RESTRICTED
WORLD TRADE G/SCM/Q2/MEX/4
27March 1997
ORGANIZATION(97-1272)
Original: Spanish Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from ARGENTINA Regarding theNew
andFullNotification ofMEXICO1
Thefollowing communication, dated 17March 1997, hasbeenreceived fromthePermanent
Mission ofArgentina.
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1. Mexico hasnotified aprogramme oftemporary imports toproduce export goods.
1.1. Could Mexico provide some examples where theprovisions ofthenotified Decree areapplied
inthecaseofgoods returning abroad inthesamestateinwhich theywereimported, particularly
sincethetitleoftheabove-mentioned programme refers totemporary imports toproduce export
goods?
1.2. Withrespect totheformofthesubsidy, Mexico hasnotified adrawback forexporters oftariff
duties paidontemporary imports. Inorder toobtain thisdrawback theexporters concerned
mustsubmit anapplication accompanied byaseries ofdocuments. From reading Article 13
oftheDecree, itwould seem thatwhen theproduct manufactured from thegood imported
under thetemporary import system isauthorized tobesoldonthehome market, theimport
duties havetobepaidontheimported goods before finalimport permission isgranted. Can
Mexico clarify iftheprogramme consists ofanimport dutydrawback orofexemption from
theduty, orifbotharepossible?
1.3. Thetemporary import programme notified doesnotspecify ifthegood imported under the
programme mustbeexported within afixed period. Could Mexico specify whether there is
afixed period within which theproduct must beexported under thissystem?
1.4. From thereading ofArticle 6,lastparagraph, andArticle 22,itwould seemthattheprogramme
notified issubject toexport results. Ifthisinterpretation werecorrect wecould befaced with
asubsidy covered byArticle 3.1(a) oftheSubsidies Agreement: could Mexico clarify these
articles?
1.5. CanMexico specify what willbethetotalduration ofthisprogramme andifitwillrespect
theeight-year time-limit setoutinArticle 27.4oftheSubsidies Agreement?
1.6. Does Mexico have atimetable fortheprogressive elimination ofthetemporary import
programme inaccordance withArticle 27.4oftheSubsidies Agreement?
1G/SCM/N/3/MEX.