52015PC0398

EUROPEAN COMMISSION

Brussels, 7.8.2015

COM(2015) 398 final

2015/0174(NLE)

Proposal for a

COUNCIL DECISION

approving the conclusion by the Commission, on behalf of the European Atomic Energy Community, of the Agreement continuing the International Science and Technology Center between the European Union and EURATOM acting as one Party and Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The overall objective of the non-proliferation policy is to prevent, detect and respond to WMD proliferating activities. There are multilateral conventions and verification mechanisms, bilateral and national legislative frameworks, safeguards, sanctions, export controls, cooperative threat reduction and emergency and response plans in place in order to deal with the proliferation challenges.

Another element of this policy is a set of measures dealing with WMD know-how and high-risk materials and technologies that have the potential for inappropriate and unauthorized use that could result in great harm.

In this context the International Science and Technology Centre (ISTC) was set up in 1994 after the collapse of the Soviet Union. It was funded together with other Parties (USA, Canada, Japan) through an international multilateral agreement for the purpose of non-proliferation of scientific and technical expertise related to Weapon of Mass Destruction (WMD). Over time, other Parties joined the Agreement, i.e. Armenia, Belarus, Georgia, Kazakhstan, Kirghizstan, Republic of Korea, Norway, Russian Federation and Tajikistan.

The ISTC works at the crossroads between scientific research and non-proliferation, and has funded almost 3000 projects with a total value of over 550 million Euros. The EU contribution amounts to approximately 270 million Euros. In the latest years the concept and the work of the ISTC as a science centre evolved to take into account the changing proliferation landscape, the results of threat analyses and the evolving needs of the parties. The Center increasingly focused on supporting projects aiming at mitigation of broader Chemical, Biological, Radiological and Nuclear risks, not necessarily focused on scientists' redirection, but on promoting bio safety and biosecurity, physical upgrades of laboratories as well as stimulation of networking activities among relevant scientific communities.

Following the 2010 announced withdrawal of the Russian Federation, that became effective on 15 July 2015, the Parties agreed that a new Agreement needs to be put in place in order for the Center to effectively fulfil its mandate under changed circumstances.

On 21 October 2013 the Council authorised the Commission to start negotiations, on behalf of the European Union and Euratom (acting as one Party) for the negotiation of an Agreement continuing the International Science and Technology Center (“the Agreement”) between the European Union and EURATOM acting as one Party, Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America, and issued corresponding negotiating directives (doc.14137/13 R –UE).

The aims set out in the negotiating directives have been fully met and the comments from the Member States have been taken into account during the negotiations. The draft continuation Agreement was presented at the Council Non-Proliferation Working Group (CONOP) on 24 February 2014 and to the Atomic Questions Group on 5 February 2014.

Subsequently, the EC proceeded to the initialling of the draft continuation Agreement. In June 2014 the Agreement was initialled by all of the Parties except for Kazakhstan, Norway and Tajikistan. At this point it was expected that the initialling will be completed within the shortest possible time periods.

The Commission therefore prepared this Proposal for a Council decision to authorise the conclusion of the Agreement on behalf of the EURATOM.

The initialling of the Agreement by Kazakhstan took longer than expected. Initially, Kazakhstan requested an additional time period to complete the internal clearing procedures for the initialling of the Agreement. Later, some objections were raised in relation to the translation of the draft Agreement in the Russian language. During the internal procedure, and following the Government restructuring in August 2014, Kazakhstan raised also a technical legal objection related to the reference to the Vienna convention within the Agreement. During this period Belarus also withdrew from the ISTC Agreement so the reference to Belarus in the new continuation Agreement had to be eliminated. In order to deal with all these requests it was agreed that a different version of the Agreement should be prepared. This new version had no significant substantial changes in comparison to the previous one, and it is fully compliant with the negotiation directives decided by the Council. The linguistic issues were solved, the reference to Belarus was deleted and the reference to the Vienna Convention was replaced with the relevant text of the Convention itself, which was acceptable for the Kazakh side. Following these modifications, a new version of the continuation Agreement was initialled by all the Parties on 22 June 2015 in Astana.

