DECREE NO. 3,465, OF May 17, 2000.

Promults the Agreement on Air Services between the Government of the Federative Republic of Brazil and the Government of the Republic of Cuba, concluded in Havana, on May 27, 1998.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on art. 84, inciso VIII, of the Constitution,

CONSIDERING that the Government of the Federative Republic of Brazil and the Government of the Republic of Cuba have concluded, in Havana, on May 27, 1998, an Agreement on Air Services;

CONSIDERING that the National Congress has approved this Agreement through Legislative Council No. 68 of August 25, 1999;

CONSIDERING that the Agreement entered into force on April 21, 2000, pursuant to the paragraph I of your art. 20;

DECRETA:

Art. 1º The Agreement on Air Services between the Government of the Federative Republic of Brazil and the Government of the Republic of Cuba, concluded in Havana, on May 27, 1998, apenso by copy to present Decree, will be executed and fulfilled as entirely as it contains.

Art. 2º Are subject to the approval of the National Congress any acts that amend the said Agreement, as well as any adjustments complimentary that, in the terms of art. 49, inciso I, of the Constitution, carries gravy charges or commitments to the national heritage.

Art. 3º This Decree takes effect on the date of its publication.

Brasilia, May 17, 2000; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Luiz Felipe Lampreia

Agreement on Air Services between the Government of the Federative Republic of Brazil and the Government of the Republic of Cuba

The Government of the Federative Republic of Brazil

and

The Government of the Republic of Cuba

(henceforth referred to as?Contracting Parties?).

Being Parties to the Convention on International Civil Aviation, open for signature in Chicago on the December 7, 1944;

Desiring to contribute to the development of international civil aviation;

Wishing to conclude an Agreement with the purpose of establishing air services between their respective territories and beyond,

Wake up the following:

Article 1º

Definitions

For the purposes of this Agreement, unless the context requires another way:

a) the term? aeronautical authorities? means, in the case of the Federative Republic of Brazil, the Minister of Aeronautics, and, in the case of the Republic of Cuba, the President of the Institute of Civil Aeronautics of Cuba, or, in both cases, any person or body authorized to perform any functions in the present exerted by the above-mentioned authorities;

b) the term?Agreement? means this Agreement, its Annex, and any amendments to the Agreement or to the Annex;

c) the term? agreed services? means air services on the routes specified for the carriage of passengers, cargo and postal suitcase, separately or in combination;

d) the terms? air services?,? air services?,? air company? e? scale without commercial purposes? have the meanings to them respectively assigned in Article 96 of the Convention;

and) the term?Convention? means the Convention on International Civil Aviation, opened for signature in Chicago on December 7, 1944, and includes any Attachment adopted pursuant to Article 90 of that Convention and any amendment to the Annexes or to the Convention, of compliance with its Articles 90 and 94, to the extent that these Annexes and amendments have entered into force for both the Contracting Parties;

f) the term? appointed air company? means an airline company that has been designated and authorized as per Article 3º of this Agreement;

g) the term? route specified? means one of the routes specified in the Annex and this Agreement;

h) the term? tariff? understands any of the following:

I) the passenger fare charged by an airline for the carriage of passengers and their baggage in the air services, and the fees and conditions applicable to the related services to such transportation;

II) the freight charged by an airline for the carriage of cargo (except postal suitcase) in the air services;

III) the conditions governing the availability or applicability of such tariff of passengers or freight, including any advantages linked to passenger fare or freight;

IV) the value of the commission paid by an airline to an agent, relating to tickets sold or to air knowledge filled by that agent for transport in the air services;

i) the term? territory?, in relation to a state, means the land extension, the adjacent and inland territorial waters, and the airspace above those areas, under the sovereignty of that State;

j) the term? aeronautical tariff? means the payment to be made by the airlines for the provision of airport facilities and services, air navigation and aviation security.

