(d) that personnel taking part in the implementation of IPA II assistance and members of their im- mediate family are allowed to enter the Republic of Turkey, to establish themselves in the Re- public of Turkey, to work there and to leave the Republic of Turkey, as the nature of the under- lying contract so justifies; 

(e) the granting of all permits necessary for the importation of goods, in particular professional equipment, required for the execution of the underlying contract, subject to existing laws, rules and regulations of Turkey; 

(f) that imports carried out under IPA II will be exempted from all charges; 

(g) the granting of all permits necessary for the re-export of the above goods, once the underlying contract has been fully executed; 

(h) the granting of authorizations for the import or acquisition of the foreign currency necessary for the implementation of the underlying contract and the application of national exchange control regulations in a non-discriminatory manner to contractors, regardless of their nationali- ty or place of establishment; 

(i) the granting of all permits necessary to repatriate funds received in respect of the action fi- nanced under IPA II, in accordance with the foreign exchange control regulations in force in the Republic of Turkey; 

(j) that transactions necessary for carrying out contracts financed under IPA II will be exempted from procedures requiring the transfer of the payment for goods and/or services to their con- tractors abroad through banks or financial institutions operating in the Republic of Turkey. 

(2) Turkey shall ensure full co-operation of all relevant authorities. It will also ensure access to state-owned companies and other governmental institutions, which are involved or are necessary in the implementa- tion of a programme or in the execution of the contract. 

(3) After the entry into force of this Agreement Turkey shall adopt or amend the legislation and/or enabling acts necessary to enforce the requirements of the procedures laid down in this article while keeping these procedures as simple, reasonable and time efficient as possible. 

## Rules on taxes, customs duties and Other Fiscal Charges 

(1) Except where otherwise provided for in a Sectoral Agreement or a Financing Agreement, taxes, customs and import duties and levies and/or charges having equivalent effect are not eligible under IPA II. The tax exemptions under the scope of the above-mentioned rule shall also apply to co- financing provided by Turkey and natural and/or legal persons that receive IPA II assistance. 

(2) The following provisions shall apply: 

(a) All imports by Union contractors shall be allowed to enter the Republic of Turkey without being subject to customs or import duties, Value Added Tax (VAT), excise duties and other special con- sumption taxes or to any other similar tax, duties or charges having equivalent effect. Such exemp- tion shall only be applied to imports in connection with the goods supplied and/or services rendered and/or works executed by the Union contractors under a Union contract. The Republic of Turkey shall ensure that the imports concerned will be released from the point of entry for delivery to the Union contractors as required by the provisions of the contract and for immediate use as required for the normal implementation of the contract, without any delays or disputes over the settlement of the above mentioned duties, taxes or charges; 

(b) Union contractors shall be exempted from VAT for any service rendered and/or goods supplied and/or works executed under the Union contract. Goods supplied or services rendered or works ex- ecuted by a contractor to the Union contractor shall also be exempted from VAT in so far that they are connected with the objectives and activities under the Union contract; 

(c) The exemption provided for in paragraph (b) shall in principle be put into effect through ex-ante exemption. Where this is not technically and/or practically feasible, it shall be put into effect through refund/offsetting. 

Where ex-ante exemption applies, the Union contractor or the contractor supplying goods and/or rendering services and/or executing works for a Union contractor, shall issue an invoice exclusive 

