G/SCM/N/343/MAR  
14 February  2019 
(19-0881) Page: 1/6 
Committee on Subsidies and Countervailing Measures  Original:  French  
 
  
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  
MOROCCO  
The following communication, dated 1 3 February 2 019, is being circulated at the request of the 
delegation of Morocco.  
 
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The attached notification from Morocco contains information on programmes granted or maintained 
in Morocco during 2017 and 2018 . 
 
Morocco initially drafted  this notification, which solely concerns programmes for the maritime 
fisheries sector , to fulfil the commitment made under paragraph 2 of the Ministerial Decision 
of 13 December  2017, adopted at the Buenos Aires Ministerial Conference held from 
10-13 December  2017 (WT/MIN(17)/64).  
 
Nevertheles s, with regard to other sectors , Morocco is collecting the necessary data to submit a 
complete  notification as soon as possible.  
 
Pursuant to  Article  25.7 of the Agreement on Subsidies and Countervailing  Measures  
(SCM  Agreement) , this notification does not prejudge , under GATT 1994 and the SCM Agreement : 
(i) the legal status of the notified programmes ; (ii) their effects ; or (iii) the nature of  the programmes 
themselves.  
 
Data may reflect approximations, estimates, or preliminary information . Technical or legal 
inaccuracies may have been inadvertently introduced in the text , given the focus on making  the 
description of the programmes sufficiently illustrative, but also straightforward and concise.  
Table of Contents  
1  FISHERIES AND AQUACULTURE SECTOR  ................................ ................................ ...... 2 
1.1  Removal of taxes on energy products ................................ ................................ ..............  2 
1.2  Reduced VAT rate and import duty rate for fishing bait, nets and gear  ................................  2 
1.3  VAT exemption for certain operations involving fishing vessels  ................................ ...........  3 
1.4  VAT exemption and import duty reduction for aquaculture sector inputs  ..............................  4 
1.5  Programme for the modernization of the fisheries sector  ................................ ...................  5 
1.6  Programme for the purchase of seines  resistant to attacks by common bottlenose 
dolphins  ................................ ................................ ................................ .............................  6 
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  1  FISHERIES AND AQUACULTURE SECTOR  
1.1  Removal of taxes on energy products  
1. Title of programme  
 
Removal of taxes on energy products . 
 
2. Period covered  by the notification  
 
2017 and 2018. 
 
3. Policy objective  and/or purpose  
 
Full exemption from customs duties and all other duties and taxes on fuels and lubricants used for 
maritime navigation by fishing vessels sailing under t he Moroccan flag . This tax removal aims to 
reduce the burden of the excessive taxation of energy products applicable to Morocco , for the benefit 
of certain professionals, including fishing professionals . 
 
4. Background  and authority  
 
Article 164 -1(i) of the Customs and Excise Code  
Article 123 -8 of the General Tax Code  
Article 1 of Decree No. 2-85-890 of 18 Rabi II 1406 (3 1 December 1 985) 
Article 3( h) of the Dahir establishing Law No. 1-77-340 of 25 Shawwal 1397 ( 9 October 1 977) 
 
5. Form of the subsidy  
 
Tax concession in relation to  the local market r etail price for energy products . 
 
6. To whom and how the subsidy is paid  
 
The subsidy is granted to vessels which comply with regulations and which must periodically justify 
the effective use of energy products for fishing operations.  
 
7. Total amount  
 
In 2017,  the removal of taxes on fuels for vessels benefitting from this tax concession (of which 
fishing vessels make up only one part ) amount ed to around 145 million  dirhams.  
 
8. Duration of the programme  
 
Not determined . 
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
1.2  Reduced VAT rate and import duty rate for fishing bait, nets and gear  
1. Title of programme  
 
Reduced VAT rate and import duty rate for fishing gear  and equipment . 
 
2. Period  covered by the notification  
 
2017 and 2018. 
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  3. Policy objective  and/or purpose  
 
Application of a reduced VAT rate (10% instead of  20%) with the right to deduction  on fishing bait, 
nets and gear  that are intended for  maritime fishing professionals and purcha sed new . 
 
Application of a reduced rate of 2.5% on import duties . 
 
This measure  ensures that shipowners purchase fishing equipment on the official market  and that  
gear compl ies with national regulations.  
 
4. Background  and authority  
 
Article 121 -2 and 99-1 of the General Tax Code  
Article 164 bis -1(k) of the Customs and Excise Code  
 
5. Form of the subsidy  
 
Tax concession . 
 
6. To whom and how the subsidy is paid  
 
Shipowners . 
 
7. Total amount  
 
In 2017,  the fiscal cost of the application of the reduced rate of 10 % with the right to deduction on 
fishing gear and nets intended for  maritime fishing  professionals was around 50  million  dirhams.  
 
8. Duration of the programme  
 
Not determined . 
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
1.3  VAT exemption for certain operations involv ing fishing vessels  
1. Title of programme  
 
VAT exemption for certain operations involv ing fishing vessels . 
 
2. Period covered by the notification  
 
2017 and 2018. 
 
3. Policy objective and/or purpose  
 
VAT exemption with the right to deduction on the sale, repair or conversion of seagoing vessels , 
including vessels engage d mainly in maritime navigation . 
 
