19-2-4150 U.S. importers' questionnaire

OMB No. 3117-0016/USITC No. 19-2-4150; Expiration Date : 6/30/2020
(No response is required if currently valid OMB control number is not displayed)

U.S. IMPORTERS’ QUESTIONNAIRE
4TH TIER CIGARETTES FROM KOREA
This questionnaire must be received by the Commission by January 2, 2020
See last page for filing instructions.
The information called for in this questionnaire is for use by the United States International Trade Commission in
connection with its antidumping duty investigation concerning 4th tier cigarettes from Korea (Inv. No. 731-TA-1465
(Preliminary)). The information requested in the questionnaire is requested under the authority of the Tariff Act of
1930, title VII. This report is mandatory and failure to reply as directed can result in a subpoena or other order to
compel the submission of records or information in your firm’s possession (19 U.S.C. § 1333(a)).

Name of firm
Address
City

State

Zip Code

Website
Has your firm imported 4th tier cigarettes (as defined on next page) from any country at any time since January
1, 2016?

NO

(Sign the certification below and promptly return only this page of the questionnaire to the Commission)

YES

(Complete all parts of the questionnaire, and return the entire questionnaire to the Commission)

Return questionnaire via the U.S. International Trade Commission Drop Box by clicking on the
following link: https://dropbox.usitc.gov/oinv/. (PIN: CIGS)
CERTIFICATION
I certify that the information herein supplied in response to this questionnaire is complete and correct to the best of my
knowledge and belief and understand that the information submitted is subject to audit and verification by the Commission. By
means of this certification I also grant consent for the Commission, and its employees and contract personnel, to use the
information provided in this questionnaire and throughout this proceeding in any other import-injury proceedings conducted by
the Commission on the same or similar merchandise.
I, the undersigned, acknowledge that information submitted in response to this request for information and throughout this
proceeding or other proceedings may be disclosed to and used: (i) by the Commission, its employees and Offices, and contract
personnel (a) for developing or maintaining the records of this or a related proceeding, or (b) in internal investigations, audits,
reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C.
Appendix 3; or (ii) by U.S. government employees and contract personnel, solely for cybersecurity purposes. I understand that all
contract personnel will sign appropriate nondisclosure agreements.
Name of Authorized Official

Signature

Title of Authorized Official

Phone

Date

Email address

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Page 2

PART I.—GENERAL INFORMATION
Background. --This proceeding was instituted in response to a petition filed on December 18, 2019, by
the Coalition Against Korean Cigarettes (“CAKC”), the coalition members are Xcaliber International,
Pryor, Oklahoma and Cheyenne International, Grover, North Carolina. Antidumping duties may be
assessed on the subject imports as a result of these proceedings if the Commission makes an affirmative
determination of injury, threat, or material retardation, and if the U.S. Department of Commerce
(“Commerce”) makes an affirmative determination of dumping. Questionnaires and other information
pertinent to this proceeding are available at
https://www.usitc.gov/investigations/701731/2019/4th_tier_cigarettes_korea/preliminary.htm.
4th tier cigarettes covered by these investigations are 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"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 percent to 40 percent 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.
Carton.--contains 10 packs or 200 cigarettes.
Importer.--Any person or firm engaged, either directly or through a parent company or subsidiary, in
importing 4th tier cigarettes (as defined above) into the United States from a foreign manufacturer or
through its selling agent.
Reporting of information.--If information is not readily available from your records, provide carefully
prepared estimates. If your firm is completing more than one questionnaire (i.e., a producer, importer,
and/or purchaser questionnaire), you need not respond to duplicated questions.

