G/SCM/N/253/URY  
G/SCM/N/260/URY  
26 July 2013  
(13-3999)  Page: 1/29  
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  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 
TRANSPARENCY NOTIFICATION ON THE EXTENSIONS UNDER SCM ARTICLE 27.4  
OF THE TRANSITION PERIOD FOR THE ELIMINATION OF EXPORT SUBSIDIES  
PURSUANT TO THE PROCEDURES CONT AINED IN THE GENERAL COUNCIL  
DECISION IN DOCUMENT WT/L/691 
URUGUAY  
 
The following communication, dated 28 June 2013, is being circulated at the request of the 
delegation of Uruguay.  
_______________ 
  
The Permanent Mission of the Eastern Republic of Uruguay to the World Trade Organization 
and other International Economic Agencies with headquarters in Geneva has the honour to submit the following new and full notification pursuant  to Article XVI:1 of the GATT 1994 and Article 25 
of the Agreement on Subsidies and Countervailing Measures. 
 
This notification is also being submitted in order to provide additional tran sparency in the context 
of the extensions under Article 27.4 of the Agr eement on Subsidies and Countervailing Measures 
granted pursuant to the procedures contained in the General Council Decision in document 
WT/L/691, without prejudice to the fact that these procedures do not require that this notification be submitted in 2013. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  The following programmes are notified: 
 Automotive Industry   2 
Clothing Industry   15 
 
 Automotive Industry
1 
 1. Title of the subsidy programme, if relevant, or brief description or identification 
of the subsidy 
 
Regulations for enterprises exporting vehicles assembled in the country. 
 2. Period covered by the notification 
 
1 July 2011 to 30 June 2012.  
3. Policy objective and/or purpose of the subsidy 
 
Restructuring of the automotive sector and specialization in export market segments.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) (attached) 
 
Adoption of measures to facilitate business decisions related to production and investment 
programmes and in preparation for the common MERCOSUR regime.  
Decree No. 316/92 of 7 July 1992, published in the Official Journal on 25 September 1992. 
 Decree No. 583/94 of 30 December 1994.  
Decree No. 340/96 of 23 August 1996, published in the Official Journal on 6 September 1996. 
 Decree No. 60/99 of 3 March 1999, published in the Official Journal on 12 March 1999. 
 
Decree No. 273/99 of 10 September 1999, published in the Official Journal on 20 September 1999.
2 
 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Enterprises which export completed or part-completed vehicles assembled in the country 
or auto-parts of national origin may benefit from a customs concession, applicable to the 
importation of motor vehicles assembled in the place of origin and destined for the domestic market, in accordance with the conditions laid down in the above-mentioned regulations, 
or allocate it for the payment of taxes due to th e Directorate-General of Taxation, in accordance 
with Article 3 of Decree No. 60/99.  
6. To whom and how the subsidy is provided (whether to producers, exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
For every United States dollar of exports (based on the f.o.b. values declared in the relevant 
customs declarations), imports may be made with a concession of 13% of the TGA (global tariff), applicable to the surcharge element, for new vehicles assembled in the place of origin (based on 
the c.i.f. values declared to the Banco de la República Oriental de Uruguay  (BROU)), or payments 
may be allocated to the Directorate-General of Taxation. 
                                               
1 This programme was notified in due time under Article 27.4 of the Agreement on Subsidies and 
Countervailing Measures, it has been subject to extensions pursuant to the Procedures Contained in the 
General Council Decision in Document WT/L/691. 
2 Decrees Nos. 60/99 and 273/99 amended Decree No. 316/92 and prescribed a tax benefit which is not 
limited strictly to the importation of vehicles, bu t can also be used for meeting tax obligations. G/SCM/N/253/URY • G/SCM/N/260/URY 
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7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit 
in the previous year). Where provision of per-unit subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
Thirteen per cent of the TGA (global tariff), applic able to the surcharge element, for new vehicles 
assembled in the place of origin. 
 8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement 
 
Decree No. 60/99 entered into force in 1999 and remains in force by virtue of Decree No. 273/99.  
9. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such data is left to the judgement of the notifying Member. 
To the extent possible, relevant and/or determ inable, however, it is desirable that such 
information include statistics on the production, consumption, imports and exports 
of the subsidized products(s) or sector(s) 
 
Subsidized exports for the period 1 January to 31 December 2011 totalled US$484,520,130. 
 
10. Internal steps taken with a view to eliminating subsidies, action plan 
for eliminating subsidies. 
 
(a) In 2009, the Government of Uruguay informed beneficiaries of the subsidy that, 
in accordance with the obligations under the SCM Agreement and the provisions 
of Article 27.4 thereof, the measure would not be extended beyond 
31 December 2015 and that its dismantling would begin by 2013 at the latest. The text of the communiqué is attached hereto. 
 
(b) Drafting of the legal instruments required to eliminate the measure 
is at an advanced stage. 
 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 316/992 
   Publication: 25 September 1992  
National Register of Laws and Decrees:  
Volume: 1 Semester: 2 
Year: 1992 
Page: 26  
  
LACALLE HERRERA - EDUARDO ACHE - IGNACIO DE POSADAS MONTERO 
  HAVING REGARD to the measures adopted for the purpose of deregulating the automotive 
industry; 
  WHEREAS the special characteristics of the nati onal automotive industry and of the domestic 
motor vehicle market make it advisable to adopt measures to encourage the growth of exports 
of products of the sector, thereby enabling it to be restructured;   CONSIDERING: (I) The effects on local industry of the policies developed in this sector 
by the MERCOSUR member countries; 
 
(II) that the measures to be applied will fa cilitate the adoption of sectoral agreements 
within the framework of the aforementioned treaty  with a view to accelerating the integration 
of regional industry;  
(III) that it is desirable to establish the exclusion of the benefit consisting of the refunding 
of indirect taxes in respect of the products the ex portation of which is encouraged by this Decree; 
 
(IV) that it is necessary to find mechanisms for preventing the distortions which 
commercial practices such as the importation of used vehicles or the assembly of vehicles from 
used parts may cause in the process of restructuring.  
 MINDFUL of the above and of  the provisions of Article 2.2(c) of Law No. 12.670 
of 17 December 1959:  
THE PRESIDENT OF THE REPUBLIC 
 HEREBY DECREES:  
Article 1 
 
Enterprises which export completed or part-completed vehicles assembled in the country or auto 
parts of national origin may avail themselves of the following mechanism, applicable 
to the importation of new motor vehicles assembled in the place of origin and destined for the domestic market and to products that  they import under tariff heading 8708.99.90.50 
of the MERCOSUR Common Nomenclature. 
 Such enterprises may make imports with a concession of up to 13% of the TGA (global tariff), which includes the 3% increase under Article 1 of Decree No. 484/997 of 29 December 1997, 
subject to a ceiling of the equivalent of US$0.10 (ten United States cents) for every United States 
dollar of exports, based on the f.o.b. va lue stated in the customs declarations. 
 
Enterprises that cumulate the benefit provided under Decree No. 558/994 of 21 December 1994 
may reduce the ceiling provided for in the preceding paragraph to US$0.07 (seven United States cents) and may allocate US$0.005 (zero point five United States cents) to be used in the manner 
established in Decree No. 558/994 under reference, in  which case the ceiling shall fall to US$0.065 
(six point five United States cents).  The enterprises covered in the first paragraph of this Article which, within a period of 90 days 
as from the date of the export declaration, fail to make use of the TGA benefit in any G/SCM/N/253/URY • G/SCM/N/260/URY 
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  of the alternatives envisaged, may allocate the balances for the payment of taxes due 
to the Directorate-General of Taxation.(*)  -------------------------------------------------------------------------------------------------------------- 
(*) Wording of Article 1 of Decree No. 60/999 of 3 March 1999. The original text can be viewed 
in Official Journal No. 23.648 of 25 September 1992. See Article 4. -------------------------------------------------------------------------------------------------------------- 
Article 2 
 
The following products shall be considered eligible for the benefits provided for in this Decree:  
- A u t o - p a r t s  p r o d u c e d  i n  t h e  c o u n t r y  f r o m  d o m e s t i c  o r  i m p o r t e d  r a w  m a t e r i a l s ,  
which have undergone a change in their original composition, shape or structure, provided that their ultimate destination is an automotive terminal or the motor vehicle 
replacement parts market, or that they can reliably be shown to have been used 
in motor vehicles; 
 
- auto-parts assembled in the country and consisting of vehicle assemblies 
or sub-assemblies, provided that they are the result of a significant industrial process; 
 - completed or part-completed vehicles assembled in the country from imported kits 
with a degree of disassembly approved by  the National Directorate of Industry; 
 - vehicle and auto-part manufacturing or assembly plants must demonstrate a national 
or regional value added, as appropriate, in accordance with the origin requirements 
of the bilateral or multilateral agreements concluded between the country and the importing countries. 
 
