83 FR 22006 - 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

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 92 (May 11, 2018)

Based upon a request from Whirlpool Corporation (Whirlpool), the Department of Commerce (Commerce) is initiating changed circumstances reviews to consider the possible revocation, in part, of 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 LRWs from Korea 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).

[Federal Register Volume 83, Number 92 (Friday, May 11, 2018)]
[Notices]
[Pages 22006-22007]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10070]



[[Page 22006]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-842, A-580-868, C-580-869]


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

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

SUMMARY: Based upon a request from Whirlpool Corporation (Whirlpool), 
the Department of Commerce (Commerce) is initiating changed 
circumstances reviews to consider the possible revocation, in part, of 
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 LRWs from Korea 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).

DATES: Applicable May 11, 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 February 15, 2013, Commerce published the AD orders on LRWs from 
Korea and Mexico and the CVD order on LRWs from Korea.\1\ On March 22, 
2018, Whirlpool requested that Commerce conduct changed circumstances 
reviews pursuant to section 751(b)(1) of the Tariff Act of 1930, as 
amended (the Act) and 19 CFR 351.216(b).\2\ Whirlpool expressed an 
interest in partially revoking the Orders with respect to FL CIM/Belt 
washers--LRWs that (1) have a horizontal rotational axis; (2) are front 
loading; \3\ and (3) have a drive train consisting, inter alia, of (a) 
a controlled induction motor \4\ and (b) a belt drive. Whirlpool 
acknowledged that it is unclear whether it represents substantially all 
of the domestic industry. Thus, Whirlpool stated that Commerce should 
solicit comments from other members of the domestic industry.\5\ 
Subsequently, LG Electronics Inc. (LG) and Samsung Electronics Co., 
Ltd. (Samsung) both submitted comments on Whirlpool's request in which 
they noted that it is unclear whether Whirlpool represents 
``substantially all'' of the domestic industry and requested that 
Commerce solicit comments.\6\ We received no comments from other 
interested parties.
---------------------------------------------------------------------------

    \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) 
(collectively, the Orders).
    \2\ See Letter from Whirlpool, ``Large Residential Washers from 
the Republic of Korea and Mexico: Request for Changed Circumstances 
Review,'' dated March 22, 2018.
    \3\ According to Whirlpool, ``front loading'' means that 
``access to the basket is from the front of the washer.'' Id. at 1 
n.1
    \4\ According to Whirlpool, a ``controlled induction motor'' is 
``an asynchronous, alternating current, polyphase induction motor.'' 
Id. at 2 n.2.
    \5\ Id. at 6.
    \6\ See Letter from LG, ``LG Electronics' Response to 
Whirlpool's Request for Changed Circumstances Review,'' dated March 
27, 2018, and Letter from Samsung, ``Large Residential Washers from 
Korea and Mexico: Response to Whirlpool's Changed Circumstances 
Review Request,'' dated March 29, 2018.
---------------------------------------------------------------------------

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 
\7\ designed for use in large residential washers which incorporate, at 
a minimum: (a) A tub; and (b) a seal; (3) all assembled baskets \8\ 
designed for use in large residential washers which incorporate, at a 
minimum: (a) a side wrapper; \9\ (b) a base; and (c) a drive hub; \10\ 
and (4) any combination of the foregoing subassemblies.
---------------------------------------------------------------------------

    \7\ A ``tub'' is the part of the washer designed to hold water.
    \8\ A ``basket'' (sometimes referred to as a ``drum'') is the 
part of the washer designed to hold clothing or other fabrics.
    \9\ A ``side wrapper'' is the cylindrical part of the basket 
that actually holds the clothing or other fabrics.
    \10\ A ``drive hub'' is the hub at the center of the base that 
bears the load from the motor.
---------------------------------------------------------------------------

    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; \11\ (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; \12\ or

    \11\ ``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.
    \12\ 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.
    \13\ ``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).
---------------------------------------------------------------------------

(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,\13\ 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.

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,

[[Page 22007]]

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.