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Page 3

Confidentiality.--The commercial and financial data furnished in response to this questionnaire that
reveal the individual operations of your firm will be treated as confidential by the Commission to the
extent that such data are not otherwise available to the public and will not be disclosed except as may
be required by law (see 19 U.S.C. § 1677f). Such confidential information will not be published in a
manner that will reveal the individual operations of your firm; however, general characterizations of
numerical business proprietary information (such as discussion of trends) will be treated as confidential
business information only at the request of the submitter for good cause shown.
Verification.--The information submitted in this questionnaire is subject to audit and verification by the
Commission. To facilitate possible verification of data, please keep all files, worksheets, and supporting
documents used in the preparation of the questionnaire response. Please also retain a copy of the final
document that you submit.
Release of information.--The information provided by your firm in response to this questionnaire, as
well as any other business proprietary information submitted by your firm to the Commission in
connection with this proceeding, may become subject to, and released under, the administrative
protective order provisions of the Tariff Act of 1930 (19 U.S.C. § 1677f) and section 207.7 of the
Commission’s Rules of Practice and Procedure (19 CFR § 207.7). This means that certain lawyers and
other authorized individuals may temporarily be given access to the information for use in connection
with this proceeding or other import-injury proceedings conducted by the Commission on the same or
similar merchandise; those individuals would be subject to severe penalties if the information were
divulged to unauthorized individuals.
Valid number error messages.--If you are completing this form in a country that uses periods (“.”) to
delineate multiples of 1000 (e.g., one million would appear as $1.000.000 rather than $1,000,000), you
may be unable to enter in numbers greater than 999 in numeric form fields. The solution to this data
entry issue is to temporarily change your operating system’s number formatting to be consistent with
the U.S. number formatting system while you complete this form. Detailed instructions on how to
resolve this issue is provided at the end of this questionnaire and is available upon request from
Lawrence Jones (202-205-3358, lawrence.jones@usitc.gov).
D-GRIDS tool.--The Commission has a tool that firms can use to move data from their own MS Excel
compilation files into self-contained data tables within this MS Word questionnaire, thereby reducing
the amount of cell-by-cell data entry that would be required to complete this form. This tool is a macroenabled MS Excel file available for download from the Commission's generic questionnaires webpage
(https://www.usitc.gov/trade_remedy/question.htm) called the "D-GRIDs tool." Use of this tool to help
your firm complete this questionnaire is optional. Firms opting to use the D-GRIDs tool to populate their
data into this questionnaire will need the D-GRIDs specification sheet PDF file specific to this proceeding
(available on the case page which is linked under the "Background" above) which includes the necessary
references relating to this questionnaire, as well as the macro-enable MS Excel D-GRIDs tool itself from
the generic questionnaires page. More detailed instructions on how to use the D-GRIDs tool are
available within the D-GRIDs tool itself.

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I-1.

Page 4

OMB statistics.--Please report below the actual number of hours required and the cost to your
firm of completing this questionnaire.
Hours

Dollars

The questions in this questionnaire have been reviewed with market participants to ensure that
issues of concern are adequately addressed and that data requests are sufficient, meaningful,
and as limited as possible. Public reporting burden for this questionnaire is estimated to average
40 hours per response, including the time for reviewing instructions, gathering data, and
completing and reviewing the questionnaire.
We welcome comments regarding the accuracy of this burden estimate, suggestions for
reducing the burden, and any suggestions for improving this questionnaire. Please attach such
comments to your response or send to the Office of Investigations, USITC, 500 E St. SW,
Washington, DC 20436.
I-2a.

Establishments covered.--Provide the name and address of establishment(s) covered by this
questionnaire.
“Establishment”--Each facility of a firm involved in the importation of 4th tier cigarettes,
including auxiliary facilities operated in conjunction with (whether or not physically separate
from) such facilities.

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I-2b.

Stock symbol information.-- If your firm or parent firm is publicly traded, please specify the
stock exchange and trading symbol:
.

I-2c.

External counsel.-- If your firm or parent firm is represented by external counsel in relation to
this proceeding, please specify the name of the law firm and the lead attorney(s).
Law firm:
Lead attorney(s):

I-3.

Ownership.--Is your firm owned, in whole or in part, by any other firm?
No

Firm name

I-4.

Yes--List the following information, relating to the ultimate parent/owner.

Country

Extent of
ownership
(percent)

Related importers/exporters.--Does your firm have any related firms, either domestic or
foreign, that are engaged in importing 4th tier cigarettes from Korea into the United States or
that are engaged in exporting 4th tier cigarettes from Korea to the United States?
No
Firm name

Yes--List the following information.
Country

Affiliation

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)
I-5.

Related producers.--Does your firm have any related firms, either domestic or foreign, that are
engaged in the production of 4th tier cigarettes?
No

Yes--List the following information.

Firm name

I-6.

Country

Affiliation

Importing operations.--Please indicate the nature of your firm’s importing operations on 4th
tier cigarettes. More than one answer may be applicable.
Importer of record

I-7.

Page 6

Takes title to the
imported product(s)

Consignee of the
imported products(s)

Customs broker or
freight forwarder

Consignee.--If your firm is an importer of record of 4th tier cigarettes but is not the consignee,
please list the consignees below (firm name, address, telephone number, and individual to
contact).

Firm name

Address

Contact person
and phone
number

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I-8.

