Ohio Senators Call for Remedies to Stop Possible Evasion of AD Duties on Washing Machines from China
Commerce Secretary Penny Pritzker should address possible antidumping duty evasion on washing machines from China through the relocation of production operations, Ohio Sens. Rob Portman (R) and Sherrod Brown (D) said in a letter to Pritzker (here). As soon as the Commerce Department assessed cash deposits in July in connection with its preliminary affirmative AD “critical circumstances” determination that large residential washers made by Samsung and LG from China were being sold in the U.S. at less than fair value (see 1607250010), Samsung reportedly started to move its washing machine production to Vietnam and Thailand, to avoid duties on Chinese washers, Portman and Brown wrote. The senators urged Commerce to uphold “critical circumstances” in its final determination, and to use any other available tool to address the trend of “serial dumping” and duty evasion.
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“If Samsung and LG move production to another country, these antidumping duties collected during the 90-day retroactive period may be the only remedy that materializes from this case,” the senators wrote. Commerce should also reject Samsung’s request to post bonds instead of paying a cash deposit, because the company’s “history of duty evasion and unfair trade practices” warrants the cash deposit, they said. Portman and Brown also said they believe the two companies are involved in a strategy to dump the machines into the U.S. until domestic producers can’t compete. The influx of washing machine imports is hurting workers at five Whirlpool plants in Ohio, the senators’ offices said in a statement. A Samsung spokesperson said the company doesn't engage in unfair trade practices. "American consumers stand to lose the most with limited choices and higher prices," the spokesperson said. "We remain committed to fair competition and delivering innovation to the marketplace. We have a long-term commitment to investing and creating jobs in the U.S., and we will continue to deliver products that meet the highest standards in design, performance, and quality to our customers.” LG didn't comment.