Title
TREATY OF AMITY, ECONOMIC RELATIONS, AND CONSULAR RIGHTS BETWEEN THE UNITED STATES OF AMERICA AND IRAN
Preamble
IRAN
Amity, Economic Relations, and Consular Rights
Treaty signed at Tehran August 15, 1955;Ratification advised by the Senate of the United States of America July 11, 1956;Ratified by the President of the United States of America September 14, 1956;Ratified by Iran April 30, 1957;Ratifications exchanged at Tehran May 16, 1957;Proclaimed by the President of the United States of America June 27, 1957;Entered into force June 16, 1957.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
WHEREAS a treaty of amity, economic relations, and consular rights between the United States of America and Iran was signed at Tehran on August 15,1955, the original of which treaty, being in the English and Persian languages, is word for word as follows:
Body
TREATY OF AMITY, ECONOMICRELATIONS, AND CONSULAR
RIGHTS BETWEEN THE UNITED STATES OFAMERICA AND IRAN
The United States of America and Iran, desirous of emphasizing thefriendly relations which have long prevailed between their peoples, of reaffirming thehigh principles in the regulation of human affairs to which they are committed, ofencouraging mutually beneficial trade and investments and closer economic intercoursegenerally between their peoples, and of regulating consular relations, have resolved toconclude, on the basis of reciprocal equality of treatment, a Treaty of Amity, EconomicRelations, and Consular Rights, and have appointed as their Plenipotentiaries:
The President of the United States of America:
Mr. Selden Chapin, Ambassador Extraordinary and Plenipotentiary of the United States of America at Tehran;
And
His Imperial Majesty, the Shah of Iran:
His Excellency Mr. Mostafa Samiy, Under Secretary of the Ministry of Foreign Affairs;
Who, having communicated to each other their full powers found to be indue form, have agreed upon the following articles:
Article I.
There shall be firm and enduring peace and sincere friendship betweenthe United States of America and Iran.
Article II.
1. Nationals of either High Contracting Party shall be permitted, uponterms no less favorable than those accorded to nationals of any third country, to enterand remain in the territories of the other High Contracting Party for the purpose ofcarrying on trade between their own country and the territories of such other HighContracting Party and engaging in related commercial activities, and for the purpose ofdeveloping and directing the operations of an enterprise in which they have invested or inwhich they are actively in the process of investing, a substantial amount of capital.
2 Nationals of either High Contracting Party within the territories ofthe other High Contracting Party shall either individually or through associations, and solong as their activities are not contrary to public order, safety or morals: (a) bepermitted to travel therein freely and reside at places of their choice; (b) enjoy freedomof conscience and the right to hold religious services; (c) be permitted to engage inphilanthropic, educational and scientific activities; and (d) have the right to gather andtransmit information for dissemination to the public abroad, and otherwise to communicatewith other persons inside and outside such territories. They shall also be permitted toengage in the practice of professions for which they have qualified under the applicablelegal provisions governing admission to professions.
3. The provisions of paragraphs 1 and 2 of the present Article shall besubject to the right of either High Contracting Party to apply measures which arenecessary to maintain public order, and to protect public health, morals and safety,including the right to expel, to exclude or to limit the movement of aliens on the saidgrounds.
4. Nationals of either High Contracting Party shall receive the mostconstant protection and security within the territories of the other High ContractingParty. When any such national is in custody, he shall in every respect receive reasonableand humane treatment; and, on his demand, the diplomatic or consular representative of hiscountry shall without unnecessary delay be notified and accorded full opportunity tosafeguard his interests. He shall be promptly informed of the accusations against him,allowed all facilities reasonably necessary to his defense and given a prompt andimpartial disposition of his case.
Article III.
1. Companies constituted under the applicable laws and regulations ofeither High Contracting Party shall have their juridical status recognized within theterritories of the other High Contracting Party. It is understood, however, thatrecognition of juridical status does not of itself confer rights upon companies to engagein the activities for which they are organized. As used in the present Treaty,"companies" means corporations, partnerships, companies and other associations,whether or not with limited liability and whether or not for pecuniary profit.
