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GENERAL TREATY 1 ON CENTRAL AMERICAN
ECONOMIC INTEGRATION BETWEEN
GUATEMALA, EL SALVADOR, HONDURAS AND NICARAGUA
SIGNED AT MANAGUA, ON 13 DECEMBER 1960
[TRANSLATION]
The Governments of the Republics of Guatemala, El Salvador, Honduras and
Nicaragua,
For the purpose of reaffirming their intention to unify the economies of the four
countries and jointly to promote the development of Central America in order to
improve the living conditions of their peoples.
Mindful of the need to expedite the integration of their
economies consolidate the results so far achieved and lay down
the principles on which it should be based in the future.
Having regard to the commitments entered into in the following instruments of
economic integration:
Multilateral Treaty on Free Trade and Central American Economic Integration; 2
Central American Agreement on the Equalization of Import Duties and Charges and
its Protocol on the Central American Preferential Tariff; 3
Bilateral treaties on free trade and economic integration signed between Central
American Government;
Treaty of Economic Association signed between Guatemala, El Salvador and
Honduras 4,
Have agreed to conclude the present Treaty and for that
purpose have appointed as their respective plenipotentiaries:
H. E. The President of the Republic of Guatemala: Mr. Julio
Prado Garcia Salas, Minister for Co-ordinating Central American
Integration and Mr. Alberto Fuentes Mohr, Head of the Economic
Integration Bureau
The H. Junta de Gobierno of the Republic of El Salvador:
Mr. Gabriel Pilofla Araujo, Minister for Economic Affairs,
and Mr. Abelardo Torres, Under-Secretary for Economic Affairs
H. E. The President of the Republic of Honduras:
Mr. Jorge Bucso Arias, Minister for Economic and Financial
Affairs
H. E. The President of the Republic of Nicaragua:
Mr. Juan Jose Lugo Marenco,
Minister for Economic Affairs
who, having exchanged their respective full powers, found
to be in good and due form, have agreed as follows:
Chapter I: Central American Common Market
Article I
The Contracting States agree to establish among themselves a
common market which shall be brought into full operation
within a period of not more than five years from the date
on which the present Treaty enters into force. They further
agree to create a customs union in respect of their territories.
Article II
For the purposes of the previous article the Contracting Parties
undertake to bring a Central American free-trade area into full
operation within a period of five years and to adopt a standard
Central American tariff as provided for in the Central American
Agreement on the Equalization of Import Duties and Charges.
Chapter II: Trade Regime
Article III
The Signatory States shall grant each other free-trade
treatment in respect of all products originating in their
respective territories, save only for the limitations
contained in the special regimes referred to in Annex A of
the present Treaty.
Consequently, the natural products of the Contracting States
and the products manufactured therein shall be exempt from import
and export duties, including consular fees, and all other taxes, dues
and charges levied on imports and exports or charged in respect
thereof, whether they be of a national, municipal or any other
nature.
The exemptions provided for in this article shall not include
charges or fees for lighterage, wharfage, warehousing or handling
of goods, or any other charges which may legally be incurred for
port, storage or transport services; nor shall they include
exchange differentials resulting from the existence of two or
more rates of exchange or from other exchange arrangements in
any of the Contracting States.
Goods originating in the territory of any of the Signatory
States shall be accorded national treatment in all of them and
shall be exempt from all quantitative or other restrictions or
measures, except for such measures as may be legally
applicable in the territories of the Contracting States for
reasons of health, security or police control.
Article IV
The Contracting Parties establish special interim regimes in
respect of specific products exempting them from the immediate
free-trade treatment referred to in article III hereof.
These products shall be automatically incorporated into the
free-trade regime not later than the end of the fifth year in
which the present Treaty is in force, except as specifically
provided in Annex A.
The products to which special regimes apply are listed in
Annex A and trade in them shall be carried on in conformity
with the measures and conditions therein specified. These
measures and conditions shall not be amended except by multilateral negotiation in the Executive Council. Annex A is an
integral part of this Treaty.
The Signatory States agree that the Protocol on the Central
American Preferential Tariff, appended to the Central
American Agreement on the Equalization of Import Duties and
Charges, shall not apply to trade in the products referred to
in the present article for which special regimes are provided.
