China Washing Machines: New AD Duty Investigation Deadlines & Scope
The Commerce Department issued a Federal Register notice on its recently initiated antidumping duty investigation on large residential washers from China (A-570-033) (here). The agency will determine whether imports of washing machines from China are being sold in the U.S. at less than fair value. The period of investigation is April 1, 2015, through Sept. 30, 2015.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped washing machines are injuring U.S. industry. If Commerce finds dumping in the preliminary determination of this investigation, currently due in May, it will set AD duty cash deposit requirements for imports of merchandise subject to the investigation. Conversely, if the ITC finds no injury in either its preliminary or final injury determinations, the investigations will immediately end. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD duties on importers and potentially change AD duty cash deposit rates.
If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters (here) are due Feb. 11.
Respondent Selection
Commerce said it only knows of two Chinese exporters of large residential washers, Samsung and LG, and will only investigate those two companies unless it receives information to the contrary.
Scope of the AD/CVD Investigations
“The products covered by this investigation are all large residential washers and certain parts thereof from the People’s Republic of China.
“For purposes of this investigation, 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 investigation are currently classifiable under subheadings 8450.20.0040 and 8450.20.0080 of the Harmonized Tariff Schedule of the United States (HTSUS). Products subject to this investigation 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 investigation is dispositive.”
Comments on Scope Due by Jan. 25
Comments on the scope of the investigation are due by Jan. 25.
Investigations Timetable
| Event | AD Duty |
|---|---|
| Petitions filed | 12/16/15 |
| DOC initiation date | 01/05/16 |
| ITC prelim determinations* | 02/01/16 |
| DOC prelim determinations† | 05/24/16 |
| DOC final determinations† | 08/08/16 |
| ITC final determinations‡ | 09/21/16 |
| Issuance of orders+ | 09/28/16 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 1512160015 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The Commerce Department fact sheet on the initiation of these investigations is (here).