U.S. to Charge Duties on Some LG, Samsung Washing Machines
July 20 2016 - 7:10PM
Dow Jones News
The U.S. government will begin charging duties on washing
machines built in China by Samsung Electronics Co. and LG
Electronics Inc., after upholding a complaint by competitor
Whirlpool Corp. alleging that the companies sold their washers in
the U.S. for less than they cost to produce.
In a preliminary report Wednesday, the U.S. Commerce Department
said it also found a surge of imports from Samsung over a
relatively short period, in anticipation of possible imposition of
anti-dumping duties. In response, U.S. Customs and Border
Protection will impose duties on certain Samsung washing machines
retroactively up to 90 days before the Commerce Department's
report.
The findings come about four years after the government imposed
duties on the South Korean companies' washers built in South Korea
and Mexico. Benton Harbor, Mich.-based Whirlpool had alleged the
companies avoided paying those fees by moving their production of
washing machines to China.
Whirlpool's complaint covers full-size top-loading and
front-loading residential washers, along with certain washer parts,
made by Samsung and LG in China. The duties amount to 111% on
Samsung's washers and 50% on LG's models. Many of these washers
sell in the U.S. for $500 to $1,000.
Whirlpool had said the companies had been using discount prices
on washers to grab share in the U.S. appliance market.
LG said it intends to contest the order in advance of the
Commerce Department's final determination of duties in early
December. The company said Wednesday the methodology and
calculations used to determine the duties are "erroneous" and
resulted in "unexpectedly high" fees. LG also said it is preparing
to appeal the case to the U.S. International Trade Commission,
where it plans to argue that its imports aren't harming the U.S.
market.
A Samsung spokeswoman said the company "did not engage in unfair
trade practices and is disappointed" with the Commerce Department's
decision and said the company is considering options for further
action. Samsung said the duties will force U.S. consumers to pay
higher prices for appliances and decrease competition in the U.S.
market.
Write to Bob Tita at robert.tita@wsj.com
(END) Dow Jones Newswires
July 20, 2016 18:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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