The National Directorate of Industry of the Mi nistry of Industry, Energy and Mining shall 
be responsible for verifying compliance wi th the provisions of this Article.(*) 
 
-------------------------------------------------------------------------------------------------------------- 
(*) See Article 10. -------------------------------------------------------------------------------------------------------------- 
 
Article 3 
 
The National Directorate of Industry of the Minist ry of Industry, Energy and Mining shall monitor 
the values imported and exported by the respec tive enterprises and shall issue the appropriate 
certificates attesting that the importation qualifies for a concession of up to 10% of the TGA, which shall be submitted to the Banco de la República Oriental del Uruguay , together with the form 
giving entitlement to import vehicles assembled in the place of origin, upon presentation 
of the import application.  
Article 4 
 
The exporting enterprises referred to in Article 1 ma y assign their rights derived from prior exports 
to enterprises that import vehicles for sale on the domestic market, which in this case shall 
be the beneficiaries of the tax exemption provided  for in this Decree. The National Directorate 
of Industry of the Ministry of Industry, Energy and Mining shall check the respective assignment 
and authorize it, where appropriate. 
 
Article 5 
 
(*) 
-------------------------------------------------------------------------------------------------------------- 
(*) Revoked by Decree No. 583/994 of 30 December 1994, Article 1. The original text 
can be viewed in Official Journal No. 23.648 of 25 September 1992. 
-------------------------------------------------------------------------------------------------------------- G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Article 6 
 
The certificate of origin for vehicles assembled in the country for export to the Federal Republic of Brazil under the Trade Expansion Protocol (PEC) shall be issued by the National Directorate 
of Industry of the Ministry of  Industry, Energy and Mining. 
 Article 7 
 The vehicle category G established by Article 1 of Decree No. 128/970 of 13 March 1970 is hereby abolished. Articles 7 and 8 of Decree No. 464/978 of 11 August 1978 are revoked.  
Article 8 
 
The importation of goods referred to in Arti cle 1 of Decree No. 494/990 of 29 October 1990 
and Article 1 of Decree No. 583/990 of 18 December 1990 is prohibited for a period 
of 120 (one hundred and twenty) days from the entry into effect of this Decree.  
Article 9 
 
The importation of used vehicles classified under NADI (Argentine tariff and import duty schedule) heading 8702 and subheading 0701.02 is prohibited  for a period of 120 (one hundred and twenty) 
days from the entry into effect of this Decree. 
 Article 10 
 Products covered by the provisions of Article 2 of this Decree in accordance with a resolution of the National Directorate of Industry of the Mini stry of Industry, Energy and Mining are excluded 
from the benefits accorded by Article 5 of Decree No. 393/991 of 29 July 1991. 
 Article 11 
 
This Decree shall enter into effect upon publication in two newspapers of the capital. 
 Article 12 
 Proclaimed, published, etc.  G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 583/994 
 Promulgation: 30 December 1994 Publication: 13 January 1995  
National Register of Laws and Decrees: not included. 
  
LACALLE HERRERA - MIGUEL ANGEL GALAN - IGNACIO DE POSADAS MONTERO 
  HAVING REGARD to the regime adopted by Decree No. 316/992 of 7 July 1992 for the purpose of encouraging the restructur ing of the national automotive industry; 
 
 WHEREAS: (I) The Council of the Common Market of MERCOSUR has decided (Decree No. 29/994): (a) to establish a Common Automotive Regime to operate 
from 1 January 2000; (b) to establish a provisional regime to operate from 1 June 1995; 
and (c) that no restrictive changes in intra-zonal automotive sector trade shall be unilaterally introduced; 
 
(II) it is considered desirable to extend the period of validity of the regime established 
in Decree No. 316/992, since domestic enterprises are in the midst of a process of restructuring under that Decree; 
 
(III) the extension to be granted does not involve a restriction on intra-zonal automotive 
sector trade. 
 
 MINDFUL of the above:  
THE PRESIDENT OF THE REPUBLIC 
 HEREBY DECREES:  
Article 1 
 
Article 5 of Decree No. 316/992 of 7 July 1992 is hereby revoked, the TGA (global tariff) 
concessions established by that Decree being maintained in force until the MERCOSUR member 
countries agree upon the provisional regime referred to in recital (I).  G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 340/996 
 Promulgation: 28 August 1996 Publication: 6 September 1996  
National Register of Laws and Decrees: Volume: 1 
 Semester: 2  Year: 1996 
 Page: 634 
  SANGUINETTI - JULIO HERRERA - LUIS MOSCA 
 
 HAVING REGARD to the regime that regulates the national automotive industry;  
 CONSIDERING: (I) The transitional situatio n currently facing the MERCOSUR automotive 
sector and the fact that Argentina and Brazil are beginning to define the final regime which will enter into force as of the year 2000; 
 
(II) the prospect of Uruguay occupying a compet itive position in the industry of the region, 
specializing in market segments and consolidating the changes made with a view to exporting to the region; 
 
(III) the existence of an unfavourable regional economic climate which has limited 
exports under the Argentine Uruguayan Economic Cooperation Agreement (CAUCE) 
and the Trade Expansion Protocol (PEC) and affected levels of industrial production. 
  WHEREAS it is desirable to adopt measures to facilitate business decisions related 
to production and investment programmes and in preparation for the common MERCOSUR regime; 
  MINDFUL of the provisions of Article 2 of Law No. 12.670 of 17 December 1959 and Article 2 
of Law No. 16.492 of 2 June 1994: 
 
THE PRESIDENT OF THE REPUBLIC  
HEREBY DECREES: 
 Article 1 
 Motor vehicle components or auto parts (parts, assemblies and subassemblies) imported as kits, in accordance with the lists authorized for each mode l by the National Directorate of Industry of the 
Ministry of Industry, Energy and Mining, sha ll be subject to a global tariff (TGA) of 2% 
(two per cent) by way of minimum surcharge. 
 The provisions of this Article shall apply during the period of validity 
of Decree No. 316/992 of 7 July 1992. 
 Article 2 
 The benefits provided for in Decree No. 316/992 of 7 July 1992 may be cumulated with those established by Decree No. 558/994 of 21 December 1994, under the conditions laid down in the next Article.(*) 
 
-------------------------------------------------------------------------------------------------------------- 
(*) See Article 3. 
-------------------------------------------------------------------------------------------------------------- G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Article 3 
 
(*) 
-------------------------------------------------------------------------------------------------------------- 
(*) Revoked by Decree No. 60/999 of 3 March 1999, Article 4. The original text can 
be viewed in Base DIAR.  
See Articles 5 and 6. 
--------------------------------------------------------------------------------------------------------------Article 4 
 
Motor vehicles classified under headings 8702, 8703 and 8704 are incorporated in the regime 
established by Decree No. 558/994 of 21 December 1994, the tax refund percentage being fixed at 3.3% (three point three per cent). 
 
