February 20, 2004

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.

2001-02 Administrative Review Period

It is anticipated that the final determination will be issued by Commerce on March 8, 2004, and it is expected that the final China-wide rate will be at or near the 95.74% rate.

2002-03 Administrative Review Period

In our last newsletter, we reported that 23 Chinese companies were being reviewed by Commerce for the 2002-03 review period. 

On February 10, 2003, the Commerce Department published notice that the National Candle Association, the party that originally requested the review of the 23 Chinese companies, has withdrawn its request for review of these 23 companies.  This means that the rate in affect for the 2001-2002 review period (probably the 95.7% rate) will be applied to entries made in the 2002-2003 review period.

The companies for which a review has been terminated are:

¨      Amstar Business Co., Ltd.;

¨      AtHome America; Avon Products, Inc.;

¨      Candle World Industrial Co.;

¨      Dalian Hanbo Lighting Co., Ltd.;

¨      Generaluxe Factory;

¨      Guangdong Xin Hui City Si Qian Art & Craft Factory;

¨      Jiangsu Holly Corporation;

¨      Li & Fung Trading Ltd.;

¨      Premier Candle 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.; and,

¨     Zhong Hang-Scanwell International/Scanwell Freight Express
    (LAX), Inc.

Although the NCA withdrew its request for review of the 23 Chinese exporters, Commerce will continue with its own review of two of these companies because they filed their own separate requests for review of their own antidumping rates.  The two companies for which Commerce will continue its review are Fay Candle and Qingdao Kingking. 

Commerce will now proceed in issuing a full antidumping questionnaire to these two companies.

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 2004). 

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 February 1 – 29, 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 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.