United States

Department

of Agriculture

www.ers.usda.gov

Electronic Outlook Report from the Economic Research Service

TBS-2002-02

February 2003 U.S. Tobacco Import Update

Abstract

U.S. imports (arrivals) of foreign-grown leaf and stems surged from 468 million pounds

in 2000/01 (July-June) to 587 million pounds during 2001/02 (July/June), a gain of 25

percent. Stemmed flue-cured, burley, and stems accounted for the gain. During the same

period, imports for consumption of leaf and stems advanced 24 percent to reach 572

million pounds. Use of foreign-grown flue-cured gained while burley and Oriental use

fell. Foreign-grown stocks of flue-cured and Oriental were depleted and stocks of burley

increased. Imports of flue-cured and burley tobacco continue to be restricted by a tariffrate quota. 

Keywords: Imports, arrivals, Oriental, flue-cured, burley, tariff-rate quota. 

Thomas C. Capehart, Jr.1

1Senior economist, Market and Trade Economics Division, Economic Research Service, USDA.
Introduction

This article updates those published annually in the

September 1992-2001 issues of the Tobacco Situation

and Outlook report.

U.S. imports (arrivals) of foreign-grown leaf and

stems surged from 468 million pounds in 2000/01

(July-June) to 587 million pounds during 2001/02,

for a gain of 25 percent. Stemmed “not specifically

provided for” (NSPF), much of which is burley and

stems, contributed 81 million pounds of the 120-million-pound gain. Other categories were relatively stable. During the same period, imports for consumption

advanced 111 million pounds to 572 million.

Background

U.S. leaf imports for consumption had climbed from

413 million pounds in 1990 to more than 1 billion

pounds in 1993. The main reason for this surge was

the rising popularity in the United States and abroad

for low- and mid-priced cigarette brands (discounts).

Furthermore, U.S. cigarette exports were increasing

rapidly, boosting demand for lower priced foreign leaf.

To meet this demand, manufacturers imported an

increasing amount of foreign tobacco. After the high

levels reached in 1993, imports where 44 percent of

domestic cigarette leaf disappearance and Congress

acted to restrict imports by implementing the

Domestic Marketing Assessment (DMA).

The DMA was in effect from January 1, 1994, to

September 13, 1995. If the foreign leaf content of a U.S.

cigarette manufacturer exceeded 25 percent, a penalty

was assessed on the manufacturer for calendar 1994

only. The DMA was eliminated on September 13, 1995,

(retroactive to January 1, 1995) and a tariff-rate quota

(TRQ) was proclaimed for cigarette leaf tobacco, mainly flue-cured and burley. The proclamation also eliminated duties on Oriental and cigar wrapper, binder, and

filler tobacco. Imports of cigarette leaf tobaccos which

exceed predetermined quota levels will be subject to an

import duty of 350 percent ad valorem. A draw-back

provision allows most of the duty to be refunded if the

same leaf that is imported is re-exported as product.

Use of Imported Leaf Gains Relative to

Domestic Use

Domestic leaf use made a short-lived comeback in

2000/01 but lost ground again in 2001/02. On a farmsales weight basis, use of domestic leaf was 780.2 million pounds in 2000/01 and imported leaf was 579.0

million pounds. During 2001/02, domestic leaf slipped

11 percent or 84.2 million pounds, reaching 696.0 million pounds. Total foreign-grown leaf use advanced 1

percent to 584.0 million pounds. Estimated U.S. use of

imported flue-cured tobacco jumped 29 percent or

nearly 50 million pounds, while use of imported burley (estimated based on October-June data) slipped

26.1 million pounds or 11 percent (tables 1 and 2 and

figs. 1 and 2). During the same period, foreign-grown

flue-cured stocks held by U.S. tobacco dealers and

manufacturers fell 7 percent. Burley stocks advanced 5

percent (table 3).

2 Economic Research Service, USDA

Flue-cured disappearance

Mil. lb

Source: ERS, USDA.

Figure 1

1990 92 94 96 98 2000

0

200

400

600

800

1,000

Domestic

Foreign

Burley disappearance

Mil. lb

Source: ERS, USDA.

