Large Residential Washers From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation, 1398-1403 [2016-00473]

Download as PDF 1398 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices average dumping margin assigned above in the final results of review. For entries that were not reported in the U.S. sales database submitted by an exporter individually examined during this review, the Department will instruct CBP to liquidate such entries at the PRC-wide rate. Additionally, if the Department determines that an exporter under review had no shipments of the subject merchandise, any suspended entries that entered under that exporter’s case number will be liquidated at the PRC-wide rate (i.e., 92.84 percent).10 Cash Deposit Requirements The following cash deposit requirements will be effective upon publication of the final results of this administrative review for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date, as provided for by section 751(a)(2)(C) of the Act: (1) For the exporters listed above, the cash deposit rate will be equal to the weightedaverage dumping margin established in the final results of this review (except, if the rate is de minimis, then a cash deposit rate of zero will be established for that company); (2) for previously investigated or reviewed PRC and nonPRC exporters not listed above that currently have separate a rate, the cash deposit rate will continue to be the exporter-specific rate published for the most recently completed segment of this proceeding where the exporter received that separate rate; (3) for all PRC exporters of subject merchandise that have not been found to be entitled to a separate rate, the cash deposit rate will be the rate for the PRC-wide entity, 92.84 percent; and (4) for all non-PRC exporters of subject merchandise which have not received their own separate rate, the cash deposit rate will be the rate applicable to the PRC exporter that supplied that non-PRC exporter. These deposit requirements, when imposed, shall remain in effect until further notice. presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. Notifications to Interested Parties This notice serves as the only reminder to parties subject to administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. We are issuing and publishing these results of review in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: January 4, 2016. Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Issues and Decision Memo CPZ/SKF 1. Whether to Collapse CPZ/SKF and Shanghai General Bearing Co., Ltd. 2. Calculation of Steel Bar Transportation Cost 3. Surrogate Value (SV) for Truck Freight 4. SV for Labor Rate 5. Unreported Steel Producer Distances to Subcontractors Yantai CMC 6. The Department Should Discontinue its Separate Rate Practice 7. The Denial of Separate Rate Status for Yantai CMC is not Supported by Record Evidence 8. Assigning Yantai CMC the PRC-Wide Rate is Contrary to Law 9. The Department’s Separate Rate Tests and Resulting Use of AFA are Inconsistent with the World Trade Organization Agreements [FR Doc. 2016–00432 Filed 1–11–16; 8:45 am] tkelley on DSK3SPTVN1PROD with NOTICES 10 See Non-Market Economy Antidumping Proceedings: Assessment of Antidumping Duties, 76 FR 65694 (October 24, 2011). VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 David Goldberger at (202) 482–4136 or Ross Belliveau at (202) 482–4952, Office II, AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: The Petition On December 16, 2015, the Department of Commerce (the Department) received an antidumping duty (AD) petition concerning imports of large residential washers (washing machines) from the People’s Republic of China (PRC), filed in proper form on behalf of Whirlpool Corporation (Petitioner).1 Petitioner is a domestic producer of washing machines.2 On December 16, 2015, the Department requested additional information and clarification of certain areas of the Petition.3 Petitioner filed a response to this request on December 18, 2015.4 On January 4, 2016, Petitioner filed an amendment to the Petition, clarifying one of its responses in the Petition Supplement.5 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), Petitioner alleges that imports of washing machines from the PRC 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 are materially injuring, or threatening material injury to, an industry in the United States. Also, consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to Petitioner supporting its allegations. The Department finds that Petitioner filed this Petition on behalf of the domestic industry because Petitioner is an interested party as defined in section 771(9)(C) of the Act. The Department also finds that Petitioner demonstrated sufficient industry support with respect BILLING CODE 3510–DS–P Notifications to Importers This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary’s FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF COMMERCE International Trade Administration [A–570–033] Large Residential Washers From the People’s Republic of China: Initiation of Less-Than-Fair-Value Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Effective date: January 5, 2016. AGENCY: PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 1 See the Petition for the Imposition of Antidumping Duties on Imports of Large Residential Washers from the PRC, dated December 16, 2015 (the Petition). 2 See Volume I of the Petition, at 4. 3 See Letter from the Department to Petitioner entitled ‘‘Re: Petition for the Imposition of Antidumping Duties on Imports of Large Residential Washers from the People’s Republic of China: Supplemental Questions’’ dated December 16, 2015 (Supplemental Questionnaire). 4 See Supplement to the Petition, dated December 18, 2015 (Petition Supplement). 5 See letter from Petitioner, entitled ‘‘Large Residential Washers from the People’s Republic of China: Amendment to Antidumping Petition,’’ dated January 4, 2016. E:\FR\FM\12JAN1.SGM 12JAN1 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices to the initiation of the AD investigation that Petitioner is requesting.6 Period of Investigation Because the Petition was filed on December 16, 2015, the period of investigation (POI) is, pursuant to 19 CFR 351.204(b)(1), April 1, 2015, through September 30, 2015. Scope of the Investigation The product covered by this investigation is washing machines from the PRC. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix I of this notice. tkelley on DSK3SPTVN1PROD with NOTICES Comments on Scope of the Investigation As discussed in the preamble to the Department’s regulations,7 we are setting aside a period for interested parties to raise issues regarding product coverage (scope). The Department will consider all comments received from parties and, if necessary, will consult with parties prior to the issuance of the preliminary determination. If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information. In order to facilitate preparation of its questionnaires, the Department requests all interested parties to submit such comments by 5:00 p.m. Eastern Time (ET) on Monday, January 25, 2016, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on Thursday, February 4, 2016, which is 10 calendar days after the initial comments deadline. The Department requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact the Department and request permission to submit the additional information. Filing Requirements All submissions to the Department must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).8 An electronically filed 6 See the ‘‘Determination of Industry Support for the Petition’’ section below. 7 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 8 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 document must be received successfully in its entirety by the time and date when it is due. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, 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 applicable deadlines. Comments on Product Characteristics for AD Questionnaires The Department requests comments from interested parties regarding the appropriate physical characteristics of washing machines to be reported in response to the Department’s AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order to report the relevant factors and costs of production accurately 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 list of physical characteristics. Specifically, they may provide comments as to which characteristics are appropriate to use as: (1) General product characteristics and (2) productcomparison criteria. We note that it is not always appropriate to use all product characteristics as productcomparison criteria. We base productcomparison criteria on meaningful commercial differences among products. In other words, although 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 matching products. 