  
  
G/SCM/Q2/BRA/56  
13 April 2022 
(22-3037) Page: 1/2 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS POSED BY THE UNITED KINGDOM1 REGARDING  
THE NEW AND FULL NOTIFICATION OF BRAZIL2  
The following communication, dated and received on 12 April 2022, is being circulated at the request 
of the delegation of Brazil.  
 
_______________  
 
 
Question 1  
Productive Development Policy  
1. In each year, what percentage of the total reduction in tax went to:  
a. Shipbuilding and vessels  
b. Aircraft  
Reply : 
Brazil thanks the UK for the question. It shares the belief that the sharing of information is in the 
interest of all Members and is essential for the effective functioning of the SCM Agreement.  
In this spirit, Brazil highlights that part of the Productive  Development Policy is destined to the 
services sector, hence not covered by the SCM Agreement. The totality of the program is notified, 
however, for transparency purposes.  
Regarding the percentages of the tax reduction for each sector, Brazil provides the  following figures, 
noting that the values are estimated:  
a. Shipbuilding and vessels 8,2%  
b. Aircraft 91,8%  
Question 2  
Regional Development and Promotion of Research and Development and Technological 
Innovation Programme  
 
1 G/SCM/Q2/BRA/55  
2 G/SCM/N/372/BRA  G/SCM/Q2/BRA/56  
- 2 - 
  2. Which sectors are eligible for this subsidy?  
Reply : 
Brazil thanks the UK for the question. It shares the belief that the sharing of information is in the 
interest of all Members and is essential for the effective functioning of the SCM Agreement.  
As indicated by Brazil on item 1.6.6 of its NFN 2021, industrial enterprises in the North, Northeast 
and Midwest regions are entitled to a reduction of 32% of IPI levied on sales of products classified 
under codes 8702 to 8704 of the Table of Incidence of IPI. The reduction is applied on product s 
produced in the domestic market or directly imported.  
Companies shall invest, at least, 10% of the value corresponding to IPI reduction in research and 
development and technological innovation in the regions covered by the programme.  
 
__________  