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Originator of AD China Candle Case Opposes ITA’s New Scope Interpretation

The International Trade Administration has posted comments received from its August 13, 2010 preliminary new interpretation for determining whether novelty candles are in the scope of the antidumping duty order on petroleum wax candles from China (A-570-504).

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(In the August 2010 preliminary new interpretation, ITA said it would consider all candle shapes identified in the scope of the order (i.e., tapers, spirals, and straight-sided dinner candles; rounds, columns pillars, votives, and various wax-filled containers) 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.

ITA also said it would exclude certain “utility” and birthday candles from this new interpretation, even if they are one of the shapes listed within the scope of the Order. (See ITT’s Online Archives or 08/13/10 news, 10081321, for BP summary of the ITA's August preliminary new scope interpretation.))

Candle Association Says ITA’s Interpretation Contrary to Case’s Original Purpose

The National Candle Association (NCA), which represents the injured domestic industry in the case, states that there is no record evidence to support the ITA’s preliminary interpretation that the scope of the Order is exclusive and that candles not in the shapes described in the scope fall outside the scope of the Order.

The association adds that the list of shapes in the Order was always intended to be illustrative and not, by any means, a limitation on the scope of the Order. NCA states that it never advocated for an exhaustive scope where candles not specifically enumerated in the scope language were to be excluded. Rather, it intended the language in the scope of the Order to be broad and inclusive, and that an interpretation such as proposed in ITA’s preliminary interpretation is contrary to the very purpose the NCA filed an antidumping case in the first place.

High AD duty on subject products. Note that the China-wide AD duty cash deposit rate is 108.3%. (See ITT’s Online Archives or 01/06/10 news, 10010615, for BP summary of a circumvention petition which lists the most recent AD cash deposit “China-wide” rate for petroleum wax candles at 108.3%.)

(Comments were due September 13, 2010 and four were submitted. See source document for other comments, such as those from an importer supporting the preliminary interpretation as it resolves ambiguities with respect to any shapes not specifically mentioned; a request to include utility candles within the scope; etc.)

ITA August preliminary interpretation available here.