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Air Transport Agreement between the Government of Canada and the Government of the Federal Republic of Germany [1975] CATSer 3 (18 February 1975)

E100060 - CTS 1975 No. 4

AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY

I

AGREED MINUTE

Delegations representing the Federal Republic of Germany and Canada met in Bonn between September 18 and October 4, 1972, in Ottawa between November 29 and December 1, 1972, and in Bonn on December 21 and 22, 1972, with a view to reaching an agreement between the Federal Republic of Germany and Canada for Air Services between and beyond their respective territories and agreed:

1. On the text of an Air Transport Agreement, Annex 1⁽¹⁾ of this Agreed Minute.

2. On the text of an Exchange of Notes specifying the Routes to be operated pursuant to the Air Transport Agreement, Annex 2⁽²⁾ of this Agreed Minute.

3. On the text of an Exchange of Notes providing for the provisional entry into force of the Agreements specified in Paragraphs 1 and 2 above, Annex 3⁽³⁾ of this Agreed Minute.

4. That under the status quo, referred to in Article 9 (5) of the Air Transport Agreement the designated airlines of each Contracting Party may operate services on the agreed Routes up to the maximum operated previously by the designated airline or airlines of either Contracting Party.

5. That exemption from duties and taxes on advertising material shall be granted under the terms of the applicable regulations of the Federal Republic of Germany and of Canada as set out in Annex 4⁽⁴⁾ of this Agreed Minute.

6. That technical Working Groups on Statistics of both Contracting Parties will meet by March 1, 1973 to agree on a common format and other details for the regular exchange of statistics provided for in Article 10 of the Agreement, and that the agreed statistical exchange programme will be developed and operational by April 1, 1973.

7. That the long-established services between Montreal and Germany shall be maintained by their designated airlines in a manner and at a level that, following consultation between the designated airlines under Article 9(5) of the Air Transport Agreement, and approved by the Aeronautical Authorities, ensures that the needs of the market and the convenience of the travelling public continue to be fully met.

8. Profits accruing to a resident of one of the territories of the Contracting Parties from an enterprise which is managed and controlled in that territory from operating aircraft shall be exempt from tax in the territory of the other Contracting Party by virtue of Article V of the Convention between the Federal Republic of Germany and Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income of 4th June 1956 or any convention replacing this Convention. If, however, the Convention of 4th June 1956 or any convention replacing this Convention is terminated and the provision on taxation of air transport enterprises is affected by this termination, the competent authorities of the Contracting Parties will endeavour to reach as soon as possible a reciprocal agreement in order to avoid double taxation of the profits of their air transport enterprises.

9. That French and German texts of the Agreements specified in Paragraphs 1, 2 and 3 (Annexes 1, 2 and 3) and of Annex 4 shall be prepared and shall be equally authentic as envisaged by Article 21 of the Air Transport Agreement.

10. That this Agreed Minute and the texts annexed hereto shall be submitted for the approval of the Government of the Federal Republic of Germany and the Government of Canada, which will be confirmed by the Exchange of the Notes set out in Annex 5⁽⁵⁾.

DONE at Bonn this 22nd day of December 1972 in duplicate.

J. C. Langley

Head, Canadian Delegation

G.-W. Rehm

Head, German Delegation

⁽¹⁾ Part II
⁽²⁾ Parts III & IV
⁽³⁾ Parts V & VI
⁽⁴⁾ Parts VII & VIII
⁽⁵⁾ Not Published

AGREED MINUTE

During the Air Transport Agreement negotiations in Ottawa and Bonn between September and December, 1972, Delegations representing the Federal Republic of Germany and Canada agreed:

1. The Government of the Federal Republic of Germany undertakes to agree that Berlin (West) shall be treated as though falling under Section II, column 3 of the Route Schedule as soon and in so far as the requirements which lie outside the competence of the Federal Republic of Germany have been met.

