WORLD TRADE  
ORGANIZATION  G/SCM/N/123/URY 
G/SCM/N/128/URY 6 July 2005 
 
 
(05-2982) 
Committee on Subsidies and Countervailing Measures Original:   Spanish 
 
 
 
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  
 
Extension under SCM Article 27.4 of the Transition Period  
for the Elimination of Export Subsidies Pursuant  
to the Procedures in Document G/SCM/39  
 
Updating Notification  
 
URUGUAY 
  
 The following communication, dated 29 June 2005,  is being circulated at the request of the 
delegation of Uruguay.  
_______________ 
  
 The Permanent Mission of Uruguay to the World Trade Organization (WTO) presents its compliments to the Central Registry of Notifica tions of the WTO Secretariat and has the honour to 
submit the following notification relating to the ex tension of the transition period pursuant to 
Article 27.4 of the Agreement on Subsidies and Countervailing Measures, in  accordance with the 
obligation for an annual review by the Comm ittee on Subsidies and Countervailing Measures as 
stipulated by the Decision of 22 November 2002 (WTO document G/SCM/92).   This extension was granted to Uruguay until 31 December 2004, without prejudice to 
authorization being given for the programme to continue until the e nd of 2007, subject to an annual 
review by the Committee of the objectives and c onditions set forth in the above-mentioned rules, 
which require compliance with the transparency an d standstill provisions contained in paragraphs 3 
and 4 of the Procedures.   The reasons that led Uruguay to request the ex tension of the transition period for the granting 
of export subsides to the automotive sector, in ac cordance with Article 27.4 as well as with the 
Procedures in document G/SCM/39, still apply, fo r which reason their continuation within the 
framework of the Decision of 22 November 2002 is hereby requested.   The measures the extension of which is being re quested are those contained in the regulations 
already amended by Uruguay, in accordance with the transp arency and standstill provisions set out in 
paragraphs 3 and 4 of the Procedures. G/SCM/N/123/URY 
G/SCM/N/128/URY Page 2 
 
 
 Automotive industry
 
 1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy . 
 
 Regulations for enterprises exporting vehicles assembled in the country.  2. Period covered by the notification
. 
 
 1 July 2004 to 30 June 2005. 
 3. Policy objective and/or purpose of the subsidy
. 
  Restructuring of the automotive sector and sp ecialization in market segments for export. 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted) . 
  Adoption of measures to facilitate business d ecisions related to production and investment 
programmes and in preparation fo r the common Mercosur regime. 
 
 Decree No. 316/92 of 7 July 1992, published in the Official Journal on 25 September 1992.   Decree No. 583/94 of 30 December 1994.  
 Decree No. 340/96 of 23 August 1996, pub lished in the Official Journal on 
6 September 1996.   Decree No. 60/99 of 3 March 1999, published in  the Official Journal on 12 March 1999. 
  Decree No. 273/99 of 10 September 1999, published in the Official Journal on 
20 September 1999.
1 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
). 
  Enterprises which export vehicles completed or part-completed in the country, or auto-parts 
of national origin, may benefit from a customs co ncession, applicable to the importation of motor 
vehicles assembled in the place of origin and destined  for the domestic market , in accordance with the 
conditions laid down in th e above-mentioned regulations, or allocat e it for the payment of taxes due to 
the Directorate-General of Taxation, in acco rdance with Article 3 of Decree No. 60/99. 
 
                                                     
 
1 Decrees Nos. 60/99 and 273/99 amended Decree No. 316/92 and prescribed a tax benefit which is not 
limited strictly to the importation of vehicles, but can also be used for meeting tax obligations. 
  G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 3 
 
 
 6. To whom and how the subsidy is provided (whether to producers, exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ). 
 
 For every United States dollar of exports (based on the f.o.b. values declared in the relevant 
customs declarations), imports may be made with a concession of 13 per cent of the TGA (global tariff), applicable to the surcharg e element, for new vehicles assemb led in the place of origin (based 
on the c.i.f. values declared to the Banco de la República Oriental de Uruguay (BROU)), or payments 
may be allocated to the Directorate-General of Taxation. 
 