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 Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of the Department’s electronic filing requirements, which went into effect on August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/ Handbook%20on%20Electronic%20Filling %20Procedures.pdf. PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 1399 issuing the AD questionnaires, all comments must be filed by 5:00 p.m. EDT on January 25, 2016, which is twenty calendar days from the signature date of this notice. Any rebuttal comments must be filed by 5:00 p.m. EDT on February 4, 2016. All comments and submissions to the Department must be filed electronically using ACCESS, as explained above. Determination of Industry Support for the Petition 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,9 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 9 See E:\FR\FM\12JAN1.SGM section 771(10) of the Act. 12JAN1 1400 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices tkelley on DSK3SPTVN1PROD with NOTICES render the decision of either agency contrary to law.10 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, Petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation. Based on our analysis of the information submitted on the record, we determined that washing machines constitute a single domestic like product and we analyzed industry support in terms of that domestic like product.11 In determining whether Petitioner has standing under section 732(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in Appendix I of this notice. To establish industry support, Petitioner provided its shipments of the domestic like product in 2014, and compared its shipments to the estimated total shipments of the domestic like product for the entire domestic industry.12 Because total industry production data for the domestic like product for 2014 is not reasonably available and Petitioner established that shipments are a reasonable proxy for production data,13 we relied upon the shipment data provided by Petitioner for purposes of measuring industry support.14 Our review of the data provided in the Petition, Petition Supplement, and other 10 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 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 11 For a discussion of the domestic like product analysis in this case, see Antidumping Duty Investigation Initiation Checklist: Large Residential Washers from the People’s Republic of China (PRC AD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping Duty Petition Covering Large Residential Washers from the People’s Republic of China (Attachment II). This checklist is dated concurrently with this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Department of Commerce building. 12 See Volume I of the Petition, at 6–7 and Volume II of the Petition, at Exhibits 1–2; see also Petition Supplement, at 1–5 and Exhibits C–E. 13 See Petition Supplement, at 3–4. 14 For further discussion, see PRC AD Initiation Checklist, at Attachment II. VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 information readily available to the Department indicates that Petitioner has established industry support.15 First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total shipments 16 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).17 Second, the domestic producers (or workers) met the statutory criteria for industry support under section 732(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total shipments of the domestic like product.18 Finally, the domestic producers (or workers) 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 Petition account for more than 50 percent of the shipments of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.19 Accordingly, the Department determines that the Petition was filed on behalf of the domestic industry within the meaning of section 732(b)(1) of the Act. The Department finds that Petitioner filed the Petition 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 AD investigation that it is requesting the Department initiate.20 Allegations and Evidence of Material Injury and Causation 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, Petitioner alleges that subject imports exceed the 15 Id. 16 As mentioned above, Petitioner established that shipments are a reasonable proxy for production data. Section 351.203(e)(1) of the Department’s regulations states ‘‘production levels may be established by reference to alternative data that the Secretary determines to be indicative of production levels.’’ 17 See section 732(c)(4)(D) of the Act; see also PRC AD Initiation Checklist, at Attachment II. 18 See PRC AD Initiation Checklist, at Attachment II. 19 Id. 20 Id. PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 negligibility threshold provided for under section 771(24)(A) of the Act.21 Petitioner contends that the industry’s injured condition is illustrated by reduced market share, underselling and price depression or suppression, lost sales and revenue, and weakening financial position.22 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation.23 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 based its decision to initiate an investigation of imports of washing machines from the PRC. The sources of data for the deductions and adjustments relating to U.S. price and NV are discussed in greater detail in the initiation checklist. Export Price Petitioner based U.S. prices on advertised retail prices for representative washing machines produced in the PRC and sold at major retailers in the U.S. market during the POI.24 These prices were adjusted to exclude the retailer markup, as well as discounts and rebates, based on Petitioner’s experience in, and knowledge of, the market.25 Petitioner deducted international freight and duty costs based on U.S. Customs and Border Protection (CBP) import data from the ITC’s Dataweb.26 Normal Value Petitioner stated that the Department currently treats the PRC as a non-market economy (NME) country and, in accordance with section 771(18)(C)(i) of the Act, the presumption of NME status remains in effect until revoked by the Department.27 The presumption of NME 21 See Volume I of the Petition, at 56 and Volume II of the Petition, at Exhibit 2. 22 See Volume I of the Petition, at 1–4, 38–57, 61– 114; Volume II of the Petition, at Exhibits 1–2; and Volume IV of the Petition, at Exhibits 30–40; see also Petition Supplement, at 2, 5–7, and Exhibits C and F–H. 23 See PRC AD Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping Duty Petition Covering Large Residential Washers from the People’s Republic of China. 24 See Volume I of the Petition, at 27–29 and Volume II of the Petition, at Exhibits 12–15. 25 See Volume I of Petition at 29 and Volume II of the Petition, at Exhibits 16 and 17. 26 See Volume I of the Petition, at 29 and Volume II of the Petition, at Exhibits 16 and 18. 27 See Volume I of the Petition, at 29. E:\FR\FM\12JAN1.SGM 12JAN1 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices status for the PRC has not been revoked by the Department and, therefore, remains in effect for purposes of the initiation of this investigation. Accordingly, the NV of the product is appropriately based on factors of production (FOPs) valued in a surrogate market economy country, in accordance with section 773(c) of the Act. In the course of this investigation, all parties, and the public, will have the opportunity to provide relevant information related to the issues of the PRC’s NME status and the granting of separate rates to individual exporters. Petitioner claims that Thailand is an appropriate surrogate country because it is a market economy that is at a level of economic development comparable to that of the PRC and it is a significant producer of the merchandise under consideration.28 Based on the information provided by Petitioner, it is appropriate to use Thailand as a surrogate country for initiation purposes. Interested parties will have the opportunity to submit comments regarding surrogate country selection and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an opportunity to submit publicly available information to value FOPs within 30 days before the scheduled date of the preliminary determination. Factors of Production Petitioner based the FOPs for materials on the actual