RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/TUN/7
6 November 2001
(01-5435)
Committee on Subsidies and Countervailing Measures Original:  French
SUBSIDIES
Replies to Questions Posed by the UNITED STATES1 and the EUROPEAN COMMUNITIES2
Regarding the New and Full Updating Notifications of TUNISIA3
The following communication, dated 26 October 2001, has been received from the Permanent
Mission of Tunisia.
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QUESTIONS POSED BY THE UNITED STATES
Promotion of research and development
Question 1
Are the results of the research which is granted aid under this programme made public?
Reply
The results of the research which is granted aid under this programme are not made public.
Question 2
Are the exemption from customs duties and waiver of VAT and the consumption tax on
purchases of capital goods needed for the invest ment a one-time exemption?  Or do these
exemptions continue annually?  If they continue, do institutions/enterprises/industries need to
reapply for these benefits?
Reply
The exemption from customs duties and waiver of VAT and the consumption tax on
purchases of capital goods needed for the investment are a one-time exemption.
Question 3
Does the dollar or value amount of funds provided under this programme change on an
annual basis?
                                                     
1 G/SCM/Q2/TUN/5.
2 G/SCM/Q2/TUN/6.
3 G/SCM/N/38/TUN-G/SCM/N/48/TUN-G/SCM/N/60/TUN-G/SCM/N/71/TUN.G/SCM/Q2/TUN/7
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Reply
The funds provided under this programme are granted as a percentage of investments made.
Promotion of technology and technological expertise
Question 1
You state that the objective of the aid is to help industrial companies increase their local
content.  Is aid under this programme provided based on the amount of local content that is
used in production?
Reply
Aid for the promotion of technology and the technological expertise is not based on the
amount of local content that is used in production.
Question 2
Do industries/enterprises pay any type of fee or make a contribution to the Industrial
Competitiveness Development Fund (FODEC)?  Who pays for the studies that must beundertaken before benefits are provided under the FODEC?
Reply
The FODEC is financed by the contributions of enterprises.
The studies undertaken before the FODEC's involvement are financed by the enterprise in
question.
Question 3
Must the funds provided by FODEC be repaid?  Are the funds always provided to
beneficiaries as a grant?  Or are they provided in some other form, such as a low-interest loan
to finance technological acquisiti ons?  If the aid is provided in various forms, please detail
which forms are used under what circumstances.
Reply
The funds provided by FODEC are non-repayable.  They are provided in the form of grants
and premiums.
Question 4
What conditions must be met in order for en terprises/industries to receive funding for
human resource related activities?
Reply
In order to receive funding for human resource related activities in connection with the
promotion of technology and technological expertise, the company concerned must submit, to the
National Centre for Continuing Education and Vocational Advancement, a training plan along theG/SCM/Q2/TUN/7
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lines of a model drawn up by the responsible department in the Ministry for Vocational Advancement
and Employment.  This plan must specify, among other things, the nature, the organizational
conditions and the duration of the planned training activities, the number and entitlement of the
recipients and the training institution involved as well as estimated costs.
Encouragement of light industries and crafts and trade
Question 1
If the National Fund for the Promotion of Crafts and Trade and Light Industries
(FONAPRAM) is managed by banks, do the banks make the judgement about whether or not
funds will be provided to an enterprise?
Reply
Benefits granted in this area are charged to the National Fund for the Promotion of Crafts and
Trade and Light Industry, managed by the banking institutions.
Question 2
Once the interest-free loan period has ended,  are recipients required to repay the loan in
one lump sum?  Or do recipients repay the loan over a longer period of time?  If repaymenttakes place gradually, what is the interest rate charged on the loan?  How is the interest rate
determined?  Do these terms vary depending on  the recipient of the loan?  What happens to
loans which cannot be repaid?
Reply
These loans are granted on an interest-free basis and are repayable within a maximum period
of 11 years.  The terms of the loan are general, and do not vary depending on the recipient.
Question 3
Can you provide any details about the value or volume of crafts/handicrafts which are
exported annually?
Reply
The value of crafts/handicrafts which are exported annually is approximately 250,000 DT.
QUESTIONS POSED BY THE EUROPEAN COMMUNITIES
Question 1
Benefits granted for regional development
Can Tunisia please list the "activities by sector" eligible under this programme?
Reply
All sectors of industrial activity established in the regional development areas are eligible for
the benefits granted under the Code of Investment Incentives.G/SCM/Q2/TUN/7
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Question 2
New entrepreneurs
Is this programme limited to investment in certain sectors?
Reply
This programme covers investments made by new entrepreneurs in all sectors of economic
activity.
Question 3
Light industry and crafts and trades
(a) Please list the "activities envisaged in the Decree" which are eligible under this
programme .
Reply
All sectors of economic activity are eligible for the light industry benefits.
(b) How is "light industry" defined?
Reply
Light industry is defined as small enterprises whose investment cost does not exceed
50,000 dinars, including the operating capital.
Question 4
Incentives for pollution control and environm ental protection, export promotion, other
advantages granted under Law No. 93-120 of D ecember 1993 promoting the Code of Investment
Incentives
Can Tunisia please confirm that these programmes are unchanged compared to the
description given in document G/SCM/N/3/TUN-G/SCM/N/16/TUN-G/SCM/N/25/TUN dated
27 January 1998?
Reply
Incentives for investment in pollution control and environmental protection, export promotion
and other advantages described in the basic notification submitted by Tunisia have not undergone any
changes.
Question 5
Industrial competitiveness development fund (FODEC)
(a) Please explain the meaning of "priorit y equipment" and "priority investment"
eligible for financial assistance.G/SCM/Q2/TUN/7
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Reply
The term "priority equipment" refers to technological equipment.
Priority technological investments as defined in the FODEC comprise:*Physical investments in:
- Design, testing, experimentation, formulation, sampling and research equipment;- laboratory and control equipment;
- computer equipment relating to design and control;
- information technology equipment.*Intangible investments in:
- Design, control, research and development, information technology and quality;- any intangible investment which relates to vocational training, research work and the
introduction of a quality system.
(b) Who determines which equipment or investment is accorded "priority" and on
which basis?
Reply
The Ministry of Industry decides on the granting of assistance following an opinion from the
Consultative Committee.  The request of the enterprise must be accompanied by the justifications
envisaged in the Decree.
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