The Government of the Republic of China (Taiwan) and the
Government of the Republic of Paraguay (hereinafter, “ the
Parties ” );

BEING willing to abide by the Convention on International Civil
Aviation opened for signature at Chicago on the seventh day of
December 1944;

DESIRING to promote an international aviation system based on
competition among airlines in the marketplace with minimum
government interference and regulation;

DESIRING to facilitate the expansion of international air
services opportunities;

RECOGNIZING that the efficient and competitive international air
services enhance trade, the welfare of consumers, and economic
growth;

DESIRING to ensure the highest degree of safety and security in
international air services and reaffirming their grave concern
about acts or threats against the security of aircraft, which
jeopardize the safety of persons or property, adversely affect
the operation of air services, and undermine public confidence
in the safety of civil aviation; and

DESIRING to establish and operate scheduled air services between
and beyond their respective territories.

Have agreed as follows:

Article 1
Definitions
For the purposes of this Agreement, unless otherwise stated, the
terms:
a) “ air transportation ” means the public carriage by
aircraft of passengers, baggage, cargo and mail, separately
or in combination, for remuneration or hire;
b) “ aeronautical authorities ” means, in the case of the
Republic of China (Taiwan), the Civil Aeronautics
Administration (CAA) of the Ministry of Transportation and
Communications (MOTC), in the case of the Republic of
Paraguay, the National Directorate of Civil Aeronautics
(DINAC); or in both cases any authority or person empowered
to perform the functions exercised by the said authorities;
c) “ Agreement ” means this Agreement, its Annex, and any
amendments thereto;
d) “ capacity ” means the amount(s) of services provided under
the Agreement;
e) “ Convention ” means the Convention on International Civil
Aviation opened for signature at Chicago on the seventh day
of December, 1944, and includes any Annex adopted under
Article 90 of the Convention, and any amendment of the
Annexes or Convention under Articles 90 and 94, insofar as
such Annexes and amendments have become effective for both
Parties;
f) “ designated airline ” means an airline which has been
designated and authorized in accordance with Article 3 of
this Agreement;
g) “ international air transportation ” means air
transportation in which the passengers, baggage, cargo and
mail which are taken on board in the territory of one State
are destined to another State;
h) “ tariff ” means any fare, rate or charge to be paid for
the carriage of passengers, baggage and/or cargo (excluding
mail) in air transportation (including any other mode of
transportation in connection therewith) charged by airlines,
including their agents, and the conditions governing the
availability of such fare, rate or charge;
i) “ territory ” in relation to a State means the land areas
and territorial waters adjacent thereto and the airspace
above them under the sovereignty of the State in conformity
with the political constitution of each Party;
j) “ user charges ” means a charge imposed on airlines by the
competent authorities, or permitted by them to be imposed,
for the provision of airport property or facilities or of air
navigation facilities, or aviation security facilities or
services, including related services and facilities, for
aircraft, their crews, passengers and cargo;
k) “ code sharing ” means a commercial agreement between the
designated airlines of both Parties and/or with the airlines
of third countries by means of it operate jointly a specific
route wherein each involved airlines have traffic rights. It
implies the utilization of an air carrier wherein the
airlines may carry passengers, cargo and mail, using each one
its own code; and
l) “ air service ”, “ international air service ”, “
airline ”, and “ stop for non-traffic purposes ”, have the
meanings assigned to them in Article 96 of the Convention.

Article 2
Grant of Rights
1. Each Party grants to the other Party the rights specified in
this Agreement for the purpose of operating international air
services on the routes specified in the Annex to this
Agreement.
2. Subject to the provisions of this Agreement, the airline(s)
designated by each Party shall enjoy the following rights:
a) the right to fly without landing across the territory of
the other Party;
b) the right to make stops in the territory of the other
Party for non-traffic purposes; and
c) the right to make stops at the point(s) on the route(s)
specified in the Annex to this Agreement, for the purposes
of taking on board and discharging international traffic
in passengers, cargo or mail separately or in combination.
3. The airlines of each Party, other than those designated under
Article 3 of this Agreement, shall also enjoy the rights
specified in paragraphs 2 a) and b) of this Article.
4. Nothing in paragraph 2 of this Article shall be deemed to
grant to the designated airline(s) of one Party the privilege
of taking on board, in the territory of the other Party,
passengers, cargo and mail for remuneration and destined for
another point within the territory of that Party.