Figure 2

1990 92 94 96 98 2000

0

100

200

300

400

500

600

700

Domestic

Foreign
Economic Research Service, USDA 3

Table 1--Estimated U.S. imports of flue-cured and burley tobacco, and domestic use: 1969-2001 (farm-sales weight)

Flue-cured Burley

Year Domestic Imports Domestic Imports

beginning Imports disappear- Total share of Imports disappear- Total share of

July 1 1/ ance use total 1/ ance 2/ use total

---------------Million pounds--------------- Percent ---------------Million pounds--------------- Percent

1969 5.7 645.9 651.6 0.9 3.3 507.1 510.4 0.6

1970 10.6 640.1 650.7 1.6 3.2 503.0 506.2 0.6

1971 11.2 662.5 673.7 1.7 4.6 515.2 519.8 0.9

1972 12.7 664.2 676.9 1.9 8.9 534.5 543.4 1.6

1973 20.4 703.4 723.8 2.8 30.7 533.1 563.8 5.4

1974 23.1 652.3 675.4 3.4 47.7 518.8 566.5 8.4

1975 24.4 670.6 695.0 3.5 46.7 510.1 556.8 8.4

1976 30.8 634.0 664.8 4.6 37.9 489.6 527.5 7.2

1977 55.0 608.2 663.2 8.3 85.4 494.8 580.2 14.7

1978 60.1 584.1 644.2 9.3 89.1 502.8 591.9 15.1

1979 84.8 563.1 647.9 13.1 113.6 498.5 612.1 18.6

1980 72.7 529.4 602.1 11.7 136.9 477.6 614.5 22.3

1981 63.3 488.8 552.1 11.5 109.7 463.9 573.6 19.1

1982 103.1 478.5 581.6 17.7 141.3 444.1 585.4 24.1

1983 94.4 3/ 441.6 536.0 17.6 135.0 3/ 388.7 523.7 25.8

1984 120.1 3/ 454.2 574.3 20.9 163.8 3/ 402.6 566.4 28.9

1985 151.0 4/ 476.5 627.5 24.1 137.8 4/ 425.0 562.8 24.5

1986 176.6 4/ 479.6 656.2 26.9 120.4 4/ 401.7 522.1 23.1

1987 209.7 4/ 537.3 747.0 28.1 162.4 4/ 478.1 640.5 25.4

1988 146.5 4/ 522.1 668.6 21.9 117.9 4/ 414.3 532.2 22.2

1989 109.0 4/ 566.7 675.6 16.1 139.9 4/ 445.7 585.6 23.9

1990 141.2 4/ 609.0 750.2 18.8 134.9 4/ 474.9 609.8 22.1

1991 137.6 4/ 471.2 608.8 22.6 165.6 4/ 432.2 597.9 27.7

1992 217.3 4/ 508.7 726.0 29.9 178.8 4/ 384.8 563.6 31.7

1993 193.3 4/ 433.4 626.7 30.5 199.6 4/ 399.4 599.0 33.3

1994 170.5 4/ 569.3 739.8 23.0 161.0 4/ 468.1 629.1 25.6

1995 162.5 4/ 530.6 693.1 23.4 148.6 4/ 386.1 534.7 27.8

1996 211.5 4/ 556.1 767.6 27.6 206.4 4/ 446.3 652.7 31.6

1997 226.5 4/ 541.0 767.5 29.5 207.9 4/ 379.2 608.9 37.7

1998 200.5 4/ 492.1 692.6 28.9 172.6 4/ 351.6 524.2 32.9

1999 211.6 4/ 436.9 648.5 32.6 219.1 4/ 273.3 492.4 44.5

2000 168.6 4/ 479.2 647.8 26.0 232.9 4/ 294.0 5/ 526.9 44.2

2001 217.9 4/ 388.9 606.8 35.9 206.8 4/ 299.1 5/ 505.9 40.9

1/ Imports for consumption (duty paid) of leaf, scrap, and manufactured or unmanufactured (beginning 1980), prorated according

 to reported stocks of imported flue-cured and burley. 2/ Marketing year beginning October 1. 3/ General imports adjusted for stocks

 change. 4/ Volume inspected by Agricultural Marketing Service adjusted for stock change. 5/ Estimated.

