WORLD TRADE G/SCM/N/25/JPN/Suppl.1
4December 1997
ORGANIZATION(97-5318)
Original: English Committee onSubsidies
andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI.1 oftheGATT 1994 andArticle 25
oftheAgreement onSubsidies andCountervailing Measures
JAPAN
Supplement
Thefollowing communication, dated 24November 1997, hasbeenreceived fromthePermanent
Mission oftheJapan.
_________________
Japan submits thisnotification inaccordance withitsobligation under Article XVI:1 ofthe
General Agreement onTariff andTrade (GATT) 1994andArticle 25oftheAgreement onSubsidies
andCountervailing Measures ("Agreement" hereinafter).
Inthisnotification, Japan hasincluded certain activities which itdoesnotregard as"subsidies"
within themeaning oftheAgreement, inorder toachieve themaximum transparency withregard to
programmes andmeasures effective within itsterritory.
Japan recognizes that,inaccordance withArticle 25.7ofthe"Agreement", thenotification
ofsuchprogrammes andmeasures doesnotprejudge theirlegalstatus, theeffects orthenature under
GATT 1994 andtheAgreement.
Furthermore, thenotification doesnotprejudge thenon-actionable nature ofcertain programmes
ormeasures under footnote 35toArticle 10oftheAgreement, orthenon-actionable status thata
programme orameasure would haveunder Article 8oftheAgreement, haditbeennotified according
totheprovisions ofArticle 8.3.G/SCM/N/25/JPN/Suppl.1
Page2
CONTENTS
Page
1. Support forBusiness Innovation ...................................2
2. Interest Subsidy, Equity Capital Infusions andLoan Guarantees ...............4
3. Capital Investment andLoan forF&D Projects concerning KeyTechnology .......5
4. TheIndustrial Science andTechnology Frontier Programme (ISTF) ............6
5. TheNewSunshine Programme ...................................7
6. Development Expenditure Subsidies fortheCommercialization
ofEnergy-Related Technology ....................................8
7. Subsidy fortheTechnology Development ofIntegrated Coal
Gasification Combined Cycle Power Generation Plant .....................10
8. TheRealWorld Computing (RWC) Programme .........................11
9. Subsidy toPromote andFoster NewEnterprises of
theResearch andDevelopment Type orKnowledge-Intensive Type .............12
1. SUPPORT FOR BUSINESS INNOVATION
1. Titleofthesubsidy programme
Support forBusiness Innovation
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Tofacilitate business innovation byenterprises inresponse todiverse andstructural changes
inthedomestic andinternational economic environment.
4. Background andauthority forthesubsidy
Competent Ministers (Minister ofInternational Trade andIndustry, Minister ofAgriculture,
ForestryandFisheryandMinisterofTransport)administertheLawonTemporaryMeasurestoFacilitate
Business Innovation.
Enterprises which operate abusiness belonging tothesectors designated byaCompetent
Ministers 'order andareapproved bytheCompetent Minister areeligible toapply totaxauthorities,
governmental financial institutions and/or Industrial Structure Improvement Fundforcertain supporting
measures suchastaxconcessions, loans and/or aloanguarantee.
5. Legislation under which itisgranted
TheLawonTemporary Measures toFacilitate Business Innovation.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
TaxConcession, Loan and/or Loan Guarantee.G/SCM/N/25/JPN/Suppl.1
Page3
7. Towhom andhowthesubsidy isprovided
Enterprises which operate abusiness belonging tothesectors designated byaCompetent
Ministers 'order andareapproved bytheCompetent Minister.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
(Unit: ¥million)
1995FY 1996FY 1997FY
Taxconcession N.A. N.A. N.A.
Loan 900 2,600 6,950
Loan guarantee 700 0 0
* Thefigures inthetableindicate thetotalamounts loaned orguaranteed.
9. Duration ofasubsidy and/or anyother timelimits attached toit
April 1995-June 2002.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
Production ofMain Industries
(Unit: ¥million)
1994Y 1995Y 1996Y
Ammonia industry 21,938 20,962 21,486
Cement industry 705,087 669,756 690,871
Scale industry 81,933 88,104 91,630
Wooden furniture industry 1,759,529 1,742,072
Rubberbelt industry 94,928 97,049 96,972
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
Page4
2. INTEREST SUBSIDY, EQUITY CAPITAL INFUSIONS AND LOAN GUARANTEES
1. Titleofthesubsidy programme
Interest Subsidy, Equity Capital Infusions andLoan Guarantees under theLawonTemporary
Measures toFacilitate Industrial Structural Adjustment.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Toattain economic stability anddevelopment forthesakeofprogress ofinternational economy
byfacilitating industrial structural adjustment.
