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Final Determination - Certain Household Appliances

OTTAWA, June 30, 2000

File No. 4246-106
Case No. AD/1235

STATEMENT OF REASONS

Concerning the making of a final determination of dumping with respect to

CERTAIN TOP-MOUNT ELECTRIC REFRIGERATORS, ELECTRIC HOUSEHOLD DISHWASHERS, AND GAS OR ELECTRIC LAUNDRY DRYERS, ORIGINATING IN OR EXPORTED FROM THE UNITED STATES OF AMERICA AND PRODUCED BY, OR ON BEHALF OF, WHITE CONSOLIDATED INDUSTRIES, INC. AND WHIRLPOOL CORPORATION, THEIR RESPECTIVE AFFILIATES, SUCCESSORS AND ASSIGNS

DECISION

Pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the Commissioner of Customs and Revenue, has today made a final determination of dumping with respect to

top-mount electric refrigerators, in sizes greater than 14.5 cubic feet (410.59 litres) and less than 22 cubic feet (622.97 litres), electric household dishwashers, built-in or portable models, greater than 18 inches (45.72 centimetres) in width, and gas or electric laundry dryers, originating in or exported from the United States of America and produced by, or on behalf of, White Consolidated Industries, Inc. and Whirlpool Corporation, their respective affiliates, successors and assigns.

This Statement of Reasons is also available in French.
Cet énoncé des motifs est également disponible en français.

Summary

On November 30, 1999, the Commissioner of Customs and Revenue (Commissioner) initiated an investigation respecting the alleged injurious dumping into Canada of certain top-mount electric refrigerators, electric household dishwashers, and gas or electric laundry dryers, originating in or exported from the United States of America and produced by, or on behalf of, White Consolidated Industries, Inc. and Whirlpool Corporation, their respective affiliates, successors and assigns.

The investigation was initiated in response to a complaint filed by Camco Inc. (Camco) of Mississauga, Ontario. On February 23, 2000, the Commissioner extended the time period for the completion of the preliminary investigation up to 135 days. A preliminary determination of dumping with respect to the subject goods was made on April 3, 2000.

The investigation continued after the preliminary determination and the Commissioner is now satisfied that the margins of dumping are not insignificant and that the volumes of dumped goods are not negligible. Accordingly, the Commissioner has made a final determination of dumping in accordance with paragraph 41(1)(a) of the Special Import Measures Act (SIMA).

Interested Parties

Complainant

The complainant, Camco, is the only Canadian manufacturer of refrigerators, dishwashers and dryers like those under investigation. The corporate headquarters and manufacturing facilities of the complainant are located at 5800 Keaton Crescent, Mississauga, Ontario L5R 3K2.

Exporters

At the time of initiation, the Canada Customs and Revenue Agency (CCRA), contacted White Consolidates Industries, Inc. (WCI) and Whirlpool Corporation (Whirlpool). Following the initiation of the investigation, the CCRA contacted an additional exporter, Amana Company (Amana), requesting information on goods manufactured by WCI and exported to Canada by Amana during the period of investigation. The names and addresses of these three exporters are listed in Appendix 1.

Importers

The CCRA contacted the two importers that are wholly-owned subsidiaries of the two United States exporters, Frigidaire Home Products Division of WCI Canada Inc.(Frigidaire) and Inglis Limited (Inglis), requesting information for the period of investigation. Subsequently, Camco was identified as an importer of subject dryers manufactured by both WCI and Whirlpool. The names and addresses of these three importers are listed in Appendix 2.

At the time of the preliminary determination of dumping, Amana was identified as an importer of dishwashers manufactured by WCI, however, Amana has since provided the names of its customers in Canada. These customers are the importers of the subject dishwashers and the company names are included in Appendix 2.

Background

On October 29, 1999, Camco filed a complaint alleging the injurious dumping of certain refrigerators, dishwashers and laundry dryers. On November 19, 1999, Camco was informed that its complaint was properly documented and, at the same time, the Government of the United States of America was notified of the filing of the complaint. A dumping investigation was subsequently initiated on November 30, 1999.

After the investigation was initiated, legal counsel for WCI referred to the Canadian International Trade Tribunal (Tribunal) the question of whether evidence before the Ccommissioner disclosed a reasonable indication that the dumping of the subject goods had caused injury or retardation or was threatening to cause material injury to the domestic industry. On January 24, 2000, the Tribunal found that the evidence disclosed a reasonable indication that the dumping of the subject goods from the named exporters had caused, or was threatening to cause, material injury to the domestic industry.

On February 23, 2000, pursuant to paragraph 39(1)(a) of SIMA, the Commissioner extended the time period for completing the preliminary investigation up to 135 days. The extension was necessary due to the variety and volume of goods involved in the investigation.

On April 3, 2000, the Commissioner made a preliminary determination of dumping with respect to the subject goods pursuant to subsection 38(1) of SIMA.

