WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.11
2 November 1999
(99-4740)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of the Netherlands.
______________G/SCM/N/48/EEC/Add.11
Page 2
NETHERLANDS
TABLE OF CONTENTS
Page
1. Law on environmental taxes - Regulatory energy tax.......................................................3
2. Law on environmental taxes - tax on groundwater ...........................................................4
3. Law on environmental taxes - tax on waste........................................................................5
4. BSE (Decision on subsidies to energy programmes)..........................................................6
5. Regulation to stimulate the use of modes of urban transport, both passengers and
goods, which are less harmful to the environment (economical, silent and cleantechniques).................................................................................................................... .........7
6. Act on taxes with an environmental base – Tax on groundwater.....................................8
7. Act on Taxes with an Environmental Base - Tax on waste ...............................................9
8. Regulatory energy tax........................................................................................................ ...9
9. Law on reduction of wages tax. Reduction for encouraging Research and
Development.................................................................................................................... ....10
10. Subsidy Regulation for Regional Investment Projects 1998 ...........................................12
11. Subsidy scheme for environmental technology ................................................................13
12. Report 1998 T.O.K. (Decision Technical Development Loans) ......................................13
13. Report 1998 E.E.T. (Subsidy Scheme  Economy, Ecology and Technology...................14
14. Report 1998 ‘Besluit kredieten elektr onische-diensten-ontwikkeling’ (Kredo)
(credit scheme for the developmen t of electronic  services) .............................................15
15. WTO-report 1998 Milieu referentie Projecten .................................................................16
16. WTO-report 1998 EMA Projecten....................................................................................16
17. Report  1998 MPO (Credit scheme for environment orientated product
developm ent) ................................................................................................................... ....17
18. Report 1998 Subsidieregeling Haalbaarheidsprojecten MKB (subsidy scheme
feasibility projects for small a nd medium sized enterprises)..........................................18
19. Report 1998 (B.I.T. ) (Company-oriented in ternational  technology programmes).....19
20. Report 1998 Subsidieregeling maritiem onderzoek (subsidy scheme maritime
research) ...................................................................................................................... ........20
21. Report 1998: Besluit subsidies zeescheep snieuwbouw 1994 (Decision order-related
subsidies for sh ipbuilding) .................................................................................................20
22. Report 1998 V.T.P. (Aircraft Technology Programme)..................................................21
23. Report 1998 Besluit subsidies bedrijfsgerichte technologische samenwerkings-
projecten (BTS) (Decision Colloborative Industrial Technology Projects) ...................22
24. Report 1998 Clusterprojecten............................................................................................2225. Report 1998 Philips- Clusterpro jecten...............................................................................23
26. Report 1998 Philips ECODESIGN....................................................................................24
27. Report 1998 Eureka Project ADTT ..................................................................................25
28. Report 1998 Eureka Project COMMEND........................................................................26
29. Report 1998 Eureka Programme MEDEA.......................................................................26G/SCM/N/48/EEC/Add.11
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1. Law on environmental taxes - Regulatory energy tax
1. Title
Law on environmental taxes - Regulatory energy tax.
The law contains special provisions for renewable energy, such as wind energy, solar energy,
small scale waterpower and biomass.
2. Period covered
1998
3. Policy objective
Motivation for the special provisions for renewable energy is that these forms of energy
should be promoted as much as possible in the interests of the environment.
4. Background and authority for the subsidy
The legal provisions are laid down in chapter Va of the Law on environmental taxes by Act of
13 December 1995, Law Gazette No. 662.
5 Form of the subsidy
Tax concessions.
6. To whom and how the subsidy is provided
The tax on the delivery of electricity produced from renewable sources of energy is not due to
the State provided that the amount of the tax is passed on to the producer.
7. Subsidy per unit/the total amount or the annual amount budgeted for that subsidy
The rate for electricity is f. 0.0295 per kWh. In 1998 about 250 GWh electricity has been
traded as electricity from renewable sources. The amount involved in the tax exemption and the
amount involved in the tax reduction are both estimated at f. 7 mln.
The rate for natural gas is f. 0.0953 per m3 (1998).
8. Duration of the subsidy
Permanent.
9. Statistical data
Not available.G/SCM/N/48/EEC/Add.11
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2. Law on environmental taxes - tax on groundwater
1. Title
Law on environmental taxes - tax on groundwater.
The tax is levied from the proprietor of the establishment extracting groundwater, for instance
drinking water companies, farmers and industries.
The law contains an exemption the use of rinsing water.
2. Period
1998
3. Policy objective
The exemption for the use of self extracted groundwater to rinse reusable packaging like
deposit-return bottles is motivated by environmental reasons.
4. Background
Law on environmental taxes, as last amended on 17-12-1998, Law Gazette 725.
