Korea Large Residential Washers: Prelim AD Cash Deposit Rates Take Effect; ITA Applies ‘Zeroing’
The International Trade Administration made a preliminary affirmative antidumping determination that large residential washers from Korea (A-580-868) are being, or are likely to be, sold in the U.S. at less than fair value. ITA found preliminary AD rates of 9.62% to 79.11%, which are effective Aug. 3. Notably, the ITA used a methodology that applied ‘zeroing’ in its calculation of AD rates for LG and Samsung, respectively, which is a departure from the normal ITA practice in place since 2007. CBP is expected to implement these AD cash deposit/bond requirements soon. Pursuant to the ITA's October 2011 final rule, no bond will be accepted in lieu of a cash deposit.
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(See ITT's Online Archives 12060432 for summary of the ITA's affirmative preliminary determination in this case's companion countervailing duty proceeding, which found preliminary CV rates of zero to 70.58%.)
New Exception Added to Scope
The ITA said it is preliminarily amending the scope of the investigations of large residential washers from Korea and Mexico to exclude top-load washers with a vertical rotational axis and a rated capacity of less than 3.70 cubic feet. The new paragraph in the scope says: “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.”
ITA Finds ‘Targeted Dumping,’ Applies ‘Zeroing’ Methodology to LG & Samsung
The ITA performed a “targeted dumping” analysis for this preliminary determination, and preliminarily determined that there is a pattern of U.S. prices for comparable merchandise that differs significantly among certain time periods, customers, and regions (i.e., “targeted dumping”) for LG and Samsung. The ITA also found that its normal average-to-average dumping margin calculation methodology, which provides offsets for positive margins, did not adequately capture the “targeted dumping” by LG and Samsung.
Instead of the average-to-average methodology, which has been in place as normal ITA practice for investigations since 2007, the ITA instead applied a methodology comparing the average normal value to the transaction specific prices of exports to the U.S. In applying this methodology, the ITA did not provide offsets for positive dumping margins (i.e., the ITA did not average the dumped transactions, where the U.S. price is lower than the price in a home or third-country market, with non-dumped transactions where the U.S. price is higher than the home or third-country price).
(See ITT's Online Archives 07010825 and 07012930 for summary and delayed effective date of ITA ending "zeroing" in average-to-average method AD investigations.)
AD Suspension of Liquidation and Cash Deposit Requirements
The ITA will instruct CBP to suspend liquidation for all entries of subject merchandise from Korea that are entered, or withdrawn from warehouse, for consumption on or after Aug. 3.
The preliminary AD cash deposit rates are as follows:
| Exporter/Manufacturer | Prelim AD Rate |
| Daewoo Electronics Corporation1 | 79.11% (adjusted) |
| LG Electronics, Inc. | 12.15% |
| Samsung Electronics Co., Ltd.2 | 9.62% |
| All Others | 11.36% |
1According to the ITA, Daewoo did not submit a response to its questionnaire. The ITA found that Daewoo impeded the investigation, and preliminarily applied an adverse facts available (AFA) prelim AD rate of 82.41%. Because Daewoo was preliminarily found to benefit from export subsidies in this case’s companion CV duty investigation, its prelim AD rate was reduced by 3.3%, or the portion of the CV duty rate attributable to export subsidies.
2The ITA said the petitioner alleged that Samsung had engaged in fraudulent conduct that undermines the integrity of this investigation. While the ITA did not receive the allegation in time to consider it for this preliminary determination, the ITA said it will examine and address the allegation, and decide whether Samsung merits an AFA rate, in the final determination.
(The period of investigation is 10/01/2010-09/30/2011. See ITA’s notice for more information, including the postponement of the final determination until about Dec. 16, scope (changed since initiation), targeted dumping analysis, suspension of liquidation, etc.
See ITT’s Online Archives 12073104 for summary of the ITA’s fact sheet on this preliminary determination. See ITT’s Online Archives 12012560 for summary of initiation of this investigation.
See ITT's Online Archives 11100305 for summary of the ITA's October 2011 final rule ending the bond option after preliminary determinations.)
ITA contact -- David Goldberger (202) 482-4136