 
  WORLD TRADE  
ORGANIZATION  WT/DS217/39 
11 November 2004 
 (04-4839) 
 Original:   English 
  
 
UNITED STATES – CONTINUED DUMPING AND 
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by the European Communities to Article 22.7 of the DSU
 
 
 
 The following communication, dated 10 November 2004, from the delegation of the European Communities to the Chairperson of the Di spute Settlement Body, is circulated pursuant to 
Article 22.7 of the DSU.  
_______________ 
 
  The European Communities requests that the Dispute Settlement Body considers, at the 
forthcoming meeting on 24 November  2004, the following agenda item: 
 
• United States – Continued Dumping and Subsidy Offset Act of 2000  
  Recourse by the European Communities to Article 22.7 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes  
 
 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act 
of 2000 ("CDSOA") was inconsistent with th e United States' obligations under the General 
Agreement on Tariffs and Trade 1994 ("GATT 1994"), the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs  and Trade 1994, the Agreement on Subsidies and 
Countervailing Measures and the Marrakesh Agreemen t  establishing the World Trade Organization. 
On 27 January 2003, the Dispute Settlement Body ("DSB") adopted the Appellate Body report and 
the Panel report as modified by the Appellate Body report. The United States stated that it intended to 
implement the recommendations and rulings of the DSB but failed to do so within the reasonable 
period of time, as determined by the arbitrator pur suant to Article 21.3(c) of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes ("DSU"), which expired on 27 December 2003.  
 Consequently, on 15 January 2004, the Europ ean Communities requested the authorization to 
suspend the application to the United States of ta riff concessions and relate d obligations under GATT 
1994 in an amount to be determined every year on the basis of the amount of offset payments made to affected domestic producers in th e latest annual distribution of an ti-dumping and countervailing duties 
under the CDSOA. 
 
 On 23 January 2004, the United States objected to the level of suspension proposed and on 26 January 2004, pursuant to Article 22.6 of the DS U, the matter was referred to arbitration. On 
31 August 2004, the arbitrator issued its decision as follows:  WT/DS217/39 
Page 2  
 
 V. AWARD OF THE ARBITRATOR 
5.1 For the reasons set out above, we determine that, in the matter United States 
– Continued Dumping and Subsidy Offset Act of 2000 (Original Complaint by the 
European Communities) , the level of nullification or impairment suffered by the 
European Communities in a particular year can  be deemed to be equal to the total of 
disbursements made under the CDSOA for the preceding year relating to anti-
dumping or countervailing duties paid on im ports from the European Communities, 
multiplied by the coefficient identified in Section III.D above. 
5.2 Accordingly, we decide that the su spension by the European Communities of 
concessions or other obligations in the form  of the imposition of an additional import 
duty above bound custom duties on a list of products originating in the United States 
covering, on a yearly basis, a total value of trade  not exceeding, in US dollars, the 
amount resulting from the following equation: 
Amount of disbursements under CDSOA for the most recent year for 
which data are available relating to anti-dumping or countervailing 
duties paid on imports from the European Communities at that time, 
as published by the United States' authorities. 
multiplied by : 
0.72  
would be consistent with Article 22.4 of the DSU. 
To date, the United States has still not implemented the recommendations and rulings of the DSB with 
respect to the CDSOA, and no mutually satisfactory solution has been reached. 
  Article 22.7 of the DSU provides that "the DSB shall be informed promptly of the decision of the arbitrators and shall upon request, grant authori zation to suspend concessions or other obligations 
where the request is consistent with the deci sion of the arbitrator, unless the DSB decides by 
consensus to reject the request."  Therefore, the European Commun ities hereby requests authorization 
from the DSB to suspend the application to the United States of tariff concessions and related 
obligations under GATT 1994, in the form of th e imposition of additional import duties on products 
originating in the United States, at a level not exceeding every year 72% of the amount of CDSOA disbursements relating to anti-dumping or counter vailing duties paid on imports from the European 
Communities for the most recent year for wh ich data are available at that time. 
 
 In accordance with the arbitration award, the European Communities will notify the DSB 
every year, prior to the entry into force of a leve l of suspension of concessions or other obligations, 
the list of products on which the additional import duty will apply. That list will be drawn from the 
indicative list attached.  WT/DS217/39 
 Page 3 
 
 
 ANNEX:  LIST OF PRODUCTS  
 
 The products covered by the list are determined  by the product description of the European 
Communities’ tariff and statistical nomenclature corresponding to the eight-digit product codes 
(Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on 
the Common Customs Tariff as last amended by Commission Regulation (EC) No 1810/2004, 
OJ L 327, 30.10.2004, p. 1). The descriptions he reunder are given for information purposes only. 
 
