G/SCM/Q2/CHL/28  
21 November  2019 
(19-7964) Page: 1/5 
Committee on Subsidies and Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
REPLIES TO THE QUESTIONS POSED BY THE UNITED STATES1 REGARDING  
THE NEW AND FULL NOTIFICATION OF CHILE2 
The following communication, dated 19 November  2019, is being circulated at the request of the 
delegation of the  Chile. 
 
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Free Zones  
Question 1  
Are companies obligated to export to qualify for program me support?  
Reply 
No, the tax benefit is not subject to or associated with an y export requirements.  
Fund for the Promotion and Development of Remote Areas  
Question 2  
How is small -scale fishing defined under this program me? 
Reply 
Article 2.28 of the General Law on Fisheries and Aquaculture defines small -scale fishing as : an 
extractive fishing activity carried out by natural persons who personally, directly an d regularly work 
as small -scale fishers registered in the Small -Scale Fishing Registry , whether or not with the use of 
a small -scale fishing vessel . 
Without prejudice to the above, the definition of small -scale fishing also applies to extractive fishing 
activities carried out by legal entities  exclusively composed of  natural persons registered as 
small -scale fishers in accordance with the terms established in the Law . This exception shall apply 
only to vessel -owner s and organizations  of small -scale fishers . 
For the purpose of this Law, small -scale fishing activities shall be carried out by persons from one 
or more of the following  categories : small-scale fishing vessel -owners , small -scale fishers, divers, 
shore harvesters, seaweed collectors or freedivers : 
(a) Small -scale fishing vessel -owners : small-scale fishers , legal entities , as defined  in the 
second paragraph of Article  2.28,  or communit ies, as defined in the Civil Code , that are 
owners of up to two small -scale fishing vessels . 
                                                
1 G/SCM/Q2/CHL/27 (22  August  2019).  
2 G/SCM/N/343/CHL.  G/SCM/Q2/CHL/28  
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  In order to determine limitations  regarding  the ownership of small -scale fishing vessels, 
the status of  natural person s as associates  of any legal entity or communit y that owns 
a small -scale fishing ves sel, shall be taken into accou nt. Without prejudice to the above, 
the ownership of a maximum of one vessel by an organization of small -scale fishers, of 
which the vessel owner, as a natural person, is an associate or community member, 
shall not be taken into account for the purpose of establishing the above limits . The 
foregoing  will only be possible where the hydrobiological resource as a target species 
so permits.  
Where the  vessel -owner  is a community, the community shall be composed only of 
small -scale fishers, who all share responsibility for the payment of patents and of fines 
resulting from monetary penalties imposed in accordance wi th this Law, where 
applicable . 
This category only applies to small -scale fishers and divers.  
(b) Small -scale fishers : fishers who work as skippers or crew members on a small -scale 
fishing vesse l, irrespective of the manner in which  they are paid . 
(c) Diver s: persons who carry out a  diving  activity involving the extraction of 
hydrobiological resources , with air supplied from the surface  or autonomously . 
(d) Shore harvesters, seaweed collectors or freedivers : persons who carry out activities 
involving the extraction, harvesting or cutting of hydrobiological resources . 
The aforementioned categories  shall not be mutually exclusive, and therefore one person may qualif y 
for and carry out simultaneously  or successively the activities of two or more  categories , provided 
that the se activities  are all carried out in the same region , without prejudice to the exceptions set 
out in Title IV of the present Law.  
Small -Scale Fishing Promotion Fund  
Question 3  
How is small -scale fishing defined under this prog ramme? 
Reply 
See reply to question 2.  
Question 4  
What is the nature of the marketing assistance provided under this program me? 
Reply 
The purpose is to enable small -scale fishers  and organizations of small -scale fishers  to improve their 
production and/or commercial  management through the incorporation of infrastructure, technology, 
technical assistance and training at the different stages of the production processes.  
Question 5  
Please describe more fully the "national pu blic tender system".  
Reply 
The Small -Scale Fishing Promotion Fund comprises  a national competitive funds system and a 
regional agreements system, through which  legally constituted organizations of small -scale fishers 
throughout Chile submit  projects . Rules, requirements and time -frames have been established and 
suitable publicity has been ensured to increase participation by the organizations.  G/SCM/Q2/CHL/28  
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  The requirements for applying to these funds are established through the application of 
administrat ive provisions  approved  by a resolution, published electronically , which comprises  the 
following sections : introduction ; programme objectives ; stages of the competitive fund ; coverage of 
funds ; programme background information ; applications  (who can apply,  application requirements, 
documents to be submitted for the project application, application process, application date)  
administrative eligibility ; selection ; formalization ; contributions ; supervision and follow -up; final 
considerations . 
Fisheries Adminis tration Fund  
Question 6  
How is small -scale fishing defined under this program me? 
Reply 
See reply to question  2. 
Question 7  
What are some examples of the program mes and projects for the promotion and 
development of small -scale fisheries supported by the Fisheries Administration Fund ? Can 
fishing equipment be financed under this item?  
