This law is an agreement establishing an association between the European Communities and their Member States, and the State of Israel

22000A0621(01) 22000A0621(01) Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the State of Israel, of the other part - Protocol 1 concerning the arrangements applicable to the importation into the Community of agricultural products originating in Israel - Protocol 2 concerning the arrangements applicable to the importation into Israel of agricultural products originating in the Community - Protocol 3 concerning plant protection matters - Protocol 4 concerning the definition of 'originating products' and methods of administrative cooperation - Protocol 5 on mutual assistance between administrative authorities in customs matters - Joint Declarations - Agreement in the form of an Exchange of Letters concerning outstanding bilateral issues - Agreement in the form of an Exchange of letters relating to Protocol 1 and concerning imports into the Community of fresh cut flowers and flower buds falling within subheading 0603 10 of the Common Customs Tariff - Agreement in the form of an Exchange of Letters regarding the implementation of the Uruguay Round Agreements

Danish ; Spanish ; Finnish ; French ; Greek ; Italian ; Dutch ;

Portuguese ; Swedish ; Other than Community language ; Hebrew Author:

The 15 Member States ; Belgium ; Denmark ; Federal Republic of Germany ; Greece ; Spain ; France ; Ireland ; Italy ; Luxembourg ;

Netherlands ; Austria ; Portugal ; Finland ; Sweden ; United Kingdom ; European Community ; European Coal and Steel Community ; Israel Subject matter: Association ; External relations Directory code: 11402000 EUROVOC descriptor: association agreement ; European Association Agreement ; EU country ; Israel Legal basis:

151K095................... Adoption 197E300-P2L1F2............ Adoption 197E310-P3L2.............. Adoption 197E310................... Adoption Instruments cited:

157EN02...................

279A0412(06)..............

391R1911..................

294A1223(01)..............

294A1223(03)..............

294A1223(09)..............

294A1223(16)..............

294A1223(21)..............

Amendment to:

275A0511(01)...... Replacement... from 01/06/2000 275A0511(02)...... Replacement... from 01/06/2000 Amended by:

Adopted by.... 300D0384.......... from 19/04/2000 Amended by.... 203A1231(06)...... Replacement PROT 1 from 01/01/2004 Amended by.... 203A1231(06)...... Replacement PROT 2 from 01/01/2004 Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the State of Israel, of the other part THE KINGDOM OF BELGIUM, THE KINGDOM OF DENMARK, THE FEDERAL REPUBLIC OF GERMANY, THE HELLENIC REPUBLIC, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC, IRELAND, THE ITALIAN REPUBLIC, THE GRAND DUCHY OF LUXEMBOURG, THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA, THE PORTUGUESE REPUBLIC, THE REPUBLIC OF FINLAND, THE KINGDOM OF SWEDEN, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, Contracting Parties to the Treaty establishing the European Community and the Treaty establishing the European Coal and Steel Community, hereinafter referred to as the "Member States", and THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as "the Community", of the one part, and THE STATE OF ISRAEL, hereinafter referred to as "Israel", of the other part, CONSIDERING the importance of the existing traditional links between the Community, its Member States and Israel, and the common values that they share;

CONSIDERING that the Community, its Member States and Israel wish to strengthen those links and to establish lasting relations, based on reciprocity and partnership, and promote a further integration of Israel's economy into the European economy;

CONSIDERING the importance which the Parties attach to the principle of economic freedom and to the principles of the United Nations Charter, particularly the observance of human rights and democracy, which form the very basis of the Association;

CONSCIOUS of the need to associate their efforts to strengthen political stability and economic development through the encouragement of regional cooperation;

DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest;

DESIROUS of maintaining and intensifying a dialogue on economic, scientific, technological, cultural, audiovisual and social matters to the benefit of the Parties;

CONSIDERING the respective commitments of the Community and Israel to free trade, and in particular to compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade (GATT) as it results from the negotiations of the Uruguay Round;

CONVINCED that the Association Agreement will create a new climate for their economic relations and in particular for the development of trade, investment and economic and technological cooperation, HAVE AGREED AS FOLLOWS:

Article 11. An association is hereby established between the Community and

its Member States, of the one part, and Israel, of the other part.

Article 2Relations between the Parties, as well as all the provisions of the

Agreement itself, shall be based on respect for human rights and democratic principles, which guides their internal and international policy and constitutes an essential element of this Agreement.

