WORLD TRADE G/SCM/14
31March 1998
ORGANIZATION(98-1272)
Committee onSubsidies
andCountervailing Measures
FORMAT FOR NOTIFICATIONS UNDER
ARTICLE 8.3OFTHE AGREEMENT ON
SUBSIDIES AND COUNTERVAILING MEASURES
Adopted bytheCommittee on22February 19951
Introduction
Thepurpose ofthisstandard format istoassist WTO Members inmaking notifications under
thefirstsentence ofArticle 8.3oftheAgreement onSubsidies andCountervailing Measures ("SCM
Agreement"). Inviewofthestatement inArticle 8.3thatnotifications under thisprovision mustbe
"sufficiently precise toenable other Members toevaluate theconsistency oftheprogramme withthe
conditions andcriteria provided forintherelevant provisions ofparagraph 2",thequestions inthis
standard format seekinformation relevant toanassessment ofnotified assistance inlightoftherelevant
legalrequirements inArticle 8.2anddonotseekinformation ontradeeffects ofsubsidies oronstatistics
onproduction, consumption, imports andexports. Itshould benoted inthisregard thatthestandard
format pertains onlytonotifications under thefirstsentence ofArticle 8.3andnottoannual updates
ofthese notifications referred tointhethirdsentence ofthatprovision.
Eachsection below includes several questions ofageneral nature onissues suchastheobjectives
ofaprogramme,thelevelofgovernmentinvolvedandtheinstitutionalframeworkfortheimplementation
oftheprogramme andthefinancing instruments usedintheprogramme. Inaddition, there aremore
specific questions designed togenerate information relevant toanevaluation ofwhether assistance under
aparticular programme meets theconditions ofArticle 8.2oftheSCM Agreement.
With regard tothequestions inthisstandard format onarrangements which mayexistfor
monitoring, auditing andevaluation ofassistance under anotified programme, itshould bestressed
thatthisstandard format doesnotaddtoordetract fromtherelevant legalrequirements inArticle 8.2
oftheSCM Agreement.
Asprovided infootnote 34toArticle 8.3,Members arenotrequired toprovide confidential
information, including confidential business information.
1Previously circulated inPC/IPL/11.G/SCM/14
Page2
I. Assistance forresearch activities
(a) Describe thepolicy objectives oftheassistance, including, ifapplicable, anysectoral objectives.
(b) Provide acopyofthelaw,regulation and/or other legalinstrument under which theassistance
isprovided. Ifthese documents arenotinaWTO language, provide atranslation inEnglish,
French orSpanish of(i)thespecific legalprovisions which arerelated tothesubsidies granted
forresearch activities, including theconditions under which those subsidies aregranted, and
(ii)thetableofcontents orchapter headings ofthelaw,regulation and/or otherlegalinstrument.
(c) Identify thelevel(s) ofgovernment involved intheprovision ofassistance forresearch activities
which isnotified andprovide adetailed description oftheinstitutional framework forthe
implementation oftheprogramme, including, ifapplicable, adescription oftheroleofnon-
governmental entities.
(d) Identify thespecific financing instrument(s) usedintheprogramme andprovide adetailed
description oftheincidence andduration ofassistance under eachinstrument.
(e) Identify theassisted research areas and,ifpossible, theassisted research projects. Provide
atechnical description ofthespecific goals oftheresearch activities andexplain howthese
activities fallwithin thedefinitions of"industrial research" and"pre-competitive development
activity" infootnotes 28and29oftheSCM Agreement.
(f) Inthecaseofindustrial research, totheextent practicable inthecontext ofanadvance
notification ofaprogramme, explain what newknowledge isbeing sought andwhat new
products, processes orservices orimprovements inexisting products, processes orservices
areintended tobedeveloped using thisknowledge. Totheextent possible describe theend
result oftheindustrial research.
(g) Inthecaseofpre-competitive development activity, totheextent practicable inthecontext
ofanadvance notification ofaprogramme, describe theendresult ofthepre-competitive
development activity andexplain howexisting products, production lines, manufacturing
processes, services orother on-going operations willbeaffected asaresult ofthisactivity.
