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Economic Community of West African States
A/P1/7/96 Protocol on Conditions governing application of the Community Levy
- Published in official journal 31 on 27 July 1996
- Commenced
- [This is the version of this document at 27 July 1996.]
I. Definitions
Article 1
For the purposes of this Protocol:"Treaty" means the Revised Treaty of the Economic Community of West African States signed in Cotonou on 24 July, 1993;"Community" means the Economic Community of West African States whose establishment is reaffirmed by Article 2 of the Treaty."Member State" or "Member States" means a Member State or Member States of the Community"Third country" means any non-Member State of the Community."Authority" means the Authority of Heads of State and Government of the Community established under Article 7 of the Treaty."Council" means the Council of Ministers of the Community established under Article 10 of the Treaty."Executive Secretariat" and "Executive Secretary" means the Executive Secretariat and Executive Secretary of the Community referred to under Article 17 of the Treaty."Fund" means the ECOWAS Fund for Cooperation, Compensation and development established under Article 21 of the Treaty."Administration and Finance Commission" (AFC) means the Commission established under Article 22(h) of the Treaty.II. Tax base, assessment and collection
Article 2
This Protocol defines the conditions for the application of the Community levy instituted in Article 72 of the Treaty.Article 3
The taxable base of the Community levy shall be the taxable value of goods, originating from third countries imported into the Community and released for home consumption.Article 4
The following shall fall outside the scope of the Community levy:Article 5
The following shall be exempted from the Community Levy:Article 6
The Community tax shall be levied on the basis of:Article 7
The rate of the Community levy shall be fixed at one half percent (0.5%) of the value of imports originating from third countries. This rate may be amended, as necessary, every three years by the Authority on the recommendation of the Council of Ministers.Article 8
Article 9
III. Declaration and allocation of returns
Article 10
Amounts collected as Community levy shall be paid by the national Administration, within a period not exceeding one month from the date of collection, into an account opened by the Executive Secretary in the name of ECOWAS with the Central Bank of each Member State, for States which have their own Central Banks, and with the national office of the Banque Centrale des Etats de I’Afrique de I'Ouest (BCEAO) in the case of Member States of the Union Monetaire Quest Africaine (UMOA).Article 11
Amounts collected as Community levy shall be allocated as follows:Article 12
The budgets and other uses referred to in Article 11 above shall be decided annually by the Council of Ministers as recommended by the Administration and Finance Commission.IV. Surpluses and deficits
Article 13
Any surplus recorded on the Community levy pursuant to authorised expenditure for a financial year shall be carried over into the accounts of the Executive Secretariat.Article 14
Article 15
Where the deficit or surplus over three consecutive budget years exceeds 25% of the total vote, the Council of Ministers shall effect the necessary adjustments either by widening the tax base or, where there is a deficit, by raising the rate of the Community Levy or by reducing the rate in case of a surplus.V. Administration of the Community levy
Article 16
In the Member States, regulations governing the management of disputes concerning Customs duties and taxes shall also apply to operations involving the tax base, assessment and collection of the Community levy. Proceeds from contentious cases shall, with the exception of the actual Community levy, be paid exclusively to the state.Article 17
At the Community level, the Council of Ministers shall oversee all operations carried out by national Customs Administrations through the Executive Secretariat. The Administration and Finance Commission shall present an annual report to Council accordingly. Conditions governing this supervisory role shall be determined by Council.Article 18
The Executive Secretariat shall, in its detailed annual report to Council on the application of the mechanism and subject to the provisions of Article 7, propose any amendments it may deem necessary or which may have been submitted by one or more Member States.VI. Transitional provisions
Article 19
During a transitional period of three years, commencing from the date of entry into force of this protocol:Article 20
The Minister responsible for ECOWAS affairs in each Member State shall, on the 1st of January of each fiscal year, notify the bank in which the ECOWAS Community levy account has been opened, of the maximum amount which may be withdrawn from this account by the Executive Secretary of ECOWAS.Article 21
The Executive Secretariat shall, in collaboration with the Member States and the ECOWAS national units, present an evaluation report to the Council of Ministers on the mechanism of the Community levy before the expiration of the transition periodCouncil shall, on the basis of this evaluation report, determine the arrangements necessary to ensure a smooth passage to the substantive regime.VII. Final provisions
Article 22 – Settlement of disputes
Article 23 – Sanctions
The sanctions specified in Article 77 of the Treaty shall be applicable to a Member State which fails to honour the obligations imposed on it by the provisions of this Protocol.Article 24 – Amendment and revision
Article 25 – Deposit and entry into force
History of this document
27 July 1996 this version
Consolidation