5. Form of the subsidy
Tax concession in the form of tax exemption.
6. To whom and how the subsidy is provided
The subsidy is provided to the drinking water companies, farmers and industries that extract
groundwater for the purposes mentioned above.
7. Subsidy per unit.
In 1998 about 19 000 m3 groundwater was used for rinsing purposes. Considering a rate of
f. 0.34 per m3, this implies a tax loss of about f. 7,000.
8. Duration of the subsidy
Permanent.
9. Statistical data
Not available.G/SCM/N/48/EEC/Add.11
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3. Law on environmental taxes - tax on waste
1. Title
Law on environmental taxes - tax on waste.
The tax in levied on waste which is delivered to dumps and incinerators and contains an
exemption for de-inking residue (landfilling).
2. Period
1998
3. Purpose
The de-inking residue is exempted because taxing this waste would make recycling more
expensive than the alternative of using primary material. The exemption for waste from plastic
recycling was ended on 31-12-1997.
4. Background
Law on environmental taxes, as last amended on 17-12-1998, Law Gazette 725.
5. Form of the subsidy
Tax exemption.
6. To whom and how the subsidy is provided
The subsidy is provided to the proprietors of establishments where waste is delivered for
processing for the purposes mentioned above.
7. Subsidy per unit
The rate is f. 64.20 per 1,000 kilo for landfilling of combustible waste and f. 29.20 per 1,000
kilo for other waste. For incineration a zero rate is applicable. About 11,000 tons de-inking residue
was delivered at a landfill, this implies a tax loss of about f. 0.32 mln.
8. Duration of the subsidy
Permanent.
9. Statistical data
Not available.G/SCM/N/48/EEC/Add.11
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4. BSE (Decision on subsidies to energy programmes)
1. Title
Besluit subsidies energieprogramma’s (BSE) (Decision on subsidies to energy programmes).
2. Period
1998
3. Policy objective
Promoting the rational use of energy and the use of renewable energy.
4. Background and authority for the subsidy
Decision of 16 March 1994, Staatsblad 1994,  204;Decisions of  13 March 1997,
Staatscourant 1997, 52; 3 July 1997, Staatscourant 1997, 126; and 11 December 1997, Staatscourant
1997, 242.
5. Form of subsidy
Grant.
6. To whom and how the subsidy is provided
To enterprises and non-profit organizations for R,D & D and dissemination contribute to the
objectives of one of 20-odd energy programmes.
Research or development projects: up to 50 per cent of project costs (SME’s and non-profit
organizations up to 60 per cent).
Demonstration projects: up to 40 per cent of project costs.
Dissemination projects: up to 25 per cent of project costs.
Actual percentages depend on the project’s contribution to the objectives of an energy
programme and the benefits of the results of the project to the recipient of the subsidy.
7. Amount of subsidy
Total budget f. 90.4 mln.  Subsidy per project: in the average f. 130,000.
8. Duration
The regulation came into effect in 1994.  No fixed expiration date.
9. Statistical data
The subsidy has no consequences for international trade, so no statistics can be given.G/SCM/N/48/EEC/Add.11
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5. Regulation to stimulate the use of modes of urban transport, both passengers and goods,
which are less harmful to the environment (economical, silent and clean techniques).
1. Title
Regulation to stimulate the use of modes of urban transport, both passengers and goods,
which are less harmful to the environment (economical, silent and clean techniques).
2. Period
Indefinite.
3. Purpose
The purpose of the regulation is to stimulate research on, and development and application of
transportation- and traffic techniques in order to contain air pollution in the urban environment caused
by traffic.  The projects to be financed under the regulation vary from operational experiments with
busses driven by natural gas or electrical motors to integration of (small) vans in freight transportationlines to urban areas.
4. Background
Policy rule based on the national budget.
5. Form of the subsidy
Subsidy.
6. To whom and how the subsidy is provided
The subsidy is provided to research institutes, municipal enterprises (f.i. cleansing enterprises,
maintenance units) and city transport operators. These target groups are able to submit an application
for projects in order to be considered for a subsidy.   The applications will be considered according to
the principle of first-come, first-served. Projects are to be judged on the basis of achieving the
objective mentioned under 2.
7. Subsidy
The annual budget is spread over different types of projects. The subsidy amounts to 90 per
cent of the costs, to a maximum of f. 200,000,- for f easibility research and transfer of knowledge; to
50 per cent of the costs, to a maximum of f. 1,500,000,- for research and development projects, to 25
per cent of the costs, to a maximum of f. 1,500,000,- for practical experiments and demonstration
projects.
The amount spent in 1997 was approximately f. 5,000,000,-, in 1998 f. 4,000,000.
8. Duration of the subsidy
1995.  The duration of the regulation is indefinite.G/SCM/N/48/EEC/Add.11
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9. Trade effects of the subsidy
Specific trade effects are not calculated because of the diverse pattern of spending (reference
to answer 7.)
