21979A1031(07)

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PROTOCOL 6

ON THE TAX AND CUSTOMS ARRANGEMENTS APPLICABLE IN THE ACP STATES TO CONTRACTS FINANCED BY THE COMMUNITY

ARTICLE 1

1 . THE ACP STATES SHALL APPLY TO CONTRACTS , FINANCED BY THE COMMUNITY , TAX AND CUSTOMS ARRANGEMENTS NO LESS FAVOURABLE THAN THOSE APPLIED VIS-A-VIS THE MOST FAVOURED STATE OR MOST FAVOURED INTERNATIONAL DEVELOPMENT ORGANIZATION .

FOR THE PURPOSE OF APPLYING THE FIRST SUBPARAGRAPH NO ACCOUNT SHALL BE TAKEN OF ARRANGEMENTS APPLIED TO ACP STATES OR OTHER DEVELOPING COUNTRIES .

2 . SUBJECT TO PARAGRAPH 1 , THE ACP STATES SHALL APPLY TO CONTRACTS FINANCED BY THE COMMUNITY THE ARRANGEMENTS LAID DOWN IN ARTICLES 2 TO 12 .

ARTICLE 2

CONTRACTS FINANCED BY THE COMMUNITY SHALL NOT BE SUBJECT IN THE BENEFICIARY ACP STATE TO STAMP OR REGISTRATION DUTIES OR FISCAL CHARGES HAVING EQUIVALENT EFFECT , WHETHER SUCH CHARGES EXIST OR ARE TO BE INSTITUTED .

THEY MAY , HOWEVER , BE SUBJECT TO THE FORMALITY OF REGISTRATION , IN ACCORDANCE WITH THE LAWS IN FORCE IN THE ACP STATES . THIS FORMALITY MAY ENTAIL THE COLLECTION OF FEES WHICH CORRESPOND TO PAYMENT FOR THE SERVICE PROVIDED AND WHICH DO NOT EXCEED THE COST OF THE DEED IN ACCORDANCE WITH THE LEGAL PROVISIONS IN FORCE IN EACH ACP STATE CONCERNED .

ARTICLE 3

1 . STUDY , INSPECTION OR SUPERVISION CONTRACTS FINANCED BY THE COMMUNITY SHALL NOT GIVE RISE TO TURNOVER TAX IN THE BENEFICIARY ACP STATE .

2 . PROFITS ARISING FROM CARRYING OUT WORKS , STUDY , INSPECTION OR SUPERVISION CONTRACTS FINANCED BY THE COMMUNITY SHALL BE TAXABLE ACCORDING TO THE INTERNAL FISCAL ARRANGEMENTS OF THE ACP STATE CONCERNED , PROVIDED THAT THE NATURAL OR LEGAL PERSONS WHO REALIZED SUCH PROFITS IN THAT STATE HAVE A PERMANENT PLACE OF BUSINESS THERE OR THAT THE CONTRACTS TAKE LONGER THAN SIX MONTHS TO CARRY OUT .

ARTICLE 4

1 . IMPORTS UNDER A SUPPLY CONTRACT FINANCED BY THE COMMUNITY SHALL CROSS THE FRONTIER OF THE BENEFICIARY ACP STATE WITHOUT BEING SUBJECT TO CUSTOMS DUTIES , IMPORT DUTIES , TAXES OR FISCAL CHARGES HAVING EQUIVALENT EFFECT .

2 . WHERE A SUPPLY CONTRACT FINANCED BY THE COMMUNITY INVOLVES A PRODUCT ORIGINATING IN THE BENEFICIARY ACP STATE , THE CONTRACT SHALL BE CONCLUDED ON THE BASIS OF THE EX-WORKS PRICE OF THE SUPPLIES IN QUESTION , TO WHICH SHALL BE ADDED THE INTERNAL FISCAL CHARGES APPLICABLE IN THE ACP STATE TO THOSE SUPPLIES .

3 . THE EXEMPTIONS SHALL BE EXPRESSLY PROVIDED FOR IN THE TEXT OF THE CONTRACT .

