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APPENDIX M
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APPENDIX M

CUSTOMS DUTIES

Draft Exchange of Notes between the Representative of the United Kingdom

authorised to sign the Treaty of Establishment and Archbishop

Makarios and Dr. Kutchuk

A.-Draft Note to Archbishop Makarios and Dr. Kutchuk

Your Excellencies,

I have the honour, with reference to sub計aragraph (b) of paragraph 4 of Section 11 of Annex C and Section 7 of Annex F to the Treaty concerning the Establishment of the Republic of Cyprus of to苓ay's date, to set out the arrangements which were agreed between us as follows:-

(a) Importation into the territory of the Republic of Cyprus or into the United Kingdom Sovereign Base Areas by the Navy, Army and Air Force Institutes (in this Note referred to as " NAAFI ") of beer, ale, porter and stout, originating in and consigned from any country

within the British Commonwealth, manufactured tobacco, whisky and gin and other potable spirits (excluding wines) shall be free of duty.

(b) Importation into the territory of the Republic of Cyprus or into the United Kingdom Sovereign Base Areas by NAAFI of beer, ale, porter and stout originating in or consigned from any country not within the British Commonwealth shall be liable to import duty at agreed rates and initially at the rate of 120 mils per gallon.

(c) Importation free of duty as provided by sub計aragraph (a) and importation at a special rate of duty as provided by sub計aragraph (b)

above shall not exceed the quantities for each person permitted in accordance with the scales applied to members of Her Majesty's Forces immediately before the entry into force of the Treaty.

(d) NAAFI shall not offer for sale in the territory of the Republic of Cyprus or in the United Kingdom Sovereign Base Areas any of the goods listed in Appendix I to this Note unless such goods have been locally purchased or any duty payable on their importation has been paid.

(e) Any duty paid by NAAFI on the importation of goods shall be refunded to it, unless such duty has been paid on the importation of-

(i) any goods specified in sub計aragraph (b) above;

(ii) any excess over the quantities referred to in sub計aragraph (c) above; or

(iii) any goods listed in Appendix I to this Note.

(f) Beer manufactured locally and delivered to or on behalf of NAAFI in the territory of the Republic of Cyprus or in the Sovereign Base Areas shall be chargeable to excise duty at agreed rates and initially at 50 mils per gallon.

(g) Retail sales by NAAFI of all goods, with the exception of those imported free of duty as provided by sub計aragraph (a) or imported at a special rate of duty as provided by sub計aragraph (b) above, shall be at retail prices in line with those prevailing in reputable local shops.

(h) Arrangements shall be made, where practicable and reasonable, for goods imported free of duty and sold by NAAFI to be marked in such a way as to show that the sale was by NAAFI.

(i) Shops established by NAAFI in the territory of the Republic of Cyprus elsewhere than within the boundaries of the Site numbered A10/ 1 and of the area numbered C2/ 1 in Schedules A and C respectively to Part II of Annex B to the Treaty shall not offer for sale any of the goods (other than wines and kerosene) listed in the Appendices to this Note unless such goods have been locally purchased. Effect shall be given to the provision of this paragraph as soon as possible and in any event within six months from the date of entry into force of the Treaty.

(j) Arrangements shall be made for NAAFI and the United Kingdom authorities to maintain and scrutinise individual records of sales with a view to ensuring that purchases are made in reasonable quantities and for the legitimate use of persons authorised to make those purchases.

(k) There shall be co觔peration between the United Kingdom authorities and the authorities of the Republic of Cyprus in all matters relating to the application of the provisions of this Note and for this purpose full use shall be made of the Committee to be established under Annex F to the Treaty.

(1) The arrangements set out in this Note shall be reviewed by the United Kingdom authorities and the authorities of the Republic of Cyprus with a view to agreeing such changes as may be desirable in the light of any recommendations of the Special Committee on Customs Arrangements established for this purpose and from time to time in the light of practical experience.

2. I have the honour to suggest that, if these arrangements are acceptable to the Government of the Republic of Cyprus, this Note, together with your reply to that effect, shall be regarded as constituting an agreement in this matter between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Cyprus which shall enter into force on to苓ay's date.

 

APPENDIX I

Agricultural machinery

Building and construction materials

Expensive fur coats

Explosives other than cartridges

Industrial machinery

Motor cars and motor bicycles, and spare parts for motor cars and motor

bicycles, of a model and type easily obtainable from or through agents

in the Republic of Cyprus

Petrol and kerosene

Precious stones Television sets, unless and until the United Kingdom establishes television facilities for United Kingdom personnel in the island of Cyprus

Wines

APPENDIX II All domestic electric tools and appliances All electrical musical equipment Kitchen utensils Crockery, glassware and cutlery Musical instruments Typewriters Beach and garden furniture and equipment Travel goods Vacuum flasks and containers Photographic equipment Electric razors Prams, baby carriages and nursery furniture Sports equipment Major items of household equipment Expensive watches or clocks Expensive cigarette lighters Expensive fountain pens Clothing and footwear.

B.-Draft Reply by Archbishop Makarios and Dr. Kutchuk

Your Excellency,

We have the honour to acknowledge the receipt of your Note of to苓ay's

[text as above including the Appendices]

2 The arrangements set out in that Note are acceptable to the

Government of the Republic of Cyprus and we have the honour therefore to confirm that that Note, together with this reply, shall constitute an agreement accordingly.

SPECIAL COMMITTEE ON CUSTOMS ARRANGEMENTS

Draft Letter from the Governor to Archbishop Makarios and Dr. Kutchuk

During the discussion of paragraph 4 of Section 11 of Annex C to the Draft Treaty concerning the Establishment of the Republic of Cyprus, it was proposed that a Committee, composed of representatives nominated by the Government of the United Kingdom and by the President苟lect and the Vice致resident苟lect of the Republic of Cyprus, should be estanlished to consider and, as soon as possible, make recommendations on suitable arrangements for the purposes of sub計aragraph (b) of that paragraph, having regard in particular to-

(a) the welfare of the United Kingdom forces in the Island of Cyprus;

(b) the avoidance of damage to the economy of the Republic of Cyprus;

(c) the prevention of abuse of the customs privileges to be accorded under sub計aragraph (b) of paragraph 4 of Section 11 of Annex C; and

(d) the arrangements mentioned in the agreement set out in the agreed draft of the Notes to be exchanged, with reference to that sub計aragraph and Section 7 of Annex F to the Treaty, between the Government of the United Kingdom and the President苟lect and Vice致resident苟lect of the Republic of Cyprus on the entry into force of the Treaty of Establishment.

It was also proposed that the Committee should consult as they may think necessary representatives of the Cypriot Chambers of Commerce and of the Navy, Army and Air Force Institutes.

If the above proposals for the establishment of a Committee are acceptable to you, I shall take immediate steps for it to be convened.

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