WORLD TRADE
ORGANIZATIONG/SCM/N/95/MUS
G/SCM/N/99/MUS
3 July 2003
(03-3569)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
Extension Under SCM Article 27.4 of the Transition Period for the
Elimination of Export Subsidies Pursuant to the Procedures
in Document G/SCM/39
MAURITIUS
The following communication, dated 30 June 2003, has been received from the Permanent
Mission of Mauritius.
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Mauritius has the honour to submit its notifications relating to the year 2003 extension of the
transition period for the following programmes:
(i) Export Enterprise Scheme;
(ii) Pioneer Status Enterprise Scheme;
(iii) Export Promotion;
(iv) Freeport Scheme.
The only change in these programmes relate to the amendment brought to the Freeport
Scheme in July 2002.  Freeport operators are now subject to a corporate tax of 15 per cent similar to
Export Processing Zone (EPZ) and other tax incentive companies instead of the complete exemption
for corporate tax.  The annexed notifications include the amendment to the Freeport Scheme as well
as the relevant extract of the legislation.
Pursuant to paragraphs 1(d) and 1(e) of docu ment G/SCM/39, Mauritius would appreciate it if
the Committee on Subsidies and Countervailing Measures could renew these four programmes for the
year 2004.
This notification is also submitted pursuant to Article 25 of the Agreement on Subsidies and
Countervailing Measures.G/SCM/N/95/MUS
G/SCM/N/99/MUS
Page 2
EXPORT ENTERPRISE SCHEME
CUSTOMS AND EXCISE DUTY EXEMPTION
1. Form of Subsidy
Exemption from customs duty and excise duty on scheduled equipment.
2. Beneficiaries
Holders of an Export Enterprise Certificate
[Export Processing Zone (EPZ) companies].
3. Policy objective
To promote investment in EPZ sector.
4. Legal basis
Industrial Expansion Act 1993.
5. Background authority for the scheme
The Board of Investment and th e Customs & Excise Department.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
Marginal.
8. Assessment of trade effects
Negligible.
PREFERENTIAL REGISTRATION DUTY
1. Form of Subsidy
A lower rate of duty (i.e. 5 per cent) on the registration of a deed witnessing the acquisition of
industrial premises and of similar immovable property.
2. Beneficiaries
Holders of an Export Enterprise Certificate
[Export Processing Zone (EPZ) companies].G/SCM/N/95/MUS
G/SCM/N/99/MUS
Page 3
3. Policy objective
To promote investment in EPZ sector.
4. Legal basis
Registration Duty Act (as amended in the Finance Act 2000).
5. Background authority for the scheme
The Board of Investment and the Registrar General.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
Marginal.
8. Assessment of trade effects
Negligible.
PIONEER ENTERPRISE SCHEME
CUSTOMS AND EXCISE DUTY EXEMPTION
1. Form of Subsidy
Exemption from customs duty and excise duty on scheduled equipment.
2. Beneficiaries
Holders of a Pioneer Status Enterprise Certificate
3. Policy objective
The scheme aims at promoting investment in higher technology and encourage the creation of
more sophisticated support industries and services.
4. Legal basis
Industrial Expansion Act 1993.
5. Background authority for the scheme
The Board of Investment and the Customs and Excise Department.G/SCM/N/95/MUS
G/SCM/N/99/MUS
Page 4
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
Negligible.
8. Assessment of trade effects
Pioneer Status Enterprises cater mostly for the local market and therefore trade effects are
insignificant.
PREFERENTIAL REGISTRATION DUTY
1. Form of Subsidy
A lower rate of duty (i.e. 5 per cent) on the registration of a deed witnessing the acquisition of
industrial premises and of similar immovable property.
2. Beneficiaries
Holders of a Pioneer Status Enterprise Certificate.
3. Policy objective
The scheme aims at promoting investment in higher technology and encourage the creation of
more sophisticated support industries and services.
4. Legal basis
Registration Duty Act (as amended in the Finance Act 2000).
5. Background authority for the scheme
The Board of Investment and the Registrar General.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
Marginal.
8. Assessment of trade effects
Pioneer Status Enterprises cater mostly for the local market and therefore trade effects of the
duty concession are insignificant.G/SCM/N/95/MUS
G/SCM/N/99/MUS
Page 5
EXPORT PROMOTION
INCOME TAX CREDIT
1. Form of Subsidy
Tax credit allowed by way of deduction from income tax otherwise payable by the company,
the credit being determined by the percentage of qualifying export sales to total turnover, and limited
such that the rate of income tax payable after the tax credit does not fall below 15 per cent.
