UNITED STATES – ANTI-DUMPING MEASURES ON CORROSION-RESISTANT CARBON STEEL FLAT PRODUCTS FROM KOREA
Document: Agreement on Procedures between Korea and the United States
Date: 15 February 2012
Document codes: WT/DS420/6
Complainant: South Korea
Respondent: U.S.
Third parties: EU, Japan, Mexico, China, Norway, Brazil, Thailand
Dispute stage: Panel
Agreements cited: Art. 9.3, 11.3  Anti-dumping  GATT 1994  Agreement Establishing the World Trade Organization

UNITED STATES – ANTI-DUMPING MEASURES ON CORROSION-RESISTANT
CARBON STEEL FLAT PRODUCTS FROM KOREA

Agreement on Procedures between Korea and the United States

 The following communication, dated 14 Februa ry 2012, from the delegation of the Republic
of Korea to the Chairperson of the Dispute Settleme nt Body, is circulated at the request of this
delegation.

 The Republic of Korea ("Korea") would like to inform the Dispute Settlement Body of the
attached Agreement on Procedures between Korea a nd the United States with respect to the dispute
United States - Anti-Dumping Measures on Corrosion-Resistant Carbon Steel Flat Products from
Korea (DS420).

 Korea requests that you please circulate the attached agreement to the Members of the
Dispute Settlement Body in the WT/DS420 document series.

On 31 January 2011, the Government of th e Republic of Korea ("Korea") requested
consultations with the United States (hereinafter referred to collectively as the "parties") pursuant to
Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the
"DSU"), Article XXII of the General Agreement on Tariffs and Trade 1994 (the "GATT 1994") and
Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and
Trade 1994 (the "Anti-Dumping Agreement"), with r espect to antidumping measures on imports into
the United States from Korea of corrosion-resistant carbon steel flat products. Consultations were held
on 25 March and 18 May 2011. The cons ultations have enabled the parties to agree on the following
procedures for the purpose of this dispute:
1. Should Korea request the establishment of a panel in this dispute, it will do so no earlier than
the regular February 2012 meeting of the Dispute Settlement Body ("DSB") and will submit
the request attached to this agreement (the "Panel Request"). The parties also mutually
understand that the scope of Korea's Panel Requ est is limited to reviews completed as of
31 January 2011.
2. The United States will not oppose the establishment of a panel at the first DSB meeting at
which the Panel Request has been duly placed on the agenda by Korea provided that the
meeting does not take place before February 1, 2012. The Parties will make every effort to
ensure that the panel is composed within 30 days and without recourse to the Director General
under Article 8.7 of the DSU. The parties will endeavor to reach agreement on individuals
who have prior experience serving on panels that have addressed the issue of zeroing.
3. The parties will cooperate to enable the panel to circulate its report as quickly as possible in
light of the requirements of the DSU. To that end, the parties will work expeditiously to
reach agreement on expedited working procedures, that they will jointly ask the panel to
adopt, and that will allow for the circulation of the final panel report no later than six months
after the composition of the panel. That agreem ent will include a request that the parties file
only one written submission each, and that the pa nel have only one subs tantive meeting with
the parties.
4. Korea will not request that the panel suggest, pur suant to Article 19.1, second sentence, of the
DSU, ways in which the United States could implement the panel's recommendations.
5. Korea recognizes that the U.S. Department of Commerce, pursuant to Section 123(g) of the
Uruguay Round Agreements Act, is presently engaged in a process (the "Section 123
process") to review its practices and regul ations governing the calculation of dumping
margins in certain reviews of dumping orders.1 Korea stipulates that any issues relating to the
Section 123 process, any resulting final Section 123 determination, a nd any determinations
made based on the results of a final Section 123 determination are not within the terms of
reference of a panel established to consider th is dispute and that it will not refer to the
preliminary or any final Section 123 determina tion, or determinations made based on the
results of a final Section 123 determination, in its submissions to the panel, except to confirm
that these matters are not within its terms of reference.
6. Nothing in this agreement limits in any way the ri ght of the parties to contest the other party's
claims, including the right to raise procedural objections during the course of the proceeding.

1 This process was announced in the following notice: Antidumping Duty Proceedings: Calculation of
the Weighted Average Dumping Margin and Assessment Rates in Certain Antidumping Proceedings, 75 Fed.
Reg. 81,553 (28 Dec. 2010).

