[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