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
TheLawonTemporary Measures toFacilitate Industrial Structural Adjustment.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Thefollowing subsidies were provided through theIndustrial Structure Improvement Fund
(ISIF).
(i) Interest ratesubsidy;
(ii) Equity capital infusions;
(iii) Loan guarantees.
7. Towhom andhowthesubsidy isprovided
Corporations invested bylocalgovernments ineconomically distressed areas ...(i),(ii).
Enterprises which construct newly orextend afactory inthose areas ...(i).
Enterprises which intend toinvent anewbusiness inthose areas ...(iii).G/SCM/N/25/JPN/Suppl.1
Page5
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
(Unit: ¥million)
(i)Interest subsidy (ii)Equity capital
infusions(iii)Loan guarantees
1994FY 542 - -
1995FY 458 - -
1996FY - - -
9. Duration ofasubsidy and/or anyother timelimits attached toit
April 1987-May 1996.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
3. CAPITAL INVESTMENT AND LOAN FOR R&D PROJECTS CONCERNING KEY
TECHNOLOGY
1. Titleofthesubsidy programme
Capital Investment andLoan forR&D Projects concerning KeyTechnology.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Tofacilitate R&D projects concerning keytechnologies intheprivate sector.
4. Background andauthority forthesubsidy
TheJapan KeyTechnology Centre.
5. Legislation under which itisgranted
LawfortheFacilitation ofResearch inKeyTechnologies.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
Page6
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Capital Investment Loan.
7. Towhom andhowthesubsidy isprovided
Enterprises and/or non-profit organizations which haveability tocarry outR&D projects
concerning keytechnology.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
(Unit: ¥million)
Capital investment Loan
1995FY (settlement ofaccounts) 20,600 6,334
1996FY (settlement ofaccounts) 19,858 4,486
1997FY (budget) 19,700 9,100
9. Duration ofasubsidy and/or anyother timelimits attached toit
Thisprogramme wasstarted inOctober 1985, andnotimelimitisattached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
4. THEINDUSTRIALSCIENCEANDTECHNOLOGYFRONTIERPROGRAMME(ISTF)
1. Titleofthesubsidy programme
TheIndustrial Science andTechnology Frontier Programme (ISTF)
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Tocontribute tosustainable economic development andtheimprovement ofpublic welfare
through fundamental andcreative R&D.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
Page7
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Contract.
7. Towhom andhowthesubsidy isprovided
Research organizations such ascompanies, research associations, public corporations or
universities which areentrusted bytheNEDO; apublic body.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Fiscal year1995 (settlement ofaccounts) ¥22,386 million
Fiscal year1996 (settlement ofaccounts) ¥24,920 million
Fiscal year1997 (budget) ¥29,570 million
9. Duration ofasubsidy and/or anyother timelimits attached toit
Theprogramme wasstarted inApril 1993, andnotimelimitisattached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
5. THE NEW SUNSHINE PROGRAMME
1. Titleofthesubsidy programme
TheNewSunshine Programme.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Topromotetheinnovativetechnologydevelopmentwhichsupportssustainableeconomicgrowth
andsolves energy andenvironmental issues.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
Page8
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Contract.
7. Towhom andhowthesubsidy isprovided
Research organizations such ascompanies, research associations, public corporations or
universities which areintrusted bytheNEDO; apublic body.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Fiscal year1995 (settlement ofaccounts) ¥42,476 million
Fiscal year1996 (settlement ofaccounts) ¥42,339 million
Fiscal year1997 (budget) ¥48,196 million
9. Duration ofasubsidy and/or anyother timelimits attached toit
Theprogramme wasstarted inApril 1993, andnotimelimitisattached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
6. DEVELOPMENT EXPENDITURE SUBSIDIES FOR THE COMMERCIALIZATION
OFENERGY-RELATED TECHNOLOGY
1. Titleofthesubsidy programme
Development Expenditure Subsidies fortheCommercialization ofEnergy-Related Technology.
