RESTRICTED
WORLD TRADE G/SCM/Q2/PER/1
26September 1996
ORGANIZATION(96-3833)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from KOREA Regarding theNew
andFullNotification ofPERU1
Thefollowing communication, dated 19September 1996, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
Article 25oftheAgreement onSubsidies andCountervailing Measures prescribes thatMembers
shallnotify allspecific subsidies, asdefined inArticles 1and2,granted ormaintained within their
territories.
However, Peruhasnotified thatitdoesnotgrant direct oranyother typeofexport subsidies.
Does thismean thatPerugrants ormaintains nospecific subsidy liketheactionable subsidies?
1. Drawback procedure
Note(1)oftheSCM Agreement stipulates thattheremission ofduties ortaxes inamount not
inexcess ofthose which haveaccrued shallnotbedeemed tobeasubsidy.
However, Peru'snotification states thatthedrawback onproducts which meettherequirements
isequivalent to5percentofthef.o.b. export value ofthegoods. Iftheexporters meet justthe
requirements, is5percentofthef.o.b. export value ofthegoods paidasthedrawback regardless
oftheamount ofduties ortaxeswhich haveaccrued? Inthiscase,isthereapossibility oftheremission
inexcess ofthose which haveaccrued?
1G/SCM/N/3/PER.