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Large Residential Washers from China

Investigation No. 731-TA-1306 (Preliminary)

Publication 4591

February 2016

U.S. International Trade Commission

Washington, DC 20436

U.S. International Trade Commission


COMMISSIONERS
Meredith M. Broadbent, Chairman
Dean A. Pinkert, Vice Chairman
Irving A. Williamson
David S. Johanson
F. Scott Kieff
Rhonda K. Schmidtlein

Catherine DeFilippo
Director of Operations
Staff assigned
Christopher Cassise, Senior Investigator
Dennis Fravel, Industry Analyst
Cindy Cohen, Economist
Michele Breaux, Economist
David Boyland, Accountant
Russell Duncan, Statistician
Karl von Schriltz, Attorney
Christopher Cassise, Acting Supervisory Investigator

Address all communications to


Secretary to the Commission
United States International Trade Commission
Washington, DC 20436

U.S. International Trade Commission


Washington, DC 20436
www.usitc.gov

Large Residential Washers from China


Investigation No. 731-TA-1306 (Preliminary)

Publication 4591

February 2016

CONTENTS
Page
Determination.................................................................................................................................1
ViewsoftheCommission...............................................................................................................3
PartI:Introduction................................................................................................................I1
Background................................................................................................................................I1
Statutorycriteriaandorganizationofthereport.....................................................................I1
Statutorycriteria...................................................................................................................I1
Organizationofreport...........................................................................................................I3
Marketsummary.......................................................................................................................I3
Summarydataanddatasources...............................................................................................I4
Previousandrelatedinvestigations..........................................................................................I4
NatureandextentofsalesatLTFV...........................................................................................I5
Thesubjectmerchandise..........................................................................................................I5
Commercesscope................................................................................................................I5
Scopeofthisinvestigationvs.scopeofthepriorinvestigationsonLRWs...........................I7
Tarifftreatment...................................................................................................................I10
Physicalcharacteristicsanduses.........................................................................................I10
Productfeatures..................................................................................................................I14
Manufacturingprocesses....................................................................................................I19
Domesticlikeproductissues...................................................................................................I23
DomesticlikeproductissuesintheCommissionspriorLRWsinvestigations...................I23
DomesticlikeproductissuesinthecurrentLRWsinvestigation........................................I25
PartII:ConditionsofcompetitionintheU.S.market............................................................II1
U.S.marketcharacteristics.......................................................................................................II1
Channelsofdistribution...........................................................................................................II2
Geographicdistribution...........................................................................................................II3
Supplyanddemandconsiderations.........................................................................................II3
U.S.supply............................................................................................................................II3
U.S.demand.........................................................................................................................II5

CONTENTS
Page
Substitutabilityissues...............................................................................................................II8
Leadtimes............................................................................................................................II9
Factorsaffectingpurchasingdecisions.................................................................................II9
ComparisonofU.S.producedandimportedLRWs..........................................................II12
PartIII:U.S.producersproduction,shipments,andemployment.......................................III1
U.S.producers.........................................................................................................................III1
Whirlpool.............................................................................................................................III2
GeneralElectric...................................................................................................................III3
Staber..................................................................................................................................III4
Alliance................................................................................................................................III4
U.S.production,capacity,andcapacityutilization.................................................................III5
PotentialproductshiftinginU.S.productionfacilities.......................................................III5
Whirlpoolsforeigntradezone(FTZ)productionactivities................................................III6
U.S.producersU.S.shipmentsandexports...........................................................................III7
U.S.producersU.S.commercialshipmentsofLRWsbyconfigurationandefficiency......III8
U.S.producersinventories.....................................................................................................III9
U.S.producersimportsandpurchases..................................................................................III9
U.S.employment,wages,andproductivity............................................................................III9
PartIV:U.S.imports,apparentU.S.consumption,andmarketshares................................IV1
U.S.importers..........................................................................................................................IV1
U.S.imports.............................................................................................................................IV2
U.S.shipmentsofimportsbyconfigurationandefficiency................................................IV3
Negligibility..............................................................................................................................IV4
ApparentU.S.consumptionandU.S.marketshares..............................................................IV4
ApparentU.S.consumptionandU.S.marketsharesbyconfigurationandefficiency.......IV5
PartV:Pricingdata...............................................................................................................V1
Factorsaffectingprices............................................................................................................V1
Rawmaterialcosts...............................................................................................................V1

ii

CONTENTS
Page
U.S.inlandtransportationcosts...........................................................................................V2
Pricingpractices.......................................................................................................................V2
Pricingmethods....................................................................................................................V2
Salestermsanddiscounts....................................................................................................V3
Pricedata..................................................................................................................................V5
Pricetrends...........................................................................................................................V8
Pricecomparisons................................................................................................................V8
Lostsalesandlostrevenue......................................................................................................V8
PartVI:FinancialexperienceofU.S.producers....................................................................VI1
Background..............................................................................................................................VI1
OperationsonLRWs................................................................................................................VI2
Salesvolumeandvalue.......................................................................................................VI2
Costofgoodssold...............................................................................................................VI4
Grossprofitorloss..............................................................................................................VI6
SG&Aexpensesandoperatingincomeorloss....................................................................VI6
Interestexpense,otherexpenses,andnetincomeorloss................................................VI7
Capitalexpendituresandresearchanddevelopmentexpenses............................................VI8
Assetsandreturnoninvestment............................................................................................VI8
Capitalandinvestment...........................................................................................................VI9
PartVII:Threatconsiderationsandinformationonnonsubjectcountries..........................VII1
TheindustryinChina..............................................................................................................VII2
ProducersofLRWsinChina................................................................................................VII3
DatafortheLRWindustryinChina....................................................................................VII5
U.S.inventoriesofimportedmerchandise............................................................................VII6
U.S.importersoutstandingorders........................................................................................VII6
Antidumpingorcountervailingdutyordersinthirdcountrymarkets..................................VII6
Informationonnonsubjectcountries....................................................................................VII7
ExportersofLRWs..............................................................................................................VII7

iii

CONTENTS
Page
Appendixes
A.FederalRegisternotices................................................................................................. A1
B.Listofconferencewitnesses.......................................................................................... B1
C. Summarydata................................................................................................................ C1

Note.Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynot
bepublishedandthereforehasbeendeleted.Suchdeletionsareindicatedbyasterisks.

iv

UNITEDSTATESINTERNATIONALTRADECOMMISSION

InvestigationNo.731TA1306(Preliminary)

LargeResidentialWashersfromChina

DETERMINATION
Onthebasisoftherecord1 developedinthesubjectinvestigation,theUnitedStates
InternationalTradeCommission(Commission)determines,pursuanttotheTariffActof1930
(theAct),thatthereisareasonableindicationthatanindustryintheUnitedStatesis
materiallyinjuredbyreasonofimportsoflargeresidentialwashersfromChina,providedforin
subheading8450.20.00oftheHarmonizedTariffScheduleoftheUnitedStates,thatarealleged
tobesoldintheUnitedStatesatlessthanfairvalue(LTFV).

COMMENCEMENTOFFINALPHASEINVESTIGATION

Pursuanttosection207.18oftheCommissionsrules,theCommissionalsogivesnotice
ofthecommencementofthefinalphaseofitsinvestigation.TheCommissionwillissueafinal
phasenoticeofscheduling,whichwillbepublishedintheFederalRegisterasprovidedin
section207.21oftheCommissionsrules,uponnoticefromtheDepartmentofCommerce
(Commerce)ofanaffirmativepreliminarydeterminationintheinvestigationundersection
733(b)oftheAct,or,ifthepreliminarydeterminationisnegative,uponnoticeofanaffirmative
finaldeterminationinthatinvestigationundersection735(a)oftheAct.Partiesthatfiled
entriesofappearanceinthepreliminaryphaseoftheinvestigationneednotenteraseparate
appearanceforthefinalphaseoftheinvestigation.Industrialusers,and,ifthemerchandise
underinvestigationissoldattheretaillevel,representativeconsumerorganizationshavethe
righttoappearaspartiesinCommissionantidumpingandcountervailingdutyinvestigations.
TheSecretarywillprepareapublicservicelistcontainingthenamesandaddressesofall
persons,ortheirrepresentatives,whoarepartiestotheinvestigation.

BACKGROUND

OnDecember16,2015,WhirlpoolCorp.,BentonHarbor,Michigan,filedapetitionwith
theCommissionandCommerce,allegingthatanindustryintheUnitedStatesismaterially
injuredorthreatenedwithmaterialinjurybyreasonofLTFVimportsoflargeresidential
washersfromChina.Accordingly,effectiveDecember16,2015,theCommission,pursuantto
section733(a)oftheTariffActof1930(19U.S.C.1673b(a)),institutedantidumpingduty
investigationNo.731TA1306(Preliminary).
1

Therecordisdefinedinsec.207.2(f)oftheCommissionsRulesofPracticeandProcedure
(19CFR207.2(f)).
1

NoticeoftheinstitutionoftheCommissionsinvestigationandofapublicconferenceto
beheldinconnectiontherewithwasgivenbypostingcopiesofthenoticeintheOfficeofthe
Secretary,U.S.InternationalTradeCommission,Washington,DC,andbypublishingthenotice
intheFederalRegisterofDecember22,2015(80FR79611).Theconferencewasheldin
Washington,DC,onJanuary6,2016,andallpersonswhorequestedtheopportunitywere
permittedtoappearinpersonorbycounsel.


ViewsofttheComm
mission

Basedonthe recordinth
hepreliminaryphaseoftthisinvestiggation,wefin
ndthatthereisa
reasonab
bleindicationthatanind
dustryinthe
eUnitedStattesismateriiallyinjuredbyreasono
of
importso
oflargeresid
dentialwash
hers(LRWs)fromChinnathatareallegedlysold
dintheUnitted
Statesatlessthanfairvalue.

I.

TheLegalS
T
Standardfo
orPrelimin
naryDeterrminationss

Thelegalstan
ndardforpre
eliminaryan
ntidumpingaandcountervailingdutydeterminations
requirestheCommisssiontodete
ermine,base
edupontheinformation
navailableatthetimeofthe
preliminaarydetermin
nations,whe
etherthereiisareasonabbleindicatio
onthatadom
mesticindusstryis
materialllyinjuredor threatenedwithmaterialinjury,orrthattheesttablishmenttofanindusttryis
materialllyretarded,byreasonofthealleged
dlyunfairlyttradedimports.1Inappllyingthis
standard
d,theCommissionweigh
hstheeviden
ncebeforeittanddeterm
mineswheth
her(1)the
recordassawholeco
ontainsclearandconvinccingevidenccethatthereeisnomaterialinjuryorr
threatoffsuchinjury;;and(2)nolikelihoodexxiststhatcoontraryevideencewillarisseinafinal
investigaation.2

II.

Background
B
d

WhirlpoolCo
W
rporation(Whirlpool),adomesticcproducero
ofLRWs,filed
dthepetitio
onin
thisinvesstigationonDecember1
16,2015.W
WhirlpoolanddGeneralEleectricCompany(GE),
anotherd
domesticproducerofLR
RWsthatsup
pportstheppetition,appearedattheestaff
conferen
nceandsubm
mittedpostcconferenceb
briefs.
Alsoparticipa
A
atinginthisiinvestigation
nwereLGEllectronicsUSSA,Inc.andNanjingLG
PandaAp
ppliancesCo
o.,Ltd.(colle
ectivelyLG)andSamsuungElectron
nicsAmerica,,Inc.andSu
uzhou
SamsunggElectronicsCo.,Ltd.(co
ollectivelySSamsung),w
whichareim
mportersand
dforeign
producerrsofsubjectmerchandisse.LGandSSamsung(coollectivelyreespondents)participatedin
thestaffconferenceandjointlyffiledapostconferencebbrief.
U.S.industry
U
dataarebassedontheq
questionnairreresponsessoffourproducers
accountingforallU.SS.productionofLRWsin
n2014.3U.SS.importdattaarecompiledusingU.S.
importerrquestionnaaireresponse
esfromfourrU.S.importtersandpro
oprietaryimp
portdata
obtained
dfromCusto
omsandBord
derProtectio
on.TwoU.SS.importers,LGandSam
msung,

19U.S.C.1
1671b(a),167
73b(a)(2000);seealsoAm
mericanLambCo.v.United
dStates,785FF.2d
104(Fed.Cir..1986);AristeechChem.Co
orp.v.United States,20CITT353,35455
5(1996).Noparty
994,1001
arguesthaattheestablishmentofan
nindustryinttheUnitedStaatesismateriallyretarded
dbytheallegeedly
unfairlytrradedimports.
2
A
AmericanLam
mbCo.,785FF.2dat1001;sseealsoTexaasCrushedStooneCo.v.UnitedStates,3
35
F.3d1535
5,1543(Fed.C
Cir.1994).
3
ConfidentialReport(CR)atI5;PubliccReport(PR
R)atI4.


accounte
edforvirtuallyallsubjecctimports.4 TheCommisssionreceiveedresponseestoits
questionnairesfromtwoforeign
nproducerso
ofsubjectm
merchandise,,accountinggforthevastt
5
majorityofproductio
onofLRWsiinChinain2
2014.

III.

DomesticL
D
ikeProducct

ndeterminin
ngwhethertthereisareaasonableinddicationthattanindustryyintheUnited
In
Statesismateriallyin
njuredorthrreatenedwithmaterialiinjurybyreaasonofimpo
ortsofthe
subjectm
merchandise
e,theCommissionfirstd
definesthedomesticlikkeproductandthe
industryy.6Section771(4)(A)offtheTariffA
Actof1930,asamended
d(theTarifffAct),defin
nes
therelevvantdomesticindustryaastheprodu
ucersasaw
wholeofado
omesticlikep
product,or
thosepro
oducerswho
osecollectiveoutputofadomesticllikeproductconstitutesamajor
proportio
onofthetottaldomesticcproductionoftheprodduct.7Inturrn,theTarifffActdefiness
domesticlikeprodu
uctasapro
oductwhich
hislike,orinntheabsencceoflike,mo
ostsimilarin
n
characteristicsanduseswith,the
earticlesub
bjecttoaninnvestigation..8
Thedecisionregardingth
heappropriaatedomesticclikeproducct(s)inaninvvestigationiisa
factualdetermination,andtheC
Commissionhasappliedthestatutorrystandardoflikeor
mostsim
milarincharracteristicsaanduseson
nacasebyccasebasis.9Nosinglefactoris
dispositivve,andtheC
Commissionmayconsiderotherfacctorsitdeem
msrelevantb
basedonthee
10
factsofaaparticularinvestigation
n. TheCom
mmissionloooksforcleardividinglineesamong
possiblelikeproducttsanddisreggardsminorvariations.111AlthoughttheCommisssionmustacccept

CRatIV1;PR
RatIV1.
CRatVII3;PRatVII23.
6
19U.S.C.16
677(4)(A).
7
19U.S.C.16
677(4)(A).
8
19U.S.C.16
677(10).
9
SSee,e.g.,Cleo
oInc.v.UniteedStates,501
1F.3d1291,11299(Fed.Cirr.2007);NECCorp.v.
DepartmeentofCommeerce,36F.Sup
pp.2d380,383(Ct.IntlT rade1998);N
NipponSteelC
Corp.v.Uniteed
States,19
9CIT450,455
5(1995);TorrringtonCo.v.UnitedStatess,747F.Supp
p.744,749n.3(Ct.IntlTrrade
1990),afffd,938F.2d1
1278(Fed.Cirr.1991)(eve
erylikeproduuctdeterminaationmustbeemadeonth
he
particularrrecordatissueandtheu
uniquefactso
ofeachcase).TheComm
missiongenerallyconsiderrsa
numbero
offactorsinclu
udingthefollowing:(1)ph
hysicalcharaccteristicsand
duses;(2)inteerchangeabiliity;
(3)channelsofdistribu
ution;(4)custtomerandproducerperceeptionsoftheeproducts;(5
5)common
manufacturingfacilitie
es,production
nprocesses,aandproductioonemployeess;and,whereeappropriate,(6)
price.SeeeNippon,19C
CITat455n.4
4;TimkenCo.v.UnitedStaates,913F.Su
upp.580,584
4(Ct.IntlTraade
1996).
10
0
See,e.g.,S.R
Rep.No.962
249at9091((1979).
11
1
See,e.g.,Nip
ppon,19CITaat455;Torrin
ngton,747F. Supp.at74849;seealsoS.Rep.No.96
6249
at9091(Congresshassindicatedthatthelikeproductstandaardshouldno tbeinterprettedinsuchaa
narrowfaashionastopermitminord
differencesin
nphysicalchaaracteristicso
orusestolead
dtothe
conclusionthatthepro
oductandartticlearenotlikeeachothher,norshoulldthedefinitionoflike
productb
beinterpretedinsuchafaashionastop
preventconsidderationofan
nindustryadverselyaffectted
bytheimportsundercconsideration
n.).
5


Commercesdeterminationastothescopeoftheimportedmerchandisethatissubsidized
and/orsoldatlessthanfairvalue,12theCommissiondetermineswhatdomesticproductislike
theimportedarticlesCommercehasidentified.13TheCommissionmay,whereappropriate,
includedomesticarticlesinthedomesticlikeproductinadditiontothosedescribedinthe
scope.14

A.
ScopeDefinition

Initsnoticeofinitiation,Commercedefinedtheimportedmerchandisewithinthescope
ofthisinvestigationas:

Forpurposesofthisinvestigation,thetermlargeresidentialwashersdenotesall
automaticclotheswashingmachines,regardlessoftheorientationoftherotationalaxis,
withacabinetwidth(measuredfromitswidestpoint)ofatleast24.5inches(62.23cm)
andnomorethan32.0inches(81.28cm),exceptasnotedbelow.
Alsocoveredarecertainpartsusedinlargeresidentialwashers,namely:(1)Allcabinets,
orportionsthereof,designedforuseinlargeresidentialwashers;(2)allassembledtubs
designedforuseinlargeresidentialwasherswhichincorporate,ataminimum:(a)atub;
and(b)aseal;(3)allassembledbasketsdesignedforuseinlargeresidentialwashers
whichincorporate,ataminimum:(a)asidewrapper;(b)abase;and(c)adrivehub;
and(4)anycombinationoftheforegoingpartsorsubassemblies.
Excludedfromthescopearestackedwasherdryersandcommercialwashers.Theterm
stackedwasherdryersdenotesdistinctwashinganddryingmachinesthatarebuilton
aunitaryframeandshareacommonconsolethatcontrolsboththewasherandthe
dryer.Thetermcommercialwasherdenotesanautomaticclotheswashingmachine
designedforthepayperusesegmentmeetingeitherofthefollowingtwodefinitions:

12

See,e.g.,USEC,Inc.v.UnitedStates,34Fed.Appx725,730(Fed.Cir.2002)(TheITCmaynot
modifytheclassorkindofimportedmerchandiseexaminedbyCommerce.);AlgomaSteelCorp.v.
UnitedStates,688F.Supp.639,644(Ct.IntlTrade1988),affd,865F.3d240(Fed.Cir.),cert.denied,
492U.S.919(1989).
13
HosidenCorp.v.AdvancedDisplayMfrs.,85F.3d1561,1568(Fed.Cir.1996)(theCommission
mayfindasinglelikeproductcorrespondingtoseveraldifferentclassesorkindsdefinedbyCommerce);
Cleo,501F.3dat1298n.1(Commerces{scope}findingdoesnotcontroltheCommissions{like
product}determination.);Torrington,747F.Supp.at74852(affirmingtheCommissions
determinationdefiningsixlikeproductsininvestigationswhereCommercefoundfiveclassesorkinds).
14
See,e.g.,PureMagnesiumfromChinaandIsrael,Inv.Nos.701TA403and731TA89596
(Final),USITCPub.3467at8n.34(Nov.2001);Torrington,747F.Supp.at74849(holdingthatthe
Commissionisnotlegallyrequiredtolimitthedomesticlikeproducttotheproductadvocatedbythe
petitioner,coextensivewiththescope).


(1)(a)Itcontainspaymentsystemelectronics;(b)itisconfiguredwithanexternally
mountedsteelframeatleastsixincheshighthatisdesignedtohouseacoin/token
operatedpaymentsystem(whetherornottheactualcoin/tokenoperatedpayment
systemisinstalledatthetimeofimportation);(c)itcontainsapushbuttonuser
interfacewithamaximumofsixmanuallyselectablewashcyclesettings,withnoability
oftheendusertootherwisemodifywatertemperature,waterlevel,orspinspeedfora
selectedwashcyclesetting;and(d)theconsolecontainingtheuserinterfaceismadeof
steelandisassembledwithsecurityfasteners;or
(2)(a)itcontainspaymentsystemelectronics;(b)thepaymentsystemelectronicsare
enabled(whetherornotthepaymentacceptancedevicehasbeeninstalledatthetime
ofimportation)suchthat,innormaloperation,theunitcannotbeginawashcycle
withoutfirstreceivingasignalfromabonafidepaymentacceptancedevicesuchasan
electroniccreditcardreader;(c)itcontainsapushbuttonuserinterfacewitha
maximumofsixmanuallyselectablewashcyclesettings,withnoabilityoftheenduser
tootherwisemodifywatertemperature,waterlevel,orspinspeedforaselectedwash
cyclesetting;and(d)theconsolecontainingtheuserinterfaceismadeofsteelandis
assembledwithsecurityfasteners.
Alsoexcludedfromthescopeareautomaticclotheswashingmachinesthatmeetallof
thefollowingconditions:(1)Haveaverticalrotationalaxis;(2)aretoploading;(3)have
adrivetrainconsisting,interalia,of(a)apermanentsplitcapacitor(PSC)motor,(b)a
beltdrive,and(c)aflatwrapspringclutch.
Alsoexcludedfromthescopeareautomaticclotheswashingmachinesthatmeetallof
thefollowingconditions:(1)Haveahorizontalrotationalaxis;(2)arefrontloading;and
(3)haveadrivetrainconsisting,interalia,of(a)acontrolledinductionmotor(CIM),and
(b)abeltdrive.
Alsoexcludedfromthescopeareautomaticclotheswashingmachinesthatmeetallof
thefollowingconditions:(1)Haveahorizontalrotationalaxis;(2)arefrontloading;and
(3)havecabinetwidth(measuredfromitswidestpoint)ofmorethan28.5inches(72.39
cm).
Theproductssubjecttothisinvestigationarecurrentlyclassifiableundersubheadings
8450.20.0040and8450.20.0080oftheHarmonizedTariffScheduleoftheUnitedStates
(HTSUS).ProductssubjecttothisinvestigationmayalsoenterunderHTSUSsubheadings
8450.11.0040,8450.11.0080,8450.90.2000,and8450.90.6000.AlthoughtheHTSUS


subheadingsareprovidedforconvenienceandcustomspurposes,thewritten
descriptionofthemerchandisesubjecttothisinvestigationisdispositive.15

LRWsareautomaticclotheswashingappliancescapableofcleansingfabricsusingwater
anddetergentinconjunctionwithwash,rinse,andspincyclestypicallyprogrammedintothe
unit.16Theyareproducedineithertoploadorfrontloadconfigurations.17ToploadLRWs
possessdrumsthatspinonaverticalaxisandareloadedwithsoiledclothingthroughadooron
thetopoftheunit.18FrontloadLRWspossessdrumsthatspinonahorizontalortiltedaxisand
areloadedwithsoiledclothingthroughadoorinthefrontoftheunit.19AllLRWsareultimately
purchasedbyhouseholdsforuseinsinglefamilydwellings.20

ToploadLRWscanwashclothesusingeitheranagitatororanimpeller.Agitatorbased
toploadLRWs,knownasconventionaltopload(CTL)LRWs,arecharacterizedbytheiruseof
apoleshapedagitatorinsidethedrum,whichcleansclothesbyswirlingthemthoughdetergent
andwater.21Duetotheinteriorvolumeoccupiedbytheagitator,CTLLRWsgenerallyofferless
capacitythanothertypesofLRWs.22Tocomplywithmorestringentwaterandenergy
efficiencystandardsthattheU.S.DepartmentofEnergy(DOE)implementedonMarch7,
2015,WhirlpoolreengineereditsCTLLRWstoutilizehighefficiency(HE)agitatorsandmore
efficientshallowfilltechnology,whichrequirestheuseofspeciallyformulatedHE
detergent.23CertainagitatorbasedtoploadLRWsproducedbyGEqualifyforEnergyStar
certificationunderthenewstandards,asdomanyHEagitatorbasedtoploadLRWs.24

ImpellerbasedtoploadLRWsarecharacterizedbytheiruseofafanshapedimpellerat
thebaseofthedrum,whichcleansclothesbyliftinganddroppingthemintoasmallquantityof
waterandHEdetergent.25Theyreduceenergyconsumptionbyspinningclothesathighspeed,

15

LargeResidentialWashersFromthePeople'sRepublicofChina:InitiationofLessThanFair
ValueInvestigation,81Fed.Reg.1398(Jan.12,2016).Footnotesinthescopedefinitionfurther
describingthevarioustermsusedwithinthedefinitionhavebeenomitted.
16
CRatI12;PRatI10.
17
CRatI12;PRatI10.
18
CRatI13;PRatI11.
19
CRatI17;PRatI13.
20
CRatI12;PRatI10.
21
CRatI15;PRatI12.
22
CRatI15;PRatI12.
23
Petitionat14.Inthe201213investigations,theCommissiondefinedHEwashersasthose
qualifyingforTier3underthethreetierefficiencyguidelinespromulgatedbytheConsortiumforEnergy
Efficiency(CEE),whichwasreservedforthemostefficientwashers.CertainLargeResidentialWashers
fromKoreaandMexico,Inv.Nos.701TA488,731TA11991200(Final)USITCPub.4378at6(Feb.
2013)(USITCPub.4378)at67,I13.WhenaskedtodefineHELRWsunderthenewstandards,
Whirlpoolresponded***,LGresponded***,andSamsungresponded***.CRatIV5n.6;PRatIV3
n.6.
24
Petitionat14;PetitionersResponsestoStaffQuestionsat14;CRatI21n.56;PRatI16n.56.
25
CRatI15&n.31;PRatI13&n.31.


therebyextractingmorewaterandleavingclothesinneedoflesstimeinadryer.26After
March7,2015,however,manyimpellerbasedtoploadLRWsnolongerqualifiedforEnergy
StarcertificationundertheDOEsnewstandards.27

FrontloadLRWstypicallycleanclothesbetterandmoreefficientlythantoploadLRWs.
Theyconservewaterbyliftingclotheswithabaffleasthedrumspinsonahorizontalortilted
axisanddroppingthemintoasmallquantityofwaterandHEdetergent.28Likeimpellerbased
toploadLRWs,frontloadLRWsreduceenergyconsumptionbyspinningclothesathighspeeds
thatextractmorewaterandreducedryingtime.29FrontloadLRWsaremorelikelytoqualify
forEnergyStarcertificationundertheDOEsnewstandards.30

B.
ArgumentsoftheParties

WhirlpoolassertedinthepetitionthattheCommissionshoulddefineasingledomestic
likeproductthatiscoextensivewiththescopeoftheinvestigation,whichitmaintained
describesallLRWsproduceddomestically.31Petitionersubsequentlyagreedwithrespondents
insofarastheycontendthattheCommissionsdomesticlikeproductdefinitionforthis
investigationshouldencompasslowtechandfrontloadextrawidewashersexpressly
excludedfromthescope,totheextenttheyaredomesticallyproduced.32
RespondentsarguethattheCommissionshouldusethesamedomesticlikeproduct
definitioninthisinvestigationthatitusedinthe201213investigationsofLRWs,which
encompassedallLRWs.33TheyalsoclaimthattheCommissionshouldincludeoutofscopelow
techandfrontloadextrawidewashersinthedomesticlikeproduct,evenifnotproduced
domestically,becausethereisnomeaningfuldistinctionbetweensuchwashersandinscope
LRWsintermsoftheCommissionslikeproductfactors.34Inrespondentsview,definingthe
domesticlikeproducttoexcludelowtechandfrontloadextrawidewasherswouldpreclude
theCommissionfromcollectingvolumeandpricingdataonimportsofsuchwashers,orfrom
consideringtheirimpactonthedomesticindustry.35

26

CRatI15&n.31;PRatI13&n.31.
Petitionat1314;PetitionersResponsestoStaffQuestionsat11.
28
CRatI17;PRatI13.
29
CRatI17;PRatI13.
30
CRatI17;PRatI13.
31
Petitionat3536.
32
PetitionersPostconferenceBriefat21.Lowtechwashersexcludedfromthescopeinclude
toploadwasherscontainingaPSCmotor,beltdrivesystem,andaflatwrapspringclutch,andfrontload
washerscontainingbothacontrolledinductionmotorandabeltdrivesystem.LargeResidential
WashersFromthePeople'sRepublicofChina:InitiationofLessThanFairValueInvestigation,81Fed.
Reg.at1403.Extrawidewashersexcludedfromthescopearefrontloadwasherswithacabinetwidth
ofmorethan28.5inches.Id.
33
RespondentsPostconferenceBriefat5.
34
SeeRespondentsPostconferenceBriefat816.
35
RespondentsPostconferenceBriefat56,1718.Respondentsaremistakenthatthe
Commissionmayonlycollectimportdataonmerchandisecorrespondingtothedomesticlikeproduct.
(Continued)
27


C.

Analysis

Basedontherecordofthepreliminaryphaseofthisinvestigation,wedefineasingle
domesticlikeproductthatconsistsofbothallLRWswithinthescopeoftheinvestigationas
wellasthelowtechfrontloadwashersthatarespecificallyexcludedfromthescope.InLRWs
fromKoreaandMexico,theCommissionfoundnocleardividinglinesbetweendomestically
producedwashersofdifferenttypesorcapacities.36AstheCommissionexplained,washersof
alltypesandcapacitiesweregenerallyinterchangeableandsimilarintermsoftheirphysical
characteristicsanduses;channelsofdistribution;manufacturingfacilities,processes,and
employees;consumerandproducerperceptions;and,tosomeextent,price.37Accordingly,the
Commissiondefinedasingledomesticlikeproductencompassingalltypesandcapacitiesof
LRWs.38AllpartiesagreethatthisaspectoftheCommissionslikeproductanalysisfromLRWs
fromKoreaandMexicoremainsvalid,39andthereisnoevidenceontherecordsuggesting
otherwise.Wethereforeincludewithinthedomesticlikeproductalltypesandcapacitiesof
LRWswithinthescopeoftheinvestigation.
Wealsodefinethedomesticlikeproducttoincludethelowtechfrontloadwashersthat
are***butarespecificallyexcludedfromthescopeoftheinvestigation.40Allpartiesagree
thatthereisnocleardividinglineseparatingoutofscopelowtechfrontloadwashersfromin
scopeLRWsintermsoftheCommissionslikeproductfactors.41Indeed,theonlyphysical
differencebetweenoutofscopelowtechfrontloadwashersandinscopeLRWsisthe
combinationofacontrolledinductionmotorandabeltdrivesysteminlowtechfrontload
washers,whichsomeconsumersandproducersmayperceiveaslessadvantageousthanthe
directdrivesystemfoundinmanyinscopeLRWs.42Becauseoutofscopelowtechfrontload

(Continued)
TheCommissionmaycollectanyinformationthatitdeemsrelevanttoitsinvestigations,including
informationonoutofscopemerchandisethatmaybeadverselyimpactingdomesticproducersofthe
likeproduct.Partiesareinvitedtorequestthecollectionofdataonimportsofoutofscopewashers,
andtoexplainthepertinenceofsuchdata,intheircommentsonthedraftquestionnairesinanyfinal
phaseoftheinvestigation.
36
USITCPub.4378at8,11.Specifically,theCommissionfoundnocleardividinglinesbetween
CTL,HETL,andHEFLwashersorbetweentoploadwasherswithacapacitylessthan3.7cubicfeet,
whichwereproduceddomesticallybutexcludedfromthescopeoftheinvestigations,andthosewith
largercapacities.Id.
37
USITCPub.4378at911(theCommissionrecognizedthatwasherswithacapacityoflessthan
3.7cubicfeetweregenerallylowerpricedthaninscopeLRWs,butnotedthatpricesoverlappedto
someextent);seealsoLargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731
TA11991200(Preliminary),USITCPub.4306(Feb.2012)at79(findingCTL,HETL,andHEFLLRWs
similarintermsofthesixlikeproductfactors);CRatI3134;PRatI2325.
38
USITCPub.4378at11.
39
PetitionersPostconferenceBriefat21;RespondentsPostconferenceBriefat5.
40
DomesticProducersQuestionnaireResponseof***atQuestionsII3aandII5.
41
PetitionersPostconferenceBriefat21;RespondentsPostconferenceBriefat89.
42
SeeConferenceTr.at36,7273(Tubman),23637(Brindle),237(Herring).


washersareotherwisesimilarto
oinscopeLR
RWsintermssoftheirph
hysicalcharacteristicsan
nd
uses,asw
wellasconsumerandprroducerpercceptions,succhwashersw
wouldbeintterchangeab
ble
43
withinscopeLRWsttosomedeggree. Outofscopelow
wtechfronttloadwasheersarealso
***.44Similarlyabse
entfromtherecordisinfformationoonthechann
nelsofdistrib
butionandp
prices
45
5
oflowte
echfrontloadwashers. Onbalance,therecorddofthepreliminaryphaaseofthis
investigaationindicate
esthatthere
eisnocleardividinglineebetweeno
outofscopelowtechfro
ont
loadwashersandinscopeLRWss.Wetherefforedefinetthedomesticlikeproducttoincludee
outofsccopelowtecchfrontload
dwashers.
Wedonotin
W
cludeoutoffscopelowttechtoploaadwashersaandfrontloaadextrawide
washersinthedome
esticlikepro
oduct,howevver.Thereccordindicateesthatsuchwashersareenot
produced
ddomestically.Specifically,respond
dingdomestticproducerrs***.46Wh
hirlpoolhas
postpone
edtheintrod
ductionofitsextrawide
ewasherplaatform,repo
ortedlyduettosubject
imports,andknowso
ofnootherd
domesticproductionofsuchwasheers.47Absentevidenceo
of
domesticcproduction
nofsuchwasshers,wehaavenobasisfordetermiiningwhetheeraclear
dividingllineseparate
esdomesticaallyproduce
edoutofscoopelowtech
handfrontloadextraw
wide
washersfrominscop
peLRWsinttermsofourrlikeproducctfactors,an
nd,inanyevvent,undertthese
circumstances,inclussionorexclu
usioncanhavenoimpacctontheCom
mmissionsd
determinationin
48
nsistingofalll
thisinvesstigation. Consequenttly,wedefineasingledoomesticlikeproductcon
LRWswitthinthescop
peoftheinvvestigationaandlowtechhfrontloadw
washersexccludedfromthe
scopede
efinition,buttnotlowtecchtoploadw
washersand frontloadeextrawidew
washersexcluded
49
fromthescopedefin
nition.

IV.

DomesticIn
D
ndustry

Thedomesticcindustryisdefinedasthedomesticcproducerssasawholeofadomestic
likeproduct,orthose
eproducerswhosecolle
ectiveoutpuutofadomesticlikeprod
ductconstitu
utes
amajorp
proportiono
ofthetotald
domesticpro
oductionofttheproduct..50Indefiningthedom
mestic

43
3

SeeConferenceTr.at237
7(Brindle)(sttatingthatdirrectdriveisnotadistingu
uishing
characteristicin{a}con
nsumerspurrchasingdecission)
44
4
SeeDomestiicProducersQuestionnairreResponseoof***atQueestionI2,II3
3a.
45
5
SeeDomestiicProducersQuestionnairreResponseoof***atQueestionsII910
0.
46
6
SeeDomestiicProducersQuestionnairreResponsessof***atQu
uestionII5.
47
7
ConferenceTr.at47(Liottine),71(Levyy).
48
8
Inanalyzingwhethertoin
ncludearticle
esinthedom esticlikeproductinadditiiontothose
described
dinthescope
e,theCommisssionhasbase
editslikeprooductdeterminationonassixfactortesttthat
compared
ddomesticallyyproducedp
productswithinthescopettothoseoutssidethescopee.SeeLarge
Residentia
alWashersfrromKoreaandMexico,USITCPub.43788at8.
49
9
Althoughthe
erecordconttainslittleinfo
ormationon domesticallyproducedlow
wtechfrontlload
washers,domesticpro
oductionofsu
uchwashersaaccountedforr***percenttoftotaldom
mesticproducction
ofLRWs.SeeDomesticProducersQuestionnairreResponseoof***atQueestionII3a.TTheinclusionof
suchwash
hersinthedo
omesticlikep
productthereforehaslittleeeffectonthedatarelevanttoourinju
ury
analysis.
50
0
19U.S.C.1
1677(4)(A).

10


industry,theCommissionsgene
eralpracticehasbeentooincludeinttheindustryproducerso
ofall
domesticcproduction
nofthelikep
product,whethertollprroduced,cap
ptivelyconsumed,orsoldin
thedome
esticmerchaantmarket.
Wedefineth
W
edomesticiindustryasaalldomesticproducerso
ofthelikeprroduct,inclu
uding
51
Alliance,GeneralElectric,Staberr,andWhirlp
pool.

V.

NegligibleI
N
Imports

PursuanttoSSection771(2
24)oftheTaariffAct,impportsfromaasubjectcou
untryof
merchandisecorresp
pondingtoadomesticlikeproducttthataccounttforlessthaan3percentof
allsuchm
merchandise
eimportedin
ntotheUnittedStatesduuringthemo
ostrecent12
2monthsfor
whichdaataareavailaableprecedingthefilinggofthepetittionshallbedeemednegligible.52
Basedonimp
porterquestionnaireresponses,subbjectimportssfromChinaaaccountedfor
Wsin2014.53Becausesubjectimpo
ortswereweellabovethee
***percentofallimportsofLRW
statutoryynegligibilityythreshold,wefindthattsubjectim portsareno
otnegligible..

VI.

Reasonable
R
eIndicationofMaterialInjury byReason
nofSubjecctImportss

A.
A

LegalStandard

In
ntheprelimiinaryphaseofantidump
pingandcouuntervailingdutyinvestigations,the
Commisssiondetermiineswhethe
erthereisarreasonableiindicationth
hatanindusttryintheUn
nited
Statesismateriallyin
njuredorthrreatenedwithmaterialiinjurybyreaasonoftheimportsunder
investigaation.54Inm
makingthisde
etermination,theComm
missionmusttconsiderth
hevolumeo
of
subjectim
mports,theiireffectonp
pricesforthe
edomesticl ikeproduct,,andtheirim
mpacton
domesticcproducersofthedome
esticlikepro
oduct,butonnlyinthecontextofU.S.production
n
55
operations. Thestaatutedefine
esmaterialinjuryashharmwhichisnotinconsequential,
56
immaterial,orunimp
portant. IInassessingwhethertheereisareasonableindiccationthatthe

51
1

CR/PRatTab
bleIII1.Nod
domesticprod
ducerisrelattedtoanexpo
orterorimpo
orterofthesu
ubject
merchand
dise,seeCR/P
PRatTableIII1,and***.CRatIII16;PPRatIII9.Acccordingly,th
herearenoreelated
partyissuesinthisinve
estigation.
52
2
19U.S.C.1671b(a),16
673b(a),1677(24)(A)(i),16777(24)(B);seeealso15C.F.R.2013.1
(developingcountriesforpurposesof19U.S.C.
1677(36)).
53
3
CRatIV8;P
PRatIV4.
54
4
19U.S.C.1671b(a),16
673b(a).TheTTradePrefereencesExtensiionActof201
15,Pub.L.11
1427,
amended theprovision
nsoftheTarifffActpertain
ningtoComm
missiondeterm
minationsofrreasonable
nofmaterialiinjuryandthrreatofmaterrialinjurybyrreasonofsub
bjectimportsincertain
indication
respects.Wehaveapp
pliedtheseam
mendmentsh
here.
55
5
19U.S.C.1
1677(7)(B).TheCommissio
onmayconssidersuchoth
hereconomiccfactorsasarre
relevantttothedeterm
minationbutshallidentiffyeach{such}}factor...{a}ndexplaininfullitsrelevaance
tothedettermination.19U.S.C.1677(7)(B).
56
6
19U.S.C.1
1677(7)(A).

