RESTRICTED
WORLD TRADE G/SCM/Q2/CHL/4
16April 1997
ORGANIZATION(97-1657)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from JAPAN Regarding theNew
andFullandUpdating Notification ofCHILE1
Thefollowing communication, dated 11April 1997, hasbeenreceived from thePermanent
Mission ofJapan.
_______________
1. Programme II(Exemption fromFirst-Category Taxunder theIncome TaxLawonEarnings
intheFinancial Years ofManagement Companies andUsers intheFreeZones intheCities
ofIquique (Region IandPunta Arenas (Region XII))
- DoesthisprogrammeconstituteanyprohibitedsubsidieswithinthemeaningofArticle3
oftheSCM Agreement?
- Thatbeing thecase, could Chile explain when theprogramme would bephased out?
- Thatnotbeing thecase, could Chile explain thereason andprovide details ofthe
eligibility?
2. Programme III(Support programme forthemanagement ofexport firms) (PREMEX)
Onpage6ofthenotification, Chile describes theeligibility asfollows: "thesubsidy isfor
allfirms exporting manufactures orsoftware anddemonstrating, accumulated minimum exports of
US$200,000 overthepasttwoyears and,inaddition, netsales ofnotmore thantheequivalent of
US$10 million inthepastyear".
- Does Chile consider thattheprogramme constitutes anexport subsidy?
- Thatbeing thecase, could Chile explain when theprogramme would bephased out?
- Thatnotbeing thecase, could Chile explain thereason?
1G/SCM/N/3/CHL-G/SCM/N/16/CHL &Corr.1.
./.G/SCM/Q2/CHL/4
Page2
3. Programme IV(Simplified System ofRefunds forMinor Exports), V(System ofDeferred
PaymentofCustomsDuties,TaxCreditandOtherTaxBenefits),andVI(MotorVehicleStatute)
- Arethese programmes thesame asthose Chile notified pursuant toArticle 28.1(a)
oftheSCM Agreement?
- Thatnotbeing thecase,could Chile explain whether theseprogrammes areprohibited
subsidies ornot?
- Could Chile explain thedetails oftheeligibility?
- Could Chile explain when these programmes would bephased out?