6. Act on taxes with an environmental base – Tax on groundwater
1. Title
The tax on groundwater contains an exemption from the tax on the extraction of groundwater
used to rinse bottles and other types of reusable packaging.  If drinking water produced from
groundwater is used, a return is possible on request.
2. Period covered
1995-1998.
3. Policy objective
This exemption and rebate prevent that a negative signal is given regarding reusables since
this type of packaging is preferred to disposable packaging from an environmental point of view.
4. Background and authority for the subsidy
The legal provisions are laid down in chapter 11 of the Law on taxes with an environmental
base, Act of 24 December 1994, Bulletin of Ads No. 923.
5. Form of the subsidy
Tax concession, i.e. exemption or return of tax.
6. To whom and how the subsidy is provided
To the rinsers of reusable packaging, by exemption of the tax or by refund on request.
7. Subsidy per unit/the total amount of the annual amount budgeted for that subsidy
The rate is f. 0.34 per m3 for drinking companies and f. 0.17 per m3 for other companies.  The
total amount yearly involved is about f. 560,000.
8. Duration of the subsidy
1998.
9. Statistical data
Not available.G/SCM/N/48/EEC/Add.11
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7. Act on Taxes with an Environmental Base - Tax on waste
1. Title
The tax on waste contains a facility in the form of a refund for de-inking residue and plastic
recycling waste.
2. Period covered
1995-1998.
3 Policy objective
Motivation of the refund is that taxing this kind of waste would make paper and plastic
recycling more expensive than the alternative, thus stimulating the use of primary material.
4. Background and authority for the subsidy
The legal provisions are laid down in chapter III of the Law on taxes with an environmental
base, Act of 24 December 1994. Bulletin of Acts No. 923.
5. Form of the subsidy
Tax concession, in the form of return of the tax.
6. To whom and how the subsidy is provided
The tax is refunded on request to the suppliers (to the waste dump) of de-inking residue and
plastic recycling waste.
7. Subsidy per unit/the total amount or the annual amount budgeted for that subsidy
The rate of the tax on waste is f. 29.20 per ton. The total amount involved is about f. 2.5 mil.
for de-inking residue and f. 200,000 for plastic recycling waste.
8. Duration of the subsidy
1995-1998, the provision for de-inking residue is extended until 1 January 2001.
9. Statistical data
Not-available.
8. Regulatory energy tax
1. Title
Regulatory energy tax.
There are special provisions for renewable sources of energy, such as wind energy, solar
energy, small scale waterpower and biomass.  The greenhouse horticulture sector has a special zero-
rate on natural gas used in greenhouses.G/SCM/N/48/EEC/Add.11
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2. Period covered
1996-1998.
3. Policy objective
Motivation for the special provisions for renewable sources of energy is that these forms of
energy should be promoted as much as possible in the interests of the environment.  The greenhouse
horticulture sector receives no special treatment regarding the tax on electricity.
4. Background and authority for the subsidy
The legal provisions are laid down in chapter V a of the Law on taxes with an environmental
base by Act of 13 December 1995, Bulletin of Acts No. 662.
5 Form of the subsidy
Tax concessions.
6. To whom and how the subsidy is provided
The tax due for the delivery of electricity produced from renewable sources is not to be paid
to the State if the amount of the tax is given to the producer of this electricity.  The zero rate for
natural gas for the greenhouse sector is applicable when a statement is handed in that the gas is used
for heating purposes in the greenhouses.
7. Subsidy per unit/the total amount or the annual amount budgeted for that subsidy
The rate for electricity is f. 0.0295 per kWh, the amount involved is estimated at f. 30 mil. for
the tax on electricity from renewable sources.
The rate for natural gas is f. 0.032 per m3 (1996) and f. 0.064 per m3 (1997).
8. Duration of the subsidy
Permanent.
9. Statistical data
Not available.
9. Law on reduction of wages tax. Reduction for encouraging Research and Development
1. Title
Law on reduction of wages tax. Reduction for encouraging Research and Development.
The amount of wages tax that has to be transferred by the employer, may be reduced by a
certain percentage of the amount of wages directly related to research and development activities.
This contribution amounts to 40 per cent of the total R&D wages as far as the first FL 150,000 is
concerned and for the remaining part 17.5 per cent of the total R&D wages. Per tax entity theG/SCM/N/48/EEC/Add.11
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contribution will be Fl 15 million at most. In case the entrepreneur himself, whether or not he is an
employer, performs R&D activities, he is granted under certain conditions a deduction of taxable
income that amounts FL 10,402.
2. Period
1998.