Article 3
Designation and Authorization
1. Each Party shall have the right to designate in writing to
the other Party, one or more airlines as it wishes to operate
the agreed services and to withdraw or alter such
designation.
2. On receipt of such a designation, and of application from the
designated airline, in the form and manner prescribed for
operating authorization, each Party shall grant the
appropriate operating authorization without undue delay,
provided that:
a) the designated airline has its principal place of business
and permanent residence in the territory of the
designating Party;
b) the airline is under the effective regulatory control of
the designating Party;
c) the Party designating the airline is in compliance with
the provisions set forth in Articles 7 and 8 of this
Agreement; and
d) the designated airline is qualified to meet other
conditions prescribed under the laws and regulations
normally applied to the operation of international air
transport services by the Party receiving the designation.
3. On receipt of the operating authorization of paragraph 2 of
this Article, a designated airline may at any time begin to
operate the agreed services for which it is so designated,
provided that the airline complies with the applicable
provisions of this Agreement and the requirements prescribed
under the laws and regulations normally applied to the
operation of international air transportation services of
each Party.

Article 4
Withholding, Revocation and Limitation of Authorization
1. The aeronautical authorities of each Party shall have the
right to withhold the authorizations referred to in Article 3
of this Agreement with respect to an airline designated by
the other Party, and to revoke, suspend or impose conditions
on such authorizations, temporarily or permanently:
a) in the event that they are not satisfied that the
designated airline has its principal place of business and
permanent residence in the territory of the designating
Party;
b) in the event that they are not satisfied that the Party
designating the airline has and maintains effective
regulatory control of the airline;
c) in the event of failure of the Party designating the
airline to comply with the provisions set forth in
Articles 7 and 8 of this Agreement; and
d) in the event of failure that such designated airline is
qualified to meet other conditions prescribed under the
laws and regulations normally applied to the operation of
international air transport services by the Party
receiving the designation.
2. Unless immediate action is essential to prevent infringement
of the laws and regulations referred to above or unless
safety or security requires action in accordance with the
provisions of Articles 7 or 8 of this Agreement, the rights
enumerated in paragraph 1 of this Article shall be exercised
only after consultations between the aeronautical authorities
in conformity with Article 15 of this Agreement.

Article 5
Application of Laws and Regulations
1. The laws and regulations of one Party governing entry into
and departure from its territory of aircraft engaged in
international air services, or the operation and navigation
of such aircraft while within its territory, shall be applied
to aircraft of the designated airline of the other Party.
2. The laws and regulations of one Party relating to the entry
into, stay in and departure from its territory of passengers,
crew and cargo including mail, such as those regarding
immigration, customs, currency and health and quarantine
shall apply to passengers, crew, cargo and mail carried by
the aircraft of the designated airline of the other Party
while they are within the said territory.
3. Neither Party shall give preference to its own or any other
airline over a designated airline of the other Party engaged
in similar international air transportation in the
application of its immigration, customs, quarantine and
similar regulations.
4. Passengers, baggage, cargo and mail in direct transit shall
be subject to no more than a simplified control. Baggage and
cargo in direct transit shall be exempt from customs duties
and other similar taxes.

Article 6
Recognition of Certificates and Licenses
1. Certificates of airworthiness, certificates of competency and
licenses issued or rendered valid by one Party and still in
force shall be recognized as valid by the other Party for the
purpose of operating the agreed services provided that the
requirements under which such certificates and licenses were
issued or rendered valid are equal to or above the minimum
standards which may be established pursuant to the
Convention.
2. Notwithstanding of what is established in paragraph 1 of this
Article, each Party reserves the right, to refuse to
recognize for the purpose of flights above or landing within
its own territory, certificates of competency and licenses
granted to its own nationals by the other Party.

