WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.14
16 November 2011 
 (11-5487) 
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 
  
EUROPEAN UNION 
 
 
Addendum 
   The following addendum to the notification of  the European Union relates to subsidy 
programmes of Italy.  
 
_______________ G/SCM/N/220/EEC/Add.14 
Page 2  
 
    
ITALY  
 
TABLE OF CONTENTS 
 
  Page 
 
I.  MINISTRY OF INFRASTRUCTURES AND TRANSPORT .............................................. 3  
A.  MEASURES FOR INVESTMENTS IN THE NAVAL SECTOR ............................................................. 3  
B.  GRANTS FOR TECHNOLOGICAL INNOVATION  ............................................................................. 3  
C.  GRANTS TO SHIPOWNERS FOR SCRAPPING  ................................................................................ 4  
D.  FUNDS FOR NAVAL RESEARCH  ................................................................................................... 5  
II.  MINISTRY OF ECONOMIC DEVELOPMENT ................................................................. 6  
A.  SOFT LOANS FACILITATING PERMANENT INDUSTRIAL AND COMMERCIAL  
ESTABLISHMENT IN NON-EU COUNTRIES ................................................................................... 6  
B.  SOFT LOANS COVERING EXPENSES CONCERNING THE PARTICIPATION IN 
INTERNATIONAL TENDERS HELD IN NON-EU  COUNTRIES  ......................................................... 7  
C.  CREDIT SCHEME TO COOPERATIVES AND URGENT MEASURES FOR EMPLOYMENT 
PROTECTION  .............................................................................................................................. .. 8 
D.  EXTRAORDINARY INTERVENTION IN THE SOUTH OF ITALY (MAP 4) ........................................ 9  
E.  TECHNOLOGICAL INNOVATION FUND (FIT) ............................................................................... 9  
F.  CONTRIBUTIONS TO ENTERPRISES FOR SUBSTITUTIVE ACTIVITIES IN MINING 
DISTRICTS INVOLVED IN RESTRUCTURING PROCESSES  ............................................................ 10  
G.  FEMALE ENTREPRENEURS ......................................................................................................... 11  
H.  URGENT MEASURES FOR THE ECONOMY – AUTOMATIC INCENTIVES  ..................................... 12  
I.  FISCAL MEASURES IN FAVOUR OF INNOVATION OF INDUSTRIAL ENTERPRISES    
(MAP 4) ............................................................................................................................ ......... 13 
III. CUSTOMS AGENCY ............................................................................................................ 13  
A.  EXCISE DUTY REDUCTION ON SOME PRODUCTS FOR ENVIRONMENTAL PROTECTION 
– BIOETHANOL  .......................................................................................................................... 13  
B.  EXCISE DUTY REDUCTION ON SOME PRODUCTS FOR ENVIRONMENTAL PROTECTION 
–BIODIESEL  .............................................................................................................................. . 15 
	
  G/SCM/N/220/EEC/Add.14 
 Page 3 
 
 
  I. MINISTRY OF INFRASTRUCTURES AND TRANSPORT 
A. MEASURES FOR INVESTMENTS IN THE NAVAL SECTOR  
1. Name of the subsidy scheme and legal basis 
 
 Law N. 88/01 dated 16 March 2001 (implemen ting Council Regulation (EC) n. 1540/98) – 
Measures for investments in the naval sector 
 
2. Form of the subsidy 
 
 Interest subsidy. 
 
3. Subsidy per Unit or, in case this is not possi ble, the global amount of subsidies distributed 
during 2009 and 2010 
 
 10.00 million Euros (2009) 
 10.00 million Euros (2010). 
 4. Policy objective and/or purpose of the subsidy 
  Purpose of the shipowner's subsidy is to allo w a level playing field for Italian and European 
shipyards on the market. The aid element of the s ubsidies provided cannot exceed the 9 per cent of the 
contract value, according to ceiling establishe d by the EEC Council Regulation n. 1540/98. 
 5. Duration of the subsidy 
  12 years. 
 
