WORLD TRADE
ORGANIZATIONG/SCM/N/60/JPN
20 October 2000
(00-4372)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
JAPAN
The following communication, dated 13 October 2000, has been received from the Permanent
Mission of Japan.
_______________
Japan submits this updated notification in compliance with its obligation under Article XVI:1
of the General Agreement on Tariffs and Trade (GATT) 1994 and Article 25 of the Agreement on
Subsidies and Countervailing Measures ("the Agreement" hereinafter).
In this notification, Japan has included certain measures which may not constitute "subsidies"
under Article 1 of the Agreement and certain subsidies which may not be "specific" under Article 2 of
the Agreement in order to achieve the maximum tran sparency with regard to the relevant programmes
and measures effective within its territory.
It should be recognized that, in accordance with Article 25.7 of the Agreement, the
notification of the programmes and measures does not prejudge its legal status, effects or nature under
GATT 1994 and the Agreement.
Furthermore, the notification does not prejudge the non-actionable nature of certain
programmes or measures under footnote 35 to Arti cle 10 of the Agreement, or the non-actionable
status that a programme or a measure would have under Article 8 of the Agreement, had it been
notified under the provisions of Article 8.
Note: There are several items which are in the process of notification and which are not indicated in
the attached list.  An additional list of such items will be submitted shortly.G/SCM/N/60/JPN
Page 2
TABLE OF CONTENTS
Page
I. FI NANCE ...................................................................................................................... ............4
1. Tax Credit for the Increased Expense of Research ...............................................................4
2. Tax Measures to Strengthen the Management of Small- and Medium-Sized
Corporations................................................................................................................... ...........5
3. Special Depreciation or Tax Credit on  the Manufactural Machines when Import
of Products Increases.......................................................................................................... ......6
4. Special Deduction for Expenditure on Prospecting for Domestic or Overseas
Mineral Deposit................................................................................................................ .........7
5. Special Depreciation on Certain Machinery used for High-Technology
Industries in the Designated High-Technology Industrial Development Areas
("Technopolis")................................................................................................................ .........9
6. Special Depreciation on Machinery (Rel ated to the Law of Temporary Measures
to Facilitate Business Innovation)..........................................................................................10
7. Special Depreciation on Machinery for Business Innovation (in the Law on
Temporary Measures for Activation of Specific Regional Industrial
Agglomerations)................................................................................................................ ......11
8. Special Depreciation on Facilities (R elating to Law on Temporary Measures for
Enhancing the Control Method of the Food Production Process)......................................12
9. Special Depreciation on Machinery (Related to the Plans for Structural
Improvement of Small and Medium-Sized Enterprises (SMEs) Under the
Scheme of Law on Promotion of Small and Medium-Sized EnterprisesModerniz ation .................................................................................................................. .......14
10. Additional Depreciation on Machiner y (Related to the plan for Structural
Improvement of Textile Industry under the Scheme of the Temporary Law on
the Structural Improvement of Textile Industry)................................................................15
11. Additional Depreciation on Fishing Bo ats (Related to the Plan for Structural
Improvement of Small and Medium-Sized Fishing Enterprises under the Scheme
of Extraordinary Law on the Reconstruction of Fishing Industry) ...................................16
12. Additional Depreciation on Machiner y of Corporations which Carry out the
Plans for Improvement of Agriculture Management ..........................................................17
13. Special Depreciation on the Drift for the Mining Industry.................................................18
14. Special Depreciation on the Payment to Specific Association.............................................19
15. Reserve for Prevention from Min eral Pollution of Metal Mining......................................21
16. Provision for the Disposal of the Of fshore Oil and Natural Gas Field ..............................22
17. Reserve for Preventing  Specific Disasters ............................................................................23
18. Reserve for Searching out New Mineral Beds in and out of Japan....................................24G/SCM/N/60/JPN
Page 3
19. Grants for Promoting Rationalization and Discontinuance or Change of
Business of Salt Industry...................................................................................................... ..25
20. Financial Measures for Schochu B Manufacturers .............................................................26
21. Reserve for Special Repairs ................................................................................................. ..27G/SCM/N/60/JPN
Page 4
I. FINANCE
1. Tax Credit for the Increased Expense of Research
1. Title of the subsidy programme
Tax credit for the increased expense of research (related to the enterprises which operate a
business belonging to the sectors designated by a Competent Ministers' order and are approved by the
Competent Ministers, which are legislated by the Law on the Temporary Measures to Facilitate
Business Innovation).
