Zaudējis spēku - Par Kontrabandas un viltojumu apkarošanas līgumu un vispārējo atbrīvojumu, kas noslēgts 2004.gada 9.jūlijā starp Philip Morris Intern

Zaudējis spēku - Par Kontrabandas un viltojumu apkarošanas līgumu un vispārējo atbrīvojumu, kas noslēgts 2004.gada 9.jūlijā starp Philip Morris International Inc., Philip Morris Products Inc., Philip Morris Duty Free Inc. un Philip Morris World Trade Sarl., Eiropas Kopienu, kuru pārstāv Eiropas Komisija, un tām dalībvalstīm, kas norādītas pievienotajās parakstu lapās Uzmanību! Jūs lietojat neatbilstošu interneta pārlūkprogrammu. Lai varētu lietot visas Likumi.lv piedāvātās iespējas, piedāvājam BEZ MAKSAS ielādēt jaunāku pārlūkprogrammas versiju. Iesakām izmēģināt arī vietnes MOBILO VERSIJU - m.likumi.lv (piemērota arī mazāk jaudīgiem datoriem). nerādīt turpmāk šo paziņojumu Apstiprināt Paldies par viedokli!   Rādīt vēlāk LATVIJAS REPUBLIKAS TIESĪBU AKTI veidi tēmas visvairāk skatītie jaunākie LV  EN uz sākumu meklēt Izvērstā meklēšana Noklusējuma vērtības Izvērstā meklēšana Kā meklēt? Meklēt nosaukumā meklēt locījumos meklēt frāzi Meklēt tekstā meklēt locījumos meklēt frāzi Izdevējs Veids nemeklēt grozījumos Pieņemts Stājas spēkā Dokumenta Nr. līdz līdz Publicēts LV Zaudējis spēku Redakcija uz līdz līdz Statuss: spēkā esošs vēl nav spēkā zaudējis spēku meklēt notīrīt Tiesību akts ir zaudējis spēku. Saeima ir pieņēmusi un Valsts prezidents izsludina šādu likumu: Par Kontrabandas un viltojumu apkarošanas līgumu un vispārējo atbrīvojumu, kas noslēgts 2004.gada 9.jūlijā starp Philip Morris International Inc., Philip Morris Products Inc., Philip Morris Duty Free Inc. un Philip Morris World Trade Sarl., Eiropas Kopienu, kuru pārstāv Eiropas Komisija, un tām dalībvalstīm, kas norādītas pievienotajās parakstu lapās 1.pants. Kontrabandas un viltojumu apkarošanas līgums un vispārējais atbrīvojums, kas noslēgts 2004.gada 9.jūlijā starp Philip Morris International Inc., Philip Morris Products Inc., Philip Morris Duty Free Inc. un Philip Morris World Trade Sarl., Eiropas Kopienu, kuru pārstāv Eiropas Komisija, un tām dalībvalstīm, kas norādītas pievienotajās parakstu lapās (turpmāk — Līgums), ar šo likumu tiek pieņemts un apstiprināts. 2 2.pants. Līgums stājas spēkā tā 13.panta piecpadsmitajā daļā noteiktajā laikā un kārtībā, un Ārlietu ministrija par to paziņo laikrakstā "Latvijas Vēstnesis". 3 3.pants. Likums stājas spēkā nākamajā dienā pēc tā izsludināšanas. Līdz ar likumu izsludināms Līgums angļu valodā un tā tulkojums latviešu valodā. 4 Likums Saeimā pieņemts 2006.gada 19.oktobrī. Valsts prezidente V.Vīķe-Freiberga Rīgā 2006.gada 8.novembrī ANTI-CONTRABAND AND ANTI-COUNTERFEIT AGREEMENT AND GENERAL RELEASE dated as of July 9, 2004 among PHILIP MORRIS INTERNATIONAL INC., PHILIP MORRIS PRODUCTS INC., PHILIP MORRIS DUTY FREE INC., and PHILIP MORRIS WORLD TRADE SARL THE EUROPEAN COMMUNITY REPRESENTED BY THE EUROPEAN COMMISSION AND EACH MEMBER STATE LISTED ON THE SIGNATURE PAGES HERETO RTICLE 1DEFINITIONSSection 1.01 . Definitions.ARTICLE 2PHILIP MORRIS INTERNATIONAL S SALES AND DISTRIBUTION PRACTICESSection 2.01 . EC Compliance Procedures.Section 2.02 . Certification of Compliance with EC Compliance ProtocolsARTICLE 3ANTI-CONTRABAND AND ANTI-COUNTERFEIT INITIATIVESSection 3.01 . Anti-Contraband and Anti-Counterfeit Initiatives.Section 3.02 . Support for Anti-Contraband and Anti-Counterfeit Initiatives.ARTICLE 4ANTI-CONTRABAND AND ANTI-COUNTERFEIT COOPERATIONSection 4.01 . Contraband and Counterfeit Seizures.ARTICLE 5TRACKING AND TRACINGSection 5.01. Tracking and Tracing Protocols.Section 5.02 . Certification of Compliance with Tracking and Tracing Protocols.ARTICLE 6REVIEW OF AGREEMENTSection 6.01 . Annual Meetings.ARTICLE 7FULFILLMENT OF OBLIGATIONS AND OBJECTIVESSection 7.01 . Promotion of Public Policy.Section 7.02 . Respect for Obligations.Section 7.03 . Agreement Consistent with EC and Applicable National Laws.Section 7.04 . The Parties Intentions.ARTICLE 8REPRESENTATIONS AND WARRANTIESSection 8.01 . Mutual Representations.ARTICLE 9RELEASE AND DISMISSAL OF CLAIMSSection 9.01 . Release.Section 9.02 . Dismissal Of Claims.ARTICLE 10SETOFFSection 10.01 . Right of Setoff .Section 10.02 . No Other Effect.ARTICLE 11TERMINATIONSection 11.01 . Termination.Section 11.02 . Subsequent Agreement.ARTICLE 12DISPUTE RESOLUTIONSection 12.01 . The Role of the European Court of First Instance and theEuropean Court of Justice.Section 12.02 . Dispute Resolution for Claims Brought Under the Terms of the Agreement.ARTICLE 13MISCELLANEOUSSection 13.01 . Notices.Section 13.02 . Waivers.Section 13.03 . Expenses.Section 13.04 . Nature of Payments.Section 13.05 . Successors and Assigns.Section 13.06 . Legality and Severability.Section 13.07 . Counterparts; Effectiveness; Third Party Beneficiaries.Section 13.08 . Entire Agreement.Section 13.09 . Captions.Section 13.10 . Designated EC Representative.Section 13.11 . Amendments.Section 13.12 . Authorship.Section 13.13 . Use of Information Provided by Philip Morris International..Section 13.14 . Equal Treatment Provision.Section 13.15 . Additional Participating Member States.Section 13.16 . Use of the Agreement.Attachments, Exhibits & SchedulesAppendix A. Fiscal Compliance PolicyAppendix B. EC Compliance ProtocolsAppendix C. Philip Morris International s Monetary ContributionsAppendix D. Tracking and Tracing ProtocolsAppendix E. Schedule of Applicable Taxes and DutiesAppendix F. Factors for Establishing Counterfeit Philip MorrisCigarettesAppendix G. List of Designated StatesAppendix H. Form of DismissalsAppendix I. List of Philip Morris TrademarksAppendix J. List of ArbitratorsAppendix K. Amendments to the Baseline Amount and Article 4This Anti-Contraband and Anti-Counterfeit Agreement and General Release dated as of July 9, 2004, (this Agreement ) is made by and among the European Community (the EC ) represented by the European Commission, the Member States of the EC that have executed a copy of this Agreement and become parties hereto (the Participating Member States , and together with the EC, the Relevant Administrations ) and Philip Morris International Inc., Philip Morris Products Inc., Philip Morris Duty Free Inc. and Philip Morris World Trade SARL (collectively with the Relevant Administrations, the Parties ).WITNESSETH:(1) WHEREAS, the smuggling of Cigarettes, both authentic and counterfeit, results in great economic loss and causes other various harms to the Relevant Administrations;(2) WHEREAS, the Relevant Administrations are fully committed to combat the illegal introduction of both authentic and counterfeit Cigarettes into the Territory of the Member States;(3) WHEREAS, Philip Morris International is committed to take commercially reasonable steps as a manufacturer of Cigarettes to promote the Parties joint objective that Philip Morris Cigarettes be sold, distributed, stored, and shipped in accordance with all applicable fiscal and legal requirements, and, in particular, sold at retail in accordance with all applicable tax and duty laws in the intended retail market;(4) WHEREAS, while the smuggling of certain authentic brands of Cigarettes other than Philip Morris brands continues in significant quantities, for the last few years the incidence of bulk quantities of