ITA Finds Preliminary Circumvention of AD Order on Petroleum Wax Candles from China by "Mixed Wax" Candles
The International Trade Administration (ITA) has issued a fact sheet on its preliminary determination of circumvention of the antidumping (AD) duty order on petroleum wax candles from China with respect to certain mixed wax candles composed of petroleum wax and more than fifty percent palm and/or other vegetable oil-based waxes.
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The ITA states that this preliminary determination was announced on May 24, 2006; ITA sources expect it to be published in the Federal Register in 3-5 working days.
Preliminary Determination of "Later-Developed Merchandise"
According to the ITA, these mixed wax candles composed of petroleum wax and more than fifty percent palm and/or other vegetable oil-based waxes are considered to be later-developed merchandise.
Candles Up to 87.80% Palm/Other Vegetable Wax are in Scope
However, the ITA states that it is unable to conclusively determine whether, and at what point, candles containing increasing proportions of palm and/or other vegetable oil-based wax may no longer be considered petroleum wax candles. As a result, the ITA states that it is has preliminary determined that only those mixed wax candles that contain up to 87.80 percent of palm and/or other vegetable oil-based waxes, which is the highest amount within a mixed wax candle that has been made for commercial sale on the record, are within the scope of the AD duty order on petroleum wax candles from China.
Liquidation Suspension Retroactive to February 25, 2005
In accordance with this affirmative preliminary determination, the ITA will require suspension of liquidation of entries of mixed wax candles containing up to 87.80 percent of palm and/or other vegetable-based waxes mixed with petroleum wax, from China that have a time of entry on or after February 25, 2005, the date of initiation of this anticircumvention inquiry. The ITA indicates that the preliminary AD duty liability for these mixed wax candles will be 108.30 percent for all such unliquidated entries, which is the most recently calculated China-wide rate.
Minor Alterations Anticircumvention Inquiry "On Hold"
At the same time that the ITA initiated this later developed merchandise anticircumvention inquiry on mixed wax candles, it also initiated a minor alterations anticircumvention inquiry on mixed wax candles. The ITA states that this minor alterations inquiry is on hold, but may continue pending the results of the final determination of the later-developed merchandise proceeding. However, if the ITA determines to affirm the results of this preliminary determination, then the minor alteration proceeding will be rescinded as the products subject to that inquiry would already have been determined to be within the scope pursuant to the instant inquiry.
(See ITT's Online Archives or 03/09/05 news, 05030920 for BP summary of ITA initiation of the later-developed merchandise and minor alterations anticircumvention inquiries. See ITT's Online Archives or 02/08/06 news, 06020845 for BP summary of request for additional comments.
See ITT's Online Archives or 05/19/06 news, 06051945 for BP summary of initiation of another anticircumvention inquiry on this order, but on wax forms.)
ITA fact sheet on preliminary determination available at http://ia.ita.doc.gov/download/factsheets/factsheet-prc-candles-circ-prelim-052406.pdf
ITA preliminary determination of circumvention (to be published in Federal Register), available at http://ia.ita.doc.gov/download/factsheets/fr-notice-prc-candles-circ-prelim-052406.pdf