G/SCM/N/343/HKG  
 
1 July  2019 
(19-4394) Page: 1/7 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
 
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON SUBSIDIES  
AND COUNTERVAILING M EASURES  
HONG KONG, CHINA 
The following communication, dated 27 June 2019, is being circulated at the request of the 
delegation of Hong Kong , China.  
 
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Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and 
Countervailing Measures  (ASCM) , Hong Kong, China submits herewith the new and full notification  
for the financial year ending 31 March 2019 . In accordance with Article 25.7 of the ASCM, the 
notification of the measures concerned does not prej udge their legal status, effects or nature under 
the GATT 1994 and the ASCM . 
1  FISHERIES DEVELOPMEN T LOAN FUND  
1. Title of the programme  
Fisheries Development Loan Fund . 
2. Period covered by the notification  
Financial year ending 31 March 2019 . 
3. Policy objective and/or purpose  
a) To provid e one -off loans for owners of trawlers and fish collectors affected by the trawl 
ban1 to, without increasing the overall fishing efforts, upgrad e their vessels to standards 
required for operations outside Hong Kong waters , switch to more sustainable fisheries 
operations and other fisheries -related operations, or carry out projects that  will reduce 
fuel consumption or the carbon footprint of their operations . The deadline of application 
was 31.12.2015 ; 
b) To provide loans for capture fishermen and owners of fish collectors to, without increasing 
the overall fishing efforts, switch to more s ustainable fisheries operations and other 
fisheries -related operations, or carry out projects that will reduce fuel consumption or the 
carbon footprint of their operations; and  
c) To provide loans that help fish farmers develop aquaculture , or improve their a quaculture 
businesses leading to more environmentally friendly operations or better aquaculture 
products in terms of quality and food safety standards.  
                                                
1 All trawling activities in Hong Kong waters have been banned since 31 December 2012.  G/SCM/N/343/HKG  
 
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  4. Background and authority  
The Fund is administered by the Agriculture, Fisheries and Conservation Department to facilitate the 
sustainable development of the fisheries  industry.  
5. Form 
Loan. 
6. To whom and how the assistance is provided  
Applicants for loans under 3(a) and 3(b) above must be Hong Kong residents and owners of local 
fishing vessel s or fish collector s, holding valid licences necessary for their operations; or locally 
registered fisheries co -operative societies/companies with the majority of their 
members/shareholders being local capture fishermen who fulfil the aforementioned criteria . 
Applicants for the loans under 3(a)  also have to prove that they are genuinely affected by the trawl 
ban. 
Applicants for loans under 3(c) above must be Hong Kong residents, holding valid lic ences necessary 
for operating their aquaculture businesses; or locally registered fisheries co -operative 
societies/companies with the majority of their members/shareholders being local aquaculture 
operators who fulfil the aforementioned criteria.  
An intere st rate of 1% per annum is applied to the  loans under 3(a) above ; 2.5% per annum  for the 
loans under 3(b) above ; and at an interest rate based on the "No Gain No Loss" principle of the 
Hong Kong Special Administrative Region (HKSAR) Government for the loans under 3(c)  above. The 
"No Gain No Loss" rate is set by taking into account factors such as the best lending rates of the 
note-issuing banks in Hong  Kong.  
7. Amount  
HKD 109,936,000 . 
8. Duration  
On-going , except for 3(a) above  which is no longer open for application and will be terminated when 
all outstanding loans are repaid . 
9. Statistical data permitting an assessment of the trade effects  
Not available . 
2  FISH MARKETING ORGAN IZATION LOAN FUND  
1. Title of the programme  
Fish Marketing Organization Loan Fund. 
2. Period covered by the notification  
Financial year ending 31  March 2019 . 
3. Policy objective and/or purpose  
To provide loans for fishermen to meet their operational and sustainable development needs, 
including  the repair and replacement of fishing vessels, gear and equipment; assisting fishermen to 
tide over the annual fishing moratorium.  G/SCM/N/343/HKG  
 