Contraband Philip Morris Cigarettes in the Member States has been greatly reduced, and during the same time period, there has been an increase in Cigarette counterfeiting activity such that currently, there is a growing threat to the Relevant Administrations finances from the illegal importation and introduction of Counterfeit Philip Morris Cigarettes;(5) WHEREAS, the Member States and Philip Morris International have a mutual interest in (1) eliminating the illegal importation, distribution and sale of Cigarettes and any related illegal activity, (2) ensuring the collection of applicable taxes and duties on Cigarettes sold or distributed in the Territory of the Member States, including, without limitation, those that will be remitted wholly or in part to the EC by the Member States, (3) protecting lawful competition in the sale of Cigarettes, (4) protecting the Trademark rights of legitimate Cigarette manufacturers, and (5) preventing citizens of the Member States from being misled about the source and quality of the Cigarettes they purchase; and whereas the EC has an interest in the foregoing insofar as they affect the interests of the EC and the achievement of the EC s objectives;(6) WHEREAS, by virtue of Article 3 and Article 23 of the EC Treaty, the EC is competent for matters relating to customs duties on the import and export of goods in Member States, and by virtue of Part 5, Title II of the EC Treaty, the European Commission is obligated to ensure the orderly collection of the EC s own resources;(7) WHEREAS, combating fraud and other illegal activities affecting the financial interests of the EC, including those resulting from the illegal Cigarette trade within the Territory of the Member States, is an obligation of the EC and Member States under Article 280 of the EC Treaty;(8) WHEREAS, pursuant to Article 10 of the EC Treaty, the Member States shall take all appropriate measures, whether general or particular, to ensure fulfillment of the obligations arising out of the EC Treaty or resulting from action taken by the institutions of the EC and shall facilitate achievement of the objectives of the EC s tasks;(9) WHEREAS, the EC and Member States, each within their respective competences and subject to budgetary constraints, intend to continue and improve their efforts to combat the smuggling of authentic and Counterfeit Cigarettes and the illegal importation and introduction of said Cigarettes into the Territory of the Member States;(10) WHEREAS, it is in the best interest of Philip Morris International for there to be an end to the illegal importation of Contraband and Counterfeit Cigarettes into the Territory of the Member States and the counterfeiting of Philip Morris Cigarettes;(11) WHEREAS, Philip Morris International agrees to provide all reasonable assistance, both direct and indirect, as set forth herein, to the EC and the Member States in the fight against contraband and Counterfeit Cigarettes, including in part, monetary payments;(12) WHEREAS, the EC and certain Member States commenced a civil action in the United States District Court for the Eastern District of New York, entitled European Community, et al. v. RJR Nabisco, et al., under Civil Action No. 01-CV-5188 (NGG), asserting various claims for damages, costs and equitable relief, based in part on alleged sales of Philip Morris Cigarettes in the Territory of the Member States in violation of applicable laws (such action, the Civil Action );(13) WHEREAS, the Civil Action has been dismissed by the United States District Court (as to some of the claims with prejudice and as to others without prejudice) and is currently the subject of an appeal (such appeal, together with the Civil Action, the Litigation);(14) WHEREAS, pursuant to the mutual rights and obligations in this Agreement, the Parties agree that it is in the public interest, will further advance their objectives, and will facilitate the achievement of their goals to swiftly resolve, finally and fully, in an amicable and cooperative manner without any admission of liability, all matters between the Parties that relate to the alleged conduct, acts or omissions that were asserted or could have been asserted in the Litigation and any alleged Losses (as hereinafter defined) caused by such conduct, acts, or omissions;(15) WHEREAS, the Parties acknowledge and agree to take all appropriate measures (1) to ensure fulfillment of their obligations under this Agreement, (2) to facilitate the achievement of the objectives of the Agreement, and (3) to abstain from any measures that could jeopardize the attainment of the objectives of this Agreement;NOW, THEREFORE, in consideration of the mutual obligations described herein, the sufficiency of which is hereby acknowledged, the Parties, acting by and through their authorized agents, hereby memorialize and agree as follows:ARTICLE 1DEFINITIONSSection 1.01. Definitions.The following terms, as used herein, have the following meanings:"Affiliate" means, with respect to any Person, any other legally related Person directly controlling, controlled by, or under common control with, such other Person. For purposes of this definition, "control" , when used with respect to any Person, means the power to choose the Board of Directors and/or establish the policies of such Person, whether through the ownership of voting securities or contract, and the terms "controlling" and "controlled" have meanings correlative to the foregoing."Agreement" shall have the meaning ascribed to it in the preamble of this Agreement."Anti-Contraband and Anti-Counterfeit Initiatives" shall have the meaning ascribed to it in Section 3.01 of this Agreement."Applicant" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Approved Contractor" means a Contractor approved by Philip Morris International in accordance with the EC Compliance Protocols, attached as Appendix B to this Agreement."Arbitrator(s)" shall have the meaning ascribed to it in Section 12.02(a) of this Agreement."Audit Order" shall have the meaning ascribed to it in Section 2.02(d) of this Agreement."Baseline Amount" means 90 million Cigarettes, which is half of the total combined Contraband Philip Morris Cigarettes seized by the Member States who were Member States on January 1, 2004, during the calendar years ended December 31, 2001, and December 31, 2002, but does not include seizures of less than five Master Cases of Philip Morris Cigarettes. The Baseline Amount may be amended pursuant to Section 4.01(s) and (t) of this Agreement."Blocked Contractor" means a former Approved Contractor who is no longer authorized by Philip Morris International to conduct business relating to the sale, distribution, storage, or shipment of Philip Morris Cigarettes in or through the Territory of the Member States or any Designated State."Carton" or "Bundle" or "Outer" means a package containing 10 Packs of Cigarettes (approximately 200 Cigarettes total) and includes all input materials used in the assembly of such container such as cardboard, plastic wrap and tear tapes."Certification of Compliance" shall have the meaning ascribed to it in Section 2.02(a) of this Agreement."Cigarette" means any product that contains tobacco and is intended to be burned or heated under