ANNEX C
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ANNEX C

SECTION 1

1. For the purposes of this Annex:
 

(a) " Force " means ­
 
(i) in relation to the forces of the United Kingdom and to the forces of any other country within the British Commonwealth of Nations to which this Annex applies pursuant to paragraph 3 of this Section, the personnel belonging to the land, sea and air armed services of that country when in the territory of the Republic of Cyprus, provided that the person in question is posted or attached to or is on an official visit to any unit stationed in the Island of Cyprus, or is in the Island in the course of transit on an official movement order;

(ii) in relation to the forces of the Republic of Cyprus, Greece, or Turkey, the personnel belonging to the land, sea and air armed services of those countries when in the Akrotiri Sovereign Base Area or the Dhekelia Sovereign Base Area, provided that the person m question is posted or attached to or is on an official visit to any unit stationed in the Island of Cyprus, or is in the Island in the course of transit on an official movement order;

this definition shall apply, for the period of one year from the date of entry into force of this Treaty, to personnel of the land. sea and air armed services of the Contracting Parties when visiting the Island of Cyprus to make use of official leave and recreation facilities established there, and shall so apply thereafter unless the receiving State gives three months' notice to the sending State of its wish that this definition shall no longer so apply;

(b) " Civilian component " means the civilian personnel accompanying a force as defined above who are employed in the service of a force or by an authorised service organisation accompanying a force, and who are not stateless persons nor nationals of nor ordinarily resident in the territory of the receiving State as hereinafter defined;

(c) " Authorised service organisation " means any one of the organisations listed in the Schedule to Part I of Annex B to this Treaty;

(d) " Dependent " means ­
 

(i) the wife or husband of,

(ii) any person wholly or mainly maintained by or in the custody or charge of, and

(iii) any other person (not being a national of nor ordinarily resident in the Republic of Cyprus) who is in domestic employment in the household of, a member of a force or civilian component;

(e) " Sending State" means the State to which the force in question belongs;
(f) " Receiving State" means ­
 

(i) in relation to the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area, the United Kingdom,

(ii) in relation to the territory of the Republic of Cyprus, the Republic of Cyprus;

(g) " The territory of the receiving State " means ­
 

(i) in relation to the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area, the territory of the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area as defined in Annex A to this Treaty,

(ii) in relation to the Republic of Cyprus, the territory of the Republic of Cyprus as defined in Article 1 of this Treaty, and includes the territorial sea adjacent to each such territory;

(h) " Service authorities of the sending State" means those authorities of a sending State who are empowered by its law to enforce the service law of that State with respect to members of its forces or civilian component or dependents;

(i) " Service vehicles " means vehicles, including hired vehicles, which are exclusively in the official service of a force or authorised service organisation;

(j) " Sites " means the Sites which the Government of the United Kingdom is entitled to use pursuant to Section 1 of Part II of Annex B to this Treaty,

(k) References to the Island of Cyprus, or to the Akrotiri Sovereign Base Area or to the Dhekelia Sovereign Base Area shall include the adjacent territorial sea.

2. " Forces of the United Kingdom " in this Annex shall be understood as including the forces of any territory for the international relations of which the Government of the United Kingdom is responsible.

3. IL the United Kingdom so requests on behalf of the Government of any country within the British Commonwealth of Nations whose forces may from time to time be stationed with or operating in conjunction with the forces of the United Kingdom based on the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area, and if the United Kingdom declares on behalf of the Government in question that such Government accepts the obligations under this Annex of the United Kingdom as a sending State, then the Republic of Cyprus undertakes to grant the rights set out in this Annex to the authorities of the Government in question, their forces, authorised service organisations, members of the force or civilian component, and dependents to the same extent as they are granted to those of the United Kingdom.

4. Notwithstanding paragraphs 1 and 3 of this Section, the sending State and the receiving State may agree that certain individuals, units or formations shall not be regarded as constituting or included in a " force " for the purposes of this Annex.
 

SECTION 2

It is the duty of a force and an authorised service organisation and the members of a force or civilian component as well as their dependents to respect the law of the receiving State, and to abstain from any activity inconsistent with the spirit of this Treaty and, in particular, from any political activity in the receiving State. It is also the duty of the sending State to take necessary measures to that end.
 

