Caribbean Trade Reference Centre


THE DICKENSON BAY AGREEMENT

AGREEMENT ESTABLISHING THE CARIBBEAN FREE TRADE ASSOCIATION


ARTICLE 28
THE COUNCIL

1. It shall be the responsibility of the Council -

(a) to exercise such powers and functions as are conferred upon it by this Agreement;

(b) to supervise the application of this Agreement and keep its operation under review;

(c) to consider whether further action should be taken by Member Territories in order to promote the attainment of the objectives of the Association and to facilitate the establishment of closer links with other countries, unions of countries or international organisations.

2. Each Member Territory shall be represented in the Council and shall have one vote.

3. The Council may decide to set up such organs, committees and other bodies as it considers necessary to assist it on accomplishing its tasks.

4. In exercising its responsibility under paragraph 1 of this Article, the Council may take decisions which shall be binding on all Member Territories and may make recommendations to Member Territories.

5. Decisions and recommendations of the Council shall be made by unanimous vote, except in so far as this Agreement provides otherwise. Decisions or recommendations shall be regarded as unanimous unless any Member Territory casts a negative vote. Decisions and recommendations which are to be made by majority vote require the affirmative vote of a majority of all Member Territories.

ARTICLE 29
ADMINISTRATIVE ARRANGEMENTS OF THE ASSOCIATION

1. The Council shall take decisions for the following purposes -

(a) to lay down the Rules of Procedure of the Council and of any bodies of the Association, which may include provision that procedural questions may be decided by majority vote;

(b) to make arrangements for the Secretariat services required by the association;

(c) to establish the financial arrangements necessary for the administrative expenses of the Association and the procedure for establishing an annual budget.

2. The expenses of the Association shall be shared equally between the Member Territories.

ARTICLE 30
RELATIONS WITH INTERNATIONAL ORGANISATIONS

The Council, acting on behalf of the Association, shall seek to procure the establishment of such relationships with other international organisations as may facilitate the attainment of the objectives of the Association.

ARTICLE 31
RATIFICATION REQUIRED FOR EFFECTIVENESS

1. This Agreement shall be subject to ratification by the Legislatures of all the Signatory Territories.

2. Instruments signifying such ratification shall be deposited with the Government of Antigua, which shall notify the other Signatory Territories, and, subject to the next following paragraph, this Agreement shall take effect as soon as all such instruments have been so deposited.

3. If prior to the ratification of this Agreement by any Signatory Territory that Territory indicates by notice to the Government of Antigua that difficulties have arisen in relation to carrying any provision of this Agreement into effect, the Agreement shall not take effect with respect to that Territory except in accordance with the terms of a supplementary agreement between all the signatory Territories providing for the resolution of such difficulties.

ARTICLE 32
JOINING ASSOCIATION

1. Any Territory, though it be not a signatory hereto, may participate in this Agreement, subject to prior approval of the Council of the Territory's participation in this Agreement on terms and conditions decided by the Council. The instrument duly signifying the agreement of the Government of the Territory to its participation in this Agreement on the terms and conditions decided as aforesaid shall be deposited with the Government of Antigua which shall notify all other Member territories. This Agreement shall have effect in relation to the participating Territory as, and from the time, indicated in the Council's decision.

2. The Council may seek to procure the creation of an association consisting of Member Territories and any other Territory, union of Territories, or international organisation, and embodying such reciprocal rights and obligations, common actions and special procedures as may be appropriate.

3. For the purpose of this Article, "Territory" includes a sovereign state internationally recognised.

ARTICLE 33
WITHDRAWAL

Any Member Territory may withdraw from participation in this Agreement provided that the Government thereof gives twelve months' notice in writing to the Government of Antigua which shall notify the other Member Territories.

ARTICLE 34
AMENDMENT

Except where provision for modification is made elsewhere in this agreement, including the Annexes to it, an amendment to the provisions of this Agreement shall be submitted to the Governments of Member Territories for acceptance if it is approved by decision of the Council, and it shall have effect provided it is accepted by all such Governments. Instruments of acceptance shall be deposited with the Government of Antigua which shall notify the other Member Territories.

ARTICLE 35
ACQUISITION OF SOVEREIGN STATUS

1. If a Member Territory, upon becoming a sovereign state recognised internationally, intimates its willingness to continue to participate in this Agreement, then, notwithstanding its having become such a state, this Agreement shall continue to have effect in relation to it.

2. For the purposes of paragraph 1 of this Article, any intimation thereunder shall be given by notice to the Government of Antigua, which shall notify all other Member Territories.

