Agreement in the form of an Exchange of Letters

between the European Community and Norway concerning the extension of the common communications network/common systems interface (CCN/CSI) within the framework of the Convention on a common transit procedure

A. Letter from the European Community

Sir,

Regarding the extension of the use of the common communications network/common systems interface (CCN/CSI) for the new computerised transit system to Norway, I would like to propose the following commitment on behalf of the European Community:

I. The Parties will comply with the technical specifications as set out in the documents listed in the Annex to this letter, which have been made available to Norway, together with any future amendments which may be made in connection with the project.

II. The Commission of the European Communities (hereinafter referred to as the "Commission") will manage and develop the system in accordance with the guidelines drawn up by the Customs Policy Committee - Working Party on Data Processing - CCN/CSI Technical Subgroup (CPC-CWP-CCN/CSI) for the partner countries also.

III. The Parties will comply with the rules on general security policy as laid down and decided within the framework of the project.

IV. Not later than 1 September 2000, Norway will pay a flat-rate sum of EUR 120000 for the installation of the CCN/CSI.

V. Before 31 January 2001, the Commission will clear the accounts relating to the installation costs on the basis of the sum already paid and the actual costs chargeable to Norway on the basis of the specific agreement which the Commission has concluded for that purpose with the subcontractor and will provide Norway with a statement of account. The final payment (payment of balance) will take place 30 days after the presentation of the statement of account.

VI. Not later than 1 September 2000, Norway will pay a flat-rate sum of EUR 48000 for the costs of operating the network for the year 2000.

VII. As from 2001, on 15 May each year, Norway will pay a flat-rate sum for the annual cost of use of the network. Before 31 July each year, the Commission will inform Norway of the flat-rate sum for the following year. The flat-rate sum for the year 2001 will amount to EUR 96000.

VIII. Before 31 January each year, the Commission will clear the accounts relating to the annual costs of operating the network on the basis of the sum already paid and the actual costs chargeable to Norway and will provide Norway with a statement of account. The Commission will calculate the actual cost on the basis of its relationship with the subcontractor chosen in accordance with the current procedures for the award of contracts. The final payment (payment of balance) will take place 30 days after the presentation of the statement of account. The total amount to be paid by Norway will not in any case exceed by 20 % the annual flat-rate sum already paid.

IX. In the same way as the Member States of the European Union, Norway will be kept informed of the forecast trends in these costs as well as of the main aspects of the development of the CCN/CSI which are likely to have an impact on those costs.

X. Not later than 1 September 2000, Norway will pay an annual deposit for contingencies and future development of the amount of EUR 40000. The Commission will provide Norway with a statement of account specifying the breakdown of costs charged to that deposit. Not later than 15 May each year, Norway will replenish the deposit by paying a sum corresponding to the amount actually used for contingencies and future development in the previous year.

XI. All payments must be made to the Commission. Unless specified otherwise, they will be based on a statement of account issued by the Commission containing a breakdown of costs identifying the different services and the supply of hardware and software, payable within 60 days.

XII. This Agreement will remain in force as long as the two parties are Contracting Parties to the Convention of 20 May 1987 on a common transit procedure. However, both parties shall reserve the right to amend the Agreement by mutual agreement.

XIII. If Norway pays the amounts provided for in points IV, V, VI, VII, VIII and X later than the dates specified in those points, the European Union may charge interest on the arrears (at the rate applied by the European Central Bank to its operations in euro, published in the "C" series of the Official Journal of the European Communities, on the day on which the deadline for repayment expires, plus one and a half points). The same rate will apply to payments to be made by the Community.

I would be grateful if you could confirm the agreement of Norway to the above.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

ANNEX TO THE EXCHANGE OF LETTERS

CCN/CSI EXTERNAL DOCUMENTATION

>TABLE>

B. Letter from Norway

Sir,

I acknowledge receipt of your letter concerning the extension of the use of the common communications network/common systems interface (CCN/CSI) for the new computerised transit system to Norway, which reads as follows:

"Regarding the extension of the use of the common communications network/common systems interface (CCN/CSI) for the new computerised transit system to Norway, I would like to propose the following commitment on behalf of the European Community:

I. The Parties will comply with the technical specifications as set out in the documents listed in the Annex to this letter, which have been made available to Norway, together with any future amendments which may be made in connection with the project.

II. The Commission of the European Communities (hereinafter referred to as the 'Commission') will manage and develop the system in accordance with the guidelines drawn up by the Customs Policy Committee - Working Party on Data Processing - CCN/CSI Technical Subgroup (CPC-CWP-CCN/CSI) for the partner countries also.

III. The Parties will comply with the rules on general security policy as laid down and decided within the framework of the project.

IV. Not later than 1 September 2000, Norway will pay a flat-rate sum of EUR 120000 for the installation of the CCN/CSI.

V. Before 31 January 2001, the Commission will clear the accounts relating to the installation costs on the basis of the sum already paid and the actual costs chargeable to Norway on the basis of the specific agreement which the Commission has concluded for that purpose with the subcontractor and will provide Norway with a statement of account. The final payment (payment of balance) will take place 30 days after the presentation of the statement of account.

VI. Not later than 1 September 2000, Norway will pay a flat-rate sum of EUR 48000 for the costs of operating the network for the year 2000.

VII. As from 2001, on 15 May each year, Norway will pay a flat-rate sum for the annual cost of use of the network. Before 31 July each year, the Commission will inform Norway of the flat-rate sum for the following year. The flat-rate sum for the year 2001 will amount to EUR 96000.

VIII. Before 31 January each year, the Commission will clear the accounts relating to the annual costs of operating the network on the basis of the sum already paid and the actual costs chargeable to Norway and will provide Norway with a statement of account. The Commission will calculate the actual cost on the basis of its relationship with the subcontractor chosen in accordance with the current procedures for the award of contracts. The final payment (payment of balance) will take place 30 days after the presentation of the statement of account. The total amount to be paid by Norway will not in any case exceed by 20 % the annual flat-rate sum already paid.

IX. In the same way as the Member States of the European Union, Norway will be kept informed of the forecast trends in these costs as well as of the main aspects of the development of the CCN/CSI which are likely to have an impact on those costs.

X. Not later than 1 September 2000, Norway will pay an annual deposit for contingencies and future development of the amount of EUR 40000. The Commission will provide Norway with a statement of account specifying the breakdown of costs charged to that deposit. Not later than 15 May each year, Norway will replenish the deposit by paying a sum corresponding to the amount actually used for contingencies and future development in the previous year.

XI. All payments must be made to the Commission. Unless specified otherwise, they will be based on a statement of account issued by the Commission containing a breakdown of costs identifying the different services and the supply of hardware and software, payable within 60 days.

XII. This Agreement will remain in force as long as the two parties are Contracting Parties to the Convention of 20 May 1987 on a common transit procedure. However, both parties shall reserve the right to amend the Agreement by mutual agreement.

XIII. If Norway pays the amounts provided for in points IV, V, VI, VII, VIII and X later than the dates specified in those points, the European Union may charge interest on the arrears (at the rate applied by the European Central Bank to its operations in euro, published in the 'C' series of the Official Journal of the European Communities, on the day on which the deadline for repayment expires, plus one and a half points). The same rate will apply to payments to be made by the Community.

I would be grateful if you could confirm the agreement of Norway to the above."

I am pleased to confirm the agreement of Norway to the content of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Norway