UNITED STATES – ANTI-DUMPING MEASURES ON SHRIMP FROM THAILAND
Document: Request for Consultations by Thailand
Date: 27 April 2006
Document codes: WT/DS343/1; G/L/776; G/ADP/D66/1
Complainant: Thailand
Respondent: U.S.
Third parties: Brazil, Chile, China, EU, India, South Korea, Japan, Mexico, Vietnam
Dispute stage: Appellate Body
Agreements cited: Art. 2.4.2, 2.1, 2.4, 9.3, 18.1, 7, 9.1, 9.2, 9.3, 7.4  Anti-dumpingArt. VI:2  GATT 1994Art. 7.2  Anti-dumpingArt. XI:1, I:1, II:1, X:3(a), XX  GATT 1994

UNITED STATES – ANTI-DUMPING MEASURES ON SHRIMP FROM THAILAND

Request for Consultations by Thailand

 The following communication, dated 24 April 2006, from the delegation of Thailand 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 United States pursuant to
Article 4 of the Understanding on Rules and Pro cedures Governing the Settlement of Disputes (the
"DSU"), Article XXII:1 of the General Agreem ent on Tariffs and Trade 1994 (the "GATT") and
Articles 17.2, 17.3 and 17.4 of the Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994 (the "AD Agreemen t") with respect to certain issues relating to
the final anti-dumping measures imposed by th e United States on imports of certain frozen
warmwater shrimp from Thailand.

 On 27 January 2004, pursuant to section 732 of the Tariff Act of 1930, as amended (the
"Act"), the United States initiated an anti-dumping investigation in respect of certain frozen and
canned warmwater shrimp imported from Thailand and several other countries.
1 On 28 July 2004,
pursuant to section 733 of the Act, the United States preliminarily determined that certain frozen and
canned warmwater shrimp from Tha iland were being dumped in the United States (the "Preliminary
Determination").2 On 23 December 2004, the United Stat es published a final determination that
frozen and canned warmwater shrimp from Thailand were being dumped in the United States (the
"Final Determination").3 Following a determination by the US International Trade Commission that
the US domestic industry was materially injure d by imports of frozen warmwater shrimp from
Thailand but that there was no injury or threat ther eof to the US domestic industry regarding imports
of canned warmwater shrimp from Thailand, the United States published an amended final
determination of dumping and an anti-dumping dut y order imposing definitive anti-dumping duties

1 Initiation of Antidumping Duty Investigations: Certain Frozen and Canned Warmwater Shrimp from
Brazil, Ecuador, India, Thailand, the People's Republic of China and the Socialist Republic of Vietnam ,
69 Fed. Reg. 3876 (27 January 2004).
2 Notice of Preliminary Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Negative Critical Circumstances De termination: Certain Frozen and Canned Warmwater
Shrimp from Thailand, 69 Fed. Reg. 47100 (4 August 2004).
3 Notice of Final Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Negative Final Determination of Critical Circumstances: Certain Frozen and Canned
Warmwater Shrimp from Thailand, 69 Fed. Reg. 76918 (23 December 2004).

only on imports of certain frozen warmwater shrimp from Thailand (the "Amended Final
Determination").
4

 Thailand requests consultations on the United Stat es' application in the Preliminary, Final and
Amended Final Determina tions of the practice known as "zeroing" negative dumping margins, the
effect of which was artificially to create margin s of dumping where none would otherwise have been
found or, at a minimum, to inflate margins of dumping and the consequent imposition of definitive
anti-dumping measures on imports of certain frozen warmwater shrimp from Thailand. The United
States' practice of "zeroing" has, in the rulings of the Appellate Body in United States – Final
Dumping Determination of Softwood Lumber from Canada 5 and United States – Laws, Regulations
and Methodology for Calculating Dumping Margins ("Zeroing") ,6 previously been found to be
inconsistent with the AD Agreement. Thailand cons iders that through its use of "zeroing", the United
States failed to make a fair comparison between the export price and the normal value, and calculated
distorted margins of dumping, therefore violating Articles 1, 2.1, 2.4, 2.4.2, 3.1, 3.2, 3.3, 3.4, 3.5, 5.8,
9.2 and 9.3 of the AD Agreement, as well as GATT Articles II, III, VI:1 and VI:2.

