WORLD TRADE  
ORGANIZATION  G/SCM/N/186/MUS 
G/SCM/N/192/MUS 14 September 2009 
 
(09-4306) 
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  
 
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 7 September 2009, 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 in respect of: 
  (a) Freeport Scheme:  Corporate tax exemp tion on income derived from activities carried 
out in the Freeport zone except from Freeport Operators and private Freeport Developers licensed after 1 June 2002 to carry out any specified Freeport processing 
activities;  and 
 
 (b) Freeport Scheme:  Custom and Excise Duty exemption concession on machinery and 
equipment imported into the Freeport Zone. 
  This notification is also submitted pursuant to  the General Council Decision of 27 July 2007. 
 G/SCM/N/186/MUS 
G/SCM/N/192/MUS Page 2 
 
 
   
I. FREEPORT SCHEME 
 
1. Title of the Subsidy Programme
 
 
 Freeport Scheme   Description of the scheme  Customs and excise duty exemption 
 
2. Period covered by the notification
 
  June 2008–June 2009  
3. Policy objective
 
  To promote an encourage freeport trade includi ng transit and entrepot 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 the 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.    G/SCM/N/186/MUS 
 G/SCM/N/192/MUS 
 Page 3 
 
 
  1. Title of the Subsidy Programme  
  The Freeport Scheme  
 Description of the scheme 
 Corporate Tax Exemption   2. Period covered by the notification
 
 
 June 2008-June 2009 
 3. Policy objective
 
  To encourage trading companies to use th e Mauritius Export 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 amount
 
  The Government suffers no effective loss of inco me due to forgone taxes since these activities 
would not have taken place in Mauritius without th e existence of the Freeport and in 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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