G/SCM/Q2/TUR/33
23 March 2015
(15-1652)  Page: 1/2
Committee on Subsidies and Countervailing Measures  Original: English
 
SUBSIDIES 
ADDITIONAL QUESTIONS POSED BY THE UNITED STATES 
REGARDING THE SUBSIDIES NOTIFICATION OF TURKEY1 
The following communication, dated 20 March 2015, is being circulated at the request of the 
Delegation of the United States. 
_______________ 
 
1  QUESTIONS REGARDING PROGRAM INCLUDED IN THE NOTIFICATION (N/253) 
Export Subsidy Programme for Agricultural Products (Decree Nos.2012/2 and 2013/4) 
 
a. In a recent reply (G/SCM/Q2/TUR/32, November 14, 2014 ("TUR/32")) to U.S. questions 
(G/SCM/Q2/TUR/30, 31 July 2014 ("TUR/30")) re garding this program, Turkey explained 
that exporters' liabilities to various governmental agencies – such as taxes, social security premiums, etc. – are "covered by the Central Bank" via the exporters' bank 
accounts with the Central Bank. Please provide further clarification as to how exporters 
obtain benefits under the program, by providing responses to the following additional 
questions: 
1. What does "covered by the Central Bank" mean? How are the funds in these Central Bank 
accounts applied to the exporters' liabilities for taxes, social security premiums, etc.? 
 2. Do the exporters deposit any of their own funds into these accounts? 
 
3. If these accounts are funded by other than th e exporters themselves, what are the sources of 
the funds and how are the deposit amounts determined?  
4. For any deposits into these accounts that are not sourced from the exporters' own funds, what 
are the exporter's obligations, if any, in  terms of repayment of those deposits? 
 
5. What limits, if any, are there under this  program in terms of the maximum amounts of 
exporters' liabilities that may paid out of these accounts?  
b. Has Turkey notified its inward processing sch eme for wheat? If not please explain why. 
1. The Subsidies Agreement  requires that any domestic product that is substituted for an imported 
product under an inward processing scheme be of comparable quality and that a verification system aimed at tracking how much product is imported and exported under the system be 
maintained. Can Turkey describe the verification system it has in place? 
 2. How does Turkey ensure that the related imports and exports of wheat under the inward 
processing scheme are of comparable quality, and that the value of the certificates received upon 
export does not exceed the value of the duties that would have otherwise been paid?  
                                               
1 G/SCM/N/253/TUR (11 March 2014), Notification ("N/253"). G/SCM/Q2/TUR/33 
 
- 2 - 
 
  2  QUESTIONS REGARDING PROGRAMS PREVIOUSLY NOTIFIED AND OTHER PROGRAMS 
We note that TUR/32 did not provide any replies to a number of other U.S. questions posed 
in TUR/30, which Turkey's subsequent su pplemental notifications do not address.2 Could Turkey 
explain when we may expect replies to those qu estions? For reference, the questions were in 
regards to the following programs: 
 
1. Energy Support under Law 5084, as amended by Laws 5350 and 5615 2. Special Zones 3. Free Zones 
4. Income Tax Deductions for Export Revenue 
5. Tax Incentives for Employer's Share in Insurance Premiums  
Please refer to TUR/30 for the specific questions po sed by the United States in TUR/30 as to each 
of these programs.  
__________  
                                               
2 G/SCM/N/253/TUR/Suppl.1 (20 November 2014) and G/SCM/N/253/TUR/Suppl.2 (14 January 2015).