CN codes Description of products 
07104000 Sweetcorn, uncooked or cooked by st eaming or by boiling in water, frozen 
48030031 Creped paper for household or sanitary purposes and webs of cellulose fibres 'tissues', in 
rolls of a width > 36 cm or in square or r ectangular sheets with one side > 36 cm and the 
other side > 15 cm in the unfolded state, weighing <= 25 g/m¦ per ply 
48182010 Handkerchiefs, cleansing or facial tissues and towels, of paper pulp, paper, cellulose 
wadding or webs of cellulose fibres 
48183000 Tablecloths and serviettes of paper pulp, pa per, cellulose wadding or webs of cellulose 
fibres 
48185000 Articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or 
webs of cellulose fibres (excl. footware and parts thereof, incl. insoles, heel pieces and 
similar removable products, ga iters and similar products, headgear and parts thereof) 
48201050 Diaries with calendars , of paper or paperboard 
48201090 Writing pads and the like,  of paper or paperboard 
48203000 Binders (other than book covers), folder s and file covers, of paper or paperboard 
48205000 Albums for samples or collec tions, of paper or paperboard 
48209000 Blotting pads and similar articles of statione ry, of paper and paper board, and book covers 
of paper or paperboard (excl. registers, account books, Note books , order books, receipt 
books, letter pads, memorandum pads, diaries,  exercise books, binders, folders, file 
covers, manifold business forms and interleav ed carbon sets, and albums for samples or 
for collections) 
61013010 Men's or boys' overcoats, car-coats, capes, cloaks and sim ilar articles of man-made fibres, 
knitted or crocheted 
61013090 Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles 
of man-made fibres, knitted or crocheted (excl.  suits, ensembles, jackets, blazers, bib and 
brace overalls and trousers) 
61023010 Women's or girls' overcoats, car-coats, capes,  cloaks and similar articles of man-made 
fibres, knitted or crocheted 
61023090 Women's or girls' anoraks, incl. ski-jack ets, wind-cheaters, wind-jackets and similar 
articles, of man-made fibres, knitted or crocheted (excl. suits, ensembles, jackets, blazers, 
dresses, skirts, divided skirts, trousers, bib and brace overalls) 
61034300 Men's or boys' trousers, bi b and brace overalls, breeches and shorts (other than 
swimwear), knitted or crocheted, of synthetic fibres. 
61044300 Women's or girls' dresses of synthetic fibres, knitted or crocheted (excl. petticoats) 
61046300 Women's or girls' trousers, bib and brace overalls, breeches and shorts (other than 
swimwear), knitted or crocheted, of synthetic fibres. 
61051000 Men's or boys' shirts of cotton, knitted or croc heted (excl. nightshirts, T-shirts, singlets and 
other vests) 
61052010 Men's or boys' shirts of synthetic fibres, knitte d or crocheted (excl. nightshirts, T-shirts, 
singlets and other vests) WT/DS217/39 
Page 4  
 
