The expiration of the European Union's punitive tax on blank CD-R discs in early 2007 is expected to help Taiwanese makers market CD-R discs in Europe, according to Taiwan industry sources. The European Union (EU) in March of 2002 decided to impose a five-year 37% antidumping duty on blank CD-R discs exported by leading Taiwanese makers, including CMC Magnetics, Ritek and Prodisc Technology. The tax will expire in early 2007.

However, the expected benefit for CMC and Ritek should be less significant than for second-tier or smaller makers in Taiwan, since the two makers have been shifting part of their CD-R manufacturing to production of blank discs for DVD+R/-R and other DVD formats, Digitimes.com reports from Taiwan.

Most second-tier and smaller makers, however, will not enjoy any benefits in the short run because they have not signed up for Veeza, Philips' new licensing system for use of its CD-R disc patents, so their products will be barred from the European market.