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  4. Background and authority  
The Fund is set up  by the Fish Marketing Organization (FMO), a statutory body established under 
the Marine Fish (Marketing) Ordinance (Cap. 291), with funding /injections from both FMO and the 
HKSAR Government.   Agriculture, Fisheries and Conservation Department and FMO are involved in 
the administration of the Fund.  
5. Form 
Loan. 
6. To whom and how the assistance is provided  
Applicants must be a member of a registered fishermen's co -operative society or a registered fishing 
company , or a local fisherman who:  
• holds a valid fishing vessel licence issued by the Marine Department;  
• is a bona fide fisherman ; 
• markets or intends to market his catches through FMO; and  
• fulfils other requirements as specified by FMO.  
There are two types of loans that may be granted under the Fund: (i)  general loans, and (ii)  special 
one-year loans for fishermen affected by the annual fishing moratorium in the South  China Sea. Th e 
interest rates applicable in the financial year ending 31 March 2019  were as follows:  
• general loans: 2.958%  per annum for individual fishermen, and 1.458% per annum  for 
members of registered co -operative societies  (as at 31.3.2019) ; 
• special one -year loans: 1% per annum . 
7. Amount  
The amount of loans issued  for the special one -year loans was HK D 105,250,000 and nil for general 
loans.  
8. Duration  
On-going . 
9. Statistical data permitting an assessment of the trade effects  
Not available . 
3  KADOORIE AGRICULTURA L AID LOAN FUND  
1. Title of the programme  
Kadoorie Agricultural Aid Loan Fund . 
2. Period covered by the notification  
Financial year ending 31  March 2019 . 
3. Policy objective and/or purpose  
To provide loans for fish farmers and farmers to meet  development and working capital  needs, 
including the purchase of necessary inputs for production such as stocks , fry and feed, as well as G/SCM/N/343/HKG  
 
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  improvement of farm facilities for enhancing productivity . 
4. Background and authority  
The Fund is established under the Kadoorie Agricultural Aid Loan Fund Ordinance (Cap. 1080) with 
donations/injections from both non -government sourc es and the HKSAR Government.  
5. Form 
Loan. 
6. To whom and how the assistance is provided  
Applicants must be fish farmers and farmers and the interest rates applicable in the financial year 
ending 31 March 2019  were as follows:  
• loans not exceeding HK D 130,000: 0.09375%  per annum  for development capital, and 
0.125%  per annum  for working capital;  
• loans exceeding  HKD 130,000  but not exceeding  HKD 200,000: 2.16665%  per annum ; 
• loans at HK D 200,000  and above: 4.2083%  per annum . 
7. Amount  
HKD 640,000 . 
8. Duration  
On-going . 
9. Statistical data permitting an assessment of the trade effects  
Not available . 
4  SUSTAINABLE FISHERIE S DEVELOPMENT FUND  
1. Title of the programme  
Sustainable Fisheries Development Fund . 
2. Period covered by the notification  
Financial year ending 31  March  2019. 
3. Policy objective and/or purpose  
To fund programme s, projects and research that would contribute to fostering the sustainable 
development of the fisheries industry and bring benefits to the operations of the local fisheries 
community as a whole.  Projects that may benefit from the Fund include those that provide technical 
assistance and training in fishing operations, support for fishermen to switch to other fisheries or 
sea related operations following implementation of the tra wl ban in Hong Kong waters since 
December 2012, assistance for local  fishermen and aquaculturists  to modernise their operations and 
monitoring and assessment of the effectiveness of the sustainable fisheries management measures 
implemented in Hong  Kong.  I n general, projects should be non -profit making in nature . 
4. Background and authority  
The Fund is administered by the Agriculture, Fisheries and Conservation Department.  It is open for 
applications since July 2014.  G/SCM/N/343/HKG  
 
