Large Residential Washers From the Republic of Korea: Final Affirmative Countervailing Duty Determination, 75975-75978 [2012-31078]
Download as PDF
<![CDATA[
Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices
June 4, 2012, the date of the publication
of the Preliminary Determination in the
Federal Register. Subsequently, as a
result of our Preliminary Critical
Circumstances Determination,9 we
instructed CBP to suspend liquidation
of all entries of subject merchandise
from ‘‘all other’’ exporters of garment
hangers from Vietnam which were
entered or withdrawn from warehouse,
for consumption on or after March 6,
2012, which is 90 days prior to the date
of publication in the Federal Register of
the Preliminary Determination.
In accordance with section 703(d) of
the Act, we issued instructions to CBP
to discontinue the suspension of
liquidation for CVD purposes for subject
merchandise entered, or withdrawn
from warehouse, on or after October 2,
2012, but to continue the suspension of
liquidation of all entries from June 4,
2012, through October 1, 2012.
If the International Trade Commission
(ITC) issues a final affirmative injury
determination, we will issue a CVD
order and reinstate the suspension of
liquidation under section 706(a) of the
Act and will require a cash deposit of
estimated CVDs for such entries of
merchandise in the amounts indicated
above. If the ITC determines that
material injury, or threat of material
injury, does not exist, this proceeding
will be terminated and all estimated
duties deposited or securities posted as
a result of the suspension of liquidation
will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
ITC confirms that it will not disclose
such information, either publicly or
under an administrative protective order
(APO), without the written consent of
the Assistant Secretary for Import
Administration.
tkelley on DSK3SPTVN1PROD with
Return or Destruction of Proprietary
Information
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
9 See Steel Wire Garment Hangers from the
Socialist Republic of Vietnam: Preliminary
Affirmative Determination of Critical
Circumstances, 77 FR 73430 (December 10, 2012)
(Preliminary Critical Circumstances Determination).
VerDate Mar<15>2010
06:31 Dec 22, 2012
Jkt 229001
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
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 which is subject to
sanction.
This determination is published
pursuant to sections 705(d) and 777(i) of
the Act.
Dated: December 17, 2012.
Paul Piquado,
Assistant Secretary for Import
Administration.
APPENDIX
List of Comments and Issues in the Decision
Memorandum
Comment 1: Whether the Department Should
Assign a Rate Based on Total Adverse
Facts Available to the Infinite Companies
Comment 2: Whether Land Leased by SEA
Hamcio Provided Countervailable
Benefits to Hamico Companies
Comment 3: Whether Unpaid Annual Rent
on Land Leased by SEA Hamico and
Used by Linh Sa Provided
Countervailable Benefits to the Hamico
Companies
Comment 4: Whether Export Loans from
VietinBank Provide a Government
Financial Contribution
Comment 5: Whether Import Duty Exemption
or Reimbursements for Raw Materials are
Countervailable
Comment 6: Whether the Department Should
Find the Newly Discovered Interest
Support Program Countervailable
[FR Doc. 2012–30948 Filed 12–21–12; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–869]
Large Residential Washers From the
Republic of Korea: Final Affirmative
Countervailing Duty Determination
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) determines that
countervailable subsidies are being
provided to producers and exporters of
large residential washers (washing
machines) from the Republic of Korea
(Korea). For information on the
estimated subsidy rates, see the
‘‘Suspension of Liquidation’’ section of
this notice.
DATES: Effective December 26, 2012.
FOR FURTHER INFORMATION CONTACT:
Justin M. Neuman or Milton Koch, AD/
CVD Operations, Office 6, Import
AGENCY:
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
75975
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–0486 and (202)
482–2584, respectively.
SUPPLEMENTARY INFORMATION:
Background
The U.S. producer that filed the
petition for this investigation is
Whirlpool Corporation (hereafter,
Whirlpool, or ‘‘petitioner’’). The
mandatory respondents in this
investigation are: (1) Samsung
Electronics Co., Ltd., and its crossowned affiliates Samsung Electronics
Service and Samsung Electronics
Logitech (collectively, Samsung); (2) LG
Electronics and its cross-owned affiliate,
ServeOne Co., Ltd. (ServeOne)
(collectively, LG); and (3) Daewoo
Electronics Corporation (Daewoo).
Period of Investigation
The period of investigation for which
we are measuring subsidies is January 1,
2011, through December 31, 2011.
