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Agreement by an airline designated by the other Contracting Party, or to impose such conditions as it may deem necessary on the exercise of these rights:
- (a) In any case where it is not satisfied that substantial ownership and effective control of that airline and of the aircraft utilized in the operation of the specified services are vested in the Contracting Party designating the airline or in nationals of such Contracting Party; or
- (b) In the case of failure by that airline to comply with the laws or regulations of the Contracting Party granting these rights; or
- (c) In case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.
2. Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph 1 of this article is essential to prevent further infringements of laws or regulations, such right shall be exercised only after consultation with the other Contracting Party.
Article 6. Exemption from charges on equipment, fuel stores, etc.
1. Aircraft operated on international air services provided for in the present Agreement by the airline designated by one Contracting Party, as well as supplies of fuel and lubricants, aircraft stores, spare parts and the regular equipment on board such aircraft, shall be exempt from customs duties, inspection fees and any other fiscal charges on arriving in the territory of the other Contracting Party.
2. There shall also be exempt from said customs and fiscal charges, with the exclusion of the charges relating to services rendered:
- (a) Fuel, lubricants, aircraft stores, spare parts and normal airborne equipment introduced and stored in the territory of one Contracting Party by the designated airline of the other Contracting Party and intended solely for use by aircraft of said airline;
- (b) Fuel, lubricants, aircraft stores, spare parts, regular equipment taken on board in the territory of one Contracting Party by the designated airline of the other Contracting Party, while operating the agreed services, within limits and conditions fixed by the Authorities of said other Contracting Party, and intended solely for use and consumption during the flight.
3. The materials enjoying the exemptions provided for in the preceding paragraphs shall not be used for purposes other than international air services and must be re-exported if not used, unless their use on board of aircraft of another airline is granted or their permanent importation is permitted in accordance with the provisions in force in the territory of Contracting Party concerned.
4. The exemptions set out in this article, applicable also to the part of the above-mentioned materials used or consumed during the flight over the territory of the Contracting Party granting the exemptions, are granted on a reciprocal basis and may be subject to compliance with particular formalities normally applicable in said territory, including customs controls.
Article 7. PRINCIPLES GOVERNING OPERATION OF AGREED SERVICES
1. There shall be fair and equal opportunity for the airlines of both Contracting Parties to operate the agreed services on the specified routes between their respective territories.
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