Slip Op. 03-51
United States Court of International Trade
SAN FRANCISCO CANDLE COMPANY, INC.,
Plaintiff,
v. Before: Pogue, Judge
UNITED STATES, Court No. 01-00088
Defendant,
and
NATIONAL CANDLE ASSOCIATION,
Defendant-Intervenor.
[Agency determination after remand sustained in part and reversed
in part.]
Decided: May 14, 2003
Sandler, Travis & Rosenberg, P.A. (Philip S. Gallas, Gregory S.
Menegaz, Mark R. Ludwikowski) for Plaintiff.
Robert D. McCallum, Jr., Assistant Attorney General, David M.
Cohen, Director, Reginald T. Blades, Jr., Senior Trial Counsel,
Commercial Litigation Branch, Civil Division, U.S. Department of
Justice, Glenn R. Butterton, Senior Attorney, Office of the Chief
Counsel for Import Administration, U.S. Department of Commerce, Of
Counsel, for Defendant.
Barnes & Thornburg (Randolph J. Stayin) for Defendant-Intervenor.
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
Court No. 01-00088 Page 2
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-570-
504); 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
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).
1
The candles at issue in the Remand Determination are the
following:
1. Christmas Holly Leaf with Berries Candy Cane Pillar (Item
No. 03433)
2. Santa Claus Motif Candy Cane Pillar (Item. No. 13403)
3. Christmas Tree with Star Candy Cane Pillar (Item. No. 73633)
4. Christmas Holly Leaf Pillar (Item No. 83136)
5. Christmas Sock Pillar (Item No. 83036)
8. Santa Claus Candy Cane Column (Item No. 00016)
9. Christmas Holly Leaf with Berries Candy Cane Column (Item
No. 00016)
10. Christmas Tree with Star Candy Cane Column (Item No. 00016)
11. Christmas Holly Leaf with Berries Pillar (Item No. 166406)
12. Christmas Patchwork Pillar and Christmas Patchwork Square
(Item No. 15736)
The opinion will refer to the candles by the assigned numbers
noted above.
Court No. 01-00088 Page 3
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-570-504, Pl.’s
Ex. 4 at 1 (“Scope Clarification”); see also Customs Info. Exch.
Notification, Petroleum-Wax Candles from the People’s Republic of
Court No. 01-00088 Page 4
China - Antidumping - 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., Antidumping and
Countervailing Enforcement Group III, Compl. App. I at 2 (Nov. 17,
2000) (“Scope Ruling Request”). Commerce found eleven of the
twelve candles 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
2
The decorative patterns on candles 1, 4, 9, 11, and 12 include
holly leaf and berry designs. Commerce originally determined the
holly designs to be “generic to the winter season” and therefore
ineligible for exclusion from the Candles Order as holiday
novelty candles. Final Scope Ruling, Compl. App. III at 4-7 ¶¶
1, 4, 9, 11, 12. However, this determination was contrary to
Springwater Cookie & Confections, Inc. v. United States, 20 CIT
Court No. 01-00088 Page 5
SFCC I, 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.
1192, 1195-96 (1996), in which this Court stated that holly
sprigs “are indeed a symbol associated with Christmas,” and
inconsistent with other Candles Order rulings in which Commerce,
following Springwater, concluded that the holly leaf and berry
design is a symbol of Christmas that qualifies a candle for the
holiday novelty exception. See Final Scope Ruling, JCPenney
Purchasing Corp., Pl.’s Ex. 8 at 5-8 (May 21, 2001); Final Scope
Ruling, Avon Products, Inc., Def.-Int.’s Ex. 6 at 4 (May 8,
2001); Final Scope Ruling, Dollar Tree Stores, Inc. at 3-4 (Apr.
9, 1997). The Court granted Defendant’s request for remand, and
further instructed Commerce to consider both the cube and pillar
versions of candle 12, the Christmas Patchwork candle. SFCC I,
26 CIT at __, 206 F. Supp. 2d at 1311.
Court No. 01-00088 Page 6
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 antidumping duty investigation. See Koyo Seiko Co. v.