On April 7, 2000, Whirlpool and Inglis filed an application with the Federal Court for judicial review of the preliminary determination of dumping. The applicants are seeking an order quashing or setting aside the preliminary determination of dumping, or an order directing the Commissioner to commence a new investigation against all producers in the United States, to initiate separate investigations for the three producers and to exclude all products that are not produced in Canada. To date, no decision has been made on this application.

On April 28, 2000, Whirlpool and Inglis served a Notice of Motion for an interim order to stay the preliminary determination of dumping and to direct that no provisional duties be collected, pending the hearing of the judicial review. This motion was dismissed by the Federal Court on June 20, 2000, on the basis that the application did not raise a serious issue, and therefore, did not satisfy the test established by the jurisprudence for a stay.

Product Definition

For the purpose of this investigation the subject goods are defined as:

"Top-mount electric refrigerators, in sizes greater than 14.5 cubic feet (410.59 litres) and less than 22 cubic feet (622.97 litres), electric household dishwashers, built-in or portable, greater than 18 inches (45.72 centimetres) in width, and gas or electric laundry dryers, originating in or exported from the United States of America and produced by, or on behalf of, White Consolidated Industries, Inc. and Whirlpool Corporation, their respective affiliates, successors and assigns."

Product Description

The refrigerators which are the subject of this complaint are commonly referred to as 16 cubic foot (453.07 litre) and 18 cubic foot (509.70 litre) refrigerators with top-mounted freezer compartments. The product definition covers goods, which due to their capacities and dimensions, are substitutable for 16 cubic foot and 18 cubic foot models.

Subject dishwashers are electric dishwashers, built-in or portable, greater than 18 inches in width, excluding counter top models.

The dryers under investigation are gas or electric dryers, including coin-operated and stackable machines. Laundry centres, which are combined washer/dryer units, are not subject to the investigation.

Additional Product Information

The products manufactured by the complainant and by the named exporters are sold under brand names and private label names.

The products manufactured by the complainant, Camco, are sold under the brand names GE, Hotpoint, Moffat, McClary and Concept II, as well as under private label names including Kenmore, Galaxy and Beaumark. Camco produces and sells top-mount refrigerators under each of these brand names with capacities of 15.5 cubic feet (438.91 litres), referred to as 16 cubic foot refrigerators, and 17.7 cubic feet (501.21 litres), referred to as 18 cubic foot refrigerators. The company also manufactures 12.1 cubic foot (342.63 litre) top-mount refrigerators, however, these goods are outside the scope of this complaint, as they are in a different market segment than 16 cubic foot and 18 cubic foot models. Camco also manufactures 21.9 cubic foot (620.14 litre) "built-in-style" top-mount, and 18 cubic foot bottom-mount refrigerators. Built-in style and bottom-mount refrigerators are excluded from this investigation.

Electric household dishwashers, built-in and portable, greater than 18 inches in width are also produced and sold by Camco under the foregoing private label and brand names.

Similarly, gas and electric laundry dryers, including stackable dryers, are manufactured by Camco, from 3.6 cubic feet to 7 cubic feet capacity and sold under the foregoing private label and brand names.

WCI, through its wholly-owned subsidiary, Frigidaire, sells subject and non-subject goods in Canada under the brand names Frigidaire, Frigidaire Gallery, White-Westinghouse, Kelvinator, Tappan, Gibson, General and Crosley, as well as under private label names, including Kenmore, Coldspot and Beaumark. WCI distributes subject refrigerators in Canada having capacities ranging from 15 cubic feet (424.75 litres) to 22 cubic feet, dishwashers in widths of 23 inches (58.42 centimetres) and 25 inches (63.5 centimetres), and dryers having a capacity of 5.7 cubic feet (161.41 litres). WCI produces a dishwasher on behalf of Amana, which is exported to Canada by Amana. WCI also produces certain specialty laundry dryers on behalf of Camco, the complainant, which are exported to Canada by WCI, but sold to Camco by Frigidaire.

Whirlpool, through its wholly-owned Canadian subsidiary, Inglis Limited, sells subject and non-subject goods in Canada under the brand names Whirlpool, Inglis, Kitchen Aid, Roper and Admiral, as well as under private label names, including Kenmore, Capri and Galaxy. Whirlpool distributes refrigerators in Canada having capacities ranging from 16 cubic feet to 22 cubic feet, dishwashers in widths ranging from 23 inches (58.42 centimetres) to 24 inches (60.96 centimetres), and dryers in capacities ranging from 3.4 cubic feet (96.28 litres) to 7 cubic feet (198.22 litres). Whirlpool also produces dryers on behalf of Camco, the complainant, which are exported to Canada by Whirlpool.

