./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/BLZ/5
15 April 2002
(02-2059)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Questions Posed by the UNITED STATES
Regarding the Notification of BELIZE1
The following communication, dated 10 April 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).  Thes e questions are preliminary in nature and 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. Could Belize please explain whether these programmes provide any other incentives apart
from the full or partial exemption from import duties and internal taxes?
2. Please provide the normal customs duty, consumption tax and income tax rates companies
would normally pay absent these programmes.
3. Please explain whether subsidies under any of these programmes are contingent upon the use
of domestic goods.
Fiscal Incentives Act
4. How many companies benefit from this programme?
Export Processing Zone Act
5. Tax and customs duty relief under this programme are provided for a minimum of 20 years,
while dividends paid by an EPZ business are exempted from tax in perpetuity.  Please explain how
                                                     
1 G/SCM/N/74/BLZ + Suppl.1 and G/SCM/N/71/BLZ + Suppl.1G/SCM/Q3/BLZ/5
Page 2
Belize would modify this programme so that subsidies do not extend beyond any extension period
provided.
6. Please explain how the policy objective of boosting upstream value added for agricultural
commodities is carried out in practice.
Commercial Free Zone Act
7. Tax and customs duty relief under this programme are extended for as long as the
beneficiaries continue operating in the CFZ.  Please explain how Belize would modify this
programme so that subsidies do not extend beyond any extension period provided.
Conditional Duty Exemptions Facili ty under the Treaty of Chaguaramas
8. Could Belize please provide the list of items eligible for Conditional Duty Exemptions?
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