ARTICLE 36
ANNEXES

The annexes to this Agreement are an integral part of this Agreement.

ARTICLE 37
LEGAL CAPACITY, PRIVILEGES AND IMMUNITIES

1. The legal capacity, privileges and immunities to be recognised and granted by the Member Territories in connection with the Association shall be laid down in a Protocol to this Agreement

2. The Council, acting on behalf of the Association, may conclude with the Government of the Territory in which the headquarters will be situated an agreement relating to the legal capacity and the privileges and immunities to be recognised and granted in connection with the Association.

IN WITNESS whereof the undersigned, duly authorised, have signed the present Agreement for the Governments of Antigua, Barbados and British Guiana.

Done at Dickenson Bay, ANTIGUA, this 15th day of December, 1965, in a single copy which shall be deposited with the Government of Antigua by which certified copies shall be transmitted to all other signatory and participating Territories.

Signed by V.C. Bird , Chief Minister
For the Government of Antigua

Signed by E.W. Barrow, Premier
For the Government of Barbados

Signed by L.F.S. Burnham, Premier
For the Government of British Guiana

ANNEX "A"

1. Special arrangements are provided in this Annex for the progressive elimination by Member Territories of import duties on such products as are itemised according to the Standard International Trade Classification (original) as follows:

SITC Item No. Description of Product
   
533-03

Prepared paints, enamels, lacquer and varnishes

552-02

Cleansing preparations without soap (detergents)

641-05

Bagasse board

821-01

Wood furniture

821-02

 Metal furniture

821-09

Matresses

841-02

Underwear and shirts of knitted fabrics

841-04

Underwear, shirts and pajamas other than knitted

2. On and after each of the following dates a Member Territory may apply an import duty on any product eligible for Area tariff treatment as mentioned in paragraph 1 of this Annex at a level not exceeding the percentage of the basic duty specified against that date -

Effective date hereof                            100 per cent
1st January 1967                                  80 per cent
1st January 1968                                  60 per cent
1st January 1969                                  40 per cent
1st January 1970                                  20 per cent
1st January 1971                                    0 per cent

3. For the purpose of this Annex -

"basic duty" means, in respect of any product imported into a Member territory, the import duty applicable in that Territory on the 1st January,1966, to the imports of that product consigned from other Member Territories.

ANNEX "B"
Rules regarding area origin for tariff purposes

For the purpose of determining the origin of goods under Article 5 and for the application of that Article, the following Rules shall be applied:

Rule 1 - Interpretative Provisions

1. In determining the place of production of marine products and goods produced therefrom, a vessel of a Member Territory shall be regarded as part of that Territory. In determining the place from which goods have been consigned, marine products taken from the sea or goods produced therefrom at sea shall be regarded as having been consigned from a Member Territory if they were taken by or produced in a vessel of a member territory and have been brought direct to the Area.

2. A vessel which is registered shall be registered as a vessel of the Member Territory in which it is registered.

3. "Materials" includes products, parts and components used in the production of the goods.

4. Energy, fuel, plant, machinery and tools used in the production of goods within the Area, and materials used in the maintenance of such plant, machinery and tools, shall be regarded as wholly produced within the Area when determining the origin of those goods.

5. "Produced" in sub-paragraph (c) of paragraph 1 of Article 5 and a "Process of production" in paragraph 2 of that Article include the application of any operation or process, with the exception of any operation or process which consists only of one or more of the following :-

(a) packing, wherever the packing materials may have been produced;

(b) splitting up into lots;

(c) sorting and grading;

(d) marking;

(e) putting up into sets.

6. The term "producer" includes a grower and a manufacturer and also a person who supplies his goods otherwise than be sale to another person and to whose order the last process in the course of the manufacturer of the goods is applied by that other person.

Rule 2 - Goods wholly produced within the Area

For the purposes of sub-paragraph (a) of paragraph 1 of Article 5, the following are among the products which shall be regarded as wholly produced within the Area:-

(a) mineral products extracted from the ground within the Area;

(b) vegetable products harvested within the Area;

(c) live animals born and raised within the Area;

(d) products obtained within the Area from live animals;

(e) products obtained by hunting or fishing conducted within the Area;

(f) marine products taken from the sea by a vessel of a Member Territory;

(g) used articles fit only for the recovery of materials, provided that they have been collected from users within the Area;

(h) scrap and waste resulting from manufacturing operations within the Area;

(i) goods produced within the Area exclusively from one or both of the following:-

(1) products within sub-paragraphs (a) to (h);

(2) materials containing no element imported from outside the Area or of undetermined origin.

