GENERAL AGREEMENT ON DEVELOPMENT COOPERATION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF AUSTRALIA
THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE
GOVERNMENT OF AUSTRALIA,
DESIRING to strengthen the existing cordial relations between
the two countries and their peoples, and
DESIRING to foster development cooperation 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 1
OBJECTIVE
Both Governments shall cooperate in a Program of development
cooperation to encourage equitable economic and social development in
the Philippines.
ARTICLE 2
ACTIVITIES OF THE PROGRAM OF DEVELOPMENT
COOPERATION
The Government of Australia and the Government of the Republic
of the
Philippines shall under this Agreement promote a Program of development
cooperation between their two countries. The Program may include the
following forms of assistance:
(a) the sending of missions to the Philippines to study and
analyze opportunities for Australian assistance;(b) the granting of scholarships to nationals of the
Republic of
the Philippines for studies and professional training in Australia, the
Philippines or a third country;(c) the assignment of Australian 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 collaborative
research,
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;(g) promotion of sound development of trade and industry;
and(h) any other form of assistance, reportable as official
development assistance (ODA) under the OECD Development Assistance
Committee (DAC) guidelines as may be determined by the two
Governments.
ARTICLE 3
DEFINITIONS
In this Agreement:
(a) “Australian institutions, firms and organizations” means
Australian institutions, firms or organizations engaged in a development
activity under this Agreement;(b) “Australian personnel” means Australian nationals or
permanent
residents or other persons who are not nationals or permanent residents
of the Philippines who are working in the Philippines on an activity
under this Agreement and whose salaries or other costs are funded from
the contribution of the Government of Australia to the
activity;(c) “dependant” means the spouse and unmarried minor
children of a
member of the Australian personnel or any other person recognized by
the two Governments as a dependant of a member of the Australian
personnel;(d) “professional and technical material” means equipment
and
other goods imported by members of the Australian personnel or
Australian institutions, firms and organizations for their professional
use while engaged in an activity under this Agreement and paid for from
funds provided by the Government of Australia;(e) “project supplies” means equipment, material and other
goods
supplied for the execution of development activities under this
Agreement, the cost of which is funded from the contribution of the
Government of Australia to the activity,(f) “services” means services performed by individuals or by
general partnerships registered in the Philippines;(g) “intellectual property” shall include the rights
relating to:(i) literary, artistic and scientific works, usually
referred to as copyright;(ii) inventions in all fields of human endeavor, usually
referred to as patents;(iii) scientific discoveries;
(iv) trademarks, service marks and commercial names and
designations;(v) protection against unfair competition; and
(vi) all other rights resulting from intellectual activity
in
the industrial, scientific, literary or artistic fields including any
rights in intellectual activity arising solely or partly by the
restraint of confidence,(h) “personal and household effects” means equipment and
other
goods imported by members of the Australian personnel or Australian
institutions, firms and organizations for the personal use of Australian
personnel and their dependants while engaged in an activity under this
Agreement; and(i) “activity” means any discrete unit of development
assistance
which may include any one or more of the forms of assistance described
in Article 2.
ARTICLE 4
COORDINATING AUTHORITIES
1. The Australian International Development Assistance Bureau
of the
Department of Foreign Affairs and Trade shall be the coordinating
authority for the Government of Australia. The National Economic and
Development Authority shall be the coordinating authority for the
Government of the Republic of the Philippines.
2. The two coordinating authorities shall be responsible for
the
planning and coordinating of the Program of development cooperation.
Their functions shall include but not be limited to:
(a) establishing priorities for the Program;
(b) choosing activities for implementation under the
Program;(c) reviewing and reporting on progress in the Program to
the two Governments; and(d) recommending to the two Governments any appropriate
changes to the Program including budget and future
development.
ARTICLE 5
SUBSIDIARY ARRANGEMENTS
1. In support of the objectives of this Agreement, the
Government of
Australia and the Government of the Republic of the Philippines, or
their agencies, statutory authorities or organizations, may conclude
subsidiary arrangements in respect of specific activities.
