12 DE NOVEMBRO DE 1998

294-(103)

of this Agreement in any case where the said Contracting Party 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.

5 — When an airline has been so designated and authorized, it may begin at any time to operate the agreed services, provided that flight-schedules have been approved and tariffs are in force in respect of those services, as required respectively under article 14 and

article 16 of this Agreement.

6 — Each Contracting Party shall have the right to withdraw, by written notification to the other Contracting Party, the designation of its airline and to substitute it by the designation of another airline.

Article 4

Revocation, suspension and limitation of rights

1 — The aeronautical authorities of 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 the present Agreement by the 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 nationals of such Contracting Party; 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 fails to operate the agreed services in accordance with the conditions prescribed under the present 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. Such consultation shall take place within a period of 30 days from the date of the proposal to hold it if not otherwise agreed.

Article 5 Entry and clearance laws and regulations

1 — The laws, regulations and procedures of a Contracting Party relating to the admission to, sojourn 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 upon entering into or departing from or while within the territory of that Party.

2 — The laws, regulations and procedures of a Contracting Party relating to the admission to, sojourn in, or departure from its territory of passengers, crew, baggage, cargo and mail transported on board the aircraft, such as regulations relating to entry, clearance, immigration, passports, customs and sanitary control shall be complied whith by or on behalf of such passengers, crew, baggage, cargo and mail upon entrance into or departure from or while within the territory of that Party.

3 — Neither Contracting Party may grant any preference to its own airline with regard to the designated airlines of the other Contracting Party in the application of the laws and regulations provided for in this article.

Article 6 Custom duties and other charges

1 — Aircraft operated on international services by the designated airline of either Contracting Party, as well as their regular equipment, spare parts, supplies of fuels and lubricants, other consumable technical supplies and aircraft stores (including food, beverages and tobacco) on board such aircraft shall be exempt from custom duties, inspection fees and other duties or taxes on arriving in the territory of the other Contracting Party, provided such equipment, supplies and aircraft stores 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, fees 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 one Contracting Party, and for use on board outbound aircraft engaged in an international service by the designated airline 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, lubricants and other consumable technical supplies destined to supply outbound 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 aboard.

3 — Materials referred to in subparagraphs 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 airline 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 also be available in situations where the designated airline of either Contracting Party has entered into arrangements with another airline or airlines for the loan or tansfer in the territory of the other Contracting Party of the items specified in paragraphs 1 and 2 of this article, provided such other airline or airlines similarly enjoy such exemptions from such other Contracting Party.