Final Antidumping Rate In Washer Import Case Better, But 'Still Too High' Due To Calculations

WASHINGTON, Dec. 9, 2016 /PRNewswire/ -- Final figures released today by the U.S. Commerce Department related to its antidumping investigation of washing machines imported from China are much lower than the preliminary determination, but still too high, according to LG Electronics. In today's "final determination," the Commerce Department found antidumping margins of 32.12 percent for LG and 52.51 percent for Samsung.

LG's final 32 percent antidumping margin is dramatically lower than the 109 percent rate originally alleged in the Whirlpool Corporation petition that initiated this case. But, even though they are lower than Commerce's preliminary antidumping rates, LG's margin is still much higher than that required by law.

LG said the rate is the result of a wacky – and possibly illegal – margin calculation methodology adopted by the Commerce Department. For example, the values chosen by Commerce for some of the component parts were many times higher than the true market cost of the component parts.* This methodology artificially increased the antidumping margin by a large amount.

LG has advanced vigorous arguments to the U.S. International Trade Commission (ITC) that washing machines imported from China are not causing "material injury" to Whirlpool and other U.S. producers. LG Electronics USA executives testified Wednesday at the ITC's domestic injury hearing, and if the ITC ultimately renders a negative injury determination, the antidumping duties will be terminated.

LG's success in the home laundry segment in the United States has been the result of its world-class innovations and commitment to providing U.S. consumers with state-of-the-art washers that set the industry standard for efficiency, reliability, features and design. Regardless of the antidumping rate, LG washing machines are positioned as more premium and generally sold at higher prices than others in the market and higher than their actual production costs.

* Because China is considered a "non-market economy," the U.S. Commerce Department determines the market cost of each component part used in the production of a washing machine using values from a surrogate market economy country. Commerce is then supposed to add up these market values to derive a surrogate cost of production.  This surrogate cost of production is then compared to U.S. selling prices.

About LG Electronics USA
LG Electronics USA Inc., based in Englewood Cliffs, N.J., is the North American subsidiary of LG Electronics, Inc., a $49 billion global force and technology leader in home appliances, consumer electronics and mobile communications. LG Electronics, a proud 2016 ENERGY STAR Partner of the Year, sells a range of stylish and innovative home entertainment products, mobile phones, home appliances, commercial displays, air conditioning systems and solar energy solutions in the United States, all under LG's "Life's Good" marketing theme. www.lg.com.

Logo - http://photos.prnewswire.com/prnh/20160202/328865LOGO

SOURCE LG Electronics USA