SECTION 3

1. Subject to the relevant provisions of Part II of Annex B to this Treaty and to compliance with arrangements made by agreement for the administration of the boundaries between the Republic of Cyprus and the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area, and provided that they are in possession of the appropriate identity document as laid down in paragraph 2 of this Section, members of a force or civilian component and dependents shall be exempt from passport and visa regulations and immigration inspection on entering or leaving the territory of a receiving State. They shall also be exempt from the regulations of the receiving State on the registration and control of aliens, but shall not be considered as acquiring any right to permanent residence or domicile in the territory of the receiving State.

2. For the purposes of paragraph 1 of this Section, the appropriate identity document, which shall be produced on demand by a person authorised to make a demand, is ­
 

(a) in respect of a member of a force, his official naval, military or air force identity card, showing names, date of birth, rank and number (if any), service and photograph, together with a further document in the English, Greek and Turkish languages' indicating that he is a member of that force,

(b) in respect of a member of a civilian component or a dependent, a passport, or an identity document in the English, Greek and Turkish languages indicating its bearer's status as a member of a civilian component or a dependent.

3. If a member of a force or civilian component leaves the employ of the sending State or an authorised service organisation and is not repatriated, the authorities of the sending State shall immediately inform the authorities of the receiving State, giving such particulars as may be required. The authorities of the sending State shall similarly inform the authorities of the receiving State of any member of a force who has absented himself without leave for more than 21 days.

4. If the receiving State has requested the removal from its territory of a member of a force or civilian component or has made an expulsion order against an ex­member of a force or civilian component or against a dependent of a member or ax­member, the authorities of the sending State shall be responsible for receiving the person concerned within their own territory or otherwise disposing of him outside the receiving State. This paragraph shall apply only to persons who are not nationals of the receiving State and have
entered the receiving State as members of a force or civilian component or for the purpose of becoming such members, and to the dependents of such persons.
 

SECTION 4

The receiving State shall accept as valid, without a driving test or fee, the driving permit or licence or service driving permit issued by the sending State or the authorities of any territory under its jurisdiction to a member of a force or civilian component, or a dependent.
 

SECTION 5

1. Members of a force may wear uniform or civilian clothes; they shall, however, wear uniform when actually performing their official duties within the territory of the receiving State. This paragraph shall not preclude the conclusion of special arrangements on this matter between the authorities of the sending and receiving States.

2. Service vehicles of a sending State shall carry a distinctive mark indicating their status as such, in addition to their registration number.
 

SECTION 6

Members of a force may possess and carry arms, if they are authorised to do so by their orders. The receiving and sending States shall give sympathetic consideration

possession and carriage of arms.

to requests from each other concerning the
 

SECTION 7

1. A receiving State shall give effect to the reasonable needs of a force to carry out its duties without hindrance and to maintain its normal administrative arrangements; and the following provisions shall apply in respect of any legislation (including subsidiary legislation) having the effect of prohibiting, hindering, limiting, or imposing conditions on, the possession, operation, or use for an official purpose of arms, explosives, vessels, aircraft, equipment or stores belonging to a force, or having the effect of hampering a force in the performance of its duties or in the provision of amenities for the members of a force, civilian component or dependents, that is to say ­

(a) if the armed services of the United Kingdom or their property were specifically exempted from the operation of any such legislation which was part of the law obtaining in the Island of Cyprus immediately before the entry into force of this Treaty, such exemption shall extend to a force for so long as such legislation continues to be in force and pending further legislation by the receiving State;

(b) if the armed services of the United Kingdom or their property were exempted from the operation of any legislation as above by virtue of Section 42 of the Interpretation Law of the Colony of Cyprus or of the rule of law with respect to the application of enactments to the Crown, such exemption shall extend to a force

(i) until such legislation is repealed; or

(ii) until further legislation specifically providing for, or terminating, the exemption, as the case may be, is enacted; or

(iii) until' the expiration of the period of one year from the date of the entry into force of this Treaty and of any further period that may be agreed upon in order to enable the sending and receiving States in consultation to examine the necessity or otherwise for the retention and specific provision of any such exemptions, and to enable the receiving State to enact legislation accordingly;

whichever shall first occur;

(c) if the force or its property are not specifically exempted from the operation of any legislation as above, the receiving State shall give sympathetic consideration to requests for specific exemption of the force or of its property from the operation of the legislation hereinbefore mentioned;

(d) if any such legislation shall be enacted by the receiving State after the entry into force of this Treaty, the receiving State shall give sympathetic consideration to requests for the exemption of the force or of its property from the operation thereof.

