RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/ISR/11
12 April 2001
(01-1882)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the EUROPEAN COMMUNITY
Regarding the New and Full and Updating Notifications of ISRAEL1
The following communication, dated 11 April 2001, has been received from the Permanent
Delegation of the European Commission.
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I. Research and Development
1. Research and Development
(a) Does the repayment in the form of royalties provide for the addition of interest on the grant
amount?
(b) How long is the repayment period for the royalties?(c) Could Israel indicate when the programme came into existence?(d) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
2. Magnet
(a) Is there any limitation to the industrial applications eligible under this programme by industry
category?
(b) Could Israel indicate when the programme came into existence?(c) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
3. The Incubators Programme
(a) Could Israel explain in which circumstances the grant is repaid (in part or in full) and in
which circumstances it can be retained by the firm?
                                                     
1 G/SCM/N/25(ISR-G/SCM/N/38/ISR- G/SCM/N/48/ISR-G/SCM/N/60/ISRG/SCM/Q2/ISR/11
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(b) If the grant is fully repaid, does the repayment include the payment of interest on the grant
amount?
(c) Could Israel indicate when the programme came into existence?
(d) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
4. Beta Sites
(a) Could Israel explain how the determination of whether a programme is successful is made?
(b) If the grant is fully repaid, does the repayment include the payment of interest on the grant
amount?
(c) How long is the repayment period for the royalties?
(d) Could Israel indicate when the programme came into existence?
(e) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
II. Aid to Small and Medium-sized Companies
5. Small Business Authority
(a) Could Israel explain the terms and conditions of the loans granted under this programme, in
particular concerning interest rate and repayment period?
(b) Could Israel indicate when the programme came into existence?(c) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
III. Support for employment and training
6. Business tutorial programme
(a) Could Israel explain in which areas the company has to be located in order to benefit from the
programme?
(b) Could Israel indicate when the programme came into existence?(c) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
7. Enhancement of human resources
(a) Could Israel explain how a "development area" in which the company has to be located in
order to benefit from the programme, is defined?
(b) Could Israel list the development areas relevant under this programme?G/SCM/Q2/ISR/11
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IV. Other Forms of Subsidies
8. The Encouragement of Marketing Fund
(a) Could Israel elaborate on how the commercial evaluation of applicants is in practice
conducted? Do applicants have to submit information on projected exports?
(b) Are all grants repaid under this programme?(c) Could Israel clarify how the actual interest rate on the royalties is calculated?
9. The Import Liberalization Fund
(a) Could Israel explain on the basis of which criteria it is decided whether the company receives
either a grant or a state guaranteed loan, in what amounts, and under which conditions (e.g.
interest rate, repayment period)?
(b) Is Israel's import liberalisation programme limited to certain sectors?(c) What are the eligibility criteria for receiving the subsidy?
10. The Encouragement of Capital Investment
(a) Could Israel list the "development areas" as  defined during the period covered by the
notification?
(b) Please explain the criteria for "approved capital investment".
(c) Could Israel elaborate on the subsidy given in form of reduced rates of taxation?  Please
identify the type of tax and the rate of the tax reduction.
(d) Could Israel indicate when the programme came into existence?
(e) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
11. Cost of Land Development
(a) Could Israel indicate how a "disadvantaged region" is defined? How are "industrial areas" in
disadvantaged regions defined?
(b) How is the subsidy granted and in what form?
(c) Could Israel indicate when the programme came into existence?
(d) Does the programme have an unlimited duration? If not, please indicate the duration of the
programme.
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