G/SCM/N/284/GRD  
G/SCM/N/315/GRD  
G/SCM/N/299/GRD  
 
21 April 2017  
(17-2179) Page: 1/7 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
FINAL TRANSPARENCY N OTIFICATION (FOR 201 5) PURSUANT TO THE P ROCEDURES IN  
THE GENERAL COUNCIL DECISION I N DOCUMENT WT/L/691 ON THE EXTENSIONS  
UNDER SCM ARTICLE 27 .4 OF THE TRANSITION  PERIOD FOR THE  
ELIMINATION OF EXPOR T SUBSIDIES  
GRENADA  
The following notification, dated 2 0 April 2017, is being circulated at the request of the delegation 
of Grenada . 
 
______ _________  
 
 
The Government of Grenada presents its compliments to the Central Registry of Notifications of 
the Secretariat of the World Trade Organization (WTO).  
 
We hereby submit to the Committee on Subsidies and Countervailing Measures, Grenada's New 
and Full Notification on Current Incentive Programmes under Article XVI:1 of the GATT 1994 and 
Article 25  of the SCM Agreement. We also submit this notification for purposes of transparency in 
the context of the extensions granted to Grenada under Article 27. 4 of the SCM Agreement, 
pursuant to the procedures in WT/L/691.  
 
Please be informed, that not all elements of the notified programmes, including subsidies provided 
thereunder, necessarily involve export subsidies.  
 
Grenada wishes to reiterate that, in keep ing with Article 25.7 of the Agreement on Subsidies, this 
notification does not prejudice the legal status of the notified programmes under the GATT 1994 or 
the said Agreement, their effects under the Agreement or the nature of the programmes or 
measures; furthermore, notification of a programme or measure does not prejudice its actionable 
or non -actionable nature.  G/SCM/N/284/GRD • G/SCM/N/315/ GRD • G/SCM/N/299/GRD  
 
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  I. STATUTORY RULES AND ORDERS NO. 37 OF 199 9 (LIST OF CONDITION AL DUTY 
EXEMPTION - CARICOM COMMON EXTER NAL TARIFF)  
A. Description of the progra mme  
1. Title of the subsidy programme if relevant, or brief description or identification of the 
subsidy  
The list of Conditional Duty Exemptions sets out the goods which, when imported, may be 
admitted free of import duty or at a rate that is lower than se t out in the Schedule of rates.  
2. Period covered by the notification  
As of 1 July 2014 - 30 June 2016 – programme status.  
3. Policy objective and/or purpose of the subsidy  
To provide for the development of Grenada's priority economic sectors, social servi ces, public 
services and matters relating to Grenada's regional and international obligations.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Background  
This legislation was passed in ord er to introduce the new Common External Tariff based on the 
Harmonized Commodity Description and Coding system, in accordance with legal obligations falling 
upon Grenada by virtue of our adherence to membership in the Caribbean Common Market 
(CARICOM).  
CARICOM Common External Tariffs, Statutory Rules and Order 42 of 2009 has been revised based 
on the Harmonised Commodity Description and Coding System 2012 and is now the CARICOM 
Common External Tariff Statutory Rules and Orders No. 13 of 2014.  
Authority  
CARICOM Common External Tariff, Statutory Rules and Order No. 42 of 2009.  
The relevant Ministries together with the Comptroller of Customs are responsible for administering 
this legislation.  
5. Form of Subsidy  
The List of Conditional Duty Exemptions allows ent erprises, organizations or persons to be 
exempted from duty or be charged a lower rate, than that laid down by the Customs Tariff 
Regulations.  
The classification structure of the Schedule of Rates is based on the Harmonized Commodity 
Description and Coding  system. The rates of duty in the schedule are applicable to imports from 
third countries into the Member States of the Caribbean Common Market as well as goods traded 
among the Member States.  
On some inputs the rate applied by Grenada, as a Least Develope d Country within the Caribbean 
Common Market, may be from 0% to 5%.  
6. To whom and how the subsidy is provided  
Dependant on the nature of the enterprise and the products to be imported an application must be 
made to that competent authority.  G/SCM/N/284/GRD • G/SCM/N/315/GRD • G/SCM/N/299/GRD  
 
