G/SCM/Q2/JPN/63  
 
6 May 2014  
(14-2729)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
QUESTIONS POSED BY THE UNITED STATES REGARDING THE NEW 
AND FULL NOTIFICATION OF JAPAN1 
The following communication, dated 2 May 2014, is being circulated at the request of the 
Delegation of the United States.  
_______________ 
  Japan only notified nine local government subsidies programs in its most recent New and Full 
Subsidy Notification (G/SCM/N/253/JPN). However, publicly available information
2 appears to 
indicate that there may be other government su pport programs administered at the prefectural 
level that appear to meet the requirements of a notifiable subsidy, including: 
 
1  OSAKA 
1.1  Subsidy for Business Start-Up of Foreign-Capital Enterprise 
 We note that these incentives are provided to "Foreign-affiliated companies (foreign 
capital rate: 1/3 higher) expanding into Osak a Prefecture through the establishment of a 
new headquarters or Asian base." 
1.2  Subsidy for Promotion of Investment 
 We note that these incentives are provided to "SMEs that build or renovate factories or 
R&D facilities in a designated location." 
1.3  Kansai Innovation Comprehens ive Global Strategic Special Zone 
 We note that these incentives are provided to "New energy- and life sciences-related 
companies with an approved business plan expanding into the prefectural Special Zone (Yumeshima, Sakishima, and Hanshin Port district, surrounded by Osaka Station, Kita 
Osaka, and Kansai International Airport district)." 
1.4  Taxation System for Indu strial Accumulation Promotion 
 We note that these incentives are provided to "SMEs acquiring factories, R&D centers, 
warehouse premises, and land in the Industrial Accumulation Promotion area and 
receiving preferential treatment on acqu isition provided by municipalities." 
1.5  Support provided by Osaka Busi ness and Investment Center (O-BIC) 
 We note that these incentives are provided to "Foreign-affiliated companies (when its 
f o r e i g n  c a p i t a l  r a t e  i s  1 / 3  o r  h i g h e r )  s e t t i n g  u p  t h e i r  h e a d  o f f i c e  o r  b r a n c h  i n  O s a k a  
during the set period with support from O-BIC or local municipalities." 
                                               
1 G/SCM/N/253/JPN. 
2 http://www.jetro.go.jp/en/invest/region/basic/  G/SCM/Q2/JPN/63 
 
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  2  KAGOSHIMA 
2.1  Business Location Promotion Subsidy for Kagoshima 
 We note that these incentives are provided to "Manufacturing-, distribution-, 
information-, and communication-related, and R&D centers." 
2.2  Capital Investment Promotion Subsidy for Production in Kagoshima 
 We note that these incentives are provided to the "manufacturing" industry. 
2.3  Subsidy for Maintaining Specified Plant Facilities in Kagoshima 
 We note that these incentives are provided to "Industrial water special processing 
facilities, special high-voltage power distribution line facilities (22kV or higher)." 
2.4  Business Location Fund Loan 
 We note that these incentives are provided to "Manufacturing, distribution, information-, 
and communication-related, and R&D centers." 
2.5  Exemption from prefectural tax under th e ordinance and non-uniform taxation, etc. 
 We note that these incentives are provided to "Manufacturing, software business, and 
distribution." 
3  FUKUSHIMA 3.1  Subsidies for Promotion of Strategic Enterprises (2011 to 2012) 
 We note that these incentives are provided to  
 
1. "Manufacturing factories and research laboratories for Environment and new 
energy-related industries, Commerce and Agriculture-related industry cooperation, 
transportation machinery, semiconductor-related industries   
2. Industries designated agglomeration industries in the Basic Plan agreed upon by 
the national government based on the Enterprise Location Promotion Law 
3. Enterprises specially approved by the governor." 
3.2  Fukushima Prefecture Enterprise Location Fund Loan System 
 We note that these incentives are provided to "Enterprises establishing new business at 
sites suitable for factories, industrial parks, or agri-industrial sites in Fukushima 
Prefecture, and those expanding or relocating existing facilities to such sites." 
 3.3  Loan program for Regional General Plant and Equipment Fund (Furusato Loan) 
 We note that these incentives are provided for "Expenses for Plant and Equipment 
Investment." 
 3.4  Preferential Tax Measure 
 We note that these incentives are provided to entities whose "sum value of acquired 
industrial plant and equipment should exceed 27 million yen." 
 
4  KANAGAWA 
4.1  Financial grant to promote new locations of foreign businesses 
 We note that the requirements for these incentives are  G/SCM/Q2/JPN/63 
 
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  1. "Applicant must be a foreign business with 100% foreign ownership that is 
planning to establish a new factory or laboratory within Kanagawa. 
2.  Applicant must be in the manufacturing or information technology sector. 
3.  Applicant must hire more than 5 new employees at a newly established facility, 
and at least 3 of these must be either Japanese or permanent residents." 
4.2  Financing System for Supporting Industry Concentration 
 We note that the requirement for these incentives is "Applicants must be have an 
approved priority support project or general support project." 
 
Please provide full details on each of these and an y similar Prefecture-level subsidies, or explain 
why these programs are otherwise not notifiable.   
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