Production Process

Details and information concerning the production process of the subject appliances were provided in the Statement of Reasons issued for the initiation of the investigation. This document is available on request or on the CCRA Web site at the following URL:

www.cbsa-asfc.gc.ca/sima-lmsi/i-e/ad1235/ad1235i-eng.html

Classification of Imports

Imports of the subject goods are classified in Schedule I of the Customs Tariff under the following Harmonized System classification numbers:

Refrigerators:

8418.10.90.21

• electric, having a refrigeration capacity, by volume, of 381 litres (13.46 cu. ft.) but not exceeding 524 litres (18.51 cu. ft.)

8418.10.90.22

• electric, having a capacity, by volume, in excess of 524 litres (18.51 cu. ft.)

Dishwashers:

8422.11.90.10

• portable electric dishwashing machines

8422.11.90.90

• other

Dryers:

8451.21.00.11

• drying machines, gas fired, each of a dry linen capacity not exceeding 10 kg, coin-operated

8451.21.00.19

• drying machines, gas fired, each of a dry linen capacity not exceeding 10 kg, other

8451.21.00.91

• drying machines, other, each of a dry linen capacity not exceeding 10 kg, coin-operated

8451.21.00.99

• drying machines, other, each of a dry linen capacity not exceeding 10 kg, other

Canadian Industry

There have been no changes in the structure of the Canadian industry since the initiation of this investigation. Camco remains the only Canadian manufacturer of the top mounted refrigerators in the noted size range, household dishwashers and gas and electric laundry dryers.

Canadian Market

Demand for home appliances, including refrigerators, dishwashers and dryers is cyclical, and long term growth is slow but steady.

The channels of distribution for the subject goods consists of three main market segments, the retail dealer, the builder market and the private label. The retail dealer segment consists of single and multiple chain retail outlets which sell the subject goods, other appliances, and various household goods, directly to end-users. The builder segment consists of single and multi-family home builders, manufactured housing (pre-fabricated), property managers, and several small builder segments. Appliance manufacturers, including the complainant, sell directly to these customers as well as to distributors. The private label segment of the market involves products that are specifically manufactured for retailers and sold under the retailers' brand names.

Detailed information on the size of the Canadian market and the shares held by the parties is confidential due to the limited number of companies involved in the market. Therefore, the Canadian market statistics, detailed below, are based on publicly available industry sales data from the Canadian Appliance Manufacturers Association (CAMA).

Refrigerators

Since the majority of new or existing homes in Canada have kitchen cabinet configurations that are designed to accommodate refrigerators in capacities of 18 cubic feet or less, 16 cubic foot and 18 cubic foot refrigerators are considered to be the core of the refrigeration product market in Canada. However, manufacturers are capable of producing refrigerators with a capacity greater than 18 cubic feet but smaller than 22 cubic feet which are made to fit the same kitchen space, and thus compete in the same market.

Sales data for 16 and 18 cubic foot refrigerators show that the demand for these models totalled 452,086 units in 1999, representing an increase of approximately 2 per cent over sales of 444,128 units in 1998. It is estimated that products in this size range accounted for approximately two-thirds of all refrigerators sold in Canada in 1999.

Dishwashers

CAMA reports that the demand in Canada for dishwashers has expanded significantly since 1995. In 1998, sales of dishwashers in the Canadian market totalled 413,575 units. CAMA reports sales of 462,609 units in 1999, representing an increase of almost 12 per cent over the past year.

Dryers

As with Canadian demand for refrigerators and dishwashers, the market in Canada for dryers has been expanding since 1995. As noted in the CAMA statistics, Canadian sales of dryers in the past year increased by 8 per cent, from 463,603 units in 1998, to 500,407 units in 1999.

The Investigation

The dumping investigation covered all subject goods from the United States of America, shipped during the period of investigation from October 1, 1998 to September 30, 1999. At the time of the initiation of the investigation, information to determine the normal values and export prices of the subject goods was requested from WCI and Whirlpool, as the exporters of the subject goods. Following the initiation of the investigation, the CCRA contacted an additional exporter, Amana, requesting information on goods manufactured by WCI and exported to Canada by Amana.

Information concerning imports of the subject goods was also requested from the importers, Frigidaire and Inglis. Subsequent to the initiation, information concerning imports of subject goods was also requested from Camco, who is the complainant in this investigation.

Responses to the Requests for Information were received from the two exporters named in the complaint, WCI and Whirlpool, and the two importers, Frigidaire and Inglis. Amana advised the CCRA that they would not be providing the CCRA with a response to the Request for Information for the preliminary determination. Following the preliminary determination of dumping, Amana provided an incomplete response to the Request for Information. Camco's response to the Request for Information was received too late to be given consideration until after the preliminary determination of dumping.

On-site verification visits were conducted prior to the preliminary determination at the premises of the two importers, Frigidaire and Inglis, both in Mississauga, Ontario. Verification visits were also made at the premises of two exporters, Whirlpool in Benton Harbor, Michigan, and the Frigidaire Home Products Division of WCI in Augusta, Georgia.

