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General Agreement on Development Co-operation between the Government of Canada and the Government of the Republic of the Philippines [1987] CATSer 26 (13 November 1987)

E101073 - CTS 1987 No. 26

GENERAL AGREEMENT ON DEVELOPMENT CO-OPERATION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

The Government of Canada and the Government of the Republic of the Philippines,

DESIRING to strengthen the existing cordial relations between the two countries and their peoples, and

DESIRING to foster development co-operation between the two countries in conformity with the socio-economic development Programs of the Government of the Republic of the Philippines,

HAVE AGREED as follows:

ARTICLE I

The Government of Canada and the Government of the Republic of the Philippines shall under this Agreement promote a programme of development co­operation, between their two countries, consisting of the following components:

(a) the sending of appraisal and evaluation missions to the Philippines to study and analyze development projects;

(b) the granting of fellowships to nationals of the Republic of the Philippines for studies and professional training in Canada, the Philippines or a third country;

(c) the assignment of Canadian experts, advisers and other specialists to the Philippines;

(d) the provision of equipment, materials, goods and services required for the successful execution of development projects in the Philippines;

(e) the development and carrying out of studies and projects designed to contribute to the attainment of the objectives of this Agreement;

(f) the encouragement and promotion of relations between firms, institutions and persons of the two countries; and

(g) any other form of assistance which may be mutually agreed upon.

ARTICLE II

1. In support of the objectives of this Agreement, the Government of Canada and the Government of the Republic of the Philippines may conclude subsidiary arrangements in respect of specific projects involving one or several components of the programme described in Article I.

2. Unless stated otherwise, subsidiary arrangements concerning contributions of the Government of Canada shall be considered as administrative arrangements.

3. Subsidiary arrangements shall make specific reference to this Agreement and the terms of this Agreement shall, unless otherwise stated, apply to such subsidiary arrangements.

ARTICLE III

The Government of Canada shall assume the responsibilities described in Annex “A” and the Government of the Republic of the Philippines shall assume the responsibilities described in Annex “B” in respect of any specific project established under a subsidiary arrangement unless otherwise indicated in such subsidiary arrangement. Annexes “A” and “B” shall be integral parts of this Agreement.

ARTICLE IV

The Government of the Republic of the Philippines shall ensure that development aid funds provided under any subsidiary arrangement are not used to pay any taxes, fees, customs duties or any other levies and charges imposed directly or indirectly by the Government of the Republic of the Philippines, on any goods, materials, equipment, vehicles and services purchased or acquired for the execution of any project being carried out in the Philippines pursuant to a subsidiary arrangement.

ARTICLE V

The Government of the Republic of the Philippines shall exempt Canadian firms and Canadian personnel from or bear the costs of customs and excise duties, sales taxes, fees (except those associated with private motor vehicles), and other charges imposed by the Government of the Republic of the Philippines of similar nature, on all goods, materials, equipment, vehicles and services and on any other goods or services acquired in or imported into the Philippines for or related to the execution of projects established under any subsidiary arrangement. Resale of goods, materials, equipment or vehicles acquired under this section to a firm or person other than a Canadian firm or Canadian personnel or other exempt buyer will be subject to normal taxes and duties as provided for by the existing laws of the Philippines.

ARTICLE VI

For the purposes of this Agreement:

(a) “Canadian firm” means Canadian institutions or firms or other non-Philippines firms or institutions engaged in any project established under a subsidiary arrangement;

(b) “Canadian personnel” means Canadians or non-Philippines Citizens, who are working in the Philippines on any project established under a subsidiary arrangement; and

(c) “dependant” means

(i) the spouse of a member of the Canadian personnel, including a person of the opposite sex with whom the member of the Canadian personnel has lived and publicly represented as his or her spouse for a period of not less than one year before the commencement of his or her period of service in the Philippines;

(ii) a child of the member of the Canadian personnel or his or her spouse who is:

(A) under twenty-one years of age and dependent on the member of the Canadian personnel or his or her spouse for support, or

(B) twenty-one years of age or older and dependent on the member of the Canadian personnel or his or her spouse for support by reason of a mental or physical incapacity.

ARTICLE VII

The Government of the Republic of the Philippines shall indemnify and save harmless the Government of Canada, Canadian firms and Canadian personnel from civil liability for acts or omissions occurring in the course of the performance of their duties in the execution of any specific project established under any subsidiary arrangement except for acts arising from gross negligence or wilful misconduct of Canadian firms or Canadian personnel.