Article 5 
 
Exporters of products covered by Decree No. 316/992 of 7 July 1992 for whom a tax refund 
percentage has not been fixed within the context of the above-mentioned Decree No. 558/994 and who wish to opt for the cumulation of both benefits under the conditions laid down in Article 3 must apply to the Ministry of the Economy and Finance with a reasoned request 
for the fixing of a tax refund percentage. 
 Article 6 
 For the purpose of obtaining the "Tax Refund Certificates" referred to in Article 6 of the above-mentioned Decree No. 558/994, the beneficiary enterprises must submit 
to the Banco de la República Oriental del Uruguay  a certificate issued by the National Directorate 
of Industry of the Ministry of Industry, Energy  and Mining attesting that they are operating 
within the framework of Article 3 of this Decree.  
Article 7 
 
Account shall be rendered to the General Assembly. 
 
Article 8 
 
This Decree shall enter into effect on 1 September 1996. 
 Article 9 
 
Proclaimed, published, etc. G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 60/999 
 Promulgation: 3 March 1999 Publication: 12 March 1999  
National Register of Laws and Decrees: Volume: 1 
 Semester: 1  Year: 1999 
 Page: 368 
  SANGUINETTI - LUIS MOSCA - JULIO HERRERA 
 
 HAVING REGARD to the regime governing the automotive industry;  
 WHEREAS this regime needs to be amended in order that it may more efficiently attain the 
objectives for which it was adopted;  
 ACCORDINGLY: 
 THE PRESIDENT OF THE REPUBLIC  
HEREBY DECREES: 
 Article 1 
 (*) -------------------------------------------------------------------------------------------------------------- 
(*) This Article reworded Article 1 of Decree No . 316/992 of 7 July 1992 and should therefore be 
viewed in the latter. --------------------------------------------------------------------------------------------------------------  
Article 2 
 
The National Directorate of Industry of the Minist ry of Industry, Energy and Mining shall monitor 
the use of the benefit provided for in Article 1 and shall issue the corresponding certificates for 
presentation to the competent government authorities.  
Article 3 
 
(Transitional provision). The enterprises cove red by Article 1 may earmark for the payment 
of taxes due to the Directorate-General of Taxation such balances as may exist on the effective 
date of this Decree owing to the non-use of the TGA concession envisaged under this regime 
and which are no older than 90 days as from the said date.  
Article 4 
 
Article 3 of Decree No. 340/996 of 28 August 1996 and all provisions conflicting with this Decree 
are hereby revoked. 
 Article 5 
 
(*) 
--------------------------------------------------------------------------------------------------------------------------- 
(*) Revoked by Decree No. 273/999 of 10 September 1999, Article 1. The original text can be 
viewed in Base DIAR. --------------------------------------------------------------------------------------------------------------
------------- 
 Article 6 
 
Proclaimed, published, etc. G/SCM/N/253/URY • G/SCM/N/260/URY 
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Decree No. 273/999  Promulgation: 10 September 1999 Publication:
 20 September 1999 
 National Register of Laws and Decrees: Volume: 1 
 Semester: 2 
 Year: 1999  Page: 610  
 
SANGUINETTI - JULIO HERRERA - LUIS MOSCA  
 HAVING REGARD to the regime governing th e automotive industry and the provisions 
of Decree No. 60/999 of 3 March 1999;  
 WHEREAS it is necessary to maintain the regime governing the automotive industry in force 
as from 1 January 2000, with the amendments introduced by Decree No. 60/999 of 3 March 1999;   ACCORDINGLY: 
 
THE PRESIDENT OF THE REPUBLIC  
HEREBY DECREES: 
 Article 1 
 Article 5 of Decree No. 60/999 of 3 March 1999 is hereby revoked.  Article 2 
 Proclaimed, published, etc.  G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 353/007 
 Promulgation: 24 September 2007  
 
TABARE VAZQUEZ - DANILO ASTORI - JORGE LEPRA  
MINISTRY OF THE ECONOMY AND FINANCE 
MINISTRY OF INDUSTRY, ENERGY AND MINING   HAVING REGARD to Executive Decree No. 316/992 of 7 July 1992 and the amendments 
thereto, which regulate the benefits applic able to exports of automotive products; 
  WHEREAS it is appropriate to begin the process of adopting measures relating to the 
incentive regime for automotive exports, in accordance with the commitments made under the 
World Trade Organization;  
 MINDFUL of the provisions of Article 2 of Law No. 12.670 of 17 December 1959: 
 THE PRESIDENT OF THE REPUBLIC  
HEREBY DECREES: 
 Article 1 
 The regime provided for in Article 1 of Decree No. 316/992 of 7 July 1992, as reworded in Decree No. 60/999 of 3 March 1999, shall not apply to expo rts of goods classified under Chapter 41 of the 
MERCOSUR Common Nomenclature, with the exception of those mentioned in Article 2 of this 
Decree.  Article 2 
 In the case of exports of goods classified under heading 4107 of the MERCOSUR Common Nomenclature and considered by the National Direct orate of Industry of the Ministry of Industry, 
Energy and Mining as eligible for the benefits provided for in Article 1 of Decree No. 316/992 
of 7 July 1992, the concession of 13% of the TG A (global tariff) stipulated in Article 1 of 
Decree No. 316/992 of 7 July 1992, as reworded in Decree No. 60/999 of 3 March 1999, may not 
exceed the equivalent of US$0.06 (six United States cents) for every United States dollar of 
exports, based on the f.o.b. values stated in the customs declarations. 
 Article 3 
 The provisions of the above Articles shall apply to export operations involving the 
above-mentioned products and registered as of 1 October 2007. 
 
Article 4 
 
Proclaimed, published, etc. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Decree No. 12/008 
 Promulgation: 16 January 2008  
 
TABARE VAZQUEZ - DANILO ASTORI - JORGE LEPRA  
MINISTRY OF THE ECONOMY AND FINANCE 
MINISTRY OF INDUSTRY, ENERGY AND MINING   HAVING REGARD to Executive Decree No. 316/ 992 of 7 July 1992 and amendments thereto, 
which regulate the benefits applicable to exports of automotive products; 
  WHEREAS it is appropriate to define the transitional regime that will apply to exports 
of goods classified under heading 4107 of the MERCOSUR Common Nomenclature, which receive 
benefits under the regime mentioned in the preceding paragraph, until such date as they receive the benefits provided for by the export tax refund system established by Law No. 16.492 
of 2 June 1994; 
  ACCORDINGLY:  
THE PRESIDENT OF THE REPUBLIC 
 HEREBY DECREES: 
 
Article 1 
 
Article 2 of Executive Decree No. 353/007 of 24 September 2007 shall be replaced with the 
following text:  "Article 2. - In the case of exports of good s classified under heading 4107 of the MERCOSUR 
Common Nomenclature and considered by the National Directorate of Industry of the Ministry 
of Industry, Energy and Mining as eligible for th e benefits provided for in Article 1 of Decree 
No. 316/992 of 7 July 1992, the concession of 13% of the TGA (global tariff) provided for 
in Article 1 of Decree No. 316/992 of 7 July 1992, as reworded in Decree No. 60/999 
of 3 March 1999, shall be governed by the following rules:  
(i) It may not exceed the equivalent of US$0.06 (six United States cents) for every 
United States dollar of exports, based on the f.o.b. values stated in the customs declarations, in export operations registered up to 31 December 2008, and 
 
(ii) it may not exceed the equivalent of US$0.04 (four United States cents) for every 
United States dollar of exports, based on the f.o.b. values stated in the customs declarations, in export operations registered between 1 January 
and 31 December 2009." 
 Article 2 
 As of 1 January 2010, the regime provided for in Article 1 of Decree No. 316/992 of 7 July 1992, as reworded in Decree No. 60/999 of 3 March 1999, shall no longer apply to exports of goods classified under heading 4107 of the MERCOSUR Common Nomenclature. 
 
