G/SCM/N/275/GRD  
 
21 August 2014  
(14-4811)  Page: 1/8  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
TRANSPARENCY NOTIFICATION CONCERNI NG THE EXTENSIONS  PROVIDED FOR  
IN ARTICLE 27.4 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING  
MEASURES OF THE TRANSITION PERIOD FOR THE ELIMINATION OF EXPORT  
SUBSIDIES, GRANTED PURSUANT TO THE PROCEDURES IN THE  
GENERAL COUNCIL DECISION WT/L/691 
GRENADA  
The following communication, dated 1 July 2014, is being circulated at the request of the 
Delegation of Grenada.  
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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 
Notification on Current Incentive Programmes under Article XVI:1 of the GATT 1994 and Article 25  
of the SCM Agreement. We 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 keeping 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/275/GRD 
 
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  1  STATUTORY RULES AND ORDERS NO. 37 OF 1999 (LIST OF CONDITIONAL DUTY 
EXEMPTION - CARICOM CO MMON EXTERNAL TARIFF) 
A. Description of the programme 
 
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 set out in the Schedule of rates.  2. Period covered by the notification 
 As of 1 July 2013 - 30 June 2014 – programme status.  
3. Policy objective and/or purpose of the subsidy 
 
To provide for the development of Grenada's priori ty economic sectors, social services, 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 order to introduc e 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, Stat utory 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 enterprises, 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 Developed 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/275/GRD 
 
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  The Comptroller 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 and 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/commencement 
 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 effects 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) Statut ory 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 th e Agreement that forms the Caribbean Common 
Market of which Grenada is a member. All member of the CARICOM Common Market apply 
the CET.  
SRO No. 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 subsidie s under SRO No. 13 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.   2  FISCAL INCENTIVES ACT 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 2013 - 30 June 2014– 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.  G/SCM/N/275/GRD 
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
Background 
 The promotion of private investment is an integral  part of the development plan of Grenada as we 
continue to diversify production and reduce our reliance on Agricultural production. Economic 
expansion generates demand for foreign exchan ge. 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 Industrial 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, equipmen t, 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 enterprise, 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 
 
 Complete 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 given to the Enterprise, that is 10 - 15 years. 
 Where shareholders or their nominees 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 shareh older in his country of residence. 
 Where the export profits of enterprise s referred to in the Act, 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; - The production day; G/SCM/N/275/GRD 
 
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  - 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 th e tax holiday applicable 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 produc tion is exclusively for export; up to 
15 years; and 
 
- Highly capital intensive industry, one in which the capital investment is not less 
than US$25 million, up to 15 years. 
 
Export profits is determined by the formula: 
E x P  
 S 
where "E" represents proceeds from export  sales, "P" represents profits ma de by the enterprise 
and "S" represents the proceeds 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 an assessment of the trade effects of the subsidy 
 Statistical data not available.  
B. Description of domestic procedures necessary to eliminate export subsidy 
 The Fiscal Incentives Act has to be repealed. The Investment Promotion Act 22 of 2009 repeals the 
Fiscal Incentives Act.  G/SCM/N/275/GRD 
 
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  C. Description of actions taken 
 At present there are no beneficiaries of export subsidies, therefore there were no beneficiaries to notify in Grenada. 
 
In August 2008, Government of Grenada undertook to review its investment policy in particular, a review of legislation pertaining to fiscal incentive programmes including those notified to the WTO 
and the plan of action for implementing the deci sion in the extension of Article 27.4 programmes. 
 In May 2009, the Investment Promotion Bill was completed. The Grenada Investment Promotion Act has been passed through Parliament and signed  by the Governor General and is awaiting the 
completion of the incentives regime before being published in the National Gazette.  
 D. Description of future actions  
 
New legislation has been passed through parliament and has been assented by the Governor General. The development of a new incentive regime is to be completed by 31 December 2014. 
Grenada's new investment policy is to be legislated by an act of parliament to be known as the 
Grenada Investment Promotion Act. The Act will repeal and replace the Fiscal Incentives Act (1974), the Qualified Enterprises Act (1978), The Investment Code Incentive Act (1983) and the Hotels Aid Act (1960). The Act is intended to remove all export subsidies and to provide an 
efficient, effective and transparent system for administering investment incentives and concessions 
and for the non-discriminatory treatment of investors.  
3  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 conferment 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 2013 - 30 June 2014 – 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 ad vantag e or s im i lar c onc e s s ion e njoye d  or to b e  e njoye d  b y an e nte rpris e  und e r any othe r 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 affected, 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 according to paragraph 4 of document G/SCM/39.  G/SCM/N/275/GRD 
 
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  Authority 
 
Qualified Enterprises Act No. 18 of 1978, Chapter 270 of the 1990 Revised Laws of Grenada.  
The Grenada Industrial Development Corporation (GIDC) is responsible for administering this 
incentive programme.  
5. Form of subsidy 
 
The Qualified Enterprises Act provides for tax be nefits 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 subsidy 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 Fiscal 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, prov iding information 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 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. Also no annual amount is 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 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 
 
At present there are no beneficiaries of export subsidies, therefore there were no beneficiaries to notify in Grenada.  
In August 2008, Government of Grenada undertook to review its investment policy in particular, a 
review of legislation pertaining to fiscal incentive programmes including those notified to the WTO and the plan of action for implementing the deci sion in the extension of Article 27.4 programmes. 
 
In May 2009, the Investment Promotion Bill was completed. The Grenada Investment Promotion Act has been passed through Parliament and signed  by the Governor General and is awaiting the 
completion of the incentives regime before being published in the National Gazette. 
 G/SCM/N/275/GRD 
 
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  D. Description of future actions  
 New legislation has been passed through parliament and has been assented by the Governor General. The development of a new incentive regime is to be completed by 31 December 2014. 
Grenada's new investment policy is to be legislated by an act of parliament to be known as the 
Grenada Investment Promotion Act. The Act will repeal and replace the Fiscal Incentives Act (1974), the Qualified Enterprises Act (1978), The Investment Code Incentive Act (1983) and 
the Hotels Aid Act (1960). The Act is intended to remove all export subsidies and to provide an 
efficient, effective and transparent system for administering investment incentives and concessions and for the non-discriminatory treatment of investors.  
 
 
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