Source: Economic Research Service, USDA.
4 Economic Research Service, USDA

Table 2--Estimated disappearance of U.S.-grown and imported cigarette tobacco, 1969-2001 (farm-sales weight)

Year Domestic Foreign-grown Total

beginning Flue- Burley Flue- Burley Oriental disappear- ForeignJuly 1 cured 1/ Maryland Total cured 2/ 2/ 3/ Total ance grown

Million pounds Percent

1969 645.9 507.1 29.1 1,182.1 5.7 3.3 170.6 179.6 1,361.7 13.2

1970 640.1 503.0 27.6 1,170.7 10.6 3.2 189.3 203.1 1,373.8 14.8

1971 662.5 515.2 17.5 1,195.2 11.2 4.6 204.3 220.1 1,415.3 15.6

1972 664.2 534.5 13.4 1,212.1 12.7 8.9 187.0 208.6 1,420.7 14.7

1973 703.4 533.1 13.8 1,250.3 20.4 30.7 196.3 247.4 1,497.7 16.5

1974 652.3 518.8 25.0 1,196.1 23.1 47.7 196.6 267.4 1,463.5 18.3

1975 670.6 510.1 26.0 1,206.7 24.4 46.7 199.6 270.7 1,477.4 18.3

1976 634.0 489.6 17.4 1,141.0 30.8 37.9 185.1 253.8 1,394.8 18.2

1977 608.2 494.8 19.6 1,122.6 55.0 85.4 211.5 351.9 1,474.5 23.9

1978 584.1 502.8 21.1 1,108.0 60.1 89.1 207.8 357.0 1,465.0 24.4

1979 563.1 498.5 23.6 1,085.2 84.8 113.6 204.8 403.2 1,488.4 27.1

1980 529.4 477.6 18.6 1,025.6 72.7 136.9 202.6 412.2 1,437.8 28.7

1981 488.8 463.9 27.9 980.6 63.3 109.7 207.3 380.3 1,360.9 27.9

1982 478.5 444.1 26.0 948.6 103.1 141.3 207.9 452.3 1,400.9 32.3

1983 441.6 388.7 29.7 860.0 94.4 4/ 135.0 4/ 195.8 425.2 1,285.2 33.1

1984 454.2 402.6 28.7 885.5 120.1 4/ 163.8 4/ 196.9 480.8 1,366.3 35.2

1985 476.5 424.9 26.0 927.4 151.0 5/ 137.8 5/ 196.8 485.6 1,413.0 34.4

1986 479.6 401.8 23.9 905.3 176.6 5/ 120.4 5/ 227.4 524.4 1,429.7 36.7

1987 537.3 478.1 24.8 1,040.2 209.7 5/ 162.4 5/ 212.3 584.4 1,624.6 36.0

1988 522.1 414.3 21.4 957.8 146.5 5/ 117.9 5/ 192.0 456.4 1,414.2 32.3

1989 566.7 445.7 22.7 1,035.1 109.0 5/ 139.9 5/ 210.3 459.2 1,494.3 30.7

1990 609.0 474.9 16.8 1,098.2 141.2 5/ 134.9 5/ 237.6 513.7 1,611.9 31.9

1991 471.2 432.2 16.4 919.9 137.6 5/ 165.6 5/ 183.3 4/ 486.5 1,406.4 34.6

1992 508.7 384.8 13.9 907.4 217.3 5/ 178.8 5/ 212.2 4/ 608.3 1,515.7 40.1

1993 433.4 399.4 11.8 844.6 193.3 5/ 199.6 5/ 177.2 4/ 570.1 1,414.7 40.3

1994 569.3 468.1 12.7 1,021.8 170.5 5/ 161.0 5/ 191.8 4/ 523.3 1,545.1 33.9

1995 530.6 386.1 8.1 924.8 162.5 5/ 148.6 5/ 196.7 4/ 507.8 1,432.6 35.0

1996 556.1 446.3 6.6 1,009.0 211.5 5/ 206.4 5/ 196.5 4/ 614.4 1,623.4 37.8

1997 541.0 379.2 8.1 928.3 226.5 5/ 207.9 5/ 198.4 4/ 632.8 1,561.1 40.5

1998 492.1 351.6 7.0 850.8 200.5 5/ 172.6 5/ 170.4 4/ 543.5 1,394.3 39.0

1999 436.9 273.3 6/ 6.0 6/ 716.1 211.6 5/ 219.1 5/ 218.5 4/ 649.2 1,365.3 47.5

2000 479.2 294.0 6/ 7.0 6/ 780.2 168.6 5/ 232.9 5/ 177.5 4/ 579.0 1,359.2 42.6

2001 388.9 299.1 6/ 8.0 6/ 696.0 217.9 5/ 206.8 5/ 159.3 4/ 584.0 1,280.0 45.6

1/ Marketing year beginning October 1. 2/ Imports for consumption (duty paid) of leaf, scrap, and manufactured and unmanufactured 

