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Article Comparison - International Natural Rubber Agreement

Article 27
Financing of the Buffer Stock

1. Members commit themselves to finance the total cost of the international Buffer Stock of 550 000 tonnes established under Article 26, it being understood that shares in the Buffer Stock Account of the International Natural Rubber Agreement, 1987, of those members of the International Natural Rubber Agreement, 1987, which became members of this Agreement shall, with the consent of each member, be carried over to the Buffer Stock Account under this Agreement in accordance with the procedures determined under the provisions of paragraph 3 of Article 40 of the International Natural Rubber Agreement, 1987.

2. The financing of both the normal Buffer Stock and the contingency Buffer Stock shall be shared equally between the exporting and importing categories of members. Contributions of members to the Buffer Stock Account shall be apportioned according to their shares of the votes in the Council, except as provided for in paragraphs 3 and 4 of this Article.

3. Any importing member whose share of total net imports as set out in the table to be established by the Council under paragraph 4 of Article 14 represents 0,1 per cent or less of total net imports shall contribute to the Buffer Stock Account as follows:

(a) if its share of total net imports is less than or equal to 0,1 per cent but more than 0,05 per cent, such member shall contribute an amount assessed on the basis of its actual share of total net imports;

(b) if its share of total net imports is 0,05 per cent or less, such member shall contribute an amount assessed on the basis of a share of 0,05 per cent of total net imports.

4. During any period in which this Agreement is in force provisionally either under paragraph 2 or subparagraph (b) of paragraph 4 of Article 61, the financial commitment of each exporting or importing member to the Buffer Stock Account shall not in total exceed that member's contribution, calculated on the basis of the number of votes corresponding to the percentage shares set out in the tables to be established by the Council under paragraph 4 of Article 14, of the totals of 275 000 tonnes falling to the exporting and importing categories of members respectively. The financial obligations of members when this Agreement is in force provisionally shall be shared equally by exporting and importing categories of members. At any time when the aggregate commitment of one category exceeds that of the other, the larger of the two aggregates shall be brought equal to the smaller of the two aggregates, each member's vote in that aggregate being reduced in proportion to the shares of votes derived from the tables to be established by the Council under paragraph 4 of Article 14. Notwithstanding the provisions of this paragraph and of paragraph 1 of Article 28, a member's contribution may not exceed 125 per cent of the amount of its total contribution calculated on the basis of its share in world trade as indicated in Annex A or Annex B to this Agreement.

5. The total costs of the normal and contingency Buffer Stock of 550 000 tonnes shall be financed by contributions by members in cash to the Buffer Stock Account. Such contributions may, when relevant, be paid by the appropriate agencies of members concerned.

6. The total costs of the 550 000-tonne international Buffer Stock shall be paid from the Buffer Stock Account. Such costs shall include all expenses involved in acquiring and operating the 550 000-tonne international Buffer Stock. In the event that the estimated cost, as given in Annex C to this Agreement, cannot fully cover the total cost of acquisition and operations of the Buffer Stock, the Council shall meet and make the necessary arrangements to call up the required contributions to cover such costs according to percentage shares of votes.