Large Residential Washers From the Republic of Korea and Mexico: Initiation of Antidumping Duty Investigations, 4007-4013 [2012-1679]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 77, Number 17 (Thursday, January 26, 2012)]
[Notices]
[Pages 4007-4013]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1679]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-868, A-201-841]


Large Residential Washers From the Republic of Korea and Mexico: 
Initiation of Antidumping Duty Investigations

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: January 26, 2012.

FOR FURTHER INFORMATION CONTACT: David Goldberger (Mexico) or Holly 
Phelps (Republic of Korea), AD/CVD Operations, Office 2, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230; telephone: (202) 482-4136 or (202) 482-0656, respectively.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On December 30, 2011, the Department of Commerce (``the 
Department'') received antidumping duty petitions concerning imports of 
large residential washers (washing machines) from the Republic of Korea 
(``Korea'') and Mexico filed in proper form by Whirlpool Corporation 
(``the petitioner''), a domestic producer of washing machines. See 
Large Residential Washers from the Republic of Korea and Mexico; 
Antidumping and Countervailing Duty Petitions (collectively, ``the 
petitions''). On January 5, 2012, the Department issued questionnaires 
regarding the petitions to the petitioner. The petitioner responded to 
the Department's request for information in the First Supplement to the 
AD/CVD Petitions, dated January 9, 2012 (First Supplement to the AD/CVD 
Petitions). On January 9, 2012, the Department requested additional 
information from the petitioner. The petitioner responded to the 
Department's request for additional

[[Page 4008]]

information in the Second Supplement to the AD/CVD Petitions, dated 
January 11, 2012 (Second Supplement to the AD/CVD Petitions).
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (``the Act''), the petitioner alleges that imports of washing 
machines from Korea and Mexico are being, or are likely to be, sold in 
the United States at less than fair value, within the meaning of 
section 731 of the Act, and that such imports materially injure, or 
threaten material injury to, an industry in the United States.
    The Department finds that the petitioner filed these petitions on 
behalf of the domestic industry because the petitioner is an interested 
party as defined in section 771(9)(C) of the Act, and it has 
demonstrated sufficient industry support with respect to the 
investigations that it is requesting the Department to initiate (see 
``Determination of Industry Support for the Petitions'' below).

Scope of Investigations

    The products covered by these investigations are washing machines 
from Korea and Mexico. For a full description of the scope of the 
investigations, please see the ``Scope of the Investigations,'' in 
Appendix I of this notice.

Comments on Scope of Investigations

    During our review of the petitions, we discussed the scope with the 
petitioner to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Moreover, as 
discussed in the preamble to the regulations (See Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages all interested 
parties to submit such comments by February 8, 2012, 20 calendar days 
from the date of signature of this notice. All comments must be filed 
on the records of the Korea and Mexico antidumping duty investigations 
as well as the simultaneously initiated Korea countervailing duty 
investigation (C-580-869). All comments and submissions to the 
Department must be filed electronically using Import Administration's 
Antidumping Countervailing Duty Centralized Electronic Service System 
(IA ACCESS).\1\ An electronically filed document must be received 
successfully in its entirety by the Department's electronic records 
system, IA ACCESS, by the time and date noted above. Documents excepted 
from the electronic submission requirements must be filed manually 
(i.e., in paper form) with the Import Administration's APO/Dockets 
Unit, Room 1870, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230, and stamped with the date 
and time of receipt by the deadline noted above.
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    \1\ See https://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf for details of the Department's Electronic Filing 
Requirements, which went into effect on August 5, 2011. Information 
on help using IAACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for Antidumping Duty Questionnaires

