RESTRICTED  
  
WT/ACC/SYC/45/Rev.2  
 
8 September 2014  
(14-5051)  Page: 1/7  
Working Party on the 
Accession of the Republic of Seychelles  Original: English  
 
 ACCESSION OF SEYCHELLES 
DRAFT NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 AND  
ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES 
Revision 
The following submission, dated 3 September 2014, is being circulated at the request of the 
Delegation of Seychelles.   
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 WT/ACC/SYC/45/Rev.2 
 
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  Note by the Delegation of Seychelles: Pursuant to Article XVI:1 of the GATT 1994 and Article 25 
of the Agreement on Subsidies and Countervailing Measures (ASCM), Seychelles submits herewith 
the new and full draft notification for the fiscal year 2012.  In accordance with Article 25.7 of the ASCM, the notification of the measures concerned does not prejudge their legal status, effects 
or nature under the GATT 1994 and the ASCM. 
I. ABATTOIR SUPPORT 1.  Title of programme 
Abattoir support 
2.  Period Covered by the notification 
Fiscal year 2012 (i.e. 1 January 2012 - 31 December 2012) 
3.  Policy objective and/or purpose 
(a) As part of the exercise to privatize state owned enterprises, the abattoir was 
privatized in 2012. Given that this was a new form of activity for private sector 
participation, it is thus classified as an infant industry. 
(b) The assistance is given to the abattoir as a support mechanism designed to ensure 
that the slaughter of animals remains at an affordable price, while maintaining high hygienic and SPS standards in th e form of infrastructure support. 
4.  Background and authority 
The assistance is administered by the Ministry of Finance, Trade and Investment. 
5. Form 
Cash payment 
6.  To whom and how the assistance is provided 
The assistance is provided to the central abattoir on a monthly basis, on the condition that 
the abattoir provides its monthly production data, which serves as a control mechanism for 
disbursement of the subsidy. 
7.  Amount 
The total subsidy disbursed to the abattoir for the year 2012 amounted to SR3,600,000. 
8.  Duration 
This is a 5-year programme, subject to yearly reviews. 
9. Statistical data permitting an assessment of the trade effects 
No data available WT/ACC/SYC/45/Rev.2 
 
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  II. INVESTMENT LOANS FOR AGRICULTURAL SECTOR 
1.  Title of programme 
Investment loans for agricultural sector 
2.  Period Covered by the notification 
Fiscal year 2012 (i.e. 1 January 2012 - 31 December 2012) 
3.  Policy objective and/or purpose 
(a) To provide loans to agricultural producers (farmers) to invest in sustainable and 
environmentally friendly means of farming activities, taking into consideration 
Government's strong policy in preserving the country's fragile eco-system. 
(b) This support is also aimed at lowering the credit financing cost for agricultural 
producers to invest in farming technologies that mitigate the drawbacks of limited 
arable agricultural lands in Seychelles. 
4.  Background and authority 
Loan managed by the Small Business Financing Agency under the auspices of the Ministry 
responsible for Finance. 
5. Form 
Loan 
6.  To whom and how the assistance is provided 
The loan is provided to agricultural producers and is disbursed through the Development 
Bank of Seychelles at a preferential rate of 2.5%, as opposed to the prevailing commercial rate of 8.5%. 
7.  Amount 
Nil. Due to the recent difficulties faced by the agricultural sector, no application was made 
under this scheme for the fiscal year 2012. 
8.  Duration 
This is an ongoing scheme. 
9. Statistical data permitting an assessment of the trade effects 
No data available WT/ACC/SYC/45/Rev.2 
 