TITLE I

POLITICAL DIALOGUE

Article 31. A regular political dialogue shall be established between the

Parties. It shall strengthen their relations, contribute to the development of a lasting partnership and increase mutual understanding and solidarity.

Article 4

The political dialogue shall cover all subjects of common interest, and shall aim to open the way to new forms of cooperation with a view to common goals, in particular peace, security and democracy.

Article 51. The political dialogue shall facilitate the pursuit of joint

initiatives and shall take place in particular: (a) at ministerial level; (b) at senior official level (political directors) between representatives of Israel, of the one part, and of the Council Presidency and the Commission, of the other; (c) by taking full advantage of all diplomatic channels including regular briefings by officials, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries; (d) by providing regular information to Israel on issues relating to the common foreign and security policy, which shall be reciprocated; (e) by any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.

TITLE II

FREE MOVEMENT OF GOODS

CHAPTER 1

BASIC PRINCIPLES

Article 61. The free trade area between the Community and Israel shall be

reinforced according to the modalities set out in this Agreement and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the "GATT".

CHAPTER 2

INDUSTRIAL PRODUCTS

Article 7The provisions of this Chapter shall apply to products originating

in the Community and in Israel other than those listed in Annex II to the Treaty establishing the European Community and, as far as products originating in Israel are concerned, other than those listed in Annex I to this Agreement.

Article 8Customs duties on imports and exports, and any charges having

equivalent effect, shall be prohibited between the Community and Israel. This shall also apply to customs duties of a fiscal nature.

Article 91. (a) The provisions of this chapter shall not preclude the

retention by the Community of an agricultural component in respect of goods originating in Israel and listed in Annex II to this Agreement, with the exception of those listed in Annex III. (b) This agricultural component shall be calculated on the basis of the difference between the prices on the Community market of the agricultural products considered to have been used in the production of the goods and the prices of imports from third countries, where the total cost of the basic products in question is higher in the Community. The agricultural component may take the form of a flat-rate amount or an ad valorem duty. In cases where this agricultural component has been subject to tarification it will be replaced by the respective specific duty.

CHAPTER 3

AGRICULTURAL PRODUCTS

Article 10The provisions of this Chapter shall apply to products originating

in the Community and Israel and listed in Annex II to the Treaty establishing the European Community.

Article 11The Community and Israel shall progressively establish a greater

liberalisation of their trade in agricultural products of interest to both Parties. From 1 January 2000 the Community and Israel shall examine the situation in order to determine the measures to be applied by the Community and Israel from 1 January 2001 in accordance with this objective.

Article 12Agricultural products originating in Israel listed in Protocols 1

and 3 on importation into the Community shall be subject to the arrangements set out in those Protocols.

Article 13Agricultural products originating in the Community listed in

Protocols 2 and 3 on importation into Israel shall be subject to the arrangements set out in those Protocols.

Article 14Without prejudice to Article 11 and taking account of the volume of

trade in agricultural products between them and of their particular sensitivity, the Community and Israel shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.

Article 15The Community and Israel agree to examine, at the latest three years

after entry into force of the Agreement, the possibility of granting each other, on the basis of reciprocity and mutual interest, concessions in trade in fisheries products.

CHAPTER 4

COMMON PROVISIONS

Article 16Quantitative restrictions on imports and all measures having

equivalent effect shall be prohibited between the Community and Israel.

Article 17Quantitative restrictions on exports and all measures having

equivalent effect shall be prohibited between the Community and Israel.

Article 181. Products originating in Israel shall not on importation into the

Community be accorded a treatment more favourable than that which the Member States apply among themselves.

Article 191. The Parties shall refrain from any measure or practice of an

internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

Article 201. In the event of specific rules being established as a result of

the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of the agricultural policy, the Party in question may amend the arrangements resulting from the Agreement in respect of the products which are the subject of those rules or alterations.

Article 211. The Agreement shall not preclude the maintenance or establishment

of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in the Agreement.

Article 22If one of the Parties finds that dumping is taking place in trade

with the other Party within the meaning of Article VI of the GATT, it may take appropriate measures against this practice in accordance with the Agreement on implementation of Article VI of the GATT and with its relevant internal legislation, under the conditions and in accordance with the procedures laid down in Article 25.

Article 23Where any product is being imported in such increased quantities and

under such conditions as to cause or threaten to cause:

Article 25

Article 24Where compliance with the provisions of Article 17 leads to:

(i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties, or measures having equivalent effect, or (ii) a serious shortage, or threat thereof, of a product essential to the exporting Party, and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 25. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.