quantities of material components for the same models of washing machines used as the basis of U.S. price, derived through a ‘‘product teardown’’ process, i.e., disassembly and analysis of four actual washing machines purchased in the United States.29 For labor and electricity, Petitioner estimated usage rates in the PRC based on its own actual experience producing specific front load and top load models during the POI.30 Petitioner valued the estimated factors of production using surrogate values from Thailand.31 Valuation of Raw Materials and Packing Materials Petitioner valued the FOPs for raw materials using reasonably available, public import data for Thailand from the Global Trade Atlas (GTA) for the period of investigation.32 Petitioner excluded all import values from countries previously determined by the Department to maintain broadly available, non-industry-specific export subsidies and from countries previously determined by the Department to be NME countries. In addition, in accordance with the Department’s practice, the average import values exclude imports that were labeled as originating from an unidentified country. The Department determines that the surrogate values used by Petitioner are reasonably available and, thus, are acceptable for purposes of initiation. Valuation of Labor Petitioner valued labor using quarterly Thai labor data published by Thailand’s National Statistics Office (NSO).33 Specifically, Petitioner relied on data pertaining to wages and benefits earned by Thai workers engaged in the manufacturing sector of the Thai economy.34 Petitioner converted the wage rates to an hourly rate and converted from Thai Baht to U.S. Dollars using the average exchange rate during the POI.35 Valuation of Energy Petitioner used public information, as compiled by the Electricity Generating Authority of Thailand (EGAT), to value electricity.36 This EGAT price information was converted by Petitioner to a U.S. Dollars/kilowatt hours price using the average exchange rate during the POI.37 Valuation of Factory Overhead, Selling, General and Administrative Expenses (SG&A), and Profit Petitioner calculated surrogate financial ratios (i.e., factory overhead, SG&A expenses, and profit) using the 2014 audited financial statement of Haier Electric (Thailand) Public Co., Ltd. (HET), a Thai producer of comparable merchandise (i.e., washing machines).38 Fair Value Comparisons Based on the data provided by Petitioner, there is reason to believe that imports of washing machines from the PRC are being, or are likely to be, sold in the United States at less-than-fair tkelley on DSK3SPTVN1PROD with NOTICES 33 See 28 See Volume I of the Petition, at 29–30 and Volume II of the Petition, at Exhibits 19 and 20. 29 See Volume I of the Petition, at 30–31, Volume II of the Petition, at Exhibit 21, and Volume IV of the Petition, at Exhibit 29. 30 See Volume I of the Petition, at 31, Volume II of the Petition, at Exhibit 22, and Volume IV of the Petition, at Exhibit 29. 31 See Volume I of the Petition, at 31–32. 32 See Volume III of the Petition, at Exhibit 23. VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 Volume I of the Petition, at 3 and Volume IV of the Petition, at Exhibit 24. 34 Id. 35 See Volume IV of the Petition, at Exhibits 24 and 26. 36 See Volume I of the Petition, at 31 and Volume IV of the Petition, at Exhibit 25. 37 See Volume IV of the Petition, at Exhibits 25 and 26. 38 See Volume I of the Petition, at 32 and Volume IV of the Petition, at Exhibits 27 and 28. PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 1401 value. Based on comparisons of EP to NV, in accordance with section 773(c) of the Act, the estimated dumping margins for washing machines from the PRC range from 68.92 to 109.04 percent.39 Initiation of Less-Than-Fair-Value Investigation Based upon the examination of the AD Petition on washing machines from the PRC, we find that the Petition meets the requirements of section 732 of the Act. Therefore, we are initiating an AD investigation to determine whether washing machines from the PRC 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 and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 140 days after the date of this initiation. On June 29, 2015, the President of the United States signed into law the Trade Preferences Extension Act of 2015, which made numerous amendments to the AD and CVD law.40 The 2015 law does not specify dates of application for those amendments. On August 6, 2015, the Department published an interpretative rule, in which it announced the applicability dates for each amendment to the Act, except for amendments contained in section 771(7) of the Act, which relate to determinations of material injury by the ITC.41 The amendments to sections 771(15), 773, 776, and 782 of the Act are applicable to all determinations made on or after August 6, 2015, and, therefore, apply to this AD investigation.42 Respondent Selection Petitioner named two companies as producers/exporters of washing machines subject to the scope of this investigation.43 Accordingly, and in the absence of any contradictory information, the Department intends to examine all known producers/exporters of washing machines from the PRC. Separate Rates In order to obtain separate-rate status in an NME investigation, exporters and producers must submit a separate-rate 39 See Volume I of the Petition, at 32 and PRC AD Initiation Checklist. 40 See Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). 41 See Dates of Application of Amendments to the Antidumping and Countervailing Duty Laws Made by the Trade Preferences Extension Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice). 42 Id. at 46794–95. The 2015 amendments may be found at https://www.congress.gov/bill/114thcongress/house-bill/1295/text/pl. 43 See Volume I of the Petition, at 21–22. E:\FR\FM\12JAN1.SGM 12JAN1 1402 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices application.44 The specific requirements for submitting a separate-rate application are outlined in detail in the application itself, which is available on the Department’s Web site at http:// enforcement.trade.gov/nme/nme-seprate.html. The separate-rate application will be due 30 days after publication of this initiation notice.45 Exporters and producers who submit a separate-rate application and have been selected as mandatory respondents will be eligible for consideration for separate-rate status only if they respond to all parts of the Department’s AD questionnaire as mandatory respondents. The Department requires that respondents from the PRC submit a response to the separate-rate application by the deadline in order to receive consideration for separate-rate status. Use of Combination Rates The Department will calculate combination rates for certain respondents that are eligible for a separate rate in an NME investigation. The Separate Rates and Combination Rates Bulletin states: {w}hile continuing the practice of assigning separate rates only to exporters, all separate rates that the Department will now assign in its NME Investigation will be specific to those producers that supplied the exporter during the period of investigation. Note, however, that one rate is calculated for the exporter and all of the producers which supplied subject merchandise to it during the period of investigation. This practice applies both to mandatory respondents receiving an individually calculated separate rate as well as the pool of non-investigated firms receiving the weighted-average of the individually calculated rates. This practice is referred to as the application of ‘‘combination rates’’ because such rates apply to specific combinations of exporters and one or more producers. The cash-deposit rate assigned to an exporter will apply only to merchandise both exported by the firm in question and produced by a firm that supplied the exporter during the period of investigation.46 Distribution of Copies of the Petition In accordance with section 732(b)(3)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the government of the PRC via ACCESS. To tkelley on DSK3SPTVN1PROD with NOTICES 44 See Policy Bulletin 05.1: Separate-Rates Practice and Application of Combination Rates in Antidumping Investigation involving Non-Market Economy Countries (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1). 