3. Purpose
The reduction for R&D is part of government  policy aiming at the stimulation of R&D-
activities and organizations in the Netherlands. An increase of R&D activities is favourable foreconomic development.
4. Background
The law on the support of research and development of 28 April, Bulletin of Acts no. 312.
Renewed in the law on reduction of wages tax of 15 December 1995, Bulletin of Acts no. 635.
5. Form of the subsidy
Tax concession, in the form of reduction of tax.
6. To whom and how the subsidy is provided.
Enterprises that perform R&D-activities, and institutions and organizations not considered
enterprises for income tax or corporation tax, carrying out R&D-activities in assignment ofenterprises. The scheme is also applicable to Netherlands branches of foreign enterprises and
subsidiaries of foreign companies established in the Netherlands. The reduction does not influence the
amount of income tax due by the employee.
7. Subsidy
Cost in terms of revenue foregone per year:1997:  FL 500 million (on a cash basis, incl uding FL 13 million implementing costs).
1998:  no data available yet.
8. Duration of the subsidy
The law commenced as from 13 May 1994, there is no sunset clause setting a time limit in the
application of the scheme.
9 Statistical data
Number of entrepreneurs and companies, which have made use of this scheme in 1997:
10,600.  No data available yet for 1998.G/SCM/N/48/EEC/Add.11
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10. Subsidy Regulation for Regional Investment Projects 1998
1. Title of the subsidy
Subsidy Regulation for Regional Investment Projects 1998.
2. Period covered by the notification
1997-1999 concerning Northern-Netherlands, Twente and some communities in Southern-
Limburg.
3. Policy objective and/or purpose of the subsidy
The subsidy is intended to improve the economic  structure in the economically weaker parts
of the Netherlands The subsidy is provided to compan ies that invest in these regions or increase their
production capacity and/or employment.
4. Background and authority for the subsidy
“Nota ruimte voor regio’s, het ruimtelijk economisch beleid tot 2000”.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided.
The subsidy is provided to entrepreneurs, both industrial and services. Subsidy is committed
on request. This request is to be judged for different criteria.
The amount is fluctuating per unit. That depends on the amount of the investment, kind of
project and area of set up/extension of the entrepreneur.
7. Amount of subsidy
The total amount budgeted in 1998 f. 47.89 mln.
8. Duration of the subsidy
1999 .
9. Statistical data
Employment:
1996:    639 jobs
1997: 1,611 jobs
1998: 1,835 jobsG/SCM/N/48/EEC/Add.11
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11. Subsidy scheme for environmental technology
1. Title of the subsidy programme:
Subsidy scheme for environmental technology (Subsidiebesluit milieu gerichte technologie);
This Subsidy scheme has also been notified last year.
2. Period covered by the notification
1994-1998.
3. Policy objective and/or purpose of the subsidy:
 The scheme is designed to encourage the development and wider application of new advanced
environmental technology.
4. Background and authority for the subsidy (including of the legislation under which it is
granted):Ministry of Housing, Spatial Planning a nd the Environment, Decree "Subsidiebesluit
milieugerichte technologie", official journal latest amendment, 1998 nr. 99.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
The subsidy is granted to organizations and enterprises for the development and fist
application of new advanced environmental technology; the subsidy is granted via the budgets for
specific programmes that are published every year in the official journal 'staatscourant' (Scrt for
short).  The total amount or the annual amount budgeted for that subsidy: budget for 1998
f. 28,200,000 of which is spent f. 24,558,917.
Duration of the subsidy and/or any other time limit s attached to it: until Dec. 1998.  Statistical
data permitting an assessment of the trade effects of the subsidy: The European Commission has
examined the subsidy scheme "Bijdragenbesluit milieugerichte technology" (BMT, which was
renamed Subsidiebesluit Milieugerichte Technologie, SMT for short, in 1998) in the light of EC-rules
on state aid. The present scheme has been approved by decision of 14 July 1994, nr. SG (94)
D/10080); a report on the 1998 application of the scheme is at present being prepared by the Ministryfor Housing, Spatial Planning and the Environment to be sent to the European Commission.
WTO Subsidy notifications in the field of Research and development
12. Report 1998 T.O.K. (Decision Technical Development Loans)
1. Title
Besluit Technische Ontwikkelingskredieten (TOK)
(Decision Technical Development Loans)G/SCM/N/48/EEC/Add.11
Page 14
2. Form of the subsidy
Subsidy is given as a loan, that usually covers 40 per cent of the total cost of the project. The
interest rate is based on market interest rates, and for 1998 it was fixed on 6.05 per cent. Repayment is
calculated as a fixed percentage of any sales of products related to the R&D-project.
3. Cost of the subsidy
Budget 1998:  f. 80.5  mln.
4. Policy goals
Goal of the scheme is to facilitate projects of product development with high technical risk.
Because of these risks, firms usually have difficulty in financing the project by own means.
