(1). The term "tariff" means:
(i) the fare charged by an airline for the carriage of passengers and their baggage on scheduled air services and the charges and conditions for services ancillary to such carriage;
(ii) the freight rate charged by an airline for the carriage of cargo (excluding mail) on scheduled air services;
(iii) the conditions governing the availability or applicability of any such fare or freight rate or price including any benefits attaching to it; and
(iv) the rate of commission paid by an airline to an agent in respect of tickets sold or air waybills completed by that agent for carriage on scheduled air services.
(2). The tariffs to be charged by the designated airlines of the Contracting Parties for carriage between Hong Kong and the Kingdom of the Netherlands shall be those approved by both aeronautical authorities and shall be established at reasonable levels, due regard being had to all relevant factors, including the cost of operating the agreed services, the interest of users, reasonable profit and the tariffs of other airlines operating over all or part of the same route.
(3). The tariffs referred to in paragraph (2) of this Article may be agreed by the designated airlines seeking approval of the tariff, after consultation with other designated airlines operating over the whole or part of the same route. However, a designated airline shall not be precluded from proposing nor the aeronautical authorities from approving, any tariff, if that airline shall have failed to obtain the agreement of the other designated airlines to such a tariff, or because no other designated airline is operating on the same route. Reference in this and in the preceding paragraph to "the same route" means the route operated, not the specified route.
(4). Any proposed tariff for carriage between Hong Kong and the Kingdom of the Netherlands shall be filed with the aeronautical authorities of both Contracting Parties in such form as the aeronautical authorities may separately require for disclosure of the particulars referred to in paragraph (1) of this Article. It shall be filed not less than 60 days (or such shorter period as the aeronautical authorities may agree) before the proposed effective date. The proposed tariff shall be treated as having been filed with a Contracting Party on the date on which it is received by the aeronautical authorities of that Contracting Party.
(5). Any tariff proposed pursuant to paragraph (4) of this Article may be approved by the aeronautical authorities of either Contracting Party at any time and, provided it has been filed in accordance with paragraph (4) of this Article, shall be deemed to have been approved by the aeronautical authorities unless, within 30 days (or such shorter period as the aeronautical authorities of both Contracting Parties may agree) after the date of filing, either of the aeronautical authorities have served on the other written notice of disapproval of the proposed tariff.
(6). If a notice of disapproval is given in accordance with the provisions of paragraph (5) of this Article, the aeronautical authorities of the two Contracting Parties may determine the tariff by mutual agreement. Either Contracting Party may within 30 days of the service of the notice of disaproval, request consultations which shall be held within 30 days of the request.
(7). If a tariff has been disapproved by one of the aeronautical authorities in accordance with paragraph (5) of this Article, and the aeronautical authorities have been unable to determine the tariff by agreement in accordance with paragraph (6) of this Article, the dispute may be settled in accordance with the provisions of Article 14 of this Agreement.
(8). Subject to paragraph (9) of this Article, a tariff established in accordance with the provisions of this Article shall remain in force until a replacement tariff has been established.
(9). Except with the agreement of the aeronautical authorities of both Contracting Parties, and for such period as they may agree, a tariff shall not be prolonged by virtue of paragraph (8) of this Article:
(a) where a tariff has a terminal date, for more than 12 months after that date;
(b) where a tariff has no terminal date, for more than 12 months after the date on which a replacement tariff is intended to become effective, as filed with both aeronautical authorities by the designated airline or airlines of one or both Contracting Parties.
(10). (a) The tariffs to be charged by a designated airline of Hong Kong for carriage between the Netherlands and another State shall be subject to approval by the aeronautical authorities of the Netherlands and, where appropriate, of the other State. The tariffs to be charged by a designated airline of the Netherlands for carriage between Hong Kong and a State other than the Netherlands shall be subject to approval by the aeronautical authorities of Hong Kong and, where appropriate, of the other State.
(b) The aeronautical authorities of each Contracting Party shall approve any tariff filed by the designated airline of the other Contracting Party for carriage between a point in the area of the first Contracting Party and a point other than in the Kingdom of the Netherlands or Hong Kong provided that: (i) the airline in question is authorized by both aeronautical authorities to undertake such carriage; and
(ii) that tariff is identical with the duly approved tariff for that carriage charged by the airlines of the first Contracting Party or the airlines of the country in which the other point is situated or, if there are no such airlines, by any other airline authorised to undertake such carriage by the aeronautical authorities of the first Contracting Party.
(i) the airline in question is authorized by both aeronautical authorities to undertake such carriage; and
(ii) that tariff is identical with the duly approved tariff for that carriage charged by the airlines of the first Contracting Party or the airlines of the country in which the other point is situated or, if there are no such airlines, by any other airline authorised to undertake such carriage by the aeronautical authorities of the first Contracting Party.
(c) No tariff shall be approved for such carriage unless it has been filed by the designated airline seeking that approval with the aeronautical authorities of the Contracting Party, in such form as those aeronautical authorities may require to disclose the particulars referred to in paragraph (1) of this Article not less than 60 days prior to the proposed effective date (or such shorter period as those aeronautical authorities may in a particular case agree to meet the objective of subparagraph (b) of this paragraph).
(d) The Contracting Party which has approved a tariff established in accordance with subparagraphs (a), (b) and (c) of this paragraph may withdraw its approval with effect from the same day as that on which the tariff approved for its own or any other airline ceases to be effective.