 
United Kingdom (A-412-822) ) in the Section 129 determinati ons, which concerned original 
investigations, the US re-determinations led to an unjustified increase in the "all others rate". 
The United States has imposed an "all others" rate based on rates calculated using a weighted 
average of exporters with zero or de minimis rates  and "adverse facts available" rates. This is 
inconsistent with Article 2 (because there is  no relation between the rate imposed and any 
margin of dumping calculated in accordance with Article 2), Article 6.8 and Annex II 
(because with respect to the "o thers" the United States has not correctly applied facts 
available and has, in particular, applied a rate  partly based on "adverse facts available" to 
exporters which did not seek to impede the investigation and w hose behaviour did not warrant 
the drawing of adverse inferences), Article 9,  including 9.2 (because the United States has not 
imposed rates at an appropriate level nor ta ken steps to ensure non-discrimination), 9.3 
(because the United States has taken no steps to  ensure that the amount of duty does not 
exceed a lawfully calculated margin of dum ping) and 9.4 (because the United States has 
included facts available margins in the calculati on of an all others rate), and Article 18.1 
(because the United States has taken a specifi c action against dumping other than in 
accordance with the provisions of the AD Agreement ) of the AD Agreement . 
 6. With respect to original investigations in  which the recalculation of dumping margins led to 
the conclusion that some exporters were not dumping or had de minimis  dumping margins
8, 
the US maintained the Anti-Dumping order without establishing whether the remaining 
amount of dumped imports was causing injury to the domestic industry and whether this volume of dumped imports was not negligible. This is inconsistent with Articles 3.1, 3.2, 3.5, 
5.8 of the AD Agreement  and Article VI:1 of the GATT 1994. In particular: 
 
                                                     
 
7 Cases Number 1, 2 (for Ugitech), 3 (for Einsal), 4 (for Acciaiera Valbruna S.p.A, Acciaiera Foroni 
S.p.A and Rodacciai S.p.A), 5 (for Co rus Engineering Steels Ltd) and 6 in the Annex to this Panel Request. 
8 Cases Number 2, 3, 4 and 5 in the Annex to this Panel Request. WT/DS294/RW 
Page A-6  
 
  • Article 3.1 because it has failed to base its assessment on positive evidence and make 
an objective examination of the volume of dumped imports, and their effects and impact on the US industry. 
 
• Article 3.2 because it has not correctly calculated the volume of dumped imports, or 
any increase, in absolute or relative terms, or their effects in the context of price 
undercutting. 
 
• Article 3.5 because the US has not correctly demonstrated that the dumped imports 
are through the effects of dumping, causing injury, and have failed to properly examine other known factors, including non-dumped imports. 
 
• Article 5.8 because the US has failed to pr operly examine whether or not the volume 
of dumped imports is negligible. 
 
• Article VI:1 of the GATT 1994 because the US has failed to properly establish the 
existence of injurious dumping. 
 7. With regard to the 15 original investiga tions and 16 administrative reviews, the US has 
continued zeroing in the reviews related to th e measures in question. The United States has 
not eliminated zeroing in these reviews though th ey determine the cash deposit rate currently 
applicable, and/or are relied upon to maintain  the AD measure or to impose, collect or 
liquidate anti-dumping duties at a rate inflated  by zeroing after 9 April 2007. Details of the 
reviews in question are set out in the annex. For the reasons set out above, this is inconsistent 
with Article 2, including 2.1, 2.4 and 2.4.2, Article 9.3, and Article 11, including 11.1, 11.2 
and 11.3 (since, by relying on zeroed dumping margins, the United States did not properly 
determine that the expiry of the duty would be likely to lead to continuation or recurrence of 
dumping and injury) of the AD Agreement  and Articles VI:1 and VI:2 of the GATT 1994. 
  The European Communities reserves its rights in  respect of all other aspects of the United 
States' purported compliance with its obligations  in this case.  In particular, the European 
Communities reserves its right to revisit certain me asures in the light of the eventual outcome of 
challenges to them in United States' courts.   The European Communities requests that the Pane l be established with the standard terms of 
reference set out in Article 7 of the DSU, and asks that this request be placed on the agenda of the 
meeting of the DSB on 25 September 2007. The Euro pean Communities recalls that Article 21.5 DSU 
provides that this dispute shall be decided throug h recourse to the DSU, including wherever possible 
resort to the original panel.   Pursuant to paragraph 2 of the Sequencing Agreement, the European Communities notes that 
United States shall accept the establishment of th e panel at the first DSB meeting at which the 
European Communities' request for the establishment of an Article 21.5 panel appears on the agenda. 
  
