WORLD TRADE  
ORGANIZATION  WT/DS422/1 
G/L/953 
G/ADP/D87/1 
2 March 2011 
 
 (11-1074) 
 Original:   English 
 
 
 
UNITED STATES – ANTI-DUMPING MEASURES ON CERTAIN FROZEN  
WARMWATER SHRIMP FROM CHINA 
 
Request for Consultations by China  
 
  The following communication, dated 28 Februa ry 2011, from the delegation of China to the 
delegation of the United States and to the Chairman of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU. 
 
_______________ 
 
  My authorities have instructed me to request consultations with the Government of the United 
States pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes  ("DSU"), Article XXII:1 of the General Agreement on Tariffs  and Trade 1994  
("GATT 1994") and Article 17 of the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994  ("Anti-Dumping Agreement") with regard to the "zeroing" 
practice by the United States Department of Comme rce ( "USDOC") in its anti-dumping measures on 
certain frozen warmwater shrimp from the People's Republic of China (Case No. A-570-893). 
 
 The matters that China would like to ra ise in the course of consultations concern,  inter alia , 
the following anti-dumping measures imposed by the United States:  
1. The Original Investigation 
(a) Notice of Final Determination of Sales at Less Than Fair Value: Certain Frozen and 
Canned Warmwater Shrimp From th e People's Republic of China , 69 Federal 
Register 70997 (December 8, 2004), as amended by: 
• Notice of Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order: Certain Frozen Warmwater Shrimp From the 
People's Republic of China , 70 Federal Register 5149 (February 1, 2005); 
• Certain Frozen Warmwater Shrimp from the People's Republic of China: 
Notice of Second Amended Final Determination of Sales at Less Than Fair 
Value， 71 Federal Register 47484 (August 17, 2006); 
• Final Results of Redetermination Pursuant to Court Remand , Court No. 05-
00056 (May 21, 2009),
1 issued by the USDOC pursuant to a remand order of 
                                                      
1 Accessed at http://ia.ita.doc.gov/remands/08-138.pdf  . WT/DS422/1 
G/L/953 G/ADP/D87/1 
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  the United States Court of International Trade ("USCIT") and sustained by the 
USCIT on July 29, 2010;
2 
• Certain Frozen Warmwater Shrimp From Brazil, India, the People's Republic 
of China, Thailand, and the Socialist Republic of Vietnam: Notice of Amended 
Final Determinations of Sales at Less Than Fair Value Pursuant to Court 
Decision , 75 Federal Register 53947 (September 2, 2010); 
(b) Issues and Decision Memorandum for the Antidumping Duty Investigation of Certain 
Frozen and Canned Warmwater Shrimp from the People's Republic of China 
(November 29, 2004); 
(c) as well as any amendments, replacements and/or implementing measures for the 
measures identified above under subparagraphs (a) to (b). 
 In these measures, for respondents subject to in dividual examination, the USDOC engaged in 
the zeroing practice in calculating the dumping ma rgin.  Specifically, the USDOC identified sub-
groups of products within the product under investig ation ("averaging groups") on a per model basis 
and calculated margins within each of the averag ing groups by comparing the weighted average 
export price and the corresponding weighted average normal value.  The results of these comparisons 
on an "averaging group" basis were added up to establish the dumping margin of the product under 
investigation as a whole; however, in this pro cess, any negative margins or amounts of "dumping" 
resulting from the "averaging group" comparisons we re put at zero.  The USDOC's zeroing practice 
has artificially created or, at a minimum, inflated  dumping margins for the individually investigated 
respondents.  In addition, on the basis of these individual dumping margins, the USDOC further 
calculated a weighted-average margin (known as the " separate rate") that applied to the cooperating 
non-mandatory respondents3.  China considers that the zeroing practice in these measures is 
inconsistent with the obligations of the United States under Articles VI:1 and VI:2 of the GATT 1994 
and Articles 1, 2.1, 2.4, 2.4.2, 5.8, 9.2, 9.3 and 9.4 of the Anti-Dumping Agreement. 
 
2. Administrative Reviews   
(a) Certain Frozen Warmwater Shrimp From th e People's Republic of China: Notice of 
Final Results and Rescission, in Part, of 2004/2006 Antidumping Duty Administrative 
and New Shipper Reviews , 72 Federal Register 52049 (September 12, 2007); 
(b) Issues and Decision Memorandum for the Final Results of 2004/2006 Antidumping 
Duty Administrative and New Shipper Reviews of Certain Frozen Warmwater 
Shrimp from the People's Republic of China (September 5, 2007); 
(c) Third Administrative Review of Frozen  Warmwater Shrimp From the People's 
Republic of China: Final Results and Partial Rescission of Antidumping Duty 
Administrative Review , 74 Federal Register 46565 (September 10, 2009); 
                                                      
