G/SCM/N/284/HKG  
 
2 July 2015  
(15-3406)  Page: 1/5  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 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 
HONG KONG, CHINA 
The following notification, dated 29 June 2015, is be ing circulated at the request of the Delegation 
of Hong Kong, China. 
 
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Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and 
Countervailing Measures (ASCM), Hong Kong, China submits herewith the new and full notification 
for the fiscal year 2014-15. In accordance with Ar ticle 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. 
 
A. FISHERIES DEVELOPMENT LOAN FUND 
1. Title of the programme 
 
Fisheries Development Loan Fund. 
 2. Period covered by the notification 
 Fiscal year 2014-15 (i.e. April 2014 – March 2015).  
3. Policy objective and/or purpose 
 
(a) To provide one-off loans for owners of trawlers  and fish collectors affected by the trawl ban1, 
for upgrading their vessels to standards required  for operations outside Hong Kong waters, for 
switching to more sustainable fisheries operations and other fisheries-related operations, or for 
carrying out projects that will reduce fuel consum ption or the carbon footprint of their operations 
(without increasing fishing effort). The applicatio ns must be submitted on or before 31.12.2015;  
 
(b) To provide loans for capture fishermen and ow ners of fish collectors for switching to more 
sustainable fisheries operations and other fisheries-related operations, or for carrying out projects 
that will reduce fuel consumption or the carbon footprint of their operations (without increasing 
fishing effort); and  (c) To provide loans that help fish farmers develop aquaculture, or improve their aquaculture 
businesses leading to more environmentally friendly operations or better aquaculture products in 
terms of quality and food safety standards.  
                                               
1 All trawling activities in Hong Kong waters have been banned since 31 December 2012. G/SCM/N/284/HKG 
 
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  4. Background and authority 
 
The fund is administered by the Agriculture, Fisheries and Conservation Department.  
5. Form 
 
Loan. 
 
6. To whom and how the assistance is provided 
 Applicants for loans to capture fishermen and owners of fish collectors must be Hong Kong 
residents and owners of local fishing vessels or fish collectors, holding valid licences necessary for 
their operations; or locally registered fisheries co-operative societies/companies with the majority of their members/shareholders being local capture fishermen who fulfill the afore-mentioned 
criteria; and  
 Applicants for loans to aquaculture operators must  be Hong Kong residents, holding valid licences 
necessary for operating their aquaculture businesses; or locally registered fisheries co-operative 
societies/companies with the majority of their members/shareholders being local aquaculture operators who fulfill the afore-mentioned criteria.  
The loan is granted at an interest rate of 2.5% per annum for capture fishermen and owners of 
fish collectors; and 1% per annum for capture fishermen and owners of fish collectors affected by the trawl ban; and at an interest rate based on the "No Gain No Loss" principle of the Hong Kong 
Special Administrative Region (HKSAR) Government for fish farmers. The "No Gain No Loss" rate is 
set by taking into account such factors as the best lending rates of the note-issuing banks in Hong Kong. 
 
7. Amount 
 The amount of loans issued for the fiscal year of 2014-15: HK$157,514,000. 
 
8. Duration 
 
This is an on-going scheme. 
 9. Statistical data permitting an assessment of the trade effects 
 No data available.  B. FISH MARKETING ORGANIZATION LOAN FUND 
1. Title of the programme 
 
Fish Marketing Organization Loan Fund. 
 
2. Period covered by the notification 
 
Fiscal year 2014-15 (i.e. April 2014 – March 2015). 
 3. Policy objective and/or purpose 
 
To provide loans for fishermen for meeting their production and sustainable development needs, 
including repair and replacement of fishing vessels, gear and equipment. 
 
4. Background and authority 
 
The fund has been set up by the Fish Marketing Organization (FMO), a statutory body established 
by the authority of the Marine Fish (Marketing) Or dinance. Profits from the operations of the FMO 
are the major source of the fund.   G/SCM/N/284/HKG 
 
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  5. Form 
 
Loan.  
6. To whom and how the assistance is provided 
 
Applicants may include: (i) a member of registered fishermen's co-operative society; (ii) an 
individual fisherman; or (iii) a registered fishing company. 
 There are two types of loans that may be granted un der the Fund: (i) normal loans, and (ii) special 
one-year loans for fishermen affected by the 2½ month annual fishing moratorium in the 
South China Sea. The interest rates applicable  in the fiscal year 2014-15 were as follows: 
 
 normal loans: 2.83% per annum for individual fishermen, and 1.33% per annum for 
members of registered co-operative societies; 
 special one-year loans for fishermen affected by the annual moratorium: 1% per annum. 
7. Amount 
 
The amount of loans issued for the fiscal year of 2014-15 was as follows:  
 normal loans: Nil 
 special loans for fishermen affected by  the annual moratorium: HK$47,660,000. 
8. Duration 
 
This is an on-going scheme. 
 9. Statistical data permitting an assessment of the trade effects 
 No data available.  C. KADOORIE AGRICULTURAL AID LOAN FUND 
1. Title of the programme 
 
Kadoorie Agricultural Aid Loan Fund. 
 