(h) Ifaprototype isbeing developed, totheextent practicable inthecontext ofanadvance
notification ofaprogramme, describe howtheprototype willbedeveloped anddescribe what
modificationsareforeseenwhichwouldberequiredtomaketheprototypecapableofcommercial
use.
(i) Describetheindustriesandentities,totheextentknown,whoseresearchactivitieswillbeeligible
under theprogramme.
(j) Iftheprogramme covers research activities conducted onacontract basis, explain, totheextent
practicableinthecontextofanadvancenotificationofaprogramme,thenatureofthecontractual
arrangementsinquestion.Ifpossible,provideamodelcontract(inEnglish,FrenchorSpanish).
(k) Specify thetotalamount ofassistance budgeted under theprogramme.
(l) Provide abreakdown ofexpenditure byproject, or,ifnotpossible, byresearch area.G/SCM/14
Page3
(m) Specify theamounts ofassistance permitted under theprogramme for(a)industrial research
and(b)pre-competitive development activity.
(n) Explain howitisensured thattheassistance doesnotcover more than75percentofthecosts
ofindustrial research, 50percentofthecosts ofpre-competitive development activity or,in
situations referred toinfootnote 30,62.5 percentofbothofthese costs. Describe the
methodology usedincalculating these costs.
(o) Describe thespecific types ofcostscovered bytheassistance. Explain howitisensured that
theassistance islimited exclusively tothecosts mentioned initems (i)-(v) ofArticle 8.2(a)
oftheSCM Agreement. Describe themethodology usedincalculating these costs.
(p) Describe anyarrangements which mayexistformonitoring, auditing andevaluation.
II. Assistance todisadvantaged regions within theterritory ofaMember
(a) Describe thegeneral framework ofregional development, asprovided forinfootnote 31,
pursuant towhich theassistance isgranted. Inthisconnection, explain howtheregional
development policy ofwhich theprogramme forms partisinternally consistent andgenerally
applicable anddescribe howtheprogramme isintended tocontribute toregional development.
(b) Provide acopyofthelaw,regulation and/or other legalinstrument under which theassistance
isprovided. Ifthese documents arenotinaWTO language, provide atranslation inEnglish,
French orSpanish of(i)thespecific legalprovisions which arerelated tothesubsidies granted
todisadvantaged regions, including theconditions under which those subsidies aregranted,
and(ii)thetable ofcontents orchapter headings ofthelaw,regulation and/or other legal
instrument.
(c) Identify thelevel(s) ofgovernment involved intheimplementation oftheregional assistance
programme andprovide adetailed description oftheinstitutional framework forthe
implementation oftheprogramme, including, ifapplicable, adescription oftheroleofnon-
governmental entities.
(d) Identify theregions eligible forassistance under theprogramme. Explain howthese regions
arecontiguous geographical areas withadefinable economic andadministrative identity.
(e) Identify thecriteria onthebasisofwhich theregions havebeendesignated asdisadvantaged.
Provide acopyoftherelevant law,regulation orother official document inwhich suchcriteria
arespelled out.
(f) Describethemeasurementsofeconomicdevelopmentwhichhavebeenincludedinthesecriteria.
Explain howanycomposite measurement ofeconomic development wasdetermined and
calculated. Provide foraperiod ofthree years therelevant statistical datafortheregion and
fortheterritory asawhole oftheMember usedindetermining thataregion isdisadvantaged.
(g) Identify thespecific financing instrument(s) usedintheprogramme andprovide adetailed
description oftheincidence andduration ofassistance under eachinstrument.
(h) Describe thecriteria fordetermining theeligibility ofthebeneficiaries oftheassistance and
theprocedures regarding applications forassistance under theprogramme. Provide (inEnglish,
French orSpanish) acopyofastandard application form orinstructions, ifany.G/SCM/14
Page4
(i) Specify thetotalamount ofassistance budgeted under theprogramme. Describe thespecific
types ofcosts covered bytheassistance.
