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United States - Laws, Regulations and Methodology for Calculating Dumping Margins (“Zeroing”) (WT/DS294): Report of the Appellate Body

Published online by Cambridge University Press:  13 December 2017

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Summary

INTRODUCTION

The European Communities and the United States each appeals certain issues of law and legal interpretations developed in the Panel Report, United States - Laws, Regulations and Methodology for Calculating Dumping Margins (“Zeroing”) (the “Panel Report”). The Panel was established to consider a complaint by the European Communities concerning the application by the United States of the so-called “zeroing methodology” when determining dumping margins in anti-dumping proceedings, including proceedings resulting in the imposition of anti-dumping measures as well as proceedings relating to the collection of anti-dumping duties.

Before the Panel, the European Communities challenged, under the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the “Anti-Dumping Agreement”), the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”), and the Marrakesh Agreement Establishing the World Trade Organization (the “WTO Agreement”):

  • (a) Sections 731, 751(a)(2)(A)(i)-(ii), 771(35)(A)-(B), and 777A(d) of the Tariff Act of 1930 (the “Tariff Act”); Section 351.414(c)(2) of the United States Department of Commerce (“USDOC”) Regulations (“Section 351.414(c)(2)”); certain provisions of the 1997 edition of the Import Administration Antidumping Manual (the “Anti-Dumping Manual”); the “Standard AD Margin Program”, which includes the “Standard Zeroing Procedures”; and the United States’ “practice or methodology” of zeroing;

  • (b) the use of “model zeroing” in certain “original investigations”; and

  • (c) the use of “simple zeroing” in certain “anti-dumping duty administrative reviews”.

  • In the Panel Report, circulated to Members of the World Trade Organization (the “WTO”) on 31 October 2005, the Panel made the following findings:

  • (a) The United States acted inconsistently with Article 2.4.2 of the [Anti-Dumping] Agreement when in the anti-dumping investigations listed in Exhibits EC-1 to EC-15 USDOC did not include in the numerator used to calculate weighted average dumping margins any amounts by which average export prices in individual averaging groups exceeded the average normal value for such groups.

  • (b) Sections 771(35)(A) and (B), 731 and 777(A)(d) of the Tariff Act are not as such inconsistent with Articles 2.4, 2.4.2, 5.8, 9.3, 1 and 18.4 of the [Anti-Dumping] Agreement, Articles VI:1 and VI:2 of the GATT 1994 and Article XVI:4 of the WTO Agreement with respect to the use of a zeroing methodology in the calculation of margins of dumping in original investigations.

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    Publisher: Cambridge University Press
    Print publication year: 2008

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