RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CPV/27 
26 June 2007 
 
 (07-2715) 
Working Party on the 
Accession of Cape Verde Original:   English 
 
 
 
ACCESSION OF CAPE VERDE 
 
Notification Pursuant to Article XVI:1 of the GATT 1994  
and Article 25 of the Agreement on Subsidies and Countervailing Measures1 
 
(Period:  1975 – 2007) 
 
 The following submission, dated 22 June 2007, is  being circulated at the request of the 
Delegation of the Republic of Cape Verde. 
 
 
_______________ 
   
The following notification provides details of progr ammes for the period 1975 (date of independence) 
to the present (2007) and servers as a subsidies notif ication for programmes. This notification may be 
supplemented, in due time, to incorporate further elements or clarifications. 
 In this notification, Cape Verde has incl uded certain measures which may not constitute 
“subsidies” under Article 1 of the Agreement on Subsidies and Countervailing measures (“the 
Agreement” hereinafter) and certain subsidies wh ich may not be “specific” under Article 2 of the 
Agreement in order to achieve the maximum transp arency with respect to the relevant programmes 
and measures effective within its te rritory during the notified period. 
   
_______________ 
 
 
                                                     
 
1 This information was prepared in th e format contained in G/SCM/6/Rev.1. WT/ACC/CPV/27 
Page 2 
 
 
  I. FOREIGN INVESTMENT LAW 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
 
 Foreign Investment Law of Cape Verde.  
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year.  In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The Foreign Investment Law of Cape Verde was published in the Official Bulletin of 
13December 1993, and has continued in effect since that time. This is the first subsidies 
notification by Cape Verde and, thus, cove rs the period 1993 through the present. 
 3. Policy objective and/or  purpose of the subsidy 
 
 To attract foreign capital to Cape Verde in  the form of goods and services without the 
expenditure of Cape Verdean funds. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 Law No. 89/93 of 13 December 1993.  
 Cape Verde Investment Agency (formerly PR OMEX) advises and assi sts potential foreign 
investors with procedures, doc uments, etc. When proper documentation is completed, the 
application is submitted to the Mi nister of Finance for approval. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
  There is no income tax on profits for the first five years of the investment.  If profits are 
reinvested, an additional five more years are granted but profits are taxed at the rate of ten percent. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
 Incentives pursuant to the Foreign Investme nt Law are available to any investor whose 
application is approved by the Minister of Finance. 
 
 At the end of the tax year, when the tax forms and documents are submitted to the 
Director General of Contribu tions and Taxation, a copy of the approval document from the 
Minister of Fina nce is attached. 
 
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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 Data not available. 
  WT/ACC/CPV/27 
 Page 3 
 
 
  8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
 No response necessary.  
9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 The duration of the incentive is initially five years, with the possibility of an additional five 
years. 
 
10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To 
the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
 
 (a) for the three most recent years for which statistics are available 
 
  Data not available. 
 
 (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding 
the last major change in the subsidy 
 
  Data not available. WT/ACC/CPV/27 
Page 4 
 
 
  II. INDUSTRIAL STATUTE 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
 
 Industrial Development Law.  
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year. In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The Industrial Statute of Cape Verde was published in the Official Bulletin of 
30 December 1989, and has continued in effect sinc e that time.  This is the first subsidies 
notification by Cape Verde and, thus, covers the period 1989 to present. 
 3. Policy objective and/or  purpose of the subsidy 
 
 To attract investment to industria l areas, such as factories, indust rial facilities, etc. in order to 
increase Cape Verde’s productive base. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 Decree Law No. 108/89 of 30 December 1989.  
 Applications for industrial activ ities are directed to the Director  General of Industry and Energy 
in the Ministry of Economy, Growth and Comp etitiveness.  His recommendations go to the 
Minister of Economy, and if conc urred with, forwarded to the Minister of Finance for approval. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
  There is no income tax on raw material and su bsidiary materials for three to five years 
depending upon the island where loca ted.  After that period, ther e is a reduction of taxes based 
on profits reinvested. 
  Also there is a duty exemption on raw materials, equipment, etc. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
 Incentives pursuant to the Indus trial Statute are available to any enterprise whose application is 
approved by the Minister of Finance. 
  At the end of the tax year, when the tax forms and documents are submitted to the 
Director General of Contribu tions and Taxation, a copy of the approval document from the 
Minister of Fina nce is attached. 
 
