Duty exemption according to section 1 number 5 is intended to further exchange of programs between separate countries. It is valid also for television tape recordings.

Educational, scholastic and research products may also, under laying claim to duty exemption to favored establishments, be delivered out of bonded warehouses. as long as these products (for inspection or as sample) were imported under bond with at most two weeks appropriation time and release into the free

commerce.

ENCLOSURE B

TRANSLATION OF AN EXCERPT OF A LETTER FROM FINE MECHANICAL AND OPTICAL MANUFACTURERS ASSOCIATION OF GERMANY

In practice the following procedure prevails: The head officer of each institution-who operates, as we know, as responsible head of an institution under public law-issues a statement in his official capacity explaining that the imported item has been obtained for the particular purpose legally provided for and furthermore was not obtainable locally. This is all that is required by local customs authorities. The institutions as a matter of fact order upon their own decision and do not discuss such steps with any authority (i.e. government authority); all they do is to issue the above mentioned statement, a very liberal procedure indeed. I do not deny that our group of manufacturers is in favour If a scientist is entrusted with the care of a quite often very costly institution he should have the freedom to obtain items-within his budget— which he thinks will be most useful in his institute's work.

of this procedure.

ENCLOSURE C

E. LEITZ, INC., NEW YORK, N.Y., INTER-OFFICE MEMORANDUM

To: Mr. J. G. Scarff.
From:

Date: 3/10/66

Subject: Translation of the attached letter from the Verband der Deutschen Feinmechanischen und Optischen Industrie e.V., Cologne/Germany.

Re: Lake Success Agreement.

DEAR MR. ABT, The Federal Statistical Office informs us today of the following: In 1965 merchandise for teaching and research purposes amounting to DM 61 millions from chapter 90 has been imported duty-free, among them are 39 millions from the USA.

Chapter 90 mainly covers the "Precision-Mechanic and Optic" section, but partly also some Electrical Engineering. This, however, would not be without any importance for your discussions. All this is no trade-conversation anyway. Nevertheless, the duty-free importations from the USA are rather considerable. signed: Dr. v.d. TRENCK.

ENCLOSURE D

[Department of State Airgram]

Date: November 15, 1963

To: Department of State.
From: Amembassy BONN.

Subject: Customs Treatment of Research Equipment.

Ref: Bonn A-460, Sept. 9, 1963; Dept. A-31, July 24, 1963; Dept. A-18, July 11, 1963; Bonn A-2426, May 16, 1963; CERP D-11.

Also pass commerce (for BIC).

The Federal Finance Ministry published a modification of the administrative provisions of the German customs law 1 which inter alia provides for a revision of Articile 37, Section 4, relating to the customs treatment of research equipment. The modification, effective November 10, 1963, provides that duty and turnover equalization tax-exempt treatment is granted for

1 Published in Bundesgesetzblatt I No. 60 of November 8, 1963.

(a) articles of scientific value destined for research including their spare parts and accessories if domestically produced articles of equal scientific value are not available at the date of placing orders;

(b) equipment which is subject of research

both destined for public or common welfare institutions which are engaged in research work for scientific reasons.

Specifically excluded from the exemptions under (a) are commercially usable equipment for schools, offices or laboratories (such as radio and television sets, microfilm reading apparatus, typewriters, calculating machines, filing card systems, microscopes, centrifuges) unless their characteristic features impart an educational or scientific value or unless they are specifically equipped for use in connection with the aforementioned duty-exempt equipment.

The revised administrative provisions include the protective clause of Annex D to Article XVII of the UNESCO Agreement on the Importation of Educational, Scientific and Cultural Materials. Duty-exempt treatment, therefore, no longer needs to be limited to goods which could be used for research purposes exclusively. This ruling corresponds to the practice applied by the customs officials after April 22, 1963. At that date, the Finance Ministry had instructed the customs offices "not to go deeply into" the question of the use of the equipment any longer, provided proof is furnished by the Chief of the research institute that equipment of equal scientific value is not available in the Federal Republic (see referenced airgrams).

The point which the Embassy was most concerned with is the question of which party determines the availability of the equipment on the German market in case of doubt. A new procedure has been established in official instructions to the customs offices. According to the Economics Ministry, these provide that if the customs office which admits research equipment duty-exempt on basis of a certification from a research institute has doubts as to its availability on the German market, it will report to the Oberfinanzdirektion. If the latter also has doubts, it will obtain an expert's opinion either from the Max-Planck-Gesellschaft in Goettingen or from the Deutsche Forschungsgemeinschaft, Bad Godesberg. Copies of this will also be sent to the Federal Finance Ministry, Economics Ministry, and the Ministry for Scientific Research. If, within four weeks from the receipt of the opinion, the Oberfinanzdirektion receives no different instruction from the Federal Finance Ministry, the Oberfinanzdirektion may decide "at discretion," which will presumably be in accordance with the expert opinion. Even though this practice still involves a certain risk for the importer because of a possible threat of retroactive application of duties, the Economics Ministry believes that this will occur in exceptional cases only. For the Ambassador:

PAUL H. BRENT, Commercial Attaché.