Proposed Revocation of the Orders

    Whirlpool requests that the Orders be revoked with respect to all 
unliquidated entries of FL CIM/Belt washers. 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.'' \14\
---------------------------------------------------------------------------

    \14\ 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.''
---------------------------------------------------------------------------

Initiation of Changed Circumstances Reviews, and Consideration of 
Revocation of the Orders, in Part

    Pursuant to section 751(b)(1) of the Act, Commerce will conduct a 
changed circumstances review upon receipt of a request from an 
interested party that shows changed circumstances sufficient to warrant 
a review of an order.\15\ In accordance with 19 CFR 351.216(d), 
Commerce determines that the information submitted by Whirlpool 
constitutes sufficient evidence to conduct changed circumstances 
reviews of the Orders.
---------------------------------------------------------------------------

    \15\ See 19 CFR 351.216.
---------------------------------------------------------------------------

    Section 782(h)(2) of the Act and 19 CFR 351.222(g)(1)(i) provide 
that Commerce may revoke an order (in whole or in part) if it 
determines that producers accounting for substantially all of the 
production of the domestic like product have expressed a lack of 
interest in the order, in whole or in part. In its administrative 
practice, Commerce has interpreted ``substantially all'' to mean 
producers accounting for at least 85 percent of the total U.S. 
production of the domestic like product covered by the order.\16\
---------------------------------------------------------------------------

    \16\ See, e.g., Certain Cased Pencils from the People's Republic 
of China: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, and Intent To Revoke Order in Part, 77 
FR 42276 (July 18, 2012), unchanged in Certain Cased Pencils from 
the People's Republic of China: Final Results of Antidumping Duty 
Changed Circumstances Review, and Determination To Revoke Order, in 
Part, 77 FR 53176 (August 31, 2012).
---------------------------------------------------------------------------

    As discussed below, we are providing interested parties with an 
opportunity to address the issue of domestic industry support (i.e., 
support by ``substantially all'' of the domestic industry) with respect 
to this requested partial revocation of the Orders, as explained below. 
After examining comments, if any, concerning domestic industry support, 
Commerce will issue the preliminary results of these changed 
circumstances reviews.

Public Comment

    In its request, Whirlpool acknowledges that it is unclear whether 
the company represents substantially all of the domestic industry, and, 
therefore, requests that Commerce solicit comments from other members 
of the domestic industry.\17\ Accordingly, we invite members of the 
domestic industry to provide comments, including their domestic 
production data of LRWs for 2017.\18\ Other interested parties may also 
provide comments regarding these changed circumstances reviews, 
including comments concerning industry support under section 782(h) of 
the Act. Comments and factual information may be submitted to Commerce 
no later than ten days after the date of publication of this notice. 
Rebuttal comments and rebuttal factual information may be filed with 
Commerce no later than seven days after the deadline for comments and/
or factual information.\19\ All submissions must be filed 
electronically using Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS).\20\ 
An electronically filed document must be received successfully in its 
entirety by ACCESS, by 5:00 p.m. Eastern Time on the due dates set 
forth in this notice.
---------------------------------------------------------------------------

    \17\ See Whirlpool Request at 6.
    \18\ Parties should provide the volume (in number of units) and 
value (in U.S. dollars) of their domestic production of LRWs for 
2017.
    \19\ Submission of rebuttal factual information must comply with 
19 CFR 351.301(b)(2).
    \20\ See, generally, 19 CFR 351.303.
---------------------------------------------------------------------------

Preliminary and Final Results of the Reviews

    Commerce intends to publish in the Federal Register a notice of the 
preliminary results of these changed circumstances reviews in 
accordance with 19 CFR 351.221(b)(4) and (c)(3)(i), which will set 
forth Commerce's preliminary factual and legal conclusions. Commerce 
will issue its final results of these changed circumstances reviews in 
accordance with the time limits set forth in 19 CFR 351.216(e).
    This notice is published in accordance with section 751(b)(1) of 
the Act and 19 CFR 351.221(b)(1).

    Dated: May 7, 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. 2018-10070 Filed 5-10-18; 8:45 am]
 BILLING CODE 3510-DS-P