RESTRICTED
WORLD TRADE G/SCM/Q2/CRI/2/Rev.1*
9October 1996
ORGANIZATION(96-4124)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from JAPAN Regarding theNew
andFullNotification ofCOSTA RICA1
Revision
Thefollowing communication, dated 2October 1996, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
(1) A. Exemption from company tax
Paragraph 6ofthenotification states thatallenterprises thatsigned anexport contract before
3April 1992wereentitled toexemption fromcompany taxandthatanexport contract mayhavebeen
signed byanynational orforeign natural/legal person whoundertook toproduce and/or export non-
traditional goods tothirdmarkets (markets incountries withwhich there arenoagreements granting
freetradetreatment withregard totheexported goods). Inthisconnection, please answer thefollowing
questions.
- Does thisprogramme constitute anexport subsidy?
- HasCosta Ricaalready notified thisprogramme under Article 28.1 oftheSCM
Agreement?
- WillCosta Ricaphase outthisprogramme within eight years?
(2) B. Granting ofTaxCredit Certificates (CATs)
Paragraph 6ofthenotification states thefollowing:
- Criterion forallocating CATs isthatthebeneficiary signed anexport contract.
*English only.
1G/SCM/N/3/CRI.
./.G/SCM/Q2/CRI/2/Rev.1
Page2
- Anynational orforeign natural/legal person engaged inexporting products witha
specific national content ratecansignanexport contract withtheStateofCosta Rica;
and
- Ifitwassigned before 2December 1992, itwasissued withaCAT asanincentive.
Inthisconnection, please answer thefollowing questions:
- What does"aspecific national content" mean?
- Does thisprogramme constitute anexport subsidy?
- HasCosta Ricaalready notified thisprogramme under Article 28.1?
- WillCosta Ricephase outthisprogramme within eight years?