December 15, 2002, the U.S. Commerce Department issued a final
scope ruling to Leader Light Ltd. that involved 76 various candles.
In issuing its ruling to Leader Light, U.S. Commerce indicated
that candles made out of palm oil (palm wax), or primarily made
of palm oil, were outside of the scope of the Antidumping Order
On Petroleum Wax Candles From The People's Republic Of China.
In reaching its decision, Commerce reviewed the various comments
that had been submitted by the National Candle Association ("NCA"),
representing U.S. domestic candle makers, as well as comments
submitted by U.S. importers.
concluded that the evidence demonstrated that palm oil is not
derived from petroleum, and is not similar to a petroleum wax.
Commerce also indicated that in light of this conclusion, there
was no need to render a decision on whether palm oil was "later
developed merchandise" within the purview of Section 351.225(k)(2)
of the Commerce regulations.
use of palm oil in candles has greatly increased over the last
few years, with the result that candles made of palm oil or primarily
made out of palm oil have been treated as being outside the scope
of the antidumping order. This treatment has now been confirmed
by Commerce in its ruling to Leader Light.
should be advised that the NCA is not precluded from filing a
petition with Commerce and the U.S. International Trade Commission
to initiate an investigation on candles made of palm oil. Should
this petition be accepted by Commerce and the ITC, both agencies
would commence an investigation to determine whether candles of
palm oil from China were being sold at less than fair value (dumping),
and whether there is injury to the U.S. candle industry as a result
of this dumping. Should both agencies decide in the affirmative,
a dumping order would be issued by Commerce and an antidumping
rate established for palm oil candles.
law firm specializes in the practice of antidumping, Customs and
international trade law. If you have any questions on the issues
raised in this newsletter, please contact Stephen Spraitzar at
(415) 288-0427, or via email at firstname.lastname@example.org.