ENCLOSURE E

NOTICE BY THE BOARD OF TRADE

AND

THE COMMISSIONERS OF CUSTOMS AND EXCISE

IMPORTATION OF ARTICLES FOR NON-COMMERICAL USE IN SCIENTIFIC RESEARCH OR IN ADVANCING LEARNING OR ART OR IN PROMOTING SPORT

Relief by Treasury Direction From Import Duty and/or Purchase Tax

Arrangement of Paragraphs

General

1. Introduction.

2. Eligibility for relief.

3. Other conditions of relief.

Applications

4. Applications for directions.

5. Form of applications.

6. Description of goods.

7. Return of completed applications. 8. Successful applications.

18. Disposal of articles after use for the purpose specified in the direction. 19. Import licences.

20. Further information.

Notice No. 342 Sec. 33087, 1965 (10977) 1, July 1965.

Legal provisions.

Appendix

ADDENDUM TO NOTICE No. 342

RELIEF FROM TEMPORARY CHARGE ON IMPORTS

Under the Finance (No. 2) Act, 1964, most manufactured goods are chargeable with the Temporary Charge on Imports (T.C.I.). Like the Import Duties Act, 1958, the Finance Act affords relief from T.C.I. by Treasury Direction to articles imported for non-commercial use in scientific research or in advancing learning or art or in promoting sport.

The conditions which have to be satisfied before relief from T.C.I. is granted by Treasury Direction are the same as those set out in paragraph 2 of this Notice, except that condition (d) need not be fulfilled.

The information in this Notice regarding import duty applies generally to the Temporary Charge on Imports. Applications under paragraph 5 of the Notice and notifications under paragraph 9 thereof should refer to T.C.I., duty and purchase tax as appropriate.

When, however, relief from the Temporary Charge on Imports (and purchase tax, where applicable) but not relief from duty is claimed, applications should be made on form T.C.I. obtainable from the Board of Trade, Tariff Division, Duty Remission Branch, Sanctuary Buildings, Great Smith Street, London, S.W.1.

Information on the scope of T.C.I. is set out in Notice No. 250.

GENERAL

1. Introduction.-Under the Import Duties Act, 1958, import duty is normally chargeable on most imported goods, in order to protect United Kingdom industry. But the Act also provides that relief may be granted from protective duty chargeable under Section 1 of the Act in the case of articles intended for noncommercial use in scientific research or in advancing learning or art or promoting sport. The Purchase Tax Act, 1963, provides for similar relief from purchase tax on articles imported for such purposes. There is no provision for relief from customs duties chargeable under other enactments (e.g. revenue duties).

Relief is granted by the Treasury issuing directions covering particular importations of specified articles shown to satisfy all the conditions in paragraph 2: so far as duty is concerned the recommendation of the Board of Trade is required before this is done.

Paragraphs 4 to 8 of this Notice describe the means by which directions may be obtained; paragraphs 9 to 17 describe the Customs procedure to be followed. The relevant legal provisions are set out in the Appendix.

2. Eligibility for relief.-Directions will be issued only where the following conditions are satisfied:

(a) Articles must be shown to be required specifically for use in scientific research or for the advancement of a branch of learning or art or for the promotion of sport, and not intended for general use. Articles intended for personal use must be shown to contribute to the general advancement of one of these purposes;

(b) The articles must not be intended for sale by the user.

(c) The goods must not have been used commercially in this country prior to purchase by the applicant for the Treasury direction, and any commercial element in the purposes for which the articles are to be used by the applicant must be negligible.

(d) Where articles are available from United Kingdom sources which might fulfil the purposes for which the imported goods are to be used, satisfactory reasons for requiring the foreign goods must be given. (So far as purchase tax is concerned, the law specifies that the Treasury must have regard to the fact that tax would be payable if similar goods were acquired in the United Kingdom.) 3. Other conditions of relief.-When issuing a direction, the Treasury may impose such conditions as they think fit (e.g. that the goods shall ultimately be re-exported). The Commissioners of Customs and Excise may also impose conditions for the protection of the revenue. Unless the Customs are notified, before the goods are released from Customs control, that the goods are or will be the subject of an application for a direction, they may withhold repayment of some or all of the duty (see paragraph 9). As regards goods supplied from stock see, however, paragraphs 16-17.

