. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/TPKM/12 
24 August 2011 
 (11-4205) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions Posed by the UNITED STATES Regarding the New and Full  
Notification of the SEPARATE CUSTOMS TERRITORY OF  
TAIWAN, PENGHU, KINMEN AND MATSU1 
   The following communication, dated 4 August 2011, is being circulated at the request of the Delegation of the United States.   
 
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1. Interest Subsidy 
  Chinese Taipei notes that preferential loans are provided to businesses that move into an 
"agricultural technology park."  Are there additio nal benefits provided to entities that locate in 
agricultural technology parks?  If so, please describe.   Please explain whether the programmes liste d below are included under the reported 
programme "Funds Granted For Development of Pro ducts of the New Lending Industries".  If not, 
please explain why these programmes have not been notified or provide the information required 
under Article 25 of the SCM Agreement.  
 R&D Assistance and Investment in Na notechnology and Chip Design Industry 
 R&D Biotechnology Industry Investment Incentive Programme 
 R&D National Si-Soft Project. 
 2. Fuel Oil Programme 
 
 Previously, the United States asked several qu estions regarding Chinese Taipei's Fuel Oil 
Programme, which exempts fuel used in the fish eries sector from the comm odity tax, in accordance 
with Article 59 of the Fisheries Act.  In response, it  was stated that the fuel programme is not specific 
and therefore no notification was required.  Please explain further why this programme does not 
qualify as a specific subsidy pursuant to Article 2 of the SCM Agreement.   
 
3. Fisheries Development Fund 
 
 Article 56 of the Fisheries Act states that a Fisheries Development Fund will be established to 
promote fisheries development.  Previously, Chinese Taipei listed various activities that were eligible 
for assistance under the Fund, but noted that some were no longer budgetary items.  Please provide an 
                                                      
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  updated list of activities eligible for support under the Fund and explain whether any funds or other 
assistance was provided under the Fund during the period covered by the submitted notification.  
 
4. Low-Interest Loans for Orchid Growers 
  Chinese Taipei previously noted that it planne d to provide more information in its next 
notification on low-interest loans provided to orchid  growers to build facilities in an Industrial Park 
for orchid production.
2  Please provide the referenced additi onal information or provide a complete 
notification of this programme pursuant to Article 25 of the SCM Agreement. 
 5. Previously Notified Programmes  
 Previously, Chinese Taipei notified the programmes listed below; however, the latest 
notification no longer includes them.  Please explai n why these programmes have not been notified or 
provide the information required unde r Article 25 of the SCM Agreement. 
 
 Extension of Re-Use of Pond Water Used in Aquaculture 
 Fishing Vessels Reduction Programme 
 Fish Products Market Stabilization Fund 
 Five-Year Tax Exemption for the Emerging, Important and Strategic Industries 
 Tax Credit for Investment in a Disadvantaged Region 
  Certain publicly available information indicat es that there may be other support programmes 
which have not been notified.  For the two progr ammes listed below, please explain why they have 
not been notified or provide the information required under Article 25 of the SCM Agreement. 
 
6. DRAMS Industry Consolidation 
 
 In 2009, the Government of Chinese Taipei a nnounced plans to consolidate six producers of 
dynamic random access memory (DRAM) into one new company.  According to public reports at the 
time, the government had tentative plans to provide  investments from its Development Fund in the 
consolidated company to help Chinese Taipei's a iling memory chip industry.  To the extent the 
government provided assistance to the DRAM industr y as part of the consolidation process, please 
describe the nature of the assistance or provide th e information required under Article 25 of the SCM 
Agreement.  7. "Excellent" Importer/Exporter Business 
 
 Page 36, Paragraph 13 of Chinese Taipei's Trade Policy Report WT/TPR/S/232/Rev.1, states 
that exporters or importers, including publicly-own ed firms, that reach a certain level of trade 
performance may qualify as an "excellent" importing/e xporting business.  The benefits include service 
fee exemptions, preferential treatment for "special -case" services from the government, higher lines of 
credit, awards for export growth in "designated focal markets for export growth," among other 
incentives.  
 To the extent that incentives under this programme are contingent on export 
performance, please provide more information on the programme in light of Chinese Taipei's obligations under Ar ticle 3 of the SCM Agreement. 
 
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2 G/SCM/Q2/TPKM/7.