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pdfOMB No. 3117-0016/USITC No. 19-1-4149; Expiration Date: 6/30/2020
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U.S. PRODUCERS’ 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 produced 4th tier cigarettes (as defined on next page) 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
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
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 are
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.
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.
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.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 3
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.
In addition, if your firm is a U.S. producer, the information you provide on your production and imports
of 4th tier cigarettes and your responses to the questions in Part I of the producer questionnaire will be
provided to the U.S. Department of Commerce, upon its request, for use in connection with (and only in
connection with) its requirement pursuant to section 702(c)(4)/732(c)(4) of the Act (19 U.S.C. §
1671a(c)(4)/1673a(c)(4)) to make a determination concerning the extent of industry support for the
petition requesting this proceeding. Any information provided to Commerce will be transmitted under
the confidentiality and release guidelines set forth above. Your response to these questions constitutes
your consent that such information be provided to Commerce under the conditions described above.
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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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
I-1a.
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
50 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-1b.
TAA information release.--In the event that the U.S. International Trade Commission (USITC)
makes an affirmative final determination in this proceeding, do you consent to the USITC's
release of your contact information (company name, address, contact person, contact person’s
title, telephone number, email address) appearing on the front page of this questionnaire to the
Departments of Commerce, Labor, and Agriculture, as applicable, so that your firm and its
workers can be made eligible for benefits under the Trade Adjustment Assistance program?
Yes
No
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
I-2a.
Page 5
Establishments covered.--Provide the city, state, zip code, and brief description of each
establishment covered by this questionnaire. Firms operating more than one establishment
should combine the data for all establishments into a single report.
“Establishment”--Each facility of a firm involved in the production of 4th tier cigarettes,
including auxiliary facilities operated in conjunction with (whether or not physically separate
from) such facilities.
Establishments
covered1
City, State
Zip (5 digit)
Description
1
2
3
4
5
6
1
Additional discussion on establishments consolidated in this questionnaire:
.
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.
Petitioner status.--Is your firm a petitioner in this proceeding or a member firm of the
petitioning entity?
No
I-4.
Yes
Petition support.--Does your firm support or oppose the petition?
Country
Korea (AD)
Support
Oppose
Take no position
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
I-5.
Ownership.--Is your firm owned, in whole or in part, by any other firm?
No
Firm name
I-6.
Page 6
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. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
I-7.
Page 7
Related producers.--Does your firm have any related firms, either domestic or foreign, that are
engaged in the production of 4th tier cigarettes?
No
Firm name
Yes--List the following information.
Country
Affiliation
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 8
PART II.--TRADE AND RELATED INFORMATION
Further information on this part of the questionnaire can be obtained from Lawrence Jones (202-2053358, [email protected]). 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 production of 4th tier cigarettes since January 1, 2016.
(check as many as appropriate)
plant openings
plant closings
relocations
expansions
acquisitions
consolidations
prolonged shutdowns or
production curtailments
revised labor agreements
other (e.g., technology)
(If checked, please describe; leave blank if not applicable)
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-3a.
Page 9
Production using same machinery.--Please report your firm’s production of products using the
same equipment, machinery, or employees as used to produce 4th tier cigarettes, and the
combined production capacity on this shared equipment, machinery, or employees in the
periods indicated.
“Overall production capacity” or “capacity” – The level of production that your
establishment(s) could reasonably have expected to attain during the specified periods. Assume
normal operating conditions (i.e., using equipment and machinery in place and ready to
operate; normal operating levels (hours per week/weeks per year) and time for downtime,
maintenance, repair, and cleanup).
Note.--If your firm does not produce any out-of-scope merchandise on the same machinery and
equipment as scope merchandise then the "overall production capacity" numbers reported in
this question should be exactly equal to the "average production capacity" numbers reported in
question II-7. If, however, your firm does produce out-of-scope merchandise using the same
machinery and equipment as scope merchandise, then the "average production capacity"
reported in question II-7 should exclude the portion of "overall production capacity" that was
used to produce this out-of-scope merchandise.
“Production” – All production in your U.S. establishment(s), including production consumed
internally within your firm and production for another firm under a toll agreement.