2. Nationals and companies of either High Contracting Party shall havefreedom of access to the courts of justice and administrative agencies within theterritories of the other High Contracting Party, in all degrees of jurisdiction, both indefense and pursuit of their rights, to the end that prompt and impartial justice be done.Such access shall be allowed, in any event, upon terms no less favorable than thoseapplicable to nationals and companies of such other High Contracting Party or of any thirdcountry. It is understood that companies not engaged in activities within the countryshall enjoy the right of such access without any requirement of registration ordomestication.
3. The private settlement of disputes of a civil nature, involvingnationals and companies of either High Contracting Party, shall not be discouraged withinthe territories of the other High Contracting Party; and, in cases of such settlement byarbitration, neither the alienage of the arbitrators nor the foreign situs of thearbitration proceedings shall of themselves be a bar to the enforceability of awards dulyresulting therefrom.
Article IV.
1. Each High Contracting Party shall at all times accord fair andequitable treatment to nationals and companies of the other High Contracting Party, and totheir property and enterprises; shall refrain from applying unreasonable or discriminatorymeasures that would impair their legally acquired rights and interests; and shall assurethat their lawful contractual rights are afforded effective means of enforcement, inconformity with the applicable laws.
2. Property of nationals and companies of either High Contracting Party,including interests in property, shall receive the most constant protection and securitywithin the territories of the other High Contracting Party, in no case less than thatrequired by international law. Such property shall not be taken except for a publicpurpose, nor shall it be taken without the prompt payment of just compensation. Suchcompensation shall be in an effectively realizable form and shall represent the fullequivalent of the property taken; and adequate provision shall have been made at or priorto the time of taking for the determination and payment thereof.
3. The dwellings, offices, warehouses, factories and other premises ofnationals and companies of either High Contracting Party located within the territories ofthe other High Contracting Party shall not he subject to entry or molestation without justcause. Official searches and examinations of such premises and their contents, shall bemade only according to law and with careful regard for the convenience of the occupantsand the conduct of business.
4. Enterprises which nationals and companies of either High ContractingParty are permitted to establish or acquire, within the territories of the other HighContracting Party, shall be permitted freely to conduct their activities therein, uponterms no less favorable than other enterprises of whatever nationality, engaged in similaractivities. Such nationals and companies shall enjoy the right to continued control andmanagement of such enterprises; to engage attorneys, agents, accountants, and othertechnical experts, executive personnel interpreters and other specialized employees oftheir choice; and to do all otiler things necessary or incidental to the effective conductof their affairs.
Article V.
1. Nationals and companies of either High Contracting Party shall bepermitted, within the territories of the other High Contracting Party: (a) to lease, forsuitable periods of time, real property needed for their residence or for the conduct ofactivities pursuant to the present Treaty; (b) to purchase or otherwise acquire personalproperty of all kinds; and (c) to dispose of property of all kinds by sale, testament orotherwise. The treatment accorded in these respects shall in no event be less favorablethan that accorded nationals and companies of any third country.
2. Upon compliance with the applicable laws and regulations respectingregistration and other formalities, nationals and companies of either High ContractingParty shall be accorded within the territories of the other High Contracting Partyeffective protection in the exclusive use of inventions, trade marks and trade names.
Article V.
1. Nationals and companies of either High Contracting Party shall not besubject to the payment of taxes, fees or charges within the territories of the other HighContracting Party, or to requirements with respect to the levy and collection thereof,more burdensome than those borne by nationals, residents and companies of any
Thirdcountry. In the case of nationals of either High Contracting Party residing within theterritories of the other High Contracting Party, and of nationals and companies of eitherHigh Contracting Party engaged in trade or other gainful pursuit or in non-profitactivities therein, such payments and requirements shall not be more burdensome than thoseborne by nationals and.companies of such other High Contracting Party.
2. Each High Contracting Party, however, reserves the right to: (a)extend specific tax advantages only on the basis of reciprocity, or pursuant to agreementsfor the avoidance of double taxation or the mutual protection of revenue; and (b) applyspecial requirements as to the exemptions of a personal nature allowed to non-residents inconnection with income and inheritance taxes.
3. Companies of either High Contracting Party shall not be subject,within the territories of the other High Contracting Party, to taxes upon any income,transactions or capital not attributable to the operations and investment thereof withinsuch territories.