11


domesticindustryismateriallyinjuredbyreasonofsubjectimports,weconsiderallrelevant
economicfactorsthatbearonthestateoftheindustryintheUnitedStates.57Nosinglefactor
isdispositive,andallrelevantfactorsareconsideredwithinthecontextofthebusinesscycle
andconditionsofcompetitionthataredistinctivetotheaffectedindustry.58
AlthoughthestatuterequirestheCommissiontodeterminewhetherthereisa
reasonableindicationthatthedomesticindustryismateriallyinjuredbyreasonofunfairly
tradedimports,59itdoesnotdefinethephrasebyreasonof,indicatingthatthisaspectofthe
injuryanalysisislefttotheCommissionsreasonableexerciseofitsdiscretion.60Inidentifyinga
causallink,ifany,betweensubjectimportsandmaterialinjurytothedomesticindustry,the
Commissionexaminesthefactsofrecordthatrelatetothesignificanceofthevolumeandprice
effectsofthesubjectimportsandanyimpactofthoseimportsontheconditionofthedomestic
industry.Thisevaluationunderthebyreasonofstandardmustensurethatsubjectimports
aremorethanaminimalortangentialcauseofinjuryandthatthereisasufficientcausal,not
merelyatemporal,nexusbetweensubjectimportsandmaterialinjury.61
Inmanyinvestigations,thereareothereconomicfactorsatwork,someorallofwhich
mayalsobehavingadverseeffectsonthedomesticindustry.Sucheconomicfactorsmight
includenonsubjectimports;changesintechnology,demand,orconsumertastes;competition
amongdomesticproducers;ormanagementdecisionsbydomesticproducers.Thelegislative
historyexplainsthattheCommissionmustexaminefactorsotherthansubjectimportsto
ensurethatitisnotattributinginjuryfromotherfactorstothesubjectimports,thereby
inflatinganotherwisetangentialcauseofinjuryintoonethatsatisfiesthestatutorymaterial
injurythreshold.62Inperformingitsexamination,however,theCommissionneednotisolate

57

19U.S.C.1677(7)(C)(iii).
19U.S.C.1677(7)(C)(iii).
59
19U.S.C.1671b(a),1673b(a).
60
AngusChemicalCo.v.UnitedStates,140F.3d1478,148485(Fed.Cir.1998)({T}hestatute
doesnotcompelthecommissionerstoemploy{aparticularmethodology}.),affg944F.Supp.943,
951(Ct.IntlTrade1996).
61
TheFederalCircuit,inaddressingthecausationstandardofthestatute,hasobservedthat
{a}slongasitseffectsarenotmerelyincidental,tangential,ortrivial,theforeignproductsoldatless
thanfairvaluemeetsthecausationrequirement.NipponSteelCorp.v.USITC,345F.3d1379,1384
(Fed.Cir.2003).ThiswasreaffirmedinMittalSteelPointLisasLtd.v.UnitedStates,542F.3d867,873
(Fed.Cir.2008),inwhichtheFederalCircuit,quotingGeraldMetals,Inc.v.UnitedStates,132F.3d716,
722(Fed.Cir.1997),statedthatthiscourtrequiresevidenceintherecordtoshowthattheharm
occurredbyreasonoftheLTFVimports,notbyreasonofaminimalortangentialcontributionto
materialharmcausedbyLTFVgoods.SeealsoNipponSteelCorp.v.UnitedStates,458F.3d1345,
1357(Fed.Cir.2006);TaiwanSemiconductorIndustryAssnv.USITC,266F.3d1339,1345(Fed.Cir.
2001).
62
SAA,H.R.Rep.103316,Vol.Iat85152(1994)({T}heCommissionmustexamineother
factorstoensurethatitisnotattributinginjuryfromothersourcestothesubjectimports.);S.Rep.96
249at75(1979)(theCommissionwillconsiderinformationwhichindicatesthatharmiscausedby
factorsotherthanlessthanfairvalueimports.);H.R.Rep.96317at47(1979)(inexaminingthe
overallinjurybeingexperiencedbyadomesticindustry,theITCwilltakeintoaccountevidence
presentedtoitwhichdemonstratesthattheharmattributedbythepetitionertothesubsidizedor
(Continued)
58

12


theinjurycausedbyotherfactorsfrominjurycausedbyunfairlytradedimports.63Nordoesthe
byreasonofstandardrequirethatunfairlytradedimportsbetheprincipalcauseofinjury
orcontemplatethatinjuryfromunfairlytradedimportsbeweighedagainstotherfactors,such
asnonsubjectimports,whichmaybecontributingtooverallinjurytoanindustry.64Itisclear
thattheexistenceofinjurycausedbyotherfactorsdoesnotcompelanegative
determination.65
Assessmentofwhethermaterialinjurytothedomesticindustryisbyreasonofsubject
importsdoesnotrequiretheCommissiontoaddressthecausationissueinanyparticularway
aslongastheinjurytothedomesticindustrycanreasonablybeattributedtothesubject
importsandtheCommissionensure{s}thatitisnotattributinginjuryfromothersourcesto
thesubjectimports.6667Indeed,theFederalCircuithasexaminedandaffirmedvarious
Commissionmethodologiesandhasdisavowedrigidadherencetoaspecificformula.68

(Continued)
dumpedimportsisattributabletosuchotherfactors;thosefactorsincludethevolumeandpricesof
nonsubsidizedimportsorimportssoldatfairvalue,contractionindemandorchangesinpatternsof
consumption,traderestrictivepracticesofandcompetitionbetweentheforeignanddomestic
producers,developmentsintechnologyandtheexportperformanceandproductivityofthedomestic
industry);accordMittalSteel,542F.3dat877.
63
SAAat85152({T}heCommissionneednotisolatetheinjurycausedbyotherfactorsfrom
injurycausedbyunfairimports.);TaiwanSemiconductorIndustryAssn,266F.3dat1345.({T}he
Commissionneednotisolatetheinjurycausedbyotherfactorsfrominjurycausedbyunfairimports....
Rather,theCommissionmustexamineotherfactorstoensurethatitisnotattributinginjuryfromother
sourcestothesubjectimports.(emphasisinoriginal));AsociaciondeProductoresdeSalmonyTrucha
deChileAGv.UnitedStates,180F.Supp.2d1360,1375(Ct.IntlTrade2002)({t}heCommissionisnot
requiredtoisolatetheeffectsofsubjectimportsfromotherfactorscontributingtoinjuryormake
brightlinedistinctionsbetweentheeffectsofsubjectimportsandothercauses.);seealsoSoftwood
LumberfromCanada,Inv.Nos.701TA414and731TA928(Remand),USITCPub.3658at10001(Dec.
2003)(Commissionrecognizedthat{i}fanallegedotherfactorisfoundnottohaveorthreatentohave
injuriouseffectstothedomesticindustry,i.e.,itisnotanothercausalfactor,thenthereisnothingto
furtherexamineregardingattributiontoinjury),citingGeraldMetals,132F.3dat722(thestatute
doesnotsuggestthatanimporterofLTFVgoodscanescapecountervailingdutiesbyfindingsome
tangentialorminorcauseunrelatedtotheLTFVgoodsthatcontributedtotheharmfuleffectson
domesticmarketprices.).
64
S.Rep.96249at7475;H.R.Rep.96317at47.
65
SeeNippon,345F.3dat1381(anaffirmativematerialinjurydeterminationunderthestatute
requiresnomorethanasubstantialfactorshowing.Thatis,thedumpingneednotbethesoleor
principalcauseofinjury.).
66
MittalSteel,542F.3dat87778;seealsoid.at873(WhiletheCommissionmaynotenteran
affirmativedeterminationunlessitfindsthatadomesticindustryismateriallyinjuredbyreasonof
subjectimports,theCommissionisnotrequiredtofollowasinglemethodologyformakingthat
determination...{andhas}broaddiscretionwithrespecttoitschoiceofmethodology.)citingUnited
StatesSteelGroupv.UnitedStates,96F.3d1352,1362(Fed.Cir.1996)andS.Rep.96249at75.Inits
decisioninSwiffTrainv.UnitedStates,792F.3d1355(Fed.Cir.2015),theFederalCircuitaffirmedthe
CommissionscausationanalysisascomportingwiththeCourtsguidanceinMittal.

13


TheFederalCircuitsdecisionsinGeraldMetals,Bratsk,andMittalSteelallinvolved
casesinwhichtherelevantotherfactorwasthepresenceinthemarketofsignificant
volumesofpricecompetitivenonsubjectimports.TheCommissioninterpretedtheFederal
CircuitsguidanceinBratskasrequiringittoapplyaparticularadditionalmethodology
followingitsfindingofmaterialinjuryincasesinvolvingcommodityproductsandasignificant
marketpresenceofpricecompetitivenonsubjectimports.69Theadditional
replacement/benefittestlookedatwhethernonsubjectimportsmighthavereplacedsubject
importswithoutanybenefittotheU.S.industry.TheCommissionappliedthatspecific
additionaltestinsubsequentcases,includingtheCarbonandCertainAlloySteelWireRodfrom
TrinidadandTobagodeterminationthatunderliestheMittalSteellitigation.
MittalSteelclarifiesthattheCommissionsinterpretationofBratskwastoorigidand
makesclearthattheFederalCircuitdoesnotrequiretheCommissiontoapplyanadditional
testnoranyonespecificmethodology;instead,thecourtrequirestheCommissiontohave
evidenceintherecordtoshowthattheharmoccurredbyreasonoftheLTFVimports,and
requiresthattheCommissionnotattributeinjuryfromnonsubjectimportsorotherfactorsto
subjectimports.70Accordingly,wedonotconsiderourselvesrequiredtoapplythe
replacement/benefittestthatwasincludedinCommissionopinionssubsequenttoBratsk.
TheprogressionofGeraldMetals,Bratsk,andMittalSteelclarifiesthat,incases
involvingcommodityproductswherepricecompetitivenonsubjectimportsareasignificant

(Continued)
67
ViceChairmanPinkertandCommissionerKieffdonotjointhisparagraphorthefollowing
threeparagraphs.TheypointoutthattheFederalCircuit,inBratsk,444F.3d1369,andMittalSteel,
heldthattheCommissionisrequired,incertaincircumstanceswhenanalyzingpresentmaterialinjury,
toconsideraparticularissuewithrespecttotheroleofnonsubjectimports,withoutrelianceupon
presumptionsorrigidformulas.TheCourthasnotprescribedaspecificmethodofexpositionforthis
consideration.MittalSteelexplainsasfollows:
WhatBratskheldisthatwherecommodityproductsareatissueandfairlytraded,price
competitive,nonsubjectimportsareinthemarket,theCommissionwouldnotfulfill
itsobligationtoconsideranimportantaspectoftheproblemifitfailedtoconsider
whethernonsubjectornonLTFVimportswouldhavereplacedLTFVsubjectimports
duringtheperiodofinvestigationwithoutacontinuingbenefittothedomesticindustry.
444F.3dat1369.Underthosecircumstances,BratskrequirestheCommissionto
considerwhetherreplacementoftheLTFVsubjectimportsmighthaveoccurredduring
theperiodofinvestigation,anditrequirestheCommissiontoprovideanexplanationof
itsconclusionwithrespecttothatfactor.
542F.3dat878.
68
NucorCorp.v.UnitedStates,414F.3d1331,1336,1341(Fed.Cir.2005);seealsoMittalSteel,
542F.3dat879(BratskdidnotreadintotheantidumpingstatuteaProcrusteanformulafor
determiningwhetheradomesticinjurywasbyreasonofsubjectimports.).
69
MittalSteel,542F.3dat87579.
70
MittalSteel,542F.3dat873(quotingfromGeraldMetals,132F.3dat722),87579&n.2
(recognizingtheCommissionsalternativeinterpretationofBratskasaremindertoconductanon
attributionanalysis).

14


factorintheU.S.market,theCourtwillrequiretheCommissiontogivefullconsideration,with
adequateexplanation,tononattributionissueswhenitperformsitscausationanalysis.71
Thequestionofwhetherthematerialinjurythresholdforsubjectimportsissatisfied
notwithstandinganyinjuryfromotherfactorsisfactual,subjecttoreviewunderthesubstantial
evidencestandard.72CongresshasdelegatedthisfactualfindingtotheCommissionbecauseof
theagencysinstitutionalexpertiseinresolvinginjuryissues.73

B.
ConditionsofCompetitionandtheBusinessCycle

Thefollowingconditionsofcompetitioninformouranalysisofwhetherthereisa
reasonableindicationofmaterialinjurybyreasonofsubjectimports.

1.
DemandConditions

AbouttwothirdsofdemandforLRWsisdrivenbyconsumersneedingtoreplace
existingwashersattheendoftheirfunctionallives,otherwiseknownasreplacement
demand,withthebalancedrivenbyhomesales,renovations,andnewconstruction.74Most
respondingdomesticproducersandimportersreportedthatU.S.demandforLRWsincreased
duringtheperiodofinvestigation,duetoincreasedactivityinthehousingmarketand,toa
lesserextent,thesatisfactionofpentupreplacementdemandfromthelastrecession.75

71

Tothatend,aftertheFederalCircuitissueditsdecisioninBratsk,theCommissionbeganto
presentpublishedinformationorsendoutinformationrequestsinthefinalphaseofinvestigationsto
producersinnonsubjectcountriesthataccountedforsubstantialsharesofU.S.importsofsubject
merchandise(if,infact,therewerelargenonsubjectimportsuppliers).Inordertoprovideamore
completerecordfortheCommissionscausationanalysis,theserequeststypicallyseekinformationon
capacity,production,andshipmentsoftheproductunderinvestigationinthemajorsourcecountries
thatexporttotheUnitedStates.TheCommissionplanstocontinueutilizingpublishedorrequested
informationinthefinalphaseofinvestigationsinwhichtherearesubstantiallevelsofnonsubject
imports.
72
Weprovideinourrespectivediscussionsofvolume,priceeffects,andimpactafullanalysisof
otherfactorsallegedtohavecausedanymaterialinjuryexperiencedbythedomesticindustry.
73
MittalSteel,542F.3dat873;NipponSteelCorp.,458F.3dat1350,citingU.S.SteelGroup,96
F.3dat1357;S.Rep.96249at75(ThedeterminationoftheITCwithrespecttocausationis...complex
anddifficult,andisamatterforthejudgmentoftheITC.).
74
CRatII10;PRatII5.
75
CRatII12;PRatII67;CR/PRatTableII3.Inadditiontothefactorsinfluencingdemand
above,respondentsarguethatoveralldemandforLRWsincreasedduringtheperiodofinvestigationas
aresultofproductinnovationsintroducedbyLGandSamsung.RespondentsPostconferenceBriefat
32.Inresponse,petitionerclaimsthatnewfeatureshavelittleeffectonLRWdemand.Petitioners
PostconferenceBriefat19(citingConferenceTr.at122(Liotine)).PetitioneralsoassertsthatWhirlpool
wastheinnovationleaderduringtheperiodofinvestigation,andthatmostoftheinnovationsclaimed
byLGandSamsungwereintroducedpriorto2013.Id.at12,Attachment8;ConferenceTr.at2629
(Tubman),58(Liotine).TherecordindicatesthatLG,Samsung,andWhirlpooleachintroducedmany
newfeaturesintotheLRWmarketduringtheperiodofinvestigation,althoughtheappealofthese
(Continued)

15


ApparentU.S.consumptionofLRWsincreasedby***percentfrom2012to2014,from***
unitsin2012to***unitsin2013and***unitsin2014.76ApparentU.S.consumptionwas***
unitsinJanuarySeptember(interim)2015,up***percentfrom***unitsininterim2014.77
TheapparentconsumptiondatareflectdemandforthedifferenttypesofLRWs
describedinourdiscussionofthedomesticlikeproduct,includingagitatorandimpellerbased
toploadLRWsandfrontloadLRWs.78AlthoughtheCommissioncategorizedwashersaseither
CTL,HEtopload(HETL),orHEfrontload(HEFL)inthe201213investigations,regulatory
changessincethattimehaveblurredthedistinctionbetweenCTLandHETLLRWs.79
Specifically,onMarch7,2015,theDOEimplementedregulationsthatdramaticallyincreased
boththeminimumefficiencystandardsforallLRWsandtheefficiencystandardsrequiredfor
EnergyStarcertification,substantiallydecreasingthevolumeofwaterthatcanbeusedinthe
LRWwashandrinsecycles.80Inresponse,WhirlpoolreengineereditsCTLLRWstoutilizeHE
agitatorsandmoreefficientshallowfilltechnology,whichrequirestheuseofspecially
formulatedHEdetergent.81Consequently,manyHEagitatorbasedtoploadLRWsqualifyfor
EnergyStarunderthenewstandards,unlikemostoftheCTLwashersinthe201213
investigations,asdocertainagitatorbasedtoploadLRWsproducedbyGE.82Conversely,many
impellerbasedtoploadLRWs,whichwouldhavebeencategorizedasHETLLRWsinthe2012
13investigations,nolongerqualifyforEnergyStarcertificationunderthenewstandards.83
FrontloadLRWsaremorelikelytoqualifyforEnergyStarunderthenewstandards.84
CompetitionintheU.S.marketoccursattwolevelsoftrade:salesbydomestic
producersandimporterstoretailer/distributorsandsalesbyretailerstoconsumers.Domestic
producersandimportersmadeover99percentoftheirsalestoretailer/distributors,which
includelargeretailersandbuyersgroups,whichpurchasewashersonbehalfofsmaller,

(Continued)
specificfeaturestodownstreamcustomersisuncertain.CR/PRatTableI3(LGreportedthreenew
features,Samsungreportedeightnewfeatures,andWhirlpoolreported15newfeatures).
76
CR/PRatTableIV4.
77
CR/PRatTableIV4.
78
SeeCRatI1218;PRatI1014.
79
SeeConferenceTr.at8183(Tubman),223(Brindle).Inthe201213investigations,the
CommissionfoundthatcertainCTLwashermodelsqualifiedforEnergyStarcertification,butthatnone
qualifiedasTier3HEmachinesunderCEEguidelines.USITCPub.4378at6,I13&n.61.Bycontrast,
theCommissionfoundthatallimpellerbasedtoploadwashersandfrontloadwashersqualifiedasTier
3HEmachines,andthusdefinedthemasHETLandHEFLwashers.USITCPub.4378at67.These
distinctionsgenerallyremainedvaliduntilMarch7,2015,whennewenergyefficiencystandards
becameeffective.CRatIV5n.6;PRatIV3n.6.Underthenewstandards,LGandWhirlpooldefineHE
LRWsasthose***.Id.SamsungdefinesHELRWsasthose***.Id.
80
CRatI2021;PRatI1516;CR/PRatTableI2.
81
Petitionat14.
82
CRatI21n.56,IV5n.6;PRatI16n.56,IV3n.6;seealsoPetitionat14;Petitioners
ResponsestoStaffQuestionsat14.
83
CRatI21n.56;PRatI16n.56;CR/PRatTableIII6(***);seealsoPetitionat1314;
PetitionersResponsestoStaffQuestionsat11.
84
CRatI17;PRatI13.

16


oftenregionalretailers.85FivelargeapplianceretailersBestBuy,hhgregg,HomeDepot,
Lowes,andSearstogetheraccountformorethantwothirdsofLRWsalesintheU.S.market,
withbuyersgroupsaccountingformostofthebalance.86Morethan10percentofLRWsales
areoriginalequipmentmanufacturer(OEM)salestoSearsforresaleundertheKenmore
brand.87Consistentwithourpracticeofexaminingpricesforthefirstarmslengthtransactions
intheU.S.market,wehavefocusedouranalysisofcompetitionandpricingintheU.S.washer
marketonsalesbydomesticproducersandimporterstoretailer/distributors.88Nevertheless,
wealsorecognizethatretailconsumerpreferencesinfluenceretailerspurchasingdecisions.89

2.
SupplyConditions

TheU.S.LRWmarketiscurrentlyservedbyfourdomesticproducers,whichaccounted
for***percentofapparentU.S.consumptionin2014;subjectimports,whichaccountedfor
***percentofapparentU.S.consumptionin2014;andnonsubjectimports,whichaccounted
for***percentofapparentU.S.consumptionin2014.90
ThedomesticindustryconsistsofAlliance,GE,Staber,andWhirlpool,withWhirlpool
aloneaccountingfor***percentofdomesticindustryproductionduringtheperiodof
investigation.91GEandWhirlpoolcontinuedtheirrepatriationofLRWproduction,whichbegan
duringthe201213investigations,duringtheperiodofthisinvestigation,andinvestedin
domesticproductioncapacitythatreplacedimports.92GEreplacedLRWsimportedfrom***
withdomesticallyproducedtoploadLRWsin2012anddomesticallyproducedfrontloadLRWs
in2013.93AftercommencingdomesticfrontloadLRWproductionin2010,Whirlpool***.94On
January15,2016,GEannouncedthatithadenteredintoadefinitiveagreementtosellits
appliancedivisiontoaChinesecompany,QuingdaoHaierCo.,Ltd.,for$5.4billion.95

85

CRatII1,3;PRatII12;CR/PRatTableII1.
CRatII1;PRatII2.
87
CRatII12;PRatII1.
88
SeeLargeResidentialWashersfromKoreaandMexico,USITCPub.4378at1819;Bottom
MountCombinationRefrigeratorFreezersfromKoreaandMexico,Inv.Nos.701TA477and731TA
11801181(Final),USITCPub.4318(May2012)at16;SodiumHexametaphosphatefromChina,Inv.No.
731TA1110(Final),USITCPub.3984(March2008)at13n.91;KosherChickenfromCanada,Inv.No.
731TA1062(Preliminary),USITCPub.1062(January2004)at15n.120.
89
SeeCRatII1517;PRatII9;ConferenceTr.at151(Brindle);PetitionersPostconferenceBrief
at9;RespondentsPostconferenceBriefat26.
90
CR/PRatTableIV4.
91
CR/PRatTableIII1.
92
CRatIII34;PRatIII23.
93
CRatIII4;PRatIII3.
94
CRatIII3;PRatIII2;PetitionersResponsestoStaffQuestionsat17;ConferenceTr.at37
(Tubman).
95
CRatIII5;PRatIII3.AtthetimeofpublicationofthisdeterminationthisGEdealhadnotyet
closed.Id.
86

17


LGandSamsungaccountedforvirtuallyallsubjectimportsduringtheperiodof
investigation.96TheyformerlyimportedLRWsfromKoreaand,inSamsungscase,Mexico.97In
February2013,CommerceissuedantidumpingandcountervailingdutyordersonLRWsfrom
KoreaandMexico.98LGcommencedproductionofLRWsinChinain***,whileSamsungstwo
ChineseproductionfacilitiescommencedproductionofLRWsin***and***,respectively.99
Duringtheperiodofinvestigation,LGandSamsunggraduallyreplacedtheirimportsof
nonsubjectLRWsfromKoreaandMexicowithimportsofsubjectLRWsfromChina.100Bythe
endoftheperiod,nonsubjectimportsconsistedlargelyofLRWsimportedfromMexicoby***
andLRWsimportedfromKoreaby***.101
WhirlpoolhasoperateditsLRWproductionfacilityinClyde,Ohiofrominsideaforeign
tradesubzone(FTZ)since2013,inordertominimizeitstariffliability.102Whirlpoolenters
outofscopecomponentsimportedfromChinaandelsewhereintotheFTZdutyfreeand
combinesthemwithdomesticallyproducedcomponentstoproduceLRWs.103WhenLRWsare
withdrawnfromtheFTZforconsumptionintheUnitedStates,Whirlpoolpaystariffsonthe
importedcomponentsattherateapplicabletoLRWs,ratherthanatthegenerallyhigherrate
applicabletothecomponents.104PursuanttoFTZregulations,thecountryoforiginoftheLRWs
forcustomspurposesisthecountryoforiginofthehighestvalueforeigncomponent,
regardlessofthedomesticcontentoftheLRWs.105WetreattheLRWswithdrawnbyWhirlpool
fromitsFTZ,whichaccountedfor***percentofWhirlpoolsU.S.shipmentsin2014,as
domesticallyproducedLRWs.106

96

CR/PRatIV1.
LargeResidentialWashersfromKoreaandMexico,USITCPub.4378at1920;CRatVII4n.7,
VII6n.12;PRatVII4n.7,VII5n.12.
98
CRatI6;PRatI4.
99
CRatVII4,VII67;PRatVII35.
100
SeeCR/PRatTableIV2.SamsungUSAreportedthat***.CRatVII7n.14;PRatVII5n.14.
101
CRatIV3,VII5n.9;PRatVII4n.9.
102
CRatIII911;PRatIII67.
103
CRatIII910&n.24;PRatIII6&n.24.
104
CRatIII10&n.25;PRatIII6&n.25.
105
CRatIII10;PRatIII7.
106
CRatIII11;PRatIII7.TheU.S.contentofLRWswithdrawnbyWhirlpoolfromitsFTZwas
***percent,byvalue,in2014.CR/PRatTableIII4.
97

18


3.

MarketDynamics

Asalreadynoted,mostwashersaresoldbydomesticproducersandimporterstothe
fivelargestretailersBestBuy,hhgregg,HomeDepot,Lowes,andSearsortobuyersgroups
thatpurchaseLRWsonbehalfofsmallerretailers.107WiththeexceptionofSearssOEM
business,mostretailerspurchasewashersthroughdirectnegotiationswithsuppliers.108Typical
negotiationsbetweenLRWsuppliersandretailersrevolvearoundpricesandmargins.109
Suppliersofferaminimumadvertisedprice(MAP)foreachLRWmodel,abovewhichtheywill
supportretailerswithadvertisingfunds.110Suppliersandretailersthennegotiateamarginfor
eachmodel,whichisthedifferencebetweentheMAPandtheretailersacquisitioncostnetof
alldiscountsandrebates.111DuringspecialpromotionalperiodssuchasBlackFriday(theday
afterThanksgiving),suppliersreducetheMAPsofcertainmodelstopromotionalMAPsand
generallyprovidetheretailerwithlowerwholesalepricesandadditionaldiscountsandrebates
soastopreservetheretailersmarginsonthemodels.112AretailersprofitonaparticularLRW
modelisafunctionofthemodelsmarginandsalesvolume(alsoknownasturns).113
DiscountingisprevalentintheLRWmarket,particularlyduringpromotionalevents
coincidingwithholidayssuchasPresidentsDay,MemorialDay,IndependenceDay,LaborDay,
ColumbusDay,andBlackFriday.114Whirlpoolestimatesthatsalesduringsuchevents
representatleasthalfofitssales,and***reportsthat***percentofitsLRWsalesoccur
duringtheBlackFridayandIndependenceDaypromotionalperiodsalone.115
Discountsonwashersofferedbysupplierstoretailerscanbecharacterizedasdirector
indirect.DirectdiscountsaretiedtosalesofspecificLRWs,whethergivenonthesalespriceto
aretailer(aselloutdiscount)orintheformofapostsalediscounttotheendusecustomer
whenaretailsaleismade(asellthroughdiscount).116Specifictypesofdirectdiscounts
offeredbyrespondingdomesticproducersandimportersincludequantitydiscounts,annual
totalvolumediscounts,salesincentives,andpromotionaldiscounts,amongothers.117

107

CR/PRatII1.
Accordingtopetitioner,SearsinvitescompetingsupplierstoofferpricesforthesameLRW
modelsdescribedinrequestforproposaldocuments.PetitionersPostconferenceBriefat18.
109
Petitionat41;RespondentsPostconferenceBriefat3637.
110
CRatV4;PRatV23;RespondentsPostconferenceBriefat36.
111
Petitionat4041;RespondentsPostconferenceBriefat3637.Becausearetailersmarginforeach
LRWmodelisofsomerelevancetotheretailerspurchasingandflooringdecisions,weinvite
suggestionsfromthepartiesintheircommentsonthedraftquestionnairesinanyfinalphaseofthe
investigationconcerninghowtheCommissioncouldcollectdatafrompurchasersonthemargins
achievedonspecificLRWmodels.
112
Petitionat41;RespondentsPostconferenceBriefat37.
113
Petitionat40;ConferenceTr.at228(Shor).
114
CRatII1011;PRatII6;ConferenceTr.at41(Liotine),.
115
CRatII1011;PRatII6.
116
CRatV56;PRatV4.
117
CRatV6;PRatV34;CR/PRatTableV3.
108

19


IndirectdiscountsarenottiedtospecificLRWproductsbutareallocatedtosalesof
LRWs,asbasedinpartonsuchsales.118***reportedofferingavarietyofindirectdiscounts,
includingvolumerebates,specialpriceallowances,andbacksideadjustments.119***reported
thatitdoesnotdistinguishbetweendirectandindirectdiscounts.120
RetailerflooringdecisionsareanotherfactordrivingsalesofLRWs.121Retailersseekto
displayanassortmentofmodelsandbrandsatarangeofpricepointstoserveawidevarietyof
customers.122Duringannualproductlinereviewswitheachsupplier,alllargeretailers,and
manysmallerretailers,decidewhichLRWmodelstodisplayontheflooroftheirretail
establishments,andhowthemodelsarearranged.123Placementattheendofaisles(end
caps)isconsideredafavorablelocation.124Mostrespondingpurchasersthatallocatedfloor
spacetoarangeofLRWmodelsreporteddoingsoonthebasisofconsumerdemandandthe
profitabilityofindividualunits.125Accordingtopetitioner,retailerflooringdecisionsarecritical
toLRWsalesbecauseonlyLRWmodelsflooredbyretailerscansellinsignificantquantitiesand
shapeconsumerpreferences.126***reportedofferingdirectand/orindirectdiscountsto
retailersinexchangeforfloorspace.127
RespondentsarguethattheportionofLRWsalesbyretailerstoconsumers
accompaniedbymatchingdryersalesisanimportantconditionofcompetitionintheU.S.
market.Specifically,respondentsclaimthatLRWsanddryersaredesignedtobesoldinpairs,
andthatretailersrequiresupplierstooffermatchingLRWsanddryersatthesameMAPso
advertisementscanfeaturethematthesameprice,eventhoughdryerscostlesstoproduce
thanLRWs.128Claimingthatover75percentofLRWssoldintheUnitedStatesare
accompaniedbymatchingdryers,respondentsarguethattheCommissioncannotconsiderthe
domesticindustrysprofitabilityonLRWswithoutalsoconsideringtheindustrysprofitabilityon
dryers.129
Petitionercountersthatdomesticproducersdonotintentionallycompensateforlosses
onsalesofLRWswithprofitablesalesofmatchingdryers.Accordingtopetitioner,the

118

CRatV7;PRatV4.
CRatV7;PRatV4;CR/PRatTableV3..
120
CRatV7;PRatV4.
121
CRatII19;PRatII11;Petitionat42.
122
CRatII19;PRatII11.
123
CRatII19;PRatII11;ConferenceTr.at4142(Liotine).
124
CRatII19;PRatII11;ConferenceTr.at4142(Liotine).
125
CRatII20;PRatII11.
126
CRatII19;PRatII11;PetitionersPostconferenceBriefat910;Petitionat4243.
127
CRatV8;PRatV45.
128
RespondentsPostconferenceBriefat38.Asevidence,respondentsclaimthat***,andthat
WhirlpoolsGoldRingExclusiveDealerProgramexplicitlyconditionedbonusesonwashersalestoan
80percentattachmentratio,meaningthat80percentofwashersaleshadtobeaccompaniedby
dryersales.Id.
129
RespondentsPostconferenceBriefat39.RespondentsanalogizetheLRWindustrytothe
razorindustry,whichallegedlysellsrazorsatalossinordertoprofitfromsalesofreplacementblades.
Id.at40.
119

20


washer/dryerattachmentrateisonlyinthe***percentrange,and***.130Petitioneralso
claimsthatbecauseLRWsaredurablegoods,requiringupto$100millionincapitalandR&D
expenditurestobringtomarket,theyareclearlynotintendedtobesoldatalosstofacilitate
repeatpurchasesofmatchingdryers.131
Contrarytorespondentssuggestionthatallegedprofitsondryersmightoutweighthe
domesticindustryslossesonLRWs,thefocusofourinjuryanalysismustbedomestic
producersasawholeofthedomesticlikeproduct,whichisLRWs.132Accordingly,wedonot
examinetheeffectsofsubjectimportsonthedomesticproducersoverallcorporate
operations,oronconsolidatedproductlinessuchasallhomelaundryequipment,butonlyon
theoperationsproducingLRWs.133Nordoesthestatutegenerallypermitustocomparethe
performanceofoneindustryversusanother,suchastheLRWanddryerindustries.134
Nevertheless,weinvitethepartiestoaddressintheircommentsonthedraftquestionnairesin
anyfinalphaseoftheinvestigationtheissueofwhatdata(ifany)theCommissionshould
collectconcerningdryerstofacilitateitsanalysisofconditionsofcompetitionintheLRW
market.

4.
Substitutability

Wefindthatthereisamoderatetohighdegreeofsubstitutabilitybetweensubject
importsanddomesticallyproducedLRWs.135Wefurtherfindthatpriceisanimportantfactor
inpurchasingdecisionsforLRWs,althoughnonpricefactorsarealsoimportant.136
Domesticproducersandimportershadmixedstatementsregardingwhethersubject
importsareusedinterchangeablywithdomesticproducedLRWsandnonsubjectimports.
Respondingdomesticproducersreportedthatsubjectimportsarealwaysorfrequently
usedinterchangeablywithdomesticallyproducedLRWs,whilerespondingimportersreported
thatsubjectimportsaresometimesusedinterchangeablywithdomesticallyproduced

130

PetitionersPostconferenceBriefat4243.
PetitionersPostconferenceBriefat42.
132
See19U.S.C.1677(7)(C).
133
See,e.g.,GeneralMotorsCorp.v.UnitedStates,827F.Supp.774,780(Ct.IntlTrade1993);
OutboardEnginesfromJapan,Inv.No.731TA1069(Preliminary),USITCPub.3673(March2004)at24
n.165;seealso,e.g.,FerrovanadiumfromChinaandSouthAfrica,Inv.Nos.731TA98687(Review),
USITCPub.4046(Nov.2008)at10;ColorTelevisionReceiversfromChina,Inv.No.731TA1034(Final),
USITCPub.3695(May2004)at18n.105.
134
SeeCertainColoredSyntheticOrganicOleoresinousPigmentDispersionsfromIndia,Inv.Nos.
701TA436and731TA1042(Preliminary),USITCPub.3615(July2003)at16;PersulfatesfromChina,
Inv.No.731TA749(Final),USITCPub.3044(June1997)at13n.75;SiliconCarbidefromChina,Inv.No.
731TA651(Final),USITCPub.2779(June1994)atI13n.72.
135
CRatII15;PRatII9.
136
SeeCRatII1517;PRatII911.
131

21


LRWs.137Similarly,respondingdomesticproducersreportedthatsubjectimportsand
domesticallyproducedLRWsarealwaysorfrequentlyusedinterchangeablywith
nonsubjectimports,whilemostrespondingimportersreportedthatsubjectimportsand
domesticallyproducedLRWsaresometimesusedinterchangeablywithnonsubject
imports.138

Respondingpurchasersreportedthatprice,profitability,quality,productdesign,
innovation,features,consumerdemand,brandawareness,andavailabilitywereamongthe
factorsinfluencingtheirLRWpurchasingdecisions.139Mostrespondingpurchasersranked
priceasthemostimportantfactorinfluencingtheirpurchasingdecisions,althoughthelargest
respondingpurchasersrankedotherfactorsaheadofprice,includingfeature/valueequation,
appealtocustomers/consumerdemand,brandawareness,andmarketingmultiplenational
brands.140Whenaskedwhetherdifferencesotherthanpriceareeversignificanttopurchasers
inchoosingbetweenLRWsproducedintheUnitedStates,China,andnonsubjectcountries,
threeoffourrespondingdomesticproducersrespondedsometimesbutbothresponding
importersrespondedalways.141

Domesticproducerandimporterpricingpracticesandtheprevalenceofdiscounting
constitutefurtherevidencethatpriceisanimportantfactorintheLRWmarket.Asdiscussed
above,negotiationsbetweendomesticproducersandimporters,ontheonehand,and
retailers,ontheother,forthesupplyofLRWsfocusonMAPsandprofitmargins,expressedas
thedifferencebetweenMAPsandacquisitioncosts.142Moreover,retailersconsiderrelative
profitmarginswhenallocatinglimitedretailfloorspacetoLRWmodelsfromdifferent
suppliers.143Allrespondingdomesticproducersandimportersengagedindiscountinganda
substantialproportionofLRWsalesweremadeatpromotionalpricesduringtheperiodof
investigation.144

ThepartiesdisagreeonwhethersubjectimportedLRWsanddomesticallyproduced
LRWsarecomparableintermsofnonpricefactors.Petitionerarguesthatsubjectimportsand
thedomesticlikeproductarecomparablewithrespecttosuchfactors,astheCommission
foundinthe201213investigations.145Inthisregard,petitionerclaimsthatdomesticallybuilt
productshavedoneverywellintheConsumerReportsrankingsofthetopperformingLRWs,
withfiveWhirlpoolmodelsamongthetoptenfrontloadLRWs,includingthoserankedone

137

CR/PRatTableII4.Respondingimportersclaimedthatinterchangeabilitywaslimited
becausesubjectimportscompeteonlyinthehighendofthemarket,andnotintheCTLLRWsegment
thataccountsforalargeportionofdomesticindustrysales.CRatII2021;PRatII12.
138
CR/PRatTableII4.OnerespondingimporterreportedthatdomesticallyproducedLRWsand
nonsubjectimportsarealwaysusedinterchangeably.Id.
139
CRatII15;PRatII9.
140
CRatII1516;PRatII9.
141
CR/PRatTableII5.
142
CRatV4;PRatV23;Petitionat4041;RespondentsPostconferenceBriefat3637.
143
CRatII20;PRatII11.
144
SeeCRatII1011,V67;PRatII6,V34;CR/PRatTableV3.
145
PetitionersPostconferenceBriefat12(citingUSITCPub.4378at24).

22


throughfour,andseveralWhirlpoolmodelsamongthetoptentoploadLRWs.146Petitioner
alsoassertsthatsubjectimportswouldnothaveneededtoundersellthedomesticlikeproduct
iftheyweresuperiorintermsofnonpricefactors.147

RespondentsarguethatsubjectimportedLRWsaresuperiortodomesticallyproduced
LRWsintermsofbrandawarenessandcustomerperceptionsofqualityandreliability.148As
support,respondentscitestudiesindicatingthatLGandSamsungwereincreasinglyamongthe
brandsconsideredbyconsumersinthemarketforanewLRWduringthelastfouryears,and
thatconsumerunaidedawarenessoftheLGandSamsungbrandshasincreasedsince
2013.149TheyalsocitesurveysconductedbyJ.D.Power,amarketresearchfirm,indicatingthat
consumersconsistentlyrankedLGandSamsungLRWshigherthanWhirlpoolandGELRWsin
termsoffactorssuchasoverallsatisfaction,features,easeofuse,andstylingand
appearance.150TheyalsoclaimthatConsumerReportsrankedsubjectimportedLRWshigher
thandomesticallyproducedLRWsinthemagazinesmostrecentrankings.151

LG,Samsung,andWhirlpooleachclaimedtobeinnovationleadersintheLRWmarket,
andeachcompanyintroducednumerousinnovationsduringtheperiodofinvestigation.152As
evidencethatWhirlpoolwastheinnovationleader,petitionercitesvariousfeaturesintroduced
byWhirlpoolincludingOvernightWash&DryCycle(awasherthatalsodriesclothesovernight),
WiFiSmartGrid,WhattoWash/HowtoWash(intuitivetouchcontrols),NESTconnectivity,and
theindustryslargestcapacityLRW(6.2cubicfeet),amongothers.153GEintroducedanewline
oftoploadLRWsthatwerelaudedbyretailersincluding***.154RespondentsclaimthatLGand
SamsungweretheinnovationleadersbasedinpartonSamsungsintroductionofvibration
reductiontechnology,Superspeed(reducedcycletimes),andPowerfoam(enhancedcleaning)
onfrontloadLRWsandtheActivewashbuiltinsinksontoploadLRWs,andLGsintroductionof
frontcontroltoploadLRWs,Turbowash(reducedcycletimes),andTwinWashpedestal
washersforusewithfrontloadLRWs.155Inanyfinalphaseoftheinvestigation,weintendto
furtherinvestigatetheextenttowhichsubjectimportsandthedomesticlikeproductare
comparableintermsofnonpricefactors.

