*EPF310 04/02/2003
Commerce Dept. Preliminary Ruling Says Korean Chips Subsidized
(Net subsidy rates on imports of DRAMS range up to 57 percent) (220)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. Department of Commerce has made a preliminary determination that semiconductors imported to the United States from South Korea were subsidized.

In an April 1 fact sheet the department calculated that the net subsidy rates for these dynamic random access memory semiconductors (DRAMS) ranged up to 57 percent.

Imposition of countervailing duties to offset unfair subsidies requires final affirmative determinations from both the Commerce Department that subsidies were paid and from the U.S. International Trade Commission (USITC) that the imports injured or threatened U.S. industry.

The final Commerce determination is expected in June. In the meantime the U.S. Customs Service will collect cash or a bond on any subject imports equal to the net subsidy rate. The money would be returned after a negative determination.

Following are the preliminary net subsidy rates, according to Commerce:

-- Samsung Electronics Co., Ltd., 0.16 percent.
-- Hynix Semiconductor Inc. (formerly Hyundai Electronics Industries Co., Ltd.), 57.37 percent.
-- all others, 57.37 percent.

From January through June 2002 U.S. imports from Korea were valued at $610.9 million for individual DRAMS, $726.1 million for DRAM memory modules and $13.3 million for DRAM wafers.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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