United States—Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan
World Trade Organization, Appellate Body
WT/DS184/AB/R (August 23, 2001)

- Written by Josh Lee, JD
Facts
The United States (defendant) Department of Commerce investigated three Japanese exporters of certain steel products, NSC, NKK, and Kawasaki Steel Corporation. The Department of Commerce requested each company to provide a weight-conversion factor in order to determine a single unit of measurement for all sales. NSC and NKK informed the Department of Commerce that it would be impossible or impractical to calculate the conversion factor and submitted their questionnaires without that data. Kawasaki Steel submitted a best estimate for the conversion factor. The Department of Commerce then issued a preliminary dumping determination and applied adverse facts available to the NSC and NKK sales, which assumed a higher dumping margin for those sales. Within a few days of the preliminary determination, both NSC and NKK provided their own estimates. The Department of Commerce rejected the newly submitted estimates as untimely. The Department of Commerce also requested Kawasaki Steel to provide the resale prices of its products by California Steel Industries (CSI). Kawasaki Steel owned 50 percent of CSI, and Kawasaki Steel requested its cooperation. However, CSI later refused to provide the data. Kawasaki Steel met with CSI and sent five separate letters over 13 weeks. Kawasaki Steel reported this difficulty to the Department of Commerce, but the department did not take any action. The department concluded that Kawasaki Steel had failed to cooperate and also applied adverse facts available to that data, also resulting in a higher margin rate and higher tariffs. Japan filed a challenge to the United States’ application of adverse facts available.
Rule of Law
Issue
Holding and Reasoning ()
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