WHR Whirlpool Corp

The U.S. government will begin charging duties on washing machines built in China by Samsung Electronics Co. and LG Electronics Inc., after upholding a complaint by competitor Whirlpool Corp. alleging that the companies sold their washers in the U.S. for less than they cost to produce.

In a preliminary report Wednesday, the U.S. Commerce Department said it also found a surge of imports from Samsung over a relatively short period, in anticipation of possible imposition of anti-dumping duties. In response, U.S. Customs and Border Protection will impose duties on certain Samsung washing machines retroactively up to 90 days before the Commerce Department's report.

The findings come about four years after the government imposed duties on the South Korean companies' washers built in South Korea and Mexico. Benton Harbor, Mich.-based Whirlpool had alleged the companies avoided paying those fees by moving their production of washing machines to China.

Whirlpool's complaint covers full-size top-loading and front-loading residential washers, along with certain washer parts, made by Samsung and LG in China. The duties amount to 111% on Samsung's washers and 50% on LG's models. Many of these washers sell in the U.S. for $500 to $1,000.

Whirlpool had said the companies had been using discount prices on washers to grab share in the U.S. appliance market.

LG said it intends to contest the order in advance of the Commerce Department's final determination of duties in early December. The company said Wednesday the methodology and calculations used to determine the duties are "erroneous" and resulted in "unexpectedly high" fees. LG also said it is preparing to appeal the case to the U.S. International Trade Commission, where it plans to argue that its imports aren't harming the U.S. market.

A Samsung spokeswoman said the company "did not engage in unfair trade practices and is disappointed" with the Commerce Department's decision and said the company is considering options for further action. Samsung said the duties will force U.S. consumers to pay higher prices for appliances and decrease competition in the U.S. market.

Write to Bob Tita at robert.tita@wsj.com

(END) Dow Jones Newswires

July 20, 2016 18:55 ET (22:55 GMT)

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