7. Subsidy per unit or, in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per-unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation . 
 
 Thirteen per cent of the TGA (global tariff), applicable to the surcharge element, for new 
vehicles assembled in the place of origin.  8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement . 
 
 Decree No. 60/99 entered into force in 1999  and remains in force by virtue of 
Decree No. 273/99.  9. Statistical data permitting an assessment of th e trade effects of the subsidy.  The specific 
nature and scope of such data is left to the judgement of the notifying Member.  To the extent 
possible, relevant and/or determinable, however, it is desirable that such information include 
statistics on the production, consum ption, imports and exports of the subsidized products(s) or 
sector(s) . 
  Exports for the period 1 January to 31 December 2004 totalled US$141,582,935.67.G/SCM/N/123/URY 
G/SCM/N/128/URY Page 4 
 
 
 Decree No. 316/992  
 Publication: 25 September 1992 
 
National Register of Laws and Decrees: Volume: 1 
 Semester: 2  Year: 1992  Page: 26 
 
LACALLE HERRERA - EDUARDO ACHE - IGNACIO DE POSADAS MONTERO   HAVING REGARD to the measures adopted for th e purpose of deregulating the automotive 
industry;  
 WHEREAS the special characteristics of the na tional automotive industry and of the domestic 
motor vehicle market make it advisable to adopt measures to encourage the growth of exports of 
products of the sector, thereby enabling it to be restructured;  CONSIDERING: 
 
(I) the effects on local industry of the policies deve loped in this sector by the Mercosur member 
countries; 
 (II) that the measures to be applied will facilitate the adoption of sectoral agreements within the 
framework of the aforementioned treaty with a vi ew to accelerating the integration of regional 
industry; 
 (III)  that it is desirable to establish the exclusi on of the benefit consisti ng of the refunding of 
indirect taxes in respect of the products the exportation of which is encouraged by this Decree; 
 
(IV) that it is necessary to find mechanisms for pr eventing the distortions which in the process of 
restructuring may be caused by commercial pract ices such as the importation of used vehicles 
or the assembly of vehicles from used parts; 
 
 MINDFUL of the above and the provisions of Article 2.2(c) of Law No. 12.670 of 
17 December 1959:  
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
 
Article 1
 
 
 Enterprises which export completed or part-com pleted vehicles assembled in the country or 
auto-parts of national origin may avail themselve s of the following mechanism, applicable to the 
importation of new motor vehicles assembled in the place of origin and destined for the domestic 
market and to products they import under tari ff heading 8708.99.90.50 of the Mercosur Common 
Nomenclature.   They may make imports with a concession of  up to 13 per cent of the TGA (global tariff), 
which includes the three per cent increase under Article 1 of Decree No. 484/997 of  G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 5 
 
 
 29 December 1997, subject to a ceiling of the equi valent of US$0.10 (ten United States cents) for 
every United States dollar of exports, based on the f. o.b. value stated in the customs declarations. 
  Enterprises that cumulate the benefit provided under Decree No. 558/994 of 
21 December 1994 may reduce the ceiling provided for in the preceding paragraph to US$0.07 (seven 
United States cents) and may allocate US$0.005 (zero poi nt five United States cents) to be used in the 
manner established in Decree No. 558/994 under re ference, in which case the ceiling shall fall to 
US$0.065 (six point five United States cents).  
 The enterprises covered in the first paragraph of  this Article which, within a period of 90 days 
as from the date of the export declaration, fail to make use of the TGA benefit in any of the alternatives envisaged, may allocate the balances fo r the payment of taxes due to the Directorate-
General of Taxation.(*) --------------------------------------------------------------------------------------------------------------------------- 
(*) Wording of Decree No. 60/999 of 3 March 1999, Article 1.  The original text can be viewed in 
Official Journal No. 23.648 of 25 September 1992.  See Article 4. ---------------------------------------------------------------------------------------------------------------------------  
Article 2
 