45 Although in past investigations this deadline was 60 days, consistent with 19 CFR 351.301(a), which states that ‘‘the Secretary may request any person to submit factual information at any time during a proceeding,’’ this deadline is now 30 days. 46 See Policy Bulletin 05.1 at 6 (emphasis added). VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 732(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of washing machines from the PRC are materially injuring or threatening material injury to a U.S. industry.47 A negative ITC determination will result in the investigation being terminated; 48 otherwise, this investigation will proceed according to statutory and regulatory time limits. Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the Department; and (v) evidence other than factual information described in (i)–(iv). Any party, when submitting factual information, must specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 49 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.50 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Please review the regulations prior to submitting factual information in these investigations. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it 47 See section 733(a) of the Act. 48 Id. 49 See 50 See PO 00000 19 CFR 351.301(b). 19 CFR 351.301(b)(2). Frm 00017 Fmt 4703 Sfmt 4703 is filed after the expiration of the time limit established under 19 CFR 351. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in the letter or memorandum setting forth the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimelyfiled requests for the extension of time limits. Review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/ fdsys/pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual information in these investigations. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.51 Parties are hereby reminded that revised certification requirements are in effect for company/government officials, as well as their representatives. Investigations initiated on the basis of petitions filed on or after August 16, 2013, and other segments of any AD or CVD proceedings initiated on or after August 16, 2013, should use the formats for the revised certifications provided at the end of the Final Rule.52 The Department intends to reject factual submissions if the submitting party does not comply with applicable revised certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under administrative protective order (APO) 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 51 See section 782(b) of the Act. Certification of Factual Information to Import Administration during Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also frequently asked questions regarding the Final Rule, available at http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 52 See E:\FR\FM\12JAN1.SGM 12JAN1 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed in 19 CFR 351.103(d)). This notice is issued and published pursuant to section 777(i) of the Act and 19 CFR 351.203(c). Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix I tkelley on DSK3SPTVN1PROD with NOTICES Scope of the Investigation The products covered by this investigation are all large residential washers and certain parts thereof from the People’s Republic of China. For purposes of this investigation, 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), except as noted below. Also covered are certain parts used in large residential washers, namely: (1) All cabinets, or portions thereof, designed for use in large residential washers; (2) all assembled tubs 53 designed for use in large residential washers which incorporate, at a minimum: (a) A tub; and (b) a seal; (3) all assembled baskets 54 designed for use in large residential washers which incorporate, at a minimum: (a) A side wrapper; 55 (b) a base; and (c) a drive hub; 56 and (4) any combination of the foregoing parts or 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’’ segment meeting either of the following two definitions: (1) (a) It contains payment system electronics; 57 (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 53 A ‘‘tub’’ is the part of the washer designed to hold water. 54 A ‘‘basket’’ (sometimes referred to as a ‘‘drum’’) is the part of the washer designed to hold clothing or other fabrics. 55 A ‘‘side wrapper’’ is the cylindrical part of the basket that actually holds the clothing or other fabrics. 56 A ‘‘drive hub’’ is the hub at the center of the base that bears the load from the motor. 57 ‘‘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. VerDate Sep<11>2014 20:14 Jan 11, 2016 Jkt 238001 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; 58 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,59 the unit cannot begin a wash cycle without first receiving a signal from a bona fide payment acceptance device such as an electronic credit card reader; (c) it contains a push button user interface with a maximum of six manually selectable wash cycle settings, with no ability of the end user to otherwise modify water temperature, water level, or spin speed for a selected wash cycle setting; and (d) the console containing the user interface is made of steel and is assembled with security fasteners. Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) Have a vertical rotational axis; (2) are top loading; 60 (3) have a drive train consisting, inter alia, of (a) a permanent split capacitor (PSC) motor,61 (b) a belt drive,62 and (c) a flat wrap spring clutch.63 Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) Have a horizontal rotational axis; (2) are front loading; 64 and (3) have a drive train consisting, inter alia, of (a) a controlled induction motor (CIM),65 and (b) a belt drive. Also excluded from the scope are automatic clothes washing machines that meet all of the following conditions: (1) Have a horizontal rotational axis; (2) are front loading; and (3) have cabinet width (measured from its widest point) of more than 28.5 inches (72.39 cm). The products subject to this investigation are currently classifiable under subheadings 8450.20.0040 and 8450.20.0080 of the Harmonized Tariff Schedule of the United States (HTSUS). Products subject to this 58 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. 59 ‘‘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). 60 ‘‘Top loading’’ means that access to the basket is from the top of the washer. 61 A ‘‘PSC motor’’ is an asynchronous, alternating current (AC), single phase induction motor that employs split phase capacitor technology. 62 A ‘‘belt drive’’ refers to a drive system that includes a belt and pulleys. 63 A ‘‘flat wrap spring clutch’’ is a flat metal spring that, when engaged, links abutted cylindrical pieces on the input shaft with the end of the concentric output shaft that connects to the drive hub. 64 ‘‘Front loading’’ means that access to the basket is from the front of the washer. 65 A ‘‘controlled induction motor’’ is an asynchronous, alternating current (AC), polyphase induction motor. PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 1403 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 investigation is dispositive. [FR Doc. 2016–00473 Filed 1–11–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration RIN 0648–XC268 Marine Mammals; File No. 16239 National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice; issuance of permit amendment. AGENCY: Notice is hereby given that a major amendment to Permit No. 16239 has been issued to Dan Engelhaupt, Ph.D., HDR EOC, 5700 Lake Wright Drive, Norfolk, VA 23502–1859. ADDRESSES: The permit amendment and related documents are available for review upon written request or by appointment in the Permits and Conservation Division, Office of Protected Resources, NMFS, 1315 EastWest Highway, Room 13705, Silver Spring, MD 20910; phone (301) 427– 8401; fax (301) 713–0376. FOR FURTHER INFORMATION CONTACT: Carrie Hubard or Courtney Smith, (301) 427–8401. SUPPLEMENTARY INFORMATION: On August 27, 2015, notice was published in the Federal Register (80 FR 52034) that a request for an amendment to Permit No. 16239 to conduct research on many marine mammal species had been submitted by the above-named applicant. The requested permit amendment has been issued under the authority of the Marine Mammal Protection Act of 1972, as amended (16 U.S.C. 1361 et seq.), the regulations governing the taking and importing of marine mammals (50 CFR part 216), the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 et seq.), and the regulations governing the taking, importing, and exporting of endangered and threatened species (50 CFR parts 222–226). Permit No. 16239, issued on September 11, 2013 (78 FR 60852), authorizes the permit holder to harass cetacean and pinniped species during vessel and aerial survey activities, including behavioral observations and SUMMARY: E:\FR\FM\12JAN1.SGM 12JAN1