ARTICLE VIII

The Government of the Republic of the Philippines shall exempt Canadian firms and Canadian personnel and their dependants from taxes imposed on income, provided such income arises from sources outside of the Philippines or from Canadian aid funds as provided for in any subsidiary arrangement. In addition, the Government of the Republic of the Philippines shall exempt Canadian firms and Canadian personnel, including their dependants, from any obligations to present written declarations in relation to these exemptions.

ARTICLE IX

The Government of the Republic of the Philippines shall exempt Canadian personnel from the payment of customs duties, excise duties and sales taxes in respect of bona fide personal effects and essential basic household equipment including especially prescribed medicine and special health foods brought into, or purchased, in the Philippines for their own use or the use of their dependants. Canadian personnel may purchase duty free locally manufactured/assembled items provided that such purchases shall be made from the manufacturers and paid for in Canadian or U.S. currency and delivery shall be made from bonded warehouses. In the event of theft, fire or other destruction, the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

ARTICLE X

The Government of the Republic of the Philippines shall exempt Canadian personnel from the payment of customs duties, excise duties and sales taxes in respect of one motor vehicle imported into the Philippines or purchased locally for their personal use provided that:

(a) such imported motor vehicle has been used by the Canadian personnel in their country of origin or the country of their last posting, or such motor vehicle is purchased locally or from a third country within the period of six (6) months from the date of their arrival in the Philippines; and

(b) if the motor vehicle is sold or otherwise disposed of to non-exempt entities or personnel, it shall be subject to the normal duties and other charges at the rate in force on the date the exemption was given and on the value at the time of disposal.

In the event of fire, theft, damage or destruction the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

ARTICLE XI

The Government of the Republic of the Philippines shall facilitate for Canadian firms and Canadian personnel involved in projects the re-exportation of funds from their salaries, fees, remunerations or other revenues transferred from abroad in accordance with procedures laid down by the Central Bank of the Philippines with respect to Canadian diplomatic staff.

ARTICLE XII

The Government of the Republic of the Philippines shall inform Canadian firms and Canadian personnel of local laws and regulations which may concern them in the performance of their duties.

ARTICLE XIII

The Government of the Republic of the Philippines shall facilitate the repatriation of Canadian personnel and their dependants in cases where, in the opinion of the Government of Canada, the lives or safety of the Canadian personnel and/or their dependants are endangered.

ARTICLE XIV

The Government of Canada and the Government of the Republic of the Philippines will consult each other in respect of any matter that may from time to time arise from or in connection with this Agreement.

ARTICLE XV

Differences which may arise relating to the interpretation and application of the provisions of this Agreement or of any subsidiary arrangement shall be settled by means of negotiations between the Government of Canada and the Government of the Republic of the Philippines or in any other manner mutually agreed upon.

ARTICLE XVI

This Agreement shall enter into force on signature and shall remain in force until terminated by either Party on six months’ notice in writing to the other Party. The responsibilities of the Government of Canada and of the Government of the Republic of the Philippines with regard to projects being carried out by virtue of subsidiary arrangements entered into pursuant to Article II of this Agreement and begun prior to the receipt of the termination notice referred to above shall continue until completion of such projects as if this Agreement remained in force in respect of and for the whole duration of such projects.

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

DONE in duplicate at Manila, this 13th day of November 1987, in English and French, each language version being equally authentic.

Russell H. Davidson

FOR THE GOVERNMENT OF CANADA

Raul S. Maglapus

FOR THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

ANNEX “A”

RESPONSIBILITIES OF THE GOVERNMENT OF CANADA

I. Unless otherwise indicated in any subsidiary arrangement, the Government of Canada shall finance the following expenditures based on the rates authorized in its regulations:

(A) Expenditures related to Philippines fellowship holders:

(1) registration and tuition fees, books, supplies or materials required;

(2) a living allowance including accommodation and winter clothing;

(3) medical and hospital expenses;

(4) economy-class fares for travel by air or any other approved means of transportation, in compliance with the requirements of the fellowship programme.

(B) Expenditures related to Canadian personnel:

(1) their salaries, fees, allowances and other benefits;

(2) their travel expenses and those of their dependants between their normal place of residence and the port of entry and departure in the Philippines;

(3) the cost of shipping, between their normal place of residence and the port of entry and departure in the Philippines, their personal and household effects, those of their dependants and the professional and technical materials required by the said personnel for the execution of their duties.

(C) Expenditures related to certain projects:

(1) the cost of engineers, architects and other services required for the execution of projects;

(2) the cost of providing equipment, materials, supplies and other goods and of the transportation of same from their point of departure to the Philippines.