Article V
Goods enjoying the advantages stipulated in this Treaty shall
be designated as such on a customs form, signed by the exporter
and containing a declaration of origin. This form shall be
produced for checking by the customs officers of the countries
of origin and destination, in conformity with Annex B of this
Treaty.
If there is doubt as to the origin of all article and the
matter has not been settled by bilateral negotiation, any of the
Parties affected may request the intervention of the
Executive Council to verify the origin of the article
concerned. The Council shall not consider goods as originating
one of the Contracting States if they originate or are
manufactured in a third country and are only simply assembled,
wrapped, packed, cut or dilute in the exporting country.
In the cases mentioned in the previous paragraph, importation
of the goods concerned shall not be prohibited provided that a
guaranty is given to the importing country in respect of payment
of the import duties and other charges to which the goods may be
liable. The guaranty shall be either forfeited or refunded, as
the case may be, when the matter is finally settled.
The Executive Council shall be lay down regulations governing
the procedure to be followed in determining the origin of goods.
Article VI
If the goods traded are liable to internal taxes, charges or
duties of any kind levied on production, sale, distribution or
consumption in any of the signatory countries, the country
concerned may levy an equivalent amount on similar goods
imported from the other Contracting State, in which case
it must also levy at least an equivalent amount for the same
respective purposes on similar imports from third countries.
The Contracting Parties agree that the following conditions
shall apply to the establishment of internal taxes on
consumption:
Such taxes may be established in the amount deemed
necessary when there is domestic production of the article in
question, or when the article is not produced
in any of the Signatory States;
When the article is not produced in one Signatory State
but is produced in any of the others, the former State may not
establish taxes on consumption of the article concerned unless
the Executive Council so authorizes;
If a Contracting Party has established a domestic tax on
consumption, and production of the article so taxed is
subsequently begun in any of the other Signatory States, but the
article is not produced in the State that established the tax,
the Executive Council shall, if the State concerned so requests,
deal with the case and decide wheather the tax is compatible with
free trade. The States undertake to abolish these taxes on
consumption, in accordance with their legal procedures, on
receipt of notification to this effect from the Executive Council.
Article VII
No Signatory State shall establish or maintain regulations on
the distribution or retailing of goods originating in another
Signatory State when such regulations place, or tend to place
the said goods in an unfavourable position in relation to
similar goods of domestic origin or imported from any
other country.
Article VIII
Items which, by virtue of the domestic legislation of the
Contracting Parties, constitute State monopolies on the date of
entry into force of the present Treaty, shall remain subject
to the relevant legislation of each country and, if applicable,
to the provisions of Annex A of the present Treaty.
Should new monopolies be created or the regime of existing
monopolies be changed, the Parties shall enter into consultations
for the purpose of placing Central American trade in the items
concerned under a special regime.
Chapter III: Export Subsidies and Unfair Trade Practices
Article IX
The Governments of the Signatory States shall not grant customs
exemptions or reductions in respect of imports from outside
Central America of articles adequately produced in the
Contracting States.
If a Signatory State deems itself to be affected by the granting
of customs import franchises or by government imports not
intended for the use of the Government itself or of its agencies,
it may submit the matter to the Executive Council for its
consideration and ruling.
Article X
The Central Banks of the Signatory States shall co-operate
closely in order to prevent any currency speculation that might
affect the rates of exchange and to maintain the convertibility
of the currencies of the respective countries on a basis which,
in normal conditions, shall guarantee the freedom, uniformity
and stability of exchange.
Any Signatory State which establishes quantitative restrictions
on international monetary transfers shall adopt whatever
measures are necessary to ensure that such restrictions do
not discriminate against the other States.
Should serious balance-or-payments difficulties arise which
affect, or are apt to affect, monetary relations in respect of
payments between the Signatory States, the Executive Council,
acting of its own accord or at the request of one of the
Parties, shall immediately study the problem in co-operation
with the Central Banks for the purpose of recommending to the
Signatory States a satisfactory solution compatible with the
maintenance of the multilateral free-trade regime.
Article XI
No Signatory State shall grant any direct or indirect subsidy
favouring the export of goods intended for the territory of
the other States, or establish or maintain any system resulting
in the sale of such goods for export to any other Contracting
State at a price lower than that established for the sale of
similar goods on the domestic market, due allowance being made
for differences in the conditions and terms of sale and
taxation and for any other factors affecting price comparability.