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of washing machines to be reported 
in response to the Department's antidumping questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to more accurately report the 
relevant costs of production, as well as to develop appropriate product 
comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as (1) general product 
characteristics and (2) the product comparison criteria. We note that 
it is not always appropriate to use all product characteristics as 
product comparison criteria. We base product comparison criteria on 
meaningful commercial differences among products. In other words, while 
there may be some physical product characteristics utilized by 
manufacturers to describe washing machines, it may be that only a 
select few product characteristics take into account commercially 
meaningful physical characteristics. In addition, interested parties 
may comment on the order in which the physical characteristics should 
be used in product matching. Generally, the Department attempts to list 
the most important physical characteristics first and the least 
important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaires, we must 
receive comments at the above-referenced address by February 8, 2012. 
Additionally, rebuttal comments must be received by February 15, 2012. 
All comments must be filed on the records of both the Korea and Mexico 
antidumping duty investigations. All comments and submissions to the 
Department must be filed electronically using IA ACCESS, as referenced 
above.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the industry.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (``ITC''), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (see section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp., Ltd. v. United 
States, 688 F. Supp. 639, 644

[[Page 4009]]

(CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of domestic like product distinct from the scope of 
the investigations. Based on our analysis of the information submitted 
on the record, we have determined that washing machines constitute a 
single domestic like product and we have analyzed industry support in 
terms of that domestic like product. For a discussion of the domestic 
like product analysis in this case, see Antidumping Duty Investigation 
Initiation Checklist: Large Residential Washers from the Republic of 
Korea (``Korea AD Initiation Checklist'') and Antidumping Duty 
Investigation Initiation Checklist: Large Residential Washers from 
Mexico (``Mexico AD Initiation Checklist''), at Attachment II, Analysis 
of Industry Support for the Petitions Covering Large Residential 
Washers, on file electronically via IA ACCESS in the Central Records 
Unit, Room 7046, of the main Department of Commerce building.
    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the petitions with reference to the domestic like product 
as defined in the ``Scope of Investigations'' section above. To 
establish industry support, the petitioner provided its shipments of 
the domestic like product in 2010, and compared its shipments to the 
estimated total shipments of the domestic like product for the entire 
domestic industry. See Volume I of the petitions, at 10-14; Volume II 
of the petitions, at Exhibits 2-3, 5-8, and 9; First Supplement to the 
AD/CVD Petitions, at 4-8 and Exhibits A-C; and Second Supplement to the 
AD/CVD Petitions, at 4-5 and Exhibits Q-R. Because total industry 
production data for the domestic like product for 2010 is not 
reasonably available and the petitioner has established that shipments 
are a reasonable proxy for production data, we have relied upon the 
shipment data provided by the petitioner for purposes of measuring 
industry support. For further discussion, see Korea AD Initiation 
Checklist and Mexico AD Initiation Checklist, at Attachment II.
    Our review of the data provided in the petitions, supplemental 
submissions, and other information readily available to the Department 
indicates that the petitioner has established industry support. First, 
the petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, the Department is not required to 
take further action in order to evaluate industry support (e.g., 
polling). See section 732(c)(4)(D) of the Act, Korea AD Initiation 
Checklist, and Mexico AD Initiation Checklist, at Attachment II. 
Second, the domestic producers have met the statutory criteria for 
industry support under section 732(c)(4)(A)(i) of the Act because the 
domestic producers who support the petitions account for at least 25 
percent of the total production of the domestic like product. See Korea 
AD Initiation Checklist and Mexico AD Initiation Checklist, at 
Attachment II. Finally, the domestic producers have met the statutory 
criteria for industry support under section 732(c)(4)(A)(ii) of the Act 
because the domestic producers (or workers) who support the petitions 
account for more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petitions. Accordingly, the Department 
determines that the petitions were filed on behalf of the domestic 
industry within the meaning of section 732(b)(1) of the Act. See id.
    The Department finds that the petitioner filed the petitions on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(C) of the Act and it has demonstrated 
sufficient industry support with respect to the antidumping duty 
investigations that it is requesting the Department initiate. See id.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (``NV''). In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.
    The petitioner contends that the industry's injured condition is 
illustrated by reduced market share, reduced shipments, underselling 
and price depression or suppression, a decline in financial 
performance, lost sales and revenue, and an increase in the volume of 
imports and import penetration. See Volume I of the petitions, at 1-6 
and 156-181; Volume II of the petitions, at Exhibits 1-4, 9, 33-38, and 
49; and First Supplement to the AD/CVD Petitions at 8-13 and Exhibits 
C-L. We have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, and causation, and we have 
determined that these allegations are properly supported by information 
reasonably available to the petitioner and meet the statutory 
requirements for initiation. See Korea AD Initiation Checklist and 
Mexico AD Initiation Checklist, at Attachment III: Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Petitions Covering Large Residential Washers from the Republic of Korea 
and Mexico.