Case History
The following events have occurred
since the Department published the
Preliminary Determination.1 From May
through September 2012, the
Department issued several supplemental
questionnaires to participating
respondents. Those parties timely
responded to the Department’s
supplemental questionnaires. In
addition, on August 6, 2012, the
Department published the Scope
Amendment.2
On September 7, 11, and 13, the
Department issued verification outlines
to the Government of Korea (GOK), LG,
and Samsung, respectively. The
Department conducted verification from
September 17, 2012, through September
27, 2012. On October 22, 2012, the
Department issued verification reports
for the GOK, Samsung, and LG. On
October 31, 2012, the GOK filed its case
brief. LG and Samsung filed case briefs
on November 2, 2012. On November 7,
2012, the petitioner filed a rebuttal brief.
The Department held a public hearing
on November 17, 2012, based on the
timely requests of the petitioner,
Samsung, and LG.
1 See Large Residential Washers From the
Republic of Korea: Preliminary Affirmative
Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping
Determination, 77 FR 33181 (June 5, 2012)
(Preliminary Determination).
2 Large Residential Washers From the Republic of
Korea: Amendment to the Scope of the
Countervailing Duty Investigation, 77 FR 46715
(August 6, 2012) (Scope Amendment).
E:\FR\FM\26DEN1.SGM
26DEN1
75976
Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices
As explained in the Memorandum
from the Assistant Secretary for Import
Administration, the Department has
exercised its discretion to toll deadlines
for the duration of the closure of the
Federal Government from October 29,
through October 30, 2012. Thus, all
deadlines in this segment of the
proceeding have been extended by two
days. The revised deadline for this final
countervailing duty (CVD)
determination is December 18, 2012.3
Scope Comments
In the Preliminary Determination, the
Department stated that it was evaluating
comments filed by the parties regarding
the scope in the companion
antidumping duty investigation. That
analysis was placed on the record of this
investigation in the Scope Amendment,
in which we modified the description of
the scope of the investigations in the
manner requested by the petitioner to
exclude top-load washing machines
with a vertical rotational axis and a
rated capacity of less than 3.70 cubic
feet. On July 25, 2012, LG requested a
modification to the scope. The
petitioner filed its opposition to LG’s
request on August 27, 2012. We did not
modify the scope as requested by LG for
purposes of this final determination.4 In
the briefs filed by parties, LG and the
petitioner commented on the Scope
Amendment and LG’s request to alter
the scope of the investigation.
tkelley on DSK3SPTVN1PROD with
Scope of the Investigation
The products covered by this
investigation are all large residential
washers and certain subassemblies
thereof.
For purposes of this investigation, 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,
3 See Memorandum to the Record from Paul
Piquado, Assistant Secretary for Import
Administration, regarding ‘‘Tolling of
Administrative Deadlines As a Result of the
Government Closure During Hurricane Sandy’’’
(October 31, 2012).
4 See accompanying Memorandum to Paul
Piquado, Assistant Secretary for Import
Administration, Issues and Decision Memorandum
for the Final Determination in the Countervailing
Duty Investigation of Large Residential Washers
from the Republic of Korea (Decision
Memorandum) at Comment 2.
VerDate Mar<15>2010
06:31 Dec 22, 2012
Jkt 229001
at a minimum: (a) At least three of the
six cabinet surfaces; and (b) a bracket;
(2) all assembled tubs5 designed for use
in large residential washers which
incorporate, at a minimum: (a) a tub;
and (b) a seal; (3) all assembled baskets 6
designed for use in large residential
washers which incorporate, at a
minimum: (a) a side wrapper;7 (b) a
base; and (c) a drive hub; 8 and (4) any
combination of the foregoing
subassemblies.
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; 9 (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; 10 or
(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,11 the
5 A ‘‘tub’’ is the part of the washer designed to
hold water.
6 A ‘‘basket’’ (sometimes referred to as a ‘‘drum’’)
is the part of the washer designed to hold clothing
or other fabrics.
7 A ‘‘side wrapper’’ is the cylindrical part of the
basket that actually holds the clothing or other
fabrics.
8 A ‘‘drive hub’’ is the hub at the center of the
base that bears the load from the motor.
9 ‘‘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.
10 A ‘‘security fastener’’ is a screw with a nonstandard 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.
11 ‘‘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).
