G/SCM/Q2/TPKM/22  
 
25 April 2014  
(14-2515)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
REPLIES TO QUESTIONS POSED BY AUSTRALIA1 REGARDING THE NEW AND FULL NOTIFICATION 
OF THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU2 
The following communication, dated 24 April 2014, is being circulated at the request of the 
Delegation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  
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  Page 9, II. FISHERIES: A. Fi shing vessels buy-back programme  
 
The purpose of this program is to alleviat e pressure on fish resources and ensure 
sustainability.  
 
 Could you please clarify how many bene ficiaries there have been of this 
programme in the period covered by the notification (2011-2012)? 
Reply 
 
To reduce fishing capacity, 80 fishing vessels we re bought back in 2011 and 90 vessels in 2012. 
 
Page 13, III. INDUSTRY: 2. Medium-and long-term loans for product marketing and 
loans for overseas investment and construction projects  
 
The purpose of this programme is two-fo ld, for SMEs to explore new markets by 
investing and establishing plants in fore ign countries and in undertaking overseas 
contracts for construction projects. 
 
 Could you please provide the industry se ctors which benefited from the funding 
support during the period covered by the notification (2011-2012)? 
Reply 
 
During 2011 and 2012, several firms applied for loan s from a variety of industries including, 
machinery and metal products, electrical and el ectronics, plastics, and other manufacturing 
industries. 
 Page 19, IV. RESEARCH AND DEVELOPMENT: A. Funds granted for development of new 
leading industries 
 
 Could you please clarify what is a "maj or market-comprehensive product" and 
how this is determined? 
 Broadly, what sectors/products have benefited from the program during the 
reporting period? 
                                               
1 G/SCM/Q2/TPKM/20. 
2 G/SCM/N/253/TPKM. G/SCM/Q2/TPKM/22 
 
- 2 - 
 
   
Reply 
 1  The programme emphasizes products with features relevant to the future potential market, 
encouraging the industry to continue investing in innovation and integrative R&D technology. 
 2  Between the fiscal years 2011 to 2012, the industries granted funds under this programme 
included the computer, communications, and consumer electronics (3C) industry, and advanced 
materials.  Page 21, IV. RESEARCH AN D DEVELOPMENT: B. Funds Granted for Promoting 
Development of Industrial Technology 
 Assistance is provided to offset planni ng or development costs for industrial 
technologies that may be characterised as "vital, innovative or integrative". 
 
 Who determines the characterisation as "vital, innovative or integrative"? On 
what basis is this determination made? 
Reply 
 
The decision as to whether the technology can be characterized as "vital, innovative or integrative" 
is based on the review meeting held for each applicant. The committee members present at the 
review meeting are from industry, government and academia.   
Determination is based on the following factors:   
 1  The applicant's R&D management ability.  
 
2  The applicant's innovation practices, capabiliti es, project timetable, methods of implementation, 
technical indexes, R&D entries, forecasted effect s, project budget, functional specifications, and 
the technical stages.  
 
3  The necessity and rationality of both the content and objectives of the commissioned research, as well as the introduction of non-tangible assets. 
 
4  Verification that R&D activities are conducted locally in Chinese Taipei.   
5  Results of the project implementation plan. 
 6  Ratio of budgets invested in R&D activities over the past 3 years to plans to apply for grants.  
7  The integrative capability for joint research. 
  
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