Period of Investigations

    The period of investigation (``POI'') is October 1, 2010, through 
September 30, 2011, for both Korea and Mexico. See 19 CFR 
351.204(b)(1).

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department has based its decision to 
initiate investigations with respect to Korea and Mexico. The sources 
of, and adjustments to, the data relating to U.S. price and NV are 
discussed in greater detail in the Korea AD Initiation Checklist and 
the Mexico AD Initiation Checklist.

Korea

U.S. Price
    The petitioner provided three U.S. prices based on average model-
specific retail prices obtained from a market survey database. These 
prices were adjusted to exclude the retailer markup, as well as 
discounts and rebates, based on the petitioner's experience in, and 
knowledge of, the market. Originally, the petitioner deducted 
international freight based on U.S. Customs and Border Protection 
(``CBP'') data from U.S price for both price-to-price comparisons and 
price-to-constructed value (CV) comparisons. It subsequently revised 
these comparisons to remove the deduction for international freight 
from U.S. price. However, because it is more accurate for price-to-
price comparisons to deduct international freight expenses from the 
U.S. price, we revised the price-to-price margin calculations to deduct 
international freight. See Korea AD Initiation Checklist.

[[Page 4010]]

Normal Value

    The petitioner provided three home market prices based on a survey 
of retail prices in Korea. These prices were adjusted to exclude the 
retailer markup, as well as discounts and rebates, based on the 
petitioner's experience in, and knowledge of, the market. The 
petitioner further adjusted home market price by deducting Korean 
valued added tax (``VAT'') and other taxes. It made no other 
adjustments to home market price. See Korea AD Initiation Checklist.

Mexico

U.S. Price
    The petitioner provided two U.S. prices based on average model-
specific retail prices obtained from a market survey database. These 
prices were adjusted to exclude the retailer markup, as well as 
discounts and rebates, based on the petitioner's experience in, and 
knowledge of, the market. Originally, the petitioner deducted 
international freight based on CBP data from U.S price for both price-
to-price comparisons and price-to-CV comparisons. It subsequently 
revised these comparisons to remove the deduction for international 
freight from U.S. price. However, because it is more accurate for 
price-to-price comparisons to deduct international freight expenses 
from the U.S. price, we revised the price-to-price margin calculations 
to deduct international freight. See Mexico AD Initiation Checklist.

Normal Value

    The petitioner provided two home market prices based on retail 
prices available in Mexico. These prices were adjusted to exclude the 
retailer markup, as well as discounts and rebates, based on the 
petitioner's experience in, and knowledge of, the market. The 
petitioner further adjusted home market price by deducting Mexican VAT. 
It made no other adjustments to home market price. See Mexico AD 
Initiation Checklist.

Sales-Below-Cost Allegations

    The petitioner provided information demonstrating reasonable 
grounds to believe or suspect that sales of large residential washing 
machines in the Korean and Mexican markets were made at prices below 
the fully-absorbed cost of production (``COP''), within the meaning of 
section 773(b) of the Act, and requested that the Department conduct a 
country-wide sales-below-cost investigation. The Statement of 
Administrative Action (``SAA''), submitted to the Congress in 
connection with the interpretation and application of the Uruguay Round 
Agreements Act, states that an allegation of sales below COP need not 
be specific to individual exporters or producers. See SAA, H.R. Doc. 
No. 103-316 at 833 (1994). The SAA states that ``Commerce will consider 
allegations of below-cost sales in the aggregate for a foreign country, 
just as Commerce currently considers allegations of sales at less than 
fair value on a country-wide basis for purposes of initiating an 
antidumping investigation.'' SAA at 833.
    Further, the SAA provides that section 773(b)(2)(A) of the Act 
retains the requirement that the Department have ``reasonable grounds 
to believe or suspect'' that below-cost sales have occurred before 
initiating such an investigation. Reasonable grounds exist when an 
interested party provides specific factual information on costs and 
prices, observed or constructed, indicating that sales in the foreign 
market in question are at below-cost prices. Id.

