WORLD TRADE G/SCM/N/16/JPN
19September 1996
ORGANIZATION(96-3686)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI:1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
JAPAN
Thefollowing communication, dated 28August 1996, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
TABLE OFCONTENTS
Page
(1) Grants formodernizing coalpits 2
(2) Grants forsecurity ofmines 4
(3) Grants forpromoting coalmining companies 'diversification ofmanagement and 5
developing newbusiness frontiers
(4) Grants forstabilizing coalindustry 6
(5) Subsidy fortherationalization ofpetroleum refinery 7
(6) Subsidy forpromotion oftextile andapparel industry 8
(7) Loan guarantee forpromotion oftextile &apparel industry 9
(8) Grant forpromotion ofresearch anddevelopment offuture ships 10
(9) Taxmeasures tostrengthen themanagement ofsmall- andmedium-sized 11
corporations (inrelation tolawontemporary measures forimprovement
ofagricultural processing industry)
(10) Reserve forpromoting theuseofrecycled resources 12
(11) Additional depreciation onmachinery ofcorporations which carry outtheplans 14
forImprovement ofagricultural managementG/SCM/N/16/JPN
Page2
(12) Additional depreciation onfishing boats 15
(13) Additional depreciation onmachinery (inrelation tothetextile industry) 16
(14) Special depreciation onmachinery (inrelation toSMEs) 17
(15) Special depreciation onfacilities 19
(16) Special depreciation oncertain machinery usedforhigh-technology industries 20
inthedesignated high-technology industrial development areas ("Technopolis")
(17) Special deduction forexpenditure onprospecting fordomestic oroverseas 21
mineral deposit.
(18) Special depreciation onmachinery (inrelation tothelawontemporary measures 23
tofacilitate business innovation)
(19) Measures forrice,wheat andbarley 24
(20) Measures forsoybean andrapeseed 26
(21) Measures forsugar 27
(22) Measures formilkanddairy products 28
(23) Measures forbovine meatandpigmeat 30
(24) Measures foreggs 31
(25) Measures forvegetables 32
(26) Measures forfruits 33
(27) Resource propagation programme forsalmon 34
***
(1) GRANTS FOR MODERNIZING COAL PITS
1. Titleofthesubsidy programme
Grants formodernizing coalpits.
2. Period covered bythenotification
April 1995-March 1996.G/SCM/N/16/JPN
Page3
3. Policy objective and/or purpose ofthesubsidy
Topromote structural adjustment ofcoal-mining industry while keeping employment bymeans
ofpromoting rationalization andmaintaining stable production andsafety.
4. Background andauthority forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Coalmining company possessing coalmines withgalleries which areregarded ascontributing
tostable production andsafety.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY (settlement ofaccounts) ¥2,864 million
1994FY (settlement ofaccounts) ¥2,796 million
1995FY (budget) ¥3,615 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1966FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1992 FY1993 FY1994
Production 7,602 7,206 6,742
Import 110,947 112,326 121,073
Consumption 116,182 117,821 126,401
Export 0 0 0
1Statistics ofproduction, consumption, imports andexports:
(i)forthethree most recent years forwhich statistics areavailable;
(ii)foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/16/JPN
Page4
(2) GRANTS FOR SECURITY OFMINES
1. Titleofthesubsidy programme
Grants forsecurity ofmines.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Tosecure safety incoalmines.
4. Background andauthority forthesubsidy
Ministry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Owner ofacoalmining right.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY (settlement ofaccounts) ¥2,902 million
1994FY (settlement ofaccounts) ¥2,533 million
1995FY (budget) ¥4,016 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1965FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1992 FY1993 FY1994
Production 7,602 7,206 6,742
Import 110,947 112,326 121,073
Consumption 116,182 117,821 126,401
Export 0 0 0G/SCM/N/16/JPN
Page5
(3) GRANTS FOR PROMOTING COAL MINING COMPANIES 'DIVERSIFICATION OF
MANAGEMENT AND DEVELOPING NEW BUSINESS FRONTIERS
1. Titleofthesubsidy programme
Grants forpromoting coalmining companies 'diversification ofmanagement anddeveloping
newbusiness frontier.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Toassist coalmining companies 'developing newbusiness frontier topromote structural
adjustment ofthedomestic coalmining industry.
