WORLD TRADE  
ORGANIZATION  G/SCM/N/155/MUS/Suppl.1 
G/SCM/N/177/MUS 3 September 2008 
 
(08-4118) 
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  
 
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  
  
MAURITIUS 
 
 
 The following communication, dated 12 August 2008,  is being circulated at the request of the 
Delegation of Mauritius.  
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G/SCM/N/177/MUS Page 2 
 
 
   As you may be aware, Mauritius has the obligation to notify the WTO Committee on 
Subsidies and Countervailing Measures on 5 subsidy programmes, namely:   (i) Export Enterprise Scheme:  Exemption of customs duty and excise duty 
on schedules equipment; 
  (ii) Pioneer Enterprise Scheme:  Exemption of customs duty and excise duty 
on schedules equipment; 
 
 (iii) Export Promotion:  Income tax exemption; 
  (iv) Freeport Scheme:  Corporate tax exemption;  and   (v) Freeport Scheme:  Custom s duty and excise duty concession on 
machinery and equipment import into Freeport. 
 Out of the five programmes, three, namely (i), (ii) and (iii) above have already been phased out. 
  In the light of the above, please find attached, for circulation to Members of the Committee, the updated Notification of Mauritius in respect of the extension period under Article 27.4 of the 
SCM Agreement for the Freeport Schemes:  (i) Cor porate tax exemption and Customs duty and excise 
concession on machinery and equipment imported into the Freeport.   This notification is also submitted pursuant to  the General Council Decision of 27 July 2007. 
 
  G/SCM/N/155/MUS/Suppl.1 
 G/SCM/N/177/MUS 
 Page 3 
 
 
  1. FREEPORT SCHEME 
 
1. Title of subsidy programme  
 
Freeport Scheme 
Description of the scheme 
Customs and excise duty exemption 
 2. Period covered by notification
 
 June 2007 – June 2008 
 3. Policy objective
 
  To promote and encourage freeport trade includi ng transit and entrepôt trade and to position 
Mauritius as a major regional distribution, transhipment and marketing centre. 
 4. (a) Background authority for the scheme
 
   The Board of Investment and th e Customs and Excise Department. 
 
 (b) Legal basis
 
   Freeport Act 2004  5. Form of subsidy
 
 
 Customs and Excise Duty concession on machinery and equipment imported into the Freeport Zone.  6. Beneficiaries
 
 
 Private Freeport Developers, Third Party Fr eeport Developers and Freeport Operators. 
 7. Subsidy per amount or total subsidy
 
  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 subsidy
 
  The scheme is not limited in time. 
 
9. Assessment of trade effects
 
  The scheme has encouraged international comp anies to carry out value added activities such 
as labelling, packing, repacking, and mixing in the Freeport Zone. 
 
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G/SCM/N/177/MUS Page 4 
 
 
  1. Title of subsidy programme
 
 
Freeport Scheme  
Description of the scheme 
Corporate Tax Exemption 
 2. Period covered by notification
 
 June 2007 – June 2008   
 
3. Policy objective  
  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. 
 
4. (a) Background authority for the scheme
 
   The Board of Investment a nd 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 De velopers 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 subsidy
 
 
 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. 
  
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