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
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 3.70 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
investigation are currently classifiable
under subheading 450.20.0090 of the
Harmonized Tariff System of the United
States (HTSUS). Products subject 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
convenience and customs purposes, the
written description of the merchandise
subject to this scope is dispositive.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Decision Memorandum, which is hereby
adopted by this notice. A list of the
subsidy programs and the issues that
parties raised and to which we
responded in the Decision
Memorandum is attached to this notice
as an Appendix. The Decision
Memorandum is a public document and
is on file electronically via Import
Administration’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (IA ACCESS).
IA ACCESS is available to registered
users at https://iaaccess.trade.gov and in
the Central Records Unit, room 7046 of
the main Department of Commerce
building. In addition, a complete
version of the Decision Memorandum is
also accessible on the Web at https://
www.trade.gov/ia/. The signed Decision
Memorandum and the electronic
versions of the Decision Memorandum
are identical in content.
E:\FR\FM\26DEN1.SGM
26DEN1
Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices
Use of Facts Otherwise Available,
Including Adverse Inferences
For purposes of this final
determination, we have continued to
rely on facts available and have
continued to apply adverse inferences
in accordance with sections 776(a) and
(b) of the Tariff Act of 1930, as amended
(Act), to determine the countervailable
subsidy rate for one respondent,
Daewoo. A full discussion of our
decision to apply adverse facts available
(AFA) is presented in the Decision
Memorandum in the section
‘‘Application of Facts Available,
Including the Application of Adverse
Inferences.’’
Suspension of Liquidation
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we have
calculated an individual countervailable
subsidy rate for each respondent.
Section 705(c)(5)(A)(i) of the Act states
that for companies not individually
investigated, we will determine an allothers rate equal to the weighted
average of the countervailable subsidy
rates established for exporters and
producers individually investigated,
excluding any zero and de minimis
countervailable subsidy rates, and any
rates based entirely on AFA under
section 776 of the Act.
In this investigation, the only non-de
minimis rate not based entirely on AFA
is the rate calculated for Samsung.
Consequently, the rate calculated for
Samsung is also assigned as the ‘‘allothers’’ rate. For Daewoo, which did not
participate in this investigation, we
have determined the subsidy rate based
solely on AFA, in accordance with
sections 776(a) and (b) of the Act.12
Therefore, we determine the total
estimated net countervailable subsidy
rates to be:
Company
Ad valorem
net subsidy
rate
subject merchandise from Korea, other
than those produced/exported by LG,
which received a de minimis
countervailable subsidy rate in the
Preliminary Determination, entered or
withdrawn from warehouse, for
consumption on or after June 5, 2012,
the date of the publication of the
Preliminary Determination in the
Federal Register. In accordance with
section 703(d) of the Act, we
subsequently issued instructions to CBP
to discontinue the suspension of
liquidation for CVD purposes for subject
merchandise entered, or withdrawn
from warehouse, on or after October 3,
2012, but to continue the suspension of
liquidation of all entries from June 5,
2012, through October 2, 2012.
If the ITC issues a final affirmative
injury determination, we will issue a
CVD order and reinstate the suspension
of liquidation, and we will require a
cash deposit for such entries of
merchandise in the amounts indicated
above. If the ITC determines that
material injury, or threat of material
injury, does not exist, this proceeding
will be terminated and all estimated
duties deposited or securities posted as
a result of the suspension of liquidation
will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information relating to this
investigation. We will allow the ITC
access to all privileged and business
proprietary information in our files,
provided the ITC confirms that it will
not disclose such information, either
publicly or under an administrative
protective order, without the written
consent of the Assistant Secretary for
Import Administration.
Return or Destruction of Proprietary
Information
In the event that the ITC issues a
negative final injury determination, this
72.30 percent notice serves as the only reminder to
0.01 percent parties subject to an administrative
protective order (APO) of their
1.85 percent responsibility concerning the
1.85 percent
destruction of proprietary information
disclosed under APO in accordance
As a result of our Preliminary
with 19 CFR 351.305(a)(3). Timely
Determination and pursuant to section
written notification of the return/
703(d) of the Act, we instructed U.S.
Customs and Border Protection (CBP) to destruction of APO materials or
conversion to judicial protective order is
suspend liquidation of all entries of
hereby requested. Failure to comply
with the regulations and terms of an
12 See the ‘‘Application of Facts Available,
APO is a violation which is subject to
Including the Application of Adverse Inferences’’
section of the Decision Memorandum.
sanction.
tkelley on DSK3SPTVN1PROD with
Daewoo Electronics Corporation ....................................
LG Electronics Inc. ...............
Samsung Electronics Co.,
Ltd. ....................................
All-Others ..............................
