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.

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:

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.

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:

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 George R. Tuttle at (415) 288-0425 or via email at grt@tuttlelaw.com.

George R. Tuttle 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.