ORGANIZATION OF A SYSTEM OF INTERNATIONAL CUSTOMS DEPOSITS WITH
CHINA-TAIWAN FOR THE TEMPORARY ADMISSION OF GOODS PROTOCOL BETW-
EEN THE GUARANTEEING ASSOCIATIONS (*)

ARTICLE l
In order to strengthen the links of friendship and the economic
relations existing between the respective countries and more pa-
rticularly in order to promote temporary admission of goods in
favour of enterprises in the areas of competence of the signato-
ry associations, the undersigned guaranteeing associations have
agreed to organize by the present protocol a system of internat-
ional customs deposits for import duties chargeable on the temp-
orary admission of goods in the customs territories within their
areas of competence when such goods are covered by a customs ca-
rnet hereafter referred to as VECCI/CETRA carnet.
ARTICLE 2
The present protocol relates to the temporary admission of all
goods which can firculate freely for international trade purpos-
es under the following conventions and according to the modalit-
ies set forth rein:
- Customs Convention to facilitate the importation of commercial
samples and advertising material, signed in Geneva on 7 Novem-
ber 1952;
- Customs Convention on the temporary importation of profession-
al equipment, done at Brussels on 8 June 1961;
- Customs Convention concerning facilities for the importation
of goods for display or use at exhibitions, fairs, meetings or
similar events, done at Brussels on 8 June 1961;
- Customs Convention on the ATA Garnet for the temporary admiss-
ion of goods (ATA Convention), done at Brussels on 6 December
1961;
- all other international Conventions or agreements between cus-
toms administrations relating to temporary admission operatio-
ns under the laws and/or regulations applicable in the territ-
ory of temporary admission.
The protocol will be implemented according to the rules laid do-
wn "
- in the ATA Convention,
- in the statement of the International Bureau of Chambers of C-
ommerce of the International Chamber of Commerce and its impl-
ementing directives-present and future,
- and in the present text.
The undersigned guaranteeing associations will undertake to per-
suade their respective Customs Authorities to apply the opinions
and comments expressed by the PTC of Customs Cooperation Council
concerning the application of The ATA Convention.
All matters pertaining to the interpretation and implementation
of the Protocol shall be settled with the participation of the
parties to the Protocol.
It is expressly agreed th*at the International Bureau of Chambe-
rs of Commerce of the International Chamber of Commerce will en-
sure the implementation and the administration of the system of
international customs deposits established under the present pr-
otocol.
ARTICLE 3 (*)
For the purposes of the present protocol:
a) the term "import duties" means customs duties and all other
duties and taxes payable on or in connection with importation
, and shall include all internal taxes and excise duties cha-
rgeable on imported goods, but shall not include fees and ch-
arges which are limited in amount to the approximate cost of
services rendered and do not represent an indirect protection
to domestic products or a taxation of imports for fiscal pur-
poses;
b) the term "temporary admission" means temporary importation f-
ree of import duties in accordance with the conditions laid
down by the above Conventions or by the national laws and re-
gulations of the country of importation;
c) the term "transit" means the conveyance of goods from a cust-
oms office in the territory of temporary admission or transit
of a party signatory of the present protocol to another cust-
oms office within the same territory, in accordance with the
conditions laid down in the national laws and regulations of
that contracting party;
d) the term "customs carnet" means the document hereinafter ref-
erred to as VECCI/CETRA carnet and reproduced as annex 1 to
the present protocol of which it is an integral part;
e) the term "guaranteeing association" means a Chamber of Comme-
rce or an organisation of Chambers of Commerce or an associa-
tion which
- has been approved by the customs authorities of its country
to guarantee payment of the import duties owed to them in
respect of goods covered by VECCI/CETRA carnets,
- has joined the system of international customs deposits im-
plemented by the IBCC of the ICC,
- has organized with the Chambers of Commerce of its area or
with other associations a national guarantee system enabli-
ng them to deliver VECCI/CETRA carnets.
ARTICLE 4
The undersigned guaranteeing associations declare that VECCI/CE-
TRA carnets issued under their responsibility are delivered in
accordance with the rules laid down in the ATA convention of 6
December 1961, and in the IBCC statement and its implementing d-
irectives which have been published since the entry into force o
f the said Convention.
The guaranteeing associations will keep each other informed of
the operations of temporary admission or transit in respect of
which they accept to guarantee VECCI/CETRA carnets.
ARTICLE 5
When they have been approved by their national customs authorit-