Rule 3 - Application of Percentage Criterion

For the purposes of sub-paragraph (c) of paragraph 1 of article 5 -

(a) Any materials which meet the conditions specified in sub-paragraph (a) or (b) of paragraph 1 of that Article shall be regarded as containing no element imported from outside the Area.

(b) The value of any materials which can be identified as having been imported from outside the Area shall be their c.i.f. value accepted by the customs authorities on clearance for home use, or on temporary admission, at the time of last importation into the Member Territory where they were used in a process of production, less the amount of any transport costs incurred in transit through other Member Territories.

(c) If the value of any materials imported from outside the area cannot be determined in accordance with sub-paragraph (b) of this rule, their value shall be the earliest ascertainable price paid for them in the Member Territory where they were used in a process of production.

(d) If the origin of any materials cannot be determined, such materials shall be deemed to have been imported from outside the Area and their value shall be the earliest ascertainable price paid for them in the Member Territory where they were used in a process of production.

(e) The export price of the goods shall be the price paid or payable for them to the exporter in the Member Territory where the goods were produced, that price being adjusted, where necessary, to an f.o.b. or free at frontier basis in that Territory.

(f) The value under sub-paragraphs (b), (c) or (d) or the export price under sub-paragraph (e) of this Rule may be adjusted to correspond with the amount which would have been obtained on a sale in the open market between buyer and seller independent of each other. This amount shall also be taken to be the export price when the goods are not the subject of a sale.

Rule 4 - Unit of Qualification

1. Each article in a consignment shall be considered separately.

2. For the purposes of paragraph 1 of this Rule -

(a) where the original Standard International Trade Classification specifies that a group, set or assembly of articles is to be classified within a single item, such a group, set or assembly shall be treated as one article;

(b) tools, parts and accessories which are imported with an article, and the price of which is included in that of the article or for which no separate charge is made, shall be considered as forming a whole with the article, provided that they constitute the standard equipment customarily included on the sale of articles of that kind;

(c) in cases not within sub-paragraphs (a) and (b), goods shall be treated as a single article if they are so treated for purposes of assessing customs duties by the importing Member Territory.

3. An assembled or disassembled article which is imported in more than one consignment because it is not feasible for transport or production reasons to import it in a single consignment shall, if the importer so requests, be treated as one article.

Rule 5 - Segregation of materials

1. For those products or industries where it would be impracticable for the producer physically to segregate materials of similar character but different origin used in the production of goods, such segregation may be replaced by an appropriate accounting system, which ensures that no more goods received Area tariff treatment than would have been the case if the producer had been able physically to segregate the materials.

2. Any such accounting system shall conform to such conditions as may be agreed upon by the Member Territories concerned in order to ensure that adequate control measures will be applied.

Rule 6 - Treatment of mixtures

1. In the case of mixtures, not being groups, sets or assemblies of separable articles dealt with under Rule 4, a Member Territory may refuse to accept as being of Area origin any product resulting from the mixing together of goods which would qualify as being of Area origin with goods which would not so qualify, if the characteristics of the products as a whole are not essentially different from the characteristics of the goods which have been mixed.

2. In the case of particular products where it is, however recognised by Member Territories concerned to be desirable to permit mixing of the kind described in the foregoing paragraph, such products shall be accepted as of Area origin in respect of such part thereof as may be shown to correspond to the quantity of goods of Area origin used in the mixing, subject to such conditions as may be agreed upon.

Rule 7 - Treatment of packing

1. Where for purposes of assessing customs duties a Member Territory treats goods separately from their packing, it may also, in respect of its imports consigned from another Member Territory, determine separately the origin of such packing.

2. Where paragraph 1 of this Rule is not applied, packing shall be considered as forming a whole with the goods and no part of any packing required for their transport or storage shall be considered as having been imported from outside the Area, when determining the origin of the goods as a whole.

3. For the purpose of paragraph 2 of this Rule, packing with which goods are ordinarily sold by retail shall not be regarded as packing required for the transport or storage of goods.

Rule 8 - Documentary evidence

1. A claim that goods shall be accepted as eligible for Area tariff treatment shall be supported by appropriate documentary evidence of origin and consignment. The evidence of origin shall consist of either -

(a) a declaration of origin completed by the last producer of the goods within the Area, together with a supplementary declaration completed by the exporter in cases where the producer is not himself or by his agent the exporter of the goods; or

(b) a certificate given by a governmental authority or authorised body nominated by the exporting Member Territory and notified to the other Member Territories together with a supplementary declaration completed by the exporter of the goods.

