UNITED STATES – COUNTERVAILING DUTY MEASURES ON CERTAIN PRODUCTS FROM CHINA
Document: Request for Consultations by China
Date: 30 May 2012
Document codes: WT/DS437/1; G/L/988; G/SCM/D90/1
Complainant: China
Respondent: U.S.
Third parties: Australia, Brazil, Canada, EU, India, Japan, South Korea, Norway, Russia, Turkey, Vietnam, Saudi Arabia
Dispute stage: Implementation & Compliance
Agreements cited: Art. 11.1, 11.2, 11.3, 1.1(a)(1), 2, 1.1(b), 14(d), 12.7, 1.1, 10, 32.1  Subsidies and Countervailing Measures (SCM)Art. VI, XXIII  GATT 1994Art. 30  Subsidies and Countervailing Measures (SCM)Art. 15  Protocol of Accession

UNITED STATES – COUNTERVAILING DUTY MEASURES ON
CERTAIN PRODUCTS FROM CHINA

Request for Consultations by China

 The following communication, dated 25 May 2012, from the delegation of China to the
delegation of the United States and to the Chairperson 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 Unde rstanding on Rules and Procedures Governing the
Settlement of Disputes (the DSU), Article XXIII :1 of the General Agreement on Tariffs and
Trade 1994 (GATT 1994), and Article 30 of the Agreement on Subsidies and Countervailing
Measures (the SCM Agreement).
This request concerns the measures identified in Part A below. The legal basis for this
complaint is set forth in Part B below.
A. S
PECIFIC MEASURES AT ISSUE
This request for consultations concerns th e preliminary and final countervailing duty
measures identified in Appendix 1. 1 These measures were issued by the United States Department of
Commerce (the "USDOC"). The measures include th e determination by the USDOC to initiate the
identified countervailing duty investig ations, the conduct of those inv estigations, any preliminary or
final countervailing duty determinati ons issued in those investigations, any definitive countervailing
duties imposed as a result of those investigati ons, as well as any notices, annexes, decision
memoranda, orders, amendments, or other instrument s issued by the United States in connection with
the countervailing duty measures identified in Appendix 1.
The measures at issue also include the "rebuttable presumption" established and applied by
the USDOC, under which the USDOC considers majority government ownership of an enterprise
sufficient to determine that an enterprise is a "pub lic body" within the meaning of Article 1.1 of the
SCM Agreement, unless a party is able to demonstr ate that majority government ownership does not

1 For ease of reference, China will use certain short names and abbreviations to refer to the individual
investigations at issue. Appendix 2 contains a table indicating the short names and abbreviations associated
with each investigation.

result in "control" of the enterprise.
2 (China hereafter refers to this measure as the "rebuttable
presumption").
B. LEGAL BASIS OF THE COMPLAINT
China considers that the countervailing duty measu res specified above are inconsistent with
the obligations of the United States under, inter alia, Article VI of the GATT 1994, Articles 1, 2, 10,
11, 12, 14, and 32 of the SCM Agreement, and Article 15 of the Protocol on the Accession of the
People's Republic of China (the "Protocol of Accession").
1. "As Applied" Claims
China considers that the initiation and c onduct of the identified countervailing duty
investigations, as well as the countervailing dut y determinations, orders, and any definitive
countervailing duties imposed pursuant thereto, are in consistent, at a minimum, with the obligations
of the United States specified below.
(a) In connection with the alleged provision of input goods for less than adequate remuneration:
(1) Articles 11.1, 11.2, and 11.3 of the SCM Agreement, because the United States
initiated countervailing duty inv estigations in respect of allegations that state-owned
enterprises ("SOEs") confer countervailable s ubsidies through their sales of inputs to
downstream producers, in the absence of su fficient evidence in the petition to support
an allegation that SOEs constitute " public bodies" within the meaning of
Article 1.1(a)(1) of the SCM Agreement, and in the absence of a sufficient review of
the petition by the USDOC in respect of this allegation;3
(2) Article 1.1(a)(1) of the SCM Agreement, because the USDOC incorrectly
determined, or did not have a sufficient b asis to determine, that certain SOES are
"public bodies" within the meaning of that provision;4
(3) Articles 11.1, 11.2, and 11.3 of the SC M Agreement, because the USDOC initiated
countervailing duty investigations in respect of the alleged provision of inputs for less
than adequate remuneration, in the absence of sufficient evidence in the petition to