II. Contracts for the purchase of goods or commissioning of services financed by the Government of Canada and required for the execution of projects shall be signed by the Government of Canada or one of its agencies. However, it may be provided in any subsidiary arrangement that such contracts may be signed by the Government of the Republic of the Philippines or one of its agencies in accordance with the terms and conditions specified in such subsidiary arrangement.

III. The Government of Canada shall provide the Government of the Republic of the Philippines in a timely manner with the names of the Canadian personnel and their dependants entitled to the right and privileges set forth in this Agreement or in any subsidiary arrangement.

ANNEX “B”

RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

I. Unless otherwise indicated in any subsidiary arrangement, the Government of the Republic of the Philippines shall provide or pay for

(1) an allowance toward the cost of furnished accommodation for said personnel and their dependants equivalent to the amount which, under its appropriate policies and regulations, the Government of the Republic of the Philippines may pay for accommodation costs of development assistance personnel, and the amount and method of payment of such allowance shall be determined in the relevant subsidiary arrangement;

(2) furnished premises and office services in compliance with the standards of the Government of the Republic of the Philippines, including adequate facilities and materials, support staff, professional and technical material, telephone, mail and any other services which the Canadian personnel would need in order to carry out their duties;

(3) the recruiting and seconding of counterparts when required for the projects;

(4) the travel expenses of the Canadian personnel and of their dependants between

(a) the port of entry and the place of residence of the Canadian personnel in the Philippines at the beginning of their assignment; and

(b) the place of residence and the point of departure;

(5) the cost of transportation of

(a) the personal effects and household equipment of the Canadian personnel and those of their dependants; and

(b) the professional and technical material required by the Canadian personnel in the execution of their duties in the Philippines

between

(c) the port of entry and the place of residence of the Canadian personnel in the Philippines at the beginning of their assignment; and

(d) the place of residence and the point of departure of the Canadian personnel in the Philippines upon completion of their assignment;

(6) any official assistance which may be required for the purpose of facilitating the travel of Canadian personnel in the performance of their duties in the Philippines;

(7) any official assistance which may be required for the purpose of expediting the clearance through customs of equipment, products, materials, supplies and other goods required for the execution of projects and the personal and household effects of Canadian personnel and their dependants;

(8) the storage of articles mentioned in paragraph (7) above during the period when they are held at customs and any measures required to protect these articles against natural elements, loss, fire and any other danger;

(9) all permits, licences and other documents including costs related thereto, if any, for equipment, materials, supplies or goods required for the execution of projects and to enable Canadian firms and Canadian personnel to carry out their functions in the Philippines;

(10) subject to any laws of the Republic of the Philippines, all necessary visas and all import or export permits, as the case may be, for the Canadian personnel and their dependants and for the personal effects of such Canadian personnel and their dependants;

(11) the prompt inland transportation of all equipment, products, materials, supplies and other imported goods required for the execution of projects, from the port of entry into the Philippines to project sites, including where necessary, the obtaining of priority by the Philippines forwarding and transportation agents;

(12) transportation for journeys performed on official duties in accordance with the existing regulations of the Government of the Republic of the Philippines governing transport and travelling claims. No claim is permitted for travelling between house and office. The Canadian personnel who does not own or use a personal car for official duties will be reimbursed for the cost of actual transporta­tion used in conformity with existing rules of the Government of the Republic of the Philippines. The Canadian personnel on duty away from his place of posting will also be eligible for subsistence/day allowance as well as payment of hotel expenses/lodg­ing allowance in accordance with the applicable regulations of the Government of the Republic of the Philippines.

(13) permission from the relevant Department or Departments in accordance with the relevant laws and regulations to use all means of communication such as high frequency radio transmitters and receivers approved for use in the Philippines and telephone and telegraph networks, depending on the needs of a specific project; and

(14) reports, records, maps, statistics and other information related to projects and likely to assist Canadian personnel in carrying out their duties; provided that they are not classified and have no relation to national security.

II. The Government of the Republic of the Philippines shall give access to Canadian personnel and their dependants to medical care and hospitalization in the Philippines in accordance with those standards granted to officials of equivalent rank of the Government of the Republic of the Philippines. No reimbursement will be made by the Government of the Republic of the Philippines if the Canadian personnel and their dependants elect to be treated by private practitioners.

III. The Government of the Republic of the Philippines acknowledges that each Canadian personnel shall be entitled to a period of local leave of thirty (30) days a year.

IV. The Government of the Republic of the Philippines shall consider the employment of fellowship holders who receive grant financed studies for at least a period equivalent to the period imposed on any holder of the Government of the Republic of the Philippines’ fellowship.