II SÉRIE-A — NÚMERO 30 136

In exercising its right under this paragraph, and without prejudice to its rights under paragraph c) 1.v) and vi)

of this Article, the UAE shall not discriminate between European Union air carriers on the grounds of nationality.

d) in accordance with paragraph (6) of Article 10 and paragraph (10) of Article 12 of this Agreement;

e) in the case of failure by the other Party to take appropriate action to improve safety in accordance with

paragraph (2) of Article 10 of this Agreement; or

f) in any case where the other Party fails to comply with any decision or stipulation arising from the

application of Article 19 of this Agreement.

2. Unless immediate refusal 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 Party, as provided for in Article 18.

3. In the event of action by one Party under this Article, the rights of the other Party under Article 19 shall not be

prejudiced.

ARTICLE 5 – PRINCIPLES GOVERNING OPERATION OF AGREED SERVICES

1. Each Party shall reciprocally allow the Designated Airlines of both Parties to compete freely in providing

the international air transportation governed by this Agreement.

2. Each Party shall take all appropriate action within its jurisdiction to eliminate all forms of discrimination

and anti-competitive or predatory practices in the exercise of the rights and entitlements set out in this Agreement.

3. There shall be no restriction on the capacity and the number of frequencies and/or type(s) of aircraft to be

operated by the Designated Airlines of both Parties in any type of service (passenger, cargo, separately or in

combination). Each Designated Airline is permitted to determine the frequency, capacity it offers on the Agreed

Services.

4. Neither Party shall unilaterally limit the volume of traffic, frequencies, regularity of service or the aircraft

type(s) operated by the Designated Airlines of the other Party, except as may be required for customs, technical,

operational or environmental requirements under uniform conditions consistent with Article 15 of the Convention.

5. Neither Party shall impose on the Designated Airlines of the other Party a first refusal requirement, uplift

ratio, no objection fee or any other requirement with respect to capacity, frequencies or traffic which would be

inconsistent with the purposes of this Agreement.

ARTICLE 6 - CUSTOMS DUTIES AND OTHER CHARGES

1. Each Party exempts the Designated Airlines of the other Party from import restrictions, customs duties, direct

or indirect taxes, inspection fees and all other national and/or local duties and charges on aircraft as well as their

regular equipment, fuel, lubricants, maintenance equipment, aircraft tools, consumable technical supplies, spare

parts including engines, catering equipment, aircraft stores including but not limited to such items as cutlery, food,

beverages, liquor, tobacco and other products for sale to or use by passengers during flight and other items intended

for or used solely in connection with the operation or servicing of aircraft used by such Designated Airline operating

the Agreed Services, as well as printed ticket stock, airway bills, any printed material which bears the insignia of the

Designated Airline printed thereon and usual publicity and promotional materials distributed free of charge by such

Designated Airline. The above exemption shall also apply to staff uniforms, computers and ticket printers, within

reasonable limits, intended for use by a Designated Airline of one Party provided they are imported temporarily into

the Territory of the other Party and re-exported within a maximum period of 24 months.

2. The exemptions granted by this Article shall apply to the items referred to in paragraph (1) of this Article which

are:

a) introduced into the Territory of one Party by or on behalf of a Designated Airline of the other Party;

b) retained on board the aircraft of a Designated Airline of one Party upon arriving in and until leaving the Territory

of the other Party and/or consumed during flight over that Territory;

c) taken on board the aircraft of a Designated Airline of one Party in the Territory of the other Party and intended

for use in operating the Agreed Services;