2 See, e.g., KASR I&D, pp. 42-44; SCASP I&D pp. 64-65; PG I&D pp. 67-69. The USDOC has stated
that this rebuttable presumption is "reflected" in th e "Preamble" to its countervailing duty regulations. See
KASR I&D, p. 42, citing Countervailing Duties; Final Rule, 63 Fed. Reg. 65,348 (November 25, 1998) ("CVD
Preamble"). For this purpose, the CVD Preamble is hereby included as a measure at issue in this dispute.
3 China limits this claim to the countervailing duty initiation determinations in Steel Wire, Steel
Cylinders, Steel Wheels, Solar Panels , Wind Towers, and Steel Sinks. These are the countervailing duty
investigations that the USDOC initiated after the issuance of the Appellate Body Report in United States –
Definitive Anti-Dumping and Countervailing Duties on Certain Products from China (WT/DS379/AB/R)
(11 March 2011). While China considers that the USDOC's initiation determinations prior to this date were also
in error, China is limiting this claim to those initiation determinations concerning the alleged provision of inputs
for less than adequate remuneration in which the USDOC acted in open disregard of the Appellate Body's
interpretation of the term "public body" in Article 1.1(a)(1) of the SCM Agreement.
4 This claim arises in respect of the determinations by the USDOC that certain SOEs provided inputs
such as hot-rolled steel, steel wire rod, steel rounds and billets, stainless steel coil, caustic soda, primary
aluminum, green tubes, zinc, and papermaking chemicals for less than adequate remuneration, in the following
investigations: SPP, SLP, TBLG, KASR, OCTG, SWS, SG, WD, SCASP, PG, DP, AE, SWH, and GSW. The
claim also arises in respect of the preliminary determinations by the USDOC to the same effect in SCY and
CSP.

support an allegation that any such subsid y would be specific under Article 2 of the
SCM Agreement, and in the absence of a sufficient review of the petition by the
USDOC in respect of this allegation;
5
(4) Article 2 of the SCM Agreement, because the USDOC failed to make a proper
determination on the basis of positive evid ence that the alleged provision of input
goods for less than adequate remuneration w as specific to an enterprise or industry or
group of enterprises or industries;6
(5) Article 1.1(b) and Article 14(d) of the SCM Agreement, because the USDOC
improperly found that the alleged provisi on of goods for less than adequate
remuneration conferred a benefit upon the recipient, and improperly calculated the
amount of any benefit allegedly conferred, including, inter alia, its erroneous findings
that prevailing market conditions in China were "distorted" as the basis for rejecting
actual transaction prices in China as benchmarks.7
(b) In connection with the alleged provision of land and land-use rights for less than adequate
remuneration:
(1) Article 2 of the SCM Agreement, because the USDOC failed to make a proper
determination on the basis of positive eviden ce that the alleged subsidy was specific
to an enterprise or industry or to a group of enterprises or industries.8
(c) In connection with export restraints allegedly maintained by China:9
(1) Articles 11.1, 11.2, and 11.3 of the SC M Agreement, because the USDOC initiated
countervailing duty investigations into these allegations; and
(2) Article 1.1(a)(1) of the SCM Agreement, because the USDOC improperly determined
that export restraints provided a "financial contribution" within the meaning of that
provision.
(d) In connection with all of the identified c ountervailing duty investigations in which the
USDOC has issued a preliminary or final countervailing duty determination:

