G/SCM/N/315/THA  
 
19 January 2018  
(18-0520) Page: 1/12 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
THAILAND  
The following communication, dated 18 January 2018, is being circulated at the request of the 
Delegation of Thailand.  
 
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1  INVESTMENT PROMOTION  INCENTIVES  
1. Title of the subsidy programme  
 
Investment Promotion Incentives.  
 
2. Period covered by the notification  
 
1 January 2015 – 31 December 2016.  
 
3. Policy Objective and/or purpose of  the subsidy  
 
Due to significant changes in both domestic and international economic and investment landscape, 
the Board of Investment (BOI) deems it appropriate to revise the investment promotion policies 
and criteria to respond to the current and future situation to be in line with the direction of 
Thailand's development under the National Economic and Social Development Plan as well as the 
Seven -Year Investment Promotion Strategy (2015 -2021). The BOI's investment promotion scheme 
has been revised since 1  January 2015 in order to grant incentive package based on investment 
activities.  
 
The main objectives of the BOI's investment promotion scheme are to promote investment to 
enhance Thailand's competitiveness and to achieve sustainable growth in accordance with the 
sufficiency economy philosophy.  
 
The details of this new scheme can be found at the Announcement of the Board of 
Investment  No.2/2557 (2014).1 
 
4. Background and authority for the subsidy  
 
The legal basis of the investment promotion incentives is the Investment Promotion Act (1977) 
amended in 1991, and 2001. The responsible authority is the Office of the Board of Investment.  
 
                                                
1 See link:  
http://www.boi.go.th/upload/content/newpolicy -announcement%20as%20of%2020_3_58_23499.pdf  G/SCM/N/315/THA  
 
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  5. Form of the subsidy  
 
Tax concession such as exemption/reductio n of corporate income tax, exemption of import duties 
on machinery, exemption of import duties on raw and essential materials used for export products 
(similar to duty drawback scheme), and special deduction of certain expenditures.  
 
6. To whom and how the  subsidy is provided  
 
The investment incentives programme is generally available to all investment projects that meet 
the criteria as prescribed by the BOI. All foreign and local investors can enjoy the benefits on an 
equal basis.  
 
A wide range of investme nt activities covering various sectors are eligible for investment 
promotion incentives and the investors can freely choose where to locate their investments in 
Thailand. Also, the BOI does not take into consideration the export performance of the projects  as 
a criterion to grant investment promotion. The BOI scheme is not contingent upon location or 
export performance.  
 
Apart from the main scheme, the BOI also offers other measures as follows:  
 
• Special Economic Development Zones (SEZs)  
• Cluster Developm ent Policy  
• Investment promotion policy for industrial development in border provinces in Southern 
Thailand (Narathiwat, Yala, Satun, and four districts of Songkhla).  
• 20 provinces with low per capita income (Kalasin, Chaiyaphum, Nakhon Phanom, Nan, 
Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, 
Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong Bua Lamphu, Ubon Ratchatani, 
and Amnatcharoen).  
 
7. Amount of the subsidy  
 
There is no specific budget earmarked for investment promotion incentives. The information on the 
subsidy per unit is therefore cannot be provided. No statistics on corporate income tax and import 
duties exemption/reduction are available.  
 
8. Duration of the subsidy and/or anytime attached to it  
 
The duration of the investment promotion incentives programme is indeterminate. However, the 
incentives granted to each investment project are subject to certain time limits.  
 
 
2  INDUSTRIAL ESTATE AU THORITY OF THAILAND (I-EA-T) 
1. Title of the subsidy program  
 
I-EA-T Investment Privileges.  
 