Page 7

FTZ, TIB, or bonded warehouses.--Please indicate whether your firm enters 4th tier cigarettes
into, or withdraws such merchandise from, foreign trade zones or bonded warehouses. Also
indicate whether your firm imports 4th tier cigarettes under the TIB (temporary importation
under bond) program.
“Foreign trade zone” is a designated location in the United States where firms utilize special
procedures that allow delayed or reduced customs duty payments on foreign merchandise, as
well as other savings. A foreign trade zone must be designated as such pursuant to the rules
and procedures set forth in the Foreign-Trade Zones Act.
“Bonded warehouse” is a secured facility supervised by U.S. customs, where dutiable landed
imports are stored pending their re-export, or release after payment of import duties, taxes, and
other charges. A bonded warehouse must be designed as such pursuant to the rules and
procedures set forth in 19 U.S.C. § 1555.
“Temporary Importation under Bond (“TIB”) program” is a procedure whereby imported
merchandise may be entered under certain conditions for a limited time into the United States
free of duty. Under the program, an importer posts a bond for twice the amount of duty, taxes,
etc. that would otherwise be owed on the importation and agrees to export or destroy the
merchandise within a specified time or pay liquidated damages. This program is restricted to
certain categories of merchandise listed in subheadings 9813.00.05 through 9813.00.75 of the
Harmonized Tariff Schedule of the United States (HTS).
Item

No

Yes

Foreign trade zones
Bonded warehouses
Temporary importation under bond

I-9.

Other trade actions.--To your knowledge, have the products subject to this proceeding been the
subject of any other import relief proceedings in the United States or in any other countries?
No

Yes

If yes, Yes–Please specify.

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PART II.--TRADE AND RELATED INFORMATION
Further information on this part of the questionnaire can be obtained from Lawrence Jones (202-2053358, Lawrence.jones@usitc.gov). Supply all data requested on a calendar-year basis.
II-1.

Contact information.--Please identify the responsible individual and the manner by which
Commission staff may contact that individual regarding the confidential information submitted
in part II.
Name
Title
Email
Telephone

II-2.

Changes in operations.--Please indicate whether your firm has experienced any of the following
changes in relation to the importation of 4th tier cigarettes since January 1, 2016.
(check as many as appropriate)
Office/warehouse openings
Office/warehouse closings
Relocations
Expansions
Acquisitions
Consolidations
Prolonged shutdowns or
importation curtailments
Revised labor agreements
Other (e.g., technology)

(If checked, please describe; leave blank if not applicable)

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II-3a.

Page 9

Arranged imports.--Has your firm imported or arranged for the importation of 4th tier
cigarettes for delivery after September 30, 2019?
“Arranged imports” are imports for which your firm has placed an order with a foreign supplier
for subject merchandise, but delivery of those imports is not scheduled to occur until after the
date listed above.
No

Yes
If yes, fill out the table below.

Period
Source

Oct-Dec 2019

Jan-Mar 2020

Apr-Jun 2020

Jul-Sep 2020

Quantity (in cartons)
Korea
All other sources
II-3b.

Imports in the 12 month period preceding the petition.--Has your firm imported 4th tier
cigarettes from any source between December 1, 2018 and November 30, 2019? (i.e., the last
month in 2018 and first eleven months in 2019 combined).
No

Yes
If yes, report the quantity of such import below by source.

Quantity (in cartons)
Source

December 2018 through November 2019

Korea
All other sources
II-4.

Reasons for importing if producer.--If your firm also produces 4th tier cigarettes in the United
States, please indicate the reasons for importing this product. If your firm’s reasons differ by
source, please elaborate.

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Definitions
“Imports” –Those products identified for Customs purposes as imports for consumption for
which your firm was the importer of record (i.e., was responsible for paying any import duty).
“Import quantities” –Quantities reported should be net of returns.
“Import values”—Values reported should be landed, duty-paid values at the U.S. port of entry,
including ocean freight and insurance costs, brokerage charges, and import duties (i.e., all
charges except inland freight in the United States).
“Commercial U.S. shipments”— Shipments made within the United States as a result of an
arm’s length commercial transaction in the ordinary course of business. Report net values (i.e.,
gross sales values less all discounts, allowances, rebates, prepaid freight, and the value of
returned goods) in U.S. dollars, f.o.b. your point of shipment.
“Internal consumption” –Product consumed internally by your firm. Such transactions are
valued at fair market value.
“Transfers to related firms” –Shipments made to related firms. Such transactions are valued at
fair market value.
“Related firm” –A firm that your firm solely or jointly owned, managed, or otherwise controlled;
a firm that solely or jointly owned, managed, or otherwise controlled your firm; and/or a firm
that was solely or jointly owned, managed, or otherwise controlled by a firm that also solely or
jointly owned, managed, or otherwise controlled your firm.
“Export shipments”— Shipments to destinations outside the United States, including shipments
to related firms.
“Inventories” --Finished goods inventory, not raw materials or work in progress.
Note: As requested in Part I of this questionnaire, please keep all supporting documents/records
used in the preparation of the trade data, as Commission staff may contact your firm regarding
questions on the trade data. The Commission may also request that your company submit copies
of the supporting documents/records (such as production and sales schedules, inventory records,
etc.) used to compile these data.