VerDate Mar<15>2010
06:31 Dec 22, 2012
Jkt 229001
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
75977
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act.
Dated: December 18, 2012.
Paul Piquado,
Assistant Secretary for Import
Administration.
Appendix
Subsidy Valuation Information
• Cross-Ownership and Attribution of
Subsidies
• Allocation Period
• Interest Rate Benchmarks For Loans
Application of Facts Available, Including the
Application of Adverse Inferences
Analysis of Programs
• Programs Determined To Be
Countervailable
o KDB and IBK Short-Term Discounted
Loans for Export Receivables
o Income Tax Programs
■ Research, Supply, or Workforce
Development Investment Tax Deductions
for ‘‘New Growth Engines’’ under RSTA
Article 10(1)(1)
■ Research, Supply, or Workforce
Development Expense Tax Deductions
for ‘‘Core Technologies’’ under RSTA
Article 10(1)(2)
■ Tax Reduction for Research and
Manpower Development: RSTA 10(1)(3)
■ RSTA Article 25(2) Tax Deductions for
Investments in Energy Economizing
Facilities
■ RSTA Article 26 Tax Deduction for
Facilities Investment
o Gwangju Metropolitan City Production
Facilities Subsidies: Tax Reductions/
Exemptions under Article 276 of the
Local Tax Act
o Grant Programs
■ GOK Subsidies for ‘‘Green Technology
R&D’’ and its Commercialization
■ GOK 21st Century Frontier R&D
Program/Information Display R&D
Center Program
■ Support for SME ‘‘Green Partnerships’’
■ Grants Discovered at Verification
• Program Determined To Be Not
Countervailable
o K–SURE—Short-term Export Credit
Insurance
• Programs Determined To Be Not
Used’’o Daewoo Restructuring
■ GOK-Directed Equity Infusions under
the Daewoo Workout
■ GOK-Directed Ongoing Preferential
Lending under the Daewoo Workout
o IBK Preferential Loans to Green
Enterprises
o KEXIM Export Factoring
o GOK Supplier Support Fund Tax
Deduction
Analysis of Comments
Comment 1: Scope Exclusion of Smaller TopLoad Washers
Comment 2: Request To Exclude LargerWidth Washers From the Scope
Comment 3: Whether Samsung’s Export
Receivables That Were Negotiated With
KDB and IBK Are Loans
E:\FR\FM\26DEN1.SGM
26DEN1
75978
Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices
Comment 4: Whether the Department Erred
in Selecting a Benchmark Interest Rate
To Measure the Benefit to Samsung
Under the KDB/IBK Loan Program
Comment 5: Whether Premiums Charged by
K–SURE Are Adequate to Cover the
Long-Term Operating Costs and Losses
of the Program
Comment 6: Whether RSTA Article 10(1)(3)
Is de Facto Specific
Comment 7: Whether Income Tax Credits
Should Be Attributed to Non-Subject
Merchandise
Comment 8: Whether RSTA Article 25(2) Is
de Facto Specific
Comment 9: Whether RSTA Article 26 is
Regionally Specific
Comment 10: Whether the Department
Should Offset Exempted Acquisition or
Registration Taxes by the Amount of
Special Rural Development Tax Paid
Comment 11: Whether the Green Technology
R&D Program Is Countervailable
Comment 12: Whether Grants Received by
Samsung under the ‘‘21st Century
Frontier and Other R&D Programs’’
Program Are Countervailable
Comment 13: Whether the Department
Should Adjust Samsung’s Total Sales
Denominator to Exclude Sales of
Services or Goods Manufactured Outside
of Korea
Comment 14: Whether the Department Erred
in Its Calculation of the Subsidy Rate for
LG’s Use of the ‘‘Green Technology
R&D’’ Program
Comment 15: Whether the Department Erred
in Finding That the ‘‘SME Green
Partnerships’’ Program Provides a
Benefit to LG
Comment 16: Whether the Department Erred
in Attributing Subsidies Received by
ServeOne to LG
Comment 17: Whether the Department
Should Continue To Find Other
Programs To Be Not Countervailable
Comment 18: Whether the Department
Should Countervail Other Grants
Received by Samsung That Were
Identified at Verification
[FR Doc. 2012–31078 Filed 12–21–12; 4:15 pm]
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–982]
Utility Scale Wind Towers From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) determines that
countervailable subsidies are being
provided to producers and exporters of
utility scale wind towers (wind towers)
from the People’s Republic of China (the
PRC). For information on the estimated
tkelley on DSK3SPTVN1PROD with
VerDate Mar<15>2010
07:31 Dec 22, 2012
Jkt 229001
FOR FURTHER INFORMATION CONTACT:
Kristen Johnson or Patricia Tran, AD/
CVD Operations, Office 8, Import
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue NW., Washington,
DC 20230; telephone: 202–482–4793
and 202–482–1503, respectively.