Korea

Cost of Production
    Pursuant to section 773(b)(3) of the Act, COP consists of the cost 
of manufacturing (``COM''); selling, general and administrative 
(``SG&A'') expenses; financial expenses; and packing expenses. The 
petitioner relied on its own production experience to calculate the raw 
material, packing, and freight costs included in the calculation of 
COM. The petitioner adjusted these inputs to account for known 
differences between U.S. and Korean prices and for differences in 
weights and technologies between the petitioner's washing machine 
models and those of the Korean producers' washing machine models sold 
in the comparison market and the United States. Inbound freight costs 
associated with procuring material inputs were calculated based on the 
petitioner's own experience adjusted for differences in weight between 
the washing machine models used to calculate COP/CV and the Korean 
models.
    The petitioner relied on its own labor costs, adjusted for known 
differences between the U.S. and Korean hourly compensation rates for 
electrical equipment, appliance, and component manufacturing in 2007, 
as reported by the U.S. Bureau of Labor Statistics. The petitioner 
relied on its own experience to determine the per-unit factory overhead 
costs (exclusive of labor) associated with the production of washing 
machines.
    The petitioner stated that the washing machine manufacturing 
processes in Korea are very similar to its own manufacturing processes, 
and therefore it is reasonable to estimate the Korean producers' usage 
rates based on the usage rates experienced by a U.S. washing machine 
producer. See Volume I of the petitions, at 21.
    To determine SG&A expense rates, the petitioner relied on the 
fiscal year (FY) 2010 unconsolidated financial statements of two Korean 
producers of washing machines. The petitioner relied on the FY 2010 
consolidated financial statements of the same two Korean producers of 
washing machines to determine the financial expense rates. See Korean 
Initiation Checklist for further discussion.
    Based upon a comparison of the prices of the foreign like product 
in the home market to the calculated COP of the most comparable 
product, we find reasonable grounds to believe or suspect that sales of 
the foreign like product were made below the COP, within the meaning of 
section 773(b)(2)(A)(i) of the Act. Accordingly, the Department is 
initiating a country-wide cost investigation.

Normal Value Based on Constructed Value

    Because it alleged sales below cost, pursuant to sections 
773(a)(4), 773(b) and 773(e) of the Act, the petitioner calculated NV 
based on CV. The petitioner calculated CV using the same average COM, 
SG&A, financial expense, and packing figures used to compute the COP. 
The petitioner relied on the same 2010 unconsolidated financial 
statements used as the basis for the SG&A rates to calculate profit 
rates. Because one of the producers did not incur a profit, the 
petitioner did not include profit in the calculation of CV for that 
producer's washing machine model. We revised petitioner's calculation 
of the profit rate for the second Korean washing machine producer to 
exclude those income and expense items not included in the petitioner's 
calculation of that producer's COP. See Korean Initiation Checklist.

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of washing machines from Korea are being, or are 
likely to be, sold in the United States at less than fair value. Based 
on a comparison of U.S. price to home-market price, as discussed above, 
the estimated dumping margins range from 31.03 percent to 77.52 
percent. Based on a comparison of U.S. price to CV, as discussed above, 
the

[[Page 4011]]

estimated dumping margins are 63.38 percent and 82.41 percent. See id.