   WT/DS294/RW
 Page A-7ANNEX  
 
 
I. Reviews of the measures imposed in the 15 original investigations condemned in DS294  
 
Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
1.  Certain hot-rolled 
carbon steel NL A-421-807 
(A-903) 66 FR 50408, October 3, 2001 
(amended:  66 FR 55637, 
November 2, 2001) November 2001 66 FR 59565, 
November 29, 2001 Administrative Reviews 
3 May 2001 – 31 Oct 2002 
(69FR 43801, July 22 2004) 
4.8% 
 
1 Nov 2002 – 31 Oct 2003 
(70FR 18366, April 11, 2005) 
4.42% 
 
1 Nov 2004 – 31 Oct 2005 
(72FR 34441, June 22, 2007) 
2.26% 
 
2.  Stainless steel bar F A-427-820 
(A-913) 67 FR 3143, January 23, 2002 February 2002 67 FR 10385, 
March 7, 2002 Administrative Reviews: 
 
1 March 2003 – 29 February 2004 (70 FR 46482, 
August 10, 2005) 
Ugitech 14.98% 
 
1 March 2004 – 28 February 
2005 (71 FR 30873, May 31 
2006) 
Ugitech 9.68% 
 
Sunset Review: DOC Final 
Determination 72 FR 30772, June 4, 2007 
  
  WT/DS294/RW 
Page A-8 Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
3.  Stainless steel bar G A-428-830 
(A-914) 67 FR 3159, January 23, 2002 
(amended:  67 FR 10382, March 7, 
2002) February 2002 67 FR 10382, 
March 7, 2002 Administrative Reviews: 
 
2 August 2001–28 February 2003  
(69 FR 32982, June 14, 2004) 
BGH 0.52% 
 
 
1 March 2004–28 February 2005 
(71 FR 52063, September 1, 
2006) 
BGH 0.73% 
 
 
Sunset Review: DOC 
Preliminary  Determination 
72 FR 29970, May 30, 2007 
 
4.  Stainless steel bar I A-475-829 
(A-915) 67 FR 3155, January 23, 2002 
(amended:  67 FR 8228, February 22, 2002) February 2002 67 FR 10384, 
March 7, 2002 Administrative Review: 
 
2 August 2001–28 February 
2003 
(69 FR 32984, June 14, 2004) 
Foroni 4.03% 
Ugine 33% 
  
Sunset Review: DOC Final 
Determination 72 FR 30772, June 4, 2007 
  
   WT/DS294/RW
 Page A-9Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
5.  Stainless steel bar UK A-412-822 
(A-918) 67 FR 3146, January 23, 2002 February 2002 67 FR 10381, March 7, 
2002 Administrative review : 
 
1 March 2005 – 28 February 2006(72 FR 15106, March 
30, 2007)  Enpar Special 
Alloys 33.87% 
 
Sunset Review: 
DOC Final Determination 72 
FR 30772, June 4, 2007  
 
6.  Stainless Steel Wire 
Rod SW A-401-806 
(A-774) 63 FR40449,  July 29,1998 September 1998 63 FR49329, 
September 15, 1998  Administrative reviews : 
 1 Sept. 2004 – 31 August 
2005 (72FR 26337, May 9, 
2007) 
Fagersta 19.36% 
 Sunset Review: 
Continuation order, 69 FR 
50167, August 13, 2004  
7.  Stainless Steel Wire 
Rod E A-469-807 
(A-773) 63 FR40391, July 29,1998 September 1998 63 FR 49330,  
September 15, 1998 Administrative review : 
 