This current proposal is the next step in the process of the signature of the Agreement continuing the International Science and Technology Center (“the Agreement”). Two parallel procedures are proposed, one for the conclusion of the Agreement under the EURATOM treaty and a parallel procedure for the signature of the Agreement under the TEU/TFEU legal base.

Consistency with existing policy provisions in the policy area

As mentioned in the Thematic Strategy Paper 2014-2020 under the Instrument Contributing to Stability and Peace, there is a need due to the spread of dual use knowledge to focus support from "redirection of scientists" to the development of the concept of "scientists' engagement". Since then, the EU approach has been adapted accordingly, taking also into account the emergence of new information and communication tools allowing easier access to sensitive knowledge and know-how by potential proliferators.

During the years the “human dimension” aspect gradually increased in importance within overall security policy and focused not only on redirection activities but also on towards the need to contain of dual use knowledge and expertise at global level. These aspects became more relevant in the post 9/11 era and ultimately led to the adoption of the UNSCR 1540 of 2004. These developments were also discussed within the framework in the G8 Global Partnership program. In 2009, a G8 Working Group as endorsed by the Summit meeting, adopted a set of recommendations for a coordinated approach in the field of global weapons of mass destruction knowledge proliferation and scientist engagement. It identified the proliferation of WMD expertise or any sensitive knowledge in CBRN areas as a matter of serious concern. The recommendations made reference to the lessons learned from ISTC to shape appropriate projects outside the G8 countries as a way to contribute to global non-proliferation efforts. The Deauville G8 Declaration extended the Global Partnership Program beyond 2012 identifying scientists’ engagement as a focal area.

The various recommendations were taken into account during the negotiations on the new ISTC continuation Agreement. Its content is in line with the objectives of the UNSCR 1540.

Consistency with other Union policies

The new continuation Agreement is in line with the EU Security Strategy of 2003 and its revision in 2008 as well as with the Council Conclusions of 2013 on ensuring the continued pursuit of an effective EU policy on the new challenges presented by the proliferation of weapons of mass destruction and their delivery systems. The conclusions call for further strengthening of protection against transfers of sensitive technology and know-how, including dual-use items.

The new Agreement is also consistent with Horizon 2020, in particular the Secure Societies Work Programme promoting applied security research in different sensitive areas. It is also compliant with the content of the relevant Euratom research programmes.

The funding of ISTC is part of the new Instrument contributing to Stability and Peace (IcSP) in particular its Article 5.2. The IcSP has a number of provisions to ensure that overlap of activities and double funding will be avoided. The Commission is under a legal obligation to ensure that measures adopted are consistent with Union and national assistance measures to prevent overlapping in activities and double funding.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The legal base for the current proposal was decided after the exchange of view on the proposal of the negotiation directives in relevant Council Working Groups (CONOP, Atomic Questions Group) and COREPER.

This current proposal is based on based on Article 101 of the EURATOM Treaty.

A parallel procedure is launched based Articles 29 and 37 of TEU and on Article 218 of TFEU.

Subsidiarity (for non-exclusive competence)

The Member States invited the European Union to be a Party to the Agreement due to its capacity to mobilize expertise across the Union, as well as its long standing experience in this field since 1992. The Member States agreed the EU is able to ensure better coordination as well as networking between the stakeholders, especially the scientists, beyond the capability of individual Member States. Some of the risks addressed know no borders (i.e. epidemics or smuggling of dangerous materials) and need to be managed from a regional or a global scale.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND COLLECTION AND USE OF EXPERTISE

Ex-post evaluations/fitness checks of existing legislation

The choice was made to continue with an international agreement because it provides a maximum of legal certainty for the European Union including financing procedures based on international standards that would guarantee the protection of the financial interests of European Union funds.

Moreover, a number of privileges are obtained which could only be arranged in the framework of a new international agreement such as related to immunities and privileges of EU staff working at the Secretariat in Kazakhstan. Equally, access to institutes to monitor the implementation of EU funded activities is guaranteed, as well as a number of privileges allowing the delivery of the assistance free of taxes such as VAT, duties and other taxes.

