ties, the Korean government shall rely on cigarette importers' best available data for sales of imported cigarettes that took place in such localities. In submitted, and in changing the current system for collecting taxes on imported cigarettes (should the Korean government decide to do so), the Korean government shall consult with importers of foreign cigarettes through their duly authorized representative representing the collective opinion of such importers, who shall submit their views in a timely manner prior to the introduction of the cigarette tex increase referenced in paragraph 2(a) above. Prior to such tax increase, both governments shall agree on appropriate mechanisms to determine the requirements shall agree on appropriate mechanisms to determine the requirements for the submission of the best available data and to allocate revenue on a nondiscriminatory basis. Such mechanisms shall be implemented on or before the effective date of such tax increase.
4. The Korean government will continue to maintain a zero percent import tariff on cigarettes, in accordance with Article V.B. of the ROU."
Article Ⅵ of the ROU is amended in its entirety to read as follows:
"To promote public health, the Korean government may take any legislative or administrative measures to restrict advertising and promotional activities for cigarette sales. Any such measures, however, shall be applied in a non-discriminatory manner to all cigarettes, whether imported or of national origin."
Article Ⅶ of the ROU is amended by adding the following new section:
"D. Before it adopts, or proposes to adopt, any changes in laws or regulations relating to cigarette taxation or advertising and promotional activity, the Korean government shall notify the U.S. government of its intentions at the time the Korean government provides notice to the public pursuant to its relevant laws or regulations, or twenty days before the effective date of any such change, whichever date is earlier, unless emergency circumstances prevent the provision of such notice. Prior to the adoption of any such change, the Korean government agrees to consult in a timely manner with the U.S. government upon request, with a view to ensuring that any such proposed change does not have a discriminatory effect on imports."
This letter and your letter in reply will constitute our mutual understanding on the amendment of the ROU, which will become effective as of the date of my receipt of your letter confirming our mutual understanding.
I have further the honor to confirm that your letter reflect the mutual understanding reached between our two governments on the issue of market access for cigarettes and that your letter and this letter in reply constitute our mutual understanding on the amendment of the ROU.
Furthermore, with respect to Korean taxes on cigarettes selling for 200 won or less at the retail level, the United States expects that Korean production of such cigarettes will continue to increase.