Article 2º

Rights Grant

1. Each Contracting Party grants to the other Contracting Party the following rights specified in this Agreement, with the purpose of operating international air services on a specified route. While operating an agreed service on a specified route, the designated airlines of the Contracting Parties shall enjoy:

a) of the right to overfly the territory of the other Contracting Party;

b) of the right to land on the said territory, for non-commercial purposes;

c) of the right to embark and disembark on the said territory, at the points on specified routes, passengers, baggage, cargo and postal suitcase, separately or in combination, intended for or originated in points on the territory of the other Contracting Party;

d) of the right to embark and land in the territories of third countries, at the points on the specified routes, passengers, baggage, cargo and postal bag, separately or in combination, intended for or originated in points on the territory of the other Contracting Party, as set out in the Annex.

2. No device from paragraph 1 of this Article shall be deemed to be granted to a designated airline of a Contracting Party of the right to disembark, in the territory of the other Contracting Party, passengers, baggage, cargo and mispostal, transported upon payment or consideration and intended for another point in the territory of that Contracting Party.

Article 3º

Assignment and Authorization

1. Each Contracting Party shall have the right to designate, by diplomatic note addressed to the other Contracting Party, a company or airlines to operate the agreed services.

2. Upon receiving notification of the designation, the aeronautical authorities of each Contracting Party, in accordance with its laws and regulations, shall, without delay, accord to the company or airlines designated by the other Contracting Party, the authorisations necessary for the operation of the agreed services.

3. Each Contracting Party shall have the right to refuse to grant the authorisations referred to in paragraph 2 of this Article or to grant these authorisations under conditions deemed necessary for the financial year, by a company or designated aerial companies, of the rights specified in Article 2 of this Agreement, in the case where it is not satisfied that substantial part of the property and the effective control of that company or companies belong to the Contracting Party that the designated or its nationals or the both.

4. The aeronautical authorities of a Contracting Party may require that the company or airlines designated by the other Contracting Party demonstrate (m) that it is (shall) be empowered to meet the conditions determined under the laws and regulations normal and reasonably applied to the operations of international air services by such authorities.

5. When an airline has been assigned and authorized, it may initiate the operation of the agreed services, provided that it complies with the applicable devices of this Agreement.

Article 4º

Revoke or Authorization Hold

1. The aeronautical authorities of each Contracting Party shall have the right to revoke or suspend any authorisation for the exercise of the rights specified in Article 2º of this Agreement, by an air company designated by the other Contracting Party, or impose conditions that are deemed necessary for the exercise of these rights:

a) should such an airline cease to comply with the laws and regulations of that Contracting Party;

b) in case those authorities are not convinced that substantial part of the ownership and effective control of the airline belong to the Contracting Party that designated it or to its nationals or to both; and

c) in case the company or airlines let (m) operate as per the conditions set out under this Agreement.

2. Unless it is essential to immediate revocation or suspension of the authorization mentioned in paragraph 1 of this Article or the imposition of conditions to prevent subsequent violations of laws or regulations, such right shall be exercised only after consultation to the other Contracting Party.

Article 5º

Application of Laws and Regulations

1. The laws and regulations of a Contracting Party concerning the entry, stay or exit of its territory of aircraft engaged in the international air services or the operation and navigation of such aircraft while on its territory, shall be applied to the Company's aircraft or airlines designated by the other Contracting Party, without distinction as to the nationality, and shall be complied with by such aircraft at the entrance, at the exit or during their stay in the territory of the first Part Contracting.

2. The laws and regulations of a Contracting Party relating to the entry, stay or exit of its territory, of passengers, crews, cargo and postal suitcase, such as regulations concerning entry, release, immigration, passports, customs and quarantine, shall be complied with by the company or airlines designated by the other Contracting Party, or complied with on behalf of such passengers and crew, and shall be applied to the cargo and the postal suitcase at the entrance, at the exit or during its remain in the territory of the first Contracting Party.

3. In the application of the laws and regulations referred to in this Article to the Company or designated aerial companies of the other Contracting Party, a Contracting Party shall give no more favourable treatment to its own company or airlines.

Article 6º

Acknowledgement of Certificates and Licenses

Certificates of airworthiness, habilitation certificates and licences, issued or convalidated by a Contracting Party and still in force, shall be recognized as valid by the other Contracting Party for the objectives of operation of the services agreed upon on the specified routes, provided that such certificates or licences are issued or convalidated upon and in accordance with the standards established under the Convention. Each Contracting Party, however, reserves the right to refuse recognition, for overflight on its own territory, of certificates of habilitation and of licences granted to its own nationals by the other Contracting Party.