Thepartiesalsodisagreeovertheextentofcompetitionbetweensubjectimportsand
domesticallyproducedCTLLRWs(i.e.,agitatorbasedtoploadLRWs)duringtheperiodof
investigation.Respondentsarguethatcompetitionwasattenuatedbytheabsenceofsubject
importsinthissegmentofthemarket,whichaccountedforaround***ofdomesticindustry

146

ConferenceTr.at103(Tubman).
PetitionersPostconferenceBriefat13;CR/PRatTableV12.
148
RespondentsPostconferenceBriefat1920,2324.
149
RespondentsPostconferenceBriefat20.
150
RespondentsPostconferenceBriefat2022.
151
RespondentsPostconferenceBriefat25.
152
Duringtheperiodofinvestigation,Whirlpoolreported15newfeatures,LRreportedthree
newfeatures,andSamsungreportedeightnewfeatures.CR/PRatTableI3.
153
PetitionersPostconferenceBriefat12,Attachment8;ConferenceTr.at2629(Tubman),58
(Liotine);CR/PRatTableI3.
154
PetitionersPostconferenceBriefat12(citingLSLRSurveyof***atQuestion3).
155
RespondentsPostconferenceBriefat2731.
147

23


salesduringthe201214period.156Intheirview,consumersintheCTLLRWsegmentvalue
priceoverdesignandfeatures,157whereasconsumersatthehighendofthemarket,where
subjectimportscompete,valueinnovativedesignandfeaturesoverprice.158Althoughthe
CommissionfoundthatsubjectimportsadverselyaffectedthesalesandpricesofCTLwashers
throughpricecompressioninthe201213investigations,respondentsarguethattherecord
ofthisinvestigationdoesnotsupporttheexistenceofpricecompression.159Specifically,
respondentsclaimthatpetitionerspricecompressiontheoryconflictswithevidencethatCTL
LRWslostnomarketshareandpostedincreasingaverageunitvaluesduringtheperiodof
investigation,andthattheaverageunitvalueofsubjectimportedtoploadLRWsremainedat
least$***perunithigherduringtheperiod.160RespondentsalsoarguethatthestabilityofCTL
LRWmarketshareduringtheperiodofinvestigationindicatesthatconsumersshoppingfora
domesticCTLLRWdidnotalsoconsider(crossshop)subjectimportedHETLorHEFLLRWs,
contrarytoWhirlpoolspricecompressiontheory.161

Petitionerarguesthatsubjectimportsadverselyimpactedthedomesticindustryssales
ofCTLLRWs,evenintheabsenceofsubjectimportsofsuchwashers.162Intheirview,
consumersoftencrossshoppedmultipletypesofLRWsduringtheperiodofinvestigation,as
theydidinthe201213investigations,withcrossshoppingintensifyingafterregulatory
changesblurredthedistinctionsbetweenagitatorandimpellerbasedtoploadLRWs.163
PetitioneralsoclaimsthatthepricecompressiontheCommissionfoundduringthe201213

156

RespondentsPostconferenceBriefat33;CR/PRatTableIII6(toploadnonenergyefficient
LRWsaccountedfor***to***percentofdomesticindustryU.S.shipmentsbetween2012and2014),
TableIV3(showing***duringtheperiodofinvestigation).
157
RespondentsPostconferenceBriefat33.
158
RespondentsPostconferenceBriefat35.
159
RespondentsPostconferenceBriefat66.Inthe201213investigations,theCommission
highlightedthefollowingexplanationofhowpricecompressionworks:whenalargercapacity,more
fullyfeaturedwashermodelisdiscountedtothesamepriceasasmaller,lessfullyfeaturedmodel,
peoplewillbuytheonewiththemostfeaturesandifyoudontreducethatpriceandkeepthegap
somewhatsimilar,youwontsellanyofthelessfeaturedmodel.USITCPub.4378at28(quoting
HearingTr.at25556(Baird)).
160
RespondentsPostconferenceBriefat6667;CR/PRatTablesIII6,IV46.Samsung
acknowledgesthatiftherearetwomodelsthatsellforthesamepriceandonehasmorefeatures,that
willpushthepriceoftheothermodellower.ConferenceTr.at220(Shor).
161
RespondentsPostconferenceBriefat6869.Notwithstandingrespondentscrossshopping
argument,aSamsungofficialstatedattheconferencethat{t}heresdefinitelysomecrossshopping
betweenCTL,HETL,andHEFLLRWs.ConferenceTr.at22324(Brindle).Inaddition,respondentsargue
thatthedomesticindustrysU.S.shipmentsofHETLLRWsdeclinedduetoacombinationofconsumers
movingdowntononHETLs,ormovinguptomorereliableandprestigious(andmoreexpensive)LG
andSamsungmodels,acknowledgingadegreeofcrossshopping.RespondentsPostconferenceBrief
at71.
162
PetitionersPostconferenceBriefat15.
163
PetitionersPostconferenceBriefat1011(citingUSITCPub.4378at18).

24


investigationscontinuedduringtheperiodofinvestigation.164AsaWhirlpoolofficialexplained
attheconference:

Pricepressurehappensatthetopendanditkindofmakesitswaydowna
productportfolio,orplantosell,aswecallit,andpushesdownalltheway
through.WhatImeanbythatis,assoonaspricescontractatanyoneprice
pointintheproductlineup,itputspressure,downwardpressure,inalltheother
onesbelowit.165

AnotherWhirlpoolofficialstatedthatninetypercentofthetime,mostofthetime,itsacase
whereproductsabovearepushingdown.166AllegingthatLGandSamsungofferedlarger
discountsthanGEorWhirlpoolduringtheperiodofinvestigation,petitionerarguesthat
subjectimportscompresseddomesticlikeproductpricesacrosstheproductrange,including
thepricesofCTLLRWs.167Inanyfinalphaseoftheinvestigation,weintendtoinvestigate
furthertheextenttowhichsubjectimportcompetitionmayhavebeenattenuatedbythe
absenceofsubjectimportsofagitatorbasedtoploadLRWs.168

164

PetitionersPostconferenceBriefat15(citingUSITCPub.4378at26).
ConferenceTr.at43(Liotine).
166
ConferenceTr.at44(Tubman).
167
PetitionersPostconferenceBriefat16(citingConferenceTr.at43(Liotine),44(Tubman)).
168
RespondentsalsoarguethatsubjectimportcompetitionintheU.S.marketisattenuatedby
thesubstantiallevelofdomesticindustryexportsandsalestobuilder/contractors,withwhichsubject
importsallegedlydonotcompete.RespondentsPostconferenceBriefat34.Domesticindustryexports
accountedfor***percentoftheindustrystotalshipmentsin2014.CR/PRatTableIII5.About10to
15percentofWhirlpoolssalesaretocontractors,includingindirectsalesthroughretailers,whileGE
reportedthat***percentofitssalesaredirecttohomebuilders.CRatII3n.13,II4;PRatII2&n.13.
Respondentsclaimthattheylacktheregionaldistributioninfrastructuretoservethecontractormarket.
CRatII4;PRatII2.Ontheotherhand,petitionerclaimsthatsubjectimportscompeteforitsindirect
salestocontractors,throughretailers.ConferenceTr.at106(Liotine).Weintendtofurtherinvestigate
thesefactorsinanyfinalphaseoftheinvestigation.
Weareunpersuadedbyrespondentsargumentthatthereislittleheadtoheadcompetition
basedonpricebetweensubjectimportsandthedomesticlikeproductbecauseWhirlpoolsmarketing
strategyemphasizescapacitywhileLGsandSamsungsmarketingstrategiesemphasizedesignand
innovativefeatures.RespondentsPostconferenceBriefat3436.Asdiscussedabove,therecordofthe
preliminaryphaseofthisinvestigationindicatesthatthereisamoderatetohighdegreeof
substitutabilitybetweensubjectimportsandthedomesticlikeproduct,andthatpriceisanimportant
factorforretailersdecidingwhichLRWstopurchaseorfloor.SeeCRatII1517,1920;PRatII811.
Furthermore,therecordindicatesthatthemarketingstrategiesofWhirlpoolandSamsungoverlapto
someextent.WhirlpoolmarketsitsLRWsnotonlyonthebasisofcapacity,butalsoonthebasisof
innovativefeatures.SeeConferenceTr.at2425(Liotine),2530(Tubman)(discussinginnovative
featuresintroducedbyWhirlpoolduringtheperiodofinvestigation);PetitionersHearingExhibitH;
CR/PRatTableI3.Similarly,SamsunghasemphasizedthelargecapacityofitsLRWs,aswellastheir
innovativefeatures.ConferenceTr.at153(Brindle)(In2014,weintroducedtheworldslargesttop
loadandfrontloadwashersat5.6cubicfeet.);CR/PRatTableI3.
165

25


C.

VolumeofSubjectImports

Section771(7)(C)(i)oftheTariffActprovidesthattheCommissionshallconsider
whetherthevolumeofimportsofthemerchandise,oranyincreaseinthatvolume,eitherin
absolutetermsorrelativetoproductionorconsumptionintheUnitedStates,issignificant.169
WefindthatthevolumeandincreaseinvolumeofsubjectimportsfromChinais
significant,bothabsolutelyandrelativetoapparentU.S.consumptionandproduction,overthe
periodofinvestigation.170Subjectimportsincreasedfrom***unitsin2012to***unitsin
2013and***unitsin2014,alevel***percentgreaterthanin2012.171Subjectimportswere
***unitsininterim2015,or***percenthigherthanthe***unitsininterim2014.172
U.S.commercialshipmentsofsubjectimportsasashareofapparentU.S.consumption
increasedfrom***percentin2012to***percentin2013and***percentin2014,andwere
***percentininterim2015,upfrom***percentininterim2014.173Theratioofsubject
importstodomesticindustryproductionincreasedfrom***percentin2012to***percentin
2013and***percentin2014,andwas***percentininterim2015,upfrom***percentin
interim2014.174
LGandSamsungsincreasedimportsofLRWsfromChinanotonlyreplacednonsubject
importsfromKoreaandMexico,butalsocapturedsomemarketsharefromthedomestic
industry,particularlyininterim2015.175Assubjectimportmarketshareincreasedduringthe
periodofinvestigation,domesticindustrymarketsharedeclinedfrom***percentin2012to
***percentin2014.176Itwas***percentininterim2015,downfrom***percentininterim
2014.177Thus,thedomesticindustrylost***percentagepointsofmarketshareduringthe
201214periodand***percentagepointsbetweentheinterimperiods,astheindustrysU.S.
shipmentsgrewatalowerratethanapparentU.S.consumption.178
Weconcludethatthevolumeofsubjectimportsandtheincreaseinthatvolumeare
significantbothinabsolutetermsandrelativetoconsumptionandproductionintheUnited
States.

169

19U.S.C.1677(7)(C)(i).
AsexplainedinsectionVI.B.2above,wedonotincludeLRWswithdrawnbyWhirlpoolfrom
itsFTZinsubjectimportdata,eventhoughtheyareclassifiedasChineseoriginLRWsforCustoms
purposes.
171
CR/PRatTableIV2.
172
CR/PRatTableIV2.
173
CR/PRatTablesIV4.
174
CR/PRatTableIV2.
175
PetitionersPostconferenceBriefat2425.
176
CR/PRatTableIV4.
177
CR/PRatTableIV4.
178
CR/PRatTableIV4.
170

26


D.

PriceEffectsoftheSubjectImports

Section771(7)(C)(ii)oftheTariffActprovidesthat,inevaluatingthepriceeffectsof
subjectimports,theCommissionshallconsiderwhether

(I)therehasbeensignificantpriceundersellingbytheimportedmerchandiseas
comparedwiththepriceofdomesticlikeproductsoftheUnitedStates,and
(II) the effect of imports of such merchandise otherwise depresses prices to a
significant degree or prevents price increases, which otherwise would have
occurred,toasignificantdegree.179

AsaddressedinsectionVI.B.4above,therecordindicatesthatthereisamoderateto
highdegreeofsubstitutabilitybetweensubjectimportsandthedomesticlikeproductandthat
priceisanimportantconsiderationinpurchasingdecisions.

FourdomesticproducersandtwoimportersofsubjectmerchandisefromChina
providedusablequarterlynetU.S.f.o.b.sellingpricedataforsevenLRWproducts,althoughnot
allfirmsreportedpricingforallproductsforallquarters.180TheCommissioncollectedpricing
datanetofbothdirectandindirectdiscounts.181Reportedpricingdataaccountedfor
approximately***percentofU.S.producersU.S.shipmentsofLRWsand***percentofU.S.
shipmentsofsubjectimportsfromChina.182

Subjectimportsundersoldthedomesticlikeproductinthemajorityofquarterly
comparisonsforeachofthesevenpricingproducts.183Subjectimportsundersoldthedomestic

179

19U.S.C.1677(7)(C)(ii).
CRatV9;PRatV6.Respondentsarguethatthecapacityrangeofproduct2istoobroadto
permitreliablepricecomparisons.SeeConferenceTr.at18889(Durling).Petitionercountersthatthe
capacityrangesoftheproductsproposedinthepetition,includingthatusedforproduct2,are
consistentwiththerangesusedinthe201213investigations.PetitionersPostconferenceBriefat29;
compareCRatV89,PRatV5withLRWsfromKoreaandMexico,USITCPub.4378atV910.Inany
finalphaseoftheinvestigation,weinvitethepartiestocommentontheappropriatepricingproduct
definitions,includingtheappropriatecapacityrangesforthosedefinitions.
181
CRatV8;PRatV5.
182
CRatV9;PRatV6.WearenotpersuadedbyrespondentscontentionthattheCommission
shouldanalyzesubjectimportpriceeffectsusingaverageunitvalue(AUV)dataordataconcerning
retailpricesfromGAPIntelligence.SeeRespondentsPostconferenceBriefat5559,Exhibit34.Wedo
notrelyonAUVdataforpurposesofourpricinganalysisbecausethesedataareinfluencedsignificantly
bychangesinproductmix,evenwithinwashersegments.SeeCR/PRatTableV11.Bycontrast,our
pricingdatacoversanappreciableproportionofU.S.shipmentsofbothsubjectimportsandthe
domesticlikeproduct,CRatV9;PRatV6,andpermitapplestoapplespricecomparisonsbasedon
specificallydefinedLRWmodels.CRatV89;PRatV5.Wedonotrelyonretailpricingdatabecause
theleveloftraderelevanttoouranalysisissalesbydomesticproducersandimporterstoretailersand
distributors,notsalesbyretailerstoconsumers.Moreover,thecoverageandinclusivityoftheretail
pricedataprovidedbyrespondentsareunclear,anddatafor2012areomitted.SeeRespondents
PostconferenceBriefat59n.146.
183
CR/PRatTableV12.
180

27


likeproductin***of***quarterlycomparisons,or***percentofthetime,atmargins
averaging***percent.184Subjectimportsoversoldthedomesticlikeproductin***quarterly
comparisons,atmarginsaveraging***percent.185Therewere***unitsofsubjectimportsin
undersellingobservations,afigure***largerthanthe***unitsofsubjectimportsin
oversellingobservations.186Wefindsubjectimportundersellingtobesignificant.

Therecordofthepreliminaryphaseofthisinvestigationindicatesthatthepervasive
undersellingbyasignificantandgrowingquantityofsubjectimportsledtodecliningpricesfor
thedomesticlikeproduct.187Domesticproducersalespricesfor***declinedbetweenthefirst
andlastquartersforwhichdatawerecollectedby***to***percent.188Furthermore,15of19
respondingpurchasersreportedthatdomesticproducershadreducedpricesinorderto
competewithlowerpricedsubjectimports,and14of16respondingpurchasersreportedthat
domesticproducershadreducedpricesinordertomaintainfloorspacefromsubject
imports.189DemandtrendscannotexplainthesepricedeclinesbecauseapparentU.S.
consumptionofLRWsincreasedthroughouttheperiodofinvestigation.190Consequently,for
purposesofthispreliminarydetermination,wefindthatthesubjectimportshadsignificant
pricedepressingeffects.

184

CR/PRatTableV12.
CR/PRatTableV12.
186
CR/PRatTableV12.
187
RespondentsclaimthatLRWpricesareinfluencedbyamodelslifecycle,whichcanrange
fromtwotothreeyears.RespondentsPostconferenceBriefat37.Accordingtorespondents,Samsung
offerssmalldiscountsduringamodelsfirstthreetofourmonthsonthemarketfollowedbymoderate
discountsand,after18months,aggressivediscounts.Id.LGfollowsasimilarstrategy.Id.Giventhat
thepriceofaparticularproductdeclinessteadilyoveritslifecyle,respondentsarguethatprice
comparisonsareonlyvalidbetweenproductsatsimilarpointsintheirrespectivelifecycles.Id.
PetitionerdisputestheimportanceoflifecyclepricingtotheCommissionsanalysis,arguingthat
Whirlpooldoesnotofferincreasingdiscountsasamodelslifecycleprogresses.ConferenceTr.at131
(Tubman).Rather,whenamodelisdiscontinued,Whirlpooloffersdiscountsonthefloormodelsand
theremainingoneortwoweeksworthofinventory.Id.at132(Tubman).Petitionerarguesthatthere
isnothingnaturalaboutprogressivelyloweringanLRWmodelspriceovertimewhenthemodelscost
structureisstable.Id.at132(Levy).Inanyfinalphaseoftheinvestigation,weintendtoinvestigatethe
extenttowhichproductlifecyclesinfluencepricesovertime.
Weareunpersuadedbyrespondentsargumentthatsubjectimportundersellingcouldhavehad
noadversepriceeffectsbecausesubjectimportsundersolddomesticallyproducedfrontloadLRWsin
morequarterlycomparisonsandatgreatermarginsthandomesticallyproducedtoploadLRWs,yetthe
domesticindustrysU.S.shipmentsandmarketshareinthefrontloadLRWsegmentincreased.
RespondentsPostconferenceBriefat49;CR/PRatTablesIV7,V12.TheCommissionmayfind
significantpriceeffectsbasedonsignificantsubjectimportundersellingleadingtosignificantprice
depressionorsuppression,evenifsubjectimportscapturedlittleornomarketsharefromthedomestic
industry.SeeCertainSteelNailsfromKorea,Malaysia,Oman,Taiwan,andVietnam,Inv.Nos.701TA
521and731TA12521255and1257(Final),USITCPub.4541at23,2627(July2015).
188
CR/PRatTableV11.
189
CRatV29;PRatV10.
190
CR/PRatTablesIV4,C1.
185

28

Wealsofindforpurposesofthispreliminarydeterminationthatsubjectimportshadthe
effectofpreventingpriceincreasesforthedomesticlikeproductthatotherwisewouldhave
occurredtoasignificantdegree.Rawmaterialsaccountedforbetween***and***percentof
thedomesticindustrystotalcostofgoodssoldduring201214,and***reportedthatthecost
ofrawmaterialsdeclinedduringtheperiodofinvestigation.191Pricesforcoldrolledsteel,
copper,andpolypropylenealldeclinedirregularlyduringtheperiod.192Nevertheless,the
domesticindustryscostofrawmaterialsperunitincreasedduringtheperiodofinvestigation
as***.193Unitcostofgoodssoldincreasedfrom2012to2014andwashigherininterim2015
thanininterim2014,drivenbyincreasedunitrawmaterialcostsandhigher***.194Unableto
passontheseincreasedcoststhroughhigherpricesinlightofthesignificantandgrowing
volumeoflowpricedsubjectimports,thedomesticindustrysratioofcostofgoodssoldtonet
salesincreasedfrom***percentin2012to***percentin2013and***percentin2014,and
to***percentininterim2015,upfrom***percentininterim2014.195

Weconsequentlyfind,basedontherecordofthepreliminaryphaseofthis
investigation,thatthesubjectimportshadsignificantadversepriceeffects.

E.
ImpactoftheSubjectImports196

Section771(7)(C)(iii)oftheTariffActprovidesthattheCommission,inexaminingthe
impactofthesubjectimportsonthedomesticindustry,shallevaluateallrelevanteconomic
factorswhichhaveabearingonthestateoftheindustry.Thesefactorsincludeoutput,sales,
inventories,capacityutilization,marketshare,employment,wages,productivity,grossprofits,
netprofits,operatingprofits,cashflow,returnoninvestment,returnoncapital,abilitytoraise
capital,abilitytoservicedebt,researchanddevelopment,andfactorsaffectingdomesticprices.
Nosinglefactorisdispositiveandallrelevantfactorsareconsideredwithinthecontextofthe
businesscycleandconditionsofcompetitionthataredistinctivetotheaffectedindustry.197
Thedomesticindustrysfinancialperformancedeteriorated***duringtheperiodof
investigation,evenasincreasingdemandboostedothermeasuresoftheindustrys
performance.198Duetorisingshipmentsreflectingincreasingdemand,theindustrysnetsales

191

CRatV1.***reportedthatthecostofrawmaterialsfluctuatedduringtheperiodof
investigation.Id.
192
CRatV2;PRatV1;CR/PRatFigureV1.
193
CRatV1;PRatV1.
194
CR/PRatTableVI1.
195
CR/PRatTablesIII8,VI1.Thedomesticindustrystotalandunitlaborcostsincreasedfrom
2012to2014,althoughtheywere***lowerininterim2015thanininterim2014.CR/PRatTableVI1.
196
Commerceinitiatedinvestigationsbasedonestimatedantidumpingdutymarginsof68.92to
109.04percentforimportsfromChina.LargeResidentialWashersFromthePeople'sRepublicofChina:
InitiationofLessThanFairValueInvestigation,81Fed.Reg.1398,1401(Jan.12,2016).
197
19U.S.C.1677(7)(C)(iii).ThisprovisionwasrecentlyamendedbytheTradePreferences
ExtensionActof2015,Pub.L.11427.
198
RespondentsarguethattheCommissionshoulddiscountthedomesticindustrysoperating
lossesfortworeasons.First,theyarguethatWhirlpoolunderstateditsfinancialperformanceby
(Continued)

29


valueincreased***percentduring201214,from$***in2012to$***in2013and$***in
2014,butwas$***ininterim2015,downfrom$***ininterim2014.199Becausetheindustrys
costofgoodssoldincreasedtoagreaterextentthanitsnetsalesvalue,however,thedomestic
industrysoperatinglossincreasedfrom$***in2012to$***in2013and$***in2014,and
was$***ininterim2015,upfrom$***ininterim2014.200Atthesametime,theindustrys
operatinglossasashareofnetsalesworsenedfromnegative***percentin2012tonegative
***percentin2013andnegative***percentin2014.201Itwasworseininterim2015,at
negative***percent,thanininterim2014,whenitwasnegative***percent.202Thedomestic
industrysgrossprofitandnetincomeshowedsimilardecliningtrendsduringtheperiodof
investigation.203
IndicesofdomesticindustryoutputgenerallyimprovedwithincreasingLRWdemand
andthecontinuedrepatriationofproductionduringtheperiodofinvestigation.From2012to
2014,theindustrysproductionroseby***percent,increasingfrom***unitsin2012to***
unitsin2013and***unitsin2014,butwas***unitsininterim2015,downfrom***unitsin

(Continued)
excludingthe$126millioninEnergyEfficientTaxCreditsthatitearnedonitsproductionofqualifying
LRWsin2012and2013,andthatitusedtoreduceitstaxliabilityonprofitsgeneratedbynonLRW
appliancesin2013.RespondentsPostconferenceBriefat7778.Inresponse,petitionerarguesthat
WhirlpoolcouldnothaveappliedsuchcreditstoitsLRWbusinessbecausethebusinesssuffered
operatinglossesthroughouttheperiodofinvestigation,andthattheCommissionrejectedasimilar
argumentinthe201213investigations.ConferenceTr.at79(Liotine),80(Levy);Petitioners
PostconferenceBriefat40(citingLargeResidentialWashersfromKoreaandMexico,USTICPub.4378at
42n.321).Assumingarguendothatrespondentsargumenthasmerit,wefailtoseehowthetaxcredits
earnedandusedbyWhirlpoolduringthe201213periodarerelevanttothedomesticindustrys
worseningfinanciallossesin2014andbetweentheinterimperiods.CR/PRatTableVI1.Nevertheless,
weintendtoinvestigatefurtherthisissueinanyfinalphaseoftheinvestigation.
RespondentsalsoarguethatthedomesticindustrysreportedlossesonsalesofLRWsconflict
withWhirlpoolspublicreportingofstrongprofitsforitsNorthAmericanhomeappliancebusiness.
RespondentsPostconferenceBriefat7375,Exhibit36.Wefindthisargumentunpersuasivebecause
***.CR/PRatVI1n.2.Inanyfinalphaseofthisinvestigation,Commissionstaffwillverifythefinancial
datareportedbyWhirlpooltoensureitsaccuracy.
199
CR/PRatTablesVI1,C1.
200
CR/PRatTableVI1.
201
CR/PRatTableVI1.
202
CR/PRatTableVI1.Wenotethat,inadditiontotheincreasedratioofcostofgoodssoldto
netsales,theindustryssales,general,andadministrative(SG&A)expensesalsoincreasedrelativeto
netsalesduringtheperiodofinvestigation,risingfrom***percentin2012to***percentin2013and
***percentin2013.Id.TheratioofSG&Atonetsaleswas***percentininterim2014and***
percentininterim2015.
203
Thedomesticindustrysgrossprofitdeclinedfrom$***in2012to$***in2013and$***in
2014,andwas$***ininterim2015,downfrom$***ininterim2014.CR/PRatTableVI1.The
industrysnetlossworsenedfrom$***in2012to$***in2013and$***in2014,andwas$***in
interim2015,upfrom$***ininterim2014.Id.

30


interim2014.204Thedomesticindustryscapacitydeclined***percentduring201214,from
***unitsin2012to***unitsin2013and***unitsin2014,butwas***unitsininterim2015,
upfrom***unitsininterim2014.205Decliningcapacityandincreasingproductionduring2012
14causedtheindustrysrateofcapacityutilizationtoincreasefrom***percentin2012to***
percentin2013and***percentin2014.206Asthesetrendsinindustrycapacityand
productionreversedbetweentheinterimperiods,theindustrysrateofcapacityutilizationwas
***percentininterim2015,downfrom***percentininterim2014.207
BecausethedomesticindustrysU.S.shipmentsincreasedatalowerratethanapparent
U.S.consumption,theindustrysmarketsharedeclined***duringtheperiodofinvestigation.
ThedomesticindustrysU.S.shipmentsincreased***percentduring201214,from***unitsin
2012to***unitsin2013and***unitsin2014.208TheindustrysU.S.shipmentswere***
unitsininterim2015,upfrom***unitsininterim2014.209TheindustrysU.S.shipmentsasa
shareofapparentU.S.consumptiondeclinedfrom***percentin2012to***percentin2013
beforeincreasingto***percentin2014,alevel***percentagepointslowerthanin2012.210
TheindustrysU.S.shipmentsasashareofapparentU.S.consumptionwere***percentin
interim2015,down***percentagepointsfrom***percentininterim2014.211
Thedomesticindustrysendofperiodinventoriesfluctuatedduringtheperiodof
investigation.Specifically,theindustrysendofperiodinventoriesincreasedfrom***unitsin
2012to***unitsin2013beforedecliningto***unitsin2014,alevelstill***percenthigher
thanin2012.212Theindustrysendofperiodinventorieswere***unitsininterim2015,down
from***unitsininterim2014.213Theindustrysendofperiodinventoriesasashareoftotal
shipmentsincreasedfrom***percentin2012to***percentin2013beforedecliningto***
percentin2014.214Theindustrysendofperiodinventoriesasashareoftotalshipmentswere
***percentininterim2015,downfrom***percentininterim2014.215
Thedomesticindustrysemploymentrelatedindicatorsimproved.From2012to2014,
thedomesticindustrysaveragenumberofproductionrelatedworkers(PRWs)increased***
percent,risingfrom***PRWsin2012to***PRWsin2013and***PRWsin2014.216The
industryemployed***PRWsininterim2015,upfrom***PRWsininterim2014.217The

204

CR/PRatTablesIII2,IV4.
CR/PRatTableIII2.
206
CR/PRatTableIII2.
207
CR/PRatTableIII2.
208
CR/PRatTableIII5.
209
CR/PRatTableIII5.
210
CR/PRatTableIV4.
211
CR/PRatTableIV4.
212
CR/PRatTableII7.
213
CR/PRatTableII7.
214
CR/PRatTableII7.
215
CR/PRatTableII7.
216
CR/PRatTableIII8.
217
CR/PRatTableIII8.
205

31


domesticindustryshoursworkedandwagespaidshowedasimilarincreasingtrend.218The
industrysproductivityinunitsper1,000hoursdeclinedirregularly,however,from***unitsin
2012to***unitsin2014.219Itwas***unitsininterim2015,downfrom***unitsininterim
2014.220
Finally,thedomesticindustryscapitalexpendituresandresearchanddevelopment
(R&D)expensesincreasedirregularlyduringtheperiodofinvestigation,as***.221
Specifically,thedomesticindustryscapitalexpendituresincreasedirregularlyfrom$***in
2012to$***in2014,andwere$***ininterim2015,upfrom$***ininterim2014.222
Similarly,theindustrysresearchanddevelopment(R&D)expensesincreasedirregularlyfrom
$***in2012to$***in2014,andwere$***ininterim2015,upfrom$***ininterim2014.223
Therecordinthepreliminaryphaseofthisinvestigationindicatesthatthereisacausal
nexusbetweensubjectimportsandtheweakanddeterioratingfinancialperformanceofthe
domesticindustryduringtheperiodofinvestigation.Subjectimportvolumeincreased
significantlyinabsolutetermsandasashareofapparentU.S.consumptionanddomestic
industryproduction.224Subjectimportundersellingwassignificantandlowpricedsubject
importcompetitiondepressedandsuppresseddomesticlikeproductpricestoasignificant
degree.
Werecognizethatthedomesticindustrysperformanceimprovedbymanymeasures,
includingproduction,U.S.shipments,andemployment,asLRWdemandincreased.Yet,the
domesticindustrysincreasedproductionandshipments,anditsstrongcapitalandR&D
expenditures,didnotpreventtheindustrysfinancialperformancefromworsening***.
Moreover,theindustrylostsomemarketsharetosubjectimports,anditsimprovementacross
variousoutputrelatedfactorsdidnotincreasetothesameextentasapparentU.S.
consumption.225
Wealsorecognizethatcertainsegmentsofthedomesticindustryexperiencedlittleor
nodirectsubjectimportcompetition.Nevertheless,around***ofthedomesticindustrysU.S.
shipments,consistingofenergyefficienttoploadandfrontloadLRWs,confronteddirect
subjectimportcompetition.226Consequently,subjectimportsdidcompetewithdomestically

218

CR/PRatTableIII8.Hoursworkedincreasedfrom***in2012to***in2013and***in
2014,butwere***ininterim2015,downfrom***ininterim2014.Id.Wagespaidincreasedfrom
$***in2012to$***in2013and$***in2014,andwere$***ininterim2015,upfrom$***ininterim
2014.Id.
219
CR/PRatTableIII8.
220
CR/PRatTableIII8.
221
CRatVI2021;PRatVI8.
222
CR/PRatTableVI4.
223
CR/PRatTableVI4.
224
CR/PRatTablesIV2,IV4.
225
SeeCR/PRatTablesIII3,III8,IV4,C1.
226
CR/PRatTableIII6.ThedomesticindustrysU.S.shipmentsofenergyefficienttopload
LRWsandfrontloadLRWsrepresented***percentoftheindustrysU.S.shipmentsin2012,***
percentin2013,and***percentin2014.CR/PRatTableIII6.AlthoughthedomesticindustrysU.S.
shipmentsofenergyefficienttoploadLRWsandfrontloadLRWsrepresentedonly***percentofthe
(Continued)

32


produced
dLRWsinth
heU.S.marketand,forthereasonsddiscussedab
bove,hadassignificant
impactontheindusttryasawhole.Inanyfin
nalphaseofftheinvestiggation,wein
ntendto
investigaatefurtherth
heextentofindirectcom
mpetitionbeetweensubjeectimportsand
domesticcallyproduce
edagitatorb
basedtoplo
oadLRWsintheU.S.market,includiingtheexten
ntof
anyprice
ecompressio
on.
Wehavecon
W
etherthereaareotherfacctorsthatmayhavehad
danadverse
sideredwhe
impactonthedomessticindustryyduringtheperiodofinvvestigationttoensureth
hatweareno
ot
227
attributin
nginjuryfromsuchothe
erfactorstothesubjectimports. Nonsubjecttimportshada
declininggpresencein
ntheU.S.maarketduringgtheperiodofinvestigationanddecclinedasashare
ofappare
entU.S.consumptionfrom***perccentin20122to***perccentin2013,***percen
ntin
228
2014,and***percentininterim
m2015,downfrom***ppercentinin
nterim2014. Inlighto
of
theirdeccliningpresenceinthem
market,nonssubjectimpoortsdidnotccausethead
dverseeffecttswe
haveattrributedtosu
ubjectimporrts.
Fo
ortheforegoingreasons,wefindth
hattherecorrdofthepreeliminaryphaseofthis
investigaationsupportsadetermiinationthatthereisareeasonableindicationofm
materialinju
ury
byreasonofsubjectimports.

VII.

Conclusion
C

Fo
orthereaso
onsstatedab
bove,wedetterminethattthereisarreasonableindicationth
hatan
industryintheUnitedStatesism
materiallyinjjuredbyrea sonofsubjeectimportso
ofLRWsfrom
m
Chinathaataresoldin
ntheUnited
dStatesatle
essthanfairvalue.


(Continu
ued)
industryssU.S.shipmentsininterim
m2015,downfrom***pe rcentininterrim2014,theseemingdeccline
resultedffromtheDOEEsimplementtationofmorrestringentEnnergyStarrequirementsin
nMarch2015
5,
whichcau
usedmanyim
mpellerbasedtoploadLRW
WstolosetheeirEnergyStaarcertification
n.CRatI21n.56;
PRatI16
6n.56;CR/PRatTableIII6.Thisdevelopment,asweellasWhirlpo
oolsreplacem
mentofitsCTTL
LRWswith
hHEagitatorrLRWsataroundthesame
etime,blurreedthedistincttionbetween
nagitatorand
impellerb
basedtoploaadLRWs.See ConferenceTTr.at8183(TTubman),2233(Brindle).
22
27
ViceChairm
manPinkertan
ndCommissio
onerKiefffinddthatlargerresidentialwaashersdonott
constitute
eacommodittyproductandthatthecirrcumstancesoofthisinvestigation,thereefore,donot
requirefu
urtherconside
erationofBra
atskandMitttalSteel.
22
28
CR/PRatTaableIV4.

33

PARTI: INTRODUCTION
BACKGROUND
ThisinvestigationresultsfromapetitionfiledonDecember16,2015,byWhirlpool
Corporation(Whirlpool),BentonHarbor,Michigan,allegingthatanindustryintheUnited
StatesismateriallyinjuredandthreatenedwithmaterialinjurybyreasonofimportsfromChina
oflargeresidentialwashers(LRWs)1thatareallegedlysoldintheUnitedStatesatlessthan
fairvalue(LTFV).Thefollowingtabulationprovidesinformationrelatingtothebackgroundof
thisinvestigation.23

Effectivedate

Action

December16,2015

PetitionfiledwithCommerceandtheCommission;
institutionofCommissioninvestigation(80FR79611,
December22,2015)

January5,2016

Commercesnoticeofinitiation(81FR1398,January12,
2016)

January6,2016

Commissionsconference

January29,2016

Commissionsvote

February1,2016

Commissionsdetermination

February8,2016

Commissionsviews

STATUTORYCRITERIAANDORGANIZATIONOFTHEREPORT
Statutorycriteria
Section771(7)(B)oftheTariffActof1930(theAct)(19U.S.C.1677(7)(B))provides
thatinmakingitsdeterminationsofinjurytoanindustryintheUnitedStates,the
Commission

shallconsider(I)thevolumeofimportsofthesubjectmerchandise,(II)the
effectofimportsofthatmerchandiseonpricesintheUnitedStatesfor
domesticlikeproducts,and(III)theimpactofimportsofsuch
merchandiseondomesticproducersofdomesticlikeproducts,butonlyin
thecontextofproductionoperationswithintheUnitedStates;and...
mayconsidersuchothereconomicfactorsasarerelevanttothe

SeethesectionentitledTheSubjectMerchandiseinPartIofthisreportforacomplete
descriptionofthemerchandisesubjecttothisinvestigation.
2
PertinentFederalRegisternoticesarereferencedinappendixA,andmaybefoundatthe
Commissionswebsite(www.usitc.gov).
3
AlistofwitnesseswhoappearedattheconferenceispresentedinappendixBofthisreport.

I1

determinationregardingwhetherthereismaterialinjurybyreasonof
imports.

Section771(7)(C)oftheAct(19U.S.C.1677(7)(C))furtherprovidesthat4

Inevaluatingthevolumeofimportsofmerchandise,theCommissionshall
considerwhetherthevolumeofimportsofthemerchandise,orany
increaseinthatvolume,eitherinabsolutetermsorrelativetoproduction
orconsumptionintheUnitedStatesissignificant....Inevaluatingthe
effectofimportsofsuchmerchandiseonprices,theCommissionshall
considerwhether...(I)therehasbeensignificantpriceundersellingbythe
importedmerchandiseascomparedwiththepriceofdomesticlike
productsoftheUnitedStates,and(II)theeffectofimportsofsuch
merchandiseotherwisedepressespricestoasignificantdegreeor
preventspriceincreases,whichotherwisewouldhaveoccurred,toa
significantdegree....Inexaminingtheimpactrequiredtobeconsidered
undersubparagraph(B)(i)(III),theCommissionshallevaluate(withinthe
contextofthebusinesscycleandconditionsofcompetitionthatare
distinctivetotheaffectedindustry)allrelevanteconomicfactorswhich
haveabearingonthestateoftheindustryintheUnitedStates,including,
butnotlimitedto...(I)actualandpotentialdeclineinoutput,sales,
marketshare,grossprofits,operatingprofits,netprofits,abilitytoservice
debt,productivity,returnoninvestments,returnonassets,andutilization
ofcapacity,(II)factorsaffectingdomesticprices,(III)actualandpotential
negativeeffectsoncashflow,inventories,employment,wages,growth,
abilitytoraisecapital,andinvestment,(IV)actualandpotentialnegative
effectsontheexistingdevelopmentandproductioneffortsofthe
domesticindustry,includingeffortstodevelopaderivativeormore
advancedversionofthedomesticlikeproduct,and(V)in{anantidumping
investigation},themagnitudeofthemarginofdumping.

Inaddition,Section771(7)(J)oftheAct(19U.S.C.1677(7)(J))providesthat5

(J)EFFECTOFPROFITABILITY.TheCommissionmaynotdeterminethat
thereisnomaterialinjuryorthreatofmaterialinjurytoanindustryinthe
UnitedStatesmerelybecausethatindustryisprofitableorbecausethe
performanceofthatindustryhasrecentlyimproved.

AmendedbyPL11427(assigned,June29,2015),TradePreferencesExtensionActof2015
AmendedbyPL11427(assigned,June29,2015),TradePreferencesExtensionActof2015.

I2

Organizationofreport
PartIofthisreportpresentsinformationonthesubjectmerchandise,allegeddumping
margins,anddomesticlikeproduct.PartIIofthisreportpresentsinformationonconditionsof
competitionandotherrelevanteconomicfactors.PartIIIpresentsinformationonthecondition
oftheU.S.industry,includingdataoncapacity,production,shipments,inventories,and
employment.PartsIVandVpresentthevolumeofsubjectimportsandpricingofdomesticand
importedproducts,respectively.PartVIpresentsinformationonthefinancialexperienceof
U.S.producers.PartVIIpresentsthestatutoryrequirementsandinformationobtainedforuse
intheCommissionsconsiderationofthequestionofthreatofmaterialinjuryaswellas
informationregardingnonsubjectcountries.

MARKETSUMMARY
TheU.S.marketforLRWstotaled$***and***unitsin2014.Currently,fourfirms
produceLRWsintheUnitedStates,(1)Whirlpool;(2)GeneralElectricCo.(GE);(3)Alliance
LaundrySystems,LLC(Alliance),and(4)StaberIndustries,Inc.(Staber).Thesefirms
accountforallU.S.productionofLRWsintheUnitedStatesduringtheperiodofinvestigation
(January1,2012throughSeptember30,2015).6Whirlpool,thelargestU.S.producerofLRWs,
accountedfor***percentoftotalU.S.productionofLRWsduringtheperiodofinvestigation.
FourfirmsreportedimportingLRWsfromChinaandnonsubjectcountriesduringtheperiodof
investigation.OfthefourreportingU.S.importers,twofirms,SamsungElectronicsAmerica,
Inc.(SamsungUSA)andLGElectronicsUSA,Inc.(LGUSA),U.S.affiliatesofforeign
producersofLRWsinChina,accountedforvirtuallyallofU.S.importsfromChina.7
U.S.producersU.S.shipmentsofLRWstotaled***unitsvaluedat$***in2014,and
accountedfor***percentofapparentU.S.consumptionbasedonquantity(***percentbased
onvalue).U.S.shipmentsofimportsfromChinatotaled***unitsvaluedat$***in2014,and
accountedfor***percentofapparentU.S.consumptionbasedonquantity(***percentbased
onvalue).U.S.shipmentsofimportsfromallothersourcescombinedtotaled***unitsin2014
valuedat$***,andaccountedfor***percentofapparentconsumptionbyquantity(***
percentbyvalue).