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To facilitate business innovation by enterprises in response to diverse and structural changes
in the domestic and international economic environment.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax credit.
7. To whom and how the subsidy is provided
A person or a corporation which is in response to diverse and structural changes in domestic
and international economic environment and present the business innovation plans which areapproved by the Competent Minister.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Tax credit for 10 per cent of the increased expense of research in each business year.  The
increased expenses are determined as a difference between expense of that year and the second-
highest one after the year that is succeeded by the year including 1 January 1995.  This tax credit is
available only in the year which includes the date of Minister's approval and the following 2 years.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1995 and 31 March 1999.G/SCM/N/60/JPN
Page 5
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of main industries                                                                                              (mil lion yen)
1996 1997 1998
ammonia industry
cement industry
scale industrywooden furniture industry
rubber belt industry21,486
690,666
91,630
1,731,010
96,97226,061
666,943
85,813
1,683,281
102,448-
564,290
76,822
-
96,263
2. Tax Measures to Strengthen the Management of Small- and Medium-Sized
Corporations
1. Title of the subsidy programme
Tax  measures to strengthen the management of small- and medium-sized corporations.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
1. Improvement of the management of agricultural processing business.
2. Accumulation of creative skills in agglomerations of regional industries and to
maintain and develop accumulations of industries by promoting the advance to the
new business sectors.
3. Smooth adaptation to the structural changes of the economy by advancing into the
new sectors.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral or tax credit.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 6
7. To whom and how the subsidy is provided
1. Small and medium-sized enterprises engaging in the agricultural processing
businesses.
2. Small and medium-sized enterprises which operate the specific businesses in the Area
to Activate Accumulations of Creative skills.
3. Small and medium-sized enterprises which operate the specific businesses which are
under the influence of the structural changes of the economy.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Choice of special depreciation of 30 per cent  of the acquisition cost or the tax credit of 7 per
cent of the acquisition cost on the equipment.  As for leasing, the tax credit on the 60 per cent of the
leasing fee is permitted.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1987 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of main industries  (1)                                                                                     (thousan d tons)
1994 1995 1996 1997 1998
Cheese
Polished Barley
Wheat Flour103
116
4,999106
130
4,947109
138
4,970117
142
4,882124
-
-(April-March)
(April-March)
(April-March)
Not available for (2) and (3)
3. Special Depreciation or Tax Credit on th e Manufactural Machines when Import of
Products Increases
1. Title of the subsidy programme
Special depreciation or tax credit on the manufactural machines when import of products
increases.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To promote import of product.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 7
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral or tax credit.
7. To whom and how the subsidy is provided
A person and a corporation mainly engaged in manufacture in Japan.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
When amount of increase on product import is more than 2 per cent the special depreciation
of 10 per cent on the manufactural equipment or the tax credit of 5 per cent on the amount of increase
on product import is permitted.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1990 and 31 March 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
(billion yen)
Year Imports of manufactured products
1995 19,744
1996 23,365
1997 24,091
1998 22,175
4. Special Deduction for Expenditure on Prospecting for Domestic or Overseas Mineral
Deposit
1. Title of the subsidy programme
Special deduction for expenditure on prospecting  for domestic or overseas mineral deposit.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 8
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To ensure continuity of mining business.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Deduction from taxable income.
7. To whom and how the subsidy is provided
A person or a corporation en gaged in the mining industry.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
The lowest of the following three amounts may be deducted from taxable income:1. the amount of the prospecting costs incurred, including depreciation expenses
allowed on machinery and equipment used for prospecting.
2. the amount added back to the taxable income from the prospecting cost reserve.