Article 3 
 
Proclaimed, published, etc. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  COMMUNIQUÉ 
  From: Ministry of Industry, Energy and Mining 
 
To: Exporters benefiting from subsidies established pursuant to Decree No. 316/92  
Re.: Elimination of the export subsidy programme 
  In order to complement the consultations which we held in 2009 on the modification and 
elimination of the export subsidy for automotive products, established pursuant to 
Decree No. 316/992 and the amendments and related provisions thereto, we wish to make the following points. 
 
The subsidy currently granted for the export of automotive products constitutes a prohibited subsidy under the rules established by the WTO Agreement on Subsidies and Countervailing 
Measures. Article 27.4 of this Agreement does, however, provide for exceptions to the general 
rule, of which Members may, under certain conditio ns, take advantage for a limited period of time. 
The subsidy granted by Uruguay falls under this exception and has therefore remained in force to date. Furthermore, the WTO General Council Decision of 27 July 2007 extended the maximum 
period for the application of subsidies covered by an exception under Article 27.4 
until 31 December 2015. The extension is subject to a series of conditions, including the obligation of Member governments to notify beneficiaries of the subsidy of its elimination during the 
period 31 December 2013 to 31 December 2015. To this end, you are hereby advised that the 
measures necessary to comply with the obligations under the Agreement on Subsidies and Countervailing Measures will be adopted in due course. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Clothing Industry 
 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Subsidy for the clothing industry. The programme works with:  
(i) enterprises: it awards them a subsidy based on the wage bill declared to the Social 
Security Bank (BPS); 
 
(ii) workers in categories included for the purposes of this programme: it awards them 
a subsidy; 
 
(iii) enterprises seeking to become stronger: it co-finances projects with them. 
 
2. Period covered by the notification 
 
1 January 2012 to 31 December 2012. 
 3. Policy objective and/or purpose of the subsidy 
 
Measures implemented to strengthen and develop the clothing industry. The objectives are both 
general and specific.  
General objectives: (A) Ensure the sector's su stainability, (B) Improve quality and working 
conditions.  
Specific objectives: (A) Improve the model of prod uction and increase the sector's productivity, 
(B) Establish sources of employment requiring sk illed labour and reduce precarious employment. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) (attached) 
 Measures to strengthen and develop the clothing industry. 
 
Law No. 18.846 of 25 November 2011 and its implementing Decree No. 393/12 of 1 June 2012.  
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
For funds allocated to enterprises (on the basis of the wage bill) and to workers, the subsidy is in the form of a grant. For funds allocated to projects, the subsidy is in the form of non-repayable 
co-financing. 
 6. To whom and how the subsidy is provided (whether to producers, exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
The amount of the subsidy is divided into three parts: (i) 33% for enterprises, (ii) 33% for 
workers, (iii) 34% to project co-financing. The su bsidy is granted to enterprises and workers who 
apply for it provided that they satisfy the requirements previously laid down in the law and implementing decree. 
 
(i) 33% of the subsidy will be allocated to enterprises engaged in the making-up of the 
products classified in Chapters 61 and 62 and tariff headings 4203.10, 4303.10.00.21, 
6302.21, 6302.22, 6302.31, 6302.32, 6505.90.00 and 9404.90.00.20, of the MERCOSUR 
Common Nomenclature. 
 
The allocation criterion will be in accordance with the percentage of each enterprise's wage 
bill as a share of the total wage bill of all beneficiary enterprises. Only the wage bill for the staff assigned to the promoted activity (making-up) is taken into account. In no case may the amount of the subsidy for an enterprise exceed 20% (twenty per cent) of its wage bill 
for the period covered. G/SCM/N/253/URY • G/SCM/N/260/URY 
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(ii)  33% of the subsidy will go directly to workers in enterprises engaged in the making-up 
of the products classified in Chapters 61 and 62 and tariff headings 4203.10, 4303.10.00.21, 6302.21, 6302.22, 6302.31, 6302.32, 6505.90.00 and 9404.90.00.20, of the MERCOSUR 
Common Nomenclature. The workers have direct access to the subsidy regardless of 
whether the enterprise where they work has applied for it. 
 
(iii) 34% of the subsidy and any surplus from the funds referred to in points (i) and (ii) will be 
allocated to enterprises on the basis of the projects they submit on developing their 
production capacity. 
 
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per-unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The total amount budgeted for the subsidy is set out in the table below: 
 
Year Subsidy granted to 
enterprises based on 
workers' wage bill Subsidy granted directly 
to workers Subsidy to co-finance 
projects Total 
 
2012 1.65 1.65 1.70 5 
2013 1.65 1.65 1.70 5 
2014 1.65 1.65 1.70 5 
2015 1.24 1.24 1.28 3.75 
2016 1.24 1.24 1.28 3.75 
2017 0.83 0.83 0.85 2.5 
2018 0.83 0.83 0.85 2.5 
TOTAL     27.5 
 
Note: Millions of dollars. 
 
The subsidy was granted to 60 enterprises. The following table shows the quotient when the 
subsidy awarded to the enterprise is divided by the turnover in the promoted activities. In all cases 
but one, it was less than 1%.  
Register No. of 
the enterprise 2012 subsidy/Turnover in the promoted 
activity in 2011 
1 0.1% 
2 0.1% 
3 0.1% 
4 0.1% 
5 0.1% 
6 0.1% 
7 0.2% 
8 0.1% 
9 0.1% 
10 0.2% 
11 0.1% 
12 0.0% 
13 0.1% 
14 0.1% 
15 0.3% 
16 0.1% 
17 0.1% 
18 0.1% 
19 0.1% 
20 0.1% 
21 0.1% 
22 0.1% 
23 0.1% 
24 0.1% 
25 0.0% 
26 0.1% 
27 0.0% G/SCM/N/253/URY • G/SCM/N/260/URY 
- 17 - 
  Register No. of 
the enterprise 2012 subsidy/Turnover in the promoted 
activity in 2011 
28 0.1% 
29 0.0% 
30 0.1% 
31 0.2% 
32 0.1% 
33 0.1% 
34 0.1% 
35 0.1% 
36 0.1% 
37 0.1% 
38 1.7% 
39 0.0% 
40 0.1% 
41 0.1% 
42 0.1% 
43 0.1% 
44 0.1% 
45 0.0% 
46 0.1% 
47 0.5% 
48 0.3% 
49 0.1% 
50 0.0% 
51 0.0% 
52 0.0% 
53 0.1% 
54 0.5% 
55 0.1% 
56 0.1% 
57 0.1% 
58 0.0% 
59 0.3% 
60 0.1% 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement 
 Transitional subsidy totalling US$27,500,000 and covering a seven-year period on the basis of an annual maximum of US$5,000,000. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such data is left to the judgement of the notifying Member. To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics on the production, consumpt ion, imports and exports of the subsidized 
products(s) or sector(s) 
 
The total turnover of the enterprises receiv ing a subsidy was over US$217 million for the 
year 2011. Some local producers did not apply for the subsidy. The effect of the subsidy 
is therefore deemed negligible in practice. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  Eastern Republic of Uruguay 
 Legislative power  
 
Published in Official Journal 12 December/011 – No. 28368 
  
Law No. 18.846 
 
CLOTHING INDUSTRY 
 
STRENGTHENING AND DEVELOPMENT 
 
The Senate and Chamber of Representatives of the Eastern Republic of Uruguay, 
meeting in General Assembly, 
 
HEREBY DECREE: 
 
TITLE I 
 
SUPPORT FOR COMPETITIVENESS IN THE CLOTHING INDUSTRY 
 
GENERAL PROVISIONS 
 
Article 1. (Objectives).- The provisions of this law are intended to attain the general and specific 
objectives set out below in relation to the clothing industry: 
 
(I) General objectives. 
  (A) To ensure sustainability in the sector.  (B) To improve quality and working conditions. 
 