Stakeholder consultations

In 2014 the ISTC's Scientific Advisory Committee started a series of meetings with representatives of the scientific communities of the European Union, Japan, USA, and other countries currently members of the ISTC. A number of priorities for future support were identified in the nuclear, bio and chemical security sectors, but also related to climate change and further scientific networking opportunities.

In February 2015 the European Commission organized a meeting deepening the discussions with a team of experts from all the partner countries, including from the EU. The set of priorities were further defined and recommendations were received on funding mechanisms and working modalities, in particular to strengthen the networking approach.

Collection and use of expertise

The EU position was formulated on the basis of recommendations by in house scientific experts at the European Commission, as well as by the EEAS. Moreover, advice was provided by a number of high level of EU experts active in this field, in particular those that are participating on the behalf of the EU in the ISTC Scientific Advisory Committee.

Furthermore, a number of expert studies were financed to assess the risks and threats in this field present in the Caucasus and in Central Asia. The results were discussed in a Working Group on Scientist Engagement chaired by the Commission. Its recommendations were followed up.

4.DETAILED EXPLANATION OF THE SPECIFIC PROVISIONS OF THE PROPOSAL

The objectives of the ISTC are fully in line with the negotiations directives set by the Council.

The Center's core objectives as laid down in Article 2 of the continuation Agreement. These objectives are:

(i) to promote the improvement of international mechanisms for the prevention of the proliferation of WMD and their delivery systems, as well as of technologies, materials, and expertise that are key elements directly related to the development, production, use, or enhancement of WMD or their delivery systems (including dual-use technology, materials, and expertise);

(ii) to give scientists and engineers with knowledge and skills applicable to WMD and their delivery systems, including dual-use knowledge and skills, opportunities for training and alternative employment where their knowledge and skills can be used for peaceful activities;

(iii) to promote a culture of security with respect to the handling and use of materials, equipment, and technology which could be used for the design, development, production, or use of WMD or their means of delivery; and

(iv) to contribute through its activities: to the development of international scientific partnership, strengthening global security, and fostering economic growth through innovation; to basic and applied research and technology development and commercialization, inter alia, in the fields of environment, energy, health, and nuclear, chemical, and biological safety and security; and to promoting the further integration of scientists with technologies, material, and expertise applicable to WMD into the international scientific community.

In line with the negotiations directives, the Agreement (Article 10) foresees that all the activities will benefit from a tax-free regime and other tax privileges in the recipient countries.

The funding Parties will have full access to monitor, audit, evaluate and inspect EU funded projects, including inspection of the facilities benefiting from the funding, as set in Article 8 of the Agreement.

Article 12 of the Agreement sets the immunities and privileges for the ISTC staff, including for the staff working on the behalf of the European Union. The text of Article 12 of the Agreement is fully compliant with the provision of Vienna Convention on diplomatic relations of 18 April 1961.

A direct reference to the Vienna Convention cannot be used due to some legal matters raised by Kazakhstan. Therefore, during negotiations this reference was replaced by the exact wording of the relevant provisions of the Vienna Convention.

2015/0174 (NLE)

Proposal for a

COUNCIL DECISION

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 4 and the second paragraph of Article 101 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)On 21 October 2013 the Council authorised the Commission to open negotiations for the establishment of an Agreement continuing the International Science and Technology Center between the European Union and EURATOM acting as one Party, and Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America. 1

(2)These negotiations have been successfully completed.

(3)The signature, subject to its conclusion at a later stage, of the Agreement is subject to a separate procedure as regards matters falling under the Treaty on European Union and Treaty on the Functioning of the European Union.

(4)The conclusion of the Agreement by the Commission, acting on behalf of the European Atomic Energy Community should be approved.

HAS ADOPTED THIS DECISION:

Sole Article

The conclusion by the Commission, on behalf of the European Atomic Energy Community, of the Agreement continuing the International Science and Technology Center between the European Union and EURATOM acting as one Party, Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America (“the Agreement”) is hereby approved.

The text of the Agreement to be signed is attached to this Decision.

