SAUDI ARABIA

SUBSIDY PROGRAMS: GENERAL
Last Reviewed December 31, 2000


Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a decision memo was published, you will find a link to the memo listed below.

In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.


COUNTERVAILABLE SUBSIDY PROGRAMS

The subsidy programs listed below have been investigated by the Department and have been found to be "countervailable" based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in those cases.

No programs listed.


SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE

The subsidy programs listed below have been investigated by the Department and have been found to be "not countervailable" based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed under the subsidy program title for a full explanation of the Department's analysis in each case where the subsidy program has been examined.

Basic Infrastructure in Jubail and Yanbu

Carbon Steel Wire Rod (1984) 50 FR 47788 (11/20/85-prelim);   51 FR 4206 (2/3/86-final)

The government of Saudi Arabia, through the Royal Commission for Jubail and Yanbu, provided infrastructure benefits, including an airport, roads, a railroad, electrical power, potable and see water services, a waste disposal system, telecommunications, industrial parks, a hospital, a port and various other facilities for public use. The same basic infrastructure has been built by the government in other parts of the country as well. We determined that the government does not limit which industries can locate in these areas, and does not apply different criteria for using the infrastructure in one area than in another. Therefore, we determined that there is no countervailable benefit provided by the basic infrastructure developed by the government in these areas.

Duty Exemptions Under the Law for the Protection and Encouragement of National Industry

Carbon Steel Wire Rod (1984) 50 FR 47788 (11/20/85-prelim);   51 FR 4206 (2/3/86-final)

Articles 4 and 5 of the Law for the Protection and Encouragement of National Industry provide for duty exemptions on imports of machines, tools, equipment, spare parts, packing products, raw materials, and semi-processed raw materials. Any manufacturing or industrial firm my apply to the Ministry of Industry and Electricity for approval of duty exemptions and exemptions are freely granted according to the government response. Because these exemptions are available to all industries, we determined that they are not countervailable.

Government Loan through the SIDF

Carbon Steel Wire Rod (1991) 58 FR 58537 (11/2/93-prelim);   59 FR 58814 (11/15/94-final)
Carbon Steel Wire Rod (1990) 56 FR 66847 (12/26/91-prelim);   57 FR 8303 (3/9/92-final)
Carbon Steel Wire Rod (1988/89) 56 FR 28866 (6/25/91-prelim);   56 FR 48158 (9/24/91-final)
Carbon Steel Wire Rod (1987) 55 FR 49932 (12/3/90-prelim);   56 FR 26652 (6/10/91-final)
Carbon Steel Wire Rod (1984) 50 FR 47788 (11/20/85-prelim);   51 FR 4206 (2/3/86-final)

The Saudi Industrial Development Fund (SIDF) is a government agency that provides long-term loans. The SIDF was established in 1974, and extends long-term loans for the establishment and expansion of manufacturing and industrial projects in the private sector and for electricity projects. Because SIDF loans are not limited to a specific enterprise or industry, or a group of enterprises or industries, we determined that they are not countervailable.

Income Tax Holidays for Joint Ventures in Saudi Arabia

Carbon Steel Wire Rod (1990) 56 FR 66847 (12/26/91-prelim);   57 FR 8303 (3/9/92-final)
Carbon Steel Wire Rod (1988/89) 56 FR 28866 (6/25/91-prelim);   56 FR 48158 (9/24/91-final)
Carbon Steel Wire Rod (1987) 55 FR 49932 (12/3/90-prelim);   56 FR 26652 (6/10/91-final)
Carbon Steel Wire Rod (1984) 50 FR 47788 (11/20/85-prelim);   51 FR 4206 (2/3/86-final) not used

Duly licensed foreign partners of joint-venture companies in Saudi Arabia are granted a 10-year income tax holiday under article 7 of the Foreign Capital Investment Law of January 1, 1979. The exemption is granted automatically to any licensed industrial or agricultural project provided that Saudi capital shall not be less than twenty-five percent of the total capital of the project and that such percentage shall be maintained throughout the period of exemption. This tax holiday applies only to income taxes that are owed by the foreign share of the enterprise. The Saudi partners of both foreign joint- ventures or wholly national firms are liable for zakat, an Islamic alms tax, for which there are no exemptions. We determined that the income tax holiday is not limited to a specific enterprise or industry, or group of enterprises or industries, and therefore, is not countervailable.

Special Benefits to the Manufacturing Sector

Carbon Steel Wire Rod (1984) 50 FR 47788 (11/20/85-prelim);   51 FR 4206 (2/3/86-final)

Special incentives are offered to industries in Saudi Arabia under the Law for the Protection and Encouragement of National Industries in the Kingdom of Saudi Arabia. These special incentives include: duty exemptions on import of machinery, tools, equipment, spare parts, raw materials, and packaging; land at specific rental rates for factories and employee housing; and provision of water, electricity, and gas. We determined that these benefits cannot be determined unless they are limited to specific industries. Because these benefits are available to all industrial used, we determined that they are not countervailable.


SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED

The subsidy programs listed below have been investigated by the Department and have been found to have been terminated based on the criteria established in the Tariff and Trade Act of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition, you may click on the cases listed below the subsidy program title for a full explanation of the Department's analysis in each of these cases.

No programs listed.


SUBSIDY PROGRAMS THAT HAVE NOT BEEN USED

When potential subsidy programs are investigated and found not to be used by the companies being investigated, the Department makes no determination as to their countervailability. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced.

Government Procurement Preferences

Carbon Steel Wire Rod (1988/89) 56 FR 28866 (6/25/91-prelim);   56 FR 48158 (9/24/91-final) not used
Carbon Steel Wire Rod (1987) 55 FR 49932 (12/3/90-prelim);   56 FR 26652 (6/10/91-final) not used

No program description available.

Issuance of Preferential Government Bonds

Carbon Steel Wire Rod (1988/89) 56 FR 28866 (6/25/91-prelim);   56 FR 48158 (9/24/91-final) not used
Carbon Steel Wire Rod (1987) 55 FR 49932 (12/3/90-prelim);   56 FR 26652 (6/10/91-final) not used

No program description available.


SUBSIDY PROGRAMS DETERMINED NOT TO EXIST

The following subsidy programs were alleged by the petitioning industries and were investigated by the Department. However, during the investigation we found no evidence that such programs actually existed. If you click on the cases listed under the subsidy program title, you will be linked to each case in which the subsidy program was referenced. It is possible that, while the program named did not exist, a similar program having a different name actually was investigated. If this is the case, you will find that program listed elsewhere in this library.

No programs listed.