Article 251. In the event of the Community or Israel subjecting imports of

products liable to give rise to the difficulties referred to in Article 23, to an administrative procedure, the purpose of which is to provide rapid information on the trend of trade flows, it shall inform the other Party.

In the selection of appropriate measures, priority shall be given to those which least disturb the functioning of the Agreement.

The safeguard measures shall be notified immediately to the Association Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

If the Association Committee or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen; (c) as regards Article 24, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Committee.

The Association Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned; (d) where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in Articles 22, 23 and 24 apply forthwith such precautionary measures as are strictly necessary to remedy the situation, and shall inform the other Party immediately.

Article 26When one or more Member States of the Community or Israel is in

serious balance of payments difficulties or under threat thereof, the Community or Israel, as the case may be, may, in accordance with the conditions laid down within the framework of the GATT and with Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, adopt restrictive measures which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Community or Israel, as the case may be, shall inform the other Party forthwith and present to the other Party, as soon as possible, a time schedule for their removal.

Article 27Nothing in this Agreement shall preclude prohibitions or

restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; the protection of intellectual, industrial and commercial property or rules concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 28The concept of "originating products" for the application of this

title and the methods of administrative cooperation relating to them are set out in Protocol 4.

TITLE III

RIGHT OF ESTABLISHMENT AND SUPPLY OF SERVICES

Article 291. The Parties agree to widen the scope of the Agreement to cover

the right of establishment of firms of one Party in the territory of another Party and the liberalisation of the provision of services by one Party's firms to consumers of services in the other.

In making such recommendations, the Association Council shall take account of past experience of implementation of the reciprocal most-favoured-nation treatment and of the obligations of each Party under the General Agreement on Trade in Services, hereinafter referred to as the "GATS", particularly those in Article V of the latter.

Article 301. At the outset, each of the Parties reaffirms its obligations

under the GATS, particularly the obligation to grant reciprocal most-favoured-nation treatment in the services sectors covered by that obligation.

TITLE IV

CAPITAL MOVEMENTS, PAYMENTS, PUBLIC PROCUREMENT, COMPETITION AND INTELLECTUAL PROPERTY

CHAPTER 1

CAPITAL MOVEMENTS AND PAYMENTS

Article 31Within the framework of the provisions of this Agreement, and

subject to the provisions of Articles 33 and 34, there shall be no restrictions between the Community of the one part, and Israel of the other part, on the movement of capital and no discrimination based on the nationality or on the place of residence of their nationals or on the place where such capital is invested.

Article 32

Current payments connected with the movement of goods, persons, services or capital within the framework of this Agreement shall be free of all restrictions.

Article 33Subject to other provisions in this Agreement and other

international obligations of the Community and Israel, the provisions of Articles 31 and 32 shall be without prejudice to the application of any restriction which exists between them on the date of entry into force of this Agreement, in respect of the movement of capital between them involving direct investment, including in real estate, establishment, the provision of financial services or the admission of securities to capital markets.

However, the transfer abroad of investments made in Israel by Community residents or in the Community by Israeli residents and of any profit stemming therefrom shall not be affected.

Article 34Where, in exceptional circumstances, movements of capital between

the Community and Israel cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Israel, the Community or Israel respectively may, in conformity within the conditions laid down within the framework of the GATS and with Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, take safeguard measures with regard to movements of capital between the Community and Israel for a period not exceeding six months if such measures are strictly necessary.

CHAPTER 2

PUBLIC PROCUREMENT

Article 35The Parties shall take measures with a view to a mutual opening of

their respective government procurement markets and the procurement markets of undertakings operating in the utilities sectors for purchase of goods, works and services beyond the scope of what has been mutually and reciprocally covered under the Government Procurement Agreement concluded in the framework of the WTO.

CHAPTER 3

COMPETITION

Article 361. The following are incompatible with the proper functioning of the

Agreement, in so far as they may affect trade between the Community and Israel: (i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition; (ii) abuse by one or more undertakings of a dominant position in the territories of the Community or Israel as a whole or in a substantial part thereof; (iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

Until these rules are adopted, the provisions of the Agreement on interpretation and application of Articles VI, XVI and XXIII of the GATT shall be applied as the rules for the implementation of paragraph 1(iii).

Chapter 3, paragraph 1(iii) does not apply.