3. the amount of corporation income for the business year.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1965 and 31 March 2001.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
The amount of domestic production minerals                                      (thousand tons)
1996 1997 1998
copper
lead
zinc1.1 (0.1%)
7.8 (6.0%)
79.7 (14.7%)0.9 (0.2%)
5.2 (4.1%)
71.6 (12.3%)1.1 (0.1%)
6.2 (4.8%)
67.7 (12.2%)
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 9
5. Special Depreciation on Certain Machinery used for High-Technology Industries in the
Designated High-Technology Industrial  Development Areas ("Technopolis")
1. Title of the subsidy programme
Special depreciation on certain machinery used for high-technology industries in the
designated high-technology industrial development areas ("Technopolis").
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Promotion of the industrial development in certain areas, based on the high-technology
industries.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Corporations engaging in the qualified high-technology industries.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Special initial depreciation is granted for the high-technology machinery depending on the
time of acquisition as follows:
years after approval of the "Technopolis" plan
          5 y                 7 y              8 y              10 y            12 y      14 y           15 y
∼5 y∽7 y∼8 y ∼10 y∼12 y∼ 14 y∼15 y∼16 y
machinery 30% 25% 20% 15% 14% 12% 10% 9%
buildings etc. 15% 13% 10% 8% 7% 6% 5% 5%
9. Duration of a subsidy and/or any other time limits attached to it
Within 16 years after the approval  of the "Technopolis" plan.G/SCM/N/60/JPN
Page 10
10. Statistical data permitting an assessment of the trade effects of a subsidy*
billion yen
Year Production " Technopolis"
1992 35,506.9
1993 34,899.6
1994 35,189.3
1995 38,354.2
1996 39,541.2
6. Special Depreciation on Machinery (Relat ed to the Law of Temporary Measures to
Facilitate Business Innovation)
1. Title of the subsidy programme
Special depreciation on machinery (related to the law of temporary measures to facilitate
business innovation)
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To facilitate business innovation by enterprises in response to diverse and structural changes
in the domestic and international economic environment.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A person or a corporation which is  in response to diverse and structural changes in domestic
and international economic environment and present the business innovation plans which are
approved by the Competent Minsiter.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 11
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Special initial depreciation of 25 per cent is granted for certain machinery
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1995 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of main industries                                                                                             (mill ion yen)
1996 1997 1998
ammonia industry
cement industry
scale industry
wooden furniture industry
rubber belt industry21,486
690,666
91,630
1,731,010
96,97226,061
666,948
85,813
1,683,281
102,448-
564,290
76,822
-
96,263
7. Special Depreciation on Machinery for Business Innovation (in the Law on Temporary
Measures for Activation of Specific Re gional Industrial Agglomerations)
1. Title of the subsidy programme
Special depreciation on machinery for bu siness innovation (in the Law on Temporary
Measures for Activation of Specific Regional Industrial Agglomerations)
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To accumulate creative skills in agglomerations of regional industries and to maintain and
develop accumulations of industries by promoting the new business sectors.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 12
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Small and medium-sized enterprises which operate businesses belonging to central sectors
industry in the Area to Activate Accumulations of Creative skills.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Special initial depreciation of 15 per cent, 20 per cent and 25 per cent on machinery for
business innovation.
9. Duration of a subsidy and/or any other time limits attached to it
Between 12 June 1997 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
billion yen
Year industrial shipment figures
1991 27,340.4
1992 27,750.41993 27,889.2
1994 27,972.9
1995 28,392.5
1996 28,960.4
8. Special Depreciation on Facilities (Rel ating to Law on Temporary Measures for
Enhancing the Control Method of the Food Production Process)
1. Title of the subsidy programme
Special depreciation on facilities (related to Law on Temporary Measures for Enhancing the
Control Method of the Food Production Process)
2. Period covered by the notification
April 1998-March 1999.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 13
3. Policy objective and/or purpose of the subsidy
Facilitate the enhancing of the control method of the food production process.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Corporations engaging in food production indu stries, whose plans to enhance the control
method of the food production are approved by the governor.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Special initial depreciation of 7 per cent, 14 per cent of acquisition cost is granted for
enhancing the control method of food processing industry.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 July 1998 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of main specified businesses
1995 1996 1997
processed meats
packed food
milk and dairy goods554
5,749
5,960544
5,893
6,076534
5,802
6,097(thousand tons)
(thousand tons)
(thousand kilolitres)
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 14
9. Special Depreciation on Machinery (Related to the Plans for Structural Improvement of
Small and Medium-Sized Enterprises (SMEs) Under the Scheme of Law on Promotion
of Small and Medium-Sized Enterprises Modernization
1. Title of the subsidy programme
Special depreciation on machinery (related to the plans for structural improvement of small-
and medium-sized enterprises (SMEs) under the scheme of Law on Promotion of Small- and
Medium-Sized Enterprises Modernization)
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Promotion of modernization of small and medium-sized enterprises.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Small and medium-sized enterprises which meet all the following conditions:
- Membership of commercial and industrial cooperatives etc., whose plans for
structural improvement of SMEs are approved by the Minister of International Tradeand Industry
- Engaging in the businesses qualified as necessary for immediate structural
improvement.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Special additional depreciation of 18 per cent of ordinary depreciation allowance for the first
five years is granted for certain factory building and machinery.