2. Authorised service organisations of a sending State shall be exempt from legislation concerning the constitution, management and conduct of companies, or of organisations as such, and from legislation affecting their commercial and other activities, subject however to the relevant provisions of Part II of Annex B to this Treaty. The United Kingdom authorities shall comply with reasonable requests by the authorities of the Republic of Cyprus for information as to the activities of authorised service organisations.
 

SECTION 8

1. Subject to the provisions of this Section ­
 

(a) the service authorities of the sending State shall have the right to exercise within the receiving State all criminal and disciplinary jurisdiction conferred on them over all persons who are by the law of the sending State subject to the jurisdiction of its service Courts,

(b) the authorities of the receiving State shall have jurisdiction over the members of a force or civilian component and their dependents with respect to offences committed within the territory of the receiving State and punishable by the law of that State.

2. ­( a) The service authorities of the sending State shall have the right to exercise exclusive jurisdiction over persons who are by the law of the sending State subject to the jurisdiction of its service Courts with respect to offences. including offences relating to its security, punishable by the law of the sending State, but not by the law of the receiving State.

(b) The authorities of the receiving State shall have the right to exercise exclusive jurisdiction over members of a force or civilian component and their dependents with respect to offences, including offences relating to the security of that State, punishable by its law but not by the law of the sending State.

(c) For the purposes of this paragraph and of paragraph 3 of this Section an offence against the security of that State shall include
 

(i) treason against the State;

(ii) sabotage, espionage or violation of any law relating to official secrets of that State, or secrets relating to the national defence of that State.

(a) The service authorities of the sending State shall have the prima right to exercise jurisdiction over a member of a force or civillian component or a dependent in relation to
 
(i) offences solely against the property or security of that State offences solely against the person or property of another member of the force or civilian component of that State or of a dependent or offences committed solely within the Sites;

(ii) offences arising out of any act of omission done in the performance of official duty.
 

(b) In the case of any other offence, the authorities of the receiving State shall have the primary right to exercise jurisdiction.

(c) If the State having the primary right decides not to exercise jurisdiction, it shall notify the authorities of the other State as soon practicable. The authorities of the State having the primary rig shall give sympathetic consideration to a request from the authorities of the other State for a waiver of its right in cases where that other State considers such waiver to be of particular importance and cases of minor offences where the receiving State has the prima right and where the service authorities of the sending State can impose a suitable punishment by disciplinary action without recourse to court.

4. The foregoing provisions of this Section shall not imply any right for the service authorities of the sending State to exercise jurisdiction over persons who are nationals of or ordinarily resident in the receiving State, unless they are members of the forces of the sending State.

5.­(a) The authorities of the receiving and sending States shall assist each other in the arrest of members of a force or civilian component or their dependents in the territory of the receiving State and in handing them over to the authority which is to exercise jurisdiction in accordance with the above provisions.

(b) The authorities of the receiving State shall notify promptly the service authorities of the sending State of the arrest of any member of a force or civilian component or a dependent.

(c) The sending State, if the receiving State is to exercise jurisdiction over a member of a force or civilian component or a dependent, shall have the right to take custody of him until he is brought to trial by the receiving State; provided that the sending State undertakes to present him to the Courts of the receiving State for investigatory proceedings and trial when required.

6. ­ (a) The authorities of the receiving and sending States shall assist each other in the carrying out of all necessary investigations into offences, and in the collection and production of evidence, including the seizure and, in proper cases, the handing over of objects connected with an offence. The handing over of such objects may, however, be made subject to their return within the time specified by the authority delivering them.

(b) The authorities of the receiving and sending States shall notify each other of the disposition of all cases in which there are concurrent rights to exercise jurisdiction.

7. ­ a) A death sentence shall not be carried out in the receiving State on a member of a force or civilian component or a dependent if the legislation of either the receiving or the sending State does not provide for such punishment in a similar case.

(b) The authorities of the receiving State shall give sympathetic consideration to a request from the authorities of the sending State for assistance in carrying out a sentence of imprisonment pronounced by the authorities of the sending State under the provisions of this Section within the territory of the receiving State.