With reference to practices incompatible with paragraph 1(iii), such appropriate measures, when the GATT is applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by the GATT or by any other relevant instrument negotiated under its auspices and applicable to the Parties.

Article 371. The Member States and Israel shall progressively adjust any State

monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Israel.

Article 38With regard to public undertakings and undertakings to which special

or exclusive rights have been granted, the Association Council shall ensure that as from the fifth year following the date of entry into force of this Agreement there is neither enacted nor maintained any measure distorting trade between the Community and Israel to an extent contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to those undertakings.

CHAPTER 4

INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY

Article 391. Pursuant to the provisions of this Article and of Annex VII, the

Parties shall grant and ensure adequate and effective protection of intellectual, industrial and commercial property rights in accordance with the highest international standards, including effective means of enforcing such rights.

TITLE V

SCIENTIFIC AND TECHNOLOGICAL COOPERATION

Article 40The Parties undertake to intensify scientific and technological

cooperation. Detailed arrangements for the implementation of this objective shall be set out in separate agreements concluded for this purpose.

TITLE VI

ECONOMIC COOPERATION

Article 41Objectives

The Community and Israel undertake to promote economic cooperation to their mutual benefit and on the basis of reciprocity in accordance with the overall objectives of the Agreement.

Article 42Scope

Article 43Methods and Modalities

Economic cooperation shall be implemented in particular by: (a) a regular economic dialogue between the Parties, which covers all areas of economic policy and, in particular, fiscal policy, balance of payments and monetary policy, and which shall enhance close collaboration between the authorities concerned with economic policy, each in their respective areas of competence within the Association Council or any other forum designated by the Association Council; (b) a regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts; (c) transfer of advice, expertise and training; (d) implementation of joint actions such as seminars and workshops; (e) technical, administrative and regulatory assistance; (f) the dissemination of information on cooperation.

Article 44Regional cooperation

The Parties shall encourage operations designed to promote regional cooperation.

Article 45Industrial cooperation

The Parties shall promote cooperation in particular in the following areas:

Article 46Agriculture

The Parties shall focus cooperation in particular on:

Article 47Standards

The Parties shall aim to reduce differences in standardisation and conformity assessment. To this end the Parties shall conclude where appropriate agreements on mutual recognition in the field of conformity assessment.

Article 48Financial services

The Parties shall cooperate, where appropriate through the conclusion of agreements, on the adoption of common rules and standards, inter alia, for accounting and for supervisory and regulatory systems of banking, insurance and other financial sectors.

Article 49Customs

Article 50Environment

Article 51Energy

Article 52Information infrastructures and telecommunications

The Parties shall promote cooperation in the development of information infrastructures and telecommunications to their mutual benefit. Cooperation shall focus primarily on pursuing actions related to research and technological development, harmonisation of standards and modernisation of technology.

Article 53Transport

Article 54Tourism

The Parties shall exchange information on planned tourism development and tourism marketing projects, tourism shows, exhibitions, conventions and publications.

Article 55Approximation of laws

The Parties shall use their best endeavours to approximate their respective laws in order to facilitate the implementation of this Agreement.

Article 56Drugs and money laundering

The relevant public and private sector bodies, in accordance with their own powers, working with the competent bodies of Israel, the Community and its Member States, may take part in these operations.

Article 57Migration

The Parties shall cooperate with a view in particular to:

TITLE VII

COOPERATION ON AUDIOVISUAL AND CULTURAL MATTERS, INFORMATION AND COMMUNICATION

Article 581. The Parties shall undertake to promote cooperation in the

audiovisual sector to their mutual benefit.

Article 59The Parties shall promote cooperation on education, training and

youth exchange. The areas of cooperation may include in particular: youth exchanges, cooperation among universities and other educational/training institutions, language training, translation and other ways of promoting better mutual understanding of their respective cultures.

Article 60The Parties shall promote cultural cooperation. The areas of

cooperation may include in particular translation, exchange of works of art and artists, conservation and restoration of historic and cultural monuments and sites, training of persons working in the cultural field, the organisation of European-oriented cultural events, raising mutual awareness and contributing to the dissemination of information on outstanding cultural events.

Article 61The Parties shall promote activities of mutual interest in the field

of information and communication.