2. That Berlin-Schoenefeld shall not be included as a point beyond the territory of the Federal Republic of Germany.

DONE at Bonn this 22nd day of December 1972

J. C. Langley

Head, Canadian Delegation

G.-W. Rehm

Head, German Delegation

II

AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY

Canada and the Federal Republic of Germany, hereinafter referred to as the Contracting Parties, both being Parties to the Convention on International Civil Aviation opened for signature at Chicago, on the 7th day of December, 1944, and desiring to conclude an Agreement on air transport between and beyond their respective territories have agreed on the following:

ARTICLE 1

For the purpose of this Agreement, unless otherwise stated:

(a) "Aeronautical Authorities" means, in the case of Canada, the Minister of Transport and the Canadian Transport Commission and, in the case of the Federal Republic of Germany, the Federal Minister of Transport, or, in both cases, any other authority or person empowered to perform the functions now exercised by the said authorities;

(b) "Agreed services" means scheduled air services for the transport of passengers, mail and cargo on the specified routes;

(c) "Convention" means the Convention on International Civil Aviation opened for signature at Chicago on the 7th day of December, 1944;

(d) "Designated airline" means an airline which has been designated and authorized in accordance with Article 4 of this Agreement;

(e) "Territory", "Air Service", "International Air Service", "Airline" and "Stop for non-traffic purposes" have the meanings respectively assigned to them in Articles 2 and 96 of the Convention.

ARTICLE 2

1. Each Contracting Party grants to the other Contracting Party the following rights for the conduct of international air services by the designated airline or airlines:

(a) to fly without landing across the territory of the other Contracting Party;

(b) to make stops in the said territory for non-traffic purposes; and

(c) to make stops in the said territory at the points named on the routes specified in accordance with paragraph 2 of this Article for the purpose of taking up and discharging international traffic in passengers, mail and cargo.

2. The routes over which the designated airlines of the Contracting Parties will be authorized to operate international air services referred to in paragraph 1(c) of this Article shall be specified in an Exchange of Notes between the Governments of the Contracting Parties.

ARTICLE 3

Each Contracting Party shall have the right to designate, by diplomatic note, an airline or airlines to operate the agreed services on any route specified in the Exchange of Notes for such a Contracting Party and to substitute another airline for that previously designated.

ARTICLE 4

1. Following receipt of a notice of designation pursuant to Article 3, the aeronautical authorities of the other Contracting Party shall, consistent with its laws, regulations and procedures, grant with a minimum of delay to an airline so designated the appropriate authorizations to operate the agreed services for which the airline has been designated.

2. Upon receipt of such authorizations the airline or airlines may begin at any time to operate the agreed services, partly or in whole, provided that the tariffs established in accordance with the provisions of Article 12 of this Agreement are in force in respect of such services.

ARTICLE 5

1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in Article 4 with respect to an airline designated by the other Contracting Party, to revoke such authorizations or impose on them conditions, temporarily or permanently:

(a) in the event of failure by such airline to qualify before the aeronautical authorities of that Contracting Party under the laws and regulations applied by these authorities in conformity with the Convention;

(b) in the event of failure by such airline to comply with the laws and regulations of that Contracting Party;

(c) in the event that they are not satisfied that substantial ownership and effective control of the airline are vested in the Contracting Party designating the airline or its nationals; and

(d) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations with the other Contracting Party. Unless otherwise agreed by the Contracting Parties, such consultations shall begin within a period of sixty (60) days from the date the other Contracting Party receives the request.

ARTICLE 6

1. The laws, regulations and procedures of one Contracting Party relating to the admission to or departure from its territory of aircraft engaged in international air navigation or to the operation and navigation of such aircraft shall be complied with by a designated airline of the other Contracting Party upon entrance into, departure from and while within the said territory.

2. The laws and regulations of a Contracting Party respecting entry, clearance, transit, immigration, passports, customs and quarantine shall be complied with by a designated airline of the other Contracting Party and its crews, passengers, mail and cargo upon transit of, admission to, departure from and while within the territory of such a Contracting Party.

ARTICLE 7

1. Certificates of airworthiness, certificates of competency and licences issued or rendered valid by one Contracting Party and still in force, shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the routes specified in the Exchange of Notes, provided that such certificates or licences were issued or rendered valid pursuant to and in conformity with the standards established under the Convention. Each Contracting Party reserves the right, however, to refuse to recognize, for the purpose of flights above its own territory, 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 referred to in paragraph 1 above, issued by the aeronautical authorities of one Contracting Party to any person or designated airline operating the agreed services on the routes specified in the Exchange of Notes, should permit a difference from the standards established under the Convention, and which difference has been filed with the International Civil Aviation Organization, the aeronautical authorities of the other Contracting Party may request consultations with the aeronautical authorities of that Contracting Party with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach a satisfactory agreement in matters regarding flight safety will constitute grounds for the application of Article 5; in other cases Article 17 applies.

