. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q3/DOM/17 
13 September 2012 
 (12-4900) 
Committee on Subsidies and 
Countervailing Measures Original: Spanish 
 
 
 
SUBSIDIES 
 
Continuation of Extension under SCM Ar ticle 27.4 of the Transition Period 
for the Elimination of Export Subsidies Pursuant to the 
Procedures in Document WT/L/691 
 
Questions from COLOMBIA concerning the Updating 
Notification of the DOMINICAN REPUBLIC1 
 
 
 The following communication, dated 10 September 2012, is being circulated at the request of 
the delegation of Colombia.  
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Programme:  Law No. 8 -90 to "promote the establishment of  new free zones and expand existing 
ones".  Summary:  Tax exemption programme for enterprises ma nufacturing goods or providing services 
related to goods production, located within geogra phic areas known as free zones, and the production 
of which must be mainly for export.  
Question 1 
 
 Has the Dominican Republic explicitly notifie d the beneficiaries of the tax exemption 
programme contained in Law No. 8 -90 that, in accordance with the obligations under the 
SCM Agreement and specifically the provisions of Article 27.4 thereof, the measure will not be 
extended beyond 31 December 2015 and that its dismantling will begin by 2013 at the latest?  If so, 
what is the procedure for notifying these benefi ciaries, and does the Dominican Republic envisage 
any transition programme towards total dismantling?  Have any domestic measures been taken yet to 
eliminate the subsidies?  Could you provide us  with documentation relating to this process? 
 
Question 2 
 
 Point 9(a) of the Dominican Republic's notifi cation states that resolutions and/or operating 
licences issued under the free -zone regime established by Law No. 8 -90 contain the following 
paragraph:  " As of 2015, the Dominican Republic will reserv e the right to review and/or withdraw 
some of the incentives contained in Law No. 8 -90, pursuant to the Decision of the World Trade 
Organization (WTO) Committee on Subsi dies and Countervailing Measures, … ". 
 
                                                      
1 G/SCM/N/243/DOM. G/SCM/Q3/DOM/17 
Page 2  
 
   (a) Could the Dominican Republic please explain why it is stated that " As of 2015, the 
Dominican Republic will reserve the right to  review and/or withdraw some of the 
incentives … " when pursuant to Decision WT/L/ 691 dismantling must be envisaged 
by 2013 at the latest?  Is the Dominican Republic planning to review and/or withdraw some of the incentives?  As we all know, the Decision establishes that the "last 
authorized period" referred to in the last  sentence of SCM Article 27.4 shall not 
extend beyond 31 December 2013, and the final two -year phase -out period provided 
for in the last sentence of SCM Article 27.4 shall end not later 
than 31 December 2015 ; 
 
 (b) Could the Dominican Republic also expl ain why it uses the wording "review and/or 
withdraw" instead of explicitly saying "withdraw"? 
 
Question 3 
  Point 9(b) of the Dominican Republic's notification states that a draft law on free zones which 
provides for the complete dismantling of export subsidies was submitted to Congress on 6 July 2010 
and is currently being reviewed and discussed by the Dominican Republic's Senate Commission on 
Industry, Commerce and Free Zones.  Given that more  than two years have passed since this draft law 
was submitted to Congress, could the Dominican Repub lic please share with Members the results of 
its passage through Congress? 
 
Question 4 
 
 Point 7 of the notification appears to indicate that the Government of the Dominican Republic 
does not have the information required to estimate the amount of the subsidies granted.  If this is the 
case, how can the Dominican Republic ensure that th e status quo of the programme is maintained?  
Would it be possible, instead, for the Dominican Re public to provide the annual value in CIF terms of 
goods from abroad entering the free zones and the rates actually exempted from taxes, so that we can 
have an approximate figure for the amount of the subsidies granted?  
Question 5 
 
 When does the Dominican Republic plan to s ubmit its action plan for eliminating export 
subsidies, as required under paragraph 1(f) of Decision WT/L/691?  
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