Article 62Cooperation shall be implemented in particular through:

(a) a regular dialogue between the Parties; (b) a regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts; (c) transfer of advice, expertise and training; (d) implementation of joint actions such as seminars and workshops; (e) technical, administrative and regulatory assistance; (f) the dissemination of information on cooperation initiatives.

TITLE VIII

SOCIAL MATTERS

Article 631. The Parties shall conduct a dialogue covering all aspects of

mutual interest. The dialogue shall cover in particular questions relating to social problems of post-industrial societies, such as unemployment, rehabilitation of disabled people, equal treatment for men and women, labour relations, vocational training, work safety and hygiene, etc.

Article 641. In order to coordinate the social security regimes of Israeli

workers legally employed on the territory of a Member State and of their family members legally resident there, the following provisions should apply, subject to the conditions and modalities applicable in each Member State:

Article 651. The Association Council shall decide on the provisions for the

implementation of the objectives contained in Article 64.

Article 66The arrangements decided by the Association Council, in accordance

with Article 65, shall in no way affect the rights and obligations resulting from bilateral agreements between Israel and the Member States where these agreements provide for a more favourable treatment of Israeli nationals or for nationals of the Member States.

TITLE IX

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 67An Association Council is hereby established which shall meet at

ministerial level once a year and when circumstances require, at the initiative of its Chairman and in accordance with the conditions laid down in its rules of procedure. It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.

Article 681. The Association Council shall consist of the members of the

Council of the European Union and members of the Commission of the European Communities, on the one hand, and members of the Government of the State of Israel, on the other.

Article 691. The Association Council shall, for the purpose of attaining the

objectives of the Agreement, have the power to take decisions in the cases provided for therein.

These decisions shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Association Council may also make appropriate recommendations.

Article 701. Subject to the powers of the Association Council, an Association

Committee is hereby established which shall be responsible for the implementation of the Agreement.

Article 71

Article 721. The Association Committee shall have the power to take decisions

for the management of the Agreement as well as in those areas in which the Association Council has delegated its powers to it.

These decisions shall be binding on the Parties which shall take the measures necessary to implement the decisions taken.

Article 73The Association Council may decide to set up any working group or

body necessary for the implementation of the Agreement.

Article 74The Association Council shall take all appropriate measures to

facilitate cooperation and contacts between the European Parliament and the Knesset of the State of Israel, and between the Economic and Social Committee of the Community and the Economic and Social Council of Israel.

Article 751. Each of the Parties may refer to the Association Council any

dispute relating to the application or interpretation of this Agreement.

The Association Council shall appoint a third arbitrator.

The arbitrators' decisions shall be taken by majority vote.

Each party to the dispute must take the steps required to implement the decision of the arbitrators.

Article 76Nothing in the Agreement shall prevent a Party from taking any

measures: (a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests; (b) which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes; (c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 77In the fields covered by this Agreement, and without prejudice to

any special provisions contained therein:

Article 78As regards direct taxation, nothing in the Agreement shall have the

effect of:

Article 791. The Parties shall take any general or specific measures required

to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in the Agreement are attained.

In the selection of measures, priority shall be given to those which least disturb the functioning of the Agreement.

These measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other Party so requests.

Article 80Protocols 1 to 5, Annexes I to VII shall form an integral part of

this Agreement. Declarations and Exchanges of Letters shall appear in the Final Act, which shall form an integral part of this Agreement.

Article 81For the purpose of this Agreement the term "Parties" shall mean the

Community, or the Member States, or the Community and the Member States, in accordance with their respective powers, of the one part, and Israel of the other part.

Article 82

The Agreement is concluded for an unlimited period.

Each of the Parties may denounce the Agreement by notifying the other Party. The Agreement shall cease to apply six months after the date of such notification.

Article 83This Agreement shall apply, on the one hand, to the territories in

which the Treaties establishing the European Community and the European Coal And Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of the State of Israel.

Article 84

This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Hebrew languages; each of these texts being equally authentic, shall be deposited with the General Secretariat of the Council of the European Union.

Article 85This Agreement shall be approved by the Parties in accordance with

their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.

Upon its entry into force this Agreement shall replace the Agreement between the European Community and the State of Israel, and the Agreement between the Member States of the European Coal and Steel Community, of the one part, and the State of Israel, of the other part, signed in Brussels on 11 May 1975.

Hecho en Bruselas, el veinte de noviembre de mil novecientos noventa y cinco.

Udfördiget i Bruxelles, den tyvende november nitten hundrede og femoghalvfems.