Agencies

[Federal Register Volume 81, Number 7 (Tuesday, January 12, 2016)]
[Notices]
[Pages 1398-1403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00473]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-033]


Large Residential Washers From the People's Republic of China: 
Initiation of Less-Than-Fair-Value Investigation

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

DATES: Effective date: January 5, 2016.

FOR FURTHER INFORMATION CONTACT: David Goldberger at (202) 482-4136 or 
Ross Belliveau at (202) 482-4952, Office II, AD/CVD Operations, 
Enforcement and Compliance, U.S. Department of Commerce, 14th Street 
and Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petition

    On December 16, 2015, the Department of Commerce (the Department) 
received an antidumping duty (AD) petition concerning imports of large 
residential washers (washing machines) from the People's Republic of 
China (PRC), filed in proper form on behalf of Whirlpool Corporation 
(Petitioner).\1\ Petitioner is a domestic producer of washing 
machines.\2\
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    \1\ See the Petition for the Imposition of Antidumping Duties on 
Imports of Large Residential Washers from the PRC, dated December 
16, 2015 (the Petition).
    \2\ See Volume I of the Petition, at 4.
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    On December 16, 2015, the Department requested additional 
information and clarification of certain areas of the Petition.\3\ 
Petitioner filed a response to this request on December 18, 2015.\4\
---------------------------------------------------------------------------

    \3\ See Letter from the Department to Petitioner entitled ``Re: 
Petition for the Imposition of Antidumping Duties on Imports of 
Large Residential Washers from the People's Republic of China: 
Supplemental Questions'' dated December 16, 2015 (Supplemental 
Questionnaire).
    \4\ See Supplement to the Petition, dated December 18, 2015 
(Petition Supplement).
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    On January 4, 2016, Petitioner filed an amendment to the Petition, 
clarifying one of its responses in the Petition Supplement.\5\
---------------------------------------------------------------------------

    \5\ See letter from Petitioner, entitled ``Large Residential 
Washers from the People's Republic of China: Amendment to 
Antidumping Petition,'' dated January 4, 2016.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), Petitioner alleges that imports of washing machines 
from the PRC 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 are materially injuring, or threatening material 
injury to, an industry in the United States. Also, consistent with 
section 732(b)(1) of the Act, the Petition is accompanied by 
information reasonably available to Petitioner supporting its 
allegations.
    The Department finds that Petitioner filed this Petition on behalf 
of the domestic industry because Petitioner is an interested party as 
defined in section 771(9)(C) of the Act. The Department also finds that 
Petitioner demonstrated sufficient industry support with respect

[[Page 1399]]

to the initiation of the AD investigation that Petitioner is 
requesting.\6\
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    \6\ See the ``Determination of Industry Support for the 
Petition'' section below.
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Period of Investigation

    Because the Petition was filed on December 16, 2015, the period of 
investigation (POI) is, pursuant to 19 CFR 351.204(b)(1), April 1, 
2015, through September 30, 2015.

Scope of the Investigation

    The product covered by this investigation is washing machines from 
the PRC. For a full description of the scope of this investigation, see 
the ``Scope of the Investigation,'' in Appendix I of this notice.

Comments on Scope of the Investigation

    As discussed in the preamble to the Department's regulations,\7\ we 
are setting aside a period for interested parties to raise issues 
regarding product coverage (scope). The Department will consider all 
comments received from parties and, if necessary, will consult with 
parties prior to the issuance of the preliminary determination. If 
scope comments include factual information (see 19 CFR 351.102(b)(21)), 
all such factual information should be limited to public information. 
In order to facilitate preparation of its questionnaires, the 
Department requests all interested parties to submit such comments by 
5:00 p.m. Eastern Time (ET) on Monday, January 25, 2016, which is 20 
calendar days from the signature date of this notice. Any rebuttal 
comments, which may include factual information, must be filed by 5:00 
p.m. ET on Thursday, February 4, 2016, which is 10 calendar days after 
the initial comments deadline.
---------------------------------------------------------------------------

    \7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
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    The Department requests that any factual information the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact the Department and 
request permission to submit the additional information.