8. Where an accused has been tried in accordance with the provisions of this Section by the authorities of one State and has been acquitted. or has been convicted, he may not be tried again for the same offence by the authorities of the other State. However, nothing in this paragraph shall prevent the service authorities of the sending State from trying a member of its force for any violation of rules of discipline arising from an act or omission which constituted an offence for which he was tried by the authorities of the receiving State.

9. Whenever a member of a force or civilian component or a dependent is prosecuted under the jurisdiction of the receiving State he shall be entitled ­

(a) to a prompt and speedy trial;

(b) to be informed a reasonable time in advance of trial of the specific charge or charges made against him;

(c) to be confronted with the witnesses against him;

(d) to have compulsory process for obtaining witnesses in his favour if
they are within the jurisdiction of the receiving State;

(e) to have legal representation of his own choice for his defence or to have free or assisted legal representation under the conditions prevailing for the time being in the receiving State;

(f) if he considers it necessary, to have the services of a competent
interpreter; and to communicate with a representative of the Government of the sending State and, when the rules of the court permit, to have a representative of that Government present at his trial.

SECTION 9

1. Each Contracting Party waives all its claims against any other Contracting Party for damage to any property owned by the former and used by the land, sea or air armed services of the former, if such damage ­
 

(a) was caused by a member or an employee of the armed services of the latter Contracting Party in the execution of his duties; or
(b) arose from the use of any vehicle, vessel or aircraft owned by the latter Contracting Party and used by its armed services provided either that the vehicle, vessel or aircraft causing the damage was being used in connexion with official duties or that the damage was caused to property being so used.

However, paragraph 2 of this Section, and not this paragraph, shall apply to claims for such damage if the damage was caused by the malicious act of a member or employee of the armed services of the former Contracting Party. Claims for maritime salvage by one Contracting Party against any other Contracting Party shall be waived, provided that the vessel or cargo salved was owned by a Contracting Party and being used by its armed services.

2. ­ (a) In the case of damage caused or arising as stated in paragraph I of this Section to other property owned by a Contracting Party and located in its territory, the issue of the liability of any other Contracting Party shall be determined and the amount of damage shall be assessed, unless the Contracting Parties concerned agree otherwise, by a sole arbitrator selected in accordance with sub­paragraph (b) of this paragraph. The arbitrator shall also decide any counter­claims arising out of the same incident.

(b) The arbitrator referred to in sub­paragraph (a) above shall be selected by agreement between the Contracting Parties concerned from amongst the nationals of the receiving State who hold or have held high judicial office. If the Contracting Parties concerned are unable, within two months, to agree upon the arbitrator, either may request the President of the High Court of Justice of the Republic of Cyprus to select an arbitrator with the aforesaid qualifications.

(c) Any decision taken by the arbitrator shall be binding and conclusive upon the Contracting Parties.

(d) The amount of any compensation awarded by the arbitrator shall be distributed in accordance with the provisions of sub­paragraphs (e), (i), (ii) and (iii) of paragraph 5 of this Section.

(e) The compensation of the arbitrator shall be fixed by agreement between the Contracting Parties concerned and shall, together with the necessary expenses incidental to the performance of his duties, be defrayed in equal proportions by them.

3. For the purposes of paragraphs 1 and 2 of this Section, the expression " owned by a Contracting Party " in the case of a vessel includes a vessel on bare boat charter to that Contracting Party or requisitioned by it on bare boat terms or seized by it in prize (except to the extent that the risk of loss or liability is borne by some person other than such Contracting Party).

4. Each Contracting Party waives all its claims against any other Contracting Party for injury or death suffered by any member of its armed services while such member was engaged in the performance of his official duties.

5. Subject to the provisions of paragraph 6 of this Section, claims (other than contractual claims and those to which the provisions of paragraph 7 or 8 of this Section apply) arising out of acts or omissions of members of a force or civilian component done in the performance of official duty, or out of acts or omissions of persons locally employed in the service of a force done in the performance of their duties as such, or out of any other act, omission or occurrence for which a force or civilian component is legally responsible, and causing damage in the territory of the receiving State to third parties, other than any of the Contracting Parties, shall be dealt with by the receiving State in accordance with the following provisions: ­
 

(a) Claims shall be filed, considered and settled or adjudicated in accordance with the laws and regulations of the receiving State with respect to claims arising from the activities of its own armed forces.