5 March 1998 – 31 August 1999 (66 FR 10988, February 
21, 2001) Roldan SA 0,8% 
 
Sunset Review: 
Continuation Order  
69FR 50167, August 13, 2004 
 
8.  Stainless Steel Wire 
Rod I A-475-820 
(A-770) 63 FR40422, July 29,1998 September 1998 63 FR 49327,  
September 15, 1998 Sunset Review: 
Continuation Order  
69FR 50167, August 13, 2004  
  WT/DS294/RW 
Page A-10 Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
9.  Certain Stainless 
Steel Plate in Coils B A-423-808 
(A-788) 64 FR15476, March 31, 1999 May 1999 64 FR 27756,  
May 21, 1999 
(amended by 68 FR 20114 April 24, 2003) See case 18 below 
 
 
10.  Stainless Steel 
Sheet and Strip in 
Coils F A-427-814 
(A-797) 64 FR30820, June 8, 1999 July 1999 64 FR 40562,  
July 27, 1999 See Cases 25 & 26 below 
 
Measure revoked   July 2004 
(70 FR 44894, August 4, 
2005) 
 
11.  Stainless Steel Sheet and Strip in 
Coils I A-475-824 
(A-799) 64 FR30750, June 8, 1999 July 1999 64 FR 40567,  
July 27, 1999 See cases 21 & 22 below 
12.  Stainless Steel 
Sheet and Strip in Coils UK A-412-818 
(A-804) 64 FR30688, June 8,1999 July 1999 64 FR 40555,  
July 27,1999 Measure revoked : July 2004 
(70 FR 44894, August 4, 2005) 
 
13.  Certain Cut-to-
Length Carbon-Quality 
Steel Plate F A-427-816 
(A-816) 64 FR73143, December 29,1999 Fe bruary 2000 65 FR 6585,  
February 10, 2000 Measure revoked : February 
2005 (70 FR 72787, 
December 7, 2005) 
 
14.  Certain Cut-to-Length Carbon-Quality 
Steel Plate 
 I A-475-826 
(A-819) 64 FR73234, December 29,1999 Fe bruary 2000 65 FR 6585,  
February 10, 2000 Sunset review: 
 
Continuation Order (70FR 
72607, Decembe r 6, 2005) 
 
15.  Certain Pasta I A-475-818 
A-734) 61 FR30326, June 14, 1996 
(amended by 66 FR65889, 
December 21,2001) July 1996 61 FR38547  
July 24, 1996  
 See Cases 19 & 20 below 
 
  
   WT/DS294/RW
 Page A-11Reviews subsequent to the 16 administrative reviews condemned in DS294  
 
Product MS No Case Final Results Company Subsequent Reviews 
16.  Industrial 
Nitrocellulose F A-427-009 66 FR 54213, 
October 26, 2001  Bergerac NC Two subsequent Administrative reviews were 
rescinded, covering the periods: 1 August 2000 – 31 July 2001 
1 August 2002 – 31 July 2003 
 Measure revoked : (69 FR 52231, August 25, 2004) 
 
17.  Industrial 
Nitrocellulose UK A-412-803 67 FR 77747, 
December 19, 2002  Imperial Chemical 
Industries Two subsequent Administrative reviews were 
rescinded, covering the periods: 1 July 2001 – 30 June 2002 
1 July 2002 – 30 June 2003 
 Changed circumstance review  (Dec, 2003) confirmed 
the rate of 3.06% to apply to Troon Investments, 
successor to ICI  
Measure revoked : (69 FR 52231, August 25, 2004) 
 