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\8\ An electronically 
filed document must be received successfully in its entirety by the 
time and date when it is due. Documents excepted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, 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 applicable deadlines.
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    \8\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of the Department's electronic 
filing requirements, which went into effect on August 5, 2011. 
Information on help using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    The Department requests comments from interested parties regarding 
the appropriate physical characteristics of washing machines to be 
reported in response to the Department's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors and 
costs of production accurately 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 list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics and (2) 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, although 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 matching 
products. 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 AD questionnaires, all comments must be 
filed by 5:00 p.m. EDT on January 25, 2016, which is twenty calendar 
days from the signature date of this notice. Any rebuttal comments must 
be filed by 5:00 p.m. EDT on February 4, 2016. All comments and 
submissions to the Department must be filed electronically using 
ACCESS, as explained above.

Determination of Industry Support for the Petition

    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,\9\ 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

[[Page 1400]]

render the decision of either agency contrary to law.\10\
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    \9\ See section 771(10) of the Act.
    \10\ 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 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    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, Petitioner does not offer 
a definition of the domestic like product distinct from the scope of 
the investigation. Based on our analysis of the information submitted 
on the record, we determined that washing machines constitute a single 
domestic like product and we analyzed industry support in terms of that 
domestic like product.\11\
---------------------------------------------------------------------------

    \11\ For a discussion of the domestic like product analysis in 
this case, see Antidumping Duty Investigation Initiation Checklist: 
Large Residential Washers from the People's Republic of China (PRC 
AD Initiation Checklist), at Attachment II, Analysis of Industry 
Support for the Antidumping Duty Petition Covering Large Residential 
Washers from the People's Republic of China (Attachment II). This 
checklist is dated concurrently with this notice and on file 
electronically via ACCESS. Access to documents filed via ACCESS is 
also available in the Central Records Unit, Room B8024 of the main 
Department of Commerce building.
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    In determining whether Petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in Appendix I of this 
notice. To establish industry support, Petitioner provided its 
shipments of the domestic like product in 2014, and compared its 
shipments to the estimated total shipments of the domestic like product 
for the entire domestic industry.\12\ Because total industry production 
data for the domestic like product for 2014 is not reasonably available 
and Petitioner established that shipments are a reasonable proxy for 
production data,\13\ we relied upon the shipment data provided by 
Petitioner for purposes of measuring industry support.\14\
---------------------------------------------------------------------------

    \12\ See Volume I of the Petition, at 6-7 and Volume II of the 
Petition, at Exhibits 1-2; see also Petition Supplement, at 1-5 and 
Exhibits C-E.
    \13\ See Petition Supplement, at 3-4.
    \14\ For further discussion, see PRC AD Initiation Checklist, at 
Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, Petition 
Supplement, and other information readily available to the Department 
indicates that Petitioner has established industry support.\15\ First, 
the Petition established support from domestic producers (or workers) 
accounting for more than 50 percent of the total shipments \16\ 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).\17\ Second, the domestic producers (or workers) met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petition account for at least 25 percent of the total shipments of the 
domestic like product.\18\ Finally, the domestic producers (or workers) 
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 Petition account for more than 50 percent of the 
shipments of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the Petition.\19\ 
Accordingly, the Department determines that the Petition was filed on 
behalf of the domestic industry within the meaning of section 732(b)(1) 
of the Act.
---------------------------------------------------------------------------

    \15\ Id.
    \16\ As mentioned above, Petitioner established that shipments 
are a reasonable proxy for production data. Section 351.203(e)(1) of 
the Department's regulations states ``production levels may be 
established by reference to alternative data that the Secretary 
determines to be indicative of production levels.''
    \17\ See section 732(c)(4)(D) of the Act; see also PRC AD 
Initiation Checklist, at Attachment II.
    \18\ See PRC AD Initiation Checklist, at Attachment II.
    \19\ Id.
---------------------------------------------------------------------------

    The Department finds that Petitioner filed the Petition 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 AD investigation that it is 
requesting the Department initiate.\20\
---------------------------------------------------------------------------

    \20\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    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, Petitioner alleges 
that subject imports exceed the negligibility threshold provided for 
under section 771(24)(A) of the Act.\21\
---------------------------------------------------------------------------

    \21\ See Volume I of the Petition, at 56 and Volume II of the 
Petition, at Exhibit 2.
---------------------------------------------------------------------------

    Petitioner contends that the industry's injured condition is 
illustrated by reduced market share, underselling and price depression 
or suppression, lost sales and revenue, and weakening financial 
position.\22\ We assessed the allegations and supporting evidence 
regarding material injury, threat of material injury, and causation, 
and we determined that these allegations are properly supported by 
adequate evidence and meet the statutory requirements for 
initiation.\23\
---------------------------------------------------------------------------

    \22\ See Volume I of the Petition, at 1-4, 38-57, 61-114; Volume 
II of the Petition, at Exhibits 1-2; and Volume IV of the Petition, 
at Exhibits 30-40; see also Petition Supplement, at 2, 5-7, and 
Exhibits C and F-H.
    \23\ See PRC AD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping Duty Petition Covering Large 
Residential Washers from the People's Republic of China.
---------------------------------------------------------------------------

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 based its decision to 
initiate an investigation of imports of washing machines from the PRC. 
The sources of data for the deductions and adjustments relating to U.S. 
price and NV are discussed in greater detail in the initiation 
checklist.