5 This claim arises in respect of the investigations identified in footnote 4 above, plus USWT and SSI.
6 This claim arises in respect of the investigations noted in footnote 4 above.
7 This claim arises in respect of the investigati ons noted in footnote 4 above. In none of the
investigations at issue did the USDOC purport to rely upon Article 15(b) of the Protocol of Accession as the
basis for rejecting actual transaction prices in China as be nchmarks. To the extent that the United States claims
otherwise, China considers that the USDOC acted inconsistently with Article 15(b) of the Protocol of Accession
by failing to make a proper determination of "special difficulties" as the basis for rejecting actual transaction
prices in China as benchmarks.
8 This claim arises in respect of the determin ations by the USDOC that producers of subject
merchandise received land and land-use rights for less than adequate remuneration, in the following
investigations: LTP, CA, SLP, OCTG, SWS, SCASP, PG, AE.
9 These claims arise in respect of the determinati ons by the USDOC that export restraints allegedly
maintained by the Government of China constitute a countervailable subsidy, in the following investigations:
MCB, SCASP.

(1) Article 12.7 of the SCM Agreement, because the USDOC resorted to facts available,
and used facts available, including so-called "adverse" facts available, in manners that
were inconsistent with that provision.
10
2. "As Such" Claims
China considers that the "rebuttable presumpti on" established and applied by the USDOC in
respect of whether SOEs can be classified as "public bodies" is, as such, inconsistent with
Articles 1.1, 10, and 32.1 of the SCM Agreement, and Article VI of the GATT 1994.
China reserves the right to raise additional cl aims and legal matters regarding the above-
mentioned measures during the course of the consultations.
China looks forward to receiving the reply of the Government of the United States to this
request and to setting a mutually convenient date for consultations.

Appendix 1

Investigation C-570-921 ("Thermal Paper")

 Lightweight Thermal Paper From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 73 Federal Register 57323 (2 October 2008).
 Lightweight Thermal Paper From the People's Republic of China : Notice of Amended Final
Affirmative Countervailing Duty Determination and Notice of Countervailing Duty Order,
73 Federal Register 70958 (24 November 2008).
Investigation C-570-931 ("Pressure Pipe")

 Circular Welded Austenitic Stainless Pressure Pi pe from the People's Republic of China :
Final Affirmative Countervailing Duty De termination, 74 Federal Register 4936
(28 January 2009).
 Circular Welded Austenitic Stainless Pressure Pipe from the People's Republic of China :
Countervailing Duty Order, 74 Federal Register 11712 (19 March 2009).
Investigation C-570-936 ("Line Pipe")

 Certain Circular Welded Carbon Quality Steel Line Pipe from the People's Republic of
China: Final Affirmative Countervailing Duty De termination, 73 Federal Register 70961 (24
November 2008).
 Certain Circular Welded Carbon Quality Steel Line Pipe from the People's Republic of
China: Notice of Amended Final Affirmative C ountervailing Duty Determination and Notice
of Countervailing Duty Order, 74 Federal Register 4136 (23 January 2009).
Investigation C-570-938 ("Citric Acid")

 Citric Acid and Certain Citrate Salts From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 74 Federal Register 16836 (13 April 2009).
 Citric Acid and Certain Citrate Salts From the People's Republic of China : Notice of
Countervailing Duty Order, 74 Federal Register 25705 (29 May 2009).
Investigation C-570-940 ("Lawn Groomers")

 Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the People's Republic
of China: Final Affirmative Countervailing Duty Determination, 74 Federal Register 29180
(19 June 2009).
 Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the People's Republic
of China: Countervailing Duty Order, 74 Federal Register 38399 (3 August 2009).
Investigation C-570-942 ("Kitchen Shelving")

 Certain Kitchen Appliance Shelving and Ra cks from the People's Republic of China : Final
Affirmative Countervailing Duty Determination, 74 Federal Register 37012 (27 July 2009).
 Certain Kitchen Appliance Shelving and Racks from the People's Republic of China :
Countervailing Duty Order, 74 Federal Register 46973 (14 September 2009).

