RESTRICTED
WORLD TRADE G/SCM/Q2/CHL/3
7April 1997
ORGANIZATION(97-1410)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from CANADA Regarding theNew
andFullNotification ofCHILE1
Thefollowing communication, dated 26March 1997, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
General
CanChile clarify the"reporting period" forthenotified subsidies, given thatasingle date(e.g.,
June1996orAugust 1996) isusedinanumber ofentries. What isthenormal fiscal yearthatgovern
disbursements under thenotified programmes?
System ofdeferred payments ofcustoms duties
1. What istheadvantage/benefit oftheSystem ofDeferred Payments ofCustoms Duties fora
producer thatdoesnotexport?
2. Istheinterest rateestablished bytheCentral Bank ofChile thesame astheproducer would
normally obtain infinancing from commercial banks? Ifnot,howdoesitdiffer?
3. Isthetaxcredit forthepurchase ofChilean-manufactured goods established inrelation tothe
amount ofcustoms duties thatarepaidonlikeimported goods?
4. Since thedegree ofsubsidization -intheformofdebtforgiveness -increases withproportion
ofexports, thesubsidy iscontingent onexports. CanChile confirm thatitintends tophase-out the
subsidy inconformity withArticle 27oftheSCM Agreement?
1G/SCM/N/3/CHL+Corr.1-G/SCM/N/16/CHL+Corr.1.