WORLD TRADE
ORGANIZATIONG/SCM/N/71/MUS
1 March 2002
(02-1064)
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
MAURITIUS
The following communication, dated 27 February 2002,  has been received from the
Permanent Mission of Mauritius.
_______________
With reference to our letter dated 19 December 2001 concerning the identification of
programmes for which an extension of the tran sition period under Article 27.4 of the Agreement on
Subsidies and Countervailing Measures (ASCM) wa s being sought by the Mauritius authorities,
pursuant to paragraph 10.6 of the decision (WT/MIN(01)/17) taken at the Doha Ministerial
Conference.
In accordance with the procedures set out in document G/SCM/39, the Government of the
Republic of Mauritius is hereby submitting the full notification of the programmes referred to in our
letter of 19 December 2001.
The Government of the Republic of Mauritius looks forward to the positive consideration of
its request by the Committee on Subsidies and Countervailing Measures.G/SCM/N/71/MUS
Page 2
TABLE OF CONTENTS
Page
I. EXPORT ENTERPRISE SCHEME ..................................................................................................... .....3
A. C USTOMS AND EXCISE DUTY EXEMPTION ..................................................................................................3
B. PREFERENTIAL REGISTRATION DUTY ..........................................................................................................3
II. PIONEER STATUS ENTERPRISE SCHEME ........................................................................................4
A. CUSTOMS AND EXCISE DUTY EXEMPTION ....................................................................................................4
B. PREFERENTIAL REGISTRATION DUTY ..........................................................................................................5
III. EXPORT PR OMOTION........................................................................................................... .............6
IV. FREEPORT SCHEME ............................................................................................................. ..............6
A. CUSTOMS AND EXCISE DUTY EXEMPTION ....................................................................................................6
B. CORPORATE TAX EXEMPTION ......................................................................................................................7G/SCM/N/71/MUS
Page 3
I. EXPORT ENTERPRISE SCHEME
A. 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.
B. 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]
3. Policy objective
To promote investment in EPZ sector.G/SCM/N/71/MUS
Page 4
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.
II. PIONEER STATUS ENTERPRISE SCHEME
A. 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.
6. Duration of the subsidy
The scheme is not limited in time.G/SCM/N/71/MUS
Page 5
7. Revenue implications
Negligible
8. Assessment of trade effects
Pioneer Status Enterprises cater mostly for the local market and therefore trade effects are
insignificant.
B. PREFERENTIAL REGISTRATION DUTY
1. Form of Subsidy
A lower rate of duty (i.e. 5 per cent) on the re gistration 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/71/MUS
Page 6
III. 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.
IV. FREEPORT SCHEME
A. CUSTOMS AND EXCISE DUTY EXEMPTION
1. Form of Subsidy
Customs and Excise Duty concession on machinery and equipment imported into the Freeport
Zone.G/SCM/N/71/MUS
Page 7
2. Beneficiaries
Private Freeport Developers, Third Party Freeport Developers and Freeport Operators.
3. Policy objective
To promote and encourage freeport trade including transit and entrepôt 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.
B. CORPORATE TAX EXEMPTION
1. Form of Subsidy
Corporate tax exemption on income derived from activities carried out in the freeport zone.
2. Beneficiaries
Freeport Operators engaged in minor processing, light assembly and 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).G/SCM/N/71/MUS
Page 8
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 related
incentives.
8. Assessment of trade effects
This incentive has contributed to the development of the Mauritius Freeport.  Freeport
generated a total trade turnover of MUR 11.5 billion for the financial year ending 30 June 2001.
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