Korea Large Residential Washers: New CV Investigation Deadlines & Scope

The CV period of investigation is calendar year 2011, i.e. January 1, 2011 through December 31, 2011.

Alleged CV Margin

An ITA fact sheet states that the alleged CV margin for Korea is above de minimis (i.e., above 1% or 2%, depending on the country's stage of development).

Samsung, LG, Daewoo Selected as Mandatory Respondents

Pursuant to the petition, the ITA has selected Samsung Electronics Co., Ltd., LG Electronics, Inc., and Daewoo Electronics Corporation as mandatory respondents. Interested parties may submit comments regarding respondent selection within five calendar days of January 27, 2012 (on or about February 2, 2012).

Scope of the CV Investigation

The products covered by this investigation are all large residential washers and certain subassemblies thereof from Korea.

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 tubs¹ designed for use in large residential washers which incorporate, at a minimum: (a) a tub; and (b) a seal; (3) all assembled baskets² designed for use in large residential washers which incorporate, at a minimum: (a) a side wrapper;³ (b) a base; and (c) a drive hub;⁴ 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;⁵ (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;⁶ 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,⁷ 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 (HTS). Products subject to these investigations may also enter under HTS 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.

Investigation Timetable

¹ A "tub" is the part of the washer designed to hold water.

² A "basket" (sometimes referred to as a "drum") is the part of the washer designed to hold clothing or other fabrics.

³ A "side wrapper" is the cylindrical part of the basket that actually holds the clothing or other fabrics.

⁴ A "drive hub" is the hub at the center of the base that bears the load from the motor.

⁵ "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.

⁶ 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.

⁷ "Normal operation" refers to operating model(s) available to end users (i.e., not a mode designed for testing or repair by a technician).

⁸If the ITC makes a negative determination of injury, the investigations are terminated.

⁹These deadlines may be extended under the governing statute.

¹⁰This will take place only in the event of ITA final affirmative determinations.

¹¹This will take place only in the event of ITA and ITC final affirmative determinations.

(See ITT’s Online Archives 12012560 for summary of the ITA’s initiation of the companion AD duty investigation for Korea, as well as for Mexico.)

ITA Federal Register notice on CV investigation (FR Pub 01/27/12) available here

ITA fact sheet available here