Article VII.
1. Neither High Contracting Party shall apply restrictions on the makingof payments, remittances, and other transfers of funds to or from the territories of theother High Contracting Party, except (a) to the extent necessary to assure theavailability of foreign exchange for payments for goods and services essential to thehealth and welfare of its people, or (b) in the case of a member of the InternationalMonetary Fund, restrictions specifically approved by the Fund.
2. If either High Contracting Party applies exchange restrictions, itshall promptly make reasonable provision for the withdrawal, in foreign exchange in thecurrency of the other High Contracting Party, of: (a) the compensation referred to inArticle IV, paragraph 2, of the present Treaty, (b) earnings, whether in the form ofsalaries, interest, dividends, commissions, royalties, payments for technical services, orotherwise, and (c) amounts for amortization of loans, depreciation of direct investmentsand capital transfers, giving consideration to special needs for other transactions. Ifmore than one rate of exchange is in force, the rate applicable to such withdrawals shallbe a rate which is specifically approved by the International Monetary Fund for suchtransactions or, in the absence of a rate so approved, an effective rate which, inclusiveof any taxes or surcharges on exchange transfers, is just and reasonable.
3 Either High Contracting Party applying exchange restrictions shall ingeneral administer them in a manner not to influence disadvantageously the competitiveposition of the commerce, transport or investment of capital of the other High ContractingParty in comparison with the commerce, transport or investment of capital of any thirdcountry; and shall afford such other High Contracting Party adequate opportunity forconsultation at any time regarding the application of the present Article.
Article VIII.
1. Each High Contracting Party shall accord to products of the otherHigh Contracting Party, from whatever place and by whatever type of carrier arriving andto products destined for exportation to the territories of such other High ContractingParty, by whatever route and by whatever type of carrier, treatment no less favorable thanthat accorded like products of or destined for exportation to any third country, in allmatters relating to:
(a) duties, other charges, regulations and formalities, on or inconnection with importation and exportation; and (b) internal taxation, sale,distribution, storage and use. The same rule shall apply with respect to the internationaltransfer of payments for imports and exports.
2. Neither High Contracting Party shall impose restrictions orprohibitions on the importation of any product of the other High Contracting Party or onthe exportation of any product to the territories of the other High Contracting Party,unless the importation of the like product of, or the exportation of the like product to,all third countries is similarly restricted or prohibited.
3. If either High Contracting Party imposes quantitative restrictions onthe importation or exportation of any product in which the other High Contracting Partyhas an important interest:
(a) It shall as a general rule give prior public notice of the total amount of the product, by quantity or value, that may be imported or exported during a specified period, and of any change in such amount or period; and
(b) If it makes allotments to any third country, it shall afford such other High Contracting Party a share proportionate to the amount of the product, by quantity or value, supplied by or to it during a previous representative period, due consideration being given to any special factors affecting the trade in such product.
4. Either High Contracting Party may impose prohibitions or restrictionson sanitary or other customary grounds of a noncommercial nature, or in the interest ofpreventing deceptive or unfair practices, provided such prohibitions or restrictions donot arbitrarily discriminate against the commerce of the other High Contracting Party.
5. Either High Contracting Party may adopt measures necessary to assurethe utilization of accumulated inconvertible currencies or to deal with a stringency offoreign exchange. However, such measures shall deviate no more than necessary from apolicy designed to promote the maximum development of nondiscriminatory multilateral tradeand to expedite the attainment of a balance-of-payments position which will obviate thenecessity of such measures.
6. Each High Contracting Party reserves the right to accord specialadvantages: (a) to products of its national fisheries, (b) to adjacent countries in orderto facilitate frontier traffic, or (c) by virtue of a customs union or free trade area ofwhich either High Contracting Party, after consultation with the other High ContractingParty, may become a member. Each High Contracting Party, moreover, reserves rights andobligations it may have under the General Agreement on Tariffs and Trade, and specialadvantages it may accord pursuant thereto.
Article IX.