VAT exemption with the right to deduction on the sale, to naviga tion enterprises, fishing 
professionals and fishing vessel owners , of products intended for in corporation in seagoing vessels . 
 
VAT exemption for imports of fishing vessels of any tonnage.  
 
4. Background and authority  
 
Article 92.1.33 of the General Tax Code  
Article 92.1.34 of the General Tax Code  
Article 123.9 of the General Tax Code  
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  5. Form of the subsidy  
 
Tax concession . 
 
6. To whom and how the subsidy is paid  
 
Shipowners . 
 
7. Total amount  
 
Not available.  
 
8. Duration of the programme  
 
Not determined . 
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
1.4  VAT exemption and import duty reduction for aquaculture sector inputs  
1. Title of progra mme 
 
VAT exemption for aquaculture sector inputs . 
 
2. Period covered by the notification  
 
2017 and 2018 . 
 
3. Policy objective and/or purpose  
 
VAT exemption with the right to  deduction on food intended for use as feed for fish and other aquatic 
animals , fish and aquatic animal larva, and spat. 
 
VAT exemption for imports of food intended for use as feed for fish and other aquatic animals, fish 
and aquatic animal larva, and spat . 
 
Reduction of import duties to 2. 5% (instead of  25%) for fish feed under tarif f heading  2309.90.90.82 
within the limits of a quota of 15,000  tonnes per year . 
 
The aim of these exemptions is to promote the development of the marine aquaculture sector in 
light of the burden of inputs on the cost of  farmed  fish production and the high subsidization of 
aquaculture by other countries . 
 
4. Background and authority  
 
Article 123 -51 of the General Tax Code  
Article 8 of Finance Law No. 68-17 for the budget year  2018 
Article 92 , paragraph 50 of the General Tax Code  
Article 6 of the 2018 Finance Law 
 
5. Form of the subsidy  
 
Tax concession . 
 
6. To whom and how the subsidy is paid  
 
Operators in the aquaculture sector . 
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  7. Total amount  
 
Not available . 
 
8. Duration of the programme  
 
Not determined for VAT exemptions . 
 
From 1 January 2 018 to 3 1 December 2 023 within the limits of an annual quota of 15,000  tonnes 
for the application of the reduced import duty rate of 2.5 %. 
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
1.5  Programme for the modernization of the fisheries sector  
1. Title of programme  
 
Programme to modernize fishing activities.  
 
2. Period  covered by the notification  
 
2017 and 2018 . 
 
3. Policy objective  and/or purpose  
 
Programme for the purchase of standardized containers with the aim of  preserving  the quality of the 
catch and eliminating the use of wooden boxes to carry and transport fish.  
 
Programme for the purchase of isothermic boxes with the aim of  equipping vessels operating in the 
traditional fishing sector with boxes for carrying and transporting  the catch . 
 
4. Background  and authority  
 
Programme launched by the Department of Mar itime Fishing in line with its " Halieutis " fishing 
strategy . 
 
5. Form of the subsidy  
 
Public investment . 
 
6. To whom and how the subsidy is paid  
 
Shipowners are the  direct beneficiaries of the Programme.  
 
Nevertheless , the implementation of the Programme benefits all operators in the fish distribution 
chain  by ensuring a high -quality  product that meets hygiene standards.  
 
7. Total amount  
 
260 million  dirhams : total cost  for the purchase of containers under the standardized container 
programme.  
 
18 million  dirhams for the two years (Mediterranean  only): Programme for the purchase of 
isothermic boxes . 
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  8. Duration of the programme  
 
Programme for the purchase of standardized containers : subject to a time-limit. 
 
Programme for the purchase of isothermic boxes : implementation staggered by geographical region . 
The South Atlantic is already covered . The North Atlantic will be covered after 2018.  
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
1.6  Programme for the purchase of seines resistant to attacks by common bottlenose 
dolphins  
1. Title of programme  
 
Programme for the purchase of seines resistant to attacks by common  bottlenose dolphins . 
 
2. Period covered by the notification  
 
2017 and 2018 . 
 
3. Policy objective and/or purpose  
 
This programme subsidizes the purchase of new seine nets by seiners operating in the Mediterranean 
that have experienced attacks by the common bottlenose dolphin (" el negro "), which is a protected 
species, most notably  under the Agreement on the Conservation of Cetaceans in the Bl ack Sea, 
Mediterranean Sea and Conti guous Atlantic Area (ACCOBAMS).  
 
4. Backgroun d and authority  
 
Programme launched by the Department of Mari time Fishing in view of  the significant damage caused 
by dolphin  attacks and the vulnerability of the fisheries sector in the Mediterranean . 
 
5. Form of the subsidy  
 
Direct subsidies . 
 
6. To whom and how the subsidy is paid  
 
The subsidy is granted directly to fishers using  purse seine s who suffer losses due to dolphin attacks.  
 
7. Total amount  
 
178 million  dirhams for 2017 and 2018 . 
 
8. Duration of the programme  
 
Subject to a time-limit. 
 
9. Trade effects  
 
It is not possible to determine  what, if any, trade effects result from the use of these measures.  
 
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