WORLD TRADE  
ORGANIZATION  G/SCM/N/211/MUS 
6 September 2010 
 (10-4572) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Continuation of Extension under SCM Artic le 27.4 of the Transition Period for  
the Elimination of Export Subsidies Pursuant to the Procedures Contained  
in the General Council Decision in Document WT/L/691  
 
MAURITIUS 
  
 The following communication, dated 3 September 2010, is being circulated at the request of 
the Delegation of Mauritius.  
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Please find attached, for circulation to Member s of the Committee, the updated notification of 
Mauritius and the Action Plan in respect of the Fr eeport Scheme Subsidy Programme – Corporate Tax 
Exemption.  
With regards to the Freeport Scheme - Cust oms and Excise Duty Exemption on Machinery 
and Equipment imported into the Freezone, the rele vant authorities wish to point out that although 
notification was made regarding excise duty con cession on machinery and equipment, there is no 
excise duty thereon.  As regards customs duty, Ma uritius has undertaken major reforms in the 2006 
and 2008 budgets with the result that 86 per cent of the tariff lines are now duty free.  Virtually all imported industrial machinery and e quipment do not attract any customs duty.  A copy of our updated 
Customs Tariff Schedule is available on the we bsite of the Mauritius Revenue Authority at 
http://www.gov.mu/portal/sites/mra/index.htm
. 
 G/SCM/N/211/MUS 
Page 2  
 
  1. Title of the Subsidy Programme
 
 
The Freeport Scheme 
  Description of the scheme 
 
 Corporate Tax Exemption 
 
2. Period covered by the notification
 
 
 June 2009-June 2010 
 3. Policy Objectives
 
 
To encourage trading companies to use the Ma uritius Freeport as a logistics and marketing 
platform for the re-exportation for their goods to Eastern and Southern Africa. 
 4. (a) Background authority for the Scheme
 
 
The Board of Investment and the Income Tax Department 
 
 (b) Legal Basis  
 
 Income Tax Act 1995 (Section 49) 
 5. Form of Subsidy
 
 
 Corporate tax exemption on income derived fro m activities carried out in the Freeport zone 
except for Freeport operators and private Freeport de velopers licensed after 1 June 2002 to carry out 
any specified Freeport processing activities.  6. Beneficiaries
 
 
Freeport operators and private Freeport developers which are engaged in processing (licensed 
on or before 1 June 2002) and those engaged in light assembly , ship building, repairs and 
maintenance.  
7. Subsidy per unit or Total Amount
 
 
The Government suffers no effective loss of income due to foregone taxes since these 
activities would not have taken place in Mauritius wit hout the existence of the Freeport and its related 
incentives.  
8. Duration of the Subsidy
 
 
The scheme is not limited in time. 
 9. Assessment of trade effects
 
 
 This incentive has contributed to the development of the Mauritius Freeport.   G/SCM/N/211/MUS 
 Page 3 
 
 
  ACTION PLAN IN ACCORDANCE WITH THE DECISION  
OF THE GENERAL COUNCIL 
(WT/L/691) 
 
 
  
(a) Description of the 
programmes. Corporate Tax Exemption – to encourage trading companies to use the 
Mauritius Freeport as a logistics and marketing platform for the re-exportation of their goods to Eastern and Southern Africa. 
 
(b) Description of the domestic 
procedures necessary to eliminate export subsidies. 
 Decision to review/eliminate progra mmes aimed at supporting industries 
is taken in the context of the annual budget exercise. 
(c) Description of actions that 
have been or are in the 
process of being undertaken. 
 
(d) Description of future 
actions. 
 Depending on the health of the world economy and the economic 
situation in Mauritius which is currently facing the impact of the global 
economic downturn and the Euro zone  crisis, corporate tax exemption 
for the Freeport may be reviewed in 2011-2012. 
 
 
 
  
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