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  The Comptrolle r of Customs once satisfied that the product imported is solely for the use approved 
of, grants the exemption.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  
Due to the nature an d coverage of the programme, there are no statistical data available on the 
amount of subsidy per unit or annual amounts budgeted for this programme.  
8. Duration of subsidy and/or any other time limits attached to it, including date of 
inception/commenceme nt 
Raw materials for product manufacturing, in all other cases for one off importation or the initial 
equipping, construction or extension of a facility as approved by the Competent Authority.  
9. Statistical data permitting an assessment of the trade effec ts on the subsidy  
There is no such statistical information available.  
B. Description of domestic procedures necessary to eliminate export subsidy  
The CARICOM Common External Tariff (CET) Statutory Rules and Orders (SRO) No. 13 of 2014 
which is based on the  Harmonized Commodity Description and Coding System 2012 represents the 
Common External Tariff as implemented in the Agreement that forms the Caribbean Common 
Market of which Grenada is a member. All member of the CARICOM Common Market apply 
the CET. 
SRO N o. 13 of 2014 does not contain any provisions relating to export subsidies. Duty free 
concessions granted under SRO No. 13 of 2014 are not contingent on exports.  
C. Description of actions taken  
There are no beneficiaries of export subsidies under SRO No. 1 3 of 2014 and therefore, Grenada 
had no beneficiaries to notify.  
D. Description of future actions  
Given that there is no provision in SRO No. 13 of 2014 that is contingent on exports, there is no 
need for amendment of the Act.  
II. FISCAL INCENTIVES AC T NO . 41 OF 1974  
A. Description of programme  
1. Title of the subsidy programme if relevant, or brief description or identification of the 
subsidy  
The Fiscal incentives Act is an Act to attract, mobilize and direct capital for new investment.  
2. Period covered by the notification  
As of 1 July 2014  - 30 June 2016  – programme status.  
3. Policy objective and/ or purpose of the subsidy  
To attract private investors who will contribute to the desired expansion of national output, 
thereby promoting economic growth and development.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) G/SCM/N/284/GRD • G/SCM/N/315/ GRD • G/SCM/N/299/GRD  
 
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  Background  
The promotion of private investment is an integral part of the development plan of Grenada as we 
continue to diversi fy production and reduce our reliance on Agricultural production. Economic 
expansion generates demand for foreign exchange. Given our narrow resource base Grenada 
continues to need resource inflows and one of the best ways to achieve this is through direct  
foreign investment.  
The Fiscal Incentives Act was passed to give effect to an agreement on the harmonization of fiscal 
incentives to industry among CARICOM countries.  
Authority  
Fiscal Incentives Act No. 41 of 1974. Chapter 107 of the 1990 Revised Laws of Grenada.  
The Grenada Investment Development Corporation (GIDC) is responsible for administrating this 
incentive programme.  
Since Grenada's initial notification in December 2001, no modification was made to the Fiscal 
Incentive Act No. 41/1974 according to paragraph 4 of document G/SCM/39.  
5. Form of Subsidy  
The Fiscal Incentives Act provides relief from taxes in the following ways:  
Waiver from Customs duty on plant, equipment, machinery, spare parts, raw 
materials or components thereof, for between ten (10)  to fifteen (15) years, 
dependant on which group of enterprise. This is also subject to the satisfaction of the 
Comptroller of Customs and Excise, that the above list is required for:  
a. Constructing, altering, reconstructing or extending the approved enterpr ise, that is, an 
enterprise declared by Order of the Minister responsible for industry; or  
b. Equipping an enterprise for the purpose of manufacturing an approved product, that is, a 
product declared by Order of the Minister responsible for industry; or  
- Compl ete or partial exemption from the payment of income tax on the profits  
arising from the sale of an approved product from the production day for a period 
not exceeding the time give n to the Enterprise, that is 10 -15 years.  
- Where shareholders or their nomine es are not resident in Grenada, they shall be  
exempted from income tax on dividends, in respect of the amount of tax that 
exceeds the tax liability of the shareholder in his country of residence.  
- Where the export profits of enterprises referred to in the A ct, amount to 
ten (10) % or more of the entire profits of the enterprise, from the export of an 
approved product, relief shall be granted from income tax on the export profits. 
This relief is granted by way of tax credits.  
6. To whom and how the subsidy is  provided  
Fiscal incentives are granted to private investors to facilitate the development of industries, in 
particular manufacturing, agro -processing, and agriculture, as pertain to this notification.  
An application is made to the Minister responsible for  industry, by or on behalf of the enterprise, 
stating:  
- The locality or proposed locality of the factory;  
- The construction day;  G/SCM/N/284/GRD • G/SCM/N/315/GRD • G/SCM/N/299/GRD  
 
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  - The production day;  
- The approved product already being manufactured or intended to be 
manufactured; and  
- All information relevant to determine the local value added.  
If the Minister is satisfied that it is in the public interest to grant such enterprise incentives, he 
may by Order published in the Gazette declare the enterprise to be an approved enterprise with 
effect from the date specified in the Order.  
The relief from taxes, or "tax holiday period", is granted on import duties, income tax and export 
profits, depending on the group in which the enterprise is categorized.  
There are five groups of enterprises and the tax holiday appl icable is as follows:  
- Group I Enterprise, one in which the local value added is at least fifty per centum 
(50%) of the amount realized from the sale of an approved product; up to 
15 years relief;  
- Group II Enterprise, one in which the local value added is between 25% and 50%, 
up to 2  years;  
- Group III Enterprise, one in which the local value added is between 10% and 25%, 
up to 10  years;  
- Enclave Enterprise, one in which production is exclusively for export; up to 
15 years; and  
- Highly capital intensive indust ry, one in which the capital investment is not less 
than US$25  million, up to 15 years.  
Export profits is determined by the formula   where "E" represents proceeds from  
export  sales, "P" represents profits made by the enterprise and "S" represents the proc eeds of all 
sales.  
Tax relief on export profits is as follows:  
Amount of export profits expressed as a 
Percentage of the entire profits  Maximum  percentage of tax relief  
10% or more but less than  21% 25% 
21% or more but less than 41%  35% 
41% or more but  less than 61%  45% 
61% or more  50% 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
Due to the nature and coverage of the programme, there are no statistical data available on the 
amount of subsidy per unit. There is no annual amount budgeted for this programme.  
 
