US, South Korea Tobacco Anti-Dumping Investigation Ends Without Imposing Tariffs

ITC Concludes "No Industry Injury"... KT&G Receives Customs Duty Refund

[Asia Economy Reporter Moon Chaeseok] The U.S. government's anti-dumping investigation into imports of Korean cigarettes has been concluded without imposing any additional tariffs.

According to the Ministry of Trade, Industry and Energy on the 7th, the U.S. International Trade Commission (ITC) on the 5th (local time) made a final determination in the industry injury investigation regarding Korean Grade 4 cigarettes (KT&G), concluding that there was no domestic industry injury.

Among the five ITC commissioners, three expressed the opinion of "no industry injury," while two expressed "industry injury," ultimately concluding that there was no industry injury.

The U.S. anti-dumping investigation consists of a dumping margin investigation (Department of Commerce) and an industry injury investigation (ITC). If either results in a negative determination, the investigation ends.

Accordingly, regardless of the final anti-dumping determination previously issued by the Department of Commerce, the anti-dumping investigation on Korean cigarettes will be concluded without imposing separate anti-dumping tariffs.

Previously, on December 7 last year, the Department of Commerce had finalized a dumping margin rate of 5.48% on Korean Grade 4 cigarettes.

Following the ITC's final determination, KT&G is expected to receive a refund of the provisional tariffs deposited with the U.S. Customs and Border Protection since July last year.

Grade 4 cigarettes refer to cigarette-type tobacco products with a length of 7 to 12 cm, a diameter of less than 1.3 cm, and a tobacco stem content of 10% or more.

The U.S. anti-dumping investigation on Korean Grade 4 cigarettes began in December 2019 following a complaint by local tobacco companies such as Excalibur and lasted about one year. The final report related to industry injury will be published on the ITC website on February 9.