18.  Stainless steel 
plate in coils B A-423-808 67 FR 64352, October 18, 2002 ALZ NV & 
TrefilARBED (affiliated 
US importer) – Same company Ugine & ALZ, 
N.V. Belgium (U&A 
Belgium). Two subsequent reviews resulting in change to rate: 
 
1 May 2002 – 30 April 2003 (70FR 2999, January 19, 2005) 
2.71% 
 
1 May 2003 – 30 April 2004 
(70FR 72789, December 7, 2005) 
2.96% 
 
Sunset Review: Continuation Order 70 FR 41202, 
July 18, 2005  
  
  WT/DS294/RW 
Page A-12 Product MS No Case Final Results Company Subsequent Reviews 
19.  Certain pasta I A-475-818 67 FR 300, January 3, 2002 
Amended : 67 FR 5088, 
February 4, 2002 1) Ferrara  
 
  
2) Pallante
 
  
 
3) PAM
 
 Ferrara: Order revoked in February 2005 following 
third consecutive review where the company had 
de minimis  rate (70FR6832, February 9, 2005) 
 
Pallante: Order revoked in  November 2005 following 
third consecutive review where the company had de minimis  rate (70 FR71464, November 29, 2005) 
 
PAM
: Two subsequent reviews resulting in change to 
rate: 
 
1 July 2001 – 30 June 2002 (69FR 6255, February 10, 2004) 
45.49% 
 
1 July 2002 – 30 June 2003 
(70FR 6832, February 9, 2005) 
4.78% 
 
Sunset review: DOC Final Determination 72FR 5266 
February 5, 2007 
 
20.  Certain pasta I A-475-818 68 FR 6882, February 11, 2003 
 Pastifi Garofalo One subsequent re view resulting in change to rate: 
 1 July 2001 – 30 June 2002 
(69 FR 22761, April 27, 2004) 
2.57% 
 
One review rescinded covering period: 
1 July 2002 – 30 June 2003  
 
21.  Stainless steel 
sheet strip coils I A-475-824 67 FR 1715, January 14, 2002 
 Acciai Speciali Terni 
SpA 
 See Case 22  
   WT/DS294/RW
 Page A-13Product MS No Case Final Results Company Subsequent Reviews 
22.  Stainless steel 
sheet strip coils I A-475-824 68 FR 6719, February 10, 2003 
 Acciai Speciali Terni 
SpA Two subsequent reviews resulting in change to rate: 
 
1 July 2001 – 30 June 2002 (68FR 69382, December 12, 2003) 
1.62% 
 
1 July 2002 – 30 June 2003 
(70FR 13009, March 17, 2005) 
3.73% 
 
Sunset review: Continuation Order 70 FR 44886, 
August 4, 2005  
 
23.  Granular 
polytetrafluoenthylene I A-475-703 67 FR 1960, January 15, 2002 
 Ausimont SpA See Case 24 
 
24.  Granular 
polytetrafluoenthylene I A-475-703 68 FR 2007, January 15, 2003 
 Ausimont SpA Two subsequent Administrative reviews were 
rescinded, covering the periods: 1 August 2002 – 31 July 2003 
1 August 2003 – 31 July 2004 
 
Changed circumstance revi ew (May,2003) confirmed 
the rate of 12.08% to apply to Solvay Solexis, successor to Ausimont 
 
1 subsequent review resulting in change to rate:  
1 August 2004 – 31 July  2005 
(72FR 1980, January 17, 2007 
39.13% 
 
Sunset review: Continuation Order 70FR 76026, 
Dec. 22, 2005  
 
25.  Stainless steel 
sheet strip coils  F A-427-814 67 FR 6493, February 12, 2002 
Amended
: 67 FR 12522, March 19, 
2002 
 Ugine See Case 26  
  WT/DS294/RW 
Page A-14 Product MS No Case Final Results Company Subsequent Reviews 
26.  Stainless steel 
sheet strip coils 
 F A-427-814 67 FR 78773 , December 26, 2002  
Amended : 
68 FR 4171, January 28, 2003  Ugine 3 subsequent reviews resulting in change to rate: 
 
