. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/50 
21 April 2010 
 (10-2083) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by AUSTRALIA1 Regarding the  
New and Full Notification of JAPAN2 
 
  The following communication, dated 20 April 2010,  is being circulated at the request of the 
Delegation of Japan.    
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Question 1 
 
Special depreciation or tax credit in the case su ch as acquiring certain facilities to strengthen 
the management  
  This programme aims to improve the man agement of agricultural processing businesses 
by offering special depreciation of 30 per cent of acquisition costs or tax credits of 7 per cent of the acquisition cost on equipment purchased by SMEs engaged in the agricultural processing 
businesses.   
  Can Japan please provide details of the e ligibility criteria and guidelines for access to 
this programme?  Can Japan please provide th e total amount of support provided and the 
number of entities assisted under this programme from 4/2007 to 3/2008?   
 Reply
 
 (1) SMEs which are eligible for this programme  
(i) must be engaged in the agricultural processing businesses;  and 
(ii) must plan their management improvement measures stipulated in "the Act on 
Temporary Measures concerning the Improvement of the Agricultural Products 
Processing Industry", which are approved by the governor of the prefecture where 
they are located.   
 
Furthermore, facilities applicable for the special  depreciation or tax credit must be specified 
in their plan of management improvement measures.  (The price of the facilities must be equal to or 
more than JPY2.8 million per unit.) 
 
                                                     
 
1 G/SCM/Q2/JPN/49.   
2 G/SCM/N/186/JPN. G/SCM/Q2/JPN/50 
Page 2  
 
  (2) The total amount of special depreciation pr ovided from 4/2007 to 3/2008 is JPY 202 million, 
and the total amount of tax credit provided from 4/2007 to 3/2008 is JPY 2 million.   
 Question 2 
 
Reserve for Special Repairs
 
  This scheme equalizes each year's cost of  repairs, by offering tax deferrals to 
corporations possessing blast furnaces etc.   
  Can Japan please provide details of the e ligibility criteria and guidelines for access to 
this programme?  Can Japan please provide th e total amount of support provided and the 
number of entities assisted under this programme from 4/2007 to 3/2008?   
 Reply
 
 (1) Enterprises eligible for this programme sha ll possesses the "blast furnaces etc.", which mean 
blast furnaces and air-heating furnaces for manufact uring pig iron, and continuous melting furnaces 
for manufacturing glass.  Special repairs specified in the programme mean the replacement of the 
majority of bricks used in the "blast furnaces etc.".   With respect to the "blast furnaces etc." possessed 
by foreign companies, only those used for businesses in Japan are a pplicable for the programme.   
 
(2) The number of entities assisted by this progr amme from 4/2007 to 3/2008 is four.  The 
accumulation of the reserve for the period is JPY 6,714 million.  The reversal of reserve for the period 
is JPY 0.  The balance at the end of the period is JPY 30,800 million.   
  
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