WORLD TRADE  
ORGANIZATION   
WT/DS322/44 
8 February 2012 
 
 (12-0768) 
 Original:   English 
  
 
UNITED STATES – MEASURES RELATING TO ZEROING  
AND SUNSET REVIEWS 
 
Joint Communication from the United States and Japan 
   The following communication, dated 6 February 2012, from the delegation of the United States and the delegation of Japan to the Ch airperson of the Dispute Settlement Body (DSB), 
is circulated at the request of those delegations. 
 
_______________ 
 
 
The United States and Japan would like to inform the Dispute Settlement Body of the 
attached Memorandum of Understanding between the United States of America and Japan with 
respect to the dispute United States – Measures Relating to Zeroing and Sunset Reviews  (WT/DS322).  
 
We request that you please circulate the attached Memorandum of Understanding to the 
Members of the Dispute Settlement Body.   WT/DS322/44 
Page 2  
 
  MEMORANDUM OF UNDERSTANDING BETWEEN 
THE UNITED STATES OF AMERICA AND JAPAN  
 
 
The United States of America ("United States") and Japan ("both sides") have confirmed the 
following, as documented in this Memorandum of Understanding ("Understa nding"), regarding the 
dispute United States – Measures Relating to Zeroing and Sunset Reviews (WT/DS322) ("the 
dispute").    
This Understanding, or the taking of any of th e steps contemplated by this Understanding by 
the United States or Japan, is without prejudice to either side's position of principle regarding the 
remedies available under WTO dispute settlement  or their respective positions regarding the 
implementation of the recommendations and rulings of the Dispute Settlement Body ("DSB") in the 
dispute.     
I. OPERATIONAL ASPECTS 
 1. As a measure taken to comply with the DS B recommendations and ruling in the dispute, by 
no later than 7 days after the start date of this Understanding (defined as the signature date of this 
Understanding), and subject to U.S. domestic legal requirements, the United States will complete the 
process under Section 123 of the Uruguay Round Ag reements Act (URAA) to modify its 
methodologies, as described in the notice Antidumping Proceedings: Calculation of the Weighted 
Average Dumping Margin and Assessment Rate in Certain Antidumping Duty Proceedings, 75 FR 81533 (Dec. 28, 2010), by signing the final modificati on and submitting it promptly for publication.  
 2. As specified in Annex II, the United States will conduct proceedings under Section 129 of the 
URAA.    
 3. By no later than 12 days after the start date, the United States will begin the Section 129 
proceeding listed in Annex II, paragraph 2, by tr ansmittal of a written request from the Office of the 
United States Trade Representative ("United States Trade Representative") to the United States 
Department of Commerce ("De partment of Commerce"). 
 
4. By no later than 4 months after the start da te, the Department of Commerce will issue a final 
determination in the Section 129 proceedi ng listed in Annex II, paragraph 2.   
 5.   The United States and Japan will continue the suspension of the work of the Arbitrator until, 
as described in paragraph 6, the Arbitrator notifi es the DSB that it is not necessary for the Arbitrator 
to issue an award, on the conditions that:  (i) the United States begins the Section 129 procedure listed 
in Annex II, paragraph 2, no later than 12 days afte r the start date; (ii) the Department of Commerce 
issues a final determination in the Section 129 pr oceeding listed in Annex II,  paragraph 2, no later 
than 4 months after the start date; and (iii) the United States completes the section 129 proceeding in 
Annex II, paragraph 2. 
 
6. By no later than six months after the start date:   (a) Japan will, by letter to the chair of th e DSB, withdraw its requests to the DSB made 
pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") in documents WT/DS322/23 and WT/DS322/24; and 
   (b) Japan and the United States will submit a jo int letter to the Arbitrator noting that 
Japan has withdrawn its Article 22.2 requests; in forming the Arbitrator that the United States  WT/DS322/44 
 Page 3 
 
 
  accordingly no longer makes objections under Article 22.6 of the DSU; and requesting that 
the Arbitrator notify the DSB that it is not n ecessary for the Arbitrator to issue an award. 
 II. MUTUALLY AGREED SOLUTION  
1. At a future date to be mutually determined , both sides will consult with a view to achieving a 
mutually agreed solution to the dispute.    III.
  OTHER PROVISIONS   
 
1. This Understanding will come  into operation upon signature. 
 2. In the event that the Unite d States fails to complete the process under Section 123 of the 
Uruguay Round Agreements Act by publishing the final modification described in Part I, paragraph 1, 
unless otherwise decided, this Understanding is void. 
 
