By Certified Mail, Return Receipt Requested

To All Interested Parties:

On November 3, 1994, Watkins Incorporated (Watkins) requested that the Department of Commerce (the Department) issue a scope ruling on whether its Watkins pillar candle, model number 5418, is covered by the antidumping duty order on petroleum wax candles from the People’s Republic of China (PRC).

In accordance with 19 CFR 353.29(b) of the Departments regulations, the Department has determined that no formal inquiry is warranted. Further, under 19 CFR 353.29(i)(1), the Department has determined that the Watkins model 5418 pillar candle is outside the scope of the order on petroleum wax candles from the PRC.

Enclosed is a memorandum containing the Department’s analysis. We will notify the U.S. Customs Service of this decision. If you, have any questions, please contact Robert M. James or Wendy J. Frankel, at (202) 482-5222 or (202) 482-5253, respectively.

Sincerely,

Laurie A. Lucksinger
Director, Division I
Office of Antidumping Compliance

Enclosure

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-570-504); Watkins, Incorporated

SUMMARY

On November 3, 1994, Watkins, Incorporated (Watkins) requested that the Department of Commerce (the Department) issue a scope ruling finding that the Watkins model 5418 pillar candle, imported from the People’s Republic of China (PRC), is outside the scope of the antidumping duty order on candles from the PRC (51 FR 30686, August 28, 1986). In accordance with 19 CFR 353.29(b) (1994), we recommend that the Department determine that no formal scope inquiry is warranted. Further, pursuant to 19 CFR 353.29(i)(1), we recommend that the Department determine that the Watkins model 5418 pillar candle is outside the scope of the antidumping duty order.

BACKGROUND

In its November 3, 1994, request for a scope ruling, Watkins maintains that its model 5418 pillar candle (Watkins pillar candle) meets the established criteria for exclusion from the scope of the order covering candles from the PRC. Watkins submitted a sample of the subject candle with its request.

ANALYSIS

The regulations governing the Department’s 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 determination of the Secretary and the International Trade Commission (ITC), the initial investigation and the petition. This determination may take place with or without a formal inquiry. See 19 CFR 353.29(b) and (i) (1).

Pursuant to 19 CFR 353.29(b), the Department has determined that no formal inquiry is warranted to determine whether the Watkins pillar candle is covered by the scope of the order. We have evaluated this request in accordance with 19 CFR 353.29(i)(1) because the descriptions of the products contained in the petition, the final determinations of the Secretary and the ITC, the antidumping duty order, and subsequent scope determinations are dispositive of the issue. Therefore, we have not referred to the additional factors found at section 353.29(i)(2).

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 and are referenced herein. 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.

The Department defined the scope of the original order as:

Antidumping Duty Order: Petroleum Wax Candles from the People’s Republic of China, 51 FR 30686 (August 28, 1986)

Also relevant to the present scope ruling is a notice we issued to the United States Customs Service in connection with a July 1987 scope determination, which states:

See CIE N-212/85, September 21, 1987; Letter from the Director, Office of Compliance, to Burditt, Bowles & Radzius, Ltd., July 13, 1987.

The subject Watkins pillar candle is seven-and-one-half inches tall, and approximately two-and-one-halt inches in diameter. It features a raised-relief, sculptured design depicting a horse-drawn "Watkins" delivery wagon being driven past a farm house, as "elves" dispense gifts from the back. To one side, Santa’s sleigh is shown approaching a covered bridge some distance away. The design is identical to one on a Christmas greeting card offered by this same company.

We agree with Watkins that Christmas and other holiday novelty candles are excluded from the scope of the order, as the Department stated in the July 13, 1987, letter from the Director, Office of Compliance, quoted above. In addition, prior scope decisions have addressed, products similar to the Watkins candle, i.e., a pillar candle incorporating a Christmas holiday design. See, e.g., Recommendation Memorandum, Final Scope Ruling, Success Sales, July 27, 1994 (on file in Room B-099 of the Main Commerce Building). We find that the winter scene, with ‘elves" dispensing gifts from the back of the delivery wagon, coupled with the depiction of Santa Claus, clearly limit this candle for use in connection with the Christmas holiday season. As such, this candle meets the exclusionary characteristics of a holiday novelty candle set forth by the Department in its past scope clarifications.

RECOMMENDATION

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, and subsequent scope determinations, we recommend determining that no formal inquiry is warranted.

_____√_____Agree ___________Disagree

We recommend the Department find the Watkins model 5418 pillar candle outside the scope of the antidumping duty order on petroleum wax candles, as this candle meets the description of a holiday novelty candle, which is excluded from the order.

_____√_____Agree ___________Disagree

If you agree, we will send the attached letter to the interested parties, and will notify the U.S. Customs Service of our determination.

Joseph A. Spetrini
Deputy Assistant Secretary
for Compliance

Attachment