(b) The receiving State may settle any such claims, and payment of the amount agreed upon or determined by adjudication shall be made by the receiving State in its currency.

(c) Such payment, whether made pursuant to a settlement or to adjudication of the case by a competent tribunal of the receiving State, or the final adjudication by such a tribunal denying payment, shall be binding and conclusive upon the Contracting Parties.

(d) Every claim paid by the receiving State shall be communicated to the sending States concerned together with full particulars and a proposed distribution in conformity with sub­paragraphs (e), (i), (ii) and (iii) of this paragraph. In default of a reply within two months the proposed distribution shall be regarded as accepted.

(e) The cost incurred in satisfying claims pursuant to the preceding sub­paragraphs of this paragraph and paragraph 2 of this Section shall be distributed between the Contracting Parties, as follows: ­
 

(i) Where one sending State alone is responsible, the amount awarded or adjudged, shall be distributed in the proportion of 25 per cent chargeable to the receiving State and 75 per cent chargeable to the sending State.

(ii) Where more than one State is responsible for the damage, the amount awarded or adjudged shall be distributed equally among them; however, if the receiving State is not one of the States responsible, its contribution shall be half that of each of the sending States.

(iii) Where the damage was caused by the armed services of the Contracting Parties and it is not possible to attribute it specifically to one or more of those armed services, the amount awarded or adjudged shall be distributed equally among the Contracting Parties concerned; however, if the receiving State is not one of the States by whose armed services the damage was caused, its contribution shall be half that of each of the sending States concerned.

(iv) Every half­year, a statement of the sums paid by the receiving State in the course of the half­yearly period in respect of every case regarding which the proposed distribution on a percentage basis has been accepted shall be sent to the sending State concerned, together with a request for reimbursement. Such reimbursement shall be made within the shortest possible time in the currency of the receiving State.

(f) In cases where the application of the provisions of sub­paragraphs (b) and (e) of this paragraph would cause a Contracting Party serious hardship, it may request the arrangement of a settlement of a different nature under the procedure set out in Article 10 of this Treaty.

(g) A member of a force or civilian component shall not be subject to any proceedings for the enforcement of any judgment given against him in the receiving State in a matter arising from the performance of has official duties.

(h) Except in so far as sub­paragraph (e) of this paragraph applies to claims covered by paragraph 2 of this Section, the provisions of this paragraph shall not apply to any claim arising out of or m connexion with the navigation or operation of a ship or the loading, carriage, or discharge of a cargo, other than claims for death or personal injury to which paragraph 4 of this Section does not apply.
 

(a) the claim shall be made to the appropriate District Officer or other officer nominated for the purpose by the Government of the receiving State (hereinafter in this paragraph referred to as the " Officer "), who shall forthwith notify the appropriate authorities of the sending State;

(b) the Officer shall, as expeditiously as possible, make any necessary investigation of the claim and shall forward to the appropriate authorities of the sending State particulars of the claim, together with the results of any such investigation, his recommendations and copies of any experts' reports or other documentary evidence which may have been obtained by him or submitted by the claimant;

(c) the appropriate authorities of the sending State shall, as expeditiously as possible and after making any further investigation that they may think necessary, consider the claim, taking into account the results of any investigation made by the Officer, his recommendations and any copies of experts' reports or other documents forwarded by him, and shall then notify the Officer whether they are prepared to pay any compensation in satisfaction of the claim and, if they are so prepared, the amount of such compensation;

(d) on receipt of that notification, the Officer shall communicate to the claimant its contents and, where the claimant accepts the amount of any compensation offered, the claim shall be settled by the Officer paying to the claimant the amount of compensation accepted by him which shall then be reimbursed by the sending State;

(e) if a claim is rejected altogether, or if the claimant does not agree to the compensation offered to him, or if, within four months from the date of the submission of the claim no compensation is offered to the claimant, the question whether any compensation is payable or of the amount of such compensation, as the case may be, may be submitted by the claimant or by the Officer or by the appropriate authorities of the sending State to an arbitrator appointed in accordance with sub­paragraph (b) of paragraph 2 of this Section, whose decision on the question shall be final and conclusive:

