244ABR

WORLD TRADE
ORGANIZATION
WT/DS244/AB/R
15 December 2003
(03-6603)
Original: English
UNITED STATES – SUNSET REVIEW OF ANTI-DUMPING DUTIES ON CORROSION-
RESISTANT CARBON STEEL FLAT PRODUCTS FROM JAPAN
AB-2003-5
Report of the Appellate Body

WT/DS244/AB/R
Page i
I. Introduction.................................................................................................................................1
II. Arguments of the Participants and Third Participants ................................................................5
A. Claims of Error by Japan – Appellant...........................................................................5
1. The Sunset Policy Bulletin "As Such"..............................................................5
2. Article 11.3 of the Anti-Dumping Agreement..................................................7
(a) The Dumping Margins Used in the CRS Sunset Review....................7
(b) Order-Wide Basis of Likelihood Determination..................................9
(c) The Factors Considered by USDOC in Making a Likelihood
Determination....................................................................................11
B. Arguments of the United States – Appellee..................................................................13
1. The Sunset Policy Bulletin "As Such"............................................................13
2. Article 11.3 of the Anti-Dumping Agreement................................................15
(a) The Dumping Margins Used in the CRS Sunset Review..................15
(b) Order-Wide Basis of Likelihood Determination................................17
(c) The Factors Considered by USDOC in Making a Likelihood
Determination....................................................................................18
C. Arguments of the Third Participants............................................................................20
1. Brazil...............................................................................................................20
2. Chile................................................................................................................20
3. European Communities...................................................................................21
4. Korea...............................................................................................................22
5. Norway ...........................................................................................................23
III. Preliminary Issues.....................................................................................................................24
IV. Issues Raised in this Appeal .....................................................................................................25
V. Is the Sunset Policy Bulletin "Challengeable" As Such?..........................................................26
A. The Sunset Policy Bulletin...........................................................................................26
B. Japan's Appeal.............................................................................................................27
C. The Type of Measures that Can, As Such, be the Subject of Dispute Settlement
Proceedings .................................................................................................................29
D. The Panel's Finding that the Sunset Policy Bulletin, As Such, Cannot be
Inconsistent with the Anti-Dumping Agreement ..........................................................32
VI. Japan's Specific Claims under Article 11.3 of the Anti-Dumping Agreement .........................37
A. Overview......................................................................................................................37
B. The CRS Sunset Review ...............................................................................................42
C. The Dumping Margins Used in the CRS Sunset Review..............................................43
1. Japan's Appeal ................................................................................................43
2. Review of the Panel Findings.........................................................................45
3. Completing the Analysis.................................................................................49

WT/DS244/AB/R
Page ii
D. Order-Wide Basis of Likelihood Determination..........................................................51
1. "Company-Specific" and "Order-Wide".........................................................51
2. Challenge to the Sunset Policy Bulletin "As Such"........................................52
3. Challenge to the Sunset Policy Bulletin "As Applied"...................................58
E. The Factors Considered by USDOC in Making a Likelihood Determination.............59
1. Challenge to the Sunset Policy Bulletin "As Such"........................................59
2. Challenge to the Sunset Policy Bulletin "As Applied"...................................70
VII. Article 18.4 of the Anti-Dumping Agreement and Article XVI:4 of the WTO
Agreement.................................................................................................................................75
VIII. Findings and Conclusions.........................................................................................................76
ANNEX 1: Notification of an Appeal by Japan under paragraph 4 of Article 16 of the
Understanding on Rules and Procedures Governing the Settlement of
Disputes

WT/DS244/AB/R
Page iii
TABLE OF CASES CITED IN THIS REPORT
Short Title Full Case Title and Citation
US – Corrosion-Resistant
Steel Sunset Review Panel Report, United States – Sunset Review of Anti-Dumping Duties on
Corrosion-Resistant Carbon Steel Flat Products from Japan,
WT/DS244/R, 14 August 2003
Argentina – Textiles and
Apparel Panel Report, Argentina – Measures Affecting Imports of Footwear,
Textiles, Apparel and Other Items, WT/DS56/R, adopted 22 April 1998, as
modified by the Appellate Body Report, WT/DS56/AB/R,
DSR 1998:III, 1033
Australia – Salmon Appellate Body Report, Australia – Measures Affecting Importation of
Salmon, WT/DS18/AB/R, adopted 6 November 1998, DSR 1998:VIII,
3327
Canada – Aircraft Panel Report, Canada – Measures Affecting the Export of Civilian Aircraft,
WT/DS70/R, adopted 20 August 1999, as upheld by the Appellate Body
Report, WT/DS70/AB/R, DSR 1999:IV, 1443
Chile – Price Band System Panel Report, Chile – Price Band System and Safeguard Measures Relating
to Certain Agricultural Products, WT/DS207/R, adopted 23 October 2002,
as modified by the Appellate Body Report, WT/DS207/AB/R
EC – Bed Linen Appellate Body Report, European Communities – Anti-Dumping Duties on
Imports of Cotton-Type Bed Linen from India, WT/DS141/AB/R, adopted
12 March 2001, DSR 2001:V, 2291
EC – Bed Linen
(Article 21.5 – India) Appellate Body Report, European Communities – Anti-Dumping Duties on
Imports of Cotton-Type Bed Linen from India, Recourse to Article 21.5 of
the DSU by India, WT/DS141/AB/RW, adopted 24 April 2003
EC – Hormones Appellate Body Report, EC Measures Concerning Meat and Meat Products
(Hormones), WT/DS26/AB/R, WT/DS48/AB/R, adopted
13 February 1998, DSR 1998:I, 135
EC – Tube or Pipe Fittings Appellate Body Report, European Communities – Anti-Dumping Duties on
Malleable Cast Iron Tube or Pipe Fittings from Brazil, WT/DS219/AB/R,
adopted 18 August 2003
EEC – Parts and
Components Panel Report, European Economic Community – Regulation on Imports of
Parts and Components, adopted 16 May 1990, BISD 37S/132
Guatemala – Cement I Appellate Body Report, Guatemala – Anti-Dumping Investigation
Regarding Portland Cement from Mexico, WT/DS60/AB/R, adopted
25 November 1998, DSR 1998:IX, 3767
Japan – Agricultural
Products I Panel Report, Japan – Restrictions on Imports of Certain Agricultural
Products, adopted 2 March 1988, BISD 35S/163
Japan – Apples Appellate Body Report, Japan – Measures Affecting the Importation of
Apples, WT/DS245/AB/R, adopted 10 December 2003
Japan – Semi-Conductors Panel Report, Japan – Trade in Semi-Conductors, adopted 4 May 1988,
BISD 35S/116
Thailand – Cigarettes Panel Report, Thailand – Restrictions on Importation of and Internal
Taxes on Cigarettes, adopted 7 November 1990, BISD 37S/200