XIII. Life assurance Capital transfers arising under life assurance contracts:(9)
A. Transfers of capital and annuities certain due to resident beneficiaries from non-resident insurers.
B. Transfers of capital and annuities certain due to non-resident beneficiaries from resident insurers.
XIV. Personal capital movements
A. Loans.
B. Gifts and endowments.
C. Dowries.
D. Inheritances and legacies.
E. Settlement of debts in their country of origin by immigrants.
F. Emigrants' assets.
G. Gaming.
H. Savings of non-resident workers.
XV. Physical movement of capital assets
A. Securities and other documents of title to capital assets: 1. Import. 2. Export.
B. Means of payment: 1. Import. 2. Export.
XVI. Disposal of non-resident-owned blocked funds
A. Transfer of blocked funds.
B. Use of blocked funds in the country concerned:
1. For operations of a capital nature.
2. For current operations.
C. Cession of blocked funds between non-residents.
(1) All items on this General List of International Capital Movements and Certain Related Operations appear also on Liberalisation List A or B in Annex A to the Code.
(2) Other than operations falling under Sections I or II of the General List.
(3) Other than operations falling under Sections I or II of the General List.
(4) Other than operations falling under Section IV of the General List.
(5) Other than operations falling under Sections IV, V or VII of the General List.
(6) Other than credits and loans falling under Sections I, II, VIII or XIV of the General List.
(7) Other than operations falling under Section V of the General List.
(8) Other than operations falling under any other Section of the General List.
(9) Transfers of premiums and pensions and annuities, other than annuities certain, in connection with life assurance contracts are governed by the Code of Liberalisation of Current Invisible Operations (Item D/3). Transfers of whatever kind or size under other than life assurance contracts are always considered to be of a current nature and are consequently governed by the Current Invisibles Code.
Annex E: Decision of the Council Regarding Measures and Practices Concerning Reciprocity and/or involving Discrimination among Investors Originating in Various Member Countries in the Area of Inward Direct Investment and Establishment
THE COUNCIL,
Having regard to Article 5 (a) of the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960;
Having regard to the Code of Liberalisation of Capital Movements (hereinafter called the âCodeâ);
Having regard to the Decision of the Council, of 4th April 1984, amending Annex A to the Code [C(83)106/FINAL];
Having regard to the report by the Investment Committee of 12th June 1986 on Member countriesâ positions under the amended obligations concerning the inward direct investment item of the Code [C(86)89 and Corrigenda 1 and 2] and, in particular, paragraphs 1014 thereof;
On the proposal of the Investment Committee;
I. NOTES that some Member countries allow inward direct investment or establishment under conditions of reciprocity (i.e. allowing residents of another Member country to invest or establish in the Member country concerned under terms similar to those applied by the other Member country to investors resident in the Member country concerned) and/or involving discrimination among investors originating in various Member countries, other than the exceptions to the principle of non-discrimination- referred to in Article 10 of the Code;
II. RECOGNISES that reciprocity has operated with other factors, in certain cases at least until now, to broaden the effective sphere of liberalisation.
IIl. REAFFIRMS, nevertheless, that a more extensive use of reciprocal and/or discriminatory approaches in matters pertaining to inward direct investment or the right of establishment (other than those relating to the exceptions to the principle of non-discrimination referred to in Article 10 of the Code) could reduce the effective sphere of liberalisation among Member countries.
IV. REAFFIRMS also the importance of the principles underlying Article 8 of the Code concerning the right of each Member country to benefit from measures of liberalisation taken by other Member countries, and of the principles underlying Article 9 of the Code concerning the obligation of each Member country to avoid discrimination between other Members in matters relating to the Code.
V. RECOGNISES, nevertheless, the right of each Member country under Article 2 of the Code to refrain from immediately bringing their measures and practices into line with the new obligations concerning the right of establishment introduced by the Council Decision of 4th April 1984, referred to above.
VI. CONSIDERS that, while the status of measures and practices concerning reciprocity and/or involving discrimination among investors originating in various Member countries (other than the exceptions to the principle of non-discrimination referred to in Article 10 of the Code) should be regarded as different from that of restrictions that can be the subject of reservations in accordance with Article 2 of the Code, the procedures applying to such measures and practices should be those applying to measures that can be the subject of reservations.
VII. DETERMINES that the adoption of this Decision concerning the application of item I/A of the Code on inward direct investment and establishment shall not in any way create a precedent for the application of other items of the Code.
VIII. DECIDES:
1. All measures and practices concerning reciprocity and/or involving an element of discrimination concerning inward direct investment or establishment (other than the exceptions to the principle of non-discrimination referred to in Article 10 of the Code) and existing as of the date this Decision is adopted shall have been notified to the Organisation. They are recorded in paragraph 5 of this Decision.