Article 7
Operational Safety
1. Each Party may request consultations at any time concerning
the safety standards maintained by the other Party in areas
related to aeronautical facilities, flight crew, aircraft and
the operation of aircraft. Such consultations shall take
place within thirty (30) days of that request to the
aeronautical authority.
2. If, after such consultations, one Party finds that the other
Party does not effectively maintain and administer safety
standards in the areas referred to in paragraph 1 of this
Article that meet the Standards established at that time
pursuant to the Convention, the other Party shall be informed
of such findings and of the steps considered necessary to
conform with the ICAO Standards. The other Party shall then
take appropriate corrective action within an agreed time
period.
3. Pursuant to Article 16 of the Convention, it is further
agreed that, any aircraft operated by, or on behalf of an
airline of one Party, on service to or from the territory of
another Party, may, while within the territory of the other
Party be the subject of a search by the authorized
representatives of the other Party, provided this does not
cause unreasonable delay in the operation of the aircraft.
Notwithstanding the obligations mentioned in Article 33 of
the Convention, the purpose of this search is to verify the
validity of the relevant aircraft documentation, the
licensing of its crew, and that the aircraft equipment and
the condition of the aircraft conform to the Standards
established at that time pursuant to the Convention.
4. When urgent action is essential to ensure the safety of an
airline operation, each Party reserves the right to
immediately suspend or vary the operating authorization of an
airline of the other Party.
5. Any action by one Party in accordance with paragraph 4 of
this Article shall be discontinued once the basis for the
taking of that action ceases to exist.

Article 8
Aviation Security
1. Consistent with their rights and obligations under
international law, the Parties reaffirm that their obligation
to each other to protect the security of civil aviation
against acts of unlawful interference forms an integral part
of this Agreement. Without limiting the generality of their
rights and obligations under international law, the Parties
shall in particular act in conformity with the provisions of
the Convention on Offences and Certain Other Acts Committed
on Board Aircraft, signed at Tokyo on 14 September 1963, the
Convention for the Suppression of Unlawful Seizure of
Aircraft, signed at The Hague on 16 December 1970 and the
Convention for the Suppression of Unlawful Acts against the
Safety of Civil Aviation, signed at Montreal on 23 September
1971, its Supplementary Protocol for the Suppression of
Unlawful Acts of Violence at Airports Serving International
Civil Aviation, signed at Montreal on 24 February 1988.
2. The Parties shall provide upon request all necessary
assistance to each other to prevent acts of unlawful seizure
of civil aircraft and other unlawful acts against the safety
of such aircraft, their passengers and crew, airports and air
navigation facilities, and any other threat to the security
of civil aviation.
3. The Parties shall, in their mutual relations, act in
conformity with the aviation security provisions established
by ICAO and designated as Annexes to the Convention; they
shall require that operators of aircraft of their registry,
or operators of aircraft who have their principal place of
business or permanent residence in their territory, and the
operators of airports in their territory act in conformity
with such aviation security provisions. Each Party shall
advise the other Party of any difference between its national
regulations and practices and the aviation security standards
of the Annexes to the Convention.
4. Each Party agrees that such operators of aircraft may be
required to observe the aviation security provisions referred
to in paragraph 3 above required by the other Party for entry
into, departure from, or while within, the territory of that
other Party. Each Party shall ensure that adequate measures
are effectively applied within its territory to protect the
aircraft and to inspect passengers, crew, carry-on items,
baggage, cargo and aircraft stores prior to and during
boarding or loading. Each Party shall also give sympathetic
consideration to any request from the other Party for
reasonable special security measures to meet a particular
threat.
5. When an incident or threat of an incident of unlawful seizure
of civil aircraft or other unlawful acts against the safety
of such aircraft, their passengers and crew, airports or air
navigation facilities occurs, the Parties shall assist each
other by facilitating communications and other appropriate
measures intended to terminate rapidly and safely such
incident or threat thereof.

