The following is an update on the status of the
ongoing antidumping reviews on imports of petroleum wax candles
from China by the U.S. Department of Commerce.
New Antidumping Duty
Rate Of 95.95% Effective March 15, 2004
On March 15, 2004, the U.S.
Department of Commerce published its final determination for the
2001-02 Administrative Review period in the Federal Register,
concluding that the final China-wide antidumping duty rate on candles
from China will now be 95.95%. This decision substantially raises
the antidumping duty rate from the current 54.21%.
This final determination by
Commerce means that the deposit rate for all petroleum wax candles
from China imported on or after March 15, 2004, will be 95.95%.
None of the reviewed Chinese suppliers obtained a lower AD rate.
This decision will also mean
that retroactive antidumping duties will be assessed at the
95.95% rate for imports made during the period of August 1, 2001–July
31, 2002 (period in issue), by all importers who imported from the
90-plus Chinese suppliers who were reviewed in the 2001-02 review.
This will result in an increase of 41.74% in AD for the period in
issue, plus interest. Within 15 days, Commerce will be issuing
instructions to Customs to liquidate these entries at the higher
rate. The quantity of petroleum wax candles imported from China
into the U.S. is substantial, and thus the retroactive duties that
will be assessed will be very large.
In order to contest this decision,
an action must be filed in the U.S. Court of International Trade
within 30 days from the date of this decision (by April 14), by
an interested party. Litigation of this matter would delay liquidation
of the affected entries until the litigation is finalized.
Review As To Whether
Candles Are Within The Scope
Importers who are affected
by the new AD rate on candles from China should also review whether
all of their petroleum wax candles are within the scope of the AD
order. Some candles, because of their size and configuration, may
be excluded from the scope, based upon scope determinations issued
by the Department of Commerce. Certain other candles are excluded
because they are considered “novelty” candles. If there
is doubt as to whether candles are within the scope, this should
be reviewed further.
In our last newsletter, we
reported that Commerce had terminated the Administrative Review
for 21 of the 23 Chinese suppliers who were initially named in this
Commerce will continue with
its own review of 2 of the 23 companies, because they filed their
own separate requests for review of their own antidumping rates.
These two companies are Fay Candle and Qingdao Kingking. It is
our understanding that these companies are now in the process of
responding to an antidumping questionnaire.
August 2004 Is Next
Opportunity To Request An Administrative Review
Each antidumping order has
an “anniversary month”, which is the month in which
the antidumping order was originally issued. For the order on petroleum
wax candles from China, the anniversary month is August. This means
that requests for administrative review can be filed during the
period of August 1-31, 2004. It is also the month in which new
shipper reviews can be filed with respect to this antidumping order.
Under the Commerce Department regulations, a “new
shipper” is permitted to file a request for administrative
review either during the anniversary month of the antidumping order
(August for candles from China), or six months after the anniversary
month (in this case, February).
A “new shipper” is a supplier that was
not reviewed during the original investigation (which, for candles,
was in 1986), and has not been subsequently reviewed by Commerce.
Thus, the 90+ Chinese suppliers who were reviewed in the 2001-02
administrative review are not permitted to file new shipper reviews.
For this year, new shipper requests for the candle
AD order must be filed with Commerce in Washington, D.C.
during the period of August 1–31, 2004.
Once Commerce initiates a review, they will issue
a questionnaire to the new shipper, and, typically, information
for six months prior to the request will be reviewed, in contrast
to twelve months’ worth of data that is reviewed in a regular
administrative review. Chinese suppliers who have not been reviewed
by Commerce should seriously consider the opportunities presented
by filing a new shipper review.
If you have any questions on any of the issues raised
in the newsletter or any other Customs-related issues, please contact
Stephen Spraitzar at (415) 288-0427 or via email at firstname.lastname@example.org, or George R. Tuttle at
(415) 288-0425 or via email at email@example.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.