  The following products shall be considered e ligible for the benefits provided for in this 
Decree:   - Auto-parts produced in the country from domestic or imported raw materials, which 
have undergone a change in their original composition, shape or structure, provided 
that their ultimate destination is an automotive terminal or the motor vehicle 
replacement parts market, or that they can reliably be shown to have been used in 
motor vehicles; 
  - Auto-parts assembled in the country a nd consisting of vehicle assemblies or sub-
assemblies, provided that they are the result of a significant industrial process; 
 
 - Completed or part-completed vehicles assembled in the country from imported kits 
with a degree of disassembly approved by the National Department of Industry; 
  - Vehicle and auto-part manufacturing or assembly plants must demonstrate a national 
or regional value added, as appropriate, in accordance with the origin requirements of 
the bilateral or multilateral agreements concluded between the country and the 
importing countries. 
  The National Department of Industry of the Ministry of Industry, Energy and Mines shall be responsible for verifying compliance with  the provisions of this Article.(*) 
--------------------------------------------------------------------------------------------------------------------------- 
(*) See Article 10. ---------------------------------------------------------------------------------------------------------------------------  
Article 3
 
 
 The National Department of Industry of the Ministry of Industry, Energy and Mines shall monitor the values imported and exported by the resp ective enterprises and shall issue the appropriate 
certificates attesting that the importation qualifies for a concession of up to 10 per cent of the TGA, which shall be submitted to the Banco de la Repúbli ca Oriental del Uruguay, together with the form G/SCM/N/123/URY 
G/SCM/N/128/URY Page 6 
 
 
 giving entitlement to import vehicles assembled in the place of origin, upon presentation of the import 
application.  
Article 4
 
 
 The exporting enterprises referred to in Artic le 1 may assign their rights derived from prior 
exports to enterprises that import vehicles for sale on the domestic market, which in this case shall be 
the beneficiaries of the tax exemption for which th is Decree provides.  The National Department of 
Industry of the Ministry of Industry, Energy a nd Mines shall check the respective assignment and 
authorize it, where appropriate. 
 
Article 5  
 
(*) 
--------------------------------------------------------------------------------------------------------------------------- 
(*) Revoked by Decree No. 583/994 of 30 December 1994 , Article 1. The original text can be viewed 
in Official Journal No. 23.648 of 25 September 1992. ---------------------------------------------------------------------------------------------------------------------------  
Article 6
 
 
 The certificate of origin for vehicles assembled in the country for export to the Federal 
Republic of Brazil under the Trade Expansion Prot ocol (PEC) shall be issued by the National 
Department of Industry of the Ministry of Industry, Energy and Mines.  Article 7
 
 
 The vehicle category G established by Article  1 of Decree No. 128/970 of 13 March 1970 is 
abolished.  Articles 7 and 8 of Decree No. 464/978 of 11 August 1978 are revoked. 
 
Article 8  
 
 The importation of goods referred to in Artic le 1 of Decree No. 494/990 of 29 October 1990 
and Article 1 of Decree No. 583/990 of 18 Decemb er 1990 is prohibited for a period of 120 (one 
hundred and twenty) days from the entry into effect of this Decree.  Article 9
 
 
 The importation of used vehicles classified under NADI (Argentine tariff and import duty schedule) heading 87.02 and subheading 07.01.02 is prohibited for a period of 120 (one hundred and 
twenty) days from the entry into effect of this Decree.  Article 10
 
 
 Products covered by the provisions of Article 2 of this Decree in accord ance with a resolution 
of the National Department of Industry of the Mini stry of Industry, Energy and Mines are excluded 
from the benefits accorded by Article 5 of  Decree No. 393/991 of 29 July 1991. 
  G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 7 
 
 
 Article 11  
 
 This Decree shall enter into effect upon p ublication in two newspapers of the capital. 
 Article 12
 
