AD: China Petroleum Wax Candles (Novelty Candles Could be Added to Scope)

(The ITA describes novelty candles as candles in the shape of an identifiable object, or with holiday-specific design, both being discernable from multiple angles.)

ITA's Current Method for Excluding Novelty Candles Dates to 2001

Since 2001, the ITA has determined that if a candle is made from petroleum wax and has a fiber or paper-cored wick it falls within the scope of the order regardless of shape, 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.

Christmas novelty candles are candles specially designed for use only in connection with the Christmas holiday season. This use is clearly indicated by Christmas scenes and symbols depicted in the candle design. Other novelty candles not within the scope of the order include candles having scenes or symbols of other occasions (e.g., religious holidays or special events) depicted in their designs, figurine candles, and candles shaped in the form of identifiable objects (e.g., animals or numerals).")

Large Number of Requests for Scope Determinations

The ITA states that given the extremely large number of scope determinations requested by outside parties (596 scope determinations have been issued to date), it is seeking comments from interested parties on the best method for considering whether a novelty candle should or should not be included within the scope of the subject AD duty order.

ITA Proposes Two Possible Options

The ITA states that is proposing the following two options:

(1) to 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, moldings or other artistic or decorative enhancements including any holiday-related art. All other candle shapes would be considered outside the scope of the order.

(2) to consider all candle shapes, including novelty candles, to be within the scope of the order.

The ITA notes that it is not limiting its consideration to only these two options and welcomes all interested parties to submit comments and proposals for conducting the increasing number of requests for candle scope determinations.

The ITA also asks interested parties to consider the historical context in which the novelty exclusion was created and whether the basis for that exclusion should be reconsidered given the increasing number of requests for candle scope determinations.

ITA Will Not Issue Any Scope Determinations Pending Its Comment Analysis

Given the overwhelming number of scope requests, the ITA will not issue a determination on the pending scope requests until it has completed its analysis of the comments submitted by interested parties. (Currently, there are 308 pending candles scope determinations.)

The ITA intends to issue a preliminary determination with respect to this issue 60 days after September 16, 2009.

(See ITA notice for more information, including instructions for the submission of comments, etc.

See ITT's Online Archives or 04/07/09 news, 09040760, for BP summary of the ITA's most recent list of AD/CV duty scope rulings pending scope inquiries, including the subject candles, etc.

See ITT's Online Archives or 07/16/09 news, 09071635, for BP summary of a Court of International Trade ruling that mixed-wax candles are covered by the subject AD duty order.)

ITA contact - Alex Villanueva (202) 482-3208

ITA notice (FR Pub 08/21/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-20139.pdf