(beginning 1980) prorated according to reported stocks of imported flue-cured and burley. 3/ Imports for consumption of Oriental leaf 

and scrap. 4/ General imports adjusted for stock change. 5/ Volume inspected by Agricultural Marketing Service adjusted for stock

change. 6/ Estimated. 

Source: Economic Research Service, USDA.
Economic Research Service, USDA 5

Table 3--Imported foreign-grown cigarette leaf stocks, by quarters, 1986-2002 

Year Jan. 1 Apr. 1 July 1 Oct. 1 Jan. 1 Apr. 1 July 1 Oct. 1

Million pounds 1/

----Foreign-grown flue-cured---- ----Foreign-grown oriental and aromatic----

1986 231 217 258 251 346 391 375 340

1987 211 225 223 215 380 427 425 392

1988 193 199 196 212 400 376 349 296

1989 197 178 183 199 330 332 334 293

1990 181 170 188 202 325 348 339 296

1991 185 169 189 198 313 331 341 326

1992 194 191 231 269 396 405 401 356

1993 259 241 288 298 334 369 385 354

1994 277 276 296 287 350 330 349 352

1995 339 352 331 352 342 342 328 280

1996 364 391 391 406 308 428 332 306

1997 400 384 451 435 323 352 369 334

1998 434 406 416 395 335 356 352 339

1999 377 352 350 341 344 328 329 292

2000 352 302 300 303 295 271 261 241

2001 297 282 284 282 220 230 223 208

2002 281 261 265 204 216 214

-----Foreign-grown burley----- ----Total imported cigarette leaf----

1986 258 248 251 250 835 856 884 841

1987 240 232 225 199 831 884 873 805

1988 195 175 168 159 787 750 713 667

1989 171 157 170 151 698 667 687 643

1990 153 154 148 167 659 672 675 664

1991 166 159 180 228 664 660 710 752

1992 235 224 230 247 825 820 862 872

1993 259 285 296 319 866 895 969 972

1994 295 281 292 295 922 887 936 934

1995 323 326 298 305 1,003 1,019 957 937

1996 312 298 290 311 998 1,128 1,024 1,032

1997 310 221 325 374 1,043 966 1,156 1,154

1998 368 325 300 325 1,149 1,097 1,079 1,070

1999 315 297 280 286 1,046 988 970 930

2000 303 281 269 283 959 866 840 837

2001 284 269 238 269 791 790 753 766

2002 308 282 251 801 767 737

1/ Farm-sales weight.

Source: Economic Research Service, USDA.
Based on arrival data (adjusted for stock changes),

Oriental leaf use fell 10 percent in 2001/02 after falling

19 percent the previous year. Stocks on hand declined 4

percent from July 1, 2001, to July 1, 2002. Oriental

leaf use reached a recent peak in 1999 of 218.5 million

pounds. Use during 2001/02 was 159.3 million pounds. 

Tariff-Rate Quota Activity

For the period September 13, 2001, through September

12, 2002, which represents the 12 months upon which

the TRQ is calculated, U.S. cigarette leaf imports

(flue-cured and burley but excluding Oriental) are limited to 332.2 million pounds. For the TRQ year from

September 13, 2001-September 12, 2002, imports

under the TRQ were 74 percent of the limit, or 247.4

million pounds. Only 52.6 percent of the total quota

allocation was imported the previous year.