Done at Brussels,

For the Council

The President

(1) Doc. 14137/13 R-UE adopted on 21/10/2013

Top

EUROPEAN COMMISSION

Brussels, 7.8.2015

COM(2015) 398 final

ANNEX

to the

COUNCIL DECISION

approving the conclusion by the Commission of the Agreement continuing
the International Science and Technology Centre between the
European Union and EURATOM acting as one Party, and Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America

ANNEX

to the

COUNCIL DECISION

AGREEMENT CONTINUING THE

INTERNATIONAL SCIENCE AND TECHNOLOGY CENTER

THE PARTIES TO THIS AGREEMENT,

CONCERNED about the worldwide threat posed by the proliferation of nuclear, radiological, chemical, and biological weapons (hereinafter weapons of mass destruction or “WMD”) and the use of nuclear, radiological, chemical, and biological materials as weapons;

REAFFIRMING the need to prevent the proliferation of technologies, material, and expertise related to WMD and their means of delivery;

RECALLING United Nations Security Council Resolution 1540, which decided that all States have an obligation to refrain from providing any form of support to non-State actors that attempt to develop, acquire, manufacture, possess, transport, transfer, or use nuclear, chemical, or biological weapons and their means of delivery;

RECOGNIZING that collaborative, multilateral efforts among states are an effective means for preventing such proliferation, and recognizing the important role of scientific research and technological development as key elements of today’s proliferation challenges;

TAKING INTO ACCOUNT the provisions of the Agreement Establishing an International Science and Technology Center (hereinafter “the ISTC” or “the Center”), signed at Moscow on November 27, 1992 (hereinafter “the 1992 Agreement”) and the Protocol on the Provisional Application of the Agreement Establishing an International Science and Technology Center, signed at Moscow on December 27, 1993 (hereinafter “the Provisional Application Protocol”);

ACKNOWLEDGING the need for the ISTC to minimize incentives to engage in activities that could result in the proliferation of WMD or related materials by supporting and cooperating in research and development activities for peaceful purposes of scientists and engineers in states with technologies, expertise, and related materials applicable to WMD, and the ISTC’s past contributions to preventing the proliferation of WMD and to promoting scientific cooperation among states;

REALIZING that the success of the ISTC requires strong support from governments, the European Union and the European Atomic Energy Community (hereinafter “EURATOM”), non-governmental organizations, foundations, academic and scientific institutions, and other inter-governmental and private sector organizations;

DESIRING that the ISTC continue its work in light of recent changes in membership of the ISTC;

DESIRING further to adapt the ISTC to conditions that have changed since the ISTC was founded so that ISTC activities provide impetus and support to participating scientists and engineers, including those with knowledge and skills applicable to WMD or their delivery systems (including dual-use knowledge and skills), in developing international scientific partnership, strengthening global security, and fostering economic growth through innovation; and

DECIDING, in order to accomplish the ISTC’s goals more effectively through scientific cooperation, to continue the ISTC by entering into this Agreement, based on the 1992 Agreement with revisions, and to supersede the Provisional Application Protocol;

HAVE AGREED AS FOLLOWS:

ARTICLE 1

(A)The ISTC, originally established by the 1992 Agreement as an inter-governmental organization, shall continue under the terms of this Agreement. Each Party shall facilitate, in its territory, the activities of the Center. In order to achieve its objectives, the Center shall have, in accordance with the laws and regulations of the Parties, the legal capacity to contract, to acquire and dispose of immovable and movable property, and to institute and respond to legal proceedings.

(B)As used in this Agreement, the following terms shall have the definitions provided in this Article:

(i)“Parties” shall mean, after entry into force of this Agreement, the signatories to this Agreement that have provided notification pursuant to Article 17(C) of this Agreement, and any and all states that have acceded to this Agreement pursuant to Article 13(B) of this Agreement;

(ii)personnel of the Center” shall mean natural persons who are employed by or working under contract with the Center, or who are assigned to or on temporary duty to the Center as agreed by the Center and one or more of the Parties;

(iii)“family members” shall mean spouses; unmarried dependent children under 21 years of age; unmarried dependent children under 23 years of age who are in full-time attendance as students at a post-secondary educational institution; and unmarried children who are physically or mentally disabled;

(iv)“activities” of the Center shall mean projects and other work conducted under the auspices of the Center, consistent with Article 2 of this Agreement;

