UNITED STATES – MEASURES RELATING TO ZEROING AND SUNSET REVIEWS
Document: Status Report by the United States Addendum
Date: 10 February 2012
Document codes: WT/DS322/36/Add.29
Complainant: Japan
Respondent: U.S.
Third parties: Argentina, China, EU, Hong Kong, India, South Korea, Mexico, New Zealand, Norway, Taiwan, Thailand
Dispute stage: Implementation & Compliance
Agreements cited: Art. 2.1, 2.4, 2.4.2, 9.1, 9.2, 9.3, 5.8, 3, 9.5, 11.1, 11.2, 11.3, 1  Anti-dumpingArt. VI  GATT 1994Art. 18.4  Anti-dumpingArt. XVI:4  Agreement Establishing the World Trade Organization

UNITED STATES – MEASURES RELATING TO ZEROING
AND SUNSET REVIEWS

Status Report by the United States

Addendum

 The following communication, dated 9 February 2012, from the delegation of the
United States to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 21.6
of the DSU.

Status Report Regarding Implementation of the
DSB Recommendations and Rulings in the Dispute

(WT/DS322)

 The United States submits this report in accordance with Article 21.6 of the Understanding on
Rules and Procedures Governing the Settlement of Disputes ("DSU").

 On 23 January 2007, the Dispute Settlement Body ("DSB") adopted its recommendations and
rulings in (WT/DS322). At the
following DSB meeting, the United States informed the DSB of its intention to implement the
recommendations and rulings of the DSB in connection with this matter. The United States and Japan
subsequently agreed that the reasonable period of time for the United States to implement the
recommendations and rulings of the DSB would end on 24 December 2007.

 On 6 March 2006, the US Department of Commerce published a notice requesting comments
on its intention to no longer perform average-to-a verage comparisons in anti-dumping investigations
without offsets. On 26 January 2007, the Departme nt published a notice that the date after which it
would no longer perform such comparisons would be 22 February 2007. Accordingly, as of
22 February 2007, the United States is no longer pe rforming average-to-average comparisons in
anti-dumping investigations without offsets.

 With respect to the one investigation that Japan challenged "as applied," the United States
issued a revised determination in connection with that investigation on 21 December 2007. On
20 May 2008, the Department published a notice of im plementation of the revised determination, in
which it calculated the anti-dumping duty margins with offsets.

 On 31 August 2009, the DSB adopted the Appella te Body report and the panel report, as
modified by the Appellate Body report, regarding the recourse to Article 21.5 of the DSU by Japan.

 On 28 December 2010, in part in response to th e findings in this dispute with respect to
administrative reviews, new shipper reviews, sunset reviews, and investigations using transaction-to-
transaction comparisons, the US Department of Commerce announced a proposal to change the
methodology for calculating weighted average du mping margins and assessment rates in certain
anti-dumping proceedings, including administrative and new shipper reviews. The Department
proposed to compare monthly weighted average export prices with monthly weighted average normal
values, and to grant an offset for comparisons that show an export price that exceeds normal value in
the calculation of the weighted average margin of dumping and assessment rate. The modifications
the Department has made with respect to inves tigations, and proposed to make with respect to
reviews, address the underlying issue with respect to s unset reviews. In addition, to the extent that
any prior application of the transaction-to-tran saction methodology in an investigation could be
considered as establishing a practice with respect to offsets, the Department proposed to withdraw any
such practice.

 The proposal was published in the Federal Register, 75 FR 81533 (Dec. 28, 2010). The
United States is now completing the modification of its methodologies, as described in the Federal
Register notice, and expects to publish the final mo dification in the Federal Register in the coming
days.

 On 6 February 2012, the United States a nd Japan signed a Memorandum of Understanding
regarding this dispute. This Memorandum of Understanding is being circulated to the Members of the
DSB.