RESTRICTED
WORLD TRADE G/SCM/Q2/TUR/5
8October 1996
ORGANIZATION(96-4078)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theUNITED STATES Regarding theNew
andFullNotification ofTURKEY1
Thefollowing communication, dated 27September 1996, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
Section I. General
Please provide information concerning thefollowing programmes which didnotappear tobe
included within Turkey ’snotification, yetmaymeetthenotification requirements ofGATT 1994and/or
theSCM Agreement. Iftheseprogrammes areencompassed elsewhere inTurkey ’snotification, please
explain. Ifnot,please include information relevant totheelements requested inthenotification format,
orexplain thebasis onwhich Turkey determined thateachprogramme didnotmeetthenotification
requirements referenced above:
(NOTE: Certain ofthefollowing programmes havebeenfound tobecountervailable subsidies inUS
countervailing duty proceedings involving products ofTurkey, including certain drypasta and
acetylsalicylic acid(aspirin).)
A. Pasta Export Grants
Authority: Central Bank ofTurkey
Policy: Export; cashgrants andgovernment promissory notes orbonds toexporters
todevelop Turkey ’sexport potential
B. FreeWheat Programme
Legal Basis & Established byDecree 93/4534 andadministered byTurkish Grain
Authority: Board
Policy: Export; freewheat tocompanies thatagree toexport flour, pasta,
semolina, orbiscuits.
1G/SCM/N/3/TURG/SCM/Q2/TUR/5
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C. Payments forExports onTurkish Ships/State AidforExports Programme
Authority: Central Bank ofTurkey
Policy: Export; cashgrants orbonds based onthenumber oftonsofproduct (processed
goods) transported bysea.
D. Various Measures under theGeneral Incentives Programmes (GIP), including:
1. Resource Utilization Support Fund
Policy: Promote domestic inputs; provides rebates ofthe15percentVAT paidon
domestically-sourced machinery andequipment.
2. Incentive Premium onDomestically Obtained Goods
Policy: Promote domestic inputs; provides companies holding investment incentive
certificates under theGIPwithrebates ofthe15percentVAT paidon
locally-sourced machinery andequipment plusa10percentpremium.
3. Interest Spread Return Programme
4. Investment Allowances
5. Mass Housing Fund Levy Exemptions
6. Customs Duty Exemptions
7. Rebate ofVAT onDomestically-Sourced Machinery andEquipment
8. Additional Refunds ofVAT
9. Postponement ofVAT onImported Goods
10. Other TaxExemptions
11. Payment ofCertain Obligations ofFirms Undertaking Large Investments
12. Corporate TaxDeferral
13. Subsidized Turkish LiraCredit Facilities
14. Subsidized Credit forProportion ofFixed Expenditures
15. Subsidized Credit inForeign Currency
16. Land Allocation
E. Advance Refunds ofTaxSavings
F. Direct Payments toExporters ofWheat Products toCompensate forHighDomestic InputPrices
G. Export Revenue TaxDeduction
Authority: Section 8ofLawNo.5422, asamended bySection 6ofLawNo.2362.
Policy: Export; permits producers thatexport industrial products valued inexcess of
$250,000 annually todeduct 20percentoftheirexport revenues fromtaxable
corporate income.
H. Transportation Subsidy
Policy: Transportation/export; provides asubsidy ofUS35 perMTtoNorth andSouth
AmericaandtheFarEast,US$25perMTtoEurope,MiddleEast,NorthAfrica
andother destinations.
Section II. Notified Programmes
A. Withsome exceptions, Turkey hasnotnotified relevant information onthebasisoftheagreed
notification format, which makes itdifficult todetermine where information which issupposed
tobenotified maybemissing. Could Turkey please provide anysuchmissing informationG/SCM/Q2/TUR/5
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pertaining tonotified subsidy programmes inresponse totheparticular items enumerated in
G/SCM/6?
B. CouldTurkeycommentandelaborateontheeligibilityrequirementsforthePre-ShipmentExport
Credit Programme andtheSmall andMedium-Scale Firms Export Credit Programme?