[Federal Register Volume 69, Number 42 (Wednesday, March 3, 2004)]
[Notices]
[Pages 10094-10096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4657]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-294]


WTO Dispute Settlement Proceeding Regarding Offsets to Calculated 
Dumping Margins for Instances of Non-Dumping

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative 
(``USTR'') is providing notice that on February 5, 2004, the European 
Communities (``EC'') requested the establishment of a dispute 
settlement panel under the Marrakesh Agreement Establishing the World 
Trade Organization (``WTO Agreement'') regarding offsets to calculated 
dumping margins for instances of non-dumping. On February 16, 2004, the 
EC submitted to the WTO another request for the establishment of a 
dispute settlement panel, which the EC described as a ``corrected 
version'' of its request of February 5. The EC asserts that various 
U.S. laws, regulations, administrative procedures, measures and

[[Page 10095]]

methodologies are inconsistent with Articles 1, 2, 3, 5, 9, 11, and 18 
of the Agreement on Implementation of Article VI of the General 
Agreements on Tariffs and Trade 1994 (``AD Agreement''), Articles VI:1 
and VI:2 of the General Agreement on Tariffs and Trade 1994 (``GATT 
1994''), and Article XVI:4 of the WTO Agreement. USTR invites written 
comments from the public concerning the issues raised in this dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before April 16, 2004, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], with ``Dumping Margin Offset'' in the subject line, or 
(ii) by fax to Sandy McKinzy at (202) 395-3640, with a confirmation 
copy sent electronically to the address above, in accordance with the 
requirements for submission set out below.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, Associate General 
Counsel, Office of the United States Trade Representative (202) 395-
3582.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (``URAA'') (19 U.S.C. 3537(b)(1)) requires that notice 
and opportunity for comment be provided after the United States submits 
or receives a request for the establishment of a WTO dispute settlement 
panel. Consistent with this obligation, USTR is providing notice that 
the EC has requested the establishment of a dispute settlement panel 
pursuant to the WTO Dispute Settlement Understanding (``DSU''). The 
panel, which will hold its meetings in Geneva, Switzerland, is expected 
to issue a report on its findings and recommendations within six to 
nine months after it is established.