7. If, in the course of this dispute, proceedings are undertaken pursuant to Article 21.5 of the
DSU, then no provision of this Agreement on Pr ocedures limits the right of either party to
submit arguments as to the existence or cons istency with a covered agreement of measures
taken to comply with any of the DSB rulings and recommendations with regard to any
measure within the scope of Korea's Panel Request, as the measure applies to imports
occurring after the expiry of the reasonable period of time for implementation.

For the Republic of Korea

H.E. Mr. Sang-Ki Park
Ambassador
For the United States of America

H.E. Mr. Michael Punke
Ambassador

(WT/DS420)

Request for the Establishment of a Panel by the Republic of Korea

 Upon instructions from my authorities, I hereby convey the request of the Government of the
Republic of Korea ("Korea") to the Dispute Settlement Body ("DSB") for the establishment of a panel
under Article XXIII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), Articles
4 and 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes
("DSU"), and Article 17.4 of the Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement") with respect to certain
anti-dumping measures imposed by the United States on imports of corrosion-resistant carbon steel
flat products from Korea, as further described below.

A. Prior Consultations

 On 31 January 2011, Korea requested consulta tions with the United States under Article 4 of
the DSU, Article XXII of the GATT 1994, and Article 17 of the Anti-Dumping Agreement. 2 These
consultations were requested concerning anti- dumping measures imposed by the United States on
imports of corrosion-resistant carbon steel flat produc ts from Korea. Consultations were held on
25 March 2011 and 18 May 2011, resp ectively. These consultations provided helpful clarifications,
but have failed to resolve the dispute.

B. The Measures at Issue

 The measures at issue are specific instances in which the United States Department of
Commerce ("USDOC") applied the zeroing methodology in following proceedings: (1) administrative
review determinations, the imposition of cash depo sit requirements, and subsequent assessment of
final anti-dumping duties pursuant thereto; and (2) s unset review determinations. More specifically,
these specific instances in which the USDOC applied the zeroing methodology are as follows:

1. Administrative Review Determinations and Subsequent Assessment of Final Anti-Dumping
Duties Pursuant Thereto

a. The USDOC initiated its second anti-dumping duty administrative review of certain
corrosion-resistant carbon steel flat products from Korea on 5 September 1995.3 The USDOC
conducted its administrative review of the ex tent of dumping under the statutory authority
provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and under the
regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its final results
on 15 April 1997,
4 and amended the results on 20 June 1997 5 and 11 June 2002. 6 T h e

2 WT/DS420/1.
3 See Initiation of Antidumping Duty Administrative Reviews, 60 Fed. Reg. 46817 (5 September 1995).
4 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea: Final
Results of Antidumping Duty Administrative Reviews, 62 Fed. Reg. 18404 (15 April 1997).
5 See Notice of Amended Final Results of Antidumping Administrative Reviews: Certain Cold-Rolled
Carbon Steel Flat Products from Korea; Certain Corrosion-Resistant Carbon Steel Flat Products From the
Republic of Korea, 62 Fed. Reg. 33587 (20 June 1997).
6 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products From the Republic of
Korea: Amended Final Results of Antidumping Duty Administrative Reviews in Accordance with Court
Decision, 67 Fed. Reg. 39955 (11 June 2002).

USDOC's final and amended results and its fina l determination reflected and contained anti-
dumping margins, cash deposits and duty rates that were calculated by using zeroing.
b. The USDOC initiated its third anti-dumping duty administrative review of certain corrosion-
resistant carbon steel flat products from Korea on 13 September 1996. 7 The USDOC
conducted its administrative review of the ex tent of dumping under the statutory authority
provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and under the
regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its final results
on 18 March 1998,
8 and amended the results on 27 April 1998 9 and 11 June 2002 10. The
USDOC's final and amended results and its fina l determination reflected and contained anti-
dumping margins, cash deposits and duty rates that were calculated by using zeroing.
c. The USDOC initiated its fourth anti-dumping duty administrative review of certain corrosion-
resistant carbon steel flat products from Korea on 19 September 1997. 11 The USDOC
conducted its administrative review of the ex tent of dumping under the statutory authority
provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and under the
regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its final results
on 16 March 1999.
12 The USDOC's final results and its final determination reflected and
contained anti-dumping margins, cash deposits and duty rates that were calculated by using
zeroing.
d. The USDOC initiated its fifth anti-dumping duty administrative review of certain corrosion-
resistant carbon steel flat products from Korea on 23 September 1998. 13 The USDOC
conducted its administrative review of the ex tent of dumping under the statutory authority
provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and under the
regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its final results
on 13 March 2000,
14 and amended the results on 25 April 2000. 15 The USDOC's final and
amended results and its final determination reflected and c ontained anti-dumping margins,
cash deposits and duty rates that were calculated by using zeroing.
e. The USDOC initiated its sixth anti-dumping duty administrative review of certain corrosion-
resistant carbon steel flat products from Korea on 24 September 1999. 16 The USDOC

