Treaty (29 April 1954)

April 29, 1954

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT

BETWEEN THE PHILIPPINES AND THE UNITED STATES OF

AMERICA RELATING TO DUTY-FREE ENTRY AND

EXEMPTION FROM INTERNAL TAXATION OF RELIEF

SUPPLIES AND EQUIPMENT

Note: The Agreement entered into force, October 18, 1956.

Reference: This Agreement is also published in 280 UNTS, p. 55.

I

THE AMERICAN EMBASSY TO THE PHILIPPINE DEPARTMENT OF

FOREIGN AFFAIRS

No. 1071

The Embassy of the United States of America presents its compliments to the

Department of Foreign Affairs of the Republic of the Philippines and under

instruction from Washington has the honor to present the following matter:

For some years the United States has furthered the humanitarian activities of

American voluntary relief and rehabilitation agencies by reimbursing ocean freight

costs on relief shipments to certain countries. Eligible agencies are those registered

with the Advisory Committee on Voluntary Foreign Aid, which Committee and its

functions were transferred from State to Federal Operations Administration, July 1,

1953. The authority for this program was provided in Section 117 (c) of the

Economic Cooperation Administration Act of 1948 and subsequently by Section 535

of the Mutual Security Act of 1951, as amended. In each instance before expending

funds appropriated by the Congress for this purpose an agreement is entered into

with the receiving country providing for duty-free entry of supplies and inland

transportation to the point of ultimate distribution by the receiving government.

If the Government of the Philippines is agreeable, the United States Government

would propose that the two countries enter into an agreement, through an exchange

of notes, in the following terms:

"1. The Government of the Philippines shall accord duty-free entry into the

Philippines, as well as exemption from internal taxation, of supplies of goods

approved by the Government of the United States, donated to or purchased by

United States voluntary, nonprofit relief and rehabilitation agencies qualified under

United States Government Regulations, and consigned to such organizations,

including branches of these agencies in the Philippines which have been or hereafter

shall be approved by the Government of the Philippines.

"2. Such supplies may include goods of types qualified for ocean freight subsidy

under applicable United Slates Government Regulations, such as basic necessities of

food, clothing and medicines, and other relief and rehabilitation supplies andequipment in support of projects of health, sanitation, education, and recreation,

agriculture and promotion of small self-help industries, but shall not include

tobacco, cigars, cigarettes, alcoholic beverages, or items for the personal use of

agencies' field representatives.

"3. Duty-free treatment on importation and exportation, as well as exemption from

internal taxation, shall also be accorded to supplies and equipment imported by

organizations approved by both governments for the purpose of carrying out

operations under this agreement. Such supplies and equipment shall not include

items for the personal use of agencies' field representatives.

"4. The cost of transporting such supplies and equipment (including port, handling,

storage, and similar charges, as well as transportation) within the Philippines to the

ultimate beneficiary will be borne by the Government of the Philippines.

"5. The supplies furnished by the voluntary agencies shall be considered

supplementary to rations ro which individuals would otherwise have been entitled.

"6. Individual organizations carrrying out operations under rhis agreement may enter

into additional arrangements with the Government of the Philippines and this

agreement shall not be construed to derogate from any benefits secured by any such

organizations in existing agreements with the Government of the Philippines.

"I have the honor to propose that, if these understandings meet with the approval of

the Government of the Philippines, this note and your Excellency's note in reply

constitute an agreement between our two governments." "

It will be noted that this model agreement covers all relief items normally shipped

by these American relief agencies. Numbered Paragraph 2 of the agreement could be

modified however, if the Government of the Philippines preferred to limit the

agreement to one or more specific items.

An early expression from the Government of the Philippines with respect to the

foregoing proposal will be appreciated.

American Embassy,

Manila April 29, 1954

II

THE PHILIPPINE DEPARTMENT OF FOREIGN AFFAIRS TO THE

AMERICAN EMBASSY

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FOREIGN AFFAIRS

No. 3001

The Department of Foreign Affairs presents its compliments to the Embassy of the

United States of America and has the honor to refer to the Embassy's note No. 1071

dated April 29, 1954 which is quoted hereunder:

[See note I]The Department is pleased to inform the Embassy that the Government of the

Republic of the Philippines is agreeable to the terms of the proposed agreement. This note and the Embassy's note No. 1071 dated April 29, 1954, therefore, now constitute the agreement between the Governments of the Republic of the Philippines and the United States of America. {Initialed) [illegible] Manila, October 18, 1956