16 DE JUNHO DE 1995

822-(37)

Article Vm Military banks and financial institutions

United States military authorities may enter into contracts or other arrangments with financial institutions to maintain

and operate military banking facilities or credit unions on Air Base Number 4, Lajes, for the exclusive use of the United States Forces, members of the United States Force, its civilian component, or dependents of the United States Armed Forces, as defined in article 1 of annex H. These activities shall be maintained and operated under United States Military regulations and shall be authorized to maintain bank accounts in the currency of the Goverment of the United States and currency of Government of Portugal and to perform all financial transactions in connection therewith.

Article IX

Exemptions regarding Portuguese taxes and customs and excise duties

1 — The United States Forces may import or acquire, in Portuguese territory, with the exemption from tax provided for NATO country armed forces, the equipment, provisions, supplies and other goods designated for the use of the Force and the civilian components or for the provissioning of their commisssaries, messes and exchanges, exempt from all customs duties, and from the Portuguese value added tax, and from excise duties or other duties which replace them.

2 — The rendering of services, located in Portuguese territory, for the use of the Forces and the civilian component are similarly exempt from the Portuguese value added tax or taxes which replace it.

3 — The acquisition of goods and services in paragraphs 1 and 2 by the United States Forces in the European Community countries are not subjected to value added taxes in Portugal.

4 — For acquisitions in the internal market, the exemptions referred to in paragraphs 1 and 2 will be carried out, without resort to the system of collection and reimbursement applicable to diplomatic representations under Portuguese legislation.

Article X Other exemptions

1 — The equipment, provisions, supplies and other goods referred to in the previous articles of this annex are exempt from the taxes and other charges which could incur after their importation or acquisition by the United States Forces.

2 — The members of the Force or the civilian component, as well as dependent, are exempt from taxes on the salaries or other income gained in the exercise of activities connected with this Agreement and located on the Air Base Number 4, Lajes, and its support facilities.

3 — The members of the Force and die civilian component as well as dependents enjoy, with respect to their movable property, exemption from taxes and fees of the Portuguese state, the Autonomous Region of the Azores, and local entities on the ownership, possession, use, transfer among themselves, or transfer because of death.

4 — Vessels and aircraft operated by of for the United States Forces, when carrying out missions related to the use

of the granted facilities, are exempt from payment of landing or port fees, navigation or overflight charges, or any other charges, except for charges arising from services requested and received.

Article XI

Contractors and subcontractors and their employees

1 — Contractors and subcontractors, native or foreign, are exempt from the tax on income on individuals or collective entities and from local tax, with respect to the profits derived from the projects and jobs associated with the granted facilities.

2 — Nothing in the preceding paragraph shall prejudice the summing or die exempted income for the purposes of Portuguese law and the determination of the applicable fee on the remaining taxable income.

3 — United States nationals who are employed by contractors executing a contract on behalf of the United States Forces are considered members of the civilian component for the following purposes:

a) Importation of personal effects and private vehicles under the terms of article xi, paragraphs 5 and 6, NATO SOPA.

b) To the extent authorized by United States military authorities, use of the same postal system available the rest of the personnel of the United States, under the terms of this Agreement.

c) Issuance of driver's licenses and registration of private vehicles under the terms of article v of Annex H.

d) Entry into and departure from Portuguese territory, under the terms of article n of Annex H.

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

4 — Contractors' vehicles imported duty-free into Portugal may be registered by the United States Forces under the terms of article v of annex H.

Article XII Importation of personal effects

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

2 — The subsequent exportation of goods imported under the terms of paragraph 1 or acquired in Portugal for the personal use of the owner is exempt from duties and other charges.

Article XJH

Prevention of abuses

The United States Forces will cooperate with Air Base Number 4, Lajes, in the prevention of violation of the fiscal and customs laws of Portugal and of abuses of the exemptions contained in this annex.