(II) Specific objectives.  
 (A) To improve the model of production. 
 (B) To improve the sector's competitiveness and productivity.  (C) To establish sources of employment requiring skilled labour. 
 (D) To reduce precarious employment. 
 Article 2.- The promotional policy set out under th is Title shall be formulated by the Ministry 
of Industry, Energy and Mining and the Ministry of the Economy and Finance in coordination with 
the Ministry of Labour and Social Security. 
 Article 3.- (Implementing body). The National Direct orate of Industry at the Ministry of Industry, 
Energy and Mining shall be the implementing body for this policy. 
 Article 4.- (Beneficiaries). The beneficiaries of th is law shall be enterprises engaged in making-up 
the products classified in Chapters 61 and 62 and tariff headings 4203.10, 4303.10.00.21, 
6302.21, 6302.22, 6302.31, 6302.32, 6505.90.00 and 9404.90.00.20 of the MERCOSUR Common Nomenclature.  
In order to be eligible for the benefit provided for in the preceding paragraph, enterprises shall 
provide evidence both of their registration at the offices of the National Directorate of Industry as 
provided for in Article 13 herein and that they are up to date with their statutory fiscal, social 
security and social responsibility obligations. 
 Article 5.- (Subsidy). A transitional subsidy shall be  granted for the activities promoted in this law. 
 
Article 6.- (Amount of the subsidy). The amount of the total subsidy for the clothing sector shall be 
US$27,500,000 (twenty-seven million, five hundred thousand United States dollars) distributed annually as provided for in Article 7 of this law and in accordance with the following criteria: 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
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  (A) 33% (thirty-three per cent) of the subsidy shall be allocated to enterprises that can 
demonstrate that they satisfy all the requirements of this Article and in accordance with the percentage of each enterprise's wage bill as a share of the total wage bill of all beneficiary enterprises that are eligible under Article 4 of this law. "Wage bill" shall be considered to 
mean the sum of all items of monthly nominal remuneration paid by the enterprise for the 
provision of services in a dependent relationship where those items of remuneration are subject to taxation in the form of social security contributions and are associated with the 
promoted activity. In no case may the amount of the subsidy for an enterprise exceed 20% 
(twenty per cent) of its wage bill for the period in question. In order to encash the subsidy the enterprises shall authenticate the payroll submitted to the Social Security Bank. 
 
The regulations shall lay down the methodology for the calculations referred to in the 
preceding paragraph, the method of apportioning the wage bill where a single enterprise is engaged in both promoted and non-promoted  activities, and the apportionment of any 
surplus funds. 
 (B) 33% (thirty-three per cent) of the subsidy shall go to workers duly registered at the Social 
Security Bank within the categories covered by the subsidy. 
 
The regulations shall establish the procedure for the allocation of the above-mentioned 
percentage alongside the conditions and opportunities for access to the benefit in question. 
 
(C) 34% (thirty-four per cent) of the subsidy and any surpluses from the funds allocated under 
the preceding paragraphs shall be allocated am ong enterprises on the basis of the projects 
they submit for the development of their production capacity: investment in technological 
modernization, capacity building, training, de sign, innovation, improvements in commercial 
and industrial management, with an annual maximum per enterprise equivalent to 100% 
(one hundred per cent) of their receipts under indent (A). An amount equivalent to 10% 
(ten per cent) of the wage bill for the four prec eding quarters shall be allocated for the first 
year. The projects shall be co-financed by the enterprise in an amount of 20% (twenty per 
cent) in case of social responsibility certific ations by international enterprises, or staff 
training at recognized establishments, and in a minimum amount of 40% (forty per cent) 
in all other cases. The regulations shall determine the indicators for measuring progress towards attaining the targets established in Article 1 of this law. 
 
Article 7. (Period and annual distribution of the payment).- The subsidy, provided from General 
Revenues, shall extend for a period of seven ye ars on the basis of an annual sum of US$5,000,000 
(five million United States dollars) as set out below: 
 (A) 100% (one hundred per cent) of that amount in the first three years.  
(B) 75% (seventy-five per cent) of that amount in the two subsequent years. 
 (C) 50% (fifty per cent) of that amount in the sixth and seventh years. 
 
Article 8.- The subsidy shall be paid to the clothing sector on a quarterly basis in accordance 
with Article 6. 
 
TITLE II 
 
ADVISORY COMMISSION 
 
Article 9. (Advisory Commission).- An Advisory Commission is hereby established as part of the 
Ministry of Industry, Energy and Mining, comprising one representative from that Ministry, one 
from the Ministry of the Economy and Finance, one from the Ministry of Labour and Social 
Security, one representative of the enterprise owners and one representative of the workers; 
in each case a full and alternate member sh all be appointed, with the following powers: 
 
- To advise on the drafting of the decree implementing the present law.  - To advise on and adopt its rules of procedure within one hundred and twenty days of the 
publication of this law, taking decisions by simple majority vote of its members. G/SCM/N/253/URY • G/SCM/N/260/URY 
- 20 - 
   
- To determine the procedure for allocation of the defined items among the beneficiary 
enterprises. 
 
- To approve the projects submitted in accordance with Article 6(C) above. 
 - To determine the percentage of the subsidy in accordance with the possibility of the capture 
of benefits by one or more enterprises. 
 - To advise on the implementation of the Traceability Regime.  
- To quantify the objectives of the present law. 
 - To define and monitor the compliance assessment indicators for the proposed targets. 
 
- In line with trends in the industry, to suggest such measures, resolutions or decrees as may 
be deemed necessary to attain the objectives set. 
 
- The Ministry of Industry, Energy and Mining shall assist the Commission in the provision 
of human, technical and material resources necessary to fulfil its objectives. 
 
TITLE III 
 
TRACEABILITY OF CLOTHING 
 
Article 10.- (Purpose).- The regulations to be issu ed by the Executive shall promote the design and 
organization of a manufacturing traceability system  for clothing and the other products referred to 
in Article 4 of Title I of this law, with the aim of fostering the elimination of informality in the 
clothing industry.  Article 11. (Traceability).- "Traceability of clothing" means the process serving to identify the 
manufacturers involved in the production of a garment or the persons importing a garment for commercial purposes.  
The Executive shall regulate the entry into the country of such clothing for other purposes, 
regardless of its condition at entry.  
Article 12. (Register).- The Register of Clothing Enterprises is hereby established; it shall operate 
as part of the Ministry of Industry, Energy and Mining. 
 Article 13. (Authorization).- Entry in the Regist er of Clothing Enterprises referred to in the 
preceding article is compulsory for all subjects of law engaged in the activities specified in Article 4 
and the first paragraph of Article 11 of this law.  
For the purposes of the application of this Article, a subject of law shall be considered to be any 
industrial enterprise, workshop worker, home work er, single-person enterprise or other agent fully 
or partially involved in the manufacture or importation of clothing, regardless of its condition or 
intended use (export, re-export or sale on the local market). 
 Article 14. (Organization).- The Ministry of Indu stry, Energy and Mining, in cooperation with the 
Ministry of the Economy and Finance, shall regula te the form of identification for the apparel 
of manufacturers and importers who are in compliance with fiscal, social security and social 
responsibility rules. Enterprises may use this form of identification voluntarily during the first two years of applicability of the law; its use shall be compulsory from the third year. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
- 21 - 
  TITLE IV 
 
HOME WORKING IN THE CLOTHING INDUSTRY 
 
Article 15.- For the purposes of this law: 
 
(A) The expression "home working" means the wo rk that a person designated as a home 
worker performs: 
 
(i) At his residence or at other premises of his choice other than the employer's work 
premises. 
 
(ii) In exchange for remuneration. 
 
(iii) For the purpose of producing a product or pr oviding a service in conformity with the 
employer's specifications regardless of who supplies the equipment, materials or other elements used to that end. 
 
(B) An employed worker shall not be regarded as a home worker for the purposes of this law 
merely on the ground that he or she performs his work at his residence instead of at his usual place of work. 
 
