WORLD TRADE G/SCM/N/3/CMR
G/SCM/N/16/CMR
ORGANIZATION 29November 1996
(96-5060)
Original: French Committee onSubsidies andCountervailing Measures
SUBSIDIES
Notifications Pursuant toArticle XVI.1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
CAMEROON
Thefollowing notification, dated 18November 1996, hasbeenreceived fromthePermanent
Mission ofCameroon.
_______________
Forthepurposes oftransparency, Cameroon hasincluded inthisnotification allcomponents
ofitsIndustrial FreeZone (ZFI) programme. Accordingly, itshould benoted thatsome ofthe
programme 'scomponents donotinvolve anyfinancial contribution and,therefore, donotrepresent
notifiable subsidies.
Cameroon alsodraws attention toArticle 25.7oftheSCM Agreement, which stipulates that
notification ofameasure doesnotprejudge either itslegalstatus under GATT 1994andtheAgreement
orthenature ofthemeasure itself.
Again, Cameroon would point outthatitisadeveloping country Member named inAnnex VII
totheSCM Agreement andthusbenefits fromthespecial anddifferential treatment accorded tosuch
Members under Article 27oftheAgreement.
Pursuant toOrdinance No.90/001 of29January 1990, thesubsidies granted byCameroon
intheIndustrial FreeZone programme areasfollows:
1. Customs benefits
With theexception ofmotor vehicles forthetransport ofpassengers andgasoline, imports
byZFIenterprises areexempt fromallpresent andfuture customs duties andtaxes. Thesame istrue
forallexports. Theimport orexport verification programme doesnotapply toZFIenterprises.
2. Taxbenefits
Aftertheyareestablished,ZFIenterprisesbenefitfor10yearsfromataxexemptiononcompany
profits andthetaxisapplied atastandard rateof15percentfromtheeleventh yearonwards. Deficits
maybeindefinitely carried overtothenextfinancial yearfortaxassessment purposes. Enterprises
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areexempt fromtransfer taxonsalesofimmoveable property andthetaxonforeign exchange transfers.
Sales bynational firms toenterprises inthefreezones areexempt from tax,including turnover tax.
3. Benefits regarding labour regulations
There areliberalized labour regulations forenterprises inthefreezones. Awork permit can
beobtained automatically forforeign workers, butsuchworkers mustnot,bytheendoftheenterprise 's
fifthyearofoperation, exceed 20percentofthetotalnumber ofemployees.
4. Service benefits
Enterprises inthefreezones mayinstall theirownelectric power units orwater treatment
equipment. Iftheydonotdoso,theyareentitled toobtain electricity orwater atpreferential rates
nothigher thanthose forthemajor industries. They mayalsousetheirowntelecommunications
equipment, butsuchequipment becomes State property.
5. Other benefits
Freezoneenterprises arefreefromanyStatemonopoly andanyrestrictions onthetransport
ofexported andimported goods. They arealsoexempt fromanypricecontrols andcontrols onbuying
andselling foreign exchange andrepatriating funds.
"Industrial freezoneenterprise" status isgranted preferably toenterprises which, among other
requirements, userawmaterials fromCameroonian territory, areinstalled closetothesource ofsupply
forthesematerials or,inthecaseofexisting enterprises, guarantee theexport oftheirentire production
notlaterthanoneyearaftertheyaregranted suchstatus.