ordinary conditions of use and includes, without limitation, any roll-your-own tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes. For the purposes of this Agreement, 0.0325 ounces of roll-your-own tobacco shall be considered the equivalent of one individual Cigarette."Civil Action" shall have the meaning ascribed to it in the recitals of this Agreement."Compliance Order" shall have the meaning ascribed to it in Section 2.02(d) of this Agreement."Contraband Cigarettes" means Cigarettes that have been imported into, distributed in, or sold in, the Territory of a Member State, or were en route to the Territory of a Member State for sale in that Member State, in violation of the applicable tax, duty or other fiscal laws of that Member State or the EC, but, for purposes of this Agreement, shall exclude Counterfeit Cigarettes."Contraband Philip Morris Cigarettes" means Philip Morris Cigarettes that have been imported into, distributed in, or sold in, the Territory of a Member State, or were en route to the Territory of a Member State for sale in that Member State, in violation of the applicable tax, duty or other fiscal laws of that Member State or the EC, but, for purposes of this Agreement, shall exclude Counterfeit Philip Morris Cigarettes."Contractor" means a First Purchaser or any warehouser, shipper or freight forwarder engaged by Philip Morris International in connection with the storage or shipment of Philip Morris Cigarettes in or through the Territory of the Member States or a Designated State."Counterfeit Cigarettes" means Cigarettes bearing a Trademark of a Cigarette manufacturer that are manufactured by a third party without the consent of that Cigarette manufacturer, but shall in no event include (i) Cigarettes manufactured by the Trademark holder or any affiliate thereof, regardless of the actual or intended market of distribution, (ii) Cigarettes bearing a Trademark of a Cigarette manufacturer using tobacco either produced by or sold by that Cigarette manufacturer, or (iii) Cigarettes bearing a Trademark of a Cigarette manufacturer that are packaged in genuine packaging of that Cigarette Manufacturer, including genuine cartons and packs of that Cigarette manufacturer."Counterfeit Philip Morris Cigarettes" means Cigarettes bearing a Philip Morris Trademark that are manufactured by a third party without the consent of Philip Morris, but shall in no event include (i) Cigarettes manufactured by Philip Morris or any affiliate thereof, regardless of the actual or intended market of distribution, (ii) Cigarettes bearing a Trademark of Philip Morris using tobacco either produced by or sold by Philip Morris, or (iii) Cigarettes bearing a Trademark of Philip Morris that are packaged in genuine Philip Morris packaging, including genuine Philip Morris cartons and packs. "Designated State" means any state listed in the Designated State List attached as Appendix G, which may be amended in accordance with the procedure therein."Due Diligence" means a reasonable state-of-the-art investigation conducted by Philip Morris International before the commencement of a business relationship with a Person relating to the sale, distribution, storage, or shipment of Philip Morris Cigarettes in or through the Territory of the Member States or any Designated State, as described in the EC Compliance Protocols, attached as Appendix B to this Agreement."Due Diligence Information" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."EC" shall have the meaning ascribed to it in the preamble of this Agreement."EC Compliance Protocols" shall have the meaning ascribed to it in Section 2.01 of this Agreement."EC Treaty" shall have the meaning ascribed to it in Section 7.03 of this Agreement."Execution Date" means the later of (i) the date on which the signatures to this Agreement of all the Relevant Administrations who are Plaintiffs in the Litigation have been delivered to Philip Morris International; or (ii) the date on which the signature to this Agreement of Philip Morris International has been delivered to the EC."Expiration Date" means the 12th anniversary of the Execution Date."First Purchaser" means any Person, other than an Affiliate of Philip Morris International, to whom Philip Morris International directly sells a quantity of Philip Morris Cigarettes in excess of 2,500 Master Cases annually for sale, distribution or consumption within or into the Territory of one or more of the Member States or any Designated State, and such Person s Affiliates."Fiscal Compliance Coordinator" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Fiscal Compliance Policy" shall have the meaning ascribed to it in Section 2.01 of this Agreement."Follow-up Due Diligence" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Future Cooperation Agreement" shall have the meaning ascribed to it in Section 13.14 of this Agreement."Identification Markings" means codes and markings on Philip Morris Cigarette packaging placed on that packaging by Philip Morris International or its authorized agents, which correspond to information regarding those Cigarettes as set forth in the Tracking and Tracing Protocols, attached as Appendix D to this Agreement."Initial Participating Member States" means the Participating Member States that have executed a copy of the Agreement on or prior to the Execution Date."Intended Market of Retail Sale" means the market which Philip Morris International intends as the market of either domestic retail or duty-free retail sale for Philip Morris Cigarettes when Philip Morris International sells such Cigarettes to a First Purchaser."International Compliance Policy" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Litigation" shall have the meaning ascribed to it in recitals (12) and (13) of this Agreement."Losses" means the monetary and non-monetary losses and other injuries alleged to have been sustained as a result of the sale, distribution, storage, or shipment of Contraband Philip Morris Cigarettes before the Execution Date, or for Subsequent Participating Member States, their respective Signature Dates, including any and all monetary and non-monetary losses and injuries claimed or described by the EC and the Member States in paragraphs 39 through 40 of the Complaint dated August 3, 2001, filed in the Case entitled European Community, et al. v. RJR Nabisco, et al., case number 01-CV-5188 (NGG) ."Market of Interest" shall have the meaning ascribed to it in Protocol 6 of Appendix D to this Agreement."Master Case" means a case containing 10,000 Cigarettes."Member States" means States that are members of the European Union."Money Laundering" means conduct in violation of 18 U.S.C. §§ 1956 or 1957 or the comparable provisions under the laws of the EC or the Member States."New Member State" means any Member State which, having submitted to the Council of the European Union an application for membership of the European Union and said application having been granted and the State having acceded to the Treaty on European Union, has joined the European Union after January 1, 2004."Non-Participating Member States" means the Member States that are not a Party to this Agreement."Notice of Interest" shall have the meaning ascribed to it in Protocol 6 Appendix D