The CCRA held separate disclosure meetings in Ottawa with Whirlpool and Inglis and WCI and Frigidaire after the preliminary determinationdecision to explain the calculations, including adjustments, and to discuss the next phase of the investigation. No additional on-site verification visits were conducted between the preliminary and final determinations of dumping.

Normal Value, Export Price and Margin of Dumping

The primary method for determining normal value under SIMA is on the basis of the exporter's domestic sales. In the absence of domestic sales of like goods to more than one unrelated customer, normal values are determined on the basis of the sum of the cost of producing and selling the goods, plus an amount for profit.

The export price of the goods shipped to Canada is generally the exporter's selling price to the importer in Canada, less all costs, charges and expenses arising from the exportation of the goods. In certain circumstances, where there is no selling price or the sale is between associated parties, the export price may be determined on the basis of the selling price in Canada less an amount to cover the importer's profit and costs associated with the importation and sale of the goods in Canada and the costs, charges and expenses arising from the exportation of the goods.

The margin of dumping is the amount by which the normal value of the goods exceeds the export price.

Normal value, export price and margin of dumping calculations for the subject goods are discussed below, by exporter. The margins of dumping in the following section are expressed as percentages of normal value for each product category.

Results of the Investigation By Exporter

White Consolidated Industries, Inc.

White Consolidated Industries, Inc., a United States corporation, is a wholly-owned subsidiary of White Consolidated Holdings, Inc. White Consolidated Holdings, Inc. is a wholly-owned subsidiary of AB Electrolux, a public company whose shares are traded on the Stockholm Stock Exchange and the NASDAQ (in the form of American depository receipts). AB Electrolux, the world's largest maker of household appliances, has owned WCI since 1986.

WCI is involved in the manufacture, sale and distribution of major appliances, home comfort products, appliance components, outdoor power equipment, commercial laundry equipment, and markets its products to wholesalers, manufacturers, builders, dealers and private-label customers located throughout the world. WCI has eight major operating divisions, namely Husquavarna, Forest & Garden, Tecfor, Dometic, The Eureka Company, Beam, the ELX Group and Frigidaire Home Products.

The subject goods are sold through the Frigidaire Home Products Division of WCI. All of the Frigidaire products, except certain cooking products (e.g. ranges, built-in ovens, cook-tops), are manufactured in the United States of America. Those cooking products not manufactured in the United States of America are produced at a facility in L'Assomption, Quebec, by WCI Canada Inc. The refrigerators subject to this investigation are produced at a facility in Greenville, Michigan, and Anderson, South Carolina. Dryers subject to the investigation are produced at a facility in Webster City, Iowa, and dishwashers are produced at a facility in Kinston, North Carolina.

WCI provided the CCRA with a complete submission.

a) Normal Value

WCI sold subject goods in both the domestic market and to their related importer in Canada, Frigidaire, during the period of investigation. Frigidaire acts as a national distributor for the goods in Canada. In the United States, WCI has the following primary channels of distribution for the subject goods:

• National account retail dealers who sell on a national basis;
• Larger regional retail dealers which include large customers with a regional focus;
• Smaller retail dealers including those purchasing in buying groups and independent dealers. This channel would include both buying groups that purchase goods from WCI on behalf of their members and members of buying groups that buy direct;
• Gibson distributors whose ultimate customers include small independent dealers;
• Original equipment manufacturers (OEM), such as General Electric and Amana Company; and,
• Builders.

Based on the WCI submission, normal values were determined using section 15 of SIMA, where there were profitable sales of like goods and sales to more than one domestic customer. The normal values were based on the weighted average selling price of the like goods sold to larger volume customers in the United States of America.

Where sales of like goods were found not to be profitable or where sales of like goods were to only one customer, normal values were determined, using paragraph 19(b) of SIMA, based on the production cost of the subject goods, plus reasonable amounts for administrative, selling and all other costs and an amount for profit pursuant to regulation 11, subparagraph (1)(b)(ii) of the Special Import Measures Regulations (SIMR). Regulation 13 of the SIMR was applied when determining the profit to take into account the adjustments allowed on the prices of like goods of the same general category.

Where applicable, the normal values determined under section 15 of SIMA were adjusted in accordance with the SIMR, as follows:

• a regulation 3 quantity adjustment was allowed when quantity discounts were generally granted in the domestic market and the importer would have qualified if the sale had occurred in the United States of America;
• a regulation 6 adjustment was allowed when cash discounts, rebates and deferred discounts were generally granted in the domestic market and the importer would have qualified if the sale had occurred in the United States of America;
• a regulation 7 freight adjustment was allowed for domestic sales that were sold on a delivered or freight included basis; and
• a regulation 9 trade level adjustment was made to take into account advertising, warehousing and sales' staff expenses incurred on domestic sales which are at a trade level nearest or subsequent to that of the importer.

