SEOUL - Toshiba Korea
Electronics, Samsung Electronics and LG Electronics have
been slapped with 254.7 billion won (US$219.8 million)
in fines for violating customs rules and not paying duty
on imported chip packages, according to South Korea
The Korea Customs Service
said on Wednesday that it was levying the stiff fines on
the three companies because they failed to pay duties on
multi-chip-package (MCP) sets they imported.
electronic devices, used for mobile phones and other
information technology products, are subject to an 8 per
The state authority, or KCS, said
all three electronics companies had not filed proper
customs reports on the MCPs they imported for the last
Toshiba Korea was ordered to pay 54.7
billion won, while Samsung and LG were fined 150.0
billion won and 50.0 billion won, respectively.
The three companies said they will ask the KCS
to reconsider its actions and added they plan to take up
the issue with the National Tax Tribunal.
three said they did not know MCPs were subject to 8 per
cent duties. They moreover pointed out that levying
customs duties on this particular product should be
scrapped since other countries classified the same part
as exempt from import tariffs.
The KCS said,
however, it had reviewed the claims made by the
electronics companies and countered that the duties are
clear and that there can be no confusion.
Korea allows for 0 per cent duties if parts are imported
for use in cell phones," a KCS spokesperson said. He
said that because MCPs can be used for MP3 players,
personal digital assistants and digital cameras, waiver
rules do not apply across the board and that the
importers should have known this.
however, said that if the three companies could come up
with supporting documents to prove that the MCPs were
used to make cell phones for foreign markets, the fines
could be reduced somewhat.
Jun 24, 2004
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