ARTICLE 5

FUELS , LUBRICANTS AND HYDROCARBON BINDERS AND , IN GENERAL , ALL MATERIALS USED IN THE PERFORMANCE OF A WORKS CONTRACT FINANCED BY THE COMMUNITY SHALL BE DEEMED TO HAVE BEEN PURCHASED ON THE LOCAL MARKET AND SHALL BE SUBJECT TO FISCAL RULES APPLICABLE UNDER THE NATIONAL LEGISLATION IN FORCE IN THE BENEFICIARY ACP STATE .

ARTICLE 6

UNDERTAKINGS WHICH MUST IMPORT PROFESSIONAL EQUIPMENT IN ORDER TO CARRY OUT WORKS CONTRACTS SHALL , IF THEY SO REQUEST , BENEFIT FROM THE SYSTEM OF TEMPORARY ADMISSION AS DEFINED BY THE NATIONAL LEGISLATION OF THE BENEFICIARY ACP STATE IN RESPECT OF THE SAID EQUIPMENT .

ARTICLE 7

PROFESSIONAL EQUIPMENT NECESSARY FOR CARRYING OUT TASKS DEFINED IN A STUDY , INSPECTION OR SUPERVISION CONTRACT SHALL BE TEMPORARILY ADMITTED INTO THE BENEFICIARY ACP STATE OR STATES FREE OF FISCAL , IMPORT AND CUSTOMS DUTIES AND OF OTHER CHARGES HAVING EQUIVALENT EFFECT WHERE THESE DUTIES AND CHARGES DO NOT CONSTITUTE REMUNERATION FOR SERVICES RENDERED .

ARTICLE 8

1 . PERSONAL AND HOUSEHOLD EFFECTS IMPORTED FOR PERSONAL USE BY NATURAL PERSONS , OTHER THAN THOSE RECRUITED LOCALLY , ENGAGED IN CARRYING OUT TASKS DEFINED IN A STUDY , INSPECTION OR SUPERVISION CONTRACT SHALL BE EXEMPT FROM CUSTOMS DUTIES , IMPORT DUTIES , TAXES AND OTHER FISCAL CHARGES HAVING EQUIVALENT EFFECT , WITHIN THE LIMIT OF THE NATIONAL LEGISLATION OF THE BENEFICIARY ACP STATE .

2 . THESE PROVISIONS SHALL ALSO APPLY TO MEMBERS OF THE FAMILIES OF THE PERSONS REFERRED TO IN PARAGRAPH 1 .

ARTICLE 9

1 . THE COMMISSION DELEGATE AND THE STAFF APPOINTED TO THE DELEGATIONS , WITH THE EXCEPTION OF STAFF RECRUITED LOCALLY , SHALL BE EXEMPT FROM ALL DIRECT TAXES IN THE ACP STATE IN WHICH THEY ARE INSTALLED .

2 . THE STAFF REFERRED TO IN PARAGRAPH 1 SHALL ALSO BE COVERED BY ARTICLE 8 .

ARTICLE 10

THE ACP STATES SHALL GRANT EXEMPTION FROM ALL NATIONAL OR LOCAL DUTIES OR FISCAL CHARGES ON THE INTEREST , COMMISSION AND AMORTIZATION DUE ON ASSISTANCE GIVEN BY THE COMMUNITY IN THE FORM OF SPECIAL LOANS , SUBORDINATED OR CONDITIONAL LOANS THROUGH RISK CAPITAL OR LOANS FROM THE OWN RESOURCES OF THE BANK , AS REFERRED TO IN ARTICLES 101 AND 105 OF THE CONVENTION .

ARTICLE 11

ANY MATTER NOT COVERED BY THIS PROTOCOL SHALL REMAIN SUBJECT TO THE NATIONAL LEGISLATION OF THE STATES PARTY TO THE CONVENTION .

ARTICLE 12

THE ABOVE PROVISIONS SHALL APPLY TO THE PERFORMANCE OF ALL CONTRACTS FINANCED BY THE COMMUNITY AND CONCLUDED SUBSEQUENT TO THE ENTRY INTO FORCE OF THE CONVENTION .