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1 CHAPTER I General Provisions Article 1 Imported vehicles referred to in this Agreement shall denote th-ose motor vehicles imported duty-free by AIT and its personnelentitled to preferential treatment. CHAPTER II Duty-free Importation of Vehicles Article 2 The number of vehicles which are imported duty-free to be ownedat any one time by AIT, and its personnel entitled to preferent-ial treatment is provided as follows : 1 Official Vehicles AIT shall be limited to 25 vehicles and two motorcycles. In t-he event that these numbers are exceeded, application may be made to CCNNA for adjustment of the maximum number. 2 Privately-owned Vehicles Persons who qualify for preferential treatment are entitled toone vehicle. Article 3 No importation of vehicles of over three years ex-factory shallbe permitted without an approved waiver. Article 4 No importaion of right hand drive vehicles shall be permitted.CHAPTER III Vehicle License Plates and Registration Article 5 All types of vehicles are subject to registration in a prescrib-ed form to be filed by AIT. Vehicle registration and license pl-ates will be issued free of a11 charges. Article 6 If foreign license plates were originally used on the vehicle i-mported dutyfree, they shall be removed immediately upon entry.Article 7 During the period of validity of a license, any inter-change oflicense plates for official cars of the same organization or f-or privately-owned cars of the same person shall be subject tore-application for licenses. No unauthorized change of licensesis permitted before documentation of change is complete. Article 8 Vehicles and motorcycles shall be inspected in accordance withlocal laws and regulations. Article 9 When the originally issued license is no longer used on a vehic-le, a cancellation of motor vehicle registration form shall becompleted by the owner. CHAPTER IV Driver's License Article 10 Personnel and members of their families who have attained the a-ge of eighteen may apply for a driver's license. Article 11 Any person who is the holder of a valid international driving p-ermit issued in a foreign country desiring to drive a motor veh-icle on a temporary basis shall have first obtained an endorsem-ent on the license. Article 12 If the applicant is the holder of a valid driver's license, a l-ocal driver's license will be issued upon application without a-ny examinations or charges. Article 13 Any person who is the holder of a valid local driver's licensemay be issued upon application, prior to departure, an internat-ional driving permit. CHAPTER V Tax Free Petrol Article 14 Tax-free petrol used for official vehicles and privately-ownedvehicles, within the limited number, shall be free of commoditytax upon application. The maximum quantity of commodity tax-freepetrol purchaseable per month per vehicle shall be subject to t-he approval of the competent authority according to the rules t-hen existing. CHAPTER VI Sale, Transfer and Export of Vehicles Section 1 - Sale of Vehicles Article 15 Application for sale of vehicle shall only be processed when thevehicle concerned has been used for at least two years after im-portation. However, such restriction shall not apply to the fol-lowing cases : 1 The owner leaves AIT or departs Taiwan upon retirement or tra-nsfer and the car has been used for at least half a year. 2 The owner is deceased. 3 The vehicle has been damaged beyond repair. 4 Personal car of the Director and the car has been used for oneyear. Article 16 When a car owner who has been separated or retired from AIT ispermitted to remain in Taiwan, he may continue to use his duty-free imported car, provided that he has paid the duty and relat-ed taxes and dues and has applied through the organization conc-erned for issuance of regular vehicle license plates. Article 17 Application for sale of vehicle shall be filed together with therequired documents through AIT to the competent authority. Article 18 Vehicles which are owned by AIT and its personnel and which havebeen used for two years after importation shall be exempted frompayment of import duty and taxes by either buyer or seller whenbeing sold. Article 19 The provisions under this Chapter shall be applicable to caseswhere a vehicle is donated to an organization or person who isnot entitled to diplomatic or preferential treatment. Article 20 Scrapped vehicles authorized to be sold shall be sold without p-ayment of import duties and taxes by either buyer or seller. Ho-wever, the assignee shall not be eligible to apply for any cate-gory of license plates in order to use such scrapped vehicle. Section 2 - Transfer of Vehicles Article 21 Vehicles referred to in this Agreement may be transferred on ap-plication to organizations or personnel entitled to duty-free i-mport at any time. Article 22 Transfer of vehicle shall be documented by application togetherwith the required documents filed through AIT to the competentauthority. Section 3 - Exportation of Vehicles Article 23 Vehicles may be exported as accompanied effects or by separateshipment on application. Article 24 Exported vehicles,whether as accompanied or unaccompanied effec-ts, shall be documented by application together with the requir-ed documents filed through AIT to the competent authority. CHAPTER VII Miscellaneous Article 25 All drivers and vehicles granted iicenses under this Agreementshall comply with all local traffic laws and regulations. Article 26 In addition to the rules governing the importation of vehicles,all persons entitled to preferential treatment and with familystaying at the place of work will be entitled to purchase one-locally-manufactured vehicle per adult family member without pa-yment of any taxes or fees. This Agreement shall enter into force on the date of signature,provided, however, that the provisions governing tax exemptionshall be effective as of September 8,1984. Done at Taipei, on this 21 day of April, 1986 For the Coordination Council for North American Affairs [Signed] Chief, Administrative Div. For the American Institute in Taiwan [Signed] Chief, Administrative Services