ARTICLE 8

1. The charges imposed in the territory of either Contracting Party for the use of airports and other aviation facilities on the aircraft of a designated airline of the other Contracting Party shall not be higher than those imposed on aircraft of a national airline engaged in similar international air services.

2. Neither of the Contracting Parties shall give a preference to its own or any other airline over an airline of the other Contracting Party in the application of its regulations concerning customs, immigration, quarantine and the use of facilities under its control.

ARTICLE 9

1. There shall be fair and equal opportunity for the airlines of both Contracting Parties to operate the agreed services on the specified routes between and beyond their respective territories.

2. In operating the agreed services, the airlines of each Contracting Party shall take into account the interests of the airlines of the other Contracting Party so as not to affect unduly the services which the latter provide on the whole or part of the same route.

3. The agreed services provided by the designated airline or airlines of the Contracting Parties shall bear reasonable relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objectives the provisions, at a reasonable load factor, of capacity adequate to carry the current and reasonably anticipated requirements for the carriage of passengers, cargo and mail between the territories of the Contracting Parties.

4. Provision for the carriage of passengers, cargo and mail both taken up and discharged at points on the specified routes in the territories of States other than that designating the airline shall be made in accordance with the general principle that capacity shall be related to:

(a) traffic requirements to and from the territory of the Contracting Party which has designated the airline;

(b) traffic requirements of the area through which the airline passes after taking account of other transport services established by airlines of the States comprising the area; and

(c) the requirements of through airline operation.

5. In order to enable the designated airlines of the Contracting Parties to enjoy fair and equal opportunities, and to secure a balanced participation by the designated airlines in the traffic potential between their respective territories, the Contracting Parties have agreed that the capacity to be provided, as well as the frequency of services to be operated and the type of aircraft to be used by the designated airlines on the agreed routes shall be agreed between the designated airlines in accordance with the principles laid down in paragraphs 1 - 4 above. In the absence of an agreement between the airlines they shall be required to submit the issue to their aeronautical authorities which will endeavour to resolve the problem in accordance with Article 15 of this Agreement. Pending an arrangement either at the airline level or between the aeronautical authorities the status quo shall be maintained.

ARTICLE 10

The aeronautical authorities of both Contracting Parties shall exchange, at regular intervals and in a format to be agreed upon between these authorities, statements of statistics that include all information required to determine the amount of traffic carried over the routes specified in the Exchange of Notes and the origins and destinations of such traffic.

ARTICLE 11

1. Aircraft operated by a designated airline of either Contracting Party and entering, departing again from, or flying across the territory of the other Contracting Party, as well as fuel, lubricants, spare parts including engines, regular equipment and aircraft stores on board such aircraft, shall be, on a basis of reciprocity, exempt from customs duties and other charges levied on the occasion of importation, exportation or transit of goods. This shall also apply to goods on board the aircraft consumed during the flight across the territory of the latter Contracting Party.

2. Fuel, lubricants, aircraft stores, spare parts and regular equipment, temporarily imported into the territory of either Contracting Party, there to be immediately or after storage installed in or otherwise taken on board the aircraft of a designated airline of the other Contracting Party, or to be otherwise exported again from the territory of the former Contracting Party, shall be exempt from the customs duties and other charges mentioned in paragraph 1 of this Article.

3. Fuel and lubricants taken on board the aircraft of a designated airline of either Contracting Party in the territory of the other Contracting Party and used in international air services, shall be exempt from the customs duties and other charges mentioned in paragraph 1 of this Article, as well as from any other special consumption charges.

4. Each Contracting Party may keep the goods mentioned in paragraphs 1-3 of this Article under customs supervision.

5. To the extent that no duties or other charges are imposed on goods mentioned in paragraphs 1-3 of this Article, such goods shall not be subject to any economic prohibitions or restrictions on importation, exportation or transit that may otherwise be applicable.

ARTICLE 12

1. The tariffs on any agreed service shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit, characteristics of route and, where it is deemed suitable, the tariffs of other airlines for any part of the specified route. These tariffs shall be fixed in accordance with the following provisions of this Article.