7 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 61 Fed. Reg. 48882
(17 September 1996).
8 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea: Final
Results of Antidumping Duty Administrative Reviews, 63 Fed. Reg. 13170 (18 March 1998).
9 See Notice of Amended Final Results of Antidumping Duty Administrative Reviews: Certain Cold-
Rolled Carbon Steel Flat Products from Korea; Certain Corrosion-Resistant Carbon Steel Flat Products from
Korea, 63 Fed. Reg. 20572 (27 April 1998).
10 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from the Republic of
Korea: Amended Final Results of Antidumping Duty Administrative Reviews in Accordance with Court
Decision, 67 Fed. Reg. 39956 (11 June 2002).
11 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 62 Fed. Reg. 50292 (25 September 1997).
12 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea: Final
Results of Antidumping Duty Administrative Reviews, 64 Fed. Reg. 12927 (16 March 1999).
13 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 63 Fed. Reg. 51893 (29 September 1998).
14 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea: Notice of
Final Results of Antidumping Duty Administrative Reviews, 65 Fed. Reg. 13359 (13 March 2000).
15 See Notice of Amended Final Results of Antidumping Duty Administrative Reviews: Certain Cold-
Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea, 65 Fed. Reg. 24180 (25 April 2000).
16 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 64 Fed. Reg. 53318 (1 October 1999).

conducted its administrative review of the ex tent of dumping under the statutory authority
provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and under the
regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its final results
on 16 January 2001,
17 and amended the results on 14 March 2001. 18 The USDOC's final and
amended results and its final determination reflected and c ontained anti-dumping margins,
cash deposits and duty rates that were calculated by using zeroing.
f. The USDOC initiated its seventh anti-dumping duty administrative review of certain
corrosion-resistant carbon steel flat products from Korea on 26 September 2000. 19 T h e
USDOC conducted its administrative review of the extent of dumping under the statutory
authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and
under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its
final results on 18 March 2002,
20 and amended the results on 29 April 2002. 21 The USDOC's
final and amended results and its final determination reflect ed and contained anti-dumping
margins, cash deposits and duty rates that were calculated by using zeroing.
g. The USDOC initiated its tenth anti-dumping duty administrative review and new shipper
review of certain corrosion-resistant carbon st eel flat products from Korea on 30 September
2003.22 The USDOC conducted its administrative review of the extent of dumping under the
statutory authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq.,
and under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its
final results on 14 March 2005.
23 The USDOC's final results and its final determination
reflected and contained anti-dumping margins, cash deposits and duty rates that were
calculated by using zeroing.
h. The USDOC initiated its eleventh anti-dumping duty administrative review of certain
corrosion-resistant carbon steel flat products from Korea on 22 September 2004. 24 T h e
USDOC conducted its administrative review of the extent of dumping under the statutory
authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and
under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its