Threeotherfirms(1)BSHHomeAppliances(BSH),(2)ElectroluxHomeProducts,Inc.
(Electrolux),and(3)Fisher&PaykelAppliances,Inc.(Fisher&Paykel))domesticallyproducedand
subsequentlyceaseddomesticproductionofLRWspriortotheperiodofinvestigation.BSH,which
producedfrontloadLRWs,closeditsproductionlineinNewBern,NorthCarolinainlate2010.
ElectroluxcloseditsLRWproductionfacilityinWebsterCity,Iowainearly2011andtransferred
productiontoitsfacilityinJuarez,Mexico.Fisher&Paykel,whichproducedtoploadLRWs,transferred
productionfromOhiotoThailandinOctober2009.CertainLargeResidentialWashersfromKoreaand
Mexico,Inv.Nos.701TA488and731TA11991200(Final),PublicationNo.4378(February2013),p.III
1n.1&2.
7
See,PartIV,U.S.importers.

I3

SUMMARYDATAANDDATASOURCES
AppendixC,tableC1,presentsasummaryofdatacollectedinthisinvestigation.U.S.
industrydataarebasedonquestionnaireresponsesfromfourU.S.producersthataccounted
forallofU.S.productionofLRWsduringtheperiodofinvestigation.DataforU.S.importsfrom
ChinaandnonsubjectcountriesarebasedonquestionnaireresponsesfromU.S.importersand
proprietaryimportdataobtainedfromU.S.CustomsandBorderProtection(CBP).
InformationontheindustrythatproducesLRWsinChinaisbasedonquestionnaireresponses
fromthreeforeignproducersandexportersfromChinaandpubliclyavailabledata.

PREVIOUSANDRELATEDINVESTIGATIONS
LRWshavebeenthesubjectofpriorantidumpingandcountervailingdutyinvestigations
intheUnitedStates.8OnDecember30,2011,Whirlpoolfiledantidumpingandcountervailing
dutypetitionsallegingthatanindustryintheUnitedStateswasmateriallyinjuredbyreasonof
U.S.importsofLRWs9fromKoreaandMexicothatwerebeingsoldintheUnitedStatesatLTFV
andsubsidizedbytheGovernmentofKorea.LGandSamsungparticipatedinthese
investigationsasrespondents.InDecember2012,Commercedeterminedthatthesubject
merchandisewassoldatLTFVandsubsidizedbytheGovernmentofKorea.10InFebruary2013,
theCommissiondeterminedthattheU.S.industrywasmateriallyinjuredbyreasonofU.S.
importsofLRWsfromKoreaandMexico.11Commerceissuedantidumpingandcountervailing
dutyordersonLRWsfromKoreaandMexicoinFebruary2013.12

CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA1199
1200(Final),PublicationNo.4378(February2013).
9
ThescopedefinitionofLRWsinthesepriorinvestigationsdiffersslightlyfromthiscurrent
investigation.See,PartI,Scopeofthisinvestigationvs.scopeofthepriorinvestigationsonLRWs,infra.
10
LargeResidentialWashersFromtheRepublicofKorea:FinalAffirmativeCountervailingDuty
Determination,77FR75975,December26,2012;NoticeofFinalDeterminationofSalesatLessThan
FairValue:LargeResidentialWashersFromtheRepublicofKorea,77FR75988,December26,2012;
NoticeofFinalDeterminationofSalesatLessThanFairValue:LargeResidentialWashersfromMexico,
77FR76288,December27,2012.
11
LargeResidentialWashersFromKoreaandMexico:Determinations,78FR10636,February14,
2013.
12
LargeResidentialWashersFromMexicoandtheRepublicofKorea:AntidumpingDutyOrders,78
FR11148,February15,2013;LargeResidentialWashersFromtheRepublicofKorea:CountervailingDuty
Order,78FR11154,February15,2013.

I4

NATUREANDEXTENTOFSALESATLTFV
OnJanuary12,2016,CommercepublishedanoticeintheFederalRegisterofthe
initiationofitsantidumpinginvestigationonLRWsfromChina.13Theallegedestimated
weightedaveragedumpingmargins(inpercentadvalorem),asreportedbyCommerceare
summarizedintableI1below:

TableI1
LRWs:CommercespreliminaryweightedaverageLTFVmarginswithrespecttoimportsfromChina
Estimateddumpingmargin
(percent)

Country
China

68.92to109.04

Source:LargeResidentialWashersFromthePeoplesRepublicofChina:InitiationofLessThanFairValue
Investigation,81FR1398,January12,2016.

THESUBJECTMERCHANDISE
Commercesscope
Commercehasdefinedthescopeofthisinvestigationasfollows:

Theproductscoveredbythispetitionarealllargeresidentialwashersand
certainpartsthereoffromChina.

Forpurposesofthispetition,thetermlargeresidentialwashersdenotes
allautomaticclotheswashingmachines,regardlessoftheorientationof
therotationalaxis,withacabinetwidth(measuredfromitswidestpoint)
ofatleast24.5inches(62.23cm)andnomorethan32.0inches(81.28
cm),exceptasnotedbelow.

Alsocoveredarecertainpartsusedinlargeresidentialwashers,namely:
(1)allcabinets,orportionsthereof,designedforuseinlargeresidential
washers;(2)allassembledtubs14designedforuseinlargeresidential
washerswhichincorporate,ataminimum:(a)atub;and(b)aseal;(3)all
assembledbaskets15designedforuseinlargeresidentialwasherswhich

13

LargeResidentialWashersFromthePeoplesRepublicofChina:InitiationofLessThanFairValue
Investigation,81FR1398,January12,2016.
14
Atubisthepartofthewasherdesignedtoholdwater.
15
Abasket(sometimesreferredtoasadrum)isthepartofthewasherdesignedtoholdclothing
orotherfabrics.

I5

incorporate,ataminimum:(a)asidewrapper;16(b)abase;and(c)a
drivehub;17and(4)anycombinationoftheforegoingpartsor
subassemblies.

Excludedfromthescopearestackedwasherdryersandcommercial
washers.Thetermstackedwasherdryersdenotesdistinctwashingand
dryingmachinesthatarebuiltonaunitaryframeandshareacommon
consolethatcontrolsboththewasherandthedryer.Theterm
commercialwasherdenotesanautomaticclotheswashingmachine
designedforthepayperusesegmentmeetingeitherofthefollowing
twodefinitions:

(1)(a)itcontainspaymentsystemelectronics;18(b)itisconfiguredwith
anexternallymountedsteelframeatleastsixincheshighthatisdesigned
tohouseacoin/tokenoperatedpaymentsystem(whetherornotthe
actualcoin/tokenoperatedpaymentsystemisinstalledatthetimeof
importation);(c)itcontainsapushbuttonuserinterfacewithamaximum
ofsixmanuallyselectablewashcyclesettings,withnoabilityoftheend
usertootherwisemodifywatertemperature,waterlevel,orspinspeed
foraselectedwashcyclesetting;and(d)theconsolecontainingtheuser
interfaceismadeofsteelandisassembledwithsecurityfasteners;19or

(2)(a)itcontainspaymentsystemelectronics;(b)thepaymentsystem
electronicsareenabled(whetherornotthepaymentacceptancedevice
hasbeeninstalledatthetimeofimportation)suchthat,innormal
operation,20theunitcannotbeginawashcyclewithoutfirstreceivinga
signalfromabonafidepaymentacceptancedevicesuchasanelectronic
creditcardreader;(c)itcontainsapushbuttonuserinterfacewitha
maximumofsixmanuallyselectablewashcyclesettings,withnoabilityof
theendusertootherwisemodifywatertemperature,waterlevel,orspin

16

Asidewrapperisthecylindricalpartofthebasketthatactuallyholdstheclothingorother
fabrics.
17
Adrivehubisthehubatthecenterofthebasethatbearstheloadfromthemotor.
18
Paymentsystemelectronicsdenotesacircuitboarddesignedtoreceivesignalsfromapayment
acceptancedeviceandtodisplaypaymentamount,selectedsettings,andcyclestatus.Suchelectronics
alsocapturecyclesandpaymenthistoryandprovidefortransmissiontoareader.
19
Asecurityfastenerisascrewwithanonstandardheadthatrequiresanonstandarddriver.
Examplesincludethosewithapininthecenteroftheheadasacenterpinrejectfeaturetoprevent
standardAllenwrenchesorTorxdriversfromworking.
20
Normaloperationreferstotheoperatingmode(s)availabletoendusers(i.e.,notamode
designedfortestingorrepairbyatechnician).

I6

speedforaselectedwashcyclesetting;and(d)theconsolecontainingthe
userinterfaceismadeofsteelandisassembledwithsecurityfasteners.

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveaverticalrotational
axis;(2)aretoploading;21(3)haveadrivetrainconsisting,interalia,of
(a)apermanentsplitcapacitor(PSC)motor,22(b)abeltdrive,23and(c)a
flatwrapspringclutch.24

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveahorizontalrotational
axis;(2)arefrontloading;25and(3)haveadrivetrainconsisting,inter
alia,of(a)acontrolledinductionmotor(CIM),26and(b)abeltdrive.

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveahorizontalrotational
axis;(2)arefrontloading;and(3)havecabinetwidth(measuredfromits
widestpoint)ofmorethan28.5inches(72.39cm).

Theproductssubjecttothispetitionarecurrentlyclassifiableunder
subheadings8450.20.0040and8450.20.0080oftheHarmonizedTariff
SystemoftheUnitedStates(HTSUS).Productssubjecttothispetition
mayalsoenterunderHTSUSsubheadings8450.11.0040,8450.11.0080,
8450.90.2000,and8450.90.6000.AlthoughtheHTSUSsubheadingsare
providedforconvenienceandcustomspurposes,thewrittendescription
ofthemerchandisesubjecttothispetitionisdispositive.

Scopeofthisinvestigationvs.scopeofthepriorinvestigationsonLRWs
IntheCommissionspriorinvestigationsonLRWs,thedefinitionofthescopeoriginally
includedcertainwasherswithaDepartmentofEnergy(DOE)ratedcapacitylessthan3.7
cubicfeet.OnMay17,2012,beforethecommencementoftheCommissionsfinalphase

21

Toploadingmeansthataccesstothebasketisfromthetopofthewasher.
APSCmotorisanasynchronous,alternatingcurrent(AC),singlephaseinductionmotorthat
employssplitphasecapacitortechnology.
23
Abeltdrivereferstoadrivesystemthatincludesabeltandpulleys.
24
Aflatwrapspringclutchisaflatmetalspringthat,whenengaged,linksabuttedcylindricalpieces
ontheinputshaftwiththeendoftheconcentricoutputshaftthatconnectstothedrivehub.
25
Frontloadingmeansthataccesstothebasketisfromthefrontofthewasher.
26
Acontrolledinductionmotorisanasynchronous,alternatingcurrent(AC),polyphaseinduction
motor.
22

I7

investigations,petitionerrequestedthatCommercenarrowthescopeoftheinvestigationsto
excludetheseproducts.27Therequestsoughttoexcludemostconventionaltoploadwashers,
becauseoftheirsmallercapacities,andhighefficiencytoploadwasherswithcapacitiesofless
than3.7cubicfeet.Petitionercontendedthatitsrequestsoughttofocustheinvestigationson
wherecompetitionwithsubjectimportsoccurred,whichintheirviewoccurredinthefollowing
segments:(1)highefficiencyfrontloadLRWsand(2)highefficiencytoploadLRWswith
capacitiesof3.7cubicfeetorgreater.OnAugust6,2012,Commercepublishedanoticeinthe
FederalRegisteramendingthescopeoftheinvestigationbyaddingthefollowingexclusion:

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
withaverticalrotationalaxisandaratedcapacityoflessthan3.7cubic
feet,ascertifiedtotheU.S.DepartmentofEnergypursuantto10CFR
429.12and10CFR429.20,andinaccordancewiththetestprocedures
establishedin10CFRPart430.28

TheCommissionultimatelyincludedtheseproductsinitsdefinitionofthedomesticlike
productfindingnocleardividinglinesbetweentheseproductsandotherLRWsproducedinthe
UnitedStates.29
Thescopedefinitionofthecurrentinvestigationdoesnotincludetheexclusionof
washingmachineswithaverticalrotationalaxisandaratedcapacityoflessthan3.7cubicfeet.
ThescopeofthecurrentinvestigationdefinesLRWsastheCommissiondefineditsdomestic
likeproductinthepriorfinalphaseinvestigationswiththeadditionofthreenewexclusions.30
Theseexclusions,asdefinedbypetitioner,areasfollows:

(1) TopLoadingLowTechResidentialWashers

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveaverticalrotational
axis;(2)aretoploading;31(3)haveadrivetrainconsisting,interalia,of

27

LargeResidentialWashersFromtheRepublicofKorea:AmendmenttotheScopeofthe
CountervailingDutyInvestigation,77FR46715,August6,2012.
28
Ibid.
29
CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA1199
1200(Final),PublicationNo.4378(February2013),p.11.
30
ThescopedefinitionsfromboththepriorLRWsinvestigationsandthecurrentinvestigation
containedexclusionsforstackedwasherdryersandcommercialwashers.
31
Toploadingmeansthataccesstothebasketisfromthetopofthewasher.

I8

(a)apermanentsplitcapacitor(PSC)motor,32(b)abeltdrive,33and(c)a
flatwrapspringclutch.34

(2) FrontLoadingLowTechResidentialWashers

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveahorizontalrotational
axis;(2)arefrontloading;35and(3)haveadrivetrainconsisting,inter
alia,of(a)acontrolledinductionmotor(CIM),36and(b)abeltdrive.

(3) ExtraWideResidentialWashers

Alsoexcludedfromthescopeareautomaticclotheswashingmachines
thatmeetallofthefollowingconditions:(1)haveahorizontalrotational
axis;(2)arefrontloading;and(3)havecabinetwidth(measuredfromits
widestpoint)ofmorethan28.5inches(72.39cm).

Toploadlowtechresidentialwashersaredefinedasthosetoploadwashershavinga
permanentsplitcapacitor(PSC)motor,abeltdrive,andaflatwrapspringclutch.Frontload
lowtechresidentialwashersaredefinedasthosefrontloadwashershavingacontrolled
inductionmotor(CIM),andabeltdrive.Extrawideresidentialwashersaredefinedas
thosewasherswithacabinetwidthgreaterthan28.5inches.37
Petitionerstatedthatitsoughttheseexclusionsbecauseitbelievesthatwashermodels
fittingthesedefinitionsarenotproducedintheUnitedStates.Petitionerestimatedthatnone
oftheexclusionsaccountedformorethan0.5percentofapparentdomesticconsumptionin
anygivenyearduringtheperiodofinvestigation.38

32

APSCmotorisanasynchronous,alternatingcurrent(AC),singlephaseinductionmotorthat
employssplitphasecapacitortechnology.
33
Abeltdrivereferstoadrivesystemthatincludesabeltandpulleys.
34
Aflatwrapspringclutchisaflatmetalspringthat,whenengaged,linksabuttedcylindricalpieces
ontheinputshaftwiththeendoftheconcentricoutputshaftthatconnectstothedrivehub.
35
Frontloadingmeansthataccesstothebasketisfromthefrontofthewasher.
36
Acontrolledinductionmotorisanasynchronous,alternatingcurrent(AC),polyphaseinduction
motor.
37
Toploadwasherswithanordinarybeltdrivesystem,i.e.,withoutaflatwrapspringclutch,are
includedinthescopeofthisinvestigation.Petitionerspostconferencebrief,AnswerstoStaff
Questions,p.8.
38
Petitionerspostconferencebrief,AnswerstoStaffQuestions,p.8;Respondentsarguedthatthe
definitionofthedomesticlikeproductshouldbeexpandedtoincludetheproductsincludedinthese
exclusions.Respondentspostconferencebrief,pp.418;See,PartI,DomesticLikeProductIssues,infra.

I9

Tarifftreatment
LRWsareclassifiableinsubheading8450.20.0039oftheHarmonizedTariffScheduleof
theUnitedStates(HTS),andimportedunderHTSstatisticalreportingnumbers8450.20.0040
and8450.20.0080.40ThegeneraltariffdutyrateforHTSsubheading8450.20.00is1percentad
valorem.41

Physicalcharacteristicsanduses
LRWsarehomeappliancesthatremovesoilfromfabric,usingwateranddetergentas
theprincipalcleaningagents.Allunitsfeaturewash,rinse,andspincycles;haveacabinet
widthofatleast24.5inches(62.23cm)andnomorethan32.0inches(81.28cm);42andfeature
arotationalaxisthatiseitherverticalorhorizontal.Further,allLRWsfeatureametaldrumor
basketintowhichlaundryisloaded,aplastictubthatholdswater,amotor,apump,andauser
interfaceandcontrolunittosetwashcycles.Singlefamilyhouseholdsaretheprincipal
consumersofLRWs.43

ConfigurationsofLRWsintheU.S.market
CurrentlyintheU.S.market,LRWsaretypicallyproducedandsoldintwo
configurations,eitherwithaverticalaxis,generallyreferredtoasatoploadLRWsora
horizontalaxis,generallyreferredtoasfrontloadLRWs.Bothconfigurationscanbe
equippedwithvariousfeatures,forinstance,waterheaters,differentwashingcycles,steam
cleaningcapabilities,andcabinetfinishing.Theprimarydistinctionsbetweenthese
configurationsofLRWsarebasedonthelocationoftheloadingdoor,theorientationofthe

39

HTSsubheading8450.20.00describesthearticleas:Householdorlaundrytypewashing
machines,includingmachineswhichbothwashanddry;partsthereof:Machines,eachofadrylinen
capacityexceeding10kg.HarmonizedTariffScheduleoftheUnitedStates(2016).
40
In2015,thestatisticalreportingnumbersHTS8450.20.0040(topload)and8450.20.0080(other)
wereaddedtocreateaseparateprovisionforlargecapacitytoploadwashers.Priorto2015,HTS
statisticalreportingnumberHTS8450.20.0090includedbothtopandfrontloadnoncoinoperated
largecapacitywashers.HarmonizedTariffScheduleoftheUnitedStates(2014).
41
HarmonizedTariffScheduleoftheUnitedStates(2016);Petitionerclaimsthatproductssubjectto
thispetitionmayalsoenterunderHTSUSstatisticalreportingnumbers8450.11.0040(toploadfully
automaticwashers),8450.11.0080(otherfullyautomaticwashers),8450.90.2000(parts:tubsandtub
assemblies),and8450.90.6000(parts:other).ThegeneraltariffdutyrateforHTSsubheading8450.11
andHTSsubheading8450.90is1.4percentadvaloremand2.6percentadvalorem,respectively.
42
Petition,p.8.Washerswithawidthlessthan24.5inchesarecompactandportableunitsthat
aregenerallynotusedinsinglefamilyresidences,whilewashersgreaterthan32.0inchesaretoolarge
tofitthroughatypicalhouseholddoorframeandareconsideredcommercialwashers.
43
Petition,p.11.

I10

axis,andthecleaninggmechanicss.44AgeneraaldescriptioonofeachofftheseLRWconfiguratio
ons
follows.
Topload
dLRWs
AtoploadLR
A
RWfeaturesatoploadin
ngdoorforlooadingcloth
hesandcontainsabaskeet
thatspinsonaverticcalaxis(seeFigureI1).ToploadLR Wscomeeq
quippedwith
habroadarrray
mechanicsoffa
ofproductfeaturesaandaresoldatawideraangeofpriceepoints.Thecleaningm
toploadLRWconsisttoflaundrybeingloadedintoabaskketthatspin
nsonaverticalaxis.Ino
order
tofurthe
erfacilitateaacleaningmotion,anaggitatororimppellerisplaccedintheceenterofthe
basket.TThedifferencebetweenthesetwoccleaningtechhnologiesisexplainedfu
urtherbelow
w.

FigureI1
Toploadwashers

Source:W
Whirlpool.Thewasheronthe
eleftismorelikkelytocontainnanagitatorasitsmeanso
ofmovingcloth
hes,
water,and
ddetergentaro
oundthebaske
etwhereasthe
ewasheronth erightismoreelikelytocontaainanimpelleer.

44

Petittion,p.11.

I11

Cleaniingtechnolo
ogy:agitatoorvs.impelller

AtoploaadLRWcontainseitheraanagitatoro
oranimpelleer,bothofw
whichfacilitaatetheclean
ning
movementofclothess,water,and
ddetergentinsidethebbasketoftheemachine.455FigureI2
presentsanexample
eofanagitattorandanim
mpeller.

FigureI2:
Anexamp
pleofanagitatorandanimpeller

Whirlpool.Anaagitator(left).Animpeller(right).
Source:W

Agitator

Anagitatoris
A
sacenterpo
ostthatproje
ectsfromth ebottomoffthewashb
basketandiss
equipped
dwithfinsorvanesthattcreatesaw
washingactioonbyrotatin
ngbackandforth.
Whenatoplo
W
oadLRWwitthanagitato
orissettoc leanaloado
ofclothes,ittfirstfillsitstub
withwaterandthencreatesthebackandfo
orth,washinggmotionthrroughtheusseofitsagitator.
Theforce
eoftheagitaatoranditsmotiontend
dtotreatfabbricsmoreh
harshlythanLRWswith
impellerss,becauseth
heagitatoro
oftentwistsandtanglesclothes.LRWswithagittatorstendtto
usemore
ewaterandmoreenerggythanLRWsswithimpelllersbecauseetheagitato
orneedsmo
ore
watertooperateeffe
ectively.Theyalsogene
erallyspincl othesmoreslowlydurin
ngthespinccycle,
Becauseofth
hehigherwaater
requiringglongeruseofadryerandthusconssumingmorreenergy.B
andelecttricityconsumptionused
dbyLRWsw
withanagita tor,theyareelesslikelyttomeeteneergy
standard
dsforhighe
efficiencyo
ormeettheEEnergyStarsstandard,althoughsom
meagitatorb
based
LRWshavvequalifiedforEnergySStarcertificaation.LRWswithanagittatorgeneraallyoccupythe
valuessegmentoftthemarketaandhavethe
elowestpriccepoints.46

45

Petittion,p.12.
Petittion,p.12.

46

I12

Impeller

Animpellerisasomewhatflat,rotatinghubwhichdoesnotcontainacenterpost.It
createswashingmotionbyrotatingandcreatingcurrentsinthewater.Duetothelackofa
centerpost,impellersoccupylessspaceinthebasketandconsequently,toploadLRWswith
impellersgenerallyhavehighercapacitiesthanagitatorbasedLRWs.47
DuringthecleaningcycleofatoploadLRWwithanimpeller,thetubfillsonlypartly
withwater.Becausesolittlewaterisusedinthetub,aspecialdetergentdesignatedHEmust
beused.TheHEdetergentisformulatedtocreatefewersudstherebyminimizingthewater
necessarytorinse.ToploadLRWswithanimpelleralsospinathigherspeedsthantopload
LRWswithanagitator,therebyextractingmorewaterbeforeclothesgointothedryer,and
thusreducingenergyconsumption.Becauseofthelowerwaterandelectricityconsumption,all
LRWswithanimpellerqualifiedashighefficiencyandwereEnergyStarcertifiedunderthe
energyefficiencystandardspriortoMarch7,2015.Evenafterthemorestringentenergy
efficiencystandardsbecomeeffectiveonMarch7,2015,theseLRWsaremorelikelytomeet
highefficiencyenergystandardsormeettheEnergyStarstandard,althoughallmodels
currentlydonot.

FrontloadLRWs
FrontloadLRWsfeatureafrontloadingdoorforloadingclothesandcontainsadrum
thatspinsonahorizontalaxis.(seeFigureI3).FrontloadLRWsaretypicallypositionedatthe
premiumendoftheLRWmarketintermsofpriceandperformance.Theyoftencome
equippedwithabroadvarietyofproductfeatures.ThedrumsoffrontloadLRWsfillonlypartly
withwaterandcleanclothesthroughaprocessofliftingthemtothetopofthetuband
droppingthemintothewaterbyabaffleandusingthecentrifugalforceofthespinning
drum.FrontloadLRWsgenerallyconsumetheleastamountofwaterduringthewashcycle
andfeaturethefastestspinningspeedsofalltypesofLRWs.48Becauseofthelowerwaterand
electricityconsumption,allfrontloadLRWsqualifiedashighefficiencyandwereEnergyStar
certifiedundertheenergyefficiencystandardspriortoMarch7,2015.Evenafterthemore
stringentenergyefficiencystandardsbecomeeffectiveonMarch7,2015,theseLRWsaremore
likelytomeethighefficiencyenergystandardsormeettheEnergyStarstandard,althoughall
modelscurrentlydonot.
Generally,frontloadLRWsworkmosteffectivelywithlowfoaming,HEdetergent.Most
frontloadLRWloadcapacitiesareroughlyequivalenttotoploadLRWswithanimpellerbut
tendtohavehigherloadcapacitiesthantoploadLRWswithanagitator.Veryfastspincycles
meanbettermoistureextractioncomparedevenwithtoploadLRWswithanimpeller,thereby
reducingdryingtimeandenergyconsumption.However,frontloadLRWshavebeenreported
todevelopmoldandodorsbecauseofmoistureremaininginthedrum.Althoughtheindustry

47

Petition,p.12.
Petition,pp.1112.

48

I13

appearsttohaveaddressedthisissuewithfu
urtherproduuctinnovatio
on,suchasdynamicven
nting
499
technolo
ogy,thismaaycausesom
meconsumerrstopreferttoploadLRW
WstofrontlloadLRWs.

FigureI3
Frontload
dwasher

Source:W
Whirlpool

Prod
ductfeaturess
Productfeatu
ureshavebe
ecomeincreaasinglyprevaalentintheLRWmarketplace,andaare
seenbym
manymanuffacturersasavehicleforrmaintaininngcompetitivveness.Theesefeaturescan
includee
energyefficie
ency,capacity,appearan
nce(color,ccabinetfinish
hing,decoraativeelemen
nts,
etc.),and
dnewinnovationssuchasnoisered
ductionandssteamcleaning.Anumb
berofthe
featuresofLRWsare
eexplainedb
below.

49

Mold
daccumulatio
oncanbemittigatedinsevveralwaysinccluding:(1)w
wipingtherub
bbersealdrywith
atowelan
ndleavingthe
edoorajaraffterawashcyycle;(2)usingghighefficien
ncydetergentt,whichleavees
lesssoapresidueinthe
etub;and(3))regularlyrun
nningthecleaaningcycle,p
pertheinstructionmanual.
CaringForYou
urHEWasherrandPreventtingMoldIssuues,July20112.
Mifflin,C
Litigationonthisisssueisongoingg.Formoreiinformation, pleaserefertto,FrontLoaadingWasherr
Litigationat:http://w
www.lieffcabraser.com/deffectiveproduucts/case/1266/frontloadin
ngwasher
litigation(retrievedJan
nuary8,2016
6).InreWhirllpoolCorp.FrrontLoadingWasherProds
ds.Liab.Litig.isa
classactio
oncivillawsuitclaimingad
designdefecttandbreachoofimpliedwaarrantybyWh
hirlpoolin
connectio
onwithitsDuetfrontloadingwashingm
machines.

I14

Energyefficiency
ConsumersmaypreferenergyefficiencyasafactorinbuyingLRWsnotonlybecauseof
theresultinglowerutilitybills,butalsotheavailabilityofutilityrebates,salestaxexemptions,
andotherstateandfederaltaxcreditsthatmayexistwiththepurchaseofcertainenergy
efficientcertifiedhomeappliances.
EnergyefficiencystandardsforLRWsarepromulgatedbythreeentities:(1)the
ConsortiumforEnergyEfficiency(CEE),50(2)theU.S.EnvironmentalProtectionAgency
(EPA),and(3)theU.S.DepartmentofEnergy(DOE).Alloftheseentitiesestablish
standardsforidentifyingenergyefficientLRWsbasedlargelyontwofactors:(1)energy
utilizationand(2)waterconsumptionofthewasher.Morespecifically,energyutilizationis
calculatedusingtheintegratedmodifiedenergyfactor(IMEF),whichrepresentsthe
numberofcubicfeetoflaundrythatcanbewashedwithonekilowatthourofelectricitytaking
intoconsiderationthetotalenergyconsumptionoftheentirelaundrycycle,whichincludes
bothwashinganddrying.ThehighertheIMEFnumber,themorelaundrymaybewashedand
driedwiththesameonekilowatthourofenergy;andtherefore,thehighertheenergy
efficiencyofthewasher.Waterconsumptioniscalculatedusingtheintegratedwaterfactor
(IWF),whichisdefinedasthegallonsofwaterneededtowasheachcubicfootoflaundry.51
ThelowertheIWFnumberthelesswaterisusedtocleaneachcubicfootoflaundry;and
therefore,thehigherthewaterefficiencyofthewasher.
BasedontherelativeIMEFandIWFmeasures,theCEEcategorizesLRWsintothreetiers
ofenergyefficiency,withthethirdtierreservedforthemostenergyefficientwashers.
AlsousingIMEFandIWFmeasures,theEPAandtheDOEassigntheEnergyStar
classificationtoLRWs.Ingeneral,theEPAandDOEreviseEnergyStarstandardsperiodically
basedonseveralfactors,includingchangestotheFederalminimumefficiencystandards,52
technologicaladvanceswhichgenerategreaterenergyefficiencies,andproductavailability.53
Additionally,theEPAmayrevisethesestandardswhenthemarketshareforEnergyStarrated

50

TheCEEisanonprofitagencythatencouragesgreateradoptionofenergyefficientproductsand
servicesthroughthedevelopmentofvariousinitiatives.AccordingtotheCEEwebsite,membersinclude
utilitycompanies,environmentalgroups,researchorganizations,andstateenergyofficesintheUnited
StatesandCanada.TheagencyalsosolicitsinputfrommanufacturersandboththeU.S.Departmentof
EnergyandtheEnvironmentalProtectionAgency.https://www.cee1.org/content/about,accessed
January19,2016.
51
PriortoMarch2015,CEEandEnergyStarstandardswerecalculatedusingthemodifiedenergy
factor(MEF),whichrepresentsthenumberofcubicfeetoflaundrythatcanbewashedwithone
kilowatthourofelectricityandthewaterfactor(WF)thegallonsofwaterneededtowasheach
cubicfootoflaundry.SuperEfficientHomeAppliancesInitiative,CEE,2014.
52
PursuanttotheEnergyPolicyandConservationActof1975,theU.S.DepartmentofEnergy
(DOE)setsminimumenergyefficiencystandardsforapproximately50categoriesofappliancesand
equipmentusedinhomes,businesses,andotherapplications,includingLRWs.
http://energy.gov/eere/buildings/aboutapplianceandequipmentstandardsprogram,accessed
January19,2016.
53
http://energy.gov/eere/buildings/energystar,accessedJanuary19,2016.

I15

LRWsreachorexceed50percentforaparticularcategoryofLRW.54Themostrecentchangeto
theEnergyStarenergyefficiencystandardsoccurredduringtheperiodofinvestigationand
becameeffectiveMarch7,2015.55
TableI2presentscurrentand2011federalminimum,CEEandEnergyStarenergy
efficiencystandards.AsshownintableI2,thenewefficiencystandardsthatwentintoeffect
onMarch7,2015requiredadramaticincreaseintheefficiencyofLRWsachievedinlargepart
byasubstantialdecreaseinthevolumeofwaterthatcanbeusedintheLRWwashandrinse
cycles.Thesenewefficiencystandardshaveaffectedthewaymanufacturersproducetopload
washers56andhaveblurredtheproductcategories,suchastoploadconventional,high
efficiencytopload,andhighefficiencyfrontload,thattheCommissionusedinitspriorLRWs
investigations.57

TableI2
LRWs:Energyefficiencystandards
Standard

Efficiencylevels
March7,2015topresent
IMEF

Efficiencylevels
January1,2011toMarch6,2015

IWF

MEF

WF

Federalminimum
Topload

1.29

8.4

1.26

9.5

Frontload

1.84

4.7

1.26

9.5

EnergyStar
Topload

2.06

4.3

2.0

6.0

Frontload

2.38

3.7

2.0

6.0

CEETier1

2.38

3.7

2.0

6.0

CEETier2

2.74

3.2

2.2

4.5

CEETier3

2.92

3.2

2.4

4.0

Source:U.S.DepartmentofEnergyandSuperEfficientHomeInitiative,CEE.

54

Ibid.
PriortoMarch7,2015,EnergyStarstandardswererevisedeffectiveJanuary1,2011.
56
Petitionerstatedthatsubsequenttothenewefficiencystandards,allofitstoploadwashersmust
nowuseshallowfilltechnologyforitsstandardwashcycleandbedesignedtouseHEdetergent.
Becauseofthesechanges,Whirlpoolcurrentlyuseseitheranagipeller(HEagitator)oranimpellerin
itstoploadwashers.Whirlpoolstatedthatunderthenewstandards,manyimpellerbasedtopload
LRWs,whichwouldhavequalifiedasEnergyStarunderthepriorstandards,donotcurrentlyqualifyas
EnergyStar.Also,underthenewstandards,thereareHEagitatorbasedunitsthatcurrentlyqualifyas
EnergyStar.Petitionerspostconferencebrief,AnswerstoStaffQuestions,p.11.
Whirlpoolreportedthatinanticipationofthemorestringentstandards,itinvested$***inanewtop
loadplatform,whichwasintroducedtothemarketin2014.Petitionerspostconferencebrief,Answers
toStaffQuestions,p.6.
57
Petitionerspostconferencebrief,p.10.Petitionerarguedthatwiththenewenergyefficiency
standardsblurringproductlines,thereisevenmorecrossshoppingamongtheproductcategories
thantherewasinthepriorLRWinvestigations.Ibid.,p.11.
55

I16

Capacity
CapacityreferstothevolumeofclothesanLRWcanwashperload.Capacityisamong
themostsoughtafterfeaturesforconsumers,especiallyforlargehouseholds.Capacityranges
fordifferenttypesofLRWsvary.Forexample,toploadLRWswithanagitatorfeaturethe
lowestcapacityandrangefrom2.53.9cubicfeet(cf.),whilethecapacityoffrontloadLRWs
andtoploadLRWswithanimpellerrangefrom3.34.3cf.and3.55.0cf.ofcapacity,
respectively.TheDOErequiresmanufacturerstocertifyanddeclarethecapacityoftheirLRWs
atthetimeofsale.ProducersofLRWsareconstantlyattemptingtoincreasethecapacityof
theirLRWs.In2014,Samsungbeganproducinga5.6cf.LRW.Whirlpoolstatedthatitcurrently
hasthelargestcapacityLRWonthemarketat6.2cf.

Appearance
TheappearanceofLRWscanvarygreatlydependingonwhatappealstothemarket.
Color,cabinetfinish,anddecorativeelementsareexamplesofLRWfeaturesthatcandiffer.
Respondentsemphasizedtheinnovationsthattheyhavedevelopedwhichimprovedthe
appearanceofitsLRWs,includingtheintroductionofvariouscolorsintothemarketplace.
Respondentsstatedthatapproximately35percentoftheirtotalLRWsalesarecolormodels.58
PetitionerdisputedthatclaimandarguedthatthevastmajorityofLRWs,approximately***
percentareboughtinwhite.Itstatedthatcolorisnotusuallyasignificantfactorforconsumers
giventhatwashersaremostlyplacedinlaundryrooms,basements,orutilityclosets.59

Introductionofnewandimprovedfeatures
Allpartiesagreedthatcreatingnewfeaturesandimprovingonexistingonesisan
importantcomponentofmaintainingcompetitivenessintheLRWmarket.Allpartiesalso
observedthatmanyproductfeaturesandnewtechnologiesarequicklyreplicatedbyother
producers.Duringtheperiodofinvestigation,Whirlpool,LG,andSamsungallreportedthat
theybroughtnewinnovativefeaturestotheLRWmarket.TableI3highlightssomeofthe
featuresclaimedtobeintroducedfirstintothemarketplacebyWhirlpool,LG,andSamsung.

58

Conferencetranscript,pp.201202(Kim).
Petitionerspostconferencebrief,AnswerstoStaffQuestions,p.8(citingwhiteandcolormarket
segmentdatafromtheCommissionspriorLRWinvestigations).
59

I17

TableI3
LRWs:FeatureinnovationbyWhirlpool,LG,andSamsung,January2012toSeptember2015
Feature

Whirlpool

LG

Samsung

2012
Overnightwash&drycycle
Thermaloverlaymaterial

DeepfilloptiononEnergyStarcertifiedTopload

Speedspray

Aquajetwashaction

WiFiconnectivity

Largestcapacity4.5cf.

TurboWash

Frontcontrolpanelontopload

2013

WiFiSmartgrid
Largestcapacity5.0cf.

2014
Smoothwavebasket

Enhancedwashalgorithms

Whattowash/howtowash

Colorlastcycle

HEagitator

MechanicalBPMDrive

Adaptivewash

Largestcapacity5.6cf.

2015
NESTconnectedwasher

Integratedcontrolsinlid

Largestcapacity6.2cf.

Load&Godetergentfill

ActiveWashwithbuiltinsink

SuperSpeed

TWINwash

Source:Petitionerspostconferencebrief,pp.1213andattachment8;Respondentspostconferencebrief,pp.27
32andexhibits.

ThefeatureslistedintableI3areonlythosereportedasintroducedduringtheperiod
ofinvestigation.AllpartiesreportedintroducingadditionalfeaturespriortoJanuary2012.LG

I18

identifiedseveralproductinnovationsthatoccurredbeforetheperiodofinvestigation,60some
ofwhichincludedirectdrivetechnologyin2003,steamcycleinnovationin2006,thewild
cherryredcabinetin2006,andslamprooflidin2010.61Also,Samsunglistedvibration
reductiontechnology(VRT)in2007,62Powerfoamtechnologyin2010,63andselfcleaning
technologyin201064asafewmajorinnovationsthatitintroducedpriortotheperiodof
investigation.65RespondentsarguedthatsomeofthefeatureslistedbyWhirlpoolas
innovativewereofquestionableutilityornotreceivedwellbyconsumersinthemarketplace.66
WhirlpoolarguedthatmanyofthefeatureslistedbyLGandSamsungasinnovativeandfirstto
marketwere,infact,developedearlierbyWhirlpool.67

ManufacturingProcesses
Developmentofproductplatforms
Generally,themanufactureofLRWsbeginswiththedesignandproductionofaLRW
platform.Aplatformisthebasicframefromwhichmultiplemodelsarebuiltwithavariety
offeatures.68AllproducersofLRWs,Whirlpool,GE,LG,andSamsung,reportedusing
platformstodevelopproductmodels.SamsungandLGviewplatformsasencompassinga
broadengineeringdesignthatmaybedevelopedaroundaresearchanddesignproject.69A
platformwouldhavecertainparametersforitemssuchasdrivesystems,size,anddesign

60

Petitionerarguedthatanyinnovationsbytherespondentspriortotheperiodofinvestigationwere
alreadyconsideredbytheCommissioninthepriorLRWinvestigationsandtheCommissionconcluded
thatsubjectimportswereinterchangeableandcomparabletodomesticallyproducedLRWs.
Petitionerspostconferencebrief,p.13.
61
Respondentspostconferencebrief,p.30.
62
AccordingtoSamsung,VRTtechnologyreducesLRWnoisetoalowlevelthroughitsinnovativetub
design,whichimprovesthebalanceofheavyloads.Respondentspostconferencebrief,exh.18.
63
AccordingtoSamsung,PowerFoamtechnologyusesaninnovativemixtureofwater,airand
detergenttopenetratedeepintofabricresultinginsuperiorwashresults.Respondentspostconference
brief,exh.18.
64
AccordingtheSamsung,SelfClean+technologykeepsthedrumandgasketcleanonitsfrontload
LRWs.Respondentspostconferencebrief,exh.18.
65
Respondentspostconferencebrief,p.28.
66
Respondentspostconferencebrief,p.27n.70(citingtheundesirabilityoftheNESTconnected
washer).
67
Petitionerspostconferencebrief,AnswerstoStaffQuestions,pp.67.Specifically,petitioner
arguedWhirlpoolalreadyhadsimilarfeaturesavailableinthemarketplacewhenSamsungintroduced
itsAquajetfeaturein2013,itsSuperSpeedfeaturein2014,anditsActiveWashfeaturein2015.It
alsoarguedthatLGsTwinWashLRWsareproducedinKoreaandthereforenotfromasubject
country.Ibid.
68
Petitionerspostconferencebrief,AnswerstoStaffQuestions,p.17,GEspostconferencebrief,pp.
56.
69
Conferencetranscript,pp.242244(BrindleandHerring).

