G/SCM/Q2/RUS/9  
 
30 July 2014  
(14-4397)  Page: 1/2  
Committee on Subsidies and Countervailing Measures 
 Original: English  
 
 SUBSIDIES 
QUESTIONS POSED BY JAPAN REGARDING THE NEW 
AND FULL NOTIFICATION OF THE RUSSIAN FEDERATION1 
The following communication, dated 28 July 2014, is being circulated at the request of the 
Delegation of Japan.  
_______________ 
  
1.2 Auto Investment Programme 
 
Question 1  
Joint Order No.72/81/58n of 15 April 2005 amen ded by Joint Order No.678.1289/184n of 
24 December 2010 ("Auto Investment Program") provid es preferential tariffs or tariff exemptions 
for imports of parts and components used in "industrial assembly" programs for motor vehicles 
and parts and components thereof, imposing a local content requirement. "Industry assembly 
mode" is defined as a system of batch production on the basis of technological processes in double-shift operation under the Auto Investment Program. 
 
(i) Are there any other subsidy programs executed or planned with regard to automobile manufacture industry for the target companies of Auto Investment Program? For example, Decrees 29 to 32 as of 15 January 2014 with regard to subsidies to Russian auto producers require 
"industry assembly mode" as one of the conditions to obtain the subsidies. Are the target 
companies of Decrees of 15 January 2014 and Auto Investment Program the same? Please describe the difference between them, if any.  
 
(ii) (a) Decrees of 15 January 2014 do not provide the definition of "industrial assembly mode". Please describe the difference of the definition of "industrial assembly mode" between Auto 
Investment Program and Decrees of 15 January 2014, if any. 
 
(b) Is there any local content requirement to obtain the subsidies under Decrees of 
15 January 2014? If so, please describ e the details of such requirement. 
 
1.3 Support of Sales Volume in the Automobile Industry 
 
Question 2 
 According to the notification, the recipient of th is subsidy is Russian credit institution and the 
policy objective of this programme is the support of sales volume and income of the domestic 
motor vehicle producers.  (i) Please provide the detailed eligibility criteria for receiving the support from the government 
and describe the performance requiremen t required to receive the support. 
 (ii) Is the subsidy provided based on transaction to transaction on an application from credit 
institutions to the government or automatically granted based on an umbrella contract between 
                                               
1 G/SCM/N/253/RUS/Rev.1. G/SCM/Q2/RUS/9 
 
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  the government and a credit institution whereby the credit institution conducts the support on a 
behalf of the government?  (iii) Please explain the purpose of the limitation of eligible vehicles based on weight and price 
and please provide a percentage of the eligible vehicles in total. 
 1.4 Encouragement of Private Pe rsons to Purchase New Cars 
 
Question 3  According to the notification, the recipient of this subsidy is Russian trading organization and the 
policy objective of this programme is improvement of road safety and stabilization of the ecological 
situation in the Russian Federation.  
(i) Please provide the detailed eligibility criteria for receiving the support and definition of 
"Russian trading organization".  
(ii) Is the subsidy provided based on an application from the organizations or automatically 
granted based on the condition under such as an agreement with the government?  (iii) With respect to the provision (b) of the Ar ticle III:8 of GATT 1994, please explain the view 
about the relationship with this subsidy progra mme and the payment of subsidies exclusively to 
domestic producers.  
(iv) Please explain the relationship between the objective of "safety and ecology" and the 
requirements including a condition of "produced in Russia".  
 
 
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