SUBSIDY PROGRAMS: GENERAL
Last Changes Made October 2005
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.
Export Loss Reserves
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 53364 (12/31/85-final)
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final)
Porcelain Cooking Ware (1984) 51 FR 7982 (3/7/86-prelim); 51 FR 36455 (10/10/86-final)
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 70 FR 57856 (10/4/05-final); Final Memo
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 64 FR 48372 (9/3/99-final)
Stainless Cooking Ware (1985) 51 FR 15524 (4/24/86-prelim); 51 FR 42893 (11/26/86-final)
Oil Country Tubular Goods (1984) 50 FR 49978 (12/6/85-prelim); 51 FR 19584 (5/30/86-final)
Under Article 31 of the Statute for Encouragement of Investment (SEI), exporters are able to set aside an export loss reserve of up to one percent of export sales from the previous year. The reserve is treated as a deduction from taxable income and is identified as a liability on company accounts. Should a company's export loss reserve exceed one percent during the tax year, excess funds are carried forward as taxable income in the subsequent year.
Overrebate of Duty Drawback on Imported Materials Physically Incorporated in Export Merchandise
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final)
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 70 FR 57856 (10/4/05-final); Final Memo
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 64 FR 48372 (9/3/99-final)
Stainless Cooking Ware (1985) 51 FR 42894 (4/24/86-prelim); 51 FR 42893 (11/26/86-final)
Duty drawback in Taiwan in given on certain imported materials used to produce certain export products. Duty drawback is refunded on a shipment-by-shipment basis and is calculated by applying a pre-established duty drawback to the net weight of the finished product in each export shipment. The duty drawback is approved by the Taiwanese authorities for each export product based on raw material usage and production yield data submitted by the manufacturers of the export product.
Preferential Export Financing
Bicycle Tires (1977) 46 FR 53202 (10/28/81-final)
Bicycle Tires (10/81-12/81) 47 FR 55406 (12/9/82-prelim); 48 FR 43367 (9/23/83-final)
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
Carbon Line Pipe (1982) 50 FR 41925 (10/16/85-prelim); 50 FR 53363 (12/31/85-final)
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final)
Porcelain Cooking Ware (1984) 51 FR 7983 (3/7/86-prelim); 51 FR 36455 (10/10/86-final)
Stainless Cooking Ware (1985) 51 FR 15524 (4/24/86-prelim); 51 FR 42894 (11/26/86 -Final)
Oil Country Tubular Goods (1984) 50 FR 49978 (12/6/85-prelim); 51 FR 19584 (5/30/86-final)
The Export Financing Program was established by the Export Loan Discount Regulations of the Central bank of China. All registered exporters who receive a letter of credit are eligible for low-cost financing which covers up to 85 percent of the export transaction. Export financing loans are arranged through authorized foreign currency banks, which apply for an interest-rate accommodation from the Central Bank. Exporters have 180 days to settle the loan with foreign exchange or pay an interest-rate penalty on the full amount of the loan.
Preferential Income Tax Ceiling - 25 Percent
Bicycle Tires (1977) 46 FR 53202 (10/28/81-final)
Bicycle Tires (10/81-12/81) 47 FR 55406 (12/9/82-prelim); 48 FR 43367 (9/23/83-final)
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53364 (12/31/85-final)
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final)
Porcelain Cooking Ware (1984) 51 FR 7983 (51 FR 7983 (3/7/86-prelim); 51 FR 36455 (10/10/86-final)
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 70 FR 57856 (10/4/05-final); Final Memo
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 64 FR 48372 (9/3/99-final)
Stainless Cooking Ware (1985) 51 FR 42894 (4/24/86-prelim); 51 FR 42893 (11/26/86-final)
Oil Country Tubular Goods (1984) 50 FR 49979 (12/6/85-prelim); 51 FR 19585 (5/30/86-final)
Article 15 of the Statute for Encouragement of Investment (SEI) permits productive enterprises and big trading companies to pay no more than 25 percent in corporate income taxes on income exceeding NT$500,000 rather than pay the 35 percent required by Taiwan's graduated corporate income tax law. Article 15 benefits are available to all productive enterprises, defined in the Statute for Encouragement of Investment (SEI) as stock companies engaged in manufacturing, handicrafts, mining, agriculture, forestry, fishery, animal husbandry, transportation, warehousing, public utilities, public facility construction and development, public housing construction, technical services, hotels and heavy machinery construction.
Preferential Income Tax Rates
Fireplace Panels (1982) 47 FR 57310 (12/23/82-prelim); 48 FR 11305 (3/17/83-final)
Under Article 15 of the SEI, certain productive enterprises which are organized as "companies limited by shares" in accordance with company law are eligible for reduced income tax rates. A company limited by shares must have a minimum of seven shareholders and be registered as a share issuing corporation.
Rebate of Import Duties and Indirect Taxes on Imported Materials Not Physically Incorporated In Export Merchandise
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final)
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 70 FR 57856 (10/4/05-final); Final Memo
Stainless Cooking Ware (SR) (Expedited Review - no prelim); 64 FR 48372 (9/3/99-final)
Stainless Cooking Ware (1985) 51 FR 42894 (4/24/86-prelim); 51 FR 42894 (11/26/86-final)
Taiwan authorities approve rebates of imported duties and indirect taxes on imported materials not physically incorporated in export merchandise.
Tax Exemption for Export Sales
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53364 (12/31/85-final)
Oil Country Tubular Goods (1984) 50 FR 49979 (12/6/85-prelim); 51 FR 19584 (5/30/86-final)
Articles 29 and 30 of the Statute for Encouragement of Investment (SEI) and Articles 41 through 45 of the Enforcement Rules of the SEI, provide exporters with an exemption from the gross business receipts tax and a reduction of the invoice stamp tax.
