Definition
In this Agreement :

“Agreement” means this agreement, including the Annexes to this Agreement;

“Approved Co-production” means a co-produced film which has Approved Co-Production status in accordance with Article 3;

“Co-Producer” means any individual, partnership, body corporate or unincorporated association who is a co-producer of a film;

“Competent Authority” means a government department or other body nominated in accordance with Article2;

“EEA State” mans a State (other than the United Kingdom or India which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993;

Co-Production Treaty India & UK

“Film” includes any record, however made, of a sequence of visual images, which is a record capable of being used as a means of showing that sequence as a moving picture, and which is expected to be shown in theatrical cinemas;

“Non-Party Co-producer” means a co-producer who is not a Party Co-producer or a Third Party Co-producer;

“Party Co-producer” means a UK Co-producer or an Indian Co-producer;

“Production Cost”, in relation to a co-production, means expenditure incurred solely for the purposes of making the film;

“Indian Co-producer” means a co-producer who is established in India;

“Third Party Co-producer” means a co-producer who is established in another State with which the UK or India has also entered into a co-production agreement;

“UK Co-producer” means a co-producer who is established in England, Wales, Scotland or Northern Ireland.

Reference to film-making contributing benefiting the UK or India include, in particular, the expenditure in that country on goods and services which directly results from the co-production and the use made of film-making facilities or filming locations in that country.

For the purposes of this Agreement the production of a film is completed when the film is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public.

Competent Authorities
Definition

Each Party shall, by notice in writing to the other Party, nominate a Competent Authority to make decisions on applications for the grant of Approved Co-production status by any one or more co-producers of a film.

In determining an application made to it, a Competent Authority shall assess the application against the requirements, which are set out in this Agreement and are applied in accordance with guidance published by the Competent Authority under this Article.

Each Competent Authority may from time to time publish guidance consisting of such information and advice as it considers appropriate with respect to:

how applications are to be made to the Competent Authority, and the operation and interpretation of this Agreement.

Such guidance shall, in particular set out:

how the Competent Authority proposes to make decisions on applications for the grant of Approved Co-production status, and factors it will take into account when exercising any discretion conferred on it by this Agreement.

The Competent Authorities shall jointly determine the procedure that they will follow in arriving at any joint decisions required by this Agreement.

Grant of Approved Co-production status

A co-produced film which meets the requirements set out in this Agreement may be granted Approved Co-production status.

Approved Co-production status shall be granted only if:

an application in respect of a film is made to each of the Competent Authorities in accordance with procedures established under Article 2, and

both Competent Authorities agree to approve the application in accordance with this Article.

Approval of an application in respect of a film shall be given in two stages:

provisional approval, and final approval.

Provisional or final approval shall be given Only if the requirements set out in Article 4 are met, and

subject to such conditions as the Competent Authorities (acting jointly) consider appropriate.

For the purposes of eligibility for the benefits referred to Article 9, a film shall be treated as having Approved Co-production status only if:

the Competent Authorities have agreed to give the film final approval under this Article, and that approval has not been withdrawn.

For all other purposes:

references to the grant of Approved Co-production status are to the giving of either final approval or provisional approval under this Article, and

a film shall be treated as having Approved Co-production status if either stage of approval has been given and that approval has not been withdrawn.

If at any stage the Competent Authorities do not agree to approve an application in respect of a film, Approved Co-production status shall be refused.

Nothing in this Agreement binds the relevant authorities in the UK or India to permit the public exhibition of a film which has been granted Approved Co-production status.

Each Party shall consult the other on general approach it proposes to take in relation to balance and, in particular, on the methods it will adopt when collating and measuring statistical data and on the approach it will take in measuring whether or not a state of balance exists.

In order to assess the state of balance between the Parties, each Party shall collate and analyse statistical data about successful applications for the grant of Approved Co-production status and shall report to the other annually in writing on the current state of balance.

In making an assessment of the state of balance, each Party:

shall take account of the total number of Approved Co-productions over each relevant period specified in paragraph (5) of this Article (excluding co-productions given approval in reliance on section 2 of Annex 1 to this Agreement), and shall have regard to (among other things) the extent to which those co-productions reflect its own culture or are otherwise beneficial to it.