5. Duration of the subsidy
Unlimited.
6. Consequences for international trade
The subsidy-scheme has no direct consequences for international trade.
7. Legal basis
Decision of 2 June 1994, published in Staatscourant 1994, 435, and executive decision of
19 December 1996, Staatscourant 1996, 248.
13. Report 1998 E.E.T. (Subsidy Sche me Economy, Ecology and Technology
1. Title
Subsidy scheme Economy, Ecology and Technology
2. Form of the Subsidy
Grant.  The aid intensity is:
62.5 per cent for fundamental research
40 per cent for industrial research
25 per cent for pre-competitive development.
The maximum subsidy has been set at f. 10 million.
3. Budget
For one call for tender in 1998: f. 47.9 million.
4. Policy goals
Goal of the subsidy is to stimulate the development of technological breakthroughs from
which a significant positive impact on the environment is expected. The environmental goals are:G/SCM/N/48/EEC/Add.11
Page 15
- a sustainable design of industrial production processes;
- full integration of environmental aspects in the development of new products;
- a substantial reduction of emissions and energy use in the transport and traffic sector
- a substantial increase in the recycling of renewable resources- a substantial increase in the use of sustainable energy sources
5. Duration
The scheme has an unlimited duration.
6. Consequences for international trade
The subsidy is awarded to fundamental, industrial and pre-competitive R&D, which has no
direct effects on trade flows.
7. Legal basis
Decision of 10 May 1996, Staatscourant 1996, 91.
14. Report 1998 ‘Besluit kredieten elektronis che-diensten-ontwikkeling’ (Kredo) (credit
scheme for the development of electronic services)
1. Title
Besluit kredieten elektronische diensten-ontwikkeling (credit-scheme for the development of
electronic services).
2. Form of Subsidy
A loan of up to 40 per cent of the cost (excluding cost of materials or machinery).  The
maximum loans has been fixed at DFL 4 million.
3. Cost of the subsidy
In 1998 f. 41,427,207 was available. No projects have started yet.
4. Policy goals
Goal of the subsidy is to stimulate the materialisation of the ‘electronic high-way’ by
encouraging the development of electronic services.
5. Duration
The scheme started in 1996 and will last a few years.
6. Consequences for international trade
The subsidy is awarded to precompetitive R&D, which has no direct effects on trade flows.G/SCM/N/48/EEC/Add.11
Page 16
7. Legal basis
Decision of 14 November 1997, Staatsblad 1997, 554.
15. WTO-report 1998 Milieureferentie Projecten
1. Title
Subsidieregeling referentieprojecten milieutechnologie.
2. Form of the subsidy
A subsidy is provided for the introduction and spreading of new environmental technologies,
to small and medium-sized enterprises.
The subsidy amounts to  25 per cent in the case of a first application of the technology, and to
50 per cent in the case of measurement-programmes.
3. Subsidy per unity
Each project for first applications can be awarded f. 500,000 at most. The budget for 1998
was f. 4 million (f. 3 million for projects of first applications, and f. 1.0 million for measurement-projects).
4. Policy goals
Goal is to encourage small and medium-sized enterprises to apply new environmental
technologies that contribute to the reduction of environmental cost of production.
5. Duration of the subsidy
For the current scheme, there was only a budget for 1998. The scheme will be extended for
1999.
6. Consequences for international trade
The subsidy-regulation has no consequences for international trade.
7. Legal basis
Decision 18 May 1998, Staatscourant 1998 nr. 95.
16. WTO-report 1998 EMA Projecten
1. Title
Subsidieregeling energie-efficiency- en milieuadviezen Schoner Produceren.G/SCM/N/48/EEC/Add.11
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2. Form of the subsidy
A subsidy is provided for surveying the energy-efficiency or the environmental pollution of
buildings and/or industrial processes, to small and medium-sized enterprises and non-profit
organizations.
The subsidy amounts to 50 per cent.
3. Subsidy per unity
Each project for one of the surveys can be awarded f. 7,500 at most or in case of a
combination of the two surveys in one f. 15,000 at the most. The budget for 1998 was f. 2.3 million.
4. Policy goals
Goal is to encourage small and medium-sized enterprises and non profit organizations to list
which improvements (against what costs) are possible on energy-efficiency and/or environment ofbuildings, products, installations and processes or parts of that.
5. Duration of the subsidy
For the current scheme, there was only a budget for 1998. The scheme will be extended for
1999.
6. Consequences for international trade
The subsidy-regulation has no consequences for international trade.
7. Legal basis
Decision of 10 September 1998, Staatscourant 1998 nr 173.
17. Report  1998 MPO (Credit scheme for envi ronment orientated product development)
1. Title
Kredietregeling milieugerichte produktontwikkeling (credit scheme for environment-
orientated product development).