APPLICATIONS

4. Applications for directions.-Applications must be initiated by the intended users of the goods, and not by import agents or other persons. Where the goods are imported by someone other than the user, the importer must also complete appropriate portions of the application form.

5. Form of applications.—Applications for directions should be made on form D.F.A.3, obtainable from the Board of Trade, Tariff Division, Duty Remission Branch, Sanctuary Buildings, 20, Great Smith Street, London, S.W.1. This form is designed to elicit all the information necessary to decide whether a case has been made out for recommending the issue of a direction. If unnecessary delay is to be avoided it is particularly important that questions Nos. 6 and 11 in Part I should be answered as fully and precisely as possible. Where the c.i.f. value of the goods is not known, an approximate value will suffice in answer to question No. 4 in Part II.

6. Description of goods.-Unless goods specified in a direction can be clearly identified with a particular importation or importations, the Customs will not be able to give effect to the direction. An applicant for a direction should therefore, wherever possible, obtain from his supplier FOUR sets of detailed specifications or description of the goods (including schedules of any parts or accessories) with illustrations or photographs. THREE sets should accompany the application, the fourth being retained for use if necessary at time of importation (see paragraph 10). The applicant should also arrange with his supplier for the invoices, packing lists, etc. relating to the actual shipment to adhere as closely as possible to the specifications, etc., which accompanied the original application, so that there may be no difficulty in identifying the goods imported with those specified in the direction. Where application is made after the goods have been released from Customs control, the description of the goods should follow as closely as possible that given on the import documents (e.g. the invoice).

7. Return of completed applications.-Completed forms D.F.A.3 should be sent, as soon as possible.

(i) to the address given in paragraph 5 for applications for relief from duty or from duty and purchase tax, or

(ii) to Section 20D, Secretaries' Office, Customs and Excise, King's Beam House, Mark Lane, London E.C.3., if only purchase tax relief is being claimed. 8. Successful applications.-If the application is successful, two copies of the direction will be issued, stating that payment of duty and/or purchase tax will

not be required on the goods specified, subject to compliance with the conditions set out in the direction and in this Notice. The white copy must be presented to the Customs (see paragraphs 10 and 12). Where the user is not the importer, this copy will be sent, on request, direct to the importer. The green copy will always be sent to the user for retention as a record of the conditions on which relief is granted; it has no validity as an authority for remission of duty and/or purchase tax.

CUSTOMS PROCEDURE

GENERAL

9. Notification to Customs.-Notice that goods are or will be the subject of an application for a Treasury direction must be given on the Customs entry before the goods are released from Customs control. The following are the forms of notice to be used, as appropriate :

Treasury direction No.--____.”

"Treasury direction has been/will be applied for."

Warning. If notice is not given in the proper form before the goods are released from Customs control, the direction can only have effect to such extent (if any) as the Commissioners of Customs and Excise may allow. In such cases, it will be possible only in exceptional circumstances to repay the duty and/or purchase tax (but see paragraphs 16-17).

10. Import documentation.-The following documents should be attached to the Customs entry:

(a) If available, the white copy of the direction and the documents attached to it; or

(b) if the direction is not available, one set of the specifications, etc. referred to in paragraph 6 (in the case of goods supplied from stock see paragraphs 16-17).

Form C.105 is not required if all the goods in the consignment are exempted from duty by the direction.

11. Payment of Customs charges.-Goods can be released without payment of duty and/or purchase tax only where the direction can be produced with the entry and the goods are not required to be re-exported. Otherwise, the charges must be paid: subject to what is said in paragraph 9, they will be refunded when the direction is available or (if required by the direction) when the goods are re-exported (see paragraph 12).

12. Refund of Customs charges.-If the direction does not require the goods to be re-exported, the white copy and the documents attached to it should be sent on receipt to the Customs Officer at the port of importation with a claim for repayment. The number of the entry for the goods should be quoted. The duty and/or purchase tax will be repaid if the Officer is satisfied that the prescribed conditions have been complied with.

If the direction requires the goods to be re-exported the following procedure applies:

(a) If the direction was not produced at time of entry, it should be sent on receipt to the Customs Officer at the port of importation. The number of the entry for the goods should be quoted. The direction will be endorsed and returned for production when repayment of duty and/or purchase tax is claimed on re-exportation.

(b) When the goods are ready for re-export, they must be examined by a Customs Officer at the exporter's premises or at the place of exportation.

Examination at the exporter's premises is subject to due notice being given and to payment of a charge for the Officer's attendance; goods so examined