./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/BLZ/7
30 May 2002
(02-2963)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Follow-Up Questions Posed by the UNITED STATES
Regarding the Notification of BELIZE1
The following communication, dated 28 May 2002, has been received from the Permanent
Mission of the United States.
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The following questions are submitted with respect to the request for extension of the
transition period for export subsidies under Article 27.4 of the Agreement on Subsidies and
Countervailing Measures Agreement (ASCM).  These questions are submitted without prejudice to
our final position.  We reserve the right to ask further questions.
Fiscal Incentives Act
Export Processing Zone ActCommercial Free Zone Act
Conditional Duty Exemptions Facili ty under the Treaty of Chaguaramas
1. Please provide the implementing legislation for each of the programmes for which Belize is
requesting an extension under Article 27.4 of the ASCM.
Fiscal Incentives Programme
We remain concerned with the local value added requirements under this programme.  The
discussion at the recent special meeting of the Committee on Subsidies and Countervailing Measuresconcerning this issue was useful in explaining how this programme operates.  However, we seek
further clarification concerning the local value added requirements, and therefore request
consideration of the following additional questions:
1. Under section 7(3) of the Act, exemption from import duty is linked to the use of domestic
goods.  Could Belize please provide further clarification of this provision?
2. Under this provision, are enterprises ineligible for import duty exemption on imported goods
where goods of comparable quality and price are available domestically?
                                                     
1 G/SCM/N/74/BLZ + Suppl.1 and G/SCM/N/71/BLZ + Suppl.1G/SCM/Q3/BLZ/7
Page 2
3. Is the duration of the benefits under this programme contingent upon local value added
requirements?
4. Please provide the implementing legislation, and any relevant amendments, for this
programme.
Commercial Free Zones Programme
5. Please provide, in detail, the extent to which “lower rates on income taxes” are provided
under this programme.
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