WORLD TRADE
ORGANIZATIONG/SCM/Q2/EST/2
6 June 2003
(03-2960)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies to the Questions Posed by AUSTRALIA1
Regarding the New and Full Notification of ESTONIA2
The following communication, dated 4 June 2003, has been received from the Permanent
Mission of Estonia.
_______________
Estonia thanks Australia for the questions about its notification pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures in
document G/SCM/N/71/EST dated 10 September 20 02.  Estonia submits the following answers.
Export credit and guarantee scheme
Q1. Given that the export credit scheme was terminated in 2000 (A.1.8 refers), could Estonia
confirm that the only continuing programme is  the export guarantee scheme and that the
information provided in A.1 therefore rela tes to the export guarantee scheme only?
Reply
Yes, Estonia confirms that the only continuing programme is the export guarantee scheme.
The information provided in A.1 relates to both the export credit (11 loans) and the export guarantee
scheme (4 guarantees).
Q2. When in 2000 was the export credit sche me terminated?  Have there been ongoing
payments under the export credit scheme since this time?
Reply
The export credit scheme was terminated in 2000 and there have been no ongoing payments
under the export credit scheme since the end of 2000. The system export credits was terminated as of
26 February 2001.
                                                     
1 G/SCM/Q2/EST/1
2 G/SCM/N/71/ESTG/SCM/Q2/EST/2
Page 2
Support for organizing the participation of entrepreneurs in international fairs/exhibitions
Q1. What are the conditions attached to  the granting of the subsidy to fair
operators/organizers?
Reply
The firms who receive the subsidy should be registered under Estonian law; they should have
honest tax record.
Q2. Does the programme cover visits of enterprises in all sectors/industries?
Reply
Yes, the programme covers visits of enterprises in all sectors/industries
Support for participation in international fairs/exhibitions
Q1. Are all enterprises in all sectors/industries eligible to apply for this subsidy?
Reply
Yes, all enterprises in all sectors/ industries are eligible to apply for this subsidy.
Q2. Apart from participation at one internat ional fair once a year, are there any other
conditions attached to the granting of this s ubsidy, e.g. any performance or sales conditions?
Reply
There are no performance, sales conditions attached to the granting of this subsidy.  The
additional condition of participation only once a year means that no enterprise can receive the subsidy
twice during any calendar year, i.e. participation in  more than one event per calendar year may not be
supported.  It is also required that the entity has to be registered and must have good tax reputation.
Q3. Is it possible for the same company to benefit from the programmes notified under A.5
and A.6, e.g. can a visit of a specific enterprise to a particular fair be supported by both
programmes?
Reply
The programmes notified under A.5 and A.6. are different in purpose: A.5. support for
organising the participation of entrepreneurs in international fairs and exhibitions is for organising
participation in these events; A.6. supports participation itself. In principle the firms should differ as
those who organise the event do not participate in it as participants.
Benefits from both programmes simultaneously are not practiced.G/SCM/Q2/EST/2
Page 3
Loans for SMEs
Q1. In addition to the conditions outlined in  the notification, does this programme target
particular sectors/industries or is it open to all sectors/industries?
Reply
This programme does not target particular sectors/industries but is open to all
sectors/industries.  There are no conditions additional to those outlined in the notification.
Q2. Could Estonia indicate the sectors/industries which benefited from grants under this
programme in 2000?
Reply
The amount of loans issued was 24.5 million kroons.  Loans were mainly given to services
and industry sectors.
Guarantee scheme for SMEs
Q1. In addition to the conditions outlined in  the notification, does this programme target
particular sectors/industries or is it open to all sectors/industries?
Reply
This programme does not target particular sectors/industries but is open to all
sectors/industries.
Q2. Could Estonia indicate the sectors/industries which benefited from loan guarantees
under this programme in 2000?
Reply
The amount of guarantees given was 4.5 million kroons. Guarantees were issued mainly to
enterprises from services and industry sectors.
Q3. Can the same enterprise be eligible for subsidies under the programmes notified in B.7
and 8 in any given fiscal year?
Reply
Yes, the same enterprise can be eligible for subsidies under the programmes notified in B.7
and 8 in any given fiscal year. However, no simultaneous benefits are practiced—the eligibility which
exists for all firms can not be used twice by one and the same entity.
Support for small entrepreneurs for participating in local fairs/exhibitions
Q1. Are small enterprises in all sectors/industries eligible to apply for this subsidy?
Reply
Yes, all small and medium-sized enterprises having a good tax record in all sectors are
eligible to apply for this subsidy.G/SCM/Q2/EST/2
Page 4
In 2003 all employers with their number of employees up to 50 and all entrepreneurs
registered in Estonia and engaged in manufacturing goods with their number of employees up to 250
can participate.  This also includes the professi onal associations and associations of employers of
other types.  In 2000 the same criterion was the number of employees up to 80 with preference toenterprises with less than two years in business.
The total annual amount of support for each in 2003 may not exceed 9000 Estonian kroons; in
2000 the limit was set at 7000 kroons but not more than 75% of all the costs of participation at local
fairs.
Regional development loans
Q1. In addition to the conditions outlined in  the notification, does this programme target
particular sectors/industries or is it open to all sectors/industries?
Reply
This programme does not target particular sectors/industries but it is open to all
sectors/industries that usually exist in the target areas of regional development loans like local
industries, tourism and alternative agriculture.  Regional development loans cannot be given to the
following sectors and areas:
• Traditional farming (plant and animal growing);
• Timber production from forests;
• Retail and wholesale commerce;
• Passenger transport;
• Real estate development
• Finance services;
• Alcohol and tobacco;
• Gambling.
Q2. How are “peripheral areas” being defined?
Reply
Peripheral areas—i.e. target territories of regional development loans—according to the
Decision of the Supervisory Board of the Regional Development Agency of 26 January, 2000 on
approving the procedure for giving regional develo pment loans, are the territories of all local
municipal governments with the exception of the following towns—Tallinn, Tartu, Pärnu, Keila,Maardu, Saue—and the following parts (surrounding the capital city) of the Harju County—Harku,
Saue, Keila, Vasalemma, Saku Kiili, Rae, Jõelähtme, Raasiku and Viimsi (the Island of Prangli
excluded).
Aid for Estonian Audiovisual Industry
Q1. Do all Estonian film producers receive this subsidy?  How many producers received
subsidies in 2000?G/SCM/Q2/EST/2
Page 5
Reply
This subsidy is meant for support of Estonian professional filmmakers, distribution of
Estonian films, international co-operation of Esto nian independent film production companies in the
field of film production, film-related continuous education, projects and initiatives aimed atpromotion of the film culture.
Support is not granted to amateur film-making, production of television programs,
recreational games or other audiovisual products of the similar nature.  Likewise production support
shall not be granted to films or other audiovisual products intended for marketing or promotion
purposes of goods or services (including direct marketing and hidden promotion).  No funds shall be
granted to the production of pictures that have content contradicting Estonian law by carrying illegalcontent.  Support shall be denied to those applicants who have acted in bad faith when applying for or
making use of EFF subsidies.
In 2000 the following producers received this subsidy:
Name of the project
CompanyProducer Director Total amount of support in Estonian kroons
Production support for full length feature films
 