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)
II-5a.

Page 11

U.S. imports from Korea.–Report your firm’s imports and your firm’s shipments and inventories
of 4th tier cigarettes imported from Korea by your firm during the specified periods.

Korea
Quantity (in cartons), value (in $1,000)
Calendar years
Item

2016

2017

January-September
2018

2018

2019

Beginning-of-period inventories
(quantity) (A)
Imports:1
Quantity (B)
Value (C)
U.S. shipments:
Commercial shipments:
Quantity (D)
Value (E)
Internal consumption:2
Quantity (F)
Value2 (G)
Transfers to related firms:2
Quantity (H)
Value2 (I)
Export shipments:3
Quantity (J)
Value (K)
End-of-period inventories
(quantity) (L)
1

Please identify the foreign producers, if known:
.
Internal consumption and transfers to related firms must be valued at fair market value. If your firm uses a different
basis for valuing these transactions in your records, please specify that basis (e.g., cost, cost plus, etc.):
. However,
the data provided above in this table should be based on fair market value.
3
Identify your firm’s principal export markets:
.
2

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II-5a.

Page 12

U.S. imports from Korea.–Continued

RECONCILIATION OF SHIPMENTS, IMPORTS, AND INVENTORIES.--Generally, the data reported for the
end-of-period inventories (i.e., line L) should be equal to the beginning-of-period inventories (i.e., line
A), plus imports (i.e., line B), less total shipments (i.e., lines D, F, H, and J). Please ensure that any
differences are not due to data entry errors in completing this form, but rather actually reflect your
firm’s records; and also provide any likely explanations for any differences (e.g., theft, loss, damage,
record systems issues, etc.) if they exist.
Calendar years
Reconciliation

2016

2017

A + B – D – F – H – J -L = should equal
zero ("0") or provide an explanation.1

January-September
2018

0

0

2018
0

2019
0

0

1

Explanation if the calculated fields above are returning values other than zero (i.e., “0”) but are nonetheless
accurate:
.
II-5b.

Channels of distribution: Korea.--Report your firm’s U.S. shipments (i.e., commercial U.S.
shipments, internal consumption, and transfers to related firms) of imports from Korea by
channel of distribution.

Korea
Calendar years
Item

2016

2017

January-September
2018

2018

2019

Quantity (in cartons)
Channels of distribution:
U.S. shipments:
To distributors (M)
To end users (N)
To retail locations (O)
RECONCILIATION OF CHANNELS.--Please ensure that the quantities reported for channels of distribution
(i.e., lines M, N, and O) in each time period equal the quantity reported for U.S. shipments (i.e., line D, F,
H) in each time period. If the calculated fields below return values other than zero (i.e., “0”), the data
reported must be revised prior to submission to the Commission.
Calendar years
Reconciliation item
M + N + O – D - F - H = zero ("0"), if
not revise.

2016

2017
0

January-September
2018

0

2018
0

2019
0

0

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II-6a.

Page 13

Imports from all other sources.–Report your firm’s imports and your firm’s shipments and
inventories of 4th tier cigarettes imported from all other sources by your firm during the
specified periods.

All other sources
(list sources:

)
Quantity (in cartons), value (in $1,000)
Calendar years

Item

2016

2017

January-September
2018

2018

2019

Beginning-of-period inventories
(quantity) (A)
Imports:1
Quantity (B)
Value (C)
U.S. shipments:
Commercial shipments:
Quantity (D)
Value (E)
Internal consumption:2
Quantity (F)
Value2 (G)
Transfers to related firms:2
Quantity (H)
Value2 (I)
Export shipments:3
Quantity (J)
Value (K)
End-of-period inventories
(quantity) (L)
1

Please identify the foreign producers, if known:
.
Internal consumption and transfers to related firms must be valued at fair market value. If your firm uses a different
basis for valuing these transactions in your records, please specify that basis (e.g., cost, cost plus, etc.):
. However,
the data provided above in this table should be based on fair market value.
3
Identify your firm’s principal export markets:
.
2

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II-6a.

Page 14

Imports from all other sources.–Continued

RECONCILIATION OF SHIPMENTS, IMPORTS, AND INVENTORIES.--Generally, the data reported for the
end-of-period inventories (i.e., line L) should be equal to the beginning-of-period inventories (i.e., line
A), plus imports (i.e., line B), less total shipments (i.e., lines D, F, H, and J). Please ensure that any
differences are not due to data entry errors in completing this form, but rather actually reflect your
firm’s records; and also provide any likely explanations for any differences (e.g., theft, loss, damage,
record systems issues, etc.) if they exist.
Calendar years
Reconciliation

2016

2017

A + B – D – F – H – J -L = should equal
zero ("0") or provide an explanation.1

January-September
2018

0

0

2018
0

2019
0

0

1

Explanation if the calculated fields above are returning values other than zero (i.e., “0”) but are nonetheless
accurate:
.
II-6b.

