AD: China Petroleum Wax Candles (Circumvention)
The International Trade Administration (ITA) has issued an affirmative final determination that mixed wax candles (candles composed of petroleum wax and over fifty percent or more palm and/or other vegetable oil-based waxes) are later-developed merchandise and thus, circumvent the antidumping (AD) duty order on petroleum wax candles from China.
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Specifically, the ITA has determined that mixed wax candles containing any amount of petroleum are considered later-developed merchandise and are covered by the scope of the order.
(In its preliminary affirmative AD circumvention determination, the ITA had concluded that mixed-wax candles containing up to 87.80% non-petroleum wax were within the scope of the AD duty order.)
Mixed-Wax Candles with Any Percentage of Petroleum are Later-Developed, Within Scope of Order
The ITA states that as result of its analysis, it finds that the addition of vegetable and/or palm-oil based waxes to petroleum wax candles can be categorized as a significant alteration of the merchandise involving commercially significant changes, and therefore it finds that U.S. imports of mixed-wax candles with any percentage of petroleum are later-developed products. Moreover, based on further comments and evidence, the ITA has also determined that these mixed-wax candles are within the scope of the AD duty order.
Suspension of Liquidation/AD Cash Deposit for Such Mixed-Wax Candles
According to the ITA, it will revise its instructions to U.S. Customs and Border Protection (CBP) to now suspend liquidation of all entries of mixed-wax candles containing any amount of petroleum wax from China with a time of entry on or after February 25, 2005, the date of initiation of this AD circumvention inquiry.
The ITA states that CBP shall require an AD cash deposit in the amount of 108.30% for all unliquidated entries of subject merchandise, which is the most recently calculated China-wide rate.
Scope Requests May be Submitted
The ITA states that it recognizes that there may be some types of mixed-wax candles containing a given amount of vegetable-based wax that places these mixed-wax candles outside the scope of the AD duty order. Therefore, the ITA notes that interested parties may submit a scope request regarding whether a certain type of mixed-wax candle is outside the scope of the order.
ITA Rescinds Minor Alterations Anticircumvention Inquiry
The ITA finds that due to the issuance of the affirmative final determination that mixed-wax candles are a later-developed product, the minor alterations anticircumvention inquiry has been rescinded as the products subject to that inquiry have already been determined to be within the scope of the AD duty order.
(In addition to the later-developed merchandise anticircumvention inquiry to determine whether mixed wax candles were not commercially developed at the time of the original AD investigation, the petitioners had also requested that the ITA conduct a minor alterations anticircumvention inquiry to determine whether existing petroleum wax candles were being altered for the sole purpose of circumventing the AD order.)
(See ITA notice for more information, including the scope of the AD duty order, etc. See ITT's Online Archives or 06/06/06 news, 06060640, for BP summary of the ITA's preliminary affirmative AD circumvention determination.)
ITA Contact - Alex Villanueva (202) 482-3208
ITA notice (dated 10/06/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-16613.pdf
ITA fact sheet (dated 10/02/06) available at http://ia.ita.doc.gov/download/factsheets/factsheet-china-candles-anticircumvention-final-100206.pdf