EU eases tariffs on DMB phones

SEOUL, Aug. 9 (Yonhap) -- The European Union (EU) has recategorized digital
multimedia broadcasting (DMB) phones as multi-functional mobile devices, a move
that will ease tariff burdens on local manufacturers when exporting products,
Seoul officials said Sunday.
The EU previously viewed DMB phones as TVs, imposing 14 percent in tariffs. But
it held a meeting last month and decided to recategorize them as multi-functional
cellular phones, which carry just 3.7 percent in tariffs, according to the Korea
Customs Service.
DMB is South Korea's homegrown technology that enables users to watch TV programs
with high-fidelity audio and video even when they are on the move. South Korea
also is home to some of the world's major mobile phone makers, including Samsung
Electronics and LG Electronics.
The decision came after local manufacturers and the government jointly called for
the EU's customs-related body to review the DMB phone categorization last
November.
The customs office expected local mobile phone makers will have around 15 billion
won (US$12.2 million) returned due to the EU's move. The money is part of what
they paid in exporting DMB phones to European markets.
Based on exports to be shipped to Europe this year, the latest EU move will
reduce tariffs for Korean companies by an estimated 156 billion won, it added.
kokobj@yna.co.kr
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