Commerce Initiates Antidumping Duty Investigation of Imports of Large Residential Washers from China

Commerce Initiates Antidumping Duty Investigation of Imports ofLarge Residential Washers from the People’s Republic of China

•On January 6, 2016, the Department of Commerce (Commerce) announced the initiation of theantidumping duty (AD) investigation of imports of certain large residential washers (washingmachines) from the People’s Republic of China (China).

• The AD law provides U.S. businesses and workers with a transparent and internationally acceptedmechanism to seek relief from the market-distorting effects caused by injurious dumping of importsinto the United States, establishing an opportunity to compete on a level playing field.

• For the purpose of an AD investigation, dumping occurs when a foreign company sells a product inthe United States at less than its fair value.

• The petitioner for this investigation is Whirlpool Corporation (MI).

• The products covered by this investigation are large residential washers and certain parts thereof fromthe People’s Republic of China.

For purposes of this investigation, the term “large residential washers” denotes all automatic clotheswashing machines, regardless of the orientation of the rotational axis, with a cabinet width (measuredfrom its widest point) of at least 24.5 inches (62.23 cm) and no more than 32.0 inches (81.28 cm),except as noted below.

Also covered are certain parts used in large residential washers, namely: (1) all cabinets, or portionsthereof, designed for use in large residential washers; (2) all assembled tubs1 designed for use inlarge residential washers which incorporate, at a minimum: (a) a tub; and (b) a seal; (3) all assembledbaskets2 designed for use in large residential washers which incorporate, at a minimum: (a) a sidewrapper;3 (b) a base; and (c) a drive hub;4 and (4) any combination of the foregoing parts orsubassemblies.

Excluded from the scope are stacked washer-dryers and commercial washers. The term “stackedwasher-dryers” denotes distinct washing and drying machines that are built on a unitary frame andshare 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” segment meeting eitherof the following two definitions: 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.U.S. Department of Commerce |International Trade Administration

(1) (a) it contains payment system electronics;5 (b) it is configured with anexternally mounted steel frame at least six inches high that is designed to housea coin/token operated payment system (whether or not the actual coin/tokenoperated payment system is installed at the time of importation); (c) it containsa push button user interface with a maximum of six manually selectable washcycle settings, with no ability of the end user to otherwise modify watertemperature, 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 withsecurity fasteners;6 or

(2) (a) it contains payment system electronics; (b) the payment systemelectronics are enabled (whether or not the payment acceptance device has beeninstalled at the time of importation) such that, in normal operation,7 the unitcannot begin a wash cycle without first receiving a signal from a bona fidepayment acceptance device such as an electronic credit card reader; (c) itcontains a push button user interface with a maximum of six manuallyselectable wash cycle settings, with no ability of the end user to otherwisemodify water temperature, water level, or spin speed for a selected wash cyclesetting; and (d) the console containing the user interface is made of steel and isassembled with security fasteners.

Also excluded from the scope are automatic clothes washing machines that meet all of thefollowing conditions: (1) have a vertical rotational axis; (2) are top loading;8 (3) have a drivetrain consisting, inter alia, of (a) a permanent split capacitor (PSC) motor,9 (b) a belt drive,10 and(c) a flat wrap spring clutch.11

Also excluded from the scope are automatic clothes washing machines that meet all of thefollowing conditions: (1) have a horizontal rotational axis; (2) are front loading;12 and (3) have adrive train consisting, inter alia, of (a) a controlled induction motor (CIM),13 and (b) a belt drive.

Also excluded from the scope are automatic clothes washing machines that meet all of thefollowing conditions: (1) have a horizontal rotational axis; (2) are front loading; and (3) havecabinet width (measured from its widest point) of more than 28.5 inches (72.39 cm). 5 “Payment system electronics” denotes a circuit board designed to receive signals from a payment acceptance device and todisplay payment amount, selected settings, and cycle status. Such electronics also capture cycles and payment history andprovide 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 apin in the center of the head as a “center pin reject” feature to prevent standard Allen wrenches or Torx drivers from working. 7 “Normal operation” refers to the operatingmode(s) available to end users (i.e., not a mode designed for testing or repair by atechnician).8 “Top loading” means that access to the basket is from the top of the washer.9 A “PSC motor” is an asynchronous, alternating current (AC), single phase induction motor that employs split phase capacitortechnology.10 A “belt drive” refers to a drive system that includes a belt and pulleys. 11 A “flat wrap spring clutch” is a flat metal spring that, when engaged, links abutted cylindrical pieces on the input shaft withthe end of the concentric output shaft that connects to the drive hub. 12 “Front loading” means that access to the basket is from the front of the washer. 13 A “controlled induction motor” is an asynchronous, alternating current (AC), polyphase induction motor.U.S. Department of Commerce |International Trade Administration

• The products subject to this investigation are currently classifiable under subheadings 8450.20.0040and 8450.20.0080 of the Harmonized Tariff Schedule of the United States (HTSUS). Productssubject to this investigation 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 convenienceand customs purposes, the written description of the merchandise subject to this investigation isdispositive.

• In 2014, imports of washing machines from China were valued at an estimated $899.4 million.

NEXT STEPS

• The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injurydetermination on or before February 1, 2016.

• If the ITC determines that there is a reasonable indication that imports of washing machines fromChina materially injure, or threaten material injury to, the domestic industry, the AD investigation willcontinue and Commerce will be scheduled to make its preliminary determination in May 2016, unlessthe statutory deadline is extended. If the ITC’s preliminary determination is negative, then the ADinvestigation will be terminated.