SUPPLEMENTARY INFORMATION:
Background
This investigation, which covers 54
programs, was initiated on January 18,
2012.1 The Petitioner in this
investigation is the Wind Tower Trade
Coalition.2 The respondents in this
investigation are: CS Wind China Co.,
Ltd. and its affiliates (collectively, CS
Wind) and Titan Wind Energy (Suzhou)
Co., Ltd. and its affiliates (collectively,
the Titan Companies).
Period of Investigation
The period of investigation for which
we are measuring subsidies is January 1,
2011, through December 31, 2011.
Case History
The events that have occurred since
the Department published the
Preliminary Determination 3 on June 6,
2012, are discussed in the Memorandum
to Paul Piquado, Assistant Secretary for
Import Administration, Issues and
Decision Memorandum for the Final
Determination in the Countervailing
Duty Investigation of Utility Scale Wind
Towers from the People’s Republic of
China (Decision Memorandum).4
Scope of the Investigation
The merchandise covered by this
investigation are certain wind towers,
whether or not tapered, and sections
thereof. Certain wind towers are
BILLING CODE 3510–DS–P
AGENCY:
subsidy rates, see the ‘‘Suspension of
Liquidation’’ section of this notice.
DATES: Effective Date: December 24,
2012.
1 See Utility Scale Wind Towers From the People’s
Republic of China: Initiation of Countervailing Duty
Investigation, 77 FR 3447 (January 24, 2012)
(Initiation Notice), and accompanying Initiation
Checklist.
2 The following companies compose the Wind
Tower Trade Coalition: Broadwind Towers, Inc.,
DMI Industries, Katana Summit LLC, and Trinity
Structural Towers, Inc.
3 See Utility Scale Wind Towers From the People’s
Republic of China: Preliminary Affirmative
Countervailing Duty Determination, 77 FR 33422
(June 6, 2012) (Preliminary Determination).
4 Public versions of all business proprietary
documents and all public documents are on file
electronically via Import Administration’s
Antidumping and Countervailing Duty Centralized
Electronic Service System (IA ACCESS). Access to
IA ACCESS is available to registered users at
https://iaaccess.trade.gov and in the Central Records
Unit (CRU), room 7046 of the main Department of
Commerce building.
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
designed to support the nacelle and
rotor blades in a wind turbine with a
minimum rated electrical power
generation capacity in excess of 100
kilowatts and with a minimum height of
50 meters measured from the base of the
tower to the bottom of the nacelle (i.e.,
where the top of the tower and nacelle
are joined) when fully assembled.
A wind tower section consists of, at
a minimum, multiple steel plates rolled
into cylindrical or conical shapes and
welded together (or otherwise attached)
to form a steel shell, regardless of
coating, end-finish, painting, treatment,
or method of manufacture, and with or
without flanges, doors, or internal or
external components (e.g., flooring/
decking, ladders, lifts, electrical buss
boxes, electrical cabling, conduit, cable
harness for nacelle generator, interior
lighting, tool and storage lockers)
attached to the wind tower section.
Several wind tower sections are
normally required to form a completed
wind tower.
Wind towers and sections thereof are
included within the scope whether or
not they are joined with non-subject
merchandise, such as nacelles or rotor
blades, and whether or not they have
internal or external components
attached to the subject merchandise.
Specifically excluded from the scope
are nacelles and rotor blades, regardless
of whether they are attached to the wind
tower. Also excluded are any internal or
external components which are not
attached to the wind towers or sections
thereof.
Merchandise covered by the
investigation is currently classified in
the Harmonized Tariff System of the
United States (HTSUS) under
subheadings 7308.20.0020 5 or
8502.31.0000.6 Prior to 2011,
merchandise covered by this
investigation was classified in the
HTSUS under subheading 7308.20.0000
and may continue to be to some degree.
While the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of the investigation is dispositive.
Scope Comments
In accordance with the preamble to
the Department’s regulations, we set
aside a period of time in our Initiation
Notice for parties to raise issues
regarding product coverage, and
encouraged all parties to submit
5 Wind towers are classified under HTSUS
7308.20.0020 when imported as a tower or tower
section(s) alone.
