G/SCM/Q2/TPKM/25  
26 September  2019 
(19-6202) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
 SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED  STATES REGARDING TH E  
NEW AND FULL NOTIFIC ATION OF THE SEPARAT E  
CUSTOMS TERRITORY OF  TAIWAN, PENGHU,  
KINMEN AND MATSU2 
The following communication, dated 25 September  2019, is being circulated at the request of the 
delegation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu . 
 
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Interest Subsidy  
Question 1  
Please explain whether marine capture fisheries sector can benefit from this program.  
Reply  
The interest subsidy program relates to low -interest loans provided by the Agricultural Development 
Fund that allow fishermen to gain access to the 19 policy -oriented loans. Pursuant to Articles 4, 6, 
8, 11, 12, 15, 16, and 19 of the "Special Policy -Orient ed Agricultural Loan Program ", low-interest 
loans are available to fishermen who are actually engaged in fishing activities, fishermen 's groups, 
and cooperatives. Therefore, marine fishermen are included in the program and are eligible to apply 
as long as the applications they submit are for financial assistance to buy machinery or to pay for 
operational expenses.  
Fishing Vessels Buy -Back Program  
Question 2 
Please explain whether any incentives were provided to upgrade or modernize fishing 
vessels under thi s program.  
Reply  
According to the "Operational Procedures to Buy Back and Process Fishing Vessels and Rafts, " 
enacted in 2016 and 2018, this buy -back project was implemented in order to reduce fishing capacity 
by buying back the entire fishing vessels or r afts from the fishermen. No incentives were provided 
for upgrading or modernizing the fishing vessels in the program.  
                                                
1 G/SCM/Q2/TPKM/24.  
2 G/SCM/N/343/TPKM.  G/SCM/Q2/TPKM/25  
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  Fishing Vessels Insurance Reward  
Question 3 
The notification states the incentives are provided for insuring "fishing vessels against 
marine disasters ". Please explain the type of disasters covered under this program.  
Reply  
The "Fishing Vessels Insurance Reward Program " covers the types of damage mo st commonly 
suffered by fishing vessels. A total of 10 types of disasters are covered under this program, including 
non-human -caused disasters at sea, natural disasters such as earthquakes, volcanic eruptions, or 
lightening, and any accidental disasters su ch as fire or explosions occurring on oceans, rivers, lakes, 
or navigable waters.  
Protection and Indemnity Insurance for Fishing Vessels operating in the Maritime Area 
Subject to the Fisheries Agreement Between the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu and Japan  
Question 4 
Please provide further information on the amounts of the subsidy.  
Reply  
In accordance with the "Regulations Governing Indemnity Insurance for Owners of Powered Fishing 
Vessels Operating in the Maritime Area Subject to the Fisheries Agreement between the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu and Japan ", the program subsidizes 50% 
of the insurance premium and sets the maximum amount of the subsidy on the basis of the gross 
tonnage of th e fishing vessel, e.g., (a) for gross tonnage below 50 tons, the maximum amount is 
NT$24,000; (b) for gross tonnage over 50 tons, the maximum amount is NT$28,800. The 2019 
budget for this subsidy program is NT$3,993,000, but no applications have yet been r eceived.  
Other Programs  
Question 5 
Publicly available information indicates that Chinese Taipei may maintain support 
programs for the fisheries sector that were not reported in its notification. Please explain 
why these programs were not notified:  
a. Disast er relief payments for marine capture fisheries;  
Reply  
The "Regulation Governing Fishery Natural Disaster Reporting and Relief Procedure " was 
promulgated in accordance with the "Implementation Rules of Agricultural Natural Disaster Relief 
(The Rules) ". We intentionally did not report this program because the Rules subsidize natural 
disasters not only in the fishery sector but also in the agriculture, livestock, and forestry sectors.  
b. Income support and unemployment insurance for fishers;  
Reply  
Currently, th e Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu provides no income 
support to fishers. If the U.S. refers to the unemployment insurance prescribed in the Labor 
Insurance Act (the Act), it will see that the Act does not subsidize fishers ex clusively. As long as 
participation in the labor insurance scheme of the Act is open to any laborers, any insured laborer 
may claim unemployment compensation once they are unemployed, pursuant to the provisions of G/SCM/Q2/TPKM/25  
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  the Act. Such subsidy is therefore a socia l insurance scheme not limited exclusively to the fishing 
sector.  
c. Grants to support the expansion of acqu -culture production;  
Reply  
Currently , the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu does not provide 
such subsidy.  
d. Second stage energy saving waterwheel subsidy program;  
Reply  
The Aquaculture Development Association has been conducting the project "Establishing an Energy 
Saving and Carbon Reduction Aquaculture Production Model " in 2019. The project was approved 
under the "Rural Rejuvenation Fund " and is one of the "Demonstration  Projects for Assisting Rural 
Industry Rejuvenation ". It is not, therefore, a regular subsidy aimed exclusively at the fishing sector, 
but a subsidy program for rural areas.  
e. Morakot Special Program.  
Reply  
According to the "Morakot Typhoon Post -Disaster Ind ustry Recovery Program ", this is a non -specific 
program and a national plan for recovering areas damaged by natural disasters. Because this 
program is not aimed exclusively at the fishing sector, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and  Matsu does not specifically  report it . 
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