RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/DMA/4
19 April 2002
(02-2215)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Questions Posed by the UNITED STATES
Regarding the Notification of DOMINICA1
The following communication, dated 17 April 2002, has been received from the Permanent
Mission of the United States.
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The following questions are submitted with respect to the request for extension of the
transition period for export subsidies under Article 27.4 of the Agreement on Subsidies and
Countervailing Measures Agreement (ASCM).  Thes e questions are preliminary in nature and are
submitted without prejudice to our final position.  We reserve the right to ask further questions.
Fiscal Incentives Programme
1. Could Dominica please explain whether this programme provides any other incentives apart
from the full or partial exemption from import duties and internal taxes?
2. Please provide the normal customs duty, consumption tax and income tax rates companies
would pay absent this programme.
3. Could Dominica please explain whether any subsidies under this programme are contingent
upon the use of domestic goods?  In particular, please explain how the local value-added information
that must be provided in an application is taken into account when granting benefits.  Moreover, in
light of the local component or local raw material requirements, please comment on whether thisaspect of the programme constitutes a prohibited subsidy under Article 3.1(b) of the Agreement on
Subsidies and Countervailing Measures.
4. Because some eligible enterprises are enti tled to benefits under this programme for up to
15 years, please explain how Dominica would modify this programme so that subsidies do not extendbeyond any extension period provided.
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1 G/SCM/N/74/DMA, G/SCM/N/71/DMA