2. Measures and practices recorded in this Decision shall be progressively abolished without, in so doing, extending the scope of restrictions to inward direct investment or establishment. To this end, these measures and practices shall be subject to periodic examination by the Investment Committee along with the reservations, if any, maintained by the Member countries concerned.
3. The specific aspects of these measures and practices, including those referred to in paragraphs II and III above, shall be taken into account, particularly when these measures and practices are being examined by the Investment Committee.
4. All the other understandings relating to the Code concerning inward direct investment or establishment shall be considered as applying to these measures and practices.
5. The scope of these measures and practices as notified to the Organisation as of the date of this Decision, is as follows:
AUSTRIA
i) The extraction, the preparation and the storing of mass minerals, the running of oil refineries, gasworks, filling stations, district heating, the trading of fuels and pipelines are subject to a reciprocity requirement;
ii) Investment in the transport sector (air transport services, road freight, taxis, buses) is subject to a reciprocity requirement;
iii) The establishment of tour operators and travel agencies by non-resident entities is subject to a reciprocity requirement.
BELGIUM
Establishment of travel agencies by enterprises originating in non-EU member countries is subject to a reciprocity requirement.
CANADA
Establishment of subsidiaries of foreign banks is generally subject to a reciprocity requirement.
General remark: The Canadian authorities undertake to carry out the provisions of this Decision to the fullest extent compatible with the constitutional system of Canada in that the latter provides that individual provinces may have jurisdiction to act with respect to certain matters under the purview of the present Decision. In particular, the authorities undertake to make every effort to ensure that measures for the liberalisation of capital movements pursuant to the present Decision are applied in their provinces; they will notify the Organisation of any relevant measure taken by a province and, if necessary, they will bring to the attention of the provincial authorities any concerns expressed in this respect by a country subscribing to the present Decision.
FRANCE
i) Establishment of non-resident investors originating in countries that are not members of the EU in the banking and financial services sector may be subject to reciprocity considerations;
ii) Establishment of insurance companies originating in countries that are not members of the EU may be subject to reciprocity considerations;
iii) Investment by non-EU residents in political and general information publications appearing at least once per month (other than those intended for foreign communities in France), audio-visual communication services, insurance brokerage; exploration, extracting and exploitation of hydrocarbons, waterfalls and the purchase of agricultural land adjacent to the Swiss border (under the terms of a bilateral agreement dated 31 August 1946), which is generally allowed only for enterprises originating in a country with which France has undertaken international commitments containing a clause of national assimilation or reciprocity.
GERMANY
Establishment of airline enterprises that have their headquarters abroad may be subject
to a reciprocity requirement.
GREECE
Establishment of travel agencies by enterprises originating in non-EU member
countries may be subject to a reciprocity requirement.
ICELAND
Establishment of foreign joint stock companies is subject to a reciprocity requirement.
TRELAND
Foreign acquisition of shipping vessels registered in Ireland is subject to a reciprocity
requirement.
ITALY
i) Foreign investment in the exploration and exploitation of liquid and gaseous hydrocarbons is subject to a reciprocity requirement;
ii) The granting of licences to tour operators or travel agents, who are nationals of non-EU member countries, or to enterprises in such countries, is subject to a reciprocity requirement.
SWITZERLAND
i) Foreign investment in the banking and financial services sector is subject to a reciprocity requirement;
ii) Foreign investment in broadcasting is subject to a reciprocity requirement.
UNITED STATES
i) The acquisition by non-residents of a right-of-way for oil or gas pipelines across onshore federal lands, or a lease to develop mineral resources on on-shore federal lands is subject to a reciprocity requirement;
ii) Foreign investment in air freight forwarding and air charter activities is subject to a reciprocity requirement for US-originating traffic;
iii) The granting of cable landing rights to non-resident firms is subject to a reciprocity requirement.
APPENDIX 1. List of Council Acts Included in the Present Edition of the Code
1. Code of Liberalisation of Capital Movements [OECD/C(61)96], adopted by the Council on 12th December, 1961.
2. C(62)96/FINAL amending Annexes A and B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd July, 1962.
3. C(62)97/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd July, 1962.
4. C(63)15/FINAL amending Annex B to the Code of Liberalisation of Current Invisible Operations and Annexes A and B to the Code of Liberalisation of Capital Movements, adopted by the Council on 26th March, 1963.
5. The Memorandum of Understanding between the Organisation for Economic Co-operation and Development and the Government of Japan, of 26th July, 1963 [C(63)112].
6. C(64)85/FINAL amending the Code of Liberalisation of Capital Movements, adopted by the Council on 28th July, 1964.
7. C(65)26/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 13th April, 1965.
8. C(65)54/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 27th July, 1965.
9. C(65)96/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 9th November, 1965.
10. C(66)10/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 15th February 1966.
11. C(67)49/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 25th July, 1967.
12. C(67)69/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 25th July, 1967.
13. C(67)71/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 15th December, 1967.
14. C(67)136 amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 15th December, 1967.
15. C(68)113/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 26th November, 1968.
16. C(68)178/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 28th January, 1969.
17. C(68)111/FINAL amending Annex B to the Code of Liberalisation of Current Invisible Operations and Annex B to the Code of Liberalisation of Capital Movements adopted by the Council on 4th February, 1969.
