Form 20-1-4289 U.S. producers' questionnaire

Information collections for import injury investigations (producers, importers, purchasers, and foreign producer questionnaires and institution notices for 5-year reviews)

US producer questionnaire

4th tier cigarettes from Korea (Inv. no. 731-TA-1465) Final

OMB: 3117-0016

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2023-04-18 - Extension without change of a currently approved collection

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OMB No. 3117-0016/USITC No. 20-1-4289; Expiration Date: 6/30/2023
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U.S. PRODUCERS’ QUESTIONNAIRE
4TH TIER CIGARETTES FROM KOREA
This questionnaire must be received by the Commission by August 28, 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 investigation concerning 4th tier cigarettes from Korea (Inv. No. 731-TA-1465 (Final)).
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) or any other type of cigarette (as
defined on pages 2-3) at any time since January 1, 2017?
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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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)

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.
All other cigarettes.-Any cigarettes that are not designated as 4th tier cigarettes based on the scope.
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.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)

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.
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.
Firm type
Producers of "4th tier
cigarettes"

Special Instruction
If your firm produced 4 tier cigarettes, please respond to questions in
parts I, II, III, and IV of this questionnaire.
th

Do not include any data relating to production and sales of all other
cigarettes (other tiers) or all other products in parts II, III, and IV if the
cigarettes or products being produced fall outside of the scope as defined
(previous page) by 4th tier cigarettes.

Producers of "all other
cigarettes"

4th tier only producers may choose to respond to question V-1 despite not
producing all other cigarettes.
If your firm produced other cigarettes (that fall outside of the scope of 4th
tier cigarettes), please respond to questions in parts I and V of this
questionnaire.
Do not include any data relating to production and sales of 4 th tier
cigarettes in part V that have been produced as defined by the scope of
this investigation (4th tier cigarettes).

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
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

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
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 from Korea (Final)
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 from Korea (Final)
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 from Korea (Final)

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, 2017.
(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 from Korea (Final)
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 4 th 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

2017

2018

January-June
2019

2019

2020

Production of:
4th tier cigarettes2

Out-of-scope production.-All other cigarettes
All other products3
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 from Korea (Final)

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?

(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, 2017, 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.

Yes

If yes--Please describe the toll arrangement(s) and name the firm(s)
involved.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
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.

(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.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
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.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
II-7.

Page 13

Production, shipment, and inventory data.--Continued
Quantity (in cartons) and value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

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-ofperiod 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

2017

2018
0

January-June
2019

2019
0

2020
0

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

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
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 in
the specified periods.
Quantity (in cartons) Value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Channels of distribution:
U.S. shipments:
to Distributors: Branded
Quantity (M)
Value (N)
To Distributors: Private label
Quantity (O)
Value (P)
To Retailers or End users
Quantity (Q)
Value (R)
RECONCILIATION OF CHANNELS.--Please ensure that the quantities and values reported for channels of
distribution (i.e., lines M through R) in each time period equal the quantities and values reported for U.S.
shipments in question II-7 (i.e., lines D through I) 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

2017

2018

January-June
2019

2019

2020

Quantity: M + O + Q – D – F – H = zero
("0"), if not revise.

Value: N + P + R – E – G – I = zero ("0"),
if not revise.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
II-9.

Page 15

Geographic shipment.--Report your firm’s U.S. shipments (i.e. inclusive of commercial U.S.
shipments, internal consumption, and transfers to related firms) by region of intended
consumption (i.e., how cartons are stamped/ intended for consumer sale) if known, or by region
of your firm's initial U.S. shipment if region of consumption is not known.
Quantity (in cartons)
Calendar years

U.S. shipments for sale in:

2017

2018

January-June
2019

2019

2020

New England.--CT, ME, MA, NH, RI, and VT.
Mid-Atlantic.--DC, DE,MD, NJ, NY, PA, VA,
and WV
Plains.--IA, KS, MN, MO, NE, ND, and SD.
Great Lakes.--IL, IN, MI, OH, and WI.
South.--AL, FL, GA, KY, MS, NC, SC, and TN.
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.
U.S. shipments to all regions (line S)

RECONCILIATION OF GEOGRAPHIC SHIPMENTS.--Please ensure that the quantities reported for US
shipments by geographical region (i.e., line S, which add all the regions together within that column) in
each time period equal the quantities reported for U.S. shipments from question II-7 (i.e., lines D, F, and
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
Quantity: S – D – F – H = zero ("0"), if not
revise.

