[Federal Register Volume 77, Number 151 (Monday, August 6, 2012)]
[Notices]
[Pages 46715-46717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19152]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-869]


Large Residential Washers From the Republic of Korea: Amendment 
to the Scope of the Countervailing Duty Investigation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is amending the 
scope of the countervailing duty (CVD) investigation of large 
residential washers (washing machines) from the Republic of Korea 
(Korea) to exclude top-load washing machines with a vertical rotational 
axis and a rated capacity of less than 3.70 cubic feet.

DATES: Effective Date: July 27, 2012.

FOR FURTHER INFORMATION CONTACT: Justin Neuman or Milton Koch, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0486 
and (202) 482-2584, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 19, 2012, the Department initiated the CVD investigation 
of washing machines from Korea.\1\ On May 29, 2012, the Department 
issued its affirmative preliminary determination.\2\
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    \1\ See Large Residential Washers From the Republic of Korea: 
Initiation of Countervailing Duty Investigation, 77 FR 4279 (January 
27, 2012) (Initiation Notice).
    \2\ See Large Residential Washers From the Republic of Korea: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping 
Determination, 77 FR 33181 (June 5, 2012) (Preliminary 
Determination).
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    In accordance with the preamble to the Department's regulations,\3\ 
in our Initiation Notice the Department set aside a period of time for 
parties to raise issues regarding product coverage, and encouraged all 
parties to submit comments within 20 calendar days of publication of 
the Initiation Notice. No interested party submitted comments during 
that period. However, on May 17, 2012, the petitioner, Whirlpool 
Corporation, requested that the Department exclude automatic washing 
machines with a vertical rotational axis and a rated capacity of less 
than 3.70 cubic feet from the scope of this and the concurrent 
antidumping duty (AD) investigations of washing machines from Mexico 
and Korea. Subsequently, the Department received comments from 
respondents Samsung Electronics Co., Ltd. (Samsung) on May 23, 2012, 
and from LG Electronics, Inc. on May 24, 2012, objecting to the 
petitioner's scope exclusion request. On June 21, 2012, the Department 
contacted U.S. Customs and Border Protection (CBP) seeking its input on 
whether the petitioner's proposed scope exclusion request, if granted 
by the Department, would be enforceable by CBP.\4\ On July 11, 2012, 
General Electric Company (GE), a domestic producer and importer of 
washing machines, filed comments on the record of the AD investigation 
of washing machines from Korea in support of the petitioner's scope 
exclusion request. GE's comments were placed on the record of this CVD 
investigation on July 18, 2012. Also on July 18, Staber Industries, 
Inc., a domestic producer of washing machines, filed comments in 
support of the petitioner's scope exclusion request.
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    \3\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Memorandum from Brandon Custard to The File, ``Exchange 
with CBP Regarding Petitioner's Scope Exclusion Request,'' dated 
June 21, 2012.
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    Based on the comments received from the interested parties and 
information provided by CBP, the Department is amending the scope of 
the investigations to exclude top-load washing machines with a vertical 
rotational axis and a rated capacity of less than 3.70 cubic feet.\5\ 
Section

[[Page 46716]]

702(b)(1) of the Tariff Act of 1930 (as amended) (the Act), states that 
a ``petition may be amended at such time, and upon such conditions, as 
the administering authority * * * may permit.'' In making a request to 
amend the scope of the investigations, the petitioner is essentially 
asking for the Department to amend the petition. It is, therefore, 
within the Department's authority to permit such an amendment.\6\ 
Further, it is the Department's practice to provide ample deference to 
the petitioner with respect to the merchandise from which it intends to 
seek relief.\7\
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    \5\ See Large Residential Washers from Mexico: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, and Large Residential Washers from the Republic 
of Korea: Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination, signed July 27, 2012 (not 
yet published), for the scope amendments in the concurrent AD 
washing machine investigations.
    \6\ See section 702(b)(1) of the Act.
    \7\ See ``Memorandum from The Team to Gary Taverman, Senior 
Advisor for Antidumping and Countervailing Duty Operations: 
Exclusion of Top-Load Washing Machines with a Rated Capacity Less 
than 3.70 Cubic Feet from the Scope of the Investigations,'' dated 
July 27, 2012, for further discussion.
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Amended Scope of the Investigation

    The product covered by this investigation is all large residential 
washers and certain subassemblies thereof from Korea.
    For purposes of this investigation, the term ``large residential 
washers'' denotes all automatic clothes washing machines, regardless of 
the orientation of the rotational axis, except as noted below, 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 tubs 
\8\ designed for use in large residential washers which incorporate, at 
a minimum: (a) A tub; and (b) a seal; (3) all assembled baskets \9\ 
designed for use in large residential washers which incorporate, at a 
minimum: (a) a side wrapper; \10\ (b) a base; and (c) a drive hub; \11\ 
and (4) any combination of the foregoing subassemblies.
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    \8\ A ``tub'' is the part of the washer designed to hold water.
    \9\ A ``basket'' (sometimes referred to as a ``drum'') is the 
part of the washer designed to hold clothing or other fabrics.
    \10\ A ``side wrapper'' is the cylindrical part of the basket 
that actually holds the clothing or other fabrics.
    \11\ A ``drive hub'' is the hub at the center of the base that 
bears the load from the motor.
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    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; \12\ (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; \13\ or
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    \12\ ``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.
    \13\ 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.
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    (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,\14\ 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.
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    \14\ ``Normal operation'' refers to the operating mode(s) 
available to end users (i.e., not a mode designed for testing or 
repair by a technician).
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    Also excluded from the scope are automatic clothes washing machines 
with a vertical rotational axis and a rated capacity of less than 3.70 
cubic feet, as certified to the U.S. Department of Energy pursuant to 
10 CFR 429.12 and 10 CFR 429.20, and in accordance with the test 
procedures established in 10 CFR part 430.
    The products subject to this investigation are currently 
classifiable under subheading 450.20.0090 of the Harmonized Tariff 
System 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 scope is 
dispositive.

Suspension of Liquidation

    As noted in the Preliminary Determination, sections 703(d)(1)(B) 
and (2) of the Act require the Department, upon making an affirmative 
preliminary determination, to direct CBP to suspend liquidation of all 
entries of the subject merchandise from Korea, other than those 
exported by companies with a de minimis ad valorem subsidy rate, that 
are entered, or withdrawn from warehouse, for consumption on or after 
the publication date of the preliminary determination in the Federal 
Register, and to require a cash deposit for such entries of the 
merchandise in the amounts of the calculated subsidy rates or all-
others rate, as appropriate.\15\ Because the scope of this 
investigation is being amended, the Department will direct CBP to 
suspend liquidation of entries of the subject merchandise from Korea 
using the amended scope language.
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    \15\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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Public Comment

    Interested parties who wish to comment on the amended scope 
language should do so when submitting case briefs. As noted in the 
Preliminary Determination, the Department will notify parties of the 
schedule for submitting case briefs and rebuttal briefs, in accordance 
with 19 CFR 351.309(c) and 19 CFR 351.309(d)(1), respectively. A list 
of authorities relied upon, a table of contents, and an executive 
summary of issues should accompany any briefs submitted to the 
Department. Executive summaries should be limited to five pages total, 
including footnotes. Based on timely requests by the petitioner and 
Samsung, the Department intends to hold a public hearing to afford 
interested parties an opportunity to discuss the arguments raised in 
case or rebuttal briefs. The Department will notify all parties 
regarding the scheduling of the public hearing, which will be held at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW.,

[[Page 46717]]

Washington, DC 20230. Parties should confirm, by telephone, the date, 
time, and place of the hearing 48 hours before the scheduled time.
    This notice is issued pursuant to 777(i) of the Act.

    Dated: July 31, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2012-19152 Filed 8-3-12; 8:45 am]
BILLING CODE 3510-DS-P