1. Karu süda
Faama Film Mati Sepping Arvo Iho 1 950 000
2. Head käed
Allfilm/F.O.R.M.A. Artur Talvik/Gatis Upmalis Peeter Simm 3 800 000
 
Development support for full length feature films
 
1. Henry ja Mart
Exitfilm Peeter Urbla  150 000
2. Agent Sinikael
Suhkur Film Veiko Õunpuu Marko Raat 200 000
3. Head käed
Allfilm Artur Talvik Peeter Simm 150 000
4. Rahvuspark
Guvatrak Even Tudeberg Hardi Volmer 50 000
5. Põrandaalune
Suhkur Film Veiko Õunpuu Rainer Sarnet 50 000
6. Nimed marmortahvlil
Tenderom Tasko Productions Kristian Taska Elmo Nüganen 300 000
7. Metsavennad
Hansa Meedia EestiJuhani Tamminen Pekka Lehto 200 000
8. Somnambuul
F-Seitse Reet Sokmann Sulev Keedus 150 000
 
Production support for short films
 
1. Armas tuss 50 a. hiljem
Allfilm Artur Talvik Rene Vilbre 390 000
2. Ränk ja Kilk
AS Exitfilm Peeter Urbla Olle Mirme 400 000
3. Heinaloom
Rao Heidmetsa FS Rao Heidmets Rao Heidmets 400 000
4. Majakas
Nikodemus Film;
TNS Productions Toomas Sula;
Eliane Stutterheim Toomas Sula 500 000
 TNS Productions Eliane Stutterheim   
5. Miski on mäda ehk kogu vale Hamletist
Kinomees Peeter Palusaar Ilmar Raag 237 000G/SCM/Q2/EST/2
Page 6
 