3. This Understanding is without prejudice to Japan's right to invoke further proceedings under 
the DSU, as described in Annex I of this Unders tanding, regarding the co nsistency with the WTO 
agreements of the final modification under Section 123 of the Uruguay Round Agreements Act and its 
application.  Japan will take no other action u nder the DSU with respect to the dispute.   
 
4.  Other than as specifically set forth herein , this Understanding is without prejudice to the 
rights and obligations of the United States and Japan under the WTO agreements.  5.  This Understanding is not a bindi ng agreement under international law. 
 
6.   Both sides will, at the re quest of either side, hold prompt consultations with respect to any 
issue arising under this Understanding.       
 
(signed) 
FOR THE GOVERNMENT OF THE 
UNITED STATES OF AMERICA (signed) 
FOR THE GOVERNMENT OF JAPAN 
 
 WT/DS322/44 
Page 4  
 
  ANNEX  I 
 
 
1.  Should Japan consider that the situation d escribed in Article 21.5 of the DSU exists with 
respect to the final modification and its application affecting (1) entries of merchandise subject to an 
implemented decision pursuant to section 129 of the UR AA in which the final modification is applied, 
as described in Annex II, or (2) entries of mercha ndise made after May 1, 2010 and covered by the 
final results of an administrative review in which the final modification is applied, Japan may request 
the establishment of a panel pursuant to Article 21. 5 of the DSU with respect to the subject matter 
referred to above.   
 
2. At the first DSB meeting at which Japan's request for the establishment of an Article 21.5 
panel appears on the agenda, the United States will accept the establishment of that panel. 
 3.  In the event that as a result of the Article 21.5 proceedings  the DSB rules that a measure taken 
to comply is inconsistent with a covered agreem ent, Japan may request authorization to suspend 
concessions or other obligations in accordance with Article 22 of the DSU.  The level of suspension 
of concessions or other obligations requested by Japan  will be limited to the level of any nullification 
or impairment arising from the subject ma tter referred to in paragraph 1.   
 4. The United States will not assert that Japan is precluded from obtaining such DSB 
authorization on the grounds that the request was made outside the 30-day time period specified in 
Article 22.6 of the DSU.  This is without prejudice to the U.S. right to  refer the matter to arbitration in 
accordance with Article 22.6 of the DSU.  Both sid es will not object to the arbitration on the grounds 
that the other side seeks a second arbitration with in the meaning of Article 22.7 of the DSU.   WT/DS322/44 
 Page 5 
 
 
  ANNEX II 
 
 1. The United States will conduct proceedings pur suant to section 129 of the URAA to revise 
the current cash deposit rates established on the basi s of prior administrative review determinations 
for the following exporters/producers covered by the associated antidumping duty orders.  
Implementation of the results of the section 129 determinations will be effective for subject 
merchandise entering the United States from the expor ters/producers for all unliquidated entries that 
enter the United States on or after the date th e United States Trade Representative directs the 
Department of Commerce to impl ement the determinations.   
 
2. The Department of Commerce will issue a fina l section 129 determination by no later than 
four months after the start date with respect to the following exporter/producer, and the United States 
will complete the section 129 proceeding within 7 days of the final section 129 determination.  
 
Stainless Steel Sheet and Strip in Coils 
A-588-845 Nippon Kinzoku Co., Ltd.  3. For the purposes of this Understanding, th e completion of a section 129 proceeding means: 
 
 (a) where a final section 129 determination woul d result in a change in the current cash 
deposit rate, a section 129 proceeding is complete d on the date by which the United States 
Trade Representative has directed the Depart ment of Commerce to implement the final 
section 129 determination; or 
 
 (b) where a final section 129 determination w ould not result in a change in the current 
cash deposit rate, a section 129 proceeding is  completed upon the issuance of the final 
section 129 determination.   
 4. In the event that a final and conclusive judgment in NSK Corporation, et. al v. United States 
International Trade Commission, et. al  (2011-1362, -1382, 1383, -1454) does not affirm the 
revocation of the order in Ball Bearings and Parts Thereof from Japan (A-588-804), the Department 
of Commerce will issue a final section 129 determination by no later than four months after the final and conclusive judgment with respect  to the following exporters/produ cers, and the United States will 
complete the section 129 proceeding within 7 days  of the final section 129 determination:  
 
Antifriction Bearings from Japan 
2008-2009 Administrative Review, 75 Fed. Reg. 53661 (Sep. 1, 2010) NTN NSK  Aisin Seiki  JTEKT  
Makino Milling  
Mazda  Nachi-Fujikoshi  Nissan  Sapporo/Tokyo Precision  
Univance  
Yamazaki Mazak  5. No additional section 129 determinations are necessary.   
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