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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 Data not available.  WT/ACC/CPV/27 
 Page 5 
 
 
  8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
 No response required.  
9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 The waiver of income taxes applies only for th e first three or five year period, depending upon 
the island where the enterprise is located. 
  There is no time limi t on the duty exemption. 
 
10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
  (a) for the three most recent years for which statistics are available  
  No data available. 
  (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding the last major change in the subsidy 
 
  No data available. 
 WT/ACC/CPV/27 
Page 6 
 
 
  III. TOURISM UTILITY STATUTE 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
  Tourism Utility Statute. 
 
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year. In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The Tourism Utility Statute of Cape Verde was published in the Official Bulletin of 
15 December 1993; a new law was passed in 2005, and has continued in effect since that time.  
This is the first subsidies notification by Ca pe Verde and, thus, covers the period 1993 to 
present. 
 
3. Policy objective and/or  purpose of the subsidy 
 
 To attract investment into the tourist areas. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 Law No. 42/IV/92 of 6 April 1992.  Law No. 55/IV/2005 of 10 January 2005. 
 
 Cape Verde Investment Agency (formerly PR OMEX) advises and assi sts potential tourism 
investors with procedures, documents, etc. 
  Applications for tourism activities are directed  to the Director General of Tourism in the 
Ministry of Economy, Growth and Competitivenes s.  Her recommendations go to the Minister 
of Economy, and if concurred with, forwarded to the Minister of Finance for approval. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 Incentives are granted in the fo rm of tax exemptions and reductio ns (both in income tax and real 
estate taxes). 
  Also there is a duty exemption on raw materials, equipment, etc.  
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
 Incentives are granted to any investor, domestic or foreign, whose application is approved by 
the Minister of Finance. 
 
 Incentives are granted: 
  (a) To build;  (b) To furnish and equip, and  (c) To develop and expand. 
  WT/ACC/CPV/27 
 Page 7 
 
 
  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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 No data available.  
8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 
under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
 No response required.  9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 Need information on duration of incentive.  10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
 
 (a) for the three most recent years for which statistics are available  
 
  No data available.  
 (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding 
the last major change in the subsidy 
 
  No data available.  WT/ACC/CPV/27 
Page 8 
 
 
  IV. FREE ZONE (FRANC) ENTERPRISE STATUTE 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
 
 Free Zone (Franc) Enterprise Statute.  
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year. In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The Free Zone (or Franc) Zone Statute of Cape Verde was publishe d in the Official Bulletin of 
30 December 1993 and has continued in  effect since that time.  This is the first subsidies 
notification by Cape Verde and, th us, covers the period since 1993. 
  3. Policy objective and/or  purpose of the subsidy 
 
 For all enterprises, domestic or foreign to e ngage in activities exclus ively related to goods and 
services for exportation, or the selling of goods a nd services to another Free (or Franc) Zone 
enterprise. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 Law No. 99/IV/93 of 30 December 1993. 
 
 Cape Verde Investment Agency (formerly PROM EX) advises and assists potential Free (Franc) 
Zone enterprises with pr ocedures, documents, etc. 
  Applications for free zone enterprises or activit ies are directed to Cape Verde Investment and to 
the Director General of Commerce or the Director  General of Industry and Energy (depending 
upon the type of activity) in the Ministry of Economy, Growth and Competitiveness, who then 
forward his recommendations to the Minister of Economy for approval. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
  - Complete exemption from income tax for th e first ten years.  This period can be 
renewed for another ten years and income tax is paid 15% rate; 
 - Free (or Franc) enterprises are fully exempt from stamp tax;  - Fully exempt from indirect taxes;  - Fully exempt from customs duties during the period referred to above;  - Can sell 15% into the domestic market, with authorization fr om the Minister of 
Finance. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
 All enterprises that produce goods for export are approved by the Minister of Economy and the 
Minister of Finance may receive Free (Franc) Zone benefits. 
  See No. 3 above. 
 
  WT/ACC/CPV/27 
 Page 9 
 
 
  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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 No data available  
8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 
under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 Duration of the incentives is for a ten year pe riod, with the possibility of renewal for another 
ten years. 
 