Quantity (in cartons)
Calendar years
Item
Overall production capacity
2016
2017
January-September
2018
2018
2019
1
Production of:
4th tier cigarettes2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Out-of-scope production.-All other cigarettes3
Subtotal, out-of-scope
production
Total production using same
machinery or workers
1
Data reported for capacity (first line) should be greater than data reported for total production (last line).
Data entered for production of 4th tier cigarettes will populate here once reported in question II-7.
3
Please identify these products:
.
2
II-3b.
Operating parameters.--The production capacity reported in II-3a is based on the following
operating paramaters:
Hours per week
Weeks per year
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 10
II-3c.
Capacity calculation.--Please describe the methodology used to calculate overall production
capacity reported in II-3a, and explain any changes in reported capacity.
II-3d.
Production constraints.--Please describe the constraint(s) that set the limit(s) on your firm’s
production capacity.
II-4.
Product shifting.—
(a)
Is your firm able to switch production (capacity) between 4th tier cigarettes and other
products using the same equipment and/or labor?
No
(b)
II-5.
Yes
If yes—(i.e., have produced other products or are able to produce other products)
Please identify other actual or potential products.
Please describe the factors that affect your firm’s ability to shift production capacity
between products (e.g., time, cost, relative price change, etc.), and the degree to which
these factors enhance or constrain such shifts.
Tolling.--Since January 1, 2016, has your firm been involved in a toll agreement regarding the
production of 4th tier cigarettes?
“Toll agreement”--Agreement between two firms whereby the first firm furnishes the raw
materials and the second firm uses the raw materials to produce a product that it then returns
to the first firm with a charge for processing costs, overhead, etc.
No
Yes
If yes--Please describe the toll arrangement(s) and name the firm(s) involved.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-6.
Page 11
Foreign trade zones.-(a)
Firm's FTZ operations.--Does your firm produce 4th tier cigarettes in and/or admit 4th
tier cigarettes into a foreign trade zone (FTZ)?
“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. A foreign trade zone must be designated as such pursuant to the rules
and procedures set forth in the Foreign-Trade Zones Act.
No
(b)
Yes
If yes--Describe the nature of your firms operations in FTZs and identify the
specific FTZ site(s).
Other firms' FTZ operations.--To your knowledge, do any firms in the United States
import 4th tier cigarettes into a foreign trade zone (FTZ) for use in distribution of 4th
tier cigarettes and/or the production of downstream articles?
No
Yes
If yes--Identify the firms and the FTZs.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-7.
Page 12
Production, shipment, and inventory data.--Report your firm’s production capacity, production,
shipments, and inventories related to the production of 4th tier cigarettes in its U.S.
establishment(s) during the specified periods.
“Average production capacity” or “capacity” – The level of production that your
establishment(s) could reasonably have expected to attain during the specified periods. Assume
normal operating conditions (i.e., using equipment and machinery in place and ready to
operate; normal operating levels (hours per week/weeks per year) and time for downtime,
maintenance, repair, and cleanup; and a typical or representative product mix).
“Production” – All production in your U.S. establishment(s), including production consumed
internally within your firm and production for another firm under a toll agreement.
“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.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-7.
Page 13
Production, shipment, and inventory data.--Continued
Quantity (in cartons) and value (in $1,000)
Calendar years
Item
2016
2017
January-September
2018
2018
2019
1
Average production capacity (quantity)
(A)
Beginning-of-period inventories (quantity)
(B)
Production (quantity) (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
The production capacity reported is based on operating
hours per week,
weeks per year. Please
describe the methodology used to calculate production capacity, and explain any changes in reported capacity
.
2
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:
.
RECONCILIATION OF SHIPMENTS, PRODUCTION, AND INVENTORY.--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 B),
plus production (i.e., line C), 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 reflect your firm’s actual
records; and, also provide explanations for any differences (e.g., theft, loss, damage, record systems
issues, etc.) if they exist.
Calendar years
Reconciliation
B + C – D – F – H – J – L = should equal
zero ("0") or provide an explanation.1
1
2016
2017
0
January-September
2018
0
2018
0
2019
0
Explanation if the calculated fields above are returning values other than zero (i.e., “0”) but are nonetheless
accurate:
.
