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By Certified
Mail, Return Receipt Requested
On October
6, 1993, A.J. Cohen (Cohen) requested that the Department of
Commerce (the Department) issue a ruling that two sets of holiday
candles be found outside the scope of the antidumping duty order
on petroleum wax candles from the People’s Republic of China
(PRC).
We evaluated
Cohen’s application in accordance with 19 C.F.R. § 353.29(i)(1)
(1993). Based on the product descriptions contained in the petition,
the initial investigation, and the determinations of the Department
and the International Trade Commission, the Department determines
that candles set # 155 meets the physical criteria of merchandise
within the scope of the order, and does not have any exclusionary
characteristics. Therefore, we determine that candle set #155
is within the scope of the order. Conversely, each candle in
set #154 is a taper with a ring and a figurine molded to it.
Consistent with prior rulings on the scope of this order, we
determine that candle set #154 is outside of the scope of the
order on candles from the PRC.
Enclosed
is a memorandum explaining our decision. We will notify Customs
of this decision. If you have any questions, please contact
Sandra Yacura or Wendy J. Frankel at (202) 482-5253.
Sincerely,
Laurie
A. Lucksinger
Division DirectorOffice of Antidumping Compliance
Enclosure
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A-57
0-504
Scope Review
Public Document
OADC: SLY
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MEMORANDUM
FOR: |
Joseph
A. Spetrini
Deputy Assistant Secretary for Compliance |
FROM: |
Holly A. Kuga, Director
Office of Antidumping Compliance |
SUBJECT: |
Final
Scope Ruling — Antidumping Duty Order on Petroleum Wax Candles
From the People’s Republic of China: A.J. Cohen |
SUMMARY
On October
6, 1993, A.J. Cohen requested that the Department of Commerce
(the Department) issue a ruling that two sets of holiday candles
(A.J. Cohen candle sets) be found outside the scope of the antidumping
duty order on petroleum wax candles from the People’s Republic
of China (PRC).
Based on
an analysis of the information on the record, and in accordance
with 19 CFR 353.29(i) (1), the Department determines that the
candles in set number 154, which are tapers with Santa Claus
figurines affixed to the taper, are outside of the scope of
the order. The Department determines that the candles in set
number 155, which are red spirals helically trimmed in gold
paper, are within the Scope of the order.
BACKGROUND
On October
6, 1993, A.J. Cohen filed a letter with the Department requesting
that the Department clarify whether two sets of its petroleum
wax candles fall within the scope of the antidumping duty order
on candles from the PRC. The candles in each set are ten-inch
red tapers made of petroleum wax. The tapers in set number 154
each have a ring of green petroleum wax molded onto the taper.
Each ring has a figurine of a Santa Claus on its front. The
candles in set number 155 are red spirals which are helically
trimmed in gold paper.
A.J. Cohen’s
submission stated that both set number 154 and set number 155
should be found outside the order:
(Candle
set] 154 is a 10" taper candle with decorative scene’s [sic]
on them such as Santa, Snowman, Reindeer, etc...[The candles
are] to be used as a decoration for Christmas or to burn candles
during the Christmas season. [Candle set] 155 is a 10" taper
with gold decorative striping throughout, up and down the
candle.
See Letter
to the Department from A.J. Cohen, October 6, 1993.
On February
9, 1994, counsel for the National Candle Association submitted
comments in response to A.J. Cohen’s request:
...[T]aper
candle (X154) was nothing more than a typical taper candle
to which the manufacturer has loosely attached a wax Santa
Claus figurine. . . [T]he Santa Claus figure had broken and
left no mark on the taper. The attached figure was of such
poor quality that it is probable that the consumer would buy
these dumped candles at a very low price, remove the Santa
Claus figure, and use them as any other taper candle. The
physical characteristics and purposes for which this candle
will be used cannot be changed from being a taper subject
to the order by virtue of attaching a cheap Santa Claus figure
that can easily be removed from the candle.
The other
candle submitted by A.J. Cohen (X155) is nothing more than
a spiral candle which is specifically included within the
scope of the Antidumping Order. The addition of a gold paper
striping in the grooves of the spiral do not change its physical
characteristics or uses. This spiral candle will be used for
the same decorative or lighting purposes as U.S.-produced
spiral candles and will compete directly against them in the
same channels of trade.
See Letter
to the Department from Barnes and Thornburg, February 9, 1994.
