San Francisco Candle Co., Inc. v. United States

265 F. Supp. 2d 1374, 27 Ct. Int'l Trade 704, 27 C.I.T. 704, 25 I.T.R.D. (BNA) 1505, 2003 Ct. Intl. Trade LEXIS 52
CourtUnited States Court of International Trade
DecidedMay 14, 2003
DocketSLIP OP. 03-51; 01-00088
StatusPublished
Cited by3 cases

This text of 265 F. Supp. 2d 1374 (San Francisco Candle Co., Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Francisco Candle Co., Inc. v. United States, 265 F. Supp. 2d 1374, 27 Ct. Int'l Trade 704, 27 C.I.T. 704, 25 I.T.R.D. (BNA) 1505, 2003 Ct. Intl. Trade LEXIS 52 (cit 2003).

Opinion

OPINION

POGUE, Judge.

In San Francisco Candle Co. v. United States, 26 CIT-, 206 F.Supp.2d 1304 (2002), this Court remanded aspects of the determination by the United States Department of Commerce (“Commerce”) in Final Scope Ruling; Antidumping Duty Order on Petroleum Wax Candles from the People’s Republic of China (A-57050k); SFCC, Compl. App. III (Feb. 12, 2001) {“Final Scope Ruling”). Candles 1, 4, 9, 11, and 12 were remanded to Commerce pursuant to the agency’s request. Candles 2, 3, 5, 8, and 10 were remanded *1376 with the instruction that the agency should reconsider and clarify its reasoning as to whether the subject candles fell within the scope of the Order. 1 The Court now reviews the results of the remand as presented in Commerce’s Final Results of Remand Redetermination, San Francisco Candle Co., Inc. v. United States (Aug. 20, 2002) (“Remand Determ.”). This Court has jurisdiction under 28 U.S.C. § 1581(c) (2000) and 19 U.S.C. § 1516a(a)(2)(B)(vi) (2000).

Background

The antidumping duty order on petroleum wax candles from the People’s Republic of China, issued in August 1986, covers “certain scented or unscented petroleum wax candles made from petroleum wax and having fiber or paper-cored wicks ... sold in the following shapes: tapers, spirals, and straight-sided dinner candles; rounds, columns, pillars, votives; and various wax-filled containers.” Antidumping Duty Order: Petroleum Wax Candles from the People’s Republic of China, 51 Fed.Reg. 30,686, 30,686 (Dep’t Commerce Aug. 28, 1986) (“Candles Order” or “Order”). Certain novelty candles, including Christmas holiday candles, are excluded from the scope of the Order. In clarifying the scope of the Candles Order, Commerce stated that

[t]he 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 or 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).

Dep’t of Commerce Scope Clarification Notice, Petroleum-Wax Candles from the People’s Republic of China — Case Number A-570-50I, Pl.’s Ex. 4 at 1 (“Scope Clarification”); see also Customs Info. Exch. Notification, Petroleum-Wax Candles from the People’s Republic of China — Anti- dumping — A-570-504, CIE N-212/85 (Sept. 21, 1987).

In November 2000, San Francisco Candle Company (“SFCC”) requested that Commerce issue a scope ruling in connection with twelve candles. See Letter from Suda Tam, SFCC, to Sean Carey, Dep’t of Commerce, Int’l Trade Admin., Antidump-ing and Countervailing Enforcement Group III, Compl. App. I at 2 (Nov. 17, 2000) (“Scope Ruling Request”). Commerce found eleven of the twelve candles *1377 to be within the scope of the Candles Order. See Final Scope Ruling, Compl. App. III at 4-7. SFCC challenged the results of the Final Scope Ruling in this Court pursuant to 28 U.S.C. § 1581(c), claiming that all of the candles submitted in the Scope Ruling Request were novelty candles that fell outside the scope of the Candles Order.

Commerce requested that candles 1, 4, 9, 11, and 12 be remanded for reconsideration by the agency, but asserted that candles 2, 3, 5, 6, 8, and 10 were correctly found to be within the scope of the Candles Order. SFCC I, 26 CIT at-, 206 F.Supp.2d at 1308; Def.’s Resp. Pl.’s Mot. J. Agency R. at 2-3. The Court affirmed Commerce’s finding with respect to Candle 6 and remanded candles 1, 4, 9, 11, and 12 for reconsideration by the agency. 2 SFCC 1, 26 CIT at-, 206 F.Supp.2d at 1311, 1317.

The Court also remanded candles 2, 3, 5, 8, and 10, directing the agency to (1) assess whether the requirement that a design be visible from multiple angles is properly applied to holiday novelty candles, SFCC I, 26 CIT at-, -, 206 F.Supp.2d at 1313-14, 1316-17; (2) refrain from considering whether a design will easily melt or burn away, id. at 1314, 1316; (3) explain whether its “minimally decorative” standard requires that a holiday design be both easily discernable and visible from multiple angles in order to qualify a candle as a holiday novelty candle, id. at 1315-17; and (4) consider the combined effects of colors and holiday designs in determining whether the decorations rendered the candles “specially designed for use only in connection with the Christmas holiday season.” Id. at 1316-17 (quoting Scope Clarification, Pl.’s Ex. 4 at 1). Familiarity with the Court’s earlier opinion is presumed.

Standard of Review

This Court will uphold an agency determination unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(B)(i).

Discussion

I. Scope Determinations

Commerce has inherent authority to define and clarify the scope of an anti-dumping duty investigation. See Koyo Seiko Co. v. United States, 17 CIT 1076, 1078, 834 F.Supp. 1401, 1403 (1993), affd, 31 F.3d 1177, 1994 WL 374776 (Fed.Cir. 1994). However, “while [Commerce] may interpret those orders, it may not change them.” Ericsson GE Mobile Communications, Inc. v. United States, 60 F.3d 778, 782 (Fed.Cir.1995) (citing Smith Corona Corp. v. United States, 915 F.2d 683, 686 (Fed.Cir.1990)).

*1378 In determining whether a product falls within the scope of an order, Commerce looks to “[t]he descriptions of the merchandise contained in the petition, the initial investigation, and the determinations of the Secretary (including prior scope determinations) and the Commission.” 19 C.F.R. § 351.225(k)(1) (2002).

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265 F. Supp. 2d 1374, 27 Ct. Int'l Trade 704, 27 C.I.T. 704, 25 I.T.R.D. (BNA) 1505, 2003 Ct. Intl. Trade LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-francisco-candle-co-inc-v-united-states-cit-2003.