Article 32.
1. The Contracting Parties shall grant each other freedom of transit through their territories for goods, including baggage, and for means of transport of all kinds, irrespective of the mode of transport, whether by road, rail, air, sea or inland waterway.
2. Either Contracting Party may require that transit traffic through its territory to or from the territory of the other Party be declared to the competent customs authority, but, except in the case of non-compliance with customs regulations, such traffic shall not be subject to unnecessary delay or restraint. Such traffic shall, moreover, be exempt from customs duties, other transit taxes and transit charges, with the exception of transport or other charges corresponding to the administrative costs of transit and the costs of services rendered.
3. Goods of every kind originating in a Contracting Party and imported into the territory of the other Contracting Party through the territory of third countries, as well as goods of every kind imported from a Contracting Party through the territory of the other Contracting Party, shall not be subjected on importation to any duties or charges which are different from or higher than those which would be imposed if the goods had been imported directly from the country of origin. This provision shall apply to goods in direct transit as well as to goods which in transit have been, under customs supervision, transhipped, repacked or stored.
Article 33.
1. For the purposes of this Treaty, the term "company or firm" includes all legal persons, commercial companies or firms, and all other companies or associations, whether incorporated or not, which have their seat in the territory of one of the Contracting Parties and are legally constituted under the law of that Party, whether or not their activities are carried on for profit, and whether or not the liability of partners or members is limited.
2. The legal status of companies or firms of one Contracting Party shall be recognised in the territory of the other Party.
Article 34.
1. The provisions of this Treaty shall not affect the right of each Contracting Party to take or maintain measures
(a) necessary in fulfilment of obligations assumed by the Contracting Party for the maintenance and restoration of international peace and security, or which are indispensable for the protection of its essential internal or external security interests, including the maintenance of neutrality
(b) relating to the production of, and traffic in, arms, munitions and war material and to the transport thereof, and to trade in other goods intended directly or indirectly for the supply of the forces of war;
(c) relating to fissile materials or to materials for their manufacture and to radioactive by-products resulting from the use or processing of such materials;
(d) necessary for animal health purposes and for the protection of animals and plants against diseases, pests and vermin, and in particular in the interests of public health, in accordance with the principles and international agreements on the subject
(e) relating to the operation of State monopolies now in force or which may hereafter be established;
(f) for the application to foreign goods of prohibitions or restrictions laid down by domestic legislation for the production, sale, transport or consumption, within the territory, of similar domestic goods, provided that such prohibitions or restrictions are not applied in such a manner as to protect domestic production;
(g) governing the importation and exportation of gold, silver, platinum and their alloys;
(h) necessary to prevent deceptive and unfair practices in commercial matters; and
(i) necessary for the protection of national treasures possessing artistic, historic or archaeological value; or
(k) provide for advantages for national fishery and marine hunting products.
2. The two Contracting Parties shall apply the measures provided for in paragraph 1 in such a way that they do not constitute a means of arbitrary or unjustifiable discrimination in their mutual relations in comparison with those practised in respect of any other country in the same circumstances. Such measures shall not constitute a disguised restriction on trade between them.
3. In taking the measures provided for in paragraph 1, both Contracting Parties shall endeavour to ensure that, as far as possible, they result in the least possible deviation from the provisions of this Treaty.
Article 35.
The provisions of this Treaty providing for most-favoured-nation treatment shall not extend
(a) to advantages which each Contracting Party accords to neighbouring countries for the purpose of facilitating frontier relations;
(a) advantages which either Contracting Party accords to neighbouring countries for the purpose of facilitating frontier relations; (b) advantages arising from a customs union or a free trade area or from interim agreements leading to the establishment of customs unions or free trade areas;
(c) to advantages accorded by either Contracting Party to territories held in trust by that Party;
(d) advantages granted by Italy to the Kingdom of Libya, the Republic of San Marino and the Vatican City State;
(e) to the privileges and advantages granted by a Contracting Party by reason of its participation in a community established between several countries for the common organisation of one or more branches of production, trade or services, or for the security of those branches;
(f) advantages which either Contracting Party grants to third States in the framework of conventions for the avoidance of double taxation;
(g) advantages granted by one or both Contracting Parties to one or more third countries in the field of civil aviation.