to of this Agreement."OLAF" means the Anti-Fraud Office of the European Commission or any successor thereof."Pack" means a small package containing approximately 20 cigarettes and includes all input materials used in the assembly of such container such as cardboard, aluminum foil or metallized papers, plastic wrappings, tax stamps, and tear tapes."Participating Member States" shall have the meaning ascribed to it in the Preamble of this Agreement."Person" means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof."Philip Morris Cigarettes" means Cigarettes manufactured by Philip Morris or any of its Affiliates that manufacture Cigarettes, or Cigarettes manufactured by licensees and bearing Philip Morris Trademarks as set forth in Appendix I."Philip Morris" means Altria Group, Inc., f/k/a Philip Morris Companies Inc., and all of its current and former Affiliates, direct and indirect subsidiaries along with their direct and indirect subsidiaries, and/or any successors thereto, as well as all current and former employees, directors, officers, and servants, including outside attorneys."Philip Morris International" means Philip Morris International Inc. and its controlled subsidiaries, including without limitation Philip Morris Products Inc., Philip Morris Duty Free Inc. and Philip Morris World Trade SARL."Released Claims" shall have the meaning ascribed to it in Section 9.01(b) of this Agreement."Released Persons" shall have the meaning ascribed to it in Section 9.01(a) of this Agreement."Releasing Persons" shall have the meaning ascribed to it in Section 9.01(a) of this Agreement."Relevant Administrations" shall have the meaning ascribed to it in the Preamble of this Agreement."Relevant Law" shall have the meaning ascribed to it in Section 13.06(a) of this Agreement."Reporting System" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Representatives of the Relevant Administrations" means OLAF or other authorized representatives duly designated by the Relevant Administrations."Request for Termination" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Retail Demand" means the estimated demand for Philip Morris Cigarettes in a particular market to be sold at retail in that market in accordance with all applicable tax, duty or other fiscal laws."Sales Plan" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."seizure" means a seizure from a single individual or entity (or in certain specific instances, multiple individuals or entities if shown to be acting in concert with one another), in a single location (or in certain specific instances, multiple locations in close proximity if shown to be part of the same scheme), at a single point in time, (or in certain specific instances, multiple points in time in close proximity if shown to be part of the same scheme)."Signature Date" means, for each Initial Participating Member State the Execution Date and for each Subsequent Participating Member State, the date on which that Participating Member State executed a copy of the Agreement."Sold by a Retailer" means (i) the sale of Cigarettes by an authorized retailer to a customer in which all applicable Member State excise and VAT taxes on the retail price in the location of sale have been paid or accounted for in the sale price, or (ii) sales to a customer that has ordered 50 packs of Cigarettes or less through the use of the Internet or other means whereby the seller is not in the physical presence of the customer when the sale is made."Statement of Non-Compliance" shall have the meaning ascribed to it in Section 2.02(b) of this Agreement."Subsequent Participating Member States" means the Participating Member States that have executed a copy of the Agreement after the Execution Date."Subsequent Purchaser" means any Person and such Person s Affiliates, other than an Affiliate of Philip Morris, who acquires more than 1,000 Master Cases of Philip Morris Cigarettes annually from sources other than Philip Morris International."Sufficient Evidence" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Supplemental Payments" means the payments by Philip Morris International that are to be made, without regard to fault, in accordance with Section 4.01(f) and 4.01(g) of this Agreement, to compensate the Relevant Administrations for their lost taxes and duties and other costs, as well as to provide a source of additional funding for anti-contraband enforcement, in the event of a seizure of Contraband Philip Morris Cigarettes."Territory of the Member States" means the customs territory of the EC, as defined in Article 3 of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein as well as the Aland Islands."Territory of a Non-Participating Member State" means the territory of a Non-Participating Member State, as defined in Article 3 of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein."Territory of a Participating Member State" means the territory of a Participating Member State, as defined in Article 3 of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code, including, for the avoidance of doubt, the free zones, free ports and duty-free areas physically situated therein, as well as the Aland Islands."Tracking and Tracing Protocols" shall have the meaning ascribed to it in Section 5.01 of this Agreement, and are attached as Appendix D to this Agreement."Termination Order" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."Trademark" means a brand name (alone or in conjunction with any other word), logo, symbol, or any other indicia of product identification."Vice President for Compliance Systems" shall have the meaning ascribed to it in the EC Compliance Protocols, attached as Appendix B to this Agreement."World Wide Duty Free" means the worldwide market in which Philip Morris Cigarettes are sold by Philip Morris International for resale to retail consumers entitled to purchase free of domestic taxation.ARTICLE 2PHILIP MORRIS INTERNATIONAL S SALES AND DISTRIBUTION PRACTICESSection 2.01. EC Compliance Procedures.Philip Morris International has already undertaken as a matter of company policy to comply with the principles set forth in the Philip Morris Companies Inc. Policy Statement on Compliance with Fiscal, Trade and Anti-Money Laundering Laws dated September 13, 1999 (the "Fiscal Compliance Policy"), a copy of which is attached as Appendix A to this Agreement. In addition to the provisions in Appendix A, Philip Morris International agrees to adopt, implement, and be bound by protocols, approved with the EC, regarding the sale, distribution, storage, and shipment of Philip Morris Cigarettes in and through the Territory of the Member States or any Designated State (the "EC Compliance Protocols"), which are attached as Appendix B to this Agreement.Section 2.02. Certification of Compliance with EC Compliance Protocols.(a) Each year, on the anniversary of the Execution Date, Philip Morris International shall provide the Relevant Administrations with a report, signed by the Vice President for Compliance Systems, describing Philip Morris International s fulfillment of the requirements of (i) the EC Compliance Protocols, which are set forth in Appendix B of this Agreement, and (ii) the Tracking and Tracing Protocols, which are set forth in Article 5 and Appendix D of this Agreement (the "Certification of Compliance").