These declarations, certificates and supplementary declarations shall be in such form as may be agreed by the Governments of all the signatory Territories, and a copy of such Agreement shall be deposited with the Government of Antigua by which certified copies shall be transmitted to all other signatory and participating Territories. The agreed forms shall, for the purposes of paragraph 5 of Article 5, be deemed to form part of this Annex.

2. The exporter may choose either of the forms of evidence referred to in paragraph 1 of this Rule. Nevertheless the authorities of the country of exportation may require for certain categories of goods that evidence of origin shall be furnished in the form indicated in sub-paragraph (b) of that paragraph.

3. In cases where a certificate of origin is to be supplied by a governmental authority or an authorised body under sub-paragraph (b) of paragraph 1 of this rule, that authority of body shall obtain a declaration as to the origin of the goods given by the last producer to the goods within the area. The governmental authority or the authorised body shall satisfy themselves as to the accuracy of the evidence provided, where necessary they shall require the production of additional information, and shall carry out any suitable check. If the authorities of the importing member Territory so require, a confidential indication of the producer of the goods shall be given.

4. Nominations of authorised bodies for the purpose of sub-paragraph (b) of paragraph 1 of this rule, may be withdrawn by the exporting Member Territory if the need arises. Each member Territory shall retain, in regard to its imports, the right of refusing to accept certificates from any authorised body which is shown to have repeatedly issued certificates in an improper manner, but such action shall not be taken without adequate prior notification to the exporting Member territory on the grounds for dissatisfaction.

5. In cases where the member Territories concerned recognise that it is impracticable for the producer to make the declaration of origin specified in sub-paragraph (a) of paragraph 1 or in paragraph 3 of this Rule, the exporter may make that declaration in such for as those Member Territories may for the purpose specify.

6. The Council may decide that further or different provisions concerning evidence of origin or of consignment shall apply to particular categories of goods or classes of transactions.

Rule 9 - Verification of evidence of origin

1. The importing Member Territory may as necessary require further evidence to support any declaration or certificate of origin furnished under Rule 8.

2. The importing Member Territory shall not prevent the importer from taking delivery of the goods solely on the grounds that it requires such further evidence, but may require security for any duty or other charge which may be payable.

3. Where under paragraph 1 of this Rule, a Member Territory has required further evidence to be furnished, those concerned in another Member territory shall be free to produce it to a governmental authority or an authorised body of the latter Territory, who shall after thorough verification of the evidence, furnish an appropriate report to the importing Member Territory.

4. Where it is necessary to do so by reason of its legislation, a Member Territory may prescribe that requests by the authorities of an importing Member Territories for further evidence from those concerned in the Member Territory shall be addressed to a specified governmental authority, who shall after thorough verification of the evidence furnish an appropriate report to the importing Member Territory.

5. If the importing Member Territory wishes an investigation to be made into the accuracy of the evidence which it has received, it may make a request to that effect to the other Member Territory or Territories concerned.

6. Information obtained under the provisions of this Rule by the importing Member Territory shall be treated as confidential.

Rule 10 - Sanctions

1. Member Territories undertake to introduce legislation making such provision as may be necessary for penalties against persons who, in their territory, furnish or cause to be furnished a document which is untrue in a material particular in support of a claim in another Member territory that goods should be accepted as eligible for Area tariff treatment. The penalties applicable shall be similar to those applicable in cases of untrue declarations in regard to payment of duty on imports.

2. A Member territory may deal with the offence out of court, if it can be more appropriately dealt with by a compromise penalty or similar administrative procedure.

3. A Member Territory shall be under no obligation to institute or continue court proceedings, or action under paragraph 2 of this Rule -

(a) if it has not been requested to do so by the importing Member Territory to which the untrue claim was made; or

(b) if, on the evidence available, the proceedings would not be justified.

SCHEDULE
BASIC MATERIALS LIST

These materials may always be regarded as originating wholly within the "Area" when used in the state described in this List in a process of production within the "Area"

Note: The classification used in this List is in accordance with the original Standard International Trade Classification.