Any measure involving the fixing of, or discrimination in,
prices in a signatory State which is reflected in the
establishment of sales prices for specific goods in the other
Contracting States at levels lower than those that would result
from the normal operation of the market in the exporting country
shall be deemed to constitute an indirect export subsidy.
If the importation of goods processed in a Contracting State
with raw materials purchased under conditions of monopoly at
artificially low prices should threaten existing production in
another Signatory State, the Party which considers itself
affected shall submit the matter to the consideration of the
Executive Council for a ruling as to whether unfair business
practice is in fact involved. The Executive Council shall, within
five days of the receipt of the request, either give its
ruling or authorize a temporary suspension of free trade,
while permitting trade to be carried on subject to the award of a
guaranty in the amount of the customs duties. This suspension
shall be effective for thirty days, within which period the
Executive Council shall announce its final decision. If no ruling
is forthcoming within the five days stipulated, the Party
concerned may demand a guaranty pending the
Executive Council's final decision.
However, tax exemptions of a general nature granted by a
Signatory State with a view to encouraging production shall
not to be deemed to constitute export subsidies.
Similarly, any exemption from internal taxes levied in the
exporting State on the production, sale or consumption of goods
exported to the territory of another State shall not be deemed to
constitute an export subsidy. The differentials resulting from
the sale of foreign currency on the free market at a rate of
exchange higher than the official rate shall not normally be
deemed to be an export subsidy; if one of the Contracting
States is in doubt, however, the matter shall be submitted to
the Executive Council for its consideration and opinion.
Article XII
As a means of precluding a practice which would be inconsistent
with the purposes of this Treaty, each Signatory State shall
employ all the legal means at its disposal to prevent the
export of goods from its territory to the territories of the
other States at a price lower than their normal value, if
such export would prejudice or be liable to prejudice the
production of the other States or retard the establishment of
a national or Central American industry.
Goods shall be deemed to be exported at a price lower than
their normal value if their export price is less than:
the comparable price in normal trade conditions, of
similar goods destined for domestic consumption in the
exporting country; or
the highest comparable price of similar goods for export
to a third country in normal trade conditions; or
the cost of production of the goods in the country of
origin, plus a reasonable amount for sales expenses and profit.
Due allowance shall be made in every case for existing
differences in conditions and terms of sale and taxation and
for any other factors affecting price comparability.
Article XIII
If a Contracting Party deems that unfair trade practices not
covered in article XI exist, it cannot impede trade by a
unilateral decision but must bring the matter before the
Executive Council so that the latter can decide whether in
fact such practices are being resorted to. The Council shall
announce its decision within not more than 60 days from the
date on which it received the relevant communication.
If any Party deems that there is evidence of unfair trade,
it shall request the Executive Council to authorize it to
demand a guaranty in the amount of the import duties.
Should the Executive Council fail to give a ruling within eight
days, the Party concerned may demand such guaranty pending the
Executive Council's final decision.
Article XIV
Once the Executive Council has given its ruling on unfair trade
practices, it shall inform the Contracting Parties whether,
in conformity with this Treaty, protective measures against
such practices should be taken.
Chapter IV: Transit and Transport
Article XV
Each of the Contracting States shall ensure full freedom of
transit through its territory for goods proceeding to or from
the other Signatory States as well as for the vehicles
transporting these goods.
Such transit shall not be subject to any deduction,
discrimination or quantitative restriction. In the event
of traffic congestion or other instances of Force majeure,
each Signatory State shall treat the mobilization of
consignments intended for its own population and those in transit
to the other States on an equitable basis.
Transit operations shall be carried out by the routes
prescribed by law for that purpose and shall be subject to the
customs and transit laws and regulations applicable in the
territory of transit.
Goods in transit shall be exempt from all duties, taxes and
other charges of a fiscal, municipal or ally other character
levied on transit, irrespective of their destination, but
may be liable to the charges usually applied for services
rendered which shall in no case exceed the cost thereof
and thus constitute de facto import duties or taxes.
