RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/BRB/5
15 April 2002
(02-2045)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Question Posed by the UNITED STATES
Regarding the Notification of BARBADOS1
The following communication, dated 11 April 2002, has been received from the Permanent
Mission of the United States.
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The following questions are submitted with respect to the request for extension of the
transition period for export subsidies under Article 27.4 of the Agreement on Subsidies and
Countervailing Measures Agreement (ASCM).  Thes e questions are preliminary in nature and are
submitted without prejudice to our final position.  We reserve the right to ask further questions.
SECTION I, Requests pursuant to G/SCM/39
Fiscal Incentive Programme
Export Allowance
Research and Development Allowance
International Business Incentives
Societies with Restricted Liability
1. Could Barbados please explain whether these programmes provide any other incentives apart
from the full or partial exemption from import duties and internal taxes?
2. Please provide the normal customs duty, consumption tax and income tax rates companies
would normally pay absent these programmes.
3. Tax and customs duty relief under these programs range are provided for long periods of
time.  Could Barbados please explain how it woul d modify these programmes so that subsidies do not
extend beyond any extension period provided?
                                                     
1 G/SCM/N/71/BRB and G/SCM/N/74/BRBG/SCM/Q3/BRB/5
Page 2
Fiscal Incentive Programme
4. Some incentives under the Fiscal Incentive Programme appear to be contingent upon the use
of domestic goods.  Please comment on whether this aspect of the program constitutes a prohibited
subsidy under Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures.
5. Please indicate the industry sectors for the 14 companies that received benefits under the
Fiscal Incentive Programme.
6. Please provide data on the value of total exports of the 14 companies that benefited from this
programme.
Export Allowance
7. Please explain why eligibility is contingent upon exportation to non-CARICOM countries.
8. Please explain why the amount of export al lowance granted under this programme has
increased significantly while the number of companies has declined.
9. Please explain what industry sectors are represented by the companies that benefit from this
program.
10. Please provide data of the value of total exports of the companies that benefit from this
programme.
Research and Development Allowance
11. Please explain why eligibility is contingent upon exportation to non-CARICOM countries.
12. Could Barbados please provide information on the number of companies that benefit from
this programme?
13. Please explain which industry sectors benefit from the deduction from taxable income under
this programme.
14. Please explain when this programme came into operation.
International Business Incentives
15. Please explain when this programme came into operation.
16. Could Barbados please explain how "high quality goods and services " are defined?
17. Please explain why the amount of tax conces sions under this programme increased two-fold
from 1999 to 2000, while the number of companies only increased from eight to nine.
18. Please provide data of the value of total exports of the companies that benefit from this
programme.
Societies with Restricted Liability
19. What industry sectors benefited from the tax and duty concessions under this programme?G/SCM/Q3/BRB/5
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SECTION II, Requests pursuant to Article 27.4
Export Grant and Incentive Scheme
20. Could Barbados please explain what industry sectors have benefited from grants under this
programme?
Export Rediscount Facility
Export Credit Insurance Scheme
Export Finance Guarantee Scheme
21. Please explain when these programmes came into operation.
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