WORLD TRADE
ORGANIZATIONG/SCM/Q2/ZAF/7
15 October 2003
(03-5465)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Request from AUSTRALIA to SOUTH AFRICA pursuant to Article 25.8
of the Agreement on Subsidies and Countervailing Measures
Questions posed by AUSTRALIA Regarding the
New and Full Notification of SOUTH AFRICA1
The following communication, dated 13 October 2003, has been received from the Permanent
Mission of Australia.
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In its notification to the WTO pursuant to Article XVI:1 of the GATT 1994 and Article 25 of
the Subsidies and Countervailing Measures (SCM) Agreement (document G/SCM/N/95/ZAF dated12 August 2003), South Africa reported that it does not grant or maintain within its territory any
subsidy within the meaning of Article 1.1 of the SCM Agreement which is specific within the
meaning of Article 2 of the Agreement, or which operates directly or indirectly to increase exports
from or reduce imports into its territory within the meaning of Article XVI:1 of the GATT 1994.
However, we understand that South Africa maintains a programme concerning “ Eligible
Export Certificates in terms of the Motor Industry Development Programme” .
Under this Programme Import Credit Certificates (IRCC’s) are issued to exporters of
qualifying built-up vehicles and automotive components based on the value of the exports less foreign
content of those particular exports.  The face value of such certificate entitles the holder to fully rebate
duties on qualifying imported goods of the same value, except where an IRCC obtained for thoseexport of components is used to rebate completely-built-up (CBU) imports or vice versa.
On the basis of Article 25.8 of the SCM Agreement, Australia requests information on the
nature and extent of the Motor Industry Development Scheme.
Australia requests that the South African Gove rnment provide more detailed information on
the MIDP Scheme, or an explanation why it is not considered a subsidy, as quickly as possible.
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1 G/SCM/N/95/ZAF.