8 DE MARÇO DE 1985

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lished for the sale of certain merchandise, in particular items of significant value, such as electric appliances, video and sound reproduction equipment, and camera equipment.

3 — The United States will encourage its procurement authorities to acquire in the Portuguese market provisions, merchandise and articles for its world--wide network of exchanges. The Portuguese authorities will provide the assistance necessary to meet this objective.

ARTICLE VIII Fiscal exemptions

1 — Equipment, provisions, supplies, and other goods referred to in the previous articles of this annex, imported with exemption from duties, benefit equally from an exemption from transaction taxes in cases where these are owed or from any other taxes "which may replace them.

2 — The acquisition in Portugal of equipment, provisions, supplies, and other goods by United States Forces shall be exempt from all Portuguese taxes and other similar charges, but only if the total cost of an acquisition equals or exceeds 150000$.

3 — The equipment, provisions, supplies, and other goods referred to in the preceding paragraphs shall be exempt from any tax or other charge which would otherwise be assessed upon such property after its importation or acquisition by the United States Forces.

4— Contractors and subcontractors of any nationality and their employees, with respect to construction and repair related to the agreed facilities, benefit from the same fiscal exemptions which, under the terms of the fiscal legislation in force on the date of this Agreement, are enjoyed by contractors or subcontractors and their personnel engaged in projects related to NATO common infrastructure.

5 — The exemptions provided in paragraphs 2 and

3 of this article shall also apply to equipment, supplies, material and other goods acquired in Portugal on behalf of the United States Government by a contractor to be used solely for executing a contract for such forces. These exemptions shall also apply to projects funded jointly by Portugal and the United States. The exemption provided by this paragraph shall apply for the duration of such contracts, and to subsequente exportation from Portugal. The United States Forces shall require that contractors of the United States Forces shall use property acquired under this article exclusively in the execution of such contracts.

6 — The exemptions for empployees of contractors and subcontractors that are referred to in paragraph

4 are not granted to Portuguese civilians employed by such contractors or subcontractors.

7— The members of the force, its civilian component, and their dependents, are exempt from taxes on their income due to salaries or other income gained in the exercise of activities related to this Agreement in the area of the facilities.

8 — Members of the force and of the civilian component, and dependents shall not be liable to pay any tax or fee to the Portuguese State, the Autono-

mous Region of the Azores, or Portuguese local entities on the ownership, possession, use, transfer among themselves, or transfer by death of their tangible movable property.

9 — Vessels and aircraft operated by or for the United States Forces shall not be subject to the payment of landing or port fees, navigation or overflight charges or any other charges in connection with carrying out missions related to the use of the agreed facilities, except for charges for services requested and received.

ARTICLE IX Contractors and their employees

1 — United States nationals who are employed by a contractor executing a contract on behalf of the United States Forces shall be treated as members of the civilian component for the following purposes:

a) Importation of personal effects and private vehicles under article xi, paragraphs 5 and 6, NATO SOFA;

b) To the extent authorized by United States military authorities, use of the same postal system as other United States personnel under article vi of this annex;

c) Driving permits and registration of private vehicles under article v, annex H;

d) Entry into and exit from Portugal, in accordance with article ii, annex H;

e) To the extent authorized by United States military authorities, use of the organizations referred to in article vn of this annex. Special limitations may be established on purchases by such personnel in accordance with the provisions of article vn of this annex.

2 — Contractor vehicles brought into Portugal duty--free may be registered by the United States Forces in accordance with article v, annex H.

ARTICLE X Personal importation

1 — With reference to article xi, paragraphs 5, 6 and 7 of the NATO SOFA, personal effects, household goods and furniture intended for the exclusive use of membres of .the force or the civilian component may be imported into an retained in Portugal free of all duties and other import charges during the period such persons remain in Portugal.

2 — The exportation of property referred to in paragraph 1 of this article or acquired in Portugal for the owner's personal use shall be free of all duties and other charges.

ARTICLE XI Prevention of abuses

The United States Forces Command will cooperate with the Azores Air Command to prevent abuses of the customs and fiscal laws of Portugal and of the privileges contained in this annex.