[Federal Register Volume 83, Number 220 (Wednesday, November 14, 2018)]
[Notices]
[Pages 56808-56811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24798]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-842; A-580-868; C-580-869]
Preliminary Results of Changed Circumstances Reviews of the
Antidumping Duty Orders on Large Residential Washers From the Republic
of Korea and Mexico, and the Countervailing Duty Order on Large
Residential Washers From the Republic of Korea
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
[[Page 56809]]
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
not to revoke the antidumping duty (AD) orders on large residential
washers (LRWs) from the Republic of Korea (Korea) and Mexico and the
countervailing duty (CVD) order on large residential washers from
Korea, in part, with respect to LRWs that (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 and (b) a
belt drive (hereinafter, FL CIM/Belt washers), because Whirlpool
Corporation (Whirlpool), the requestor, does not account for
substantially all of the production of domestic like product to which
these orders pertain.
DATES: Applicable November 14, 2018.
FOR FURTHER INFORMATION CONTACT: William Miller or Ajay Menon, AD/CVD
Operations, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone (202) 482-3906 or (202) 482-1993,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 11, 2018, in response to a request by Whirlpool, a domestic
producer of the subject merchandise, Commerce published a notice of
initiation of changed circumstances reviews to consider the possible
revocation, in part, of the AD orders on LRWs from Korea and Mexico and
the CVD order on large residential washers from Korea (collectively,
the Orders \1\) with respect to FL CIM/Belt washers.\2\ In the
Initiation Notice, we invited comments from: (1) Members of the
domestic industry, including their domestic production data of LRWs for
2017; and (2) other interested parties regarding industry support.\3\
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\1\ See Large Residential Washers from Mexico and the Republic
of Korea: Antidumping Duty Orders, 78 FR 11148 (February 15, 2013);
and Large Residential Washers from the Republic of Korea:
Countervailing Duty Order, 78 FR 11154 (February 15, 2013) (the
Orders).
\2\ See Large Residential Washers from the Republic of Korea and
Mexico: Initiation of Changed Circumstances Reviews, and
Consideration of Revocation, in Part, of the Antidumping Duty Orders
on Large Residential Washers from the Republic of Korea and Mexico
and the Countervailing Duty Order on Large Residential Washers from
the Republic of Korea, 83 FR 22006 (May 11, 2018) (Initiation
Notice).
\3\ Id., 83 FR at 22007.
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On May 21, 2018, we received comments from Haier U.S. Appliance
Solutions, Inc., d/b/a GE Appliances (GE); \4\ LG Electronics USA,
Inc., LG Electronics Alabama, Inc., and LG Electronics, Inc.
(collectively, LGE); \5\ Samsung Electronics Co., Ltd., Samsung
Electronics America, and Samsung Electronics Home Appliances America
(collectively, Samsung); \6\ and Whirlpool.\7\ Samsung opposed
Whirlpool's request, noting that the U.S. International Trade
Commission defined FL CIM/Belt washers as part of the domestic like
product.\8\ LGE also opposed Whirlpool's request, and argued that
partially revoking the Orders would harm domestic producers.\9\
Additionally, Samsung and LGE each argued that their potential 2018 and
2019 production should be included in Commerce's analysis because they
started producing LRWs in the United States in 2018.\10\ GE also
opposed Whirlpool's request and provided its 2017 production data.\11\
Finally, Whirlpool submitted additional comments in support of its
request and provided its 2017 production data.\12\
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\4\ See GE's Letter, ``Large Residential Washers from the
Republic of Korea and Mexico--GE Appliances Entry of Appearance and
Substantive Response,'' (GE's Comments) dated May 21, 2018, at 2.
\5\ See LGE's Letter, ``LGE's Comments on Initiation of Changed
Circumstances Review (CCR) Large Residential Washers from Korea,''
(LGE's Comments) dated May 21, 2018, at 2-11.
\6\ See Samsung's Letter, ``Large Residential Washers from Korea
and Mexico: Belt Drive CCR Response to Request for Information and
Comments,'' (Samsung's Comments) dated May 21, 2018, at 2-7.
\7\ See Whirlpool Corporation's (Whirlpool) Letter, ``Large
Residential Washers from Korea and Mexico: Response of Whirlpool
Corporation to U.S. Department of Commerce Request for 2017
Production Data to Support Partial Revocation of AD/CVD Orders,''
(Whirlpool's Comments) dated May 21, 2018, at 2.
\8\ See Samsung's Comments at 3.
\9\ See LGE's Comments at 6.
\10\ Id. at 3; see also Samsung's Comments at 6.
\11\ See GE's Comments at 2.
\12\ See Whirlpool's Comments at 2.
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On May 29, 2018, we received rebuttal comments from LGE,\13\
Samsung,\14\ and Whirlpool.\15\ In their rebuttal comments, LGE and
Samsung reiterated that Whirlpool does not account for substantially
all of the domestic industry.\16\ Conversely, in its rebuttal comments,
Whirlpool argued that Commerce should use 2017 production data in
determining industry support and not speculative future production.\17\
Whirlpool further asserted that Commerce should disregard GE's 2017
production data and exercise its discretion to find that Whirlpool
constitutes ``substantially all'' of the domestic industry.\18\
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\13\ See LGE's Letter, ``LG Electronics' Rebuttal Comments
(Changed Circumstances Review) Large Residential Washers from Korea
and Mexico,'' (LGE's Rebuttal Comments) dated May 29, 2018, at 2-5.
\14\ See Samsung's Letter, ``Large Residential Washers from
Korea and Mexico: Belt Drive CCR Response to Comments and
Information,'' (Samsung's Rebuttal Comments) dated May 29, 2018.
\15\ See Whirlpool's Letter, ``Large Residential Washers
(``LRWs'') from Korea and Mexico: Rebuttal Comments of Whirlpool
Corporation,'' (Whirlpool's Rebuttal Comments) dated May 29, 2018.
\16\ See LGE's Rebuttal Comments at 4; see also Samsung's
Rebuttal Comments at 2.
\17\ See Whirlpool's Rebuttal Comments at 2.
\18\ Id. at 6.
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Scope of the Orders
The products covered by the Orders are all large residential
washers and certain subassemblies thereof from Mexico and Korea.
For purposes of these Orders, 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
\19\ designed for use in large residential washers which incorporate,
at a minimum: (a) a tub; and (b) a seal; (3) all assembled baskets \20\
designed for use in large residential washers which incorporate, at a
minimum: (a) A side wrapper; \21\ (b) a base; and (c) a drive hub; \22\
and (4) any combination of the foregoing subassemblies.
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\19\ A ``tub'' is the part of the washer designed to hold water.
\20\ A ``basket'' (sometimes referred to as a ``drum'') is the
part of the washer designed to hold clothing or other fabrics.
\21\ A ``side wrapper'' is the cylindrical part of the basket
that actually holds the clothing or other fabrics.
\22\ 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:
[[Page 56810]]
(1) (a) it contains payment system electronics; \23\ (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; \24\ or
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\23\ ``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.
\24\ 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,\25\ 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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\25\ ``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).
Also excluded from the scope are automatic clothes washing machines
with a vertical rotational axis and a rated capacity of less than 3.7
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 these Orders 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 these
Orders 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.
Scope of Changed Circumstances Reviews
Whirlpool requests that Commerce revoke the Orders, in part, with
respect to FL CIM/Belt washers.\26\ Should Commerce determine to revoke
the Orders, in part, Whirlpool proposes that Commerce amend the scope
language as follows: ``{A{time} lso 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 and (b) a belt drive.'' \27\
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\26\ See Whirlpool's Comments at 2.
\27\ Whirlpool proposes that the following words be defined as
follows: (1) ``front loading'' means that ``access to the basket is
from the front of the washer;'' and (3) a ``controlled induction
motor'' is ``an asynchronous, alternating current, polyphase
induction motor.''
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Preliminary Results of Changed Circumstances Reviews
Pursuant to sections 751(d)(1) and 782(h) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.222(g), Commerce may revoke
an AD or CVD order, in whole or in part, based on a review under
section 751(b) of the Act (i.e., a changed circumstances review).
Section 751(b)(1) of the Act requires that a changed circumstances
review be conducted upon receipt of a request which shows changed
circumstances sufficient to warrant a review. Section 782(h)(2) of the
Act gives Commerce the authority to revoke an order if producers
accounting for substantially all of the production of the domestic like
product have expressed a lack of interest in the order. Section
351.222(g) of Commerce's regulations provides that Commerce will
conduct a changed circumstances review under 19 CFR 351.216, and may
revoke an order (in whole or in part), if it concludes that: (i)
Producers accounting for substantially all of the production of the
domestic like product to which the order pertains have expressed a lack
of interest in the relief provided by the order, in whole or in part,
or (ii) if other changed circumstances sufficient to warrant revocation
exist. Both the Act and Commerce's regulations require that
``substantially all'' domestic producers express a lack of interest in
the order for Commerce to revoke the order, in whole or in part.\28\
Commerce has interpreted ``substantially all'' to represent producers
accounting for at least 85 percent of U.S. production of the domestic
like product.\29\
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\28\ See Section 782(h) of the Act and 19 CFR 351.222(g).
\29\ See, e.g., Honey from Argentina; Antidumping and
Countervailing Duty Changed Circumstances Reviews; Preliminary
Intent to Revoke Antidumping and Countervailing Duty Orders, 77 FR
67790, 67791 (November 14, 2012), unchanged in Honey from Argentina;
Final Results of Antidumping and Countervailing Duty Changed
Circumstances Reviews; Revocation of Antidumping and Countervailing
Duty Orders, 77 FR 77029 (December 31, 2012).
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Record evidence indicates that Whirlpool does not account for at
least 85 percent of the production of the domestic like product, and
therefore, does not account for ``substantially all'' of the production
of the domestic like product.\30\ We based our analysis on actual 2017
production volumes, the most recent complete year for which we have
actual production data.\31\ Information on the record of this
proceeding shows that in 2017, only GE and Whirlpool had actual
domestic production of LRWs.\32\ GE opposed Whirlpool's request. We
find no basis to disregard GE's 2017 production volume for purposes of
our preliminary analysis, as suggested by Whirlpool.
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\30\ See Memorandum, ``Analysis of U.S. Production Data for the
Preliminary Results of the Changed Circumstances Reviews: Large
Residential Washers from the Republic of Korea and Mexico''
(Analysis Memorandum), dated concurrently with this notice, at 1.
\31\ LGE and Samsung argue that we should base our determination
on projected production data for 2018 and 2019. However, we need not
reach this issue, given that even the 2017 data demonstrate that
Whirlpool did not account for ``substantially all'' of the domestic
production.
\32\ The data on each company's 2017 production volumes and
values are business proprietary information that cannot be discussed
here. For more information, see Analysis Memorandum.
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Therefore, based on our analysis of the 2017 production volumes of
the domestic industry, we preliminarily determine not to revoke the
Orders, in part, with respect to FL/CIM Belt washers.
Public Comment
Interested parties may submit case briefs no later than 21 days
after the date of publication of this notice.\33\ Rebuttals briefs,
limited to arguments raised in the case briefs, may be submitted no
later than seven days after the deadline for case briefs.\34\ Parties
who submit case or rebuttal briefs are requested to submit, as part of
that submission, (a) a statement of the issues, (b) a summary of the
arguments, and (c) a table of authorities.\35\
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\33\ See 19 CFR 351.309(c)(1)(ii).
\34\ See 19 CFR 351.309(d).
\35\ See 19 CFR 351.309(c)(2) and (d)(2).
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Any interested party may request a hearing within 30 days of
publication of this notice.\36\ Hearing requests should
[[Page 56811]]
contain the following information: (1) The party's name, address, and
telephone number; (2) the number of participants; and (3) a list of the
issues to be discussed. Oral presentations at the hearing will be
limited to issues raised in the case and rebuttal briefs. If a request
for a hearing is made, parties will be notified of the time and date
for the hearing to be held at the U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230.\37\
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\36\ See 19 CFR 351.310(c).
\37\ See 19 CFR 351.310(d).
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All submissions, with limited exceptions, must be filed
electronically using Enforcement and Compliance's AD and CVD
Centralized Electronic Service System (ACCESS).\38\ ACCESS is available
to registered users at http://access.trade.gov and in the Central
Records Unit, Room B8024 of the main Department of Commerce building.
An electronically filed document must be received successfully in its
entirety by ACCESS, by 5 p.m. Eastern Time (ET) on the due date.
Documents excepted from the electronic submission requirements must be
filed manually (i.e., in paper form) with the APO/Dockets Unit in Room
18022 and stamped with the date and time of receipt by 5 p.m. ET on the
due date.\39\
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\38\ See generally 19 CFR 351.303.
\39\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011).
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Commerce will issue the final results of these changed
circumstances reviews, which will include its analysis of any written
comments, no later than 270 days after the date on which this review
was initiated.
The current requirement for cash deposits of estimated antidumping
and countervailing duties on all entries of subject merchandise will
continue unless until they are modified pursuant to the final results
of these changed circumstances reviews.
This notice is published in accordance with sections 751(b) and
777(i) of the Act.
Dated: November 5, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance
[FR Doc. 2018-24798 Filed 11-13-18; 8:45 am]
BILLING CODE 3510-DS-P