2. Period covered by the notification  
 
1 January 2015 – 31 December 2016.  
 
3. Policy objective and/or purpose of the subsidy  
 
I-EA-T Investment Privileges aim to promote the establishment of industrial plants and industrial 
related activities in privilege areas in industrial estates in Thailand to accelerate industrialization 
process of the country and create more value products. Meanwhile, the growth of industries is 
made in a harmony with environmental management  and quality of life in order to guarantee 
balanced development of economy, environment, and society.  
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  4. Authority for the subsidy  
 
The legal basis of the I -EA-T Investment Privileges is specified in Industrial Estate Authority of 
Thailand Act B.E. 1979 a mended in 1991, 1996, and 2007. The authorized organization is I -EA-T. 
 
The current I -EA-T Act (No.4) B.E. 2007 was approved by the Parliament in 2007.  
 
5. Form of Subsidy  
 
I-EA-T Investment Privileges cover the exemption of payment of surcharge under the law on 
promotion of investment, import duty, value added tax on machinery, equipment, tools and 
supplies, including the component there of which are essential for the production of goods, as the 
case may be, and on materials to be used for the construction , assembly or installation of factory 
or building and goods imported and taken into privilege areas by industrial operators and traders 
for used in the production of goods.  
 
6. To whom and how the subsidy in provided  
 
Privileges are provided to the industr ial operators who are permitted to engage in industrial 
operation in privilege areas in industrial estates.  
 
7. Amount of the subsidy  
 
No specific budget provided.  
 
8. Duration of the subsidy and/or any time limit attached to it  
 
Upon operation period.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not applicable.  
 
 
3  IMPROVING FARMING CO NSTRUCTION FOR RECOV ERING SHRIMP PRODUCT ION AND 
INCREASING THAI'S MA RINE SHRIMP INDUSTRY  COMPETITIVENESS ON S USTAINABLE 
BASIS PROGRAM  
1. Title of the subsidy program  
 
Improving Farming Construction for Recovering Shrimp Production and Increasing Thai's Marine 
Shrimp Industry Competitiveness on Sustainable Basis Program.  
 
2. Period covered by the notification  
 
From 1 January 2015 to 31 Decem ber 2016.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective of the program was to resolve the decreasing of domestic marine shrimp production 
due to Early Mortality Syndrome (EMS) shrimp disease.  
 
4. Background and authority for the subsidy  
 
Under the program, the Bank for Agriculture and Agricultural Cooperatives provided soft loans for 
marine shrimp farmers which the government compensated the farmers for the interests at 3% 
per year for a period not more than 3 years. The loans should be used for improving marine 
farming construction such as fish ponds, sedimentation ponds, and wastewater treatment ponds in 
compliance with the environment policy to increase production capacity. The responsible authority 
is the Department of Fisheries.  
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  5. Form of the subsidy  
 
Soft loans.  
 
6. To whom and how the subsidy is provided  
 
The recipients were marine shrimp farmers which were registered to the Department of Fisheries 
(DoF) and their farm should be certified by DoF. Moreover they should be met other criteria 
required by the program. The recipients were not more than 1,000 farmers and could get soft 
loans not more than 1 million Baht per farmer.  
 
7. The amount of the subsidy  
 
Under this program, the Bank for Agriculture and Agricultural Cooperatives pr ovided total soft 
loans worth 38,987,000 Baht for 76 marine shrimp farmers.  
 
8. Duration of the subsidy is provided  
 
The duration of the program is from April 2016 to September 2019. The closing date for approving 
the soft loans for marine shrimp farmers w as 31 December 2016.  
 
 
4  SOFT LOAN PROGRAM FO R FISHERMEN AND FISH ING OPERATORS  
1. Title of the subsidy program  
 
Soft Loan Program for fishermen and fishing operators.  
 
2. Period covered by the notification  
 
From 1 January 2015 to 31 December 2016.  
 
3. Policy  objective and/or purpose of the subsidy  
 
The objective was to help fishermen or fishing operators, affected by the government's combating 
illegal, unreported, and unregulated (IUU) fishing measures for improving fishing vessel and/or 
changing fishing gear s. 
 
4. Background and authority for the subsidy  
 
The government provided soft loans for fishermen or fishing operators affected by the 
government's combating illegal, unreported, and unregulated (IUU) fishing measures. The loans 
should be used for improvin g fishing vessels and/or changing fishing gears including fishing 
equipments in compliance with the new fisheries law. The responsible authority is the Department 
of Fisheries.  
 