Investigation C-570-944 ("OCTG")

 Certain Oil Country Tubular Goods from the People's Republic of China : Final Affirmative
Countervailing Duty Determination, Final Negative Critical Circumstances Determination, 74
Federal Register 64045 (7 December 2009).
 Certain Oil Country Tubular Goods from the People's Republic of China : Amended Final
Affirmative Countervailing Duty Determinati on and Countervailing Duty Order, 75 Federal
Register 3203 (20 January 2010).
Investigation C-570-946 ("Wire Strand")

 Pre-Stressed Concrete Steel Wire Strand from the People's Republic of China : Final
Affirmative Countervailing Duty Determination, 75 Federal Register 28557 (21 May 2010).
 Pre-Stressed Concrete Steel Wire Strand from the People's Republic of China : Notice of
Amended Final Affirmative Countervailing Duty Determination and Notice of Countervailing
Duty Order, 75 Federal Register 38977 (7 July 2010).
Investigation C-570-948 ("Steel Grating")

 Certain Steel Grating from the People's Republic of China : Final Affirmative Countervailing
Duty Determination, 75 Federal Register 32362 (8 June 2010).
 Certain Steel Grating from the People's Republic of China : Countervailing Duty Order, 75
Federal Register 43144 (23 July 2010).
Investigation C-570-950 ("Wire Decking")

 Wire Decking from the People's Republic of China : Final Affirmative Countervailing Duty
Determination, 75 Federal Register 32902 (10 June 2010).
11
Investigation C-570-955 ("Magnesia Bricks")

 Certain Magnesia Carbon Bricks From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 75 Federal Register 45472 (2 August 2010).
 Certain Magnesia Carbon Bricks from the People's Republic of China : Countervailing Duty
Order, 75 Federal Register 57442 (21 September 2010).
Investigation C-570-957 ("Seamless Pipe")

 Certain Seamless Carbon and Alloy Steel Stand ard, Line, and Pressure Pipe from the
People's Republic of China : Final Affirmative Countervailing Duty Determination, Final
Affirmative Critical Circumstances Determinati on, 75 Federal Register 57444 (21 September
2010).
 Certain Seamless Carbon and Alloy Steel Stand ard, Line, and Pressure Pipe from the
People's Republic of China : Amended Final Affirmative C ountervailing Duty Determination
and Countervailing Duty Order, 75 Federal Register 69050 (10 November 2010).

11 The U.S. International Trade Commission issued a negative final injury determination in the Wire
Decking investigation. The investigation therefore did not result in the imposition of a countervailing duty
order. However, the determination of the U.S. International Trade Commission has been appealed to the U.S.
Court of International Trade.

Investigation C-570-959 ("Print Graphics")

 Certain Coated Paper Suitable for High-Qua lity Print Graphics Using Sheet-Fed Presses
From the People's Republic of China : Final Affirmative Counterva iling Duty Determination,
75 Federal Register 59212 (27 September 2010).
 Certain Coated Paper Suitable for High-Qua lity Print Graphics Using Sheet-Fed Presses
From the People's Republic of China : Amended Final Affirmative Countervailing Duty
Determination and Countervailing Duty Order, 75 Federal Register 70201
(17 November 2010).
Investigation C-570-966 ("Drill Pipe")

 Drill Pipe From the People's Republic of China : Final Affirmative Countervailing Duty
Determination, Final Affirmative Critical Circ umstances Determination, 76 Federal Register
1971 (11 January 2011).
 Drill Pipe From the People's Republic of China : Countervailing Duty Order, 76 Federal
Register 11758 (3 March 2011).
Investigation C-570-968 ("Aluminum Extrusions")

 Aluminum Extrusions From the People's Republic of China: Final Affirmative Countervailing
Duty Determination, 76 Federal Register 18521 (4 April 2011).
 Aluminum Extrusions From th e People's Republic of China : Countervailing Duty Order, 76
Federal Register 30653 (26 May 2011).
Investigation C-570-971 ("Wood Flooring")

 Multilayered Wood Flooring From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 76 Federal Register 64313 (18 October 2011).
 Multilayered Wood Flooring From the People's Republic of China : Countervailing Duty
Order, 76 Federal Register 76693 (8 December 2011).
Investigation C-570-974 ("Steel Wheels")

 Certain Steel Wheels From the People's Republic of China : Initiation of Countervailing Duty
Investigation, 76 Federal Register 23302 (26 April 2011).
 Certain Steel Wheels From the People's Republic of China : Final Affirmative Countervailing
Duty Determination, Final Affirmative Critical Circumstances Determination, 77 Federal
Register 17017 (23 March 2012).
12
Investigation C-570-976 ("Steel Wire")

 Galvanized Steel Wire From th e People's Republic of China : Initiation of Countervailing
Duty Investigation, 76 Federal Register 23564 (27 April 2011).
 Galvanized Steel Wire From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 77 Federal Register 17418 (26 March 2012).13

12 On 17 April 2012, the U.S. International Trade Commission issued a negative final injury
determination in the Steel Wheels investigation.

