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March 02, 1966

Entered into force 5 October 1967.

AGREEMENT BETWEEN THE GOVERNMENTS OF THE KINGDOM OF THE NETHERLANDS AND THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES CONCERNING THE ESTABLISHMENT OF A TRAINING INSTITUTE FOR SMALL SCALE INDUSTRIES PROMOTION

The Government of the Kingdom of the Netherlands and the Government of the Republic of the Philippines,

Desirous of strengthening the ties of friendship existing between their nations and of promoting good relations between their countries generally;

Recognizing the importance of the promotion of small scale industries for national economic development of the Philippines;

Determined to create in the Philippines training facilities for experts in this field;

Have agreed as follows:

ARTICLE 1

1. The two Governments shall collaborate in the establishment and operation in the Philippines of Training Institute for Small Scale Industries Promotion.

2. To this end, the Philippine Government shall provide the necessary office and classroom facilities, teaching staff and other necessary personnel, funds to the extent of the Philippine shares as may be agreed upon in the Plan of Operations under article 2 of this Agreement, and materials and services to meet recurring needs in connection with the operation of the Institute.

3. The Netherlands Government shall contribute to the establishment and the operation of the Institute by making available expert assistance, fellowships and equipment during a period of three and a half years as may be agreed upon in the Plan of Operations.

4. Since the Institute is intended to be a permanent organization, the Philippine Government shall exert efforts to continue its operation as an institution of specialized training and education, research and consultancy with such means as may he available.

ARTICLE 2

The collaboration of the two Governments concerning the establishment and operation of the Training Institute shall be defined and specified by an administrative agreement hereinafter called the "Plan of Operations" to be concluded by competent authorities.

ARTICLE 3

1. The Government of the Philippines shall take all necessary steps for the clearance and temporary storage in the port of arrival in the Philippines and the transportation from there to the Training Institute of the equipment and the other goods, required in connection with the project, that are made available by the Netherlands Government.

2. The costs of clearance, storage and transport, including insurance, import and export duties and any other taxes in respect of the equipment and other goods, required in connection with the project, that are made available by the Netherlands Government, shall be borne by the Philippine Government.

ARTICLE 4

1. Experts made available by the Government of the Netherlands for advisory or executive functions in the Philippines in conformity with the Plan of Operations will be allowed to import their luggage, personal and household effects, including:

— professional equipment and apparatus;

— one motorcar or motor-cycle;

— one refrigerator or one home freezer;

— one radio or radiogramophone or radio and gramophone separately, or a tape-recorder;

— minor electrical appliances;

— one washing-machine and/or centrifuge;

— one air-conditioner per person

without a special import-license, and free from import duties, taxes and other levies.

2. The experts shall be allowed to import under the conditions mentioned in paragraph 1 of this article consumable goods in reasonable quantities for their exclusive consumption.

3. The experts shall be exempt from payment of Philippine taxes and other legal duties on the salaries and allowances that are paid to them during their assignment to the project to an amount exclusively representing income from services for the project as circumscribed in the Plan of Operations, and exclusive of income derived from other sources in the Philippines.

4. The experts shall be allowed for a period of six months after the termination of their assignment to export, under conditions analogous to those laid down in paragraph 1 of this article, the goods imported by them in accordance with paragraph 1 and 2 or to sell them or dispose of any of these articles with the permission of the Government of the Philippines. The same shall hold good for personal and household effects that, within reasonable limits, have been acquired during the period of assignment. If and when the imported
articles referred to in paragraph 1 and 2 of this article are sold in the Philippines, the same shall be subject to taxes and duties on the depreciated value thereof.

ARTICLE 5

1. This Agreement shall enter into force on the day on which the Government of the Republic of the Philippines and the Government of the Kingdom of the Netherlands have informed each other in writing that the procedures constitutionally required in their respective countries have been complied with.

2. The present Agreement shall be valid for a term of five years.

3. Notwithstanding the contents of paragraph 1 of this article, this Agreement shall provisionally be applied as from the date of signature.

IN WITNESS WHEREOF the undersigned, duly authorized thereto signed the present Agreement.

DONE at Manila this 2nd day of March 1966, in the English language, in two originals.

For the Government of the Kingdom of the Netherlands:
J. VAN DER ZWAAL

For the Government of the Republic of the Philippines:
NARCISO RAMOS