(v)“project” of the Center shall mean a collaborative activity of a set duration conducted anywhere in the world that may include grants and/or equipment, and is subject to approval as described in Article 6 of this Agreement;

(vi)“consensus” of the Governing Board shall mean agreement of all Parties on the Governing Board that are participating and voting at a meeting at which a decision is taken, so long as a quorum is present, except as provided otherwise in this Agreement. The ISTC Statute, as provided for in Article 4 of this Agreement, shall define quorum and the permissible forms of Parties’ participation at meetings;

(vii)“Host State” shall mean a Party that has been designated as the Host State in accordance with Article 9(A) of this Agreement;

(viii)“dual-use technology, materials, and expertise” shall mean technology, materials, and expertise that have both commercial applications and proliferation applications, such as applications related to the development, production, use, or enhancement of WMD or their means of delivery;

(ix)“dual-use knowledge and skills” shall mean knowledge and skills applicable to the use of dual-use technology, materials, and expertise in the development, production, use, or enhancement of WMD or their means of delivery; and

(x)“related materials” shall mean materials, equipment, and technology covered by relevant multilateral treaties and arrangements, or included on national control lists, which could be used for the design, development, production, or use of WMD or their means of delivery.

ARTICLE 2

(A)The Center shall develop, approve, finance, and monitor activities for peaceful purposes, which are to be carried out at institutions and facilities located in the territories of the Parties. Projects may be conducted in states that are not Parties to this Agreement that have technologies, expertise, and related materials applicable to WMD in cases where those states have solicited such projects by written communication to the Governing Board and the Governing Board unanimously approves the conduct of such projects. Notwithstanding the foregoing, individuals who are nationals of non-Party states may be permitted to participate in activities conducted by the ISTC in states that are Parties to this Agreement.

(B)The objectives of the Center shall be:

(i)to promote the improvement of international mechanisms for the prevention of the proliferation of WMD and their delivery systems, as well as of technologies, materials, and expertise that are key elements directly related to the development, production, use, or enhancement of WMD or their delivery systems (including dual-use technology, materials, and expertise);

(ii)to give scientists and engineers with knowledge and skills applicable to WMD and their delivery systems, including dual-use knowledge and skills, opportunities for training and alternative employment where their knowledge and skills can be used for peaceful activities;

(iii)to promote a culture of security with respect to the handling and use of materials, equipment, and technology which could be used for the design, development, production, or use of WMD or their means of delivery; and

(iv)to contribute through its activities: to the development of international scientific partnership, strengthening global security, and fostering economic growth through innovation; to basic and applied research and technology development and commercialization, inter alia, in the fields of environment, energy, health, and nuclear, chemical, and biological safety and security; and to promoting the further integration of scientists with technologies, material, and expertise applicable to WMD into the international scientific community.

ARTICLE 3

In order to achieve its objectives, the Center is authorized to:

(i)promote and support, by use of funds or otherwise, activities in accordance with Article 2 of this Agreement;

(ii)monitor and audit Center activities in accordance with Article 8 of this Agreement;

(iii)establish appropriate forms of cooperation with, and receive funds or donations from, governments, the European Union and EURATOM, inter-governmental organizations, non-governmental organizations, private sector organizations, foundations, academic and scientific institutions, and related programs;

(iv)establish branch offices or information offices as appropriate in interested states that are Parties, or in the territory of a non-Party if the Governing Board unanimously approves the establishment of such an office in that non-Party’s territory; and

(v)engage in other activities within the scope of this Agreement as may be agreed upon by consensus of the Governing Board.

ARTICLE 4

(A)The Center shall have a Governing Board and a Secretariat, consisting of an Executive Director (who serves as the chief executive officer), Deputy Executive Director(s), and other personnel of the Center, in accordance with the Statute of the Center.

(B)The Governing Board shall be responsible for:

(i) determining the Center’s policy and its own rules of procedure;

(ii) providing overall guidance and direction to the Secretariat;

(iii) approving the Center’s operating budget;

(iv) governing the financial and other affairs of the Center, including approving procedures for the preparation of the Center’s budget, drawing up of accounts and auditing thereof;

(v) formulating general criteria and priorities for the approval of activities;

(vi) approving projects in accordance with Article 6 of this Agreement;

(vii) adopting the Statute and other implementing arrangements as necessary; and

(viii) other functions assigned to it by this Agreement or necessary for the implementation of this Agreement.