2. Subsidiary arrangements shall make specific reference to
this
Agreement and the terms of this Agreement shall, unless otherwise
stated, apply to such subsidiary arrangements. Wherever possible, such
subsidiary arrangements shall set out:
(a) the name and duration of the activity;
(b) a description of the activity and statement of its
objectives;(c) the nominated implementing agencies in both
countries;(d) potential benefits of the activity;
(e) details of the contributions to the activity by the two
Governments and other donors including:(i) financial contributions;
(ii) materials, services and equipment to be
supplied;(iii) the numbers and areas of expertise of Australian,
Filipino and other personnel to be engaged; and(iv) estimated annual budgets;
(f) arrangements for management and control, including those
for reporting;(g)timetable for implementation; and
(h)procedures for evaluations and review.
ARTICLE 6
RESPONSIBILITIES
The Government of Australia 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 activity established under a subsidiary
arrangement unless otherwise indicated in such subsidiary arrangement.
Annexes A and B shall be integral parts of this Agreement.
ARTICLE 7
PROJECT SUPPLIES AND PROFESSIONAL AND TECHNICAL MATERIAL AND
SERVICES
1. In respect of project supplies and professional and
technical
material and services whether to be imported from outside or procured
within the Philippines, the Government of the Republic of the
Philippines shall:
(a) for direct supplies of domestic goods and services,
subject
them to zero rate for purposes of Value Added Tax (VAT); exempt direct
importation of goods from import duties, VAT and other taxes imposed in
the Philippines (or pay such duties thereon); and be responsible for
inspection fees, storage charges and all other levies, fees and
charges;(b) facilitate the expeditious clearance and release of
imported
goods including the provision of appropriate customs and wharfage
facilities in the port of entry closest to the site of the activity;
and(c) unless provided otherwise, provide expeditious internal
transport to the site of the activity.
2. Project supplies provided by the Government of Australia for
a
specific activity under this Agreement shall be available for the
unrestricted use of that specific activity and shall not be withdrawn
from that use without the consent of the Government of
Australia.
3. The disposal of vehicles provided for activities executed
under
this Agreement shall be the subject of discussions between the two
Governments and shall take into account the transport requirements of
other activities assisted by the Government of Australia under the
Program of development cooperation.
ARTICLE 8
IMPORTATION OF PERSONAL AND HOUSEHOLD EFFECTS
In respect of the importation into the Philippines of bona fide
personal and household effects for the personal use of Australian
personnel or their dependants, which accompany such persons or arrive
within six (6) months from the date of their arrival in the Philippines,
the Government of the Republic of the Philippines shall:
(a) provide exemption from customs duties, other duties,
taxes, levies, and other charges of similar nature; and(b) expedite their clearance through customs
ARTICLE 9
MOTOR VEHICLES FOR PERSONAL USE
1. The Government of the Republic of the Philippines shall
exempt
each member of the Australian personnel from the payment of customs
duties, excise tax and Value Added Tax (VAT) in respect of one motor
vehicle imported into the Philippines or purchased locally for their
personal use once every five (5) years provided that:
(a) such imported motor vehicle has been used by the person
concerned in the country of his or her 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 his or her arrival in the
Philippines;(b) no transfer of ownership shall be made within a period of
three
(3) years from the time such motor vehicle was registered, unless the
member of the Australian personnel is posted to another country or his
or her contract in the Philippines has expired;(c) the motor vehicle conforms with existing regulations on
the allowable imported motor vehicles; and(d) 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 its entered value at the time of disposal.
2. In the event of fire, theft, substantial damage or
destruction,
the exemptions under this Article may be re-exercised at any time during
the assignment of the person concerned.
ARTICLE 10
EXPORT OF PROFESSIONAL AND TECHNICAL MATERIAL AND PERSONAL AND
HOUSEHOLD EFFECTS
In respect of the export from the Philippines at the end of the
assignment of Australian personnel, of professional and technical
material, personal and household effects and motor vehicles for personal
use, the Government of the Republic of the Philippines shall:
(a) provide exemption from customs duties, other duties,
taxes, levies and other charges of similar nature; and(b) expedite clearance through customs and other export
controls.