(j) Specify theceilings, expressed interms ofinvestment costs orcosts ofjobcreation, onthe
amount ofassistance toindividual projects. Explain themethodology usedforcalculating the
investment costs andthecosts ofjobcreation. Explain howsuch ceilings have been
differentiated according tothedifferent levels ofdevelopment oftheassisted regions.
(k) Describe anyprovisions which mayexistunder theprogramme toavoid thepredominant use
ofasubsidy by,orthegranting ofdisproportionately large amounts ofsubsidy to,certain
enterprises asprovided forinArticle 2.
(l) Explain howitisensured thattheamount oftheassistance doesnotexceed theceilings.
(m) Describe anyarrangements which mayexistformonitoring, auditing andevaluation.
III. Assistance topromote adaptation ofexisting facilities tonewenvironmental requirements
(a) Describethepolicyobjectivesoftheprogramme,including,ifapplicable,anysectoralobjectives.
(b) Provide acopyofthelaw,regulation and/or other legalinstrument under which theassistance
isgranted. Ifthese documents arenotinaWTO language, provide atranslation inEnglish,
French orSpanish of(i)thespecific legalprovisions which arerelated tothesubsidies granted
topromote adaptation ofexisting facilities tonewenvironmental requirements, including the
conditions under which those subsidies aregranted, and(ii)thetableofcontents orchapter
headings ofthelaw,regulation and/or other legalinstrument.
(c) Identifythelevel(s)ofgovernmentinvolvedintheimplementationoftheenvironmentalassistance
programme andprovide adetailed description oftheinstitutional framework forthe
implementation oftheprogramme, including, ifapplicable, adescription oftheroleofnon-
governmental entities.
(d) Explain howtheenvironmental requirements inquestion are"new" requirements. Provide
acopyofthelaworregulation which imposes thenewenvironmental requirements. Explain
which nuisances andpollutants areintended tobereduced bythese requirements. Identify
thelevelofgovernment atwhich these requirements areimposed.
(e) Describe thetimeframe fortheapplication ofthenewenvironmental requirements toexisting
facilities.
(f) Totheextent practicable inthecontext ofanadvance notification ofaprogramme, provide
atechnical description oftheadaptation ofexisting facilities necessary tomeet thenew
environmental requirements andidentify thosefacilities. Explain howtheserequirements would
result inareduction ofthespecific nuisances orpollutants andexplain howtheserequirements
result ingreater constraints andfinancial burdens onfirms.
(g) Identify thespecific financing instrument(s) usedintheprogramme andprovide adetailed
description oftheincidence andduration ofassistance under eachinstrument.
(h) Explain whether theassistance isprovided onthetotalcostofthereduction ofthenuisances
orpollutantsoronanindividualphaseofimplementationofthenewenvironmentalrequirements.G/SCM/14
Page5
Identify anylegalprovision and/or provide other relevant information which explains howthe
onetime, non-recurring condition ismet.
(i) Specify thetotalamount ofassistance budgeted under theprogramme.
(j) Describe thecriteria fordetermining theeligibility ofbeneficiaries oftheenvironmental
assistance andtheprocedures regarding applications forenvironmental assistance. Provide
(inEnglish, French orSpanish )acopyofastandard application formorinstructions, ifany.
(k) Explain howitisensured thattheassistance islimited totheadaptation ofexisting facilities.
Describe themethodology usedforcalculating thecosts ofadaptation ofexisting facilities to
thenewenvironmental requirements. Describe thespecific types ofcosts covered bythe
assistance. Explain howitisensured thattheassistance doesnotcover more than20percent
ofthecosts ofthisadaptation.
(l) Explain howitisensured thattheassistance isdirectly linked andproportionate toafirm's
planned reduction ofnuisances andpollution andthattheassistance does notcover any
manufacturing costsavings which maybeachieved.
(m) Describe anyarrangements which mayexistformonitoring, auditing andevaluation.
__________