Investigation C-570-978 ("Steel Cylinders")

 High Pressure Steel Cylinders From the People's Republic of China : Initiation of
Countervailing Duty Investigation, 76 Federal Register 33239 (8 June 2011).
 High Pressure Steel Cylinders From the People's Republic of China : Final Affirmative
Countervailing Duty Determination, 77 Federal Register 26738 (7 May 2012).
Investigation C-570-980 ("Solar Panels")

 Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the
People’s Republic of China : Initiation of Countervailing Duty Investigation, 76 Federal
Register 70966 (16 November 2011).
 Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the
People’s Republic of China: Preliminary Affirmative Counter vailing Duty Determination, 77
Federal Register 17439 (26 March 2012).
Investigation C-570-982 ("Wind Towers")

 Utility Scale Wind Towers From the People’s Republic of China : Initiation of Countervailing
Duty Investigation, 24 Federal Register 3447 (24 January 2012).
Investigation C-570-984 ("Steel Sinks")

 Drawn Stainless Steel Sinks From the People’s Republic of China: Initiation of
Countervailing Duty Investigation, 77 Federal Register 18211 (27 March 2012).

 For the avoidance of doubt, the measures incl ude any modifications or amendments to the
measures identified above, even if those modifications or amendments are not specifically listed.

13 On 23 April 2012, the U.S. International Trade Commission issued a negative final injury
determination in the Steel Wire investigation.

Appendix 2

OFFICIAL NAME SHORT FORM ACRONYM
Lightweight Thermal Paper from the People's
Republic of China
Thermal Paper LTP
Circular Welded Austenitic Stainless Pressure Pipe
from the People's Republic of China
Pressure Pipe SPP
Certain Circular Welded Carbon Quality Steel
Line Pipe from the People's Republic of China
Line Pipe SLP
Citric Acid and Certain Citrate Salts From the
People's Republic of China
Citric Acid CA
Certain Tow Behind Lawn Groomers and Certain
Parts Thereof from the People's Republic of China
Lawn Groomers TBLG
Certain Kitchen Appliance Shelving and Racks
From the People's Republic of China
Kitchen Shelving KASR
Certain Oil Country Tubular Goods from the
People's Republic of China
OCTG OCTG
Prestressed Concrete Steel Wire Strand From the
People's Republic of China
Wire Strand SWS
Certain Steel Grating From the People's Republic
of China
Steel Grating SG
Wire Decking from the People's Republic of China Wire Decking WD
Certain Magnesia Carbon Bricks From the
People's Republic of China
Magnesia Bricks MCB
Certain Seamless Carbon and Alloy Steel
Standard, Line, and Pressure Pipe from the
People's Republic of China
Seamless Pipe SCASP
Certain Coated Paper Suitable for High-Quality
Print Graphics Using Sheet-Fed Presses From the
People's Republic of China
Print Graphics PG
Drill Pipe From the People's Republic of China Drill Pipe DP
Aluminum Extrusions From the People's Republic
of China
Aluminum Extrusions AE
Multilayered Wood Flooring From the People's
Republic of China
Wood Flooring MWF
Certain Steel Wheels From the People's Republic
of China
Steel Wheels SWH

Galvanized Steel Wire From the People's Republic
of China
Steel Wire GSW
High Pressure Steel Cylinders From the People's
Republic of China
Steel Cylinders SCY
Crystalline Silicon Photovoltaic Cells, Whether or
Not Assembled Into Modules, From the People’s
Republic of China
Solar Panels CSP
Utility Scale Wind Towers From the People’s
Republic of China
Wind Towers USWT
Drawn Stainless Steel Sinks From the People’s
Republic of China
Steel Sinks SSI