4. Background andauthority forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Coalmining companies todevelop newbusiness frontier (prescribed byArticle 7oftheLaw
onExtraordinary Measures forStructural Adjustment oftheCoalMining Industry).
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY (settlement ofaccounts) ¥604million
1994FY (settlement ofaccounts) ¥1,185 million
1995FY (budget) ¥1,585 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1992FY -2001FY.G/SCM/N/16/JPN
Page6
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1992 FY1993 FY1994
Production 7,602 7,206 6,742
Import 110,947 112,326 121,073
Consumption 116,182 117,821 126,401
Export 0 0 0
***
(4) GRANTS FOR STABILIZING COAL INDUSTRY
1. Titleofthesubsidy programme
Grants forstabilizing coalindustry.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural adjustment ofJapanese coalmining industry while keeping employment
bymeans ofstabilizing thefinancial basis ofcoalmining industry.
4. Background andauthority forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Ownersofminingrightswhoproducecoalbyundergroundminingandmeetthegivenconditions.G/SCM/N/16/JPN
Page7
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY (settlement ofaccounts) ¥4,290 million
1994FY (settlement ofaccounts) ¥3,486 million
1995FY (budget) ¥3,743 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1967FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1992 FY1993 FY1994
Production 7,602 7,206 6,742
Import 110,947 112,326 121,073
Consumption 116,182 117,821 126,401
Export 0 0 0
***
(5) SUBSIDY FOR THE RATIONALIZATION OFPETROLEUM REFINERY
1. Titleofthesubsidy programme
Subsidy fortherationalization ofpetroleum refinery.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Toassist therationalization (including closure) ofrefineries.
4. Background andauthority forthesubsidy
Ministry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bysubsidy.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Interest ratesubsidy.G/SCM/N/16/JPN
Page8
7. Towhom andhowthesubsidy isprovided
Oilrefining companies which haverationalized theirbusiness.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY (settlement ofaccounts) ¥1,063 million
1994FY (settlement ofaccounts) ¥982million
1995FY (settlement ofaccounts) ¥1,155 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
From 1986FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand kl)
FY1992 FY1993 FY1994
Production 211,916 215,747 225,729
Import 32,531 27,870 32,935
Consumption 227,950 227,046 239,312
Export 13,124 16,366 17,201
***
(6) SUBSIDY FOR PROMOTION OFTEXTILE AND APPAREL INDUSTRY
1. Titleofthesubsidy programme
Subsidy forpromotion oftextile andapparel industry.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural improvement ofthetextile industry.
4. Background andauthority forthesubsidy
TheTextile Industry Restructuring Agency.
5. Legislation under which itisgranted
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.G/SCM/N/16/JPN
Page9
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Groups ofenterprises approved under theLawonExtraordinary Measures fortheStructural
Improvement oftheTextile Industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1995FY (budget) ¥143million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1994FY -1998FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production Import Export Domestic
consumption
1993 1,502,607 t 1,106,186 t 434,467 t 2,181,505 t
1994 1,420,537 t 1,304,787 t 428,237 t 2,336,838 t
1995 1,381,996 t 1,369,459 t 398,807 t 2,373,356 t
(7) LOAN GUARANTEE FOR PROMOTION OFTEXTILE AND APPAREL INDUSTRY
1. Titleofthesubsidy programme
Loan guarantee forpromotion oftextile &apparel industry.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural improvement ofthetextile industry.
4. Background andauthority forthesubsidy
Textile Industry Restructuring Agency.
5. Legislation under which itisgranted
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.G/SCM/N/16/JPN
Page10
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Loan guarantee.
7. Towhom andhowthesubsidy isprovided
Groups ofenterprises approved under theLawonExtraordinary Measures fortheStructural
Improvement oftheTextile Industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
¥243million (total newguarantees extended during 1995FY).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1967FY -1998FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production Import Export Domestic
consumption
1993 1,502,607 t 1,106,186 t 434,467 t 2,181,505 t
1994 1,420,537 t 1,304,787 t 428,237 t 2,336,838 t
1995 1,381,996 t 1,369,459 t 393,807 t 2,373,356 t
(8) GRANT FORPROMOTION OFRESEARCH AND DEVELOPMENT OFFUTURE SHIPS
1. Titleofthesubsidy programme
Grant forpromotion ofresearch anddevelopment offuture ships.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Topromote theresearch anddevelopment offuture ships.
