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Scope of AD Duties on Chinese Candles to Stand After Importer Settles Case

After years of litigation, a "clarification" to the scope of antidumping duties on petroleum wax candles from China once deemed "overbroad" by the Court of International Trade will apparently stand. A candle importer, Trade Associates Group, agreed to dismiss its lawsuit with prejudice, meaning it can't bring the same challenge again. The National Candle Association, which represents U.S. candle manufacturers, claimed victory in a news release.

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With the Court of International Trade having "upheld" the scope of petroleum wax candles duties, U.S. manufacturers and their suppliers will continue to be protected "from the unfair dumping of inexpensive petroleum wax candle imports from China," the news release said. The case had revolved around a dispute over whether the scope of AD duties covered all candles, regardless of shape, except novelty candles specifically exempt from AD duties.

CIT had twice in 2014 and 2015 questioned Commerce's interpretation as it applied to a scope ruling on 200 types of candles imported by Trade Associates Group (see 1512300043 and 14020402). The court had said Commerce's 2011 interpretation that the candles applied to all shapes (see 11080221), not just a limited set of shapes listed in the scope, expanded the scope beyond its original intention

A May 7 court filing said CIT dismissed the case after Trade Associates "filed a stipulation of dismissal signed by all parties who have appeared in this action." Carol Freysinger, executive vice president of the National Candle Association, said "this is a win for American-made candles" and the ruling should "send a clear message to anyone trying to circumvent the antidumping duty."

The lawyer who represented Trade Associates Group in the case, Thomas O'Donnell of Clark Hill, said the settlement benefits both sides of the dispute. "Our client takes no position on the current scope of the order. We believe we resolved this action in an advantageous manner for Trade Associates Group, and that this case is a win-win situation for all parties to the suit," he said.