ies for the purpose of guaranteeing the payment of import duties
in respect of goods coming under the present protocol, the sign-
atories of the protocol shall guarantee the payment of import d-
uties in respect of goods dispatched by their nationals to coun-
tries covered by the said protocol.
However, such approval which can only be given to one guarantee-
ing association in each country shall only become effective upon
provision by the said association of all the guarantees required
by the IBCC and indicated in the annexes to the present protocol
, including payment of the membership fee of the IBCC Chain.
In countries where there are exchange control regulations, the
guaranteeing associations shall not be entitled to give their g-
uarantee unless their exchange control office has undertaken to
authorize all transfers necessary for the settlement of debts c-
ontracted vis-a-vis other guaranteeing associations on account
of such guarantees.
ARTICLE 6
The period of validity of the VECCI/CETRA carnet shall not exce-
ed one year as from the date of delivery of any carnet.
ARTICLE 7
The conditions for the grant of its guarantee shall be determin-
ed by each guaranteeing association in conformity with the prov-
isions laid down in the annexes to the present protocol.
ARTICLE 8
The guarantee granted shall be surety for the payment of import
duties which would be due to the customs authorities of the tem-
porary admission territory in the event of the goods introduced
into the said territory not being re-exported within the prescr-
ibed period. The guarantee shall further cover, up to 10% of the
amount of import duties, the payment of any other sums which wo-
uld have had to be deposited by the importer if there had been
no guarantee.
ARTICLE 9
When the goods covered by the guarantee granted by a signatory
of the present protocol duly approved in the country of origin
are introduced into a country where there is another signatory
of the said protocol the guarantee of the guaranteeing associat-
ion approved by the customs authorities in the latter country s-
hall immediately and automatically be substituted for the origi-
nal guarantee.
Such substitution shall take place successively under the same
conditions for one and the same product, as it passes through d-
ifferent countries.
ARTICLE 10
Should the merchandise covered by the guarantee not be duly ree-
xported from the territory of temporary admission within the pr-
escribed period and thus become liable for import duties, the a-
pproved guaranteeing association in the said territory shall pay
the import duties owed to the creditory customs administration.
The guaranteeing association which will have thus settled the i-
mport duties in respect of merchandise covered by the guarantee
shall request the guaranteeing association which granted the in-
itial guarantee to refund the duties paid on behalf of the impo-
rter.
Such refunding will be effected in conformity with the modaliti-
es laid down in Article IX of the IBCC Protocol annexed hereto.
ARTICLE 11
All questions relating to the interpretation of the provisions
of the said protocol will be submitted to the IBCC Steering Com-
mittee for decision.
ARTICLE 12
Any guaranteeing association infringing the provisions of the p-
resent protocol will be liable to be expelled from the system,
such expulsion to be decided by contracting parties jointly with
the IBCC' s Steering Committee.
ARTICLE 13
All differences, disputes or contestations between the undersi-
gned guaranteeing associations in connection with the implement-
ation of the provisions of the present protocol shall be finally
settled under the Rules of Conciliation and Arbitration of the
international Chamber of Commerce by one or more arbitrators ap-
pointed in accordance with such Rules.
ARTICLE 14
The present Protocol will enter into force on the date following
its signature by the two parties and the International Bureau of
Chambers of Commerce of the International Chamber of Commerce a-
nd will be valid for a period of 2 years. This period will be r-
enewable by tacit agreement, except if notice of termination is
given 3 months before the date of expiry by anyone party by mea-
ns of a registered letter with acknowledgment of receipt.

Done at Taipei on 15 December, Done at Melbourne on 3 January,
1995 1996
[Signed] [Signed]
Ronie H.K. Huang David Edwards
Secretary General Chief Executive Officer
China External Trade Victorian Employers'
Development Council Chamber of Commerce and Industry

International Chamber of Commerce
The International Bureau of Chambers of
Commerce of the International Chamber of Commerce

[Signed] [Signed]
Jean-Charles Rouher Alain Destouches
Secretary General IBCC Administrative Director

Annexes:- Protocol on the organization of a system of internati-
onal customs deposits in respect of ATA Garnets
- Statement on the ATA System adopted by the IBCC
- Document No. 550-1/763 Rev.2
- Model of VECCI/CETRA Garnet

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(*) The following definitions are those given in Article 1 of t-
he ATA Convention except the definitions under paragraphs d)
and e).