4. Background andauthority forthesubsidy
Ministry ofTransport.
5. Legislation under which itisgranted
LawfortheAssociation forStructural Improvement oftheShipbuilding Industry.G/SCM/N/16/JPN
Page11
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Thegrant isprovided fortheresearch anddevelopment onhigher technologies forshipswithin
abudget.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1993FY ¥862million
1994FY ¥873million
1995FY ¥839million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
There isnotime-limit attached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Theknow-how obtained from thesubsidized R&Dprojects hasnotproduced commercial
products. Thus, notrade effects ofthisgrant haveappeared asyet.
***
(9) TAXMEASURESTOSTRENGTHENTHEMANAGEMENTOFSMALL-ANDMEDIUM-
SIZED CORPORATIONS (INRELATION TOLAW ONTEMPORARY MEASURES FOR
IMPROVEMENT OFAGRICULTURAL PROCESSING INDUSTRY)
1. Titleofthesubsidy programme
Taxmeasurestostrengthenthemanagementofsmall-andmedium-sizedcorporations(inrelation
toLawonTemporary Measures forImprovement ofAgricultural Product Processing Industry).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Improvement ofthemanagement oftheagricultural processing businesses.
4. Background andauthority forthesubsidy
Ministry ofFinance.G/SCM/N/16/JPN
Page12
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxcredit andtaxdeferral.
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations engaging intheagricultural processing businesses.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
30percentspecial depreciation or7percenttaxcredit oftheacquisition costisgranted for
themachinery. Incaseoflease, 7percenttaxcredit of60percentofthetotallease feeisgranted.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Applicable fortheMachinery acquired between 1July1989 and31March 1997.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofmain industries.
(thousand tons)
Production 1992 y. 1993 y. 1994 y. 1995 y.
Cheese 96 100 103 106
(April-March)
Polished barley 107 111 116 -
(April-March)
Wheat flour 4,668 4,791 4,999 -
(April-March)
***
(10) RESERVE FOR PROMOTING THE USEOFRECYCLED RESOURCES
1. Titleofthesubsidy programme
Reserve forpromoting theuseofrecycled resources.
2. Period covered bythenotification
April 1995-March 1996.G/SCM/N/16/JPN
Page13
3. Policy objective and/or purpose ofthesubsidy
Promotion ofrecollection andclassification ofrecyclable resources anddevelopment ofthe
recycled products markets.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations manufacturing products from recycled resources.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
14percentofsalesincrease oftheproducts manufactured fromrecycled resources isdeductible
fromtaxable income asthereserve. (One fifthofthereserve should beadded backtogross revenue
ineachofthenextfivebusiness years).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Business years starting after31March 1993 andbefore 1April 1996.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Therateofrecycling.
(Percent)
1990 1991 1992 1993 1994
Recycled paper 51.6 52.3 52.6 53.1 53.5
Recycled cullet 47.9 51.8 56.2 55.5 55.6
Recycled aluminium cans 42.6 43.1 53.8 57.8 61.1
Recycled steelcans 44.8 50.1 56.8 61.0 69.8
***G/SCM/N/16/JPN
Page14
(11) ADDITIONALDEPRECIATIONONMACHINERYOFCORPORATIONSWHICHCARRY
OUT THE PLANS FOR IMPROVEMENT OFAGRICULTURE MANAGEMENT
1. Titleofthesubsidy programme
Additionaldepreciationonmachineryofcorporationswhichcarryouttheplansforimprovement
ofagriculture management.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Rationalization ofproduction anddistribution oftimber industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inmaterial manufacturing, whose rationalization plans areapproved
bytheMinister ofAgriculture, Forestry andFisheries.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forforestry machinery forfiveyears.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forfiveyears afterapproval ofaplanforrationalization.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production
(thousand m3)
Year 1992 1993 1994 1995
Production 27,938 27,114 25,570 24,456G/SCM/N/16/JPN
Page15
(12) ADDITIONAL DEPRECIATION ONFISHING BOATS
1. Titleofthesubsidy programme
Additional depreciation onfishing boats (inrelation totheplanforstructural improvement
ofsmall- andmedium-sized fishing enterprises under thescheme oftheExtraordinary Lawonthe
Reconstruction ofFishing Industry).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Structural improvement offishing industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
- Membership offishing cooperatives whose plans forstructural improvement ofsmall-
andmedium-sizedfishingenterprisesareapprovedbytheMinisterofAgriculture,Forestry
andFisheries.