9. Duration of a subsidy and/or any other time limits attached to it
For 5 years after the approval of the pl an for structural improvement of SMEs.G/SCM/N/60/JPN
Page 15
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of main industries million yen)
1996 1997 1998
concrete industry
lime industry
screw industrygear industry
pig-iron casting industry
metal-press industry1,666,660
94,914
723,874253,172
840,424
1,195,5381,578,950
98,198
740,842289,680
852,994
1,204,3411,397,664
87,589
611,714244,042
732,489
1,068,996
10. Additional Depreciation on Machinery (Relat ed to the plan for Structural Improvement
of Textile Industry under the Scheme of the Temporary Law on the Structural
Improvement of Textile Industry)
1. Title of the subsidy programme
Additional depreciation on machinery (related to the plan for structural improvement of
textile industry under the scheme of the Temporary Law on the Structural Improvement of Textile
Industry)
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Structural improvement of textile industry.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Small- and medium-sized enterprises which meet all the following conditions:
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 16
(1) Membership of commercial and industrial cooperatives, etc. whose plans for
structural improvement of textile industry are approved by the Minister of
International Trade and Industry.
(2) Engaging in the business of the textile industry.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Additional depreciation of 18 per cent is granted for certain buildings and machinery for
5 years.
9. Duration of a subsidy and/or any other time limits attached to it
For 5 years after the approval of the plan fo r structural improvement of textile industry.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
1996 1997 1998
Production (t)
Import (t)
Export (t)
Domestic demand (t)
Import/Domestic demand (%)1,323,311
1,457,214
398,132
2,419,471
60.21,315,018
1,428,137
405,281
2,326,714
61.4under
examination
11. Additional Depreciation on Fishing Boat s (Related to the Plan for Structural
Improvement of Small and Medium-Sized Fishing Enterprises under the Scheme of
Extraordinary Law on the Reconstruction of Fishing Industry)
1. Title of the subsidy programme
Additional depreciation on fishing boats (related to the plan for structural improvement of
small and medium-sized fishing enterprises under the scheme of Extraordinary Law on the
Reconstruction of Fishing Industry)
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Structural improvement of the fishing industry.
4. Background and authority for the subsidy
The Ministry of Finance.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 17
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
Small and medium-sized fisheries which meet all the following conditions:
(1) Membership of fishing cooperatives whose plans for structural improvement of small
and medium-sized fishing enterprises are approved by the Minister of Agriculture,
Forestry and Fisheries.
(2) Engaging in certain fishing businesses.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Additional depreciation of 16 per cent is granted for fishing boats for 5 years.
9. Duration of a subsidy and/or any other time limits attached to it
For 5 years after approval of the plan for st ructural improvement of fishing enterprises.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
N/A
12. Additional Depreciation on Machinery of Corporations which Carry out the Plans for
Improvement of Agriculture Management
1. Title of the subsidy programme
Additional depreciation on machinery of corporations which carry out the plans for
improvement of agriculture management.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Strengthening of the management of forestry and improvement of the number of labourers
who are engaged in forestry.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, where possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 18
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A person and a corporation engaged in forestry on a large scale, whose plans for improvement
of forestry management approved by the Minister of Agriculture, Forestry and Fishery.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Additional depreciation of 15 per cent is granted for forestry machinery for 5 years.
