83 FR 19222 - Large Residential Washers From the Republic of Korea: Final Results of Expedited First Sunset Review of the Countervailing Duty Order

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 85 (May 2, 2018)

The Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on large residential washers (washing machines) from the Republic of Korea (Korea) would be likely to lead to continuation or recurrence of countervailable subsidies at the levels indicated in the ``Final Results of Sunset Review'' section of this notice.

[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19222-19223]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09310]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-869]


Large Residential Washers From the Republic of Korea: Final 
Results of Expedited First Sunset Review of the Countervailing Duty 
Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) finds that revocation of 
the countervailing duty (CVD) order on large residential washers 
(washing machines) from the Republic of Korea (Korea) would be likely 
to lead to continuation or recurrence of countervailable subsidies at 
the levels indicated in the ``Final Results of Sunset Review'' section 
of this notice.

DATES: Applicable May 2, 2018.

FOR FURTHER INFORMATION CONTACT: Kaitlin Wojnar at (202) 482-3857, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the CVD order on washing machines from Korea on 
February 15, 2013.\1\ On January 2, 2018, Commerce initiated this 
review, the first five-year (sunset) review of the Order, in accordance 
with section 751(c)(2) of the Tariff Act of 1930, as amended (the 
Act).\2\ Whirlpool Corporation, a domestic producer of washing machines 
and the petitioner in the underlying CVD investigation, subsequently 
filed a timely notice of intent to participate.\3\
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    \1\ See Large Residential Washers from the Republic of Korea: 
Countervailing Duty Order, 78 FR 11154 (February 15, 2013) (Order).
    \2\ See Initiation of Five-Year (Sunset) Reviews, 83 FR 100 
(January 2, 2018).
    \3\ See Letter from the petitioner, ``Five-Year (`Sunset') 
Review of Antidumping and Countervailing Duty Orders on Large 
Residential Washers from Mexico and the Republic of Korea: Notice of 
Intent to Participate,'' January 17, 2018. As a domestic producer of 
washing machines, the petitioner is an interested party to this 
proceeding pursuant to section 771(9)(C) of the Act.
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    Commerce received an adequate and timely substantive response from 
the petitioner on February 5, 2018.\4\ Neither the Government of Korea 
(GOK) nor any other respondent interested party to this proceeding 
submitted a substantive response. Therefore, pursuant to section 
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)(2) and (C)(2), 
Commerce conducted an expedited sunset review of the Order. As a result 
of the tolling of deadlines for the closure of the Federal Government 
from January 20 through January 22, 2018, the deadline for this 
expedited sunset review was extended to May 7, 2018.\5\
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    \4\ See Letter from the petitioner, ``Five-Year (`Sunset') 
Review of the Countervailing Duty Order on Large Residential Washers 
from Korea: Substantive Response of Whirlpool Corporation to the 
Notice of Initiation of First Sunset Review,'' February 5, 2018. The 
petitioner's response was filed in accordance with 19 CFR 
351.218(d).
    \5\ See Commerce Memorandum, ``Deadlines Affected by the 
Shutdown of the Federal Government,'' January 23, 2018.
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Scope of the Order

    The product covered by the Order is washing machines from Korea. 
For a complete description of the scope of the Order, see the Appendix 
to this notice.

Analysis of Comments Received

    All issues raised in this review are addressed in the accompanying 
Issues and Decision Memorandum.\6\ These issues include the likelihood 
of continuation or recurrence of countervailable subsidies, the net 
countervailable subsidy rate likely to prevail upon revocation of the 
Order, and the nature of the subsidies. The Issues and Decision 
Memorandum is a public document and is available electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at http://access.trade.gov and to all parties in the 
Central Records Unit in Room B8024 of the main Commerce building. In 
addition, a complete electronic version of the Issues and Decision 
Memorandum can be accessed at http://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Issues and Decision Memorandum 
are identical in content.
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    \6\ See Commerce Memorandum, ``Countervailing Duty Order on 
Large Residential Washers from the Republic of Korea: Issues and 
Decision Memorandum for the Final Results of the Expedited First 
Sunset Review,'' dated concurrently with, and hereby adopted by, 
this Federal Register notice (Issues and Decision Memorandum).
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Final Results of Sunset Review

    Pursuant to sections 752(b)(1) and (3) of the Act, we determine 
that revocation of the Order would be likely to lead to continuation or 
recurrence of net

[[Page 19223]]

countervailable subsidies at the rates listed below:

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
                   Exporter/producer                       subsidy rate
                                                            (percent)
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Daewoo Electronics Corporation.........................          80.25
Samsung Electronics Co., Ltd...........................          20.75
All-Others.............................................          15.28
------------------------------------------------------------------------

Notification Regarding Administrative Protective Order

    This notice also serves as the only reminder to parties subject to 
an administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation subject 
to sanction.
    Commerce is issuing and publishing these final results in 
accordance with sections 751(c), 752(b), and 777(i)(1) of the Act and 
19 CFR 351.218.

    Dated: April 26, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The products covered by this order are all large residential 
washers and certain subassemblies thereof from Korea.
    For purposes of this order, 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 \1\ designed for use in large residential washers 
which incorporate, at a minimum: (a) A tub; and (b) a seal; (3) all 
assembled baskets \2\ designed for use in large residential washers 
which incorporate, at a minimum: (a) A side wrapper; \3\ (b) a base; 
and (c) a drive hub; \4\ and (4) any combination of the foregoing 
subassemblies.
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    \1\ A ``tub'' is the part of the washer designed to hold water.
    \2\ A ``basket'' (sometimes referred to as a ``drum'') is the 
part of the washer designed to hold clothing or other fabrics.
    \3\ A ``side wrapper'' is the cylindrical part of the basket 
that actually holds the clothing or other fabrics.
    \4\ 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; \5\ (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; \6\ or
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    \5\ ``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.
    \6\ 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,\7\ 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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    \7\ ``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 order are currently classifiable 
under subheading 8450.20.0090 of the Harmonized Tariff System of the 
United States (HTSUS). Products subject to this order 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.

[FR Doc. 2018-09310 Filed 5-1-18; 8:45 am]
 BILLING CODE 3510-DS-P