6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 As regards the commercial effects, the Italian sh ipyards are allowed to work on an equal basis 
on the market.  
7. Indicate to whom and how the subsidy is paid 
 
 To shipowners (Italian and EU ) who made investments in ships in the Italian or European 
shipyards.  
 The subsidies are paid in 24 half yearly instalments. 
 B. G
RANTS FOR TECHNOLOGICAL INNOVATION  
1. Name of the subsidy scheme and legal basis 
 
 Law N. 296/06 dated 27 December 2006 – art.  1 co. 1040 and co. 1041. Achievement of 
innovating projects technologically new or considerably advanced. 
 2. Form of the subsidy 
  Grant. 
 G/SCM/N/220/EEC/Add.14 
Page 4  
 
  3. Subsidy per Unit or, in case this is not possi ble, the global amount of subsidies distributed 
during 2009 and 2010 
 
 19.3 million Euros (2009)  11.4 million Euros (2010) 
 
4. Policy objective and or purpose of the subsidy 
  To assist EU shipyards by means of new naval sector processes in order to develop a new class of ships. The maximum subsidy level is fixed at 150.00 Euros for each compensated gross ton 
(CGT) for product innovation project and at 5 million Euros for process innovation projects. 
 5. Duration of the subsidy 
  Aids are granted to shipyards involved in sh ipbuilding, naval transformation and repairing 
and are intended for technologically advan ced product and process projects started from 
1 January 2004 to 31 December 2008.  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 As far as trade effects are c oncerned shipyards will have the opportunity to enhance product 
competitiveness on international markets and the introduction of new technologies. 
 7. Indicate to whom and how the subsidy is paid 
  Aids are granted to shipyards involved in shi pbuilding, naval repairing and transformation. To 
individual projects it is possible to receive subsidi es in advance up to 50 per cent of the total costs 
borne in the year. The balance is paid at project completion.  C. G
RANTS TO SHIPOWNERS FOR SCRAPPING  
1. Name of the subsidy scheme and legal basis 
 
 Law N. 13/06 dated 9 January 2006 – Art. 4.  Funds to support scrapping for local public 
transport by sea and inland waters.  2. Form of the subsidy 
 
 Grant. 
 3. Subsidy per Unit or, in case this is not possi ble, the global amount of subsidies distributed 
during 2009 and 2010 
 
 0.00 million Euros (2009) 
 9.4 million Euros (2010) 
 4. Policy objective and/or purpose of the subsidy 
  Purpose of the shipowner's subsidy is to scrap ferry older than 20 years for safety and 
environment reasons. The subsidies provided am ount to 2,000.00 Euros for each passenger up to a 
maximum of 350 passengers.   G/SCM/N/220/EEC/Add.14 
 Page 5 
 
 
  5. Duration of the subsidy 
 
 The subsidies were granted for scrapping  operations started from 1 January 2007 to 
31 December 2010.  
6. Statistical data permitting an assessment of the trade effects of the subsidy. 
 
 Safety and environment safeguard.  7. Indicate to whom and how the subsidy is paid 
  To shipowners (Italians and EU) who scrappe d their vessels. The subsidies are granted and 
paid after the scrapping of the vessel.  D. F
UNDS FOR NAVAL RESEARCH  
1. Name of the subsidy scheme and legal basis 
 
 Law N. 13/06 dated 9 January 2006 - Art. 5 and law N.296/06 dated 27 December – art. 1 co. 
1042. Subsidy granted to Istituto N azionale per Studi ed Esperienze di Architettura Navale (INSEAN) 
based in Rome and to Centro per gli Studi di T ecnica Navale S.p.A. (CETENA) based in Genoa for 
their respective research programmes. 
 