1. In the administration of its customs regulations and procedures, eachHigh Contracting Party shall: (a) promptly publish all requirements of general applicationaffecting importation and exportation; (b) apply such requirements in a uniform, impartialand reasonable manner; (c) refrain, as a general practice, from enforcing new or moreburdensome requirements until after public notice thereof; (d) provide an appealsprocedure by which prompt and impartial review of administrative action in customs matterscan be obtained; and (e) not impose greater than nominal penalties for infractionsresulting from clerical errors or from mistakes made in good faith.
2. Nationals and companies of either High Contracting Party shall beaccorded treatment no less favorable than that accorded nationals and companies of theother High Contracting Party, or of any third country, with respect to all mattersrelating to importation and exportation.
3. Neither High Contracting Party shall impose any measure of adiscriminatory nature that hinders or prevents the importer or exporter of products ofeither country from obtaining marine insurance on such products in companies of eitherHigh Contracting Party.
Article X.
1. Between the territories of the two High Contracting Parties thereshall be freedom of commerce and navigation.
2. Vessels under the flag of either High Contracting Party, and carryingthe papers required by its law in proof of nationality, shall be deemed to be vessels ofthat High Contracting Party both on the high seas and within the ports, places and watersof the other High Contracting Party.
3. Vessels of either High Contracting Party shall have liberty, on equalterms with vessels of the other High Contracting Party and on equal terms with vessels ofany third country, to come with their cargoes to all ports, places and waters of suchother High Contracting Party open to foreign commerce and navigation.
Such vesselsand cargoes shall in all respects be accorded national treatment and most favored nationtreatment within the ports, places and waters of such other High Contracting Party; buteach High Contracting Party may reserve exclusive rights and privileges to its own vesselswith respect to the coasting trade, inland navigation and national fisheries.
4. Vessels of either High Contracting Party shall be accorded nationaltreatment and most-favored-nation treatment by the other High Contracting Party withrespect to the right to carry all products that may be carried by vessel to or from theterritories of such other High Contracting Party; and such products shall be accordedtreatment no less favorable than that accorded like products carried in vessels of suchother High Contracting Party, with respect to: (a) duties and charges of all kinds, (b)the administration of the customs, and (c) bounties, drawbacks and other privileges ofthis nature.
5. Vessels of either High Contracting Party that are in distress shallbe permitted to take refuge in the nearest port or haven of the other High ContractingParty, and shall receive friendly treatment and assistance.
6. The term "vessels", as used herein, means all types ofvessels, whether privately owned or operated, or publicly owned or operated; but this termdoes not, except with reference to paragraphs 2 and 5 of the present Article, includefishing vessels or vessels of war.
Article XI.
1. Each High Contracting Party undertakes (a) that enterprises owned orcontrolled by its Government, and that monopolies or agencies granted exclusive or specialprivileges within its territories, shall make their purchases and sales involving eitherimports or exports affecting the commerce of the other High Contracting Party solely inaccordance with commercial considerations, including price, quality, availability,marketability, transportation and other conditions of purchase or sale; and (b) that thenationals, companies and commerce of such other High Contracting Party shall be affordedadequate opportunity, in accordance with customary business practice, to compete forparticipation in such purchases and sales.
2. Each High Contracting Party shall accord to the nationals, companiesand commerce of the other High Contracting Party fair and equitable treatment, as comparedwith that accorded to the nationals, companies and commerce of any third country, withrespect to: (a) the governmental purchase of supplies, (b) the awarding of governmentcontracts, and (c) the sale of any service sold by the Government or by any monopoly oragency granted exclusive or special privileges.
3. The High Contracting Parties recognize that conditions of competitiveequality should be maintained in situations in which publicly owned or controlled tradingor manufacturing enterprises of either High Contracting Party engage in competition,within the territories thereof, with privately owned and controlled enterprises ofnationals and companies of the other High Contracting Party. Accordingly, such privateenterprises shall, in such situations, be entitled to the benefit of any specialadvantages of an economic nature accorded such public enterprises, whether in the natureof subsidies, tax exemptions or others. The foregoing rule shall not apply, however, tospecial advantages given in connection with: (a) manufacturing goods for government use,or supplying goods and services to the Government for government use; or (b) supplying atprices substantially below competitive prices, the needs of particular population groupsfor essential goods and services not otherwise practically obtainable by such groups.
