IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 10 Sep 2015 | Removal date: open ended
Still in force

Financial assistance in foreign market

On 10 September 2015 the Japan Bank for International Corporation (JBIC ) signed a shareholders' agreement with Japanese KH Neochem to participate in Taiwan-Japan Oxo Chemical Industries Inc.
The agreement subscribes preferred shares amounting to a maximum of USD 50 million. Taiwan-Japan Oxo Chemical Industries Inc. (TJOC) is jointly established by the Japanese company KH Neochem and Taiwanese companies CPC Corporation, Taiwan and Mega international Commercial Bank. TJOC is located in Taiwan.
In this context the Bank stated: 'This transaction is intended to support the production and sales of isononyl alcohol (INA) by TJOC, a company that KH Neochem jointly established with CPC Corporation, Taiwan (CPC) and Mega International Commercial Bank.'
 
Equity participation financing
JBIC provides capital contributions, including shareholders' agreements, named 'equity participations' to (foreign) companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and play a significant role. More information can be found on the Bank's website under equity participations.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

341 Basic organic chemicals
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290512 Propan1ol (propyl alcohol) and propan2ol (isopropyl alcohol)
290513 Butan1ol (nbutyl alcohol)
290514 Other butanols
290516 Octanol (octyl alcohol) and isomers thereof
290519 Other
290522 Acyclic terpene alcohols
290529 Other
290531 Ethylene glycol (ethanediol)
290532 Propylene glycol (propane1,2diol)
290539 Other
290541 2Ethyl2(hydroxymethyl)propane1,3diol (trimethylolpropane)
290542 Pentaerythritol
290549 Other
290559 Other

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