2. Form of the subsidy 
  Grant.  
3. Subsidy per Unit or, in case this is not possi ble, the global amount of subsidies distributed 
during 2009 and 2010 
 
 0.205 million Euros (2009)  0.00 million Euros (2010)  
4. Policy objective and or purpose of the subsidy 
 
 Subsidies are granted to INSEAN and CETENA to improve ship industry technological basis and to promote research and growth to enhance fleet competitiveness and safety. The maximum level 
of subsidy is fixed at 1 million Euros for years 2005, 2006, 2007 2008, 2009 respectively. 
 
5. Duration of the subsidy 
  Subsidies are granted to each research programme from 1
 January 2007 to 31 December 2009. 
 6. Statistical data permitting an assessment of the trade effects of the subsidy. 
 
 To promote research in order to enhance fleet competitiveness and safety.  7. Indicate to whom and how the subsidy is paid 
 
 To INSEAN. The subsidies are granted to r espective naval research programmes. Granted 
aids are paid in yearly instalments according to the financial commitment of the research programmes 
carried out during the period in question.  G/SCM/N/220/EEC/Add.14 
Page 6  
 
  II. MINISTRY OF ECONOMIC DEVELOPMENT 
A. S
OFT LOANS FACILITATING PERMANENT INDUSTRIAL AND COMMERCIAL  ESTABLISHMENT 
IN NON-EU COUNTRIES  
1. Title of the subsidy programme 
 
 Revolving credit facility for the internationalisation of companies. 
 2. Period covered by the notification 
  January – December 2009 
 January – December 2010 
 3. Policy objective and/or purpose of the subsidy 
 
(a) Facilitate the market penetration of Italian co mpanies by helping them to create stable 
industrial and commercial facilities in non-EU countries (such as offices, a store, 
showrooms etc.) 
(b) Carry out prefeasibility and feasibility studies on Italian investments in non-EU 
countries as well as the related technical assistance programmes. 
4. Background and authority for the subsidy 
 
 Loans awarded under Law no. 394/81, art. 2 (above a) and under Legislative Decree no. 
143/98, art. 22 (5) (above b) up to the year 2009, included. Law 133/08, art. 6 (2) letter a and letter b 
repealed and substituted the befo re-mentioned provisions. No cha nges were made concerning the 
mechanism regulating the revolving credit fac ility. Granting institution: SIMEST S.p.A. 
 
5. Form of the subsidy 
 
 Soft loan.  6. To whom and how the subsidy is provided 
 
(a) Beneficiaries are industrial, trading and services companies. SMEs have priority 
eligibility on the funds allocated. The maximum level of funding is fixed at 
85 per cent of the total budgeted expenses. The beneficiary shall provide guarantee. 
The loan is paid on the basis of the project implementation schedule and upon presentation of documents showing the costs incurred. Reimbursement is spread over 
up to seven years: two years of pre-amor tisation during which only interests are due 
and five years of capital payment due in six- month equal instalments. Interest rate is 
fixed and equal to 15% of the reference rate . The subsidised rate cannot be lower than 
an annual rate of 0.50% and currently amounts to 40% of the reference rate. 
(b) Beneficiaries are industrial, trading and services companies. SMEs have priority 
eligibility on the funds allocated. Financi ng covers up to 100 per cent of the budget 
proposal. The beneficiary shall provide guarantee. The loan is paid in two 
instalments: an advance payment equal to 70 per cent of the sum granted and a final 
settlement. Reimbursement is spread over five years: two years of pre-amortisation during which only interests are due and three years of capital payment due in six-month equal instalments. Interest rate is fi xed and equal to 15% of  the reference rate.  G/SCM/N/220/EEC/Add.14 
 Page 7 
 
 
  The subsidised rate cannot be lower than  an annual rate of 0.50% and currently 
amounts to 40% of the reference rate. 
7. Subsidy per unit or, in case this is not po ssible, the annual amount budgeted for the subsidy 
 
Year 2009: €4.09 million for type a 
        €0.65 million for type b 
 
Year 2010: €2.8 million for type a 
        €0.3 million for type b  
8. Duration of the subsidy 
 