(C) For all employment and welfare purposes "employed worker" shall also mean a workshop 
worker who, in cooperation with other workers who are not members of his family, 
personally contributes to output through his labour, produces a product under the conditions 
l i s t e d  i n  p a r a g r a p h  ( A )  o f  t h i s  A r t i c l e ,  o r  p r o v i d e s  a  s e r v i c e  o n  t h e  b e h a l f  o f  a n d  a t  t h e  request of an employer, and not to the public. 
 
(D) "Employer" means a physical or legal person who, whether directly or through an 
intermediary, whether or not provisions on such an intermediary exist in national law, provides home working on behalf of his enterprise. 
 
Article 16.- Article 1 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 1.- Any employer who provides work to  be performed on behalf of the business to 
a home worker shall keep an electronic register in which the following information shall be recorded: 
 
(A) First name, surname and home address of the worker. 
 (B) Note on the quality and number of pieces of work assigned and the dates of dispatch 
and return thereof. 
 (C) Remuneration of the worker and statemen t of authenticity thereof evidenced by the 
employee's signature or digital fingerprint if unable to sign. 
 (D) The price and terms of compensation in th e event that the items dispatched are lost 
must not be greater than the cost of the materials dispatched and fines may not be 
imposed on workers. In the event that no agreement can be reached between the parties, the regulations shall lay down the mechanisms for arbitration". 
 
Article 17.- Article 2 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 2.- The employer shall keep an electr onic register to which he shall upload the 
information set out in paragraphs (A) and (B) of this article and shall issue a receipt to the 
home worker containing that information, namely: 
 
(A) The information set out in paragraphs (A),  (B) and (D) of the preceding Article. 
 (B) The agreed rate or the set minimum. G/SCM/N/253/URY • G/SCM/N/260/URY 
- 22 - 
  The data shall be supplied in electronic form to the General Labour Inspectorate, which shall 
hold a register of home workers containing all the necessary background information supplied to them by the businesses concerned". 
 
Article 18.- Article 3 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 3.- Occupational health and safety  rules shall apply to home working and the 
regulations shall lay down the conditions in which for health and safety reasons certain types 
of work and the use of certain substances may be prohibited in home working". 
 Article 19. Article 4 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 4.- Home working may not be performed on premises in which a person who has a transmissible disease is resident. 
 
The existing legislation shall apply in respect of controls." 
 
Article 20.- Article 5 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 5.- Any item made at home shall carry a label or inscription. The regulations shall specify the wording and other characteristics thereof deemed relevant by the Executive." 
 
Article 21.- Article 16 of Law No. 9.910  of 5 January 1940 shall be replaced with the following text: 
 
"ARTICLE 16.- In the event of non-compliance with the rules contained in this law, the 
respective responsibilities of employers and in termediaries in the areas of subcontracting, 
intermediation and hiring out of labour shall be governed by the provisions 
of Law No. 18.251  of 6 January 2008. 
 
The home-working entrepreneur or contractor shall be regarded as an employer for labour and welfare purposes". 
 
Article 22. (Equal treatment) Equal treatment be tween home workers and other salaried workers 
shall be promoted having regard to the particular characteristics of home working and, where 
appropriate, the conditions that apply to identical or similar work performed in an enterprise. 
 Equal treatment shall be fostered in respect of the following in particular: 
 
(A) The right of home workers to form or join the organizations of their choice and to 
participate in their activities. 
(B) Protection from discrimination in employment and at work. 
(C) Protection in terms of health and safety at work. 
(D) Remuneration. 
(E) Protection under statutory social security regimes. 
(F) Access to training. 
(G) The minimum age of admission  to employment or work. 
(H) Maternity protection. 
 
Article 23.- Salaried home workers and workshop workers shall be covered by the rules of common 
labour law, subject to the exceptions set out in this law.  
For the purposes of calculating compensation an d other benefits in the event of dismissal, 
the provisions of Law No. 13.555  of 26 October 1966 shall apply. 
 
The minimum fees for workshop workers shall be determined in accordance with the provisions 
of Law No. 18.566  of 11 September 2009. 
 
Article 24. (Penalties).- Failure to comply with the obligations imposed under this law 
on traceability and home working shall be subjec t to the imposition by the competent authority 
of penalties entailing controls, fines, confiscation of merchandise or closure of the premises, as appropriate. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
- 23 - 
  Article 25.- Articles 6  to 15 and 17 of Law No. 9.910  of 5 January 1940, as reworded in Article 1 of 
Law No. 10.441  of 20 August 1943 and in Article 1 of Decree-Law No. 10.312  of 8 January 1943 
and other legal provisions to the extent that they are inconsistent with this law are 
hereby revoked. 
 
TITLE V 
 
VALIDITY AND REGULATIONS 
 Article 26.- The Executive shall inform the Legislature of the results of the application of this law at 
the end of each year. 
 
Article 27.- This law shall enter into force thirty days after its publication. 
 
Article 28.- The Executive shall issue regulations im plementing this law within sixty days of its 
publication in the Official Journal. 
 
 Meeting Room of the House of Representatives, Montevideo, 15 November 2011. 
  
HORACIO YANES, 
3rd Vice-President. 
Virginia Ortíz, 
Secretary. 
 
 MINISTRY OF INDUSTRY, ENERGY AND MINING 
 MINISTRY OF THE ECONOMY AND FINANCE 
 MINISTRY OF LABOUR AND SOCIAL SECURITY   
Montevideo, 25 November 2011. 
 For implementation, acknowledgement of receipt, communication, publication and entry in the 
National Register of Laws and Decrees: the Law providing for a set of measures to strengthen and 
develop the national clothing industry.  
 
JOSÉ MUJICA. 
ROBERTO KREIMERMAN. 
LUIS PORTO 
EDUARDO BRENTA 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
- 24 - 
  MINISTRY OF INDUSTRY, ENERGY AND MINING  
MINISTRY OF THE ECONOMY AND FINANCE  
MINISTRY OF LABOUR AND SOCIAL SECURITY  
 
Implementing Decree No. 393/12  
  
HAVING REGARD TO: Law No. 18.846 of 25 November 2011 laying down measures to 
strengthen and develop the national clothing industry.  WHEREAS: under that law the Executive is responsible for issuing implementing regulations. 
 
CONSIDERING: (I)  That the mechanism to be established must encourage the 
competitiveness of the national clothing industry with reference to the particular situation in the 
sector which is experiencing unfavourable economic conditions. 
 
 (II) That furthermore measures must be taken to ensure the sector's 
sustainability, help to improve quality and working conditions, improve the model of production 
and establish sources of employment requiring sk illed labour, and reduce precarious employment. 
 MINDFUL: of the foregoing and in conformity with  the provisions of Article 168(4) of 
the Constitution.  
 
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
 
CHAPTER I  
 
GENERAL PROVISIONS  
 
Article 1.-  The National Directorate of Industry at the Ministry of Industry, Energy and Mining is 
the implementing body for the policy promoting the clothing industry as provided for in 
Law No. 18.846 of 25 November 2011, and is jointly responsible for formulating the policy in 
cooperation with the Ministry of the Economy and Finance and the Ministry of Labour and 
Social Security.  
In the performance of its duties it shall have the funds provided for in that law, distribute the 
relevant subsidies to the beneficiary enterprises and conduct the relevant controls including any inspections it deems relevant. Such controls and technical inspections may be entrusted to entities 
qualified to perform such activities without prejud ice to the competence of the National Directorate 
of Industry to apply any measures to which those controls give rise. 
 Article 2.-  The beneficiaries of the provisions of the present Decree shall be enterprises engaged 
in making up the products classified in Chapters 61 and 62 and tariff headings 4203.10, 
4303.10.00.21, 6302.21, 6302.22, 6302.31, 6302.32, 6505.90.00 and 9404.90.00.20, of the MERCOSUR Common Nomenclature.  
 
Article 3.-  For the purposes of the promotional system introduced, "making up" means the 
processing of raw materials or parts to produce clothing for commercial purposes. 
 