Article 7º

Aviation security

1. In accordance with their rights and obligations under International Law, the Contracting Parties reaffirm that their mutual obligation to protect civil aviation against acts of unlawful interference constitutes an integral part of this Agreement. The Contracting Parties shall establish the mutual obligation to cooperate to protect the safety of civil aviation and the services specified in this Agreement.

2. The Contracting Parties shall provide, upon request, all necessary mutual assistance for the prevention against acts of illicit rotting of civil aircraft and other unlawful acts against the safety of these aircraft, their passengers and crews, airports and air navigation facilities, and any other threat to the safety of civil aviation.

3. The Contracting Parties shall act, in their mutual relations, in accordance with the provisions on aviation security established by the Organization and International Civil Aviation, to the extent that such provisions on safety are applicable to the Parties; will require aircraft operators by them to enrol, aircraft operators having their main commercial headquarters or permanent residence on their territory, and airport operators situated in their territory act accordingly with the said provisions on the safety of aviation.

4. Each Contracting Party agrees to require such aircraft operators to observe the provisions on aviation safety mentioned in paragraph 3 above and required by the other Contracting Party for entry, exit or stay in the territory of this Contracting Party. Each Contracting Party will ensure that adequate measures are effectively implemented on its territory to protect aircraft and inspect passengers, crews, hand baggage, baggage, cargo and board provisions, before and during boarding or loading. Each Contracting Party shall examine, also, in a favorable manner, every solicitation of the other Contracting Party, with a view to adopting special and reasonable security measures to combat a specific threat.

5. In the occurrence of an incident or threat of incident of unlawful seizure of civil aircraft, or other unlawful acts against the safety of such aircraft, of its passengers and crews, of airports or air navigation facilities, the Contracting Parties shall provide mutual assistance, facilitating communications and other appropriate measures, intended to put an end, in a prompt and safe manner, to such an incident or threat.

Article 8º

Exemption of Rights and Rates

1. Each Contracting Party shall exempt, on the basis of reciprocity, the aerial company (s) designated by the other Contracting Party, to the greatest extent possible, under its national law, import restrictions, customs duties, taxes, inspection fees and other national duties and charges on aircraft, fuels, lubricating oils, technical supplies of consumption, parts and spares, inclusive of engines, common aircraft equipment, board provisions (inclusive beverages, smoke and other products intended for sale to passengers, in limited quantities, during the flight) and other items intended for use or used only in connection with the operation or service of the aircraft of the airline company (s) designated from the other Contracting Party operating (m) the agreed services, as also on printed ticket stocks, air knowledge, any printed material that leads engraved to the insignia of the company (s) and common advertising material distributed without charge by the designated airline company (s).

2. The exemptions granted under this Article will be applied to the items cited in paragraph 1 of this Article:

a) introduced in the territory of a Contracting Party by or on behalf of the designated airline (s) or by the designated airline company (s) of the other Contracting Party;

b) kept on board the aircraft (s) of the aerial enterprise (s) designated by a Contracting Party, from the arrival to the exit of the territory of the other Contracting Party;

c) introduced on board the aircraft of the aerial company (s) designated by a Contracting Party on the territory of the other Contracting Party and intended for use in the operation of the agreed services;

whether or not such items are used or consumed fully from the territory of the Contracting Party that granted the exemption, provided that such items are not disposed of and / or sold in the territory of the said Part Contracting.

3. The normal equipment of the aircraft, as also the material and supply normally kept on board the aircraft of the aerial company (s) intended for any Contracting Party may be landed on the territory of the other Contracting Party, only with the approval of the customs authorities of that territory. In such a case, they may be placed under the supervision of the aforementioned authorities, until they are re-exported or disposed of in accordance with the customs regulations.

4. Passengers, baggage and cargo in direct transit through the territory of a Contracting Party, and who do not leave the area of the airport reserved for such purpose, will be at the maximum subjected to a very simplified control. Baggage and cargo in direct transit will be exempt from duties and fees, included customs duties.

Article 9º

Operation of the Services Agreed

1. There will be fair and equal opportunity for the designated airlines of the Constant Parties to operate the agreed services on the specified routes.