2017

2018
0

January-June
2019

2019
0

2020
0

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
II-10.

Page 16

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 June periods, calculate
similarly and divide by 6.
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

2017

2018

January-June
2019

2019

2020

Average number of PRWs (number)
Hours worked by PRWs (1,000 hours)
Wages paid to PRWs ($1,000)
Explanation of trends:

II-11.

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 from Korea (Final)
II-12.

Page 17

Purchases.--Has your firm purchased 4th tier cigarettes produced in the United States or in
other countries since January 1, 2017? (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.

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

2017

2018

January-June
2019

2019

2020

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-13.

Imports.--Since January 1, 2017, has your firm imported 4th tier cigarettes?
No

Yes
If yes--COMPLETE AND RETURN A U.S. IMPORTERS’ QUESTIONNAIRE

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Stem content.--Report the minimum, maximum, and average stem content of your firm's 4 th tier
cigarettes by top selling products and overall for all 4 th tier cigarettes.

II-14.

Stem content
Minimum
Product

Product name / description

Average

Maximum

Share (percent)

1 top selling product
2nd top selling product
3rd top selling product
All other 4th tier cigarettes
th

All 4 tier cigarettes
II-15.

NA
NA

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.

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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:
Note.--Please note that we are requesting that firms report their financial
data on a calendar year basis.

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:

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:
U.S. GAAP,
IFRS,
cash,
tax, or
other
comprehensive basis of accounting (specify)

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.).

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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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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 21

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

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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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 the
designated calendar years and for the specified interim periods. Note: If your company
routinely includes non-participating manufacturer escrow accruals 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 nonparticipating manufacturer escrow accruals in III-9a if they are not routinely included in your
company’s income statement.
Quantity (in cartons) and value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Net sales quantities:2
Commercial sales (“CS”)
Internal consumption (“IC”)
Transfers to related firms (“Transfers”)
Total net sales quantities

Net sales values:
Commercial sales
Internal consumption
Transfers to related firms
Total net sales values
Cost of goods sold (COGS):
Raw materials

Direct labor
Other factory costs
Total COGS
Gross profit or (loss)
Selling, general, and administrative
(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

Note —The table above contains calculations that will appear when you have entered data in the MS
Word form fields.

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III-9b. Accrued non-participating manufacturer escrow.--Please report the total non-participating
manufacturer escrow accruals 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.
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Value ($1,000)
Non-participating
manufacturer escrow accruals
Were the above amounts included in table III-9a?

Yes

If yes--please identify the III-9a line item that reflects nonparticipating manufacturer escrow accruals.

III-9c.

Formal accounting treatment of non-participating manufacturer escrow accruals.--Please
describe how your company routinely accounts for its non-participating manufacturer escrow
accruals. In your description please specify the extent to which these accruals 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 manufacturer escrow accruals and obligations are
reflected in the company’s formal statement of cash flows and balance sheet, respectively.
Statement of cash flows:
Balance sheet:
III-9d. Impact of non-participating manufacturer escrow accruals.--Please describe how nonparticipating manufacturer escrow payments directly and indirectly impact the company’s
operations and financial results. As applicable, please respond to this question in terms of
revenue and pricing decisions, including geographic market focus, working capital and cash flow
management, as well as other relevant factors.

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Page 24

III-9e. 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), operating income (or loss), 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 nonmaterial differences that may arise due to rounding?

Yes

III-9f.

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.

Raw materials.--Please report the share of total raw material costs in 2019 (reported in III-9a)
for the following raw material inputs:
Procurement method

Input

Share of total raw
material costs
(percent)

Primarily
produced by
your firm
and/or
purchased
from related
suppliers

Primarily
purchased by
your firm from
unrelated
suppliers

Tobacco blends
Other material inputs1
Total (should sum to 100 percent)
1

0.0

Please indicate any notable "other" raw materials not expressly identified above and provide the
share of the total raw material costs that they account for:
.

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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 4th
tier cigarettes in question III-9a.
Calendar years
Item

2017

2018

January-June
2019

2019

2020

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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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-12a. 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 the designated calendar 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.
Value (in $1,000)
Calendar years
Item

2017

2018

2019

Total assets (net)
III-12b. Description of reported assets.-- Please describe the main asset categories (both current and
long-term assets) in the above response. 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.

