U.S. scraps punitive duties on Hynix chips

SEOUL, Oct. 6 (Yonhap) -- The United States has decided to scrap punitive tariffs
on semiconductors made by Hynix Semiconductor Inc., paving the way for the
world's second-largest maker of computer memory chips to increase exports to its
biggest market, South Korea's Trade Ministry said Monday.
The decision by the U.S. Department of Commerce on Oct. 3 is applied to exports
made by Hynix after Aug. 11, according to the ministry. The U.S. decision follows
a similar one made by the European Union in April this year.
Since 2003, the European Union (EU), the United States and Japan have levied
punitive tariffs on chips made by Hynix, claiming that the company was bailed out
by state-run lenders in 2002, which amounts to government subsidies.
The U.S. levied the 44.29-percent punitive duties on Hynix in 2003 after Micron
Technology Inc. said the South Korean government's bailout of Hynix amounted to
an illegal subsidy.
In August this year, the U.S. lowered duties to 4.9 percent from 23.8 percent for
the company's chip exports to the U.S. in 2006. The U.S. commerce department in
March cut the tariff to 23.8 percent from 31.9 percent for exports in 2005.
In the meantime, South Korea last month asked the Geneva-based World Trade
Organization (WTO) to look into Japan's punitive tariffs on computer memory chips
made by Hynix, saying it could take retaliatory measures if necessary.
In August, Japan said it would reduce its punitive duties imposed on Hynix chips
to 9.1 percent from 27.2 percent, and that the decision will take effect by 2010.
The announcement came after the WTO ordered the tariff be abolished by Sept. 1 of
this year.