The relevant periods are as follows:

the first period is the period of one year commencing with the date on which this Agreement enters into force,

the second period is the period of two years commencing with that date,

the third period is the period of three years commencing with that date, and

the fourth and subsequent periods are to be determined as the period of three years immediately preceding any date on which an assessment of the state of balance is made.

Requirements for Approved Co-production status

A film may be granted Approved Co-production status only if each Competent Authority is satisfied that:

subject to paragraph (3) of this Article, the general requirements set out in Annex 1 to this Agreement are (or are expected to be) met in relation to the co-production;

the film delivers (or is expected to deliver) adequate economic or cultural benefits to the country for which it is the Competent Authority, and

any temporary additional requirements that are imposed under Article 6 in relation to the grant of Approved Co-production status by that Competent Authority are (or are expected to be) met.

The economic or cultural benefits referred to in paragraph (1)(b) of this Article shall be assessed by each Competent Authority in accordance with Annex 2 to this Agreement.

In the event of an inconsistency between:

on the one hand, any of the provisions of an Annex to this Agreement, and

on the other, any temporary additional requirements imposed under Article 6, the Competent Authorities shall apply the temporary additional requirement.

Balance in film-making contribution benefiting each Party

In connection with the making of films which have Approved Co-production status under this Agreement, the Parties shall seek to ensure an approximate overall balance in:

the film-making contribution benefiting the UK, and the film-making contribution benefiting India.

Consequences of imbalance

If a Party considers that there is (or is a risk of) imbalance, it shall consult the other.

If, after 6 months of consultations, the Parties are unable to agree on appropriate measures to restore balance, the Party in deficit shall be entitled to take, without the agreement of the other Party, such measures, as it considers necessary.

Measures imposed by a Party under this Article may include the imposition of temporary additional requirements that must be met before its Competent Authority can agree to the grant of Approved Co-production status.

Temporary additional requirements shall apply only in respect of applications, which are:

for the Competent Authorities to give provisional approval for Approved Co-production status under Article 3, and made after the requirement comes into effect in accordance with paragraph (5) of this Article.

No temporary additional requirement may take effect before the Party imposing it:

has notified the other Party in writing of the requirement, and

has published:

a statement of the requirement, and

any changes to the guidance issued in accordance with Article 2, which may be required to give effect to it.

Withdrawal of Approved Co-production status

Approval for a film which has Approved Co-production status may be withdrawn if, at any time, it appears to either Competent Authority that:

false or misleading information has been provided in connection with an application for the approval,

any of the conditions imposed under Article 3(4)(b) by the Competent Authorities have not been complied with,

any of the requirements set out in Article 4(1)(a) or (b) are not met, or

any of the requirements specified in paragraph (2) of this Article are not met.

The requirements specified in this paragraph are any temporary additional requirements imposed under Article 6:

which applied to the film when provisional approval for Approved Co-production status under Article 3 was given, and which continue to have effect when the status is withdrawn under this Article.

Benefits for Co-productions with either final approval or provisional approval

This Article applies in relation any film, which has Approved Co-production status.

To the extent permitted by international law, the Parties shall allow for the temporary import and export, free of import duties and taxes, of any equipment necessary for the production of an Approved Co-production.

Subject to any overriding legal requirements relating to entry, residence and employment, each Party shall allow any person employed in the making or promotion of an Approved Co-production to enter and remain in the country throughout the making or promotion of the film.

Additional benefits available only to Co-productions with final approval

This Article applies only in relation to a film in respect of which the Competent Authorities have agreed to give final approval for Approved Co-production status under Article 3.

Each Party shall treat a film falling within paragraph (1) of this Article as a national film for the purposes of any benefits afforded in that country to national films.

The benefits referred to in paragraph (2) of this Article include, in particular: eligibility for any benefits in fiscal treatment (subject to the film satisfying the criteria that national films must meet for such benefits and subject to paragraphs (4) and (5) of this Article),

the lifting of any quota restrictions that would otherwise apply to the import, distribution or exhibition of the film, and access to any special import arrangements, agreed between a Party and another country, which operates import quota restrictions, for the import of national films of that Party.