5. Form of the subsidy  
 
Soft loans.  
 
6. To whom and how the subsidy is provide d 
 
 -  Recipients: fishermen and fishing operators affected by the government's combating IUU 
fishing program.  
 -  Loan interest: 1st year at 0% per year, 2nd year to 7th year at 4.00% per year.  
 -  Repayment term: at maximum 7 years with an obligation wit hin a grace period for up to 
12 months.  
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  7. The amount of the subsidy  
 
The government provided total soft loans worth 148 million Baht for 129 fishermen or fishing 
operators.  
 
8. Duration of the subsidy is provided  
 
From 8 September 2015 to 31 December 201 6. 
 
 
5  FISHING VESSEL BUYIN G PROGRAM  
5.1  Fishing Vessel Buying Program  
1. Title of the subsidy program  
 
Fishing Vessel Buying Program.  
 
2. Period covered by the notification  
 
From 1 January 2015 to 31 December 2016.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective was to help fishing vessel owners or fishing operators who affected from the 
government's combating IUU measures. The government wanted to decrease the numbers of 
fishing vessels for sustainability purposes.  
 
4. Background and autho rity for the subsidy  
 
The program would buy fishing vessels from fishing vessel owners or fishing operators in order to 
reduce the numbers of fishing vessels. The government would pay 50% of the fishing vessels 
middle price for fishing vessel owners or fis hing operators. The vessels which were bought would 
be sunk for the purpose of creating artificial reefs. The responsible authority is the Department of 
Fisheries.  
 
5. Form of the subsidy  
 
Grants.  
 
6. To whom and how the subsidy is provided  
 
Fishing vessel  owners or fishing operators who wished to sell their vessels to the government had 
got the vessel permits from the Marine Department and the fishing gear licenses from the 
Department of Fisheries.  
 
7. The amount of the subsidy  
 
The government already boug ht 51 push net vessels for 105,779,220.40 Baht.  
 
8. Duration of the subsidy is provided  
 
From April to May 2016.  
 
 
5.2  Encouraging the transformation of plastic waste into fuel oil  
1. Title of the subsidy programme  
 
Encouraging the transformation of plastic waste into fuel oil.  
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  2. Period covered by the notification  
 
3 years.  
 
3. Policy objective/Purpose of the subsidy  
 
To promote energy security and the use of alternative energy in order to decrease the country's 
dependency on oil imports as well as solve th e problem of waste disposal.  
 
4. Background/Authority of the subsidy  
 
- Committee on Energy Policy Administration (CEPA) on August 3rd, 2015 approved the principle 
on calculating rate of subsidy for refineries that purchase fuel oil from plastic waste.  
 
- By virtue of clause 4 and 5 of the order of the Prime Minister no.4/2547 (2004) on measures to 
solve and prevent oil shortage dated 23 December 2004 with clause 1 of the order of the Prime 
Minister no.1/2553 (2010) on measures to solve and prevent oil sho rtage dated 2 March 2010, 
CEPA announced the rate of subsidy for refineries that purchase fuel oil from plastic waste  
 
5. Form of subsidy  
 
Financial support.  
 
6. To whom and how the subsidy is provided  
 
- The subsidy is provided to refineries that purchase fuel oil produced from plastic waste. Energy 
Policy and Planning Office (EPPO) will announce the rate of subsidy every month and report the 
quantity of waste and fuel oil as well as the amount of subsid y back to CEPA.  
 
- Refineries that purchase fuel oil produced from plastic waste have to inform the Excise 
Department and submit their request for subsidy. The Excise Department will check the received 
quantity and submit the request document to Energy Fu nd Administration Institute (EFAI). EFAI 
then give out subsidy from the Oil Fund to the Excise Department who will give it to refineries.  
 