Provided that
 

(i) the receiving State may at any time elect that the provisions of subparagraphs (a) to (f) of paragraph 5 of this Section shall apply m lieu of the provisions of this paragraph, and the provisions of sub­paragraphs (a) to (f) of paragraph 5 of this Section shall apply to claims made after the expiration of four months from the notification of that election to the sending State

(ii) the receiving State may at any time thereafter revoke the election aforesaid, and the provisions of this paragraph shall apply to claims made after the expiration of four months from the notification of that revocation to the sending State;

(iii) the right of election accorded by this proviso may be exercised by the receiving State as many times as that State may think fit

(iv) the provisions of this paragraph shall not be interpreted as preventing the authorities of the sending State and the authorities of the receiving State from modifying by agreement the procedure to be applied m particular cases or particular classes of cases.

7. ­ (a) Claims against members of a force or civilian component arising out of tortious acts or omissions in the receiving State not done in the performance of official duty shall be dealt with in the following manner:
 

(i) The authorities of the receiving State shall consider the claim and assess compensation to the claimant in a fair and just manner taking into account all the circumstances of the case, including the conduct of the injured person, and shall prepare a report on the matter.

(ii) The report shall be delivered to the authorities of the sending State who shall then decide without delay whether they will offer an ex gratia payment, and if so, of what amount.

(iii) If an offer of ex gratia payment is made, and accepted by the claimant in full satisfaction of his claim, the authorities of the sending State shall make the payment themselves and inform the authorities of the receiving State of their decision and of the sum paid.

(b) Nothing in sub­paragraph (a) of this paragraph shall affect the jurisdiction of the courts of the receiving State to entertain an action against a member of a force or civilian component unless and until there has been payment in full satisfaction of the claim.

8. Claims arising out of the unauthorised use of any vehicle of the armed services of a sending State shall be dealt with in accordance with paragraph 7 of this Section, except in so far as the force or civilian component is legally

9. If a dispute arises as to whether a tortious act or omission of a member of a force or civilian component was done in the performance of official duty
or as to whether the use of any vehicle of the armed services of a sending State. was unauthorised, the question shall be submitted to an arbitrator appointed in accordance with sub­paragraph (b) of paragraph 2 of this Section, whose decision on this point shall be final and conclusive.

10.. The sending State shall not claim immunity from the jurisdiction of the courts of the receiving State for members of a force or civilian component in respect of the civil jurisdiction of the courts of the receiving State except to the extent provided in sub­paragraph (g) of paragraph 5 of this Section.

11.. The authorities of the sending State and of the receiving State shall co­operate in the procurement of evidence for a fair hearing and disposal of claims in regard to which the Contracting Parties are concerned.

12. This Section shall not apply to personnel employed by an authorised service organisation nor to claims by, or arising out of the acts or omissions of, such personnel.

13. This Section shall not apply to any claims arising between the Republic of Cyprus, Greece and Turkey nor to any claim, except a claim by or against the United Kingdom, arising out of the acts and omissions which take place within the territory of the Republic of Cyprus of the members of a force or civilian component of the Republic of Cyprus, Greece or Turkey.

14. Where the United Kingdom is the only Contracting Party involved as a sending State in claims made by United Kingdom personnel or their dependents as defined in Part I of Annex B to this Treaty, not being nationals of, nor ordinarily resident in, the receiving State, the provisions of paragraphs 5 (except for sub­paragraph (g) of that paragraph), 6, 7, 8 and 9, of this Section shall not apply to such claims, which shall be dealt with exclusively by the authorities of the sending State.
 

SECTION 10

1. Where the legal incidence of any form of taxation in the receiving State depends upon residence or domicile, periods during which a member of a force or civilian component is in the territory of that State by reason solely of his being a member of such force or civilian component shall not be considered as periods of residence therein, or as creating a change of residence or domicile for the purposes of such taxation. Members of a force or civilian component shall be exempt from taxation in the receiving State on the salary and emoluments paid to them as such members, and authorised service organisations shall be exempt from taxation on their profits, turnover, commercial or other activities. Authorised service organisations, members of a force or civilian component shall be exempt from taxation in the receiving State on any tangible movable property, excluding private motor vehicles, the presence of which in the receiving State is due solely to their temporary presence there. This paragraph shall apply to taxation on such property, whether levied in respect of its ownership, possession, use or otherwise.