2. The tariffs referred to in paragraph 1 of this Article shall be agreed upon between the designated airlines of the Contracting Parties; such agreement shall be reached, whenever possible, through the rate-fixing procedures of the International Air Transport Association.

3. The tariffs so agreed shall be submitted to the aeronautical authorities of the Contracting Parties at least forty-five (45) days before the proposed rate of their introduction; in special cases, a shorter period may be accepted by the aeronautical authorities. If within thirty (30) days from the date of submission the aeronautical authorities of one Contracting Party have not notified the aeronautical authorities of the other Contracting Party that they are dissatisfied with the tariff submitted to them, such tariff shall be considered to be acceptable and shall come into effect on the expiration of the forty-five (45) day period mentioned above. In the event that a shorter period for the submission of a tariff is accepted by the aeronautical authorities, they may also agree that the period for giving notice of dissatisfaction be less than thirty (30) days.

4. If a tariff cannot be established in accordance with the provisions of paragraph 2 above, or, if during the period applicable in accordance with paragraph 3 above a notice of dissatisfaction has been given, the aeronautical authorities of the Contracting Parties shall endeavour to determine the tariff by agreement between themselves.

5. If the aeronautical authorities cannot agree on any tariff submitted to them under paragraph 3 of this Article or on the determination of any tariff under paragraph 4, the dispute shall be settled in accordance with the provisions of Article 17 of the present Agreement.

6. (a) No tariff shall come into force if the aeronautical authorities of either Contracting Party are dissatisfied with it except under the provisions of paragraph 3 of Article 17 of the present Agreement.

(b) When tariffs have been established in accordance with the provisions of this Article, those tariffs shall remain in force until new tariffs have been established in accordance with the provisions of this Article.

ARTICLE 13

Each Contracting Party grants to the airlines of the other Contracting Party the right of free transfer, in conformity with the OECD’s Code of Liberalization of Current Invisible Operations, signed by both Contracting Parties, of funds obtained by each in the normal course of its operations. Such transfers shall be effected on the basis of the foreign exchange market rates for current payments prevailing at the time of the transfer and shall not be subject to any charges except those normally collected by banks for such transactions.

ARTICLE 14

Each airline designated by either Contracting Party may maintain and employ its own personnel for its business transactions in the airports and cities in the territory of the other Contracting Party where it intends to maintain an agency; work permits shall not be required. If a designated airline refrains from establishing its own organization at airports in the territory of the other Contracting Party, it shall have its work performed, as far as possible, by the personnel of such airports-or of an airline designated by the other Contracting Party.

ARTICLE 15

In a spirit of close co-operation, the aeronautical authorities of the Contracting Parties shall consult each other from time to time on questions concerning the interpretation of, the implementation of, and satisfactory compliance with, the provisions of this Agreement and the Schedule.

ARTICLE 16

If either of the Contracting Parties considers it desirable to modify any provision of this Agreement, it may request consultations with the other Contracting Party. Such consultations, which would be between the appropriate authorities and which may be through discussion or by correspondence, shall begin within a period of sixty (60) days from the date of the request. Any modification agreed pursuant to such consultations shall come into force when the Contracting Parties will have notified each other by an exchange of notes that they have obtained whatever internal approval may be required to give effect to this modification.

ARTICLE 17

1. If any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall in the first place endeavour to settle it by negotiations.

2. If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision to some person or body, or either Contracting Party may submit the dispute for decision to a Tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two arbitrators. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party from the other of a notice through diplomatic channels requesting arbitration of the dispute and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate an arbitrator within the period specified, or if the third arbitrator is not appointed within the period specified, the President of the Council of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In all cases, the third arbitrator shall be a national of a third State, shall act as President of the Tribunal and shall determine the place where arbitration will be held.

3. The Contracting Parties undertake to comply with any decision given under paragraph 2 of this Article.

4. The expenses of the Tribunal will be shared equally between the Contracting Parties.

ARTICLE 18

Either Contracting Party may at any time give notice in writing through diplomatic channels to the other Contracting Party of its decision to terminate this Agreement; such notice shall be communicated simultaneously to the International Civil Aviation Organization. The Agreement shall terminate one (1) year after the date of receipt of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgement of receipt by the other Contracting Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE 19

1. The present Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.

2. The Government of Canada undertakes to make the necessary registration arrangements.

ARTICLE 20

In the event of a general multilateral air convention accepted by the Contracting Parties entering into force, the provisions of such convention shall prevail. Any discussions with a view to determining the extent to which the present Agreement is terminated, superseded, amended or supplemented by the provisions of the multilateral convention, shall take place in accordance with Article 16 of the present Agreement.