"Raw materials" in the promoted sector shall be considered to mean (i) cloth or textiles used to 
make up clothing included in Chapter 62 of the MERCOSUR Common Nomenclature (NCM), bed 
linen included in tariff headings: 6302.21, 6302.22, 6302.31, 6302.32 and product 9404.90.00.20; 
(ii) yarn or knitted or crocheted fabrics used in the making up of the clothing included under 
Chapter 61 and the products under subheading 6505.90.00; and (iii) uncut finished leathers used for the manufacture of leather clothing under subheading 4203.10 and for product 4303.10.00.21. 
 
None of the following tasks, whether performed indivi dually or in combination, shall be regarded as 
processing: labelling, clothing repairs, packaging,  printing, ironing, washing and dyeing, provided 
that they constitute the sole activity carried out by the enterprise. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
- 25 - 
  CHAPTER II  
 
THE ADVISORY COMMISSION  
 
Article 4.- The Advisory Commission established under Article 9 of Law No. 18.846 
of 25 November 2011 shall operate as part of the Ministry of Industry, Energy and Mining, 
comprising one representative from that Ministry, one from the Ministry of the Economy 
and Finance, one from the Ministry of Labour  and Social Security, one enterprise owners' 
representative and one workers' representative. Th e Ministry of Industry, Energy and Mining shall 
provide the Commission with the human, technical and material resources it requires to attain its objectives. 
 
Article 5.- The decisions of the Advisory Commission shall be taken by a simple majority of its 
members including at least two votes in favour from among the public sector representatives. 
The Commission shall adopt its own rules of procedure. 
 Article 6. - The most representative organizations of employers and workers in Group 5, 
Subgroup 3, or Group 4, Subgroup 2, shall appoint their full and alternate representatives to the 
Advisory Commission established under Article 9 of Law No. 18.846 and shall communicate the appointments to the Ministry of Labour and Social Security and the Ministry of Industry, Energy and Mining. The alternate representatives sh all exercise their membership entitlement 
automatically. The organizations may change both their full and alternate representatives as they 
deem necessary. The representatives of each mini stry shall be appointed pursuant to resolutions 
of the respective ministries, the enterprise owners' representatives shall be appointed 
by notification from the appropriate Chambers an d the workers' representatives by notification 
from their respective trades unions. The notificati ons shall be submitted to the National Directorate 
of Industry. 
 
CHAPTER III 
 
REGISTER OF CLOTHING ENTERPRISES 
 
Article 7.- The National Directorate of Industry shal l within 15 (fifteen) days following the 
approval of this decree establish the Register of  Clothing Enterprises (hereinafter the "Register") 
at the National Directorate of Industry of the Mi nistry of Industry, Ener gy and Mining, recording 
the enterprises that manufacture or import the pr oducts covered by Chapters 61 and 62 and tariff 
headings 4203.10, 4303.10.00.21, 6302.21, 6302.22, 6302.31, 6302.32, 6505.90.00 
and 9404.90.00.20 of the MERCOSUR Common Nomenclature. 
 The Register shall include the following data as a minimum: business name, legal form, identity of the proprietor(s) or legal or statutory representative(s), registration number in the 
Single Tax Register, registration number at the Social Security Bank, principal place of business, 
place of business of the legal representative(s), other premises where activities are carried out or products are stored, telephone and e-mail details. 
 
The manufacturers shall submit a sworn declaratio n of the number of staff employed at the time 
of registration accompanied by a copy of the ma ster staffing schedule and, where appropriate, 
the exporter number and registration with the LATU (Uruguayan Technological Laboratory). 
 Those documents shall be updated annually or as indicated by the Advisory Commission established under the law to which these regulations relate . 
 
Where a single enterprise is engaged in both manufacturing and importation, it shall be subject to each of the obligations imposed for each activity. 
 G/SCM/N/253/URY • G/SCM/N/260/URY 
- 26 - 
  CHAPTER IV  
 
SUBSIDY  
 
 Article 8.- In order to be eligible for the benefits provided for in Law No. 18.846 
of 25 November 2011, enterprises must be entere d in the Register and provide evidence in the 
form specified below that they are up to date with their fiscal, social security and social 
responsibility obligations. 
 Article  9.- Enterprises that conduct activities that are fully or partially promoted shall submit a 
sworn declaration every three months listing the workers assigned to each of the activities.  
 
Article 10.-  For the purposes of the law to which these regulations relate, an enterprise is 
regarded as being up to date with its social resp onsibility obligations when it complies with the 
employer/employee obligations arising from ratified international rules, laws, decrees, awards or 
decisions of the Wages Councils, or collective agreements registered at the Ministry of Labour and Social Security. 
 
Article 11.- The Advisory Commission may avail itself of the information derived from the 
Register of Non-Compliant Enterprises (REI) established under Article 321 of Law No. 17.930 of 19 December 2005 and regulated by Decree No . 263/006 of 7 August 2006, in order to assess 
compliance with the requirement provided for in the preceding article. 
 The Advisory Commission, having regard to the information provided by the General Labour and 
Social Security Inspectorate, may propose the excl usion from benefits of enterprises that have a 
record of repeated and/or seri ous negligence or violations. 
 
Article 12.-  The National Directorate of Industry may suspend the benefits provided for under the 
law to which these regulations relate where it establishes that there are discrepancies between the declarations made by the enterprise at the close of the relevant period, or where the data in the 
Register have not been updated in due time or fo rm, until such time as the situation is remedied. 
 
The Directorate shall permanently disqualify the enterprise as a beneficiary where it finds that a declaration has been made fraudulently or contains significant discrepancies or omissions. 
Moreover, it may take the same action against enterprises that are part of the same economic 
grouping or have the same proprietor(s) or statutory representative(s), without prejudice to submission of the appropriate reports. 
 
Significant errors or omissions in the information provided by the importing enterprise shall result in the latter bring placed under observation in the Register pending the final resolution of reports by the National Directorate of Industry. 
 
Any State agencies affected by a confirmed instance of non-compliance shall be notified accordingly to enable them to take the appropriate measures. 
 
Article 13.-  The amount of the total subsidy for the sector manufacturing textile and leather 
clothing shall be US$27,500,000 (twenty-seven million five hundred thousand dollars) 
over seven years on a basis of US$5,000,000 (five m illion dollars) annually in accordance with the 
sliding scale percentages specified in Article 7 of Law No. 18.846 of 25 November 2011, which shall be paid in quarterly instalments.  
Article 14.- A share of 33% (thirty-three per cent) of the subsidy shall be allocated to eligible 
enterprises in accordance with the percentage of each enterprise's wage bill as a share of the total wage bill of all beneficiary enterprises that satisfy the requirements of Articles 7, 8, 9 and 10 
of these regulations and Article 6(A) of Law No. 18.846 of 25 November 2011. The subsidy shall 
be paid quarterly except as stipulated in Article 17 of this decree.  
For the purposes of the calculation referred to above, where a single enterprise carries out 
promoted and non-promoted activities, regard shall be had solely to those activities that are within the scope of the benefit, and shall exclude acti vities outside that scope. The subsidy shall be 
distributed pro rata  on the basis of the computable allocations declared to the Social Security Bank 
in respect of the staff assigned to the promoted activity. G/SCM/N/253/URY • G/SCM/N/260/URY 
- 27 - 
   
Article 15.- When calculating the subsidy payable to each enterprise, the wage bill shall be 
measured in accordance with the payroll declared to the Social Security Bank and the declaration by the enterprise, certified by the Public Accoun tant, specifying what portion of the wage bill 
corresponds to promoted activities and what portion to non-promoted activities in accordance with 
the following criteria:  
 1. For enterprises whose activities are fu lly promoted by the regulated regime the 
calculation of the relevant share shall take account of the total amount of workers' wages, including those of staff in managerial, administrative, accountancy, service and packaging roles, in accordance with the payroll declared to the Social 
Security Bank. 
  2. For enterprises that carry out partially promoted activities, the subsidy shall be 
calculated pro rata  on the basis of the wages of the workers assigned to the promoted 
activity. The calculation shall conform to the following criteria: 
 
(a) Where the promoted activity accounts for 50% or more of staff and total 
turnover, the following factors from each immediately preceding annual period shall be taken into account for the purposes of the calculation: the wages of workers directly assigned to the prom oted activity; and a share of the wages 
of staff in managerial, administrative, accountancy, service and packaging roles 
proportional to turnover under the promoted activity in relation to total turnover. 
 
