On December 18, 2019, Petitioner Coalition Against Korean Cigarettes filed a petition for the imposition of antidumping duties on imports of 4th Tier Cigarettes from the Republic of Korea.

 

SCOPE OF THE INVESTIGATION

The physical characteristics of the covered product, which define the scope, are as follows:

The merchandise covered by this investigation is certain tobacco cigarettes, commonly referred to as “4th tier cigarettes.” The subject cigarettes are composed of tobacco rolled in paper, have a nominal minimum total length of 7.0 cm but do not exceed 12.0 cm in total nominal length, and have a nominal diameter of less than 1.3 cm. These sizes of cigarettes are frequently referred to as “Kings” and “l 00’s,” but subject merchandise that meets the physical description of the scope is included regardless of the marketing description of the size of the cigarettes. Subject merchandise typically has a tobacco blend that consists of 10% to 40% tobacco stems.

Subject merchandise is typically sold in packs of 20 cigarettes per pack which generally includes the marking “20 Class A Cigarettes” but are included regardless of packaging. 4th Tier cigarette packages typically sold in boxes without a rounded internal comer and without embossed aluminum foil inside the pack.

Both menthol and non-menthol cigarettes and cigarettes with or without a filter attached are covered by the scope of this investigation.

Excluded from the scope of this investigation are cigarettes that legally bear the valid and enforceable brand and/or trademark of a company who is a participating member of the Master Settlement Agreement (“MSA”) of November 1998. Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States (“HTSUS”) under subheading 2402.20.8000. This HTSUS subheading is provided for convenience and customs purposes; the written description of the scope of the investigation is dispositive.

PETITIONER

Xcaliber International

One Tobacco Road

Pryor, OK 74361

(918) 824-0300

Eric Estes, VP and General Counsel

e.estes@xcaliberintemational.com

 

Cheyenne International

701 S Battleground Ave

Grover, NC 28073

(866) 254-697 5

David A. Scott, Chief Executive Officer

davidscott@cheyenneintl.com

 

COUNSEL FOR PETITIONERS

Daniel B. Pickard Esq.

Wiley Rein LLP

1776 K Street, NW

Washington, DC 20006

NAMED PRODUCERS/EXPORTERS

For a list of foreign products/exporters alleged by Petitioner, please see  Attachment I.

NAMED IMPORTERS

For a list of importers alleged by Petitioner, please see Attachment II.

ESTIMATED SCHEDULE

Event Earliest Date
Petition Filed December 18, 2019
DOC Initiation January 7, 2020
ITC Preliminary Investigation:
Questionnaires Due January 1, 2020
Request to appear at hearing January 6, 2020
Hearing January 8, 2020
Briefs January 13, 2020
ITC Vote July 22, 2020
DOC Preliminary Antidumping Determination May 26, 2020
DOC Final Antidumping Determination August 10, 2020
ITC Final Determination September 23, 2020

 

ALLEGED DUMPING MARGIN

Korea: 91.72% – 113.06%

IMPORTS OF SUBJECT MERCHANDISE 

2016 2017 2018 2018 Jan-Sept 2019 Jan-Sept
Korea
Volume (1,000 Cartons) 12,748 11,254 12,573 9,212 14,058
Value ($1,000) 99,812 85,029 78,827 64,777 70,155
AUV ($/unit) 7.83 7.56 6.27 7.03 4.99
All Others
Volume (1,000 Cartons) 28,561 28,041 29,141 21,982 22,477
Value ($1,000) 117,912 130,440 139,913 104,176 108,165
AUV ($/unit) 4.13 4.65 4.80 4.74 4.81

 

CONTACT US

For more information concerning this petition and how it may affect your business, please contact Jeffrey Neeley, Nithya Nagarajan, or Stephen Brophy.