Mexico

Cost of Production
    Pursuant to section 773(b)(3) of the Act, COP consists of COM; SG&A 
expenses; financial expenses; and packing expenses. The petitioner 
relied on its own production experience to calculate the raw material, 
packing, and freight costs included in the calculation of COM. The 
petitioner adjusted these inputs to account for known differences 
between U.S. and Mexican prices and for differences in weights and 
technologies between the petitioner's U.S. washing machine models and 
those of the Mexican producers' washing machine models sold in the 
comparison market and the United States. Inbound freight costs 
associated with procuring material inputs were calculated based on the 
petitioner's own experience adjusted for differences in weight between 
the washing machine models used to calculate COP/CV and the Mexican 
models.
    The petitioner relied on its own labor costs, adjusted for known 
differences between the U.S. and Mexican hourly compensation rates for 
electrical equipment, appliance, and component manufacturing in 2007, 
as reported by the U.S. Bureau of Labor Statistics. The petitioner 
relied on its own experience to determine the per-unit factory overhead 
costs (exclusive of labor) associated with the production of washing 
machines.
    The petitioner stated that the washing machine manufacturing 
processes in Mexico are very similar to its own manufacturing 
processes, and therefore it is reasonable to estimate the Mexican 
producers' usage rates based on the usage rates experienced by a U.S. 
washing machine producer. See Volume I of the petition, at 21.
    To determine SG&A expense rates, the petitioner relied on the FY 
2010 unconsolidated financial statements of a Mexican producer of 
washing machines. The petitioner relied on the FY 2010 unconsolidated 
financial statements of the same producer of washing machines to 
determine the financial expense rate. Consistent with Department 
practice, we revised the petitioner's calculation of the financial 
expense rate to reflect the FY 2010 consolidated financial statements 
of the Mexican producer's parent company. See Mexican Initiation 
Checklist for further discussion.
    Based upon a comparison of the prices of the foreign like product 
in the home market to the calculated COP of the most comparable 
product, we find reasonable grounds to believe or suspect that sales of 
the foreign like product were made below the COP, within the meaning of 
section 773(b)(2)(A)(i) of the Act. Accordingly, the Department is 
initiating a country-wide cost investigation.

Normal Value Based on Constructed Value

    Because it alleged sales below cost, pursuant to sections 
773(a)(4), 773(b) and 773(e) of the Act, the petitioner calculated NV 
based on CV. The petitioner calculated CV using the same average COM, 
SG&A, financial expense, and packing figures used to compute the COP. 
As discussed above, we revised the financial expenses included in the 
petitioner's calculation of CV to reflect the financial expenses based 
on the FY 2010 consolidated financial statements of the Mexican 
producer's parent company. Because the producer did not incur a profit, 
the petitioner did not include profit in the calculation of CV.

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of washing machines from Mexico are being, or are 
likely to be, sold in the United States at less than fair value. Based 
on a comparison of U.S. price to home market price, as discussed above, 
the estimated dumping margins are 27.21 percent and 58.62 percent. 
Based on a comparison of U.S. price to CV, as discussed above, the 
estimated dumping margins are 62.64 percent and 72.41 percent. See id.

Initiation of Antidumping Investigations

    Based upon the examination of the petitions on washing machines 
from Korea and Mexico and other information reasonably available to the 
Department, the Department finds that these petitions meet the 
requirements of section 732 of the Act. Therefore, we are initiating 
antidumping duty investigations to determine whether imports of washing 
machines from Korea and Mexico are being, or are likely to be, sold in 
the United States at less than fair value. In accordance with section 
733(b)(1)(A) of the Act, unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Targeted Dumping Allegations

    On December 10, 2008, the Department issued an interim final rule 
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the 
regulatory provisions governing the targeted dumping analysis in 
antidumping duty investigations, and the corresponding regulation 
governing the deadline for targeted-dumping allegations, 19 CFR 
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing 
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930 
(December 10, 2008). The Department stated that ``{w{time} ithdrawal 
will allow the Department to exercise the discretion intended by the 
statute and, thereby, develop a practice that will allow interested 
parties to pursue all statutory avenues of relief in this area.'' See 
id., 73 at 74931.
    In order to accomplish this objective, if any interested party 
wishes to make a targeted dumping allegation in any of these 
investigations pursuant to section 777A(d)(1)(B) of the Act, such 
allegations are due no later than 45 days before the scheduled date of 
the country-specific preliminary determination.

Respondent Selection

Korea

    The petition identifies three Korean producers that export washing 
machines to the United States: Samsung Electronics Co., Ltd. (Samsung), 
LG Electronics, Inc. (LG), and Daewoo Electronics Corporation (Daewoo). 
There is no information indicating that there are other Korean 
producers/exporters of the subject merchandise. Accordingly, the 
Department is selecting Samsung, LG, and Daewoo as mandatory 
respondents in this investigation pursuant to section 777A(e)(1) of the 
Act. Interested parties may submit comments regarding respondent 
selection within five calendar days of publication of this notice. 
Comments should be filed electronically using IA ACCESS.