ANALYSIS
In accordance
with 19 CFR 353.29(i) (1), in analyzing the scope request in
this proceeding, the Department took into account the descriptions
of the merchandise contained in the petition, the initial investigation,
and the determinations of the Department and the International
Trade Commission (ITC), and determined that this documentation
is dispositive as to whether the two candle sets are within
the scope of the order.
Documents
from the underlying investigation and subsequent decisions deemed
relevant by the Department to the scope of the outstanding order
were made a part of the record to the scope inquiry. Documents
that were not presented to the Department, or placed by it on
the record, do not constitute part of the administrative record
of this scope proceeding.
The products
covered by this order are:
certain
scented or unscented petroleum wax candles made from petroleum
wax and having fiber or paper-cored wicks. They are sold in
the following shapes: tapers, spirals, and straight-sided
dinner candles; rounds, columns, pillars, votives; and various
wax-filled containers.
See Antidumping
Duty Order: Petroleum Wax Candles from the PRC, 51 FR 30686,
August 28, 1986. The order was further clarified in a 1986
scope ruling which stated that:
Your tapers
have a hand-painted figurine molded to the candle, which could
not be removed without damage to the taper. This different
physical characteristic precludes inclusion of these candles
in the scope of the order.
See Letter
from the Department to Global Marketing Services, October 30,
1986. The Notice to the U.S. Customs Service (Customs) from
the Department concerning the ruling further states:
The Department
of Commerce has determined that certain novelty candles, such
as Christmas novelty candles, are not within the scope of
the antidumping duty order on petroleum-wax candles from the
People’s Republic of China (PRC). Christmas novelty candles
are candles specially designed for use only in connection
with the Christmas holiday season. This use is clearly indicated
by Christmas scenes and symbols depicted in the candle design.
Other novelty candles not within the scope of the order include
candles having scenes or symbols of other occasions (e.g.,
religious holidays or special events) depicted in their designs,
figurine candles, and candles shaped in the form of identifiable
objects (e.g., animals or numerals).
See CIE
N-2l2/85, September 21, 1987.
Candle Set
Number 154
The candles
in set number 154 are figurine candles that can clearly be identified
as Christmas novelty candles due to the Santa Claus figurine.
We note that the Notice to Customs on September 21, 1987, clearly
states that novelty candles are not within the scope of the
order on petroleum wax candles from the PRC when their "use
is clearly indicated by Christmas scenes and symbols depicted
in the candle design." Further, we note that the Global Marketing
scope ruling clearly states that figurine candles are outside
the scope of the order when the removal of the figurine would
cause damage to the taper. After physical inspection of the
candles in this set, the Department established that, contrary
to the National Candle Association’s claim, the Santa Claus
figurine on the taper cannot be removed without damage to the
taper. Therefore, we conclude that these candles clearly meet
the description of merchandise excluded from the scope of the
order on petroleum wax candles from the PRC.
Candle Set
Number 155
The candles
in set number 155 are red spirals, helically trimmed in gold
paper. According to the language of the original order, spiral-shaped
candles are within the scope of the merchandise covered by the
order. Despite A.J. Cohen’s claim that these are Christmas novelty
candles and therefore are excluded, we note that the language
of the Customs Notice discussed above describes Christmas candles
as candles whose "use is clearly indicated by Christmas scenes
and symbols depicted in the candle design." After carefully
viewing the candles in this set, we do not believe that there
is anything in their design which clearly depicts Christmas
scenes or symbols. Moreover, the gold paper can be removed from
the candle without damage to the spiral.
Therefore,
because the candles in set number 155 meet the physical criteria
of merchandise within the scope of the order and do not have
any exclusionary characteristics, the Department concludes that
the candles in set number 155 are within the scope of the order
on petroleum wax candles from the PRC.
RECOMMENDATION
That the
Department find the candle set number 154 imported by A.J. Cohen
outside of the scope of the order on petroleum wax candles from
the PRC, as these candles meet the physical characteristics
of candles previously found outside of the scope of the order.
_____√_____Agree
___________ Disagree
That the
Department find the candle set number 155 imported by A.J. Cohen
within the scope of the order on petroleum wax candles from
the PRC because the candles in that set do not meet any of the
physical criteria attributed to candles outside the scope of
the order.
_____√_____Agree
___________ Disagree
If you agree,
we recommend sending the attached letter to interested parties.
_____√_____Agree
___________ Disagree
Joseph A.
Spetrini
Deputy Assistant Secretary for Compliance
6/6/94
Date
Attachment
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