2. Form of the subsidy
Subsidy is given as a loan, that covers 40 per cent of the total cost of the project at maximum.
Credit is only available for small and medium-sized companies (according to the EC-definition).
The maximum loan is fixed at f. 0.5 million.
3. Cost of the subsidy
Budget 1998:  f. 4,053,000.G/SCM/N/48/EEC/Add.11
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4. Policy goals
Goal of the scheme is to facilitate projects of product development with technical risk, in
order to achieve considerable reduction in the envi ronmental impact and to stimulate the use of such
technology in product development.
A loan can be given only if the company is not able to finance the project by own means.
5. Duration of the subsidy
The scheme is extended until 2000 (8675 / 21-10-1998).
6. Consequences for international trade
The subsidy is awarded to industrial and precompetitive R&D, which has no direct effects on
trade flows.
7. Legal basis
Decision of 21 June 1996, Staatscourant 1996, 117. Revised on 13 March 1997, Staatscourant
1997, 52.
18. Report 1998 Subsidieregeling Haalbaarheidsprojecten MKB (subsidy scheme feasibility
projects for small and medium sized enterprises)
1. Title
Subsidieregeling haalbaarheidsprojecten MKB (subsidy scheme feasibility projects for small
and medium sized enterprises).
2. Form of the subsidy
Grant: 50 per cent of the project costs with a maximum of f. 25,000. Only firms with
250 employees or less can apply for the subsidy.
3. Cost of the subsidy
In 1998 f. 10 million is available.
4. Policy goals
Goal of the subsidy is to encourage SMEs to use and implement new technologies.
5. Duration
The duration of the scheme is unlimited.
6. Consequences for international trade
The subsidy is awarded to industrial and precompetitive R&D, which has no direct effects on
trade flows.G/SCM/N/48/EEC/Add.11
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7. Legal basis
Decision of 21 December 1995, Staatscourant 1995, 248, and 23 December 1996,
Staatscourant 1996, 248.
19. Report 1998 (B.I.T. ) (Company-oriented international  technology programmes)
1. Title
“Bedrijfsgerichte Internationale technologieprogramma’s (BIT)(Company-oriented
international  technology programmes)”. There are three programmes under the BIT:
- The EUREKA-programme;
- The Programme for technological cooperation with emerging markets (India,  Indonesia
and South-Africa at the moment);
- The Programme for technological cooperation with industrialised countries (Japan, the
US and Israel).
2. Form of the subsidy
Subsidy is given as a grant of 37.5 per cent of the cost of the project.
3. Subsidy
Budget for Eureka-projects: f. 18 million
Budget for projects with emerging markets: f. 7 million
Budget for projects with industrialised countries: f. 7 million.
4. Policy goals
Goal is to encourage firms to realise R& D-projects with international partners.
5. Duration
Unlimited.
6. Consequences for international trade
The subsidy is awarded to fundamental and industrial R&D, which has no direct effects on
trade flows.
7. Legal basis
Decision of 5 July 1997, published in the Staatscourant 331, 1997.  Executive Decision BIT
of 24 July 1997, published in the Staatscourant 139.  The BIT-decision replaced the BTIP-decision
and the “subsidieregeling technologische samenwerking met Indonesië”.G/SCM/N/48/EEC/Add.11
Page 20
20. Report 1998 Subsidieregeling maritiem onderzoek (subsidy scheme maritime research)
1. Title
Subsidieregeling maritiem onderzoek (subsidy scheme maritime research).
2. Form of the subsidy
Grant:
- for feasibility studies 50 per cent of the costs, with a maximum of f. 100,000;
- for R&D-projects:
  50 per cent of the costs of industrial research,
  37.5 per cent of the costs of industrial research and precompetitive development  (when the first category accounts for at least 50 per cent of the cost),
  25 per cent for other cases.
- but in all these cases a maximum of f. 500,000 applies.
3. Cost of the subsidy
In 1998 f. 8.8 million is available.
4. Policy goals
Goal of the subsidy is to stimulate maritime research.
5. Duration
Limited by the duration of the grant (see question 8).
6. Consequences for international trade
The subsidy is awarded to fundamental and industrial R&D, which has no direct effects on
trade flows.
7. Legal basis
Decision of 28 June 1995, Staatscourant 1995, 124. Executive decision 4 April 1996,
Staatscourant 1996, 68. Revised on 14 November 1997, Staatsblad 1997,  555.
21. Report 1998: Besluit subsidies zeescheepsnieuwbouw 1994 (Decision order-related
subsidies for shipbuilding)
1. Title
Besluit subsidies zeescheepsnieuwbouw 1994 (Decision order-related subsidies for
shipbuilding).
