The basic multilateral agreement about the international transport on development of corridor Europe - the Caucasus - Asia

of September 8, 1998

The State Parties of this agreement which are hereinafter referred to as with the Parties, expressing the aspiration to develop the economic relations, trade and transport connection in regions of Europe, the Black Sea, the Caucasus, the Caspian Sea and Asia, agreed to sign the Basic multilateral agreement about the international transport on development of corridor Europe - the Caucasus - Asia (further referred to as "Basic agreement").

Article 1. General provisions

Provisions of the Basic Agreement regulate the international freight and passenger traffic between the Parties, and also transit transportations through the territories of the Parties.

Article 2. Determinations

For the purpose of the Basic Agreement "international delivery" means movement of goods or passengers with the help or in:

a) road transport (including trail cars and semitrailer trucks);

b) rail transport;

c) water transport;

d) air transport;

e) all types of containers, according to the customs convention on containers;

e) pipelines,

if the place of acceptance of loads or passengers and the appointed place of delivery as it is specified in the contract, is in two different countries where at least one of them the Party of the Basic Agreement, and also storage during transit of loads.

Article 3. Purposes of the Basic Agreement

The purposes of the Basic Agreement are:

a) development of the economic relations, trade and transport connection in regions of Europe, the Black Sea, the Caucasus, the Caspian Sea and Asia;

b) assistance to access to the international market of road, air and rail transport, and also mercantile shipping;

c) contribution to international delivery of loads, passengers and international transportation of hydrocarbon products;

d) safety of movement, safety of loads and environmental protection;

e) harmonization of transport policy, and also legal framework in the field of transport;

e) creation of equal conditions of the competition between separate modes of transport.

Article 4. Assistance to international carriages

1. Each Party grants to other Parties the right of transit of the international vehicles, loads and passengers through their territory on the conditions specified in the Basic Agreement.

2. The parties provide the most effective organization of assistance of transit transportations in the territories.

3. Provisions of the Basic Agreement do not affect the right and obligations of the Parties following from other international conventions and agreements which participants they are or can become.

Article 5. Tax payment, charges and other payments

Taxes, charges and other payments, regardless of their name or purpose, will not be levied concerning transit transportations, except for payments of expenses for the transport, customs services, services connected with transportation, and also payments for use of transport infrastructure.

Article 6. Preferential terms and rates

1. Rates for services in ensuring transit transportations are established on favorable terms.

2. The parties agreed that if preferential terms and rates between two Parties for the types of transport specified in Article 1 of the Basic Agreement will be established, at least preferential terms and rates will be applied between these Parties and other Parties.

Article 7. Traffic safety, safety of loads and environmental protection

The parties take the adequate measures ensuring traffic safety, passengers and carriers, safety of loads and vehicles, and also environmental protection in case of the international carriages provided in Article 1 of the Basic Agreement.

Article 8. Intergovernmental Commission

1. The parties, for the purpose of regulation of the questions concerning implementation and application of provisions of the Basic Agreement create the Intergovernmental Commission.

2. The intergovernmental Commission consists of the high-ranking government officials of the Parties, or their representatives with powers of decision making within the Basic Agreement.

The intergovernmental Commission makes decisions on the basis of the principle of consensus.

3. The intergovernmental Commission regularly holds meetings, at least once a year, on priority in each of the Parties. At the same time the host party presides within one year. The chairman of the Intergovernmental Commission is the head of the delegation of the Party in which the meeting is held.

Meetings of the Intergovernmental Commission are held according to the proposal of the Chairman or either party with participation of agents of the parties who can invite for participation of the corresponding experts.

4. The intergovernmental Commission accepts own rules of procedure.

5. If necessary the Intergovernmental Commission can make offers on amending and changes to the Basic Agreement, and also about acceptance of new technical appendices to the Basic Agreement.

6. The intergovernmental Commission develops decisions for acceptance by the Parties and the corresponding recommendations about questions within the Basic Agreement, including:

a) coordination of transport policy;

b) ensuring compliance with provisions of the Basic Agreement;

c) collection and free exchange of the relevant information;

d) harmonious development of transportations between the Parties taking into account, first of all, traffic safety, safety of loads and ecological aspects;

e) assistance to cooperation between transport enterprises and organizations;

e) assistance to multimodal transportations;

g) simplification of the customs procedures and practice which are subject to application at the established check points.

7. The intergovernmental Commission has the right to create the working groups on the spheres specified in Item 1 of Article 10 of the Basic Agreement and to determine their rights and obligations.

Article 9. Permanent secretariat

1. The intergovernmental Commission establishes Permanent Secretariat for effective application of the Basic Agreement.

2. The secretariat is located in the city of Baku, the Azerbaijan Republic, and has permanent missions in each of the Parties.

3. The intergovernmental Commission will develop and will approve Regulations on Permanent Secretariat, will establish circle of its powers, the rights and obligations, appointment procedure of officials, and also will prepare offers on system of joint financing of work of Permanent Secretariat.

The system of financing affirms the governments of the Parties.

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