 No final term is established.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Not relevant: the measure is not specific a nd it is notified for the sake of transparency. 
 B. S
OFT LOANS COVERING EXPENSES CONCERNING THE PARTICIPATION IN INTERNATIONAL 
TENDERS HELD IN NON-EU  COUNTRIES  
1. Title of the subsidy programme 
 
 Credit facility for expenses incurred to bid for international tenders.  Law No. 304/90, Art. 3, 
until June of 2008. Repealed by DL 8 June 200 8, No. 112; Law 6 August 2008 No. 133, Art. 5. 
 2. Period covered by the notification 
 January – December 2009 January – December 2010 
 3. Policy objective and/or purpose of the subsidy 
 
 The measure is intended to expenses borne by  Italian companies which intend to submit pre-
qualification bid for international te nders held in non-EU countries. 
 4. Background and authority for the subsidy 
 
 Law no. 304/90 was repealed by Decree-Law no. 112/08 modified and converted into Law 
no. 133/08. Operation is only residual. Granting authority: SIMEST S.p.A.  5. Form of the subsidy 
  Soft loan. 
 
6. To whom and how the subsidy is provided 
  Beneficiaries were mostly indus trial and construction companies. 
 G/SCM/N/220/EEC/Add.14 
Page 8  
 
  7. Subsidy per unit or, in case this  is not possible, the global amount of subsidies distributed 
during 2007 and 2008 
 
2009: €0.1 million 2010: €0.1 million  
 
8. Duration of the subsidy 
  Cancelled.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Due to its nature, the scheme only ha d an insignificant impact on trade. 
 C. C
REDIT SCHEME TO COOPERATIVES AND URGENT MEASURES FOR EMPLOYMENT 
PROTECTION  
1. Name of the subsidy scheme and legal basis 
 
 Law n. 49/85  - Credit scheme to cooperatives and urgent measures for employment 
protection.  
2. Form of the subsidy 
 
 Soft loan.  3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed  
 in 2009 and 2010 
  14.32 Million Euros in 2009            Million Euros in 2010  not yet available  4. Policy objective and/or purpose of the subsidy 
  The scheme is intended to provide grants and so ft loans to cooperatives in order to tackle 
unemployment.  In particular, it encourages ne w enterprises created by workers who have been 
dismissed, who are in a mobility list or have been  suspended from work in an over-manned factory. 
 
5. Duration of the subsidy 
 
 No final term is established.  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Not relevant: the measure is not specific a nd it is notified for the sake of transparency. 
 7. Indicate to whom and how the subsidy is paid 
  Beneficiaries are cooperatives with a maximu m invested capital of 0.5 billion lira for 
restructuring or re-conversion activities. 
 
 Contributions (lasting for 12 years as maximum) are paid in a single tranche or in different 
period.  G/SCM/N/220/EEC/Add.14 
 Page 9 
 
 
  Note:  according to law 112/98, the competence of  this programme is now due to the Regions.  
This law has been recently modified by the law 57/2001. 
 D. E
XTRAORDINARY INTERVENTION IN THE SOUTH OF ITALY (MAP 4) 
1. Name of the subsidy scheme and legal basis 
 
 Law n. 488/92 Art. 1, section 2 , (re-financing of Law n. 64/86), concerning Extraordinary 
intervention in the South of Italy.  2. Form of the subsidy 
  Grant.  3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
  310.61 Million Euros in 2009  131.70 Million Euros in 2010  4. Policy objective and/or purpose of the subsidy 
 
 Providing aid to entrepreneurial ac tivities in the disadvantaged areas. 
  5. Duration of the subsidy 
  No final term is established. 
 
6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Not relevant: the measure is not specific a nd it is notified for the sake of transparency. 
 7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are extractive and manufacturing enterprises and related service 
companies. 
(b) Contributions are paid under the EU amount  limits in favour of the disadvantaged 
areas and they are erogated every 4 months. 
E. TECHNOLOGICAL INNOVATION FUND (FIT)   
1. Name of the subsidy scheme and legal basis 
 
 Law n. 46/82, art. 14  and followings: Technological Innovation Fund (FIT ) 
 2. Form of the subsidy 
  Grant.   Soft loan.  G/SCM/N/220/EEC/Add.14 
Page 10  
 
  3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
 
 87.80 Million Euros in 2009  69.70 Million Euros in 2010 
 
4. Policy objective and/or purpose of the subsidy 
  Promoting multi-annual programs aimed at  introducing technological innovations. 
 
