./.WORLD TRADE
ORGANIZATIONG/SCM/64
6 December 2002
(02-6763)
Committee 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 G/SCM/39
DOMINICAN REPUBLIC
Law No. 8-90 to "Promote the establishment of New Free Zones
and Expand Existing Ones"
Decision of 22 November 2002
The Committee on Subsidies and Countervailing Measures (the “Committee”),
As directed by the Fourth Ministerial Conference, in its Decision on Implementation-Related
Issues and Concerns, (WT/MI N(01)/17, 20 November 2001);
In following the “Procedures for Extensions Under Article 27.4 for Certain Developing
Country Members” (G/SCM/39, 20 November 2001) ("the Procedures");
Taking into account the request and other notified information provided by the Dominican
Republic to the Committee1, pursuant to the Procedures, for Law No. 8-90 to "Promote the
establishment of New Free Zones and Expand Existing Ones" (“the programme”);
Recognizing with appreciation the efforts, by the Dominican Republic, in light of its capacity
constraints, during the review by the Committee, to describe and clarify the provisions of the
programme;
Considering for purposes of this request, the Dominican Republic to be a developing country
Member, whose share of world merchandise export trade was not greater than 0.10 per cent and
whose total Gross National Income for the year 2000 as published by the World Bank was at or below
US$20 billion, and who is otherwise eligible to request an extension pursuant to Article 27.4 of the
Agreement on Subsidies and Countervailing Measures ("SCM Agreement");
Noting that  the Dominican Republic recognizes that it must satisfy obligations under the
transparency and standstill provisions contained in paragraphs 3 and 4 of the Procedures;
Hereby grants to the Dominican Republic an extension, until 31 December 2003, of the
transition period, under Article 27.2(b) of the SCM Agreement, for the elimination of export subsidies
                                                     
1 The notified information on the basis of which this decision is taken is found in documents
G/SCM/N/74/DOM, G/SCM/N/71/DOM, G/SCM/Q3/DOM/1 to G/SCM/Q3/DOM/7.G/SCM/64
Page 2
which take the form of full or partial exemptions from import duties and internal taxes and which
were in existence under the programme on 1 September 2001.
As provided  in paragraphs 1(d) and 1(e) of the Procedures, the period during which the
extension hereby granted can be continued on the basis of the Procedures is through the end ofcalendar year 2007, and such continuation shall be subject to annual review by the Committee for the
purposes and subject to the conditions set forth in paragraphs 1(d) and 1(e) of the Procedures.  As
provided in paragraph 1(f) of the Procedures, the Committee shall consider on the basis of the
provisions of Article 27.4, i.e., outside the framework of these procedures, any request for further
continuation, past the end of 2007, of the extensi on in respect of Law No. 8-90 to "Promote the
establishment of New Free Zones and Expand Existing Ones"; and as provided in paragraph 1(g) of
the Procedures, the Dominican Republic shall have the final period referred to in that paragraph ifsuch a further continuation is either not requested or not granted.
As provided  in paragraph 7(c) of the Procedures, the criteria set forth in the Procedures are
solely and strictly for the purpose of determinin g whether Members are eligible to invoke the
Procedures, and these criteria have no precedential value or relevance, direct or indirect, for any otherpurpose.
This decision does not affect the legal rights of Members with respect to any other obligations
of the Dominican Republic under the SCM Agreement, that may apply to the programme.  Among
such other obligations, it is recognized that this  programme remains subject to Article 3.1(b) of the
SCM Agreement, which prohibits subsidies contingent, whether solely or as one of several other
conditions, upon the use of domestic over imported goods.
This decision  does not affect any rights, obligations or commitments of Members under any
other WTO Agreement with respect to the programme; and is without prejudice to the existing andfuture relationship between the SCM Agreement and any other WTO Agreement, and has no
precedential value for any other purpose.
__________