UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Japan to Article 22.7 of the DSU
Date: 11 November 2004
Document codes: WT/DS217/41
Complainant: Australia, Brazil, Chile, EU, India, Indonesia, Japan, South Korea, Thailand
Respondent: U.S.
Third parties: Argentina, Canada, Costa Rica, Hong Kong, Israel, Mexico, Norway
Dispute stage: Implementation & Compliance
Agreements cited: Art. X:3  GATT 1994Art. 18.4  Anti-dumpingArt. 32.5  Subsidies and Countervailing Measures (SCM)Art. VI:3  GATT 1994Art. XVI:4  Agreement Establishing the World Trade OrganizationArt. 1, 5.4  Anti-dumpingArt. 4.10, 7.9, 10, 11.4, 18, 32.1  Subsidies and Countervailing Measures (SCM)Art. 8  Anti-dumpingArt. VI:2  GATT 1994Art. 18.1  Anti-dumping

UNITED STATES – CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000

Recourse by Japan to Article 22.7 of the DSU

 The following communication, dated 10 Novemb er 2004, from the delegation of Japan to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.7 of the DSU.

 Japan requests that the Dispute Settlement B ody consider, at the forthcoming meeting on
24 November 2004, the following agenda item:

 (WT/DS217)

 Recourse by Japan to Article 22.7 of th e Understanding on Rules and Procedures Governing
the Settlement of Disputes

 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act
of 2000 ("CDSOA") was inconsistent with th e United States' obligations under the General
Agreement on Tariffs and Trade 1994 ("GATT 1994"), the Agreement on Implementation of
Article VI of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and
Countervailing Measures and the Marrakesh Agreemen t establishing the .
On 27 January 2003, the Dispute Settlement Body ("DSB") adopted the Appellate Body report and
the Panel report as modified by the Appellate Body report. The United States stated that it intended to
implement the recommendations and rulings of the DSB but failed to do so within the reasonable
period of time, as determined by the arbitrator pur suant to Article 21.3(c) of the Understanding on
Rules and Procedures Governing the Settlement of Disputes ("DSU"), which expired on
27 December 2003.

 Consequently, on 15 January 2004, Japan requested the authorization to suspend the
application to the United States of tariff concessi ons and related obligati ons under GATT 1994 in an
amount to be determined every year on the basis of the amount of offset payments made to affected
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under
the CDSOA.

 On 23 January 2004, the United States objected to the level of suspension proposed and on
26 January 2004, pursuant to Article 22.6 of the DS U, the matter was referred to arbitration. On
31 August 2004, the arbitrator issued its decision as follows:

V. AWARD OF THE ARBITRATOR
5.1 For the reasons set out above, we determine that, in the matter (Original Complaint by Japan),

the level of nullification or impairment suffe red by Japan in a particular year can be
deemed to be equal to the total of disbursements made under the CDSOA for the
preceding year relating to anti-dumping or countervailing duties paid on imports from
Japan, multiplied by the coefficient identified in Section III.D above.
5.2 Accordingly, we decide that the su spension by Japan of concessions or other
obligations in the form of the imposition of an additional import duty above bound
custom duties on a list of products originating in the United States covering, on a
yearly basis, a total value of trade not exceeding, in US dollars, the amount resulting
from the following equation:
Amount of disbursements under CDSOA for the most recent year for
which data are available relating to anti-dumping or countervailing
duties paid on imports from Japan at that time, as published by the
United States' authorities.
multiplied by:
0.72
would be consistent with Article 22.4 of the DSU.
To date, the United States has still not implemented the recommendations and rulings of the DSB with
respect to the CDSOA, and no mutually satisfactory solution has been reached.

 Article 22.7 of the DSU provides that “[t]he DSB shall be informed promptly of the decision
of the arbitrator and shall upon request, grant authorization to suspend concessions or other
obligations where the request is consistent with th e decision of the arbitrator, unless the DSB decides
by consensus to reject the request.” Therefore, Japan hereby requests authorization from the DSB to
suspend the application to the United States of ta riff concessions and related obligations under GATT
1994, in the form of the imposition of additional im port duties on products originating in the United
States, at a level not exceeding every year 72% of the amount of CDSOA disbursements relating to
anti-dumping or countervailing duties paid on imports from Japan for the most recent year for which
data are available at that time.

 In accordance with the arbitration award, Japan will notify the DSB every year, prior to the
entry into force of a level of suspension of c oncessions or other obligations, the list indicating the
level of additional import duties on the selected products which will be drawn from the list of
products attached.

