17 DE JUNHO DE 1999

2006-(9)

graph 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 as soon as possible, in accordance with article 15 («Consultations»).

Article 5 Entry and clearance laws and regulations

1 — The laws and regulations of one Contracting Party relating to 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 the airlines designated by the other Contracting Party and shall be complied with by such aircraft upon entrance into or departure from and while within the territory of the first Contracting Party.

2 — The laws and regulations of one Contracting Parry relating to the admission to, stay in, or departure from its territory of passengers, crew or cargo of aircraft, including regulations relating to entry, clearance, immigration, passports, customs and quarantine, shall be complied with by or on behalf of such passengers, crew or cargo of the airlines of the other Contracting Party upon entrance into or departure from and while within the territory of the first Contracting Party.

Article 6

Recognition of certificates and licences

2 — Certificates of airworthiness, certificates of competency and licences issued, or rendered valid by one Contracting Party and still in force, shall be recognised as 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