Central

Section 3 of The International Development Association (Status, Immunities and Privileges) Act, 1960

Conferment of status and certain immunities and privileges on the Association and conferment of certain immunities and privileges on its officers and employees.

(1)Notwithstanding anything to the contrary contained in any other law, the provisions of Article VIII of the Agreement set out in the Schedule shall have the force of law in India: Provided that nothing in section 9 thereof shall be construed as--
1. (a)entitling the Association to import into India goods free of any duty of customs without any restriction on their subsequent sale therein; or
2. (b)conferring on the Association any exemption from duties or taxes which form part of the price of goods sold; or
3. (c)conferring on the Association any exemption from duties or taxes which are in fact no more than charges for services rendered.
(2)The Central Government may, from time to time, by notification in the Official Gazette, amend the Schedule in conformity with any amendments, duly made and adopted, of the provisions of the Agreement set out therein.

Summary

This section gives the force of law in India to the provisions of Article VIII of the Agreement, which are set out in the Schedule.
These provisions have the force of law notwithstanding anything to the contrary in any other Indian law.
This section limits the tax and duty exemptions that the Association can claim under Section 9 of Article VIII.
The Association is not allowed to import goods into India duty-free without restrictions on their subsequent sale.
The Association is not exempt from duties or taxes that form part of the price of goods sold, or charges for services rendered.
The Central Government can amend the Schedule from time to time by notification in the Official Gazette to conform with any amendments made to the Agreement.

Practical examples

1In March 1962, a customs officer named Anil stops a shipment of office equipment imported by the Association. Anil explains that under Section 3, the Association cannot resell this equipment in India without restrictions, even though it was imported duty-free.

2In July 1963, a local store owner named Sunita sells office furniture to the Association. Sunita includes sales tax in the price because Section 3 does not exempt the Association from taxes that form part of the price of sold goods.

FAQ

1. What part of the Agreement has the force of law in India under Section 3?

The provisions of Article VIII of the Agreement, which are set out in the Schedule of the Act, have the force of law in India.

2. Does this section override other conflicting laws in India?

Yes, Article VIII has the force of law notwithstanding anything to the contrary in any other law.

3. Is the Association exempt from paying for public services like water or electricity?

No, it does not get exemptions from duties or taxes which are in fact charges for services rendered.

4. How can the Schedule of this Act be updated?

The Central Government can amend the Schedule from time to time by notification in the Official Gazette to match amendments made to the Agreement.

Test yourself

1.Which Article of the Agreement has the force of law in India?

2.Which of the following is NOT a limitation on the Association's tax exemptions under Section 3?

3.How does the Central Government amend the Schedule to conform with amendments to the Agreement?

4.What phrase in Section 3 ensures that Article VIII has the force of law despite other conflicting Indian laws?

5.Under Section 3, are taxes that are "no more than charges for services rendered" exempt for the Association?

6.What does the proviso to Section 3 say about taxes that form part of the price of goods sold?

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