18. C(69)41/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 18th March, 1969.
19. C(69)90/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 8th July, 1969.
20. C(69)134/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 17th November, 1969.
21. C(69)157/FINAL amending Annex B to the Code of Liberalisation of Current Invisible Operations and Annex B to the Code of Liberalisation of Capital Movements adopted by the Council on 3rd February, 1970.
22. C(69)176/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 24th February, 1970.
23. C(70)2/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 10th March, 1970.
24. C(70)21/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 17th March, 1970.
25. C(70)100/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 23rd June, 1970.
26. C(70)126/FINAL amending Annexes A and B to the Code of Liberalisation of Capital Movements, adopted by the Council on 17th September, 1970.
27. C(70)161/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd November, 1970.
28. C(70)212/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 23rd February, 1971.
29. C(71)3/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 23rd February, 1971.
30. C(71)11/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 23rd February, 1971.
31. C(71)24/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 30th March, 1971.
32. C(71)72/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 2nd June, 1971.
33. C(71)90/FINAL amending Annexes B to the Code of Liberalisation of Current Invisible Operations and to the Code of Liberalisation of Capital Movements, adopted by the Council on 24th May, 1971.
34. C(71)127/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 7th October, 1971.
35. C(71)128/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 7th October, 1971.
36. C(71)177/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd December, 1971.
37. C(71)178/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd December, 1971.
38. C(71)203/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 26th January, 1972.
39. C(71)241/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 22nd February, 1972.
40. C(72)111/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 9th June, 1972.
41. C(72)173/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 31st October, 1972.
42. C(72)208/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 6th February, 1973.
43. C(73)11/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 27th February, 1973.
44. C(72)103/FINAL amending the Code of Liberalisation of Capital Movements, adopted by the Council on 27th February, 1973.
45. C(72)118/FINAL amending the Code of Liberalisation of Capital Movements, adopted by the Council on 27th February, 1973.
46. C(73)12/FINAL amending the Code of Liberalisation of Current Invisible Operations and the Code of Liberalisation of Capital Movements, adopted by the Council on 27th February, 1973.
47. C(73)13/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 21st February, 1973.
48. C(73)49/FINAL amending Annex B to the Code of Liberalisation of Capital
49.Movements, adopted by the Council on 15th May, 1973.
50. C(73)60/FINAL amending Annex B to the Code of Liberalisation of Current Invisible Operations and Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 15th May, 1973.
51. C(73)91/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 3rd July, 1973. C(73)119/FINAL amending Annex B to the Code of Liberalisation Movements, adopted by the Council on 18th September, 1973.
52. C(73)164/FINAL amending Annex B to the Code of Liberalisation Movements, adopted by the Council on 16th October, 1973.
53. C(74)20/FINAL amending Annex B to the Code of Movements, adopted by the Council on 12th March, 1974.
54. C(74)10/FINAL amending Annex B to the Code of Movements, adopted by the Council on 18th April, 1974.
55. C(74)56/FINAL amending Annex B to the Code of Movements, adopted by the Council on 18th April, 1974.
56. C(74)57/FINAL amending Annex B to the Code of Movements, adopted by the Council on 21st May, 1974.
57. C(74)39/FINAL amending Annex B to the Code of Movements, adopted by the Council on 18th June, 1974.
58. C(74)97/FINAL amending Annex B to the Code of Movements, adopted by the Council on 18th June, 1974.
59. C(74)94/FINAL amending Annex B to the Code of Movements, adopted by the Council on 27th June, 1974.
60. C(74)95/FINAL amending Annex B to the Code of Movements, adopted by the Council on 27th June, 1974.
61. C(74)149/FINAL amending Annex B to the Code of Liberalisation Movements, adopted by the Council on 22nd November, 1974.
62. C(74)225/FINAL amending Annex B to the Code of Movements, adopted by the Council on 9th January, 1975.
63. C(75)10/FINAL amending Annex B to the Code of Movements, adopted by the Council on 29th April, 1975.
64. C(75)13/FINAL amending Annex B to the Code of Movements, adopted by the Council on 29th April, 1975.
65. C(75)89 amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 12th May, 1975.
66. C(75)112/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 19th August, 1975.
67. C(75)172/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 20th November, 1975.
68. C(75)143/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 28th November, 1975.
69. C(76)199/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 30th December, 1976.
70. C(76)160/FINAL amending Annex B to the Code of Liberalisation of Capital Movements, adopted by the Council on 15th February, 1977.