Article 36.
Each Contracting Party shall grant, within the framework of this Treaty, national treatment on the basis that national treatment is also granted by the other Party in the same matters.
Article 37.
1. Except as provided in Article 16, the provisions of multilateral agreements to which Contracting Parties accede shall prevail over the provisions of this Treaty, unless the latter provide for more favourable treatment.
2. If the provisions of this Treaty and the provisions of the acts establishing and implementing the Communities to which both Contracting Parties are parties and which have been established between several States for the purpose of promoting their economic development jointly cover the same subject matter, the more favourable provisions of such acts shall prevail.
3. Should any of the Multilateral Agreements referred to in Articles 15 and 16 cease to have effect in respect of one or both Contracting Parties, the Contracting Parties shall enter into consultations to determine which provisions of those Agreements shall continue to apply bilaterally.
Article 38.
In all cases where national treatment and most-favoured-nation treatment are accorded concurrently under this Treaty, the most favourable treatment shall apply.
Article 39.
1. If any difference arises between the two Contracting Parties concerning the interpretation or application of this Treaty, they undertake to consult each other in an amicable spirit with a view to finding a solution.
2. If no solution is found, the difference shall be submitted
(a) if the two Contracting Parties agree, to the International Court of Justice;
(a) if the two Contracting Parties agree, to the International Court of Justice; (b) if not, and at the request of a Contracting Party, to an arbitral tribunal.
3. (a) The arbitral tribunal shall be constituted from time to time and shall consist of three arbitrators. Each Contracting Party shall appoint one arbitrator; the two arbitrators so appointed shall appoint a President who shall be a national of a third State.
(b) Each Contracting Party shall appoint its own arbitrator within two months after the submission of a relevant request by the other Contracting Party; if it fails to do so, the arbitrator shall be appointed, at the request of the other Contracting Party, by the President of the International Court of Justice.
(c) If the arbitrators cannot agree within one month after their appointment on the choice of the president of the arbitral tribunal, the latter shall be appointed, at the request of a Contracting Party, by the President of the International Court of Justice.
(d) If the President of the International Court of Justice is prevented from making the appointments referred to in subparagraphs (b) and (c) of this paragraph or if he is a national of either Contracting Party, the appointment shall be made by the Vice-President of the Court. If the Vice-President of the Court is also prevented from making an appointment or is a national of either Contracting Party, the appointment shall be made by the most senior member of the Court who is not a national of either Contracting Party.
(e) Unless the two Contracting Parties agree otherwise, the arbitral tribunal shall establish its own rules of procedure.
(f) The arbitral tribunal shall act by a majority of votes. Its decisions shall be binding on the two Contracting Parties, which shall implement them.
Article 40.
1. This Treaty shall be ratified and the exchange of the instruments of ratification shall take place in Bonn as soon as possible.
2. This Treaty shall enter into force one month after the exchange of the instruments of ratification. It shall remain in force for a period of ten years and, in the event that either Contracting Party has not denounced it in writing one year before the date of its expiry, it shall be extended indefinitely. After the expiry of the 10-year period, the Treaty may be terminated at any time, but shall remain in force for one year from the date of termination.
Conclusion
IN WITNESS WHEREOF, the respective Plenipotentiaries have signed this Treaty and have affixed their seals thereto.
DONE at Rome, this 21st day of November, 1957, in two originals in the German and Italian languages, both texts being equally authentic.
For the Italian Republic:
Pella
For the Federal Republic of Germany
von Brentano
Attachments
Protocol
AT THE SIGNING OF the Treaty of Friendship, Commerce and Navigation between the Italian Republic and the Federal Republic of Germany, the undersigned Plenipotentiaries have also agreed upon the following provisions which shall be considered as an integral part of the aforesaid Treaty:
1. The term "public health" in Article 2 paragraph 1 and Article 3 paragraph 3 includes the protection of life and health of humans, animals and plants.
2. Persons who are nationals of both Contracting Parties and who have their permanent residence and basis of existence in the territory of one of the Contracting Parties may be called upon only by the latter Party to perform any legal obligation of military service (see Article 5, paragraph 1).
