RESTRICTED
WORLD TRADE G/SCM/N/3/JPN/Rev.1*
11August 1995
ORGANIZATION(95-2369)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Notifications Pursuant toArticle 25of
theAgreement onSubsidies andCountervailing Measures
JAPAN
Thefollowing notification hasbeenreceived from thePermanent Mission ofJapan.
_______________
1. Titleofthesubsidy programme
Grants formodernizing coalpits.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural adjustment ofcoal-mining industry while keeping employment bymeans
ofpromoting rationalization andmaintaining stable production andsafety.
4. Background andauthority forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
*Thisdocument replaces G/SCM/N/3/JPN-L/7162/Add.20 (English only). L/7162/Add.20 is
cancelled.G/SCM/N/3/JPN/Rev.1
Page2
7. Towhom andhowthesubsidy isprovided
Coalmining company possessing coalmines withgalleries which areregarded ascontributing
tostable production andsafety.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY (settlement ofaccounts) ¥3,556 million
1993FY (settlement ofaccounts) ¥2,864 million
1994FY (budget) ¥4,402 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1967FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1991 FY1992 FY1993
Production 7,931 7,602 7,206
Import 113,027 110,947 112,326
Consumption 119,173 116,182 117,821
Export 0 0 0
***
1. Titleofthesubsidy programme
Grants forsecurity ofmines.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Tosecure safety incoalmines.
1Statistics ofproduction, consumption, imports andexports:
(i)forthethree most recent years forwhich statistics areavailable;
(ii)foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/3/JPN/Rev.1
Page3
4. Background andauthority forthesubsidy
Ministry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Owner ofacoalmining right.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY (settlement ofaccounts) ¥3,053 million
1993FY (settlement ofaccounts) ¥2,902 million
1994FY (budget) ¥4,290 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1965FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1991 FY1992 FY1993
Production 7,931 7,602 7,206
Import 113,027 110,947 112,326
Consumption 119,173 116,182 117,821
Export 0 0 0
***
1. Titleofthesubsidy programme
Grantsforpromotingcoalminingcompany'sdiversificationoftheirmanagementanddeveloping
newbusiness frontier.G/SCM/N/3/JPN/Rev.1
Page4
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Toassist coalmining company 'sdeveloping newbusiness frontier topromote structural
adjustment ofthedomestic coalmining industry.
4. Background andauthority forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Coalmining company todevelop newbusiness frontier (prescribed byArticle 7oftheLaw
onExtraordinary Measures forStructural Adjustment oftheCoalMining Industry).
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY (settlement ofaccounts) ¥422million
1993FY (settlement ofaccounts) ¥604million
1994FY (budget) ¥1,514 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1992FY -2001FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1991 FY1992 FY1993
Production 7,931 7,602 7,206
Import 113,027 110,947 112,326
Consumption 119,173 116,182 117,821
Export 0 0 0
***G/SCM/N/3/JPN/Rev.1
Page5
1. Titleofthesubsidy programme
Grants forstabilizing coalindustry.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural adjustment ofJapanese coalmining industry while keeping employment
bymeans ofstabilizing thefinancial basis ofcoalmining industry.
4. Background andauthorit forthesubsidy
NEDO (New Energy andIndustrial Technology Development Organization).
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Ownersofminingrightswhoproducecoalbyundergroundminingandmeetthegivenconditions.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY (settlement ofaccounts) ¥3,590 million
1993FY (settlement ofaccounts) ¥4,290 million
1994FY (budget) ¥5,691 million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1967FY -2001FY.G/SCM/N/3/JPN/Rev.1
Page6
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
FY1991 FY1992 FY1993
Production 7,931 7,602 7,206
Import 113,027 110,947 112,326
Consumption 119,173 116,182 117,821
Export 0 0 0
***
1. Titleofthesubsidy programme
Subsidy fortherationalization ofpetroleum refinery.
2. Period covered bythenotification
April 1994 -March 1995.
3. Policy objective and/or purpose ofthesubsidy
Toassist therationalization (including closure) ofrefineries.
4. Background andauthority forthesubsidy
Ministry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Interest ratesubsidy.