1 July 2001 – 30 June 2002 (68FR 69379, December 12, 2003) 
2.93% 
 
1 July 2002 – 30 June 2003 
(70 FR 7240, February 11, 2005) 
9.65% 
 
1 July 2003 – 30 June 2004 
(71 FR 6269, February 7, 2006) 
12.31% 
 
Measure revoked:  70 FR 44894, August 4, 2005 
27.  Stainless steel 
sheet strip coils G A-428-825 67 FR 7668, February 20, 2002  
Amended : 67 FR 15178, March 29, 
2002 
 KTN See Case 28 
28.  Stainless steel 
sheet strip coils G A-428-825 68 FR 6716, February 10, 2003  
Amended : 68 FR 14193, March 24, 
2003  TKN (successor in 
interest of KTN) 4 subsequent reviews resulting in change to rate: 
 
1 July 2001 – 30 June 2002 (69FR 6262, February 10, 2004) 3.72% 
 
1 July 2002 – 30 June 2003 
(69 FR 75930, December 20, 2004)  7.03% 
 
1 July 2003 – 30 June 2004 (70 FR 73729 December 13, 2005) 9.5% 
 
1 July 2004 – 30 June 2005 (71 FR 74897, December 13, 2006) 2.45% 
 
Sunset review: Continuation Order 70 FR 44886, 
August 4 2005  
  
   WT/DS294/RW
 Page A-15Product MS No Case Final Results Company Subsequent Reviews 
29.  Ball bearings F A-427-801 67 FR 55780, August 30, 2002 
 SKF France SA and 
Sarma SKF: 4 subsequent reviews resulting in change to rate: 
 
1 May 2001 – 30 April 2002 68 FR 43712, July 24, 2003 
6.70% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
5.25%  
 
1 May 2003 – 30 April 2004 
70 FR 54711, September 16, 2005 
8.41%  
 
1 May 2004 – 30 April 2005 71 FR 40064, July 14, 2006 
12.57% 
 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
30.  Ball bearings I A-475-801 67 FR 55780, August 30, 2002 
 FAG Italia SpA 
 FAG : 4 subsequent reviews resulting in change to rate: 
 
1 May 2001 – 30 April 2002 68 FR 35623, June 16, 2003 
2.87% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
4.79%  
 
1 May 2003 – 30 April 2004 
70 FR 54711, September 16, 2005 
5.88%  
 
1 May 2004 – 30 April 2005 71 FR 40064, July 14, 2006 
2.52%  
  WT/DS294/RW 
Page A-16 Product MS No Case Final Results Company Subsequent Reviews 
    SKF Industrie SpA SKF:  4 subsequent reviews resulting in change to rate: 
 
1 May 2001 – 30 April 2002 68 FR 35623, June 16, 2003 
5.08% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
1.38%  
 
1 May 2003 – 30 April 2004 
70 FR 54711, September 16, 2005 
2.59%  
 
1 May 2004 – 30 April 2005 71 FR 40064, July 14, 2006 
7.65% 
 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
31.  Ball bearings UK A-412-801 67 FR 55780, August 30, 2002 
 NSK Bearings Europe 
Ltd 
The Barden Corporation UK NSK Bearings: 
No subsequent administrative reviews 
 
Barden : 1 subsequent administrative review rescinded 
for period: 1 May 2001 – 30 April 2002 
2 subsequent reviews resulting in change to rate: 
1 May 2002 – 30 April 2003 69 FR 55574, September 15, 2004 
4.10%  
1 May 2003 – 30 April 2004 
70 FR 54711, September 16, 2005 
2.78% 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
 
__________