AD: China Petroleum Wax Candles (Anticircumvention Inquiries)
The International Trade Administration (ITA) has issued a notice announcing that it is initiating two anticircumvention inquiries, as requested by a petitioner, to determine whether imports of mixed wax candles composed of petroleum wax and varying amounts of either palm or vegetable-based waxes from China are circumventing the antidumping (AD) duty order on petroleum wax candles from China.
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| Initiation of AD Anticircumvention Inquiries on Mixed Wax Candles |
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The ITA is initiating these inquiries in response to two requests received in October 2004 from the National Candle Association (NCA) requesting that the ITA determine that certain candles produced in China containing palm and/or vegetable-based waxes and exported to the U.S. illegally circumvent the above-described AD duty order on the basis of (1) minor alterations, or (2) later-developed merchandise.
"Minor Alterations" Anticircumvention Inquiry
Among other things, NCA has alleged that foreign producers in China and domestic importers are altering existing petroleum wax candles for the sole purpose of circumventing the AD duty order on petroleum wax candles from China. NCA contends that the altered candles properly fall within the scope of the AD duty order, even though the alterations may remove them from the AD duty order's literal scope.
The ITA states that it will determine whether mixed wax candles composed of petroleum wax and varying amounts of either palm or vegetable-based waxes have been subject to a minor alteration such that the addition of the non-petroleum content to these candles results in products that are "altered in form or appearance in minor respects" from the subject merchandise and whether these mixed wax petroleum candles can be considered subject to the AD duty order on petroleum wax candles from China under the minor alterations provision of the Tariff Act of 1930 (Act).
ITA to examine 106 China manufacturers and exporters, etc. The ITA states that it is initiating this anticircumvention inquiry on 106 China manufacturers and exporters identified by the petitioner, a list of which is available at http://ia.ita.doc.gov/download/factsheets/prc-candles-minor-alterations-mfg-exp-03-01-05.txt. However, within 45 days of the date of initiation of this inquiry, if the ITA receives sufficient evidence that other China manufacturers and exporters are involved in the production of such mixed wax candles for export to the U.S., the ITA will consider examining such additional manufacturers and exporters.
"Later-Developed Merchandise" Anticircumvention Inquiry
The NCA has also argued that candles containing palm or vegetable-based waxes as the majority ingredient were not commercially "developed" at the time of the original AD investigation and, therefore, are later-developed products and properly fall within the scope of the AD duty order.
As a result, the ITA is also initiating a China-wide anticircumvention inquiry to determine whether mixed wax candles composed of petroleum wax and varying amounts of either palm or vegetable-based waxes are later-developed products that can be considered subject to the AD duty order on petroleum wax candles from China under the later-developed merchandise provision of the Act.
ITA Will Not Order Suspension of Liquidation for Additional Merchandise at This Time
The ITA states that it will not order the suspension of liquidation of entries of any additional merchandise at this time for either of these inquiries. However, if the ITA issues a preliminary affirmative circumvention determination(s), it will then instruct U.S. Customs and Border Protection (CBP) to suspend liquidation and require a cash deposit of estimated duties on the additional merchandise.
The ITA adds that it intends to issue both of its final determinations within 300 days of March 7, 2005.
(See ITA's notice for more information including the scope of the AD duty order, the scope of the minor alterations anticircumvention proceeding, etc.
See ITT's Online Archives or 11/05/04 news, 04110535, for BP summary of the NCA's petitions requesting the initiation of these anticircumvention inquiries.)
ITA Contact - Alex Villanueva (202) 482-3208
ITA Notice (FR Pub 03/07/05) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/E5-918.pdf