WORLD TRADE
ORGANIZATIONG/SCM/W/517
3 July 2002
(02-3730)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
IMPLEMENTATION-RELATED ISSUES REFERRED
TO THE COMMITTEE BY MINISTERS
Review by the SCM Committee of the Provisions of the Agreement on Subsidies
and Countervailing Measures Regarding Countervailing Duty Investigations
Follow-up Questions Posed by the EUROPEAN COMMUNITIES to BRAZIL and INDIA
The following communication, dated 2 July 2002, has been received from the Permanent
Delegation of the European Commission.
_______________
1. Concerning the proposal by Brazil on period of subsidy allocation for capital goods:  Can
Brazil please explain under what conditions the use of the depreciation period stated in the national
legislation would not be required?
2. Concerning the proposal by Brazil on de minimis :  Can Brazil please confirm that this
proposal relates only to retroactive systems of duty collection and not to prospective systems?
3. Concerning the proposal by India on automatic adjustment of countervailing duties in case of
withdrawal of subsidy schemes:
(a) Can India please state whether under this proposal "withdrawal" of subsidy schemes
would relate only to the repeal of the scheme as such, i.e. for all beneficiaries, or also
to non-eligibility for the exporter claiming the adjustment (e.g. through change of the
eligibility criteria)?
(b) Please elaborate on the possibility to investigate whether the subsidy "has not been
reformulated under another scheme".  Does this cover solely cases where the schemeremains unchanged in substance (e.g. form of subsidy unchanged) but only the name
of the programme changes, or does it also include instances where there is a change
of substance in the operation of the programme(s) (e.g. a grant scheme is abolished
but the company can now avail itself of a tax exemption)?
__________