Hynix prepares to pay EU tariff.Byline: From Register-Guard and news service reports Hynix Semiconductor Inc.'s computer chip factory in Eugene may become a key element in the Korea-based chip company's effort to avoid steep import duties the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community may soon impose, news services reported. Hynix is taking steps to cope with a 35 percent duty that the EU may soon impose against the chipmaker chip·mak·er n. A manufacturer of electronic and integrated circuit chips. for allegedly receiving illegal subsidies from the Korean government at its Korean factories, an official told Electronic Buyers News. One way to avoid the EU duty might be to ship to Europe chips that are made at the Eugene factory, said Farhad Tabrizi, vice president of worldwide memory marketing at Hynix. The Eugene plant isn't part of the European countervailing duty Noun 1. countervailing duty - a duty imposed to offset subsidies by foreign governments tariff, duty - a government tax on imports or exports; "they signed a treaty to lower duties on trade between their countries" probe. The EU had notified member countries that it will make its preliminary decision public at the end of April, Tabrizi said. Tabrizi confirmed early reports that the EU indicated the ruling would levy 35 percent penalty duties on Hynix dynamic random access memory Dynamic random access memory (DRAM) is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit. Since real capacitors leak charge, the information eventually fades unless the capacitor charge is refreshed periodically. chips, the news service said. A Hynix official told the Financial Times of London that the company is "pretty confident we can survive" an EU tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic . Hynix's rivals in Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. that the Korean government has unfairly helped Hynix by having government-controlled banks repeatedly bail out the company by rolling over debt and converting debt to stock. In the United States, the Commerce Department is evaluating those complaints and is set to make a preliminary ruling by the end of this month. If the EC imposes chip duties, Hynix has several options to continue to ship its chips to European manufacturers. Tabrizi said Hynix would ship chips to contract manufacturers in other parts of the world who make products for European system makers, which he said would not be covered by the EC-levied penalty tariffs. He also said Hynix could ship chips to Europe from its Eugene plant. |
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