RESTRICTED
WORLD TRADE G/SCM/Q2/KOR/3/Rev.1*
9October 1996
ORGANIZATION(96-4133)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from JAPAN Regarding theNew
andFullNotification ofKOREA1
Revision
Thefollowing communication, dated 2October 1996, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
(1) V.A. Reserves forexport losses
Paragraph 1(b)ofthenotification defines thepolitical purpose ofthisscheme as"tocompensate
forthelossofexport business". Inthisconnection, could Korea answer thefollowing questions?
- Does thisprogramme constitute anexport subsidy provided forinArticle 3.1(a) and
paragraph 1(e)oftheAnnex (taxconcession) totheSCM Agreement?
- Willthisprogramme benotified under Article 28.1oftheSCM Agreement?
- Willthissubsidy bephased outinaccordance withArticle 28.1oftheSCM Agreement?
(2) V.B. Reserves foroverseas market development
Paragraph 1(b)ofthenotification defines thepolitical purpose ofthisscheme as"topromote
theoverseas market development ofabusiness earning foreign currency". Inthisconnection, could
Korea answer thefollowing questions?
- Does thisprogramme constitute anexport subsidy provided forinArticle 3.1(a) and
paragraph 1(e)oftheAnnex (taxconcession) totheSCM Agreement?
- Willthisprogramme benotified under Article 28.1oftheSCM Agreement?
*English only.
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- Willthissubsidy bephased outinaccordance withArticle 28.1oftheSCM Agreement?
(3) V.C. Facility investment loans provided bytheSMEs foundation formation fund
Paragraph 1(b)ofthenotification defines thepolitical purpose ofthisscheme as"toincrease
exports andenforce theinternational competitiveness ofSMEs bypromoting export-related investments
infacilities". Thecriterion forqualification isprovided forin1(d)(ii) ofthenotification as"theSMEs
thatneedfacilities fundinorder toproduce export goods ormaterials andparts". Inthisconnection,
could Korea answer thefollowing questions?
- Does thisprogramme constitute anexport subsidy provided forinArticle 3.1ofthe
SCM Agreement?
- What arethecriteria oftheSMEs andtheeligibility forthisprogramme?
(4) V.E. Taxreduction andexemption forforeign invested enterprises
Paragraph 1(d)(ii) ofthenotification usestheterm"foreign invested enterprises entering free
export zones". Could Korea answer thefollowing questions?
- What isthedefinition of"free export zones" indetail?
- Does thisprogramme constitute anexport subsidy provided forinArticle 3.1(a) and
paragraph 1(e)oftheAnnex (taxconcession) totheSCM Agreement?
(5) V.F. Reduction incustoms dutyonparts ofaircraft andvessels
Could Korea answer thefollowing questions?
- What isthecoverage of"Vessels"? Do"Vessels" include ships andautomobiles?
- Isthissubsidy available foraircraft andvessels forexport?
- Isthere anydiscrimination among theexporting countries ofparts?
(6) V.H. Assistance programme topromote thespread ofdomestically produced mini-computers
Paragraph 1(b)ofthenotification defines thepolitical purpose ofthisscheme as"topromote
theuseofthedomestically manufactured mini-computer".
- Does thisprogramme constitute asubsidy contingent upon theuseofdomestic over
imported goods, provided forinArticle 3.1(b)?
- What isthecoverage of"mini-computers"?
- What istheexamination criteria fortheloan?