I19

structure.Thus,modelsproducedwithinaplatformmayhaveaparticularwidth,suchas28
inches,butdifferentfeatures.70

WhirlpoolandGEstatedthataplatformisexpectedtolastforanextendedperiodof
time,suchas10to20years,orlonger.71Aplatformmaybeupgradedduringitslifecycle,once
every2to3years,andeven5years.72Samsungstated,andLGagreed,thataplatformlikely
willhavealifecycleof5to30years,butmaybeupgradedevery2to5years.73

LRWmanufacturersmayhaveseveralplatformsinoperationatagiventime.For
example,WhirlpoolhastwotofourplatformsforitstoploadLRWsandonetotwoplatforms
foritsfrontloadLRWs.74Newplatformswilloverlapthelifeofolderplatforms.75

Developmentofproductmodelsandstockkeepingunits(SKUs)

AmodelisanLRWdefinedbyvariousfeaturesorfunctionality.Whirlpool,GE,LG,
andSamsungagreedthataparticularLRWmodelwilltypicallyhavealifecycleof13years.76
Whirlpool,GE,LG,andSamsungnotedthattermsmodelandSKUaregenerally
synonymous.Whirlpoolnoted,however,thatamodelmighthavemorethanoneSKUbecause
thatmodelisproducedinmorethanonelocationorindifferentcolors.77

Productionprocess
LRWsaretypicallymassproducedinaproductionplant.Whirlpoolproducesallthe
LRWsthatitsellsintheUnitedStatesinitsClyde,Ohio,manufacturingplant.Whirlpoolstated
thatthisplantisthelargestintheworldandcovers2.4millionsquarefeet.78
WhirlpoolstatedthatallLRWproducersusethesamemanufacturingtechnologyand
processes.79LRWsareproducedthroughseveraldistinctmanufacturingprocessesthatinvolve
awidevarietyofmaterials,whichmaybepurchasedinlargequantitiesascut,shaped,or
paintedpieces,orascomponentsystems.Whirlpoollistednineseparatemodulesorsub
assembliesinaLRW.80Thecomponentsforeachmoduleoriginatewithinfiveareasinthe

70

GEspostconferencebrief,pp.56.
Petitionerspostconferencebrief,p.17,GEspostconferencebrief,p.6,conferencetranscript,p.
131(Tubman).
72
GEspostconferencebrief,p.6.
73
Conferencetranscript,pp.243244(BrindleandHerring).
74
Conferencetranscript,p.59(Tubman).
75
Conferencetranscript,p.61(Tubman).
76
Petitionerspostconferencebrief,p.17,GEspostconferencebrief,p.6,conferencetranscript,pp.
241242(BrindleandHerring).
77
Petitionerspostconferencebrief,p.17,GEspostconferencebrief,pp.56,conferencetranscript,
pp.242244(BrindleandHerring).
78
Conferencetranscript,pp.2324(Liotine).
79
Petition,p.18.
80
Thepetitionerlistsnineofthesemodules:thecabinetassembly;thedrivesystem,whichincludes
motors,gears,andshafts,andiscommonlypurchasedfromspecialtymanufacturers;thewashsystem,
(continued...)
71

I20

petitione
ersproductionplant,inccludingmate
erialsreceiving,cabinetassembly,fabrication
81
support,plasticsform
ming,andmachining.

FigureI4
Productio
onprocessesforLRWs

Operationsin
O
ntheplant

Materialsreceiving
etforming
Cabine
Fabricationsupportt:blanking,sttamping,and forgingofmetal;andmacchiningofmeetal
barsto
ock
Plasticcsforming

LRWmo
odules
Cabinetry
Drivesystem
m
Washsystem
m
Controlsysteem

Exteriorfeattures
Interiorfeatuures
Literature
Labels
Packaging

Asseemblyline

FinishedLRWreadyforshipping

Source:Co
ompiledbyUSITTCstafffromP
Petition,pp.18
820

First,thematterialsdeparrtmentreceiivesallpurchhasedmaterrials,includingrawmateerials
andpurcchasedcomp
ponents,inclludingpresttampedmettalblanks,in
njectionmoldedparts,
electricalsubassemb
blies,printed
dliteratureaandlabels,a ndpackagin
ngmaterials..Then,the
materialssdepartmen
ntwillmaintaininventorriesanddelivvermaterialtotheapprropriate
fabricatio
ondepartme
entordirecttlytotheasssemblyline.882

(continued)
whichjoin
nsthefabricaatedsteelbassket(drum)an
ndtheplasticctubtogether;thecontrolsystem;the
exteriorfe
eatures;theiinteriorfeatures;literature
e;labels;anddpackaging.PPetition,pp.1
1820.
81
Petittion,p.18.
82
Petittion,p.18.

I21

Duringthecabinetassemblystage,theexteriormetalshellofthewasheriscreated,
includingthetop,lid,anddoor.Rawmetalblanks,whichareformedfromsteelcoils,arethen
stampedandassembled.Somecomponentsareoftenprefabricatedinthefabricationsupport
departmentbeforebeingdeliveredtothecabinetassemblers.Cabinetsandlidsarethen
fabricatedandprocessedthroughthepaintdepartment.Completed,paintedcabinetsandlids
arethendeliveredtothefinalassemblylines.Washerdoorsaretypicallypurchasedasan
assemblyanddeliveredtotheassemblylinetobeattachedtothecabinet.83
Next,thefabricationsupportdepartmentprocessesrawmaterialssuchassteelbar
stockandcoilsheetsteel.Purchasedsteelbarstockisformedandmachinedintocomponents
ofthewashsystemsanddrive.Coldrolledsheetsteeliscuttotheappropriatesize,stamped,
andformedusingcustomdiesdesignedbythepetitioner.Theformedpartsarecleanedand
paintedasnecessary.Suchfabricatedsteelcomponentsareusedinthecabinet,driveandthe
washunitassembly.84
Theplasticsformingdepartmentprocessesrawplasticpelletsorgranulesprimarilyinto
theplastictubsusedforthewashunitmodules.Thegranulesaremeltedandtheninjected
intoplasticmoldingequipment.Theequipmentusesmoldstoobtaintherequiredgeometry.
Oncethetubsarecreatedthroughthisprocess,theyaredeliveredtothefinalassembly
departments.85
Thewashsystemmoduleconsistsofabasket(drum)andplastictubejoinedtogether.
Thiscombinesproductsfromthefabricationandtheplasticsformingoperations.Theshellof
thebasketismadeofsteelthatisstampedtoshapeandweldedtogether.Thefabricationof
thebasketisautomated.Themetalshellofthebasketisfastenedtothetubeandshelltoform
thewashmodule.86
LRWmodulesaredesignedinhouseinWhirlpoolandthenproducedbyspecialty
producers.Theseincludethedrivesystem,LRWcontrols,literature,andlabels.
Thedrivesystemcomponents,whichincludesthemotor,transmission,seals,metal,andplastic
housings,aredesignedandsizedbyWhirlpoolengineers.Thesecomponentsarepurchased
fromspecializedproducersandthenfabricatedinotherdepartments.87
Thecontrols,aswellasinteriorandexteriorfeaturecomponentsaredesignedby
Whirlpoolengineersandthensuppliedbyspecialtymanufacturers.Thecompanyownsthedies
forallfeaturecomponents.Whirlpoolalsodesignsitsownelectronicshardwareandsoftware
andthencontractswithglobalsuppliersfortheproductionofelectronicdevicesand
assemblies.88
Thefinalassemblyconsistsofintegratingthepurchasedpartsandtheselfproduced
subassembliesonanassemblyline.Allcomponentsarepresentedtotheassemblyline,which
includethecabinet,washunit,drive,controlsystems,interiorandexteriorfeatures,literature,

83

Petition,p.19.
Petition,p.19.
85
Petition,p.19.
86
Petition,p.20.
87
Petition,p.19.
88
Petition,p.20.
84

I22

labels,andpackaging.Allthesecomponentsareassembledinadefinedordertoconstructthe
finishedwasher.Thefinalproductundergoestestingandinspectionandisvisuallyinspected
forfitandfinish.89
Thefinishedandinspectedproductisthentransferredtothepackagingareawhere
labelsareapplied,literatureisincluded,andthewasherispackaged.Beforetheunitis
automaticallyshrinkwrappedorpackagedinacorrugatedbox,anexternalprotective
packagingisappliedmanuallytotheunit.Thepackagedunitisthenshippedtoadistribution
center.90

DOMESTICLIKEPRODUCTISSUES
DomesticlikeproductissuesintheCommissionspriorLRWsinvestigations
InthepriorLRWsinvestigations,theCommissionaddressedtwoissueswithregardto
thedefinitionofthedomesticlikeproduct.Thefirstissue,raisedbyrespondentsinthe
preliminaryphase,waswhetherconventionaltoploadLRWs,highefficiencyfrontloadLRWs,
andhighefficiencytoploadLRWsshouldbeconsideredthreeseparatedomesticlikeproducts.
Thesecondissue,raisedinthefinalphaseinvestigationsasaresultofpetitionersamendment
ofthescopedefinitionwaswhethertoincludetoploadwasherswithacapacityoflessthan3.7
cubicfeetinthedefinitionofthedomesticlikeproductafterthoseproductshadbeenexcluded
fromthescope.Eachissueisdiscussedbelow.

WhetherCTL,HEFL,andHETPLRWsareseparatedomesticlikeproducts
Duringthepreliminaryphaseofthepriorinvestigations,respondentSamsungargued
thattheCommissionshouldfindthreeseparatedomesticlikeproducts:(1)conventionaltop
loadLRWswithagitators(CTL);(2)highefficiencyfrontloadLRWs(HEFL),whichdonot
haveagitators;and(3)highefficiencytoploadLRWs(HETL),whichalsodonothaveagitators.
TheCommissiondefinedasingledomesticlikeproductencompassingallLRWswithinthescope
oftheinvestigationsandstated:

{W}efindthat,onbalance,thepreponderanceofsimilaritiesover
differencesamongCTL,HETL,andHEFLLRWssupportsthedefinitionofa
singledomesticlikeproductthatiscoextensivewiththescopeofthe
investigations.AllthreetypesofLRWsoverlapsignificantlyintermsof
theirphysicalcharacteristicsanduses;manufacturingfacilities,processes,
andemployees;andchannelsofdistribution.HETLandHEFLLRWsalso
overlapsignificantlyintermsofinterchangeabilityandcustomerand
producerperceptions.Priceisthefactorthatmightsuggestthree
domesticlikeproducts,butevenwithrespecttopricethereissome

89

Petition,p.20.
Petition,pp.2021.

90

I23

overlap.Forthesereasons,wedefineasingledomesticlikeproduct
encompassingallLRWswithinthescopeoftheinvestigationsfor
purposesofthepreliminaryphaseoftheinvestigations.91

Inthefinalphaseofthepriorinvestigations,theCommissionagainfoundasingle
domesticlikeproductandstatedthattherewasnonewinformationontherecordofthefinal
phaseoftheinvestigationsthatwouldwarrantreconsiderationofourpreviousfindingthat
thereisnocleardividinglineseparatingCTL,HETL,andHEFLwasherswithintheamended
scope.92

Whethertoploadwasherswithacapacityoflessthan3.7cubicfeetshouldbeincludedin
thedefinitionofthedomesticlikeproduct

BeforethecommencementoftheCommissionsfinalphaseinvestigations,the
petitioneramendedthescopetoexcludetoploadwasherswithacapacityoflessthan3.7
cubicfeet.Duringthefinalphaseofitsinvestigations,theCommissionconsideredthe
relevanceoftheamendedscopetoitsdefinitionofthedomesticlikeproduct.93The
CommissionagaindefinedthedomesticlikeproductasallLRWsandincludedtoploadwashers
withacapacityoflessthan3.7cubicfeet.TheCommissionstated:

Therecordindicatesapreponderanceofsimilaritiesbetweentopload
washerswithacapacityoflessthan3.7cubicfeetandLRWsdescribedby
theamendedscope.Toploadwasherswithacapacityoflessthan3.7
cubicfeetandLRWsaregenerallyinterchangeableandsimilarintermsof
theirphysicalcharacteristicsanduses;manufacturingfacilities,processes,
andemployees;channelsofdistribution;andcustomerandproducer
perceptions.TheygenerallydifferfromLRWsintermsofprice,andeven
withrespecttothisfactorthereisoverlap.Giventheabsenceofanyclear
dividinglineseparatingdomesticallyproducedtoploadwasherswitha
capacitylessthan3.7cubicfeetfromthosewithlargercapacity,we
definethedomesticlikeproducttoincludebothLRWsasdescribedbythe

91

LargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA11991200
(Preliminary),PublicationNo.4306(February2012),p.9.
92
CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA1199
1200(Final),PublicationNo.4378(February2013),p.8.
93
See,PartI,Scopeofthisinvestigationvs.scopeofthepriorinvestigationonLRWs,supra.
Duringthefinalphaseofthepriorinvestigations,respondentsElectrolux,HomeDepot,LG,and
SamsungarguedthattheCommissionshouldfindasinglelikeproductcomprisingLRWsasoriginally
definedinthepetition(includingtoploadwashersunder3.7cubicfeetincapacity.LargeResidential
WashersfromKoreaandMexico,Inv.Nos.701TA488and731TA11991200(Final)StaffReport,INV
LL005,January10,2013),p.I22;CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.
701TA488and731TA11991200(Final),PublicationNo.4378(February2013),p.7.

I24

scopedefinition,andtoploadwasherswithacapacityoflessthan3.7
cubicfeet.94

DomesticlikeproductissuesinthecurrentLRWsinvestigation
Inthepresentinvestigation,petitionerarguedthattheCommissionshouldfindone
domesticlikeproductthatiscoextensivewiththescopeoftheinvestigationasdefinedby
Commerce.95RespondentsSamsungandLGarguedthattheCommissionshoulddefinethe
domesticlikeproductastheCommissiondidinitspriorinvestigationsandtherebyexpandthe
definitionofthedomesticlikeproducttoincludethethreeexclusionsthatpetitionerlistedin
thescopedefinition,namely(1)toploadlowtechresidentialwashers,(2)frontloadlow
techresidentialwashers,and(3)extrawideresidentialwashers.96Theycontendedthatthe
Commissionshouldadoptadefinitionofthedomesticlikeproductconsistentwithitsprior
findingsinitspriorinvestigations,whichrequiresadefinitionthatincludesallLRWsregardless
oftransmissiontechnologyorcabinetsize.Petitionerstatedthatitsoughttheseexclusions
becausetheybelievedthatwashermodelsfittingthesedefinitionsarenotproducedinthe
UnitedStates.Petitionerestimatedthatnoneoftheexclusionsaccountedformorethan0.5
percentofapparentdomesticconsumptioninanygivenyearduringtheperiodof
investigation.97Respondentscontestedthisassertionandstatedthateventhelimiteddataon
therecordshowthattheseexcludedwashersareamaterialandsignificantfactorinthe
market.98TheCommissioninquiredwhetherU.S.producersmanufacturedanylowtech
residentialwashersintheUnitedStatesduringtheperiodofinvestigation.99OfthefourU.S.
producers,***.100Itsreportedproduction,shareofU.S.production,andshareofU.S.apparent
consumptionarepresentedintableI4.

94

CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA1199
1200(Final),PublicationNo.4378(February2013),p.11.
95
Petition,p.36;Petitionerspostconferencebrief,p.21.
96
Respondentspostconferencebrief,pp.
97
Petitionerspostconferencebrief,AnswerstoStaffQuestions,p.8.
98
Respondentspostconferencebrief,p.6.
99
U.S.producerquestionnaire,questionsII3aandII5.TheCommissiondidnotrequestanydata
regardingextrawideresidentialwashers.
100
***.Foreignproducerquestionnaireof***,questionII4a.

I25

TableI4
LRWs:***productionof***andratiostoU.S.productionofLRWsandU.S.apparentconsumptionof
LRWs,201214,JanuarySeptember2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

RespondentsarguedthattheexcludedwashersexistwithinthecontinuumofLRWsand
thatthereissubstantialoverlapinphysicalcharacteristicsanduses,interchangeability,
channelsofdistribution,customerandproducerperceptionsoftheproducts,common
manufacturingfacilities,productionprocesses,andproductionemployees,andpriceandthat
giventhedegreeofsimilarity,thereisnobasistoexcludethesewashersfromthedefinitionof
thedomesticlikeproduct.101Respondentsfurtherargued,citingfourpastCommission
investigationsfrom1998to2000,thatitisimmaterialthatthedomesticindustrydoesnot
producetheexcludedwashersandstatedthattheyareunawareofanypastCommission
investigationinwhichthedomesticindustryproduceeveryproductalongacontinuum.102
PetitionerconcededthatifthereisindeedU.S.productionoftheexcludedproductsthenthey
areproperlyincludedinthedefinitionofthedomesticlikeproductbecausethereisnoclear
dividinglinebetweensuchproductsandLRWsascurrentlydefinedinthescopeofthis
investigation.103

101

TheCommissiongenerallyconsidersthefollowingfactorsindeterminingwhichdomesticproducts
arelikethesubjectimportedproducts:(1)physicalcharacteristicsanduses;(2)common
manufacturingfacilities,productionprocesses,andproductionemployees;(3)interchangeability;(4)
customerandproducerperceptions;(5)channelsofdistribution;and(6)price.
102
Respondentspostconferencebrief,p.16citingExtrudedRubberThreadfromMalaysia,Inv.No.753
TA34,PublicationNo.3112(June1998),at45;CertainColdRolledSteelProductsfromArgentinaetal,
USITCPub.3471at56;CertainHotRolledSteelProductsfromBrazil,Japan,andRussia,Inv.Nos.701
TA384(Preliminary),USITCPub.3142(November1998)at5,n.14;ExtrudedRubberThreadfrom
Malaysia,Inv.No.731TA527(Review),PublicationNo.3327(July2000)at7.
103
Petitionerspostconferencebrief,p.21.Petitionerstatedthatitsprepetitionmarketresearch
showedthatthelargestU.S.producersofLRWsduringtheperiodofinvestigation,WhirlpoolandGE,did
notproducetheseexcludedproducts.Petitionerdidnotconcede,however,thattheissueofwhether
thedomesticindustryproducestheexcludedproductsisimmaterialtotheCommissionsdomesticlike
productanalysis.Ibid.

I26

PARTII: CONDITIONSOFCOMPETITIONINTHEU.S.MARKET1
U.S.MARKETCHARACTERISTICS
MostsalesofLRWsaredirectlytoretailers.Fivelargenationalapplianceretailers(Best
Buy,HomeDepot,hhgregg,Lowes,andSears)accountformorethantwothirdsofsalesof
LRWsintheUnitedStates.23SearsshareoftheLRWmarkethasdeclinedbutitreportedly
remainsthetoponeortworetailer.4TherearealsoalargenumberofsmallerretailersofLRWs,
manyofwhichbelongtooneofthefourorfivemajorbuyinggroupsthatnegotiatepricesfor
groupsofthesesmallerretailers.5RetailerstendtomarketavarietyofLRWs,frommorebasic
modelstohigherendmodels,andbothfrontloadandtoploadmodels,aswellasavarietyof
brands.
MostsalesintheU.S.marketareofmanufacturersownbrands.However,Original
equipmentmanufacturer(OEM)sales,thevastmajorityofwhicharetoSearsforresaleunder
theKenmorebrandlabel,accountformorethan10percentofLRWsales.6Instoresales
continuetodominateonlinepurchases,althoughmanyconsumersresearchprices,quality,and
featuresonlinebeforegoingtothestore.7
FirmsdescribedseveralchangesinLRWproductrangeandmarketingsinceJanuary1,
2012.***reportedthatchangesincludedlargercapacitymachinesandanincreased
percentageoftoploadmodelswithimpellerwashsystems.***describedmarketingchanges,
inparticularincreasedleverageofretailersandpricecompression.***reportedseveral
changesincludingconsumersmovingawayfromfrontloadtotoploadmachines,8feature
innovations,reduceddemandforconventionalwashers,9thedeclineinSearsshareofthe
appliancemarket,andcontinuedproductlineexpansionatHomeDepotandLowes.New

Inthissection,Whirlpoolsresponsestoquestionsintheimportersquestionnairearenotincluded
whentheyarethesameasitsresponsestoquestionsintheU.S.producersquestionnaire.
2
Thesefiveretailersaccountedforapproximately68percentoftotalU.S.purchasesin2014.
Petition,p.40.***.HomeDepotaddedSamsunginDecember2012,andLGstartedsellingtoLowesin
2013.Conferencetranscript,p.152(Brindle)andpp.172173(Toohy).
3
***.
4
Conferencetranscript,p.45(Liotine).***.
5
Conferencetranscript,p.39(Liotine).
6
Petitionp.46.PetitionersreportedthatWhirlpoolistheprincipalsupplierofKenmoretoploads;
LGistheprincipal,butnotexclusive,supplierofKenmorefrontloads;andElectroluxmaysupplylower
endKenmoremodels.Conferencetranscript,p.129(Levy).Samsungreportedthatithasntparticipated
inbidstoSearsKenmoresinceearly2012.Conferencetranscript,p.240(Brindle).GEreportedthat***.
GEspostconferencebrief,p.5.
7
Onlinesalesarelessthan10percentoftotalsales.Thispercentageincludesbrickandclickin
whichthecustomershoppedatthestore,butthenpurchasedonline.Conferencetranscript,p.130
(Tubman).
8
***.
9
***.

II1

featureinnovationscitedby***werehighercapacityextrawidewashers,frontcontroltop
load,fasterwashcycles,andhighefficiencytoploadwashers.
Changesinthemarketoverthepastfewyearsincludetheintroductionoflarger
capacitytoploadmachines.10***reportedthatcapacityisthemostimportantfeaturefor
consumers.AsdiscussedinpartI,productchangeshavealsoresultedfromnewenergy
efficiencyregulationsimplementedinMarch2015.11***.12
ApparentU.S.consumptionofLRWsincreasedduring201214,andwashigherin
interim2015thanininterimin2014.Overall,apparentU.S.consumptionin2014was***
percenthigherthanin2012.

CHANNELSOFDISTRIBUTION
Salestodistributors,suchaslargeretailers,arethedominantchannelofdistribution
(tableII1).Over99percentofU.S.producedLRWsandLRWsimportedfromChinaand
nonsubjectsourcesweresoldtodistributors(includingretailers),ascomparedtoendusers.
AsmallpercentageofsalesintheU.S.marketaretobuildercontractors,including
buildingdistributors.13Respondentsclaimthatbuildersrepresentover8percentoftheLRW
market,andthatWhirlpoolandGEdominatethispartofthemarket.14GEreportedthat***
percentofitsLRWsalesweredirecttohomebuilders.15SamsungandLGreportedlydonotsell
tothecontractormarketbecausetheydonthavetherequiredregionaldistribution
infrastructure.16
Table II-1
LRWs: U.S. producers and importers U.S. commercial shipments, by sources and channels of
distribution, January 2012-September 2015

10

SamsungassertsthatWhirlpoolsintroductionoflowpricedlargecapacitytoploadmachineshas
ledtopricedeclinesacrosstheLRWmarket.
11
Whirlpoolhasredesignedallofitsentryleveltoploadwasherstouseanagipellerinsteadofa
conventionalagitator.Petition,p.50.
12
***.
13
About10to15percentofWhirlpoolssalesaretocontractors.Directsalestocontractorsare
throughdistributorsandWhirlpoolsemployeesalesorganization.Indirectsalesarecontractbusiness
soldthroughretailerssuchasHomeDepotandLowes.Conferencetranscript,p.106(Liotine).
Respondentsdefinethebuildermarketasdirecttobuildersandbuildingdistributors.Conference
transcript,p.235(Brindle).
14
Conferencetranscriptp.162(Brindle).
15
GEspostconferencebrief,p.6.
16
Conferencetranscript,p.175(Klett).***.

II2

GEOGRAPHICDISTRIBUTION
U.S.producersandimporterssellLRWstoanationalmarket(tableII2).AllfourU.S.
producersandbothsubjectimportersreportedsellingLRWstoallregionsinthecontiguous
UnitedStates.ForU.S.producers,***percentofsaleswerewithin100milesoftheir
productionfacility,***percentwerebetween101and1,000miles,and***percentwereover
1,000miles.Importerssold***percentwithin100milesoftheirU.S.pointofshipment,***
percentbetween101and1,000miles,and***percentover1,000miles.

Table II-2
LRWs: Geographic market areas in the United States served by U.S. producers and importers

SUPPLYANDDEMANDCONSIDERATIONS
U.S.supply
Domesticproduction
Basedonavailableinformation,U.S.producersofLRWs17havetheabilitytorespondto
changesindemandwithlargechangesinthequantityofshipmentsofU.S.producedLRWsto
theU.S.market.Themaincontributingfactortothisdegreeofresponsivenessofsupplyisthe
availabilityofunusedcapacity.

Industrycapacity
Domesticcapacityutilizationincreasedfrom***percentin2012to***percentin2014
asaresultofdecreasedindustrycapacityandincreasedproduction.Thismoderatelylowlevel
ofcapacityutilizationsuggeststhatU.S.producersmayhaveasubstantialabilitytoincrease
productionofLRWsinresponsetoanincreaseinprices.

Alternativemarkets
U.S.producersexports,asapercentageoftotalshipments,decreasedfrom***percent
in2012to***percentin2014,reflectingdecreasedexportsandincreasedU.S.shipments.This
levelofexportsindicatesthatU.S.producersmayhavesomeabilitytoshiftshipmentsbetween
theU.S.marketandothermarketsinresponsetopricechanges.***.

17

TherearefourU.S.producersofLRWs:Whirlpool,GE,Staber,andAlliance.

II3

Inventorylevels
U.S.producersinventories,asaratiotoU.S.shipments,declinedfrom***percentin
2012to***percentin2014.TheseinventorylevelssuggestthatU.S.producersmayhave
limitedabilitytorespondtochangesindemandwithchangesinthequantityshippedfrom
inventories.

Productionalternatives
ThreeofthefourrespondingU.S.producersstatedthattheycouldswitchproduction
fromLRWstootherproducts,althoughtheseproductsmighthavelowerdemand.***.

Supplyconstraints
NoU.S.producerreportedsupplyconstraints.***.18
SubjectimportsfromChina19
Basedonavailableinformation,producersofLRWsfromChinahavetheabilityto
respondtochangesindemandwithsmalltomoderatechangesinthequantityofshipmentsof
LRWstotheU.S.market.Themaincontributingfactorstothisdegreeofresponsivenessarethe
abilitytoproduceotherproducts,constrainedbylimitedavailablecapacityandarelatively
smallpercentageofshipmentstononU.S.markets.

Industrycapacity
Chineseproducerscapacityutilizationincreasedfrom***percentin2012to***
percentin2014,withbothindustrycapacityandproductionincreasingoverthisperiod.This
relativelyhighlevelofcapacityutilizationsuggeststhatChineseproducersmayhavealimited
abilitytoincreaseproductionofLRWsinresponsetoanincreaseinprices.

Alternativemarkets
TheU.S.marketwasthelargestmarketforChineseproducers,althoughtheshareof
totalshipmentstotheU.S.marketdecreasedfrom***percentin2012to***percentin2014.
ThislevelofexportsindicatesthatChineseproducersmayhavesomeabilitytoshiftshipments
betweentheU.S.marketandothermarketsinresponsetopricechanges.***.

18

***.
TheCommissionreceivedquestionnaireresponsesfromtwoChineseproducers,LGandSamsung.
TheexportsofthesetwofirmsaccountedforthevastmajorityofLRWimportsfromChina.
19

II4

Inventorylevels
Chineseproducersinventories,asaratiotototalshipments,declinedfrom***percent
in2012to***percentin2014.TheseinventorylevelssuggestthatChineseproducersmay
havealmostnoabilitytorespondtochangesindemandwithchangesinthequantityshipped
frominventories.

Productionalternatives
***.
Supplyconstraints
***.
Nonsubjectimports
Nonsubjectimportswere***percentoftheU.S.marketin2014.Thelargestsourcesof
nonsubjectimportsduringJanuary2012September2015wereKoreaandMexico.

U.S.demand
Basedonavailableinformation,LRWsdemandislikelytoexhibitsmalltomoderate
changesinresponsestochangesinprice.ThemajorityofpurchasesofLRWsaretoreplace
existingunitsthathavereached,orarecloseto,theendoftheirproductlife;asmallershare
areinitialpurchasesforanewhome;andtherearealsosomediscretionarypurchases.20About
twothirdsofLRWpurchasesaretoreplaceanexistingwasher,andtheremainderisrelatedto
homesales,renovations,andnewconstruction,althoughthepercentageofnewversus
replacementpurchasesvariesdependingonthehousingmarket.21LRWsreportedlyhavea7to
10yearlifespan.22
TheprincipalsubstitutesforLRWsareotherresidentialwashers,suchaslowtechand
extrawidewashers,andstackedwasher/dryers.Theseotherwashersareasmallpartofthe
U.S.marketforresidentialwashers,anddemandfortheseproductslikelyhasasmalleffecton
demandforLRWs.

20

***.Respondentspostconferencebrief,p.32.
Petition,p.50.Duringperiodsoflowhousinggrowth,replacementdemandmayaccountforupto
70percentofdemandwhileinperiodsofhighhousinggrowth,thepercentagemaybeaslowas55
percent.Conferencetranscript,p.122(Liotine).
22
Conferencetranscript,p.183(Klett).
21

II5

Businesscycles
TwooffourU.S.producers23andtwoofthreeimportersindicatedthattheLRWmarket
wassubjecttobusinesscyclesorconditionsofcompetition.FirmsgenerallydescribedLRW
businesscyclesasconsistingofimportantpromotionalperiods(centeredaroundparticular
holidays)inwhichlargevolumesofsalesoccur.Whirlpoolestimatesthatsalesduringholiday
promotionalevents(i.e.,PresidentsDay,MemorialDay,LaborDay,ColumbusDay,andBlack
Friday)compriseatleasthalfofitssales.24Retailer***reportedthat***percentofitssales
wereonBlackFridayandJuly4.25
***statedthatBlackFridaywasthebiggestpromotionholiday,followedbyMemorial
Day,LaborDay,July4th,PresidentsDayandEarthDay.Italsostatedthatpromotionsalso
occuraroundnewproductintroductions.Itreportedincreasinglyfrequentandaggressive
promotionsandpricing,particularlyduringholidaysandtheintroductionofnewproducts.***
statedthatthereissomeseasonalityinsales,withholidaypromotionsconcentratedinthe
fourthquarter.***alsonotedseasonalityinsales,particularlyaroundBlackFriday,and,toa
lesserextent,LaborDayandtheFourthofJuly.***statedthatholidaypromotionsdrive
purchaserdemand.
Inadditiontoshortertermcycles,***alsodescribedlongertermdemandcyclesbased
ontheneedtoreplaceexistingunitsandsalesofnewunitstiedtonewresidentialhousing,as
wellasasmallerportionofdiscretionarypurchases.Itstatedthatsalesofnewunitsand
discretionarypurchasestendtobetiedmoretothehousingmarketandgeneraleconomy.It
alsostatedthatforthereplacementmarket,sincewashersareconsideredanecessity,
purchasesgenerallyoccuronaverageevery10years.Itaddedthatsincesalesvolumeswere
highin20042007,replacementmarketsalesareexpectedtobestrongforthenextseveral
years.

Demandtrends
MostfirmsreportedanincreaseinU.S.demandforLRWssinceJanuary1,2012(tableII
3).Ontheotherhand,mostfirmsreportedthatdemandoutsidetheUnitedStateshad
fluctuated,with***reportingthatdemandvariedamongstinternationalmarkets.
PetitionersattributedmoderategrowthinU.S.demandforLRWstoincreasedhome
sales,homeconstruction,andhomerenovations.26Respondentsalsoattributedincreased
demandtotheimprovementinthehousingmarketandestimatedthatdemandhasincreased
by25percentfrom2012to2015,andwillgrowby6percentin2016.27Theyfurtherstatedthat
23

***indicatedthattheLRWmarketwasnotsubjecttobusinesscyclesordistinctiveconditionsof
competition.
24
Petition,p.43.
25
Emailfrom***.
26
Petition,p.50.Conferencetranscript,pp.121122(Liotine).
27
Demandwasreportedlyparticularlystronginthetwomostrecentquartersof2015.Conference
transcript,p.156(Brindle),p.182(Klett).

II6

consumersdeferredpurchasesduring200612,creatingpentupdemandforLRWs.28In
addition,SamsungstatedthatitsinnovationshavehelpedcreatenewdemandforLRWs,with
50percentofSamsungcustomerspurchasingtheirproductbeforetheirwasherfailed,including
28percentbuyingwithnoduresstotheirunit.29

Table II-3
LRWs: Firms responses regarding U.S. demand and demand outside the United States

TheU.S.housingmarketimprovedduringtheperiodofinvestigation.Housingstarts
increasedeachyearduring201215,upby67percentbetweenJanuary2012andSeptember
2015(figureII1).Existinghomesalesalsotrendedupwards,increasingby24percentfrom
January2012toSeptember2015(figureII2).Similarly,homeremodelingalsoincreased,with
theremodelingmarketindexincreasingby21.6percentbetweenfirstquarter2012andthird
quarter2015.30

28

Conferencetranscript,p.183(Klett).
Conferencetranscript,pp.155156,203(Brindle).Petitionersdonotagreethattheintroductionof
newfeaturesandinnovationincreasedaggregatedemandinthemarket.Petitionerspostconference
brief,p.19.
30
NationalAssociationofHomeBuilders,RemodelingMarketIndex,
http://www.nahb.org/en/research/housingeconomics/housingindexes/remodelingmarketindex.aspx,
retrievedJanuary12,2016.
29

II7

Figure II-1
U.S. housing starts: New privately owned housing units started, seasonally adjusted annual rate,
January 2012-November 2015
1,400

Thousands of units

1,200
1,000
800
600
400
200
0
2012

2013

2014

2015

Source: U.S. Census Bureau, http://www.census.gov/construction/nrc/historical_data/index.html, retrieved


January 12, 2016.
Figure II-2
U.S. home sales: Existing home sales, seasonally adjusted annual rate, January 2012-November
2015
6,000

Thousands of units

5,000
4,000
3,000
2,000
1,000
0
2012

2013

2014

2015

Source: National Association of Realtors, http://www.realtor.org/topics/existing-home-sales, retrieved


January 12, 2016.

SUBSTITUTABILITYISSUES
ThedegreeofsubstitutionbetweendomesticandimportedLRWsdependsuponsuch
factorsasquality,featuresoffered,andconditionsofsale(e.g.,pricediscounts/rebates,lead

II8

timesbetweenorderanddeliverydates,paymentterms,productservices,etc.).Basedon
availabledata,staffbelievesthatthereisamoderatetohighdegreeofsubstitutabilitybetween
domesticallyproducedLRWsandLRWsimportedfromChina.

Leadtimes
LRWsareprimarilysoldfrominventory.U.S.producersreportedthat***percentof
theircommercialshipmentsweresoldfrominventory,withleadtimesaveragingabout***
days.Importersofsubjectproductreportedthat***percentofsaleswerefromU.S.
inventorieswithleadaveraging***days,and***percentwerefromforeigninventorieswith
leadtimesaveraging***days.Lessthan***ofsubjectimportshipmentswereproducedto
order,withleadtimesaveraging***days.

Factorsaffectingpurchasingdecisions
Purchasersrespondingtolostsaleslostrevenueallegations31wereaskedtoidentifythe
mainpurchasingfactorstheirfirmconsideredintheirpurchasingdecisionsforLRWs.The
factorsmostoftenlistedbyfirmswereprice,profitability,quality,productdesign,innovation,
features,consumerdemand,brandawareness,andavailability.
Pricewasthemostoftenreportedfirstfactoramongthe19purchasersrespondingto
thesurvey.However,thelargestretailerslistedotherfactorsfirst,includingfeature/value
equation,appealtocustomers,brandawareness,andmarketingmultiplemajorbrands.
Specifically,***.
LargeretailersprovidedmanyotherfactorsconsideredintheirLRWpurchases.Other
factorslistedby***,32and***.
InthepreviousLRWinvestigations,inratingtheimportanceof21specifiedfactorsin
theirpurchasingdecisions,purchasersmostoftenrankedavailability,marginopportunity(i.e.,
potentialprofitability),andfit,finish,andfeelasveryimportantfactors,followedbyprice,
qualitymeetingindustrystandards,anddesign/styling.33

Platforms
SalesofLRWshaveshiftedawayfromfrontloadmachinestowardtoploadmachinesas
thehighercapacitytoploadmachineshavebeenintroduced.Frontloadmachinesarenow
reportedlylessthan25to30percentofsales.34Consumersreportedlycrossshopbetweentop

31

ThisinformationiscompiledfromresponsesbypurchasersidentifiedbyPetitionersandotherU.S.
producerstothelostsaleslostrevenueallegations.SeePartVforadditionalinformation.
32
***.
33
CertainLargeResidentialWashersfromKoreaandMexico,InvestigationNos.701TA488and731
TA11991200(Final),USITCPublication4378,February2013,p.II13.
34
Postconferencebrief,p.124(Liotine)andp.233234(Brindle).

II9

loadandfrontloadplatforms.Petitionerscontendthatcrossshoppinghasincreasedbecause
ofthechangesintoploaddesignsresultingfromthefederalenergystandardchanges.35

Innovationandfeatures
BothWhirlpoolandrespondentsLGandSamsungclaimtohaveledinnovationinLRWs.
Whirlpoolclaimstohavefirstbroughttothemarketanumberofinnovationsindesign,
advancedtechnology,convenience,andperformance.36RespondentsassertthatLGand
SamsunghaveledinLRWinnovation,andthatWhirlpoolhasbeenafollower.37Innovations
citedbyrespondentsincludeSamsungsvibrationreductiontechnology,reducedcycletimes,
largercapacityfrontloadwashers,anditsActiveWashfeature,andLGsfrontcontroltopload
design,TurboWash,andTwinWashsystems.38
SamsungandLGreportedthatabout35percentoftheirLRWsalesarecolorsotherthan
white,withahigherpercentageofcolormodelsinpremiumandfrontloadmodels.39The
percentageofcolorLRWsforfrontloadershasincreasedfrom25percentfouryearsagoto40
percentnow,withsimilarpercentagesforWhirlpoolfrontloadmodels.40

Brandingandmarketstudies
Asnotedpreviously,severalpurchasersnamedbrandacceptanceasatopfactorintheir
purchasedecisions.WhirlpoolsellssevendifferentLRWbrandsintheU.S.market,including
Whirlpool,Maytag,andAmana.41WhirlpoolreportedthatWhirlpoolandMaytagbrandmodels
arealongtheentirecontinuumofmodels,whereastheAmanabrandisgenerallylowerend,
(basicorgood).42Accordingtorespondents,LGandSamsunghaveabrandadvantageover
WhirlpoolinLRWs,particularlyamongyoungerconsumers.43Samsungstatedthatbrand
recognitionandconsumerpreferenceforitsbrandhastripledsincethepreviousLRW
investigation.44
BothWhirlpoolandrespondentscitedtopublicationsandsurveysshowingthattheir
brandsandmodelsareratedhighlybyconsumersandindependenttesters.Accordingtothe
petitioner,WhirlpoolandGEhaveconsistentlybeenrankedinthetop10byConsumerReports

35

Petitionerspostconferencebrief,p.11.
Petitionerslisttheseinnovationsintheirpostconferencebriefatexh.8.
37
Respondentspostconferencebrief,pp.2732.Petitionerdisputessomeofrespondentsclaimed
innovations.SeePetitionerspostconferencebrief,AnswerstoStaffQuestions,pp.67.
38
Respondentspostconferencebrief,pp.2732,andexh.18.
39
Conferencetranscript,p.201(BrindleandKim).
40
Conferencetranscript,p.202(Brindle).
41
Petition,p.4.
42
SeePetitionerspostconferencebrief,AnswerstoStaffQuestions,p.15.
43
Respondentspostconferencebrief,pp.1922.Conferencetranscript,p.151(Brindle)andp.168
(Herring).
44
Conferencetranscript,p.200(Brindle).
36

II10

forLRWs.45SamsungreportedlywasrankednumberoneincustomersatisfactionbyJDPower
intoploadandfrontloadwashers.46WhirlpoolswitnessstatedthatWhirlpoolmaynotdoas
wellinJDPowerrankingsbecauseJDPowersurveysconsumersandincludesprice,unlike
ConsumerReportswhichusesindependentlabtesting.47

Floorspace
Allofthelargeretailers,andmanysmallerretailers,allocatefloorspaceforselected
washermodels.Retailersseektodisplayanassortmentofmodelsandbrandsatarangeof
pricepointstoserveawidevarietyofcustomers.48Inadditiontodecidingwhetherornotto
flooramodel,retailersalsoallocatewhereontheflooramodelisplaced,forexample,end
capsattheendofaisles.Floorspotsareawardedbasedonnegotiationsforthemargins
retailerscanreceivebasedonthelowestwholesalepriceandpromotionalsupport.Thereare
additionalnegotiationsduringthebigpromotionalperiodssuchasBlackFridayandJuly4,for
thebestfloorspace(includingendcapsplacements)andflyeroradvertisingsupport.Retailers
doalinereviewonannualbasisinwhichtheyrevieweachproductinamanufacturersproduct
line.49Thepetitioneremphasizedtheimportanceofproductsgettingfloorspace,sincemost
consumerswanttoseeawasherbeforetheybuyit,andonlythosemodelsonthefloorare
featuredinadvertising.50Theyalsocontendthatlossofafloorspotaffectsthesalesofother
washersinaproducerslineup.51
Amongpurchaserssurveyedinthepreviousinvestigation,ofthepurchasersthat
indicatedthattheyallocatedfloorspacetodifferenttypesofLRWsatdifferentprices,most
citedconsumerdemandandtheprofitabilityofindividualunitsasreasonsforflooring.52Inthat
investigation,HomeDepotstatedthatthedifferenceinitsmarginsbetweenhigherpriced
LRWsandlowerpricedwashersarenotusuallylarge,sothatitaimstofloormodelsthatwill
generatelargesalesvolumesratherthanflooringbasedpredominantlyonmargin.53
PurchasersresponsestotheLSLRsurveyregardingfloorspacearediscussedinpartV.