Chapter V: Construction Enterprises
Article XVI
The Contracting States shall grant national treatment to
enterprises of other Signatory States engaged in the construction
of roads, bridges, dams, irrigation systems, electrification, of the Central American economic infrastructure.
housing and other works intended to further the development of
the Central American economic infrastructure.
Chapter VI: Industrial Integration
Article XVII
The Contracting Parties hereby endorse all the provisions of
the Agreement on the Regime for Central American Integration
Industries, and, in order to ensure implementation; among
themselves as soon as possible, undertake to sign, within a
period of not more than six months from the date of entry into
force of the present Treaty, additional protocols specifying
the industrial plants initially to be covered by the
Agreement, the free-trade regime applicable to their products
and the other conditions provided for in article III of
the Agreement.
Chapter VII: Central American Bank for Economic Integration
Article XVIII
The Signatory States agree to establish the Central American
Bank for Economic Integration which shall be a juridical person. The
Bank shall act as an instrument for the financing and promotion
of a regionally balanced, integrated economic growth.
To that end they shall sign the agreement constituting the
Bank, which shall remain open for
the signature or accession of any other Central American
State which may wish to become a member of the Bank.
It is, however, established that members of the Bank may not
obtain guaranties or loans form the Bank unless they
have previously deposited their instruments of
ratification of the following international agreements:
The present Treaty;
Multilateral Treaty on Free Trade and Central American Economic
Integration, signed on 10 June 1958;
Agreement on the Regimen for Central American Integration
Industries, signed on 10 July 1958; and
Central American Agreement on the Equalization of Import Duties
and Charges, Signed on 1 September 1959, and its Protocol signed
on the same day as the present Treaty. (United Nations,
Treaty series, Vo. 454, NO. 6542).
Chapter VIII: Tax Incentives to Industrial Development
Article XIX
The Contracting States, with a view to establishing uniform tax
incentives to industrial development, agree to ensure as soon
as possible a reasonable equalization of the relevant laws and
regulations in force. To that end they shall, within a period
of six months from the date of entry into force of the present
Treaty, sign a special protocol specifying the amount and type of
exceptions, the time limits thereof, the conditions under which
they shall be granted, the systems of industrial classification
and the principles and procedures governing their application.
The Executive council shall be responsible for co-ordinating
the application of the tax incentives of Industrial development.
Chapter IX: Organs
Article XX
The Central American Economic Council, composed of the
Ministers of Economic Affairs of the several Contracting Parties, is
hereby established for the purpose of integrating the Central
American economies and Co-ordinating the economic policy of
the Contracting States.
The Central American Economic Council shall meet as often
as required or at the request of any of the Contracting Parties. It
shall examine the work of the Executive Council and adopt such
resolutions as it may deem appropriate. The Central American
Economic Council shall be the organ responsible for
facilitating implementation of the resolutions on economic
integration adopted by the Central American Economic
Co-operation Committee. It may seek the advice of Central
American and international technical organs.
Article XXI
For the purpose of applying and administering the present
Treaty and of undertaking all the negotiations and work
designed to give practical effect to the Central American
Economic union, an Executive Council, consisting of one titular
official and one alternate appointed by each Contracting
Party, is hereby established.
The Executive Council shall meet as often as required, at the
request of one of the Contracting Parties or when convened by
the Permanent Secretariat, and its resolutions shall be
adopted by majority vote. In the event of disagreement,
recourse will be had to the Central American Economic Council
in order that the latter may give a final ruling.
Before ruling on a matter, the Executive Council shall determine
unanimously whether the matter is to be decided by a concurrent
vote of all its members or by a simple majority.
Article XXII
The Executive Council shall take such measures as it may deem
necessary to ensure fulfillment of the commitments entered
into under this Treaty and to settle problems arising
from the implementation of its provisions. It may likewise
propose to the Governments the signing of such additional
multilateral agreements as may be required in order to
achieve the purpose of Central American economic integration,
including a customs union in respect of their territories.
The Executive Council shall assume, on behalf of the Contracting
Parties, the functions assigned to the Central American
Trade Commission in the Multilateral Treaty on Free Trade and
Central American Economic Integration and the Central American
Agreement on the Equalization of Import Duties and Charges, as
well as those assigned to the Central American Industrial
Integration Commission in the Agreement on the Regime for
Central American Integration Industries, as well as the powers
and duties of the joint commissions set up under bilateral
treaties in force between the Contracting Parties.
