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1 The China External Trade Development Council and The WellingtonChamber of Commerce (hereinafter referred to as "the Parties")having been authorized by the Customs authorities of their resp-ective territories to act as the sole issuing and guaranteeingorganisations in the mutual implementation of the NZCIO/BOFT ca-rnet system in order to facilitate the procedures for the tempo-rary duty-free importation of goods, Have reached the followingunderstandings:1.For the purpose of the present Protocol:(a) the term "import duties" will have the same meaning at thatgiven in clause l(a) of the Memorandum of Understanding ofthe NZCIO/BOFT Garnet for the temporary admission of goodssigned at Taipei on December 2, 1993 between the Board of F-oreign Trade in Taipei and the New Zealand Commerce and Ind-ustry Office.(b) the term "goods" will conform to the definition given in cl-ause 3 of the aforementioned Memorandum of Understanding.2.When both Parties have been approved by their respective Cust-oms authorities for the purpose of guaranteeing the payment ofimport duties in respect of goods which are the subject of thepresent Protocol, both Parties are entitled to guarantee thepayment of import duties in respect of goods dispatched fromthe territory of one Party to the territory of another Party.The Parties will, where necessary, obtain approval in advancefrom their respective foreign exchange control offices for thesettlement of all debts contracted as a result of these guara-ntees.3.The conditions for the grant of guarantee will be freely dete-rmined by each Party. When the guarantee is granted, the auth-orised guarantor organisation will affix its common seal in a-ccordance with the model form confirmed by both Parties (seeattachment) on the NZCIO/BOFT carnet before issuing it to thebearer.4.The guarantee granted will be surety for the payment of the i-mport duties which would be due to the Customs authorities ofthe parties to this protocol in the event of the imported goo-ds in question not being re-exported within the prescribed pe-riod. The guarantee will further cover, up to 10% of the amou-nt of the import duties, and the payment of any other sum whi-ch would have had to be deposited by the importer if there hadbeen no guarantee.5.When the goods covered by the guarantee given by the authoris-ed guarantor organization in the territory of origin are intr-oduced into the territory of destination, the guarantee of theauthorised guarantor organization in the latter territory willimmediately and automatically be substituted for the originalguarantee.6.Should the merchandise covered by the guarantee not be duly r-e-exported from the importing territory within the prescribedperiod and thus become liable for import duties, the authoris-ed guarantor organization in that territory will pay the impo-rt duties due to the creditor Customs Administration.7.Any Party which has settled the import duties in respect of m-erchandise covered by the guarantee in accordance with clause6 above may request the other Party to refund the duties paidon behalf of the importer.8.Calls for repayment must be accompanied by proof of payment (Customs receipts) in original or photocopy. Repayment will bemade within two months after receipt of proof of payment.9.Any dispute between the Parties concerning the interpretationor application of the present Protocol will be settled by neg-otiation between them.10.This Protocol will take effect from the date of its signatureand will remain effective until the expiry of 90 days from t- he date of which either of the Parties has given the other P- arty notice in writing of its intention to terminate the Pro- tocol. Any revision of this Protocol or its termination will be effect-ed without any prejudice to any rights or obligations accruingor incurred under this Protocol prior to the effedive date of s-uch revision or termination.Signed in the English language.Done at Taipei, on 17 December, 1993 Done at Wellington, on 20January 1994AGUSTIN TINGTSU LIU RAY HARDING[Signed][Signed]SECRETARY GENERAL CHIEF EXECUTIVECHINA EXTERNAL TRADEWELLINGTON CHAMBER OF COMMERCEDEVELOPMENT COUNCIL