WORLD TRADE  
ORGANIZATION  G/SCM/N/177/URY 
7 July 2008 
 (08-3234) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
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  
 
URUGUAY 
  
 The following communication, dated 30 June 2008,  is being circulated at the request of the 
delegation of Uruguay.  
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 This extension was granted to Uruguay until 31 December 2008, subject to an annual review 
by the Committee of the objectives and conditions set forth in the above-mentioned rules, which 
require compliance with the transparency and stands till provisions contained in  paragraphs 3 and 4 of 
the Procedures.  
 The reasons that led Uruguay to request the ex tension of the transition period for the granting 
of export subsides to the automotive sector, in ac cordance with Article 27.4 as well as with the 
Procedures in document G/SCM/39, still apply, fo r which reason their continuation within the 
framework of the Decision of 22 November 2002 is hereby requested.   The measures the extension of which is being re quested are those contained in the regulations 
already amended by Uruguay, in accordance with the transp arency and standstill provisions set out in 
paragraphs 3 and 4 of the Procedures. G/SCM/N/177/URY 
Page 2  
 
  Automotive industry 
 
1. Title of the subsidy programme, if relevant, or brief descrip tion or identification of the 
subsidy  
 Regulations for enterprises exporting vehicles assembled in the country. 
 
2. Period covered by the notification  
 1 July 2007 to 30 June 2008 
 3. Policy objective and/or purpose of the subsidy
 
 Restructuring of the automotive sector and sp ecialization in market segments for export. 
 4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted ) 
 Adoption of measures to facilitate business d ecisions related to production and investment 
programmes and in preparation for the common MERCOSUR regime. 
  Decree No. 316/92 of 7 July 1992, published in the Official Journal on 25 September 1992.   Decree No. 583/94 of 30 December 1994.  
 Decree No. 340/96 of 23 August 1996, pub lished in the Official Journal on 
6 September 1996.   Decree No. 60/99 of 3 March 1999, published in  the Official Journal on 12 March 1999. 
 
 Decree No. 273/99 of 10 September 1999, published in the Official Journal on 
20 September 1999.
1 
  Decree No. 353/2007 of 24 September 2007, published in the Official Journal on 
1 October 2007.
2 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
 Enterprises which export completed or part-com pleted vehicles assembled in the country or 
auto-parts of national origin may benefit from a cu stoms concession, applicable to the importation of 
motor vehicles assembled in the place of origin a nd destined for the domes tic market, in accordance 
with the conditions laid down in the above-menti oned regulations, or allocate it for the payment of 
taxes due to the Directorate-General of Taxation, in accordance with Article 3 of Decree No. 60/99. 
 
                                                      
1 Decrees Nos. 60/99 and 273/99 amended Decree No. 316/92 and prescribed a tax benefit which is not 
limited strictly to the importation of vehicles, but can also be used for meeting tax obligations. 
2 Subsidy lowered from US$0.10 to US$0.06 for each US dollar of export s.  Applicable to products of 
HS heading 4107.  G/SCM/N/177/URY 
 Page 3 
 
 
  6. To whom and how the subsidy is provided (wheth er to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
 For every United States dollar of exports (based on the f.o.b. values declared in the relevant 
customs declarations), a tax credit of US$0.1 is ge nerated, which may be allocated for exemption of 
up to 13 per cent of the TGA (global tariff), appli cable to the surcharge el ement, for new vehicles 
assembled in the place of origin (based on the c.i.f.  values declared to the Banco de la República 
Oriental de Uruguay (BROU)), or for payments  to the Directorate-General of Taxation. 
 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-unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  For every United States dollar of exports, a tax credit of US$0.1 is generated, except in the 
case of products of HS heading 4107 whic h generate a credit of only US$0.06. 
 8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement  
  Decree No. 60/99 entered into force in 1999  and remains in force by virtue of 
Decree No. 273/99. 
 9. Statistical data permitting an assessment of th e trade effects of the subsidy.  The specific 
nature and scope of such data is left to the judgement of the notifying Member.  To the extent 
possible, relevant and/or determinable, however, it is desirable that such information include 
statistics on the production, consum ption, imports and exports of the subsidized products(s) or 
sector(s ) 
  Exports covered by the subsidy for the pe riod 1 January to 31 December 2005 totalled 
US$176,782,676.  
 Exports covered by the subsidy for the pe riod 1 January to 31 December 2006 totalled 
US$281,515,165.   Exports covered by the subsidy for the pe riod 1 January to 31 December 2007 totalled 
US$337,413,704. 
 
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