Any benefits in fiscal treatment available in the United Kingdom may only be accorded to a UK Co-producer.

Any benefits in fiscal treatment available in India may only be accorded to an Indian Co-producer.

The question of which Party may claim credit for an Approved Co-production as a national film at an International Film Festival shall be determined:

by reference to whichever is the greater of either:

the total financial contributions made by the UK Co-producer or Co-producers (taken together), or

the total financial contributions made by the Indian Co-producer or Co-producers (taken together); or

if the respective total financial contributions are equal , by reference to whichever of the UK or India the director of the film is not closely associated with.

Entry into Force

This Agreement shall enter into force as soon as the Parties have notified each other of the completion of their respective constitutional procedures.

Either Party may terminate this Agreement at any time by giving at least 6 months written notice to the other Party.

The Agreement shall cease to have effect on the expiry of the period of notice given under paragraph (2) of this Article.

Films in production before and after entry into force

A film shall be eligible for the grant of Approved Co-production status even if production commenced before this Agreement entered into force, but only if:

the principal photography of the film commenced no more than 18 months before the date on which the Agreement enters into force, and

production of the film is completed after that date.

An Approved Co-production shall continue to be eligible to receive any benefits available under this Agreement on or after the date on which the Agreement ceases to have effect, but only if:

before that date, the Competent Authorities have given the film provisional approval for Approved Co-production status under Article 3,

its principal photography commenced before that date, and production of the film is completed before the end of the period of twelve months commencing with that date.

Amendments to Articles

The Articles of this Agreement may be amended at any time by agreement between the Parties.

Any such amendment shall enter into force as soon as the Parties have notified each other of the completion of their respective constitutional procedures.

Reviews of the Annexes

The Competent Authorities shall keep the Annexes to this Agreement under review and, where they consider it appropriate to do so, may recommend that changes be made.

The Parties may, at any time, make amendments to either of the Annexes to this Agreement.

An amendment to an Annex which is made under this Article shall come into force when confirmed by an exchange of notes.

International obligations

The provisions of this Agreement are without prejudice to the international obligations of the Parties, including, in relation to the United Kingdom, obligations arising from European Community Law.

In witness whereof, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

Done in duplicate at ….. this ……. day of ………, 200.., in the English and Hindi languages, both texts being equally authoritative.

For the Government of the United Kingdom For the Government of India of Great Britain and Northern Ireland.

ANNEX 1
APPROVED CO-PRODUCTION STATUS:
GENERAL REQUIREMENTS

Section 1
Co-productions, which have no finance-only contributions

[Co-producers]
Amendments to Articles

The co-producers shall include at least one UK Co-producer and at least one Indian Co-producer.

Unless the Competent Authorities agree otherwise, the maximum number of co-producers for a film shall be four

Unless the Competent Authorities agree otherwise, no co-producer may be linked to another co-producer by common ownership, management or control (except to the extent that such link is inherent in the making of the co-production).

Unless the Competent Authorities agree otherwise, each co-producer shall :

demonstrate a good track record in film-production, and have offices and staff in the country in which he is established.

Each co-producer shall:

continue to play an active role throughout the time the co-production is being made (including production planning and decision-making), and

assume responsibility for carrying through practical and financial arrangements for the making of the film.

Each co-producer shall also meet the following requirements:

each co-producer must directly negotiate, contract and pay for rights, goods and services, and the co-producers must have entered into a binding contract, the terms of which reflect their responsibilities for the co-production.

Unless the Competent Authorities agree otherwise: the co-producers named in the original application shall not be replaced, and no co-producers may be added to those named in the original application (or previously agreed to under this paragraph).

Unless the Competent Authorities agree otherwise, a Third Party Co-producer shall not meet all the requirements of this Annex.

Unless the Competent Authorities agree otherwise, a Third Party Co-producer shall not meet all the requirements of this Annex.