45

Petition,p.52.
Conferencetranscript,p.157(Brindle).
47
Conferencetranscript,pp.103104(Tubman).
48
Forexample,***.
49
Thelinereviewinvolvesdiscussionsofeachindividualproduct,aswellasmargins,discounts,and
promotions.Petition,p.41.Conferencetranscript,pp.116118(Tubman).
50
Petitionerspostconferencebrief,pp.910.
51
Petition,p.41.
52
CertainLargeResidentialWashersfromKoreaandMexico,InvestigationNos.701TA488and731
TA11991200(Final),USITCPublication4378,February2013,p.II17.
53
CertainLargeResidentialWashersfromKoreaandMexico,InvestigationNos.701TA488and731
TA11991200(Final),USITCPublication4378,February2013,pp.II1617.
46

II11

ComparisonofU.S.producedandimportedLRWs
InordertodeterminewhetherU.S.producedLRWscangenerallybeusedinthesame
applicationsasimportsfromChina,U.S.producersandimporterswereaskedwhetherthe
productscanalways,frequently,sometimes,orneverbeusedinterchangeably.As
shownintableII4,U.S.producersreportedthatLRWsfromallsourceswerealwaysor
frequentlyinterchangeable.Importers***reportedthatproductsforallsourceswere
sometimesinterchangeable,while***reportedthatLRWsfromothersourceswerealways
interchangeablewithdomesticproduct.
Respondentsassertthatinterchangeabilityislimitedbecauseofdifferencesinproducts
andmarkets.LGandSamsungcontendthattheysellonlyinthehighendofthemarketanddo
notcompeteinconventionaltoploadwasherswithagitatorswhichcomprisealargeportionon
U.S.production.54
Otherproductdifferencescitedbyrespondentsincludefeatures,branding,designs,
easeofuse,fitfeelandfinish,features(color,numberofcycles,typeoflid,heater,steam,
controltype,etc.),warranties,andinnovationsintroducedbeforedomesticproducers.

Table II-4
LRWs: Interchangeability between LRWs produced in the United States and in other countries, by
country pairs

Inaddition,producersandimporterswereaskedtoassesshowoftendifferencesother
thanpriceweresignificantinsalesofLRWsfromtheUnitedStates,subject,ornonsubject
countries.AsseenintableII5,***.
Table II-5
LRWs: Significance of differences other than price between LRWs produced in the United States
and in other countries, by country pair

Infurthercomments,***.55***.56***.Accordingtorespondents,consumers
purchasingdecisionsforhigherendwashersarenotdrivenbyprice,butbyotherfactors
includingbrandperception,quality,reliability,consumerreviews,capacity,design,style,
controlsfeelanduse,andfeatures.57

54

Accordingtorespondents,39.5percentofsalesareinthevaluesegmentofthemarket
consistingoftoploaderswithagitators.Conferencetranscript,p.162(Brindle),andpp.17072(Toohy).
55
***.
56
***.
57
Respondentspostconferencebrief,p3.Conferencetranscript,pp.156157(Brindle).

II12

PARTIII: U.S.PRODUCERSPRODUCTION,SHIPMENTS,AND
EMPLOYMENT

TheCommissionanalyzesanumberoffactorsinmakinginjurydeterminations(see19
U.S.C.1677(7)(B)and1677(7)(C)).Informationonthedumpingmarginswaspresentedin
PartIofthisreportandinformationonthevolumeandpricingofimportsofthesubject
merchandiseispresentedinPartIVandPartV.Informationontheotherfactorsspecifiedis
presentedinthissectionand/orPartVIand(exceptasnoted)andisbasedonthequestionnaire
responsesoffourfirmsthataccountedforallU.S.productionofLRWsduringperiodof
investigation.

U.S.PRODUCERS
TheCommissionsentU.S.producerquestionnairestosevenfirms1whichincludedthose
firmsidentifiedinthepetitionasU.S.producersofLRWsaswellasU.S.producersofLRWsin
theCommissionspriorinvestigationsonLRWs.2TheCommissionreceivedresponsesfrom
fourfirmswhichaccountedforalldomesticproductionofLRWsduringtheperiodof
investigation.3TableIII1listsU.S.producersofLRWs,theirproductionlocation(s),positionson
thepetition,totalproduction,andsharesoftotalproductionduringtheperiodofinvestigation.

Thesesevenfirmsincluded:(1)Whirlpool;(2)GE;(3)Staber;(4)AllianceLaundrySystemsLLC;(5)
ElectroluxHomeProducts,Inc.;(6)BSHHomeProducts,Inc.(BSH);and(7)Fisher&Paykel.
2
DuringtheperiodofinvestigationoftheCommissionspriorinvestigationsonLRWs,threefirms
ceasedLRWproductionoperationsintheUnitedStates.BSH,whichproducedfrontloadLRWs,closed
itsNewBern,NorthCarolinafacilityinMay2011.Electrolux,whichproducedfrontloadLRWs,closed
itsfacilityinWebsterCity,IowainApril2011.ElectroluxcurrentlyproducesandimportsintotheUnited
StatesfrontloadLRWsfromitsfacilityinJuarez,Mexico.Fisher&PaykelproducedtoploadLRWsatits
facilityinClyde,Ohiountillate2009.Subsequently,ittransferredthisproductiontoitsfacilityinAmata
City,Thailand.In2012,HaierGroupofQingdao,ChinapurchasedFisher&Paykel.LargeResidential
WashersfromKoreaandMexico,Inv.Nos.701TA488and731TA11991200(Final)StaffReport,INV
LL005,January10,2013),p.III1;CertainLargeResidentialWashersfromKoreaandMexico,Inv.Nos.
701TA488and731TA11991200(Final),PublicationNo.4378(February2013),p.III1.
3
TheCommissionalsoreceivedaquestionnaireresponsefromBSHwhichstated***.Asof2015,
BSH,foundedasajointventurebetweenRobertBoschGmbHandSiemensAGisexclusivelyownedby
theBoschGroup.

III1

TableIII1
LRWs:U.S.producersofLRWs,theirpositionsonthepetition,productionlocations,production,and
sharesofreportedproduction,January2012toSeptember2015

Firm
Alliance
GE1
Staber
Whirlpool2
Total

Positiononpetition
***
***
***
Petitioner

Production
location(s)
Ripon,WI
Louisville,KY
Groveport,OH
Clyde,OH

Shareof
production
(percent)
***
***
***
***
100.0

GEAProducts,LP(GE)isawhollyownedsubsidiaryofGeneralElectricCorp.andaU.S.importerofLRWsfromnonsubject
countries.GEisaminorityjointventurepartnerinMabeS.A.deC.V.,aproducerofLRWsinMexicoandLittleSwanGeneral
ApplianceCo.,Ltd.(China),aproducerofoutofscopeLRWsinChina.
2
WhirlpoolOverseasManufacturingS.a.r.l.ofApodaca,MexicoisawhollyownedsubsidiaryofWhirlpoolCorp.ofBenton
Harbor,MIandproducesLRWsinMexico.Asof2012,thefirmdidnotexportLRWstotheUnitedStates.

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

Whirlpool
Whirlpool,foundedin1898andheadquarteredinBentonHarbor,Michigan,isa
manufacturerandmarketerofhomeapplianceswithnetsalestotalingapproximately$20
billionandnetearningsof$650millionin2014.Globally,thefirmemployedapproximately
100,000employeesin70manufacturingandtechnologyresearchcentersin2014.It
manufacturesandmarketsproductsgloballyunderbrandnames,suchasWhirlpool,
KitchenAid,Maytag,Consul,Brastemp,Amana,Bauknecht,JennAirandIndesit.Itsprincipal
productsarelaundryappliances,refrigeratorsandfreezers,cookingappliances,dishwashers,
mixersandotherportablehouseholdappliances.Thefirmreportsearningsbygeographic
segment,whichconsistofNorthAmerica,LatinAmerica,EMEA(Europe,MiddleEastandAfrica)
andAsia.TheNorthAmericasegmentproduces,markets,anddistributeshomeappliancesand
portableappliancesunderavarietyofbrandnames,primarilyWhirlpool,Maytag,KitchenAid,
JennAir,Amana,Roper,Admiral,AffreshandGladiator,primarilytoretailers,distributorsand
builders.4
In2010,WhirlpoolbeganproductionoffrontloadLRWsintheUnitedStatesafter
investing$100milliontoexpanditsexistingfacilityinClyde,Ohio.Priorto2010,Whirlpool
suppliedfrontloadLRWstotheU.S.marketfromWhirlpoolsfacilitiesinGermanyand
Mexico.5Awhollyownedsubsidiary,WhirlpoolOverseasManufacturingS.a.r.l.(Whirlpool

WhirlpoolSECForm10Q,September30,2015;www.whirlpool.com/ourcompany/,accessed
January11,2016.
5
WhirlpoolstatedthatitsmanufacturingfacilityinGermanyceasedproductionofLRWsinthefirst
quarterof2013andthatthereiscurrentlynoproductionoccurringatthefacility.Whirlpoolceasedits
(continued...)

III2

Mexico),producedandexportedLRWstotheUnitedStatesduringtheperiodofinvestigation
ofthepriorinvestigation.However,effectiveJuly16,2012,WhirlpoolMexicoceasedexports
ofLRWstotheUnitedStatesandcurrentlyproducesLRWsforsaleinnonU.S.markets.
Anotherwhollyownedsubsidiary,WhirlpoolBauknechtHausgerateGmbH(Whirlpool
Germany),***.

GeneralElectric
GeneralElectric,foundedin1892andheadquarteredinFairfield,Connecticut,isaglobal
diversifiedinfrastructureandfinancialservicescompanyofferingproductsandservicesranging
fromaircraftengines,powergeneration,oilandgasproductionequipment,andhousehold
appliancestomedicalimaging,businessandconsumerfinancingandindustrialproducts.The
Companyoperatesinapproximately175countriesthrougheightbusinesssegments,which
include(1)appliances&lighting;(2)aviation;(3)capital;(4)energymanagement;(5)
healthcare;(6)oilandgas;(7)powerandwater;(8)transportation.In2014,GEreported$148.6
billioninrevenueand$15.3billioninearningsfromcontinuingoperations.Globally,thefirm
employedapproximately305,000employees2014.6
In2010,GEsappliancesdivision(GE)initiateda$150millioninvestmentatits
Louisville,Kentuckyfacility(AppliancePark)toproducetoploadandfrontloadLRWsinthe
UnitedStates.In2012,GEbeganproducingtoploadLRWsatAppliancePark.GEpreviously
sourceditstoploadLRWs***.7In2013,GEbeganproductionoffrontloadLRWsatAppliance
Park.
GeneralElectrichasbeenintheprocessofamultiyearmajorrestructuringwherethe
companyhasannouncedthatitwishestofocusonitscoreindustrialbusinessesandthereby
reducethenumberofitsconsumerandfinancialbusinesssegments.Aspartofthis
restructuring,inSeptember2014,GeneralElectricannouncedthatitwassellingitsappliances
divisiontoElectroluxADofStockholm,Sweden.TheU.S.DepartmentofJusticefiledtostopthe
mergerinJuly2015,arguingthatitwouldleadtolesscompetitionandhigherpricesforbuyers
ofappliances.OnDecember7,2015,GeneralElectricannouncedthatitterminatedits
agreementtosellitsappliancesdivisiontoElectroluxandwouldnowpursueotheroptionsto
sellthedivision.8OnJanuary15,2016,GeneralElectricannouncedthatitenteredintoa
definitiveagreementtosellitsappliancesdivisiontotheChinesecompany,QingdaoHaierCo.,
Ltd.(Haier),for$5.4billion.Theannouncementstatedthatthetransactionhasbeen
approvedbytheboardofdirectorsofGeneralElectricandofHaier,butremainssubjectto

(continued)
U.S.importsofLRWsfromMexicoinmid2012,however,themanufacturingfacilitycontinuesto
produceLRWsonasmallerscalefortheMexicanhomeandSouthAmericanmarkets.Whirlpools
postconferencebrief,AnswerstoCommissionQuestions,p.8;Conferencetranscript,p.75(Liotine).
6
GeneralElectricCo.Form10K,2014;http://www.ge.com/aboutus/building,accessedJanuary11,
2016.
7
LargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA11991200
(Final)StaffReport,INVLL005,January10,2013),p.III12.
8
GEPressRelease,December7,2015,GEStatementonAppliancesBusiness.

III3

Haiershareholderandregulatoryapprovals.Partiesestimatethatthetransactionwillclosein
mid2016.9

Staber
Staberisaprivate,familyownedfirmheadquarteredinGroveport,Ohio,thatproduces
LRWsanddryingcabinets,whichservethemedical,fireandlaundryequipmentsectors.In
1976,Staberbeganasafirmthatremanufacturedlaundryequipmentfromother
manufacturerssuchasMaytag,Whirlpool,GEandSpeedQueen.Subsequently,Staber
implementedandpatenteddesignimprovementsforanewtypeofclotheswasher.This
uniquetoploadwashertechnologyusesanoncirculartubonahorizontalaxis,whichcanhold
uptotwiceasmuchlaundrythanatoploadLRWwithanagitator.10Staberwashershavebeen
producedinGroveport,Ohiosince1993andmostofitssalesareshippedfactorydirecttothe
enduser.11

Alliance
Allianceisaprivatelyheldcorporationwhichwasfoundedin1908andheadquartered
inRipon,Wisconsin.Itmanufacturesandmarketsprimarilycommerciallaundryequipment.
Thefirmproduceswashersanddryersforcoinoperatedlaundries,multihousinglaundries,and
someLRWsforresidentialuse.AllianceLaundrySystemsmanufacturesproductsunderthe
brandsSpeedQueen,Cissell,Huebsch,IPSO,andUniMac.Allianceproducesandmarketsits
residentialLRWsundertheSpeedQueenbrandname.12In2014,Alliancereportedtotalglobal
revenuesof$726.3millionandnetincomeof$29.6million.13Alliancereportedthatin2014,
***percentofitstotalproductionwereLRWswhereas***percentwerecommercial
washers.14Itreported***duringtheperiodofinvestigation.15

GEAgreestoSellAppliancesBusiness,GEPressRelease,January15,2016,
http://www.genewsroom.com/pressreleases/geagreessellappliancesbusiness282595,accessed
January15,2016.
10
Staberdescribeditsuniquewashertechnologyasconsistingofahexagonalinnerbasketthat
rotatesinsideastationaryouteroctagonaltubtogentlypumpwaterthroughtheholesoftheinner
basketandthroughthelaundry.Astheanglesbetweentheinnerbasketandoutertubchangewhile
theinnerbasketrotates,apassivepumpingactioniscreatedbetweenthetwo,whichgentlypumps
waterthroughtheholesoftheinnerbasketandthroughyourlaundry.Staberspostconferencebrief,
pp.12.
11
http://www.staber.com/aboutus,accessedJanuary11,2016.
12
http://www.alliancelaundry.com/aboutus/,accessedJanuary11,2016.
13
AllianceLaundryHoldingsLLC,AnnualReport,2014.
14
U.S.producerquestionnaireofAlliance,questionII3a.
15
Ibid.atquestionII2.

III4

U.S.PRODUCTION,CAPACITY,ANDCAPACITYUTILIZATION
TableIII2presentsU.S.producersproduction,capacity,andcapacityutilization.Total
U.S.capacityofLRWsdecreasedby***percentfrom2012to2014,butwashigherby***
percentinJanuarySeptember2015thaninJanuarySeptember2014.TotalU.S.productionof
LRWsincreasedfrom2012to2014by***percentbutwaslowerby***percentinJanuary
September2015thaninJanuarySeptember2014.U.S.capacityutilizationratesforLRW
productionincreasedformuchoftheperiodofinvestigationandrangedfrom***percentin
2012to***inJanuarySeptember2014.16

TableIII2
LRWs:U.S.producersproduction,capacity,andcapacityutilization,201214,JanuarySeptember
2014,andJanuarySeptember2015
*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

PotentialproductshiftinginU.S.productionfacilities
***reportedthattheyareabletoswitchproductionfromLRWstoanotherproduct
usingthesamemanufacturingequipmentandlabor.17***reportedthattheyproduced
productsotherthanLRWsonthesamemanufacturingequipment.***.18***.19***.20***.21
***oflowtechLRWswhich***oftotaloverallproductionduringtheperiodof
investigation.22TableIII3presentsoverallU.S.capacityandproductiononmanufacturing
equipmentusedtoproduceLRWsandotherproducts.

16

PetitionerstatedthatalthoughU.S.capacityutilizationratesincreasedthiswaslargelyduetoa
***.Petitionerspostconferencebrief,p.39.
17
U.S.producerquestionnaireresponsesof***,questionII3e(i).
18
U.S.producerquestionnaireof***,questionII3a.
19
U.S.producerquestionnaireof***,questionII3a.
20
U.S.producerquestionnaireof***,questionII3a.
21
U.S.producerquestionnaireof***,questionII3a.
22
Ibid;Respondentsarguedthatthedefinitionofthedomesticlikeproductshouldbeexpandedto
includetheselowtechLRWs.SeePartI,DomesticLikeProductIssues.

III5

TableIII3
LRWs:U.S.producersoverallcapacityandproductiononthesameequipmentassubjectproduction,
201214,JanuarySeptember2014,andJanuarySeptember2015
*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

Whirlpoolsforeigntradezone(FTZ)productionactivities
In2012,WhirlpoolappliedtotheForeignTradeZoneBoardtocreateaforeigntrade
subzonethatwouldencompassitsentireClyde,OHmanufacturingfacility.23Whirlpoolstated
thatcommencingin2013,itadmittedintotheFTZvariousoutofscopeLRWcomponentsfrom
variouscountriesoforigin,includingChina,foruseintheproductionofLRWsattheClyde,OH
manufacturingfacility.24ItfurtherstatedthatusingtheFTZstructureallowedWhirlpoolto
minimizetariffliabilitywhilemaintainingitsglobalcomponentssupplychain.25PursuanttoFTZ
regulations,productionactivities26mustbeapprovedbytheFTZboardandU.S.Customs

23

ForeigntradezonesaresecureareasunderthesupervisionofU.S.CustomsandBorderProtection
thatareconsideredoutsidethecustomsterritoryoftheUnitedStatesforthepurposesofduty
payment.AuthorityforestablishingthesefacilitiesisgrantedbytheForeignTradeZonesBoardunder
theForeignTradeZonesActof1934,asamended(19U.S.C.81a81u),andtheBoardsregulations(15
C.F.R.Part400).TheExecutiveSecretariatoftheBoardislocatedwithinEnforcementandCompliance
divisionoftheU.S.DepartmentofCommerce.76thAnnualReportoftheForeignTradeZonesBoardto
theU.S.CongressoftheUnitedStates,August2015,p.1.WhirlpoolsFTZsubzoneis8I,locatedinClyde.
ItisasubzoneofFTZ8,ToledoLucasCountyPortAuthority.
24
ForanexampleofthetypeofforeigncomponentsadmittedintotheFTZ,Whirlpoolsubmittedan
applicationforproductionactivitiestotheFTZboardthatnamedthefollowingcomponents:self
tappingscrews,screws,bolts,washers,articlesofsteel,basemetalmountings,housingsforwaxmotors,
appliancefans,waterfilters,variousDCmotors,variousACmultiphasemotors,lampsockets,halogen
lamps,powercords,wireharnesses,carbonbrushassemblies,pressuresensorsandthermostats.
ForeignTradeZone(FTZ)8Toledo,Ohio,NotificationofProposedProductionActivity,Whirlpool
Corporation,Subzone8I,(WashingMachines),ClydeandGreenSprings,Ohio,78FR64197,October28,
2013.
25
PetitionerexplainedthattariffsavingsoccurswhentheforeigncomponentsadmittedintotheFTZ
haveahigherdutyratethanafinishedwasher.Inthosecases,theforeigncomponentswillbeclassified
asthefinishedwasherwhentheyarewithdrawnfromtheFTZandwillbesubjecttothelowerduty
applicabletofinishedwashers.U.S.producerquestionnaireofWhirlpool,questionII6(b);Petitioners
postconferencebrief,AnswerstoStaffQuestions,pp.1112.
26
UnderFTZregulations,"manufacturing"meansanyproductionactivitiesthatresultinasubstantial
transformationofaforeignarticletoanewanddifferentarticlehavingadifferentname,character,and
use,orwhichcausesachangeinitsHTSclassificationofthemerchandiseorinitseligibilityforentryfor
(continued...)

III6

entriesmustbemadeforfinishedgoodsleavingtheFTZforU.S.consumptionthatutilized
foreigncomponentsintheirproduction.AccordingtothesesameFTZregulations,thecountry
oforiginofthefinishedgoodforCustomspurposesisthecountryoforiginofthehighestvalue
foreigncomponent,regardlessofthenumberofforeigncomponentsortheshareofU.S.
content.27
BecauseofthisFTZruleoforigin,proprietarydataobtainedfromCBPshowedthat
***.28TableIV4presentsWhirlpoolsU.S.shipmentsofLRWsexitingitsFTZforU.S.
consumption,thevalueofforeigncontent,totalvalueofitsU.S.shipments,theunitvalues,and
ratiostototalvalueofitsU.S.shipments.AsshownintableIV4,in2014,***ofWhirlpools
totalU.S.shipmentsexitedthroughitsFTZ.Ofthoseshipments,***percentoftheircontent
originatedintheUnitedStateswhile***percentwereforeigncomponents,someofwhich
fromChina.29Duetothenatureoftheseshipments,throughoutthisreport,U.S.shipmentsof
LRWsexitingWhirlpoolsFTZhavenotbeendeemedU.S.importsandhavenotbeenincluded
indatashowingU.S.importsfromChina.
TableIII4
LRWs:WhirlpoolsU.S.shipmentsofitsproductionofLRWsinitsforeigntradezone(FTZ),201214,
JanuarySeptember2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnairesandproprietaryCustoms
recordsunderHTSstatisticalreportingnumbers8450.20.0040,8450.20.0040,and8450.20.0090,accessedJanuary
7,2015.

U.S.PRODUCERSU.S.SHIPMENTSANDEXPORTS
AspresentedintableIII5,thevolumeofU.S.shipmentsofLRWsincreasedby***
percentfrom2012to2014andwashigherby***percentinJanuarySeptember2015thanin
JanuarySeptember2014.ThevalueofU.S.shipmentsincreasedby***percentfrom2012to
2014andwashigherby***percentinJanuarySeptember2015thaninJanuarySeptember
2014.ThevolumeofexportshipmentsofLRWsdecreasedby***percentfrom2012to2014

(continued)
consumption.ForeignTradeZonesManual,U.S.CustomsandBorderProtection,Publicationno.0000
0559A(2011),p.102.
27
Petitionerspostconferencebrief,AnswerstoStaffQuestions,pp.1112.ForeignTradeZones
Manual,U.S.CustomsandBorderProtection,Publicationno.00000559A(2011).
28
In2013,Whirlpoolaccountedfor***percentoftotalU.S.importsfromChina,in2014,***
percent,andinJanuarySeptember2015,***percent.ProprietarydataobtainedfromCBPforHTS
statisticalreportingnumbers8450.20.0040,8450.20.0080,and8540.20.0090.
29
Again,underFTZcountryoforiginrules,allforeigncomponentsaredeemedtobethecountryof
originofthehighestvaluecomponent.Petitionerspostconferencebrief,AnswerstoStaffQuestions,
pp.1112(exampleofFTZcountryoforiginrules).

III7

andwaslowerby***percentinJanuarySeptember2015thaninJanuarySeptember2014.
Thevalueofexportshipmentsdecreasedby***percentfrom2012to2014andwaslowerby
***percentinJanuarySeptember2015thaninJanuarySeptember2014.U.S.producers
reportedthattheirprincipalexportmarketswere***duringtheperiodofinvestigation.

TableIII5
LRWs:U.S.producersU.S.shipments,exportsshipments,andtotalshipments,201214,January
September2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.producersU.S.commercialshipmentsofLRWsbyconfigurationandefficiency
U.S.producerswererequestedtoreporttheirU.S.commercialshipmentsbyLRW
configurationandwhethertheLRWisdeemednonenergyefficientorenergyefficient.30As
shownintableIII6,theshareofU.S.shipmentsoftoploadnonefficiencyLRWshasbeen
consistent,approximately***ofallU.S.shipments,throughouttheperiodofinvestigation.31
TheshareofU.S.shipmentsoffrontloadLRWs,althoughneverexceeding***ofthetotal,
increasedsteadilyfrom2012to2014asGEbeganproductionintheUnitedStatesand
WhirlpoolincreaseditsshipmentsoffrontloadLRWs.

30

OnMarch7,2015,newenergyefficiencystandardsbecameeffective.See,PartI,Features,Energy
efficiency.PriortoMarch7,2015,generally,alltoploadLRWswithanagitatordidnotmeetEnergyStar
standardsandwerenotconsideredhighefficiencywhilealltoploadLRWswithanimpellerdidmeet
thosestandardsandwereconsideredhighefficiency.Also,allfrontloadLRWsdidmeettheEnergy
Starstandardsandwereconsideredhighefficiency.Afterthenew,morestringentenergyefficiency
standardsbecameeffectiveonMarch7,2015,thosecategoriesofLRWthatwereconsideredhigh
efficiencyweremoredifficulttodiscernandthedefinitionofhighefficiencybecamesomewhat
blurred.
Partieswereaskedhowtheydefinedhighefficiencyunderthenewstandards.Threeofthefour
U.S.producers,Whirlpool,GE,andAlliance,statedthatthey***.U.S.producerquestionnaire
responsesofWhirlpool,GE,andAlliance,questionII9(Staberdidnotprovidearesponse).
31
TheexceptionisJanuarySeptember2015whenthedefinitionofhighefficiencychangedandthe
productcategoriesbecamesomewhatblurred.Petitionerspostconferencebrief,p.10(distinctions
betweendifferentproducttypesofwashersareevenmoreblurredtodayduetoaseachangeinthe
wayU.S.manufacturersdesigntheirtoploadmodelstocomplywithnewfederalenergyefficiency
standards);Respondentspostconferencebrief,p.44n.117.

III8

TableIII6
LRWs:U.S.producersU.S.commercialshipments,bytype,201214,JanuarySeptember2014,and
JanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.PRODUCERSINVENTORIES
TableIII7presentsU.S.producersendofperiodinventoriesofLRWsandtheratioof
theseinventoriestoU.S.producersproduction,U.S.shipments,andtotalshipmentsoverthe
periodofinvestigation.

TableIII7
LRWs:U.S.producersinventories,201214,JanuarySeptember2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.PRODUCERSIMPORTSANDPURCHASES
***U.S.producers,Whirlpool,GE,Staber,orAlliance,reportedU.S.importsor
purchasesofU.S.importsofLRWsfromChina.

U.S.EMPLOYMENT,WAGES,ANDPRODUCTIVITY
DataprovidedbyU.S.producersonthenumberofproductionandrelatedworkers
(PRWs)engagedintheproductionofLRWs,thetotalhoursworkedbysuchworkers,wages
paidtosuchPRWs,productivity,andunitlaborcostsduringtheperiodofinvestigationare
presentedintableIII8.

TableIII8
LRWs:Averagenumberofproductionandrelatedworkers,hoursworked,wagespaidtosuch
employees,hourlywages,productivity,andunitlaborcosts,201214,JanuarySeptember2014,and
JanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

III9

PARTIV: U.S.IMPORTS,APPARENTU.S.CONSUMPTION,ANDMARKET
SHARES
U.S.IMPORTERS
TheCommissionsentU.S.importerquestionnairesto10firms1identifiedinthepetition
andproprietaryimportdataobtainedfromU.S.CustomsandBorderPatrol(CBP)aspossible
U.S.importersofLRWsaswellastoallU.S.producers.TheCommissionreceivedquestionnaire
responsesfromfourfirms.Amongthoseresponses,SamsungElectronicsAmerica,Inc.
(SamsungUSA)andLGElectronicsUSA,Inc.(LGUSA)accountedforvirtuallyallofU.S.
importsofLRWsfromChina.2***reportingU.S.importersreportedU.S.importsfrom
countriesotherthanChina.ReportedU.S.importsfromnonsubjectcountriesaccountedfor
approximately***percentoftotalU.S.importsfromnonsubjectcountriesin2014.3
TableIV1listsallrespondingU.S.importersofLRWs,theirheadquarterlocations,and
theirshareofquantitiesofU.S.imports,bysource,duringtheperiodofinvestigation.

ThetenpossibleU.S.importersincluded:***.GEreportedthatit***.U.S.producer
questionnaireofGE,***.
2
ProprietarydataobtainedfromCBPshowthatin2014,threefirms,***,accountedfor***percent
ofallU.S.importsunderHTSstatisticalreportingnumbers8450.20.0040,8450.20.0080,and
8540.20.0090.TheremainingsmallvolumesofU.S.importsfromChinawereimportedby***.The
proprietarydataobtainedfromCBPshowingU.S.importsfromChinaby***.See,PartIII,Whirlpools
foreigntradezone(FTZ)productionactivities.
3
EstimateddatacoverageofU.S.importsfromnonsubjectcountriesiscalculatedbycomparingtotal
U.S.importsfromnonsubjectcountriesasreportedbythosefirmslistedintableIV1withtotalU.S.
importsfromnonsubjectsourcesascompiledbyproprietaryimportdataobtainedfromCBP***}.
EstimateddatacoverageofU.S.importsfromnonsubjectcountriesislikelyunderstatedbecausethe
HTSsubheadingsusedtocompileimportdatafromCBPcontainproductsoutsidethescopeofthis
investigation.

IV1

TableIV1
LRWs:U.S.importersbysource,2012September2015
Shareofimportsbysource(percent)
Firm
Headquarters
China
Allothersources
Totalimports
Electrolux1
Charlotte,NC
***
***
***
Fisher&Paykel2
CostaMesa,CA
***
***
***
LGUSA3
EnglewoodCliffs,NJ
***
***
***
SamsungUSA4
RidgefieldPark,NJ
***
***
***
5
Whirlpool
BentonHarbor,MI
***
***
***
Total

***
***
***

1
ElectroluxHomeProducts,Inc.(Electrolux)isawhollyownedsubsidiaryofABElectroluxofStockholm,Sweden.
ElectroluxisalsoaffiliatedwithElectroluxHomeProducts,Corp.N.V.ofChihuahua,Mexico,aproducerofLRWsin
Mexico.ElectroluxdidnotsubmitaU.S.importerquestionnairetotheCommission.ElectroluxsU.S.importsfrom
***.
2
Fisher&PaykelAppliancesUSAHoldings,Inc.(Fisher&Paykel)isawhollyownedsubsidiaryofFisher&Paykel
Appliances,Ltd.ofEastTamaki,NewZealand.Fisher&PaykelproducedtoploadLRWsitsfacilityinClyde,OHuntil
late2009.Subsequently,ittransferredthisproductiontoitsfacilityinAmataCity,Thailand.In2012,HaierGroup
ofQingdao,ChinapurchasedFisher&Paykel.
3
LGElectronicsUSA,Inc.(LGUSA)isawhollyownedsubsidiaryofLGElectronics,Inc.ofSeoul,Korea,whichisa
producerofLRWsinKorea,andanaffiliateofNanjingLGPandaAppliancesCo.,Ltd.ofNanjingCity,China,whichis
aproducerofLRWsinChina.
4
SamsungElectronicsAmerica,Inc.(SamsungUSA)isawhollyownedsubsidiaryofSamsungElectronicsCo.,Ltd.
ofGyunggido,Korea,whichisaproducerofLRWsinKorea,andanaffiliateofSuzhouSamsungElectronicsCo.,
Ltd.ofJangsu,ChinaandSuzhouSamsungElectronicsCo.,Ltd.ExportofJangsu,China,bothofwhichare
producersofLRWsinChina.SamsungUSAisalsoaffiliatedwithSamsungElectronicsMexico,S.A.deC.V.of
Queretaro,Mexico,whichisaproducerofLRWsinMexico.
5
MaytagSales,Inc.isawhollyownedsubsidiaryofWhirlpoolandanaffiliateofWhirlpoolOverseasManufacturing
S.A.R.L.ofApodaca,Mexico,whichisaproducerofLRWsinMexico.***.

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.IMPORTS
TableIV2presentsdataforU.S.importsofLRWsfromChinaandnonsubjectcountries.
TheU.S.importdataarecompiledusingresponsestotheCommissionsU.S.importer
questionnaireandproprietaryimportdataobtainedfromCBP.4Asshown,thevolumeofU.S.
importsofLRWsfromChinaincreasedby***percentfrom2012to2014,andwashigherby
***percentinJanuarySeptember2015thaninJanuarySeptember2014.ThevalueofU.S.
importsofLRWsfromChinaincreasedby***percentfrom2012to2014,andwashigherby
***percentinJanuarySeptember2015thaninJanuarySeptember2014.ThevolumeofU.S.
importsfromnonsubjectcountriesofLRWsdecreasedby***percentfrom2012to2014and

ElectroluxsU.S.importsfrom***.

IV2

waslowerby***percentinJanuarySeptember2015thaninJanuarySeptember2014.The
valueofU.S.importsfromnonsubjectcountriesofLRWsdecreasedby***percentfrom2012
to2014waslowerby***percentinJanuarySeptember2015thaninJanuarySeptember2014.
ThelargestsourcesofU.S.importsofLRWsfromnonsubjectcountriesin2014were:***.5

TableIV2
LRWs:U.S.importsbysource,201214,JanuarySeptember2014,andJanuarySeptember2015
*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.shipmentsofimportsbyconfigurationandefficiency
U.S.importerswererequestedtoreporttheirU.S.commercialshipmentsbyLRW
configurationandwhethertheLRWisdeemednonenergyefficientorenergyefficient.6As
shownintableIV3,U.S.shipmentsofU.S.importsfromChinadidnotincludetoploadnon
efficiencyLRWsandhavebeen***toploadhighefficiencyandfrontloadhighefficiency
throughouttheperiodofinvestigation.FrontloadhighefficiencyLRWs,however,***the
shareofU.S.shipmentsofU.S.importsfromnonsubjectcountries.

TableIV3
LRWs:U.S.shipmentsofimportsbysource,configuration,andefficiency,201214,JanuarySeptember
2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

Basedon2014proprietaryimportdataobtainedfromCBPofallU.S.importsunderHTSstatistical
reportingnumbers8450.20.0040,8450.20.0080,and8540.20.0090.
6
OnMarch7,2015,newenergyefficiencystandardsbecameeffective.See,PartI,Features,Energy
efficiency.PriortoMarch7,2015,generally,alltoploadLRWswithanagitatordidnotmeetEnergyStar
standardsandwerenotconsideredhighefficiencywhilealltoploadLRWswithanimpellerdidmeet
thosestandardsandwereconsideredhighefficiency.Also,allfrontloadLRWsdidmeettheEnergy
Starstandardsandwereconsideredhighefficiency.Afterthenew,morestringentenergyefficiency
standardsbecameeffectiveonMarch7,2015,thosecategoriesofLRWthatwereconsideredhigh
efficiencyweremoredifficulttodiscernandthedefinitionofhighefficiencybecamesomewhat
blurred.
Partieswereaskedhowtheydefinedhighefficiencyunderthenewstandards.Threeofthefour
reportingU.S.importersprovidedaresponse.Samsungstatedthat***.LGstatedthat***.U.S.
importerquestionnaireresponsesofSamsung,LG,andWhirlpool,questionII7(Fisher&Paykeldidnot
providearesponse).

IV3

NEGLIGIBILITY
Thestatuterequiresthataninvestigationbeterminatedwithoutaninjury
determinationifimportsofthesubjectmerchandisearefoundtobenegligible.7Negligible
importsaregenerallydefinedintheTariffActof1930,asamended,asimportsfromacountry
ofmerchandisecorrespondingtoadomesticlikeproductwheresuchimportsaccountforless
than3percentofthevolumeofallsuchmerchandiseimportedintotheUnitedStatesinthe
mostrecent12monthperiodforwhichdataareavailablethatprecedesthefilingofthe
petitionortheinitiationoftheinvestigation.However,ifthereareimportsofsuchmerchandise
fromanumberofcountriessubjecttoinvestigationsinitiatedonthesamedaythatindividually
accountforlessthan3percentofthetotalvolumeofthesubjectmerchandise,andifthe
importsfromthosecountriescollectivelyaccountformorethan7percentofthevolumeofall
suchmerchandiseimportedintotheUnitedStatesduringtheapplicable12monthperiod,then
importsfromsuchcountriesaredeemednottobenegligible.8Basedondatacompiledfrom
U.S.importerquestionnairesandproprietaryimportdataobtainedfromCBP,U.S.importsfrom
Chinaaccountedfor***percentoftotalU.S.importsofLRWsbyquantityduring2014whichis
themostrecent12monthperiodforwhichdataareavailable.

APPARENTU.S.CONSUMPTIONANDU.S.MARKETSHARES
DataonapparentU.S.consumptionofLRWsarepresentedintableIV4.From2012to
2014,thequantityofapparentU.S.consumptionofLRWsincreasedby***percentandwas
higherby***percentinJanuarySeptember2015thaninJanuarySeptember2014.9Thevalue
ofapparentU.S.consumptionincreasedby***percentfrom2012to2014andwashigherby
***percentinJanuarySeptember2015thaninJanuarySeptember2014.In2014,totalU.S.
capacitytoproduceLRWsaccountedfor***percentoftotalapparentU.S.consumption.
DataonU.S.marketsharesforLRWsarealsopresentedintableIV4.From2012to
2014,U.S.producersU.S.marketsharebasedonvolumedecreasedby***percentagepoints,
andwaslowerby***percentagepointsinJanuarySeptember2015thaninJanuarySeptember
2014.10From2012to2014,U.S.producersU.S.marketsharebasedonvalueincreasedby***
percentagepoints,butwaslowerby***percentagepointsinJanuarySeptember2015thanin

Sections703(a)(1),705(b)(1),733(a)(1),and735(b)(1)oftheAct(19U.S.C.1671b(a)(1),
1671d(b)(1),1673b(a)(1),and1673d(b)(1)).
8
Section771(24)oftheAct(19U.S.C1677(24)).
9
ThepartiesagreedthattheincreaseinapparentU.S.consumptionduringtheperiodof
investigationwasdueinlargeparttostrengthinthehousingmarket,bothhousingstartsandsalesof
existinghomes,andpentupreplacementdemandfollowingthelastrecession.Petitioners
postconferencebrief,pp.1819;Respondentspostconferencebrief,p.40.
10
PetitionerarguedthatbecauseofLTFVU.S.importsfromChina,itwasneitherabletocaptureany
marketshareoftherisingdemandduringtheperiodofinvestigationnorrecapturemarketsharefrom
U.S.importsafterantidumpingandcountervailingdutieswereimposedonLRWsfromKoreaand
Mexicoin2013.Petitionerspostconferencebrief,pp.2526.

IV4

JanuarySeptember2014.U.S.importsfromChinaincreasedtheirU.S.marketshareby***
percentagepointsfrom2012to2014basedonvolumeand***percentagepointsbasedon
valueandwashigherby***percentagepointsbasedonvolume(***percentagepointsbased
onvalue)inJanuarySeptember2015thaninJanuarySeptember2014.U.S.importsfrom
nonsubjectcountriesdecreasedtheirU.S.marketshareby***percentagepointsfrom2012to
2014basedonvolumeand***percentagepointsbasedonvalueandwaslowerby***
percentagepointsbasedonvolume(***percentbasedonvalue)inJanuarySeptember2015
thaninJanuarySeptember2014.