- Engaging incertain fishing businesses.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forfishing boats forfiveyears.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forfiveyears afterapproval oftheplanforstructural improvement offishing enterprises.G/SCM/N/16/JPN
Page16
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(million ¥)
(1991 y.) (1992 y.) (1993 y.) (1994 y.)
Medium trawl fishery 119,223 92,809 86,910 86,826
Large trawl fishery inEastChina Sea 30,023 30,685 22,120 20,771
Pelagic skipjack andtunafishery 221,316 234,460 241,931 195,021
Offshore skipjack andtunafishery 68,545 72,310 66,210 54,684
Surrounding netfishery 267,005 225,414 220,609 207,993
Medium-sized squid jigging fishery 27,573 22,768 19,415 24,444
***
(13) ADDITIONAL DEPRECIATION ONMACHINERY (INRELATION TOTHE TEXTILE
INDUSTRY)
1. Titleofthesubsidy programme
Additional depreciation onmachinery (inrelation totheplanforstructural improvement of
textile industry under thescheme oftheTemporary LawontheStructural Improvement ofTextile
Industry).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Structural improvement oftextile industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.G/SCM/N/16/JPN
Page17
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
- Membership ofcommercial andindustrial cooperatives, etc.whose plans forstructural
improvement oftextile industry areapproved bytheMinister ofInternational Trade and
Industry.
- Engaging inthebusiness oftextile industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forcertain buildings andmachinery for
fiveyears.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forfiveyears aftertheapproval oftheplanforstructural improvement oftextile industry.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
1993 1994 1995
Production (t) 1,502,607 1,420,637 1,381,996
Import (t) 1,106,188 1,304,787 1,369,459
Export (t) 434,467 428,237 398,807
Domestic demand (t) 2,181,505 2,336,838 2,373,356
Import/Domestic demand (%) 50.7 55.8 57.7
***
(14) SPECIAL DEPRECIATION ONMACHINERY (INRELATION TOSMEs)
1. Titleofthesubsidy programme
Special depreciation onmachinery (inrelation totheplans forstructural improvement ofsmall-
andmedium-sizedenterprises(SMEs)undertheschemeoftheLawonPromotionofSmall-andMedium-
sized Enterprises Modernization).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Promotion ofrationalization ofsmall- andmedium-sized enterprises.G/SCM/N/16/JPN
Page18
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
- Membership ofcommercial andindustrial cooperatives, etc.whose plans forstructural
improvement ofSMEs areapproved bytheMinister ofInternational Trade andIndustry.
- Engaging inbusinesses qualified asrequiring immediate structural improvement.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special additional depreciation of20percentofordinary depreciation allowance forthefirst
fiveyears isgranted forcertain factory building andmachinery.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forfiveyears aftertheapproval oftheplanforstructural improvement ofSMEs.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofmain industries.
(million ¥)
1993 1994 1995
Concrete industry 1,660,014 1,655,346 n.a.
Lime industry 102,923 96,976 96,252
Screw industry 743,446 731,577 728,024
Gear industry 225,642 238,164 243,730
Pig-iron casting industry 830,558 841,046 n.a.
Metal-press industry 1,086,395 1,126,772 1,115,968
***G/SCM/N/16/JPN
Page19
(15) SPECIAL DEPRECIATION ONFACILITIES
1. Titleofthesubsidy programme
Special depreciation onfacilities (inrelation toLawonTemporary Measures forImprovement
ofAgricultural Product Processing Industry).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Improvement ofthemanagement ofagricultural processing enterprises.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporationsengaginginagriculturalprocessingindustries,whoseplanstoimprovemanagement
orplans forbusiness cooperation areapproved bythegovernor.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special depreciation of14percentofacquisition costisgranted forthemachinery.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Applicable forthemachinery acquired between 1July1989 and31March 1997.G/SCM/N/16/JPN
Page20
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofmain industries.
(thousand tons)
1992 y. 1993 y. 1994 y. 1995 y.
