RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/JAM/6
17 May 2002
(02-2736)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Replies to Questions Posed by CANADA1, the EUROPEAN COMMUNITIES2,
the UNITED STATES3 and SWITZERLAND4 Regarding the
Notification of JAMAICA5
The following communication, dated 1 May 2002, has been received from the Permanent
Mission of Jamaica.
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QUESTIONS FROM CANADA
Q. Please indicate the number of Companies/Industrial Parks operating under the Jamaica
Export Free Zones Act.
Reply
As at 1 September 2001, there were five (5) Free Zone industrial estates/complexes and fifty-
four (54) free zone companies operating under the Free Zones Act.
QUESTIONS FROM THE EUROPEAN COMMUNITY
Q1. Please indicate when the programmes came into operation
Reply
The Export Industry Encouragement Act came into force on 25 October 1956.
The Jamaica Export Free Zones Act came into force on 1 December 1982.
The Industrial Incentives (Factory Construction) Act came into force on 15 May 1961.
                                                     
1 G/SCM/Q3/JAM/4
2 G/SCM/Q3/JAM/3
3 G/SCM/Q3/JAM/5
4 G/SCM/Q3/JAM/1
5 G/SCM/N/74/JAM, G/SCM/N/71/JAM.G/SCM/Q3/JAM/6
Page 2
The Foreign Sales Corporation Act came into force on 14 November 1984.
Q2. Please indicate whether the programmes provide for other forms of subsidies than
exemption of import duties and internal taxes, e.g., grants, provision of goods or services.
Reply
None of the programmes notified provide for other types of subsidies.
Q3. Do the programmes provide for a condition to use domestic goods?
Reply
There is no legal requirement under any of the above notified statutes for the use of domestic
goods.
Q4. Please indicate the rate of import duty or internal tax exemption as of
1 September 2001.
Reply
The regimes notified provide for (a) full income tax relief on profits earned in connection
with the relevant activity prescribed by statute and (b) full import concessions (CET and GCT) in
respect of items being used in connection with the prescribed activity.
It is to be noted however, that under the Export Industry Encouragement Act, partial exporters
(Companies exporting less than 100 per cent of output) are entitled to an export allowance that may be
deducted from taxable income, with the level of tax relief linked to exports.
To qualify for the allowance partial exporters must satisfy a 5 per cent threshold of export
sales to total sales and exports must be to markets outside of the CARICOM region.
Q5. Please describe changes to the programme since 1 September 2001, if any.  In particular
indicate any changes to the rate of exemption on the coverage of the programmes e.g., in terms
of products, location, etc.
Reply
There have been no changes since 1 September 2001 to any of the above programmes that
would have implications for the Agreement on Subsidies and Countervailing Measures.
Q6. Please indicate for each programme how many Companies have benefitted from the
programmes as of 1 September 2001.G/SCM/Q3/JAM/6
Page 3
Reply
Number of Companies Benefitting as at 1 September 2001 from incentives
Incentive Regime No. of Companies
Export Industry Encouragement Act
Jamaica Export Free Zones ActIndustrial Incentive Factory Construction ActForeign Sales Corporation Act15
48
3
520
Q7. Please elaborate on when and how Jamaica intends to phase out the programmes.
Reply
Jamaica is currently reviewing its various incentive programmes, including the programmes
notified for extensions in accordance with the Doha Ministerial Decisions.
QUESTIONS FROM THE UNITED STATES
Export Industry Encouragement Act
Jamaica Export Free Zones ActForeign Sales Corporation Act
Industrial incentives (Factory Construction) Act
Q1. Could Jamaica please explain whether these programmes provide any incentives apart
from the full and partial exemption from import duties and internal taxes?
Reply
There are no other incentive benefits besides income tax and import duty concessions under
the above programmes
Q2. Please provide the normal customs duty consumption tax and income tax rates
companies would pay absent these programmes.
Reply
Jamaica currently applies the CARICOM Common External Tariff (CET) at rates of between
0 to 20 per cent for industrial products.
However, pursuant to policy decision and in keeping with the terms of the Common External
Tariff, inputs, (raw materials and capital goods) classified as non-competing items in the Tariff and
which are for use in the production process, have since 1994 been assigned a zero rate of duty.G/SCM/Q3/JAM/6
Page 4
A value added tax or General Consumption Tax (GCT) of 15 per cent is applicable on
imports.
Jamaica applies a corporate income tax rate of 331/3 per cent on profits.
Jamaica Export Free Zones Act
Q3. Because incentives granted to Free Zone entities are for an indefinite period, please
explain how Jamaica would modify the programme so that subsidies do no extend beyond any
extension period provided
Reply
The Free Zones Programme is being kept under review.  However, as of now its continuation
is anticipated in accordance with relevant Doha Ministerial Decisions.
Q4. Could Jamaica provide statistical data on  the number of companies that benefit from
each of these programmes and the industry sector represented by these companies?
Reply
Number of Free Zone Companies as at September 2001 According to Industry Sectors
Garment Manufacturing 12
Agro Processing   3
Information Technology 26
Warehousing   3
TOTAL 48
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Industrial Incentives (Factory Construction) Act
Q5. Is receipt of benefits under this program contingent upon export performance?
Reply
Companies provided benefits under this regime are not required to be involved in export
activities.  However, to access this activity approved builders are required to provide factory space forcompanies i.e., status under the Export Industry Encouragement Act.
Q6. Because incentives granted under this programme are for up to 15 years, please explain
how Jamaica would modify this programme so that subsidies do not extend beyond any
extension period provided.
Reply
This programme is being kept under review.  Incentives granted will be in accordance with
the Doha Ministerial Decisions.
Q7. Could Jamaica please provide statistical da ta on the number of companies that benefit
from each of these programmes and the industry sectors represented by these companies?G/SCM/Q3/JAM/6
Page 5
Reply
There are four (4) companies in operation that are beneficiaries of this regime.  All companies
are factory space providers.
Foreign Sales Corporation
Q8. Because incentives granted under this programme are up to 15 years, with a possible
additional 15 year extension, explain how Jam aica would modify this programme so that
subsidies do not extend beyond any extension period provided.
Reply
This programme is being kept under review.  Incentives granted will be in accordance with
the Doha Ministerial Decisions.
Q9. Could Jamaica please provide statistical da ta on the number of companies that benefit
from the programme and the industry sectors represented by these companies?
Reply
There are 520 companies on register as FSCs.
QUESTIONS FROM SWITZERLAND
Q. Jamaica is urged to explain more in detail the statistical data on the impact of the
programmes provided in document G/SCM/N/71/JAM  Page 3 and 5 respectively, regarding the
Export Industry Encouragement Act and the Jamaica Export Free Zones Act.  What do the
figures in the second column stand for?
Reply
The figures in the right columns represent the value of exports by recipients under the Export
Industry Encouragement Act and the Jamaica Export Free Zone Act for the years 1998 to 2000 and
the figures in the left  columns represent the value of total exports by Jamaica for the same period.
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