TableIV4
LRWs:U.S.shipmentsofdomesticproduct,U.S.shipmentsofimports,apparentU.S.consumption,
andU.S.marketshares,201214,JanuarySeptember2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

ApparentU.S.consumptionandU.S.marketsharesbyconfigurationandefficiency
PresentedintablesIV5throughIV7areapparentU.S.consumptionandU.S.market
sharedatabrokenoutbyLRWconfigurationandwhethertheLRWisdeemednonenergy
efficientorenergyefficient.TableIV5presentsthesedatafortoploadnonenergyefficient
LRWs.TableIV6presentsthesedatafortoploadenergyefficientLRWs.TableIV7presents
thesedataforfrontloadenergyefficientLRWs.

TableIV5
LRWs:U.S.shipmentsofdomesticproduct,U.S.shipmentsofimports,andapparentU.S.
consumption,andU.S.marketshares,oftoploadnonenergyefficientLRWs,201214,January
September2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

TableIV6
LRWs:U.S.shipmentsofdomesticproduct,U.S.shipmentsofimports,andapparentU.S.
consumption,andU.S.marketshares,oftoploadenergyefficientLRWs,201214,JanuarySeptember
2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

IV5

TableIV7
LRWs:U.S.shipmentsofdomesticproduct,U.S.shipmentsofimports,andapparentU.S.
consumption,andU.S.marketshares,offrontloadenergyefficientLRWs,201214,January
September2014,andJanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

IV6

PARTV: PRICINGDATA
FACTORSAFFECTINGPRICES
Rawmaterialcosts
TheprimaryrawmaterialsusedtoproduceLRWsarecopper,aluminum,polypropylene,
crudeoil,carbonsteel,stainlesssteel,andsyntheticrubber.1Rawmaterialsaccountedfor
between***and***percentofU.S.producerscostsofgoodssoldduring201214.While
thesepercentagesdidnotvarywidelyamongfirms(seePartVI),producersandimporters
providedevidenceofdecreasingrawmaterialcostssinceJanuary2012.***of***responding
U.S.producersand***of***respondingimportersreportedthatrawmaterialcostshave
decreasedovertheperiodofinvestigation.2U.S.producerWhirlpoolreportedthatwhilethe
pricesofrawmaterialsdecreasedthroughouttheperiodofinvestigation,thetotalcostofraw
materialsincreased.WhirlpoolcitedtheneedtocreateanewLRWplatformtocomplywith
newwaterandenergyefficiencyregulations,causing***.3U.S.producer***reportedthat
***.4
Both***reportedbuyingcommoditiesona***basis.***reportedthat***forcold
rolledsteelis***stainlesssteelhasa***andforpolypropylenehas***.5
Thepriceofmetalsdecreasedgraduallyuntilmid2014thendroppeddramatically(figureV
1).Coldrolledsteelpricesdecreasedbyapproximately***percent.FromJanuary2012toMay
2013,pricesforcoldrolledsteeldecreasedby***percent,increasedby***percentbyMay2014,
andthenfellby***percentbySeptember2015.Thepriceofcopperfluctuated,butdecreased
overallby***percentovertheperiodofinvestigation,peakinginMarch2012.6Pricesfor
polypropyleneresin,whichisderivedfromoil,havefallen.7Whirlpoolreportedthattheprices
forpolypropyleneresinhavedecreasedby***centsperpoundor***percent.8

LargeResidentialWashersfromKoreaandMexico,Inv.Nos.701TA488and731TA11991200
(Final),USITCStaffReport,INVLL005,January2013,p.V1.
2
U.S.producers***and***reportedthatrawmaterialpricesfluctuatedovertheperiodof
investigation,andimporter***reportedthatrawmaterialpricesdidnotchangeovertheperiodof
investigation.Noneofthesecompanieselaboratedmoreontherawmaterialprices.
3
Petitionerspostconferencebrief,Answertostaffquestions,p.2.
4
GEspostconferencebrief,p1.
5
Petitionerspostconferencebrief,Answertostaffquestions,p.9,andGEspostconference
submission,p1.
6

Data for copper were only available through August 2015.

CommodityResinPricesDrop,PlasticsTechnology,November2015,foundat
http://www.ptonline.com/articles/commodityresinpricesdrop,retrievedJanuary15,2016
8
Petitionerspostconferencebrief,Answertostaffquestions,p.2.

V1

Figure V-1
Raw material costs: U.S. price indexes of cold-rolled steel, monthly, January 2012-September
2015

2012

2013

2014

Cold-rolled steel index

2015
Copper index

Note.--Data for cold-rolled steel and oil go through October 2015; data for copper were only available
through August
2015.
Source: For steel, American Metal Market, November 18, 2015; for copper, BLS Producer Price IndexCommodities, January 15, 2016; for oil prices, EIA, January 15, 2016.

U.S.inlandtransportationcosts
AllrespondingU.S.producersandimportersreportedthattheytypicallyarrange
transportationtotheircustomers.U.S.producersreportedthattheirU.S.inlandtransportation
costsrangedfrom***to***percent,averaging***percent.Importer***reportedU.S.
inlandtransportationcostsof***percent.9

PRICINGPRACTICES
Pricingmethods
U.S.producersandimporterssellLRWssetpricesonavarietyofmethods(tableV1).
***and***reportedsellingLRWsonatransactionbytransaction,contracts,andprofitmargin
offoftheminimumadvertisedprice(MAP)basis.10U.S.producer***reportedusing***toset

Importer***reportedthatinlandtransportationcostsof***percent.
***responded***.

10

V2

prices.11Importer***reportedsellingLRWsonaflexiblepricelist.Itstatedthatitusesaset
pricelistfornegotiationswithindividualcustomers;however,itspricelistscanchangewith60
to90daysnotice.

Table V-1
LRWs: U.S. producers and importers reported price setting methods, by number of responding
firms

U.S.producersreportedsellingmostoftheirproductonthespotmarketwhereas
importersreportedsellingthevastmajorityoftheirproductinannualcontracts.Asshownin
tableV2,U.S.producersandimportersreportedtheir2014U.S.commercialshipmentsofLRW
bytypeofsale.Importers***and***reportedthatannualcontractshavefixedpricesandno
meetorreleaseclauses.

Table V-2
LRWs: U.S. producers and importers shares of U.S. commercial shipments by type of sale, 2014

Salestermsanddiscounts
Salesterms
***offourrespondingU.S.producersreportedquotingpricesonanf.o.b.basis.***
reportedsellingonadeliveredbasis.Ofthetworespondingimporters,***.Producers***and
***andimporters***and***reportedsalestermsofnet30days.Producers***and***and
importer***reportedsalestermsofnet60days.Producer***andimporter***reported
salestermsofcashinadvancedofdelivery.12

Directdiscounts
DirectdiscountsaretiedtosalesofthespecificLRWs,whetherornotsuchdiscountsare
givenonthesalespricetothecustomerorareintheformofapostsalediscount.U.S.
producersandimportersuseavarietyofdirectdiscountstosellLRWS(tableV2).U.S.
producers***and***reportedusingallofthelisteddiscounts.Importer***reportedusing
allofthelisteddiscountsexceptforquantitydiscounts.Importer***reportedusingannual
totalvolumediscounts,promotionaldiscounts,andcomarketingfunds.

11

***didnotelaborateonhow***differedfrom***.
Additionally,producer***reportedsalestermsof2/10net30days,andproducer***reported
net45days.
12

V3

Table V-3
LRWs: U.S. producers and importers discounts offered by type, January 2012-September 2015

***reportedthatdiscountsareofferedonaselloutbasisandonasellthrough
basis.SelloutreferstodiscountsprovidedtotheretailerwhentheretailerpurchasestheLRW.
Sellthroughreferstodiscountsprovidedtotheendusecustomerwhentheretailsaleismade.
U.S.producer***reportedofferingquantitydiscounts,annualtotalvolumediscounts,sales
incentives,promotionaldiscounts,cooperativeadvertising,comarketingfunds,salesperson
incentives,inventoryfinancing,displayallowances,andtransitionfundsonaselloutbasis.Ona
selloutbasis,importer***offersannualvolumerebates.Onasellthroughbasis,***uses
retailsalesallowancesduringlimitedpromotionalwindows.Onasellthroughbasis,Samsung
willofferdealerandsalesallowances.***offersrebateprogramsthatwillbetailored
differentlydependingontheproductscovered(washer,dryer,orboth),thetimeperiod,the
typeofretailer,andspecificmodel.AsaU.S.producerandimporter,Whirlpoolreported
offering***discountsto***and***for***.

Indirectdiscounts
Indirectdiscounts,whilenotspecificallytiedtotheproductsinquestion,areallocableto
salesofsuchproductsbecausesalesofsuchproductswerepartofthebasisonwhichthe
discount,incentive,allowance,etc.wasgiven.BothU.S.producersandimportersofferindirect
discountsforLRWs.***reportedprovidingavarietyofindirectdiscountprogramsacrossa
rangeofappliances,customers,buygroups,andtimeperiods.Theseindirectdiscountsinclude
volumerebates,specialpriceallowances,andothertrailingallowances.***addedthatsome
indirectdiscountswereofferedonaconditionalbasis,whileotherprogramswere
discretionary.***reportedthatitoffersbacksideadjustmentsorrebatesonanadhocbasisin
ordertomeetacompetitiveoffer.***reportedthatatanygiventime,aretailercouldbe
eligiblefor2030distinctrebateprogramsoveragivenyear.Importer***reportedofferingoff
invoicediscountsintheformofapercentageofftheoriginalinvoiceorasatrailingcredit
advertisingsupport.***reportedofferingindirectdiscountsandrebatesonacustomerspecific
basis,butdidnotelaborateonthetypesofindirectdiscounts.***reportedthatitdoesnot
distinguishbetweendirectandindirectdiscounts.Itreportedprovidingdifferentrebate
programsbasedontheproductscovered(washersorwashersanddryers),thetimeperiod,the
typeofretailer,andspecificmodel.

Floorspace
***reportedofferingdirectand/orindirectdiscountsforfloorspace.***reported
offeringdisplaydiscountstocustomersbasedonminimumfloorrequirements.***reported
negotiatingwithindividualcustomerstoofferdiscounts,rebates,andotherallowanceto
securefloorspace,endcapspace,andpromotionaldisplays.***reportedprovidingspecific
indirectdiscountsorpromotionforsomeretailerstosupportplacementinstores.***reported

V4

offeringallowancesforpromotionaldisplaysandadditionalallowancestomaintainfloorspace,
butcouldnotaffordallowancesforendcapspace.

PRICEDATA
TheCommissionrequestedU.S.producersandimporterstoprovidequarterlydatafor
thetotalquantityandf.o.b.value(netofdirectandindirectdiscounts)ofthefollowingLRW
productsshippedtounrelatedU.S.customersduringJanuary2012toSeptember2015.

Product1.Frontloading,EnergyStarratedwasher;directdrive;ratedDOEcapacity
greaterthanorequalto3.7cubicfeetbutlessthan4.2cubicfeet;nowater
heaterincluded;nosteamcycle(s)included;noLCDdisplay;whitefinish.

Product2.Toploading,EnergyStarratedwasher;directdrive;impeller;ratedDOE
capacitygreaterthanorequalto4.2cubicfeetbutlessthan4.7cubicfeet;
nowaterheaterincluded;nosteamcycle(s)included;solidopaquelid;white
finish.

Product3.Frontloading,EnergyStarratedwasher;directdrive;ratedDOEcapacity
greaterthanorequalto3.7cubicfeetbutlessthan4.2cubicfeet;water
heaterincluded;steamcycle(s)included;noLCDdisplay;whitefinish.

Product4.Frontloading,EnergyStarratedwasher;directdrive;ratedDOEcapacity
greaterthanorequalto4.2cubicfeetbutlessthan4.7cubicfeet;nowater
heaterincluded;nosteamcycle(s)included;noLCDdisplay;whitefinish.

Product5.Toploading,EnergyStarratedwasher;directdrive;impeller;ratedDOE
capacitygreaterthanorequalto4.7cubicfeetbutlessthan5.2cubicfeet;
waterheaterincluded;nosteamcycle(s)included;lidincludesclearortinted
window;whitefinish.

Product6.Frontloading,EnergyStarratedwasher;directdrive;ratedDOEcapacity
greaterthanorequalto4.2cubicfeetbutlessthan4.7cubicfeet;water
heaterincluded;steamcycle(s)included;noLCDdisplay;anynonwhite
finish.

Product7Toploadingwasher;notEnergyStarrated;nodirectdrive;impeller;no
waterheaterincluded;nosteamcycle(s)included;solidopaquelid;white
finish.

V5

FourU.S.producersand***importersprovidedusablepricingdataforsalesofthe
requestedproducts,althoughnotallfirmsreportedpricingforallproductsforallquarters.13
Pricingdatareportedbythesefirmsaccountedforapproximately***percentofU.S.
producersshipmentsofproductand***percentofU.S.shipmentsofsubjectimportsfrom
China.Modelsandskusforanygivenpricingproductshaveatypicallifecycleof13years(see
part1).14
Pricedataforproducts17arepresentedintablesV4toV10andfiguresV2toV8.
Table V-4
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 11 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Table V-5
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 21 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Table V-6
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 31 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Table V-7
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 41 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******

13

PerunitpricingdataarecalculatedfromtotalquantityandtotalvaluedataprovidedbyU.S.
producersandimporters.Theprecisionandvariationofthesefiguresmaybeaffectedbyrounding,
limitedquantities,andproducerorimporterestimates.
14
Respondentsarguethatpricingproductsaretoonarrowandspecificallydonotincludelowerend,
nonhighefficiencytoploadLRWs.Conferencetranscript,pp.1889(Durling),andLGandSamsungs
postconferencebrief,p534.ThePetitionerarguethatpricingproductsprovidedreliableprice
comparisonsandweretakenfromtheproductcriteriadeterminedbythecommissioninprevious
investigations(LargeResidentialWashersfromKoreaandMexico).Petitionerspostconferencebrief,pp.
279.

V6

Table V-8
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 51 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Table V-9
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 61 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Table V-10
LRWs: Weighted-average f.o.b. prices and quantities of domestic and imported product 71 and
margins of underselling/(overselling), by quarters, January 2012-September 2015

*******
Figure V-2
LRWs: Weighted-average prices and quantities of domestic and imported product 1, by quarters,
January 2012-September 2015

*******

Figure V-3
LRWs: Weighted-average prices and quantities of domestic and imported product 2, by quarters,
January 2012-September 2015

*******
Figure V-4
LRWs: Weighted-average prices and quantities of domestic and imported product 3, by quarters,
January 2012-September 2015

*******
Figure V-5
LRWs: Weighted-average prices and quantities of domestic and imported product 4, by quarters,
January 2012-September 2015

*******
Figure V-6
LRWs: Weighted-average prices and quantities of domestic and imported product 5, by quarters,
January 2012-September 2015

*******

V7

Figure V-7
LRWs: Weighted-average prices and quantities of domestic and imported product 6, by quarters,
January 2012-September 2015

*******
Figure V-8
LRWs: Weighted-average prices and quantities of domestic and imported product 7, by quarters,
January 2012-September 2015

*******
Pricetrends
AsshowninthetableV11,yearlydomesticpricesforpricingproducts16decreased
rangingfrom***to***percentfrom2012to2014whileyearlydomesticpricesforpricing
product7increasedby***percent.Yearlyimporterpricesforpricingproducts13and67
decreasedrangingfrom***to***percentwhilequarterlyimporterpricesforpricingproducts
4and5increased***and***percent,respectively.

Table V-11
LRWs: Number of quarters containing observations, low price, high price and change in price
over period by product and source, January 2012 through September 2015

*******
Pricecomparisons
AsshownintableV12,pricesforLRWsimportedfromChinawerebelowthoseforU.S.
producedproductin***marginsofundersellingrangedfrom***to***percent.Inthe
remaining***instances,pricesforLRWsfromChinawerebetween***to***percentabove
pricesforthedomesticproduct.
Table V-12
LRWs: Instances of underselling/overselling and the range and average of margins, by country,
January 2012-September 2015

*******
LOSTSALESANDLOSTREVENUE
TheCommissionrequestedU.S.producersofLRWstoreportpurchasersinwhich
producersexperiencedinstancesoflostsalesorrevenueduetocompetitionfromimportsof
LRWsfromChina,duringJanuary2012toSeptember2015.Ofthe4respondingU.S.producers,
***reportedthattheyhadtoreduceprices,and***reportedthattheyhadtorollback
announcedpriceincreases.***U.S.producersreportedthattheyhadlostsales.***U.S.
V8

producerssubmittedthelostsaleandlostrevenueworksheet.The***respondingU.S.
producers15identified***firmswheretheylostsalesorrevenue(***unitsconsistingofboth
typesofallegations).16U.S.producerswerealsoaskedtoprovideinformationregardingthe
timing,methodofsale,andproducttyperelatedtothelostsalesandlostrevenueallegations.
Staffcontacted28purchasersandreceivedresponsesfrom20purchasers.17Responding
purchasersreportedpurchasing***brandLRWs(tableV13a)from2012to2014and***
LRWs(tableV13b)during201214(***totalLRWs).Forbrandpurchasesin2014,purchasers
purchased***percentfromU.S.producers,***percentfromChina,and***percentfrom
nonsubjectcountries.ForOEMpurchasesin2014,purchaserspurchased***percentfromU.S.
producers,***percentfromChina,and***percentfromnonsubjectcountries.Ofthe
respondingpurchasers,11reporteddecreasingpurchasesfromdomesticproducers,7reported
increasingpurchases,and4reportedfluctuatingpurchasesofdomesticLRWs.1819Purchasers
reportedthattheirpurchasesofGE/Whirlpooldecreasedduetohigherretailprices,lowered
profitmargins,andhigheracquisitioncosts.Ontheotherhand,purchasersreportedthattheir
purchasesofGE/Whirlpoolincreasedduetoincreasedpromotionalactivityandimproved
modelperformance.Oftherespondingpurchasers,15reportedincreasingpurchasesofLG
and/orSamsungLRWs,1reportednochange,2reportedfluctuatingpurchases,and1
purchaserreportednotpurchasing.Ofthe15purchasersthatreportedincreasingpurchasesof
LGand/orSamsung,***citedpriceand***citedpromotionalactivityasreasonsforshifting
purchases.Additionalreasonsforincreasedpurchasesincludedbrandawarenessandfeatures
available(e.g.softcloselids,stainlesssteelwashplatesandfrontcontrols).

Table V-13a
LRWs: Purchasers responses to brand purchasing patterns

*******
Table V-13b
LRWs: Purchasers responses to OEM purchasing patterns

*******

15

U.S.producer***reportedlosingsales;however,couldnotprovidepurchasercontactinformation
duetothetimeconstraintsofthepreliminary.
16
U.S.producer***providedpurchasercontactinformation,butdidnotprovidedataonthetotal
quantityofunits.
17
Staffreceivedalostsales/lostrevenuesurveyfrom***butwasnotabletoincorporateitintothe
staffreport.
18
Ofthe18respondingpurchasers,10purchasersindicatedthattheydidnotknowthesourceofthe
LRWstheypurchased.Purchaser***wasnotcountedduetoconflictinganswers.
19
Purchaser***reportedthatpurchasesbothdecreasedandincreasedbecausepurchasesfrom
WhirlpooldecreasedbutpurchasesfromGEincreased.Purchaser***reportedthatdomesticpurchases
ofU.S.LRWsdecreasedandfluctuatedduetocompetitionandreducedpromotionalfunding.

V9

Ofthe19respondingretailpurchasers,12reportedthattheyhadshiftedfloorspacefor
LRWsfromU.S.producerstosubjectimportssince2012becauseU.S.producersprices
(includingdirectandindirectdiscounts)wereuncompetitivewiththepriceofLRWsproduced
byLGand/orSamsung.Fourteenof19respondingretailpurchasersreportedthatpromotional
activitybyLGand/orSamsungforlargeresidentialwashershadanimpactonthevolumeof
largeresidentialwashersthattheypurchasedfromU.S.producers.OEMpurchaser***
reportedthatfinalcontractpricespaidto***finalbidprices.Itcitedpriceasanimportant
factor;however,itaddedthatthefollowingfactorsalsoaffectednegotiations:***.
Ofthe17respondingpurchasers,15reportedthatU.S.producershadreducedpricesin
ordertocompetewithlowerpricedimportsfromsubjectcountries.Ofthe16responding
purchasers,14reportedthatU.S.producershadreducedpricesinordertomaintainfloorspace
fromimportsfromsubjectcountries.

V10

PARTVI: FINANCIALEXPERIENCEOFU.S.PRODUCERS
BACKGROUND
ThreeU.S.producersreportedusablefinancialresultsontheirLRWoperations:GE,
Staber,andWhirlpool.1GEandWhirlpool(***percentand***percent,respectively,oftotal
sales)accountforthemajorityofoverallLRWoperations.2Staber,thesmallestU.S.producer,
accountedfor***percentoftotalsales.
AsnotedinPartIIIofthisreport,GEexpandeditsU.S.LRWoperationsduringtheperiod
examined.Withregardtothisexpansion,thecompanystatedthat{n}ewdomesticproduction
atApplianceParkdirectlyreplaced***,forhighefficiencytoploadLRWs.Theinvestments
madeatApplianceParkalsoupgradedandexpandedlongstandingLRWproductionthathad
beenoccurringthere.3Asnotedbelow,thisexpansionimpactedaspectsofGEsLRWrevenue
andmanufacturingcosts.In2015,effortsbytheparentcompanytoselltheAppliancedivision,
ofwhichU.S.LRWoperationsareapart,wereunsuccessfulwithananticipatedsaleto
ElectroluxterminatedinDecember2015duetoU.S.antitrustconcerns.4However,onJanuary
15,2016,GeneralElectricannouncedthatitenteredintoadefinitiveagreementtosellits
appliancesdivisiontotheChinesecompany,QingdaoHaierCo.,Ltd.(Haier),for$5.4billion.
Theannouncementstatedthatthetransactionhasbeenapprovedbytheboardofdirectorsof
GeneralElectricandofHaier,butremainssubjecttoHaiershareholderandregulatory
approvals.Partiesestimatethatthetransactionwillcloseinmid2016.5
Inthefourthquarter2011,priortotheperiodexamined,Whirlpoolinitiateda
restructuringplanwhichimpactedLRWandnonLRWoperations.6Asdescribedatthe
CommissionsstaffconferenceandwithrespecttoLRWoperationsspecifically,Whirlpools
frontloadproductionwasrepatriatedfromMexicototheUnitedStatesduring2012and2013
alongwithadditionalU.S.investmentsinfrontloadandtoploadproduction(representingthe

***.USITCauditorpreliminaryphasenotes.
Financialresultspresentedinthissectionwerereportedonthebasisofgenerallyaccepted
accountingprinciples(GAAP)andforcalendaryearperiods.
2
GEsU.S.LRWoperationsareincludedinthecompanysAppliances&Lightingsubsegmentwhichis
itselfpartofGEsIndustrialsegment.GE201410K,p.51.AsreportedtotheCommission,***.USITC
auditorpreliminaryphasenotes.
WhirlpoolorganizesitssegmentbygeographicregionwithitsU.S.producedLRWoperations
includedintheNorthAmericansegment.Whirlpool201410K,p.40.AsreportedtotheCommission,
***.USITCauditorpreliminaryphasenotes.
3
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.6.
4
GeneralElectriceyesappliancessalesoon,TheCourierJournalretrievedathttp://www.courier
journal.com/story/money/companies/2015/12/16onDecember18,2016.
5
GEAgreestoSellAppliancesBusiness,GEPressRelease,January15,2016,
http://www.genewsroom.com/pressreleases/geagreessellappliancesbusiness282595,accessed
January15,2016.
6
Whirlpool201110K,p.F36.The2011restructuringalsoconsolidatedpreviousongoing
restructuringactivity.

VI1

updateofexistingplatformsaswellasthedevelopmentofnewplatforms).7Intermsofhow
thisrestructuringimpactedU.S.LRWfinancialresults,thecompanystatedthat...{t}hereare
nomaterialnonrecurringexpensestobereported.***.8
OPERATIONSONLARGERESIDENTIALWASHERS
TableVI1presentstheaggregateincomeandlossdatafortheLRWoperationsofU.S.
producers.TableVI2andtableVI3presentavarianceanalysisandcorrespondingcompany
specificfinancialresultsinformation,respectively.9
Salesvolumeandvalue
ThemajorityofLRWrevenuerepresentscommercialsales(***percentofthetotal)
withtheremaindertransfers(***percent).10NoLRWinternalconsumptionwasreported.
OverallLRWsalesvolumeincreasedduringthefullyearperiodandthenwassomewhat
lowerininterim2015comparedtointerim2014.While***salesvolumein2013,the
directionaltrendofeachcompanyssalesvolumesubsequentlydivergedwith***salesvolume
in2014and***salesvolume.Attheendoftheperiod***salesvolumeininterim2015
comparedtointerim2014whichpartiallyoffsetthecorresponding***salesvolumereported
by***.TableVI3showsthat***insalesvolumethroughouttheperiod.
Toalargeextent,periodtoperiodchangesinaveragesalesvaluereportedlyreflect
changesinproductmix.Whirlpoolstatedthatit...continuedtoaddfeatures(withattendant
costs)towashermodelsacrossitsproductlineup.Thiswasdriven,inpart,bytheneedtobuild
morecostlymachinesdesignedtocomplywithmorestringentfederalwater/energyefficiency

Conferencetranscript(Liotine),pp.2324.
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.5.WithregardtoLRWoperationsin
MexicoandtheextenttowhichthisrestructuringimpactedU.S.LRWfinancialresults,Whirlpool
confirmedthat{n}oneofthecostsandexpensesassociatedwithclosing/reducingLRWoperationsin
MexicoarecapturedintheU.S.LRWfinancials. NosuchcostswereincludedinTableIII9aof
WhirlpoolsU.S.Producerquestionnaireresponse.Ibid.
9
TheCommissionsvarianceanalysisiscalculatedinthreeparts:Salesvariance,costofgoodssold
(COGS)variance,andSG&Aexpensesvariance.Eachpartconsistsofapricevariance(inthecaseofthe
salesvariance)oracostorexpensevariance(inthecaseoftheCOGSandSG&Aexpensesvariance),and
avolumevariance.Thesalesorcost/expensevarianceiscalculatedasthechangeinunitpriceorper
unitcost/expensetimesthenewvolume,whilethevolumevarianceiscalculatedasthechangein
volumetimestheoldunitpriceorperunitcost/expense.Assummarizedatthebottomofthetable,the
pricevarianceisfromsales,thecost/expensevarianceisthesumofthoseitemsfromCOGSandSG&A
variances,respectively,andthevolumevarianceisthesumofthevolumecomponentsofthenetsales,
COGS,andSG&Aexpensesvariances.Ingeneral,theutilityoftheCommissionsvarianceanalysisis
enhancedwhenproductmixremainsthesamethroughouttheperiod.AsnotedintheSalesvolume
andvalueandCostofgoodssoldsectionsLRWproductmixshiftedthroughouttheperioddueto
changesinLRWproductfeatures,aswellaschangesintherelativesharesofspecificLRWproducts.
10
***.Whirlpoolpostconferencebrief,Answerstostaffquestions,p.1.
8

VI2

Table VI-1
LRWs: Results of operations of U.S. producers, 2012-14, January-September 2014, and JanuarySeptember 2015
*

Source: Compiled from data submitted in response to Commission questionnaires.

Table VI-2
LRWs: Variance analysis on the operations of U.S. producers, 2012-14, January-September 2014,
and January-September 2015
*

Source: Compiled from data submitted in response to Commission questionnaires.

Table VI-3
LRWs: Results of operations of U.S. producers, by firm, 2012-14, January-September 2014, and
January-September 2015
*

Source: Compiled from data submitted in response to Commission questionnaires.

regulations,whichtookeffectinQ12015.11GEsaveragesalesvalue***ininterim2015due
tochangesinproductmix.AsdescribedbyGE,***.12
***consistentlyreportedthe***averagesalesvalue(seetableVI3).Largelydueto
***averagesalesvaluenotedabove,thedifferencein***averagesalesvaluesnarrowed
somewhatduringthefullyearperiod.AsshownintableVI3,***averagesalesvalueswere
***comparedtotheaveragessalesvaluescalculatedfor***.13
ThevarianceanalysisintableVI2indicatesthat,whilepricevarianceswerepositive
throughoutthefullyearperiod,theoverallincreaseintotalLRWrevenuewasprimarilydueto
positivevolumevariances.Incontrast,lowerLRWrevenueininterim2015comparedto

11

Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.1.
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.1.
13
StaberdescribedtheuniquefeaturesofitsLRW(toploadhorizontalaxiswasher).Specifically,its
designisbasedonhexagonalinnerbasketthatrotatesinsideastationaryouteroctagonaltub.
AccordingtoStaber,itsLRWusesignificantlylesswater,energy,anddetergent.Staberpostconference
brief,p.1,AnswerstoStaffQuestions,p.1.Staberalsostatedthat{s}inceweofferonlythreewasher
models,ouraverageunitsalesvaluesarenotinfluencedtoasignificantdegreebychangesinproduct
mix.SubjectimportpricingforwashersfromChinahassignificantlydepressedandsuppressedthe
pricesthatStaberIndustriesisabletochargeforitswashersduringtheperiodofinvestigation.Ibid.
12

VI3

interim2014wasdueprimairilytoanegativepricevarianceandtoalesserextentanegative
volumevariance.
Costofgoodssold
WhileoverallunitCOGSincreasedthroughouttheperiod(seetableVI1),thecompany
specificpatternwassomewhat***(seetableVI3):***inaverageunitCOGSin2013
(reflectingchangesinproductmixnotedabove),while***reportedsomewhatsmallerperiod
toperiod***.AsshownintableVI3,theCOGStosalesratioof***throughouttheperiod,
fluctuatedsomewhat***comparedtotheCOGStosalesratiocalculatedfor***.
Rawmaterialcost,whichrepresentsavarietyofinputs,rangedfrom***percentof
totalCOGSin2012to***percentininterim2014.14AsdescribedattheCommissionsstaff
conference,thecostofLRWrawmaterialsandrelatedinputsgenerallyincreasedduringthe
periodastheleveloftechnicalsophisticationincreasedalongwithothercharacteristicssuchas
capacityandspinspeed.15Theunderlyingcostofcommodityinputs,however,generally
declined.16
Duringtheperiodofinvestigation,Whirlpoolstatedthattherewerenosignificant
changesinitssourcingofcommodityinputs(e.g.,carbonandstainlesssteel,plasticresins),
purchasedcomponents(e.g.,motors,valves,hoses,wireharnesses),and/orprintedcircuit
boardassemblies.Thecompanyalsonotedthatpurchasedcommoditiescanrepresent
approximately***oftotalrawmaterialcost.17GEidentifiedsimilarprimaryrawmaterialsas
follows:...highgraderolledsteel,polypropylene,motors(steelandcopper/aluminum),
electroniccontrolboards,fabricatedmetalandplasticpartsandpackaging.AccordingtoGE,
sourcesofsupplydidnotchangesignificantlyduringtheperiodandrawmaterialprices
fluctuatedbasedonsupplyanddemand.1819
14

Conferencetranscript(Liotine),p.76.
Conferencetranscript(Liotine),pp.7677.Whirlpoolnotedthat{t}hecostofvariousraw
materialinputsdecreasedduringthePOI,butthetotalrawmaterialcostincreased***.Whirlpool
neededtolaunchanewplatformtocomplywithnewwater/energyefficiencyregulationsbeing
promulgatedbytheU.S.Government.Thisnewplatformrequireda***inordertomeetthesehigher
regulatorystandards.Consequently,althoughcertainrawmaterialinputsdecreasedinunitcost,the
***.Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.2.
16
Forarepresentativesampleofcommonrawmaterialspurchasedduringtheperiod(austenitic
stainlesssteelcoil,lowcarboncoldrolledsteel,andpolypropyleneresin),Whirlpoolreportedthatthe
perpoundcostgenerallydeclinedduringtheperiod.Whirlpoolpostconferencebrief,AnswerstoStaff
Questions,pp.12.Basedontheperpoundcostinformationreported,thesespecificinputswere***,
respectively,in2015comparedto2012.USITCauditorpreliminaryphasenotes.
17
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,pp.12.
18
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.1.
19
StaberidentifiedthefollowingprimaryrawmaterialsandcomponentsusedtoproduceLRWs:..
.stainlesssteelgrade439,0.18gauge,0.20gaugegalvannealedsteel(primarilyforcabinets),0.11gauge
hotrolledpickledandoiled,powdercoatedsteel(forwasherbases),andpurchasedcomponents(e.g.,
plasticsandplasticparts,pumps,hoses,motorsandstruts).Steelpriceshavefluctuatedupanddown
duringtheperiodofinvestigation,buthavebeendecliningmorerecently.Priceswepayfortheother
(continued...)
15

VI4

Although***reportedaveragerawmaterialcostswhichwereinasimilarrange,***,
withtheexceptionof2012,consistentlyreportedasomewhat***averagerawmaterialcost.
The***in***averagerawmaterialcostin2013wasattributedtothe***.20
***reportedmarginally***averagerawmaterialcostsininterim2015comparedto
interim2014.Asdescribedatthestaffconference,aWhirlpoolcompanyofficialindicatedthat
thecompanydidnotachieveafavorabletrendinrawmaterialcostsuntilrecentlybecausea
largeshareofrawmaterialsispurchasedundercontractand/orhedgedsuchthatthebenefitof
declinesinspotrawmaterialpricesisnotimmediatelyrecognized.21Forsimilarreasons,GE
reportedthatitsrawmaterialcostsalsodonotdirectlyreflectchangesinspotprices.22
AsdescribedbyWhirlpoolatthestaffconference,LRWmanufacturingincursahigh
leveloffixedcostsandrequiresacorrespondinghighlevelofcapacityutilizationtoreduceunit
costs.23Fortheindustryasawhole,otherfactorycosts(i.e.,thelineitemwherefixed
manufacturingcostsareusuallyreported)representedthesecondlargestshareofCOGSand
rangedfrom***percentoftotalCOGSininterim2014to***percentin2012.Onanoverall
basis,averageunitotherfactorycostsremainedwithinafairlynarrowrangeduringtheperiod.
Whencomparingcompanyspecificaverageotherfactorycosts(seetableVI3),***reported
consistently***amountswhich***somewhatduringthefullyearperiodwhile***reported
somewhat***amountswhichgenerally***.2425
DirectlaboraccountsforthesmallestshareofCOGS(rangingfrom***percentoftotal
COGSin2012and2014to***percentininterim2014).AsshownintableVI3andwhilethe
averageunitdirectlaboramountsremainedwithinarelativelynarrowrangeduringtheperiod,
***reportedsomewhat***averageunitamountsthroughouttheperiod.26

(continued)
materialswepurchasehavebeenrelativelyflatovertheperiodofinvestigation.Staberpostconference
brief,p.1,AnswerstoStaffQuestions,p.1.Withrespecttoits***levelofaveragerawmaterialcost
andaverageCOGSingeneral,Staber,asnotedpreviously,producesarelativelysmallvolumeof
specializedwashers.
20
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.1.
21
Conferencetranscript(Liotine),p.76.
22
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.1.AccordingtoGE,***.Ibid.
23
Conferencetranscript(Liotine),p.30.Thehighleveloffixedcostswasspecificallyattributedto
largeinvestmentsincapitalassociatedwithnewplatforms,aswellascorrespondingengineeringcosts.
Ibid.
24
Withregardtotheunderlyingcomponentsofotherfactorycosts,Whirlpoolstatedthatthey...
include***.OtherFactoryCostsarecomprisedofbothfixedandvariablecosts.Thereweresome
modestchangesinthecompositionofOtherFactoryCoststhroughoutthePOI***.Whirlpool
postconferencebrief,AnswerstoStaffQuestions,p.2.***.GEpostconferencebrief,Answersto
FollowUpQuestions,p.2.
25
Staberstatedthat{t}heprimarycomponentsofotherfactorycostsincludeplantsupplies,rent,
utilities,anddepreciation.Therehavebeennosignificantchangesinthesecomponentsovertheperiod
ofinvestigation.Mostoftheseelementsarefixed,althoughfreightandutilitiesareprimarilyvariable.
Staberpostconferencebrief,p.1,AnswerstoStaffQuestions,p.2.
26
WhileeachU.S.producerhasitsownuniqueproductmixandmanufacturingoperationssuchthat
costsineachprimarycategorycanbeexpectedtovarytosomeextent,itisalsolikelythatdifferencesin
(continued...)

VI5

Grossprofitorloss
Onanabsolutebasisandasratiotosales,theindustrygenerateditshighestlevelof
grossprofitin2012.Duringthefullyearperiod,thedeteriorationintheindustrysoverallgross
profitgenerallyreflectsincreasesinaverageCOGSwhichmorethanoffsetcorresponding
increasesinaveragesalesvalue.27Incontrast,theindustryslowergrossprofitininterim2015
comparedtointerim2014reflectsthecombinationofloweraverageunitsalesvalueandhigher
averageCOGS.
AsshownintableVI3andasnotedabove,***reportidenticaldirectionaltrendsin
termsofaveragesunitsalesvalueorCOGS.Asaresult,thepatternofcompanyspecificgross
profitratioswasalso***:***grossprofitratio***in2013andthenincreasedin2014(to
aboutthelevelreportedin2012),while***fullyeargrossprofitratio***throughoutthefull
yearperiod.Themorenotable***incompanyspecificgrossprofitratiosoccurredattheend
oftheperiodwhen***grossprofitratiowas***ininterim2015comparedtointerim2014.28
Incontrast,***grossprofitratiowasthe***interimperiodswhileitsabsolutegrossprofit
amountwassomewhat***ininterim2015comparedtointerim2014.29
SG&Aexpensesandoperatingincomeorloss
TheU.S.industrysrelativelynarrowoperatinglossin2012,ascomparedtosubsequent
periods,reflectsagrossprofitratiowhichwasonlymarginallysmallerthanthecorresponding
SG&Aexpenseratio(seetableVI1).Inconjunctionwithincreasedrevenueduringthefullyear
period,theexpansionoftheindustrysoperatinglossesin2013and2014reflectscontractions
inbothgrossprofitratiosandcorrespondingincreasesintheSG&Aexpenseratio.
AsshownintableVI3,companyspecificSG&Aexpensesandcorrespondingratios
followedsomewhatdifferentpatterns.While***intotalSG&Aexpensesduringthefullyear
period,theincreaseintheindustrystotalSG&AexpensesandcorrespondingSG&Aexpense
ratioin2013was***.***.30While***SG&Aexpensesalso***duringthefullyearperiod,

(continued)
companyspecificrawmaterial,directlabor,andotherfactorycostsreflectvariationsintermsofhow
thesecostsareassigned/classified.
27
Withregardtothepatternofitsfullyeargrossprofit,Whirlpoolstatedthat{c}ostsincreased***.
GrossmargindecreasedbecauseWhirlpoolwasunabletoincreasepricescommensuratewiththe
increasedcosts.Thispricesuppressionwasattributabletodumpedpricingfromsubjectimports.
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.3.
28
Withregardtothispattern,GEstatedthat{i}n2015,welaunchedourtoploadprogramwhich
had***.Wealsocontinued***.GEpostconferencebrief,AnswerstoFollowUpQuestions,p.2.
29
AsshownintableVI3andwhilethelevelofStabersabsolutegrossprofit***ineachperiod,the
companysgrossprofitratio***.AsdescribedbyStaber,{s}inceourproductionvolumesarerelatively
low,weareabletomaintainarelativelystablegrossmargin,andthemarginsreflectedareexpected.As
evidencedinourquestionnairebetween2012andinterim2015ourcostsreflectareductionof***
percent,whileoverthesameperiodournetsalesvaluesdeclinedbyasimilar***percent,representing
arelativelystablegrossprofitratio.Staberpostconferencebrief,p.1,AnswerstoStaffQuestions,p.2.
30
***.GEpostconferencebrief,AnswerstoFollowUpQuestions,p.2.