2. Beneficiaries
Any company engaged in the export of goods and services which is not a tax incentive
company.
3. Policy objective
To encourage enterprises traditionally geared towards the domestic market to diversify into
export markets.
4. Legal basis
Income Tax Act 1995 (Sections 71 and 72) and Income Tax (Amendment No. 2)
Regulations 2000.
5. Background authority for the scheme
Income Tax Department.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
Negligible.
8. Assessment of trade effects
Almost all manufacturing and service enterprises (except trading and financial services) are
subject to a rate of corporate tax of 15 per cent and are therefore not eligible to the export credit.
The scheme has become virtually inoperative and its trade effects insignificant.G/SCM/N/95/MUS
G/SCM/N/99/MUS
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FREEPORT SCHEME
CUSTOMS AND EXCISE DUTY EXEMPTION
1. Form of Subsidy
Customs and Excise Duty concession on machinery and equipment imported into the Freeport
Zone.
2. Beneficiaries
Private Freeport Developers, Third Party Freeport Developers and Freeport Operators.
3. Policy objective
To promote and encourage freeport trade including transit and entrepot trade and to position
Mauritius as a major regional distribution, transhipment and marketing centre.
4. Legal basis
Freeport Act 2001.
5. Background authority for the scheme
The Mauritius Freeport Authority and the Customs and Excise Department.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
The Government suffers no effective loss of income due to foregone taxes since these
activities would not have taken place in Mauritius without the existence of the Freeport and its related
incentives.
8. Assessment of trade effects
The scheme has encouraged international companies to carry out value added activities such
as labeling, packing, repacking and mixing in the Freeport Zone.
AMENDMENTS TO THE FREEPORT SCHEME
CORPORATE TAX EXEMPTION
1. Form of Subsidy
Corporate tax exemption on income derived from activities carried out in the freeport zone
except for freeport operators licensed after 1 June 2002 tro carry out any specified freeport processing
activities.G/SCM/N/95/MUS
G/SCM/N/99/MUS
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2. Beneficiaries
Freeport Operators engaged in minor processing  (licensed on or before 1 June 2002) and
those engaged in light assembly, ship building, repairs and maintenance.
3. Policy objective
To encourage trading companies to use the Mauritius Freeport as a logistics and marketing
platform for the re-exportation of their goods to Eastern and Southern Africa.
4. Legal basis
Income Tax Act 1995 (section 49).
5. Background authority for the scheme
The Mauritius Freeport Authority and the Income Tax Department.
6. Duration of the subsidy
The scheme is not limited in time.
7. Revenue implications
The Government suffers no effective loss of income due to foregone taxes since these
activities would not have taken place in Mauritius without the existence of the Freeport and its relatedincentives.
8. Assessment of trade effects
This incentive has contributed to the development of the Mauritius Freeport.  Freeport
generated a total trade turnover to Mau Rs. 15.9 billion for the financial year ending 30 June 2001.G/SCM/N/95/MUS
G/SCM/N/99/MUS
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Extract from the Finance Act 2002
14. The Income Tax Act amended
49. Companies in the freeport zone
(1) A company licensed under the Freeport Act 2001 as –
(a) a private freeport developer shall be exempt from income tax;(b) a third party freeport developer shall be liable to income tax on its
chargeable income at the rate specified in Part II of the First Schedule;
(c) a freeport operator authorized by virtue of its licence to carry out any
specified freeport processing activities shall be liable to income tax on its
chargeable income at the rate specified in Part II of the First Schedule;
(d) a freeport operator authorized by virtue of its licence to carry out freeport
activities other than those specified in paragraph (c) shall be exempt
from income tax;  or
(e) an occasional operator shall, subject to subsection (2), be liable to
income tax on its chargeable income in respect of the activities covered
by its licence at the rate specified in Part III of the First Schedule.
(2) The chargeable income under subsection (1)(e) shall be computed in such a
manner as may be prescribed.
(3) Notwithstanding subsection (1)(c), a freeport operator referred to in that
subsection and licensed on or before 1 June 2002 shall be exempt from income tax.
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