ARTICLE 11
ADDITIONAL ADVANTAGES
In addition to the advantages under this Agreement, the
Government of
the Republic of the Philippines shall accord Australian personnel,
institutions, firms and organizations the treatment not specifically
provided for in this Agreement, which is granted by the Government of
the Republic of the Philippines to personnel, institutions, firms and
organizations from countries other than Australia, who are working in
the Philippines under technical cooperation programs.
ARTICLE 12
CLAIMS
The Government of the Republic of the Philippines shall deal
with any
claim which may be brought by third parties against Australian
personnel and Australian firms, institutions and organizations and shall
hold harmless said Australian personnel and Australian firms,
institutions and organizations from civil liability for acts or
omissions occurring in the course of the performance of their duties in
the execution of any specific activity established under any subsidiary
arrangement except for their acts arising from gross negligence or
willful misconduct.
ARTICLE 13
INTELLECTUAL PROPERTY
The issue of intellectual property rights acquired in the
course of
implementation of this Agreement or arising directly or indirectly from
collaborative research projects under or relating to this Agreement
shall be the subject of a separate agreement between the Government of
Australia and the Government of the Republic of the Philippines.
Negotiations on such an agreement shall commence at a date to be
mutually determined by the Government of Australia and the Government of
the Republic of the Philippines.
ARTICLE 14
TAXES ON INCOME
The Government of the Republic of the Philippines shall exempt
Australian personnel and Australian firms, institutions and
organizations from income taxes or other similar taxes on income or
profits, salaries, wages and other remuneration paid for by the
Government of Australia and derived from work performed under this
Agreement in the Philippines. Furthermore, Australian personnel and
Australian firms, institutions and organizations shall be exempt from
these taxes on income derived from work performed outside the
Philippines which income is not transferred into the
Philippines.
ARTICLE 15
REMITTANCE OF FUNDS
The Government of the Republic of the Philippines shall
facilitate
repatriation by Australian personnel, firms, institutions and
organizations of their funds in accordance with rules and procedures
laid down by the Central Bank of the Philippines and consistent with the
rights and obligations of the Philippines as a member of the
International Monetary Fund.
ARTICLE 16
LOCAL LAWS AND REGULATIONS
The Government of the Republic of the Philippines shall inform
and
keep advised Australian personnel and Australian firms, institutions and
organizations of local laws and regulations which may concern them in
the performance of their duties.
ARTICLE 17
CONSULTATIONS
1. There shall be an annual meeting of senior officials from
the two Governments to consider:
(a) the direction, composition and contribution of
Australian development cooperation to the development of the
Philippines;(b) the effectiveness of the administration of development
cooperation; and(c) future development cooperation between the two
countries.
2. The two coordinating authorities and other institutions and
organizations of both countries which have an interest in development
cooperation may attend the meeting.
3. The two Governments shall consult at any time upon the
request of
either Government regarding any matter arising under this Agreement or
under any subsidiary arrangement and shall endeavor in a spirit of
cooperation and mutual trust to resolve all difficulties or
misunderstandings which may arise.
ARTICLE 18
FINANCIAL COMMITMENTS
1. Each Government’s contribution to the Program of development
cooperation and to individual activities within the Program shall be
conditional upon annual parliamentary or congressional
appropriations.
2. Program or activity financial disbursement estimates shall
be indicative planning figures and not financial commitments.
ARTICLE 19
DURATION
1. This Agreement shall enter into force on the day on which
the two
Governments exchange Notes notifying each other of the fulfillment of
their respective constitutional and other requirements to give effect to
the Agreement.
2. The Agreement shall remain in force initially for five (5)
years
and thereafter until terminated by either Government with not less than
six (6) months prior written notice.
3. The terms of this Agreement shall nevertheless continue to
apply
to development activities being carried out pursuant to this Agreement
and begun prior to the receipt of the termination Notice referred to in
paragraph 2 of this Article, until the completion of those
activities.