Article XXIII
A Permanent Secretariat is hereby instituted, as a juridical
person, and shall act as such both for the Central American
Economic Council and the Executive Council established under
this Treaty.
The Secretariat shall have its seat and headquarters in
Guatemala City, capital of the Republic of Guatemala, and shall
be headed by a Secretary-General appointed for a period of
three years by the Central American Economic Council. The
Secretariat shall establish such departments and section as
may be necessary for the performance of its functions. Its
expenses shall be governed by a general budget adopted annually
by the Central American Economic Council and each Contracting
Party shall contribute annually to its support an amount
equivalent to not less than fifty thousand United States dollars
(US$50,000), payable in the respective currencies of the
Signatory States.
Members of the Secretariat shall enjoy diplomatic immunity.
Other diplomatic privileges shall be granted only to the
Secretariat and to the Secretary-General.
Article XXIV
The Secretariat shall ensure that this Treaty, the Multilateral
Treaty on Free Trade and Central American Economic Integration,
the Agreement on the Regime for Central American Integration
Industries, the Central American Agreement on the
Equalization of Import Duties and Charges, bilateral or
multilateral treaties on free trade and economic integration
in force between any of the Contracting Parties, and
all other agreements relating to Central American economic
integration already signed or that may be signed hereafter, the
interpretation of which has not been specifically entrusted to
another organ, are properly executed among the Contracting
parties.
The Secretariat shall ensure implementation of the resolutions
adopted by the Central American Economic Council and
the Executive Council established under this Treaty and
shall also perform such functions as are assigned to it by the
Executive Council. Its regulations shall be approved
by the Economic Councils.
The Secretariat shall also undertake such work and studies as
may be assigned so it by the Executive Council and the Central
American Economic Council. In performing these duties, it shall
avail itself of the studies and work carried out by other Central
American and international organs and shall, where appropriate,
enlist their co-operation.
Chapter X: GENERAL PROVISIONS
Article XXV
The Signatory States agree not to sign unilaterally with
non-Central American countries any new treaties that
may affect the principles of Central American economic
integration. They further agree to maintain the "Central
American exception clause" in any trade agreements they
may conclude on the basis of most-favoured-nation
treatment with any countries other than the Contracting States.
Article XXVI
The Signatory States agree to settle amicably, in the spirit
of this Treaty, and through the Executive Council or the
Central American Economic Council, as the case may be, any
differences which may arise regarding the interpretation or
application of any of its provisions. If agreement cannot be
reached, they shall submit the matter to arbitration. For
the purpose of constituting the arbitration tribunal, each
Contracting Party shall propose to the General Secretariat
of the Organization of Central American States the names of
three magistrates from its Surpreme Court of Justice.
From the complete list of candidates, the Secretary-General of
the Organization of Central American States and the Government
representatives in the Organization shall select, by drawing
lots, one arbitrator for each Contracting party, no two of
them may be nationals of the same State. the award of the
arbitration tribunal shall require the concurring votes of
not less than three members, and shall have the affect of
re judicata for all the Contracting Parties so far as it
contains any ruling concerning the interpretation or
application of the provisions of this Treaty)
Article XXVII
The present Treaty shall, with respect to the Contracting
Parties, take precedence over the Multilateral Treaty
on Free Trade and Central American Economic
Integration and any other bilateral or multilateral
free-trade instruments signed between the Contracting Parties;
it shall not, however, affect the validity of those
agreements.
The provisions of the trade and economic integration agreements
referred to in the previous paragraph shall be applied
between the respective Contracting Parties
in so far as they are not covered in the present Treaty.
Pending ratification of the present Treaty by any of the
Contracting Parties, or in the event of its denunciation
by any of them, the trade relations of the Party concerned
with the other Signatory States shall be governed by the
commitments entered into previously under the existing instruments
referred to in the preamble of the present Treaty.
Article XXVIII
The Contracting Parties agree to hold consultations in the
Executive Council prior to signing any new treaties among themselves
which may affect free trade.
The Executive Council shall examine each case and determine the
effects that the conclusion of such agreements might produce
on the free-trade regime established in the present treaty.