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  III. LEASE OF AGRICULTURAL LA ND AT PREFER ENTIAL RATE 
1. Title of programme 
Lease of agricultural land at preferential rate 
2. Period Covered by the notification 
Fiscal year 2012 (i.e. 1 January 2012 - 31 December 2012) 
3. Policy objective and/or purpose 
(a) To assist agricultural producers in obtaining land at affordable prices in order meet 
their production and sustainable development needs, taking into consideration the 
national food security agenda. 
4. Background and authority 
The lease is provided under the Ministry responsible for Land Use through the Seychelles 
Agricultural Agency of the Ministry responsible for Agriculture. 
5. Form 
Forgone revenue 
6. To whom and how the assistance is provided 
The support is provided to agricultural producers that are registered with the Seychelles 
Agricultural Agency and is provided through a preferential rate of SR 6.50/m2 for lease 
of land for agricultural activities.  
The figures provided express revenue forgone in  granting the preferential rate as opposed 
to the commercial rate of SR 30.00/m2. 
7. Amount 
The revenue forgone in providing this preferen tial rate of lease amounted to SR25,900,000 
for the fiscal year 2012. 
8. Duration 
This is an ongoing scheme. 
9. Statistical data permitting an assessment of the trade effects 
No data available 
IV. FISCAL INCENTIVES TO DEVELOP AG RICULTURAL AND FISHERIES ECONOMIC 
ACTIVITIES 
1. Title of programme 
Agriculture and Fisheries Incentives Act (AFIA) 
2. Period Covered by the notification 
Enactment of AFIA 2005 - present. 
H o w e v e r ,  t h e  G o v e r n m e n t  o f  S e y c h e l l e s  h a s  d e c i d e d  t o  r e p e a l  t h i s  A c t .   T h e  A c t  w i l l  
be repealed before October 2014 but no later than the final meeting of the Working Party on WT/ACC/SYC/45/Rev.2 
 
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  the Accession of Seychelles, at which the Report of the Working Party will be adopted, 
ad referendum . 
3.  Policy objective and/or purpose 
The AFIA (2005) provided fiscal concessions to eight main categories: farmers, 
farming entities, agricultural processors, agricultural exporters, fishermen, boat owners, 
fisheries processors and fisheries exporters as defined in the Act. Every relevant person is registered for the purpose of the Act for them to engage in the activity for which incentives 
are granted under the Act. 
The main concessions provided was on taxes (Customs duty and Goods and Service Tax 
(now replaced with the Value Added Tax) on importation of inputs and other materials and equipments necessary for the carrying out of the business. Other benefits such as a reduced 
rate of Business Tax is also granted. To encourage businesses towards exporting products, 
similar benefits as applicable to persons engaged in processing, are also extended to exporters. 
The grant of these incentives are not contingent on export performance, with the exception 
of foreign exchange retention as the Exchange Control Act (Cap 76) enforced a restrictive f o r e i g n  e x c h a n g e  r e g i m e .  H o w e v e r ,  i t  i s  t o  be noted that since 2008, the Act has been 
repealed and replaced by the Foreign Exchange Act, 2009 which unlike its predecessor is 
more regulatory as opposed to restricting activities of persons. Thus, since 2008, none of the fiscal incentives given to exporters are conditional on export performance. 
4.  Background and authority 
The programme is administered by the Ministry  responsible for Finance, in collaboration 
with the Ministry responsible for Natural Resources. 
5. Form 
Forgone revenue 
6.  To whom and how the assistance is provided 
Seychelles currently provides non-discriminatory indirect financial incentive to persons 
engaged in the agriculture and fisheries sector through a concession-based Agricultural 
and Fisheries Incentives Act (available through document WT/ACC/SYC/9/Add.1). Such incentives take the form of tariff concessions on imports by the persons engaged in those sectors. 
To benefit from incentives under the AFIA, businesses have to be licensed by the 
Seychelles Licensing Authority (SLA) and are requested to submit relevant factsheets on their businesses to the Seychelles Revenue Commission (SRC). 
Applications shall be made in the prescribed forms provided under the Agriculture and 
Fisheries Incentives Act 2005.  Generally, such application forms would need to contain information on the products to be imported and would need to be duly signed and/or 
stamped by the applicant. 
These application forms have to be approved by an authorized officer from the Ministry 
responsible for Finance. 
7.  Amount 
Seychelles has best endeavoured to compile these concessionary based statistics, 
however, the country does not have a system in place for registering those specific transactions which has made it problematic to obtain accurate figures. WT/ACC/SYC/45/Rev.2 
 
