Common use of Domestic subsidy Clause in Contracts

Domestic subsidy. In determining whether a subsidy (other than a subsidy described in subparagraph (B) or (C)) is a specific subsidy, in law or in fact, TITLE 19—CUSTOMS DUTIES to an enterprise or industry within the juris- diction of the authority providing the sub- sidy, the following guidelines shall apply: (i) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, expressly limits access to the subsidy to an enter- prise or industry, the subsidy is specific as a matter of law. (ii) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, the subsidy is not specific as a matter of law, if— (I) eligibility is automatic, (II) the criteria or conditions for eligi- bility are strictly followed, and (III) the criteria or conditions are clearly set forth in the relevant statute, regulation, or other official document so as to be capable of verification. For purposes of this clause, the term ‘‘ob- jective criteria or conditions’’ means cri- teria or conditions that are neutral and that do not favor one enterprise or indus- try over another. (iii) Where there are reasons to believe that a subsidy may be specific as a matter of fact, the subsidy is specific if one or more of the following factors exist: (I) The actual recipients of the sub- sidy, whether considered on an enter- prise or industry basis, are limited in number. (II) An enterprise or industry is a pre- dominant user of the subsidy. (III) An enterprise or industry receives a disproportionately large amount of the subsidy. (IV) The manner in which the author- ity providing the subsidy has exercised discretion in the decision to grant the subsidy indicates that an enterprise or industry is favored over others. In evaluating the factors set forth in sub- clauses (I), (II), (III), and (IV), the admin- istering authority shall take into account the extent of diversification of economic activities within the jurisdiction of the au- thority providing the subsidy, and the length of time during which the subsidy program has been in operation. (iv) Where a subsidy is limited to an en- terprise or industry located within a des- ignated geographical region within the ju- risdiction of the authority providing the subsidy, the subsidy is specific. For purposes of this paragraph and paragraph (5B), any reference to an enterprise or indus- try is a reference to a foreign enterprise or foreign industry and includes a group of such enterprises or industries.

Domestic subsidy. In determining whether a subsidy (other than a subsidy described in subparagraph (B) or (C)) is a specific subsidy, in law or in fact, TITLE 19—CUSTOMS DUTIES Page 370 to an enterprise or industry within the juris- diction of the authority providing the sub- sidy, the following guidelines shall apply: (i) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, expressly limits access to the subsidy to an enter- prise or industry, the subsidy is specific as a matter of law. (ii) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, the subsidy is not specific as a matter of law, if— (I) eligibility is automatic, (II) the criteria or conditions for eligi- bility are strictly followed, and (III) the criteria or conditions are clearly set forth in the relevant statute, regulation, or other official document so as to be capable of verification. For purposes of this clause, the term ‘‘ob- jective criteria or conditions’’ means cri- teria or conditions that are neutral and that do not favor one enterprise or indus- try over another. (iii) Where there are reasons to believe that a subsidy may be specific as a matter of fact, the subsidy is specific if one or more of the following factors exist: (I) The actual recipients of the sub- sidy, whether considered on an enter- prise or industry basis, are limited in number. (II) An enterprise or industry is a pre- dominant user of the subsidy. (III) An enterprise or industry receives a disproportionately large amount of the subsidy. (IV) The manner in which the author- ity providing the subsidy has exercised discretion in the decision to grant the subsidy indicates that an enterprise or industry is favored over others. In evaluating the factors set forth in sub- clauses (I), (II), (III), and (IV), the admin- istering authority shall take into account the extent of diversification of economic activities within the jurisdiction of the au- thority providing the subsidy, and the length of time during which the subsidy program has been in operation. (iv) Where a subsidy is limited to an en- terprise or industry located within a des- ignated geographical region within the ju- risdiction of the authority providing the subsidy, the subsidy is specific. For purposes of this paragraph and paragraph (5B), any reference to an enterprise or indus- try is a reference to a foreign enterprise or foreign industry and includes a group of such enterprises or industries.

Domestic subsidy. In determining whether a subsidy (other than a subsidy described in subparagraph (B) or (C)) is a specific subsidy, in law or in fact, TITLE 19—CUSTOMS DUTIES to an enterprise or industry within the juris- diction of the authority providing the sub- sidy, the following guidelines shall apply: (i) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, expressly limits access to the subsidy to an enter- prise or industry, the subsidy is specific as a matter of law. (ii) Where the authority providing the subsidy, or the legislation pursuant to which the authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, the subsidy is not specific as a matter of law, if— (I) eligibility is automatic, (II) the criteria or conditions for eligi- bility are strictly followed, and (III) the criteria or conditions are clearly set forth in the relevant statute, regulation, or other official document so as to be capable of verification. For purposes of this clause, the term ‘‘ob- jective criteria or conditions’’ means cri- teria or conditions that are neutral and that do not favor one enterprise or indus- try over another. (iii) Where there are reasons to believe that a subsidy may be specific as a matter of fact, the subsidy is specific if one or more of the following factors exist: (I) The actual recipients of the sub- sidy, whether considered on an enter- prise or industry basis, are limited in number. (II) An enterprise or industry is a pre- dominant user of the subsidy. (III) An enterprise or industry receives a disproportionately large amount of the subsidy. (IV) The manner in which the author- ity providing the subsidy has exercised discretion in the decision to grant the subsidy indicates that an enterprise or industry is favored over others. In evaluating the factors set forth in sub- clauses (I), (II), (III), and (IV), the admin- istering authority shall take into account the extent of diversification of economic activities within the jurisdiction of the au- thority providing the subsidy, and the length of time during which the subsidy program has been in operation. (iv) Where a subsidy is limited to an en- terprise or industry located within a des- ignated geographical region within the ju- risdiction of the authority providing the subsidy, the subsidy is specific. For purposes of this paragraph and paragraph (5B), any reference to an enterprise or indus- try is a reference to a foreign enterprise or foreign industry and includes a group of such enterprises or industries.