9. Duration of a subsidy and/or any other time limits attached to it
For 5 years after approval of the plan.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production (thousand m2)
1995 1996 1997 1998
Production 24,456 22,897 22,469 21,551
13. Special Depreciation on the Drift for the Mining Industry
1. Title of the subsidy programme
Special depreciation on the drift for the mining industry.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To maintain the production.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 19
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A person or a corporation en gaged in the mining industry.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
• Deduction of all the acquisition cost of the drift for the purpose of maintaining the
production
• Special additional depreciation of 13 per cent as for the ventilation drift.
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1957 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
The amount of domestic production of minerals                  (thousand tons)
1996 1997 1998
copper
lead
zinc1.1 (0.1%)
7.8 (6.0%)
79.7 (14.7%)0.9 (0.2%)
5.2 (4.1%)
71.6 (12.3%)1.1 (0.1%)
6.2 (4.8%)
67.7 (12.2%)
14. Special Depreciation on the Payment to Specific Association
1. Title of the subsidy programme
Special depreciation on the payment to specific association.
2. Period covered by the notification
April 1998-March 1999.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 20
3. Policy objective and/or purpose of the subsidy
Development of new products or new technology.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A member of the specific association.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts which are paid by the member of the association as the acquisition
cost of assets which belong to the association.
9. Duration of a subsidy and/or any other time limits attached to it
Until 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Concerning Law on Promotion of Small and Medium-Sized Enterprises  Modernization.
Production of main industries            (million yen)
1996 1997 1998
concrete industry
lime industry
screw industry
gear industry
pig-iron casting industrymetal-press industry1,666,660
94,914
723,874
253,172
840,424
1,195,5381,578,950
98,198
740,842
289,680
852,994
1,204,3411,397,664
87,589
611,714
244,042
732,489
1,068,996
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 21
15. Reserve for Prevention from Mineral Pollution of Metal Mining
1. Title of the subsidy programme
Reserve for Prevention from Mineral Pollution of Metal Mining.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
Mineral pollution prevention relating to metal mining.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A person or a corporation engaging in the mining industry.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts accumulated in the Metal Mining Agency of Japan as the reserve
for prevention of mineral pollution.  (When the expense for prevention of mineral pollution is paid,the reserve corresponding to the cost is included in the profit).
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1974 and 31 March 2000.G/SCM/N/60/JPN
Page 22
10. Statistical data permitting an assessment of the trade effects of a subsidy*
The amount of domestic production of minerals      (thousand tons)
1996 1997 1998
copper
lead
zinc1.1 (0.1%)
7.8 (6.0%)
79.7 (14.7%)0.9 (0.2%)
5.2 (4.1%)
71.6 (12.3%)1.1 (0.1%)
6.2 (4.8%)
67.7 (12.2%)
16. Provision for the Disposal of the Offshore Oil and Natural Gas Field
1. Title of the subsidy programme
Provision for the disposal of the offshore oil and natural gas field.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To dispose the well smoothly.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A corporation engaging in exploitation of petroleum and natural gas in Japan.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts credited to reserves for the assumed well-disposition cost
corresponding to the period of durability of well equipment.  (When the well-disposition cost is paid,the reserve corresponding to the cost is included in the profit).
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 23
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1986 and 31 March 2000.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of natural gas (thousand ton)
1996 1997 1998
Production
Import1,593
45,8771,628
47,6561,644
49,133
Production of crude oil     (thousand kilolitres)
1996 1997 1998
Production
Import837
263,445842
271,701792
254,828
17. Reserve for Preventing Specific Disasters
1. Title of the subsidy programme
Reserve for preventing specific disasters.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To prevent the disasters from quarrying.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A person and corporation in a quarrying industry or open pit coal mining company.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 24
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts credited to reserves for the expense to prevent disasters after
mining.  (When the expense is paid, the reserve corresponding to the cost is included in the profit).
