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March 11, 1995

The Government of the Republic of the Philippines and the Government of the Islamic Republic of Iran hereinafter referred to as the Contracting Parties desiring to develop strengthen and diversify trade relations on the basis of equity, mutual respect and reciprocal benefits have agreed as follows:

ARTICLE 1

The commercial exchanges between the Contracting Parties and contracts concluded between natural persons or legal entities of the two Contracting Parties within the frame-work of this agreement, are subject to the laws, rules and regulations prevailing in the two countries.

ARTICLE 2

The Contracting Parties shall grant to each other treatment no less favorable than accorded to the like goods and commodities originating in or exported to any third country and vessels involved in carrying out these activities particularly relating to the following matters:

a. Customs duties and charges of any kind including the method of levying such duties and charges imposed on or in connection with importation or exportation.

b. Rules and formalities connected with customs clearance.

c. The issuance of import and export licenses.

d. Non tariff measures as well as legitimate technical barriers to trade, such as quarantines, health and hygienic conditions and such similar matters.

e. Merchant cargo-bearing vessels/cargo-bearing aeroplanes in respect of their entry into, stay in and departure from the harbor/airport of the other party, in accordance with the laws, rules and regulations in force in the said other party.

f. Merchant cargo-bearing vessels/cargo-bearing aeroplanes of the other Contracting Party that are in distress shall fee permitted to take refuge in the nearest harbor/airport of the other contracting party and shall receive friendly treatment, assistance and protection in accordance with respective laws, rules and regulations and international conventions in force in both Contracting Parties.

ARTICLE 3
The provisions of Article 2 shall not apply to:

a. Special preferences or other advantages accorded by either party resulting from its association in a regional or sub-regional arrangement, customs union or a free trade area or measures leading to the formation of a customs union or a free trade area,

b. Tariff preferences or other advantages which either Contracting Party grants or may grant to facilitate frontier/border traffic.

c. Special tariff preferences or other advantages which either party may grant to developing countries under any trade expansion or economic cooperation scheme of which the other party is not a member.

ARTICLE 4

No provision of this Agreement shall be interpreted in such a manner as to prevent the adoption or enforcement by the Contracting Parties of measures:

a. necessary to safeguard its balance of payment position.

b. necessary to protect public health, morals, public order and national security.

c. necessary to prevent injury to domestic industries or the threat thereof, attributable to trade from either Contracting Party.

d. necessary to protect human, animal or plant health or life against diseases, pollution, and other threats thereto.

e. relating to traffic in illicit narcotic products, arms/ammunitions, implements of war, or traffic in other materials carried on directly or indirectly for the purpose, of supplying a military establishment, and

f. relating to fissionable (nuclear materials, the sources thereof, or the radioactive by-products thereof except as may be required for medical purposes.

ARTICLE 5

1. All payments arising from trade between the two countries shall be made in freely convertible currencies, subject to foreign exchange regulations and other pertinent laws, rules and regulations effective in the respective countries.

2. Payments between the two countries may also be effected through other payment arrangements subject to the laws and regulations in force in the respective countries.

ARTICLE 6

In order to expand and develop further commercial activities between the two countries, both Contracting Parties subject to laws, rules and regulations prevailing in each country shall permit, encourage and facilitate the following:

a. Visit of businessmen, mercantilists, business group and missions to each other's territories.

b. close cooperation between the chambers of commerce of the two countries and, if found feasible, to establish joint chamber of commerce.

c. arranging, facilitating and conducting seminars, conferences for acquainting the nationals and businessmen of two countries on economic and commercial scope of each other.

d. arranging and organizing specialized solo-trade fair with the right to sell the goods and commodities subject to arrangements agreed upon by the Contracting Parties.

e. participating in international trade fair held in both countries.

ARTICLE 7

In order to facilitate and promote trade in goods and services and to acquire commercial information existing in the two countries, each of the contracting Party shall permit the other Contracting Party to establish trade center of trade representative office in its territory.

ARTICLE 8

Both contracting parties shall furnish and provide necessary facilities in the transit of goods and commodities belonging to either contracting party through their respective territories to the third country or countries.

ARTICLE 9

1. Either Contracting Party shall take necessary steps in accordance with its laws and regulations in force to facilitate imports of trade samples and advertising materials, as well as exhibits for fairs and exhibitions.

2. Exemption from customs duties and other similar duties related to the articles and samples intended for fairs and exhibitions shall be subject to the laws and regulations of the country where the fair or the exhibition is held.

ARTICLE 10

1. With a view to the implementation of this Agreement and for the purpose of expanding the trade and the economic relations between the two countries, the Contracting Parties agree to establish a Joint Committee on Trade and Economic Relations.

2. The-Joint Committee shall hold its meetings by mutual agreement, alternatively in the capital cities of the two countries.

3. The Joint Committee on Trade and Economic Relations shall:

(a) review the implementation of this Agreement.

(b) study the possibilities of further expanding and diversifying the trade relations between the two countries.

(c) make recommendations for the timely solution of problems that may arise during the implementation of this Agreement.

(d) examine the possibilities for achieving a balanced trend in the bilateral trade.

(e) exchange information about any changes in foreign trade laws and regulations, enforced by either contracting party.

ARTICLE 11

The Contracting Parties, in order to promote commercial ties shall encourage and nominate their natural persons and legal entities to enter into trade transactions such as buy-back, countertrade and to establish joint trading companies and long-term commercial collaborations.

ARTICLE 12

Nationals, state corporations and private organizations/companies of either country shall be afforded access to all courts of the other country, subject to the laws and regulations of such other country.

Disputes relating to trade between nationals, state corporations and private organizations/companies of both Contracting Parties shall be referred to appropriate courts of proper jurisdiction in the two parties. They shall not claim or enjoy immunities from suit or execution of judgment or other liability with respect to commercial transactions.

ARTICLE 13

In the event of problems or disputes arising in connection with the implementation of this Agreement, initially both Contracting Parties shall endeavour to resolve the problems or settle the disputes through diplomatic channels or friendly manner. But in case the disputes cannot be settled amicably or through diplomatic channels/ such disputes shall be referred to an international body with arbitration powers, mutually acceptable to both the Contracting Parties.

ARTICLE 14

The provisions of this Agreement shall continue to apply even after its termination to all commercial contracts entered into during the period of the validity of this Agreement, but not fully completed on the day of expiry of this Agreement.

ARTICLE 15

1. This Agreement shall enter into force on the date of exchange of official note confirming that it has been approved in accordance with the constitutional requirements of the two countries.

2. This Agreement shall remain in force for a period of five years. After this period, it shall be automatically extended for successive periods of one year each, unless written notice to terminate or renegotiate it has been given by either Contracting Party six months before its expiration date.

3. This Agreement is written in two texts, in English and Persian languages, both texts being equally authentic. In case of divergency in the interpretation of the texts, the English text shall prevail.

Done in Tehran on Esfand 20, 1373 (March 11,1995) in two original copies.