(b) For enterprises that carry out partially promoted activities where the promoted 
activity accounts for less than 50% of staff or total turnover, the only factor 
taken into account from each immediately preceding annual period shall be the 
wages of workers directly assigned to the promoted activity. 
 The Advisory Commission shall answer enquiries from enterprises about how the incidence of the 
activities concerned is to be estimated. 
 Article 16.- For the purpose of verifying the requiremen t that the subsidy does not exceed 20% 
of the wage bill for the promoted activity as pr ovided for in Article 6 of Law No. 18.846, the wage 
bill shall be calculated on the basis of the declarations referred to in the preceding article.  
Article 17.- In 2012 advance payment of the entire subsidy for the year shall be made 
where the beneficiary enterprise records a decline in sales in the first quarter of 2012 of 15% (fifteen per cent) or more compared to the average for the same quarter of the two previous years. 
 
In 2012 the share for each enterprise compared to the total for all beneficiary enterprises shall be 
determined on the basis of the wage bill for 2011. 
 
In the event that the decline referred to in the first subparagraph of this article occurs in the 
second or third quarter of 2012 for some enterprises, the advance payment shall correspond to the 
residual amount for the year. 
 The quarterly payments for the financial year in question shall be equivalent to 25% (twenty-five per cent) of the annual amount  of the subsidy calculated for each enterprise. 
 
Article 18.- For the years 2013 to 2018 payments shall be made quarterly on the basis of the 
percentage of each enterprise's wage bill as a share of the total wage bill for all beneficiary 
enterprises in the quarter preceding the quarter in which the subsidy is paid. 
 Article 19.-  Enterprises shall submit the information on the Social Security Bank payment for the 
quarter preceding payment of the subsidy on the date laid down by the National Directorate 
of Industry, which date may not be later than five working days following the last date of payment to the Social Security Bank. As of that date the National Directorate of Industry shall commence the relevant calculations and issue payment orders. 
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  Article 20.- Any amounts not distributed in each financial year under Article 6, paragraphs (A) 
and (B) of the law to which the present regulations relate shall be transferred to paragraph (C). 
Surpluses under that paragraph shall be carried forward to paragraph (C) of the following financial year. 
 
Funds that have not been distributed at the end of the seventh year following the commencement of the annual allocation under paragraphs (A), (B),  and (C) shall be distributed as provided by the 
law until the funds are exhausted. 
 Article 21.- A share of 33% (thirty-three %) of the subsidy shall be allocated to workers duly 
registered with the Social Security Bank within the categories referred to in Article 4 of the law, 
who have performed a minimum of 60 days' work in the year in the promoted sector; additionally, 
they must have been working at the date of the annual workers' payroll closure.  
The National Directorate of Industry shall directly transfer the payroll of beneficiary workers and 
the relevant amounts to the Social Security Bank, which shall make the payment of the subsidy no later than the month following the month of receipt of the payroll and the funds allocated to pay 
the subsidy. 
 The subsidy shall be distributed between the workers registered in the Social Security Bank via the 
mechanisms established by that bank and th e Ministry of Labour and Social Security. 
 
The funds for each worker shall be distributed annually in the form of a set amount in equal shares, shall not be liable to social security levies, and shall not be taken into account for the 
payment of any type of wages, differentials or indemnities. 
 The Register shall supply the list of workers which must be cross-checked against the information 
held at the Ministry of Labour and Social Security. 
 A formal worker who falls within the scope of th e subsidy under Article 6(B) of the law shall be 
entitled to receive that subsidy even where the enterprise in which he works has not been entered 
in the Register, in which case the worker shall be responsible for the registration and 
cross-checking against the list of beneficiaries published by the National Directorate of Industry.  
The rules of procedure of the Advisory Commission shall lay down the mechanism for registration 
in the list conferring el igibility for the benefit. 
 
For purposes of collection of the workers' su bsidy, "beneficiaries" means persons working in 
enterprises engaged in promoted activities. For enterprises that perform promoted and non-promoted activities "beneficiaries" means persons who satisfy one of the following two requirements: 
 
(a) the production process they are engaged in is entirely vertical and the raw material is 
processed in the enterprise and used in the promoted activity within the enterprise, or  
 
(b) the workers meeting in wages council reach a decision as to the promoted activity 
whether in Group 5, Subgroup 3 or Group 4, Subgroup 2. 
 
Article  22.- A share of 34% (thirty-four per cent) of the subsidy along with any annual surpluses 
from the funds distributed among the enterprise  owners and workers shall be allocated among 
enterprises on the basis of the projects they submit  for development of their production capacity in 
conformity with the provisions of Articl e 6(C) of Law 18.846 of 25 November 2011. 
 The aspects considered when rating the eligibility of projects shall include investment 
in technological modernization, expansion of production capacity, staff training, incorporation 
of design elements in the product, innovation s or improvements in business and industrial 
management systems and investment to improve environmental, health and safety conditions 
at work. 
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  The Advisory Commission shall have a period of thirty days to approve projects, as from the date 
when the enterprise has supplied all the informat ion required. The rules of procedure shall lay 
down the maximum time-limits for submission by the authorities and enterprises of any reports or documentation requested. 
 
The annual amount per enterprise shall be equivalent to 100% (one hundred per cent) of the amount it received as a wage bill subsidy in the immediately preceding year. 
 
An amount equivalent to 10% (ten per cent) of th e wage bill for the four preceding quarters shall 
be allocated for the first year and the amount may be reassessed, in the event that a surplus is realized, up to the amount of the subsidy paid on the basis of the wage bill, at year end. A similar 
condition shall apply to new enterprises, which must have been engaged in the promoted activities 
for 12 months and fulfil the requirements for eligibility.  
Article  23.-  The recipient projects shall be co-financed by the enterprise in a minimum amount 
of 20% (twenty per cent) in case of social responsi bility certifications by international enterprises, 
or staff training by recognized establishments or certifiers, and in a minimum amount of 40% 
(forty per  cent) in all other cases. Specifically promoted projects, with a minimum level 
of own co-financing shall include activities which lead to the award of certifications of the kind referred to above and to improvements in environm ental, health and safety conditions at work. 
The rules of procedure shall lay down the criteria to be applied for the allocation of benefits. 
 
A register of past projects submitted by enterpri ses shall be kept, comprising approved projects 
and rejected projects. A history of total or partial rejections of projects from one enterprise will 
increase the level of risk, require greater controls and more information, and will negatively impact 
the percentage amount of the subsidy.  
 
Article  24.- Fiscal, social security and social responsibili ty obligations shall be regarded as having 
been discharged upon submission of valid certificates attesting that payments are up to date, issued by the Social Security Bank, the Directorate-General of Taxation and the State Insurance Bank. 
 
Penalties for failure to comply with general and environmental working conditions, as applied by the General Labour Inspectorate of the Ministry  of Labour and Social Security, shall act as an 
indicator of shortcomings in the area of social responsibility referred to in Article 4 of the law 
to which the present regulations relate; and where those shortcomings affect safety, health 
and hygiene or may result in accidents or the development of occupational diseases, they may 
entail suspension of payment of the benefit unt il such time as they are resolved and the 
observations giving rise to the said penalties have been withdrawn.  In the event of obstruction of work carried out by  any of the inspection agencies, the mechanisms 
provided for in the regulations for each agency shall apply and this fact shall be notified to the 
Register of Clothing Enterprises.  
Article 25.-  Proclaimed, published, etc. 
  
JOSÉ MUJICA 
President of the Republic 
 
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