VI6

theimpactoncorrespondingSG&Aexpenseratioswas***.AsdescribedbyWhirlpool,LRW
SG&Aratios{duringtheperiod}areslightlyhigherthanplanned.Thevarianceisentirely
attributabletodepressedsalesrevenueswhich,inturn,areafunctionofadversevolumeand
priceeffectscausedbysubjectimports.31GEandWhirlpoolbothconfirmedthattheirR&D
expenses***inSG&Aexpenses(seealsotableVI4).32

TableVI3showsthatthe***operatinglosseswasmorepronouncedcomparedto***
duetoacombinationofsharperfluctuationsingrossprofitabilityandelevatedSG&Aexpense
ratiosnotedabove.33Theindustryshigheroperatinglossininterim2015comparedtointerim
2014primarilyreflectsafurtherdeteriorationofgrossprofitratioandanSG&Aexpenseratio
whichwasaboutthesameinbothinterimperiods.
Interestexpense,otherexpenses,andnetincomeorloss

TheU.S.industryreportednetlossesofincreasingmagnitudeduringthefullyear
period(seetableVI1).Whilesharingthesamedirectionaltrend,netlossesaregreaterthan
correspondingoperatinglossesduetotheinclusionofinterestexpenseanditemsclassifiedas
otherexpenses.
AsshownintableVI1,theindustrystotalinterestexpensedeclinedduringthefullyear
periodwhich***.Incontrastandwhile***interestexpensewassomewhat***ininterim
2015comparedtointerim2014,thecompanysinterestexpensedidnotfluctuatenotably
duringthefullyearperiod.Otherexpenses,wereconsistentlylargercomparedtointerest
expense.Asdescribedby***.34Asindicatedinfootnote8,Whirlpoolconfirmedthatcosts
associatedwithclosing/restructuringLRWoperationsinMexicowerenotincludedintheLRW
financialresultsreportedtotheCommission.
EnergyEfficiencyTaxCreditswereavailableduring201213andcouldbeearnedon
relevantfrontloadandtoploadwashersmeetingspecifiedcriteriaregardingmodifiedenergy
factorsandwaterconsumption.WhilerelevantLRWproductionearnedtaxcreditsduring
201213,Whirlpoolnotedthatthetaxcreditswereusedtoreducecorporateincometax
liabilityandthatU.S.LRWoperationsdidnotcontributetaxableincome.35Atthestaff
conference,aWhirlpoolcompanyofficialalsostatedthatthegenerationoftaxcreditsisnota
factorinevaluatingthefinancialresultsofU.S.producedLRWoperations(orrelevantbusiness
unit).36

31

Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.3.
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.3.Whirlpoolpostconferencebrief,
AnswerstoStaffQuestions,p.4.
33
***andconsiderthecurrentantidumpingproceedingquiterelevantinthatcontext.GE
postconferencebrief,AnswerstoFollowUpQuestions,p.3.
34
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.5.
35
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.10.
36
Conferencetranscript(Tubman),pp.138139.
32

VI7

CAPITALEXPENDITURESANDRESEARCHANDDEVELOPMENTEXPENSES
TableVI4presentsfirmspecificcapitalexpendituresandresearchanddevelopment
(R&D)expensesrelatedtooperationsonLRWs.
Table VI-4
LRWs: Capital expenditures and research and development (R&D) expenses U.S. producers, 201214, January-September 2014, January-September 2015
*

Source: Compiled from data submitted in response to Commission questionnaires.

Theindustryshighestlevelofcapitalexpenditureswasreportedin2014with***
largestcapitalexpendituresinthatyear.AsshownintableVI4,GEscapitalexpenditures***
somewhatin2013andthenincreasedin2014whileWhirlpoolscapitalexpenditures***
throughoutthefullyearperiod.AccordingtoGE,itsreported***.37Whirlpoolstatedthatits
capitalexpenditures...areallspecifictoLRWs.Thevariousprojects/activitiesrelatedalmost
entirelytotherepatriation/expansion/updateofthefrontloadmodellineup(20122015),and
variousupdates/expansionsofthetoploadmodellineup(20122015).38
TheindustrystotalR&Dexpenses,inadditiontoincreasingthroughouttheperiod,
consistentlyexceededreportedcapitalexpenditures.WithregardtoitsreportedR&D
expenses,GEstatedthat***.39WhirlpoolstatedthatitsR&Dexpensesaretheengineering
andrelatedactivitiesforthedevelopmentandlaunchofnewLRWmodels,asreflectedin
WhirlpoolsGlobalResourcePlanning(GRP)system.InWhirlpoolsexperience,itistypicalfor
R&Dexpensestobegreaterthancapitalexpendituresinanygivenyear.40Asnotedpreviously
andwithrespecttoreportedLRWfinancialresults,GEandWhirlpoolconfirmedthatR&D
expensesare***inSG&Aexpenses.
ASSETSANDRETURNONINVESTMENT
TableVI5presentsdataontheU.S.producerstotalassets,assetturnover(salesdivided
bytotalassets),andreturnonassets.41AsreportedtotheCommission,***.42

37

GEU.S.producerquestionnaireresponse,responsetoIII13.
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.3.
39
GEpostconferencebrief,AnswerstoFollowUpQuestions,p.3
40
Whirlpoolpostconferencebrief,AnswerstoStaffQuestions,p.4.
41
Withrespecttoacompanysoveralloperations,staffnotesthatatotalassetvalue(i.e.,thebottom
linenumberontheassetsideofacompanysbalancesheet)reflectsanaggregationofanumberof
assetswhichinmanyinstancesarenotproductspecific.Accordingly,highlevelallocationfactors
presumablywererequiredinordertoreportatotalassetvaluespecifictoU.S.LRWoperations.As
(continued...)
38

VI8

Table VI-5
LRWs: U.S. producers total assets, asset turnover, and return on assets, 2012-14
*

Source: Compiled from data submitted in response to Commission questionnaires.

CAPITALANDINVESTMENT
TheCommissionrequestedU.S.producersofLRWstodescribeanyactualorpotential
negativeeffectsontheirreturnoninvestmentortheirgrowth,investment,abilitytoraise
capital,existingdevelopmentandproductionefforts(includingeffortstodevelopaderivative
ormoreadvancedversionoftheproduct),orthescaleofcapitalinvestmentsasaresultof
importsofLRWsfromChina.TableVI6tabulatestheresponsesonactualnegativeeffectson
investment,growthanddevelopment,aswellasanticipatednegativeeffects.TableVI7
presentsthenarrativeresponsesofU.S.producersregardingactualandanticipatednegative
effectsoninvestment,growthanddevelopment.
Table VI-6
LRWs: Negative effects of imports from subject sources on investment, growth, and development
since January 1, 2012
*

Source: Compiled from data submitted in response to Commission questionnaires.

Table VI-7: Narrative responses by U.S. producers regarding actual and anticipated negative
effects of imports from subject sources on investment, growth, and development since January 1,
2012
*

Source: Compiled from data submitted in response to Commission questionnaires

(continued)
such,itshouldbenotedthatthepatternofassetvaluesreportedcanreflectchangesinunderlyingasset
accountbalances,aswellasperiodtoperiodvariationsinrelevantallocationfactors.***.
42
***.GEpostconferencebrief,AnswerstoFollowUpQuestions,p.3.

VI9

PARTVII: THREATCONSIDERATIONSANDINFORMATIONON
NONSUBJECTCOUNTRIES

Section771(7)(F)(i)oftheAct(19U.S.C.1677(7)(F)(i))providesthat

IndeterminingwhetheranindustryintheUnitedStatesisthreatened
withmaterialinjurybyreasonofimports(orsalesforimportation)ofthe
subjectmerchandise,theCommissionshallconsider,amongother
relevanteconomicfactors1

(I)
ifacountervailablesubsidyisinvolved,suchinformationasmay
bepresentedtoitbytheadministeringauthorityastothenature
ofthesubsidy(particularlyastowhetherthecountervailable
subsidyisasubsidydescribedinArticle3or6.1oftheSubsidies
Agreement),andwhetherimportsofthesubjectmerchandiseare
likelytoincrease,
(II)

anyexistingunusedproductioncapacityorimminent,substantial
increaseinproductioncapacityintheexportingcountryindicating
thelikelihoodofsubstantiallyincreasedimportsofthesubject
merchandiseintotheUnitedStates,takingintoaccountthe
availabilityofotherexportmarketstoabsorbanyadditional
exports,

(III)

asignificantrateofincreaseofthevolumeormarketpenetration
ofimportsofthesubjectmerchandiseindicatingthelikelihoodof
substantiallyincreasedimports,

(IV)

whetherimportsofthesubjectmerchandiseareenteringatprices
thatarelikelytohaveasignificantdepressingorsuppressing
effectondomesticprices,andarelikelytoincreasedemandfor
furtherimports,

(V)

inventoriesofthesubjectmerchandise,

1
Section771(7)(F)(ii)oftheAct(19U.S.C.1677(7)(F)(ii))providesthatTheCommissionshall
consider{thesefactors}...asawholeinmakingadeterminationofwhetherfurtherdumpedor
subsidizedimportsareimminentandwhethermaterialinjurybyreasonofimportswouldoccurunless
anorderisissuedorasuspensionagreementisacceptedunderthistitle.Thepresenceorabsenceof
anyfactorwhichtheCommissionisrequiredtoconsider...shallnotnecessarilygivedecisiveguidance
withrespecttothedetermination.Suchadeterminationmaynotbemadeonthebasisofmere
conjectureorsupposition.

VII1

(VI)

thepotentialforproductshiftingifproductionfacilitiesinthe
foreigncountry,whichcanbeusedtoproducethesubject
merchandise,arecurrentlybeingusedtoproduceotherproducts,

(VII)

inanyinvestigationunderthistitlewhichinvolvesimportsofboth
arawagriculturalproduct(withinthemeaningofparagraph
(4)(E)(iv))andanyproductprocessedfromsuchrawagricultural
product,thelikelihoodthattherewillbeincreasedimports,by
reasonofproductshifting,ifthereisanaffirmativedetermination
bytheCommissionundersection705(b)(1)or735(b)(1)with
respecttoeithertherawagriculturalproductortheprocessed
agriculturalproduct(butnotboth),

(VIII)

theactualandpotentialnegativeeffectsontheexisting
developmentandproductioneffortsofthedomesticindustry,
includingeffortstodevelopaderivativeormoreadvancedversion
ofthedomesticlikeproduct,and

(IX)

anyotherdemonstrableadversetrendsthatindicatethe
probabilitythatthereislikelytobematerialinjurybyreasonof
imports(orsaleforimportation)ofthesubjectmerchandise
(whetherornotitisactuallybeingimportedatthetime).2

Informationonthevolumeandpricingofimportsofthesubjectmerchandiseis
presentedinPartsIVandV;andinformationontheeffectsofimportsofthesubject
merchandiseonU.S.producersexistingdevelopmentandproductioneffortsispresentedin
PartVI.Informationoninventoriesofthesubjectmerchandise;foreignproducersoperations,
includingthepotentialforproductshifting;anyotherthreatindicators,ifapplicable;andany
dumpinginthirdcountrymarkets,follows.Alsopresentedinthissectionofthereportis
informationobtainedforconsiderationbytheCommissiononnonsubjectcountries.

THEINDUSTRYINCHINA
ThepetitionlistedthreeproducersofLRWsinChina.3TheCommissionreceived
questionnaireresponsesfromthosethreeproducersofLRWsinChina,whicharebelievedto

2
Section771(7)(F)(iii)oftheAct(19U.S.C.1677(7)(F)(iii))furtherprovidesthat,inantidumping
investigations,...theCommissionshallconsiderwhetherdumpinginthemarketsofforeigncountries
(asevidencedbydumpingfindingsorantidumpingremediesinotherWTOmembermarketsagainstthe
sameclassorkindofmerchandisemanufacturedorexportedbythesamepartyasunderinvestigation)
suggestsathreatofmaterialinjurytothedomesticindustry.
3
Thepetitionlisted(1)NanjingLGPandaAppliancesCo.,Ltd.(LG)andtwomanufacturingfacilities
operatingasaffiliatesofSamsungElectronicsCo.,Ltd.,whichare(2)SuzhouSamsungElectronicsCo.,
Ltd.(Samsung)and(3)SuzhouSamsungElectronicsCo.,Ltd.Export(SamsungExport).

VII2

accountforthevastmajorityofproductionofLRWsinChina4andvirtuallyallofexportsof
LRWsfromChinatotheUnitedStatesduringtheperiodofinvestigation.5Thesefirmsare
identifiedintableVII1alongwitheachfirmscapacity,production,andexportshipmentdata.

TableVII1
LRWs:ReportingproducersofLRWsinChina,capacity,production,shareofreportedproduction,
capacityutilization,exportstotheUnitedStates,andshareofexportstotheUnitedStates,byfirm,
2012September2015

Firm
LG
Samsung
SamsungExport
Total

Production
(units)
***
***
***
***

Shareof
reported
Exportsto
production
theUnited
(percent)
States(units)
***
***
***
***
***
***
***
***

Shareof
reported
exportsto
theUnited
States
(percent)
***
***
***
***

Total
shipments
(units)
***
***
***
***

Shareof
firm'stotal
shipments
exportedto
theUnited
States
(percent)
***
***
***
***

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

ProducersofLRWsinChina
LGElectronics

LGElectronics,Inc.isheadquarteredinSeoul,Koreaandoperatesfourbusinessunits
(1)homeentertainment,(2)mobilecommunications,(3)homeappliancesandairsolutions,
and(4)vehiclecomponents,whichproduceanarrayofproductssuchasflatpaneltelevisions,
mobilecellulardevices,airconditioners,washingmachines,andrefrigerators.Thefirm
employs83,000peopleworldwideandreportedglobalsalesof$55.91billionin2014.6Thefirm
producesLRWswithinitshomeappliancesandairsolutionsbusinessunitinKoreaandatits

4
Asof2014,themajorproducersofLRWsinChinainclude:(1)HaierGroup,(2)Samsung,(3)LG,and
(4)Whirlpool.WhirlpoolhastwosubsidiariesinChina,bothofwhichitclaimeddonotproduceLRWs
(1)HisenseWhirlpool(Zhejiang)ElectricAppliancesCo.,Ltd.;and(2)in2014,Whirlpoolacquireda51
percentmajorityownershipinterestinHefeiRongshidaSanyoElectricCo.,Ltd.,aleadingChinese
appliancemanufacturerinHefei,China.ThisfirmisnowWhirlpool(China)Co.,Ltd.Whirlpool
CompletesAcquisitionOfMajorityStakeInHefeiSanyoWhirlpoolpressrelease,October24,2014.
http://investors.whirlpoolcorp.com/releasedetail.cfm?releaseid=877999,accessedJanuary11,2016.

Thepetitionlisted14otherproducersofwashersinChinawhichitclaimedproducedoutof
scopeproduct.Amongtheselistedproducerswere***.Petition,pp.2226.
5
AccordingtoproprietaryimportdataobtainedfromCBP,LGandSamsungaccountedfor***
percentofallexportsofLRWsfromChinatotheUnitedStatesduringtheperiodofinvestigation.
6
http://www.lg.com/global/investorrelations/companyinfo/overview,accessedJanuary14,2016.

VII3

affiliateinChina,NanjingLGPandaAppliancesCo.,Ltd.(LG).LGreportedthatitbegan
productionofLRWsinChinaforexporttotheU.S.marketin***.7
LGreportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresales
ofLRWs.ItreportedthatitsLRWcapacityremainedsteadyfrom2012to2014andremained
steadythroughJanuarySeptember2015.Itscapacityisprojectedto***from2014to2016.LG
reportedthatitsproductionincreasedby***percentfrom2012to2014andwashigherby***
percentinJanuarySeptember2015thaninJanuarySeptember2014.8Itsproductionis
projectedto***from2015to2016.In2014,***percentofLGstotalshipmentsofLRWswere
internalconsumption,***percentwerecommercialshipmentsinitshomemarket,***
percentwereexportedtotheUnitedStates,***percentwereexportedtootherexport
marketssuchas***.LGreportedthatitssoleU.S.importerofLRWsduringtheperiodof
investigationwas***.9
SamsungElectronics

SamsungElectronics,Inc.isheadquarteredinGyeonggido,Koreaandoperatesnine
businessunits(1)visualdisplay,(2)digitalappliances,(3)printingsolutions,(4)healthand
medicalequipment,(5)mobilecommunications,(6)networkbusinesses,(7)memory,(8)
systemLSI,and(9)LEDbusiness,whichproduceanarrayofproducts,suchasflatpanel
televisions,printers,photocopiers,medicalequipment,mobilecellulardevices,computer
networkingdevices,washingmachines,andrefrigerators.Thefirmreportedglobalsalesof
$305.0billionin2014.10SamsungproducesLRWsinitsdigitalappliancesbusinessunit.The
firmproducesLRWsinKorea,Mexico,andattwoaffiliatesinChina(1)SuzhouSamsung
ElectronicsCo.,Ltd.(Samsung)and(2)SuzhouSamsungElectronicsCo.,Ltd.Export
(SamsungExport).SamsungreportedthatitbeganproductionofLRWsinChinaforexport
totheU.S.marketin***.11SamsungExportreportedthatitbeganproductionofLRWsin
ChinaforexporttotheU.S.marketin***.12

7
ForeignproducerquestionnaireresponseofLG,questionII2.LGreportedthatitsLRWproduction
facilityinChinawasfirstestablishedin1995andproducedtoploadandfrontloadLRWsfordifferent
markets,includingChina,MiddleEastandAfrica.LGstatedthatbecauseofcostfactors,ithadalready
consideredtheoptionofmovingitsLRWproductionfortheU.S.marketfromKoreatoChinabeforethe
filingofthepetitionintheCommissionsfirstLRWinvestigationsin2011.Respondentspostconference
brief,exh.B,p.2.
8
LGreportedthat***.ForeignproducerquestionnaireofLG,questionII4a.
9
LGUSAreportedthat***.U.S.importerquestionnaireofLGUSA,questionII8.
10
SamsungElectronicsCo.,Ltd.,AnnualReport,2014;
http://www.samsung.com/us/aboutsamsung/samsung_group/our_performance/,accessedJanuary14,
2016.
11
ForeignproducerquestionnaireresponseofSamsung,questionII2.
12
ForeignproducerquestionnaireresponseofSamsungExport,questionII2.Samsungstatedthat
operatingcostsavingsanditsabilitytoconsolidateLRWproductionfromKoreaandMexicointoone
facilityinChinawerethefactorsinitsdecisiontomoveproductionofLRWsfromKoreatoChina.
SamsungcurrentlyproducesLRWsinKoreaformarketsotherthantheUnitedStates.Respondents
postconferencebrief,exh.C,p.1.

VII4


Samsung

Samsungreportedthat***percentofitstotalsalesinthemostrecentfiscalyearwere
salesofLRWs.ItreportedthatitsLRWcapacityincreasedfrom***in2012to***unitsin2013
asitbeganproductionofLRWsinChinain***.From2013to2014,itscapacityincreasedby
***percentandwashigherby***percentinJanuarySeptember2015thaninJanuary
September2014.Itscapacityisprojectedto***percentin2015.Samsungreportedthatits
production,whichbeganin***,increasedby***percentfrom2013to2014andwashigherby
***percentinJanuarySeptember2015thaninJanuarySeptember2014.13Itsproductionis
projectedto***from2014to2015.In2014,***percentofSamsungstotalshipmentsof
LRWswereinternalconsumption,***commercialshipmentsinitshomemarket,***percent
wereexportedtotheUnitedStates,***percentwereexportedtootherexportmarketssuch
as***.SamsungreportedthatitssoleU.S.importerofLRWsduringtheperiodofinvestigation
was***.14
SamsungExport

SamsungExportreportedthat***percentofitstotalsalesinthemostrecentfiscal
yearweresalesofLRWs.Itreportedthatfrom2012to2014,itsLRWcapacityincreasedby***
percentasitbeganproductionofLRWsinChinain***.Itscapacitywashigherby***percent
inJanuarySeptember2015thaninJanuarySeptember2014andisprojectedto***percentin
2015.SamsungExportreportedthatitsproductionincreasedby***percentfrom2012to
2014andwashigherby***percentinJanuarySeptember2015thaninJanuarySeptember
2014.15Itsproductionisprojectedto***from2014to2015.In2014,***percentof
SamsungExportstotalshipmentsofLRWswereinternalconsumption,***commercial
shipmentsinitshomemarket,***percentwereexportedtotheUnitedStates,***percent
wereexportedtootherexportmarketssuchas***.SamsungExportreportedthatitssole
U.S.importerofLRWsduringtheperiodofinvestigationwas***.16

DatafortheLRWindustryinChina
TableVII2presentsdataforreportedcapacity,production,andshipmentsofLRWsfor
allreportingproducersinChina.Collectively,producersinChinareportedthatLRWcapacity
increasedby***percentfrom2012to2014,andwashigherby***percentinJanuary
September2015thaninJanuarySeptember2014.Capacityisprojectedto***.Theirreported
LRWproductionincreasedby***percentfrom2012to2014,butwashigherby***percentin
JanuarySeptember2015thaninJanuarySeptember2014.Productionisprojectedto***.In
2014,producersinChinareportedthat***percentoftheirtotalshipmentsofLRWswere

13
Samsungreportedthat***.ForeignproducerquestionnaireofSamsung,questionII4a.
14
SamsungUSAreportedthat***.U.S.importerquestionnaireofSamsungUSA,questionII8.
15
SamsungExportreportedthat***.ForeignproducerquestionnaireofSamsungExport,
questionII4a.
16
SamsungUSAreportedthat***.U.S.importerquestionnaireofSamsungUSA,questionII8.

VII5

internallyconsumed,***percentwerecommercialsalestotheirhomemarket,***percent
wereexportedtotheUnitedStates,and***percentwereexportedtoothermarkets,including
***.

TableVII2
LRWs:Chinasreportedproductioncapacity,production,shipments,andinventories,201214,
JanuarySeptember2014,JanuarySeptember2015,andprojectionsfor2015and2016\

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.INVENTORIESOFIMPORTEDMERCHANDISE
TableVII3presentsdataonU.S.importersreportedinventoriesofLRWs.

TableVII3
LRWs:U.S.importersinventories,201214,JanuarySeptember2014,JanuarySeptember2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

U.S.IMPORTERSOUTSTANDINGORDERS
TheCommissionrequestedU.S.importerstoindicatewhethertheyimportedorarrangedforthe
importationofLRWsafterSeptember30,2015.***U.S.importersindicatedthattheyhadimportedor
arrangedforimportationLRWsfromChinasinceSeptember30,2015.TableVII4presentstheU.S.
importersthathadimportedorarrangedfortheimportationofthesubjectproductfromChinaandthe
quantityofthoseU.S.imports.

TableVII4
LRWs:U.S.importersordersofsubjectimportsfromChinasubsequenttoSeptember30,2015

*******

Source:CompiledfromdatasubmittedinresponsetoCommissionquestionnaires.

ANTIDUMPINGORCOUNTERVAILINGDUTYORDERSINTHIRDCOUNTRYMARKETS
Therehavebeennoantidumpingorcountervailingdutyordersinthirdcountrymarkets
onLRWsorrelatedwashingmachinesfromChina.

VII6

INFORMATIONONNONSUBJECTCOUNTRIES
Inassessingwhetherthedomesticindustryismateriallyinjuredorthreatenedwith
materialinjurybyreasonofsubjectimports,thelegislativehistorystatesthatthe
Commissionmustexamineallrelevantevidence,includinganyknownfactors,otherthanthe
dumpedorsubsidizedimports,thatmaybeinjuringthedomesticindustry,andthatthe
Commissionmustexaminethoseotherfactors(includingnonsubjectimports)toensurethatit
isnotattributinginjuryfromothersourcestothesubjectimports.17

ExportersofLRWs
ThevastmajorityofproductionofLRWsoccursintheUnitedStates,China,EUmember
countries,Korea,andMexico.ExportdataspecificallyforLRWs,asdefinedbythescopeofthis
investigation,arenotavailablefromglobaltradedatabases.However,exportdataareavailable
forasomewhatbroadercategoryofwashingmachineswithadrylinencapacityexceeding10
kilograms.Thiswouldincludeoutofscopeproductssuchascoinoperatedwashingmachines,
lowtechnologyLRWs,possiblysomestackableunits,andverylargesizedwashingmachines.
Thesedata,presentedintableVII5,provideanestimateofglobalexportsofLRWs.In2014,
thefiveleadingcountryexporters(China,Korea,Mexico,UnitedStates,andThailand)
accountedfor85percentofglobalexportsofwashingmachinesofacapacitydrylinencapacity
exceeding10kilograms.

17
MittalSteelPointLisasLtd.v.UnitedStates,SlipOp.20071552at17(Fed.Cir.Sept.18,2008),
quotingfromStatementofAdministrativeActiononUruguayRoundAgreementsAct,H.R.Rep.103316,
Vol.Iat85152;seealsoBratskAluminumSmelterv.UnitedStates,444F.3d1369(Fed.Cir.2006).

VII7

TableVII5
LRWs:Leadingcountryexportersandtotalglobalexports,201214
Calendaryear
Item

2012

2013

2014

Value(1,000dollars)

UnitedStates

325,672

307,202

330,890

China

258,367

681,382

901,381

1,139,585

795,802

624,720

Mexico*

475,534

449,446

485,006

Thailand

188,727

236,433

280,003

Germany

73,125

85,291

87,995

Sweden

48,218

61,551

63,269

CzechRepublic

47,084

52,591

58,082

Spain

38,972

38,144

44,400

Belgium

38,017

44,339

43,742

Italy

15,708

23,082

28,048

Taiwan

21,076

15,487

17,952

Allothermajorexportingcountries.
Korea*

Allotherexportingcountries.
Totalglobalexports

80,668

95,444

107,284

2,750,752

2,886,195

3,072,770

Shareofvalue(percent)

UnitedStates

11.8

10.6

10.8

9.4

23.6

29.3

41.4

27.6

20.3

Mexico*

17.3

15.6

15.8

Thailand

6.9

8.2

9.1

Germany

2.7

3.0

2.9

Sweden

1.8

2.1

2.1

CzechRepublic

1.7

1.8

1.9

Spain

1.4

1.3

1.4

Belgium

1.4

1.5

1.4

Italy

0.6

0.8

0.9

Taiwan

0.8

0.5

0.6

Allotherexportingcountries.

2.9

3.3

3.5

China
Allothermajorexportingcountries.
Korea*

Totalglobalexports
100.0
100.0
100.0
*AntidumpingdutyordersenteredintoeffectinFebruary2013intheUnitedStatesonU.S.importsofLRWsfrom
KoreaandMexico.AcountervailingdutyorderalsowentintoeffectinFebruary2013onU.S.importsofLRWs
fromKorea.
Note.Quantitydataarenotreportedsincethereisnoconsistentunitusedacrossreportingcountries.Some
reportinunitsorpieces,othersinweightmeasuressuchasmetrictons.
Source:OfficialexportsstatisticsunderHTSsubheading8450.20asreportedbyvariousnationalstatistical
authoritiesintheGTIS/GTAdatabase,accessedJanuary4,2016.

VII8


Korea18

DongbuDaewooElectronics,LG,andSamsungarethemajorproducersofLRWsin
Korea.InFebruary2013,theDongbuGroupacquiredDaewooElectronicsCorp.19Daewoowas
theoneKoreanproducer/exportersubjecttoahighcashdepositrate,79.11percent,underthe
U.S.antidumpingandcountervailingdutyordersonLRWsfromKorea.20DongbuDaewoo
Electronicsreportedlyhasbeenincreasingproductionandexports,particularlytoChinaand
otherthirdmarkets.21SamsungproducesLRWsandrelateddryersinKorea,butthese
productsarenotfortheU.S.market.22SamsungsLRWproductionfortheU.S.marketwas
movedtoChina,aswasitsMexicanproductionfortheU.S.market.23LGcurrentlyproduces
LRWsanddryersinKorea.24TableVII6presentsdataforexportsfromKoreatoitstop
destinationmarkets.

18
SomeinformationontheKoreanLRWindustrywastakenfrom,CertainLargeResidentialWashers
fromKoreaandMexico,InvestigationsNos.701TA488and731TA11991200(Final),Publication4378,
February2013,pp.VII5VII8).
19
TheKoreaHerald,DongbuDaewooElectronicsSailsUnderNewName,April1,2013.
http://www.koreaherald.com/common_prog/newsprint.php?ud=20130401000613&dt=2(accessed
January11,2016).
20
LargeResidentialWashersFromMexicoandtheRepublicofKorea:AntidumpingDutyOrder,78FR
11148,February15,2013.LargeResidentialWashersFromtheRepublicofKorea:FinalResultsofthe
AntidumpingDutyAdministrativeReview;20122014,80FR55595,September16,2015.Large
ResidentialWashersFromtheRepublicofKorea:CountervailingDutyOrder,78FR11154,February15,
2013.
21
Yoochul,Kim,DongbuSeesSteepRiseinApplianceSales,TheKoreaTimes,November19,2015.
http://www.koreatimes.co.kr/www/news/tech/2015/11/133_191383.html(accessedJanuary11,2016).
Minhyung,Lee,DongbuDaewooSeekstoHave300StoresinChina,TheKoreaTimes,August4,2015.
http://www.koreatimes.co.kr/www/news/biz/2015/11/123_184175.html(accessedJanuary11,2016).
22
Conferencetranscript,pp.211and253(Brindle).
23
Conferencetranscript,p.211(Brindle).
24
Conferencetranscript,p.212(Kim).

VII9


TableVII6
Washers:Koreanexportsbydestinationmarket,201214
Calendaryear
Item

2012

2013

Quantity(units)

Korea'sexportstotheUnitedStates*
Korea'sexportstoothermajor
destinationmarkets.
Australia

1,126,896

556,072

286,803

90,303

93,639

96,369

Taiwan

78,521

85,975

83,996

Turkey

17,200

52,760

83,494

UnitedArabEmirates

28,090

15,208

73,459

Mexico

96,214

107,618

67,915

Colombia

70,207

95,212

59,482

SaudiArabia

57,441

70,523

58,662

Brazil

86,048

41,793

55,486

1,114,411

725,688

576,056

1,844,488

1,441,722

Allotherdestinationmarkets
TotalKoreaexports

2,765,331

Value(1,000dollars)

Korea'sexportstotheUnitedStates*

511,839

278,880

142,153

41,125

38,357

39,226

27,480

31,369

32,555

Turkey

8,416

21,893

29,544

UnitedArabEmirates

9,272

6,151

23,064

Mexico

28,425

39,529

32,608

Colombia

29,463

33,412

25,350

SaudiArabia

26,065

34,192

28,566

Korea'sexportstoothermajor
destinationmarkets.
Australia
Taiwan

Brazil
Allotherdestinationmarkets
TotalKoreaexports
Tablecontinued.

2014

34,414

16,669

17,426

423,087

295,351

254,229

1,139,585

795,802

624,720

VII10


TableVII6Continued
Washers:Koreanexportsbydestinationmarket,201214
Calendaryear
Item

2012

2013

2014

Unitvalue(dollarsperunit)

Korea'sexportstotheUnitedStates*

454

502

496

Korea'sexportstoothermajor
destinationmarkets.
Australia

455

410

407

Taiwan

350

365

388

Turkey

489

415

354

UnitedArabEmirates

330

404

314

Mexico

295

367

480

Colombia

420

351

426

SaudiArabia

454

485

487

Brazil

400

399

314

Allotherdestinationmarkets

380

407

441

412

431

433

TotalKoreaexports

Shareofquantity(percent)

Korea'sexportstotheUnitedStates*

40.8

30.1

19.9

3.3

5.1

6.7

Taiwan

2.8

4.7

5.8

Turkey

0.6

2.9

5.8

UnitedArabEmirates

1.0

0.8

5.1

Mexico

3.5

5.8

4.7

Colombia

2.5

5.2

4.1

SaudiArabia

2.1

3.8

4.1

Korea'sexportstoothermajor
destinationmarkets.
Australia

Brazil
Allotherdestinationmarkets

3.1

2.3

3.8

40.3

39.3

40.0

TotalKoreaexports
100.0
100.0
100.0
*AntidumpingandcountervailingdutyordersenteredintoeffectinFebruary2013intheUnitedStatesonU.S.
importsofLRWsfromKorea.

Source:OfficialKoreanexportsstatisticsunderHTSsubheading8450.20asreportedbyKoreaCustomsandTrade
DevelopmentInstitutionintheGTIS/GTAdatabase,accessedJanuary4,2016.

VII11


Mexico25

Currently,therearethreemajorproducersofLRWsinMexico,Electrolux,Mabe,and
Whirlpool.In2011and2012,ElectroluxmoveditsLRWmanufacturingintheUnitedStatesto
Mexico,butretainedsomeresearchanddevelopmentjobsintheUnitedStates.Whirlpool
moveditsremainingMexicanproductionoffrontloadLRWsfromMexicototheUnitedStates
during201213.26Currently,WhirlpooldoesproducesomewashingmachinesinMexico,but
theseproductsarenotwithinthescopeofthisinvestigation,andeithersupplytheMexican
homemarketorotherSouthAmericancountries.27MabeisaproducerofLRWsinMexicothat
hasanalliancewithGEfortheproductionoflargeappliances,includingLRWs.In2012,
SamsungtransferreditsLRWproductionfromMexicotoChina,andnowonlyproducesdryers
inMexico.28TableVII7presentsdataforexportsfromMexicotoitstopdestinationmarkets.

25
SomeinformationontheMexicanLRWindustrywastakenfrom,CertainLargeResidential
WashersfromKoreaandMexico,InvestigationsNos.701TA488and731TA11991200(Final),
Publication4378,February2013,pp.VII5VII8).
26
Conferencetranscript,p.23(Liotine).
27
Conferencetranscript,pp.7677(Liotine).
28
Conferencetranscript,p.211(Brindle).

VII12


TableVII7

Washers:Mexicanexportsbydestinationmarket,201214
Calendaryear
Item

2012

2013

2014

Quantity(units)

Mexico'sexportstotheUnitedStates*

640,895

528,134

523,937

Mexico'sexportstoothermajor
destinationmarkets.
Colombia

208,975

206,576

286,372

Peru

41,913

91,529

160,477

Chile

73,544

81,045

122,438

Ecuador

36,396

34,330

51,897

Canada

16,785

5,474

51,100

Guatemala

15,889

16,780

23,638

Panama

12,634

11,612

22,066

Venezuela

68,776

58,524

17,179

Allotherdestinationmarkets

59,701

74,023

89,336

1,175,508

1,108,027

1,348,440

TotalMexicoexports

Value(1,000dollars)

Mexico'sexportstotheUnitedStates*

327,919

264,446

259,590

55,408

55,128

75,931

Peru

11,189

26,390

40,885

Chile

19,745

21,625

30,651

Ecuador

9,398

9,829

13,531

Canada

6,113

2,831

22,749

Guatemala

4,115

4,258

5,908

Panama

3,159

3,214

5,943

Venezuela

22,775

41,137

5,549

Allotherdestinationmarkets

15,713

20,586

24,268

475,534

449,446

485,006

Mexico'sexportstoothermajor
destinationmarkets.
Colombia

TotalMexicoexports
Tablecontinued.

VII13


TableVII7Continued
Washers:Mexicanexportsbydestinationmarket,201214
Calendaryear
Item

2012

2013

2014

Unitvalue(dollarsperunit)

Mexico'sexportstotheUnitedStates*

512

501

495

Mexico'sexportstoothermajor
destinationmarkets.
Colombia

265

267

265

Peru

267

288

255

Chile

268

267

250

Ecuador

258

286

261

Canada

364

517

445

Guatemala

259

254

250

Panama

250

277

269

Venezuela

331

703

323

Allotherdestinationmarkets

263

278

272

405

406

360

TotalMexicoexports

Shareofquantity(percent)

Mexico'sexportstotheUnitedStates*

54.5

47.7

38.9

Mexico'sexportstoothermajor
destinationmarkets.
Colombia

17.8

18.6

21.2

Peru

3.6

8.3

11.9

Chile

6.3

7.3

9.1

Ecuador

3.1

3.1

3.8

Canada

1.4

0.5

3.8

Guatemala

1.4

1.5

1.8

Panama

1.1

1.0

1.6

Venezuela

5.9

5.3

1.3

Allotherdestinationmarkets

5.1

6.7

6.6

TotalMexicoexports
100.0
100.0
100.0
*AnantidumpingdutyorderenteredintoeffectinFebruary2013intheUnitedStatesonU.S.importsofLRWs
fromMexico
.
Source:OfficialMexicanexportsstatisticsunderHTSsubheading8450.20asreportedbyMexico'sINEGIinthe
GTIS/GTAdatabase,accessedJanuary4,2016.

VII14

APPENDIXA
FEDERALREGISTERNOTICES

A1

TheCommissionmakesavailablenoticesrelevanttoitsinvestigationsandreviewsonits
website,www.usitc.gov.Inaddition,thefollowingtabulationpresents,inchronologicalorder,
FederalRegisternoticesissuedbytheCommissionandCommerceduringthecurrent
proceeding.

Citation
80FR79611
December22,
2015

Title

Link

LargeResidentialWashersFromChina;
InstitutionofanAntidumpingDuty
investigationandSchedulingofa
PreliminaryPhaseInvestigation

https://www.federalregister.gov/artic
les/2015/12/22/201532083/large
residentialwashersfromchina
institutionofanantidumpingduty
investigationandscheduling

81FR1398
January12,
2016

LargeResidentialWashersFromthe
PeoplesRepublicofChina:Initiationof
LessThanFairValueInvestigation

https://www.federalregister.gov/artic
les/2016/01/12/201600473/large
residentialwashersfromthe
peoplesrepublicofchinainitiation
oflessthanfairvalue

A3

A4

APPENDIXB
CONFERENCEWITNESSES

B1

B2

CALENDAROFPUBLICPRELIMINARYCONFERENCE

ThoselistedbelowappearedaswitnessesattheUnitedStatesInternationalTradeCommissions
preliminaryconference:

Subject:

LargeResidentialWashersfromChina

Inv.No.:

731TA1306(Preliminary)

DateandTime:

January6,20169:30a.m.

Sessions wereheld in connection with this preliminary investigation in the M a i n


H e a r i n g R o o m ( R o o m 1 0 1 ) ,500EStreet,S.W.,Washington,D.C.

OPENINGREMARKS:

Petitioner(JackA.Levy,CassidyLevyKent(USA)LLP)
Respondents(DanielL.Porter,Curtis,MalletPrevost,Colt&MosleLLP)
InSupportoftheImpositionof
AntidumpingDutyOrder:

CassidyLevyKent(USA)LLP
Washington,D.C.

and

AdduciMastriani&SchaumbergLLP
Washington,D.C.on
behalfof

WhirlpoolCorporation

JosephLiotine,President,WhirlpoolNorthAmerica

CaseyTubman,GeneralManagerforLaundry,Whirlpool

NorthAmerica

AaronSpira,GroupCounsel,NorthAmericaRegion,

WhirlpoolCorporation

JackA.Levy
)

MylesS.Getlan
)

JenniferA.Hillman
)OFCOUNSEL
JamesR.Cannon,Jr. )

DeannaTannerOkun )

B3

InSupportoftheImpositionof
AntidumpingDutyOrder(continued):

TradeWinsLLC
Washington,DC
onbehalfof

GEAppliances&Lighting

JohnR.Magnus

)OFCOUNSEL

InOppositiontotheImpositionof
AntidumpingDutyOrder:

Curtis,MalletPrevost,Colt&MosleLLP
Washington,DC
onbehalfof

LGElectronics

JohnR.Herring,VicePresidentofSales,HomeAppliances,Home

ImprovementChannel,LGElectronicsUSA,Inc.

JohnToohey,DirectorofStrategy,LGElectronicsUSA,Inc.

RichardC.Wingate,VicePresidentHumanResourcesandGeneral

Counsel,LGElectronicsUSA,Inc.

SungHan(Andrew)Kim,ProductManagerforLaundry,LGElectronics
USA,Inc.

MunGu(Moon)Park,HeadofTrade&Customs,Management

ConsultingOperation,KPMGKorea

DanielKlett,Principal,CapitalTrade,Inc.

DanielL.Porter

JamesP.Durling

)OFCOUNSEL

MatthewP.McCullough
)

B4

InOppositiontotheImpositionof
AntidumpingDutyOrder(continued):

Arnold&PorterLLP
Washington,DC
onbehalfof

SuzhouSamsungElectronicsCo.Ltd.
SuzhouSamsungElectronicsCo.Ltd.Export
SamsungElectronicsAmerica,Inc.

(collectivelySamsung)

DeanBrindle,Director,LaundryProductMarketing,Samsung

ElectronicsAmerica,Inc.

MichaelT.Shor

)OFCOUNSEL

J.DavidPark

REBUTTAL/CLOSINGREMARKS:

Petitioner(JackA.LevyandMylesS.Getlan,CassidyLevyKent(USA)LLP)
Respondents(MichaelT.Shor,Arnold&PorterLLP)

B5

B6

APPENDIXC
SUMMARYDATA

C1

C2

TableC1
LRWs:SummarydataconcerningtheU.S.market,201214,JanuarySeptember2014,andJanuary
September2015

*******

C3

C4