2. Nothing in this Section shall prevent taxation of a member of a force or civilian component with respect to any profitable enterprise, other than his employment as a member of a force or civilian component, in which he may engage in the receiving State, and, except as regards his salary

and emoluments and the tangible movable property referred to in paragraph l, nothing in this Section shall prevent taxation to which, even if regarded as having his residence or domicile outside the territory of the receiving State, such a member is liable under the law of that State.

3. Nothing in this Section shall apply to " duty'' as defined in paragraph 12 of Section 11 of this Annex.

4. For the purposes of this Section the term " member of a force " shall not include any person who is a national of the receiving State.
 

SECTION 11

1. Save as provided expressly to the contrary in this Annex, members of a force or civilian component as well as their dependents shall be subject to the laws and regulations administered by the customs authorities of the receiving State. In particular, the customs authorities of the receiving State shall have the right, under the general conditions laid down by the laws and regulations of the receiving State, to search members of a force or civilian component and their dependents and to examine their luggage and vehicles, and to seize articles pursuant to such laws and regulations.

2. ­( a) The temporary importation and the re­exportation of service vehicles under their own power shall be authorised free of duty.

(b) The temporary importation of such vehicles not under their own power shall be governed by paragraph 4 of this Section and the re­exportation thereof by paragraph 8.

(c) Service vehicles shall be exempt from any tax payable in respect of the use of vehicles on the roads.

3. Official documents and secret equipment shall not be subject to customs inspection or seizure. Persons having in their custody official documents shall be in possession of a certificate which shows the number of despatches carried and certifies that they contain only official documents. Persons having In their custody secret equipment shall be in possession of a certificate that the item in question is secret equipment.

4. ­(a) Subject to existing customs procedures or to customs procedures to be agreed between the sending and receiving States: ­
 

(i) A force may import free of duty its equipment and goods necessary for the operation of that equipment, and reasonable quantities of provisions, supplies and other goods which are provided for the exclusive use of members of a force, civilian component, dependents and authorised service organisations.

(ii) An authorised service organisation may import free of duty equipment and goods for exclusive use in connexion with its official activities on condition that such equipment and goods are not disposed of in the Island of Cyprus except as provided in paragraph 8 below.

(iii) Overseas contractors engaged in the execution of a project for a force or an authorised service organisation may import free of
duty their equipment and goods necessary for the operation of that equipment, provided that such equipment and goods are used exclusively on such a project.

(iv) Contractors may receive a refund of duties paid by them on stores imported for the execution of a project for a force or an authorised service organisation, and proved to the satisfaction of the competent authority of the receiving State to have been incorporated or consumed in such a project.

(b) The Navy, Army and Air Force Institutes may import reasonable quantities of provisions, supplies and other goods, for its own exclusive use or consumption or for sale to members of a force and civilian component and dependents for their exclusive use or consumption, or to other authorised service organisations for the same purposes, under arrangements having the effect of relieving those persons and authorised service organisations (including the Navy, Army and Air Force Institutes) from the incidence of import duty.

(c) The exemptions granted by this paragraph shall not apply to agricultural produce of which there is an adequate local supply of a satisfactory standard and price. There shall be consultation between the authorities of the sending and receiving States before any withdrawal, pursuant to this sub­paragraph, of exemptions.

5. Members of a force or civilian component may, at the time of their first arrival to take up service in the receiving State and at the time of the first arrival of any dependents to join them, import their personal effects and furniture free of duty for the term of such service. Arrangements shall be made, with a view to avoiding abuse of this privilege, between the receiving and sending States concerning exemption from duty of gifts sent by post to members of a force or civilian component or dependents.

6. Members of a force or civilian component may import temporarily free of duty their private motor vehicles for the personal use of themselves and their dependents. There is no obligation under this paragraph to grant exemption from taxes payable in respect of the use of roads by private vehicles.

7. Imports made by the authorities of a force other than for the exclusive use of that force and its civilian component, dependents and authorised service organisations, and imports, other than those dealt with in paragraphs 5 and 6 of this Section, effected by members of a force or civilian component, dependents and authorised service organisations are not, by reason of this Section, entitled to any exemption from duty or other conditions.