Major Issues Raised by the EC

    With respect to the alleged measures at issue, the EC's request for 
the establishment of a panel refers to the following: \1\
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    \1\ For purposes of this notice, the description of the measures 
and claims raised by the EC is based on the so-called ``corrected 
version'' of the EC's panel request, which is available on the WTO 
website's document distribution facility as document ``WT/DS294/7/
Rev1.''
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    [sbull] The Tariff Act of 1930, as amended, including the Statement 
of Administrative Action, in particular Title VII and sections 731, 
751, 771(35)(A), 771(35)(B), and 777(A)(d) [sic];
    [sbull] The implementing regulation of the U.S. Department of 
Commerce (``DOC''), 19 CFR Part 351, in particular section 
351.414(c)(2);
    [sbull] The methodology of the DOC for determining the dumping 
margin in investigations on the basis of the comparison of a weighted 
average normal value with a weighted average export price;
    [sbull] The methodology of the DOC for determining the dumping 
margin in reviews on the basis of a comparison of a weighted average 
normal value with an individual export price;
    [sbull] The Import Administration Antidumping Manual (1997 
edition), including the computer program(s) to which it refers;
    [sbull] The determinations of dumping by the DOC, the 
determinations of injury by the U.S. International Trade Commission 
(``ITC''), and the imposition of definitive duties in the following 
investigations: \2\
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    \2\ For the precise EC description of these determinations and 
notices, including the dates of publication in the Federal Register, 
see Annex I of the EC's request for the establishment of a panel. 
WT/DS294/7/Rev1. In this regard, the EC's reference to ``ITC Case 
No. A-'' is incorrect. The proper citation is ``ITC Inv. No. 731-
TA-.'' Thus, for example, the reference to ``ITC Case No. A-903'' 
should be ``ITC Inv. No. 731-TA-903.''
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    [sbull] Certain hot-rolled carbon steel from the Netherlands, DOC 
Case No. A-421-807, ITC Case No. A-903;
    [sbull] Stainless steel bar from France DOC Case No. A-427-820, ITC 
Case No. A-913;
    [sbull] Stainless steel bar from Germany, DOC Case No. A-428-830, 
ITC Case No. A-914;
    [sbull] Stainless steel bar from Italy, DOC Case No. A-475-829, ITC 
Case No. A-915;
    [sbull] Stainless steel bar from the United Kingdom, DOC Case No. 
A-412-822, ITC Case No. A-918;
    [sbull] Stainless steel wire rod from Sweden, DOC Case No. A-401-
86, ITC Case No. A-774;
    [sbull] Stainless steel wire rod from Spain, DOC Case No. A-469-
807, ITC Case No. A-773;
    [sbull] Stainless steel wire rod from Italy, DOC Case No. A-475-
820, ITC Case No. A-770;
    [sbull] Certain stainless steel plate in coils from Belgium, DOC 
Case No. A-423-808, ITC Case No. A-788;
    [sbull] Stainless steel sheet and strip in coils from France, DOC 
Case No. A-427-814, ITC Case No. A-797;
    [sbull] Stainless steel sheet and strip in coils from Italy, DOC 
Case No. A-475-824, ITC Case No. A-799;
    [sbull] Stainless steel sheet and strip in coils from the United 
Kingdom, DOC Case No. A-412-818, ITC Case No. A-804;
    [sbull] Certain cut-to-length carbon-quality steel plate from 
France, DOC Case No. A-427-816, ITC Case No. A-816;
    [sbull] Certain cut-to-length carbon-quality steel plate from 
Italy, DOC Case No. A-475-826, ITC Case No. A-819;
    [sbull] Certain pasta from Italy, DOC Case No. A-475-818, ITC Case 
No. A-734; and
    [sbull] The final results of the administrative reviews by the DOC 
in the following proceedings.\3\
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    \3\ For the precise EC description of these final results, see 
Annex II of the EC's request for the establishment of a panel. WT/
DS294/7/Revl.
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    [sbull] Industrial nitrocellulos from France, DOC Case No. A-427-
009, 66 FR 54213 (Oct. 26, 2001);
    [sbull] Industrial nitrocellulos from the United Kingdom, DOC Case 
No. A-412-803, 67 FR 77747 (Dec. 19, 2002);
    [sbull] Stainless steel plate in coils from Belgium, DOC Case No. 
A-423-808, 67 FR 64352 (Oct. 18, 2002);
    [sbull] Certain pasta from Italy, DOC Case No. A-475-818, 66 FR 300 
(Jan. 3, 2002), amended 67 FR 5088 (Feb. 4, 2002);
    [sbull] Certain pasta from Italy, DOC Case No. A-475-818, 68 FR 
6882 (Feb. 11, 2003);
    [sbull] Stainless steel sheet and strip in coils from Italy, DOC 
Case No. A-475-824, 67 FR 1715 (Jan. 14, 2002);
    [sbull] Stainless steel sheet and strip in coils from Italy, DOC 
Case No. A-475-824, 68 FR 6719 (Feb. 10, 2003);
    [sbull] Granular polytetrafluoenthylene [sic] from Italy, DOC Case 
No. A-475-703, 67 FR 1960 (Jan. 15, 2002);
    [sbull] Granular polytetrafluoenthylene [sic] from Italy, DOC Case 
No. A-475-703, 68 FR 1960 (Jan. 15, 2003);
    [sbull] Stainless steel sheet and strip in coils from France, DOC 
Case No. A-427-814, 67 FR 6493 (Feb. 12, 2002), amended 67 FR 12522 
(March 19, 2002);
    [sbull] Stainless steel sheet and strip in coils from France, DOC 
Case No. A-427-814, 67 FR 78773 (Dec. 26, 2002), amended 68 FR 4171 
(Jan. 19, 2003);
    [sbull] Stainless steel sheet and strip in coils from Germany, DOC 
Case No. A-428-825, 67 FR 7668 (Feb. 20, 2002), amended 67 FR 15178 
(March 29, 2002);
    [sbull] Stainless steel sheet and strip in coils from Germany, DOC 
Case No. A-428-825, 68 FR 6716 (Feb. 10, 2003);
    [sbull] Ball bearings from France, DOC Case No. A-427-801, 67 FR 
55780 (Aug. 30, 2002);
    [sbull] Ball bearings from Italy, DOC Case No. A-425-801, 67 FR 
55780 (Aug. 30, 2002);
    [sbull] Ball bearings from the United Kingdom, DOC Case No. A-412-
801 (Aug. 30, 2002).
    In its request for the establishment of a panel, the EC alleges 
that the United