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III-13a. 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
the designated calendar years and for the specified interim periods.
Value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Capital expenditures
R&D expenses
III-13b. Description of reported capital expenditures.-- Please describe the nature, focus, and
significance of your firm’s reported capital expenditures in the above response. If no capital
expenditure data were reported, please explain the reason.

III-13c. Description of reported R&D expenses.-- Please describe the nature, focus, and significance of
your firm’s reported R&D expenses in the response above. If no R&D expenses were reported,
please explain the reason.

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Page 28

III-14. Data consistency and reconciliation.--Please confirm that your firm’s financial data for
questions III-9a, 12a, and 13a are reported on a calendar year basis:
Please note the quantities and values reported in question III-9a should reconcile with the data
reported in question II-7 (including export shipments).
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. If the calculated fields below return values other than zero (i.e., “0”)
please explain the discrepancy below.
Calendar years
Reconciliation

2017

2018

January-June
2019

2019

2020

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").

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").

Do these data in question III-9a reconcile with data in question II-7?
Yes

If no, please explain.

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III-15. Effects of imports on investment.--Since January 1, 2017, 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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III-16. Effects of imports on growth and development.--Since January 1, 2017, 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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III-17.

Page 31

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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Page 32

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, 2017 of the following products produced by your
firm.
Product 1.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. Berley
Red Box, Cheyenne Red Box, Edgefield Red Box, or equivalent offerings) for sale to
consumers in Missouri
Product 2.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e.
Berley Gold Box, Cheyenne Gold Box, Edgefield Gold Box, or equivalent offerings)
for sale to consumers in Missouri
Product 3.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. Berley Menthol Box, Cheyenne
Menthol Box, Edgefield Methol Box, or equivalent offerings) for sale to consumers
in Missouri
Product 4.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. Berley
Red Box, Cheyenne Red Box, Edgefield Red Box, or equivalent offerings) for sale to
consumers in Oklahoma
Product 5.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e.
Berley Gold Box, Cheyenne Gold Box, Edgefield Gold Box, or equivalent offerings)
for sale to consumers in Oklahoma

Product 6.--Menthol, Length 100, Menthol 4th tier cigarette (i.e. Berley Menthol Box, Cheyenne
Menthol Box, Edgefield Menthol Box, or equivalent offerings) for sale to consumers
in Oklahoma
Product 7.--Non-menthol, Full Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e. Berley
Red Box, Cheyenne Red Box, Edgefield Red Box, or equivalent offerings) for sale to
consumers in Florida

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Product 8.--Non-menthol, Ultralight Flavor, Length 100, Non-Menthol 4th tier cigarette (i.e.
Berley Gold Box, Cheyenne Gold Box, Edgefield Gold Box, or equivalent offerings)
for sale to consumers in Florida
Product 9.--Menthol, Length 100, Menthol 4th tier cigarette (I.e. Berley Menthol Box, Cheyenne
Menthol Box, Edgefield Menthol, Box or equivalent offerings) for sale to consumers
in Florida
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 2017-June 2020, 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 34

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).

Period of shipment
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
October-December
2020:
January-March
April-June

(Quantity in cartons, value in dollars)
Product 1
Product 2
Quantity
Value
Quantity
Value

Product 3
Quantity
Value

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

(Quantity in cartons, value in dollars)
Product 4
Product 5
Quantity
Value
Quantity
Value

Product 6
Quantity
Value

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

(Quantity in cartons, value in dollars)
Product 7
Product 8
Quantity
Value
Quantity
Value

Product 9
Quantity
Value

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IV-2c.

Page 37

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, discounts, and rebates been credited to the quarter in which
aathe 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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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 38

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 2019 was on a (1) short-term contract basis, (2) annual contract basis, (3) longterm contract basis, and (4) spot sales basis?

Item
Share of 2019
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 39

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 2019 sales number of days)

From inventory

Produced to order

Total (should sum to 100.0%)

0.0

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IV-9.

Page 40

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

Within 100 miles

101 to 1,000 miles

Over 1,000 miles

Total (should sum to 100.0%)

0.0

IV-10. Substitutes.--Can other products be substituted for 4th tier cigarettes?
No

Yes--Please fill out the table.
Are these
considered
Have changes in the price of this
substitutes in the substitute affected the price for 4th tier
market?
cigarettes?