5. Duration of the subsidy 
 
 No final term is established.  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Due to its nature the scheme has an insignificant impact on trade. 
 7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are industrial and service enterprises. Big firms are eligible only if they 
act in the main sectors mentioned in the legal framework. 
(b) The soft loan rate changes from 25% to 60%  of the reference rate, according to the 
dimensions and the geographical location of the enterprise; it is accorded for 15 years 
maximum (of which 5 years are pre-amortization) and it is equal to 35% - 55% of the admissible costs. 
F. C
ONTRIBUTIONS TO ENTERPRISES FOR SUBSTITUTIVE ACTIVITIES IN MINING DISTRICTS 
INVOLVED IN RESTRUCTURING PROCESSES   
1. Name of the subsidy and legal basis 
 
 Contributions to enterprises for substitutive activities in mining districts involved in restructuring processes 
 
 Law No. 221/90  art. 3  (re-financing of Law No. 41/89 which have been replaced). 
 2. Form of the subsidy 
 
 Grant. 
 3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
  0.21 Million Euros in 2009 
         Millions Euros in 2010  not yet available  
 4. Policy objective and/or purpose of the subsidy 
  Facilitating the restructuring of mining districts to help closing mines in which activity has 
become uneconomic. 
  G/SCM/N/220/EEC/Add.14 
 Page 11 
 
 
  5. Duration of the subsidy 
 
 No final term is established.  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Due to its nature the scheme only h as an insignificant impact on trade. 
 7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are enterprises whose activities are located in mining districts in crisis. 
(b) The subsidy is paid up to 25 per cent (up to 50 per cent in the Mezzogiorno areas) of 
the eligible costs. Payment is made in three tranches: 
- 30 per cent at the start of the works; 
- 50 per cent at the end of the investment; 
- 20 per cent after the final inspection. 
Note:  according to law 112/98, the competence of  this programme is now due to the Regions. 
 
G. FEMALE ENTREPRENEURS  
1. Name of the subsidy scheme and legal basis 
 
 Law n. 215/92  – Female Entrepreneurs. 
 2. Form of the subsidy 
  Grant. 
 
 Interest subsidy.  3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
 
 6.36 Million Euros in 2009  
         Million Euros in 2010  not available yet  4. Policy objective and/or purpose of the subsidy 
 
(a) Promotion of new female activities in different fields (industry, agriculture, trade, 
services  and handicraft); 
(b) Promotion and development of new qualified female entrepreneurs.  
5. Duration of the subsidy: 
 
 No final term is established.  
 G/SCM/N/220/EEC/Add.14 
Page 12  
 
  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Not relevant: the measure is not specific a nd it is notified for the sake of transparency. 
 7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are SME's owned by females operating in different sectors: industry, 
agriculture, trade, handicraft and services: in  case of a capital society, majority has to 
be owned by females; in case of personal soci ety, 60% of partners have to be females. 
 
(b) Ministry of Industry concedes contributi on in a variable measure (from 15% up to 
65% in ESL) depending on geographical locati on of the enterprises.  Contribution is 
erogated in two tranches: the first, equivalent to the 40% of the contribution, during the realisation of the project; the second when the project is completed. 
H. U
RGENT MEASURES FOR THE ECONOMY – AUTOMATIC INCENTIVES  
1. Name of the subsidy scheme and legal basis 
 
 Law 266/97, art. 8.2 . Urgent measures for the economy – Automatic incentives. 
 2. Form of the subsidy 
 
 Tax concession. 
 3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
 
 11.03 Million Euros in 2009 
           Million Euros in 2010  not yet available  4. Policy objective and/or purpose of the subsidy 
  Promotion of investments of enterprises in machinery. 
 