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  5. Form 
Grant . 
6. To whom and how the assistance is provided  
a) Legal entities  which should be a company incorporated in Hong Kong  under the  Companies 
Ordinance (Cap. 622) and has substantial connection to  Hong Kong  or a body corporate 
incorporated in Hong Kong  under  other Ordinances of the HKSAR , and having 
demonstrated a close connection with the fisheries  industry in Hong Kong. These include 
local registered fisheries  co-operatives, non -profit  making fisheries organi sations, non -
governmental  organi sations or social ente rprises; and  
b) Academic and  research institutions in Hong Kong . 
An application fulfilling the assessment criteria will be considered, vetted and awarded on its 
individual  merits (including the efficacy  of the project and the capacity and capability of the 
applicant) .  If there are initiatives that aim to demonstrate the technical feasibility and commercial 
viability of new fisheries practices which may subsequently be transferred to other stakeholders 
within the fisheries industry, such initiatives with commercial elements will be f unded on a dollar -
for-dollar matching basis, with the HKSAR Government's total contribution capped at the applicant's 
total contribution. The HKSAR Government will recoup the cost commensurate with its share of 
contribution.  
7. Amount  
HKD 9,431,000 . 
8. Duration 
The Fund has an approved commitment of HK D 500 million. Its continuation  is contingent upon the 
availability of fund s. 
9. Statistical data permitting an assessment of the trade effects  
Not available . 
5  RECYCLING  FUND  
1. Title of the programme  
Recycling  Fund. 
2. Period covered by the notification  
Financial year ending 31 March 2019 . 
3. Policy objective and/or purpose  
To promote the recovery and recycling of waste  as well as the sustainable development of the 
recycling industry  thus reducing disposal at local landfills,  through funding projects which 
demonstrate potential to:  
a) raise the quantity and quality of recyclables recovered from the waste stream as well 
as those of recycled products, thus reducing disposal at local landfills;  
b) promote the development  of markets for recycled products, thus providing greater 
impetus to local landfill diversion; and  G/SCM/N/343/HKG  
 
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  c) enhance the overall capability, capacity, efficiency and skills as well as market 
information of the recycling industry, thus facilitating its sustainable development.  
4. Background and authority  
The Fund was established in October 2015 with a non -recurrent commitment of HKD 1 billion by the 
HKSAR Government. Two funding programmes have been established under the Fund.  
Enterprise Support Programme  
Enterprise s with demonstrated connection s with the recycling industry in Hong Kong are eligible to 
apply for a matching fund  up to HK$5 million  for each project to upgrade and expand their waste 
recycling operations.  Eligible  expenditure items include capital costs for the purchase of equipment  
and operating costs (e.g. additional manpower costs, cost of promotion and publicity ). 
Industry Support Programme  
Non-profit distributing organisations  may apply for the Fund to undertake non -profit making projects 
for enhanci ng the operational standards and productivity of the recycling industry , through  
upgrading the skills of incumbent and potential employees of the  recycling industry , enhancing the 
occupational safety standard of the operations,  expanding the potential workforce  of the industry , 
as well as developing  certification schemes for recycling operations.  The grant may cover up to 
100% of approved expenditure items with a ceiling of HK$15 million  per project . 
An Advisory Committee on Recycling Fund  has been set up to advise and make recommendations 
to the Environment Bureau on matters relating to the overall administration  and operation of the 
Fund.  
5. Form 
Grant. 
6. To whom and how the assistance is provided  
Enterprise Support Programme  
Any enterprise which has been duly established, incorporated and registered in Hong Kong under 
the laws of Hong Kong or its place of incorporation  with a valid business registration certificate  issued 
under the Business Registration Ordinance  (Cap. 310) , and has been operating a substantive 
business operation  in Hong Kong. The enterprise should have been involved in recycling related 
operation s for at least one year  prior to submitting a relevant  application . 
Key features of the assistance programme : 
• A funding limit of HK D 5 million per application ; 
• A funding up to 50% of approved expenditure items;  
• A maximum  of three approved projects and a cumulative  funding cap of HK D 5 million per 
enterprise;  
• Each approved project should be completed within two years;  and 
• Approved f unding is provided on a reimbursement basis . 
Industry Support Programme  
Non-profit distributing organisations such as professional bodies, trade and industry organisations, 
research institutes and other industrial support organisations, either a statutory organisation or 
organisation , registered under the laws of Hong Kong . G/SCM/N/343/HKG  
 
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  Key features of the assistance scheme : 
• A funding limit of HK D 15 million per application;  
• A funding up to 100% of approved expenditure items;  and 
• Approved f unding is p rovided on a reimbursement basis.  
7. Amount  
HKD 53 million . 
8. Duration  
The Fund is open for applications until October 2020 . 
9. Statistical data permitting an assessment of the trade effects  
Not available . 
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