United States, 17 CIT 1076, 1078, 834 F. Supp. 1401, 1403 (1993),
aff’d, 31 F.3d 1177 (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)).
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). If the descriptions are dispositive, Commerce issues the
scope ruling based on this information alone. See id. at §
351.225(k)(2); Nitta Indus. Corp. v. United States, 997 F.2d 1459,
Court No. 01-00088 Page 7
1461 (Fed. Cir. 1993).3
II. The Candles Order
In making a scope determination under the Candles Order,
Commerce first determines whether the candle is formed in a shape
covered by the Order. If so, Commerce then considers whether the
candle may be excluded from the Order as a novelty candle.4 Among
the excluded novelty candles are holiday candles, including
Christmas candles. Holiday novelty candles fall outside the scope
of the Order when they are “specially designed for use only in
3
If a determination cannot be made using only the descriptions,
Commerce initiates a scope inquiry and considers the following
five factors: “(i) [t]he physical characteristics of the product;
(ii) [t]he expectations of the ultimate purchasers; (iii) [t]he
ultimate use of the product; (iv) [t]he channels of trade in
which the product is sold; and (v) [t]he manner in which the
product is advertised and displayed.” 19 C.F.R. § 351.225(k)(2);
see also Diversified Prods. Corp. v. United States, 6 CIT 155,
162, 572 F. Supp. 883, 889 (1983). In the instant case, the
criteria of 19 C.F.R. § 351.225(k)(1) are dispositive, and no
consideration of the criteria enumerated in 19 C.F.R. §
351.225(k)(2) is required.
4
As noted earlier, the following are excluded from the scope of
the Candles Order as novelty candles:
a) “Christmas novelty 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;”
b) “Candles having scenes or symbols of other occasions
(e.g., religious holidays or special events) depicted
in their designs;”
c) “Figurine candles;” and
d) “Candles shaped in the form of identifiable objects,
(e.g., animals or numerals).”
Scope Clarification, Pl.’s Ex. 4 at 1.
Court No. 01-00088 Page 8
connection with the Christmas holiday season,” and this use is
“clearly indicated by Christmas scenes or symbols depicted in the
candle design.” Scope Clarification, Pl.’s Ex. 4 at 1.
The holiday novelty exclusion is narrowly defined, requiring
specific and easily recognizable holiday images. See SFCC I, 26
CIT at __, 206 F. Supp. 2d at 1310; Russ Berrie & Co. v. United
States, 23 CIT 429, 440, 57 F. Supp. 2d 1184, 1194-95 (1999);
Springwater Cookie & Confections, Inc. v. United States, 20 CIT at
1197 (“[C]olors per se will not exempt a candle from the scope of
the antidumping duty order.”). In determining whether a candle
falls within the holiday novelty exception, Commerce considers all
of the candle’s characteristics in combination. See, e.g., Remand
Determ. at 7-8.
The Remand Determination contains a discussion of the
standards Commerce applies in determining whether a candle
qualifies as a holiday novelty candle that is excluded from the
scope of the Order. Commerce states that a candle’s “holiday- or
event-specific design must be large enough or proportionately
situated on the candle as to render it easily recognizable from
most perspectives.” Remand Determ. at 7. In response to the
Court’s inquiry in SFCC I, the agency states that its ruling in
Final Scope Ruling, Endar Corp. (Jan. 11, 2000) (“Endar Ruling”)
did not promulgate a two-element standard requiring that a design
be both easily recognizable and visible from multiple angles in
Court No. 01-00088 Page 9
order to qualify a candle for the novelty candle exception. SFCC
I, 26 CIT at __, 206 F. Supp. 2d at 1315-16; Remand Determ. at 7-8
(“[T]he Department does not interpret the ruling on Endar’s alleged
bamboo candle to require per se that the candle meet both standards
discussed in that ruling (whether the design is easily recognizable
and visible from most angles) in order to qualify for the novelty
candle exception.”). Commerce emphasizes in its Remand
Determination that the agency “takes into consideration the
totality of the candle (the combination of the colors, patterns,
and images),” and states that “[the Endar] guidelines were designed
to simply help the Department interpret the exclusion narrowly.”