Geschehen zu BrŽssel am zwanzigsten November neunzehnhundertfŽnfundneunzig. >ISO_7>øółżõ ėĮłĖ ĀęįžąūūõĖ, ėĮłĖ õčś˙ėł Ķ˙õüņęč˙į ščūłń õżżłńśŽėłń õżõżČżĮń ĘążĮõ.

Done at Brussels on the twentieth day of November in the year one thousand, nine hundred and ninety-five.

Fait š Bruxelles, le vingt novembre mil neuf cent quatre-vingt-quinze.

Fatto a Bruxelles, addü venti novembre millenovecentonovantacinque.

Gedaan te Brussel, de twintigste november negentienhonderdvijfennegentig.

Feito em Bruxelas, em vinte de Novembro de mil novecentos e noventa e cinco.

Tehty Brysselissō kahdentenakymmenentenō pōivōnō marraskuuta vuonna tuhatyhdeksōnsataayhdeksōnkymmentōviisi.

Som skedde i Bryssel den tjugonde november nittonhundranittiofem. >PIC FILE= "L_2000147EN.001801.TIF"> Pour le Royaume de Belgique/Voor het Koninkrijk Belgiū/FŽr das KŠnigreich Belgien >PIC FILE= "L_2000147EN.001802.TIF"> Cette signature engage łgalement la Communautł fran÷aise, la Communautł flamande, la Communautł germanophone, la Rłgion wallonne, la Rłgion flamande et la Rłgion de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franstalige Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flōmische Gemeinschaft, die FranzŠsische Gemeinschaft, die Wallonische Region, die Flōmische Region und die Region BrŽssel-Hauptstadt.

Põ Kongeriget Danmarks vegne >PIC FILE= "L_2000147EN.001803.TIF"> FŽr die Bundesrepublik Deutschland >PIC FILE= "L_2000147EN.001901.TIF"> >ISO_7>Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń >ISO_1>> PIC FILE= "L_2000147EN.001902.TIF"> Por el Reino de Espaęa >PIC FILE= "L_2000147EN.001903.TIF"> Pour la Rłpublique fran÷aise >PIC FILE= "L_2000147EN.001904.TIF"> Thar cheann na hÉireann/For Ireland >PIC FILE= "L_2000147EN.001905.TIF"> Per la Repubblica italiana >PIC FILE= "L_2000147EN.001906.TIF"> Pour le Grand-Duchł de Luxembourg >PIC FILE= "L_2000147EN.002001.TIF"> Voor het Koninkrijk der Nederlanden >PIC FILE= "L_2000147EN.002002.TIF"> FŽr die Republik Österreich >PIC FILE= "L_2000147EN.002003.TIF"> Pela RepŪblica Portuguesa >PIC FILE= "L_2000147EN.002004.TIF"> Suomen tasavallan puolesta >PIC FILE= "L_2000147EN.002005.TIF"> FŠr Konungariket Sverige >PIC FILE= "L_2000147EN.002006.TIF"> For the United Kingdom of Great Britain and Northern Ireland >PIC FILE= "L_2000147EN.002101.TIF"> Por las Comunidades Europeas/For De Europöiske Föllesskaber/FŽr die Europōischen Gemeinschaften/>ISO_7>Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ/>ISO_1>For the European Communities/Pour les Communautłs europłennes/Per le Comunitš europee/Voor de Europese Gemeenschappen/Pelas Comunidades Europeias/Euroopan yhteisŠjen puolesta/Põ Europeiska gemenskapernas vōgnar >PIC FILE= "L_2000147EN.002102.TIF"> >PIC FILE= "L_2000147EN.002103.TIF"> >PIC FILE= "L_2000147EN.002104.TIF"> LIST OF ANNEXES >TABLE POSITION> ANNEX I LIST OF PRODUCTS REFERRED TO IN ARTICLE 7 >TABLE POSITION> ANNEX II LIST OF PRODUCTS REFERRED TO IN ARTICLE 9 >TABLE POSITION> ANNEX III LIST OF PRODUCTS REFERRED TO IN ARTICLE 9 >TABLE POSITION> ANNEX IV LIST OF PRODUCTS REFERRED TO IN ARTICLE 9(2) >TABLE POSITION> ANNEX V LIST OF PRODUCTS REFERRED TO IN ARTICLE 9 >TABLE POSITION> ANNEX VI LIST OF PRODUCTS SUBJECT TO CONCESSIONS REFERRED TO IN ARTICLE 9(6) Table 1: Imports into the Community of the following goods originating in Israel shall be subject to the concessions set out below >TABLE POSITION> Table 2: Imports into Israel of the following goods originating in the Community shall be subject to the concessions set out below >TABLE POSITION> ANNEX VII INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY RIGHTS REFERRED TO IN ARTICLE 39 1. By the end of the third year after the entry into force of the Agreement, Israel shall accede to the following multilateral conventions on intellectual, industrial and commercial property rights to which Member States are parties or which are de facto applied by Member States:

The Association Council may decide that this paragraph shall apply to other multilateral conventions in this field.