5. Duration of the subsidy 
  No final term is established.   
6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Due to its nature the scheme only h as an insignificant impact on trade. 
 7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are enterprises operating all over the national territory. 
(b) The subsidy consists in the concession of a fiscal bonus in tax payment. 
 Note:  according to law 112/98,  the competence of this programme is now due to the Regions. 
  G/SCM/N/220/EEC/Add.14 
 Page 13 
 
 
  I. FISCAL MEASURES IN FAVOUR OF INNOVATION OF INDUSTRIAL ENTERPRISES (MAP 4) 
1. Name of the subsidy scheme and legal basis 
 
 Law 140/97, art. 13.  Fiscal measures in favour of innovation of industrial enterprises. 
 
2. Form of the subsidy 
 
 Tax concession.  3. Subsidy per Unit or, in case this is not possible, the global amount of subsidies distributed in 
2009 and 2010 
  1.12 Million Euros in 2009          Million Euros in 2010 (only for Sicilia e Valle d'Aosta)  not available yet  
 
4. Policy objective and/or purpose of the subsidy 
 
 Promotion of investments of enterprises in R&D.  5. Duration of the subsidy 
 
 No final term is established. 
  6. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 Due to its nature the scheme only h as an insignificant impact on trade. 
 
7. Indicate to whom and how the subsidy is paid 
 
(a) Beneficiaries are enterprises operating all over the national territory. 
(b) The subsidy consists in the concession of a fiscal bonus in tax payment. 
 Note:  according to law 112/98,  the competence of this programme is now due to the Regions. 
 
III. CUSTOMS AGENCY 
A. EXCISE DUTY REDUCTION ON SOME PRODUCTS FOR ENVIRONMENTAL PROTECTION – 
BIOETHANOL  
1. Name of the subsidy programme/brief description/identification of the subsidy 
 
 Excise reduction on some products for environmental protection purposes (for bio-ethanol  of agricultural origin € 289.22 each 1000 l itres, for ETBE 298.92€ each 1000 litres). 
 2. Form of the subsidy 
 
 The subsidy was granted in the form of par tial reimbursement of excise duty for previously 
assigned quotas; in short, for products under item 1, for previously assigned and actually produced 
quantities the rate was as indicated on item 1) instead  of a full rate as in the case of energy products 
used as engine fuels.   
 G/SCM/N/220/EEC/Add.14 
Page 14  
 
  3. Subsidy per Unit/Total amount budgeted 
 
The subsidy, in terms of tax burden redu ction as envisaged by the scheme, was: 
 
- in 2009: approx. € 15,480,408.05 ; 
- in 2010: approx. € 3,800,000 €  (due to the reduced subsidy as of Art.2, par. 
64 of the Italian Law 191 of 23.12.2009). 
4. Policy objective and/or purpose of the subsidy 
 
 To increase energy sources with reduced environm ental impact, for products used as it is or  
mixed with engine fuels. 
 5. Period to be covered by the notification 
 
2008-2010. 
 
6. Background and authority for the subsidy  
  By Decision C(2008)4589 of 20th August 2008, the European Commission authorized the subsidy at issue (previously authorized on 23rd October by Decision C30/06) up to 31 December 2010, when the subsidy would then expire. The aid in question was not co-funded by 
Community funds.  
  Italian Decree Law No. 128 of 5th August 2 009, which was adopted by the Minister of 
Economy and Finance, the Minister of Economic Development, the Minister for Environment and Territory and the Minister of Agricultural, Food and Forestry policies – OJ of the Italian Republic 
No. 205 of 4 September 2009, established crite ria for granting subsidies and the technical 
characteristics of the products and mixtures to be used as engine fuel.  7.  To whom and how the subsidy is provided 
 Beneficiaries were: authorized warehousekeepers owning plants which produce products entitled to 
benefit from the reduction. 
 8.  For the information cited in items 3 to 7 a bove, the notification does not necessarily have to  
have an independent heading corresponding to  each item, and may provide information on 
multiple items in one heading  
 