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  8.  Duration 
The AFIA 2005 will be repealed by October 20 14, and no later than by the final meeting 
of the Working Party on the Accession of Seychelles at which the Report of the Working Party will be adopted, ad referendum . This implies that the benefits and incentives granted 
to exporters under the Act would no longer apply and that some of the benefits and 
incentives granted to fishermen and farmers under the AFIA 2005 had been transferred to the following legislation: 
Fiscal 
benefits 
under AFIA 
2005 Relevant section 
of the AFIA 
providing for the 
fiscal benefits Introduction of the same fiscal benefits under other pieces of 
legislation 
Business Tax  Schedule 1 Part 1 
and Schedule 2 Part 1 Benefit under the "AFIA 2005" was mirrored under the "Business Tax 
Act 2009". 
Goods and Services Tax (GST) Schedule 1 Part 4 
and Schedule 2 Part 4 The "Goods and Services Tax Act 2001" had been repealed.  Note that 
item 22 of the First Schedule, Part 1 of the "Value Added Tax Act 2010" exempted imports for farming, fisheries and supporting activities where approval was needed from the Mi nistry of Natural Resources. 
Trades Tax Schedule 1 Part 4 
and Schedule 2 Part 4 Certificate holders - under the "AFIA 2005" - were not included as a 
specific category that benefitted from concessions/exemption under the "Customs Management Act, 2011".  Thus, the "AFIA 2005" was being used to grant concessions.  Note that this mainly applied for concessions on importation of motor vehicles as most imports for the 
sector already attracted a 0% rate of customs duty. 
Social Security Act Schedule 1 Part 2 
an Schedule 2 Part 2 The "Social Security Act 1983" had been repealed.  Note that 
concessions had been transfe rred under the "Income and Non-
Monetary Benefits Tax Act, 2010" (see Schedules 1 and 2 of the Act) 
Gainful Occupation Permit (GOP) Schedule 1 Part 3 
and Schedule 2 Part 3 The quota for "Maximum Allowable Foreign Employees" (MAFE) under 
the "AFIA 2005" was no longer in application.  The MAFE was now dealt with under the legislation governin g employment and immigration.  
The same applied to the GOP fee and no concessionary rate of GOP is allowed. 
Fuel Concessions  Schedule 2 Part 5 The tax concessions to the fisheries sector were being moved under the 
"Excise Tax Act, 2009".  Currently, being drafted by the Attorney General's Office. 
 
9. Statistical data permitting an assessment of the trade effects 
No data available WT/ACC/SYC/45/Rev.2 
 
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  V.  INCENTIVES TO DEVELOP SEYCHE LLES INDUSTRIAL TRADE ZONE (SITZ) 
1. Title of the Programme 
Industrial Trade Zone Act, 1995 
2. Period covered by the notification 
2013 
3. Policy objective / or purpose 
The policy objective is to provide incentives to attract and develop the country's potential 
in manufacturing, assembling, processing, redistribution activities as well as 
telecommunication and other services.  
The subsidies granted to these licenses, are not contingent on export performance. 
Any sale of products from the Zone constitutes an export from the Zone, even if the goods 
are sold into the "domestic market". Any  sale of products from the Zone into the 
"domestic market" constitutes an import into Seychelles, with all customs formalities and taxes being applicable. 
4. Background and Authority 
The Law is administered by the Financial Services Authority. 
5. To whom and how the assistance is provided  
The concessions are provided to businesses/indi viduals licensed under the Industrial Trade 
Zone Act 1995, operating within an Indust rial Trade Zone, of which the boundaries 
are defined by a notice in the Gazette as declared by the Minister responsible for Finance. 
The benefits are provided through the exemptio n from the application of provisions of the 
following national laws as provided for in the Schedule of  Industrial Trade Zone Act 1995; 
Exemption from Customs Management Act 2011  for goods imported into the zone, for use 
by a holder of the licence, goods dealt with or services provided by a holder of licence to 
a place outside Seychelles; 
Exemption from paying contribution to Seychelles Pension Fund and from all of the 
provisions of the Business Tax Act 2009, Licenses Act 2010, Employment Act 1995, 
Stamp Duty Act 1976, Control of Rent and Tenancy Agreement Act 1959. 
6. Form 
 Revenue forgone 
7. Amount 
The country does not have a system in place to register the total amount of 
revenue forgone. 
8. Duration 
This is an ongoing scheme. 
9. Statistical data permitting an assessment of the trade effects 
 No data available 
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