3. The term "natural disasters and similar disasters" in Article 5 paragraph 4 does not cover wars and warlike situations.
4. Ships and aircraft flying the flag of either Contracting Party may not, in the territory of the other Party, be subjected to the measures referred to in Article 5(3) and Article 6(4).
5. The provisions of Article 6(4) and (5) shall also apply where a private enterprise becomes publicly owned or subject to public control or similar action by public authorities.
6. The two Contracting Parties agree that it is desirable in the interests of their economic relations that nationals of one Contracting Party be permitted to serve as arbitrators in the territory of the other Contracting Party in the same manner as nationals in arbitration proceedings where the choice of arbitrators is left exclusively to the parties concerned. In this connection, the two Contracting Parties shall make every effort to ensure such a regulation (see Article 7).
7. The national treatment referred to in Article 7 does not extend to the grant of legal aid and the exemption from cautio iudicatum solvi, since in this respect the International Convention on Civil Procedure concluded at The Hague on 17 July 1905 continues to apply.
8. The provision in the second sentence of Article 8(4) shall apply to the following professions or activities
(a) accountants
(b) engineers;;
(c) architects;
(d) chemists (excluding pharmacists);
(e) actuaries
(f) agronomists
(g) surveyors
(h) industrial experts
(i) forestry and agricultural experts.
9. The provision of Article 8, paragraph 7, shall not apply to persons employed by one Contracting Party in the territory of the other Contracting Party.
10. The provisions of Article 12 shall not prevent a Contracting State from requiring, as a condition for registration in its register, that vessels or aircraft shall not be owned by nationals or companies of a foreign State.
11. The national treatment laid down in Article 14 shall not preclude the levying of taxes. It shall also be without prejudice to the rules in force in either country concerning the imposition of corporate tax on foreign companies.
12. Each Contracting Party may make the importation of capital subject to an authorisation (see Article 15).
13. a) Each Contracting Party undertakes not to invoke from the other Party the application of the provisions of Article 22 to an extent different from or more burdensome than if the other Party applied similar provisions in multilateral agreements to which both Contracting Parties are parties. However, this shall be without prejudice to any greater advantage arising from the most-favoured-nation treatment.
(b) Should the Multilateral Agreements referred to in subparagraph (a) cease to have effect with respect to one or both Contracting Parties, the Contracting Parties shall consult each other as soon as possible in order to determine the conditions under which the provisions of Article 22 may continue to be applied. Until such time as these conditions have been agreed, each Contracting Party may apply these provisions subject to the limitations provided for by its own legislation.
This shall be without prejudice, however, to any greater advantage which may accrue from the most-favoured-nation treatment.
14. The provision of Article 25 paragraph 2 shall not apply to the Postal and Telecommunications Administrations of the two Contracting Parties.
15. The provisions of paragraph 1 of Article 32 shall not affect the existing rules of both Contracting Parties relating to road and air traffic regulations.
16. The provisions of paragraph 2 of Article 32 shall not prevent the levying on transit traffic of taxes or other charges payable in respect of the carriage or movement of means of transport, provided that such taxes and charges are levied in accordance with national and most-favoured-nation treatment.
17. Natural persons may prove their nationality under this Treaty
(a) in the case of Italians
(a) in the case of Italians: by presenting a national passport or a citizenship certificate issued by the authorities of the Republic of Italy, or a seaman's book issued by the authorities of the Republic of Italy, provided that the entry therein states that the holder is an Italian citizen
b) in the case of Germans:
by presenting a national passport or a certificate issued by the Authorities of the Federal Republic of Germany stating that the holder is a German citizen, or by means of a navigation licence issued by the Authorities of the Federal Republic of Germany, provided that the entry therein states that the holder is German;
IN WITNESS WHEREOF, the respective Plenipotentiaries have signed this Protocol and have affixed their seals thereto.
DONE at Rome, this 21st day of November 1957, in two originals in the German and Italian languages, both texts being equally authentic.
