WORLD TRADE
ORGANIZATIONG/SCM/Q2/URY/5
24 September 2002
(02-5121)
Committee on Subsidies and Countervailing Measures Original:  Spanish
SUBSIDIES
Reply to the Question Posed by the EUROPEAN COMMUNITIES1
Regarding the New and Full and Updating Notification of URUGUAY2
The following communication, dated 16 September 2002, has been received from the
Permanent Delegation of Uruguay.
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ad "Automotive industry 5":  What are the precise criteria under which enterprises
"may" benefit from a customs concession?
Reply
The criteria stem from Articles 1 and 2 of Decree No. 316/992 duly notified to the Committee
on Subsidies and Countervailing Measures.
Article 1 provides that enterprises which export vehicles completed or part-completed in the
country, or auto-parts of national origin, may benefit from a customs concession of up to 13 per cent
of the TGA (global tariff), equivalent to US$0.10 (ten United States cents) for every United Statesdollar of exports.
Article 2 provides that the following shall be considered eligible for the benefit specified in
Article 1:
- Vehicles completed or part-completed in the country that are assembled from CKD
components (i.e. completely knocked-down, that is, a completely disassembled
vehicle, unwelded and unpainted, normally supplied by the parent company owning
the make);
- auto-parts, produced in the country from domestic or imported raw materials, which
have undergone a change in their original composition, shape or structure, or
consisting of local assemblies or sub-assemblies that are the result of a significant
industrial process (equivalent to a CKD process for vehicles).
There is no obligation to export in order to be able to import, and any person or enterprise
may make imports by paying the tariff in force.
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1 G/SCM/Q2/URY/4
2 G/SCM/N/71/URY