[Intl-tobacco] US Protests Tariffs on Imported Cigarettes

[Robert Weissman]

US Protests Tariffs on Imported Cigarettes

by Kim Young-jin / hellojin@chosun.com
Source: Chosun Ilbo, Sunday, 6/10/01

The government's plan to levy 40 percent customs duties on imported
cigarettes has met with opposition from the US government, which has
formally requested that duties be lowered.

The US protest is first time a government has formally opposed duties on
cigarettes. Private cigarette exporters in Japan and Britain have in the
past requested that customs duties be lowered.

The government plans to meet vwith US trade representatives, who are due
to arrive in Korea this week, to discuss the issue.

A high-ranking official at the Ministry of Finance and Economy said Sunday
that the USTR had sent a letter to the ministry, asking that customs
duties be lowered on the grounds that sales of US made cigarettes will be
hurt if such a high rate of duty is levied.

The ministry had earlier notified the US government of a pending bill to
impose the 40 percent duty on imported cigarettes beginning from July.

In the past, there were no such duties on imported cigarettes.

Seoul explained that it imposed the new duties on imported cigarettes
because cigarette manufacturing in Korea will no longer be monopolized and
foreign companies are free to produce cigarettes in Korea.