1 DE ABRIL DE 1995

479

regulations normally and reasonably applied to the operation of international air services by such authorities.

5 — Each Contracting Party shall have the right to refuse to grant the operating authorizations referred to in paragraph 3 of this article, or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in article 2 of this Agreement in any case where the said Contracting Party is not satisfied that substancial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals.

6 — When an airline has been so designated and authorized it may begin at any time to operate the agreed services, provided that a capacity agreed upon and tariffs and flight schedules established in accordance with the provisions of article 10, article 13 and annex n of this Agreement are in force in respect of that service.

Article 4

Revocation and suspension of operating authorizations

1 — Each Contracting Party shall have the right to revoke an operating authorization or to suspend the exercise of the rights specified in article 2 of this Agreement by an airline designated by the other Contracting Party, or to impose such conditions as it may deem necessary on the exercise of these rights:

a) In any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals; or

b) In the case of failure by that airline to comply with the laws or regulations of the Contracting Party granting these rights; or

c) In case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2 — Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph 1 of this article is essential to prevent further infringements of laws or regulations, such right shall be exercised only after consultation with the other Contracting Party.

Article 5

Entry and clearance laws and regulations

1 — The laws and regulations of a Contracting Party relating to the admission to, stay in, or departure from its territory of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of both Contracting Parties without distinction as to nationality, and shall be complied with by such aircraft upon entering or departing from or while within the territory of that Party.

2 — The laws and regulations of a Contracting Party relating to the admission to, stay in, or departure from its territory of passengers, crew, cargo an mail transported on board the aircraft, such as regulations relating to entry, clearance, immigration, passports, customs

and sanitary control shall be complied with by or on behalf of such passengers, crew, cargo and mail upon entrance into or departure from or while within the territory of that Party.

Article 6

Exemption from customs and other duties and taxes

1 — Aircraft operated on international air services by the designated airline of either Contracting Party, as well as their regular equipment, supplies of fuels and lubricants, and aircraft stores (including food, beverages and tobacco) on board such aircraft shall be exempt from all customs duties, inspection fees and other duties or taxes on arriving in the territory of the other Contracting Party, provided such equipment and supplies remain on board the aircraft up to such time as they are used on board aircraft on the part of the journey performed over that territory.

2 — There shall also be exempt from the same duties and taxes, with the exception of charges corresponding to the service performed:

d) Aircraft stores taken on board in the territory of either Contracting Party, within limits fixed by the authorities of the said Contracting Party, and for use on board aircraft engaged in an international service of the other Contracting Party;

b) Spare parts and regular equipment entered into the territory of either Contracting Party for the maintenance or repair of aircraft used on international services by the designated airline of the other Contracting Party;

c) Fuel and lubricants destined to supply aircraft operated on international services by the designated airline of the other Contracting Party, even when these supplies are to be used on the part of the journey performed over the territory of the Contracting Party in which they are taken on board.

Materials referred to in sub-paragraph S, a), b) and c), above may be required to be under customs supervision or control.

Article 7

Storage of airborne equipment and supplies

The regular airborne equipment, as well as the materials and supplies retained on board the aircraft of the designated airlines of either Contracting Party may be unloaded in the territory of the other Contracting Party only with the approval of the customs authorities of such territory. In such case, they may be placed under the supervision of the said authorities up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.

Article 8

Direct transit traffic

Passengers in direct transit across the territory of either Contracting Party shall be subject to no more than a very simplified control in so far as security re-