Export Price

    Petitioner based U.S. prices on advertised retail prices for 
representative washing machines produced in the PRC and sold at major 
retailers in the U.S. market during the POI.\24\ These prices were 
adjusted to exclude the retailer markup, as well as discounts and 
rebates, based on Petitioner's experience in, and knowledge of, the 
market.\25\ Petitioner deducted international freight and duty costs 
based on U.S. Customs and Border Protection (CBP) import data from the 
ITC's Dataweb.\26\
---------------------------------------------------------------------------

    \24\ See Volume I of the Petition, at 27-29 and Volume II of the 
Petition, at Exhibits 12-15.
    \25\ See Volume I of Petition at 29 and Volume II of the 
Petition, at Exhibits 16 and 17.
    \26\ See Volume I of the Petition, at 29 and Volume II of the 
Petition, at Exhibits 16 and 18.
---------------------------------------------------------------------------

Normal Value

    Petitioner stated that the Department currently treats the PRC as a 
non-market economy (NME) country and, in accordance with section 
771(18)(C)(i) of the Act, the presumption of NME status remains in 
effect until revoked by the Department.\27\ The presumption of NME

[[Page 1401]]

status for the PRC has not been revoked by the Department and, 
therefore, remains in effect for purposes of the initiation of this 
investigation. Accordingly, the NV of the product is appropriately 
based on factors of production (FOPs) valued in a surrogate market 
economy country, in accordance with section 773(c) of the Act. In the 
course of this investigation, all parties, and the public, will have 
the opportunity to provide relevant information related to the issues 
of the PRC's NME status and the granting of separate rates to 
individual exporters.
---------------------------------------------------------------------------

    \27\ See Volume I of the Petition, at 29.
---------------------------------------------------------------------------

    Petitioner claims that Thailand is an appropriate surrogate country 
because it is a market economy that is at a level of economic 
development comparable to that of the PRC and it is a significant 
producer of the merchandise under consideration.\28\
---------------------------------------------------------------------------

    \28\ See Volume I of the Petition, at 29-30 and Volume II of the 
Petition, at Exhibits 19 and 20.
---------------------------------------------------------------------------

    Based on the information provided by Petitioner, it is appropriate 
to use Thailand as a surrogate country for initiation purposes. 
Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Petitioner based the FOPs for materials on the actual quantities of 
material components for the same models of washing machines used as the 
basis of U.S. price, derived through a ``product teardown'' process, 
i.e., disassembly and analysis of four actual washing machines 
purchased in the United States.\29\ For labor and electricity, 
Petitioner estimated usage rates in the PRC based on its own actual 
experience producing specific front load and top load models during the 
POI.\30\ Petitioner valued the estimated factors of production using 
surrogate values from Thailand.\31\
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    \29\ See Volume I of the Petition, at 30-31, Volume II of the 
Petition, at Exhibit 21, and Volume IV of the Petition, at Exhibit 
29.
    \30\ See Volume I of the Petition, at 31, Volume II of the 
Petition, at Exhibit 22, and Volume IV of the Petition, at Exhibit 
29.
    \31\ See Volume I of the Petition, at 31-32.
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Valuation of Raw Materials and Packing Materials

    Petitioner valued the FOPs for raw materials using reasonably 
available, public import data for Thailand from the Global Trade Atlas 
(GTA) for the period of investigation.\32\ Petitioner excluded all 
import values from countries previously determined by the Department to 
maintain broadly available, non-industry-specific export subsidies and 
from countries previously determined by the Department to be NME 
countries. In addition, in accordance with the Department's practice, 
the average import values exclude imports that were labeled as 
originating from an unidentified country. The Department determines 
that the surrogate values used by Petitioner are reasonably available 
and, thus, are acceptable for purposes of initiation.
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    \32\ See Volume III of the Petition, at Exhibit 23.
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Valuation of Labor

    Petitioner valued labor using quarterly Thai labor data published 
by Thailand's National Statistics Office (NSO).\33\ Specifically, 
Petitioner relied on data pertaining to wages and benefits earned by 
Thai workers engaged in the manufacturing sector of the Thai 
economy.\34\ Petitioner converted the wage rates to an hourly rate and 
converted from Thai Baht to U.S. Dollars using the average exchange 
rate during the POI.\35\
---------------------------------------------------------------------------

    \33\ See Volume I of the Petition, at 3 and Volume IV of the 
Petition, at Exhibit 24.
    \34\ Id.
    \35\ See Volume IV of the Petition, at Exhibits 24 and 26.
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Valuation of Energy

    Petitioner used public information, as compiled by the Electricity 
Generating Authority of Thailand (EGAT), to value electricity.\36\ This 
EGAT price information was converted by Petitioner to a U.S. Dollars/
kilowatt hours price using the average exchange rate during the 
POI.\37\
---------------------------------------------------------------------------

    \36\ See Volume I of the Petition, at 31 and Volume IV of the 
Petition, at Exhibit 25.
    \37\ See Volume IV of the Petition, at Exhibits 25 and 26.
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Valuation of Factory Overhead, Selling, General and Administrative 
Expenses (SG&A), and Profit

    Petitioner calculated surrogate financial ratios (i.e., factory 
overhead, SG&A expenses, and profit) using the 2014 audited financial 
statement of Haier Electric (Thailand) Public Co., Ltd. (HET), a Thai 
producer of comparable merchandise (i.e., washing machines).\38\
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    \38\ See Volume I of the Petition, at 32 and Volume IV of the 
Petition, at Exhibits 27 and 28.
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Fair Value Comparisons

    Based on the data provided by Petitioner, there is reason to 
believe that imports of washing machines from the PRC are being, or are 
likely to be, sold in the United States at less-than-fair value. Based 
on comparisons of EP to NV, in accordance with section 773(c) of the 
Act, the estimated dumping margins for washing machines from the PRC 
range from 68.92 to 109.04 percent.\39\
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    \39\ See Volume I of the Petition, at 32 and PRC AD Initiation 
Checklist.
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Initiation of Less-Than-Fair-Value Investigation

