Taxonomies
Economic Community of West African States
Protocol A/P2/1/03 Relating to The Application of Compensation Procedures for Loss of Revenue Incurred by ECOWAS Member States as a Result of the Trade Liberalisation Scheme
- Published in official journal 42 on 1 January 2003
- Commenced
- [This is the version of this document at 31 January 2003.]
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 creation was reaffirmed by article 2 of the Treaty"Member State" Means a Member State of ECOWAS."Authority" Means the ECOWAS Authority of Heads of State and Government of established by article 7 of the Treaty."Council" Means the ECOWAS Council of Ministers established by article 10 of the Treaty."Executive Secretariat and Executive Secretary" Means the ECOWAS Executive Secretariat provided for and Executive Secretary appointed under articles 17 and 18 of the Treaty respectively.Article 2
Under the terms of article 48 of the Treaty, compensation shall be paid to Member States incurring loss of Customs revenue from imports as a result of the implementation of the ECOWAS trade liberalization scheme.II – Evaluation of revenue lost
Article 3
Loss of customs revenue incurring by a Member State is defined as total shortfall in receipts recorded by the Member State as a result of its importation of approved originating industrial products.Article 4
Total loss of custom revenue incurred by an ECOWAS Member State importing industrial products originating from another ECOWAS Member State, as a result of the application of the preferential intra-Community regime shall be assessed according to the following formula:CRL = (Cde + Str), VcifWhereCRL = Customs revenue lostCde = Customs duty and taxes of equivalent effectStr = Statistical taxation rateVcif = CIF value of product.Article 5
Shall be compensated, any customs revenue lost as a result of the imposition of import duties and taxes assessed on the basis of the formula stipulated in article 4 above. This provisions shall not be applicable to domestic taxes levied on locally produced goods or goods imported from within the Community.III – Duration
Article 6
The duration of the compensation mechanism is fixed at four (4) years, dating from 1 January 2002.Amounts payable as compensation shall be calculated on a decreasing scale in the following manner:100% of loss incurred, in 200280% of loss incurred, in 200360% of loss incurred, in 200430% of loss incurred, in 20050% of loss incurred, with effect from 1 January 2006.Article 7
Member States shall transmit to the Executive Secretariat, within a time-limit not exceeding six months from the date of reference, a list of customs declarations processed under the ECOWAS trade liberalization scheme, accompanied by the originals of the certificates of origin of each product, and copies of the declaration of release for consumption.IV – Compensation procedure
Article 8
The Executive Secretariat shall be given a time-limit of 90 days from the date of receipt of applications for compensation, to screen the applications, determine the amounts payable as compensation and effect payment.Article 9
Payment of compensation shall be effected by the Executive Secretary who shall render account thereof to the Council of Ministers.V – Financing
Article 10
Compensation for loss of revenue incurred by Member States shall be financed from the proceeds of the Community levy.VI – Interim arrangements
Article 11
Pending the entry into full force of the community levy, the Executive Secretariat shall effect payment of the compensation, in consultation with the Member States, in accordance with the current rules.VII – Final provision
Article 12 – Amendment and revision
Article 13 – Entry into force
Article 14
The protocol relating to assessment of loss of revenue and decision A/DEC. 19/5/80, dated 28 May 1980, relating to the application of compensation procedure for loss of revenue and all the provisions therein shall be abrogated upon the entry into force of this protocol.History of this document
31 January 2003 this version
Consolidation