Production support for drawing animation films
 
1. Lotte XII-XIII
Eesti Joonisfilm Kalev Tamm Heiki Ernits jt. 800 000
2. Peata ratsanik
Eesti Joonisfilm Kalev Tamm Ülo Pikkov 800 000
3. Mont Blanc
Eesti Joonisfilm Kalev Tamm Priit Tender 1 200 000
4. Lepatriinude jõulud (Tim ja Mia)
Eesti Joonisfilm Kalev Tamm Janno Põldma ja Heiki Ernits 400 000
 
Production support for puppet animation films
 
1. Eilne vedur
NukufilmArvo Nuut Kalju Kivi/Mikk Rand 67 000
2. Sääsk ja hobune
NukufilmArvo Nuut Mikk Rand 130 000
3. Tulelaeva kulid
NukufilmArvo Nuut Mait Laas 634 500
4. Hing sees
NukufilmArvo Nuut Riho Unt 1 250 000
5. Vaala hing
Nukufilm/Tegnefilmcomp. Arvo Nuut Lisbet Narud 50 000
 
Development support for puppet animation films
 
Tulelaeva kulid, treiler
NukufilmArvo Nuut Mait Laas 76 860
 
Student films of Estonian Art University in collaboration with Nukufilm
 
1. SW 11 5R2
Nukufilm/EKA Arvo Nuut Dagmar Kase 16 810
2. Teinepool
Nukufilm/EKA Arvo Nuut Marili Sokk 16 810
3. Volosõ
Nukufilm/EKA Arvo Nuut Jelena Jemeljanova 16 810
 
Production support for documentary films
 
1. Georg ja teised
Balti Video Raivo Suviste Mati Põldre 52159.35
2. Brigaad (Neenetsid)
F-Seitse Reet Sokmann Liivo Niglas 75 000
3. Nostalgia nimega Titan
F-Seitse Reet Sokmann Sulev Keedus 310 000
4. Ööbiku saladus
Gaviafilm Rein Maran Rein Maran 200 000
5. Glamorama
Rudolf Konimois Anu Veermäe J.Kilmi/A.Maimik 160 000
6. Külalised taevast
Allfilm Piret Tibbo P.Tibbo/R.Kotov 200 000
7. Elu pärast maailmalõppu
Lege Artis Film Enda Lehtmets Peeter Simm 200 000
8. Inimene kadus (Varjus)
Eesti Tõsielufilm Mati Sepping Urmas E.Liiv 180 000
9. Elulugu
Exitfilm Peeter Urbla Aivo Spitsonok 61 000
10. Sõda peale sõda
Exitfilm Peeter Urbla Peeter Simm 150 000
12. Volli, sempre volli (Meie aja kangelane)
Kairiin Jüri Sillart Jüri Sillart 157 378G/SCM/Q2/EST/2
Page 7
13. Kasinuse viljad
F-Seitse Reet Sokmann Doris Supin 250 000
15. Trummimeister
Anzori Barkalaja Anzori Barkalaja Andrus Laansalu 36 512
16. Pagulaslaagri lapsed
Exitfilm Peeter Urbla Andrus Prikk 172 676
17. Metskuninganna
Defore Salme Poopuu Heli Speek 750
18. Inimeste lemmik
Rühm Pluss Null Meelis Piller Meelis Piller 50 000
19. Õpetaja
Allfilm Artur Talvik Heini Drui 39 000
20. Tema Majesteedi sõjalaev
F-Seitse Reet Sokmann Indrek Kangur 50 000
21. Nikolai tänav
Weiko Saawa Film Mark Soosaar Mark Soosaar 77 500
22. Põllumees põline...
Profilm Ago Ruus Ago Ruus 20 000
23. Sub specie aeternitatis...(Õnne valem)
Estonia Film Igor RuusIgor Ruus75 000
24. Eestluse saaga (Identiteet)
Freyja Film Tõnu Virve Kristjan-Paul Virve75 000
 
Development support for documentary films
 
2. Kirjuhahk edu altarile
Profilm Ago Ruus Enn Säde 50 000
3. Jätkusõja viimased sõdurid
Faama Film Mati Sepping Enn Säde 50 000
 
Student films of the department of film and video of the Estonian Pedadogical University
 