(b) Export Price

Since WCI exported subject goods to Frigidaire, a related company, the CCRA tested the reliability of the export prices calculated pursuant to section 24 of SIMA. The goods were generally sold to Frigidaire on an ex-factory basis. Export prices under paragraph 25(1)(c) were calculated on the basis of the importer's resale prices in Canada less all costs, charges and expenses incurred by the exporter in preparing, shipping and exporting the goods, all general, selling and administrative costs incurred by the importer and an amount for profit.

A comparison of export prices calculated pursuant to paragraph 25(1)(c) of SIMA, with the section 24 export prices, revealed that the latter prices were generally unreliable. Therefore, export prices were determined using the methodology in paragraph 25(1)(c) of SIMA.

(c) Margins of Dumping

i) Refrigerators

All subject refrigerators exported by WCI to Canada during the period of investigation were reviewed. Of these goods, 63.6 per cent were found to be dumped. The margins of dumping ranged from 0.1 to 53.3 per cent. The weighted average margin of dumping was 5.5 per cent.

ii) Dishwashers

All subject dishwashers exported by WCI to Canada during the period of investigation were reviewed. Of these goods, 83.0 per cent were found to be dumped. The margins of dumping ranged from 0.1 to 35.8 per cent. The weighted average margin of dumping was13.7 per cent.

iii) Dryers

All subject dryers exported by WCI to Canada during the period of investigation were reviewed. Of these goods, 99.8 per cent were found to be dumped. The margins of dumping ranged from 0.5 to 34.81.6 per cent. The weighted average margin of dumping was 13.3 per cent.

iv) All Products

Of all subject refrigerators, dishwashers and dryers exported to Canada by WCI during the period of investigation, 76.5 per cent of the units were found to be dumped. The overall weighted average margin of dumping was 8.6 per cent.

Normal values established at the preliminary determination of dumping were revised for the final determination following disclosure meetings with the exporter. The margins of dumping calculated for subject goods at the time of the final determination of dumping are lower than the margins for the preliminary determination of dumping due to subsequent revisions in costs, selling expenses, exchange rates and profit margins.

Whirlpool Corporation

Whirlpool is a public corporation listed on the New York stock exchange. The company is headquartered in Benton Harbor, Michigan. Whirlpool manufactures and markets clothes washers and dryers, refrigerators, freezers, dishwashers, ranges, compactors, room air conditioners and microwaves, together with portable appliances such as stand mixers, hand mixers and blenders. The refrigerators subject to this investigation are produced in Evansville, Indiana. Dryers are produced in Marion, Ohio, and dishwashers are produced in Findlay, Ohio.

The company provided a complete response to the Request for Information.

a) Normal Value

Whirlpool sold subject goods in both the domestic market and to their related importer, Inglis in Canada during the period of investigation. Inglis acts as a national distributor for the goods in Canada. In the United States of America, Whirlpool has the following primary channels of distribution for the subject goods:

• retail customers, including national accounts, regional accounts and smaller accounts;
• rental customers, who lease the products they purchase to end-use consumers;
• associate contract distributors, who sell to customers including builders, contractors, remodelers, apartment buildings, hotels, etc.;
• modular housing customers who buy appliances for installation into manufactured homes; and,
• OEM, such as General Electric and Camco.

Based on Whirlpool's submission, normal values were determined using section 15 of SIMA where there were profitable sales of like goods to more than one domestic customer. The normal values were based on the weighted average selling price of the like goods sold to larger volume customers in the United States of America.

Where sales of like goods were found not to be profitable or where sales of like goods were to only one customer, normal values were determined, using paragraph 19(b) of SIMA, based on the production cost of the subject goods, plus reasonable amounts for administrative, selling and all other costs and an amount for profit pursuant to regulation 11, subparagraph (1)(b)(ii) of the SIMR. Regulation 13 of the SIMR was applied when determining the profit to take into account the adjustments allowed on the prices of like goods of the same general category.

Where applicable, the normal values determined under section 15 of SIMA were adjusted in accordance with the SIMR, as follows:

• a regulation 3 quantity adjustment was allowed when quantity discounts were generally granted in the domestic market and the importer would have qualified if the sale had occurred in the United States of America;
• a regulation 6 adjustment was allowed when cash discounts, rebates and deferred discounts were generally granted in the domestic market and the importer would have qualified if the sale had occurred in the United States of America;
• a regulation 7 freight adjustment was allowed for domestic sales that were sold on a delivered or freight included basis; and
• a regulation 9 trade level adjustment was made to take into account advertising, warehousing and sales' staff expenses incurred on domestic sales which are at a trade level nearest or subsequent to that of the importer.

(b) Export Price

Since Whirlpool exported subject goods to Inglis, a related company, the CCRA tested the reliability of the export prices calculated pursuant to section 24 of SIMA. The goods were generally sold to Inglis on an ex-factory basis. Export prices under paragraph 25(1)(c) were calculated on the basis of the importer's resale prices in Canada less all costs, charges and expenses incurred by the exporter in preparing, shipping and exporting the goods, all general, selling and administrative costs incurred by the importer and an amount for profit.

