On August 21, 2009, the Department of Commerce (“Department”) published a Federal Register Notice requesting comments on whether novelty candles should be included within the scope of the antidumping order on Petroleum Wax Candles from China or whether they should continue to be excluded. Comments are due on September 16, 2009.

In the past, the Department has typically considered “novelty” candles as outside of the scope of this order and not subject to antidumping duties. These currently include Christmas novelty candles specially designed for use only in connection with the Christmas holiday season. 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).

The Department has proposed two options either of which could have a serious impact on companies currently importing novelty candles, as previously excluded merchandise could now be considered subject to the AD Order with antidumping deposits as high as 108.30%. The Department has requested comments from importers and other interested parties by September 16, 2009. Parties will also have an opportunity to file briefs after the Department issues its preliminary decision.

We urge any company with a continuing interest in novelty candles from the PRC to participate in this comment and briefing process. Failure to participate in Commerce’s proceeding will also prevent an interested party from challenging Commerce’s new scope methodology in court should such an action become necessary.