Mexico

    For this investigation, the Department intends to select 
respondents based on CBP data for U.S. imports under the Harmonized 
Tariff Schedule of the United States (``HTSUS'') number 8450.20.0090. 
We intend to release the CBP data under Administrative Protective Order 
(``APO'') to all parties with access to information protected by APO 
within five days of publication of this Federal Register notice and 
make our decision regarding respondent selection within 20 days of 
publication of this notice. The Department invites comments regarding 
the CBP data and respondent selection within ten days of publication of 
this Federal Register notice.

[[Page 4012]]

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Instructions for filing such 
applications may be found on the Department's Web site at https://ia.ita.doc.gov/apo.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the petitions and 
amendments thereto have been provided to the representatives of the 
Governments of Korea and Mexico. To the extent practicable, we will 
attempt to provide a copy of the public version of the petitions to 
each exporter named in the petition, as provided under 19 CFR 
351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the petitions were filed, whether there is a reasonable 
indication that imports of washing machines from Korea and Mexico 
materially injure, or threaten material injury to, a U.S. industry. A 
negative ITC determination with respect to either country would result 
in the termination of the investigation with respect to that country; 
see section 703(a)(1) of the Act. Otherwise, these investigations will 
proceed according to statutory and regulatory time limits.

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective orders in accordance with 19 CFR 351.305. On 
January 22, 2008, the Department published Antidumping and 
Countervailing Duty Proceedings: Documents Submission Procedures; APO 
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to 
participate in these investigations should ensure that they meet the 
requirements of these procedures (e.g., the filing of letters of 
appearance as discussed at 19 CFR 351.103(d)).
    Any party submitting factual information in an AD/CVD proceeding 
must certify to the accuracy and completeness of that information. See 
section 782(b) of the Act. Parties are hereby reminded that revised 
certification requirements are in effect for company/government 
officials as well as their representatives in all segments of any AD/
CVD proceedings initiated on or after March 14, 2011. See Certification 
of Factual Information to Import Administration During Antidumping and 
Countervailing Duty Proceedings: Interim Final Rule, 76 FR 7491 
(February 10, 2011) (Interim Final Rule) amending 19 CFR 351.303(g)(1) 
and (2). The formats for the revised certifications are provided at the 
end of the Interim Final Rule. The Department intends to reject factual 
submissions in any proceeding segments initiated on or after March 14, 
2011, if the submitting party does not comply with the revised 
certification requirements.
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c).

    Dated: January 19, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I--Scope of the Investigations

    The products covered by these investigations are all large 
residential washers and certain subassemblies thereof from Korea and 
Mexico.
    For purposes of these investigations, the term ``large residential 
washers'' denotes all automatic clothes washing machines, regardless of 
the orientation of the rotational axis, 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 
\2\ designed for use in large residential washers which incorporate, at 
a minimum: (a) a tub; and (b) a seal; (3) all assembled baskets \3\ 
designed for use in large residential washers which incorporate, at a 
minimum: (a) A side wrapper;\4\ (b) a base; and (c) a drive hub;\5\ and 
(4) any combination of the foregoing subassemblies.
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    \2\ A ``tub'' is the part of the washer designed to hold water.
    \3\ A ``basket'' (sometimes referred to as a ``drum'') is the 
part of the washer designed to hold clothing or other fabrics.
    \4\ A ``side wrapper'' is the cylindrical part of the basket 
that actually holds the clothing or other fabrics.
    \5\ 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;\6\ (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;\7\ or
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    \6\ ``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.
    \7\ 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,\8\ 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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    \8\ ``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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    The products subject to these investigations are currently 
classifiable under subheading 8450.20.0090 of the Harmonized Tariff 
System of the United States (HTSUS). Products subject to these 
investigations 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

[[Page 4013]]

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merchandise subject to this scope is dispositive.

[FR Doc. 2012-1679 Filed 1-25-12; 8:45 am]
BILLING CODE 3510-DS-P