 In addition, the United States has imposed on importers of frozen warmwater shrimp from
Thailand a requirement to maintain a continuous bond in the amount of the anti-dumping duty margin
multiplied by the value of imports of frozen wa rmwater shrimp imported by the importer in the
preceding year. This bond requirement was impo sed pursuant to the U.S. Customs and Border
Protection ("CBP") agency's Amendment to B ond Directive 99-3510-004 for Certain Merchandise
Subject to Antidumping/Countervailing Cases, dated 9 July 2004 (the "Amendment"). Prior to the
adoption of this Amendment, importers of goods subject to US anti-dumping or countervailing duties
were required to maintain a minimum bond only in th e amount of 10 per cent of the duties, taxes and
fees paid by the importer on the subject merchandi se in the previous year. In addition, the
Amendment appears to selectively apply th e new bond requirement solely to certain
agriculture/aquaculture goods.

 The new continuous bond requirement set forth in the Amendment is being applied to all US
imports of frozen warmwater shrimp from Thailand that are subject to anti-dumping duties. As a
result, importers of these goods must pay not onl y a cash deposit of estimated anti-dumping duties
equal to the margin of dumping determined by the United States, but must also incur significant
additional costs to obtain and maintain a conti nuous bond in the amount described above for each
year's imports until the final assessment of anti-dumping duties on that year's imports. Because the
amount of final anti-dumping duty liability may not be established until after the completion of an
annual administrative review of the margins of dum ping – the first of which, including any judicial
appeals, may not be completed until up to five years after the imposition of the anti-dumping duties –
the bond for each year's imports may have to be main tained for as long as five years. Thailand is of
the view that these measures raise the cost of im porting frozen warmwater shrimp from Thailand into
the United States to prohibitive levels and that th ey are not necessary to secure compliance with the
United States' anti-dumping laws.

4 Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty
Order: Certain Frozen Warmwater Shrimp from Thailand, 70 Fed. Reg. 5145 (1 February 2005).
5 Appellate Body Report, United States – Final Dumping Determination of Softwood Lumber from
Canada, WT/DS264/AB/R (adopted 31 August 2004).
6 Appellate Body Report, United States – Laws, Regulations and Methodology for Calculating
Dumping Margins ("Zeroing"), WT/DS294/AB/R (18 April 2006) (not yet adopted).

 Thailand therefore also requests consultations on this continuous bond requirement as such
and on its application to imports of frozen warmwater shrimp from Thailand. Thailand considers that
the continuous bond requirement and its applicati on to imports of frozen warmwater shrimp from
Thailand may be inconsistent with Article 18.1 of the AD Agreement, in that they constitute specific
action against dumping not in accordance with the provisions of the GATT as interpreted by the AD
Agreement, including Article VI:2 and the Ad Article thereto. In addition, Thailand considers that the
continuous bond requirement as such and its appli cation to imports of frozen warmwater shrimp from
Thailand may be inconsistent with the provisions of Articles 7.1, 7.2 and 7.5 of the AD Agreement
regarding the imposition of provisional measures and with Articles 2, 9.2, and 9.3 of the
AD Agreement regarding the imposition and collection of anti-dumping duties.

 Thailand also considers that the continuous b ond requirement as such and its application to
imports of frozen warmwater shrimp from Thailand may be inconsistent with Articles I:1, II, III, XI:1,
and XIII:1 of the GATT and may not be justified under Article XX(d) of the GATT.

 Thailand considers that the foregoing actions, methodologies, calculations, comparisons and
determinations made by the United States cannot be reconciled with Articles I, II, III, VI, XI and XIII
of the GATT, and Article 1 and the other specifi c provisions of the AD Agreement cited above.
Thailand reserves the right to raise issues relating to other aspects of the Preliminary, Final and
Amended Final Determinations and the continuous bond requirement during the course of the
consultations.

 Thailand looks forward to receiving your reply to this request at your earliest convenience. I
propose that the date and venue of these consultations be agreed between our two missions.