7. Subsidy per unit  
 
- Calculation methodology:  
 
 Rate of subsidy = 14.50 – Crude oil price.  
 
Explanation:  
 
 - Rate of subsidy = Rate of fuel oil price subsidy to refineries that purchase fuel oil from 
plastic waste (baht/litre)  
 - Crude oil = FOB price of Dubai crude oil from the previous month (baht/litre)  
 - Exchange rate = Average exchange rates from the previou s month announced by the Bank 
of Thailand (baht/US dollar)  
 
However, if Dubai crude oil price is higher than 14.50 baht/litre, there will be no subsidy for the 
cost of producing oil from plastic waste.  
 
- EPPO was assigned to review the cost of producing  oil from plastic waste every year.  
 
8. Duration of the subsidy  
 
3 years (4 August 2015 – 3 August 2018).  
 
9. Statistical data  
 
Statistical data can be requested from Energy Fund Administration Institute (EFAI).  
 
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  5.3  Energy Efficiency Revolving Fund (EERF)  
1. Name of measure  
 
Energy Efficiency Revolving Fund (EERF).  
 
2. Period covered  
 
Fiscal year 2016 (1 October 2015 – 30 September 2016)  
 
3. Purpose of measure  
 
 a. To promote energy efficiency in factories and buildings by providing low -interest loan.  
 b. To allow financial institution to become more experienced with energy efficiency 
investment.  
 
4. Background and authority  
 
The program is under the supervision of Department of Alternative Energy Development and 
Efficiency (DEDE), Ministry of Energy of Roya l Thai Government.  
 
5. Form of subsidy  
 
Loan.  
 
6. Target and how the subsidy is provided  
 
Target: Factories and buildings  
 
How: Promoting energy efficiency investment via low -interest (3.5%) loan for factories and 
buildings. The proposed projects must have  a payback period of no more than 7 years, with 
maximum amount of loan available per project of 50 million Baht.  
 
The applicants must apply for the loan through participating banks who will consider the financial 
feasibility. The technical feasibility will  be considered by expert committee under DEDE.  
 
7. Subsidy per unit/Total subsidy  
 
1,489 million Baht  
 
8. Result  
 
82 projects with value of investment of 1,289 million Baht (1,220 million Baht via the program), 
resulting in estimated energy saving of 7.3 k toe. 
 
 
5.4  Low Interest Loan/ESCO Revolving Fund  
1. Name of measure  
 
Low Interest Loan/ESCO Revolving Fund.  
 
2. Period covered  
 
Fiscal year 2016 (1 October 2015 – 30 September 2016).  
 
3. Purpose of measure  
 
a. To help fund projects with good potential but lack  sufficient funding/no collateral for loans.  
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  b. To promote the use of Energy Service Company (ESCO), which provides energy saving solutions 
for their clients by serving as consultants or helping with design and implementation of energy 
saving projects.  
 
4. Background and authority  
 
The program is under the supervision of Department of Alternative Energy Development and 
Efficiency (DEDE), Ministry of Energy of Royal Thai Government.  
 
5. Form of subsidy  
 
Loan.  
 
6. Target and how the subsidy is provided  
 
Target: Factories and buildings utilizing ESCO.  
 
How: Promoting energy efficiency investment or renewable energy via equipment leasing 
(maximum of 20 million Baht per project with payback period off no more than 7 years) or equity 
investment (maximum of 50 mi llion Baht per project with payback period of no more than 7 
years). The projects must utilize ESCO.  
 
7. Subsidy per unit/Total subsidy  
 
500 million Baht.  
 
8. Result  
 
23 projects with value of investment of 163.4 million Baht (123 million Baht via the program), 
resulting in estimated energy saving of 1.84 ktoe.  
 
 
6  INVESTMENT PROMOTION  IN SOLAR HOT WATER F OR THREE SECTORS ; S ERVICE, 
INDUSTRY AND RESIDEN CE. 
1. Title of the subsidy program  
 
Investment promotion in solar hot water for three sectors ; Service , Industry and Residence.  
 