A comparison of export prices calculated pursuant to paragraph 25(1)(c) of SIMA, with the section 24 export prices, revealed that the latter prices were generally unreliable, with the exception of a significant portion of Inglis' dishwasher and dryer sales. Export prices for these dishwasher and dryer sales were, therefore, determined in accordance with section 24 of SIMA. All other export prices were determined using the methodology in paragraph 25(1)(c) of SIMA.

(c) Margins of Dumping - by Product

i) Refrigerators

All subject refrigerators exported by Whirlpool to Canada during the period of investigation were reviewed. Of these goods, 99.9 per cent were found to be dumped. The margins of dumping ranged from 6.2 to 23.3 per cent. The weighted average margin of dumping was 16.3 per cent.

ii) Dishwashers

All subject dishwashers exported by Whirlpool to Canada during the period of investigation were reviewed. Of these goods, 90.3 per cent were found to be dumped. The margins of dumping ranged from 0.2 to 34.0 per cent. The weighted average margin of dumping was 13.0 per cent.

iii) Dryers

All subject dryers exported by Whirlpool to Canada during the period of investigation were reviewed. Of these goods, 96.2 per cent were found to be dumped. The margins of dumping ranged from 1.2 to 39.0 per cent. The weighted average margin of dumping was 15.9 per cent.

iv) All Products

Of all subject refrigerators, dishwashers and dryers exported to Canada by Whirlpool during the period of investigation, 94.8 per cent of the units were found to be dumped. The overall weighted average margin of dumping was 15.0 per cent.

Amana Company

Amana purchases certain dishwashers, produced by WCI in the United States of America, which are exported to Canada. Amana did not provide a complete response to the CCRA's Request for Information prior to the preliminary determination of dumping. Amana provided a response following the preliminary determination of dumping, however, the information was insufficient for determining normal values.

Where an exporter does not provide a complete response to the Request for Information, normal values are determined pursuant to a ministerial specification under subsection 29(1) of SIMA. These normal values are based on the highest margin of dumping found in the investigation for a cooperative exporter. In this investigation, three distinct classes of products are being examined. As Amana shipped subject dishwashers to Canada, the normal values for these goods were based on the highest margin of dumping for dishwashers found in the investigation for a cooperative exporter. The margin of dumping for shipments of subject dishwashers exported to Canada by Amana is 35.8 per cent, based on information provided by WCI.

Summary of Results

When making a final determination of dumping, the Commissioner must be satisfied that the margins of dumping are not insignificant and that the actual or potential volume of dumped goods is not negligible.

If the margin of dumping is less than 2 per cent of the export price of the goods, the margin of dumping is considered to be insignificant. Of all refrigerators subject to this investigation, exported to Canada during the period of investigation, 76.9 per cent of the units were found to be dumped. The overall weighted average margin of dumping for all refrigerators was 10.13 per cent of export price. Of all dishwashers subject to this investigation, exported to Canada during the period of investigation, 87.9 per cent of the units were found to be dumped. The overall weighted average margin of dumping for all dishwashers was 15.23 per cent of export price. Of all dryers subject to this investigation, exported to Canada during the period of investigation, 97.0 per cent of the units were found to be dumped. The overall weighted average margin of dumping for all dryers was 17.77 per cent of export price.

If the volume of dumped goods of a country is less than 3 per cent of the total volume of the like goods that are released into Canada from all countries, the volume is considered to be negligible. A review of subject imports for the period of investigation was carried out by the CCRA. For the purposes of making the final decision, the total volume of all dumped refrigerators exceeds 23 per cent of the total volume of all refrigerators, including a large volume of non-subject refrigerator models, that were released into Canada from all countries. The total volume of all dumped dishwashers exceeds 63 per cent of the total volume of the like goods that were released into Canada from all countries. The total volume of all dumped dryers exceeds 46 per cent of the total volume of the like goods that were released into Canada from all countries.

In view of the facts stated above, the Commissioner is satisfied that the margins of dumping are not insignificant and the volume of dumped goods is not negligible.

A summary of the margins of dumping for all exporters of subject goods is contained in Appendix 3. The overall weighted average margin of dumping of the dumped goods was 12.0 per cent, expressed as a percentage of normal value, or 13.6 per cent, expressed as a percentage of export price.

Decision

On this date, pursuant to paragraph 41(1)(a) of SIMA, the Commissioner has made a final determination of dumping with respect to top-mount electric refrigerators, in sizes greater than 14.5 cubic feet (410.59 litres) and less than 22 cubic feet (622.97 litres), electric household dishwashers, built-in or portable models, greater than 18 inches (45.72 centimetres) in width, and gas or electric laundry dryers, originating in or exported from the United States of America and produced by, or on behalf of, White Consolidated Industries, Inc. and Whirlpool Corporation, their respective affiliates, successors and assigns.