0
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-8.
Page 14
Channels of distribution.--Report your firm’s U.S. shipments (i.e. inclusive of commercial U.S.
shipments, internal consumption, and transfers to related firms) by channel of distribution.
Quantity (in cartons)
Calendar years
Item
2016
2017
January-September
2018
2018
2019
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
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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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-9.
Page 15
Employment data.--Report your firm’s employment-related data related to the production of
4th tier cigarettes and provide an explanation for any trends in these data.
“Production and Related Workers” (PRWs) includes working supervisors and all nonsupervisory
workers (including group leaders and trainees) engaged in fabricating, processing, assembling,
inspecting, receiving, storage, handling, packing, warehousing, shipping, trucking, hauling,
maintenance, repair, janitorial and guard services, product development, auxiliary production
for plant’s own use (e.g., power plant), recordkeeping, and other services closely associated with
the above production operations.
Average number employed may be computed by adding the number of employees, both full
time and part time, for the 12 pay periods ending closest to the 15th of the month and divide
that total by 12. For the January to September periods, calculate similarly and divide by 9.
If your firm had the same number of PRWs in all calendar years and had not experienced
any changes in PRWs in the most recent interim period, you would have the same
number of PRWs for the interim periods, regardless of whether the interim periods are
Jan-Mar (Q1), Jan-June (Q1+Q2), or Jan-Sept (Q1+Q2+Q3).”
“Hours worked” includes time paid for sick leave, holidays, and vacation time. Include overtime
hours actually worked; do not convert overtime pay to its equivalent in straight time hours.
“Wages paid” –Total wages paid before deductions of any kind (e.g., withholding taxes, old-age
and unemployment insurance, group insurance, union dues, bonds, etc.). Include wages paid
directly by your firm for overtime, holidays, vacations, and sick leave.
Calendar years
Item
2016
2017
January-September
2018
2018
2019
Average number of PRWs (number)
Hours worked by PRWs (1,000 hours)
Wages paid to PRWs ($1,000)
Explanation of trends:
II-10.
Related firms.--If your firm reported transfers to related firms in question II-7, 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), whether the transfers were priced at market
value or by a non-market formula, whether your firm retained marketing rights to all transfers,
and whether the related firms also processed inputs from sources other than your firm.
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
II-11.
Page 16
Purchases.--Has your firm purchased 4th tier cigarettes produced in the United States or in
other countries since January 1, 2016? (Do not include imports for which your firm was the
importer of record. These should be reported in an importer questionnaire).
“Purchase” – A transaction to buy product from a U.S. corporate entity such as another U.S.
producer, a U.S. distributor, or a U.S. firm that has directly imported the product.
“Import” –A transaction to buy from a foreign supplier where your firm is the importer of
record.
No
Yes
If yes--Report such purchases in the table below and explain the reasons
for your firms' purchases.
Note: If your firm served as the importer of record for any purchases from foreign suppliers,
either for your own account or as a service for another entity, those purchases are to be
considered "imports" not "purchases" and should not be included in the table below
(Quantity in cartons)
Calendar years
Item
2016
2017
January-September
2018
2018
2019
1
Purchases from U.S. importers of 4th
tier cigarettes from—
Korea
All other sources
Purchases from domestic producers2
Purchases from other sources3
1
Please list the name of the importer(s) from which your firm purchased this product. If your firm’s import
suppliers differ by source, please identify the source for each listed supplier:
.
2
Please list the name of the U.S. producer(s) from which your firm purchased this product:
.
3
Please list the name of the firm(s) from which your firm purchased this product:
.
II-12.
Imports.--Since January 1, 2016, has your firm imported 4th tier cigarettes?
No
Yes
If yes--COMPLETE AND RETURN A U.S. IMPORTERS’ QUESTIONNAIRE
II-13.
Other explanations.--If your firm would like to further explain a response to a question in Part II
for which a narrative 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.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 17
PART III.--FINANCIAL INFORMATION
Address questions on this part of the questionnaire to David Boyland (202-708-4725,
[email protected]).
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
III-2.
Accounting system.--Please provide the following information on your firm’s financial
accounting system.
A.
When does your firm’s fiscal year end (month and day)?
