WORLD TRADE
ORGANIZATIONG/SCM/Q2/TPKM/1
22 July 2002
(02-4036)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions Posed by the UNITED STATES Regarding the New and Full Notification
of THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU1
The following communication, dated 17 July 2002, has been received from the Permanent
Mission of the United States.
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II. FISHERYFishing Vessel Buy-Back Programme
1. Please explain in greater detail how this programme works.  In your response, please address
the following:
(a) What are the specific eligibility criteria?  Why were the five fishing vessels that
received funds during the reporting period selected over other applicants?  Are
vessels that are not currently or actively used eligible for purchase?
(b) Describe any monitoring mechanism associ ated with this programme.  For instance,
what happens to the vessels that are bought back?  Are there any restrictions on the
use of funds received in these buy-backs?
Marine Insurance on Fishing Vessels and Fisherman
1. Please explain in greater detail how this progra mme works with regard to coverage of fishing
vessels.  For example:
(a) What are the eligibility criteria?
(b) What portion of insurance costs for a given vessel is covered under this programme?(c) What types of damage are covered and not covered (i.e., do these funds cover
extraordinary disasters only, or is more routine damage also covered)?
2. Of the average total NT amount you have listed for this programme, how much of this
represents benefits to fishing vessels (rather than to fishers)?
                                                     
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Aquaculture Facilities Loan Programme
1. Please explain in greater detail how this programme works.  In your response please address
the following:
(a) What are the eligibility criteria?
(b) Are there certain aspects of the aquaculture industry this programme intends to
promote, or is it more general.  For example, do these funds cover regular working
capital costs in the industry, or can these funds be used only to finance expansions or
new projects?
2. Please clarify whether the total amount figure you have reported reflects the total value of the
loans made under the programme or, instead, only the gap between the “guaranteed loan rate and the
commercial bank interest rate.”
III. INDUSTRY
Five-Year Tax Exemption for the Emerging, Important and Strategic Industries
1. Can you please explain which industries or  sectors qualify as “emerging, important or
strategic”?
2. How many companies took advantage of this exemption during the notification period?3. Is this programme in any way contingent upon exporting?   Do industries receive incentives
for using locally produced goods in their products?
Tax Credit for Investment in Disadvantage Region
1. How many companies benefit from subsidies under this programme?
2. What are the principal industry sectors that benefit from this programme?
LOANS
Medium and Long Term Loans for Product Market ing, and Loans for Overseas Investment and
Construction Projects
1. Explain how the terms of these loans differ from the terms of typical commercial loans in
Chinese Taipei.
2. What are the principal industry sectors that benefit from this programme?
Duty and Tax Exemptions for High-Technology Industries
1. Aside from the high-technology industries, what are the other industry sectors that benefit
from locating within the “Park”?
2. Is this programme in any way contingent upon exporting?   Do industries receive incentives
for using locally produced goods in their products?G/SCM/Q2/TPKM/1
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Duty and Tax Exemptions for In-Zone Enterprises
1. What are the main industry sectors that benefit from locating within the “In-Zone”?
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