Channels of distribution: All other sources.--Report your firm’s U.S. shipments (i.e., commercial
U.S. shipments, internal consumption, and transfers to related firms) of imports from Korea by
channel of distribution.

All other sources
Calendar years
Item

2016

2017

January-September
2018

2018

2019

Quantity (in cartons)
Channels of distribution:
U.S. shipments:
To distributors (M)
To end users (N)
To retail locations (O)
RECONCILIATION OF CHANNELS.--Please ensure that the quantities reported for channels of distribution
(i.e., lines M, N, and O) in each time period equal the quantity reported for U.S. shipments (i.e., line D, F,
H) in each time period. If the calculated fields below return values other than zero (i.e., “0”), the data
reported must be revised prior to submission to the Commission.
Calendar years
Reconciliation item
M + N + O - D -F - H= zero ("0"), if not
revise.

2016

2017
0

January-September
2018

0

2018
0

2019
0

0

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II-7.

Transfers to related firms.--If your firm reported transfers to related firms in any of the data
tables in part II, please identify the firm(s) and indicate the nature of the relationship between
your firm and the related firms (e.g., joint venture, wholly owned subsidiary) and whether the
transfers were priced at market value or by a non-market formula.

II-8.

Other explanations.--If your firm would like to further explain a response to a question in Part II
for which a narrative response box was not provided, please note the question number and the
explanation in the space provided below. Please also use this space to highlight any issues your
firm had in providing the data in this section, including but not limited to technical issues with
the MS Word questionnaire.

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PART III.--PRICING AND MARKET FACTORS
Further information on this part of the questionnaire can be obtained from James Horne (202-205-2722,
James.Horne@usitc.gov).
III-1.

Contact information.--Please identify the responsible individual and the manner by which
Commission staff may contact that individual regarding the confidential information submitted
in part III.
Name
Title
Email
Telephone

PRICE DATA
III-2.

This question requests quarterly quantity and value data for your firm’s commercial shipments
to unrelated U.S. customers since January 1, 2016 of the following products your firm imported
from Korea:
Product 1.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. THIS Red
Box or equivalent offerings) sold in Missouri
Product 2.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. THIS
Blue Box or equivalent offerings) sold in Missouri
Product 3.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. THIS Menthol Box or equivalent
offerings) sold in Missouri
Product 4.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. THIS Red
Box or equivalent offerings) sold in Oklahoma
Product 5.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. THIS
Blue Box or equivalent offerings) sold in Oklahoma
Product 6.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. THIS Menthol Box or equivalent
offerings) sold in Oklahoma

Please note that values should be f.o.b., U.S. point of shipment and should not include U.S.-inland
transportation costs. Values should reflect the final net amount paid to your firm (i.e., should be net
of all deductions for discounts or rebates).
During January 2016-September 2019, did your firm import from Korea and sell to unrelated
U.S. customers any of the above listed products (or any products that were competitive with
these products)?
Yes.--Please complete the following pricing data tables as appropriate.
No.--Skip to question III-3.

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III-2a. Price data.--Report below the quarterly price data1 for pricing products2 imported from Korea
and sold by your firm.

Korea

Report data in Cartons (containing 10 packs or 200 cigarettes) and actual dollars (not 1,000s).
Product 1

(Quantity in cartons, value in dollars)
Product 2
Value
Quantity
Value

Product 3
Period of shipment
Quantity
Quantity
Value
2016:
January-March
April-June
July-September
October-December
2017:
January-March
April-June
July-September
October-December
2018:
January-March
April-June
July-September
October-December
2019:
January-March
April-June
July-September
1 Net values (i.e., gross sales values less all discounts, allowances, rebates, prepaid freight, and the value of returned goods), f.o.b. your
firm’s U.S. point of shipment.
2 Pricing product definitions are provided on the first page of Part III.
Note.--If your firm’s product does not exactly meet the product specifications but is competitive with the specified product, provide a
description of your firm’s product. Also, please explain any anomalies in your firm’s reported pricing data.
Product 1:
Product 2:
Product 3:

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III-2b. Price data—Continued
Report data in Cartons (containing 10 packs or 200 cigarettes) and actual dollars (not 1,000s).
Product 4

(Quantity in cartons, value in dollars)
Product 5
Value
Quantity
Value

Product 6
Period of shipment
Quantity
Quantity
Value
2016:
January-March
April-June
July-September
October-December
2017:
January-March
April-June
July-September
October-December
2018:
January-March
April-June
July-September
October-December
2019:
January-March
April-June
July-September
1 Net values (i.e., gross sales values less all discounts, allowances, rebates, prepaid freight, and the value of returned goods), f.o.b. your
firm’s U.S. point of shipment.
2 Pricing product definitions are provided on the first page of Part III.
Note.--If your firm’s product does not exactly meet the product specifications but is competitive with the specified product, provide a
description of your firm’s product. Also, please explain any anomalies in your firm’s reported pricing data.
Product 4:
Product 5:
Product 6:

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)
III-2b.