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.
Deferred Duty Payments on Raw Materials
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
A statutory provision under section 3.092, Taxes in Taiwan, Republic of China, exists that permits a remission of duties on imported inputs used in re-exporting products. Under Section 3.092, if the raw material is not exported in finished goods within eighteen months from the date of importation, the duty on the raw material must be paid together with a "delinquent fee" of 0.05 percent from the day of importation. The fee is greater than the comparable commercial interest rate.
Development Loans Under Article 84 of the Statute for Encouragement of Investment (SEI) for the Purchase of local Taiwan-made Machinery
Stainless Cooking Ware (1985) 51 FR 42894 (4/24/86-prelim); 51 FR 42894 (11/26/86-final)
Under Article 84 of the Statute for Encouragement of Investment (SEI), the Executive Yuan Development Fund provides funds from the Taiwan budget for the certain development purposes to different agencies, one of which is the Medium Business Bank of Taiwan (MBBT). The MBBT is owned by the Taiwanese authorities and is operated as a profit-making bank.
Income Tax Holidays
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
Article 6 of the Statute for Encouragement of Investment (SEI) states that when a productive enterprise belongs to any of the fourteen business categories defined in Article 3 of the SEI it expands its production equipment through capital investment, the increased income derived from the investment may be exempt from income tax for a period of four consecutive years from the date on which the newly added equipment begins operation or rendering services.
Stamp Tax Reductions
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53364 (12/31/85-final)
Oil Country Tubular Goods (1984) 50 FR 49979 (12/6/85-prelim); 51 FR 19584 (5/30/86-final)
The Taiwanese authorities levy a stamp tax on sales invoices Article 33 of the Statute for Encouragement of Investment (SEI) permits the reduction of the stamp tax from 0.4 percent to 0.1 percent for all invoices issues by a profit-seeking enterprise for transactions exempt from the business tax. The stamp tax reduction is less than the amount of stamp tax due on each sale destined for export.
Tax Credit for Investment in Production Equipment
Bicycle Tires (1982) 49 FR 14778 (4/13/84-prelim); 49 FR 34541 (8/31/84-final)
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53364 (12/31/85-final)
Oil Country Tubular Goods (1984) 50 FR 49980 (12/6/85-prelim); 19585 (5/30/86-final)
Under Article 10 of the Statute for Encouragement of Investment (SEI), productive enterprises may deduct from income tax payable an amount of up to 15 percent of the value of capital equipment purchased during the year. In the event that the amount of the tax credit exceeds the value of income tax payable, the balance may be carried forward for up to four subsequent years.
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.
Accelerated Depreciation and Tax Holiday
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53365 (12/31/85-final) not used
Oil Country Tubular Goods (1984) 50 FR 49979 (12/6/85-prelim); 51 FR 19586 (5/30/86-final) not used
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50062 (12/13/88-final) not used
Porcelain Cooking Ware (1984) 51 FR 7983 (3/7/86-prelim); 51 FR 36455 (10/10/86-final) not used
Stainless Cooking Ware (1985) 51 FR 15524 (4/24/86-prelim); 51 FR 42894 (11/26/86-final) not used
Article 6 of the Statute for Encouragement of Investment (SEI) permits newly-established productive enterprises to select one of the following benefits: 1) a tax holiday of up to five years providing the company depreciates its assets according to Taiwan's Service Life of Fixed Assets; or 2) accelerated depreciation on the service life of machinery, equipment and buildings, construction facilities, and communication and transportation facilities. In addition, Article 6 permits expanding enterprises to select 1) a tax holiday of up to four years on the income derived from increased capacity if it depreciates its assets according to Taiwan's Service Life of Fixed Assets, or 2) a rapid depreciation of the newly purchased equipment beginning in the year in which the machines begin operation.
Duty Exemptions and Deferral on Imported Equipment
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53365 (12/31/85-final) not used
Oil Country Tubular Goods (1984) 50 FR 49980 (12/6/85-prelim); 51 FR 19586 (5/30/86-final) not used
Plugs and Thermostats 53 FR 27744 (7/22/88-prelim); 53 FR 50063 (12/13/88-final) not used
Porcelain Cooking Ware (1984) 51 FR 7983 (3/7/86-prelim); 51 FR 36455 (10/10/86-final) not used
Stainless Cooking Ware (1985) 51 FR 15524 (4/24/86-prelim); 51 FR 42894 (11/26/86-final) not used
Article 21 of the Statute for Encouragement of Investment (SEI) allows productive enterprises to pay import duties in a series of installments beginning one year from the importation on selected machinery and equipment that is not manufactured domestically. In addition, qualified enterprises may be exempt from paying import duties on selected machinery and equipment which is used for the establishment or expansion of an approved project of for research and development.
Preferential Long-Term Loans
Carbon Line Pipe (1984) 50 FR 41925 (10/16/85-prelim); 50 FR 53366 (12/31/85-final) not used
Oil Country Tubular Goods (1984) 50 FR 49980 (12/6/85-prelim); 51 FR 19586 (5/30/86-final) not used
Porcelain Cooking Ware (1984) 51 FR 7983 (3/7/86-prelim); 51 FR 36456 (10/10/86-final) not used
Stainless Cooking Ware (1985) 51 FR 15524 (4/24/86-prelim); 51 FR 42893 (11/26/86-final) not used
Article 84 of the Statute for Encouragement of Investment (SEI) permits the Executive Yuan to establish and administer a special development fund to promote investments of interest of national economic development.
Vocational Training Centers
Fireplace Panels (1982) 47 FR 57311 (12/23/82-prelim); 48 FR 11305 (3/17/83-final) not used
No program description given.
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.