Cheese 96 100 103 106
(April-March)
Polished barley 107 111 116 -
(April-March)
Wheat flour 4,668 4,791 4,999 -
(April-March)
***
(16) SPECIALDEPRECIATIONONCERTAINMACHINERYUSEDFORHIGH-TECHNOLOGY
INDUSTRIES IN THE DESIGNATED HIGH-TECHNOLOGY INDUSTRIAL
DEVELOPMENT AREAS ("TECHNOPOLIS")
1. Titleofthesubsidy programme
Special depreciation oncertain machinery usedforhigh-technology industries inthedesignated
high-technology industrial development areas ("Technopolis").
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Promotionoftheindustrialdevelopmentincertainareas,basedonthehigh-technologyindustries.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inthequalified high-technology industries.G/SCM/N/16/JPN
Page21
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special initial depreciation isgranted forthehigh-technology machinery depending onthetime
ofacquisition asfollows.
Years afterapproval ofthe"Technopolis" plan
~5y. 5y.~7y. 7y.~8y. 8y.~10y. 10y.~12y.
Machinery 30% 25% 20% 15% 14%
Buildings
etc.15% 13% 10% 8% 7%
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Within 12years aftertheapproval ofthe"Technopolis" plan.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(billion ¥)
Production in"Technopolis"
1989 31,264.5
1990 33,369.4
1991 35,854.8
1992 35,506.9
1993 34,899.6
***
(17) SPECIAL DEDUCTION FOREXPENDITURE ONPROSPECTING FORDOMESTIC OR
OVERSEAS MINERAL DEPOSITS
1. Titleofthesubsidy programme
Special deduction forexpenditure onprospecting fordomestic oroverseas mineral deposits.
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Toensure continuity ofmining business.G/SCM/N/16/JPN
Page22
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Deduction from taxable income.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inmining industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Thelowest ofthefollowing three amounts maybededucted from taxable income.
(1) theamount oftheprospecting costs incurred, including depreciation expenses allowed
onmachinery andequipment usedforprospecting.
(2) theamount added backtothetaxable income from theprospecting costreserve.
(3) theamount ofcorporation income forthebusiness year.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forthebusiness yearcontaining adaybetween 1April 1965 and31March 1998.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Theamount ofdomestic production ofminerals.
(thousand tons)
1992 1993 1994
Copper 9.3(0.6%) 7.8(0.5%) 4.5(0.6%)
Lead 25.8(8.6%) 22.6(8.1%) 15.5(5.1%)
Zinc 142.1 (18.5%) 123.8 (17.6%) 105.8 (16.5%)
***G/SCM/N/16/JPN
Page23
(18) SPECIAL DEPRECIATION ONMACHINERY (INRELATION TOTHE LAW ON
TEMPORARY MEASURES TOFACILITATE BUSINESS INNOVATION)
1. Titleofthesubsidy programme
Special depreciation onmachinery (inrelation tothelawontemporary measures tofacilitate
business innovation).
2. Period covered bythenotification
April 1995-March 1996.
3. Policy objective and/or purpose ofthesubsidy
Tofacilitate business innovation ofthecorporations whose production andemployment are
decreasing under theinfluence ofthediverse andstructural change indomestic andforeign economy.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations whose domestic activities arestagnant under theinfluence ofthediverse and
structural change indomestic andforeign economy.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special depreciation of25percentisgranted forcertain machinery inthefirstyear.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forfiveyears aftertheapproval oftheplanforbusiness innovation.G/SCM/N/16/JPN
Page24
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofmain industries.
(million ¥)
1993 y. 1994 y. 1995 y.
Ammonia industry 36,719 35,010 -
Cement industry 726,965 705,087 669,136
Scale industry 80,045 81,933 88,104
Wooden furniture industry 1,852,669 1,759,529 -
Rubber beltindustry 94,053 94,428 97,032
***
Note: With regard tothefollowing agricultural subsidies, theGovernment ofJapan notifies these
subsidies without giving anyprejudice tothediscussions underway intheWorking Group on
Notification Obligations andProcedures, while clearly noting thefactthatnoconclusion has
beenreached yetintheWorking Group, onwhether suchsubsidies shallbenotified tothe
SCM Committee. Furthermore, thisnotification ismade without prejudice tothesubsidy
notification totheCommittee onAgriculture.
