UNITED STATES – ANTI-DUMPING MEASURES ON IMPORTS OF STAINLESS STEEL SHEET AND STRIP IN COILS FROM ITALY
Document: Request for Consultations by the European Union
Date: 6 April 2011
Document codes: WT/DS424/1; G/L/955; G/ADP/D88/1
Complainant: EU
Respondent: U.S.
Dispute stage: Consultation
Agreements cited: Art. 2, 5.8, 6.8, 9.3, 11.1, 11.2, 11.3  Anti-dumpingArt. VI:2  GATT 1994

UNITED STATES – ANTI-DUMPING MEASURES ON IMPORTS OF
STAINLESS STEEL SHEET AND STRIP IN COILS FROM ITALY

Request for Consultations by the European Union

 The following communication, dated 1 April 2011, from the delegation of the
European Union 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.

 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 17.3 of the Agreem ent on Implementation of Article VI of the
GATT 1994 (" AD Agreement "), the European Union hereby requ ests consultations with the United
States of America ("United States") concerning anti-dumping measures imposed on imports of
stainless steel sheet and strip in coils ("stainless sh eet and strip") from Italy (dealt with under U.S.
case number A-475-824), concerning the sole exporter of the product concerned from Italy, Thyssen
Krupp Acciai Speciali Terni S.p.A. ("TKAST").

1. Subject of consultations

 This request for consultations is w ith respect to the following measures:

− the final determination of the United Stat es Department of Commerce ("USDOC") in
the original investigation of imports of stainless sheet and strip from Italy (adopted by
USDOC notice published in Federal Register No. 64 FR 30750 of 8 June 1999), as
amended in the amended final determination (adopted by USDOC notice published in
Federal Register No. 64 FR 40567 of 27 July 1999); ("The original investigation
determination"),

− the final determination of the USDOC in the Section 129 proceeding regarding the
anti-dumping duty Order on imports of stainl ess sheet and strip from Italy (adopted
by USDOC notice published in Federal Register No. 72 FR 54640 of
26 September 2007); ("The Section 129 determination"),

− A475, Section 129 Determination ; Memorandum of 15 October 2007 from
Stephen Bailey to Richard O. Weible, Dir ector, Office 7, Import Administration,
USDOC ("The Ministerial Error Determination"),

− the preliminary results of the USDOC in th e second five-year (sunset) review of the
anti-dumping duty order regard ing imports of stainless sheet and strip from Italy

(adopted by USDOC notice published in Federal Register No. 75 FR 81214 of
27 December 2010); ("The Preliminary Sunset Review Results").

2. The facts

(a) On 8 June 1999, the USDOC published a final determination in its investigation of
stainless sheet and strip from Italy in which it calculated a dumping margin of
11.17% for the sole exporter of the pr oduct concerned, Thyssen Krupp Acciai
Speciali Terni S.P.A ("TKAST").
1 On 27 July 1999, USDOC amended its final
determination to reflect a revised dumping margin of 11.23%. For the purposes of its
margin calculation, USDOC applied its "zeroing" methodology, which inflated the
margin of dumping substantially. In add ition, USDOC applied a "facts available" per
centage rate to the purported average unit va lue of 84 U.S. sales (the "84 sales") of
the exporter in question.
(b) In calculating the average unit value of the "facts available" sales, the United States
authorities erroneously inverted the numerator and denominator of the ratio: instead
of dividing total value by total volume, the United States divided total volume by
total value, a clear mathematical error. Th is error artificially inflated the unit value
and therefore the amount of dumping. On the basis of the zeroing methodology and
the arithmetic error, an anti-dumping order was established pursuant to which
anti-dumping duties were collected. Correction of the zeroing methodology and the
mathematical error would have resulted in a margin of dumping below de minimis.
(c) To simplify, the above calculation error has resulted in the imposition of an anti-
dumping duty as of 1999 until the present day, while the correct calculation would
have meant that no anti-dumping duty would have even been imposed once zeroing
was removed from the calculation of the dumping margin.
(d) The European Union challenged the use of ze roing in this investigation in the WTO
Dispute Settlement case United States – Laws, Regulations and Methodology for
Calculating Dumping Margins ("Zeroing") ("DS294"). The United States initiated
proceedings under section 129 of the Uruguay Round Agreements Act ("Section
129") in response to the Report of the Panel as modified by the Appellate Body in
DS294. In the Section 129 Preliminary Dete rmination regarding stainless sheet and
strip from Italy, USDOC calculated a revised weighted-average margin for the
exporter of 2.11 per cent.
2 A margin of less than 2 per cent would have resulted in
the revocation of the Order. The European Union and the exporter pointed out the
mathematical error which, in this case, sp elled the difference between a negative and
affirmative determination. The United Stat es authorities refused to correct the error
in the Section 129 determina tion. TKAST made a claim of a ministerial error in the
calculation of the margin of dumping and on 15 October 2007, the United States
refused again, in the Ministerial Error Determination, to correct the error.

1 At the time of the original determination, the exporter was known as Acciai Speciali Terni S.P.A.
2 A-421-807, A-427-820, A-428-830, A-475-829, A-412-822, A-401-806, A-469-807, A-475-820,
A-423-808, A-475-824, A-475-818, A-475-826, A-412-818, A-427-816, A-427-814
Section 129 Determinations 26 February 2007 Memorandum from Stephen Claeys, Deputy Assistant
Secretary for Import Administration to David Spooner, Assistant Secretary for Import Administration.

(e) The second five-year ("sunset") review in th is case was initiated on June 1, 2010. In
sunset reviews, the USDOC determines , whether dumping is likely to resume or
continue if the Order is revoked. In carrying out such a review, the USDOC
considers margins of dumping in the original investigation (as modified in a later
Section 129 determination) and in periodic administrative reviews. In the preliminary
results of the second sunset review regarding stainless sheet and strip from Italy,
dated 21 December 2010, the United States de termined that dumping was likely to
continue or recur if the anti-dumping order were revoked, notably because of the
dumping margin calculated in the original investigation, as amended by the
Section 129 determination, and subsequent administrative reviews. USDOC relied on
the original investigation dumping marg in, as recalculated in the Section 129
Determination, which was only above de minimis because the above-referenced
mathematical error was not corrected.
3. Matters at issue

 The matters, which the European Union would like to raise in the course of the consultations
include, but are not limited to, the following:

(a) the impact of the arithmetic error identif ied above in the original investigation
determination regarding stainless sheet and strip from Italy,
(b) the impact of the arithmetic error identified above in the Section 129 determination
regarding stainless sheet and strip from Italy,
(c) in the second sunset review of the anti-dum ping order regarding stainless sheet and
strip from Italy, the use of the dumping margin from the original investigation,
calculated without the correction of the known arithmetic error, resulting in the
determination that revocation of the anti- dumping order would be likely to lead to
continuation or recurrence of dumping.
 The European Union is concerned that the me asures listed above appear to be, in several
respects, not in conformity with the obligations of the United States under the GATT 1994, and the
AD Agreement, in particular under:

− Articles 2, 5.8, 6.8, 9.3, 11.1, 11.2, and 11.3 of the AD Agreement,

− Article VI:2 of the GATT 1994.

 The European Union reserves the right to address additional measures and claims under the
WTO Agreement during the course of the consultations.

 The European Union looks forward to receivi ng in due course a reply from the United States
to this request. The European Union is ready to consider with the United States mutually convenient
dates to hold consultations in Geneva.