6 Wind towers may also be classified under
HTSUS 8502.31.0000 when imported as part of a
wind turbine (i.e., accompanying nacelles and/or
rotor blades).
E:\FR\FM\26DEN1.SGM
26DEN1
]]>Agencies
[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 75975-75978]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31078]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-869]
Large Residential Washers From the Republic of Korea: Final
Affirmative Countervailing Duty Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of large residential washers (washing machines) from the Republic of
Korea (Korea). For information on the estimated subsidy rates, see the
``Suspension of Liquidation'' section of this notice.
DATES: Effective December 26, 2012.
FOR FURTHER INFORMATION CONTACT: Justin M. Neuman or Milton Koch, AD/
CVD Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0486 and (202) 482-2584, respectively.
SUPPLEMENTARY INFORMATION:
Background
The U.S. producer that filed the petition for this investigation is
Whirlpool Corporation (hereafter, Whirlpool, or ``petitioner''). The
mandatory respondents in this investigation are: (1) Samsung
Electronics Co., Ltd., and its cross-owned affiliates Samsung
Electronics Service and Samsung Electronics Logitech (collectively,
Samsung); (2) LG Electronics and its cross-owned affiliate, ServeOne
Co., Ltd. (ServeOne) (collectively, LG); and (3) Daewoo Electronics
Corporation (Daewoo).
Period of Investigation
The period of investigation for which we are measuring subsidies is
January 1, 2011, through December 31, 2011.
Case History
The following events have occurred since the Department published
the Preliminary Determination.\1\ From May through September 2012, the
Department issued several supplemental questionnaires to participating
respondents. Those parties timely responded to the Department's
supplemental questionnaires. In addition, on August 6, 2012, the
Department published the Scope Amendment.\2\
---------------------------------------------------------------------------
\1\ See Large Residential Washers From the Republic of Korea:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping
Determination, 77 FR 33181 (June 5, 2012) (Preliminary
Determination).
\2\ Large Residential Washers From the Republic of Korea:
Amendment to the Scope of the Countervailing Duty Investigation, 77
FR 46715 (August 6, 2012) (Scope Amendment).
---------------------------------------------------------------------------
On September 7, 11, and 13, the Department issued verification
outlines to the Government of Korea (GOK), LG, and Samsung,
respectively. The Department conducted verification from September 17,
2012, through September 27, 2012. On October 22, 2012, the Department
issued verification reports for the GOK, Samsung, and LG. On October
31, 2012, the GOK filed its case brief. LG and Samsung filed case
briefs on November 2, 2012. On November 7, 2012, the petitioner filed a
rebuttal brief. The Department held a public hearing on November 17,
2012, based on the timely requests of the petitioner, Samsung, and LG.
[[Page 75976]]
As explained in the Memorandum from the Assistant Secretary for
Import Administration, the Department has exercised its discretion to
toll deadlines for the duration of the closure of the Federal
Government from October 29, through October 30, 2012. Thus, all
deadlines in this segment of the proceeding have been extended by two
days. The revised deadline for this final countervailing duty (CVD)
determination is December 18, 2012.\3\
---------------------------------------------------------------------------
\3\ See Memorandum to the Record from Paul Piquado, Assistant
Secretary for Import Administration, regarding ``Tolling of
Administrative Deadlines As a Result of the Government Closure
During Hurricane Sandy''' (October 31, 2012).
---------------------------------------------------------------------------
Scope Comments
In the Preliminary Determination, the Department stated that it was
evaluating comments filed by the parties regarding the scope in the
companion antidumping duty investigation. That analysis was placed on
the record of this investigation in the Scope Amendment, in which we
modified the description of the scope of the investigations in the
manner requested by the petitioner to exclude top-load washing machines
with a vertical rotational axis and a rated capacity of less than 3.70
cubic feet. On July 25, 2012, LG requested a modification to the scope.
The petitioner filed its opposition to LG's request on August 27, 2012.
We did not modify the scope as requested by LG for purposes of this
final determination.\4\ In the briefs filed by parties, LG and the
petitioner commented on the Scope Amendment and LG's request to alter
the scope of the investigation.
---------------------------------------------------------------------------
\4\ See accompanying Memorandum to Paul Piquado, Assistant
Secretary for Import Administration, Issues and Decision Memorandum
for the Final Determination in the Countervailing Duty Investigation
of Large Residential Washers from the Republic of Korea (Decision
Memorandum) at Comment 2.
