Protocol 6 To Third Acp-Eec Convention On The Tax And Customs Arrangements Applicable In The Acp States To Contracts Financed By The Community
Source: Unofficial Text, http://www.acpsec.org/en/conventions/lome3e.htm, accessed February 15, 2006
Article 1
1. The ACP states shall apply to contracts financed by Community tax and customs arrangements no less favourable than those applied vis-a-vis the most-favoured State or most favoured international development organisation. For the purpose of applying the first subparagraph no, account shall be taken of arrangements other developing countries.
2. Subject to paragraph 1, the ACP States shall apply to cc tracts financed b y the Community the arrangements laid dot in Articles 2 to 12.
Article 2
Contracts final by the Community shall not be subject the beneficiary ACP State to stamp or registration duties fiscal charges have equivalent effect, whether such charge 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 State This formality may entail the collection of fees which correspond to payment for the service provided and which do n' exceed the cost o f 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 beneficial ACP State.
2. Profits arising 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 cc secluded on the basis of the ex-works price of the supplies in question, to which shall be added the internal fiscal charges apply in the ACP State to those supplies.
3. The exemption shall be expressly provided for in the text of the contract.
Article 5
Fuels, lubricants and hydrocarbon binders and. all materials used in the performance of a work financed by the Community shall be deemed to purchased on the local market and shall be subject fiscal rules applicable under the national legislation in force in the beneficiary ACP State.
Article 6
Enterprises which must import professional equipment in order to carry out works contracts shall, if they so benefit from the system of temporary admission as 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 temporarily admitted into the beneficiary ACP State free of fiscal, import and customs duties and of other - having equivalent effect where these duties and charges do not constitute remuneration for services rendered.
Article 8
1. Personal and household effects imported for per; by natural persons, other than those recruited locally in carrying out tasks defined in a study, inspection or supervision contract shall be exempt from customs duties, taxes and other fiscal charges having equivalent within the limit of the national legislation of the beneficiary ACP State.
2. These provisions shall also apply to members of families of the persons referred to in paragraph 1.
Article 9
1. The Commission delegate and the staff appointed the delegations, with the exception of staff recruited local 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 net local duties or fiscal charges on the interest, commission and amortisation due on assistance given by the Community in the form of special loans, subordinated or conditional through risk capital or loans from the own resources Bank, as referred to in Articles 197 and 199 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 provisions of this Protocol shall apply to the performance of all contracts financed by the Community and concluded subsequent to the entry into force of the Convention.