17 See Notice of Final Results of Antidumping Duty Administrative Reviews: Certain Cold-Rolled and
Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 66 Fed. Reg. 3540 (16 January
2001).
18 See Notice of Amended Final Results of Antidumping Duty Administrative Reviews: Certain Cold-
Rolled and Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 66 Fed. Reg. 14883
(14 March 2001).
19 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 65 Fed. Reg. 58733 (2 October 2000).
20 See Notice of Final Results of Antidumping Duty Administrative Reviews: Certain Cold-Rolled and
Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 67 Fed. Reg. 11976 (18 March
2002).
21 See Notice of Amended Final Results of Antidumping Duty Administrative Reviews: Cold-Rolled and
Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 67 Fed. Reg. 20956 (29 April
2002).
22 See Notice of Initiation of Antidumping and Countervailing Duty Administrative Reviews, Request
for Revocation in Part and Deferral of Administrative Review, 68 Fed. Reg. 56262 (30 September 2003).
23 See Notice of Final Results of the Tenth Administrative Review and New Shipper Review of the
Antidumping Duty Order on Certain Corrosion–Resistant Carbon Steel Flat Products from the Republic of
Korea, 70 Fed. Reg. 12443 (14 March 2005).
24 See Notice of Initiation of Antidumping and Countervailing Duty Administrative Reviews and
Request for Revocation in Part, 69 Fed. Reg. 56745 (22 September 2004).

final results on 13 February 2006, 25 and amended the results on 20 March 2006. 26 The
USDOC's final and amended results and its fina l determination reflected and contained anti-
dumping margins, cash deposits and duty rates that were calculated by using zeroing.
i. The USDOC initiated its twelfth anti-dumping duty administrative review of certain
corrosion-resistant carbon steel flat products from Korea on 28 September 2005. 27 T h e
USDOC conducted its administrative review of the extent of dumping under the statutory
authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and
under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its
final results on 20 March 2007,
28 and amended the results on 26 April 2007. 29 The USDOC's
final and amended results and its final determination reflect ed and contained anti-dumping
margins, cash deposits and duty rates that were calculated by using zeroing.
j. The USDOC initiated its thirteenth anti-dumping duty administrative review and new shipper
review of certain corrosion-resistant carbon st eel flat products from Korea on 29 September
2006.30 The USDOC conducted its administrative review of the extent of dumping under the
statutory authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq.,
and under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its
final results on 17 March 2008. 31 The USDOC's final results and its final determination
reflected and contained anti-dumping margins, cash deposits and duty rates that were
calculated by using zeroing.
k. The USDOC initiated its fourteenth anti-dumping duty administrative review of certain
corrosion-resistant carbon steel flat products from Korea on 25 September 2007. 32 T h e
USDOC conducted its administrative review of the extent of dumping under the statutory
authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et seq., and
under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC published its
final results on 16 March 2009,
33 and amended the results on 28 April 2009. 34 The USDOC's
final and amended results and its final determination reflect ed and contained anti-dumping
margins, cash deposits and duty rates that were calculated by using zeroing.

25 See Notice of Final Results of the Eleventh Administrative Review of the Antidumping Duty Order on
Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 71 Fed. Reg. 7513 (13
February 2006).
26 See Notice of the Amended Final Results of the Eleventh Administrative Review of the Antidumping
Duty Order on Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 71 Fed.
Reg. 13962 (20 March 2006).
27 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for
Revocation in Part, 70 Fed. Reg. 56631 (28 September 2005).
28 See Notice of Final Results of the Twelfth Administrative Review of the Antidumping Duty Order on
Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea , 72 Fed. Reg. 13086
(20 March 2007).
29 See Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea; Notice of
the Amended Final Results of the Twelfth Administrative Review, 72 Fed. Reg. 20815 (26 April 2007).
30 See Initiation of Antidumping and Countervailing Duty Administrative Reviews , 71 Fed. Reg. 57465
(29 September 2006).
31 See Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea: Notice of
Final Results of the Thirteenth Administrative Review, 73 Fed. Reg. 14220 (17 March 2008).
32 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 72 Fed. Reg. 54428 (25 September 2007).
33 See Certain Corrosion–Resistant Carbon Steel Flat Products from the Republic of Korea: Notice of
Final Results of the Fourteenth Administrative Review and Partial Rescission , 74 Fed. Reg. 11082
(16 March 2009).
34 See Certain Corrosion–Resistant Carbon Steel Flat Products from the Republic of Korea: Notice of
Amended Final Results of the Fourteenth Administrative Review, 74 Fed. Reg. 19199 (28 April 2009).

