. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/TPKM/16 
10 April 2012 
 (12-1859) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by AUSTRALIA1 Regarding the New and Full  
Notification of the SEPARATE CUSTOMS TERRITORY OF  
TAIWAN, PENGHU, KINMEN AND MATSU2 
 
  The following communication, dated 2 April 2012, 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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INDUSTRY 
 Medium and long-term loans of product mark eting and loans for overseas investment and 
construction projects 
 
 The object of this program is to provide small and medium enterprises with financial 
assistance in exploring new markets for their machinery and equipment, in investing and 
establishing plants in foreign countries, and in  undertaking overseas contracts for construction 
projects.  
 Questions  
 
 Please provide the details of the eligibility criteria for access to this program.  Please 
provide details of how many entities were assisted under this program. 
 
Reply 
 
 All enterprises that meet the " Standards for Identifying a Small and Medium-Sized 
Enterprise " or the criteria for the " Small and Medium-Sized Business Credit Guarantee Fund " are 
eligible to apply for the loan.  Eligibility is not limit ed to a particular industry sector or specific type 
of machinery and equipment. 
  The risk of the loan is undertak en by the loan banks.  The interest  rate of a loan is decided by 
the loan banks based on the financ ial conditions of the borrower and the risk of the exporting regions 
for the transactions involved, and is a certain margins over LIBOR (London InterBank Offered Rate) 
or OECD CIRRS (Commercial Interest Reference Rates).  As compared to the market interest rates, 
there is no preferential offer to a specific entity.  It  mainly depends on the financial conditions of the 
enterprises and its bargaining power over interest rate with the loan banks. 
                                                      
1 G/SCM/Q2/TPKM/14/Rev.1. 
2 G/SCM/N/220/TPKM/Rev.1. G/SCM/Q2/TPKM/16 
Page 2 
 
 
  The number of cases approved annually by th e lending bank have been as follows: 
 
2008:  114 cases worth a total of NT$ 526 million. 2009:      3 cases worth a total of NT$ 100 million. 
2010:      7 cases worth a total of NT$ 47 million. 
2011:    80 cases worth a total of NT$ 541 million. 
 FISHERIES  
Fishing Vessels Buy-Back Programme 
 Questions 
 
 The buy-back amounts relate to the gross to nnage of a vessel.  How has this value been 
determined and on what basis?  Is this value reviewed over time?  How many beneficiaries have 
there been?    
Reply 
  The buy-back value of a fishing vessel is dete rmined on the basis of the gross tonnage of the 
vessel and the prevailing market value.  The market value is reviewed annually and the " Operating 
Procedures for the Buy-Back  and Disposal of Fishing Vessels and Rafts " are renewed accordingly.   
  From 1991 to 2011, a total of 3,262 fishing vessels have been bought back under this 
programme. 
 
Reward for Closing Fishery Season 
 Questions 
 
 What are the criteria for receipt of a grant in a closing fishery?  Are all fishers with valid fishing licences corresponding to that fishery eligible? 
 
Reply 
 
 Any fishery operator who qualifies under the provisions of the " Directions for the Voluntary 
Suspension of Fishing " is eligible for a reward under this programme. 
 
Fishing Vessels Marine Insurance Reward 
 Questions 
 
 How is the grant determined?  Is there a monetary ceiling on the individual grant 
provided?  
Reply 
  In accordance with the " Regulations on Insurance Reward s for Owners of Fishing Vessels ", a 
vessel with a gross tonnage of up to 100 tons, and which has a Taiwanese fishi ng licence, is eligible 
for a reward under this programme.  In addition,  the said vessel must be insured in Taiwan.  
  
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