Uruguay - General Subsidy Programs

URUGUAY

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.

Bonification Payments

Leather Wearing Apparel (1988) 55 FR 29875 (7/23/90-prelim); 55 FR 39314 (9/26/90-final)
Leather Wearing Apparel (1986/87) 54 FR 33751 (8/16/89-prelim); 54 FR 47251 (11/13/89-final)
Leather Wearing Apparel (1984/85) 53 FR 43913 (10/31/88-prelim); 54 FR 168 (1/4/89-final)
Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)

Bonification payments are export refunds of 22% of the value of the processed wool portion of the Leather Wearing Apparel. Because these payments are not linked to the payment of indirect taxes, this program is countervailable.

Export Tax Rebate

Leather Wearing Apparel 45 FR 82979 (12/17/80-prelim); 46 FR 19288 (3/30/81-final)

In 1980, leather wearing apparel producers were subject to an export tax. On April 16, 1980, the Government of Uruguay ordered the suspension of this tax and a rebate of the amount of the tax paid from January 1, 1980 to April 16, 1980. We consider the rebate of this tax to be a subsidy.

Income Tax Forgiveness

Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)

The Government of Uruguay forgave a percentage of the tax liability on income derived from the domestic value-added content of Leather Wearing Apparel exporting during calendar years 1979, 1980, and 1981. Income tax forgiveness constitutes a countervailable benefit.

Social Security Tax Deferral

Leather Wearing Apparel 45 FR 82979 (12/17/80-prelim); 46 FR 19288 (3/30/81-final)

Uruguay has a social security tax for most workers. This tax is due from employers at specified intervals. Since mid-1979, the Government of Uruguay has not collected this tax specifically from manufacturers of leather wearing apparel. Because this program has been industry specific, we determined that it is countervailable.

Tax Exemption for Export Income

Leather Wearing Apparel 45 FR 82979 (12/17/80-prelim); 46 FR 19288 (3/30/81-final)

This program exempts from taxation a fraction of the value-added portion of the company's export income, after expenses and before taxes. Because this program is an exemption from income tax dependent on exports, we determined that it is a subsidy within the meaning of the Act.

Transitional Export Payments

Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)

The Government of Uruguay instituted a 5% transitional payment on all shipments of Leather Wearing Apparel exported between November 29, 1982 and December 31, 1982 (Decree 442/82). The purpose of these payments, which took the form of tax certificates, was to prevent disruption of Uruguayan trade prior to implementation of the Tax Refund Certificate program.

Uncollected Social Security Taxes

On May 11, 1982, the Government of Uruguay notified the Department that it had ceased in its efforts to collect social security taxes that the Leather Wearing Apparel industry had not paid in 1980. This constitutes a grant, and thus is countervailable.

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.

Tax Refund Certificates

Leather Wearing Apparel (1988) 55 FR 29875 (7/23/90-prelim); 55 FR 39314 (9/26/90-final) not used
Leather Wearing Apparel (1986/87) 54 FR 33751 (8/16/89-prelim); 54 FR 47251 (11/13/89-final) not used
Leather Wearing Apparel (1984/85) 53 FR 43913 (10/31/88-prelim); 54 FR 168 (1/4/89-final) not used
Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)

On July 25, 1983, the Government of Uruguay instituted a system of tax refunds on exports of Leather Wearing Apparel (Resolution 289/983) for all shipments of the merchandise exported on or after January 1, 1983. Because the refund was the same as or less than the actual tax incidence, the program found to be 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.

Reintegros

Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)
Leather Wearing Apparel 45 FR 82979 (12/17/80-prelim); 46 FR 19288 (3/30/81-final)

(Terminated November 26, 1982) Reintegros are tax certificates issued to exporters in amounts which represent a percentage of the f.o.b. value of the exported merchandise. The reintegro was ostensibly designed to rebate the indirect and direct taxes paid by exporters of Leather Wearing Apparel. Because the tax certificates are freely transferable and may be applied against direct as well as indirect taxes, they are subsidies within the meaning of the countervailing duty law.

Supplementary Reintegros

Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final)

The Uruguayan government instituted a supplementary 10% reintegro on June 2, 1982 (Uruguayan Decree 189/982) for exports of Leather Wearing Apparel during the period June 2, 1982 through November 26, 1982, the date the government terminated the program.

Tanner's Subsidy

Leather Wearing Apparel (1982/83) 51 FR 23110 (6/25/86-prelim); 51 FR 44325 (12/9/86-final) not used
Leather Wearing Apparel 45 FR 82979 (12/17/80-prelim); 46 FR 19288 (3/30/81-final)

(Terminated April 16, 1980) The Government of Uruguay grants an 8 percent ad valorem subsidy on exports to domestic manufacturers of leather wearing apparel to allow for the added cost of using domestic tanned leather in their production. Because this program is limited to a specific industry, and is contingent upon exports, we determined that it was countervailable.

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.

Preferential Export Financing

The Central Bank of Uruguay suspended, but did not terminate, the preferential pre-export financing program on March 28, 1979. This program was determined not to be used.

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.