2. In the operation of the agreed services, the designated airline company (s) of each Contracting Party will take into account the interests of the other Contracting Party (s) designated by the other Contracting Party, in order not to improperly affect the services provided by the last (s) in all or part of the same routes.

3. The agreed services provided by the designated airlines of the Contracting Parties shall have as characteristics a strict relationship with the needs of the public for the transport on the specified routes and shall be aimed at primary purpose provision, at reasonable levels of harnessing, of adequate capacity to meet current and reasonably foreseeable needs for the transportation of passengers and cargo, inclusive of postal suitcase, originated in or destined for the territory of the Part Contracting Party that has assigned the airline company (s). The provision for the carriage of passengers and cargo, including postal bag, embarked and disembarked on other posts on the specified routes other than in the territory of the Contracting Party which has designated the airline company (s), shall be determined to compliance with the general principles that the capacity will be related to:

a) the traffic demand of and to the territory of the Contracting Party that has assigned the airline company (s);

b) the demand of traffic from the region through which it passes the agreed service, taking into account other services established by the airlines of the states understood in that region; and

c) the economy requirements of the operation of the (s) air company (s).

4. The capacity to be afforded in the specified routes shall be that which is determined, from time to time, jointly by the Contracting Parties.

Article 10

Fees

1. The tariffs to be applied for transport in the services agreed upon between the territories of the Contracting Parties shall be established at reasonable levels, taking into account all relevant factors, including the interest of the users, cost of operation, reasonable profit, characteristics of the service and, where appropriate, the fees charged by other airlines operating in full or in part of the same route.

2. The tariffs mentioned in paragraph 1 of this Article shall be agreed upon, if possible, between the designated airlines of the Contracting Parties. Unless otherwise determined in the application of paragraph 4 of this Article, each designated aerial company shall be liable only to its aeronautical authorities, for the justification and reasonable character of the tariffs as such agreed.

3. The tariffs thus agreed upon shall be submitted to the aeronautical authorities of the Contracting Parties for approval at least 60 (sixty) days before the proposed date for their introduction. In special cases, this time limit may be reduced, subject to the concordance of the mentioned authorities. By receiving the submission of tariffs, the aeronautical authorities will examine such tariffs without unwarranted delay. No tariff shall enter into force if the aeronautical authorities of each Contracting Party are not in agreement with it. The aeronautical authorities will be able to communicate to the other aeronautical authorities the extension of the date of introduction of a proposed tariff.

4. If a tariff cannot be fixed in accordance with the provisions of paragraph 2 of this Article or if, in the period provided for in paragraph 3 of this Article, a notice of disagreement has been given, the aeronautical authorities of the Contracting Parties if will strive to set the tariff of common agreement. Consultations between the aeronautical authorities will be carried out in accordance with Article 14 of this Agreement.

5. If the aeronautical authorities are unable to reach an understanding regarding the tariff that has been submitted to them, pursuant to paragraph 3 of this Article, nor on the setting of any tariff, pursuant to paragraph 4 of this Article, the divergence will be solved in accordance with the provisions of Article 17 of this Agreement.

6. a) No tariff shall apply if the aeronautical authorities of any of the Contracting Parties are at loggerheads with the same, save under the provisions laid down in Article 17 of this Agreement.

b) When the tariffs have been established as per the provisions of this Article, these tariffs will remain in effect until further tariffs are established, pursuant to the provisions of this Article or of Article 17 of this Agreement.

7. If the aeronautical authorities of one of the Contracting Parties are not in accordance with a fixed tariff, the aeronautical authorities of the other Contracting Party shall be notified and the designated aerial companies shall seek, if necessary, to arrive at an understanding. If, within 90 (ninety) days from the date of receipt of the notification, a new tariff cannot be fixed in accordance with the provisions set out in paragraphs 2 and 3 of this Article, the procedures stated in paragraphs 4 and 5 of this Article will be applied.

8. The aeronautical authorities of both Contracting Parties shall endeavor to ensure that:

a) the fees charged and received correspond to the tariffs agreed by both the aeronautical authorities; and

b) no airline grants abatement on such tariffs.

