The U.S. Commerce Department told Daewoo
Electronics Corp. to pay a 71 percent import duty on large, residential washing
machines made in South Korea, after the company didn’t respond to a probe of
government subsidies.
The agency announced a preliminary finding on 30
May after Whirlpool Corp. (WHR) of Benton Harbor, Michigan,
said in a Dec. 30 complaint that Seoul-based Daewoo, LG Electronics Inc.
(066570) and Samsung Electronics Co. (005930) of Suwon, South Korea, sell
washers in the U.S. for less than production costs.
The finding comes after Daewoo in March said it was
‘on track” to diversify distribution channels by supplying Wal-Mart Stores Inc.
as it targeted doubling North America home appliance sales to $150 million this
year. Samsung was ordered to pay a 1.2 percent duty, and LG Electronics 0.22
percent on the washing machines imported to the U.S. from South Korea,
according to the agency. All other companies would pay 1.2 percent.
Daewoo will discuss the matter with its U.S. unit
and decide how to respond before the final finding is announced, Gwon Dae Hoon,
a spokesman for the company, said today by phone.
The higher duty set for Daewoo reflects the
company’s refusal to respond to an investigation of South Korean subsidies for
the makers, which sell about $569 million worth of the machines a year in the
U.S., the agency said.
Samsung is “confident that once the full
investigation is concluded, the U.S. Department of Commerce will confirm that
Samsung is in compliance,” the company said by e-mail. “Samsung respects the
trade rules in the U.S. market.”
LG will fully cooperate until the final decision is
made, the company said on 31 May in an e-mailed response to a News query.
Whirlpool is pleased “given the proven record that
South Korean appliance producers have benefitted from their government’s
subsidies that violate trade law,” Kristine Vernier,
a spokeswoman, said in a statement.
The agency’s decision sets countervailing duties,
which are imposed to offset government subsidies. The Commerce Department
hasn’t issued results of its investigation into Whirlpool’s anti-dumping
complaint against imports from Korea and Mexico. That decision is scheduled
next month, according to a statement.
The Commerce Department and the U.S. International
Trade Commission, an independent agency, are scheduled to make their final
determinations on the trade disputes later this year.