On the basis of the Executive Council's examination, the
Party which considers itself affected by the conclusion of
these new treaties may adopt whatever measures the Council may
recommend in order to protect its interests.
Article XXIX
For the purposes of customs regulations relating to free trade,
the transit of goods and the application of the Central
American Standard Import Tariff, the Contracting Parties
shall, within a period of one year from the date of entry into
force of the present Treaty, sign special protocols providing
for the adoption of a Central American Standard Customs Code and
the necessary transport regulations.
Chapter XI: FINAL PROVISIONS
Article XXX
This Treaty shall be submitted for ratification in each
State in conformity with its respective constitutional
or legislative procedures.
The instruments of ratification shall be deposited with
the General Secretariat of the Organization of Central
American States.
The Treaty shall enter into force, in the case of the first
three States to ratify it eight days following the date of
deposit of the third instrument of ratification and,
in the case of the States which ratify it subsequently, on
the date of deposit of the relevant instrument.
Article XXXI
This Treaty shall remain effective for a period of twenty
years from the date of its entry into force and
shall be indefinitely.
Upon expiry of the twenty-year period mentioned in the
previous paragraph, the Treaty may be denounced by any of
the Contracting Parties. Denunciation shall take effect, for
the denouncing State, five years after notification, and the
Treaty shall remain in force among the other Contracting
States so long as at least two of them remain parties thereto.
Article XXXII
The General Secretariat of the Organization of Central American
States shall act as depository of this Treaty and shall
send a certified copy thereof to the Ministry of Foreign
Affairs of each of the Contracting States and shall also notify
them immediately of the deposit of each instrument of
ratification as well as of any denunciation which may
be made. When the Treaty enters into force, it shall also
transmit a certified copy thereof to the Secretary-General
of the United Nations for the purposes of registration as
set forth in Article 102 of the United Nations Charter.
Article XXXIII
The present Treaty shall remain open for the accession of any
Central American State not originally a party thereto.
Provisional article
As soon as the Government of the Republic of Costa Rica formally
accedes to the provisions of this Treaty, the organs hereby
established shall form part of the Organization of Central
American States (OCAS) by an incorporation agreement and the
OCAS shall be reorganized in such a way that the organs
established by this Treaty retain all their structural
and functional attributes.
IN WITNESS WHEREOF the respective plenipotentiaries have signed the present
Treaty in the City of Managua, capital of the Republic of Nicaragua, this thirteenth
day of the month of December nineteen hundred and sixty.
For the Government of Guatemala:
Julio Prado Garcia Salas
Minister for Co-ordinating Central
American Integration |
Alberto Fuentes Mohr
Head of the Economic
Integration Bureau |
|
For the Government of El Salvador:
Gabriel Pilona Araujo
Minister for Economic Affairs |
Albelardo Torres
Under-Secretary for Economic Affairs |
|
For the Government of Honduras:
Jorge Bueso Arias
Minister for Economic and Financial Affairs |
For the Government of Nicaragua:
Juan Jose Lugo Marenco
Minister of Economic Affairs |
Annex A: Schedule of Goods Subject to Special Regimes in Conformity with Article IV of the Present Treaty
In so far as the description of a heading or commodity coincides
with the description in the Standard Central American Tariff
Nomenclature (NAUCA) of the group (three digits), items (five digits) or
sub-items (seven digits) which appear in the left-hand column, the
heading or commodity shall be understood to embrace everything included
in the group, item or sub-item of the NAUCA and its Coding Manual.
Whenever the description of the heading or commodity is more restricted
that the title of the group, item or sub-item indicated in the left-hand
column, the description shall be understood to include only that heading
or commodity or the articles specifically mentioned in the schedule.
In the case of the goods in the present Annex subject to a
preferential tariff, it shall be understood that:
The tariffs indicated represent the total amount of taxes applicable
to trade between the contracting parties, including custom duties,
consular fees and other import duties, charges and surcharges in force
in the Signatory States:
The specific customs duties are applied on the basis of a standard
unit of one gross kilogramme (G.K.) and are expressed in a monetary unit
equivalent to the United States dollar;
The ad valorem customs duties are charged on the c.i.f. value
of the goods, calculated up to the place of entry in the territory of
the importing country.