Under the TRQ, the volume of tobacco imports for

consumption under nine harmonized tariff subheadings, primarily flue-cured and burley, during the period

from September 13 in any year to September 12 of the

following year, are restricted as shown in table 4.

Foreign-Grown Cigar Leaf Use

Cigar leaf imports for consumption during 2001-02

(July-June) were 90.3 million pounds (farm-sales

weight). Year-earlier imports were 109.0 million

pounds. U.S. production recovered during the 2001

season but still remains below the levels of the 1990s. 

During 2000/01, imported cigar leaf represented a

record-high 94 percent of the 124.9-million-pound total

cigar leaf disappearance (use) in the United States,

higher than usual levels. Estimated total 2001/02 cigar

leaf use is 132.0 million pounds, consisting of 84 percent foreign-grown leaf. Use in 1999/2000 was 116.9

million pounds.

6 Economic Research Service, USDA

Table 4--Imports under the tariff-rate quota for 

September 13, 2001, through September 12, 2002 1/

Country

2001/02 2001/02 

quota imports TRQ used

Mil. lb declared weight Percent

Argentina 23.7 13.6 58

Brazil 176.8 173.2 98

Chile 0.0 0.0 0

EU 22.0 9.9 45

Guatemala 22.0 6.9 31

Malawi 26.5 20.6 78

Philippines 6.6 1.2 19

Thailand 15.4 7.2 47

Zimbabwe 26.5 11.7 44

Other 2/ 6.6 3.0 100

Total 326.2 247.4 74

1/ U.S. Tariff Schedule line items subject to the tariff-rate quota 

(TRQ) include flue-cured and light air-cured tobacco, including 

burley, which are used in the manufacture of cigarettes for 

consumption in the United States.

2/ A TRQ of 6.6 million pounds is available to all countries, 

other than the nine designated quota recipient countries, and

is allocated on a first come/first serve basis.

Source: U.S. Customs Service.
Economic Research Service, USDA 7

Table 5--Estimated disappearance of U.S.-grown and imported cigar tobacco, 1969-2001 (farm-sales weight)

Year beginning 

July 1 1/ Domestic Foreign-grown 2/ Total disappearance Foreign-grown 2/

Million pounds Percent

1969 94.9 81.3 176.2 46.1

1970 84.8 92.8 177.6 52.3

1971 88.5 97.2 185.7 52.3

1972 77.1 103.8 180.9 57.4

1973 72.6 141.1 213.7 66.0

1974 62.8 107.3 170.1 63.1

1975 55.4 112.5 167.9 67.0

1976 53.7 117.2 170.9 68.6

1977 50.0 131.2 181.2 72.4

1978 53.2 67.8 121.0 56.0

1979 53.8 66.1 119.9 55.1

1980 52.5 79.3 131.8 60.2

1981 56.1 70.4 126.5 55.7

1982 47.3 65.6 112.9 58.1

1983 45.2 79.1 124.3 63.6

1984 42.5 69.5 112.0 62.1

1985 41.3 56.1 97.4 57.6

1986 47.2 47.2 94.4 50.0

1987 42.9 57.6 100.5 57.3

1988 31.4 39.5 70.9 55.7

1989 31.6 42.9 74.5 57.6

1990 31.9 51.4 83.3 61.7

1991 28.1 79.2 107.2 73.9

1992 26.2 82.9 109.1 76.0

1993 26.4 74.6 102.5 72.8

1994 26.4 76.5 104.2 73.4

1995 23.1 79.9 103.0 77.6

1996 26.7 80.0 106.7 75.0

1997 19.4 89.7 109.1 82.2

1998 22.0 87.0 109.0 79.8

1999 16.9 99.8 116.7 81.7

2000 8.0 116.9 124.9 93.6

2001 3/ 21.3 110.7 132.0 83.9

1/ Marketing year beginning July 1 except beginning October 1 for domestically grown filler and binder.

2/ Imports for consumption (leaf and scrap). 

3/ Estimate.

Source: Economic Research Service, USDA.