(19) MEASURES FOR RICE, WHEAT AND BARLEY
1. Titleofthesubsidy programme
Measures forrice,wheat andbarley
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995)
3. Policy objective and/or purpose ofthesubsidy
Thepurposes oftheprogramme aretoensure foodforthepopulation andtostabilize thenational
economy, through supply anddemand operation andprice adjustment ofrice,wheat andbarley.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
5. Legislation under which itisgranted
Food Control Law.
(Law forStabilization ofSupply-Demand andPrice ofStaple Food wasputinforce in1995,
replacing theFood Control Law.)G/SCM/N/16/JPN
Page25
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheGovernment purchases rice,wheat andbarley fromdomestic producers atthedetermined
purchasing price (Government purchasing price) andsells them atthedetermined selling price
(Government selling price). TheGovernment purchasing price isdetermined withaviewtoensuring
reproduction, taking account oftheproduction cost,commodity prices andother economic conditions.
TheGovernment selling priceisdetermined soastostabilize theconsumers 'household economy, taking
intoaccount factors suchasthecostofhousehold, commodity prices andother economic conditions
ingeneral.
Asforrice,theGovernment provides asubsidy forproducers commensurate withthevolume
distributed bytheproducers, inorder tocollect anddistribute private voluntarily marketed rice
(voluntarily marketed rice)properly andorderly andtoensure stable production anddistribution of
highquality rice.
Asforbarley forfeed, theGovernment provides acompensatory payment forproducers. A
certain portion ofproducers 'income isprovided through producers 'associations inorder toencourage
production andensure effective distribution ofbarley forfeed.
7. Amount ofthesubsidy
¥190.9 billion (which includes theamount allocated from theGeneral Account totheFood
Control Special Account fortheFiscal Year 1994).
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Rice1992 10,573 10,502 92 0
1993 7,834 10,476 1,049 0
1994 11,981 10,022 1,835 0
Wheat1992 759 6,274 5,650 0
1993 638 6,344 5,607 0
1994 565 6,415 6,044 0
Barley1992 286 2,747 2,550 0
1993 283 2,763 2,369 0
1994 225 2,821 2,619 0
Note: Provisional in1994G/SCM/N/16/JPN
Page26
(20) MEASURES FOR SOYBEAN AND RAPESEED
1. Titleofthesubsidy programme
Measures forsoybean andrapeseed.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995)
3. Policy objective and/or purpose ofthesubsidy
Thepurposes oftheprogramme aretomaintain soybean andrapeseed production andtostabilize
farmers 'income.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
5. Legislation under which itisgranted
Temporary Measure ActforSubsidizing Producers ofSoybeans andRapeseed.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheGovernment provides asubsidy forproducers ofsoybean andrapeseed through the
producers 'associations, ifthestandard selling price isbelow thebaseprice. Producers arepaidthe
difference between thestandard selling priceandthebaseprice. Thestandard selling priceisdetermined
based ontheaverage selling price ofproducers 'associations, deducting marketing costs. Thebase
priceisdetermined withaviewtoensuring reproduction, taking account oftheproduction cost,other
production conditions, supply anddemand situation andother economic situations.
7. Amount ofthesubsidy
¥134million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.G/SCM/N/16/JPN
Page27
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Soybeans1992 188 4,612 4,725 0
1993 101 4,820 5,031 0
1994 99 4,694 4,731 0
Rapeseed1992 2 1,872 1,911 0
1993 1 1,849 1,824 0
1994 2 1,893 1,924 0
***
(21) MEASURES FOR SUGAR
1. Titleofthesubsidy programme
Measures forsugar.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995)
3. Policy objective and/or purpose ofthesubsidy
Thepurposes oftheprogramme aretosafeguard sweetening resource crops, farmers 'income
andtocontribute tostabilizing national living conditions through stabilizing thepriceofdomestic sugar.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
Japan RawSilkandSugar Price Stabilization Agency.
5. Legislation under which itisgranted
Sugar Price Stabilization Law.
