UNITED STATES – MEASURES RELATING TO ZEROING AND SUNSET REVIEWS
Document: Status Report by the United States Addendum
Date: 14 February 2011
Document codes: WT/DS322/36/Add.17
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 11 Febr uary 2011, from the delegation of the
United States to the Chairman of the Dispute Settleme nt 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 B ody ("DSB") adopted its recommendations and
rulings in (WT/DS322). At the
following DSB meeting, on 20 February2007, the United States informed the DSB of its intention to
implement the recommendations and rulings of th e 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 Co mmerce published a notice requesting comments
on its intention to no longer perform average-to-ave rage 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 Jap an 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
proposes 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 investig ations, and is proposing 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 is proposing to withdraw
any such practice.

 The proposal has been published in the Federal Register, 75 Fed. Reg. 81533 (28 Dec. 2010).
Under US law, there will be a period for public co mment on this proposal and for consultations with
appropriate committees in the US Congress.

The United States will continue to consult with interested parties as it works to address the
findings contained in these reports.