If your firm’s fiscal year changed during the data-collection period, explain
below:
B.1.
Describe the lowest level of operations (e.g., plant, division, company-wide) for
which financial statements are prepared that include 4th tier cigarettes:
2.
Does your firm prepare profit/loss statements for 4th tier cigarettes?
Yes
No
How often did your firm (or parent company) prepare financial statements
(including annual reports, 10Ks)? Please check relevant items below.
Audited,
unaudited,
annual reports,
10Ks,
10 Qs,
Monthly,
quarterly,
semi-annually,
annually
Accounting basis:
GAAP,
cash,
tax, or
other comprehensive
basis of accounting (specify)
3.
4.
Note: As requested in Part I of this questionnaire, please keep all supporting documents/records
used in the preparation of the financial data, as Commission staff may contact your firm
regarding questions on the financial data. The Commission may also request that your company
submit copies of the supporting documents/records (financial statements, including internal
profit-and-loss statements for the division or product group that includes 4th tier cigarettes, as
well as specific statements and worksheets) used to compile these data.
III-3.
Cost accounting system.--Briefly describe your firm’s cost accounting system (e.g., standard
cost, job order cost, etc.).
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 18
III-4.
Allocation basis.--Briefly describe your firm’s allocation basis, if any, for COGS, SG&A, and
interest expense and other income and expenses.
III-5.
Product listing.--Please list the products your firm produced in the facilities in which your firm
produced 4th tier cigarettes, and provide the share of net sales accounted for by these products
in your firm’s most recent fiscal year.
Products
4th tier cigarettes
Share of sales
%
%
%
%
%
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
III-6.
Inputs from related suppliers.--Does your firm purchase inputs (raw materials, labor, energy, or
any services) used in the production of 4th tier cigarettes from any related suppliers (e.g.,
inclusive of transactions between related firms, divisions and/or other components within the
same company)?
Yes--Continue to question III-7
III-7.
Page 19
No—Skip to question III-9a.
Inputs from related suppliers detailed.--Please identify the inputs used in the production of 4th
tier cigarettes that your firm purchases from related suppliers and that are reflected in question
III-9a. For “Share of total COGS” please report this information by relevant input on the basis of
your most recently completed fiscal year. For “Input valuation” please describe the basis, as
recorded in your company’s own accounting system, of the purchase cost from the related
supplier; e.g., the related supplier’s actual cost, cost plus, negotiated transfer price to
approximate fair market value.
Input
Related supplier
Share of total COGS
Input valuation as recorded in the firm’s accounting books and records
III-8.
Inputs purchased from related suppliers.--Please confirm that the inputs purchased from
related suppliers, as identified in III-7, are reported in III-9a (financial results on 4th tier
cigarettes) in a manner consistent with your firm’s accounting books and records.
Yes
No
If no--In the space below, please report the valuation basis of inputs purchased
from related suppliers as reported in question III-9a.
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Page 20
III-9a. Operations on 4th tier cigarettes.--Report the revenue and related cost information requested
below on the 4th tier cigarettes operations of your firm’s U.S. establishment(s). 1 Do not report
resales of products. Note that internal consumption and transfers to related firms must be
valued at fair market value. Input purchases from related suppliers should be consistent with
and based on information in the firm’s accounting books and records. Provide data for your
firm’s three most recently completed fiscal years, and for the specified interim periods. Note: If
your company routinely includes non-participating member escrow payments as an income
statement cost/expense component, please include these amounts in the III-9a line item that
most closely reflects the company’s routine income statement classification. Do not include
non-participating member escrow payments in III-9a if they are not routinely included in your
company’s income statement.
Quantity (in 1,000 cartons) and value (in $1,000)
Fiscal years ended-Item
2016
2017
January-September
2018
2018
2019
quantities:2
Net sales
Commercial sales (“CS”)
Internal consumption (“IC”)
Transfers to related firms (“Transfers”)
Total net sales quantities
0
0
0
0
0
0
0
0
0
0
Total COGS
0
0
0
0
0
Gross profit or (loss)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
values:2
Net sales
Commercial sales
Internal consumption
Transfers to related firms
Total net sales values
Cost of goods sold
Raw materials
(COGS):3
Direct labor
Other factory costs
Selling, general, and administrative (SG&A)
expenses:
Selling expenses
General and administrative expenses
Total SG&A expenses
Operating income (loss)
Other expenses and income:
Interest expense
All other expense items
All other income items
Net income or (loss) before income taxes
Depreciation/amortization included above
Include only sales (whether domestic or export) and costs related to your U.S. manufacturing operations.