 
 Proclaimed, published, etc. G/SCM/N/123/URY 
G/SCM/N/128/URY Page 8 
 
 
 Decree No. 583/994 
 
Promulgation: 30 December 1994  Publication: 13 January 1995  
 National Register of Laws and Decrees: not included. 
 LACALLE HERRERA - MIGUEL ANGEL GALAN  - IGNACIO DE POSADAS MONTERO 
  HAVING REGARD to the regime adopted by Decr ee No. 316/992 of 7 July 1992 for the purpose
of encouraging the restructuring of  the national automotive industry; 
  WHEREAS:  (I) The Council of the Common Market of Mercosur has decided (Decree No. 29/994) to establish: 
 
 (a) A Common Automotive Regime to operate from 1 January 2000;   (b) a provisional regime to operate from 1 June 1995;  and   (c) that no restrictive changes in intra-zona l automotive sector trade shall be unilaterally 
introduced; 
 (II) It is considered desirable to extend the pe riod of validity of the regime established in
Decree No. 316/992, since domestic enterprises are in the midst of a process of restructuring
under that Decree; 
 
(III) The extension to be granted does not involve a restriction on intra-zonal automotive sector trade; 
  IN THE LIGHT of the above:  
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
 
Article 1
 
 Article 5 of Decree No. 316/992 of 7 July 199 2 is revoked, the TGA (global tariff) concessions
established by that Decree being maintained in fo rce until the Mercosur member countries agree upon the
provisional regime referred to in recital (I).    G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 9 
 
 
 Decree No. 340/996 
Promulgation: 28 August 1996  Publication: 6 September 1996 
 
National Register of Laws and Decrees:  Volume: 1 
 Semester: 2  Year: 1996  Page: 634 
 
SANGUINETTI - JULIO HERRERA - LUIS MOSCA   HAVING REGARD to the regime that regul ates the national automotive industry; 
  CONSIDERING: 
 
(I) The present transitional situation through whic h the Mercosur automotive sector is passing 
and the initiation of definitions by Argentina and Brazil in connection with the final regime to 
operate from the year 2000; 
 
(II) the prospect of Uruguay occupying a competitive position in the industry of the region, 
specializing in segments of the market and cons olidating the changes made with a view to 
exporting to the region; 
 (III) the existence of an unfavourable regional ec onomic climate which has limited exports under 
the Argentine-Uruguayan Economic Coopera tion Agreement (CAUCE) and the Trade 
Expansion Protocol (PEC) and affect ed levels of industrial production; 
  WHEREAS it is desirable to adopt measures to facilitate business decisions concerning production schedules and investment and in pr eparation for the common Mercosur regime; 
 
 MINDFUL of the provisions of Article 2 of Law No. 12.670 of 17 December 1959 and 
Article 2 of Law No. 16.492 of 2 June 1994:  
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
 
Article 1
 
 
 Motor vehicle components or auto-parts (par ts, assemblies and subassemblies) imported as 
kits, in accordance with the lists au thorized for each model by the National Department of Industry of 
the Ministry of Industry, Energy and Mines, shall be subject to a global tariff (TGA) of two (2) per 
cent by way of minimum surcharge.   The provisions of this Article shall apply durin g the period of validity of Decree No. 316/992 
of 7 July 1992. 
 G/SCM/N/123/URY 
G/SCM/N/128/URY Page 10 
 
 
 Article 2
 
 
 The benefits for which Decree No. 316/992 of 7 July 1992 provides may be cumulated with 
those established by Decree No. 558/994 of 21 De cember 1994, under the conditions laid down in the 
next Article.(*) 
--------------------------------------------------------------------------------------------------------------------------- (*) See Article 3. --------------------------------------------------------------------------------------------------------------------------- 
Article 3
 
(*) 
--------------------------------------------------------------------------------------------------------------------------- (*) Revoked by Decree No. 60/999 of 3 March 1999, Artic le 4.  The original text can be viewed in 
Base DIAR
. 
      See Articles 5 and 6. 
--------------------------------------------------------------------------------------------------------------------------- 
 
Article 4  
 
 Motor vehicles classified under headings 87.02 , 87.03 and 87.04 are incorporated in the 
regime established by Decree No. 558/994 of 21 December 1994, the tax refund percentage being 
fixed at 3.3% (three point three per cent). 
 