(b) If, after receipt of any Certification of Compliance, OLAF reasonably concludes that Philip Morris International is failing to perform its obligations under the EC Compliance Protocols or the Tracking and Tracing Protocols, it may, but by no later than 60 days after OLAF has received the Certification of Compliance, provide Philip Morris International with a statement clearly describing the areas where OLAF reasonably believes that Philip Morris International is failing to perform its obligations under the EC Compliance Protocols or the Tracking and Tracing Protocols, OLAF s reasons for that belief, and what measures OLAF believes Philip Morris International must take in order to perform its obligations under the EC Compliance Protocols (the "Statement of Non-Compliance").(c) OLAF may also provide Philip Morris International with a Statement of Non-Compliance at any other time it reasonably believes that Philip Morris International is significantly failing to adhere to the EC Compliance Protocols or the Tracking and Tracing Protocols and such failure could likely result in a significant increase in the volume of Contraband Philip Morris Cigarettes.(d) Within 30 days of receiving a Statement of Non-Compliance, under subsections (b) or (c) above, Philip Morris International must provide OLAF with a written response. Thereafter, authorized representatives of Philip Morris International and the European Commission shall meet and confer and attempt to resolve in good faith any dispute relating to the Statement of Non-Compliance. If the dispute has not been resolved within 60 days of Philip Morris International receiving a Statement of Non-Compliance, the European Commission may bring the dispute before the Arbitrator in accordance with Section 12.02 of this Agreement and may seek an order from the Arbitrator requiring Philip Morris International to bring itself into compliance with the EC Compliance Protocols or the Tracking and Tracing Protocols, as the case may be, (a "Compliance Order") and/or an order requiring Philip Morris International to permit OLAF to conduct an audit of Philip Morris International in order to determine what Compliance Orders may be required (an "Audit Order").(e) An Audit Order issued under this Section shall specifically require Philip Morris International to do the following and only the following:(i) if OLAF seeks entry into premises, allow OLAF entry to any of its business premises or business premises of its Affiliates, for the sole purpose of observing business operations, provided that OLAF provides Philip Morris International with reasonable notice of where and when it seeks to do so; and(ii) if OLAF seeks to review documents, Philip Morris International shall provide OLAF with specified business records created after the Execution Date, that OLAF reasonably believes will assist in its anti-contraband and anti-counterfeit efforts.(f) In any proceeding brought under Section 2.02(d), the Arbitrator may issue a Compliance Order or an Audit Order to Philip Morris International only when it has been proven by the greater weight of the evidence that (i) Philip Morris International has materially failed to adhere to the EC Compliance Protocols and/or the Tracking and Tracing Protocols, (ii) such failure was identified by OLAF in its Statement of Non-Compliance, and (iii) such failure has not been adequately remedied by the time of the arbitration hearing.ARTICLE 3ANTI-CONTRABAND AND ANTI-COUNTERFEIT INITIATIVESSection 3.01. Anti-Contraband and Anti-Counterfeit Initiatives.(a) It is the policy of the EC and the Member States to vigorously combat the introduction, sale and distribution of Contraband Cigarettes and Counterfeit Cigarettes within or through the Territory of the Member States. Subject to budgetary constraints, the EC intends to intensify efforts to curb the introduction, sale and distribution of Contraband Cigarettes and Counterfeit Cigarettes; apply appropriate equipment for monitoring and tracking the introduction, sale, distribution, storage, and shipment of Contraband Cigarettes and Counterfeit Cigarettes; and continue to train law-enforcement personnel in how best to detect and seize Contraband Cigarettes and Counterfeit Cigarettes.Section 3.02. Support for Anti-Contraband and Anti-Counterfeit Initiatives.(a) Recognizing that it is in the best interest of Philip Morris International for there to be an end to the illegal importation and introduction of Contraband Cigarettes and Counterfeit Cigarettes into the Territory of the Member States and an end to the counterfeiting of Philip Morris Cigarettes, Philip Morris International agrees to provide reasonable assistance, both direct and indirect, to the EC and the Member States in the fight against Contraband Cigarettes and Counterfeit Cigarettes, as set forth in Section 4.01, Appendix B, Appendix C, and Appendix D. The monetary payments under this Agreement may serve as a source of additional funding for anti-contraband and anticounterfeit initiatives.(b) Subject to Article 10 of this Agreement, for any dispute relating to a payment that has been or will be provided by Philip Morris International in accordance with this Section 3.02 or Appendix C (Philip Morris International's Monetary Contributions), the Parties involved in the dispute shall meet and confer in an attempt to resolve the dispute in good faith. If the dispute has not been resolved within 60 days of a Party receiving formal notice of such a dispute, any Party involved in the dispute may refer the dispute to the Arbitrator(s) in accordance with Section 12.02 of this Agreement.ARTICLE 4ANTI-CONTRABAND AND ANTI-COUNTERFEIT COOPERATIONSection 4.01. Contraband and Counterfeit Seizures.Subject to the limitations in subsections (k)-(u) below, for seizures of Cigarettes bearing Philip Morris Trademarks by the Member States after the Execution Date, the Parties agree to the following procedures:(a) Within 30 days after notification to OLAF of a seizure by a Member State of five Master Cases or more of Cigarettes bearing Philip Morris Trademarks, OLAF may provide Philip Morris International with a notice of seizure, which shall include:(i) the date, time and location of the seizure;(ii) the brand of seized Cigarettes indicated on the packaging and, if available, any indication of the Intended Market of Retail Sale;(iii) the quantity of seized Cigarettes;(iv) any Identification Markings that appear on the Master Cases or cartons of the seized Cigarettes; and(v) as to seizures made by the Member States outside the Territory of the Member States, the basis of the seizing Member State's belief that the Cigarettes seized were destined for introduction into the Territory of the Member States.(b) Philip Morris International shall be permitted to inspect the seized Cigarettes in the condition they were in at the time of seizure within 30 days after transmittal of the notice of seizure described in subsection (a) above, and to select random samples of the seized Cigarettes for examination. The seizing authority may also select samples which Philip Morris International must examine.