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4th Tier Cigarettes from Korea Do Not Injure U.S. Industry, Says USITC

January 5, 2021
News Release 21-001
Inv. No. 731-TA-1465 (Final)
Contact: Peg O'Laughlin, 202-205-1819
4th Tier Cigarettes from Korea Do Not Injure U.S. Industry, Says USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of 4th tier cigarettes from Korea that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

Chair Jason E. Kearns and Commissioners David S. Johanson and Amy A. Karpel voted in the negative.  Vice Chair Randolph J. Stayin and Commissioner Rhonda K. Schmidtlein voted in the affirmative. 

As a result of the Commission’s negative determination, no antidumping duty order will be issued.

The Commission’s public report 4th Tier Cigarettes from Korea (Inv. No. 731-TA-1465 (Final), USITC Publication 5151, January 2021) will contain the views of the Commission and information developed during the investigation.

The report will be available by February 9, 2021; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

4th Tier Cigarettes from Korea
Investigation No. 731-TA-1465 (Final)

Product Description:  Cigarettes are combustible tobacco products rolled in paper and delivering nicotine. They may or may not have a filter and are sold in packs of 20 cigarettes in either 100's (100mm) or King's (85mm) lengths. The packaging and lengths are regulated by the U.S. Food and Drug Administration ("FDA"). While there is no single definition for a fourth tier cigarette, there is a consensus that fourth tier cigarettes are deeply discounted products. Fourth tier cigarettes may contain a higher percentage of tobacco stems compared with non-fourth tier cigarettes.

Status of Proceedings:

1.   Type of investigation:  Final antidumping duty investigation.
2.   Petitioners:  Xcaliber, Pryor, OK; Cheyenne International, Grover, NC.
3.   USITC Institution Date:  Wednesday, December 18, 2019.
4.   USITC Hearing Date:  Thursday, December 3, 2020.
5.   USITC Vote Date:  Tuesday, January 5, 2021.
6.   USITC Notification to Commerce Date:  Friday, January 25, 2021.

U.S. Industry in 2019:

1.   Number of U.S. producers:  5.
2.   Location of producers’ plants:  Florida, Kentucky, New York, North Carolina, and Oklahoma.
3.   Production and related workers:  [1]
4.   U.S. producers’ U.S. shipments:  1
5.   Apparent U.S. consumption:  1
6.   Ratio of subject imports to apparent U.S. consumption:  1

U.S. Imports in 2019:

1.   Subject imports:  1
2.   Nonsubject imports:  1
3.   Leading import sources:  Canada, Korea.

 

[1] Withheld to avoid disclosure of business proprietary information.

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