2. Period covered by the notification  
 
This project has annually funded private enterprises in the sectors from 2008 to 2015.  
 
3. Policy objective and/or purpose of the subsidy  
 
1) Partly financial support the sectors to encourage using solar hot water instead of electricity from 
grid, LPG, diesel and fuel oil.  
 
2) Promote renewable energy to meet the target of Alternative Energy Development Plan 
(AEDP  2015).  
 
4. Authority for th e subsidy  
 
The subsidy is supported by the Energy Conservation Promotion Fund (ENCON Fund) which 
supports all the energy conservation related programs and activities, such as energy efficiency 
improvement, renewable research and development projects and ca mpaigns.  
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  5. Form of the subsidy  
 
With the aim is to promote installation of solar collector system to combine with waste heat reuse 
from the machines that burn fuels to release heat. So the ultimate goal proposes an energy -saving 
option for their own busi ness. ENCON Fund will support an initial investment which are partly 
support for private enterprises.  
 
6. To whom and how the subsidy is provided  
 
For example in three sectors that we focus on are:  
 
1) Service - hotel resort spa hospital  
2) Industry – food and beverage medical product  
3) Residence – apartment condominium  
 
DEDE cooperate with operators to provide the application form and announce to the public.  
 
7. Amount of the subsidy  
 
Only 20% of an initial investment of preparation, installation and operation.  
 
8. Duration of the subsidy and/or any other time limits attached to it  
 
 The fiscal duration of the project is around 18 months  
 1) Publicize the entrepreneur who attend and want to join the project.  
 2) Operation in preparation, install ation of solar collector system and its components.  
 3) Monitoring and evaluation, including solving the problems that may occur  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not applicable.  
 
 
7  INVESTMENT PROMOTION  IN SOLAR GREENHOUSE DRY ER IN AGRICULTURAL 
PRODUCTS  
1. Title of the subsidy program  
 
Investment promotion in solar greenhouse dryer in agricultural products.  
 
2. Period covered by the notification  
 
In general open sun drying the products are affected by exter nal calamities such as rain, insects 
and animals. So this project has developed since 2011 to now for removing the moisture content 
from the fruit, herb and vegetable products in solar greenhouse dryer. The fund has annually 
allocated to farmer in direct.  
 
3. Policy objective and/or purpose of the subsidy  
 
 1) Partly subsidize in the agricultural sector for using solar drying technology to build value 
added in its products towards into a market.  
 2) Promote renewable energy to meet the target of Alternative Energy Development Plan 
(AEDP 2015).  
 
4. Authority for the subsidy  
 
Granted by the Energy Conservation Promotion Fund (ENCON Fund) which supports all the energy 
conservation related programs and activities, such as energy efficiency improvement, renewable 
research and development projects and campaigns.  
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  5. Form of the subsidy  
 
Due to high investment cost, so DEDE offer some subsidies of initial investment to farmers for 
encouraging the use of  solar drying technology. The goal of this project is a greenhouse type solar 
dryer for small -scale dried food products was developed and disseminated. And the products can 
move forward to a commercial market in the future.  
 
6. To whom and how the subsidy is provided  
 
Both of institutions and non -profit organizations as operators can obtain the subsidy from the 
ENCON Fund to construct the solar greenhouse dryer for various agricultural products which have 
potential and can be used in reality. ENCON Fund wil l support up to 40 -45% of initial investment.  
 
7. Amount of the subsidy  
 
Around 40 -45% of an initial investment of preparation, construction and operation was given as 
subsidy.  
 
8. Duration of the subsidy and/or any other time limits attached to it  
 
The fiscal duration of the project is around 18 months  
 
1) Publicize the entrepreneur who attend and want to join the project.  
2) Operation in preparation, installation of solar greenhouse dryer and all facilities.  
3) Monitoring and evaluation, including sol ving the problems that may occur  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not applicable.  
 