Broad category

Specific product

Yes

Explanation

Premium
All other cigarettes

Branded
Sub-generic/
private label

Other products
IV-11. 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, 2017. 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

Fluctuate
No
Overall
with no
change decrease clear trend

Explanation and factors

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Page 41

IV-12. Product changes.--Have there been any significant changes in the product range, product mix,
or marketing of 4th tier cigarettes since January 1, 2017?
No

Yes

If yes, please describe and quantify if possible.

IV-13. Smoking alternatives.--Have electronic cigarettes (e-cigs) or vaporizers (vapes) affected the
demand for 4th tier cigarettes?
No

Yes

If yes, please describe.

IV-14. Regulations—
(a) Have changes to regulations or taxes changed your firms desire or ability to sell 4th tier
cigarettes in the United States?
Source

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.

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Page 42

IV-15. Brand loyalty.—
(a) Do consumers of 4th tier cigarettes smoke multiple brands of 4th tier cigarettes?
No

Yes

If yes, please describe.

(b) Do consumers of 4th tier cigarettes also smoke brands of non-4th tier cigarettes?
No

Yes

If yes, please describe.

Yes

If yes, please describe.

IV-16. 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.

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, 2017?
No

Yes

If yes, describe.

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Page 43

IV-17. Supply constraints.--Has your firm refused, declined, or been unable to supply 4th tier
cigarettes since January 1, 2017 (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-18. Tobacco blends.-- Is your firm vertically integrated to blend your own tobacco, or does your firm
purchase tobacco blends from unrelated suppliers?

Only blend own
tobacco

Only purchase
tobacco blends
from unrelated
suppliers

Both blend own
tobacco and
purchase blends
from suppliers

Please describe

IV-19. Raw materials.--How have 4th tier cigarettes raw material prices changed since January 1,
2017?
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 44

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 45

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:

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Page 46

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, 2017. Indicate the share of the quantity of your
firm’s total shipments of 4th tier cigarettes that each of these customers accounted for in 2017.

Customer’s name

1
2
3
4
5
6
7
8
9
10

Contact person

Telephone

City

State

Share
of
2019
sales
(%)

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Page 47

IV-23. Competition from imports.-(a)

Lost revenue.--Since January 1, 2017: To avoid losing sales to competitors selling 4th
tier cigarettes from Korea, did your firm:
Item

Yes

Reduce prices
Roll back announced price increases
(b)

Lost sales.--Since January 1, 2017: 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.

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Page 48

PART V—ALTERNATIVE PRODUCT
V-1.

Comparability of types of 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
In-scope 4th tier cigarettes vs out-ofscope “premium” other cigarettes
In-scope 4th tier cigarettes vs out-ofscope “branded” other cigarettes
In-scope 4th tier cigarettes vs out-ofscope “sub-generic/ private label”
other cigarettes
In-scope 4th tier cigarettes vs out-ofscope all other cigarettes (all three
tiers combined)

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
Comparison physical characteristics and uses:

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V-1.

Page 49

Comparability of types of 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.
(b) Interchangeability.--The ability to substitute the products in the same application.

Product-pair
In-scope 4th tier cigarettes vs
out-of-scope “premium” other
cigarettes
In-scope 4th tier cigarettes vs
out-of-scope “branded” other
cigarettes
In-scope 4th tier cigarettes vs
out-of-scope “sub-generic/
private label” other cigarettes
In-scope 4th tier cigarettes vs
out-of-scope all other cigarettes
(all three tiers combined)

Comparison

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
interchangeability:

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V-1.

Page 50

Comparability of types of 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
In-scope 4th tier cigarettes vs outof-scope “premium” other
cigarettes
In-scope 4th tier cigarettes vs outof-scope “branded” other cigarettes
In-scope 4th tier cigarettes vs outof-scope “sub-generic/ private
label” other cigarettes
In-scope 4th tier cigarettes vs outof-scope all other cigarettes (all
three tiers combined)

Comparison

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
manufacturing facilities, production processes, and
production employees:

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V-1.

Page 51

Comparability of types of 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.
(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.).

Comparison

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
channels of distribution:

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V-1.

Page 52

Comparability of types of 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).

Comparison

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
customer and product perceptions:

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V-1.

Page 53

Comparability of types of 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.
(f) Price.--Whether prices are comparable or differ between the products.