In making this decision, the Commissioner is satisfied that the subject goods have been dumped, that the margins of dumping are not insignificant and that the volumes of dumped goods are not negligible.

Future Action

The Canadian International Trade Tribunal

The Canadian International Trade Tribunal's inquiry concerning the question of injury to production in Canada is continuing. The Tribunal will issue its finding by August 1, 2000.

Subject goods imported during the provisional period will continue to be assessed provisional duty as determined at the time of the preliminary determination of dumping. The provisional period began on April 3, 2000, the date of the preliminary determination of dumping, and will end on the date the Tribunal issues its finding. For further details on the application of provisional duty, refer to the Statement of Reasons issued at the time of the preliminary determination of dumping which is available on request or on the CCRA Web site at:

www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html.

If the Tribunal finds that the dumped goods have not caused injury and do not threaten to cause injury, all proceedings relating to this investigation will be terminated. In such a case, all provisional duty or security posted by importers will be returned and future imports will not be subject to anti-dumping duty.

If the Tribunal finds that the dumped goods have caused injury, the CCRA will finalize the anti-dumping duty payable on subject goods released from customs' possession during the provisional period pursuant to section 55 of SIMA. Imports released from customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

If the Tribunal finds that the dumped goods threaten to cause injury, all provisional duty paid or security posted by importers will be returned. However, imports released from customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

Future Administration

If the Tribunal finds that the subject goods have caused injury, the CCRA may re-investigate the subject goods originating in or exported from the United States to finalize the amounts of anti-dumping duties payable on shipments released from customs' possession during the provisional period from April 3, 2000, to the date of the Tribunal decision on injury, pursuant to section 55 of SIMA. Requests for Information would be forwarded to the parties concerned. Those exporters who provide complete responses and cooperate in the verification of the required information would receive specific normal values at the conclusion of the re-investigation.

For shipments of subject goods released during the provisional period, the amount of anti-dumping duties payable would be based on the lesser of the margin of dumping found at the preliminary determination and the margin of dumping found at the conclusion of the re-investigation. Where appropriate, any excess provisional duties collected during the provisional period would be refunded.

For the final determination of dumping, specific normal values for the subject goods have been provided to the co-operating exporters, based on the data and circumstances that existed during the period of investigation. Should the Tribunal make a finding of injury, these values will come into effect on the day after the injury finding.

Normal values for new models, or for subject goods exported by WCI and Whirlpool to importers other than Frigidaire and Inglis, will be based on the weighted average margins of dumping for each product category, expressed as a percentage of the export price of the goods. Normal values for subject goods exported by companies other than WCI and Whirlpool will be based on the highest margins of dumping calculated for each product category, expressed as a percentage of the export price of the goods The percentage rates of anti-dumping duty are outlined in Appendix 3.

Normal values for new models, produced by, or on behalf of, WCI or Whirlpool, and for which the exporter has not been required to provide information, will be based on these companies' respective weighted average margins of dumping for each product category, expressed as a percentage of the export price of the goods. At any time, where an exporter is required to provide information on any model and fails to provide a complete response, the normal value of that model and any other model released on or after the date that the information was requested will be based on the highest margins of dumping calculated for each product category, expressed as a percentage of the export price of the goods. The percentage rates of anti-dumping duty are outlined in Appendix 3.

Federal Court or Binational Panel Review

Grounds For Request

The grounds for requesting a review by either the Federal Court of Appeal or a binational panel of a final determination decision made pursuant to paragraph 41(1)(a) of SIMA are the same. Specifically, a request or application may be made only on the grounds that the Commissioner, in making the final determination:

• acted without jurisdiction, acted beyond the jurisdiction of the Commissioner or refused to exercise that jurisdiction;
• failed to observe a principle of natural justice, procedural fairness or other procedure that the Commissioner was required by law to observe;
• erred in law in making a decision, whether or not the error appears on the face of the record;
• based a decision on an erroneous finding of fact that the Commissioner made in a perverse or capricious manner or without regard for the material before the Commissioner;
• acted, or failed to act, by reason of fraud or perjured evidence; or
• acted in any other way that was contrary to law.

Procedures For Making A Request

A request under section 77.011 of SIMA for a binational panel review of a final determination of dumping must be made to the Canadian Secretary of the NAFTA Secretariat no later than 30 days after the date on which notice of the final determination is published in the Canada Gazette. A request for binational panel review may only be made in respect of that part of the final determination that applies to goods of a NAFTA country.

Further information on requesting a binational panel review may be obtained by contacting the Canadian Secretary of the NAFTA Secretariat by telephone at (613) 992-9388, by fax at (613) 992-9392, or at the following address:

NAFTA Secretariat
Canadian Section
Royal Bank Centre
Suite 705, 90 Sparks Street
Ottawa, Ontario K1P 5B4
Canada

Alternatively, an application may be made, pursuant to section 96.1 of SIMA, to the Federal Court of Appeal to review and set aside the Commissioner's decision.