7. Towhom andhowthesubsidy isprovided
Oilrefining companies which haverationalized theirbusiness.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY (settlement ofaccounts) ¥956million
1993FY (settlement ofaccounts) ¥1,063 million
1994FY (settlement ofaccounts) ¥982millionG/SCM/N/3/JPN/Rev.1
Page7
9. Duration ofthesubsidy and/or anyother time-limits attached toit
From 1986FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
FY1992 FY1993 FY1994
Total amount of
products (1,000 kl)211,916.00 215,747.00 228,749.00
Rateofimports
(%)14.27 12.26 13.76
Rateofexports
(%)6.19 7.54 7.52
There isnoinfluence ontherateofimports andexports bythissubsidy.
***
1. Titleofthesubsidy programme
Subsidy forpromotion oftextile andapparel industry.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural improvement ofthetextile industry.
4. Background andauthority forthesubsidy
Textile Industry Restructuring Agency.
5. Legislation under which itisgranted
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
Groups ofenterprises approved under theLawonExtraordinary Measures fortheStructural
Improvement oftheTextile Industry.G/SCM/N/3/JPN/Rev.1
Page8
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
¥72million (1994FY budget).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1994FY -1998FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production Import Export Domestic
consumption
1992 1,704,637 t 993,227 t 466,914 t 2,208,268 t
1993 1,502,607 t 1,106,186 t 434,467 t 2,181,505 t
1994 1,420,537 t 1,304,787 t 428,237 t 2,336,838 t
***
1. Titleofthesubsidy programme
Loan guarantee forpromotion oftextile andapparel industry.
2. Period covered bythenotification
April 1994 -March 1995.
3. Policy objective and/or purpose ofthesubsidy
Topromote structural improvement ofthetextile industry.
4. Background andauthority forthesubsidy
Textile Industry Restructuring Agency.
5. Legislation under which itisgranted
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Loan guarantee.
7. Towhom andhowthesubsidy isprovidedG/SCM/N/3/JPN/Rev.1
Page9
Groups ofenterprises approved under theLawonExtraordinary Measures fortheStructural
Improvement oftheTextile Industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
¥247million (total newguarantees extended during 1994FY).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
1967FY -1998FY.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production Import Export Domestic
consumption
1992 1,704,637 t 993,227 t 466,914 t 2,208,268 t
1993 1,502,607 t 1,106,186 t 434,467 t 2,181,505 t
1994 1,420,537 t 1,304,787 t 428,237 t 2,336,838 t
***
1. Titleofthesubsidy programme
Grant forpromotion ofresearch anddevelopment offuture ships.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Topromote research anddevelopment offuture ships.
4. Background andauthority forthesubsidy
Ministry ofTransport.
5. Legislation under which itisgranted
LawfortheAssociation forStructural Improvement oftheShipbuilding Industry.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.G/SCM/N/3/JPN/Rev.1
Page10
7. Towhom andhowthesubsidy isprovided
Topromote theresearch anddevelopment offuture ships.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
1992FY ¥830million
1993FY ¥862million
1994FY ¥873million
9. Duration ofthesubsidy and/or anyother time-limits attached toit
There isnotime-limit attached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Theknow-how from thesubsidized R&Dprojects hasnotproduced commercial products,
sothetrade effects ofthissubsidy areunknown atthispoint.
***
1. Titleofthesubsidy programme
Resource propagation programme forsalmon.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Propagation andmaintenance ofsalmon resources byassisting todevelop hatching andbreeding
facilities andtopromote public activities forpreventing illegal fishing.
4. Background andauthorization forthesubsidy
Ministry ofAgriculture, Forestry andFisheries.
5. Legislation under which itisgranted
Preservation ofMarine Resources Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc.)
Grant.G/SCM/N/3/JPN/Rev.1
Page11
7. Towhom andhowthesubsidy isprovided
Recipient Body: Fisheries Cooperative.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
¥469million (total amount budgeted for1994FY).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
There isnotimeattached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(Unit: tonnes)
FY1992 FY1993 FY1994
Production 215,022 265,657 278,149
Consumption 386,069 471,521 498,473
Export 793 119 7,285
Import 173,476 228,539 243,209
There isnoinfluence ontherateofimports andexports bythissubsidy.
***
1. Titleofthesubsidy programme
Taxmeasurestostrengthenthemanagementofsmall-andmedium-sizedcorporations(inrelation
toLawonTemporary Measures forImprovement ofAgricultural Product Processing Industry).
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Improvement ofthemanagement ofagricultural product processing businesses.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.G/SCM/N/3/JPN/Rev.1
Page12
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxcredit andtaxdeferral.