Product-pair
In-scope 4th tier cigarettes vs outof-scope “premium” other
cigarettes
In-scope 4th tier cigarettes vs outof-scope “branded” other
cigarettes
In-scope 4th tier cigarettes vs outof-scope “sub-generic/ private
label” other cigarettes
In-scope 4th tier cigarettes vs outof-scope all other cigarettes (all
three tiers combined)

Comparison

Please provide a narrative discussion for the
comparability ratings you provided in terms of their
price:

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-2.

Page 54

Production, shipment, and inventory data.--Report your firm’s production capacity, production,
shipments, and inventories related to the production of all other cigarettes (not including 4 th 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.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-2.

Page 55

Production, shipment, and inventory data.-All other cigarette producers--Continued
Quantity (in cartons) and value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

2017

2018
0

January-June
2019

2019
0

2020
0

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

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-3.

Page 56

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) of all other cigarettes (i.e.,
cigarettes other than 4th tier cigarettes) by channel of distribution.
Quantity (in cartons) Value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Channels of distribution:
U.S. shipments:
to Distributors
Quantity (M)
Value (N)
to Retailers or End users
Quantity (O)
Value (P)
RECONCILIATION OF CHANNELS.--Please ensure that the quantities and values reported for channels of
distribution (i.e., lines M and O for quantity and lines N and P for value) in each time period equal the quantity
reported for U.S. shipments (i.e., lines D, F, H for quantity and lines E, G, and I for value) 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

2017

2018

January-June
2019

2019

2020

Quantity: M + O – D - F- H = zero ("0"),
if not revise.

Value: N + P – E – G - I = zero ("0"), if
not revise.

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V-4.

Page 57

U.S. shipments, by grade.-- Report your firm’s U.S. shipments (i.e. inclusive of commercial U.S.
shipments, internal consumption, and transfers to related firms) of all other cigarettes (i.e.,
cigarettes other than 4th tier cigarettes) by product grade.
Quantity (in cartons) Value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

U.S. shipments, by grade:
Premium
Quantity (Q)
Value (R)
Branded discount
Quantity (S)
Value (T)
Sub-generic/private label
Quantity (U)
Value (V)
RECONCILIATION OF U.S. SHIPMENTS BY GRADE.--Please ensure that the quantities and values reported for U.S.
shipments by grade (i.e., lines Q, S, and U for quantity and lines R, T, and V for value) in each time period equal
the quantity reported for U.S. shipments (i.e., lines D, F, H for quantity and lines E, G, and I for value) 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

2017

2018

January-June
2019

2019

2020

Quantity: Q + S + U – D - F- H = zero
("0"), if not revise.

Value: R + T + V – E – G - I = zero ("0"),
if not revise.

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V-5.

Page 58

Employment data.--Report your firm’s employment-related data related to the production of all
other cigarettes (i.e., cigarettes other than 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 June periods, calculate similarly and divide by 6.
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

2017

2018

January-June
2019

2019

2020

Average number of PRWs (number)
Hours worked by PRWs (1,000 hours)
Wages paid to PRWs ($1,000)
Explanation of trends:

V-6.

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V-7a.

Page 59

U.S. shipments for sale in:

2017

2018

January-June
2019

2019

2020

RECONCILIATION OF GEOGRAPHIC SHIPMENTS.--Please ensure that the quantities reported for US
shipments by geographical region (i.e., line S, which add all the regions together within that column) in
each time period equal the quantity reported for U.S. shipments from question V-2 (i.e., lines D, F, and 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
Quantity: S – D – F – H = zero ("0"), if not
revise.

2017

2018
0

January-June
2019

2019
0

2020
0

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V-7b.

Page 60

Stem content.--Report the minimum, maximum, and average stem content of your firm's other
cigarettes by tier category.
Stem content
Product

Minimum

Average

Maximum

Share stem content (percent)
“Premium” other cigarettes
“Branded” other cigarettes
“Sub-generic/ private label” other
cigarettes
All other (i.e., non 4th tier)
cigarettes combined

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Page 61

PART V--Continued--FINANCIAL INFORMATION (All OTHER CIGARETTE PRODUCERS)
Address questions on this part of the questionnaire to David Boyland (202-708-4725,
[email protected]).
V-8.

V-9.

Accounting system.--Please provide the following information on your firm’s financial
accounting system.
A.

B.1.

Describe the lowest level of operations (e.g., plant, division, company-wide) for
which financial statements are prepared that include non-4th tier cigarettes:

Does your firm prepare profit/loss statements for non-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:
U.S. GAAP,
IFRS,
cash,
tax, or
other
comprehensive basis of accounting (specify)

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 non-4th tier cigarettes,
as well as specific statements and worksheets) used to compile these data.