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are all large
residential washers and certain subassemblies thereof.
For purposes of this investigation, 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\5\ designed for use in large residential washers which
incorporate, at a minimum: (a) a tub; and (b) a seal; (3) all assembled
baskets \6\ designed for use in large residential washers which
incorporate, at a minimum: (a) a side wrapper;\7\ (b) a base; and (c) a
drive hub; \8\ and (4) any combination of the foregoing subassemblies.
---------------------------------------------------------------------------
\5\ A ``tub'' is the part of the washer designed to hold water.
\6\ A ``basket'' (sometimes referred to as a ``drum'') is the
part of the washer designed to hold clothing or other fabrics.
\7\ A ``side wrapper'' is the cylindrical part of the basket
that actually holds the clothing or other fabrics.
\8\ 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; \9\ (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; \10\ or
---------------------------------------------------------------------------
\9\ ``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.
\10\ 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.
---------------------------------------------------------------------------
(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,\11\ 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.
---------------------------------------------------------------------------
\11\ ``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).
---------------------------------------------------------------------------
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 Sec. 429.12 and 10 CFR Sec. 429.20, and in accordance with the
test procedures established in 10 CFR Part 430.
The products subject to this investigation are currently
classifiable under subheading 450.20.0090 of the Harmonized Tariff
System of the United States (HTSUS). Products subject 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 convenience and customs purposes, the
written description of the merchandise subject to this scope is
dispositive.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Decision Memorandum, which is hereby adopted by this
notice. A list of the subsidy programs and the issues that parties
raised and to which we responded in the Decision Memorandum is attached
to this notice as an Appendix. The Decision Memorandum is a public
document and is on file electronically via Import Administration's
Antidumping and Countervailing Duty Centralized Electronic Service
System (IA ACCESS). IA ACCESS is available to registered users at
https://iaaccess.trade.gov and in the Central Records Unit, room 7046 of
the main Department of Commerce building. In addition, a complete
version of the Decision Memorandum is also accessible on the Web at
https://www.trade.gov/ia/. The signed Decision Memorandum and the
electronic versions of the Decision Memorandum are identical in
content.
[[Page 75977]]
Use of Facts Otherwise Available, Including Adverse Inferences
For purposes of this final determination, we have continued to rely
on facts available and have continued to apply adverse inferences in
accordance with sections 776(a) and (b) of the Tariff Act of 1930, as
amended (Act), to determine the countervailable subsidy rate for one
respondent, Daewoo. A full discussion of our decision to apply adverse
facts available (AFA) is presented in the Decision Memorandum in the
section ``Application of Facts Available, Including the Application of
Adverse Inferences.''
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated an individual countervailable subsidy rate for each
respondent. Section 705(c)(5)(A)(i) of the Act states that for
companies not individually investigated, we will determine an all-
others rate equal to the weighted average of the countervailable
subsidy rates established for exporters and producers individually
investigated, excluding any zero and de minimis countervailable subsidy
rates, and any rates based entirely on AFA under section 776 of the
Act.
In this investigation, the only non-de minimis rate not based
entirely on AFA is the rate calculated for Samsung. Consequently, the
rate calculated for Samsung is also assigned as the ``all-others''
rate. For Daewoo, which did not participate in this investigation, we
have determined the subsidy rate based solely on AFA, in accordance
with sections 776(a) and (b) of the Act.\12\ Therefore, we determine
the total estimated net countervailable subsidy rates to be:
---------------------------------------------------------------------------
\12\ See the ``Application of Facts Available, Including the
Application of Adverse Inferences'' section of the Decision
Memorandum.
------------------------------------------------------------------------
Ad valorem net
Company subsidy rate
------------------------------------------------------------------------
Daewoo Electronics Corporation.......................... 72.30 percent
LG Electronics Inc...................................... 0.01 percent
Samsung Electronics Co., Ltd............................ 1.85 percent
All-Others.............................................. 1.85 percent
------------------------------------------------------------------------
As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of subject
merchandise from Korea, other than those produced/exported by LG, which
received a de minimis countervailable subsidy rate in the Preliminary
Determination, entered or withdrawn from warehouse, for consumption on
or after June 5, 2012, the date of the publication of the Preliminary
Determination in the Federal Register. In accordance with section
703(d) of the Act, we subsequently issued instructions to CBP to
discontinue the suspension of liquidation for CVD purposes for subject
merchandise entered, or withdrawn from warehouse, on or after October
3, 2012, but to continue the suspension of liquidation of all entries
from June 5, 2012, through October 2, 2012.
