. /.WORLD TRADE
ORGANIZATIONG/SCM/N/95/FJI
G/SCM/N/99/FJI
7 July 2003
(03-3620)
Committee on Subsidies
and Countervailing MeasuresOriginal:  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
Extension Under SCM Article 27.4 of the Transition Period for the
Elimination of Export Subsidies Pursuant to the Procedures
in Document G/SCM/39
FIJI
The following communication, dated 24 June 2003, has been received from the Ministry of
Foreign Affairs and External Trade in Fiji.
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In accordance with paragraph 10.6 of the Decision of Implementation-Related Issues and
Concerns (WT/MIN(01)/17) and with reference to document G/SCM/39 adopted by the Fourth
Ministerial Conference, held from 9 to 14 November 2001 in Doha, Qatar, and further to ournotification dated 26 February 2002, the Government of the Republic of Fiji wishes to submit
hereunder updated information about the programmes for which extension has been sought under
Article 27.4 of the Agreement on Subsidies and Countervailing Measures.
This notification is also submitted pursuant to Article XVI:1 of the GATT 1994 and
Article 25 of the Agreement on Subsidies and Countervailing Measures.
1. Short-Term Export Profit Deduction
The "Short-Term Export Profit Deduction" scheme was introduced as a transitional measure
to address the issue of income tax exemptions offered to exporters by progressively bringing exporters
under the standard tax regime over time.
Qualifying companies were exempt from income tax in 2002.  Export income will however be
subject to tax from 2003 as set out in the table below:
Year Taxable income
2001-2002 0%
2003-2004 25%
2005-2006 50%
2007-2008 75%
2009 100%G/SCM/N/95/FJI
G/SCM/N/99/FJI
Page 2
The major change in 2003 is the exclusion of re-exports from Export Income Deduction.
2. Export Processing Factories/Export Processing Zones Schemes
The Government of Fiji had given a clear indication of its intentions with regard to the Tax
Free Factories/Tax Free Zones Scheme in the 2001 Budget.  Essentially, no further approvals will be
given (after 31 December 2000) to companies applying to operate under the Scheme, which grants a
company exporting 70 per cent or more of its products Fiscal Duty, Value-Added Tax and Income
Tax exemptions for a period of 13 years.  However, given that some companies were given approvals
prior to 31 December 2000, the Scheme is most likely to cease on 2014 or earlier.  There has been nochange from the previous notification.
3. Audio-Visual Concessions
The Film-Making and Audio-Visual Incenti ves Amendment Decree 2000 was promulgated
on 18 May 2001 together with the Fiji Audio Visual Commission Decree 2000, to facilitate the
establishment and development of the audio-visual industry in Fiji.
The Decree provides the fiscal incentives, especially for employees of non-resident film
companies, for those investing in audio-visual pr oductions, companies operating from the studio city
zone and its residents.
There has been no added incentive or new subsidies provided in the intervening period.
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