of the Treaty of the Economic Community of West African States and especially Articles 13, 20, 50 and 52 ;
MINDFUL of the Protocol relating to the assessment of loss of revenue recorded by Member States of the Community ;
MINDFUL of the Protocol relating to the Fund for Co-operation, Compensation and Development of the Community and especially Article 2 (a) ;
MINDFUL of Decision No 4 of the Authority dated 28th May, 1980 relating to the Trade Liberalisation Programme of the Community ;
DECIDES :
CHAPTER 1 : DEFINITIONS AND PROCEDURES
Article 1
The loss of revenue suffered by a Member State due to the implementation of the Treaty constitutes the total shortfall in receipts recorded by that Member State as a result of trade liberalisation within the Community.
This is equal to the difference between the revenue that would have accrued if the most favoured nation rate or the general rate, whichever, was applicable and consolidated on 28 May, 1979, and the actual revenue collected by using the preferential rate of duty derived from the liberalisation programme as decided by the Council of Ministers.
Article 2
The preferential rate of duty shall be the difference between the rate applicable to the third country benefiting from the most favoured Nation clause and the product of this rate be applying the liberalisation rate resulting from the liberalisation programme, decided by the Authority of Heads of State and Government.
In the event of the favoured nation rate not granted to the third country, the preferential rate of taxation shall be the difference between the rate of common duties consolidated in May, 1979 and the product of this rate derived by applying the liberalisation rate resulting from the liberalisation programme decided by the Authority of Heads of State and Government.
Article 3
The rate applicable to countries benefiting from the most favoured nation clause to be taken into account shall be the rate in force by the date of consolidation of tariff and non-tariff barriers, that is to say, 28 May, 1979.
Article 4
The importing Member State shall attach to its request for compensation for loss in revenue a summary of customs declarations for home consumption and corresponding certificates, certificates of origin as well as exports declaration accompanying the product.
The dossier for the request for compensation shall also be accompanied by the summary record of the re-exported originating products which have been subject of compensation. The movement certificates, certificates of origin and consumption certificates must be attached to this summary record.
The dossier for the request for compensation must reach the Executive Secretariat within the first month following the period under consideration.
Article 5
The Secretariat shall verify the different items contained in this dossier.
Article 6
The calculation of the amount of losses to be compensated shall be undertaken in respect of each Member State on the basis of the total losses incurred from the importation of industrial originating products, less the amount of losses attributable to industrial originating products which were object of re-exportation.
CHAPTER II : BUDGET FOR COMPENSATION
Article 7
The budget for compensation is equal to the aggregate of loss in revenue incurred by all Member States due to the implementation of the provisions of the Treaty relating to Trade Liberalisation.
Article 8
The budget for compensation of a given year is equal to the budget for compensation of the preceding year adjusted for changes in the rate of preferential duties and the projected growth in the volume of intra-community trade.
Article 9
The contribution of a Member State to the compensation budget is calculated on the basis of the country's share in the value of total intra-community exports in originating manufactured products.
Article 10
The payment of contribution to the compensation budget shall be done in convertible currency by Member States latest on the 31st of January of the fiscal year under consideration.
CHAPTER III : PAYMENT OF COMPENSATION
Article 11
The payment of compensation to a Member State shall be calculated subject to deductions of any shortfalls in revenue recorded in respect of originating products imported by this Member State which may be identified as re-exported goods.
Article 12
Losses in revenue resulting from the preferential duties shall be fully compensated for. However, for reasons of solidarity, the Council of Ministers decided that one fifth (1/5) of the losses suffered by the four more developed countries, i.e. Ivory Coast, Ghana, Nigeria and Senegal shall be subject to redistribution in the following manner :
- During the first five (5) years of the trade liberalisation, this one fifth (1/5) shall be made fully available to the least developed States and shall be inversely proportional to the coefficient of the contribution of Member States to the budget of the Community.
- After this period of five (5) years, this one fifth (1/5) shall be given to all the sixteen Member States on the above-mentioned basis.
Article 13
The Council of Ministers shall define the conditions governing the use of this one fifth (1/5) by Member States.
CHAPTER IV : MODALITIES AND FREQUENCY OF PAYMENT OF COMPENSATION
Article 14
The payment of compensation shall be made within thirty days following the end of each quarter on the presentation of the application document, provided the claim being made is valid.
- However, at the beginning of each budget year each Member State shall be paid in advance of a quarter of the estimated loss it may have suffered during the year under consideration ;
- Furthermore, all rights of eligibility for compensation shall cease five years after the budget under consideration.
Article 15
The payment of compensation to any Member State shall be subject to payment of contributions to the compensation budget by the Member State concerned and the presentation of all dossier for request for compensation within the prescribed time limits.
Article 16
Any delay in the payment of the contributions to the compensation budget or the communication of necessary information for the implementation of the mechanism and the procedures relating to the compensation for loss of revenue will lead to the automatic suspension of rights to compensation until the above-mentioned obligations are fulfilled.
Article 17
The payment of compensation shall be done in convertible currency in principle, the same currency used by the Member State for the payment of its contribution to the compensation budget.
CHAPTER V : ENTRY INTO FORCE
Article 18
The present Decision shall come into force on the date of the entry into force of the Trade Liberalisation Programme, and shall be published and registered wherever necessary and particularly in the Official Journal of the Community and the National Gazette of each Member State.
DONE IN LOME, THIS 28TH DAY OF MAY, 1980 IN SINGLE ORIGINAL IN THE ENGLISH AND FRENCH LANGUAGES, BOTH TEXTS BEING EQUALLY AUTHENTIC
FOR THE AUTHORITY
THE CHAIRMAN
