Whirlpool Seeks New AD Duties on Washing Machines From China
Whirlpool Corp. filed a petition on Dec. 16 with the Commerce Department and International Trade Commission asking new antidumping duties on large residential washers from China (A-570-033). The appliance manufacturer alleges that, following the imposition of antidumping and countervailing duty orders on large residential washers from South Korea and Mexico, South Korean producers moved production to China and resumed dumping. "This is, in effect, a circumvention case," said the petition.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the petition, the shift in production has resulted in Whirlpool being in even worse financial position than it was when it filed the cases on South Korea and Mexico. "When Whirlpool filed its petitions in the original Large Residential Washers from Korea and Mexico case, LRW imports from China totaled zero. But during the course of the AD/CVD investigations, Samsung moved nearly all of its production of U.S. washer models to China, and LG similarly moved the vast majority of its production of U.S. washer models to China. Simply put, Samsung and LG replaced their dumped and injurious washers from Korea and Mexico with dumped and injurious washers from China," it said."
Proposed Scope
The petition proposes the following scope for the investigations, which largely mirrors the scope of duties on Mexico and South Korea, with some differences:
"The products covered by this petition are all large residential washers and certain parts thereof from the People’s Republic of China. For purposes of this petition, 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), except as noted below.
"Also covered are certain parts used in large residential washers, namely: (1) all cabinets, or portions thereof, designed for use in large residential washers; (2) all assembled tubs designed for use in large residential washers which incorporate, at a minimum: (a) a tub; and (b) a seal; (3) all assembled baskets designed for use in large residential washers which incorporate, at a minimum: (a) a side wrapper; (b) a base; and (c) a drive hub; and (4) any combination of the foregoing parts or subassemblies.
"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’ segment meeting either of the following two definitions:
"(1) (a) it contains payment system electronics; (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 system 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; 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, 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 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.
"Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) have a vertical rotational axis; (2) are top loading; (3) have a drive train consisting, inter alia, of (a) a permanent split capacitor (PSC) motor, (b) a belt drive, and (c) a flat wrap spring clutch.
"Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) have a horizontal rotational axis; (2) are front loading; and (3) have a drive train consisting, inter alia, of (a) a controlled induction motor (CIM), and (b) a belt drive.
"Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) have a horizontal rotational axis; (2) are front loading; and (3) have cabinet width (measured from its widest point) of more than 28.5 inches (72.39 cm).
"The products subject to this petition are currently classifiable under subheadings 8450.20.0040 and 8450.20.0080 of the Harmonized Tariff System of the United States (HTSUS). Products subject to this petition may also enter under HTSUS subheadings 8450.11.0040, 8450.11.0080, 8450.90.2000, and 8450.90.6000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to this petition is dispositive."
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate an antidumping duty investigation on large residential washers from China. Comments are due by Jan 5.
Email ITTNews@warren-news.com for a copy of the petition.