Letter to Chairman Jason Kearns, United States International Trade Commission - Continuing His Commitment To Syracuse's Last Major Candle Maker, Schumer Calls On International Trade Commission To Continue Protecting American Candle Making Businesses -- Like Cathedral Candle; With Current Anti-Dumping Order Due To Sunset Soon, Senator Says Unfairly Traded Candles Cannot Be Allowed To Flood U.S. Market

Letter

Dear Chairman Kearns:

I write in support of the National Candle Association's submissions regarding the U.S. International Trade Commission's (ITC) recently initiated fifth Sunset Review of the Antidumping Duty Order on petroleum wax candles from China. On behalf of candle producers in New York and across the country, I urge the ITC to carefully consider the arguments made by the domestic candle industry to conduct an expedited review of this Duty Order, as well as to retain the Order to ensure a level playing field for domestic candle producers.

America's religious candle making industry has its origins in Syracuse, New York. Since 1897, the family-owned and operated Cathedral Candle Company has produced candles in Syracuse for many of America's churches nationwide. While the company has invested in improved technology and grown its business over time, Cathedral Candle's original factory remains the core of its expanded manufacturing facility and currently employs 70 workers on Kirkpatrick Street.

Cathedral Candle, a member of the National Candle Association, has informed me that the antidumping Duty Order on imported petroleum wax candles from China protects the business from economic harm and loss of market share, and that it has been vital to their continued presence and expansion in New York. China's candle industry is large and export-oriented, and the Chinese government has targeted the sector for growth through measures aimed at boosting candle exports. The country's candle manufacturers are eligible for a 13% export rebate, the highest export rebate currently available in China. At the same time, the Chinese government has also set a minimum production level for their domestic petroleum industry, from which petroleum wax candles are derived.

According to the National Candle Association, candle exporters in China continue to attempt to evade this Duty Order, often through illegal transshipment. It is my understanding that U.S. candle producers have seen shipping boxes of candles made in factories in China with false country-of-origin labels. These harmful circumvention measures have the effect of undermining the Order, eroding the critical protections it provides for American candle manufacturers -- like Cathedral Candle -- and their workers.

Furthermore, recent trends in candles imported from China into the European Union (EU) and Mexico may be indicative of the likelihood of increased imports into the U.S. market if the existing Duty Order is not maintained. Since the EU has revoked its antidumping duty order against candles from China in 2015, European candle producers have seen a significant increase in imported candles, as well as severe price depression. Mexico similarly revoked its own antidumping order at the end of 2011, and the country has experienced a surge in candle imports from China of more than 600% over the last decade.

The National Candle Association cites these aforementioned predatory trade practices and concerns as evidence that the revocation of the Duty Order would significantly harm the domestic industry and, at minimum, allow imports to surge to previously seen levels. We cannot allow unfair foreign business tactics to undermine U.S. candle manufacturers and their workers, particularly as it is increasingly difficult for small companies like Cathedral Candle to compete with larger foreign competitors. These efforts to protect the domestic industry from predatory trade practices are even more critical as U.S. manufacturers continue to weather and recover from this unprecedented economic crisis.

For these reasons, I respectfully urge the ITC to consider the domestic candle industry's request to conduct an expedited Sunset Review of the existing Antidumping Duty Order on candles from China. The National Candle Association asserts that responses to the ITC's notice of institution of the Sunset Review are inadequate, as members of the industry in China failed to enter submissions for the ITC's sunset proceeding, and the agency should therefore conduct an expedited review.

Thank you for your time and attention to this matter of importance to Cathedral Candle and the domestic candle industry, and I look forward to your response.

Sincerely,

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