UNITED STATES – MEASURES RELATING TO ZEROING AND SUNSET REVIEWS
Document: Joint Communication from the United States and Japan
Date: 8 February 2012
Document codes: WT/DS322/44
Complainant: Japan
Respondent: U.S.
Third parties: Argentina, China, EU, Hong Kong, India, South Korea, Mexico, New Zealand, Norway, Taiwan, Thailand
Dispute stage: Implementation & Compliance
Agreements cited: Art. 2.1, 2.4, 2.4.2, 9.1, 9.2, 9.3, 5.8, 3, 9.5, 11.1, 11.2, 11.3, 1  Anti-dumpingArt. VI  GATT 1994Art. 18.4  Anti-dumpingArt. XVI:4  Agreement Establishing the World Trade Organization

UNITED STATES – MEASURES RELATING TO ZEROING
AND SUNSET REVIEWS

Joint Communication from the United States and Japan

 The following communication, dated 6 February 2012, from the delegation of the
United States and the delegation of Japan to the Ch airperson of the Dispute Settlement Body (DSB),
is circulated at the request of those delegations.

The United States and Japan would like to inform the Dispute Settlement Body of the
attached Memorandum of Understanding between the United States of America and Japan with
respect to the dispute (WT/DS322).

We request that you please circulate the attached Memorandum of Understanding to the
Members of the Dispute Settlement Body.

MEMORANDUM OF UNDERSTANDING BETWEEN
THE UNITED STATES OF AMERICA AND JAPAN

The United States of America ("United States") and Japan ("both sides") have confirmed the
following, as documented in this Memorandum of Understanding ("Understa nding"), regarding the
dispute (WT/DS322) ("the
dispute").

This Understanding, or the taking of any of th e steps contemplated by this Understanding by
the United States or Japan, is without prejudice to either side's position of principle regarding the
remedies available under WTO dispute settlement or their respective positions regarding the
implementation of the recommendations and rulings of the Dispute Settlement Body ("DSB") in the
dispute.

I. OPERATIONAL ASPECTS

1. As a measure taken to comply with the DS B recommendations and ruling in the dispute, by
no later than 7 days after the start date of this Understanding (defined as the signature date of this
Understanding), and subject to U.S. domestic legal requirements, the United States will complete the
process under Section 123 of the Uruguay Round Ag reements Act (URAA) to modify its
methodologies, as described in the notice Antidumping Proceedings: Calculation of the Weighted
Average Dumping Margin and Assessment Rate in Certain Antidumping Duty Proceedings, 75 FR
81533 (Dec. 28, 2010), by signing the final modification and submitting it promptly for publication.

2. As specified in Annex II, the United States will conduct proceedings under Section 129 of the
URAA.

3. By no later than 12 days after the start date, the United States will begin the Section 129
proceeding listed in Annex II, paragraph 2, by tr ansmittal of a written request from the Office of the
United States Trade Representative ("United States Trade Representative") to the United States
Department of Commerce ("Department of Commerce").

4. By no later than 4 months after the start da te, the Department of Commerce will issue a final
determination in the Section 129 proceeding listed in Annex II, paragraph 2.

5. The United States and Japan will continue the suspension of the work of the Arbitrator until,
as described in paragraph 6, the Arbitrator notifi es the DSB that it is not necessary for the Arbitrator
to issue an award, on the conditions that: (i) the United States begins the Section 129 procedure listed
in Annex II, paragraph 2, no later than 12 days afte r the start date; (ii) the Department of Commerce
issues a final determination in the Section 129 pr oceeding listed in Annex II, paragraph 2, no later
than 4 months after the start date; and (iii) the United States completes the section 129 proceeding in
Annex II, paragraph 2.

6. By no later than six months after the start date:

 (a) Japan will, by letter to the chair of th e DSB, withdraw its requests to the DSB made
pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU") in documents WT/DS322/23 and WT/DS322/24; and

 (b) Japan and the United States will submit a jo int letter to the Arbitrator noting that
Japan has withdrawn its Article 22.2 requests; in forming the Arbitrator that the United States

accordingly no longer makes objections under Article 22.6 of the DSU; and requesting that
the Arbitrator notify the DSB that it is not necessary for the Arbitrator to issue an award.

II. MUTUALLY AGREED SOLUTION

1. At a future date to be mutually determined , both sides will consult with a view to achieving a
mutually agreed solution to the dispute.

