South Korea Cigarettes: New AD Duty Investigation Deadlines & Scope
The Commerce Department issued a notice on its recently initiated antidumping duty investigation on 4th tier cigarettes from South Korea (A-580-905). The agency will determine whether imports of merchandise subject to this investigation are being sold in the U.S. at less than fair value.
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The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped 4th tier cigarettes are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Feb. 3, the investigation will immediately end. If Commerce finds dumping in the preliminary determination of this investigation, currently due in May, it will set AD duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD duties on importers and potentially change AD duty cash deposit rates.
Respondent Selection
Commerce said it will examine one company, KT&G, which was the only producer/exporter of South Korean 4th tier cigarettes identified in the underlying petition for AD duties. Comments on respondent selection are due Jan. 21.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation is certain tobacco cigarettes, commonly referred to as “4th tier cigarettes.” The subject cigarettes are composed of a tobacco blend 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 “100’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% or more 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 are typically sold in boxes without a rounded internal corner 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.
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.
Comments on the scope of this investigation are due Jan. 27.
Investigations Timetable
| Event | AD Duty |
|---|---|
| Petitions filed | 12/18/19 |
| DOC initiation date | 01/07/20 |
| ITC prelim determinations* | 02/03/20 |
| DOC prelim determinations† | 05/26/20 |
| DOC final determinations† | 08/10/20 |
| ITC final determinations‡ | 09/24/20 |
| Issuance of orders+ | 10/01/20 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 1912230024 for a summary of the petition that requested this investigation.)
The Commerce Department fact sheet on the initiation of these investigations is (here).
(Federal Register 01/15/20)