 
  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/ZAF/9 
23 February 2004 
 (04-0750) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions Posed by the UNITED STATES  
Regarding the New and Full Notification of SOUTH AFRICA1 
 
  The following communication, dated 19 February 2004, is being circulated at the request of 
the Delegation of the United States  
_______________ 
 
 
General Questions  
 
1. The United States has become aware of the existence of several subsidy programmes 
administered by the Government of South Africa that appear to be notifiable as provided in Article 25 
of the WTO Agreement on Subsidies and Countervailing Duties (SCM Agreement).  The following is 
a list of these programmes:     • Motor Industry Development Programme  (MIDP) 
 • The Duty Credit Certificate Scheme (DCCS) 
 • The Export Finance for Capital Goods and Projects Scheme 
 
Please explain why these  programmes do not qualify as notifiable under Article 25 of the SCM Agreement.  If they do qualify as notifiable, pl ease provide the information required under Article 25. 
 2. Regarding the MIDP, please explain whether this programme requires the use of locally 
produced components for importers to receive duty re bates.  If so, please explain how this programme 
conforms with South Africa’s commitments as provide d under Article 3.1(b) of the SCM Agreement.  
 3. Regarding the DCCS, could you please explain if the duty credits offered through this program are limited to textile and clothing expor ters?  Please explain whether this programme 
operates as a duty drawback programme, in accordan ce with Annex III of the SCM Agreement.  If 
not, please elaborate. 
 
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1 G/SCM/N/95/ZAF 