IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 22 Mar 2020 | Removal date: 30 Jun 2021

Financial grant

On 22 March 2020, the European Commission approved the Italian authorities notified aid scheme to support Italian companies' projects related to the production of medical devices and personal protective equipment. These goods more specifically include ventilators as well as masks, goggles, gowns, safety suits, shoes utilised as personal protective equipment. Such projects cover the establishment of new facilities, expansion of existing facilities or converting their production line for the purpose to produce the subject goods. Only Italian companies can benefit from the scheme.

More specifically, beneficiaries of the scheme receive interest-free repayable advances (see related intervention) to cover up to 75% of the eligible costs related to the production project with a maximum allowance of EUR 800,000. Under the scheme, 100%, 50% or 25% of a beneficiary's repayable advance may be converted into a financial grant (i.e. the beneficiary will not have to repay the amount) if the investment plan is executed and production of the subject goods are available respectively within 15, 30 or 60 days of the aid being granted.

In this context, the European Commission noted in its decision report that: "As the scheme covers sectors and undertakings involved in trade between Member States, there is a risk that the aid could affect such trade."

However, the Commission approved the state aid on 22 March 2020 concluding that: "The Commission considers therefore that by respecting these conditions, the scheme is necessary, appropriate and proportionate to remedy the serious disturbance in the Italian economy caused by the COVID-19 outbreak and the urgent need for medical equipment. As the conditions of TF COVID-19 are complied with, the scheme is compatible with the internal market."

The scheme has a total budget of EUR 50 million (approx. USD 53.8 million) and is in force until 31 December 2020.

On 10 December 2020, the European Commission issued a decision under state aid case 59655 extending the coverage period of the scheme until 30 June 2021.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

271 Made-up textile articles
6307 Other made up articles, including dress patterns.
630790 Other
282 Wearing apparel, except fur apparel
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392620 Articles of apparel and clothing accessories (including gloves, mittens and mitts)
6116 Gloves, mittens and mitts, knitted or crocheted.
611610 Impregnated, coated or covered with plastics or rubber
6210 Garments, made up of fabrics of heading 56.02, 56.03, 59.03, 59.06 or 59.07.
621010 Of fabrics of heading 56.02 or 56.03
621020 Other garments, of the type described in subheadings 6201.11 to 6201.19
621030 Other garments, of the type described in subheadings 6202.11 to 6202.19
621040 Other men's or boys' garments
621050 Other women's or girls' garments
6216 Gloves, mittens and mitts.
621600 Gloves, mittens and mitts.
6505 Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hairnets of any material, whether or not lined or trimmed.
650500 Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hairnets of any material, whether or not lined or trimmed.
362 Other rubber products
4015 Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber.
401511 Surgical
401519 Other
481 Medical & surgical equipment & orthopaedic appliances
9019 Mechanotherapy appliances; massage apparatus; psychological aptitudetesting apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus.
901920 Ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus
9020 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters.
902000 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters.
483 Optical instruments & photographic equipment; parts thereof
9004 Spectacles, goggles and the like, corrective, protective or other.
900490 Other

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