l. The USDOC initiated its fifteenth anti-dumping dut y administrative review and new shipper
review of certain corrosion-resistan t carbon steel flat products from Korea on
30 September 2008.35 The USDOC conducted its administrative review of the extent of
dumping under the statutory authority provided by the Tariff Act of 1930, as amended, 19
U.S.C. § 1673, et seq., and under the regulatory authority provided in 19 C.F.R. Part 351.
The USDOC published its final results on 22 March 2010. 36 The USDOC's final results and
its final determination reflected and containe d anti-dumping margins, cash deposits and duty
rates that were calculated by using zeroing.
2. Sunset Review Determinations

a. The USDOC initiated its first sunset review of certain corrosion-resistant carbon steel flat
products from Korea on 1 September 1999. 37 The USDOC conducted its sunset review under
the statutory authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et
seq., and under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC
published its final results of de termination of likely continuation or recurrence of dumping on
6 April 2000.
38 The United States International Trad e Commission ("USITC") published its
determination of likely continuation or recurrence on injury on 1 December 2000, 39 as
amended on 8 December 2000; 40 and the USDOC published its notice of continuation of the
anti-dumping order on 15 December 2000. 41 The USDOC's and USITC's final results and the
USDOC's continuation of the anti-dumping duty order reflected and contained anti-dumping
margins, cash deposits and duty rates that had been calculated by using zeroing.
b. The USDOC initiated its second sunset review of certain corrosion-resistant carbon steel flat
products from Korea on 1 November 2005.
42 The USDOC conducted its sunset review under
the statutory authority provided by the Tariff Act of 1930, as amended, 19 U.S.C. § 1673, et
seq., and under the regulatory authority provided in 19 C.F.R. Part 351. The USDOC
published its final results of de termination of likely continuation or recurrence of dumping on
6 June 2006.
43 The USITC published its determination of likely continuation or recurrence on
injury on 31 January 2007, 44 and the USDOC published its notice of continuation of the anti-

35 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 73 Fed. Reg. 56794(30 September 2008).
36 See Certain Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea: Notice of
Final Results of the Fifteenth Administrative Review, 75 Fed. Reg. 13490 (22 March 2010).
37 See Initiation of Five-Year (‘‘Sunset’’) Reviews of Antidumping and Countervailing Duty Orders or
Investigations of Carbon Steel Plates and Flat Products, 64 Fed. Reg. 47767 (1 September 1999).
38 See Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products From Korea; Final
Results of Expedited Sunset Reviews, 65 Fed. Reg. 18044 (6 April 2000).
39 See Certain Carbon Steel Products From Australia, Belgium, Brazil, Canada, Finland, France,
Germany, Japan, Korea, Mexico, Netherlands, Poland, Romania, Spain, Sweden, Taiwan, and United Kingdom,
65 Fed. Reg. 75301 (1 December 2000).
40 See Certain Carbon Steel Products From Australia, Belgium, Brazil, Canada, Finland, France,
Germany, Japan, Korea, Mexico, Netherlands, Poland, Romania, Spain, Sweden, Taiwan, and United Kingdom,
65 Fed. Reg. 77074 (8 December 2000).
41 See Continuation of Antidumping and Countervailing Duty Orders on Certain Carbon Steel Products
From Australia, Belgium, Brazil, Canada, Finland, France, Germany, Japan, South Korea, Mexico, Poland,
Romania, Spain, Sweden, Taiwan, and United Kingdom, 65 Fed. Reg. 78469 (15 December 2000).
42 See Initiation of Five-year (‘‘Sunset’’) Reviews, 70 Fed. Reg. 65884 (1 November 2005).
43 See Final Results of Expedited Sunset Reviews: Corrosion-Resistant Carbon Steel Flat Products
from Australia, Canada, France, Germany, Japan, and South Korea, 71 Fed. Reg. 32508 (6 June 2006).
44 See Certain Carbon Steel Products From Australia, Belgium, Brazil, Canada, Finland, France,
Germany, Japan, Korea, Mexico, Poland, Romania, Spain, Sweden, Taiwan, and the United Kingdom , 72 Fed.
Reg. 4529 (31 January 2007).

