The U.S. Accuses LG, Samsung of Dumping Fridges at Unfair Value

The U.S. government announced a preliminary ruling on Oct. 27, 2011 that two major Korean refrigerator manufacturers -- Samsung and LG -- have dumped their products in the U.S. market at unfair value.

"The Department of Commerce announced its affirmative preliminary determinations in the antidumping duty investigations of imports of bottom mount combination refrigerator-freezers from the Republic of Korea and Mexico," the International Trade Administration (ITA), affiliated with the department, said in a press release.

It investigates dumping cases in which a foreign company allegedly sells its products in the U.S. at less than fair value.

After a months-long probe into the charges based on a petition by Whirlpool, a Michigan-based producer of home appliances, the ITA said it found dumping margins of up to 36.65 percent from bottom-mount refrigerators made in South Korea and Mexico by the two companies.

The Department of Commerce is scheduled to make its final determinations in March, it added.

"As a result of these preliminary determinations, the Department of Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond based on these preliminary rates," the ITA said.

Whirlpool welcomed the ruling.

"The Commerce Department's preliminary finding of dumping validates the legal actions we are taking to protect our 23,000 employees in the United States and the communities in which they work," said Whirlpool Corp. spokesperson Kristine Vernier.

Meanwhile, Whirlpool also claimed that Samsung and LG took big subsidies and should face countervailing duties.

In an August preliminary decision, the U.S. government found the charges groundless, with the final determinations due in January.