./.WORLD TRADE
ORGANIZATIONG/SCM/Q2/TPKM/2
12 September 2002
(02-4815)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions Posed by AUSTRALIA Regarding the New and Full Notification
of THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU1
The following communication, dated 9 September 2002, has been received from the
Permanent Mission of Australia.
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Australia submits the following questions with respect to the new and full notification of the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu contained in documentG/SCM/N/71/TPKM.
III. INDUSTRY
A. TAX CREDITS OR TAX EXEMPTIONS FOR DESIGNATED ENTERPRISES
1.  Five-Year Tax Exemption for the Emerging, Important and Strategic Industries1. Can you please advise whether the programme is contingent in any way on the use of
domestic content, or export performance?
2. Can you please advise what are the type of high value-added industries that have benefitted
from the scheme during the reporting period?
3. How many enterprises have benefitted from this scheme during the reporting period?4. How is an “emerging, important or strategic” industry defined?
5. What will be the maximum amount of funding than an enterprise can be eligible for on an
annual basis?
                                                     
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B. LOANS
2.  Medium and long term loans for product marketing, and loans for overseas investment
and construction projects
1. We note that the programme provides financial assistance to SMEs to explore new markets
for machinery and equipment.  Is the funding contingent on the export of these products?
RESEARCH AND DEVELOPMENT
Funds granted for development of products of the ten new leading industries.
1. What is the maximum level of grant and interest-free loan available per enterprise?
2. Can you please advise whether the programme is contingent in any way on the use of
domestic content, or export performance?
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