UNITED STATES – ANTI-DUMPING MEASURES ON CERTAIN FROZEN WARMWATER SHRIMP FROM CHINA
Document: Request for Consultations by China
Date: 2 March 2011
Document codes: WT/DS422/1; G/L/953; G/ADP/D87/1
Complainant: China
Respondent: U.S.
Third parties: EU, Honduras, Japan, South Korea, Thailand, Vietnam
Dispute stage: Panel
Agreements cited: Art. 2.4.2  Anti-dumping

UNITED STATES – ANTI-DUMPING MEASURES ON CERTAIN FROZEN
WARMWATER SHRIMP FROM CHINA

Request for Consultations by China

 The following communication, dated 28 Februa ry 2011, from the delegation of China to the
delegation of the United States and to the Chairman 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 Understanding on Rules and Procedures Governing the Settlement
of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994
("GATT 1994") and Article 17 of the Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement") with regard to the "zeroing"
practice by the United States Department of Comme rce ( "USDOC") in its anti-dumping measures on
certain frozen warmwater shrimp from the People's Republic of China (Case No. A-570-893).

 The matters that China would like to ra ise in the course of consultations concern, inter alia ,
the following anti-dumping measures imposed by the United States:

1. The Original Investigation
(a) Notice of Final Determination of Sales at Less Than Fair Value: Certain Frozen and
Canned Warmwater Shrimp From th e People's Republic of China , 69 Federal
Register 70997 (December 8, 2004), as amended by:
• Notice of Amended Final Determination of Sales at Less Than Fair Value and
Antidumping Duty Order: Certain Frozen Warmwater Shrimp From the
People's Republic of China, 70 Federal Register 5149 (February 1, 2005);
• Certain Frozen Warmwater Shrimp from the People's Republic of China:
Notice of Second Amended Final Determination of Sales at Less Than Fair
Value， 71 Federal Register 47484 (August 17, 2006);
• Final Results of Redetermination Pursuant to Court Remand , Court No. 05-
00056 (May 21, 2009),
1 issued by the USDOC pursuant to a remand order of

1 Accessed at http://ia.ita.doc.gov/remands/08-138.pdf .

the United States Court of International Trade ("USCIT") and sustained by the
USCIT on July 29, 2010;
2
• Certain Frozen Warmwater Shrimp From Brazil, India, the People's Republic
of China, Thailand, and the Socialist Republic of Vietnam: Notice of Amended
Final Determinations of Sales at Less Than Fair Value Pursuant to Court
Decision, 75 Federal Register 53947 (September 2, 2010);
(b) Issues and Decision Memorandum for the Antidumping Duty Investigation of Certain
Frozen and Canned Warmwater Shrimp from the People's Republic of China
(November 29, 2004);
(c) as well as any amendments, replacements and/or implementing measures for the
measures identified above under subparagraphs (a) to (b).
 In these measures, for respondents subject to in dividual examination, the USDOC engaged in
the zeroing practice in calculating the dumping ma rgin. Specifically, the USDOC identified sub-
groups of products within the product under investig ation ("averaging groups") on a per model basis
and calculated margins within each of the averag ing groups by comparing the weighted average
export price and the corresponding weighted average normal value. The results of these comparisons
on an "averaging group" basis were added up to establish the dumping margin of the product under
investigation as a whole; however, in this pro cess, any negative margins or amounts of "dumping"
resulting from the "averaging group" comparisons we re put at zero. The USDOC's zeroing practice
has artificially created or, at a minimum, inflated dumping margins for the individually investigated
respondents. In addition, on the basis of these individual dumping margins, the USDOC further
calculated a weighted-average margin (known as the " separate rate") that applied to the cooperating
non-mandatory respondents 3. China considers that the zeroing practice in these measures is
inconsistent with the obligations of the United States under Articles VI:1 and VI:2 of the GATT 1994
and Articles 1, 2.1, 2.4, 2.4.2, 5.8, 9.2, 9.3 and 9.4 of the Anti-Dumping Agreement.

2. Administrative Reviews
(a) Certain Frozen Warmwater Shrimp From th e People's Republic of China: Notice of
Final Results and Rescission, in Part, of 2004/2006 Antidumping Duty Administrative
and New Shipper Reviews, 72 Federal Register 52049 (September 12, 2007);
(b) Issues and Decision Memorandum for the Final Results of 2004/2006 Antidumping
Duty Administrative and New Shipper Reviews of Certain Frozen Warmwater
Shrimp from the People's Republic of China (September 5, 2007);
(c) Third Administrative Review of Frozen Warmwater Shrimp From the People's
Republic of China: Final Results and Partial Rescission of Antidumping Duty
Administrative Review, 74 Federal Register 46565 (September 10, 2009);

2 See Allied Pacific Food, et. al v. United States Court No. 05-00056 USCIT Slip Op.10-83 , accessed at
http://www.cit.uscourts.gov/slip_op/Slip_op10/10-83.pdf .
3 Such non-selected respondents were also required to pass the so-called "separate-rate test" in order to
receive the separate rate.