Article 11

Commercial Activities

1. The aerial company (s) designated by a Contracting Party may (shall) comply with the laws and regulations of the other Contracting Party relating to entry, residence and employment, bring and maintain in the territory of the other Contracting Party executive, sales, technical, operational and other specialists necessary to the operation of the agreed services.

2. In particular, each Contracting Party shall grant the designated airline company (s) of the other Contracting Party the right to the marketing of the air transport on its territory directly and, at the discretion of the air company (s), through the your agents. Each area company will have the right to commercialize such a transport and any person will be free to acquire it, subject to national laws and regulations, in freely convertible currencies.

Article 12

Convention and Incomes Shipment

1. The airline company (s) of a Contracting Party will have the right to convert and remit to their country, on request, surplus local revenue to the local sums disbursed.

2. The conversion and remittance of such revenue shall be permitted without restriction, at the exchange rate applicable to such transactions and which is in effect at the time such revenues are presented for conversion and shipment, and will not be subject to any charges, except those normally charged by banks in the execution of such conversions and shipments.

Article 13

Tariffs Aeronautics

1. A Contracting Party shall not charge or permit to be charged to the designated airline company (s) of the other Contracting Party higher than those charged to its own air companies operating international air services similar.

2. Each Contracting Party shall encourage the conduct of consultations on aeronautical tariffs between its competent authorities and the airlines that use the services and facilities provided by those authorities, when feasible, by intermediate of the representative organizations of the airlines. Proposed changes in aeronautical fares should be communicated to such users reasonably in advance, to enable them to express their views before the changes are made. Each Contracting Party, in addition, will encourage its competent authorities and users to exchange information regarding aeronautical taifs.

Article 14

Consultations

1. In a spirit of close cooperation, the aeronautical authorities of the Contracting Parties shall consult with each other, periodically, with the aim of ensuring the implementation and satisfactory fulfillment of the provisions of this Agreement or to discuss any issue related to this.

2. Such consultations will begin within a period of 60 (sixty) days of the date of receipt of such solicitation, except if agreed upon differently by the Contracting Parties.

Article 15

Amendments

1. Any amendment or modification of this Agreement, established by the Contracting Parties, shall enter into force on a date to be determined in exchange for diplomatic Notes, indicating that all necessary internal procedures have been completed by both Contracting Parties.

2. Any amendment or modification of the Annex to this Agreement shall be agreed upon between the aeronautical authorities and shall enter into force when confirmed by exchange of diplomatic notes.

Article 16

Multilateral Convention

If a multilateral general convention on aviation comes into force with respect to both the Contracting Parties, the devices of such convention. Consultations, as per Article 14 of this Agreement, may be held with a view to determining the degree to which that Agreement is affected by the devices of the multilateral convention.

Article 17

Controvering Solution

Any divergence related to the interpretation or application of this Agreement or its Attachment should be resolved by direct negotiations between the aeronautical authorities of both the Contracting Parties. If the said aeronautical authorities fail to reach an agreement, the divergence should be resolved through the diplomatic channels.

Article 18

Denpronunciation

Each Contracting Party will be able, at any time after the entry into force of this Agreement, to notify the other Contracting Party, in writing, by the diplomatic channels, its decision to denounce this Agreement. Such notification shall be made simultaneously to the International Civil Aviation Organization. The Agreement will cease to behold 1 (one) year after the date of receipt of the notification by the other Contracting Party, unless it is that notification withdrawn, by mutual agreement, before that period is expired. If the receipt of the notification is not charged by the other Contracting Party, such notification shall be deemed to be received 14 (fourteen) days after its receipt by the International Civil Aviation Organization.

Article 19

Registration at the OACI

This Agreement and any amendment to it will be registered in the International Civil Aviation Organization.

Article 20

Input in Vigor

This Agreement will enter into force on the date of the second diplomatic Note in which one of the Parties inform the other of compliance with internal legal procedures.

In testimony to what, the undersigned, duly authorized by their respective Governments, sign the present Agreement.

Made in Havana, on May 27, 1998, in two original exemplars, in the Portuguese and Spanish languages, being both equally valid and authentic.

By the Government of the Federative Republic of Brazil	By the Government of the Republic From Cuba
Luiz Felipe Lampreia	Roberto Robaina González
Minister of State for Foreign relations	Foreign minister of relations