LIST OF PROTOCOLS >TABLE POSITION> PROTOCOL 1 concerning the arrangements applicable to the importation into the Community of agricultural products originating in Israel 1. The products listed in the Annex, originating in Israel, shall be admitted for importation into the Community, according to the conditions contained hereafter and in the Annex.

For the quantities imported in excess of the quotas, the common customs duties shall, according to the product concerned, be applied in full or reduced, as indicated in column "C".

Should the volume of imports of one of the products exceed the reference quantity, the Community may, having regard to an annual review of trade flows which it shall carry out, make the product in question subject to a Community tariff quota, the volume of which shall be equal to the reference quantity. In that case, for quantities imported in excess of the quota, the common customs duty shall, according to the product concerned, be applied in full or reduced as indicated in column "C".

ANNEX >TABLE POSITION> PROTOCOL 2 concerning the arrangements applicable to the importation into Israel of agricultural products originating in the Community 1. The products listed in the Annex originating in the Community shall be admitted for importation into Israel according to the conditions contained herein and in the Annex.

Should the volume of imports of one of the products exceed the reference quantity, Israel may, having regard to an annual review of trade flows which it shall carry out, make the product in question subject to a tariff quota, the volume of which shall be equal to the reference quantity. In that case, for quantities imported in excess of the quota, the duty referred to in point 3 shall apply.

ANNEX >TABLE POSITION> PROTOCOL 3 concerning plant protection matters Without prejudice to the provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures annexed to the Agreement establishing the WTO, and in particular Articles 2 and 6 thereof, the Parties agree that from the entry into force of this Agreement: (a) on their mutual trade, the requirement for phytosanitary certification shall apply:

PROTOCOL 4 concerning the definition of the concept of "originating products" and methods of administrative cooperation

TITLE I

GENERAL PROVISIONS

Article 1Definitions

For the purposes of this Protocol: (a) "manufacture" means any kind of working or processing including assembly or specific operations; (b) "material" means any ingredient, raw material, component or part, etc., used in the manufacture of the product; (c) "product" means the product being manufactured, even if it is intended for later use in another manufacturing operation; (d) "goods" means both materials and products; (e) "customs value" means the value as determined in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994 (WTO Agreement on Customs Valuation); (f) "ex-works price" means the price paid for the product ex-works to the manufacturer in whose undertaking the last working or processing is carried out or to the person who arranged for the last working or processing to be carried outside the territories of the Parties provided the price includes the value of all the materials used, minus all internal taxes which are, or may be, repaid when the product obtained is exported; (g) "value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the territories concerned; (h) "value of originating materials" means the customs value of such materials as defined in subparagraph (g) applied mutatis mutandis; (i) "chapters" and "headings" means the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as "the Harmonised System" or "HS"; (j) "classified" refers to the classification of a product or material under a particular heading; (k) "consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice.

TITLE II

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2Origin criteria

For the purpose of implementing the Agreement and without prejudice to the provisions of Article 3 of this Protocol, the following products shall be considered as:

Article 3Bilateral cumulation

Article 4Wholly obtained products

Sea-going vessels, including factory ships on which the fish caught is worked or processed, shall be considered as part of the territory of the Community or of Israel provided that they satisfy the conditions set out in paragraph 2.

Article 5Sufficiently worked or processed products

These conditions indicate, for all products covered or not by the Agreement, the working or processing which must be carried out on the non-originating materials used in the manufacture of these products, and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list for that product, is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

Article 6Insufficient working or processing operations

The following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied: (a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations); (b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up; (c) (i) changes of packaging and breaking up and assembly of packages; (ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations;

Article 7Unit of qualification

Accordingly, it follows that: (a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification; (b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol.

Article 8Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 9Sets

Sets, as defined in general rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.