Japan RawSilkandSugar Price Stabilization Agency Law.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheJapan RawSilkandSugar Price Stabilization Agency isinvolved inselling andpurchasing
thesugar made ofsugar beetandsugar caneproduced inspecified areas. TheGovernment provides
acompensatory payment forsugar producers. Thesugar producers arepaidthedifference between
theselling price andpurchasing price ofthesugar.G/SCM/N/16/JPN
Page28
7. Amount ofthesubsidy
¥16,187 million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Calendar Year Production Consumption Import Export
Sugar1992 1,023 2,773 1,823 1
1993 861 2,678 1,794 1
1994 826 2,657 1,700 1
***
(22) MEASURES FOR MILK AND DAIRY PRODUCTS
1. Titleofthesubsidy programme
Measures formilkanddairy products.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995)
3. Policy objective and/or purpose ofthesubsidy
Thepurposes oftheprogramme aretopromote sound development ofdairy farming andrelated
industries andtocontribute toanimprovement inthenation 'sdietary life,through stabilizing prices
ofmilkanddairy products.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
5. Legislation under which itisgranted
Livestock Products Prices Stablization Law.
Manufacturing Milk Producer Compensation Temporary Law.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
Inorder tomaintain production ofmilkformanufacturing, whose price condition isinferior
tothatofdrinking milk, theGovernment provides producers withasubsidy formilkformanufacturing.G/SCM/N/16/JPN
Page29
Producers arepaidthedifference between theGuaranteed Price (theproducer price which guarantees
thereproduction ofmilk) andtheStandard Transaction Price (theprice payable bymanufacturers).
Inorder topromote supply ofthemanufacturing milkforcheese byproductive farmers, the
Government provides acertain amount ofpremium forproducers. TheGovernment alsoprovides
acertain amount ofpremium formanufacturing milkproducers, soastomeetvarious changes inthe
situation surrounding dairy farming.
7. Amount ofthesubsidy
¥38,393 million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Fresh milk1992 8,617 8,617 0 0
1993 8,551 8,551 0 0
1994 8,388 8,388 0 0
Butter and
butter oil1992 100 85 1 0
1993 105 89 0 0
1994 76 90 0 0
Skimmed
milkpowder1992 213 213 21 0
1993 217 216 6 0
1994 181 230 23 0
Sweetened
condensed
skimmed
milk1992 12 12 0 0
1993 11 11 0 0
1994 11 11 0 0
Sweetened
condensed
milk1992 50 44 0 0
1993 46 47 0 0
1994 47 51 0 0
Cheese1992 31 162 131 0
1993 32 170 138 0
1994 31 176 145 0G/SCM/N/16/JPN
Page30
(23) MEASURES FOR BOVINE MEAT AND PIGMEAT
1. Titleofthesubsidy programme
Measures forbovine meatandpigmeat.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995).
3. Policy objective and/or purpose ofthesubsidy
Thepurpose oftheprogramme istoensure astable supply ofbovine meatandpigmeat, and
stable development ofcattle andpigfarmmanagement.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
Livestock Industry Promotion Corporation (LIPC).
5. Legislation under which itisgranted
Livestock Products Price Stabilization Law
Special Measures LawonBeefCalves Production Stabilization.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheLivestock Industry Promotion Corporation contributes tostabilize thepriceofbovine meat
andpigmeat.
- Incasewholesale prices fallbelow theStandard Stabilization price, theCorporation takes
measures tostabilize prices ofbovine meatandpigmeat bywithdrawing domestic bovine
meatanddomestic pigmeat from themarkets.
- Incasewholesale prices exceed theUpper Stabilization price, theCorporation takes
measures tostabilize prices ofbovine meatandpigmeat byincreasing salesofdomestic
bovine meatanddomestic pigmeat.
When thecalfprice fallsbelow theguaranteed baseprice, theGovernment provides calf
producers withacompensatory payment perhead, andensures stable production ofcalves.
TheGovernment provides beefcattle producers withasubsidy perhead, inorder toprevent
worsening theirreturn andstagnating domestic bovine meatproduction.
7. Amount ofthesubsidy
¥69,444 million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.G/SCM/N/16/JPN
Page31
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Bovine meat1992 417 850 423 0
1993 416 947 567 0
1994 424 1,018 584 0
Pigmeat1992 1,003 1,465 467 0
1993 1,006 1,457 455 0
1994 964 1,468 503 0
Note: Provisional in1994. Theamounts areconverted tothose ofcutmeat.
***
(24) MEASURES FOR EGGS
1. Titleofthesubsidy programme
Measures foreggs.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995).
3. Policy objective and/or purpose ofthesubsidy
Thepurpose oftheprogramme istocontribute todevelop asound management ofpoultry farms,
through planned production andstabilizing eggprices.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
EggPrice Stabilizing Fund.
