Top > Press Releases > Back Issues > August 2008>Extension of Japan's countermeasures against the U.S.Byrd Amendment

Extension of Japan's countermeasures against the U.S. Byrd Amendment

In September 2005, Japan initiated countermeasures against the United States in connection with the Byrd Amendment, which has been confirmed as being inconsistent with WTO Agreements. Countermeasures were renewed twice, first in September 2006 and then in September 2007, and are due to expire at the end of August 2008. However, as the United States continues to perform distribution that was found to be illegal, the Cabinet of Japan will approve the extension of the applicable period of the countermeasures by one year with the tariff items to be subject to countermeasures and tariff rates changed in its meeting to be held on August 26, 2008 following a recommendation made in today’s meeting of the Council on Customs, Tariff, Foreign Exchange and Other Transactions.

1. Byrd Amendment and Japan’s countermeasures

  • The Byrd Amendment is legislation under which the U.S. Government distributes fiscal revenues derived from antidumping (AD) and countervailing (CV) duties collected from foreign companies to U.S. domestic producers who filed or supported an appeal for application of AD and CV measures.
  • Despite the WTO’s ruling of January 2003, which concluded that the Byrd Amendment constituted a violation of the WTO Agreements, the U.S. Government had maintained the aforementioned disposition. Accordingly, in September 2005, the Japanese Government decided to adopt countermeasures by imposing additional 15% customs duties on 15 tariff items of U.S. origin, including steel products. (The EU, Canada and Mexico also implemented similar countermeasures.)
  • In February 2006, the U.S. enacted a law that repealed the Byrd Amendment. However, this law contains transitional provisions under which all duties on entries of goods filed before October 1, 2007 shall be subject to the distribution under the Byrd Amendment. Thus illegal distribution is expected to continue for a substantial period of time, even beyond this year.

2. Extension of Japan’s countermeasures

  • Since the level of the retaliation shall be reviewed each year, the aforementioned countermeasures adopted by the Japanese Government are due to expire at the end of August this year.
  • In order to make the U.S. Government immediately stop the distribution under the Byrd Amendment and rectify its acts in violation of the WTO Agreement, it is necessary for the Japanese Government to continue the imposition of ongoing countermeasures.
  • However, the reduction in the distribution under the Byrd Amendment has resulted in reduction of the upper limit of countermeasures this fiscal year. Therefore, the Japanese Government will change the tariff items of U.S. origin to be subject to countermeasures and tariff rates in implementing countermeasures.

3. Outline of Japan’s countermeasures for this fiscal year

  • Based on 1 and 2 above, a one-year extension of the countermeasures was proposed and approved at the Council on Customs, Tariff, Foreign Exchange and Other Transactions convened today, provided that the tariff items to be subject to countermeasures and tariff rates will be changed.
  • Accordingly, additional customs duties of 10.6% shall be imposed on the following two items:

    Tariff Number: 8482.10
    Tariff Item: Ball bearings

    Tariff Number: 8482.20
    Tariff Item: Tapered roller bearings including cone and tapered roller assemblies

  • A formal decision shall be made at the Cabinet Meeting to be held on August 26, 2008.

Release Date

August 22, 2008

Division in Charge

Office for WTO Compliance and Dispute Settlement Multilateral Trade System Department Trade Policy