In the case of the goods in the present Annex subject to preferential
tariffs expressed in percentages of the import duties and charges, it
shall be understood that:
The preferential percentages shall be calculated on the basis of
payment of customs duties, consular fees and other import duties,
charges and surcharges in force in the Signatory States on the date with
the present Treaty is signed;
In cases where the equalization of tariffs on goods subject to
progressive reductions takes place after the present Treaty enters into
force, and the agreed standard tariff level is at any time lower than
the preferential tariff established in this treaty, the Contracting
States shall apply the preferential percentage on the lowest tariff. The
Executive Council shall examine each case and shall recommend to the
Parties concerned, in explanatory forms, whatever adjustments they
should make in applying the previous provisions.
Goods subject to quotas shall enjoy free-trade treatment in the
amount of the quotas, which shall be reciprocal. Such amounts in excess
of the basic quotas as may be authorized by Governments shall also enjoy
free-trade treatment. Any unauthorized surplus shall remain subject to
the import duties and charges in force in the Contracting States on the
date of signature of the present Treaty or as specifically indicated in
the schedule forming part of this Annex.
Application of the export and import controls established in this
Annex shall be optional for each of the Governments of the Signatory
States.
When the import control is applied, the goods shall enjoy free-trade
treatment only if the relevant licence has been issued. If the licence
has not been issued, the goods shall remain subject to payment of
duties, charges, quantitative restrictions in force and to the general
provisions governing imports.
Goods to which export controls are applied can be exported only if the
relevant licence has been issued.
The goods subject to monoploy mentioned in article VIII of the
present Treaty shall be given reciprocal treatment.
If one of the Parties restricts trade in one or more monoplozed goods,
the Contracting Party affected may establish similar limitations on
trade in the same goods.
If free trade in an item included in the schedule forming part of
this Annex is subject to previous tariff equalization in respect of
import duties and charges, equalization shall be deemed to be achieved
when the same tariff is in force between the two Contracting Parties.
The Executive Council shall inform the Parties of the date on which
equalization is achieved in conformity with the previous paragraph.
Tables for Annex A are not reproduced in this version
Annex B: Customs Procedures
Article I
The goods, in which free trade is authorized under the General Treaty on
Central American Economic Integration shall be forwarded by the customs
offices of exit and of entry in the Contracting States, subject to
compliance with the customs regulations and formalities applicable in
the States concerned and upon production of the customs for mentioned in
article V of the Treaty.
The said form shall serve both as an application for forwarding and as a
certificate of origin.
Article II
The declaration contained in the aforesaid customs form shall be marked
as inspected by the central customs office or by the customs office of
exit in the importing country.
If the customs officer responsible for inspecting or checking the
declaration has doubts as to its accuracy, he shall refer the matter for
decision to the central customs office wit which he is responsible.
Article III
The necessary customs form shall be made out in five copies according to
the Customs Form.
Tables for Annex B are not reproduced in this version
Notes:
1 In accordance with article XXX, the Treaty came into force in respect of
Guatemala, El Salvador and Nicaragua on 3 June 1961, eight days
after the deposit of the third instrument of ratification,
and in respect of Honduras on 27 April 1962, the date of
deposit of its instrument of ratification. The instruments
of ratification were deposited with the, Secretary- General of
the Organization of Central American States on the dates
indicated:
Guatemala .......................................5 May 1961
El Salvador ......................................8 May 1961
Nicaragua ......................................26 May 1961
Honduras (with reservation*)..........27 April 1962
*(SPANISH TEXT)
"Honduras no queda obligada a someterse a la accion de los
tribunales internacionales o extranjeros ni aceptar el
arbitraje cuando cualquiera de las partes contratantes
no pueda someterse a dichos procedimientos para resolver
cuestiones previstas en el Artículo XXVI de este tratado."
(TRANSLATION)
Honduras shall not be bound to submit to the jurisdiction of
international or foreign courts or to accept arbritation when
any of the Contracting Parties is unable to submit to these
procedures for the settlement of questions provided for in
article XXVI of this Treaty.
2 United Nations, Treaty Series, Vol. 454. No 6539
3 United Nations, Treaty Series, Vol. 454, No. 6542
4 Nations Unies, Recueil des Traites, vol. 383, p.3.
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