AD: China Petroleum Wax Candles
The International Trade Administration (ITA) has preliminarily determined that certain imports of molded or carved articles of wax (wax forms) from China are circumventing the AD duty order on petroleum wax candles from China.
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The ITA explains that this inquiry was due to a National Candle Association (NCA) request that the ITA conduct an anticircumvention inquiry to determine whether candles assembled in the U.S. from wax forms from China are circumventing the AD duty order on petroleum wax candles from China.
(Among other things, NCA alleged that the wax forms from China are essentially wickless wax candles. NCA maintained that producers in China are shipping wickless wax forms to the U.S., with or without a pre-drilled hole in the center, for final assembly of the candle through insertion of a wick and clip assembly and that such assembly constitutes circumvention.)
Highlights of ITA's Preliminary Affirmative AD Circumvention Determination
Three importers of wickless wax forms from China are circumventing the AD duty order. The ITA has preliminarily determined that circumvention of the AD duty order on petroleum wax candles from China is occurring by reason of exports of wickless petroleum wax forms from China imported by, or sold to, DECOR-WARE, Inc., A&M Wholesalers, Inc., and Albert E. Price, and which subsequently undergo insertion of a wick and clip assembly in the U.S.
The ITA states that it has preliminarily determined that an adverse inference is warranted because these importers failed to comply with the ITA's requests for information to the best of their ability.
(Because NCA withdrew its allegation with respect to the fourth importer, Northern Lights Enterprises, the ITA is terminating the inquiry with respect to this importer.)
Suspension of liquidation and cash deposit requirements. The ITA states that it will instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of all wickless petroleum wax forms (as defined in the scope of the anticircumvention inquiry) from China imported by, or sold to DECOR-WARE, Inc., A&M Wholesalers, Inc., or Albert E. Price with a time of entry on or after May 11, 2006, the date of initiation of this anticircumvention inquiry.
In addition, CBP shall require cash deposits in accordance with those rates prevailing at the time of entry, depending upon the exporter in question.
(See ITA notice for more information, including the scope of the order, the scope of the anticircumvention inquiry, etc. See ITT's Online Archives or 05/19/06 news, 06051945, for BP summary of the initiation of this anticircumvention inquiry.)
ITA Contact - Steve Bezirganian (202) 482-1131
ITA notice (FR Pub 03/28/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-5691.pdf