WORLD TRADE
ORGANIZATIONG/SCM/Q2/JPN/32
22 July 2002
(02-4028)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions Posed by the UNITED STATES
Regarding the New and Full Notification of JAPAN1
The following communication, dated 17 July 2002, has been received from the Permanent
Mission of the United States.
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I. INDUSTRY
Commission Fees Concerning R&D for New Fuel Oil (Industry, No. 31)
1. Could Japan please explain how many “private companies” receive funding under this
programme?
2. Which industry sectors received this assistance?
Subsidy for the Development of Information Technology which Create new Industry (Industry,
No. 44)
1. You stated that the objective of this programme is to “keep strengthening international
competitiveness of industry.”  Could you please expl ain further how the subsidy provided to eligible
companies achieves this objective?  Please also explain in detail the eligibility criteria under thisprogramme.
2. What types of activities are funded under this programme?  How is the level of subsidies
determined for individual recipients?
3. During the reporting period, please explain how many companies were aided under this
programme and the industry sectors they represent.
The Real World Computing (RWC) Programme (Industry, No. 46)
1. Please explain what is meant by “contract”, under form of subsidy.
2. Are the companies listed as having received assistance under this programme comprehensive
of all recipients?  If not, please explain how many companies were aided under this programme?
                                                     
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3. What types of activities are funded under this programme?  What stage of product
development if funded by this programme?
Subsidy of Expenses to Investigate the Development of Next Generation Airplanes (Industry,
No. 55)
1. Please explain what types of activities are funded by the subsidies provided under this
programme.
Assistance for Development of Civil Aircraft (Industry, No. 56)
1. Please explain what types of activities are funded by the subsidies provided under this
programme.
2. What are the terms for reimbursement under this programme, i.e., when does the subsidy have
to be repaid?  Have all of the funds been repaid by the recipient companies?
II. FINANCE
Tax Credit When Import of Products Increases (Finance, 62)
1. You have stated that the policy objective of this programme is “to promote of import of
product.”  Could you please explain how this pr ogramme promotes the importation of products into
Japan?
2. Is this subsidy available to all companies in Japan that experience import competition of more
than 5 per cent for a given product-line?
Special Depreciation on Certain Machinery Used  for High Technology Industries in the area of
accumulating High-Technology manufacturing Industry (“Technopolis”) (Finance, No. 64)
1. What is constitutes a “qualified high-technology” industry?  What are the criteria used to
decide how and to who aid under this programme is awarded?
2. Is this subsidy contingent upon location in a certain geographic region?
Additional Depreciation on Fishing Boat (Relat ed to the Plan for Structural Improvement of
Small and Medium Sized Fishing Enterprise under the Scheme of Extraordinary Law on the
Reconstruction of Fishing) (Finance, No. 68)
1. It is unclear which programme the “Plan for Structural Improvement of Small and Medium
Sized Fishing Enterprise under the Scheme of Extraordinary Law on the Reconstruction of Fishing”
refers to.  If this is an additional programme not already included in your notification, please report
the required notification details for this programme as well.
2. Please be more specific about the policy objective/purpose of this programme and,
particularly, what is meant by “structural improvement of fishing industry.”  To what extent does this
programme improve or increase the existing fishing fleet?
3. What is the “normal” annual depreciation allowed for fishing boats that do not qualify for this
programme?G/SCM/Q2/JPN/32
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4. Please explain which “certain fishing businesses” are eligible for the tax deferral under this
programme?
5. Is eligibility for this programme contingent on whether the boat is constructed or registered in
Japan?
Special Depreciation on the Drift for the Mining Industry (Finance, No 71)
1. Please provide further explanation of the policy objective of this programme and how the
subsidies help maintain production in the mining industry.  What level of production is maintained
through these subsidies and how?
Special Depreciation on the Payment to Specific Association (Finance, No. 72)
1. What types of new products or new technologies are developed for the shipbuilding industry
under this programme?
2. Please explain whether and to what extent the fisheries industry benefits from this
programme.
III. AGRICULTURAL, FORESTRY AND FISHERIES
General Question Related to Fisheries
Does Japan maintain any subsidy programmes, not already notified, administered by either
the central or sub-national governments, that benefit the fisheries sector in any of the following ways:
(a) Payments to promote the scrapping of existing fishing vessels, or the sale or
assignment to other uses of those vessels.
(b) Payments that directly or indirectly  promote the construction of new vessels.
(c) Payments targeting the construction of new, or the extension of existing, fishing port
facilities.
(d) Payments to fish marketing or promotional campaigns, or for market studies and
consumer surveys.
Fisheries Modernization Fund Interest Subsidy (Agr iculture, Forestry and Fisheries, No.  91)
1. Do the Government of Japan, or regional governments provide funding for this programme?
2. Is support provided through loans, or through grants?
3. To what extent do the subsidized interest rates provided by the government differ from
normal commercial interest rates?
4. Please explain further the purpose of this aid.  Provide specific examples of projects that have
benefited from this aid.G/SCM/Q2/JPN/32
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Fund for the Activities Implemented by Non-governmental Organizations for Promoting
Sustainable Fisheries (Agriculture, Forestry and Fisheries, No. 94)
1. Please discuss in more detail the purpose and objectives of this subsidy.
2. To what extent can proceeds under this programme be used to improve or expand existing
fisheries capacity?
3. Please provide more information on and examples of how this programme is used to promote
“distribution, processing and consumption of fishery products.”
IV. TRANSPORT
Grant for Promotion of Research and Development of Future Ships (Transport, No. 96)
1. Please discuss in more detail the purpose and objectives of this subsidy.
2. To what extent can proceeds under this programme be used to improve or expand existing
fisheries capacity?
3. Please provide more information on and examples of how this programme is used to promote
“distribution, processing and consumption of fishery products.”
4. During the notification period, what portion of  this subsidy went toward R&D for fisheries
vessels?
5. What stage of the research is funded under this programme?
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