. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/AUS/33 
19 February 2008 
 (08-0738) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
  
SUBSIDIES  
 
Questions Posed by the SEPARATE CUSTOMS TERRITORY OF TAIWAN, 
 
PENGHU, KINMEN AND MATSU Regarding the  
New and Full Notification of AUSTRALIA1 
   The following communication, dated 15 February 2008, is being circulated at the request of 
the Delegation of the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu.   
 
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  As to the Forestry section of the Australian Notification, we would like to know the amount 
of exportation of lumber and timber from Austra lia before the commencement of these programmes 
and during the subsidising period.  Additionally, we are also wondering whether there is any case in 
which the applicant receives grants that cover more th an 50 per cent of the total cost of the applicant's 
investment under the Tasmanian Country Sawmills Assistance Programme .   
 
 With reference to the Structural Adjustment Fund for South Australia  (SAFSA) and 
Innovation and Investment Fund for South Australia  (IIFSA), most of the information contained in 
these two programmes is similar.  Therefore, we would like to know if there are any differences 
between them.  If so, what is th e purpose for such a design?   
  Regarding Automotive Competitiveness and Investment Scheme , it is said, in the Notification 
(Form of the subsidy), "participants receive duty cr edits which can be used to pay customs duty on 
certain eligible imports.  Duty credits can also be  sold or transferred to a third party."  We are 
wondering whether "a third party" should also be  a participant producing motor vehicles, automotive 
components, automotive machine tools or automotive service.  If there is no limitation on the third 
party to receive such duty credits, we doubt that the proposed purpose of this programme can be reached.   
 
 With regard to the Sustainable Regions Programme , we realise the purpose is to provide an 
opportunity for regional communities to lead thei r own development by identifying and addressing 
"priority issues " in their regions.  We will be very grateful if the Australian Government could offer 
some examples indicating what priority issues are.   
                                                     
 
1 G/SCM/N/155/AUS & G/SCM/N/155/AUS/Add.1.   G/SCM/Q2/AUS/33 
Page 2  
 
   In the Textiles, Clothing and Footwear part of the Notification, it seems that Textile, Clothing 
and Footwear (TCF) Post-2005 Assistance Package  consisted of the TCF Strategic Investment 
Programmes  (including TCF Post-2005 Scheme  and TCF Small Business Programme ), the TCF 
Structural Adjustment Programme  and the Product Diversification Scheme .  We would like to know 
more details about the TCF Post-2005 Scheme , TCF Small Business Programme  and TCF 
Restructuring Initiative Grants Scheme  which do not seem to be incl uded in this Notification.  
Additionally, we are also concerned about the crite ria the Australian Government applies to determine 
whether a business is a small business in the TCF sector.   
 
 Finally, there are a lot of Programmes that pr ovide support for relevant  regional development 
in Australia with terms such as "strategic" ( Industries Assistance Fund ), "strategic merit" ( Queensland 
Investment Incentive Scheme ), "strategic importance" ( Industry Investment and Attracting Fund , 
Investment Attraction and Industry Development Programme , Investment Incentive Scheme ), and 
"strategic industry" ( Investment Incentive Scheme ).  We would be very grateful if examples could be 
given to explanation to such terms.   
 
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