RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/W/453
11 June 2001
(01-2871)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
FOLLOW-UP QUESTIONS AND COMMENTS CONCERNING
PROPOSALS ON IMPLEMENTATION-RELATED ISSUES
REFERRED TO THE COMMITTEE IN THE 15 DECEMBER 2000
DECISION OF THE GENERAL COUNCIL
Questions from Japan
The following communication, dated 8 June 2001, has been received from the Permanent
Mission of Japan.
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Japan submits the following questions regarding the proposals on implementation-related
issues.  It should be noted that these questions ar e simply aimed at clarifying technical points, and do
not prejudge the overall position of Japan on these issues.  Likewise, the fact that we do not pose
questions at this juncture on certain items or certain aspects of items should not be construed as
consent to these items or aspects.
1. Proposal regarding Article 27.6 (G/SCM/W/431/Rev.1)
Question 1
Is it the intent of the proponents to permit Annex VII countries to move in and out of the
"export competitive" status indefinitely, for as many times as such fluctuation occurs?  Do they not
see such situations as being unstable and unpredictable?
Question 2
Assume that the share of certain product exports in world trade was fluctuating around the
area of 3.25 per cent, resulting in several rounds of exclusion and re-inclusion.  Is it the view of theproponents that export subsidies on such products, when re-included, should be treated exactly the
same as those that never reached export competitiveness?  For example, should the phase-out period
(for Annex VII countries) be the same eight years?
2. Proposal regarding duty remission (G/SCM/W/430)
We agree with the view of some Members that calculation on an industry-wide basis is too
inaccurate, possibly resulting in over-rebates.  It seems that India is proposing that some kind of on-
site inspection guarantees sufficient accuracy of such industry-wide based calculation.  Could India
elaborate more on how they conduct the on-site inspection?
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