CBP Denies Petition to Reclassify Imported Wickless Wax Items
U.S. Customs and Border Protection announced that it has received notice that the National Candle Association1 intends to contest CBP's determination that certain wickless wax items should be classified under HTS heading 9602 instead of under heading 3406. CBP is also providing notice that Port Directors at five ports of entry must notify the NCA when the first of such entries are liquidated.
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The wickless wax items that are the subject of the petition are petroleum based wax products that are in small molded shapes. A majority of these items are imported with a hole drilled into the center of them and can be used as decorative items or for further production as candles.
NCA Petitioned CBP to Reclassify Items Under HTS 3406 with AD Duties
In February 2009, the NCA filed a domestic interested party petition challenging CBP's classification of imported wickless wax items under HTS 9602.00.40, for molded or carved articles of wax, and requesting that CBP reclassify imported wax items under HTS 3406.00.00, which provides for candles, tapers, and the like.
While the 2009 duty rates of both these subheadings is free, the NCA claims that the importers of these products are using this classification as a means of circumventing the antidumping (AD) order on petroleum wax candles from China.2
(The 2011 HTS duty rate for items classified under HTS 9602.00.40 is 1.8%, and items under HTS 3406.00.00 are duty-free, but subject to AD duties if from China.)
CBP Received 6 Comments All in Support of the Petition, but Still Denied It
In January 2010, CBP invited written comments on the petition from interested parties and received six comments all in support of the petitioner’s position that the merchandise should be classified under HTS heading 3406 as candles.
In December 2010, CBP issued HQ H105015, which denied the petition and affirmed its decision that wickless wax items are classified under HTS 9602.00.40 as molded or carved articles of wax. (HQ H105015 is available here)
NCA also Plans CIT Lawsuit on CBP's Classification of Wickless Wax Items
On January 5, 2011, the NCA provided CBP with notice of its intent to contest HQ H105015 in the Court of International Trade. The NCA has identified the following five ports of entry where it intends to challenge CBP’s classification: Los Angeles/Long Beach, California; New York, New York; Savannah, Georgia; Laredo, Texas; and Chicago, Illinois.
Upon application by the NCA to any of the Port Directors of these ports, the Port Director(s) must make available to the NCA information on wickless wax items entered so that the petitioner may determine whether the entry presented frames the issue that it wishes to present to the court. Port Directors at these ports are directed to notify the NCA by mail when the first of such entries is liquidated so that the NCA may file a summons in the CIT to challenge CBP’s classification of the wickless wax items.
1The NCA has previously stated that it represents approximately 150 member companies and that a majority of its members manufacture, produce, or wholesale a like product in the U.S.
2The current China-wide AD duty cash deposit for petroleum wax candles is 108.30%. (See ITT's Online Archives or 09/14/07 news, 07091435, for BP summary.)
(See ITT's Online Archives or 01/06/10 news, 10010615, for BP summary of the NCA's petition.
See ITT's Online Archives or 08/13/10 news, 10081321, for BP summary of the International Trade Administration's AD scope guide for China novelty candles.
See ITT's Online Archives or 09/28/11 news, 10092823, for BP summary of the NCA's comments on the ITA's scope determination, which you will probably need to cite for this notice.)
CBP Contact -- Jean-Rene Broussard (202) 325-0284