8. Goods (including equipment), which have been imported free of duty under paragraphs 2 (b), 4, 5 or 6 of this Section, may be re­exported freely but shall not normally be disposed of in the receiving State by way of either sale or gift except to an authorised service organisation, other members of the same force or civilian component or dependents; however, in particular cases such disposal may be authorised on conditions imposed by the authorities concerned of the receiving State (for instance, on payment of duty and tax and compliance with the requirements of the controls of trade and exchange). The sending State shall comply with reasonable requests of the authorities of the receiving State for the notification of sales or gifts of specified classes of articles under this paragraph.

9. Goods purchased in the receiving State may be exported therefrom only m accordance with the regulations in force in the receiving State.

10. Special arrangements for entry into the territory of the receiving State shall be granted by the Customs authorities of the receiving State to regularly constituted units or formations of a sending State.

11. The receiving State shall make arrangements so that fuel, oil and lubricants for use in service vehicles and in aircraft and vessels of a force (including aircraft and vessels on charter for the service of a force) may be delivered free of all duties and taxes.

12. In paragraphs 1 to 10 of this Section ­
 

(a) " Duty " means customs duties and all other duties and taxes payable on importation or exportation, as the case may be, except dues and taxes which are no more than charges for services rendered;

(b) "importation" includes withdrawal from customs warehouses or continuous customs custody, provided that the goods concerned have not been grown, produced or manufactured in the receiving State.

SECTION 12

1. Members of a force or civilian component and dependents, and authorised service organisations, shall remain subject to the foreign exchange regulations of the sending State, but as regards acts done in the territory of the receiving State shall also be subject to the exchange control regulations of the receiving State in force from time to time.

2. Remittances between the receiving State and the State to which a force or authorised service organisation or a member of a force or civilian component belongs shall be freely permitted in respect of ­
 

(a) funds derived by members of the force or civilian component from services or employment in connexion with their official duties as such;

(b) funds belonging to an authorised service organisation and derived from its recognised commercial and other activities; and

(c) funds derived by members of the force or civilian component or dependents or by an authorised service organisation from sources outside the receiving State, subject to the regulations of the country to which the force belongs:

Provided that funds remitted into the receiving State may be freely remitted back only to the country from which they originally came or, with the consent of the authorities of the receiving State, to some other country.

3. The preceding paragraphs of this Section shall not preclude the transmission into or outside the receiving State of foreign exchange instruments representing the official funds of a force.

4. This Section shall not apply to a member of a force or a dependent who is a national of the receiving State.
 

SECTION 13

1. The customs or fiscal authorities of the receiving State may, as a condition of the grant of any customs or fiscal exemption or concession provided for in this Annex, require such conditions to be observed as they may deem necessary to prevent abuse.

2. The Customs or fiscal authorities of the receiving State may refuse any exemption provided for by this Annex in respect of the importation into the receiving State of articles grown, produced or manufactured in that State which have been exported therefrom without payment of, or upon repayment of, taxes or duties which would have been chargeable but for such exportation. Goods removed from a customs warehouse shall be deemed to be imported if they were regarded as having been exported by reason of being deposited in the warehouse.
 

SECTION 14

1. In order to prevent offences against customs and fiscal laws and regulations, the authorities of the receiving and of the sending States shall assist each other in the conduct of enquiries and the collection of evidence.

2. The authorities of a force shall render all assistance within their power to ensure that articles liable to seizure by or on behalf of the customs or fiscal authorities of the receiving State are handed to those authorities.

3. The authorities of a force shall render all assistance within their power to ensure the payment of duties, taxes and penalties payable by members of the force or civilian component or dependents.

4. Service vehicles and articles belonging to a force or an authorised service organisation, but not to a member of that force, seized by the authorities of the receiving State in connexion with an offence against its customs or fiscal laws or regulations shall be handed over as soon as possible to the appropriate authorities of the force concerned.
 

SECTION 15

A member of a force or civilian component or a dependent shall not be subject to any legislation in the territory of the receiving State relating to liability for compulsory service of any kind.
 

SECTION 16

In connexion with the matters dealt with in Sections 3, 11 and 12 of this Annex, a member of a force or civilian component or a dependent shall be permitted to make use of any frontier arrangements from time to time in force which apply for the benefit of civilians generally between the Akrotiri Sovereign Base Area and the Dhekelia Sovereign Base Area and the territory of the Republic of Cyprus.
 

SECTION 17

The provisions of this Annex shall not be applied in such a way as to frustrate or impair the rights conferred in and under Annex B to this Treaty.
 

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