U.S. Department of Commerce Issues Affirmative Preliminary Antidumping Duty Determination on 4th Tier Cigarettes from South Korea
For Immediate Release
July 16, 2020
Contact: ITA Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced its affirmative preliminary determination in the antidumping duty (AD) investigation of imports of 4th tier cigarettes from South Korea.
Commerce preliminarily determined that the only known exporter from South Korea has dumped 4th tier cigarettes in the United States at a margin of 5.48 percent. As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 4th tier cigarettes from South Korea based on the preliminary rates noted above.
In 2019, imports of 4th tier cigarettes from South Korea were valued at an estimated $82 million.
The petitioner is the Coalition Against Korean Cigarettes, whose members are Xcaliber International (Pryor, Okla.) and Cheyenne International (Grover, N.C.).
Commerce is scheduled to announce its final determination in this investigation on or about September 28.
If Commerce’s final determination is affirmative, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about November 12. If Commerce makes an affirmative final determination of dumping and the ITC makes an affirmative final injury determination, Commerce will impose an AD order. If Commerce makes a negative final determination of dumping or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be imposed.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 262 new AD and countervailing duty investigations – this is a 236 percent increase from the comparable period in the previous administration.
The antidumping duty law provides American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 529 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.
Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.