2. Period covered bythenotification
January 1995-March 1997.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
Page9
3. Policy objective and/or purpose ofthesubsidy
Tocontribute totheestablishment ofthestable andrational structure insupply anddemand
ofenergy, thereduction oftheoil-dependent proportion andthestable supply ofelectric power.
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Thesubsidies areprovided intheform ofreimbursable grant.
7. Towhom andhowthesubsidy isprovided
Enterprises which haveability tocarry outtheR&D projects ofenergy-related technology.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
(Unit: ¥million)
1995FY (settlement ofaccounts) 3,396
1996FY (settlement ofaccounts) 3,595
1997FY (budget) 3,451
9. Duration ofasubsidy and/or anyother timelimits attached toit
April 1980-March 2000.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
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7. SUBSIDY FOR THE TECHNOLOGY DEVELOPMENT OFINTEGRATED COAL
GASIFICATION COMBINED CYCLE POWER GENERATION PLANT
1. Titleofthesubsidy programme
Subsidy fortheTechnology Development ofIntegrated CoalGasification Combined Cycle
Power Generation Plant.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Todevelop thetechnology forIntegrated CoalGasification Combined Cycle Power Generation.
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Grant.
7. Towhom andhowthesubsidy isprovided
ThesubsidyisprovidedtotheNewEnergyandIndustrialTechnologyDevelopmentOrganization
(NEDO).
Note: TheNEDO isentrusting thetechnology development totheEngineering Research Association
forIntegrated CoalGasification Combined Cycle Power System.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Fiscal year1995 (settlement ofaccounts) ¥4,269 million
Fiscal year1996 (settlement ofaccounts) ¥2,240 million
Fiscal year1997 (budget) ¥980 million
9. Duration ofasubsidy and/or anyother timelimits attached toit
April 1986-March 1998.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
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8. THE REAL WORLD COMPUTING (RWC) PROGRAMME
1. Titleofthesubsidy programme
TheRealWorld Computing (RWC) Programme.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Toestablish fundamental technologies fornext-generation information processing.
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Contract.
7. Towhom andhowthesubsidy isprovided
TheRealWorld Computing Partnership (RWCP).
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Fiscal year1995 (settlement ofaccounts) ¥5,662 million
Fiscal year1996 (settlement ofaccounts) ¥4,559 million
Fiscal year1997 (budget) ¥5,846 million
9. Duration ofasubsidy and/or anyother timelimits attached toit
April 1992-March 2001.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.G/SCM/N/25/JPN/Suppl.1
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9. SUBSIDY TOPROMOTE AND FOSTER NEW ENTERPRISES OFTHE RESEARCH
AND DEVELOPMENT TYPE ORKNOWLEDGE-INTENSIVE TYPE
1. Titleofthesubsidy programme
Subsidy toPromote andFoster NewEnterprises oftheResearch andDevelopment Type or
Knowledge-Intensive Type.
2. Period covered bythenotification
January 1995-March 1997.
3. Policy objective and/or purpose ofthesubsidy
Topromote venture business andknowledge-intensive business ofSMEs.
4. Background andauthority forthesubsidy
TheMinistry ofInternational Trade andIndustry.
5. Legislation under which itisgranted
Assistance bybudget.
6. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Grants.
7. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided totheVenture Enterprise Centre (VEC). TheVEC provides loan
guarantees toSMEs which conduct thebusiness oftheR&D typeorknowledge-intensive type, using
thesubsidy.
8. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy
Fiscal year1995 (settlement ofaccounts) ¥271 million
Fiscal year1996 (settlement ofaccounts) ¥0
Fiscal year1997 (budget) ¥0
9. Duration ofasubsidy and/or anyother timelimits attached toit
Thesubsidy wasstarted in1975, andnotimelimitisattached toit.
10. Statistical datapermitting anassessment ofthetrade effects ofasubsidy1
N.A.
1Statistics ofproduction, consumption, imports andexports:
(i) forthethree most recent years forwhich statistics areavailable;
(ii) foraprevious representative year, which, where possible andmeaningful, should bethelatest period
preceding theintroduction ofthesubsidy orpreceding thelastmajor change inthesubsidy.