For the Italian Republic:
Pella
For the Federal Republic of Germany
von Brentano
Protocol of Errata Corrigendum to the text of the Treaty of Friendship, Commerce and Navigation between the Italian Republic and the Federal Republic of Germany, signed at Rome on 21 November 1957
In view of the fact that a misprint was found in the Italian text of the Treaty of Friendship, Commerce and Navigation between the Italian Republic and the Federal Republic of Germany, signed in Rome on 21 November 1957, the Governments of the Italian Republic and the Federal Republic of Germany agree as follows:
In Article 20(e) of the Italian text, the word "exports" shall be corrected to "exhibitions". The above amendment shall be deemed to have been made to the text of the Treaty on the date of signature of the Treaty.
IN WITNESS WHEREOF the undersigned Plenipotentiaries have signed this Protocol.
DONE at Rome, this 24th day of March 1958, in two originals, each in the German and Italian languages, both texts being equally authentic.
For the Government of the Italian Republic:
For the Government of the Federal Republic of Germany,
Klaiber
Exchange of Notes
1. The Federal Minister of Foreign Affairs
Excellency!
Rome, 21 November 1957
I have the honour to refer to the Treaty of Friendship, Trade and Navigation between the Federal Republic of Germany and the Italian Republic signed today and to note the following further agreements:
In view of the special circumstances which led to the conclusion of the Treaty on Relations between the Federal Republic of Germany and the Three Powers and the Supplementary Treaties as amended by the Protocol signed in Paris on 23 October 1954, I have the honour to refer to the following agreements. The provisions of the Treaty of Friendship, Commerce and Navigation shall not affect the actual and legal position of Italian nationals, companies and property with regard to the above-mentioned agreements and the application of the corresponding German legislation, in accordance with the Protocol signed in Paris on 23 October 1954 on the termination of the occupation regime in the Federal Republic of Germany and on the granting of advantages to nationals and companies of other countries in the field of emergency aid and equalisation of burdens legislation and special intergovernmental agreements in the field of equalisation of burdens.
The Government of the Federal Republic of Germany and the Government of the Italian Republic will, however, enter into negotiations and endeavour to resolve those questions which, in connection with the agreements and benefits referred to in the preceding paragraph, are of interest to the relations between the two Contracting States.
I would be grateful if you would confirm the contents of the above agreements, which form an integral part of the Treaty of Friendship, Commerce and Navigation concluded today.
Please accept, Excellency, the assurance of my highest consideration.
From Brentano
His Excellency
the Minister of Foreign Affairs of the Italian Republic,
Professor Giuseppe Pella
Rome
The Minister of Foreign Affairs
Your Excellency
Rome, 21 November 1957
I have the honour to acknowledge receipt of your note dated today which has the following content:
(...)
I have the honour to confirm to Your Excellency the content of the above understanding which forms an integral part of the Treaty of Friendship, Commerce and Navigation concluded today.
Please accept, Sir, the assurance of my highest consideration.
Pella
S. E. Dr. Heinrich von Brentano
Minister for Foreign Affairs of the Federal Republic of Germany
Rome
2. The Federal Minister of Foreign Affairs
Excellency!
Dr. Heinrich von Brentano
Rome
Rome, 21 November 1957
With reference to the Treaty of Friendship, Trade and Navigation between the Federal Republic of Germany and the Italian Republic signed today, I have the honour to inform you of the following:
The Government of the Federal Republic of Germany, in agreement with the Senate of Berlin, desires to include the Land of Berlin in the Treaty of Friendship, Commerce and Navigation between the Federal Republic of Germany and the Italian Republic, and therefore proposes to the Government of the Italian Republic the conclusion of the following agreement:
"The Treaty shall also apply to the Land of Berlin unless the Government of the Federal Republic of Germany makes a declaration to the contrary to the Italian Government within three months of the entry into force of the Treaty."
If the Italian Government agrees with the foregoing, may I suggest that this note and your reply constitute the formal confirmation of the agreement reached between our two Governments, which forms an essential part of the Treaty of Friendship, Commerce and Navigation signed today.
Please accept, Sir, the assurance of my highest consideration.
From Brentano
His Excellency
the Minister of Foreign Affairs of the Italian Republic,
Professor Giuseppe Pella
Rome