January 4, 2006
The U.S. Department of Commerce has issued a letter to the interested parties in the case that Commerce is extending by 90 days the date by which it must decide as to whether mostly palm oil candles are within the scope of the antidumping order on petroleum wax candles from China. The current deadline is January 3, 2006, and with this extension, the new deadline is April 3, 2006. Commerce indicated that additional time was needed to analyze the information received in the proceedings.
If the final determinations issued by Commerce are "affirmative", meaning that palm oil candles are within the scope of the order, the decision will mostly likely be made retroactive. Commerce will issue instructions to Customs to suspend liquidation and to require a cash deposit of antidumping duties at the 103.8% rate for entries imported on or after the date of the initiation of the scope inquiries, which is February 25, 2005. Therefore, a company with unliquidated entries of palm oil candles from China can be assessed with retroactive antidumping duties. Liquidations occur within 183 days after the filing of the entry.
Alternatively, if the outcome of the circumvention proceedings is negative (Commerce decides that mostly palm oil candles are outside the scope), the National Candle Association (NCA) may file an action in the U.S. Court of International Trade to challenge Commerce's conclusions. NCA may also file a motion to have palm oil candle entries suspended from liquidation pending the outcome of the court case.
Another possible course of action for NCA is to file a new antidumping complaint, requesting that a separate antidumping order be issued on palm-oil candles from China.
U.S. importers and foreign suppliers must determine whether to await the outcome of the final determinations before proceeding with any change of production plans.
If you have any questions concerning this newsletter, please do not hesitate to contact Stephen Spraitzar, via phone 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 S. Spraitzar and George R. Tuttle are attorneys 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.
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