4. No enterprise of either High Contracting Party, includingcorporations, associations, and government agencies and instrumentalities, which ispublicly owned or controlled shall, if it engages in commercial, industrial, shipping orother business activities within the territories of the other High Contracting Party,claim or enjoy, either for itself or for its property, immunity therein from taxation,suit, execution of judgment or other liability to which privately owned and controlledenterprises are subject therein.
Article XII. Each High Contracting Party Shall Have the Right to
Send totheother High Contracting Party consular representatives, who, having presented theircredentials and having been recognized in a consular capacity, shall be provided, free ofcharge, with exequaturs or other authorization.
Article XIII.
1. Consular representatives of each High Contracting Party shall bepermitted to reside in the territory of the other High Contracting Party at the placeswhere consular officers of any third country are permitted to reside and at other placesby consent of the other High Contracting Party. Consular officers and employees shallenjoy the privileges and immunities accorded to officers and employees of their rank orstatus by general international usage and shall be permitted to exercise all functionswhich are in accordance with such usage; in any event they shall be treated, subject toreciprocity, in a manner no less favorable than similar officers and employees of anythird country.
2. The consular offices shall not be entered by the police or otherlocal authorities without the consent of the consular officer, except that in the case offire or other disaster, or if the local authorities have probable cause to believe that acrime of violence has been or is about to be committed in the consular office, consent toentry shall be presumed. In no case shall they examine or seize the papers theredeposited.
Article XIV.
1. All furniture, equipment and supplies consigned to or withdrawn fromcustoms custody for a consular or diplomatic office of either High Contracting Party forofficial use shall be exempt within the territories of the other High Contracting Partyfrom all customs duties and internal revenue or other taxes imposed upon or by reason ofimportation.
2. The baggage, effects and other articles imported exclusively for thepersonal use of consular officers and diplomatic and consular employees and members oftheir families residing with them, who are nationals of the sending state and are notengaged in any private occupation for gain in the territories of the receiving state,shall be exempt from all customs duties and internal revenue or other taxes imposed uponor by reason of importation. Such exemptions shall be granted with respect to the propertyaccompanying the person entitled thereto on first arrival and on subsequent arrivals, andto that consigned to such officers and employees during the period in which they continuein status.
3. It is understood, however, that: (a) paragraph 2 of the presentArticle shall apply as to consular officers and diplomatic and consular employees onlywhen their names have been communicated to the appropriate authorities of the receivingstate and they have been duly recognized in their official capacity; (b) in the case ofconsignments, either High Contracting Party may, as a condition to the granting ofexemption, require that a notification of any such consignment be given, in a prescribedmanner; and (c) nothing herein authorizes importations specifically prohibited by law.
Article XV.
1. The Government of either High Contracting Party may, in the territoryof the other, acquire, own, lease for any period of time, or otherwise hold and occupy,such lands, buildings, and appurtenances as may be necessary and appropriate forgovernmental, other than military, purposes. If under the local law the permission of thelocal authorities must be obtained as a prerequisite to any such acquiring or holding,such permission shall be given on request.
2. Lands and buildings situated in the territories of either HighContracting Party, of which the other High Contracting Party is the legal or equitableowner and which are used exclusively for governmental purposes by that owner, shall beexempt from taxation of every kind, national, state, provincial and municipal, other thanassessments levied for services or local public improvements bv which the premises arebenefited.
Article XVI.
1. No tax or other similar charge of any kind, whether of a national,state, provincial, or municipal nature, shall be levied or collected within theterritories of the receiving state in respect of the official emoluments, salaries, wagesor allowances received (a) by a consular officer of the sending state as compensation forhis consular services, or (b) by a consular employee thereof as compensation for hisservices at a consulate. Likewise, consular officers and employees, who are permanentemployees of the sending state and are not engaged in private occupation for gain withinthe territories of the receiving state, shall be exempt from all taxes or other similarcharges, the legal incidence of which would otherwise fall upon such officers oremployees.
2. The preceding paragraph shall not apply in respect of taxes and othersimilar charges upon: (a) the ownership or occupation of immovable property situatedwithin the territories of the receiving state; (b) income derived from sources within suchterritories (except the compensation mentioned in the preceding paragraph); or (c) thepassing of property at death.