 61052090 Men's or boys' shirts of artificial fibres, kn itted or crocheted (excl. nightshirts, T-shirts, 
singlets and other vests) 
61061000 Women's or girls' blouses, shirts and shirt-bl ouses of cotton, knitted or crocheted (excl. T-
shirts and vests) 
61101110 Jerseys and pullovers containing >= 50% by weight of wool and weighing >= 600 
g/article, knitted or crocheted 
61101130 Men's or boys' jerseys, pullovers, cardigans, waistcoats and similar articles, of wool, 
knitted or crocheted (excl. jerseys and pullove rs containing >= 50% by weight of wool and 
weighing >= 600 g/article, amd wadded waistcoats) 
61101190 Women's or girls' jerseys, pullovers, cardigans , waistcoats and similar articles, of wool, 
knitted or crocheted (excl. jerseys and pullove rs containing >= 50% by weight of wool and 
weighing >= 600 g/article, and wadded waistcoats) 
61101210 Jerseys, pullovers, cardigans, waistcoats and similar articles, of hair of Kashmir 'cashmere' 
goats, knitted or crocheted, for men or boys (excl. quilted articles) 
61101290 Jerseys, pullovers, cardigans, waistcoats and similar articles, of hair of Kashmir 'cashmere' 
goats, knitted or crocheted, for wome n or girls (excl. quilted articles) 
61101910 Jerseys, pullovers, cardigans, waistcoats and sim ilar articles, of fine animal hair, knitted or 
crocheted, for men or boys (excl. from ha ir of Kashmir 'cashmere' goats and quilted 
articles) 
61101990 Jerseys, pullovers, cardigans, waistcoats and sim ilar articles, of fine animal hair, knitted or 
crocheted, for women or girls (excl. from hair of Kashmir 'cashmere' goats and quilted 
articles) 
61102010 Lightweight fine knit roll, polo or turtle neck  jumpers and pullovers of cotton, knitted or 
crocheted 
61102091 Men's or boys' jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, 
knitted or crocheted (excl. lightweight fine knit roll, polo or turtle neck jumpers and 
pullovers and wadded waistcoats) 
61102099 Women's or girls' jerseys, pullovers, cardigans , waistcoats and similar articles, of cotton, 
knitted or crocheted (excl. lightweight fine knit roll, polo or turtle neck jumpers and 
pullovers and wadded waistcoats) 
61103010 Lightweight fine knit roll, polo or turtle neck  jumpers and pullovers of man-made fibres, 
knitted or crocheted 
61103091 Men's or boys' jerseys, pullovers, cardigans, wa istcoats and similar articles, of man-made 
fibres, knitted or crocheted (excl. lightweight fi ne knit roll, polo or turtle neck jumpers and 
pullovers and wadded waistcoats) 
61103099 Women's or girls' jerseys, pullovers, cardiga ns, waistcoats and similar articles, of man-
made fibres, knitted or crochete d (excl. lightweight fine knit roll, polo or turtle neck 
jumpers and pullovers and wadded waistcoats) 
61109010 Jerseys, pullovers, cardigans, waistcoats and sim ilar articles, of flax or ramie, knitted or 
crocheted (excl. wadded waistcoats) 
61109090 Jerseys, pullovers, cardigans, waistcoats and sim ilar articles, of textile materials, knitted or 
crocheted (excl. of man-made fibres, wool, fi ne animal hair, cotton, flax or ramie, and 
wadded waistcoats) 
62011210 Men's or boys' overcoats, raincoats, car-coats, cap es, cloaks and similar articles, of cotton, 
of a weight per garment of <= 1 kg (excl. knitted or crocheted) 
62011290 Men's or boys' overcoats, raincoats, car-coats, cap es, cloaks and similar articles, of cotton, 
of a weight per garment of > 1 kg (excl. knitted or crocheted) 
62011310 Men's or boys' overcoats, raincoats, car-coats, capes, cloaks and similar articles, of man-
made fibres, of a weight per garment of <= 1 kg (excl. knitted or crocheted) 
62011390 Men's or boys' overcoats, raincoats, car-coats, capes, cloaks and similar articles, of man-
made fibres, of a weight per garment of > 1 kg (excl. knitted or crocheted)  WT/DS217/39 
 Page 5 
 