5. Legislation under which itisgranted
None.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
Revenue forcompensation intheEggPrice Stabilizing Fund (EPSF) consists of:
(1) thatpaidbyproducers andproducer organizations whomake compensation contracts
withtheEPSF; and
(2) agovernment subsidy.G/SCM/N/16/JPN
Page32
When theaverage transaction price fallsbelow thestandard price, theEPSF provides a
compensatory payment forproducers. Producers arepaid90percentofthedifference between the
twoprices.
7. Amount ofthesubsidy
¥1,236 million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Eggs1992 2,575 2,667 92 0
1993 2,599 2,698 99 0
1994 2,563 2,667 104 0
Note: Provisional in1994. Theamounts inimport andexport areconverted tothose ofshelleggs.
***
(25) MEASURES FOR VEGETABLES
1. Titleofthesubsidy programme
Measures forvegetables.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995).
3. Policy objective and/or purpose ofthesubsidy
Thepurpose oftheprogramme istocontribute toasound development ofvegetable farming
andastable lifewithrespect toconsumption, through stabilizing production ofmajor vegetables.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
Vegetable Supply Stabilization Fund
National Federation ofAgricultural Cooperatives
Central Union ofAgricultural CooperativesG/SCM/N/16/JPN
Page33
5. Legislation under which itisgranted
Vegetable Production andMarketing Stabilization Law.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheVegetable Supply Stabilization Fund isfinanced through acontribution fromtheregistered
marketing associations andasubsidy from theGovernment. When themarket prices fallbelow the
guaranteed baseprices, theFundprovides acompensatory payment forproducers through theregistered
marketing associations. TheGovernment supports theFund'spurchase andstock ofmajor vegetables
incaseofasudden riseinvegetable prices.
7. Amount ofthesubsidy
¥7,682 million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Vegetables1992 15,612 17,339 1,731 4
1993 14,773 16,693 1,921 1
1994 14,541 16,822 2,281 0
Note: Provisional in1994.
***
(26) MEASURES FOR FRUITS
1. Titleofthesubsidy programme
Measures forfruits.
2. Period covered bythenotification
Fiscal year1994 (April 1994 toMarch 1995).
3. Policy objective and/or purpose ofthesubsidy
Thepurpose oftheprogramme istocontribute astable development offruitagriculture, through
stabilizing transaction offruits forprocessing andamanagement offruitfarms.G/SCM/N/16/JPN
Page34
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
Japan Fruit Foundation.
5. Legislation under which itisgranted
Special Measures LawonFruit-Growing Industry Promotion.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheGovernment provides acertain amount ofpayments forthefruit-growing farmers who
sellfruits forprocessing orconvert tosuperior varieties. Payment ismade through theJapan Fruit
Foundation.
7. Amount ofthesubsidy
¥765million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: thousand tonnes)
Item Fiscal Year Production Consumption Import Export
Fruits1992 4,366 7,391 3,033 29
1993 4,858 8,199 3,449 27
1994 4,411 8,293 3,776 27
Note: Theamounts include those offruits forprocessing converted tofresh fruits.
***
27. RESOURCE PROPAGATION PROGRAMME FOR SALMON
1. Titleofthesubsidy programme
Resource propagation programme forsalmon.
2. Period covered bythenotification
Fiscal year1995 (April 1995 toMarch 1996)
3. Policy objective and/or purpose ofthesubsidy
Thepurpose oftheprogramme isastable maintenance ofsalmon resources.G/SCM/N/16/JPN
Page35
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
5. Legislation under which itisgranted
Preservation ofMarine Resources Law.
6. Form ofthesubsidy/to whom andhowthesubsidy isprovided
TheGovernment assists todevelop hatching andbreeding facilities oftheFisheries Cooperatives
andtheFishery Production Cooperatives andtopromote public activities forpreventing illegal fishing,
etc.
7. Amount ofthesubsidy
¥469million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit
Duration ofthesubsidy isnotclearly specified, since thesubsidy isdetermined andprovided
based onafiscal year.
9. Statistical data
(Unit: tonnes)
Item Fiscal Year Production Consumption Import Export
Salmon1993 265,657 471,521 228,539 119
1994 283,858 504,182 243,209 7,285
1995 318,326 522,077 202,977 20,004
***