Article 5  
 
 Exporters of products covered by Decree No. 316/992 of 7 July 1992 for whom a tax refund 
percentage has not been fixed within the c ontext of the above-mentioned Decree No. 558/994 and 
who wish to opt for the cumulation of both benefits  under the conditions laid down in Article 3 must 
apply to the Ministry of the Economy and Finance with a reasoned request for the fixing of a tax refund percentage.  
Article 6
 
  For the purpose of obtaining the "Tax Refund Certificates" referred to in Article 6 of the 
above-mentioned Decree No. 558/994, the beneficiary enterprises must lodge with the Banco de la 
República Oriental del Uruguay a cer tificate issued by the National Department of Industry of the 
Ministry of Industry, Energy and Mines showing that they are operating within the framework of 
Article 3 of this Decree. 
 
Article 7
 
 
 Account shall be rendered to the General Assembly. 
 Article 8
 
 
 This Decree shall enter into effect on 1 September 1996.  
Article 9
 
 
 Proclaimed, published, etc.  G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 11 
 
 
 Decree No. 60/999 
Promulgation: 3 March 1999 Publication: 12 March 1999 
 
National Register of Laws and Decrees: Volume: 1 
 Semester: 1  Year: 1999  Page: 368 
 
SANGUINETTI - LUIS MOSCA - JULIO HERRERA   HAVING REGARD to the regime governing the automotive industry;   WHEREAS it is necessary to amend that regime  in order that it may more efficiently attain 
the objectives for which it was adopted; 
  ACCORDINGLY:  
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
  
Article 1
 
 
(*) --------------------------------------------------------------------------------------------------------------------------- (*) This Article reworded Decree No. 316/992 of 7 July 1992, Article 1, and should therefore be 
viewed in the latter. --------------------------------------------------------------------------------------------------------------------------- 
 
Article 2
 
 
 The National Department of Industry of the Ministry of Industry, Energy and Mines shall 
monitor the use of the benefit provided for in Artic le 1 and shall issue the corresponding certificates 
for presentation to the competent government authorities. 
 
Article 3  
 
 (Transitional provision).  The enterprises cove red by Article 1 may earmark for the payment 
of taxes due to the Directorate-General of Taxation su ch balances as may exist on the effective date of 
this Decree owing to the non-use of the TGA concession envisaged under the present regime and 
which are no older than 90 days as from the said date.  
Article 4
 
  Article 3 of Decree No. 340/996 of 28 August 19 96 and all provisions conflicting with the 
present Decree are hereby revoked. G/SCM/N/123/URY 
G/SCM/N/128/URY Page 12 
 
 
 Article 5
 
(*) 
--------------------------------------------------------------------------------------------------------------------------- (*) Revoked by Decree No. 273/999 of 10 September 1999, Article 1.  The original text can be 
viewed in Base DIAR
. 
---------------------------------------------------------------------------------------------------------------------------  
Article 6
 
 Proclaimed, published, etc.  G/SCM/N/123/URY 
 G/SCM/N/128/URY 
 Page 13 
 
 
 Decree No. 273/999 
 
Promulgation: 10 September 1999  Publication: 20 September 1999 
 
National Register of Laws and Decrees: Volume: 1  Semester: 2  Year: 1999  Page: 610 
 SANGUINETTI - JULIO HERRERA - LUIS MOSCA 
  HAVING REGARD to the regime governing the automotive industry and the provisions of Decree No. 60/999 of 3 March 1999;  
 WHEREAS it is necessary to maintain the re gime governing the automotive industry in force 
as from 1 January 2000, with the amendments in troduced by Decree No. 60/999 of 3 March 1999; 
  ACCORDINGLY:  
THE PRESIDENT OF THE REPUBLIC 
 
HEREBY DECREES: 
 
Article 1
 
  Article 5 of Decree No. 60/999 of 3 March 1999 is hereby revoked. 
 
Article 2
 
 
 Proclaimed, published, etc.  
__________