V-10.

Cost accounting system.--Briefly describe your firm’s cost accounting system (e.g., standard
cost, job order cost, etc.).

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Page 62

V-11.

Allocation basis.--Briefly describe your firm’s allocation basis, if any, for COGS, SG&A, and
interest expense and other income and expenses.

V-12.

Product listing.--Please list the products your firm produced in the facilities in which your firm
produced non-4th tier cigarettes and provide the share of net sales accounted for by these
products in your firm’s most recent fiscal year.
Products
Non-4th tier cigarettes

Share of sales
%
%
%
%
%

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-13.

Inputs from related suppliers.--Does your firm purchase inputs (raw materials, labor, energy, or
any services) used in the production of non-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 V-14

V-14.

Page 63

No—Skip to question V-16

Inputs from related suppliers detailed.--Please identify the inputs used in the production of
non-4th tier cigarettes that your firm purchases from related suppliers and that are reflected in
question V-16a. 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

V-15.

Inputs purchased from related suppliers.--Please confirm that the inputs purchased from
related suppliers, as identified in V-13, are reported in V-16a (financial results on non-4th tier
cigarettes) in a manner consistent with your firm’s accounting books and records.

Yes

If no--In the space below, please report the valuation basis of inputs
purchased from related suppliers as reported in question V-16a.

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Page 64

V-16a. Operations on non-4th tier cigarettes.--Report the revenue and related cost information
requested below on the non-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 the
designated calendar years and for the specified interim periods. Note: If your company
routinely includes participating manufacturer Master Settlement Agreement (MSA) accruals
and state settlement accruals as an income statement cost/expense component, please
include these amounts in the V-16a line item that most closely reflects the company’s routine
income statement classification. Do not include participating manufacturer MSA accruals and
state settlement accruals in V-16a if they are not routinely included in your company’s income
statement.
Quantity (in cartons) and value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Net sales quantities:
Commercial sales (“CS”)
Internal consumption (“IC”)
Transfers to related firms
(“Transfers”)
Total net sales quantities

Net sales values:2
Commercial sales
Internal consumption
Transfers to related firms
Total net sales values
Cost of goods sold (COGS):
Raw materials

Direct labor
Other factory costs
Total COGS
Gross profit or (loss)
Selling, general, and administrative
(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 V. of this questionnaire.
3 COGS (whether for domestic or export sales) should include costs associated with CS, IC, and Transfers.
1

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Page 65

V-16b. Participating manufacturer MSA and state settlement accruals.--Please report the total
participating manufacturer MSA and state settlement accruals made during the period
examined. Note: Amounts should be reported in the table below whether or not they are
already reflected in table V-16a.
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Value ($1,000)
Participating manufacturer
MSA and state settlement
accruals
Were the above amounts included in table V-16a?

Yes

If yes--please identify the V-16a line item that reflects
participating manufacturer MSA and statement settlement
accruals.

V-16c. Formal accounting treatment of participating manufacturer MSA and state settlement
accruals.--Please describe how your company routinely accounts for its participating
manufacturer MSA and state settlement accruals. In your description please specify the extent
to which these accruals 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 participating manufacturer MSA and state settlement accruals and
obligations are reflected in the company’s formal statement of cash flows and balance sheet,
respectively.
Statement of cash flows:
Balance sheet:

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Page 66

V-16d. Impact of participating manufacturer MSA and state settlement accruals.--Please describe how
participating manufacturer MSA and state settlement accruals directly and indirectly impact the
company’s operations and financial results. As applicable, please respond to this question in
terms of revenue and pricing decisions, including geographic market focus, working capital and
cash flow management, as well as other relevant factors.

V-16e. Financial data reconciliation.--The calculable line items from question V-16a (i.e., total net sales
quantities and values, total COGS, gross profit (or loss), operating income (or loss), 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 nonmaterial differences that may arise due to rounding?

Yes

V-16f. Raw materials.--Please report the share of total raw material costs in 2019 (reported in V-16a)
for the following raw material inputs:
Procurement method

Input

Share of total raw
material costs
(percent)

Primarily
produced by
your firm
and/or
purchased
from related
suppliers

Primarily
purchased by
your firm from
unrelated
suppliers

Tobacco blends
Other material inputs1
Total (should sum to 100 percent)
1

0.0

Please indicate any notable "other" raw materials not expressly identified above and provide the
share of the total raw material costs that they account for:
.