 
8  FINANCIAL SUBSIDY FO R INDUSTRIAL BOILERS  FROM CHANGING STEAM BURNER TO 
BIOMASS FUEL BURNER  
1. Title of the subsidy program  
 
Financial subsidy for industrial boilers from steam burner to biomass fuel burner.  
 
2. Period covered by the notification  
 
1 February 2016 – 31 July 2017  
 
3. Policy objective and/or purpose of the subsidy  
 
1) Partly financial support manufacturing  to utilize biomass fuel instead of using fossil fuel.  
2) Promote renewable energy to meet the target of Alternative Energy Development Plan 
(AEDP  2015).  
 
4. Authority for the subsidy  
 
This project is supported by the Energy Conservation Promotion Fund (EN CON Fund) which 
supports all the energy conservation related programs and activities, such as energy efficiency 
improvement, renewable research and development projects and campaigns.  
 
5. Form of the subsidy  
 
DEDE has aimed to change steam burner to biomas s fuel burner for boiler. The operators 
(Institutions and non -profit organizations) obtain the subsidy from the ENCON Fund to cooperate 
the factory owners to change the equipment from steam burner to biomass fuel burner and test 
run on well -operation with high efficiency. ENCON Fund will support 30% of investment which are 
not more than 2,000,000 Baht per factory.  
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  6. To whom and how the subsidy is provided  
 
This project is provided to the factory owners who want to change the fuel in boilers. DEDE 
cooperat e with operators to provide the application form and announce to the public.  
 
7. Amount of the subsidy  
 
30 % of investment but not more than 2,000,000 Baht  
 
8. Duration of the subsidy and/or any other time limits attached to it  
 
The duration of the project  is 18 months:  
 
1) Provide the factory owners who interest in and want to join the projects. (6 months)  
2) Operation in preparation and changing the burners and their components. (6 months)  
3) Monitoring and maintenance, including solving the problems that  may occur (6 months)  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not applicable.  
 
 
9  COMPRESSED BIO -METHANE GAS (CBG) PR OMOTION SCHEME IN BI OGAS PLANT  
1. Title of the subsidy program  
 
Compressed Bio -Methane Gas (CBG) P romotion in Biogas Plant  
 
2. Period covered by the notification  
 
12 months (1 July 2016 – 30 June 2017)  
 
3. Policy objective and/or purpose of the subsidy  
 
1) Partly financial support to biogas system manufacturing having capacity at least 6,000 cubic 
meters per day and/or having the potential to produce CBG at least 3 tons per day.  
2) Promote of using CBG to substitute Liquified Petroleum Gas (LPG) and Natural as for Vehicle 
(NGV) in the form of heat/fuel for vehicles. This would support the target of Alte rnative Energy 
Development Plan (AEDP 2015) on promoting biogas as one of renewable energy types.  
 
4. Authority for the subsidy  
 
This project is supported by the Energy Conservation Promotion Fund (ENCON Fund) which 
supports all the energy conservation related programs and activities, such as energy efficiency 
improvement, renewable research and development projects and campaigns.  
 
5. Form of the subsidy  
 
The total support for the whole scheme values 75 Million Baht. The supporting an investment of in 
gas quality improvement and Biomethane containment system of CBG projects comprise of 
three  categories:  
 
1) The project ranges from 3,000 -5,999 kilograms per day shall not exceed 9 million Baht.  
2) The project ranges from 6,000 -11,999 kilograms per day shall  not exceed 12 million Baht.  
3) The project ranges from 12,000 kilograms per day shall not exceed 12 million Baht.  
 
6. To whom and how the subsidy is provided  
 
This project is provided to biogas factory owners who want to improve gas quality from biogas to  
CBG. DEDE will announce to download the application and cooperate with the applicants for 
document preparation and the financial support.  
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  7. Amount of the subsidy  
 
As mentioned in no 5. Form of the subsidy  
 
8. Duration of the subsidy and/or any other tim e limits attached to it  
 
The duration of the project is 9 months. (1 October 2016 – 30 June 2017)  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not applicable.  
 
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