ITA Issues Preliminary New AD Scope Rule for China Novelty Candles

Comments on this preliminary results of interpretation are due by September 13, 2010, and will be considered when developing the final interpretation.

(In August 2009, the ITA requested comments on how it should change its current method of determining whether novelty candles¹ are included or excluded from the scope of the antidumping duty order on petroleum wax candles from China, given the large number of scope determinations that are being requested. See ITT's Online Archives or 08/21/09 news, 09082130, for BP summary.)

2001 Scope Guide Viewed Listed Shapes as Examples, Had Novelty Exception

Since 2001, the ITA had determined that if a candle was made from petroleum wax and had a fiber or paper-cored wick, it fell within the scope of the order regardless of its shape², unless the candle possesses the characteristics set out in its 1987 instructions to CBP, in which case it falls within the ITA's novelty candle exception and is not within the scope of the Order.

(According to the ITA, its 1987 instructions to CBP state that "certain novelty candles, such as Christmas novelty candles, are not within the scope of the AD duty order on petroleum-wax candles from China.)

ITA Proposes to Decide Scope Based on Listed Shapes, Regardless of Enhancements

The ITA’s preliminary new interpretation for candle scope determination requests would consider all candle shapes identified in the scope of the order (i.e., tapers³, spirals⁴, and straight-sided dinner candles⁵; rounds⁶, columns⁷ pillars⁸, votives⁹, and various wax-filled containers¹⁰) to be within the scope of the order, regardless of etchings, prints, texture, moldings or other artistic or decorative enhancements including any holiday-related art.

Utility and birthday candles would be excluded. However, the ITA would exclude from this new interpretation, even if they are one of the shapes listed within the scope of the Order, the following:

1. those candles known variously as “household candles,” “emergency candles,” or “utility candles,” (which are typically white in color, 5 inches long, .75 inch in diameter, and come in packs of two or more); and

2. birthday candles (which are typically small, thin, pillar-shaped candles that range in height from 2 inches to 3.5 inches, are .18 inch to .25 inch in width, and come in packs of 10 to 24), and birthday numeral candles (which are candles in the shape of numbers that typically range in height from 2 to 4 inches).

All other candle shapes and types would be considered outside the scope of the order.

ITA Preliminarily Finds 269 of 388 Pending Scope Requests Outside of Order

The ITA states it has preliminarily applied this new interpretation to 388 pending scope determinations. The 388 requests consisted of 269 unique candles¹¹. Of those 269 unique candles, 250 were preliminarily determined to be outside of the scope of the order due to their shape, while 19 unique candles were preliminarily determined to be within of the scope of the order.

(ITA adds that it will not change prior scope rulings. In previous instances where it changed its scope ruling interpretation in the candles case, the ITA has only applied the change to current and future scope rulings.

See ITA notice for additional information, including comments received pursuant to its original comment request, etc.)

¹The ITA defines novelty candles as candles that are in the shapes of identifiable objects or are holiday-themed.

²as it viewed the listed shapes as examples, not an exhaustive list

³A taper is a candle that has a circumference at its base of up to 5 inches, is typically six inches or longer and gradually decreases in width from base to top so that the width at the base is typically no more than 60 percent larger than the width at the top (the top of a taper candle is typically 1/6 of the candle’s height from the tip of the candle, excluding the wick). The decrease in width may be continuously straight or slightly convex.

⁴A spiral is a candle that has dimensions similar to a taper’s and has helical indentations around its length.

⁵A straight-sided dinner candle has dimensions similar to a taper’s, although its width is constant through the length of the candle.

⁶A round may come in two varieties: 1) a “spherical round” is one in which all points on the candle’s surface (except for those on the base and top) are approximately equidistant from the candle’s center; 2) a “flattened round,” is typically disc-shaped and has at its widest point an approximately circular circumference which is greater than it its height. All horizontal radii of this circumference are approximately equidistant from the circumference’s center.

⁷A column is a candle that is often free-standing, has a width of up to 8 inches and a height of up to 14 inches. It typically maintains a constant circumference throughout its length. The base and top may have a cylinder or polygon shape.

⁸A pillar is a candle that is often free-standing, has a width of up to 8 inches and a height of up to 12 inches. It typically maintains a constant circumference throughout its length. The base and top may have a cylinder or polygon shape.

⁹A votive candle is typically about 1.5 inches in diameter, 2 to 2.5 inches high, and typically designed to be placed in a container.

¹⁰The exposed surface of the wax at the top of the container is typically horizontally flat. The container may be in any shape and be made of any material.

¹¹“Unique candles” are those from a particular requestor that the ITA deems identical. For example, if a requestor submitted three beach ball candles, and two of those were exactly the same size, shape, and color, while the third candle was not, the set of three candles would consist of two unique candles.

(See ITT’s Online Archives or 06/06/07 news, 07060630, for BP summary of ITA determining that certain wickless petroleum wax forms from China constituted circumvention of the AD order on petroleum wax candles from China.)

ITA contact -- Tim Lord (202) 482-7425

(FR Pub 08/13/10, ITA Case No. A-570-504)

(Edited for clarity on August 2, 2011)