ARTICLE 21

The Agreement will enter into force from the date when the Contracting Parties will have notified each other by Exchange of Notes that they have obtained whatever internal approval may be required to give effect to this Agreement.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments have signed the Agreement.

DONE in two copies at Ottawa this 26th day of March, 1973, in the English, French and German languages, each version being equally authentic.

Mitchell Sharp

FOR CANADA

Rupprecht von Keller

FOR THE FEDERAL REPUBLIC OF GERMANY

III

The Secretary of State for External Affairs of Canada to the Ambassador of the Federal Republic of Germany

OTTAWA, March 26, 1973

No. FLA-182

His Excellency Dr. Rupprecht von Keller,
Ambassador of the Federal Republic of Germany,
Ottawa

Excellency,

I have the honour to refer to Paragraph 2 of Article 2 of the Air Transport Agreement between the Federal Republic of Germany and Canada signed at Ottawa on March 26, 1973.

In the negotiations which have been conducted in connection with the above mentioned Agreement, it has been agreed that Air Services may be operated on the Routes specified in the following Route Schedule:

I. Routes to be operated by airlines designated by the Federal Republic of Germany:

II. Routes to be operated by airlines designated by Canada:

(1) No Fifth Freedom traffic rights shall be exercised between any of the intermediate points and points in the territory of the other Contracting Party.

(2) No Fifth Freedom traffic rights shall be exercised between any of the points in Canada and points beyond except subject to agreement pursuant to the consultative procedures in Article 15 of the Air Transport Agreement.

(3) (a) It is understood that only those points which are served by the designated German airline or airlines may be served with Fifth Freedom traffic rights and that the frequency of such service to any point shall not exceed the frequency of service by the designated German airline or airlines.

(b) For any period during which the Canadian designated airline or airlines serve more than one point beyond the territory of the Federal Republic of Germany with Fifth Freedom traffic rights, one of the following alternatives shall apply, at Canadian option. The Canadian designated airline or airlines may operate:

(i) one route to an unlimited number of points beyond the territory of the Federal Republic of Germany up to a maximum of 3 weekly services;

or

(ii) not more than 3 routes to a total of not more than 6 points beyond the territory of the Federal Republic of Germany up to an overall maximum of 6 weekly services.

(c) No Fifth Freedom traffic rights shall be exercised between any of the points in the Federal Republic of Germany and points beyond in Africa, south of the equator.

(d) Any increase in frequency of Fifth Freedom service above that specified in this footnote shall be subject to the consultative procedures in Article 9(5) of the Air Transport Agreement.

III. A designated airline may, if it so desires, omit one or more of the points on the specified routes, provided that the point of origin of such a route lies in the territory of the Contracting Party that has designated the airline.

IV. It is also understood that the airline or airlines designated by each Contracting Party shall enjoy the privilege of carrying into and out of the territory of the other Contracting Party, with stopover privileges, in-transit traffic originating in or destined for points in third countries.

I have the honour to inform your Excellency that the Government of Canada agrees with the above Route Schedule. I would be grateful if you would inform me whether the Government of the Federal Republic of Germany also agrees with this Route Schedule. If this should be the case, the present Note and your reply shall constitute an arrangement between our Governments.

Please accept, Excellency, the renewed assurances of my highest consideration.

Mitchell Sharp

Secretary of State for External Affairs

IV

The Ambassador of the Federal Republic of Germany to the Secretary of State for External Affairs of Canada

OTTAWA, March 26, 1973

No. 29/73

The Honourable Mitchell Sharp, P.C.,
Secretary of State for External Affairs
Ottawa

Excellency,

I have the honour to refer to your Note No. FLA-182 of March 26, 1973 which reads as follows:

(See Canadian Note No. FLA-182 of March 26, 1973)

I have the honour to inform you that the Government of the Federal Republic of Germany also agrees with this Route Schedule. Your Note and this reply shall be regarded as constituting an arrangement between the Government of Canada and the Federal Republic of Germany.