Article 9
User Charges
1. User charges that may be imposed by the competent charging
authorities or bodies of each Party on the airlines of the
other Party shall be just, reasonable, not unjustly
discriminatory, and equitably apportioned among categories of
users. In any event, any such user charges shall be assessed
on the airlines of the other Party on terms not less
favourable than the most favourable terms available to any
other airline at the time the charges are assessed.
2. User charges may reflect, but shall not exceed, the full cost
to the competent charging authorities or bodies of providing
the appropriate airport, airport environmental, air
navigation, and aviation security facilities and services at
the airport or within the airport system. Such full costs may
include a reasonable return on assets, after depreciation.
3. Each Party shall encourage consultations between the
competent charging authorities or bodies in its territory and
the airlines using the services and facilities, and shall
encourage the competent authorities or bodies and the
airlines to exchange such information as may be necessary to
permit an accurate review of the reasonableness of the
charges in accordance with the principles in paragraphs 1 and
2 of this Article. Each Party shall encourage the competent
charging authorities to provide users with reasonable notice
of any proposal for changes in user charges to enable users
to express their views before changes are made.
4. Neither Party shall be held, in dispute settlement procedures
pursuant to Article 16 of this Agreement, to be in breach of
a provision of this Article, unless:
a) it fails to undertake a review of the charge or practice
that is the subject of complaint by the other Party within
a reasonable term; or
b) after such a review it fails to take all steps within its
power to remedy any charge or practice that is
inconsistent with this Article.

Article 10
Customs Duties
1. Each Party shall on the basis of reciprocity exempt a
designated airline of the other Party under its national law
from customs duties, excise taxes, inspection fees and other
national duties and charges not based on the cost of services
provided on arrival, on aircraft, fuel, lubricating oils,
consumable technical supplies, spare parts including engines,
regular aircraft equipment, aircraft stores and other items
intended for use or used solely in connection with the
operation or servicing of aircraft of the designated airline
of such other Party operating the agreed services.
2. The exemptions granted by this Article shall apply to the
items referred to in paragraph 1:
a) introduced into the territory of the Party by or on behalf
of the designated airline of the other Party;
b) retained on board aircraft of the designated airline of
one Party upon arrival in or leaving the territory of the
other Party; or
c) taken on board aircraft of the designated airline of one
Party in the territory of the other Party and intended for
use in operating the agreed services.
whether or not such items are used or consumed wholly within
the territory of the Party granting the exemption, provided
the ownership of such items is not transferred in the
territory of the said Party.
3. The regular airborne equipment, as well as the materials and
supplies normally retained on board the aircraft of a
designated airline of either Party, may be unloaded in the
territory of the other Party only with the approval of the
customs authorities of that territory. In such case, they may
be placed under the supervision of the said authorities up to
such time as they are re-exported or otherwise disposed of in
accordance with customs regulations.

Article 11
Fair Competition
Each Party agrees:
a) that each designated airline shall have a fair and equal
opportunity to compete in providing the international air
transportation governed by the Agreement;
b) to take action to eliminate all forms of discrimination or
unfair competitive practices adversely affecting the
competitive position of a designated airline of the other
Party; and
c) that neither Party shall limit unilaterally the volume of
traffic, the frequency, regularity of services or type or
types of aircrafts operated by the airlines designated by the
other Party, except when it is necessary for technical,
operational or environmental reasons, provided that the above
exception is a non-discriminatory treatment.

Article 12
Capacity
1. The air transport facilities available to the traveling
public should bear a close relationship to the requirements
of the public for such transport.
2. The designated airline or airlines of each Party shall have a
fair and equal opportunity to operate on any agreed route
between the territories of the two Parties.
3. The frequencies and capacity of the international air
transportation services to be offered by the designated
airlines of each Party shall be specified in the Annex to
this Agreement. Any increases in the frequencies and capacity
of the international air transportation services to be
offered by the designated airlines of each Party shall be
agreed upon between the aeronautical authorities of both
Parties.

