Agreement between the Federal Republic of Germany and the United States of America on the benefits granted by the Federal Republic of Germany in respect of the benefits provided by the United States in the interests of the common defence Expenditure

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Date of completion: 15.10.1954

Full quote:

" Agreement between the Federal Republic of Germany and the United States of America on the benefits granted by the Federal Republic of Germany in respect of the benefits provided by the United States in the interests of the common defence. Expenditure in the revised version published in the Bundesgesetzblatt part III, outline number 611-10-4 (to), published

Footnote

(+ + + Proof of text validity from: 1. 1.1964 + + +) Unofficial table of contents

Input formula

The Federal Republic of Germany and the United States of America are in the desire to promote the joint defense efforts, as follows: Unofficial table of contents

Type I

The Federal Republic of Germany, hereinafter referred to as the Federal Republic, shall grant benefits in the case of federal taxes and customs duties, to the extent that, by means of the levying of charges, defence expenditure of the United States of America, hereinafter referred to as United States, are being affected. The manner in which these charges are reduced shall be determined in accordance with the following Articles. Unofficial table of contents

Type II

Expenditure on defence within the meaning of this Agreement shall be expenditure incurred by the United States, in the case of export by the United States or in its application, for equipment, materials, facilities or services for the purposes of defense efforts, including spending on foreign aid programs of all kinds of the United States. Unofficial table of contents

Species III

As regards taxes and customs duties affecting the defence expenditure of the United States within the meaning of Article II and the provisions of the Annex, the following benefits shall be granted:

1.

Sales tax

a)

VAT exemption shall be granted for the supply of goods, including deliveries of goods, and for other services provided to entities of the United States, and to the bodies of other governments designated by the United States, irrespective of the case, whether an export is actually taking place or not.

b)

On request, the supplier shall, in respect of the deliveries of goods, including works of works, which have been exempted in accordance with point (a), be paid sales tax allowances in the scope agreed in the Annex, irrespective of whether an export is actually or not.

c)

The exemptions and allowances provided for in subparagraphs (a) and (b) shall also be granted to a supplier who proves that he has exported the goods to private persons or firms which have been exported by entities of the United States or other entities of the United States. the United States has been authorized by the United States.

2.

Customs duties, excise duties including turnover tax and monopoly levies

a)

For equipment, materials and equipment used in United States offices or in places other than the Governments of the United States of the United States of Customs Exclusions (e. g. Free ports) or from customs traffic (e.g. Customs warehouses), customs duties and excise duties, including the turnover tax, are not levied. The same benefits shall be granted where such goods are carried out in an orderly way.

b)

Any other equipment, materials and equipment that are transferred to the United States or other entities of other Governments designated by the United States shall be subject to the most extensive exemptions, allowances, or Price reductions provided for in the German customs, excise duty and monopoly laws for exported goods. In the case of goods carried out in accordance with the regulations, the charges or price reductions provided for in the German customs, excise duty and monopoly laws in the event of export are also granted.

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Type IV

Customs duties and excise duties, including the turnover tax, shall not be levied on equipment, materials and equipment of the kind referred to in Article II, imported from the country of customs, and bodies of the United States or In the case of other Governments designated by the United States, or which are carried out by the German customs territory for delivery to such bodies. Unofficial table of contents

Type V

For the equipment, materials and equipment referred to in Article III (2) (a) and in Article IV, refined in the German customs territory, exemption from customs duties and excise duties shall be granted, including: Turnover compensation tax is granted in accordance with the German customs regulations applicable to such processing. A simplified procedure will be provided for the repair of military equipment. Unofficial table of contents

Species VI

The advantages of federal taxes and customs duties shall be contingent on the competent German authorities being provided by the United States authorities in an appropriate manner to demonstrate that the legal transactions in question are subject to the same conditions as those in force in the United States. The conditions for such reductions are set out in the agreements. The nature of this proof will be determined by mutual agreement between the two governments. Unofficial table of contents

Species VII

(1) If dollar expenditure is eligible, the United States will pay in the form of dollars denominated in dollars payable to certain banks for the benefit of the eligible suppliers. (2) If payments are made from the In the case of the DM amounts listed in point 2, the payment shall be made in accordance with more detailed agreements between the two governments. Unofficial table of contents