 
 62019200 Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles, 
of cotton (excl. knitted or crocheted, suits, ensembles, jackets, blazers and trousers) 
62019300 Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles, 
of man-made fibres (excl. knitted or croche ted, suits, ensembles, jackets, blazers and 
trousers) 
62021100 Women's or girls' overcoats, raincoats, car-coa ts, capes, cloaks and similar articles, of 
wool or fine animal hair (excl. knitted or crocheted) 
62029300 Women's or girls' anoraks, incl. ski-jack ets, wind-cheaters, wind-jackets and similar 
articles, of man-made fibres (excl. knitted or crocheted, suits, ensembles, jackets, blazers 
and trousers) 
62034231 Men's or boys' trousers and breeches of cotton de nim (excl. knitted or crocheted, industrial 
and occupational, bib and brace overalls and underpants) 
62034311 Men's or boys' trousers and breeches of synthetic  fibres, industrial and occupational (excl. 
knitted or crocheted and bib and brace overalls) 
62034319 Men's or boys' trousers and breeches of synt hetic fibres (excl. knitted or crocheted, 
industrial and occupational, bib and brace overalls and underpants) 
62034390 Men's or boys' shorts of synthetic fibres (excl. knitted or croc heted, underpants and 
swimwear) 
62044200 Women's or girls' dresses of cotton (excl. knitted or croc heted and petticoats) 
62044300 Women's or girls' dresses of synthetic fibres (excl. knitted or crocheted and petticoats) 
62044400 Women's or girls' dresses of artificial fibres (excl. knitted or crocheted and petticoats) 
62044910 Women's or girls' dresses of silk or wast e silk (excl. knitted or crocheted and petticoats) 
62046231 Women's or girls' cotton denim trousers and breeches (excl. industrial and occupational, 
bib and brace overalls and panties) 
62046311 Women's or girls' trousers and breeches, of synthetic fibres, industrial and occupational 
(excl. knitted or crochete d and bib and brace overalls) 
62046318 Women's or girls' trousers and breeches, of synthetic fibres (not of cut corduroy, of denim 
or knitted or crocheted and excl. industri al and occupational clothing, bib and brace 
overalls, briefs and track suit bottoms) 
62046390 Women's or girls' shorts of synthetic fibr es (excl. knitted or crocheted, panties and 
swimwear) 
62046918 Women's or girls' trousers and breeches, of artif icial fibres (not of cut corduroy, of denim 
or knitted or crocheted and excl. industri al and occupational clothing, bib and brace 
overalls, briefs and track suit bottoms) 
62046990 Women's or girls' trousers, bib and brace overa lls, breeches and shorts of textile materials 
(excl. of wool, fine animal hair, cotton or ar tificial fibres, knitted or crocheted, panties and 
swimwear) 
62052000 Men's or boys' shirts of cotton (excl. knitted or crocheted, nightshirts, singlets and other 
vests) 
62053000 Men's or boys' shirts of man- made fibres (excl. knitted or crocheted, nightshirts, singlets 
and other vests) 
62063000 Women's or girls' blouses, shirts and shirt-blouses of cotton (excl. knitted or crocheted and 
vests) 
62064000 Women's or girls' blouses, shirts and shirt-blouses of man-made fibres (excl. knitted or 
crocheted and vests) 
63013010 Blankets and travelling rugs of  cotton, knitted or crocheted (e xcl. electric, table covers, 
bedspreads and articles of bedding and similar furnishing of heading 9404) 
63013090 Blankets and travelling rugs of cotton (excl. knitted or crocheted, electric, table covers, 
bedspreads and articles of bedding and similar furnishing of heading 9404) WT/DS217/39 
Page 6  
 
 63014010 Blankets and travelling rugs of synthetic fibres,  knitted or crocheted (excl. electric, table 
covers, bedspreads and articles of bedding a nd similar furnishing of heading 9404) 
63014090 Blankets and travelling rugs of synthetic fibr es (excl. knitted or crocheted, electric, table 
covers, bedspreads and articles of bedding a nd similar furnishing of heading 9404) 
64021900 Sports footwear with outer soles and uppers  of rubber or plastics (excl. waterproof 
footwear of heading 6401, ski-boots, cro ss-country ski footwear, snowboard boots and 
skating boots with ice or roller skates attached) 
64031900 Sports footwear, with outer soles of rubber, plastics, leather or composition leather and 
uppers of leather (excl. ski-boots, cross- country ski footwear, snowboard boots and 
skating boots with ice or roller skates attached) 
64041100 sports footwear, incl. tennis shoes, basketba ll shoes, gym shoes, training shoes and the 
like, with outer soles of rubber or plastics and uppers of textile materials 
84672199 Drills of all kinds for working in the hand, with self-contained electric motor operating 
with an external source of power (excl. electropneumatic drills) 
87051000 Crane lorries (excl. breakdown lorries) 
90031930 Frames and mountings for spectacles, goggles or the like, of base metal 
90091100 Electrostatic photocopying apparatus, operating by reproducing the original image directly 
onto the copy [direct process] 
90091200 Electrostatic photocopying apparatus, operating by reproducing the original image via an 
intermediate onto the copy [indirect process] 
94037090 Furniture of plastic (excl. for civil aircraft, medical, dental, surgical or veterinary, and 
seats) 
94060011 Mobile homes 
94060038 Buildings, prefabricated, whether or not complete or already assembled, made entirely or 
mainly of iron or steel (excl. Mobile homes and greenhouses) 
96081010 Ball-point pens with liquid ink 
 
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