Commerce Sets Parameters for Birthday Candle Exemption from Antidumping Duties
The Commerce Department clarified its exclusion for birthday candles from the scope of the antidumping duty order on petroleum wax candles from China (A-570-504) in a March 7 final scope ruling. The ruling hadn’t been made available to the public through posting to the IAACCESS database until May 13. The clarification, which Commerce said “will serve as the Department’s guideline for what constitutes a birthday candle for the purpose of the birthday candle exclusion,” mandates that birthday candles be labeled as such to qualify.
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Signature Brands had requested the scope ruling for 22 of its candle models, arguing they are excluded from the scope as “birthday candles.” After turning to the extensive 19 CFR 351.225(k)(2) factors, Commerce found that only five of the 22 models of candles are outside the scope of the AD duty order on petroleum wax candles from China. The other 17 models are subject to the AD duty order because they are not specifically labeled as birthday candles.
Commerce Sets Out Definitive Guidelines for Birthday Candles Exclusion
During the scope proceeding, Commerce looked to submissions from both Signature and domestic industry on what should be considered a birthday candle for the purposes of the scope exclusion. In its final ruling, after hearing arguments from both sides, the agency set forth the following criteria:
Physical Characteristics
- The height must not exceed 4.25 inches
- The diameter or thickness must not exceed 3/8 (0.375) inch
- The weight of each candle must not exceed 8.13 grams
- Burn time must be one hour or less
- Birthday candles are sold in multiple-candle packages in which the count should be from 3-24
- Birthday candles must be conspicuously labeled as such
- Birthday candles must not contain stearin
- Birthday candles are unscented
- Birthday candles are food-safe
- Birthday candles must be in compliance with all federal restrictions on lead content in surface coatings
- Birthday candles with candle holders use food-safe plastic candle holders, compliant with Food and Drug Administration regulations
Expectation of Ultimate Purchasers
- The package must be clearly labeled as birthday candles
- Birthday candles are disposable
- Birthday candles complement, in a decorative manner, the cake, cupcake, or other confection for the birthday occasion
Ultimate Use of the Product
- The ultimate use of birthday candles is specifically to decorate a cake, cupcake, or other confection for the birthday occasion
Channels of Trade in Which the Product is Sold
- Birthday candles are sold in supermarkets/groceries, party stores, drug stores, and big box stores
- Birthday candles are also available online for purchase
Manner in Which the Product is Advertised and Displayed
- Birthday candles are advertised and displayed in the baking section of grocery stores and supermarkets
- Birthday candles may also be advertised and displayed in the birthday section of party stores
- In other retail establishments, such as drug stores, birthday candles are advertised and displayed in the birthday section
- Birthday candles are advertised and displayed along with other birthday items, like cake decoration materials, decorative icing, and birthday cards
- Birthday candles must be clearly labeled as birthday candles