2. Period covered by the notification 
 
Fiscal year 2014-15 (i.e. April 2014 – March 2015). 
 3. Policy objective and/or purpose 
 
To provide loans for fish farmers and farmers as development and working capital. Specifically, 
loans are issued for purchase of livestock, fry, feed and farm equipment, and maintenance of farms. 
 
4. Background and authority 
 
The fund has been established under the Kadoorie Agricultural Aid Loan Fund Ordinance with 
donations from both non-government sources and the HKSAR Government.  5. Form 
 Loan.  G/SCM/N/284/HKG 
 
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  6. To whom and how the assistance is provided 
 
Fish farmers and farmers. The interest rates app licable in the fiscal year 2014-15 were as follows: 
 
 loans not exceeding HK$130,000: 0.00525% per annum for development capital, and 
0.007% per annum for working capital; 
 loans exceeding HK$130,000 but not exc eeding HK$200,000: 2.04515% per annum; 
 loans at HK$200,000 and above: 4.0833% per annum.   
7. Amount 
 
The amount of loans issued for fish farmers for the fiscal year of 2014-15: HK$2,324,000. 
 
8. Duration 
 
This is an on-going scheme. 
 9. Statistical data permitting an assessment of the trade effects 
 No data available.  D. SUSTAINABLE FISHERIES DEVELOPMENT FUND 
1. Title of the programme 
 
Sustainable Fisheries Development Fund. 
 
2. Period covered by the notification 
 
Fiscal year 2014-15 (i.e. April 2014 - March 2015). 
 3. Policy objective and/or purpose 
 
This Fund was set up by the HKSAR Government in 2014 to fund programmes, projects and 
research that would contribute to fostering the sustainable development of the fisheries industry, 
with such initiatives bringing benefits to the operations of the local fisheries community as a 
whole. Projects that may benefit from the Fund wi ll include those that provide technical assistance 
and training in fishing operations, support for fishermen to switch to other fisheries or sea related operations following implementation of the trawl ban in Hong Kong waters since December 2012, 
assistance for local aquaculturists to modernize their operations, and monitoring and assessment 
of the effectiveness of the sustainable fisheries management measures implemented in Hong Kong. In general, projects should be non-profit making in nature and the mode of assistance will be in the form of grant. If there are initiatives that aim to demonstrate the technical feasibility 
and commercial viability of new fisheries practices which may subsequently be transferred to other 
stakeholders within the fisheries industry, such initiatives with commercial elements will be funded on a dollar-for-dollar matching basis, with the HKSAR Government's total contribution capped at 
the applicant's total contribution. The HKSAR Government will recoup the cost commensurate with 
its share of funding contribution.  
4. Background and authority 
 
The Fund is administered by the Agriculture, Fisheries and Conservation Department.   
5. Form 
 
Grant  G/SCM/N/284/HKG 
 
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6. To whom and how the assistance is provided 
 The following may be eligible to apply: 
 
(a) Where applications are made by legal entities, the entity concerned should be a company 
incorporated in Hong Kong under the Companies Ordinance (Cap. 622) and has substantial 
connection to Hong Kong or a body corporate incorporated in Hong Kong under other 
Ordinances of the HKSAR, and having demonstrated a close connection with the fisheries industry in Hong Kong. These include local registered fisheries co-operatives, non-profit-making fisheries organizations, non-governmental organizations or social enterprises; and 
 
(b) Academic and research institutions in Hong Kong.  
7. Amount 
 
The amount approved for the fiscal year of 2014-15: HK$8,708,000. 
 
8. Duration 
 The Fund has an approved commitment of HK$500 million. It is open to applications since 
July 2014. For planning and budgetary purpose, it is estimated that the average annual amount of 
grants issued will be HK$50 million up to 2023-24.   
9. Statistical data permitting an assessment of the trade effects 
 
No data available. 
 
 
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