If the ITC issues a final affirmative injury determination, we will
issue a CVD order and reinstate the suspension of liquidation, and we
will require a cash deposit for such entries of merchandise in the
amounts indicated above. If the ITC determines that material injury, or
threat of material injury, does not exist, this proceeding will be
terminated and all estimated duties deposited or securities posted as a
result of the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information relating to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order, without the written consent
of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a negative final injury
determination, this notice serves as the only reminder to parties
subject to an administrative protective order (APO) of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/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 which is
subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: December 18, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix
Subsidy Valuation Information
Cross-Ownership and Attribution of Subsidies
Allocation Period
Interest Rate Benchmarks For Loans
Application of Facts Available, Including the Application of Adverse
Inferences
Analysis of Programs
Programs Determined To Be Countervailable
o KDB and IBK Short-Term Discounted Loans for Export Receivables
o Income Tax Programs
[squf] Research, Supply, or Workforce Development Investment Tax
Deductions for ``New Growth Engines'' under RSTA Article 10(1)(1)
[squf] Research, Supply, or Workforce Development Expense Tax
Deductions for ``Core Technologies'' under RSTA Article 10(1)(2)
[squf] Tax Reduction for Research and Manpower Development: RSTA
10(1)(3)
[squf] RSTA Article 25(2) Tax Deductions for Investments in
Energy Economizing Facilities
[squf] RSTA Article 26 Tax Deduction for Facilities Investment
o Gwangju Metropolitan City Production Facilities Subsidies: Tax
Reductions/Exemptions under Article 276 of the Local Tax Act
o Grant Programs
[squf] GOK Subsidies for ``Green Technology R&D'' and its
Commercialization
[squf] GOK 21st Century Frontier R&D Program/Information Display
R&D Center Program
[squf] Support for SME ``Green Partnerships''
[squf] Grants Discovered at Verification
Program Determined To Be Not Countervailable
o K-SURE--Short-term Export Credit Insurance
Programs Determined To Be Not Used''o Daewoo Restructuring
[squf] GOK-Directed Equity Infusions under the Daewoo Workout
[squf] GOK-Directed Ongoing Preferential Lending under the
Daewoo Workout
o IBK Preferential Loans to Green Enterprises
o KEXIM Export Factoring
o GOK Supplier Support Fund Tax Deduction
Analysis of Comments
Comment 1: Scope Exclusion of Smaller Top-Load Washers
Comment 2: Request To Exclude Larger-Width Washers From the Scope
Comment 3: Whether Samsung's Export Receivables That Were Negotiated
With KDB and IBK Are Loans
[[Page 75978]]
Comment 4: Whether the Department Erred in Selecting a Benchmark
Interest Rate To Measure the Benefit to Samsung Under the KDB/IBK
Loan Program
Comment 5: Whether Premiums Charged by K-SURE Are Adequate to Cover
the Long-Term Operating Costs and Losses of the Program
Comment 6: Whether RSTA Article 10(1)(3) Is de Facto Specific
Comment 7: Whether Income Tax Credits Should Be Attributed to Non-
Subject Merchandise
Comment 8: Whether RSTA Article 25(2) Is de Facto Specific
Comment 9: Whether RSTA Article 26 is Regionally Specific
Comment 10: Whether the Department Should Offset Exempted
Acquisition or Registration Taxes by the Amount of Special Rural
Development Tax Paid
Comment 11: Whether the Green Technology R&D Program Is
Countervailable
Comment 12: Whether Grants Received by Samsung under the ``21st
Century Frontier and Other R&D Programs'' Program Are
Countervailable
Comment 13: Whether the Department Should Adjust Samsung's Total
Sales Denominator to Exclude Sales of Services or Goods Manufactured
Outside of Korea
Comment 14: Whether the Department Erred in Its Calculation of the
Subsidy Rate for LG's Use of the ``Green Technology R&D'' Program
Comment 15: Whether the Department Erred in Finding That the ``SME
Green Partnerships'' Program Provides a Benefit to LG
Comment 16: Whether the Department Erred in Attributing Subsidies
Received by ServeOne to LG
Comment 17: Whether the Department Should Continue To Find Other
Programs To Be Not Countervailable
Comment 18: Whether the Department Should Countervail Other Grants
Received by Samsung That Were Identified at Verification
[FR Doc. 2012-31078 Filed 12-21-12; 4:15 pm]
BILLING CODE 3510-DS-P