Less discounts, returns, allowances, and prepaid freight. The quantities and values should approximate the corresponding
shipment quantities and values reported in Part II of this questionnaire.
3 COGS (whether for domestic or export sales) should include costs associated with CS, IC, and Transfers.
1
2
Note —The table above contains calculations that will appear when you have entered data in the MS
Word form fields.
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Page 21
III-9b. Non-participating member escrow payments.--Please report the total non-participaring escrow
payments made during the period examined. Note: Amounts should be reported in the table
below whether or not they are already reflected in table III-9a.
Fiscal years ended--
Item
2016
2017
January-September
2018
2018
2019
Value ($1,000)
Non-participating member escrow
payments, net1
1 To
the extent applicable, amounts should be reported on a net basis and reflect reimbursements or other relevant adjustments to annual
and interim payment amounts.
Were the above amounts included in table III-9a?
Yes
If yes--please identify the III-9a line item that reflects nonparticipating member escrow payments.
No
III-9c.
Formal accounting treatment of non-participating member escrow payments.--Please describe
how your company routinely accounts for its non-participating member escrow payments. In
your description please specify the extent to which these payments are or are not routinely
reflected in the company’s formal income statement. If included in the company’s formal
income statement, please specify formal income statement classification.
Please describe how non-participating member escrow payments are reflected in the company’s
formal statement of cash flows and balance sheet.
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Page 22
III-9d. Financial data reconciliation.--The calculable line items from question III-9a (i.e., total net sales
quantities and values, total COGS, gross profit (or loss), total SG&A, and net income (or loss))
have been calculated from the data submitted in the other line items. Do the calculated fields
return the correct data according to your firm's financial records ignoring non-material
differences that may arise due to rounding?
Yes
No
If no--If the calculated fields do not show the correct data, please double check the
feeder data for data entry errors and revise. Also, check signs accorded to the post
operating income line items; the two expense line items should report positive
numbers (i.e., expenses are positive and incomes or reversals are negative-instances of the latter should be rare in those lines) while the income line item also
in most instances should have its value be a positive number (i.e., income is
positive, expenses or reversals are negative). If after reviewing and potentially
revising the feeder data your firm has provided, the differences between your
records and the calculated fields persist please identify and discuss the differences
in the space below.
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 23
III-10. Nonrecurring items (charges and gains) included in 4th tier cigarettes financial results.--For
each annual and interim period for which financial results are reported in question III-9a, please
specify all material (significant) nonrecurring items (charges and gains) in the schedule below,
the specific question III-9a line item where the nonrecurring items are included, a brief
description of the relevant nonrecurring items, and the associated values (in $1,000), as
reflected in question III-9a; i.e., if an aggregate nonrecurring item has been allocated to question
III-9a, only the allocated value amount included in question III-9a should be reported in the
schedule below. Note: The Commission’s objective here is to gather information only on
material (significant) nonrecurring items which impacted the reported financial results of the
subject product in question III-9a.
Fiscal years ended--
Item
2016
2017
January-September
2018
2018
2019
Value ($1,000)
Nonrecurring item 1
Nonrecurring item 2
Nonrecurring item 3
Nonrecurring item 4
Nonrecurring item 5
Nonrecurring item 6
Nonrecurring item 7
Nonrecurring item: In this table, please provide a brief description of each nonrecurring item reported above and
indicate the specific line item in question III-9a where the nonrecurring item is classified.
Description of the nonrecurring item
Nonrecurring item 1
Nonrecurring item 2
Nonrecurring item 3
Nonrecurring item 4
Nonrecurring item 5
Nonrecurring item 6
Nonrecurring item 7
Income statement classification of the nonrecurring item
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 24
III-11. Classification of identified nonrecurring items (charges and gains) in the accounting books and
records of the company.--If non-recurring items were reported in question III-10 above, please
identify where your company recorded these items in your accounting books and records in the
normal course of business; i.e., just as responses to question III-10 identify where these items
are reported in question III-9a.