1. Soul and body
Rühm Pluss Null Erik Norkroos K.Ansip 50 000
2. Tere,kallis kodu
Filmistuudio Amor Elo Selirand K.Davidjants 50 000
3. Püha mägi
Faama Film Mati Sepping A.Aleksejev 50 000
4. Kajur e. teekond Põhjalasse
Eesti Tõsielufilm Mati Sepping V.Taluste50 000
5. Magusad unelmad
Suhkur Film Veiko Õunpuu A.Tammiksaar 50 000
6. Mille eest ?
Parunid ja Vonid Manfred Vainokivi S.Timmermann 50 000
7. Lustisõit II
Filmimees Raivo Lugima I. Volens 50 000
8. Väliseesti
Exitfilm Peeter Urbla R. Jõerand 50 000
 
Varia
 
1. Georgica, duubelnegatiiv
F-Seitse Reet Sokmann Sulev Keedus 332 693
2. Tähesõit, (festival copy)
Exitfilm Andres Sauter Jaak Kilmi 30 720
3. Eesti filmide nädal (Organization of the Estonian Film Week)
Eesti Kinoliit Elo Tust  25 000
4. Scholarship for film studies in Hamburg
Anneli Ahven   75 000
5. Participation in Berlin Film Festival
Endel Link   133
6. IV Pimedate Ööde filmifestiva l (Black Nights Film Festival)
MTÜ PÖFF Endel Koplimets  430 000G/SCM/Q2/EST/2
Page 8
7. Animafilmiturg MIFA 2000 (Animation film market Annecy)
A Film Eesti Kristel Tõldsepp  39 000
8. Animafestival Nordic Light (Animation film festival)
Eesti Animaliit Rao Heidmets  10 000
9. Transitzero seminar
Karlo Funk, Ilmar Raag, Rainer Sarnet,Märt Sildvee, Kristjan Virve, Rene Vilbre, Veiko Õunpuu 29 344
10. Young Filmmaker’s Scholarship
Arbo Tammiksaar   10 000
11. American Film Institute, grant for studies
Aare Tilk   137 050
12. Luukas copy restoration costs Freyja Film
Tõnu Virve Tõnu Virve 100 000
13. Ristumine peateega (film copy for festivals)
Acuba Film Arko Okk Arko Okk 19 660
Q2. What are the conditions attached to the granting of this subsidy?
Reply
EFF shall support production of Estonian films.  A film shall be deemed Estonian if it has
been produced by an Estonian independent film production company, if Estonian participation in the
artistic and technical performance has been substantial and proportional to the invested capital, but notless than 10 per cent of the total production costs of the film, if the film rights on the territory of
Estonia belong to an Estonian independent film production company and an Estonian language
version of this film is made.  Films made as international co-productions shall be treated as Estonian
if they meet the criteria specified in the present se ction. In the case any international agreements that
are binding for the Republic of Estonia, includin g the European Convention on Cinematographic Co-
production (see Riigi Teataja II, 1997, 11, 41), stipulate a procedure different from the one set forth in
the present Statutes, the provisions of the international agreement shall apply.
The amount of financial support granted by EFF shall not exceed 70 per cent —in 2000 for
production support for puppet animation films up to 80 per cent — of the master budget of the film
project.  The Board of the EFF has to determine the support limits by types of subsidy and film
categories for the current financial year. In 2000 the amounts of maximum support were:
Maximum development support for full-length feature films: 300 00 eek for two years
Maximum production support for full-length feature films: 4 000 000 eek per year, including the
development support and not exceeding 70 per cent of the total budget of the film
Maximum support for short (until 30 mintes) and simple documentary films on video: 200 000 eekMaximum support for short and complicated (many shooting days, complicated cuts) documentary
film on video: 250 000 eek
Maximum support for short documentary film on film: 350 000 eek
Maximum support for long documentary (exceeding 30 minutes) simple on vide: 250 000 eek
Maximum support for long documentary complicated on video: 350 000 eekMaximum support for long documentary on film: 500 000 eek
Maximum support for animation films: max 825 000 eek, but not exceeding 70 per cent of the total
budget of 10 minutes of drawing animation; and max 600 000 eek but not exceeding 80 per cent of the
total budget of the 10 minutes of the puppet animation
Maximum support for short films on video 400 000 eekMaximum support for short films on film 550 000 but not exceeding 80 per cent of the total budget of
the filmG/SCM/Q2/EST/2
Page 9
A film production company that has received financial support from EFF shall be obliged to
display the EFF logo visibly in the film credits. EFF association must be indicated by means of the
EFF logo or in some other manner also in case of all other supported film projects.
__________