(c) Within 30 days after the inspection of the seized Cigarettes described in subsection (b) above, Philip Morris International shall provide a written response to OLAF stating whether the Cigarettes are Philip Morris Cigarettes or Counterfeit Philip Morris Cigarettes.(d) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, if the Cigarettes are determined by Philip Morris International to be Counterfeit Philip Morris Cigarettes, its response shall include documentation and examination results demonstrating that conclusion. The determination as to whether Cigarettes are Counterfeit Philip Morris Cigarettes or Philip Morris Cigarettes shall involve a consideration of the factors set forth in Appendix F to this Agreement, which shall be amended by agreement between the Parties as new technologies and techniques are developed.(e) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, if the seized Cigarettes are Contraband Philip Morris Cigarettes manufactured after January 1, 2004, Philip Morris International s response shall include as much information as is available to it concerning:(i) the place of manufacture of the seized Cigarettes;(ii) the date of manufacture of the seized Cigarettes;(iii) the country of intended destination for the seized Cigarettes;(iv) any intervening warehousing and shipping;(v) the identity of the First Purchaser of the seized Cigarettes;(vi) the identity of any known Subsequent Purchaser of the seized Cigarettes;(vii) invoices to the First Purchaser that relate to the seized Cigarettes; and(viii) payment records from the First Purchaser for any Cigarettes seized.(f) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, for seizures of Contraband Philip Morris Cigarettes by an Initial Participating Member State after the Execution Date or by a Subsequent Participating Member State after its Signature Date, the response of Philip Morris International shall also include a Supplemental Payment calculated as follows:(i) Philip Morris International shall make a Supplemental Payment to compensate the EC and the Participating Member State by which the Cigarettes were seized for their lost taxes and duties and other costs, in an amount equal to 100% of the taxes and duties that would have been assessed had the seized Contraband Philip Morris Cigarettes been legally distributed for retail sale in the Participating Member State by which the Cigarettes were seized as set forth in Appendix E, which shall be updated by the Relevant Administrations upon notice to Philip Morris International as applicable taxes and duties change, less any amount of taxes and duties already paid to the EC or any Member State(s) in relation to those Contraband Philip Morris Cigarettes; and(ii) If the Contraband Philip Morris Cigarettes seized, when added to the number of Contraband Philip Morris Cigarettes already seized in the same calendar year in the Member States that were Member States on January 1, 2004, results in a total number that exceeds the Baseline Amount, Philip Morris International s Supplemental Payment shall include an additional amount equal to four times the amount under subsection (f)(i), which shall compensate the EC and the Participating Member State by which the Cigarettes were seized for any costs not compensated by the amount under subsection (f)(i) and which may provide the EC and the Participating Member State by which the Cigarettes were seized with a source of additional funding for anticontraband and anti-counterfeit efforts.(g) Subject to the limitations in subsections (k)-(u) below, where notice of seizure described in subsection (a) above has been delivered reasonably in accordance with the requirements of subsection (a) above, for seizures of Contraband Philip Morris Cigarettes after the Execution Date by a Non- Participating Member State, the response of Philip Morris International shall also include a Supplemental Payment calculated as follows:(i) Philip Morris International shall make a Supplemental Payment to compensate the EC for any lost taxes and duties and other costs, in an amount equal to 100% of the taxes and duties that would have been remitted to the EC in respect of such seized Contraband Philip Morris Cigarettes had such Cigarettes been legally distributed for retail sale in the Non-Participating Member State by which the Cigarettes were seized as set forth in Appendix E, less the EC s share of any amount of taxes and duties already paid to the EC or any Member State(s) in relation to those Contraband Philip Morris Cigarettes, and(ii) If the Contraband Philip Morris Cigarettes seized, when added to the number of Contraband Philip Morris Cigarettes already seized in the same calendar year in the Member States that were Member States on January 1, 2004, results in a total number that exceeds the Baseline Amount, Philip Morris International s Supplemental Payment shall include an additional amount equal to four times the amount under subsection (g)(i), which shall compensate the EC for any costs not compensated by the amount under subsection (g)(i) and which may provide the EC with a source of additional funding for anti-contraband and anti-counterfeit efforts.(h) For the Supplemental Payments to be made pursuant to subsections (f) and (g) above, it shall not be incumbent on the Relevant Administrations to establish fault on the part of Philip Morris International and such payments, if due, shall be made even though Philip Morris International shall have complied in all respects with its obligations under this Agreement relating to anti-contraband efforts and initiatives.(i) The Parties recognize and understand that the mere fact of seizure of Contraband Philip Morris Cigarettes at any point in the distribution chain does not, in and of itself, automatically implicate Philip Morris International, or the First Purchaser to whom the seized Philip Morris Cigarettes were originally sold, as a violator of any applicable tax or duty laws.(j) OLAF or any Participating Member State may sample and test seized Cigarettes at any time. If OLAF disputes the determination made by Philip Morris International as to whether the seized goods are Counterfeit Philip Morris Cigarettes or Contraband Philip Morris Cigarettes, OLAF shall reply in writing to Philip Morris International detailing the basis for the dispute within 60 days after receiving the response referred to in Section 4.01(c), and thereafter Philip Morris International and OLAF shall meet and confer and attempt to resolve the dispute in good faith. If the dispute cannot be resolved within 30 days of Philip Morris International receiving OLAF s reply, the samples in dispute shall be submitted to an independent laboratory or facility for examination to determine whether the Cigarettes are Counterfeit Philip Morris Cigarettes or Contraband Philip Morris Cigarettes in accordance with the factors set forth in Appendix F to this Agreement. The determination of the selected independent laboratory or facility as to whether the Cigarettes are Contraband Philip Morris Cigarettes or Counterfeit Philip Morris Cigarettes shall be final and binding on the Parties. The costs of the laboratory or facility s services shall be paid by the non-prevailing Party. The independent laboratory or facility shall be designated by mutual agreement of the Parties on the Execution Date. If a dispute arises with respect to the selection of the independent laboratory or facility, such dispute shall be settled by the Arbitrator in accordance with Section 12.02 of the Agreement.