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U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-17.

Page 67

Nonrecurring items (charges and gains) included in non-4th tier cigarettes financial results.-For each annual and interim period for which financial results are reported in question V-16a,
please specify all material (significant) nonrecurring items (charges and gains) in the schedule
below, the specific question V-16a 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 V-16a; i.e., if an aggregate nonrecurring item has been allocated to
question V-16a, only the allocated value amount included in question V-16a 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 non4th tier cigarettes in question V-16a.
Calendar years
Item

2017

2018

January-June
2019

2019

2020

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 from Korea (Final)
V-18.

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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 V-13 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 V-13 identify where these items
are reported in question V-16a.

V-19a. Asset values.--Report the total assets (i.e., both current and long-term assets) associated with
the production, warehousing, and sale of non-4th tier cigarettes. If your firm does not maintain
some or all of the specific asset information necessary to calculate total assets for non-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 V-16a. Provide data as of the end of the designated calendar years.
Note: Total assets should reflect net assets after any accumulated depreciation and allowances
deducted. Total assets should be allocated to operations on non-4th tier cigarettes if these
assets are also related to other products.
Value (in $1,000)
Calendar years
Item

2017

2018

2019

Total assets (net)
V-19b. Description of reported assets.-- Please describe the main asset categories (both current and
long-term assets) in the above response. 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.

Contains Business Proprietary Information
U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-20a.

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Capital expenditures and research and development expenses.--Report your firm’s capital
expenditures and research and development expenses for non-4th tier cigarettes. Provide data
for the designated calendar years and for the specified interim periods.
Value (in $1,000)
Calendar years
Item

2017

2018

January-June
2019

2019

2020

Capital expenditures
R&D expenses
V-20b. Description of reported capital expenditures.-- Please describe the nature, focus, and
significance of your firm’s reported capital expenditures in the above response. If no capital
expenditure data were reported, please explain the reason.

V-20c. Description of reported R&D expenses.-- Please describe the nature, focus, and significance of
your firm’s reported R&D expenses in the response above. If no R&D expenses were reported,
please explain the reason.

Contains Business Proprietary Information
U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-21.

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Data consistency and reconciliation.--Please confirm that your firm’s financial data for
questions V-16a, 19a, and 20a are reported on a calendar year basis:
Please note the quantities and values reported in question V-16a should reconcile with the data
reported in question V-2 (including export shipments).

RECONCILIATION OF TRADE VS FINANCIAL DATA.--Please ensure that the quantities and values reported
for total shipments in part V-2 equal the quantities and values reported for total net sales in V-16a of this
questionnaire in each time period. If the calculated fields below return values other than zero (i.e., “0”)
please explain the discrepancy below.
Calendar years ended
Reconciliation

2017

2018

January-June
2019

2019

2020

Quantity: Trade data from question
V-2 (lines D, F, H, and J) less financial
total net sales quantity data from
question V-16a, = zero ("0").

Value: Trade data from question V-2
(lines E, G, I, and K) less financial total
net sales value data from question V16a, = zero ("0").

Do these data in question V-16a reconcile with data in question V-2?
Yes

If no, please explain.

Contains Business Proprietary Information
U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-22.

Page 71

Effects of imports on investment.--Since January 1, 2017, 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.

(please describe)

Contains Business Proprietary Information
U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-23.

Page 72

Effects of imports on growth and development.--Since January 1, 2017, 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)

Contains Business Proprietary Information
U.S. Producers’ Questionnaire – 4th Tier Cigarettes from Korea (Final)
V-24.

Anticipated effects of imports.--Does your firm anticipate any negative effects due to imports
of 4th tier cigarettes from Korea?
No

V-25.

Page 73

Yes

If yes, my firm anticipates negative effects as follows.

Other explanations.--If your firm would like to further explain a response to a question in Part V.
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 from Korea (Final)

Page 74

HOW TO FILE YOUR QUESTIONNAIRE RESPONSE
This questionnaire is available as a “fillable” form in MS Word format on the
Commission’s website at:
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:
https://www.usitc.gov/investigations/701731/2019/4th_tier_cigarettes_korea/preliminary.htm.
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 producer questionnaire
Author	lawrence.jones
File Modified	2020-07-17
File Created	2020-07-17