ANNEX: LIST OF PRODUCTS

Note: The imposition of additional duties would a pply to the products of the United States to be
selected from the products classified in the list belo w. The list uses the 9-digit code classification
found in the Harmonized Tariff Schedule of Jap an. The descriptions provided herein are for
information purposes only.

descriptions HS codes
fish and crustaceans
 030212019 030212020 030611000 - - -
products of animal origin
 050510000 - - - - -
vegetable products
 070959010 090111000 - - - -
cement
 252329000 252390000 - - - -
petroleum spirits
 271011139 - - - - -
chemical products
290369900 290490000 291830200 292149000 292429000 293100000
293229020 293299000 293361000 293399090 293410000 293500000

293627000 294150000 320300210 350790000 - -
plastics and articles thereof
 391220000 392410000 392690021 - - -
paper and articles thereof
 481022000 482390200 - - - -
textiles, clothing and textile articles
540241022 550490020 560312230 560312290 560750000 570320100
570330100 570330200 570500022 590390000 591000020 600532000
610130011 610443010 610510011 610610011 610610012 610620011
610620013 610711000 610910011 610990012 611020011 611020019
611020029 611030014 611430011 611512000 611592500 611593500
620192200 620193200 620292200 620293200 620332200 620343200
620432200 620442200 620443200 620449200 620452200 620520000
620630210 621133200 621143200 621510010 621600500 630710020

630790010 630790029 650590090 650590010 - -
base metals and articles thereof
720690010 720690020 720711090 720712010 720712090 720719000
720810010 720826010 720827010 720827021 720836010 720837011
720837019 720838010 720839010 720839029 720840039 720851011
720851019 720851031 720851039 720852011 720852019 720852039
720853010 720854010 720854029 720915019 720916011 720916019
720916029 720917011 720917019 720917021 720917029 720918019
720918029 720925019 720925029 720926011 720926019 720926021
720926029 720927011 720927019 720927029 720928019 720928029
721011000 721012000 721020000 721030021 721030029 721061000

 721069000 721070000 721090010 721090020 721114010 721114029

721119010 721119021 721119029 721123000 721129010 721129090
721190000 721210000 721220010 721220021 721220029 721230000
721240000 721250090 721260010 721260020 721391020 721399090
721410000 721420000 721491010 721499010 721499019 721499090
721550010 721550019 721550090 721590010 721590020 721650000
721661000 721699000 721710010 721710090 721720010 721720019
721720090 721720099 721730099 721790090 721810000 721891000
721899000 721911000 721912000 721914000 721921000 721922000
721923000 721924000 721931000 721932000 721933000 721934000
721935000 721990000 722011000 722012000 722090000 722100000
722211000 722219000 722220000 722230000 722240000 722410010
722410030 722490030 722530010 722530020 722540010 722540020
722550010 722550020 722591030 722592030 722599030 722691010
722691020 722692020 722694030 722699010 722699020 722699030
722710000 722790010 722790020 722830010 722830020 722840010
722840020 722850010 722850020 722860020 722870020 722910000
722920000 722990021 722990029 730110010 730110020 730210000
730290000 730300000 730410010 730410020 730421010 730421090
730429010 730431010 730431020 730439010 730439020 730441020
730449020 730451010 730451020 730459020 730490030 730490040
730531010 730531020 730539010 730539020 730590020 730610020
730620010 730620020 730630011 730630019 730630029 730630090
730640000 730650000 730660029 730690010 730690020 730719000
730793000 730840000 730890090 730900000 731010000 731021000
731210091 731210092 732393000 740921000 741021000 741999090

820750090 820900090 - - - -
machinery
840721000 841410000 841430010 841490010 842290000 842489090
842720000 843149020 844240000 844311000 844330000 846299000
846610010 846610090 846630000 846692000 847290000 847310000

847321000 847790010 848340010 - - -
bearings
848210000 848220000 848230000 848240000 848250000 848280000
848291000 848299000 848320010 848320090 848330010 848330090
electrical machinery and equipment and parts thereof
850110011 850110019 850140000 850152000 850213000 850519000
850710010 850980000 851310000 851680000 852110000 852190000
852540000 852731000 852813000 852822000 853340000 854340000

854381000 - - - - -
vehicles
 871200100 - - - - -
optical, photographic, cinematographic, measuring, checking instruments and apparatus; parts and
accessories thereof
900220000 900410000 901180000 901480010 901480090 901790010
901790090 902740000 902990000 903110000 903130000 -
musical instruments; parts and accessories thereof
 920999000 - - - - -

furniture
 940161020 940320000 940360190 940390010 940429000 940490090
prefabricated buildings
 940600010 - - - - -
toys and sports requisites
 950390019 950490090 950639000 950699000 - -
miscellaneous manufactured articles
 960321000 - - - - -