344-(20)

II SÉRIE-A — NÚMERO 18

äs valid by the other Contracting Party for the purpose of operating the agreed services provided that such certificates and licences were issued or rendered valid pursuant to, and in conformity with, the standard established under the Convention. Each Contracting Party reserves the right, however, to refuse to recognise, for the purpose of flights undertaken pursuant to the rights granted under paragraph 2 of article 2 («Grant of rights»), certificates of competency and licences granted to its own nationals by the other Contracting Party.

2 — If the privileges or conditions of the licences or certificates issued or rendered valid by one Contracting Party permit a difference from the standards established under the Convention, and that difference has been filed with the International Civil Aviation Organisation, the aeronautical authorities of the other Contracting Party may request consultations in accordance with article 15 («Consultations») of this Agreement with the aeronautical authorities of the first Contracting Party with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach a satisfactory agreement shall constitute grounds for the application of article 4 («Revocation, suspension and limitation of rights») of this Agreement.

Article 7

Customs duties and other charges

1 — Aircraft operated on international services by the designated airlines of either Contracting Party, as well as their regular equipment, spare parts, 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 re-exported, or are used 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:

a) 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 outbound aircraft engaged in an international service of the designated airlines of the other Contracting Party;

b) Spare parts (including engines) and normal airborne equipment entered into the territory of either Contracting Party for the maintenance or repair of aircraft used on international services by the designated airlines of the other Contracting Party; and

c) Fuel and lubricants destined to supply outbound aircraft operated on international services by the designated airlines 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.

3 — Materials referred to in sub-paragraphs a), b) and c) above may be required to be kept under customs supervision or control.

4 — 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.

5 — The exemptions provided for by this article shall be available in situations where the designated airlines of either Contracting Party have entered into arrangements with another airline or airlines for the loan or transfer in the territory of the other Contracting Party of the items specified in paragraphs 1 and 2, provided such other airline or airlines similarly enjoy such exemptions from the other Contracting Party.

Article 8 Direct transit traffic

Passengers, baggage and cargo 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 requirements so permit. Baggage and cargo in direct transit shall be exempt from customs duties and other similar taxes.

Article 9 Sales and transfer of earnings

1 — The designated airlines of both Contracting Parties shall be allowed to establish in the territory of the other Contracting Party, offices for the promotion of air transportation and sale of air tickets as well as other facilities required for the provision of air transportation.

2 — A designated airline of one Contracting Party shall be allowed to bring in and maintain in the territory of the other Contracting Party its managerial, commercial, operational and technical staff as it may require in connection with the provision of air transportation. These staff requirements may, at the option of a. designated airline, be satisfied by its own personnel or by using the services of any other organization, company or airline operating in the territory of the other Contracting Party and authorized to perform such services in the territory of that Contracting Party. The above personnel shall be subject to the laws and regulations relating to the admission to, and stay in, the territory of that Contracting Party.

3 — Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion, through its agents. Such airline shall have the right to sell such 'transportation and any person shall be free to purchase such transportation.

4 — Each designated airline shall have the right to convert and remit to its country on demand, at the official rate, of exchange, the excess of receipts over expenditures achieved in connection with the carriage of passengers and cargo. In the absence of the appropriate provisions of a payments agreement, the above-mentioned transfer shall be made in convertible currencies and in accordance with the national laws and foreign exchange regulations applicable.

5 —The designated airlines of one Contracting Party shall have the right, at its discretion, to pay for local expenses in the territory of the other Contracting Party in local currency, or provided these accord with. Jocal currency regulations, in freely convertible currencies.