Remand Determ. at 8.
Neither Commerce’s Remand Determination nor its earlier
Candles Order rulings offer a clear definition of the “minimally
decorative” standard. However, a review of the Remand
Determination and other rulings indicates that in determining
whether a design is “minimally decorative,” the agency considers
whether the design is easily seen or is easily discernable, the
size of the design relative to the size of the candle, the location
of the design on the candle, and whether the design is located in
only one place on the candle. See Endar Ruling at 5 (noting that
the bamboo design on the subject candle was “not easily
discernable”); Remand Determ. at 7 (indicating that a design is
“minimally decorative” when it is not “large enough or
Court No. 01-00088 Page 10
proportionately situated on the candle” that it may be seen
easily); Final Scope Ruling, Interpro International at 7 (Sept. 26,
2002) (holding that a design was “minimally decorative” because it
was “small and/or singularly placed on the candle”) (“Interpro
Ruling”). Additionally, it appears that Commerce may inquire
whether a design is “identifiable from most angles” as part of its
“minimally decorative” standard. See, e.g., Endar Ruling at 5
(finding that the subject candle’s design was “minimal[ly]
decorative” because it was “not easily discernable” and “not
visible from all sides”); but see Remand Determ. at 9 (suggesting
that the “identifiable from most angles” standard is separate from,
rather than a component of, the “minimally decorative” standard);
Interpro Ruling at 7-8 (stating that “[i]f the . . . holiday-
specific design is not identifiable from most angles, or if the
design or characteristic is minimally decorative, the Department
may determine that the candle does not qualify for exclusion from
the Order under the novelty candle exception.”).
In SFCC I, the Court also asked Commerce to clarify whether
the requirement that a design be visible from multiple angles,
which was previously applied only to candles allegedly formed in
the shape of identifiable objects, is also properly applied to
holiday novelty candles. See 26 CIT at __, 206 F. Supp. 2d at
1313-14. In its Remand Determination, the agency states that
“[s]tarting with the SFCC Ruling, the Department recognized that
Court No. 01-00088 Page 11
the ‘identifiable from most angles’ benchmark was appropriately
applied . . . to candles allegedly associated with a recognized
holiday as well as to candles allegedly in the shapes of
identifiable objects.” Remand Determ. at 9. Commerce explains
that application of the standard to both categories of novelty
candles is proper because “these characteristics both fall under
one and the same exception to the scope of the Order: the novelty
candle exception.” Id. at 9-10. The agency also asserts that
examining candles in light of the “identifiable from most angles”
standard helps to “ensure[] that the candles for which the novelty
candle exception is requested truly meet the requirements of this
narrowly-construed exception to the scope of the Order.” Id. at 9.
In summary, it appears that Commerce may find a candle design
to be “minimally decorative” and therefore within the scope of the
Order when the candle’s holiday-specific design cannot easily be
seen or discerned, when the design is very small in relation to the
size of the candle, or when the design is “singularly located” on
the candle. Commerce also may find that a holiday candle is within
the scope of the Order when its design is not easily recognizable
as a holiday-specific image, or when the design is not visible or
identifiable from most angles. Commerce evaluates candles on a
case-by-case basis, and looks at the totality of the candle’s
design characteristics in order to assess the combined effects of
colors and design patterns.
Court No. 01-00088 Page 12
The Court now proceeds to evaluate Commerce’s application of
these standards to the candles at issue. Commerce’s application of
its legal standards will be upheld if the record can be reasonably
interpreted to support the agency’s decisions.
A. Candles 1, 2, and 3
Candles 1, 2, and 3 are pillar candles. Each has diagonal
“candy cane” pattern stripes on the body of the candle and a
holiday image imprinted into the top surface of the candle. Candle
1 has red and white stripes and a holly leaf and berry image
printed on the top surface. Similarly, Candle 2 has red and white
stripes and an image of Santa Claus printed on top. Candle 3 has
red, white, and green stripes and an image of a Christmas tree with
a star printed on top. Upon reconsideration, Commerce determined
that candles 1 and 3 fall outside the scope of the Order, while
candle 2 is covered by the Order.