    Based upon the examination of the AD Petition on washing machines 
from the PRC, we find that the Petition meets the requirements of 
section 732 of the Act. Therefore, we are initiating an AD 
investigation to determine whether washing machines from the PRC 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 and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 140 days after the date of this initiation.
    On June 29, 2015, the President of the United States signed into 
law the Trade Preferences Extension Act of 2015, which made numerous 
amendments to the AD and CVD law.\40\ The 2015 law does not specify 
dates of application for those amendments. On August 6, 2015, the 
Department published an interpretative rule, in which it announced the 
applicability dates for each amendment to the Act, except for 
amendments contained in section 771(7) of the Act, which relate to 
determinations of material injury by the ITC.\41\ The amendments to 
sections 771(15), 773, 776, and 782 of the Act are applicable to all 
determinations made on or after August 6, 2015, and, therefore, apply 
to this AD investigation.\42\
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    \40\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \41\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
    \42\ Id. at 46794-95. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Respondent Selection

    Petitioner named two companies as producers/exporters of washing 
machines subject to the scope of this investigation.\43\ Accordingly, 
and in the absence of any contradictory information, the Department 
intends to examine all known producers/exporters of washing machines 
from the PRC.
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    \43\ See Volume I of the Petition, at 21-22.
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Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate

[[Page 1402]]

application.\44\ The specific requirements for submitting a separate-
rate application are outlined in detail in the application itself, 
which is available on the Department's Web site at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice.\45\ Exporters and producers who submit a separate-rate 
application and have been selected as mandatory respondents will be 
eligible for consideration for separate-rate status only if they 
respond to all parts of the Department's AD questionnaire as mandatory 
respondents. The Department requires that respondents from the PRC 
submit a response to the separate-rate application by the deadline in 
order to receive consideration for separate-rate status.
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    \44\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \45\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in an NME 
investigation. The Separate Rates and Combination Rates Bulletin 
states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\46\
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    \46\ See Policy Bulletin 05.1 at 6 (emphasis added).

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the government of the PRC via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the Petition to each exporter named in the Petition, as provided under 
19 CFR 351.203(c)(2).

ITC Notification

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

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of washing machines from the PRC are materially 
injuring or threatening material injury to a U.S. industry.\47\ A 
negative ITC determination will result in the investigation being 
terminated; \48\ otherwise, this investigation will proceed according 
to statutory and regulatory time limits.
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    \47\ See section 733(a) of the Act.
    \48\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by the Department; and (v) evidence other than 
factual information described in (i)-(iv). Any party, when submitting 
factual information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \49\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\50\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Please review the regulations prior to 
submitting factual information in these investigations.
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    \49\ See 19 CFR 351.301(b).
    \50\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Review Extension of Time Limits; Final Rule, 78 FR 
57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual 
information in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\51\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\52\ The Department intends to reject factual submissions if the 
submitting party does not comply with applicable revised certification 
requirements.
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    \51\ See section 782(b) of the Act.
    \52\ See Certification of Factual Information to Import 
Administration during Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective order (APO) 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

[[Page 1403]]

that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed in 19 CFR 351.103(d)).
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c).

Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are all large 
residential washers and certain parts thereof from the People's 
Republic of China.
    For purposes of this investigation, 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), except as noted below.
    Also covered are certain parts used in large residential 
washers, namely: (1) All cabinets, or portions thereof, designed for 
use in large residential washers; (2) all assembled tubs \53\ 
designed for use in large residential washers which incorporate, at 
a minimum: (a) A tub; and (b) a seal; (3) all assembled baskets \54\ 
designed for use in large residential washers which incorporate, at 
a minimum: (a) A side wrapper; \55\ (b) a base; and (c) a drive hub; 
\56\ and (4) any combination of the foregoing parts or 
subassemblies.
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    \53\ A ``tub'' is the part of the washer designed to hold water.
    \54\ A ``basket'' (sometimes referred to as a ``drum'') is the 
part of the washer designed to hold clothing or other fabrics.
    \55\ A ``side wrapper'' is the cylindrical part of the basket 
that actually holds the clothing or other fabrics.
    \56\ 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'' segment meeting either of the 
following two definitions:
    (1) (a) It contains payment system electronics; \57\ (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; \58\ or
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    \57\ ``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.
    \58\ 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,\59\ 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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    \59\ ``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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    Also excluded from the scope are automatic clothes washing 
machines that meet all of the following conditions: (1) Have a 
vertical rotational axis; (2) are top loading; \60\ (3) have a drive 
train consisting, inter alia, of (a) a permanent split capacitor 
(PSC) motor,\61\ (b) a belt drive,\62\ and (c) a flat wrap spring 
clutch.\63\
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    \60\ ``Top loading'' means that access to the basket is from the 
top of the washer.
    \61\ A ``PSC motor'' is an asynchronous, alternating current 
(AC), single phase induction motor that employs split phase 
capacitor technology.
    \62\ A ``belt drive'' refers to a drive system that includes a 
belt and pulleys.
    \63\ A ``flat wrap spring clutch'' is a flat metal spring that, 
when engaged, links abutted cylindrical pieces on the input shaft 
with the end of the concentric output shaft that connects to the 
drive hub.
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    Also excluded from the scope are automatic clothes washing 
machines that meet all of the following conditions: (1) Have a 
horizontal rotational axis; (2) are front loading; \64\ and (3) have 
a drive train consisting, inter alia, of (a) a controlled induction 
motor (CIM),\65\ and (b) a belt drive.
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    \64\ ``Front loading'' means that access to the basket is from 
the front of the washer.
    \65\ A ``controlled induction motor'' is an asynchronous, 
alternating current (AC), polyphase induction motor.
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    Also excluded from the scope are automatic clothes washing 
machines that meet all of the following conditions: (1) Have a 
horizontal rotational axis; (2) are front loading; and (3) have 
cabinet width (measured from its widest point) of more than 28.5 
inches (72.39 cm).
    The products subject to this investigation are currently 
classifiable under subheadings 8450.20.0040 and 8450.20.0080 of the 
Harmonized Tariff Schedule 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 
investigation is dispositive.
[FR Doc. 2016-00473 Filed 1-11-16; 8:45 am]
BILLING CODE 3510-DS-P