Korea/Mexico Large Residential Washers: New AD Investigations Deadlines & Scope
The International Trade Administration has issued a Federal Register notice on its recently initiated antidumping duty investigations on large residential washers from Korea and Mexico (A-580-868, A-201-841). The ITA will determine whether imports of large residential washers from Korea and Mexico are being, or are likely to be, sold in the U.S. at less than fair value.
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The AD period of investigation is October 1, 2010 through September 30, 2011 for both Korea and Mexico.
Alleged AD Margins
An ITA fact sheet states that the alleged dumping margins for large residential washers from Korea are 31.03-82.41% and those from Mexico are 27.21-72.41%.
AD Respondent Selection for Korea and Mexico
Korea. For the Korea investigation, the ITA has selected as mandatory respondents, three Korean producers that export washing machines to the United States. These companies are: Samsung Electronics Co., Ltd., LG Electronics, Inc., and Daewoo Electronics Corporation. Interested parties may submit comments regarding respondent selection within five calendar days of January 26, 2012 (on or about February 2, 2012).
Mexico. For the Mexico investigation, the ITA will select respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports under the Harmonized Tariff System of the United States (HTSUS) number 8450.20.0090. The ITA intends to make its decision regarding respondent selection within 20 days of January 26, 2012 (on or about February 15, 2012). The ITA invites comments regarding the CBP data and respondent selection within 10 days of January 26, 2012 (on or about February 5, 2012).
Targeted Dumping Allegations
Any interested party that wishes to make a targeted dumping allegation in the AD investigations may submit allegations no later than 45 days before June 7, 2012 (the scheduled date of the ITA’s preliminary determination)1.
Scope of the AD Investigations
The products covered by these investigations are all large residential washes and certain subassemblies thereof from Korea and Mexico.
For purposes of these investigations, the term "large residential washers" denotes all automatic clothes washing machines, regardless of the orientation of the rotational axis, with a cabinet width (measured from its widest point) of at least 24.5 inches (62.23 cm) and no more than 32.0 inches (81.28 cm).
Also covered are certain subassemblies used in large residential washers, namely: (1) all assembled cabinets designed for use in large residential washers which incorporate, at a minimum: (a) at least three of the six cabinet surfaces; and (b) a bracket; (2) all assembled tubs2 designed for use in large residential washers which incorporate, at a minimum: (a) a tub; and (b) a seal; (3) all assembled baskets3 designed for use in large residential washers which incorporate, at a minimum: (a) a side wrapper; 4 (b) a base; and (c) a drive hub; 5 and (4) any combination of the foregoing assemblies.
Excluded from the scope are stacked washer-dryers and commercial washers. The term "stacked washer-dryers" denotes distinct washing and drying machines that are built on a unitary frame and share a common console that controls both the washer and the dryer. The term "commercial washer" denotes an automatic clothes washing machine designed for the "pay per use" market meeting either of the following two definitions:
(1)(a) it contains payment system electronics;6 (b) it is configured with an externally mounted steel frame at least six inches high that is designed to house a coin/token operated payment system (whether or not the actual coin/token operated payment is installed at the time of importation); (c) it contains a push button user interface with a maximum of six manually selectable wash cycle settings, with no ability of the end user to otherwise modify water temperature, water level, or spin speed for a selected wash cycle setting; and (d) the console containing the user interface is made of steel and is assembled with security fasteners;7 or
(2)(a) it contains payment system electronics; (b) the payment system electronics are enabled (whether or not the payment acceptance device has been installed at the time of importation) such that, in normal operation,8 the unit cannot begin a wash cycle without first receiving a signal from a bona fide payment acceptance device such as an electronic credit card reader; (c) it contains a punch button user interface with a maximum of six manually selectable wash cycle settings, with no ability of the end user to otherwise modify water temperature, water level, or spin speed for a selected wash cycle setting; and (d) the console containing the user interface is made of steel and is assembled with security fasteners.
The products subject to these investigations are currently classified under subheading 8450.20.0090 of the Harmonized Tariff Schedule of the United States (HTSUS). Products subject to these investigations may also enter under HTSUS subheadings 8450.11.0040, 8450.11.0800, 8450.90.2000 and 8450.90.6000. Although the HTS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.
Comments on Scope Due by Feb 8
The ITA notes that it discussed the scope with petitioner to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. The ITA invites comments on the scope by February 8, 2012. Rebuttal comments must be received by February 15, 2012.
Investigations Timetable
| Event | AD Investigations |
|---|---|
| Petitions filed | 12/30/11 |
| ITA initiation date | 01/19/12 |
| ITC prelim determination9 | 02/13/12 |
| ITA prelim determinations10 | 06/07/12 |
| ITA final determinations10 | 08/21/12 |
| ITC final determination11 | 10/05/12 |
| Issuance of orders12 | 10/12/12 |
1Note that in December 2008, the ITA issued an interim final rule for the purposes of withdrawing the regulations governing targeted dumping analysis in AD duty investigations. ITA states that this change allows it to exercise the discretion intended by statute, and thereby develop a practice that will allow interested parties to pursue all statutory avenues of relief in this area. (See ITT's Online Archives 08121525 and 09011535 for summaries of the interim final rule and extension of the comment period.)
2 A "tub" is the part of the washer designed to hold water.
3 A "basket" (sometimes referred to as a "drum") is the part of the washer designed to hold clothing or other fabrics.
4 A "side wrapper" is the cylindrical part of the basket that actually holds the clothing or other fabrics.
5 A "drive hub" is the hub at the center of the base that bears the load from the motor.
6 "Payment system electronics" denotes a circuit board designed to receive signals from a payment acceptance device and to display payment amount, selected settings, and cycle status. Such electronics also capture cycles and payment history and provide for transmission to a reader.
7 A "security fastener" is a screw with a non-standard head that requires a non-standard driver. Examples include those with a pin in the center of the head as a "center pin reject" feature to prevent standard Allen wrenches or Torx drivers from working.
8 "Normal operation" refers to operating model(s) available to end users (i.e., not a mode designed for testing or repair by a technician).
9If the ITC makes a negative determination of injury, the investigations are terminated.
10These deadlines may be extended under the governing statute.
11This will take place only in the event of ITA final affirmative determinations.
12This will take place only in the event of ITA and ITC final affirmative determinations.
Korea/Mexico AD notice of initiation (FR Pub 01/26/12) available here
ITA fact sheet available here