Exemption of international air transport profits: airline profits from international operations are tax-exempt in the other contracting state.
The agreement directs that domestic law give effect to its provisions and designates the taxes covered, including later substantially similar taxes, subject to mutual notification of significant changes. It defines a Contracting State enterprise as a designated airline and ''operation of aircraft'' broadly to include carriage, ticket sales, incidental leases and related activities. Profits from operation of aircraft in international traffic, including participation in pools, joint businesses or international operating agencies, and interest connected with such operations, are exempt from tax in the other Contracting State. The treaty enters into force on signature and continues indefinitely subject to a specified termination notice regime.

Customs exemption for excess freight charges on air imports reduces duty liability on value uplift.
Exemption removes from the customs duty base the portion of assessable value attributable to air freight exceeding a prescribed percentage of the f.o.b. value; if freight is below that percentage, the exemption applies only to the actual freight percentage incurred, thereby reducing the value on which customs duty is levied for goods imported by air.