WASHINGTON, March 19, 2012 /PRNewswire/ -- The U.S. Department of Commerce today found in favor of LG Electronics and will not issue a countervailing duty order against imports of refrigerators from Korea.
In a countervailing duty investigation brought by Whirlpool Corporation, the Commerce Department issued a "negative final determination" based on its finding that LG refrigerators are not illegally subsidized.
In the antidumping investigations, also brought by Whirlpool, LG Electronics USA (LGEUS) and its affiliates will aggressively contest today's Commerce Department "affirmative final determinations" covering imports of bottom mount refrigerator-freezers from Korea and Mexico. The Department of Commerce found that LGEUS and its affiliates LG Electronics, Inc. (LGE) and LG Electronics Monterrey, Mexico (LGEMM), sold bottom-mount refrigerator-freezers at dumped prices in the United States.
LGEUS, LGE and LGEMM strongly disagree with the Commerce Department's antidumping duty determinations, which are based on erroneous and inaccurate calculations. LG believes these findings will be reversed on appeal, according to Chris Jung, president, Home Appliances, LG Electronics USA.
Dumping exists if the prices to the U.S. market are lower than the prices in the comparison market. Based on a rarely used provision in the antidumping duty laws, the Department of Commerce erroneously compared U.S. prices of Mexican refrigerators to the prices in Korea for a highly specialized line of Korean refrigerators designed primarily to store kimchi, a Korean food specialty. These unusual comparisons highly inflated the antidumping duty margin in the Mexico case. Margins in the investigation of Korean imports were inflated by the Department's use of another comparison methodology (called "zeroing"), which has been held to violate World Trade Organization standards upon which the antidumping duty laws are based.
LGEUS, LGE, and LGEMM have worked hard for almost a year to provide the Commerce Department with extensive and accurate data required under the U.S. antidumping and countervailing duty laws. "The completeness and accuracy of the data that was submitted further established that LG refrigerators have not been illegally subsidized. We will continue to aggressively contest the antidumping duty findings through every means possible in order to obtain determinations that fully and accurately reflect LGEUS' pricing in the U.S. market," said Jung.
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 consumer electronics, home appliances and mobile communications. In the United States, LG Electronics sells a range of stylish and innovative home entertainment products, mobile phones, home appliances, commercial displays, air conditioning systems and solar energy solutions, all under LG's "Life's Good" marketing theme. For more information, please visit www.lg.com.
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 93,000 people working in over 120 operations around the world. With 2010 global sales of $ 48.2 billion, LG comprises four business units – Home Entertainment, Mobile Communications, Home Appliance, and Air Conditioning & Energy Solutions. LG is one of the world's leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators.
SOURCE LG Electronics USA, Inc.