(k) Notwithstanding any other provision in this Section 4.01 to the contrary, Philip Morris International shall have no obligation to make Supplemental Payments pursuant to subsections (f) and (g) above, and Contraband Philip Morris Cigarettes shall not be included in the calculations to determine the amount of any Supplemental Payment described in subsections (f) and (g) above, where:(i) the notice of seizure described in subsection (a) above has not been delivered reasonably in accordance with the requirements of subsection (a) above;(ii) Philip Morris International has not been permitted to inspect the seized Cigarettes in substantial accordance with the requirements of subsection (b) above, or the seizing authority has determined that the seized Cigarettes are not Contraband Philip Morris Cigarettes as evidenced by the release of the seized Cigarettes;(iii) the total volume of Contraband Philip Morris Cigarettes seized in the particular seizure was less than five Master Cases of cigarettes after exclusion of any amount excluded by the seizing authority or a court pursuant to Article 8 of Directive 92/12 by virtue of having been acquired in another Member State for own use and transported by the purchaser;(iv) the Contraband Philip Morris Cigarettes were manufactured prior to January 1, 2004;(v) the Contraband Philip Morris Cigarettes were stolen by a third party and Philip Morris International can reasonably demonstrate that such theft has occurred;(vi) the Contraband Philip Morris Cigarettes were seized by a Member State outside of the Territory of the Member States and the greater weight of the evidence demonstrates that the Cigarettes seized were not destined for introduction into the Territory of the Member States; or(vii) the Contraband Philip Morris Cigarettes were seized by a Member State and Philip Morris International can reasonably demonstrate that such Contraband Philip Morris Cigarettes were sold, distributed, stored, and shipped in accordance with all applicable fiscal and legal requirements of the EC and a Member State, or were Sold by a Retailer.(l) For any dispute relating to (i) application of the provisions in subsection (k) above, (ii) the amount, if any, of a payment to be made under subsections (f) and (g) above, or (iii) the determination of the appropriate Member State by which the Cigarettes were seized, the Parties involved in the dispute shall meet and confer in an attempt to resolve the dispute in good faith. If the dispute has not been resolved within 60 days of a Party receiving formal notice of such a dispute, any Party involved in the dispute may refer the dispute to the Arbitrator for settlement in accordance with the provisions of Section 12.02 of this Agreement.(m) If a Member State or the EC accepts a Supplemental Payment in regard to a particular seizure of Philip Morris Cigarettes and later collects duties or taxes or the monetary equivalent from Philip Morris in regard to that particular seizure, the Member State or the EC shall promptly refund to Philip Morris International the amount of the Supplemental Payment that had been paid equal to the duty and taxes or the monetary equivalent collected or paid as well as any corresponding portion of the amounts, if any, paid under subsections (f)(ii) or (g)(ii).(n) If a Member State or the EC accepts a Supplemental Payment in regard to a particular seizure of Philip Morris Cigarettes and it is later found that duties and taxes or the monetary equivalent had already been paid with regard to that particular seizure, the Member State or the EC shall promptly refund to Philip Morris International the amount of the Supplemental Payment that had been paid equal to the duty and taxes or the monetary equivalent collected or paid as well as any corresponding portion of the amounts paid, if any, under subsections (f)(ii) or (g)(ii).(o) Notwithstanding any other provision in this Agreement, other than subsections (p), (t), and (u) below, for seizures of Contraband Philip Morris Cigarettes in a New Member State,(i) in the first year following that New Member State's accession to the European Union, no Supplemental Payment shall be payable by Philip Morris International and any such seizures shall not be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above.(ii) Notwithstanding subsections (iii) and (iv) below, after adjustment of the Baseline Amount in accordance with subsection (s) below, Supplemental Payments shall be payable by Philip Morris International under subsections (f)(i), and/or (f)(ii) in the case of a Subsequent Participating Member State as applicable, or, (g)(i), and/or (g)(ii) in the case of a Non-Participating Member State as applicable, and such seizures shall be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above, beginning in the year following the year in which the incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State is determined to be less than 2% of the total market for Cigarettes in that New Member State.(iii) in each of the second, third, fourth and fifth years following that New Member State s accession to the European Union, in the event that a New Member State does not satisfy subsection (ii) above, a Supplemental Payment shall be payable by Philip Morris International only under subsections (f)(i) in the case of a Subsequent Participating Member State as applicable and/or (g)(i) in the case of a Non-Participating Member State as applicable, and only if in that year:(A) the incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State is determined to be:(1) 12% or less (for the second year following accession);(2) 10% or less (for the third year following accession);(3) 7% or less (for the fourth year following accession);(4) 5% or less (for the fifth year following accession);of the total market for Cigarettes in that New Member State; or(B) the incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State is determined to be more than the thresholds set forth in subsection (A) above, but the incidence of Contraband Philip Morris Cigarettes divided by the total incidence of Contraband Cigarettes and Counterfeit Cigarettes in that New Member State, expressed as a percentage, is greater than 70% of (x) the total tax-paid retail sales of Philip Morris Cigarettes divided by (y) the total tax-paid retail Cigarette sales in that New Member State, expressed as a percentage.(iv) from the sixth year following a New Member State's accession to the European Union, Supplemental Payments shall be payable by Philip Morris International and any such seizures shall be counted against the Baseline Amount for the purpose of any other calculation under subsections (f) or (g) above, only if the incidence of Contraband Cigarettes and Counterfeit Cigarettes as a percentage of the total market for Cigarettes in that New Member State has been determined to be less than or equal to the incidence of Contraband and Counterfeit Cigarettes in the Initial Participating Member States as a percentage of the total market for Cigarettes in the Initial Participating Member States, in the fifth year following the New Member State s accession as determined pursuant to subsection (q).