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Newsletter

Commerce Announces 95.74% China-Wide Rate
in Preliminary Decision on Antidumping Review
of Candles From China

October 15, 2003

On Tuesday, September 9, 2003, the U.S. Department of Commerce issued its notice of preliminary results in the 2001-02 Administrative Review of petroleum wax candles from China. This newsletter will summarize the important points of this Federal Register notice and discuss the upcoming Administrative Review for 2002-03 as well.

  1. Preliminary Determination For 2001-02 Administrative Review

In its September 9, 2003, Federal Register notice, Commerce indicated that the China-wide rate on candles imported from China would now be 95.74%. If this rate becomes final, this rate will apply to over 90 companies that were in the 2001-02 Administrative Review. Interested parties now have 30 days to file comments with Commerce on this decision, which must reach Commerce by October 9, 2003. In its final determination, Commerce can modify the rate, or leave it the same.

For purposes of this Administrative Review, Commerce had selected five "mandatory respondents", including the following:

Dongguan Fay Candle Co.
Smartcord International Co., Ltd./Rich Talent Trading
Qingdao Kingking Applied Chemistry Co., Ltd.
Amstar Business Co., Ltd.
Jiangsu Holly Corporation

The preliminary antidumping rates for these five companies range from 13.64% to 95.74%. Commerce also determined that two of the exporters reviewed were deemed to be cooperative respondents, meaning that they adequately responded to Commerce's quantity and value (Q&V) letter, as well as to Commerce's Section A questionnaire. These two companies will have a weighted-average margin based upon the rates established for the five mandatory respondents.

For a complete list of the companies involved, see our newsletter of February 5, 2003, “Possible Imposition of Substantially Higher Antidumping Duties on Petroleum Wax Candles from China".

  1. Administrative Review for 2002-03 Period

Commerce has recently published a notice in the Federal Register dated September 15, 2003, indicating that they will conduct an Administrative Review for the period of August 1, 2002, to July 31, 2003 ("2002-03 period"). Unlike the review for 2001-02, the review for 2002-03 involves only 23 Chinese exporters/producers of candles, which include:

Amstar Business Co., Ltd.
AtHome America
Avon Products, Inc.
Candle World Industrial Co.
Dalian Hanbo Lighting Co., Ltd.
Dongguan Fay Candle Company, Ltd.
Generaluxe Factory
Guangdong Xin Hui City Si Qian Art & Craft Factory
Jiangsu Holly Corporation
Li & Fung Trading Ltd.
Premier Candle Co. Ltd.
Qingdao Kingking Applied Chemistry Co., Ltd.
Shandong Jiaye Gen. Merch.
Shanghai Charming Wax Co., Ltd.
Simon Int'l Ltd.
Sincere Factory Company
Smartcord Int'l Co., Ltd./Rich Talent Trading
Suzhou Ind'l Park Nam Kwong
Taizhou Int'l Trae Corp.
Two's Company Inc.
Universal Candle Co., Ltd.
Zen Continental Co., Inc.
Zhong Hang-Scanwell International/Scanwell
Freight Express (LAX), Inc.

It is unclear as to whether Commerce will be utilizing the same procedures for the 2002-03 review that were followed for the 2001-02 review period. However, if Commerce issues a Q&V letter to the named companies in the 2002-03 review, it is important that the exporters/producers who receive these letters make adequate responses to the letters. If they do so, and the responses are complete, the companies will be deemed cooperative, and thus will receive a weighted-average margin based upon the rates established for the mandatory respondents. If they do not adequately respond, they will be given the higher China-wide rate. Commerce may select several companies to be the "mandatory respondents," from which the weighted margin will be determined. However, this remains to be seen, since only 23 respondents were named in the 2002-03 review.

Needless to say, the area of antidumping duties is a difficult and complicated one. Professional advice should be sought with regard to completing a questionnaire and for counsel in participating effectively in these antidumping proceedings.

Our law firm specializes in the practice of antidumping, Customs, and international trade. Our firm is especially fortunate to have associated itself with a consultant who was a former antidumping analyst at Commerce and who worked on many antidumping cases.

We have had substantial experience with regard to the AD order on candles from China and other AD cases. As an example, we represented an exporter of porcelain-on-steel-cookware from China and assisted the exporter in answering the Commerce questionnaire. As a result of our efforts, Commerce reduced the company’s AD duties from 66.23% to zero.

If you or any of your suppliers believe you may be subject to the Commerce antidumping administrative review, please do not hesitate to contact us. We can provide assistance in responding to Commerce questionnaires, as well as advice on other strategies for minimizing final duty obligations.

If you have any questions on any of the issues raised in this newsletter, please contact Steve Spraitzar at (415) 288-0427 or via email at sss@tuttlelaw.com, or George R. Tuttle at (415) 288-0425 or via email at grt@tuttlelaw.com.

Stephen Spraitzar is an attorney with the Law Offices of George R. Tuttle in San Francisco. The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright 2005 by Tuttle Law Offices.

All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

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