10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To 
the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
 
 (a) for the three most recent years for which statistics are available  
  No data available.  
 (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding 
the last major change in the subsidy 
 
  No data available.  WT/ACC/CPV/27 
Page 10 
 
 
  V. INCENTIVES FOR EXPORTATION 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
 
 Incentives for Exportation.  
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year. In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The Incentives for Exportation Law of Cape Ve rde was published in the Official Bu lletin of 
15 December 1993 and has continued in  effect since that time.  This is the first subsidies 
notification by Cape Verde and, thus, covers the period 1993 to present. 
 3. Policy objective and/or  purpose of the subsidy 
 
 To stimulate expor tations and obtain foreign currency. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 Law No. 92/IV/93 of 15 December 1993.   Applications for persons and/or enterprises engaging in export or re-export of goods and 
services coordinate with the Director General of Commerce in the Ministry of Economy, 
Growth and Competitiveness.  Approval to obta in incentives under this program must be 
received from the Minister of Econo my and the Minister of Finance. 
  In order to receive incentives under this progra m, an enterprise must be located in the Free 
(Franc) Zone. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 - Reduction in income tax for first five years;  - May be extended for an additional five years; and 
 - Customs duty exemptions. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
  All persons and/or enterprises that engage in export or re-export activit ies and located in the 
Free (Franc) Zone, and obtain the necessary approvals from the Ministries of Economy and 
Finance, are entitled to receive these incentives. 
  The incentives are listed in No. 5 above. 
 
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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 No data available.  WT/ACC/CPV/27 
 Page 11 
 
 
  8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
 No response required.  
9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 The duration of incentives under this program is five years, plus an additional five years. 
 
10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To 
the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
  (a) for the three most recent years for which statistics are available  
 
  No data available.  
 (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding 
the last major change in the subsidy 
 
  No data available.  WT/ACC/CPV/27 
Page 12 
 
 
  VI. DUTY DRAWBACK 
 
1. Title of the subsidy programme , if relevant, or brief description or identification of the 
subsidy 
 
 Customs Duty Drawback.  
2. Period covered by the notification.  The period to be covered by the notification should be 
the most recently completed calendar or fiscal year. In the latter case, the start and end 
dates of the fiscal year  should be specified 
 
 The duty drawback provisions were contai ned in the 1942 Customs Law of Portugal (when 
Cape Verde was a colony).  Cape Verde does not have a duty drawback law or regulation. 
 
3. Policy objective and/or  purpose of the subsidy 
 
 To encourage the importation of materials and components for use in the manufacture or 
assembly of goods for exportation. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 
 As stated in No. 2 above, the Customs Law and regulations of Cape Verde do not contain 
provisions applicable to duty drawback. 
 
 The Ministry of Finance and the Customs Depart ment would be the primary authorities, if and 
when such drawback provisions are implemented. 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 Upon substantiation of (a) Customs duty paid, (b ) permissible manufactur ing and/or assembly 
operations performed, and (c) expo rtation of the goods, then Customs refunds the duty paid on 
the imported goods or components. 
  It should be noted that Customs wo uld not over rebate customs duties paid. 
  6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, 
how determined) 
 
 Duty drawback is paid to the authorized claimant, normally the exporter.  
 As stated in No. 5 above, the amount of the incentive (duty drawback) is  limited to the amount 
of customs duties paid on the imported goods or components. 
 
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 un it subsidy information (for the year covered 
by the notification, for the previous year, or both) is not possible, a full explanation 
 
 No data available.  
 
  WT/ACC/CPV/27 
 Page 13 
 
 
  8. For the information cited in items 3 to 7 ab ove, the notification does not necessarily have 
to have an independent heading corresp onding to each item, and may provide 
information on multiple items in one heading (e.g. provide information on items 3 and 4 under one heading).  In this case, the notifi cation must clearly specify what items are 
covered by which heading 
 
 No response required.  
9. Duration of the subsidy and/or any other ti me limits attached to it, including date of 
inception/commencement 
 
 As provided in No. 2 above, Cape Verde law contains no provisions for duty drawback.  The 
Customs Law of Portugal had provisions for duty drawback.  These drawback provisions were 
last used when Cape Verde was a Portuguese colony, and was limited to canned fish only. 
 10. Statistical data permitting an  assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgement of the notifying Member.  To the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics  of production, consumption, imports and exports of the 
subsidized product(s) or sector(s): 
 
 (a) for the three most recent years for which statistics are available 
 
  No data available.   (b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding the last major change in the subsidy 
 
  No data available.  
Comment: Duty drawback has not been used in Cape Verde sin ce 1975 (date of independence).  
The reason for the non-use is that producer s and exporters find that alternative 
incentives are more attractive. 
 
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