7. Towhom andhowthesubsidy isprovided
Small-andmedium-sizedcorporationsengagingintheagriculturalproductprocessingbusinesses.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
30percentspecial depreciation or7percenttaxcredit oftheacquisition costisgranted for
themachinery. Incaseoflease, 7percenttaxcredit of60percentofthetotallease feeisgranted.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Applicable fortheMachinery acquired between 1July1989 and31March 1997.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
Production 1992 y. 1993 y. 1994 y.
Cheese 96 100 103
(April-March)
Sweet potato starch 101 91 56
(October-September)
Potato starch 277 265 259
(October-September)
***
1. Titleofthesubsidy programme
Reserve forpromoting theuseofrecycled resources.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Promotion ofrecollection andclassification ofrecyclable resources anddevelopment ofthe
recycled products markets.
4. Background andauthority forthesubsidyG/SCM/N/3/JPN/Rev.1
Page13
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations manufacturing products from recycled resources.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
14percentofsalesincrease oftheproducts manufactured fromrecycled resources isdeductible
fromtaxable income asthereserve. (One fifthofthereserve should beadded backtogross revenue
ineachofthenext5business years).
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Business years starting after31March 1993 andbefore 1April 1997.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Therateofrecycling.
(%)
1991 1992 1993
Recycled paper 52.3 52.6 53.1
Recycled cullet 51.8 56.2 55.5
Recycled aluminium cans 43.1 53.8 57.8
Recycled steelcans 50.1 56.8 61.0
***
1. Titleofthesubsidy programme
Additionaldepreciationonmachineryofcorporationswhichcarryouttheplansforimprovement
ofagriculture management.
2. Period covered bythenotificationG/SCM/N/3/JPN/Rev.1
Page14
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Rationalization ofproduction anddistribution oftimber industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inmaterial manufacturing, whose rationalization plans areapproved
bytheMinister ofAgriculture, Forestry andFisheries.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forforestry machinery for5years.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
For5years afterapproval ofaplanforrationalization.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production oftimber
(thousand m3)
Year 1992 1993 1994
Production 27,938 27,114 25,570
***
1. Titleofthesubsidy programme
Additional depreciation onfishing boats (inrelation totheplanforstructural improvement
ofsmall- andmedium-sized fishing enterprises under thescheme oftheExtraordinary Lawonthe
Reconstruction ofFishing Industry).G/SCM/N/3/JPN/Rev.1
Page15
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Structural improvement offishing industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
-Membership offishing cooperatives whose plans forstructural improvement ofsmall-
andmedium-sizedfishingenterprisesareapprovedbytheMinisterofAgriculture,Forestry
andFisheries.
-Engaging incertain fishing businesses.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forfishing boats for5years.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
For5years afterapproval oftheplanforstructural improvement offishing enterprises.G/SCM/N/3/JPN/Rev.1
Page16
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(million ¥)
(1991 y.) (1992 y.) (1993 y.)
Medium trawl fishery 119,223 92,809 86,910
Large trawl fishery inEastChina Sea 30,023 30,685 22,120
Pelagic skipjack andtunafishery 221,316 234,460 241,931
Offshore skipjack andtunafishery 68,545 72,310 66,210
Surrounding netfishery 267,005 225,414 220,609
Medium-sized squid jigging fishery 27,573 22,768 19,415
***
1. Titleofthesubsidy programme
Additional depreciation onmachinery (inrelation totheplanforstructural improvement of
textile industry under thescheme oftheTemporary LawontheStructural Improvement ofTextile
Industry).
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Structural improvement oftextile industry.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.G/SCM/N/3/JPN/Rev.1
Page17
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
-Membership ofcommercial andindustrial cooperatives, etc.whose plans forstructural
improvement oftextile industry areapproved bytheMinister ofInternational Trade and
Industry.
-Engaging inthebusiness oftextile industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Additional depreciation of20percentisgranted forcertain buildings andmachinery for5years.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
For5years aftertheapproval oftheplanforstructural improvement oftextile industry.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
1992 1993 1994
Production (t) 1,704,637 1,502,607 1,420,537
Import (t) 993,227 1,106,186 1,304,787
Export (t) 466,914 434,467 428,237
Domestic demand (t) 2,208,268 2,181,505 2,336,838
Import/Domestic demand (%) 45.0 50.7 55.8
***
1. Titleofthesubsidy programme
Special depreciation onmachinery (inrelation totheplans forstructural improvement ofsmall-
andmedium-sizedenterprises(SMEs)undertheschemeoftheLawonPromotionofSmall-andMedium-
sized Enterprises Modernization).