2. Form of the subsidy
The aid scheme is related to the 7th Directive for Shipbuilding of the EEC.  Subsidy is given
to Dutch shipyards as a grant related to contracts of seagoing civil merchant ships.G/SCM/N/48/EEC/Add.11
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3. Subsidy
Budget 1998: f. 55 million.
4. Policy goals
Reduce the effects of competition distortion of other subsidies provided by other main
shipbuilding countries.
5. Duration of the subsidy
From 01.01.1998 till 31.12.1998
6. Consequences for international trade
Statistical material can be found in several studies from the OECD, EC etc.
7. Legal basis
Decision of 7 June 1994, published in the Staatsblad 1994, number 437 and the decision of
4 July 1997, publication of the Uitvoeringsregeling BSZ 1997 in  the Staatscourant of 9 July 1997.
22. Report 1998 V.T.P. (Aircraft Technology Programme)
1. Title
Vliegtuigbouw Technologie Programma (Aircraft Technology Programme).
2. Form of the subsidy
Grant.
3. Cost of the subsidy
The VTP is funded out of a revolving fund, which is being managed and controlled by the
Netherlands Agency for Aerospace Programmes (NIV R). If the amount would not be sufficient, a
maximum guarantee of f. 5 million a year is given by the Ministry of Economic Affairs for the years
1998-2002. Till now the NIVR did not have to use this additional guarantee.
4. Policy-goals
The general objective of V.T.P.  is to achieve “technology readiness” in a number of specified
key technologies.  The research programme is aiming at the development and evaluation of critical
technologies for future aircraft programmes.
5. Duration
V.T.P. (extension) has a duration of 5 years (1998-2002).G/SCM/N/48/EEC/Add.11
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6. Consequences for international trade
As the programme awards subsidies only to research projects, there are no direct
consequences for trade flows.
23. Report 1998 Besluit subsidies bedrijfsgerichte technologische samenwerkingsprojecten
(BTS) (Decision Colloborative Industrial Technology Projects)
1. Title
Besluit subsidies bedrijfsgerichte technologische samenwerkingsprojecten (BTS) (Decision
Colloborative Industrial Technology Projects).
2. Form of the subsidy
Subsidy.
3. Cost of the subsidy
Subsidy budget 1998: 114 mln (3 calls for tender).  In 1998 115 projects received a subsidy.
Expected subsidy budget 1999: 110 mln. (3 calls for tender)
4. Policy goals
The goal of the scheme is to stimulate cooperation in R&D between companies and between
companies and research institutes/universities. The scheme does not distinguish specific sectors or
technological areas.  Projects need to be technologically innovative for the Netherlands and benefitthe Dutch economy.
5. Duration
The programme started in 1997; the programme will run for several years.
6. Consequences for international trade
The subsidy programme has no consequences for international trade.
7. Legal basis
Decision of 10 December 1996, published in Staatscourant 1996, no. 638 with revision
published in Staatscourant 1997, 390.
24. Report 1998 Clusterprojecten
1. Title
Cluster projects.G/SCM/N/48/EEC/Add.11
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2. Form of the subsidy
Grant of 37.5 per cent of the cost of the R&D-project. For at least 50 per cent the project has
to consist of industrial research.  Subsidy is only awarded to projects in which firms and/or
technological institutions cooperate.
3. Cost of the subsidy
In 1998 no budget was available.
4. Policy goals
Goal of the subsidy is to stimulate R&D-cooperation between firms and between firms and
technological institutions, with the fina l aim to increase the quality of R&D.
5. Duration
Case-by-case subsidisation is given only in 1996. The subsidies will be replaced by a new
R&D-subsidy scheme with the same objectives by the 1st of January 1997.
6. Consequences for international trade
The subsidy is awarded to industrial and precompetitive R&D, which has no direct effects on
trade flows.
7. Legal Basis
Decision of 28 December 1994, published as “Tweede Kamer, vergaderjaar 1994-1995,
23900 XIII, nr 31”. In 1996, this was succeeded by the BTS (Decision Collaborative Industrial
Technology Projects) of which the cluster projects form part.
25. Report 1998 Philips-Clusterprojecten
1. Title
“Philips Clusterprojecten ”
2. Form of the subsidy
Subsidy is provided as a grant.
3. Cost of the subsidy
In 1998 the Dutch government committed f. 4,187,500 for 11 projects. The subsidy is directly
linked to the R&D activities that are outsourced at universities.
4. Policy-goals
Goal of the subsidy is:1. To encourage lasting cooperation between Philips and the Dutch scientific
infrastructure (universities in particular);G/SCM/N/48/EEC/Add.11
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2. To reinforce the stock of scientific knowledge in areas of fundamental science and
industrial R&D that are relevant for Philips.
