RESTRICTED
WORLD TRADE G/SCM/N/3/NGA
24July1996
ORGANIZATION(96-2927)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
NOTIFICATIONS PURSUANT TOARTICLE XVI.1 OFTHE GATT 1994
AND ARTICLE 25OFTHE AGREEMENT ONSUBSIDIES AND
COUNTERVAILING MEASURES
NIGERIA
Thefollowingcommunication,dated17July1996,hasbeenreceivedfromthePermanentMission
ofNigeria.
_______________
Income TaxExemption forExport Profits
1. Description ofsubsidy
Thesubsidy consists ofexemptions under theNigerian LawonExport Processing Zones, from
thepayment ofIncome Tax, inrespect oftheprofits thatlegal entities established intheExport
Processing Zones, obtain from thesaleoftheirproducts outside thecountry.
2. Period ofnotification
Theperiod covered bythenotification isthree years, from June1996.
3. Purpose ofthesubsidy
Thepurpose ofthesubsidy istopromote non-traditional exports withaviewtodiversifying
production andgenerating sources ofwork andincome forthepopulation.
4. Background andauthority
Thepurpose ofthelawonEPZistoregulate theestablishment andoperation ofEPZinthe
country inorder topromote national development bymeans ofactivities which fundamentally strengthen
foreign trade andcontribute tothetransfer oftechnology, generation ofemployment andregional
development. Thesubsidy isauthorized pursuant tosection 8oftheNigerian Export Processing Zones
Decree No.63of1992. TheFederal Ministry ofFinance isresponsible forthesupervision and
enforcement ofthetaxregime.
./.G/SCM/N/3/NGA
Page2
5. Form ofthesubsidy
Taxexemption.
6. Beneficiaries andmechanism
Alllegalentities established intheExport Processing Zones which selltheirproducts outside
thecountry. Themechanism consists ofanexemption from thepayment ofincome tax.
7. Estimated amount ofthesubsidy
Noamount isbudgeted forthismeasure, sinceitisnotatransfer offunds butataxexemption.
InNigeria, there isoneExport Processing Zone inCalabar, Cross River State, which isregulated by
Decree No.63of1992.
8. Duration ofthesubsidy
Yettobedetermined bytherelevant authorities.
9. Trade effects ofthesubsidy
Forthemoment thereisnostatistical information available reflecting theeffect ofthissubsidy
ontrade. Such information willbesupplied induecourse, assoonasitbecomes available.