(d) Third Administrative Review of Frozen Warmwater Shrimp from the People's
Republic of China: Issues and Decisi on Memorandum for the Final Results
(August 28, 2009);
(e) Administrative Review of Certain Frozen Warmwater Shrimp From the People's
Republic of China: Final Results and Partial Rescission of Antidumping Duty
Administrative Review, 75 Federal Register 49460 (August 13, 2010);
(f) Fourth Administrative Review of Frozen Warmwater Shrimp from the People's
Republic of China: Issues and Decisi on Memorandum for the Final Results
(August 9, 2010);
(g) Certain Frozen Warmwater Shrimp From the People's Republic of China:
Preliminary Results and Preliminary Par tial Rescission of Fifth Antidumping Duty
Administrative Review, 76 Federal Register 8338 (Febru ary 14, 2011), and the final
results and related issues and decision memorandum for the fifth antidumping duty
administrative review to be issued after the date of this request for consultations;
(h) as well as any amendments, replacements, and/or implementing measures, including,
inter alia, any assessment instructions and cash deposit requirements issued pursuant
to the reviews identified above.
 In each of the administrative reviews, to the extent that the USDOC has applied zeroing to
calculate dumping margins for cooperative respondents subject to individual reviews, and/or has
determined the separate rate based on rates calculate d by the application of zeroing, China considers
that these measures are inconsistent with the obligations of the United States under Articles VI:1 and
VI:2 of the GATT 1994 and Articles 2.4 , 9.3 and 9.4 of the Anti-Dumping Agreement.

3. Sunset Reviews
(a) Certain Frozen Warmwater Shrimp from Br azil, India, the People's Republic of
China and Thailand: Final Results of the Expedited Sunset Reviews of the
Antidumping Duty Orders, 75 Federal Register 27299 (May 14, 2010);
(b) Issues and Decision Memorandum for the Expedited Sunset Reviews of the
Antidumping Duty Orders on Certain Frozen Warmwater Shrimp from Brazil, India,
the People's Republic of China, and Thailand;
(c) Any affirmative determination issued by the United States International Trade
Commission ("USITC") after the date of this request for consultations for its five-year
reviews concerning the anti-dumping duty orders on frozen warmwater shrimp,
4
where dumping margins calculated by the application of zeroing may have been
considered and/or relied upon by the USITC, resulting in the determination that the
revocation of the anti-dumping order on fro zen warmwater shrimp from China would
be likely to lead to continuation or recurren ce of material injury within a reasonably
foreseeable time;

4 See the Notice of Institution of Five-year Reviews concerning the Anti-dumping Duties on Frozen
Warmwater Shrimp From Brazil, China, India, Thailand, and Vietnam , Investigation No.731-TA-1063, 1064,
1066-1068(Review), 75 Federal Register 1078 (January 8, 2010).

(d) as well as any amendments, replacements, and/or implementing measures for the
measures identified above under subparagraphs (a) through (c).
 In the sunset review, the USDOC relied on the margins calculated in the original anti-
dumping investigation and/or administrative reviews, where negative dumping margins had been
zeroed, resulting in the determination that revoca tion of the anti-dumping orders would be likely to
lead to continuation or recurrence of dumping. In addition, in case that the USITC makes an
affirmative determination in its five-year revi ews concerning the anti-dumping duty orders on frozen
warmwater shrimp, it might also have considered or relied on margins of dumping found by the
application of zeroing in determining that th e revocation of the anti-dumping order on frozen
warmwater shrimp from China would be likely to lead to continuation or recurrence of material injury
within a reasonably foreseeable time.

 China therefore considers that these measures ar e inconsistent with th e obligations of the
United States under Article 11.3 of the Anti-Dumpi ng Agreement, because they relied on margins of
dumping calculated by the application of zeroing inc onsistent with Articles VI:1 and VI:2 of the
GATT 1994 and Articles 2.1, 2.4, 2.4.2 and 9.4 of the Anti-Dumping Agreement.

 China reserves its right to raise further factual and legal issues during the course of the
consultations.

 China looks forward to receiving the reply of the United States to this request and to setting a
mutually convenient date for consultations.