2 See Allied Pacific Food, et. al v. United States Court No. 05-00056 USCIT Slip Op.10-83 , accessed at 
http://www.cit.uscourts.gov/s lip_op/Slip_op10/10-83.pdf  . 
3 Such non-selected respondents were also required to pass the so-called "separate-rate test" in order to 
receive the separate rate.  WT/DS422/1 
 G/L/953 
 G/ADP/D87/1 
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  (d) Third Administrative Review of Frozen Warmwater Shrimp from the People's 
Republic of China: Issues and Decisi on Memorandum for the Final Results 
(August 28, 2009); 
(e) Administrative Review of Certain Frozen Warmwater Shrimp From the People's 
Republic of China: Final Results and Partial Rescission of Antidumping Duty 
Administrative Review , 75 Federal Register 49460 (August 13, 2010); 
(f) Fourth Administrative Review of Frozen Warmwater Shrimp from the People's 
Republic of China: Issues and Decisi on Memorandum for the Final Results 
(August 9, 2010); 
(g) Certain Frozen Warmwater Shrimp From the People's Republic of China: 
Preliminary Results and Preliminary Par tial Rescission of Fifth Antidumping Duty 
Administrative Review , 76 Federal Register 8338 (Febru ary 14, 2011), and the final 
results and related issues and decision memorandum for the fifth antidumping duty 
administrative review to be issued after th e date of this request for consultations;  
(h) as well as any amendments, replacements, and/or implementing measures, including, 
inter alia , any assessment instructions and cash deposit requirements issued pursuant 
to the reviews identified above. 
 In each of the administrative reviews, to the extent that the USDOC has applied zeroing to 
calculate dumping margins for cooperative respondents subject to individual reviews, and/or has 
determined the separate rate based on rates calculate d by the application of zeroing, China considers 
that these measures are inconsistent  with the obligations of the United States under Articles VI:1 and 
VI:2 of the GATT 1994 and Articles 2.4 , 9.3 and 9.4 of the Anti-Dumping Agreement.  
3. Sunset Reviews 
(a) Certain Frozen Warmwater Shrimp from Br azil, India, the People's Republic of 
China and Thailand: Final Results of the Expedited Sunset Reviews of the 
Antidumping Duty Orders , 75 Federal Register 27299 (May 14, 2010); 
(b) Issues and Decision Memorandum for the Expedited Sunset Reviews of the 
Antidumping Duty Orders on Certain Frozen  Warmwater Shrimp from Brazil, India, 
the People's Republic of China, and Thailand; 
(c) Any affirmative determination issued by  the United States International Trade 
Commission ("USITC") after the date of this request for consultations for its five-year 
reviews concerning the anti-dumping duty orders on frozen warmwater shrimp,
4 
where dumping margins calculated by the application of zeroing may have been considered and/or relied upon by the USITC, resulting in the determination that the 
revocation of the anti-dumping order on fro zen warmwater shrimp from China would 
be likely to lead to continuation or recurren ce of material injury within a  reasonably 
foreseeable time; 
                                                     
 
4 See the Notice of Institution of Five-year Reviews concerning the Anti-dumping Duties on Frozen 
Warmwater Shrimp From Brazil, China, India, Thailand, and Vietnam , Investigation No.731-TA-1063, 1064, 
1066-1068(Review), 75 Federal Register 1078 (January 8, 2010). WT/DS422/1 
G/L/953 G/ADP/D87/1 
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  (d) as well as any amendments, replacements, and/or implementing measures for the 
measures identified above under s ubparagraphs (a) through (c). 
 In the sunset review, the USDOC relied on the margins calculated in the original anti-
dumping investigation and/or administrative reviews, where negative dumping margins had been 
zeroed, resulting in the determination that revoca tion of the anti-dumping orders would be likely to 
lead to continuation or recurrence of dumping.  In addition, in case that the USITC makes an 
affirmative determination in its five-year revi ews concerning the anti-dumping duty orders on frozen 
warmwater shrimp, it might also have considered  or relied on margins of dumping found by the 
application of zeroing in determining that th e revocation of the anti-dumping order on frozen 
warmwater shrimp from China would be likely to lead to continuation or recurrence of material injury 
within a reasonably foreseeable time.   China therefore considers that these measures ar e inconsistent with th e obligations of the 
United States under Article 11.3 of the Anti-Dumpi ng Agreement, because they relied on margins of 
dumping calculated by the application of zeroing inc onsistent with Articles VI:1 and VI:2 of the 
GATT 1994 and Articles 2.1, 2.4, 2.4.2 and 9.4 of the Anti-Dumping Agreement.     China reserves its right to raise further factual and legal issues during the course of the consultations. 
 
 China looks forward to receiving the reply of the United States to this request and to setting a 
mutually convenient date for consultations.   
__________