 No remarks.  9. Duration of the subsidy 
  Tax-reduced quotas were assigned as follows:  
 
- - 22 October 2009 (for 2009) 
- - 2 March 2010 (for 2010).  G/SCM/N/220/EEC/Add.14 
 Page 15 
 
 
  10.  Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 The Ministry of Economy and Finance – Departme nt of International Re lations has developed 
six-month and annual monitoring studies aiming at avoiding the risk of overcompensation.  This Agency, within its competence, ha s provided excise rates for fuels.   
 
B. E
XCISE DUTY REDUCTION ON SOME PRODUCTS FOR ENVIRONMENTAL PROTECTION –
BIODIESEL  
1. Name of the subsidy programme/brief description/identification of the subsidy 
 
 A 20% excise duty reduction was granted on biodie sel used as it is or mixed with gas oil, 
instead of the standard 423 €/m3 at a temperature of 15°C. The rate applied to the subsidized biodiesel 
was 84.6 €/m3 at a temperature of 15°C.  The quantity of subsidized biodiesel was 250,000 tons in 
2009 and 18,000 tons in 2010.   
2. Period to be covered by the notification 
 
2007-2010. 
 3.  Policy objective and/or purpose of the subsidy 
 
 To increase energy sources with reduced environmental impact, for biodiesel used as it is or 
mixed with energy products used as engine or heating fuel.  4.  Background and authority for the subsidy  
 
 By Decision C(2008)850 of 11 March 2008 (State aid No.326/2007 for biodiesel), the 
European Commission authorized the reduction at issue up to 31 December 2010, when the scheme 
would then expire. The aid in question was not co-funded by Community funds.    National Legislative Decree no. 156 of 3 Septem ber 2008, which was adopted by the Minister 
of Economy and Finance, the Minister of Economic Development, the Minister for Environment and 
Territory and the Minister of Agricultural, Food and Forestry policies – OJ of the Italian Republic 
No. 239 of 11 October 2008, in force as of 12 Oct ober 2008, established criteria for granting subsidies 
and the technical characteristics of biodiesel and its g as oil mixtures to be used as engine and heating 
fuel.  
5.   Form of the subsidy 
  The subsidy has been granted in the following way: 
 
- at the tax warehouses where biodiesel is mixed with gas oil: by taking into 
consideration the tax amount resulting from the difference between the rate 
applied on gas oil used as engine fuel and the reduced rate applicable to 
subsidized biodiesel and by deductin g such an amount from the excise 
accounting records of the warehouse keeper where the mixing procedure takes place;   
- at the tax warehouses from where the biodiesel is brought into consumption 
as it is: by applying the reduced rate to the quantity brought into 
consumption. G/SCM/N/220/EEC/Add.14 
Page 16  
 
  6.  To whom and how the subsidy is provided 
 
 Beneficiaries were: authorized warehousekeep ers located on the Community territory and 
owning biodiesel plants.  
7.  Subsidy per Unit/Total amount budgeted 
  The subsidy, in terms of tax burden reduction  for producers as envisaged  by the scheme, was: 
 
- in 2009: approx. 95,500,000 €  
- in 2010: approx. 6,900,000 €  (due to the reduced subsidy as of Art.2, par. 64 
of the Italian Law 191 of 23.12.2009). 
8.   For the information cited in items 3 to 7 above, the notification does not necessarily have to 
have an independent heading corresponding to each item, and may provide information on 
multiple items in one heading  
 
No remarks. 
 
9. Duration of the subsidy 
 
Tax-reduced quotas were assigned as follows:   
- 27 February 2009 (for the year 2009) 
- 24 February 2010 (for the year 2010). 
10. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 The Ministry of Economy and Finance – Departme nt of International Re lations has developed 
six-month and annual monitoring studies aiming at avoiding the risk of overcompensation.   
 
__________