RESTRICTED
WORLD TRADE G/SCM/Q2/AUS/8
11October 1996
ORGANIZATION(96-4203)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theUNITED STATES Regarding theNew
andFullNotification ofAUSTRALIA1
Thefollowing communication, dated 27September 1996, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
Please indicate whether thefollowing programmes have been reported aspartofanother
programme. Ifso,please indicate under which reported programme itfalls. Forthose programmes
listed below which were notnotified, please provide theinformation requested intheapproved
notification format andexplain thebasis onwhich Australia determined thatthesubsidy wasnot
notifiable.
1. Export Market Development Grants Scheme
(Source: "Business Incentives andtheGATT Subsidies Agreement", Australian Business Law
Review; Sydney.)
2. Customs Bounty Schemes
(Source: "Business Incentives andtheGATT Subsidies Agreement", Australian Business Law
Review; Sydney.)
3. Victorian Payroll TaxRebates
(Source: "Business Incentives andtheGATT Subsidies Agreement", Australian Business Law
Review; Sydney).
4. Wages Subsidies
(Source: "Costing theJobCompact", Economic Record; EastIvanhoe; Dec.1995;
Government 'sWhite Paper "Working Nation".)
1G/SCM/N/3/AUS.
./.G/SCM/Q2/AUS/8
Page2
5. Export Facilitation Scheme Arrangements fortheAutomotive Sector
Agency: TheDepartment ofIndustry, Science, andTechnology; andTheAustralian Customs
Service.
Policy: Toprovide firms inorsupplying theautosector withimport dutyreduction credits,
theamount ofwhich isdetermined according toexport performance andtheextent ofAustralian
value-added. ("Government 'spolicy ofencouraging boththeassembly ormanufacture in
Australia ofspecified passenger motor vehicles andthemanufacture inAustralia ofpassenger
motor vehicle components by[among other things] ...providing PMV producers, specialist
component producers andvehicle importers withtheopportunity toparticipate intheExport
Facilitation Scheme". Report ontheState oftheAutomotive Industry 1994, (69)(1995).)
6. Textiles, Clothing &Footwear Import Credit Scheme
Policy: ThisScheme enables exporters ofeligible textile, clothing andfootwear products to
earnimport credits which arebased ontheAustralian value added content oftheirexports.
Australian Customs 'Service, Textiles, Clothing &Footwear Import Credit Scheme:
Administrative Arrangements 1(Part 1.1)(March 1995).
7. International Trade Enhancement Scheme
Agency: Austrade.
Policy: Export; provides financial support ofupto$A5million fortheexpansion oftheexport
marketing activities ofAustralian firms. Loans onsixyearcontract withthefirstthreeinterest-
free. Thefixed interest rateisnegotiable atnomore than40percentoftheCommonwealth
Bank loan.
8. Export Access Programme
Agency: Austrade.
Policy:Export;providespracticalassistanceandtrainingprogrammestosmall-to-medium-sized
firms which require special helptodevelop offshore activities.
9. 150percentTaxConcession forR&D
Policy: R&D; allows companies incorporated inAustralia todeduct upto150percentof
eligible expenditure incurred onR&D activities, when lodging corporate taxreturn.