III-12. Asset values.--Report the total assets (i.e., both current and long-term assets) associated with
the production, warehousing, and sale of 4th tier cigarettes. If your firm does not maintain some
or all of the specific asset information necessary to calculate total assets for 4th tier cigarettes in
the normal course of business, please estimate this information based upon a method (such as
production, sales, or costs) that is consistent with relevant cost allocations in question III-9a.
Provide data as of the end of your firm’s three most recently completed fiscal years.
Note: Total assets should reflect net assets after any accumulated depreciation and allowances
deducted.
Total assets should be allocated to operations on 4th tier cigarettes if these assets are also
related to other products. Please provide a brief explanation if there are any substantial changes
in total asset value during the period; e.g., due to asset write-offs, revaluation, and major
purchases.
Value (in $1,000)
Fiscal years ended-Item
Total assets (net)
1
III-13.
Describe
2016
2017
2018
1
.
Capital expenditures and research and development expenses.--Report your firm’s capital
expenditures and research and development expenses for 4th tier cigarettes. Provide data for
your firm’s three most recently completed fiscal years, and for the specified interim periods.
Value (in $1,000)
Fiscal years ended--
Item
2016
2017
January-September
2018
2018
2019
Capital expenditures1
R&D expenses2
1
Please describe the nature, focus, and significance of your firm’s capital expenditures on the subject product.
.
2
Please describe the nature, focus, and significance of your firm’s R&D expenses related to subject product.
.
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 25
III-14. Data consistency and reconciliation.--Please indicate whether your firm’s financial data for
questions III-9a, 12, and 13 are based on a calendar year or on your firm’s fiscal year:
Calendar year
Fiscal year
Specify fiscal year
Please note the quantities and values reported in question III-9a should reconcile with the data
reported in question II-7 (including export shipments) as long as they are reported on the same
calendar year basis.
RECONCILIATION OF TRADE VS FINANCIAL DATA.--Please ensure that the quantities and values reported
for total shipments in part II equal the quantities and values reported for total net sales in part III of this
questionnaire in each time period unless the financial data from part III are reported on a fiscal year
basis, in which case only the interim periods must reconcile. If the calculated fields below return values
other than zero (i.e., “0”) and both are being reported on a calendar basis, please explain the discrepancy
below.
Fiscal years ended-Reconciliation
2016
2017
January-September
2018
2018
2019
Quantity: Trade data from question
II-7 (lines D, F, H, and J) less financial
total net sales quantity data from
question III-9a, = zero ("0").
0
0
0
0
0
Value: Trade data from question II-7
(lines E, G, I, and K) less financial total
net sales value data from question III9a, = zero ("0").
0
0
0
0
0
Do these data in question III-9a reconcile with data in question II-7?
Yes
No
If no, please explain.
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 26
III-15. Effects of imports on investment.--Since January 1, 2016, has your firm experienced any actual
negative effects on its return on investment or the scale of capital investments as a result of
imports of 4th tier cigarettes from Korea?
No
Yes
If yes, my firm has experienced actual negative effects as follows.
(check as many as appropriate)
Cancellation, postponement,
or rejection of expansion
projects
Denial or rejection of
investment proposal
Reduction in the size of
capital investments
Return on specific
investments negatively
impacted
Other
(please describe)
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Page 27
III-16. Effects of imports on growth and development.--Since January 1, 2016, has your firm
experienced any actual negative effects on its growth, ability to raise capital, or existing
development and production efforts (including efforts to develop a derivative or more advanced
version of the product) as a result of imports of 4th tier cigarettes from Korea?
No
Yes
If yes, my firm has experienced actual negative effects as follows.
(check as many as appropriate)
Rejection of bank loans
Lowering of credit rating
Problem related to the issue
of stocks or bonds
Ability to service debt
Other
(please describe)
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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
III-17.
Page 28
Anticipated effects of imports.--Does your firm anticipate any negative effects due to imports
of 4th tier cigarettes from Korea?