Art VIII

Goods for which tax advantages have been granted in accordance with the above provisions may apply to persons other than United States entities or bodies other than those referred to in the United States within the scope of this Agreement. governments will only be sold under the terms and conditions to be agreed by the two governments. Unofficial table of contents

Species IX

The benefits referred to in Articles III, IV and V shall also be granted in respect of legal transactions entered into before the entry into force of this Agreement, provided that the procurement contracts concluded through such transactions are contain provisions to the effect that:

a)

until the conclusion of the agreements contained in this Agreement, no more than a certain percentage of the total fees due under these Treaties shall be payable by the United States; or

b)

the charges are to be reduced by the amount of duty contained in them, from which the other part of the contract is exempted from the Federal Republic.

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Type X

This Agreement does not apply to benefits in the case of taxes, the rise of which is wholly or partly infused to the countries or to the municipalities (associations of municipalities). It does not provide for the exemption of social security contributions. Unofficial table of contents

Art XI

The Government of the Federal Republic of Germany shall communicate to the Government of the United States the provisions to be adopted for the implementation of this Agreement. Unofficial table of contents

Art XII

(1) This Agreement shall apply from the date referred to in Article XIV also to the Land of Berlin, which for the purposes of this Agreement only covers the territories over which the Senate of Berlin exercises authority to the authorities. (2) The validity of this Agreement Agreement for the Land of Berlin within the meaning of paragraph 1 shall depend on the fact that the Government of the Federal Republic of Germany has previously issued a written declaration to the Government of the United States that all the necessary measures for the application of this Agreement in Berlin shall be required. Legal requirements are met. Unofficial table of contents

Art XIII

(1) The two Governments shall, where one of them so request, shall consult each other on any matter relating to the application of this Agreement or to the measures or arrangements adopted pursuant to this Agreement. (2) Each Part of the contract may at any time request a review of the provisions of this Agreement. The two governments will enter into negotiations on any question that is likely to arise, with the aim of achieving a mutually satisfactory solution in accordance with the principles of this Agreement. (3) This Agreement may be concluded at any time by means of an agreement between the two parts of the contract. Unofficial table of contents

Type XIV

(1) This Agreement shall enter into force with the deposit by the Federal Republic of an instrument of ratification by the Government of the United States of America. (2) The Annex shall be an integral part of this Agreement. Unofficial table of contents

Final formula

IN ORDER, the representatives duly authorized to this end have signed the present Agreement.
DONE in Bonn on the fifteenth day of the month of October 1954 in duplicate in German and English language, both texts being authentic. Unofficial table of contents

Annex to the Agreement between the Federal Republic of Germany and the United States of America on the tax advantages granted by the Federal Republic of Germany for the benefit of the United States in the interests of the common defence Expenditure paid

(Fundstelle: BGBl. II 1955, 826-828)

1. To Article I
The tax advantages granted in the attached Agreement shall not apply to:

a)

Purchases and imports of the Post Exchange Organization,

b)

Purchases of the individual members of the armed forces of the United States in Germany.

(2) For the purposes of Article II and VII (1), the United States ' defence expenditure within the meaning of this Agreement shall be expenditure only in respect of expenditure incurred in the

a)

Dollars of the United States,

b)

German mark acquired with dollars of the United States,

c)

The German mark obtained by the United States for the retribution of recognised US dollar claims against the Federal Republic of Germany,

d)

The German mark obtained by the United States in connection with or on the basis of foreign aid expenditure incurred in dollars of the United States in or for Germany,

e)

The German mark which the United States receives otherwise and which relates to dollar expenditure, as far as it is derived from specific transactions agreed by the two governments.