IN WITNESS WHEREOF, the undersigned, duly authorized by their
respective Governments, have signed this Agreement.
DONE in duplicate at Sydney on this twenty-eighth day of
October, one thousand nine hundred and ninety-four.
OF
THE REPUBLIC OF THE PHILIPPINES:
OF
AUSTRALIA:
ANNEX A
RESPONSIBILITIES OF THE GOVERNMENT OF
AUSTRALIA
1. Unless provided otherwise, the contributions of the
Government of Australia for development activities shall be as
follows:
(a) the cost of professional and other services required for
the
execution of development activities, including the following costs
relating to Australian personnel:(i) their salaries, fees, travel expenses between
Australia and
the Philippines, accommodation and living expenses and any other
allowances; and(ii) the cost of shipping their personal and household
effects,
including professional and technical materials between their normal
place of residence and the port of entry and departure in the
Philippines;(b) the cost of providing activity supplies or commodities
and the
cost of their transportation to the port of entry in the
Philippines;(c) contributions related to Filipino scholarship holders up
to
levels set for all holders of Australian aid funded scholarship awards
such as:(i) registration and tuition fees;
(ii) a book and equipment allowance;
(iii) a living allowance, including provision for
accommodation costs and a clothing allowance;(iv) medical and hospital expenses;
(v) economy-class fares for international or domestic
travel
outside the Philippines by air or any other approved means of
transportation, in compliance with the requirements of the scholarship
programs; and(vi) cost of shipping of their personal effects outside
the Philippines.
2. Contracts for the purchase of Australian-funded supplies or
commissioning of services required to execute activities referred to in
Article 2 shall be signed in the name of the Government of Australia or
one of its agencies.
3. The Government of Australia shall provide the Government of
the
Republic of the Philippines in a timely manner, with the names of the
Australian personnel and their dependants entitled to the rights and
privileges set forth in this Agreement.
ANNEX B
RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF THE
PHILIPPINES
Unless provided otherwise, the contributions of the Government
of the Republic of the Philippines shall be as follows:
(a) all agreed counterpart costs in support of activities
included in the Program of development cooperation;(b) transport of Australian personnel and supplies within
the
Philippines in accordance with the execution requirements of development
activities;(c) facilitation of travel within the Philippines of
Australian personnel in the performance of their duties;(d) permission to use means of communication in the
Philippines
appropriate to the ¦needs of the development activities
involved;(e) permits, licenses and other documents necessary to
enable
Australian personnel and Australian firms, institutions and
organizations to perform their duties in the Philippines;(f) visas for Australian personnel and their dependants, and
import and export permits for personal, professional and technical
material, and the personal and household effects of Australian
personnel;(g) provision of furnished office premises and office
services,
from existing resources wherever possible, where such premises and
services are needed by Australian personnel and Australian firms,
institutions and organizations to carry out their duties;(h) reports, records, maps, statistics and other information
related to development activities and likely to assist Australian
personnel in carrying out their duties;(i) provision of security arrangements for Australian
personnel
and property on sites of activities and elsewhere when they are involved
in official activities in accordance with the present Agreement. The
nature of such security arrangements shall be mutually determined by the
two Governments;(j) maintenance of the salaries of public sector holders of
Australian aid funded scholarship awards; and(k) other measures within its jurisdiction which may
facilitate the execution of development activities.WHEREAS the Government of Australia desires to conclude a
General
Agreement on Development Cooperation between the Government of Australia
and the Government of the Republic of the Philippines:
NOW THEREFORE THESE PRESENTS CERTIFY that the Honourable GORDON
NEIL
BILNEY. Minister for Development Cooperation and Pacific Island Affairs,
has been duly named, constituted and appointed by the Government of
Australia as its plenipotentiary and representative having full power
and authority to sign the General Agreement on its behalf.
IN WITNESS WHEREOF, I, GARETH JOHN EVANS, Minister for Foreign
Affairs have hereunto set my hand and affixed my seal
DONE at this 16th day of October, One thousand nine hundred and
ninety-four.
Minister for Foreign Affairs of Australia