? If, notwithstanding any appearance of non-specificity resulting from the application of the principles laid down in subparagraphs (a) and (b), there are reasons to believe that the subsidy may in fact be specific, other factors may be considered. Such factors are: use of a subsidy programme by a limited number of certain enterprises; predominant use by certain enterprises; the granting of disproportionately large amounts of subsidy to certain enterprises; and the manner in which discretion has been exercised by the granting authority in the decision to grant a subsidy. In this regard, information on the frequency with which applications for a subsidy are refused or approved and the reasons for such decisions shall, in particular, be considered.
In applying the first subparagraph, account shall be taken of the extent of diversification of economic activities within the jurisdiction of the granting authority, as well as of the length of time during which the subsidy programme has been in operation.
3. A subsidy which is limited to certain enterprises located within a designated geographical region within the jurisdiction of the granting authority shall be specific. The setting or changing of generally applicable tax rates by all levels of government entitled to do so shall not be deemed to be a specific subsidy for the purposes of this Regulation.
4. Notwithstanding paragraphs 2 and 3, the following subsidies shall be deemed to be specific:
(a) subsidies contingent, in law or in fact, whether solely or as one of several other conditions, upon export performance, including those illustrated in Annex I.
Subsidies shall be considered to be contingent in fact upon export performance when the facts demonstrate that the granting of a subsidy, without having been made legally contingent upon export performance, is in fact tied to actual or anticipated exportation or export earnings. The mere fact that a subsidy is accorded to enterprises which export shall not for that reason alone be considered to be an export subsidy within the meaning of this provision;
(b) subsidies contingent, whether solely or as one of several other conditions, upon the use of domestic over imported goods.
5. Any determination of specificity under the provisions of this Article shall be clearly substantiated on the basis of positive evidence.
Article 4
Non-countervailable subsidies
1. The following subsidies shall not be subjected to countervailing measures:
(a) subsidies which are not specific within the meaning of Article 3 (2) and (3);
(b) subsidies which are specific, within the meaning of Article 3 (2) and (3), but which meet the conditions provided for in paragraphs 2, 3 or 4 of this Article;
? The element of subsidy which may exist in any of the measures listed in Annex IV.
2. Subsidies for research activities conducted by firms or by higher education or research establishments on a contract basis with firms shall not be subject to countervailing measures, if the subsidies cover not more than 75% of the costs of industrial research or 50% of the costs of pre-competitive development activity, and provided that such subsidies are limited exclusively to:
