Rules of Procedure Part V of the SCM Convention contains detailed rules on the opening and implementation of counter-investigations, the establishment of interim and final measures, the use of companies and the duration of measures. One of the main objectives of these rules is to ensure that investigations are conducted in a transparent manner, that all interested parties have the full opportunity to defend their interests and that the investigating authorities adequately explain the basis of their conclusions. Here are some of the key innovations in the WTO SCM agreement: However, when a member is a party to an official international export credit obligation in which participants participate, since January 1, 1979, at least twelve original members of this agreement (or an inheritance obligation accepted by these original members), or where a member in practice applies the interest rate provisions of the company concerned, an export credit practice in accordance with these provisions is not considered an export subsidy prohibited by this agreement. For the purposes of this paragraph, producers are considered to be related to exporters or importers only if: (a) one of them directly or indirectly controls the other; or (b) whether they are controlled directly or indirectly by a third party; or (c) jointly control a third party, directly or indirectly, provided there is reason to believe or suspect that the effects of the relationship are appropriate for the producer concerned to behave differently from unrelated producers. For the purposes of this paragraph, another control applies when the former is legally or operationally able to exercise deference or instruction in respect of the latter. For the purposes of this agreement: the term “direct taxes” refers to taxes on wages, profits, interest, rents, royalties and all other types of income, as well as taxes on real estate; The term “import duties” refers to tariffs, tariffs and other taxes that are not listed elsewhere in this note and are levied on imports; The term “indirect taxes” refers to turnover, excise duties, turnover, value added, deductible, stamp taxes, transfers, stocks and equipment, marginal taxes and all taxes other than direct taxes and import duties; “prelude,” indirect taxes are those levied on goods or services directly or indirectly used in the manufacture of the product; “cumulative indirect taxes,” multi-tiered taxes that are levied where there is no mechanism for subsequent tax imputation when taxable goods or services are used at one stage of production at a later stage of production; “remission” of taxes, refund or tax rebate; “remission or inconvenience”: full or partial exemption or deferral of import duties. (iii) does not cover the costs of exchanging and operating subsidized investments that must be fully borne by businesses; and the Committee sets up a working group to review the content and form of the questionnaire under BISD 9S/193-194. A financial contribution from a government is not a subsidy, unless it grants an advantage. In many cases, such as a cash grant, the existence of an advantage and its assessment will be clear. However, in some cases, the issue of performance will be more complex. For example, when to grant a loan, a capital injection or the purchase of a good performance by a government? Although the SCM agreement does not provide comprehensive guidelines on these issues, the appellate body (Canada Aircraft) has decided that the existence of a benefit must be determined in relation to the market (i.e.
on the basis of what the recipient could have obtained in the market).