041-01 Wheat and spelt (including meslin) unmilled
043-01 Barley unmilled
045-01 Rye unmilled
045-02 Oats unmilled
045-09 Cereals unmilled (except rice and corn)
046-01 Semolina
048-02 Malt
051-04 Apples
051-05 Grapes
054-01 Potatoes (excluding sweet)
054-03 Hop cones fresh or dried
061-09 Lactose, glucose, maltose, caramel
072-01 Cocoa beans
075-01 Pepper
075-02 Spices, ginger, cinnamon, vanilla, nutmeg, mace
081-02 Pollard, sharps
221-05 Linseed
231-02 Synthetic rubbers and rubber substitutes
244-01 Cork, raw and waste (including natural cork in blocks and sheets)
251-01 Waste paper and old paper
261      Silk
262      Wool and other animal hair
264      Jute, including jute cuttings and waste
265      Vegetable fibres except cotton, jute and coir fibre
272-05 Salt, coarse and rock
272-06 Sulphur
272-11 Gypsum and plasters
272-16 Natural graphite
282-01 Iron and steel scrap
284-01 Non-ferrous metal scrap
291-09 Sponges, fish eggs (not for food) bristles, hair and their wastes
292-02 Natural gums, resins and balsam
292-09 Kapok
312-01 Crude petroleum
411-01 Oils from fish and marine animals
411-02 Linseed oil
412-11 Castor oil
413-02 Hydrogenated oils and fats
413-04 Waxes of animal or vegetable origin
511-01 Sulphuric acid
511-09 Calcium carbide, sodium pyrophosphate and white lead
512-09 Saccharine to be used for medicinal purposes only
531-01 Cola tar, dyestuffs and natural indigo
531-01 Dyeing extracts
532-02 Tanning extracts
532-03 Synthetic tanning materials
551-01 Essential vegetable oils
599-01 Synthetic plastic materials in blocks, sheets, rods, tubes, power and other primary forms
599-04 Casein, albumen, gelatin, glue
611      Leather
651      Textile yarn and thread
652      Cotton fabrics
653      Miscellaneous fabrics
655      Special textile fabrics
655-02 Hat bodies of wool felt and fur felt
655-06 Twine of cotton
655-06 Twine of hemp
671-01 Silver, unworked and partly worked
671-02 Platinum and other metal of platinum group, unworked and partly worked
672-03 Pearls worked
681-01 Pig iron and sponge iron (including iron and steel powder)
681-02 Ferro-alloys
681-03 Ingots, blooms, slabs, billets, sheet bars, and tinplate bars and equivalent primary forms
681-04 Angles, shapes, sections, bars
681-05 Universals, plates and sheets, uncoated
681-06 Hoop and strip (including tube strip and steel strip for springs) coated or not
681-13 Steel tubes and fittings, welded or drawn
681-14 Pipes and fittings, case whether gray iron or malleable iron
682-01 Copper and alloys not refined and refined unwrought
682-02 Copper and alloys of copper, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
683-01 Nickel and nickel alloys unwrought
683-02 Nickel and alloys of nickel, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
684-01 Aluminium and aluminium alloys unwrought
684-02 Aluminium and alloys of aluminium, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
685-01 Lead and lead alloys unwrought
685-02 Lead and alloys of lead, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
689-01 Non-ferrous base metals employed in metallurgy and their alloys, n.e.s. unwrought
689-02 Non-ferrous base metals employed in metallurgy and their alloys n.e.s. worked (bars, rods, sheets, wire, pipes, tubes, castings and forgings)
699-05 Expanded metal of iron and steel
699-06 Expanded metal of aluminium, copper and other non-ferrous base metals
899-05 Buttons and studs of all materials, except those of precious metals and precious stones.

ANNEX "C"

1. Special arrangements are provided in this Annex for the progressive elimination by Member Territories of the effective protective element in revenue duties (hereinafter referred to as protective revenue duty) applied to such imported goods as are itemised under the Standard International Trade Classification (original) as follows :-

SITC Item No.          Description of Product

112-04                     Rum

2. On and after each of the following dates, a Member Territory may apply a protective revenue duty on imports mentioned in paragraph 1 of this Annex at a level not exceeding the percentage of the basic protective duty specified against that date:-

Effective date hereof

100 per cent

1st January 1967

40 per cent

1st January 1968

30 per cent

1st January 1969

20 per cent

1st January 1970

10 per cent

1st January 1971

0 per cent

3. Before the 1st of July, 1966, each Member Territory shall notify to the Council its basic protective duty on the product to which paragraph 2 of this Annex applies. Each Member Territory shall also notify to the Council the reductions which it intends to bring into effect in accordance with the said provisions.

4. For the purpose of this Annex -

"basic protective duty" means the protective revenue duty applicable in the Member Territory on the 1st January, 1966, to imports of rum consigned from other Member Territories.


Continue with: ANNEX "D"