RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/VCT/7
30 May 2002
(02-2976)
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 SAINT VINCENT AND THE GRENADINES1
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  are submitted without prejudice to our final
position.  We reserve the right to ask further questions.
Fiscal Incentives Act No. 5 of 1982
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 Measures
concerning this issue was useful in explaining how this programme operates.  However, we seek
further clarification concerning the local value added requirements, and therefore requestconsideration of the following additional questions:
1. Under this programme, local value added is defined as the amount realized from the sales of
the product after subtracting, among other things, the cost of imported raw materials, components,
parts of components, fuels and services.  We seek clarification, therefore, whether the use ofdomestically sourced raw materials, components and parts determines, in any way, the duration of the
incentives provided under this programme.
2. Please provide the implementing legislation under this programme and any accompanying
regulations and decrees.
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1 G/SCM/N/74/VCT and G/SCM/71/VCT.