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1991 and 31 March 1999.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Production of limestone ore       (thousand tons)
1995 1996 1997
Production
Import
Export201,096
0
3,704202,894
0
3,392201,399
0
4,095
18. Reserve for Searching out New Mineral Beds in and out of Japan
1. Title of the subsidy programme
Reserve for Searching out New Mineral Beds in and out of Japan.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To promote the exploitation of mineral resources.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 25
7. To whom and how the subsidy is provided
A person and corporation engaging in the mining industry.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts credited to the reserves which correspond to 12 per cent of the sales
amount of the minerals.  (After 3 years following the transfer to the reserves, the reserve is included in
the profit).
9. Duration of a subsidy and/or any other time limits attached to it
Between 1 April 1965 and 31 March 2001.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
The amount of domestic production minerals (thousand tons)
1996 1997 1998
copper
lead
zinc1.1 (0.1%)
7.8 (6.0%)
79.7 (14.7%)0.9 (0.2%)
5.2 (4.1%)
71.6 (12.3%)1.1 (0.1%)
6.2 (4.8%)
67.7 (12.2%)
19. Grants for Promoting Rationalization and Discontinuance or Change of Business of Salt
Industry
1. Title of the subsidy programme
Grants for promoting rationalization and discontinuance or change of business of salt
industry.
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To assist rationalization and discontinuance or change of business of salt producers and salt
wholesalers to promote structural adju stment of the domestic salt industry.
4. Background and authority for the subsidy
The Salt Industry Centre of Japan.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 26
5. Legislation under which it is granted
Salt Business Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Grant.
7. To whom and how the subsidy is provided
Salt producers and salt wholesalers which have rationalized and/or have discontinued or
changed their business.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Fiscal year 1996 458 (million yen)
Fiscal year 1997 902 (million yen)
Fiscal year 1998 671 (million yen)
9. Duration of a subsidy and/or any other time limits attached to it
October 1996-March 2002.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
(thousand tons)
Fiscal year Production Import Export Domestic demand
1997
1998
19991,344
1,329
1,2937,983
8,292
7,5500
0
09,156
9,479
9,090
20. Financial Measures for Schochu B Manufacturers
1. Title of the subsidy programme
Financial measures for Shochu B Manufacturers
2. Period covered by the notification
April 1998-March 1999.
3. Policy objective and/or purpose of the subsidy
To reform the structure of Shochu B industry and to help the modernization of its
environment protection facilities.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 27
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Measures Law concerning the stability  of the Sake Brewing and Related Manufacture.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Interest-free loan to "the Shochu B Manufacturers Industry Funds" and Grants.
7. To whom and how the subsidy is provided
Japan Brewers Association.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
• The Funds' running profit  ¥1.16 billion
• Grants from the state budget ¥0.27 billion.
9. Duration of a subsidy and/or any other time limits attached to it
Duration of the interest-free loan is limited to 10 years.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Quantity of shipment of Shochu B   (kl)
1996 1997 1998
Domestic
Import
Total318,023
537
318,560330,243
477
330,720324,952
157
325,109
21. Reserve for Special Repairs
1. Title of the subsidy programme
Reserve for Special Repairs.
2. Period covered by the notification
April 1997-March 1998.
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.G/SCM/N/60/JPN
Page 28
3. Policy objective and/or purpose of the subsidy
To equalize each year's costs of repairs.
4. Background and authority for the subsidy
The Ministry of Finance.
5. Legislation under which it is granted
Special Taxation Measures Law.
6. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Tax deferral.
7. To whom and how the subsidy is provided
A corporation possessing vessels or blast furnaces etc.
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy
Deduction of the amounts credited to the reserves for the assumed cost of the special repairs.
(When the cost is paid the reserve corresponding to the cost is included in the profit).
9. Duration of a subsidy and/or any other time limits attached to it
No time limits.
10. Statistical data permitting an assessment of the trade effects of a subsidy*
Sales and export amounts of shaft furnace makers (million yen)
1994 1995 1996
sales
export6,286,283
1,319,6246,391,275
1,406,4096,472,809
1,507,579
__________
                                                     
* Statistics of production, consumption, imports and exports:
(i) for the three most recent years for which statistics are available;(ii) for a previous representative year, which, wh ere possible and meaningful, should be the latest
period preceding the introduction of the subsidy or preceding the last major change in the
subsidy.