By Certified Mail, Return
Receipt Requested OADC : JRF
To All Interested Parties:
On April 14, 1994, West
Coast Liquidators, Inc. (WCL), requested that the Department of Commerce (the
Department) issue a scope ruling on whether two types of candles are outside
the scope of the antidumping duty order on candles from the Peopleís Republic
In accordance with 19 CFR
353.29(b) (1994) of the Departmentís regulations, the Department has determined
that no formal inquiry is warranted. Further, under 19 CFR 353.29(i)(1), the
Department has determined that WCLís candles are outside the scope of the order
on candles from the PRC. The enclosed memorandum contains the Departmentís analysis.
We will notify the U.S.
Customs Service of this decision.
If you have any questions,
please contact Jay Field at (202) 482-5222 or Wendy Frankel at (202) 482-5253.
Laurie A. Lucksinger
Director, Division I
Office of Antidumping Compliance
OADC : JRF
Deputy Assistant Secretary for Compliance
A. Kuga, Director
Office of Antidumping Compliance
Scope Ruling - Antidumping Duty Order on Petroleum Wax Candles From the
Peopleís Republic of China (A-570-504); West Coast Liquidators, Inc.
Pursuant to 19 CFR 353.29(i)(1)
(1994), the Department of Commerce (the Department) has determined that the
descriptions of the product contained in the petition, the Departmentís and
the International Trade Commissionís (the ITC) determinations, and the antidumping
duty order are dispositive, and that the holiday figurine taper candles and
the Christmas holiday object candles submitted by West Coast Liquidators, Inc.
(WCL), are not within the scope of the antidumping duty order on Petroleum Wax
Candles from the Peopleís Republic of China, 51 FR 30686, August 28, 1986.
On April 14, 1994, WCL requested
that the Department initiate a scope review to determine whether two types of
candles, the "holiday figurine candle" and the Christmas "holiday
object candle", imported from the Peopleís Republic of China (PRC), are
covered by the scope of the antidumping duty order on candles from the PRC (WCL
Request). WCL submitted samples of both products with its request.
The regulations governing
the Departmentís antidumping scope determinations can be found at 19 CFR 353.29.
On matters concerning the scope of an antidumping duty order, our normal bases
for determining whether a product is included within the scope of the order
are the descriptions of the product contained in the order, the determinations
of the Secretary and the ITC, the initial investigation, and the petition. See
19 CFR 353.29(b) and (i)(1).
Pursuant to 19 CFR 353.29
(i)(1), the Department has determined that the descriptions of the product contained
in the petition, the Departmentís and the ITCís determinations, the antidumping
duty order, and subsequent scope determinations are dispositive and that no
formal inquiry is warranted.
Documents, and parts thereof,
from the underlying investigation deemed relevant by the Department to the scope
of the outstanding order were made part of the record of this determination.
Documents that were not presented to the Department, or placed by it on the
record, do not constitute part of the administrative record for this scope determination.
WCLís Christmas "holiday
object candles" consist of four-inch tall candles in the shape of a Santa
Claus, a Christmas tree, and a toy soldier. These candles are hand-painted with
seven colors for the Santa Claus candle, five colors for the Christmas tree
candle, and nine colors for the toy soldier candle. They are wrapped in clear
cellophane and tied with a red ribbon bow. See WCL Request at 10.
WCLís "holiday figurine
candles" consist of two ten-inch red, white, green, black or orange tapers
packaged as a set. Each taper has a ring of white petroleum wax shaped with
various decorative hand-painted figurines, affixed at the midpoint of the taper.
The Christmas holiday figurines consist of snowmen, Christmas trees, a Santa
Claus, bells, and pinecones. These figurines are attached to red, white or green
tapers, and each is packaged in a red, green, and gold box labeled 10"
HOLIDAY EMBOSSED CANDLES with small green triangles "representing Christmas
trees" and "a gold Christmas wreath design prominently displayed on
the top of the packages." See WCL Request at 8. The Halloween holiday figurines
consist of jack-oí-lantern pumpkins, ghosts, witches, and black cats affixed
to orange and black tapers, and are packaged in a black, orange, and white box,
labeled 10" HALLOWEEN TAPER CANDLES, with a "haunted house" and
jack-oí-lantern pumpkin design on the front, sides, and back. Id.
The Department defined the
scope of the original order as:
[C]ertain 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
Antidumping Duty Order:
Petroleum Wax Candles from the Peopleís Republic of China, 51 FR 30686 (August
Also relevant to the present
scope issue is a notice issued to the United States Customs Service in connection
with a July 1987 scope determination, which 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 Peopleís 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-212/85, September
21, 1987; Letter from the Director, Office of Compliance, to Burditt, Bowles
& Radzius, Ltd., July 13, 1987.
Citing the Departmentís
CIE N-212/85 to the Customs Service, WCL argues that the "holiday object
candles" are not covered by the scope of the order because candles shaped
in the form of identifiable objects have been clearly stated to be outside the
scope of the order.
Physical examination of
the "holiday object candles" reveals them to be candles shaped in
the form of identifiable objects, namely a Santa Claus, a Christmas tree, and
a toy soldier, and therefore, pursuant to the Departmentís 1987 scope determination,
this places them outside of the scope of the order.
Also pertinent to WCLís
request is a previous scope inquiry which states:
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 (emphasis added).
WCL argues that the "holiday
figurine candles" are similar to the candles in the Global Marketing ruling
in a number of important ways: that "they consist of a taper candle with
a hand-painted holiday figurine firmly molded on a ring onto the candle"
and that "the figurine can not [sic] be removed without damaging the candle".
See WCL Request at 19.
Physical examination of
the "holiday figurine candles" reveals that the figurines cannot be
removed from the tapers without shattering the figurine and causing damage to
the actual tapers. When the figurines are removed, the tapers are damaged because
they are stripped of their wax coating in the area vacated by the figurines,
and the tapers maintain a small bulge where the rings had been attached. The
damage to the candles after the removal of the figurines from the tapers "precludes
the inclusion of these candles within the scope of the order" (Letter to
Global Marketing Services, op. cit.). We conclude that WCLís "holiday figurine
candles" are congruent with the description of merchandise outside the
scope of the order.
Because the product description
provides a sufficient basis for making a determination, and the issue can be
resolved by making reference to the descriptions of the product contained in
the petition, the final determinations of the Secretary and the ITC, including
scope determinations, we recommend determining that no formal inquiry is warranted.
We recommend the Department
find the "holiday object candles" and "holiday figurine candles"
outside the scope of the antidumping duty order on petroleum wax candles, as
they clearly meet the description of merchandise excluded from the scope of
If you agree, we recommend
sending the attached letter to interested parties.
Joseph A. Spetrini
Deputy Assistant Secretary