In its reconsideration of candle 2, Commerce stated that the
image imprinted on the top surface is only “‘minimally decorative’
and can only be viewed when looking down at the top surface of the
candle.” Remand Determ. at 14. Commerce opined that this
“singular image[] [is] not substantial enough to transform” this
candle into an exempt holiday novelty candle. Id. Additionally,
although Commerce acknowledged the red and white “peppermint candy”
color pattern on the candle, id. at 17, the agency concluded that
Court No. 01-00088 Page 13
“even when taking into consideration the combined effect of the
colors, patterns, and images on these candles, the result is not
sufficient to qualify these candles for the holiday novelty
exception.” Id.
In its analysis of candles 1 and 3, Commerce stated as
follows:
Although the small images of the holly leaves and berries
and the Christmas tree with a star, [sic] are, when
viewed in isolation, minimally decorative and not easily
recognizable as holiday images from most angles, the
combination of these images with other designs
characteristic of Christmas, such as the red, green, and
white color combination, indicate that these candles were
“specially designed for use in connection with the
Christmas holiday season.” Unlike candles 2, 8, 9, and
10, candles 1 and 3 have more than a “peppermint candy”
striped effect; candles 1 and 3 also have a green stripe,
which taken in concert with the other colors and images,
more closely identifies these candles as designed for the
Christmas holiday season.
Remand Determ. at 19-20.
The Court agrees that in the case of candle 3, the red, white,
and green stripes and the Christmas tree with star image closely
identify the candle with the Christmas holiday. Therefore, the
Court finds that Commerce’s decision to exclude candle 3 from the
scope of the Candles Order is supported by substantial evidence.
However, candle 1 does not have a green stripe. Rather,
candle 1, like candle 2, has only red and white striping. In
addition to the red and white diagonal stripes, candle 1 bears an
image of holly leaves and berries and candle 2 bears an image of
Santa Claus. Both holly leaves and berries and Santa Claus are
Court No. 01-00088 Page 14
images closely associated with the Christmas holiday. The images,
although present only on the tops of the candles, are easily
identifiable as holiday images and occupy significant portions of
the top surfaces of the candles.5 Moreover, as the candles stand
only 2 7/8 inches to 3 inches tall, the images are distinctly
visible from most angles and appear to be the central design
element of the candle. Finally, the red and white colors and
“candy cane” striping, in combination with the Santa Claus or holly
leaves and berries designs, strengthen the identification of these
candles with the Christmas holiday.
In summary, candles 1 and 2 have clearly identifiable, highly
visible holiday-specific images, as well as color combinations and
patterns that strengthen the identification with the Christmas
holiday. As such, these candles meet the requirements set out in
the Scope Clarification for holiday novelty candles that are
excluded from the scope of the Order. While the Court “may not
substitute its judgment for that of the [agency] when the choice is
between two fairly conflicting views,” Timken Co. v. United States,
5
Candles 1 and 2 measure approximately 2 7/8 inches in diameter.
Approximately 1/8 to 3/16 of the diameter at the outer edge of
the candle’s top surface is occupied by the red and white striped
outer layer, leaving a red center section that measures
approximately 2 3/4 to 2 11/16 inches in diameter, into which the
holiday specific images are set. The holly sprig on the top
surface of candle 1 measures approximately 1 1/2 inches long at
its longest point and 1 7/8 inches wide at its widest point. The
Santa Claus image on the top surface of candle 2 measures
approximately 1 7/8 inches long and 1 5/8 inches wide at its
widest point.
Court No. 01-00088 Page 15
26 CIT __, __, 201 F. Supp. 2d 1316, 1319-20 (2002) (internal
citations and quotations omitted), the evidence here supports only
the conclusion that these candles are within the holiday novelty
exception. Consequently, the Court finds that Commerce’s
determination that candle 2 is within the scope of the Order is
neither supported by substantial evidence nor in accordance with
law. The Court therefore reverses Commerce’s determination with
respect to candle 2, and finds candles 1 and 2 to be holiday
novelty candles that are excluded from the scope of the Order.