dumping order on 14 February 2007. 45 The USDOC's and USITC's final results and the
USDOC's continuation of the anti-dumping duty order reflected and contained anti-dumping
margins, cash deposits and duty rates that had been calculated by using zeroing.
 The methodology of "zeroing" refers to the practice and methodology by which transactions
with negative dumping margins are treated as having margins equal to zero in determining dumping
margins in administrative reviews and sunset reviews, and also in assessing the final anti-dumping
duty liability for purposes of liquidation of entries. The use of the "zeroing" methodology also refers
to instances whereby the DOC does not perform a ne w calculation of the dumping margins as part of
its determination, but instead adopts, applies, or relies upon dumping margins that have been
calculated in prior proceedings using the "zeroing " methodology. The adoption, application, or
reliance on prior determinations using zeroi ng includes the imposition and continuation of
requirements that cash deposits be posted at the tim e of entry of merchandise based on determinations
in administrative reviews in which the dumping margins were established using the practice of
zeroing; the assessment of anti-dumping duties based on dumping margins determined in
administrative reviews using the practice of zeroi ng; the determination of dumping margins above de
minimis levels as a result of the practice of zeroing negative dumping margins, and the consequent
imposition, continuation, or collection of anti-dumping du ties; the use, in sunset reviews, of dumping
margins calculated in prior anti-dumping investiga tions and/or administrative reviews in which
negative dumping margins had been treated as zero du mping margins, resulting in determinations that
revocation of the anti-dumping duty orders would be likely to lead to continuation or recurrence of
dumping; and the consideration by the USITC, in sun set reviews, of the magnitude of the margins of
dumping provided by the USDOC, in determining whether the revocation of an anti-dumping duty
order would be likely to lead to continuation or recurrence of material injury within a reasonably
foreseeable time.
 The effect of the USDOC's zeroing practice has been and will be either artificially to create
margins of dumping where none would otherwise have b een found, or artificially to inflate margins of
dumping. Korea considers that these measures are in consistent with the obligations of the United
States under the provisions of the GATT 1994, the Anti-Dumping Agreement, and the Marrakesh
Agreement Establishing the WTO, as described below.
C. Legal Basis of the Complaint

 The use of zeroing has led, leads, and will l ead the United States to find the existence of
dumping where none would have otherwise been found or to calculate inflated margins of dumping.
Korea considers that the USDOC's use of its met hodology of zeroing in the above detailed measures
is inconsistent with the obligations of the United States under Articles 9.3 and 11.3 of the Anti-
Dumping Agreement.

 The USDOC's use of zeroing in the corrosion -resistant carbon steel flat products from Korea
with respect to administrative review determinati ons and subsequent collec tion of cash deposits and
assessment of final anti-dumping duties pursuant thereto and sunset review determinations is similar
or identical to the method that was held to be inconsistent with the Anti-Dumping Agreement in
United States – Laws, Regulations and Methodology for Calculating Dumping Margins ("Zeroing")
(Panel Report, WT/DS294/R, and Appellate Body Report, WT/DS294/AB/R, adopted 9 May 2006)
and United States – Laws, Regulations and Methodology for Calculating Dumping Margins
("Zeroing") – Recourse to Article 21.5 of the DSU by the European Communities , (Panel Report,
WT/DS294/AB/RW, and Appellate Body Repor t, WT/DS294/AB/RW, adopted 11 June 2009);

45 See Continuation Pursuant to Second Five-Year (“Sunset”) Reviews of Antidumping and
Countervailing Duty Orders: Certain Corrosion-Resistant Carbon Steel Flat Products from Germany and
Korea, 72 Fed. Reg. 7009 (14 February 2007).

United States – Measures Relating to Zeroing and Sunset Reviews (Panel Report, WT/DS322/R, and
Appellate Body Report, WT/DS322/AB /R, adopted 23 January 2007) and United States – Measures
Relating to Zeroing and Sunset Reviews – Rec ourse to Article 21.5 of the DSU by Japan (Panel
Report, WT/DS322/RW, and Appellate Body Report, WT/DS322/AB/RW, adopted 31 August 2009);
and United States – Continued Existence and Application of Zeroing Methodology (Panel Report,
WT/DS350/AB/R, and Appellate Body Report, WT/DS350/AB/R, adopted 19 February 2009).

 The foregoing paragraphs are provided without prejudice to any arguments that Korea may
develop and present to the panel regarding the WTO-inconsistency of the measures at issue.

D. Request

 Accordingly, Korea requests that the DSB estab lish a panel pursuant to Article XXIII:1 of the
GATT 1994, Articles 4 and 6 of the DSU, and Article 17.4 of the Anti-Dumping Agreement. Korea
requests that the establishment of a panel in this ma tter be placed on the agenda of the meeting of the
DSB scheduled for 22 February 2012.