d) In the case of failure by such designated airline to comply with the legislation of the Party granting the authorization or permission; or

e) In the case the designated airline fails to operate the agreed services in accordance with the conditions prescribed under this Agreement and the Annex attached hereto.

2 — Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph 1 of this Article is essential to prevent further infringement of the laws or the provisions of this agreement, such right shall be exercised only after consultation in accordance with Article 22 with the Aeronautical Authorities of the other Party.

Article 6

Application of legislation and procedures

1 — The legislation and procedures of one Party relating to the admission to, sojourn in, or departure from its territory of aircraft engaged in international air services, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of both Parties upon entering into or departing from or while within the territory of the first Party.

2 — The legislation and procedures of one Party relating to the admission to, sojourn in, tran-sit and departure from its territory of passengers, crew, baggage, cargo and mail transported on board the aircraft, such as legislation relating to entry, clearance, immigration, passports, customs and sanitary control, shall be complied with by the airline of the other Party, or on behalf of such passengers, crew, entity entitled of baggage, cargo and mail upon entrance into or departure from or while within the territory of this Party.

3 — The above said legislation and procedures of a Party shall be the same as are applicable to the aircraft of its own airlines engaged in similar international air services.

Article 7

Direct transit

Passengers, baggage and cargo in direct transit across the territory of one Party, and not lea-ving the area of the airport reserved for such purpose shall, except in respect of security measures against the threat of unlawful interference, such as violence and air piracy and occasional measures for the combat of illicit drug traffic, be subjected to a very simplified control. Baggage and cargo in direct transit shall be exempt from custom duties charges and other similar taxes.

Article 8

Recognition of certificates and licenses

1 — Each Party shall recognize as valid for the purpose of air transport operations provided for in this Agreement, certificates of airworthiness, certificates of competency and licenses issued or rendered valid, in accordance with the rules and procedures of one Party, including, in the case of the Portuguese Republic, European Union laws and regulations, and unexpired, provided always that the requirements for issue or validation of such certificates or licenses are equal to or above the minimum standards established pursuant to the Convention.

2 — Paragraph 1 also applies with respect to an airline designated by the Portuguese Republic whose regulatory control is exercised and maintained by another European Union Member State.

3 — Each Party, however, reserves the right to refuse to recognize for the purpose of flights above its territory, certificates of competency and licenses granted or validated to its own nationals by the other Party.

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