Page 19

Price data checklist.--Please check that the pricing data in question III-2(a) has been correctly
reported.
Are the price data reported above:

√ if Yes

In actual dollars (not $1,000) and cartons (not individual cigarettes)?
F.o.b. U.S. point of shipment (i.e., does not include U.S. transport costs)?
Prices include all Federal and State taxes?
Net of all discounts and rebates?
Have returns credited to the quarter in which the sale occurred?
Less than reported commercial shipments in part II in each year?
III-2c.

Pricing data methodology.--Please describe the method and the kinds of documents/records
that were used to compile your price data.

Note: As requested in Part I of this questionnaire, please keep all supporting documents/records used in
the preparation of the price data, as Commission staff may contact your firm regarding questions on the
price data. The Commission may also request that your company submit copies of the supporting
documents/records (such as sales journal, invoices, etc.) used to compile these data.

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)
III-3.

Price setting.--How does your firm determine the prices that it charges for sales of 4th tier
cigarettes (check all that apply)? If your firm issues price lists, please submit sample pages of a
recent list.
Transaction
by
transaction

III-4.

Contracts

Annual
total
volume
discounts

Other

If other, describe

No
discount
policy

Other

Describe

Pricing terms.--On what basis are your firm’s prices of imported 4th tier cigarettes from Korea
usually quoted (check one)?
Delivered

III-6.

Set
price
lists

Discount policy.--Please indicate and describe your firm’s discount policies (check all that apply).

Quantity
discounts

III-5.

Page 20

F.o.b.

If f.o.b., specify point

Contract versus spot.--Approximately what share of your firm’s sales of 4th tier cigarettes
imported from Korea in 2018 was on a (1) short-term contract basis, (2) annual contract basis,
(3) long-term contract basis, and (4) spot sales basis?

Item
Share of 2018
sales

Type of sale
Long-term
Annual
contracts
contracts
(multiple
(multiple
deliveries for
deliveries for 12
more than 12
months)
months)

Short-term
contracts
(multiple
deliveries for
less than 12
months)
%

%

%

Total
(should
sum to
100.0%)

Spot sales
(for a single
delivery)
%

0.0

%

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III-7.

Page 21

Contract provisions.--Please fill out the table regarding your firm’s typical sales contracts for 4th
tier cigarettes imported from Korea (or check “not applicable” if your firm does not sell on a
short-term, annual and/or long-term contract basis).
Short-term contracts
(multiple deliveries
for less than 12
months)

Typical sales
contract provisions

Item

Average contract
duration

No. of
days

Price renegotiation
(during contract
period)

Yes

Fixed quantity
and/or price

Annual contracts
(multiple
deliveries for 12
months)

Long-term contracts
(multiple deliveries
for more than 12
months)

365

No
Quantity

Indexed to raw
material costs1

Price
Both
Yes
No

Not applicable
1

Please identify the indexes used:

III-8.

Lead times.--What is your firm’s share of sales of 4th tier cigarettes imported from Korea from
inventory and produced to order and what is the typical lead time between a customer’s order
and the date of delivery for your firm’s sales of 4th tier cigarettes?

Source

Lead time
(Average number
Share of 2018 sales
of days)

From your firm’s U.S. inventory

%

From foreign manufacturers’ inventory

%

Produced to order

%

Total (should sum to 100.0%)

0.0 %

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)
III-9.

Page 22

Shipping information.—
(a)

What is the approximate percentage of the cost of 4th tier cigarettes imported from
Korea that is accounted for by U.S. inland transportation costs?
percent.

(b)

Who generally arranges the transportation to your firm’s customers’ locations?
Your firm
Purchaser (check one)

(c)

When your firm sells 4th tier cigarettes imported from Korea, from where is it shipped?
Point of importation
Storage facility (check one)

(d)

Indicate the approximate percentage of your firm’s sales of 4th tier cigarettes imported
from Korea that are delivered the following distances from your firm’s U.S. point of
shipment.
Distance from your firm’s U.S. point of shipment

Share

Within 100 miles

%

101 to 1,000 miles

%

Over 1,000 miles

%

Total (should sum to 100.0%)

0.0

%

III-10. Geographical shipments.--What percentage of your firm’s 4th tier cigarette sales are in each
U.S. geographic market area in 2018?

