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1. Any co-production of cinematographic works shall be subject to the approval of the competent authorities of the Parties in which the co-producers are established, after consultation between the competent authorities and in accordance with the procedures laid down in Appendix I. This appendix shall form an integral part of this Convention.
2. Applications for co-production status shall be submitted for approval to the competent authorities according to the application procedure laid down in Appendix I. This approval shall be final except in the case of failure to comply with the initial undertakings concerning artistic, financial and technical matters.
3. Projects of a blatantly pornographic nature or those that advocate violence or openly offend human dignity cannot be accorded coproduction status.
4. The benefits provided by co-production status shall be granted to co-producers who are deemed to possess adequate technical and financiel organisation, and sufficient professional qualifications.
5. Each Contracting State shall designate the competent authorities mentioned in paragraph 2 above by means of a declaration made at the time of signature or when depositing its instrument of ratification, acceptance, approval or accession. This declaration may be modified.