. /.WORLD TRADE
ORGANIZATIONG/SCM/N/71/GRD/Suppl.2
12 November 2002
(02-6214)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and
Article 25 of the Agreement on Subsidies and Countervailing Measures
GRENADA
Supplement
The following communication, dated 6 November 2002, has been received from the Ministry
of Foreign Affairs, Grenada.
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Statutory Rules and Orders No 37 of 1999
CARICOM Common External Tariff
RULES GOVERNING THE APPLICATION OF THE LIST
OF CONDITIONAL DUTY EXEMPTIONS
1. A Member State may refuse to grant full duty exemption for any good eligible therefor under
the list and may choose instead to apply a level of import tariff on such good not higher than that
provided in the Schedule of Tariff Rates.
2. In a number of cases (for example, in connection with shipping and aircraft, for health,
governmental, social and cultural purposes), while the scope of the duty exemption has been
specified, each Member State is free to approve the beneficiaries (whether the individual, the
institution or the organization) of the exemption.
3. The reference in the list to goods for the use of international organizations or their personnel
is understood to include inter-governmental organizations operating within the Common Market
pursuant to an agreement in force between such organizations and the Government of one or more
Member States.
4. (a) There the goods produced by an enterprise do not meet the qualifying conditions set
down with respect to those goods in Schedu le II to the Common Market Annex to the
Treaty, that enterprise will not qualify for exemption from duty with regard to the
materials utilized in the production of those goods.
(b) This Rule will not apply to goods which are produced for export to third countries.G/SCM/N/71/ GRD/Suppl.2
Page 2
(c) The Rule will have effect only with regard to concessions approved following entry
into force.
(d) This Rule will enter into force concurren tly with the entry into force of the amended
Common Market Origin rules established by the Council in July 1990, and theagreement by the Council with respect to the amendment of the Harmonized Scheme
for Fiscal Incentives to take account of the provisions of this rule.
5. (a) The items set down in Part I of the List of Ineligibles appended to this List of
Conditional Duty Exemptions shall not be eligible for exemption or reduction of duty
where they are imported for use in Industry, Agriculture, Forestry, Fisheries and
Mining, except:
- when the item is imported for use in new investment or substantial
expansion;  or
- when the item is provided by a country or an international institution in the
context of development finance with a view to assisting the economic
development of the importing Member State, and when the agreement
between the importing Member State and the donor country or international
institution requires sourcing from a particular extra-regional source on a
concessional duty basis.
(b) The items set down in Part I and Part II of the List of Ineligibles appended to this List
of Conditional Duty Exemptions shall not be eligible for exemption or reduction of
duty where they are imported for use in the circumstances contemplated in Section XI
– For Other Approved Purposes (excluding  23-Goods [including foodstuff] imported
for use in rehabilitation or relief following natural disaster, as approved by the
Competent Authority), except that this ineligibility will not apply where the
Competent Authority is satisfied that the items are gifts or have been provided on a
concessional basis.
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