III.
 OTHER PROVISIONS

1. This Understanding will come into operation upon signature.

2. In the event that the Unite d States fails to complete the process under Section 123 of the
Uruguay Round Agreements Act by publishing the final modification described in Part I, paragraph 1,
unless otherwise decided, this Understanding is void.

3. This Understanding is without prejudice to Japan's right to invoke further proceedings under
the DSU, as described in Annex I of this Unders tanding, regarding the co nsistency with the WTO
agreements of the final modification under Section 123 of the Uruguay Round Agreements Act and its
application. Japan will take no other action under the DSU with respect to the dispute.

4. Other than as specifically set forth herein , this Understanding is without prejudice to the
rights and obligations of the United States and Japan under the WTO agreements.

5. This Understanding is not a bindi ng agreement under international law.

6. Both sides will, at the re quest of either side, hold prompt consultations with respect to any
issue arising under this Understanding.

(signed)
FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA
(signed)
FOR THE GOVERNMENT OF JAPAN

ANNEX I

1. Should Japan consider that the situation d escribed in Article 21.5 of the DSU exists with
respect to the final modification and its application affecting (1) entries of merchandise subject to an
implemented decision pursuant to section 129 of the URAA in which the final modification is applied,
as described in Annex II, or (2) entries of mercha ndise made after May 1, 2010 and covered by the
final results of an administrative review in which the final modification is applied, Japan may request
the establishment of a panel pursuant to Article 21. 5 of the DSU with respect to the subject matter
referred to above.

2. At the first DSB meeting at which Japan's request for the establishment of an Article 21.5
panel appears on the agenda, the United States will accept the establishment of that panel.

3. In the event that as a result of the Article 21.5 proceedings the DSB rules that a measure taken
to comply is inconsistent with a covered agreem ent, Japan may request authorization to suspend
concessions or other obligations in accordance with Article 22 of the DSU. The level of suspension
of concessions or other obligations requested by Japan will be limited to the level of any nullification
or impairment arising from the subject matter referred to in paragraph 1.

4. The United States will not assert that Japan is precluded from obtaining such DSB
authorization on the grounds that the request was made outside the 30-day time period specified in
Article 22.6 of the DSU. This is without prejudice to the U.S. right to refer the matter to arbitration in
accordance with Article 22.6 of the DSU. Both sid es will not object to the arbitration on the grounds
that the other side seeks a second arbitration within the meaning of Article 22.7 of the DSU.

ANNEX II

1. The United States will conduct proceedings pur suant to section 129 of the URAA to revise
the current cash deposit rates established on the basi s of prior administrative review determinations
for the following exporters/producers covered by the associated antidumping duty orders.
Implementation of the results of the section 129 determinations will be effective for subject
merchandise entering the United States from the expor ters/producers for all unliquidated entries that
enter the United States on or after the date th e United States Trade Representative directs the
Department of Commerce to implement the determinations.

2. The Department of Commerce will issue a fina l section 129 determination by no later than
four months after the start date with respect to the following exporter/producer, and the United States
will complete the section 129 proceeding within 7 days of the final section 129 determination.

Stainless Steel Sheet and Strip in Coils
A-588-845
Nippon Kinzoku Co., Ltd.

3. For the purposes of this Understanding, th e completion of a section 129 proceeding means:

 (a) where a final section 129 determination woul d result in a change in the current cash
deposit rate, a section 129 proceeding is complete d on the date by which the United States
Trade Representative has directed the Depart ment of Commerce to implement the final
section 129 determination; or

 (b) where a final section 129 determination w ould not result in a change in the current
cash deposit rate, a section 129 proceeding is completed upon the issuance of the final
section 129 determination.

4. In the event that a final and conclusive judgment in NSK Corporation, et. al v. United States
International Trade Commission, et. al (2011-1362, -1382, 1383, -1454) does not affirm the
revocation of the order in Ball Bearings and Parts Thereof from Japan (A-588-804), the Department
of Commerce will issue a final section 129 determination by no later than four months after the final
and conclusive judgment with respect to the following exporters/producers, and the United States will
complete the section 129 proceeding within 7 days of the final section 129 determination:

Antifriction Bearings from Japan
2008-2009 Administrative Review, 75 Fed. Reg. 53661 (Sep. 1, 2010)
NTN
NSK
Aisin Seiki
JTEKT
Makino Milling
Mazda
Nachi-Fujikoshi
Nissan
Sapporo/Tokyo Precision
Univance
Yamazaki Mazak

5. No additional section 129 determinations are necessary.