16 Code of Practice Levy and Charges

16.1 An annual Code of Practice levy is paid by members of the ABPI. The levy together with the administrative charges referred to in Paragraphs 7 and 10 above, the charges for audits carried out in accordance with Paragraphs 10.4, 11.3 and 12.2 above and the contributions to the cost of press advertisements referred to in Paragraph 13.7 above are determined by the ABPI Board subject to approval at a General Meeting of the ABPI by a simple majority of those present and voting.

16.2 Administrative charges are payable only by pharmaceutical companies and companies are liable for such charges whether they are members of the ABPI or not.

There are two levels of administrative charge.

The lower level is payable by a company which accepts either a ruling of the Panel that it was in breach of the Code or a rejection by the Panel of its allegation against another company. The lower level is also payable by a complainant company if a ruling of the Panel that there was a breach of the Code is subsequently overturned by the Appeal Board and by a respondent company if a ruling of the Panel that there was no breach of the Code is subsequently overturned by the Appeal Board.

The higher level is paid by a company which unsuccessfully appeals a ruling of the Panel.

16.3 Where two or more companies are ruled in breach of the Code in relation to a matter involving co- promotion, each company will be separately liable to pay any administrative charge which is payable.

16.4 Where a company advises the Authority that it may have breached the Code, and it is subsequently ruled in breach, any administrative charge payable will be one half of that which would otherwise have been due.

16.5 The number of administrative charges which apply in a case is determined by the Director. If a company does not agree with the Director’s decision, the matter is referred to the Chairman of the Appeal Board for his decision which is final.

16.6 Failure to pay any of the charges provided for by this paragraph must be reported by the Director to the Appeal Board or the ABPI Board as appropriate.