Geographic area

Share of sales
(percent)

Northeast.–CT, ME, MA, NH, NJ, NY, PA, RI, and VT.
Midwest.–IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, and WI.
Southeast.–AL, DE, DC, FL, GA, KY, MD, MS, NC, SC, TN, VA, and WV.
Central Southwest.–AR, LA, OK, and TX.
Mountains.–AZ, CO, ID, MT, NV, NM, UT, and WY.
Pacific Coast.–CA, OR, and WA.
Other.–All other markets in the United States not previously listed,
including AK, HI, PR, and VI.
Total (should sum to 100.0%)

0.0

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Page 23

III-11. Substitutes.--Can other products be substituted for 4th tier cigarettes?
No

Substitute

Yes--Please fill out the table.

End use in which this
substitute is used

Have changes in the price of this substitute
affected the price for 4th tier cigarettes?
No Yes

Explanation

1.
2.
3.
III-12. Demand trends.--Indicate how demand within the United States and outside of the United
States (if known) for 4th tier cigarettes has changed since January 1, 2016. Explain any trends
and describe the principal factors that have affected these changes in demand.

Market
Within the United States
Outside the United States

Overall
increase

No
Overall Fluctuate with
change decrease no clear trend

Explanation and factors

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Page 24

III-13. Product changes.--Have there been any significant changes in the product range, product mix or
marketing of 4th tier cigarettes since January 1, 2016?
No

Yes

If yes, please describe.

III-14. Smoking alternatives.--Have electronic cigarettes (e-cigs) or vaporizers (vapes) affected the
demand for 4th tier cigarettes?
No

Yes

If yes, please describe.

III-15. Regulations—
(a) Have changes to regulations or taxes changed your firms desire or ability to sell 4th tier
cigarettes in the United States?
Source

No

Yes

If yes, please describe.

United
States
All other
countries
Sources
unknown

(b) Have differences in state or local regulations or taxes caused a divergence in regional
demand for 4th tier cigarettes in the United States?
No

Yes

If yes, please describe.

IV-16. Brand loyalty.—Do consumers of 4th tier cigarettes smoke multiple brands of 4th tier cigarettes
or change brands of 4th tier cigarette based on price?
No

Yes

If yes, please describe.

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)

Page 25

III-17. Conditions of competition.—
(a) Is the 4th tier cigarettes market subject to business cycles (other than general economywide conditions) and/or other conditions of competition distinctive to 4th tier cigarettes?
Check all that apply.

Please describe.

No

Skip to question III-18.

Yes-Business cycles (e.g.
seasonal business)
Yes-Other distinctive
conditions of competition
(b) If yes, have there been any changes in the business cycles or conditions of competition for
4th tier cigarettes since January 1, 2016?
No

Yes

If yes, describe.

III-18. Supply constraints.--Has your firm refused, declined, or been unable to supply 4th tier
cigarettes since January 1, 2016 (examples include placing customers on allocation or
“controlled order entry,” declining to accept new customers or renew existing customers,
delivering less than the quantity promised, being unable to meet timely shipment commitments,
etc.)?
No

Yes

If yes, please describe.

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U.S. Importers’ Questionnaire – 4th Tier Cigarettes (Preliminary)

Page 26

III-19. Raw materials.--How have 4th tier cigarettes raw material prices changed since January 1,
2016?
Fluctuate
Explain, noting how raw material price changes
Overall
No
Overall
with no
have affected your firm’s selling prices for 4th tier
increase change decrease clear trend
cigarettes.

III-20. Interchangeability.--Are 4th tier cigarettes produced in the United States and in other countries
interchangeable?
Please indicate A, F, S, N, or 0 in the table below:
A = the products from a specified country-pair are always interchangeable
F = the products are frequently interchangeable
S = the products are sometimes interchangeable
N = the products are never interchangeable
0 = no familiarity with products from a specified country-pair

Country-pair

Korea

Other countries

United States

Korea
For any country-pair producing 4th tier cigarettes that is sometimes or never
interchangeable, identify the country-pair and explain the factors that limit or preclude
interchangeable use:

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Page 27

III-21. Factors other than price.--Are differences other than price (e.g., quality, availability,
transportation network, product range, technical support, etc.) between 4th tier cigarettes
produced in the United States and in other countries a significant factor in your firm’s sales of
the products?
Please indicate A, F, S, N, or 0 in the table below:
A = such differences are always significant
F = such differences are frequently significant
S = such differences are sometimes significant
N = such differences are never significant
0 = no familiarity with products from a specified country-pair
Country-pair

Korea

Other countries

United States
Korea
For any country-pair for which factors other than price always or frequently are a significant factor
in your firm’s sales of 4th tier cigarettes, identify the country-pair and report the advantages or
disadvantages imparted by such factors:

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Page 28

III-22. Customer identification.--List the names and contact information for your firm’s 10 largest U.S.
customers for 4th tier cigarettes since January 1, 2016. Indicate the share of the quantity of your
firm’s total shipments of 4th tier cigarettes that each of these customers accounted for in 2018.