3. The provisions of the present Article shall have like application todiplomatic officers and employees, who shall in addition be accorded all exemptionsallowed them under general international usage.
Article XVII.
The exemptions provided for in Articles XIV and XVI shall not apply tonationals of the sending state who are also nationals of the receiving state, or to anyother person who is a national of the receiving state, nor to persons having immigrantstatus who have been lawfully admitted for permanent residence in the receiving state.
Article XVIII.
Consular officers and employees are not subject to local jurisdictionfor acts done in their official character and within the scope of their authority. Noconsular officer or employee shall be required to present his official files before thecourts or to make declaration with respect to their contents.
Article XIX.
A consular officer shall have the right within his district to:
(a) Interview communicate with, assist and advise any national of the sending state; (b)inquire into any incidents which have occurred affecting the interests of any suchnational; and (c) assist any such national in proceedings before or in relations with theauthorities of the receiving state and, where necessary, arrange for legal assistance towhich he is entitled. A national of the sending state shall have the right at all times tocommunicate with a consular officer of his country and, unless subject to lawfuldetention, to visit him at the consular office.
Article XX.
1. The present Treaty shall not preclude the application of measures:
(a) regulating the importation or exportation of gold or silver;
(b) relating to fissionable materials, the radio-active by-products thereof, or the sources thereof;
(c) regulating the production of or traffic in arms ammunition and implements of war, or traffic in other materials carried on directly or indirectly for the purpose of supplying a military establishment; and
(d) necessary to fulfill the obligations of a High Contracting Party for the maintenance or restoration of international peace and security, or necessary to protect its essential security interests.
2. The present Treaty does not accord any rights to engage in politicalactivities.
3. The stipulations of the present Treaty shall not extend to advantagesaccorded by the United States of America or its Territories and possessions, irrespectiveof any future change in their political status, to one another, to the Republic of Cuba,to the Republic of the Philippines, to the Trust Territory of the Pacific Islands or tothe Panama Canal Zone.
4 The provisions of Article II, Paragraph 1, shall be construed asextending to nationals of either High Contracting Party seeking to enter the territoriesof the other High Contracting Party solely for the purpose of developing and directing theoperations of an enterprise in the territories of such other High Contracting Party inwhich their employer has invested or is actively in the process of investing a substantialamount of capital: provided that such employer is a national or company of the samenationality as the applicant and that the applicant is employed by such national orcompany in a responsible capacity.
Article XXI.
1. Each High Contracting Party shall accord sympathetic considerationto, and shall afford adequate opportunity for consultation regarding, such representationsas the other High Contracting Party may make with respect to any matter affecting theoperation of the present Treaty.
2. Any dispute between the High Contracting Parties as to theinterpretation or application of the present Treaty, not satisfactorily adjusted bydiplomacy, shall be submitted to the International Court of Justice, unless the HighContracting Parties agree to settlement by some other pacific means.
Article XXII.
1. The present Treaty shall replace the following agreements between theUnited States of America and Iran:
(a) the provisional agreement relating to commercial and other relations, concluded at Tehran May 14, 1928, and
(b) the provisional agreement relating to personal status and family law, concluded at Tehran July 11, 1928.
2. Nothing in the present Treaty shall be construed to supersede anyprovision of the trade agreement and the supplementary exchange of notes between theUnited States of America and Iran concluded at Washington April 8, 1943.
Article XXIII.
1. The present Treaty shall be ratified, and the ratifications thereofshall be exchanged at Tehran as soon as possible.
2. The present Treaty shall enter into force one month after the day ofexchange of ratifications. It shall remain in force for ten years and shall continue inforce thereafter until terminated as provided herein.
3. Either High Contracting Party may, by giving one year's writtennotice to the other High Contracting Party, terminate the present Treaty at the end of theinitial ten-year period or at any time thereafter.
IN WITNESS WHEREOF
The respectivePlenipotentiaries have signed the present Treaty and have affixed hereunto their seals.
DONE In duplicate, in the English and Persianlanguages, both equally authentic, at Tehran this fifteenth day of August one thousandnine hundred fifty-five, corresponding with the twenty third day of Mordad one thousandthree hundred and thirty-four.
SELDEN CHAPIN
MOSTAFA SAMYI
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