AGREEMENT ON TRADE IN CIVIL AIRCRAFT

PREAMBLE

Signatories¹to the Agreement on Trade in Civil Aircraft, hereinafter referred to as "this Agreement";

Notingthat Ministers on 12-14 September 1973 agreed the Tokyo Round of Multilateral Trade Negotiations should achieve the expansion and ever-greater liberalization of world trade through,inter alia, the progressive dismantling of obstacles to trade and the improvement of the international framework for the conduct of world trade;

Desiringto achieve maximum freedom of world trade in civil aircraft, parts and related equipment, including elimination of duties, and to the fullest extent possible, the reduction or elimination of trade restricting or distorting effects;

Desiringto encourage the continued technological development of the aeronautical industry on a world-wide basis;

Desiringto provide fair and equal competitive opportunities for their civil aircraft activities and for their producers to participate in the expansion of the world civil aircraft market;

Being mindfulof the importance in the civil aircraft sector of their overall mutual economic and trade interests;

Recognizingthat many Signatories view the aircraft sector as a particularly important component of economic and industrial policy;

Seekingto eliminate adverse effects on trade in civil aircraft resulting from governmental support in civil aircraft development, production, and marketing while recognizing that such governmental support, of itself, would not be deemed a distortion of trade;

Desiringthat their civil aircraft activities operate on a commercially competitive basis, and recognizing that government-industry relationships differ widely among them;

Recognizingtheir obligations and rights under the General Agreement on Tariffs and Trade, hereinafter referred to as "the GATT", and under other multilateral agreements negotiated under the auspices of the GATT;The term "Signatories" is hereinafter used to mean Parties to this Agreement.

Recognizingthe need to provide for international notification, consultation, surveillance and dispute settlement procedures with a view to ensuring a fair, prompt and effective enforcement of the provisions of this Agreement and to maintain the balance of rights and obligations among them;

Desiringto establish an international framework governing conduct of trade in civil aircraft;

Hereby agreeas follows:

Article 1

Product Coverage

1.1This Agreement applies to the following products:

(a)all civil aircraft,

(b)all civil aircraft engines and their parts and components,

(c)all other parts, components, and sub-assemblies of civil aircraft,

(d)all ground flight simulators and their parts and components,

whether used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification or conversion of civil aircraft.

1.2For the purposes of this Agreement "civil aircraft" means (a) all aircraft other than military aircraft and (b) all other products set out in Article 1.1 above.

Article 2

Customs Duties and Other Charges

2.1Signatories agree:

2.1.1to eliminate by 1 January 1980, or by the date of entry into force of this Agreement, all customs duties and other charges¹of any kind levied on, or in connection with, the importation of products, classified for customs purposes under their respective tariff headings listed in the Annex, if such products are for use in a civil aircraft and incorporation therein, in the course of its manufacture, repair, maintenance, rebuilding, modification or conversion;"Other charges" shall have the same meaning as in Article II of the GATT.

2.1.2 to eliminate by 1 January 1980, or by the date of entry into force of this Agreement, all customs duties and other charges¹of any kind levied on repairs on civil aircraft;

2.1.3to incorporate in their respective GATT Schedules by 1 January 1980, or by the date of entry into force of this Agreement, duty-free or duty-exempt treatment for all products covered by Article 2.1.1 above and for all repairs covered by Article 2.1.2 above.

2.2Each Signatory shall: (a) adopt or adapt an end-use system of customs administration to give effect to its obligations under Article 2.1 above; (b) ensure that its end-use system provides duty-free or duty-exempt treatment that is comparable to thetreatment provided by other Signatories and is not an impediment to trade; and (c) inform other Signatories of its procedures for administering the end-use system.

Article 3

Technical Barriers to Trade

3.1Signatories note that the provisions of the Agreement on Technical Barriers to Trade apply to trade in civil aircraft.In addition, Signatories agree that civil aircraft certification requirements and specifications on operating and maintenance procedures shall be g
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