WORLD TRADE
ORGANIZATIONG/SCM/N/71/BOL
10 October 2002
(02-5450)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
New and Full Notifications Under Article 26.1 of the GATT 1994 and Article 25
of the Agreement on Subsidies and Countervailing Measures
BOLIVIA
The following communication, dated 27 September 2002, has been received from the
Permanent Mission of Bolivia.
_______________
The Permanent Mission of the Republic of Bolivia to the United Nations Office and other
International Organizations in Geneva presents its compliments to the Committee on Subsidies and
Countervailing Measures of the World Trade Organization and has the pleasure to forward herewith
the notification of the Free-Zone Regime  and the Temporary Import Regime for Export
Promotion  (RITEX) pursuant to Article 25 of the Agreement on Subsidies and Countervailing
Measures and Article 26 of the GATT 1994.G/SCM/N/71/BOL
Page 2
Bolivia is submitting this notification within the framework of paragraph 6(b) of document
G/SCM/W/471/Rev.1 dated 13 Nove mber 2001 and, for purposes of transparency, pursuant to
Article 25 of the Agreement on Subsidies and Countervailing Measures and Article 26 of the GATT
1994 and the provisions of document  G/SCM/N/74/BOL of 10 January 2002.
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy.
• Free zone regime;
• Temporary Import Regime for Export Promotion, whose name was changed to
"Temporary Admission Regime for Inward Processing - RITEX" by Law No. 1990 of
28 July 1999, the General Customs Law.
2. Period covered by the notification.
January to December 2002
3. Policy objective and/or purpose of the subsidy.
• To eliminate or mitigate factors which distort, delay or hinder foreign trade
transactions;
• to facilitate the implementation of direct or intermodal transport modalities from
countries of origin in order to simplify brokerage processes relating to the movementof goods;
• to give trade and the production sector the possibility of immediate access to
imported and re-exported goods, thereby alleviating their financial costs and
expediting the handling of their requirements and supply of the domestic and foreignmarkets;
• to redirect import trade flows;
• to promote the creation of related services;
• these objectives must be compatible within the framework of the Integration
Agreements to which Bolivia is a party.
4. Background and authority for the subsidy (including identification of the legislation
under which it is granted).
• Developing the country's production capacity, creating jobs and raising the standard
of living;
• Law No. 1489 of 16 April 1993 on the Development and Tax Treatment of Exports;
• Law No. 1990 of 28 July 1999, General Customs Law;
• Regulations:  Supreme Decrees No. 22410 of 11 January 1990, No. 22526 of
13 June 1999, No. 23565 of 22 July 1999, and Supreme Decree No. 25706 of14 March 2000.G/SCM/N/71/BOL
Page 3
5. Form of the subsidy
• Free zones  are areas on the national territory that operate on the principle of customs
and fiscal segregation.  Under this principle, the operations of free zones are exemptfrom taxes on sales.  Similarly, import duties are waived in free zones.
• The Temporary Import Regime for Export Promotion (RITEX)  allows for the
temporary admission of goods to the national territory with a view to their subsequent
exportation after processing.  Import duties are waived under this mechanism.
6. To whom and how the subsidy is provided
Under the legal regulations cited in section 4 a bove, all industrial sectors are covered by the
regulations mentioned.  The mechanism entails the waiver of taxes on sales and of import
duties.
7. Subsidy per unit
No information is available.
8. Duration of the subsidy and/or any other ti me-limits attached to it, including date of
inception/commencement.
Under the Political Constitution of the State, free zone concessions may be granted for up to
40 years.
9. Statistical data permitting an assessment of the trade effects of the subsidy.
The statistics for 2002 activities are not available.
__________