BRUSSELS, Belgium -- The fifteen member states within the European Union confirmed Tuesday (August 12, 2003) that they have each imposed a 34.8 percent import tariff on DRAMs from Hynix Semiconductor Inc., according to a Dow Jones report.
The imposition of tariffs was expected after a ruling that Hynix had been unfairly subsidized by the South Korean government.
The European Commission, the executive arm of the European Union, had authorized preliminary tariffs in April. The new decision extends the duties to up to five years, according to the report.
Thirteen of the 15 European Union member-state governments agreed on the tariffs, with only France and the Netherlands voting against, the report said, citing a statement from the European Union.
Samsung was not hit with tariffs, according to the report.
The nature of the subsidy is that state-run banks, such as Korea Exchange Bank, restructured loans in debt-for-equity swaps. The European action follows a similar ruling in the U.S. to slap a 44.71 percent import tariff on chips made by Hynix.
South Korea has said it plans to take the U.S. and the E.U. before the World Trade Organization for imposing the tariffs.