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APPENDICES   75

leaving the territory of the other state be exempt from the imposition of customs and excise duties and taxes, inspection fees or similar duties or charges, even though such supplies be used or consumed by such aircraft on flights in that territory;

(d) Neither of them will give a preference to its own airlines against the airlines of the other state in the application of its customs, immigration, quarantine and similar regulations or in the use of airports, airways or other facilities.

ARTICLE V
The laws and regulations of each state relating to the admission to or departure from its territory of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of the other state, and shall be complied with by such aircraft upon entering or departing from or while within the territory of that state.

ARTICLE VI
Each Government reserves the right to withhold or revoke a certificate or permit to an airline of the other state in any case where it is not satisfied that substantial ownership and effective control are vested in nationals of that state, or in case of failure of an airline to comply with the laws of the state over which it operates, as described in Article V, or to perform its obligations under this Agreement. 

Article VII
This Agreement shall apply to the territory of the continental United States including Alaska, and to the territory of Canada including the territorial waters adjacent to each territory.

Article VIII
The aircraft operated by United States airline shall conform at all times with the airworthiness requirements prescribed by the competent aeronautical authorities of the United States for aircraft employed in air transportation of the character contemplated by this Agreement.
The aircraft operated by Canadian airlines shall conform at all times with the airworthiness requirements prescribed