No
Yes
If yes, my firm anticipates negative effects as follows.
III-18. Other explanations.--If your firm would like to further explain a response to a question in Part III
for which a narrative 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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U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 29
PART IV.--PRICING AND MARKET FACTORS
Further information on this part of the questionnaire can be obtained from James Horne (202-205-2722,
[email protected]).
IV-1.
Contact information.--Please identify the individual that Commission staff may contact
regarding the confidential information submitted in part IV.
Name
Title
Email
Telephone
PRICE DATA
IV-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 produced by your
firm.
Product 1.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. Edgefield
Red Box or equivalent offerings) sold in Missouri
Product 2.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e.
Edgefield Gold or equivalent offerings) sold in Missouri
Product 3.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. Edgefield Menthol Box or
equivalent offerings) sold in Missouri
Product 4.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. Edgefield
Red Box or equivalent offerings) sold in Oklahoma
Product 5.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e.
Edgefield gold Box or equivalent offerings) sold in Oklahoma
Product 6.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. Edgefield 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).
IV-2a. During January 2016-September 2019, did your firm produce 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 IV-3.
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Page 30
IV-2b. Price data.--Report below the quarterly price data1 for pricing products2 produced and sold by
your firm.
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 IV.
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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Page 31
IV-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 IV.
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. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
IV-2c.
Page 32
Price data checklist.--Please check that the pricing data in question IV-2(b) 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?
IV-2d.
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. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
IV-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
IV-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 domestic 4th tier cigarettes usually
quoted (check one)?
Delivered
IV-6.
Set
price
lists
Discount policy.--Please indicate and describe your firm’s discount policies (check all that apply).
Quantity
discounts
IV-5.
Page 33
F.o.b.
If f.o.b., specify point
Contract versus spot.--Approximately what share of your firm’s sales of its U.S.-produced 4th
tier cigarettes in 2018 was on a (1) short-term contract basis, (2) annual contract basis, (3) longterm 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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IV-7.
Page 34
Contract provisions.--Please fill out the table regarding your firm’s typical sales contracts for
U.S.-produced 4th tier cigarettes (or check “not applicable” if your firm does not sell on a shortterm, annual and/or long-term contract basis).
Typical sales
contract provisions
Item
Average contract
duration
No. of
days
Price renegotiation
(during contract
period)
Yes
Fixed quantity
and/or price
Short-term contracts
(multiple deliveries
for less than 12
months)
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:
IV-8.
.
Lead times.--What is your firm’s share of sales 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 its U.S.-produced 4th tier cigarettes?
Source
Lead time (Average
Share of 2016 sales number of days)
From inventory
%
Produced to order
%
Total (should sum to 100.0%)
0.0
%
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IV-9.
Page 35
Shipping information.-(a)
What is the approximate percentage of the cost of U.S.-produced 4th tier cigarettes 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)
Indicate the approximate percentage of your firm’s sales of 4th tier cigarettes that are
delivered the following distances from its production facility.
Distance from production facility
Share
Within 100 miles
%
101 to 1,000 miles
%
Over 1,000 miles
%
Total (should sum to 100.0%)
0.0
%
IV-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 36
IV-11. Substitutes.--Can other products be substituted for 4th tier cigarettes?
No
Yes--Please fill out the table.
End use in which this
substitute is used
Substitute
Have changes in the price of this substitute
affected the price for 4th tier cigarettes?
No Yes
Explanation
1.
2.
3.
IV-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.
Overall
increase
Market
Fluctuate
No
Overall
with no
change decrease clear trend
Explanation and factors
Within the United States
Outside the United States
IV-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 and quantify if possible.
IV-14. Smoking alternatives.--Have electronic cigarettes (e-cigs) or vaporizers (vapes) affected the
demand for 4th tier cigarettes?
No
Yes
If yes, please describe.
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Page 37
IV-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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Page 38
IV-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?
If yes, describe.
Check all that apply.
Please describe.
No
Skip to question IV-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.
IV-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.
IV-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.
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Page 39
IV-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 40
IV-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:
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 41
IV-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 2016.