Reply 
Examples : 
Program me Overall objective  Specific objectives  
Small -scale fishing 
training, promotion 
and productive  
development in 
Region I (Reg ion of 
Tarapacá), BIP Code 
No. 30416289 -0 Contribute to the development of the small -scale 
fishing sector , by promoting and increasing 
small-scale fishing in the region of Tarapacá, 
with the aim of ensuring more efficient 
trade -union, trad ing and production capac ities. (1) Moderniz e the small -scale 
coastal fishing fleet in terms of 
the features of vessels  and 
on-board operational 
technology through the 
replacement of old  equipment 
with new equipment, without 
increasing fishing effort or 
power ; and improve production 
infrastructure and value added . 
(2) Maximiz e business management 
capacities.  
Small -scale fishing 
transfer in the 
Antofagasta region , 
2018-2020, BIP Code  
No. 40000077 -0 Comprehensive and high -cost projects, with the 
aim of promoting t he sustainable development of 
the fishing sector . It is necessary to : implement 
lines of action to improve the current status of 
fishing resources , through small -scale 
aquaculture and restocking ; strengthen the 
management of diversification, marketing and 
promotion of the consumption of products ; and 
improve and/or bolster sanitary conditions, 
whether for infrastructure, vessels or major 
equipment . (1) Promote aquaculture on a small 
scale and in management  
areas.  
(2) Improve production 
diversification and marketing . 
(3) Improve infrastructure  of ports 
and processing plants , and 
major equipment (for example, 
by replacing an old engine with 
a new one with the same 
horsepower  and operational 
capacity ). 
Programme for the 
promotion and 
productive 
development of the 
small-scale fishing 
sector in the region 
of Valparaíso, 
2017-2019, BIP Code 
No. 30483822.  Contribute to the increase in the real income of 
organizations of small -scale fishers through the 
divers ification of production, while taking into 
consideration the organizational strengthening 
and socio -economic stability of fishers in the 
small-scale fishing sector.  (1) Strengthen organizations of 
small-scale fishers through 
training workshops, to enable 
them to seize opportunities, 
strengthen weaknesses and 
minimize existing threats.  
(2) Increase the use, administration 
and operation of management  
areas (AMERB) , and small -scale 
aquaculture , to make them 
more efficient from a productive 
and economic point of view.  G/SCM/Q2/CHL/28  
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  Program me Overall objective  Specific objectives  
  (3) Encourage organizations of 
small-scale fishers to ensure 
operational continuity and to 
obtain added value from their 
catches.  
(4) Promote, strengthen and 
implement production 
diversification activities in the 
different coves used by fishers 
in the region of Valparaíso, to 
enable organizations to 
generate income to supplement 
their traditional fishing 
activities.  
BIP: Integrated Project Bank . Ministry of Social Development . 
Question 8  
Please describe in more detail what is meant by "fisheries recovery programs for 
small -scale fishers, crews of special vessels and factory workers".  
Reply 
Article 9A of the General Law on Fisheries and Aquaculture states that, where a fishery, in accordance 
with the established biological reference points , has been overfished or depleted, a recovery 
programme shall be established as part of a management plan, with the prior agreement of the 
Management Committee . The recovery programme shall, as a minimum : 
(a) assess a nd establish, in a transparent manner, the objectives and goals for the recovery 
of the fishery in the long term ; and develop a system to evaluate the attainment of 
these goals and objectives;  
(b) evaluate the efficiency of the administration and conservat ion measures, and determine 
the changes to be made in order to achieve the recovery of the fishery ; 
(c) evaluate the efficiency of the fishery control system and determine the changes to be 
made to increase its efficiency if the system does not receive a g ood evaluation;  
(d) evaluate the scientific research carried out and identify the changes to be made, where 
necessary;  
(e) take into account the economic and social effects of the adoption of the proposed 
measures;  
(f) consider the mitigation and compensat ion measures for small -scale fishers, crews of 
special vessels and factory workers ; and 
(g) for collapsing fisheries, assess and propose the alternate operation over time  of the 
fishing grounds  of certain fisheries, referred to in the first paragraph, by different fleets ; 
and assess the time restrictions for the use of certain  fishing gear or tackle in these 
fishing grounds.  
Once the fishery recovery programme has been established, it shall be evaluated in line with the 
frequency established in the respective management plan.  
Regarding subparagraph (f), mitigation and compensation shall be understood to mean any actions 
planned for the implementation of the administration and conservation measures adopted to ensure 
the recovery of the fishery,  which aim to reduce the negative economic and social effects resulting 
from the implementation of the recovery programme , by providing work alternatives and training 
which allow for the development of  new skills , and which mitigate the potential  loss of i ncome  of G/SCM/Q2/CHL/28  
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  small -scale fishers, processing plant workers and crews of special vessels , while the actions 
considered or set out in the recovery programme are being implemented . 
Mitigation and compensation actions shall not include any actions that promote an increase in fishing 
effort or in illegal fishing.  
Mitigation and compensation actions shall focus on specific groups and/or areas that demonstrate, 
through defined indicators , a need for mitigation/compensation , and shall target  individuals rather 
than fishing operations . 
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