(2) It is agreed that the use of the Deutsche Mark referred to in paragraph 1 (c), (d) and (e) for the purposes referred to in Article II of this Agreement shall depend on agreements between the two Governments. 3. On Articles III, IV, V and VIII
In the event of the establishment of a European defence organisation responsible for the procurement and distribution of equipment, bodies of such an organisation may, within the meaning of this Agreement, be deemed to be entities of a government 4. Article III (1) (1) A supplier within the meaning of Article III (1) (b) of the present Agreement shall, upon application, be granted VAT refunds pursuant to Article 16 (1) and (2) of the Sales Tax Act and its implementing rules. regardless of whether an export actually takes place or not. (2) A supplier within the meaning of Article III (1) (c) of the annexed Agreement shall be subject to VAT refunds pursuant to Article 16 (1) and (2) of the VAT Act. and its implementing rules. (3) The provisions of Article III (1) Point (a) of the annexed Agreement in the English text "for equipment, materials or facilities delivered to, or services rendered for agencies" (verbatim " for equipment, materials or equipment delivered, or services provided) ") are synonymous with the words in the German text" for deliveries of goods, including deliveries of works and other services in places ". The words 'equipment, materials, facilities or services' used in the English text in Article III (1) (b) (literally 'equipment, materials, facilities or services') are tantamount to the words in the German text. "Deliveries of goods, including deliveries of goods". (4) The concept of the delivery of the goods is in principle governed by German sales tax law. Construction services consisting in the construction of works and contractual services (contract services) are, however, in any case considered to be a supply of works, if the contractor supplies the materials required for carrying out the works. and the cost of the materials shall be more than 50% of the total contractual costs. Charges paid to subcontractors in the event of the contractual services being carried out for the supply of works shall be calculated on the basis of the cost of materials. The remuneration shall be calculated on the basis of the full amount of the invoice for the total performance. (5) For construction works of all kinds which do not exist in the construction of works, the contractor shall be without regard to whether a "work delivery" or a (6) There is agreement that, in the case of procurement contracts awarded by the United States of America, the United States shall, in the case of procurement contracts, be subject to the highest remuneration. Conclusion of the Federal Republic of Germany, direct deliveries and other services The Federal Republic of Germany, such as direct deliveries and other services, must be treated at the offices of the United States or in the bodies of other Governments designated by the United States. The same applies to the granting of works contracts to a German construction administration. 5. On Article V
A simplified customs procedure is envisaged for the repair of military equipment under the annexed Agreement. In order to facilitate this procedure, operators who have been authorised to carry out such improvements shall be authorised by the principal authorities at the request of the principal olderers. Excluded from the authorisation are entrepreneurs who are not tax-reliable or who do not have regular accounting. The authorised entrepreneurs shall be exempted from the usual obligation to repair the goods to be repaired and the ingredients supplied by the authorities of the United States for the repair of the goods at the time of delivery for the purpose of repair and for the Return after the repair in each individual case to a customs office and to have the customs office completed. Instead, they should merely indicate to the competent customs office which goods they have taken over in each case for repair and which goods they have returned after the repair. The advertisements shall also cover ingredients which have been supplied for the purpose of carrying out the contracts, and on the waste generated. Low-value waste, which is left to the contractor, is to remain duty-free. In the case of other waste, the levies must be paid if they are not returned by the trader to the issuing body. 6. On Article VIII
The United States has declared and the Federal Republic has taken note of the fact that certain goods are sent to the members of the armed forces by services of the United States armed forces, in particular by the Quartermaster Corps. whose personal use or consumption is to be further sold. Such divestitures shall not be subject to the provisions of Article VIII of the annexed Agreement. In this context, the United States and the Federal Republic of Germany, each within its competence, will take appropriate measures to prevent violations of the German customs, tax and foreign exchange provisions, in particular: Goods such as tobacco, tobacco, coffee, tea and alcoholic beverages. 7. On Articles III, IV, V and VIII
It is agreed that the advantages of federal taxes and customs duties as provided for in the present Agreement will not be amended by the entry into force of agreements on the rights and obligations of foreign nationals. Armed forces and their members in the Federal Republic of Germany according to the one in London on 3 November. The decision of the Foreign Ministers of the Federal Republic of Germany, France, the United Kingdom and the United States was adopted in October 1954. On Articles III and V
If the German laws or implementing provisions in force at the time of signature of this Agreement are

a)

the granting of sales tax allowances for export,

b)

Exemptions or remuneration of customs duties and excise duties, including the turnover tax or price reductions in the case of monopoly laws for exported goods; and

c)

the processing of goods in the German customs territory is amended or replaced by new provisions, the parts of the contract are to enter into discussion without delay in order to establish procedures for the discharge of the defence expenditure of the United States of German taxes, customs duties and monopoly levies at least to the extent that it is defined in this Agreement.