(C)Decisions of the Governing Board shall be by consensus.

(D)Each Party shall be represented by a single vote on the Governing Board and shall appoint no more than two representatives to the Governing Board.

(E)The Parties may establish a Scientific Advisory Committee, made up of representatives to be nominated by the Parties, to give to the Board expert scientific and other necessary professional advice; to advise the Board on the fields of research for peaceful purposes to be encouraged; and to provide any other advice that may be required by the Board.

(F)The Governing Board shall adopt a Statute in implementation of this Agreement. The Statute shall establish:

(i)the structure of the Secretariat including the duties and responsibilities of the Executive Director, Deputy Executive Directors, and other key staff;

(ii)the process for selecting, developing, approving, financing, carrying out, and monitoring activities;

(iii)procedures for the preparation of the Center’s budget, drawing up of accounts, and auditing thereof;

(iv)appropriate guidelines on intellectual property rights resulting from Center projects and on the dissemination of project results;

(v)procedures governing the participation of governments, the European Union and EURATOM, inter-governmental organizations, and non-governmental organizations in Center activities;

(vi)personnel policies; and

other arrangements necessary for the implementation of this Agreement.

ARTICLE 5

Inter-governmental and non-governmental organizations, or states that are not Parties, may be invited by the Governing Board to participate in Governing Board deliberations as observers, in a non-voting capacity.

ARTICLE 6

Each project proposal submitted for approval by the Governing Board shall be accompanied by the written concurrence of the state or states in which the work is to be carried out. In addition to the prior agreement of that state or those states, the approval of projects shall require the consensus of the Governing Board.

ARTICLE 7

(A)Projects approved by the Governing Board may be financed or supported by the Center, Parties, non-governmental organizations, foundations, academic and scientific institutions, inter-governmental organizations, and organizations in the private sector. Such financing and support of approved projects shall be provided on terms and conditions specified by those providing it, provided that any terms and conditions specified shall be consistent with this Agreement.

(B)Representatives of the Parties on the Governing Board and personnel of the Center Secretariat shall be ineligible for project funding and may not directly benefit from any project funds.

ARTICLE 8

(A)The Center shall have the right, within the states in which the activity is to be carried out:

(i)to examine, on site, Center activities, materials, supplies, use of funds, and related services and use of funds, upon notification by the Center or, in addition, as specified in a project agreement; and

(ii)to inspect or audit, upon its request, any records or other documentation in connection with Center projects, activities, and use of funds, wherever such records or documentation are located, during the period in which the Center provides the financing, and for a period thereafter as determined in a project agreement.

The written concurrence required in Article 6 of this Agreement shall include the agreement, of the state or states in which the project is to be carried out and the recipient institution, to provide the Center with access necessary for auditing and monitoring the project, as required by this paragraph.

(B)Each Party shall also have the rights stated in paragraph (A) of this Article, coordinated through the Center, with regard to projects it finances in whole or in part or projects that are carried out in its territory.

(C)If it is determined that the terms and conditions of a project have not been respected, the Center or a financing government or organization may, having informed the Governing Board of its reasons, terminate the project and take appropriate steps in accordance with the terms of the project agreement.

ARTICLE 9

(A)The Headquarters of the Center shall be located in the Republic of Kazakhstan and the Republic of Kazakhstan shall act as the Host State unless and until such time as: (i) the Republic of Kazakhstan submits written notification to the Governing Board of its desire to no longer serve as the Host State; (ii) another Party referred to in Article 13(A) of this Agreement or that accedes to this Agreement in accordance with Article 13(B) of this Agreement for the purpose of permitting the conduct by the ISTC of activities in the territory of such state submits written notification to the Governing Board requesting that it be designated as the successor Host State; (iii) the Governing Board decides by consensus to accept that Party’s request to be designated as the successor Host State; and (iv) the Party requesting the designation as the successor Host State submits written notification to the Governing Board confirming that it accepts designation as the successor Host State.

