WORLD TRADE  
ORGANIZATION  G/SCM/N/186/GRD 
G/SCM/N/192/GRD 6 July 2009 
 
(09-3287) 
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  
 
GRENADA 
   The following notification, dated 30 June 2009, is being circulated at the request of the Delegation of Grenada.   
 
_______________ 
 
  We hereby submit to the Committee on Subsidies and Countervailing Measures, Grenada's 
updated Notification on Current Incentive Programmes under Articles 25  and 27 of the SCM 
Agreement and Article XVI:1 of GATT . 
  Please be informed, that not all elements of  the notified programmes, including subsidies 
provided thereunder, necessarily involve export subsidies.  
 Grenada wishes to reiterate that, in keeping w ith Article 25.7 of the Agreement on Subsidies, 
this notification does not prejudice the legal st atus of the notified programmes under the GATT 1994 
or the said Agreement, their effects under the Ag reement or the nature of the programmes or 
measures; furthermore, notification of a programme  or measure does not prejudice its actionable or 
non-actionable nature.  
 G/SCM/N/186/GRD 
G/SCM/N/192/GRD Page 2 
 
 
  PROGRAMME 
 
Page
 
 I. STATUTORY RULES AND ORDERS NO. 37 OF 1999................................................... 2 
 
_______________ 
 
 I. STATUTORY RULES AND ORDERS NO . 37 OF 1999 (LIST OF CONDITIONAL 
DUTY EXEMPTION - CARICOM COMMON EXTERNAL TARIFF) 
1. Title of the subsidy programme, if relevant, or brief descrip tion or identification of the 
subsidy  
 The list of Conditional Duty Exemptions sets out the goods which, when imported, may be 
admitted free of import duty or at a rate that is lowe r than set out in the Schedule of rates.      
 2. Period covered by the notification
 
 As of 31 December 2009 – programme status. 
 
3. Policy objective and/or purpose of the subsidy  
 To allow manufacturing enterprises that does not qualify for benefits under the Investment 
Promotion Bill to possibly benefit from import duty concessions under this Act. 
 4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted ) 
Background  
 
 This legislation was passed in order to in troduce the new Common External Tariff based on 
the Harmonized Commodity Description and Coding sy stem, in accordance with legal obligations 
falling upon Grenada by virtue of our adherence to  membership in the Caribbean Common Market 
(CARICOM). 
 
 Since Grenada's initial notification in Dece mber 2001, no modification was made to the 
CARICOM Common External Tariff, Statutory Rules and Orders No. 37/1999 according to 
paragraph 4 of document G/SCM/39.  
Authority
 
  CARICOM Common External Tariff, Statutory Rules and Order No.37 of 1999.   The relevant Ministries together with the Comptroller of Customs are responsible for 
administering this legislation. 
  G/SCM/N/186/GRD 
 G/SCM/N/192/GRD 
 Page 3 
 
 
  5. Form of Subsidy  
 The List of Conditional Duty Exemptions allows  enterprises, organizations or persons to be 
exempted from duty or be charged a lower rate , than that laid down by the Customs Tariff 
Regulations. 
 
 The classification structure of the Schedule of  Rates is based on the Harmonized Commodity 
Description and Coding system.  The rates of duty in  the schedule are applicable to imports from third 
countries into the Member States of the Cari bbean Common Market as well as goods traded among 
the Member states. 
 
 On some inputs the rate applied by Grenad a, as a Least Developed Country within the 
Caribbean Common Market, may be from 0 per cent to 5 per cent.  6. To whom and how the subsidy is provided
 
 In order to benefit, an enterprise must have  a local value added of 40 per cent and over, or 
create employment for ten or more pe rsons, or generate export earnings. 
  Dependant on the nature of the enterprise and the products to be imported an application must 
be made to that competent authority.  If the enterprise is involved in or intends to establish an agricultural industry, the application must be submitt ed to the Minister responsible for agriculture, or 
any person designated with authority to approve ex emptions under the Order.  If the Minister or 
competent authority is satisfied that the enterprise ha s met any of the above stated criteria and that it is 
in the public interest so to do, th ey may approve the exemption requested. 
  The Comptroller of Customs once satisfied that the product imported is solely for the use 
approved of, grants the exemption. 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy  
 Due to the nature and coverage of the progra mme, there are no statistical data available on the 
amount of subsidy per unit or annua l amounts budgeted for this programme. 
 
8. Duration of subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 This exemption from customs duty is only app licable for the product(s) applied for and does 
not extend for any duration or involve any time limits; it's a one off situation. 
 
9. Statistical data permitting an assessment of the trade effects on the subsidy  
 There is no such statistical information available. 
  
_______________ 
 
 G/SCM/N/186/GRD 
G/SCM/N/192/GRD Page 4 
 
 
  STEPS TAKEN 
 
In August 2008, Government of Grenada undertook to review its investment policy in 
particular, a review of legislation pertaining to fiscal incentive programmes including those notified to 
the WTO and the plan of action for implementing the decision in the extension of Article 27.4 
programmes.   In May 2009, the Investment Promotion Bill was completed. This Bill has gone through the 
first reading of the House of Parliament and it is e xpected that the Second reading will be in July 2009 
and the Third and final reading by the following sitting of Parliament.  
  The Investment Promotion Bill is a bill "to promote and facilitate investment in Grenada by assisting investors in obtaining all the pre-requis ites and incentives and according them the security 
and protection necessary for them to invest in Grenad a and to give paramount status to the Statement 
of Investment Policies of the Government  and provide for other related matters". 
  The proposed legislation is intended to furt her the socio-economic development of Grenada 
and to attract and facilitate investment by- 
 
• providing an efficient, effectiv e and a transparent system for certifying investment proposals 
by investors;  
• enhancing and modernizing the le gal framework for investment; 
• promoting the development of internationa l best practices regarding investment; and 
• providing a framework for investment incentives and direct investment. 
• providing equal treatment of local and foreign investors; 
• Increasing transparency; and 
• Establishing a monitoring mechanism for assessi ng the application and effectiveness of 
investment promotion mechanism.  
 
The Bill repeals the following Acts: 
 
(a) The Hotels Aid Act, Cap. 138; 
 
(b) The Fiscal Incentives Act, Cap 107; and 
 
(c) The Qualified Enterprises Act, Cap. 155. 
 
 
__________