SIMA allows for judicial review of a final determination decision by the Federal Court of Appeal as it applies to goods of a NAFTA country only if no binational panel review is requested. Section 77.012 of SIMA states that an application for judicial review may not be made before the expiration of the 30-day time period for requesting a binational panel review. If a binational panel review is not requested, parties wishing to appeal to the Federal Court have a further 10 days to submit their application.

Any person wishing to make an application to the Federal Court of Appeal in respect of a decision that applies to goods of a NAFTA country must, within 20 days following the publication of the final determination in the Canada Gazette, publish a notice to that effect in the Canada Gazette and serve a Notice of Intent to Commence Judicial Review on all persons listed on the CCRA's service list, to the Canadian Secretary at the address noted above and the American Secretary at the following address:

NAFTA Secretariat
United States Section
Room 2061
Department of Commerce
Washington, D.C.
U.S.A. 20230

Telephone: (202) 474-5438
Fax: (202) 474-0148

Should a panel review under NAFTA be requested, any other person affected by the Commissioner's final determination of dumping as it applies to goods of a NAFTA country may participate in the panel review. To appear before a panel, one must first file a Notice of Appearance with the Canadian Secretary.

Additional information regarding the content of the Notice of Intent to Commence Judicial Review and the Notice of Appearance may be obtained from the Canadian Secretary at the address previously noted.

PUBLICATION

Notice of this final determination of dumping is being published in the Canada Gazette pursuant to paragraph 41(3)(a) of SIMA.

INFORMATION

This Statement of Reasons has been provided to persons directly interested in these proceedings. or from the Web site:

www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html.

A free copy may be obtained upon request by writing to:

Anti-dumping and Countervailing Directorate,
Canada Customs and Revenue Agency,
191 Laurier Avenue West,
Ottawa, Ontario K1A 0L5,
Canada.

For further information, please contact the following officers:

Officer	Telephone Number	E-Mail Address
Andrew Bradley	[613] 954-1641	andrew.bradley@ccra-adrc.gc.ca
Karen Humphries	[613] 954-7176	Karen.Humphries@cbsa-asfc.gc.ca
Gilbert Huneault	[613] 954-7376	gilbert.huneault@ccra-adrc.gc.ca
Glen Robinson	[613] 954-7346	glen.robinson@ccra-adrc.gc.ca

These officers can also be reached by fax at [613] 954-2510.

R.A. Séguin
A/Director General
Anti-dumping and Countervailing Directorate

 

APPENDIX 1

EXPORTERS

White Consolidated Industries, Inc.
18013 Cleveland Parkway
P.O. Box 35920
Cleveland, Ohio
U.S.A. 44135-0920

Whirlpool Corporation
2000 North M-63
Benton Harbor, Michigan
U.S.A. 49022-2692

Amana Company
2800-220^th Trail
Amana, Iowa
U.S.A. 52204

APPENDIX 2

IMPORTERS

Frigidaire Home Products
Division of WCI Canada Inc.
7075 Ordan Drive
Mississauga, Ontario
L5T 1K6

Inglis Limited
1901 Minnesota Court
Mississauga, Ontario
L5N 3A7

Camco Inc.
5800 Keaton Crescent
Mississauga, Ontario
L5R 3K2

Canwest
12185 86^th. Ave.
Surrey, B.C.
V3W 3H8

Energy Saving Appliances
390 Tapscott Rd., Unit 1
Scarborough, Ontario
M1B 2Y9

Amiel
1645, Autoroute Laval
Laval, Quebec
H7L 3W3

APPENDIX 3

MARGINS OF DUMPING BY EXPORTER FOR REFRIGERATORS, DISHWASHERS, LAUNDRY DRYERS

Exporter and Product	Quantity of Goods Dumped	Margin of Dumping Range1	Weighted Average Margin of Dumping2	Anti-dumping Duty Payable3
White Consolidated Industries, Inc., Frigidaire Home Products Division
Refrigerators	63.6%	0.05 - 53.3%	5.5%	5.9%
Dishwashers	83.0%	0.12 - 35.8%	13.7%	15.9%
Dryers	99.8%	0.52 - 34.8%	13.3%	15.3%
Total WCI	76.5%		8.6%
Whirlpool Corporation
Refrigerators	99.9%	5.4 - 23.3%	16.3%	19.5%
Dishwashers	90.3%	0.2 - 34.0%	13.0%	14.9%
Dryers	96.2%	1.2 - 39.0%	15.9%	18.9%
Total Whirlpool	94.87%		15.0%
Amana Company
Dishwashers4	100%	35.8%	35.8%	55.8%
Total Amana	100%	35.8%	35.8%
All Named Exporters for All Products	87.7%		12.0%