(B)By way of providing material support to the Center, the government of the Host State shall provide, at its own expense, a facility suitable for use by the Center, along with maintenance, utilities, and security for the facility. The government of the Host State and the ISTC may enter into an agreement specifying the terms and conditions on which the Host State shall provide material support and the facility for the Center.

(C)In the Host State, the Center shall have the status of a legal person and, in that capacity, shall be entitled to contract, to acquire and dispose of immovable and movable property, and to institute and respond to legal proceedings.

ARTICLE 10

In the Host State:

(i)

(a)funds received by the ISTC and any interest earned on those funds shall not be subject to taxation in the Host State;

(b)the Center, or any branch thereof, shall not be subject to any taxation on property that is subject to taxation under the tax laws of the Host State;

(c)commodities, supplies, and other property provided or utilized in activities of the Center may be imported into, exported from, or used in the Host State free from any tariffs, dues, customs duties, import taxes, value added taxes (VAT), and other similar taxes or charges. Commodities, supplies, and other immovable or movable property may be transferred or otherwise provided by the ISTC to legal entities (including but not limited to Host State scientific organizations) and possessed or used by the ISTC and/or the entities to which such items have been provided or transferred free from any tariffs, dues, customs duties, import taxes, VAT, property taxes, and similar taxes or charges;

(d)personnel of the Center who are not Host State nationals shall be exempt from payment of the income tax in the Host State for natural persons;

(e)funds received in connection with the Center’s projects by legal entities, including Host State scientific organizations, shall not be subject to taxation in the Host State;

(f)funds received by natural persons, in particular, by scientists and specialists, within the framework of the Center’s projects shall not be included in those persons’ total taxable income;

(ii)

(a)the Center, the Parties, governments, inter-governmental organizations, and non-governmental organizations shall have the right to move funds needed by the Center to carry out its activities, other than Host State currency, into or out of the Host State without restriction. Each shall have the right to so move only amounts not exceeding the total amount it moved into the Host State; and

(b)to finance the Center and its activities, the Center shall be entitled, for itself and on behalf of the entities referred to in subparagraph (ii)(a) of this Article, to sell foreign currency on the internal currency market of the Host State.

(iii) Personnel of non-Host State organizations taking part in any Center activity and who are not Host State nationals or permanent residents shall be exempt from the payment of any customs duties and charges upon personal or household goods imported into, exported from, or used in the Host State for the personal use of such personnel or members of their families.

ARTICLE 11

(A)In the Host State, the ISTC and its assets and property shall be immune from jurisdiction and execution except to the extent the ISTC has expressly waived immunity in a particular case.

(B)Privileges and immunities are accorded to the Center only for the purposes specified in this Agreement.

(C)The provisions of this Article shall not prevent compensation or indemnity available under applicable international agreements or national law of any state.

(D)Nothing in paragraph (A) of this Article shall be construed to prevent legal proceedings or claims against Host State nationals or permanent residents of the Host State.

ARTICLE 12

(A)Personnel of the Center and their family members present in the Host State shall be accorded by the Host State Government the following privileges and immunities:

(i)immunity from arrest, detention, and legal process, including criminal, civil, and administrative jurisdiction, in respect of words spoken or written and all acts performed by them in their official capacity;

(ii)exemption from any income, social security, or other taxation, duties or other charges, except those that are normally incorporated in the price of goods or paid for services rendered;

(iii)immunity from social security provisions;

(iv)immunity from immigration restrictions and from alien registration; and

(v)rights to import their furniture and effects, at the time of first taking up their post, free of any Host State tariffs, dues, customs duties, import taxes, and other similar taxes or charges and to export their furniture and effects, at the time of termination of their post, free of any Host State tariffs, dues, customs duties, export taxes, and other similar charges.

The provisions of subparagraph (i) of this Article shall not apply in respect of a civil action either: (a) arising out of a contract concluded by personnel of the Center in which the personnel did not contract expressly or impliedly as an agent of the Center; or (b) by a third party for damage arising from an accident in the Host State caused by a vehicle.

(B)Representatives of the Parties on the Governing Board, the Executive Director, and the Deputy Executive Directors shall be accorded by the Host State Government, in addition to the privileges and immunities listed in paragraph (A) of this Article, any additional privileges, immunities, exemptions, and facilities generally accorded by the Host State to the representatives of members and executive heads of international organizations in its territory.