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Promotion ofrationalization ofsmall- andmedium-sized enterprises.G/SCM/N/3/JPN/Rev.1
Page18
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Small- andmedium-sized corporations which meetallthefollowing conditions:
-Membership ofcommercial andindustrial cooperatives, etc.whose plans forstructural
improvement ofSMEs areapproved bytheMinister ofInternational Trade andIndustry.
-Engaging inthebusinesses qualified asnecessary forimmediate structural improvement.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special additional depreciation of20percentofordinary depreciation allowance forthefirst
5years isgranted forcertain factory building andmachinery.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
For5years aftertheapproval oftheplanforstructural improvement ofSMEs.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofmain Industries.
(million ¥)
1992 1993 1994
Concrete industry 1,771,213 1,660,014 1,655,346
Lime industry 107,210 102,923 96,976
Screw industry 778,409 743,446 731,578
Gear industry 251,492 229,193 232,035
Pig-iron casting industry 901,965 830,558 841,046
Metal-press industry 1,159,643 1,086,395 1,126,772
***G/SCM/N/3/JPN/Rev.1
Page19
1. Titleofthesubsidy programme
Special depreciation onfacilities (inrelation toLawonTemporary Measures forImprovement
ofAgricultural Product Processing Industry).
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Improvement ofthemanagement ofagricultural product processing enterprises.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inagricultural product processing industries, whose plans toimprove
management orplans forbusiness cooperation areapproved bygovernor.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special depreciation of14percentofacquisition costisgranted forthemachinery.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Applicable forthemachinery acquired between 1July1989 and31March 1997.G/SCM/N/3/JPN/Rev.1
Page20
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(thousand tons)
Production 1992 y. 1993 y. 1994 y.
Cheese 96 100 103
(April-March)
Sweet potato starch 101 91 56
(October-September)
Potato starch 277 265 259
(October-September)
***
1. Titleofthesubsidy programme
Special depreciation oncertain machinery usedforhigh-technology industries inthedesignated
high-technology industrial development areas ("Technopolis").
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Promotionoftheindustrialdevelopmentincertainareas,basedonthehigh-technologyindustries.
4. Background andauthority forthesubsidy
Ministry ofFinance.
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc)
Taxdeferral.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inthequalified high-technology industries.G/SCM/N/3/JPN/Rev.1
Page21
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Special initial depreciation isgranted forthehigh-technology machinery depending onthetime
ofacquisition asfollows.
Years afterapproval ofthe"Technopolis" plan
~5y. 5y.~7y. 7y.~8y. 8y.~10y. 10y.~12y.
Machinery 30% 25% 20% 15% 14%
Buildings
etc.15% 13% 10% 8% 7%
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Within 12years aftertheapproval ofthe"Technopolis" plan.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
(billion ¥)
Production in"Technopolis"
1990 33,369.4
1991 35,854.8
1992 35,506.9
***
1. Titleofthesubsidy programme
Special deduction forexpenditure onprospecting fordomestic oroverseas mineral deposit.
2. Period covered bythenotification
April 1994-March 1995.
3. Policy objective and/or purpose ofthesubsidy
Toensure continuity ofmining business.
4. Background andauthority forthesubsidy
Ministry ofFinance.G/SCM/N/3/JPN/Rev.1
Page22
5. Legislation under which itisgranted
Special Taxation Measures Law.
6. Form ofthesubsidy
(i.e.grant, loan, taxconcession, etc)
Deduction from taxable income.
7. Towhom andhowthesubsidy isprovided
Corporations engaging inmining industry.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Thelowest ofthefollowing three amounts maybededucted from taxable income.
(1)theamount oftheprospecting costs incurred, including depreciation expenses allowed
onmachinery andequipment usedforprospecting.
(2)theamount added backtothetaxable income from theprospecting costreserve.
(3)theamount ofcorporation income forthebusiness year.
9. Duration ofthesubsidy and/or anyother time-limits attached toit
Forthebusiness yearcontaining adaybetween 1April 1965 and31March 1998.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Theamount ofdomestic production ofminerals.
(thousand tons)
1991 1992 1993
Copper 8.7(0.5%) 9.3(0.6%) 7.8(0.5%)
Lead 24.7(7.7%) 25.8(8.6%) 22.6(8.1%)
Zinc 137.8 (17.0%) 142.1 (18.5%) 123.8 (17.6%)