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WTO says Japan's tariff on Hynix chips illegal

Posted: 20 Jul 2007 ?? ?Print Version ?Bookmark and Share

Keywords:WTO ruling? Hynix chips? Japan tariff?

The World Trade Organization (WTO) ruled July 13 that Japan has illegally applied countervailing duties on DRAM chips made by South Korea-based Hynix Semiconductor Inc., under the international trade rules.

The South Korean government filed a complaint before the WTO in March 2006 regarding Japan's 27.2 percent tariff on Hynix memory chips. The tariffs were imposed on account of allegations that Hynix received subsidies from the government.

While the WTO ruling found various violations by Japan, it denied South Korea's request to rescind the tariffs, saying that the means by which Japan wishes to comply with the ruling is for that country to determine.

Japan-based Elpida Memory and Micron Japan Ltd both sought the penalty in June 2004, accusing Hynix of taking in $11.86 billion illegal government subsidies. Japan launched an investigation in August 2004.

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