(C)Nothing in this Agreement shall require the Host State Government to provide the privileges and immunities provided in paragraphs (A) and (B) of this Article to its nationals or its permanent residents.

(D)Nothing in this Agreement shall be construed to derogate from privileges, immunities, and other benefits granted under other agreements to persons described in paragraphs (A) and (B) of this Article.

ARTICLE 13

(A)The Republic of Armenia, Georgia, the Republic of Kazakhstan, the Kyrgyz Republic, and the Republic of Tajikistan shall be bound to comply with the obligations undertaken by the Host State in Articles 9(C), 10, 11, and 12 of this Agreement.

(B)Any state desiring to accede to this Agreement after its entry into force shall notify the Governing Board through the Executive Director. The Governing Board shall provide such a state with a certified copy of this Agreement through the Executive Director. Upon approval by the Governing Board, that state shall be permitted to accede to this Agreement. This Agreement shall enter into force for that state on the thirtieth (30th) day after the date on which the state deposits its instrument of accession with the Depositary. Any state with technology, expertise, or related materials applicable to WMD that accedes to this Agreement for the purpose, which shall be stated in its instrument of accession, of permitting the conduct by the ISTC of activities in the territory of such state shall, by acceding to this Agreement, be bound to comply with the obligations undertaken by the Host State in Articles 9(C), 10, 11, and 12 of this Agreement.

ARTICLE 14

(A)This Agreement shall be subject to review by the Parties two years after its entry into force. This review shall take into account the financial commitments and payments of the Parties.

(B)This Agreement may be amended by written agreement of the Parties, excluding any Party that has withdrawn or provided notification in accordance with paragraph (C) of this Article of its intent to withdraw from this Agreement. If a Party that has provided notification of withdrawal rescinds its withdrawal before it becomes effective, that Party shall be bound by any amendments to this Agreement that have become effective after the date that Party provided its notification of withdrawal.

(C)Any Party may withdraw from this Agreement no less than six months after providing written notification to the Depositary.

ARTICLE 15

(A)Any question or dispute relating to the application or interpretation of this Agreement shall be the subject of consultations between the Parties.

(B)If an issue is not resolved through consultations, all concerned Parties may jointly agree to submit that issue to another form of dispute resolution such as conciliation, mediation, or arbitration.

ARTICLE 16

Nothing in this Agreement is intended to interfere with the continuation of the ISTC as the inter-governmental organization originally established by the 1992 Agreement, including the operations of existing ISTC branch offices, nor affect the validity of any existing contracts, grants or other legal instruments or arrangements of the ISTC, except as specifically revised by this Agreement.

ARTICLE 17

(A)This Agreement shall be open for signature by the European Union and EURATOM, acting as one Party, Georgia, Japan, the Kingdom of Norway, the Kyrgyz Republic, the Republic of Armenia, the Republic of Kazakhstan, the Republic of Korea, the Republic of Tajikistan, and the United States of America.

(B)This Agreement shall be subject to ratification, acceptance, or approval. Instruments of ratification, acceptance, or approval shall be deposited with the Depositary.

(C)This Agreement shall enter into force on the date of receipt by the Depositary of the last instrument of ratification, acceptance, or approval from the states listed in paragraph (A) of this Article and the European Union and EURATOM, acting as one Party.

D)Upon entry into force, this Agreement shall supersede the Provisional Application Protocol. At that time, the Parties shall cease to provisionally apply the 1992 Agreement.

ARTICLE 18

The Center Secretariat shall be the Depositary of this Agreement. All notifications to the Depositary shall be addressed to the Center’s Executive Director. The Depositary shall fulfill the duties in accordance with Article 77 of the Vienna Convention on the Law of Treaties of May 23, 1969.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Agreement.

Done at [PLACE] on [DATE], in the Armenian, English, French, Georgian, German, Japanese, Kazakh, Korean, Kyrgyz, Norwegian, Russian, and Tajik languages, all language texts being equally authentic. In the case of a discrepancy between two or more language versions, the English language text shall prevail.

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