B. Candles 4 and 5
Candle 4, the Christmas Holly Leaf Pillar, is a dark green
pillar candle with an image of holly leaves and berries sketched in
white on one side of the candle. Candle 5, the Christmas Sock
Pillar, is a white pillar candle with an image of a Christmas
stocking sketched in red on one side of the candle. The sketched
stocking image also contains an image of a Christmas tree with a
star on the top.
Commerce concluded that both of these candles fall within the
scope of the Candles Order. The agency stated that “the images are
only sketches, are relatively small and are singularly imprinted on
only one surface or side of each candle. Therefore, the respective
images are ‘minimally decorative’ and can only be viewed from one
angle.” Remand Determ. at 19.
Court No. 01-00088 Page 16
Upon examination, the Court notes that if the candle is turned
so that the image faces away, it appears to be simply a solid green
or white pillar.6 Thus, while the decorative images are holiday-
specific, they are “singularly placed” on the candles, see Interpro
Ruling at 7, and not easily seen from most angles. Endar Ruling at
5. As the images meet two of the characteristics of “minimally
decorative” designs, the Court upholds Commerce’s determination
that these candles fall within the scope of the Order.
C. Candles 8, 9, and 10
Candles 8, 9, and 10 are column candles approximately twelve
inches tall. Candle 8, the Santa Claus Candy Cane Column, has red
and white “candy cane” striping and a small image of Santa Claus
imprinted in a circle in one side of the candle. Candle 9, the
Christmas Holly Leaf with Berries Candy Cane Column, has red,
white, and green striping and a small image of a holly sprig
imprinted into one side. Candle 10, the Christmas Tree with Star
Candy Cane Column, has red, white, and green striping and a small
image of a Christmas tree with a star on top imprinted into one
6
Commerce also stated that “we do not believe that these
specific designs are easily recognizable as the holly leaves and
berries and stocking, respectively, that they are alleged to be
because they are only abstract outlines.” Remand Determ. at 19.
As the Court affirms Commerce’s determination that the images are
“minimally decorative” on other grounds, we do not reach the
question whether the images are easily recognizable as holiday
images.
Court No. 01-00088 Page 17
side.
Commerce found candles 8, 9, and 10 to be within the scope of
the Order, stating that “although these candles possess images
related to the Christmas season . . . the designs are ‘minimally
decorative’ and are not easily recognizable as holiday images from
most angles.” Remand Determ. at 13.
The holiday images set into the sides of these columns are
very small and located in only one place on the candle, thus
meeting two of the characteristics considered by Commerce to be
“minimally decorative.” See, e.g., Remand Determ. at 7; Interpro
Ruling at 7. The small holiday images also cannot be seen from
most angles.
The columns are covered in red and white or red, white, and
green striped “candy cane” color patterns. Color patterns may link
candles more closely to the Christmas holiday season, and the Court
notes that Commerce has found red, white, and green striping more
closely associated with the Christmas holiday than red and white
striping alone. In its analysis of candle 3, discussed earlier,
Commerce concluded that the green color in addition to the red and
white stripes and the otherwise “minimally decorative” holiday
image was sufficient to qualify the candle as a holiday novelty
candle. Remand Determ. at 19-20.
In this case, however, Commerce stated that
the small images . . . on one small place on the side of
candles 8, 9, and 10, [sic] are not easily seen when
Court No. 01-00088 Page 18
viewing the candles from most perspectives and,
furthermore, the Department has ruled in the past that
the “peppermint candy” striped design does not relate
specifically to the Christmas holiday. Therefore, the
combined effect of colors and designs does not reach a
level that would qualify these candles for the holiday
novelty exception.
Remand Determ. at 17-18. After examining the candles, the Court
finds that due to the inconspicuousness of the holiday-specific
images, it is reasonable to conclude that even those candles
bearing the additional green stripes cannot qualify as holiday
novelty candles. Therefore, the Court upholds Commerce’s
determination that candles 8, 9, and 10 are within the scope of the
Order.
