Notice of initiation of an anti-subsidy proceeding concerning imports of certain electronic microcircuits known as DRAMs (dynamic random access memories) originating in the Republic of Korea
Date: 2002-07-25
Institutions: European Commission
Subjects: South Korea, anti-subsidy proceeding, complaint to the Commission, electronic component, exchange of information, import, originating product

C 177/2

EN

Official Journal of the European Communities

25.7.2002

Notice of initiation of an anti-subsidy proceeding concerning imports of certain electronic micro-
circuits known as DRAMs (dynamic random access memories) originating in the Republic of
Korea

(2002/C 177/02)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1) (‘the Basic Regu-
lation’), alleging that imports of certain electronic microcircuits
known as DRAMs (dynamic random access memories), orig-
inating in the Republic of Korea (‘country concerned’), are
being subsidised and are thereby causing material
injury to
the Community industry.

4. Allegation of injury

The complainant has provided evidence that imports of the
concerned from the Republic of Korea have
product
increased overall
in absolute terms and in terms of market
share.

1. Complaint

The complaint was lodged on 10 June 2002 by Infineon Tech-
a major
nologies AG (‘the
proportion,
the total
Community production of DRAMs.

representing
in this case more than 50 %, of

complainant’)

2. Product

The product allegedly being subsidised is certain electronic
microcircuits known as DRAMs
(dynamic random access
memories) of all types, densities (including future densities)
and variations, whether in processed wafer or die form, or
assembled or further processed in modules or other aggregate
form, manufactured using variations of Metal Oxide Semicon-
ductor (MOS) process technology,
including complementary
MOS types (CMOS), irrespective of access speed, configuration,
package or frame, etc., originating in the Republic of Korea
(‘the product concerned’), currently classifiable within CN codes
8542 21 11,
8542 21 17,
8542 21 01, 8542 21 05 and 8548 90 10, ex 8473 30 10
and ex 8473 50 10. These CN codes are only given for
information.

8542 21 15,

8542 21 13,

3. Allegation of subsidisation

It is alleged that the producers of the product concerned from
the Republic of Korea have benefited from a number of
the Republic of
subsidies granted by the Government of
losses,
Korea. These subsidies are tax benefits for export
syndicated and other subsidised loans (including rate cuts and
extension of maturities), State guaranteed export credits, a
Korea Development Bank debenture programme,
the Seoul
Guarantee Insurance Company programme, debt roll-overs,
and a debt for equity swap programme.

The total subsidy is estimated to be significant.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the government of the
Republic of Korea and confer a benefit to the recipients, i.e. to
exporters/producers of DRAMs. They are alleged to be
contingent upon export performance, or otherwise limited to
certain companies and therefore specific and countervailable.

(1) OJ L 288, 21.10.1997, p. 1.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the market share held and the level of
resulting in
prices charged by the Community industry,
substantial adverse effects on the overall performance and the
financial situation of the Community industry.

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the Basic
Regulation.

5.1. Procedure for the determination of subsidisation and

injury

The investigation will determine whether the product
described in point 2 originating in the Republic of
Korea is being subsidised and whether this subsidisation
has caused injury.

(a) Questionnaires

In order to obtain the information it deems necessary
for its investigation, the Commission will send ques-
tionnaires to the Community industry and to any
association of producers in the Community, to the
exporters/producers in the Republic of Korea, to any
association of exporters/producers, to the importers, to
any association of importers named in the complaint,
and to the authorities of the Republic of Korea.

event,

should

contact

all parties

In any
the
Commission forthwith by fax, but not later than the
time limit set out in point 6(a) of this notice, in order
to find out whether they are listed in the complaint
and, if necessary, request a questionnaire, given that
the time limit set in point 6(b) of this notice applies to
all such interested parties.

25.7.2002

EN

Official Journal of the European Communities

C 177/3

(b) Collection of information and holding of hearings

All interested parties are hereby invited to make their
views known, submit information other than ques-
tionnaire replies and to provide supporting evidence.
This information and supporting evidence has to reach
the Commission within the time limit set in point 6(b)
of this notice.

the Commission may hear

interested
Furthermore,
parties, provided that they make a request showing
that there are particular reasons why they should be
heard. This request must be made within the time
limit set in point 6(c) of this notice.

5.2. Procedure for assessment of Community interest

users

to whether

In accordance with Article 31 of the Basic Regulation and
in the event that the allegations of subsidisation and injury
caused thereby are substantiated, a decision will be
reached as
the adoption of anti-subsidy
measures would not be against the Community interest.
For this reason the Community industry, importers, their
and
representative
representative
associations,
representative
consumer organisations, provided that
they prove that there is an objective link between their
activity and the product concerned, may, within the time
limits set in point 6(b) of this notice, make themselves
known and provide the Commission with information.
The parties which have acted in conformity with the
precedent sentence may request a hearing setting the
particular reasons why they should be heard within the
time limit set in point 6(c) of this notice. It should be
noted that any information submitted pursuant to Article
31 will only be taken into account if supported by factual
evidence at the time of submission.

6. Time limits

(a) For parties to request a questionnaire

All interested parties should request a questionnaire as soon
as possible, but not later than 15 days after the publication
of
the European
Communities.

this notice in the Official

Journal of

information within 40 days of the date of publication of
this notice in the Official Journal of the European Communities,
unless otherwise specified. Attention is drawn to the fact
that the exercise of most procedural rights set out in the
Basic Regulation depends on the party's making itself
known within the aforementioned period.

(c) Hearings

All interested parties may also apply to be heard by the
Commission within the same 40-day time limit.

7. Written submissions, questionnaire replies and corre-

spondence

All submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified), and must indicate the name, address, e-mail address,
telephone and fax, and/or telex numbers of the interested party.

Commission address for correspondence:

European Commission
Directorate-General for Trade
Directorate B
Office J-79 05/16
B-1049 Brussels
Fax (32-2) 295 65 05
Telex: COMEU B 21877.

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, affirmative or negative, may be made in accordance
with Article 28 of the Basic Regulation, on the basis of the
facts available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available.

9. Schedule of the investigation

(b) For parties to make themselves known, to submit questionnaire

replies and any other information

All interested parties, if their representations are to be taken
into account during the investigation, must make them-
selves known by contacting the Commission, present
their views and submit questionnaire replies or any other

The investigation will be concluded, according to Article 11(9)
of the Basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
Communities. According to Article 12(1) of the Basic Regu-
lation, provisional measures may be imposed no later than
this notice in the
nine months from the publication of
Official Journal of the European Communities.