[[Page 10096]]

States has acted inconsistently with Articles 1, 2.1, 2.4, 2.4.2, 3 
(including Articles 3.1, 3.2 and 3.5, 5.8, 9.1, 9.3, 9.5, 11 (including 
Articles 11.2 and 11.3) and 18.4 of the AD Agreement, Articles VI:1 and 
VI:2 of the GATT 1994, and Article XVI:4 of the WTO Agreement.
    With respect to the claims of WTO-inconsistency, the EC request for 
the establishment of a panel refers to the following:
    [sbull] In new investigations,
    [sbull] With respect to both the EC's ``as such'' and ``as 
applied'' claims, the comparison of export prices and normal values on 
a weighted average to weighted average basis, without any offset for 
instances of non-dumping, results in the calculation of a dumping 
margin and amount of dumping in excess of the actual dumping practiced 
by the companies concerned;
    [sbull] With respect to the EC's ``as applied'' claims, the 
comparison described in the preceding paragraph results in the 
erroneous inclusion of imports from certain companies as ``dumped 
imports'' for purposes of determining injury and causation;
    [sbull] In reviews, with respect to both the EC's ``as such'' and 
``as applied'' claims, the comparison of export prices and normal 
values on a weighted average to transaction basis, without any offset 
for instances of non-dumping, results in the calculation of a dumping 
margin and the collection of an amount of antidumping duties in excess 
of the actual dumping practiced by the companies concerned.

Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Persons submitting 
comments may either send one copy by fax to Sandy McKinzy at (202) 395-
3640, or transmit a copy electronically to [email protected], with 
``Dumping Margin Offset (DS294)'' in the subject line. For documents 
sent by fax, USTR requests that the submitter provide a confirmation 
copy electronically. USTR encourages the submission of documents in 
Adobe PDF format, as attachments to an electronic mail. Interested 
persons who make submissions by electronic mail should not provide 
separate cover letters; information that might appear in a cover letter 
should be included in the submission itself. Similarly, to the extent 
possible, any attachments to the submission should be included in the 
same file as the submission itself, and not as separate files.
    A person requesting that information contained in a comment 
submitted by that person be treated as confidential business 
information must certify that such information is business confidential 
and would not customarily be released to the public by the submitter. 
Confidential business information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' at the top and bottom of the cover page and each 
succeeding page of the submission.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitting person believes that 
information or advice may quality as such, the submitting person--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
at the top and bottom of the cover page and each succeeding page of the 
submission; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room, which is located at 1724 F 
Street, NW., Washington, DC 20508. The public file will include non-
confidential comments received by USTR from the public with respect to 
the dispute; if a dispute settlement panel is convened, the U.S. 
submissions to that panel, the submissions, or non-confidential 
summaries of submissions, to the panel received from other participants 
in the dispute, as well as the report of the panel; and, if applicable, 
the report of the Appellate Body. An appointment to review the public 
file (Docket No. WT/DS-294, Dumping Margin Offset (DS294)) may be made 
by calling the USTR Reading Room at (202) 395-6186. The USTR Reading 
Room is open to the public from 9:30 a.m. to 12 noon and 1 p.m. to 4 
p.m., Monday through Friday.

Daniel E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 04-4657 Filed 3-2-04; 8:45 am]
BILLING CODE 3190-01-M