D. Candles 11 and 12
Candle 11 is a red pillar candle covered with a raised holly
leaf and berry design. Commerce determined that candle 11 falls
within the scope of the Order because the design does not “resemble
a holly sprig in the traditional sense.” Remand Determ. at 19.
The agency stated that
[t]he leaves and berries are scattered around the surface
of the candle, rather than grouped together, as a holly
sprig is normally pictured, and could represent another
type of leaf or berry. In this respect, this candle does
not relate specifically to the Christmas holiday season;
rather, it could be used generically throughout the fall
or winter season.
Id. (internal citation omitted).
The Court finds that the agency’s reasoning in connection with
Court No. 01-00088 Page 19
candle 11 is supported by substantial evidence. The agency asserts
that the holly image closely associated with the Christmas holiday
is the holly sprig, showing the holly leaves and berries grouped
together. Remand Determ. at 11 (“[T]he Department also considers
that, in order for holly leaf and berry design [sic] to qualify a
candle for exclusion from the Order, it must be both explicit and
easily identifiable . . . [T]he holly leaf and berry image must be
readily recognizable as the traditional holly leaf and berry, i.e.,
with the holly leaves and berries grouped together.”). This
reasoning is supported by Springwater, which refers to “sprigs” of
holly as a symbol closely associated with the Christmas holiday.
20 CIT at 1196. Here, the leaves and berries are separated, and it
is not clear that the leaves represent holly leaves. As the candle
does not bear a clearly identifiable specific holiday image, as
required by the Scope Clarification, the agency’s decision to
include it within the scope of the Candles Order is supported by
substantial evidence and in accordance with law.
Finally, Commerce determined that both the pillar and square
versions of Candle 12 are holiday novelty candles and are excluded
from the scope of the Candles Order.7 See Remand Determ. at 20.
7
Plaintiff asserts that the Christmas Patchwork Square is
excluded from the scope of the Order because it is not one of the
enumerated shapes. Pl.’s Partial Opp’n to Def.’s Aug. 20, 2002
Remand Results at 21-23; see also Candles Order, 51 Fed. Reg. at
30,686 (stating that the Order covers candles in the shapes of
“tapers, spirals, and straight-sided dinner candles; rounds,
columns, pillars, votives; and various wax-filled containers”).
Court No. 01-00088 Page 20
These candles are decorated with a variety of images, including
holly leaves and berries, candy canes, evergreen trees, snow-
covered houses, snowflakes, cardinals, stars, reindeer, and
multicolored patterns, arranged in a patchwork design. Commerce
concluded upon reconsideration that the designs and color
combinations of the candles, and particularly the inclusion of a
recognizable holly leaf and berry design and the use of red, white,
and green coloring, provides “identification with the Christmas
holiday.” Id. After examining candle 12, the Court finds that the
agency may reasonably conclude that the combination of designs and
colors indicates that candle 12 is intended for use “only in
connection with the Christmas holiday season.” Scope
Clarification, Pl.’s Ex. 4 at 1. Therefore, the Court affirms
Commerce’s determination that candle 12 is a holiday novelty candle
excluded from the scope of the Order.
Commerce has previously determined that candles in the shapes of
cubes or squares fall within the scope of the Order. See Final
Scope Ruling, Request for Rulings on a Petroleum Wax Candle in
the Shape of a Cube or Square (Mervyn’s, Enesco Corp., and
Midwest of Cannon Falls) (Dec. 9, 1996); see also Final Scope
Ruling, Leader Light Ltd. (Aug. 31, 1998) (finding cube and
square shaped candles to be within the scope of the Order).
Consequently, Plaintiff’s argument is without merit.
Conclusion
In accordance with the foregoing discussion, this Court
reverses Commerce’s determination as to candle 2, and determines
instead that candle 2 is a holiday novelty candle excluded from the
scope of the Candles Order. The Court upholds Commerce’s
determination as to candles 1, 3, 4, 5, 8, 9, 10, 11, and 12.
___________________________
Donald C. Pogue
Judge
Dated: May 14, 2003
New York, New York