The areas concerned are ceramics and glass, functional polymeres, very large scale
integration design-technology, physics of thin i norganic films, analytical instruments & methods,
quantitative analysis of X-rays and magnetic resonance cardiac images, micro-mechanics, technology-
generations, information technology applied in consumer systems. The clusterproject Ecodesign is
included as well.
The activities of the scientific infrastructure (universities in particular) are being paid by
Philips. The activities at the universities are coordinated by Philips with their own research activities.
The subsidisation is exclusively meant to support the outsourcing of fundamental and
industrial research at universities.
5. Duration
The projects are carried out during the period 1 January 1998 to 31 July 2000.
6. Consequences for International Trade
The subsidy is awarded to fundamental and industrial base R&D, which has no direct effects
on trade flows.
7. Legal basis
Kaderwet verstrekking financiële middelen EZ.
26. Report 1998 Philips ECODESIGN
1. Title
“Philips Ecodesign”.
2. Form of the subsidy
Subsidy is provided as a grant.  The subsidy does not exceed 40 per cent of the cost of the
project.
3. Subsidy
For the period 1-1-1995 until 31-12-1999 f. 10 million is available.
4. Policy-goals
Goal of the subsidy is to reinforce the stock of scientific knowledge in areas of general
mechanisms which can be used at the (re-)development of products to achieve environmental gains.
The (re-)development of products itself is not subsidized. A second goal of the project is to achieve alasting active integration of environmental aspects related to industrial development.G/SCM/N/48/EEC/Add.11
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5. Duration
The project is carried out during the period 1-1-1995 to 31-12-1999.
6. Consequences for International Trade
The subsidy is awarded to industrial base R&D and pre-competitive development, which has
no direct effects on trade flows.
7. Legal basis
Kaderwet verstrekking financiële middelen EZ.
27. Report 1998 Eureka Project ADTT
1. Title
“Eureka Project ADTT (Advanced Digital Television Technologies)”
2. Form of the subsidy
Subsidy is provided as a grant to Nederlandse Philipsbedrijven B.V.  The subsidy does not
exceed 40 per cent of the cost of the project.
3. Subsidy
For 1998 f. 18.5 million is available.
4. Policy-goals
Goal of the subsidy is to reinforce the stock of scientific knowledge in industrial R&D. The
areas concerned are new technologies for advanced television applications (availability of basic-
technologies, research on key-components for digital receivers, video recorders, optical systems and
non-broadcast applications.
ADTT subprojects are:1. System integration;
2. Key technologies for consumer applications;3. Studio equipment;
4. Non-broadcast applications;
5. Evaluation
5. Duration
The project was stopped at the end of 1998.
6. Consequences for International Trade
The subsidy is awarded to industrial base R&D and pre-competitive development, which has
no direct effects on trade flows.G/SCM/N/48/EEC/Add.11
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7. Legal basis
Kaderwet verstrekking financiële middelen EZ.
28. Report 1998 Eureka Project COMMEND
1. Title
“Eureka Project COMMEND”.
2. Form of the subsidy
Subsidy is provided as a grant to Nederlandse Philipsbedrijven B.V.. The subsidy does not
exceed 50 per cent of the cost of the project.
3. Subsidy
For 1998 f. 5.5 million is available.
4. Policy-goals
Goal of the subsidy is to reinforce the stock of scientific knowledge in industrial R&D. The
areas concerned are new technologies for the digital interconnection of consumer electronics.
5. Duration
The project is foreseen to run from 1 January 1997 until the end of 2000.
6. Consequences for International Trade
The subsidy is awarded to industrial base R&D and pre-competitive development, which has
no direct effects on trade flows.
7. Legal basis
Kaderwet verstrekking financiële middelen EZ
29. Report 1998 Eureka Programme MEDEA
1. Title
“Eureka programme MEDEA (Micro-Electronics Development for European Applications)”.
MEDEA is the successor of the Eureka project JESSI (Joint European Submicron Silicon).
2. Form of the subsidy
Subsidy is provided as a grant that does not exceed 50 per cent of the cost of the projects.
3. Subsidy
For the period 1.1.1997 until 31.12.2000 f. 245 million is available.G/SCM/N/48/EEC/Add.11
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4. Policy-goals
Goal of the subsidy is to reinforce the stock of scientific knowledge in industrial R&D in the
area of microelectronics. To achieve this, research is being done in the following areas:
- Process and production technology related to the manufacturing of integrated circuits;
- Equipment and materials related to the manufacturing of integrated circuits;
- New design-methods and - systems and tools related to the design of integrated circuits;
- New chipsets for highly advanced applications.
5. Duration
The programme is carried out during the period 1.1.1997 to 31.12.2000.
6. Consequences for International Trade
The subsidy is awarded to industrial base R&D,  which has no direct effects on trade flows.
7. Legal basis
Kaderwet verstrekking financiële middelen EZ.
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