Accept, Excellency, the renewed assurances of my highest consideration.

Rupprecht Von Keller

V

The Secretary of State for External Affairs of Canada to the Ambassador of the Federal Republic of Germany

OTTAWA, March 26, 1973

No. FLA-183

His Excellency Dr. Rupprecht von Keller
Ambassador of the Federal Republic of Germany
Ottawa

Excellency,

I have the honour to refer to the Air Transport Agreement between the Federal Republic of Germany and Canada and to the Exchange of Notes specifying the Routes which may be operated under that Agreement both signed at Ottawa on March 26, 1973.

I have the honour to propose that, pending the entry into force of the Agreement referred to above, the Aeronautical authorities of the Federal Republic of Germany and Canada shall act to the extent compatible with legislation and regulations of both our countries, as if the arrangements contained in the Agreement had entered into force on the date of signature.

If the Government of the Federal Republic of Germany agrees to the above proposal, I have the honour to suggest that the present Note and your Note in reply shall constitute an arrangement between our two Governments.

Accept, Excellency, the renewed assurances of my highest consideration.

Mitchell Sharp

Secretary of State for External Affairs

VI

The Ambassador of the Federal Republic of Germany to the Secretary of State for External Affairs of Canada

OTTAWA, March 26, 1973

No. 30/73

The Honourable Mitchell Sharp, P.C.,
Secretary of State for External Affairs,
Ottawa

Excellency,

I have the honour to refer to your Note No. FLA-183 of March 26, 1973, which reads as follows:

(See Canadian Note No. FLA-183 of March 26, 1973)

I have the honour to inform you that the arrangement proposed in your Note meets with the approval of the Government of the Federal Republic of Germany and that your Note and the present Note in reply shall constitute an arrangement between our two Governments.

Accept, Excellency, the renewed assurances of my highest consideration.

Rupprecht Von Keller

VII

APPLICABLE PROVISIONS OF THE FEDERAL REPUBLIC OF GERMANY
RELATING TO THE TAX FREE AND DUTY FREE IMPORTATION OF ADVERTISING MATERIAL

The following advertising media are admitted free of duty and taxes, provided that they are imported free of charge and are not destined to be sold within the German Customs territory:

1. printed advertising material, including unframed photographs;

2. lists and year-books of foreign hotels published or sponsored by official, or officially recognized, foreign tourist agencies;

3. leaflets, booklets or similar printed matter dealing with import taxes and duties, with provisions on external trade, with postal, transport and traffic legislation and the like, as well as general maps and plans, all of which having been published as information material by foreign authorities or by official, or officially recognized, foreign tourist agencies;

4. advertising articles distinguished from normal commercial goods by their appearance, nature or quantity; they will not be considered so distinguished if marked in a way which does not materially impair their normal use as commercial goods.

Exemption from duties and taxes of the printed advertising material referred to under sub-paragraph 1 above, and of advertising articles referred to under subparagraph 4 above, will be subject to the conditions that their character as advertising media is evident and that their essential purpose is to encourage the purchase or hire of goods produced outside the German customs territory or the purchase of foreign securities or to advertise foreign transport enterprise, banks or insurance companies or to promote travel abroad.

Exemption from duties and taxes will extend to foreign enterprises’ instructions, price lists and timetables which chiefly refer to services or to goods produced abroad, and which are not destined to be sold in the German customs territory.

Printed forms for exhibitions or fairs or for services of foreign tourist agencies and hotels will likewise be exempt from duties and taxes if they are destined for distribution free of charge to users of foreign transport enterprises or if they are supplied free of charge to travel or transport enterprises.

These exemptions may be suppressed or restricted in relation to countries not granting reciprocity.

VIII

APPLICABLE REGULATIONS OF CANADA RELATING TO THE TAX FREE AND
DUTY FREE IMPORTATION OF ADVERTISING MATERIAL

Printed advertising matter, including folders, brochures, calendars, maps, posters, window transparencies and unframed photographs, also price lists and timetables issued by the airline or airlines of the Federal Republic of Germany are entitled to duty-free entry under Tariff Item 17205-1.

If they are furnished without charge for free distribution they are also exempt from the consumption or sales tax.

Ticket booklets, baggage tags and printed forms issued by the same organization and furnished to agents in Canada without charge are dealt with as being of no commercial value.