Customer’s name
1
2
3
4
5
6
7
8
9
10
Contact person
Email
Telephone
City
State
Share
of
2018
sales
(%)
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 42
IV-23. Competition from imports.-(a)
Lost revenue.--Since January 1, 2016: To avoid losing sales to competitors selling 4th
tier cigarettes from Korea, did your firm:
Item
No
Yes
Reduce prices
Roll back announced price increases
(b)
Lost sales.--Since January 1, 2016: Did your firm lose sales of 4th tier cigarettes to
imports of this product from Korea?
No
(c)
Yes
The submission of lost sales/lost revenue allegations is to be completed only by NONPETITIONERS.
If your firm indicated “yes” to any of the above, your firm can provide the Commission
with additional information by downloading and completing the lost sales/lost revenues
worksheet at http://usitc.gov/trade_remedy/question.htm. Note that the Commission
may contact the firms named to verify the allegations reported.
Is your firm submitting the lost sales/lost revenues worksheet?
No—Please explain.
Yes—Please complete the worksheet and submit via the Commission dropbox.
https://dropbox.usitc.gov/oinv/. (PIN: CIGS)
IV-24. Other explanations.--If your firm would like to further explain a response to a question in Part
IV 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.
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 43
PART V.--ALTERNATIVE PRODUCT INFORMATION
Further information on this part of the questionnaire can be obtained from Lawrence Jones (202-2053358, [email protected]).
V-1.
Comparability of types of 4th tier cigarettes.--For each of the following indicate whether listed
products are: fully comparable or the same, i.e., have no differentiation between them; mostly
comparable or similar; somewhat comparable or similar; never or not-at-all comparable or
similar; or no familiarity with products.
F: fully comparable or the same, i.e., have no differentiation between them;
M: mostly comparable or similar;
S: somewhat comparable or similar;
N: never or not-at-all comparable or similar; or
0: no familiarity with products.
(a) Physical Characteristics and End Uses.--The differences and similarities in the physical
characteristics and end uses.
Product-pair
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
physical characteristics and uses:
In-scope 4th tier cigarettes vs all
other cigarettes
(b) Interchangeability.--The ability to substitute the products in the same application.
Product-pair
In-scope 4th tier cigarettes vs all
other cigarettes
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
interchangeability:
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
V-1.
Page 44
Comparability of types of 4th tier cigarettes.--Continued
F: fully comparable or the same, i.e., have no differentiation between them;
M: mostly comparable or similar;
S: somewhat comparable or similar;
N: never or not-at-all comparable or similar; or
0: no familiarity with products.
(c) Manufacturing facilities, production processes, and production employees.--Whether
manufactured in the same facilities, from the same inputs, on the same machinery and
equipment, and using the same employees.
Product-pair
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
manufacturing facilities, production processes, and
production employees:
In-scope 4th tier cigarettes vs all
other cigarettes
(d) Channels of distribution.--Channels of distribution/market situation through which the
products are sold (i.e., sold direct to end users, through wholesaler/distributors, etc.).
Product-pair
In-scope 4th tier cigarettes vs all
other cigarettes
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
channels of distribution:
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
V-1.
Page 45
Comparability of types of 4th tier cigarettes.--Continued
F: fully comparable or the same, i.e., have no differentiation between them;
M: mostly comparable or similar;
S: somewhat comparable or similar;
N: never or not-at-all comparable or similar; or
0: no familiarity with products.
(e) Customer and producer perceptions.--Perceptions as to the differences and/or
similarities in the market (e.g., sales/marketing practices).
Product-pair
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
customer and product perceptions:
In-scope 4th tier cigarettes vs all
other cigarettes
(f) Price.--Whether prices are comparable or differ between the products.
Product-pair
In-scope 4th tier cigarettes vs all
other cigarettes
Comparison
Please provide a narrative discussion for the
comparability ratings you provided in terms of their
price:
Contains Business Proprietary Information
U.S. Producers’ Questionnaire - 4th Tier Cigarettes (Preliminary)
Page 46
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 [email protected]; 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 does not produce 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.
| File Type | application/pdf |
| File Title | Microsoft Word - US producers--4th Tier Cigarettes (P) |
| Author | lawrence.jones |
| File Modified | 2019-12-20 |
| File Created | 2019-12-20 |