8. Duration of subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
As indicated in 6  above.  
 
9. Statistical data permitting a n assessment of the  trade effects of the subsidy  
 
Statistical data not available.  
B. Description of domestic procedures necessary to eliminate export subsidy  E x P 
S G/SCM/N/284/GRD • G/SCM/N/315/ GRD • G/SCM/N/299/GRD  
 
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  The Fiscal Incentives Act had to be repealed to eliminate the export contingency. To this end, the  
Investment Promotion Act 22 of 2009 has been enacted.  
C. Description of actions taken  
The new Investment Bill was passed through the Parliament and came into effect on 1 may 2016 
which repeal the Investment promotion Act of 2009. The new Investment Act m ade amendments 
to the Income Tax Act, the Customs Service Charge Act, Common External Tariff of the Caribbean 
Community, and the Property Transfer Act to provide for automatic application of concessions for 
individuals and companies, which in turn allow fo r greater transparency in administering those 
concessions. Hereby, Grenada also underlines that the new Investment Act does not include any 
provision regarding export contingency.  
D. Description of future actions  
As there is no export subsidy provided und er this programme no future action is required.  
III. QUALIFIED ENTERPRISES ACT NO. 18 OF 1978  
A. Description of programme  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
An Act to provide for the confe rment of tax benefits on certain enterprises if the Minister 
responsible for industry considers it to be in the public interest to do so.  
2. Period covered by the notification  
As of 1 July 2014 - 30 June 2016 – programme status.  
3. Policy objective and/or purpose of the subsidy  
To provide tax benefits and exemptions to industries which can contribute to the promotion of 
economic growth and development of Grenada.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
Background  
This Act was introduced to provide tax stabilization to industries, which the Fiscal Incentives Act 
does not provide. An order under this Act is in addition to, and does not derogate from any benefit 
or advantage or similar concession enjoyed or to be enjoyed by an enterprise under any other 
written law.  
This Act was implemented to ensure that where there is a tax increase, industries enjoying 
concessions for a particular period under the Fiscal Incentives Act, will not be a ffected, as their  
rate of taxes and duties will remain at the same as on the day an Order under this Act comes into 
effect.  
Since Grenada's initial notification in December 2001, no modification was made to the Qualified 
Enterprises Act No. 18/1978 accord ing to paragraph 4 of document G/SCM/39.  
Authority  
Qualified Enterprises Act No. 18 of 1978, Chapter 270 of the 1990 Revised Laws of Grenada.  
The Grenada Investment Development Corporation (GIDC) is responsible for administering this 
incentive programme.  G/SCM/N/284/GRD • G/SCM/N/315/GRD • G/SCM/N/299/GRD  
 
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  5. Form of subsidy  
The Qualified Enterprises Act provides for tax benefits and exemptions on taxes, duties and 
imposts payable by an Approved Enterprise at a rate or amount not exceeding that subsisting on 
the date of the Order.  
6. To whom and how the subs idy is provided  
This subsidy is available to all enterprises, but is rarely used. At present only the three enclave 
enterprises established in Grenada benefit under this Act.  
A Qualified Enterprise enjoys such tax benefits and exemptions as under the Fisca l incentives Act 
No. 41 of 1974, for up to 15 years at the rate subsisting on the date of the Order.  
An approved enterprise under the Fiscal incentives Act No. 41 of 1974 may make an application to 
the Minister responsible for Industry, providing informati on as indicated in 6 of Programme II.  
If the Minister is satisfied it is in the public interest to, he may by Order under this Act, declare the 
approved enterprise to also be a Qualified Enterprise.  
7. Subsidy per unit, or in cases where this is not possib le, the total amount or the annual 
amount budgeted for that subsidy  
Due to the nature and coverage of the programme, there are no statistical data available on the 
amount of subsidy per unit. Also no annual amount is budgeted for this programme.  
8. Duratio n of subsidy and/or any other time limits attached to it, including date of inception/ 
commencement  
As indicated in 6  above.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
There is no such statistical information available . 
B. Description of domestic procedures necessary to eliminate export subsidy  
The Qualified Enterprise Act has to be repealed. The new Investment Promotion Act 22 of 2009 
repeals the Qualified Enterprise Act.  
C. Description of actions taken  
The new Invest ment Bill was passed through the Parliament and came into effect on 1 may 2016 
which repeal the Investment promotion Act of 2009. The new Investment Act made amendments 
to the Income Tax Act, the Customs Service Charge Act, Common External Tariff of the Ca ribbean 
Community, and the Property Transfer Act to provide for automatic application of concessions for 
individuals and companies, which in turn allow for greater transparency in administering those 
concessions. Hereby, Grenada also underlines that the ne w Investment Act does not include any 
provision regarding export contingency.  
D. Description of future actions  
As there is no export subsidy provided under this programme no future action is required.  
 
__________