Customer’s name

Contact person

Email

Telephone

City

State

Share
of
2018
sales
(%)

1
2
3
4
5
6
7
8
9
10

III-23. Other explanations.--If your firm would like to further explain a response to a question in Part III
for which a narrative response box was not provided, please note the question number and the
explanation in the space provided below. Please also use this space to highlight any issues your
firm had in providing the data in this section, including but not limited to technical issues with
the MS Word questionnaire.

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Page 29

Correcting Valid number error messages.--If you are completing a Commission

questionnaire in a country that uses periods (“.”) to delineate multiples of 1000 (e.g., one million would
appear as $1.000.000 instead of as $1,000,000), you may be unable to enter in numbers greater than
999 in numeric form fields. This issues stem from your computer number formatting setting (e.g., not
the MS Word document itself, but the computer from which you are opening up the document). In the
United States commas (,) delineate multiples of 1000 and periods (.) delineate fractions less than one.
Many EU countries use the reverse where multiples of 1000 are delineated with periods (.) and
fractions less than one are delineated with commas (,). The U.S. International Trade Commission’s
questionnaires are set-up in the United States with the U.S. number formatting. When this formatting
interacts with a computer set to EU number formatting, we believe this may cause this issue.
The solution to this data entry issue is to temporarily change your operating system’s number
formatting to be consistent with the U.S. number formatting system while you complete the
questionnaire.
To temporarily change your computer’s number settings to U.S. settings, please do the following (for
Microsoft Windows Operating system):






START
Control Panel
Region and Language (under Clock, Language, and Region category)
Format tab
Change the Format from your existing one (e.g. “Italian (Italy)”) to “English (United States)” (see
screen shots below)

When you do this the number “twelve million dollars and thirty five cents” would change from
$12.000.000,35 (Italy format) to $12,000,000.35 (U.S. format), and then there will be no conflict with
the questionnaire. When you finish reporting the data then you can close the questionnaire and switch
back to Italy settings.

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Page 30

HOW TO FILE YOUR QUESTIONNAIRE RESPONSE
This questionnaire is available as a “fillable” form in MS Word format on the
Commission’s website at:
https://www.usitc.gov/investigations/701731/2019/4th_tier_cigarettes_korea/prelimin
ary.htm
Please do not attempt to modify the format or permissions of the questionnaire
document. Please submit the completed questionnaire using one of the methods noted
below. If your firm is unable to complete the MS Word questionnaire or cannot use one
of the electronic methods of submission, please contact the Commission for further
instructions.
• Upload via Secure Drop Box.—Upload the MS Word questionnaire along with a scanned copy of the
signed certification page (page 1) through the Commission’s secure upload facility:
Web address: https://dropbox.usitc.gov/oinv/

Pin: CIGS

• E-mail.—E-mail the MS Word questionnaire to Lawrence.jones@usitc.gov: include a scanned copy of
the signed certification page (page 1). Submitters are strongly encouraged to encrypt nonpublic
documents that are electronically transmitted to the Commission to protect your sensitive information
from unauthorized disclosure. The USITC secure drop-box system and the Electronic Document
Information System (EDIS) use Federal Information Processing Standards (FIPS) 140-2 cryptographic
algorithms to encrypt data in transit. Submitting your nonpublic documents by a means that does not
use these encryption algorithms (such as by email) may subject your firm’s nonpublic information to
unauthorized disclosure during transmission. If you choose a non-encrypted method of electronic
transmission, the Commission warns you that the risk of such possible unauthorized disclosure is
assumed by you and not by the Commission.
If your firm did not import this product, please fill out page 1, print, sign, and submit a scanned copy to
the Commission.
Parties to this proceeding.—If your firm is a party to this proceeding, it is required to serve a copy of the
completed questionnaire on parties to the proceeding that are subject to administrative protective
order (see 19 CFR § 207.7). A list of such parties may be obtained from the Commission’s Secretary (202205-1803). A certificate of service must accompany the completed questionnaire you submit (see 19 CFR
§ 207.7). Service of the questionnaire must be made in paper form.