Article 13
Tariffs
1. The Parties agree to give particular attention to tariffs
which may be objectionable because they appear unreasonably
discriminatory, unduly high or restrictive because of the
abuse of a dominant position, artificially low because of
direct or indirect subsidy or support, or “ predatory ”.
2. Each Party may require notification or filing of tariffs
proposed by the designated airline(s) of both Parties for
carriage to or from its territory. Such notification or
filing may be required before the proposed date of
introduction.
3. Neither Party shall take unilateral action to prevent the
inauguration of a proposed tariff or the continuation of an
effective tariff of a designated airline of either Party for
carriage between the territories of the Parties.

Article 14
Commercial Opportunities
1. Each Party shall permit airlines of the other Party to
convert and transmit abroad to the airlines ’ choice of
state, on demand, all local revenues from the sale of air
transport services and associated activities directly linked
to air transport in excess of sums locally disbursed, with
conversion and remittance permitted promptly without
restrictions in respect thereof at the rate of exchange
applicable as of the date of the request for conversion and
remittance, in accordance with the tax legislation in force
in each Party.
2. Each Party shall accord airlines of the other Party the right
to sell and market international air services and related
products in its territory (directly or through agents or
other intermediaries of the airline ’ s choice), and any
person shall be free to purchase such transportation, in the
currency of that territory or in freely convertible
currencies, in accordance with the currency regulations in
force for each Party, including the right to establish
offices, both on-line and off-line.
3. Each Party shall permit designated airlines of the other
Party to:
a) bring in to its territory and maintain non-national
employees who perform managerial, commercial, technical,
operational and other specialist duties which are required
for the provision of air transport services, consistent
with the laws and regulations of the receiving State
concerning entry, residence and employment; and
b) use the services and personnel of any other organization,
company or airline operating in its territory and
authorized to provide such services.
4. Subject to applicable safety provisions, including ICAO
Standards and Recommended Practices (SARPs) contained in
Annex 6 to the Convention, the designated airline may choose
from among competing providers of ground handling services.

Article 15
Consultations
1. Either Party may, at any time, request consultation on the
interpretation, application or implementation of this
Agreement or compliance with this Agreement.
2. Such consultations shall begin within a period of sixty (60)
days from the date the other Party receives a written
request, unless otherwise agreed by the Parties.

Article 16
Settlement of Disputes

If any dispute arises between the Parties relating to the
interpretation or application of this Agreement, the Parties
shall in the first place endeavor to settle it by negotiations.
If the Parties fail to reach a settlement by negotiations within
sixty (60) days, the dispute shall be settled through diplomatic
channels.

Article 17
Amendments
1. Either Party may at any time request consultation with the
other Party for the purpose of amending the present Agreement
or its Annex. Such consultation shall begin within a period
of sixty (60) days from the date of receipt of such request.
2. Any amendment of this Agreement shall enter into force once
approved in accordance with the applicable legal procedures
of each Party, in accordance what is established in Article
19.
3. Any amendment of the Annex shall be made by written agreement
between the aeronautical authorities of the Parties and shall
come into force once approved in accordance with the
applicable legal procedures of each Party, in accordance what
is established in Article 19.

Article 18
Termination
Either Party may, at any time, give notice in writing, through
diplomatic channels to the other Party of its intention to
terminate this Agreement. This Agreement shall terminate twelve
(12) months after the date of receipt of the notice by the other
Party, unless the notice is withdrawn by agreement before the
end of this period.

Article 19
Entry Into Force
The Parties shall notify each other, through diplomatic channel,
of the completion of the legal procedure required for bringing
this Agreement into force. This Agreement shall come into force
on the date of receipt on the latter notification.

Article 20
Notifications
This Agreement and its amendments may be properly registered by
either Party with the International Civil Aviation Organization
(ICAO).

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

Done in Asuncion, on the 28th day of June, 2016 in the Chinese,
Spanish and English languages, all texts being equally
authentic. In the event of a difference in interpretation, the
English text shall prevail.


FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE REPUBLIC OF CHINA THE REPUBLIC OF PARAGUAY
(TAIWAN)

David Tawei Lee Eladio Loizaga
Minister of Foreign Affairs Minister of Foreign Affairs