(p) In addition to the limitations on Supplemental Payments set forth in subsection (o) above, for the first five years following a New Member State's accession to European Union, if Contraband Philip Morris Cigarettes are seized in a New Member State and the amount of those Contraband Philip Morris Cigarettes when added to the number of Contraband Philip Morris Cigarettes already seized in the same calendar year in all the New Member States that joined the European Union in the same year as the seizing New Member State, results in a total number that exceeds the Baseline Amount as of January 1, 2004, Philip Morris International shall have no obligation to make Supplemental Payments for that seizure. In relation to any New Member State that joins the European Union after January 1, 2007, the Parties shall agree on a method for determining how this subsection (p) shall operate.(q) For the purposes of subsections (o) and (p) above, the incidence of Contraband Cigarettes and Counterfeit Cigarettes in any New Member State and in the Initial Participating Member States in accordance with subsection (o)(iv) above shall be determined by a methodology agreed to by the Parties.(r) If a Member State or any subdivision thereof sells or resells, or authorizes the sale or resale of, seized Contraband Philip Morris Cigarettes no Supplemental Payment is due in relation to such Cigarettes and, if paid, any such Supplemental Payment shall be refunded.(s) If a New Member State, upon or after accession to the European Union, joins the Agreement and becomes eligible for Supplemental Payments under subsection (f)(ii), Philip Morris International and the European Commission shall, with regard to the factors set forth in Appendix K, meet and confer as to when and how the Baseline Amount shall be amended or recalculated. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall determine the appropriate amendment to, or recalculation of, the Baseline Amount, with due regard to the factors set forth in Appendix K. No payments shall be made under subsection (f)(ii), however, until an amended Baseline Amount shall have been established.(t) If at any time, a Party asserts that there is a serious persisting problem concerning Contraband Cigarettes or Counterfeit Cigarettes entering into a New Member State, which could bring about serious imbalances in the application of the Agreement, Philip Morris International and the EC shall meet and discuss as soon as reasonably possible any appropriate measures to ensure the continued functioning of the Agreement, including, if necessary, amendment or suspension of Philip Morris International s obligations under Article 4 as to that New Member State. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall determine the appropriate amendment or relief, with due regard to the factors set forth in Appendix K.(u) If at any time, a Party asserts that there is a serious persisting problem concerning seizures of Contraband Philip Morris Cigarettes in a Participating Member State who was a Member State on January 1, 2004, which could bring about serious imbalances in the application of the Agreement, Philip Morris International and the European Community shall meet and discuss as soon as reasonably possible any appropriate measures to insure the continuing functioning of the Agreement, including, if necessary, amendment of Philip Morris International s obligations under Article 4 as to that Member State. If no agreement is reached, the Arbitrator, pursuant to Section 12.02 of this Agreement, shall determine the appropriate amendment or relief, with due regard to the factors set forth in Appendix K.For purposes of this Section, it shall be presumed that a serious persisting problem exists if Philip Morris International can reasonably demonstrate that:(i) For a substantial period of time, seizures in a Member State significantly exceed the seizures by that Member State in 2003 so as to materially deviate from the expectations of the Parties, and(ii) More than fifty percent of the seized Cigarettes for which Supplemental Payments are made are Cigarettes which were sold at retail and the applicable taxes on the retail price of the Cigarettes were paid in either a New Member State of the European Community or a non-Member State outside the European Community.If the increase in the incidence of Contraband Philip Morris Cigarettes in the aforesaid Member State is substantially attributable to a failure on the part of Philip Morris International to adhere to the terms of this Agreement, and/or its failure to sell Cigarettes into a market consistent with legitimate Retail Demand in that market, amendment of Article 4 obligations is not appropriate.ARTICLE 5TRACKING AND TRACINGSection 5.01. Tracking and Tracing Protocols.Consistent with its Fiscal Compliance Policy and applicable packaging laws, Philip Morris International agrees to adopt, implement, maintain and be bound by the commercially reasonable practices and procedures with respect to the tracking and tracing of shipments of Philip Morris Cigarettes after the Execution Date as set forth in the "Tracking and Tracing Protocols" attached as Appendix D.Section 5.02. Certification of Compliance with Tracking and Tracing Protocols.(a) Each year, on the anniversary of the Execution Date, Philip Morris International shall provide the Relevant Administrations with a report, signed by the Vice President for Compliance Systems, describing Philip Morris International s compliance with the requirements of the Tracking and Tracing Protocols. Such certification shall be part of the annual Certification of Compliance and shall be governed by the procedures set forth in Section 2.02 of this Agreement.ARTICLE 6REVIEW OF AGREEMENTSection 6.01. Annual Meetings.At least once per year, the authorized representatives of Philip Morris International and the European Commission shall meet to confer and assess the functioning of the Agreement and its Protocols. At that meeting, Philip Morris International and the European Commission may each present any suggestions they may have to improve the functioning of the Agreement. Subject to Relevant Law, the European Commission and Philip Morris International may communicate to each other concerns relating to any Party s activities in connection with their commitments and obligations under the Agreement.ARTICLE 7FULFILLMENT OF OBLIGATIONS AND OBJECTIVESSection 7.01. Promotion of Public Policy.The Parties to this Agreement hereby acknowledge and agree that this Agreement is designed to provide meaningful assistance to the Participating Member States and the EC in curtailing the smuggling and illegal distribution of Cigarettes into and within the Territory of the Member States.Section 7.02. Respect for Obligations.The Parties hereby acknowledge and agree to take all appropriate measures: (1) to ensure fulfillment of their obligations under this Agreement, (2) to facilitate the achievement of the objectives of the Agreement, and (3) to abstain from any measures that would jeopardize the attainment of the objectives of th …