provided that (i) all participants in such arrangements hold the
appropriate authority and (ii) the arrangements meet the condi-
tions prescribed under the laws and regulations normally applied
by the Parties to the operation or holding out of international
air transportation.
8. The airlines of each Party shall be entitled to enter into
franchising or branding arrangements with companies, includ-
ing airlines, of either Party or third countries, provided that the
airlines hold the appropriate authority and meet the conditions
prescribed under the laws and regulations normally applied by
the Parties to such arrangements. Annex 5 shall apply to such
arrangements.
9. The airlines of each Party may enter into arrangements for
the provision of aircraft with crew for international air transpor-
tation with:
(a) any airlines or airlines of the Parties;
and
(b) any airlines or airlines of a third country;
provided that all participants in such arrangements hold the
appropriate authority and meet the conditions prescribed under
the laws and regulations normally applied by the Parties to such
arrangements. Neither Party shall require an airline of either Party
providing the aircraft to hold traffic rights under this Agreement
for the routes on which the aircraft will be operated.
10. Notwithstanding any other provision of this Agreement,
airlines and indirect providers of cargo transportation of the Par-
ties shall be permitted, without restriction, to employ in connec-
tion with international air transportation any surface
transportation for cargo to or from any points in the territories
of the Parties, or in third countries, including transport to and
from all airports with customs facilities, and including, where
applicable, the right to transport cargo in bond under applicable
laws and regulations. Such cargo, whether moving by surface or
by air, shall have access to airport customs processing and facili-
ties. Airlines may elect to perform their own surface transporta-
tion or to provide it through arrangements with other surface
carriers, including surface transportation operated by other air-
lines and indirect providers of cargo air transportation. Such
inter-modal cargo services may be offered at a single, through
price for the air and surface transportation combined, provided
that shippers are not misled as to the facts concerning such
transportation.
Article 11
Customs duties and charges
1. On arriving in the territory of one Party, aircraft operated
in international air transportation by the airlines of the other
Party, their regular equipment, ground equipment, fuel, lubri-
cants, consumable technical supplies, spare parts (including
engines), aircraft stores (including but not limited to such items
of food, beverages and liquor, tobacco and other products des-
tined for sale to or use by passengers in limited quantities during
flight), and other items intended for or used solely in connection
with the operation or servicing of aircraft engaged in interna-
tional air transportation shall be exempt, on the basis of reci-
procity, from all import restrictions, property taxes and capital
levies, customs duties, excise taxes, and similar fees and charges
that are (a) imposed by the national authorities or the European
Community, and (b) not based on the cost of services provided,
provided that such equipment and supplies remain on board the
aircraft.
2. There shall also be exempt, on the basis of reciprocity, from
the taxes, levies, duties, fees and charges referred to in para-
graph 1 of this Article, with the exception of charges based on
the cost of the service provided:
(a) aircraft stores introduced into or supplied in the territory of
a Party and taken on board, within reasonable limits, for use
on outbound aircraft of an airline of the other Party engaged
in international air transportation, even when these stores
are to be used on a part of the journey performed over the
territory of the Party in which they are taken on board;
(b) ground equipment and spare parts (including engines) intro-
duced into the territory of a Party for the servicing, mainte-
nance, or repair of aircraft of an airline of the other Party
used in international air transportation;
(c) fuel, lubricants and consumable technical supplies intro-
duced into or supplied in the territory of a Party for use in
an aircraft of an airline of the other Party engaged in inter-
national air transportation, even when these supplies are to
be used on a part of the journey performed over the terri-
tory of the Party in which they are taken on board;
and
(d) printed matter, as provided for by the customs legislation of
each Party, introduced into or supplied in the territory of
one Party and taken on board for use on outbound aircraft
of an airline of the other Party engaged in international air
transportation, even when these stores are to be used on a
part of the journey performed over the territory of the Party
in which they are taken on board.
25.5.2007
EN Official Journal of the European Union L 134/11