Notice of initiation of a partial interim review of the countervailing measures applicable to imports of certain electronic microcircuits known as DRAMs (dynamic random access memories) originating in the Republic of Korea
Date: 2006-03-18
Institutions: European Commission
Subjects: South Korea, anti-dumping legislation, electronic component

C 67/16

EN

Official Journal of the European Union

18.3.2006

Notice of initiation of a partial
interim review of the countervailing measures applicable to
imports of certain electronic microcircuits known as DRAMs (dynamic random access memories)
originating in the Republic of Korea

(2006/C 67/05)

The Commission has decided on its own initiative to initiate a
partial interim review pursuant to Article 19 of Council Regu-
lation (EC) No 2026/97 on protection against
subsidised
imports from countries not members of the European Com-
munity (1)
(‘the basic Regulation’). The review is limited in
scope to the examination of subsidisation as far as Hynix Semi-
conductor Inc. is concerned.

1. Product under review

The product under
review is certain electronic integrated
circuits known as Dynamic Random Access Memories
(DRAMs) manufactured using variations of metal oxide-semi-
conductors (MOS) process technology, including complemen-
tary MOS types (CMOS), of all
types, densities, variations,
access speed, configuration, package or frame, etc. originating
in the Republic of Korea (‘the product concerned’). DRAMs
defined in the preceding paragraph take the following forms:

— DRAM wafers falling within CN code ex 8542 21 01 (Taric

code 8542 21 01 10),

— DRAM chips (dies) falling within CN code ex 8542 21 05

(Taric code 8542 21 05 10),

— Mounted DRAMs falling within CN codes 8542 21 11,

8542 21 13, 8542 21 15 and 8542 21 17,

— Multi-combinational forms of DRAMs (memory modules,
memory boards or other aggregate forms) falling within CN
8473 30 10 10),
(Taric
ex 8473 30 10
codes
ex 8473 50 10
and
code
(Taric
ex 8548 90 10 (Taric code 8548 90 10 10),

code
8473 50 10 10)

— Chips and/or mounted DRAMs incorporated in multi-
combinational forms of DRAMs provided the multi-combi-
national form of DRAM is originating in countries other
falling within CN codes
than the Republic of Korea,
8473 30 10 10),
code
ex 8473 30 10
ex 8473 50 10
and
(Taric
ex 8548 90 10 (Taric code 8548 90 10 10).

8473 50 10 10)

(Taric

code

These CN codes are given only for information.

2. Existing measures

imports of DRAMs originating in the Republic of Korea as
amended by Council Regulation (EC) No 2116/2005 (3).

3. Grounds for the review

The Commission has received information from Hynix Semi-
conductor Inc. in which it is argued that the effects of all the
subsidies that were found to be countervailable in the investiga-
tion that led to the imposition of measures by Regulation (EC)
No 1480/2003 have ceased to exist.

On the other hand, the Commission received information from
Infineon Technologies AG and
the Community producers,
Micron Europe Ltd, arguing that
the existing measure on
imports of the product under review from Hynix Semicon-
ductor Inc. at its present level is no longer sufficient to coun-
teract the subsidisation which is causing injury. It is argued
that the subsidy amount has increased above the 34,8 % which
is currently applicable to imports of DRAMs produced by
Hynix Semiconductor Inc. It is alleged that Hynix Semicon-
ductor Inc. benefits from a number of new subsidies granted by
the Government of the Republic of Korea subsequent to the
original period of investigation (2001). These alleged subsidies
consist of a debt roll-over, a debt-to-equity swap, changes in
interest payment conditions, loans by Government owned or
directed banks to finance asset transfers, a capital write down
plan, a cash-buyout plan, term loans and a revolving credit
Agreement. These subsidies allegedly continue the trend of
countervailable subsidies being granted by the Government of
the Republic of Korea to Hynix Semiconductor Inc., which are
causing injury and, therefore, the existing measure appears not
to be, or no longer to be, sufficient to counteract them.

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 Hynix Semiconductor
Inc. They are alleged to be limited to Hynix Semiconductor Inc.
only, and therefore specific and countervailable. It is finally
alleged that the measure in force is no longer adequate to coun-
teract these countervailable subsidies.

The measure currently in force on imports of DRAMs from
Hynix Semiconductor Inc.
is a definitive countervailing duty
imposed by Council Regulation (EC) No 1480/2003 (2) on

(1) OJ L 288, 21.10.97, p. 1. Regulation as last amended by Council

Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(2) OJ L 212, 22.8.2003, p. 1.

In light of the above, the Commission considers that, as far as
subsidisation of Hynix Semiconductor Inc. is concerned, there
is sufficient prima facie evidence that the circumstances with
regard to subsidization have changed significantly and, there-
fore, the measure in force should be reviewed.

(3) OJ L 340, 23.12.2005, p. 7.

18.3.2006

EN

Official Journal of the European Union

C 67/17

4. Procedure

(b) Hearings

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of a partial
interim review, the Commission hereby initiates a review in
accordance with Article 19 of the basic Regulation.

If it is determined that the measure in force on imports of
DRAMs produced by Hynix Semiconductor Inc. should be
amended, the extent to which the rate of duty applicable to
imports produced by all other companies as set out in Article
1(2) of Regulation (EC) No 1480/2003 requires to be amended
shall also be reviewed.

(a) Questionnaires

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to Hynix Semiconductor Inc., to the Korean authorities and
any known financial institutions concerned. This informa-
tion and supporting evidence should reach the Commission
within the time limit set in point 5(a) of this notice.

(b) Collection of information and holding of hearings

submit

All interested parties are hereby invited to make their views
known,
than questionnaire
replies and to provide supporting evidence. This informa-
tion and supporting evidence must reach the Commission
within the time limit set in paragraph 5(a) of this notice.

information other

Furthermore, the Commission may hear interested 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 paragraph 5(b)
of this notice.

5. Time limits

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

replies and any other information

if

interested parties,

All
their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission, present
their views and submit questionnaire replies or any other
information within 40 days of the date of publication of
this notice in the Official
the European Union,
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.

Journal of

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

6. Written submissions, questionnaire replies and cor-

respondence

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 numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by inter-
ested parties on a confidential basis shall be labelled as
‘Limited’ (1) and, in accordance with Article 29(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘For inspection by interested
parties’.

shall be

Commission address for correspondence:

European Commission
Directorate General for Trade
Directorate B
Office: J-79 5/16
B-1049 Brussels
Fax (32-2) 295 65 05

7. 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. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 28 of the basic Regulation,
the result may be less
favourable to that party than if it had cooperated.

(1) This means that

the document

is for internal use only.

the European Parliament and of

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of
(OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article
29 of Council Regulation (EC) No 2026/97 (OJ L 288, 21.10.1997,
p. 1) and Article 12 of the WTO Agreement on Subsidies and Coun-
tervailing Measures.

the Council

It