Article 10Neutral elements

In order to determine whether a product originates in the Community or in Israel it shall not be necessary to establish whether the electrical energy, fuel, plant and equipment as well as machines and tools used to obtain such product, or whether any goods, used in the course of production which do not enter and which were not intended to enter into the final composition of the product, are originating or not.

TITLE III

TERRITORIAL REQUIREMENTS

Article 11Principle of territoriality

The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in the Community or in Israel. For this purpose, the acquisition of originating status shall be considered as interrupted when goods which have undergone working or processing in the Party concerned have left the territory of this Party, except as provided in Articles 12 and 13.

Article 12Working or processing carried out outside one of the Parties

Article 13Reimportation of goods

Goods exported from the Community or Israel to a third country and subsequently returned, shall be considered as never having left the concerned Party if it can be demonstrated to the satisfaction of the customs authorities that: (a) the goods returned are the same goods as those exported; and (b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

Article 14Direct transport

Products originating in the Community or in Israel may be transported by pipeline across territory other than that of the Community or that of Israel.

Article 15Exhibitions

TITLE IV

DRAWBACK OR EXEMPTION

Article 16Prohibition of drawback of, or exemption from, customs duties

TITLE V

PROOF OF ORIGIN

Article 17General requirements

Article 18Procedure for the issue of a movement certificate EUR.1

These forms shall be completed in one of the languages in which the Agreement is drawn up, in accordance with the provisions of the domestic law of the exporting country. If they are handwritten, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

In these cases movement certificates EUR.1 shall be issued subject to the presentation of the proof of origin previously issued or made out. This proof of origin must be kept for at least three years by the customs authorities of the exporting State.

The issuing customs authorities shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

Article 19Movement certificates EUR.1 issued retrospectively

Article 20Issue of a duplicate movement certificate EUR.1

Article 21Replacement of certificates

Article 22Conditions for making out an invoice declaration

However, an approved exporter within the meaning of Article 23 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him.

Article 23Approved exporter

Article 24Validity of proof of origin

An invoice declaration shall be valid for four months from the date it was made out by the exporter and must be submitted within the said period to the customs authorities of the importing country.

Article 25Submission of proof of origin

Movement certificates EUR.1 and invoice declarations shall be submitted to the customs authorities of the importing country in accordance with the procedures applicable in that country. The said authorities may require a translation of a movement certificate EUR.1 or an invoice declaration. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.

Article 26Importation by instalments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of general rule 2(a) of the Harmonised System falling within Sections XVI and XVII or heading Nos 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 27Exemptions from formal proof of origin

Article 28Preservation of proof of origin and supporting documents

Article 29Discrepancies and formal errors

Article 30Amounts expressed in ecus

When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country.

If the goods are invoiced in the currency of another Member State of the Community the importing State shall recognise the amount notified by the country concerned.

For each successive period of five years, the amounts expressed in ecus and their equivalents in the national currencies of the States shall be reviewed by the Association Council on the basis of the exchange rates of the ecu as at the first working day in October in the year immediately preceding that five-year period.

When carrying out this review, the Association Council shall ensure that there will be no decrease in the amounts to be used in any national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in ecus.

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31Communication of stamps and addresses

The customs authorities of the Member States and of Israel shall provide each other, through the Commission of the European Communities, with specimen impressions of stamps used in their customs offices for the issue of EUR.1 certificates and with the addresses of the customs authorities responsible for issuing movement certificates EUR.1 and for verifying those certificates and invoice declarations.

Article 32Verification of proof of origin

They shall forward, in support of the request for subsequent verification, any documents and information that have been obtained suggesting that the information given on the movement certificate EUR.1 or the invoice declaration is incorrect.

Where the cumulation provisions of Article 3(2) and Article 18(4) were applied, the reply shall include a copy (copies) of the movement certificate(s) or invoice declaration(s) relied upon.

Article 33Dispute settlement

Where disputes arise in relation to the verification procedures of Article 32 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the Customs Cooperation Committee.

In all cases the settlement of disputes between the importer and the customs authorities of the importing State shall be under the legislation of the said State.

Article 34Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products.

Article 35Free zones

TITLE VII

CEUTA AND MELILLA

Article 36Application of the Protocol

Article 37Special conditions

TITLE VIII

FINAL PROVISIONS

Article 38Amendments to the Protocol

The Association Council may decide to amend the provisions of this Protocol.

Article 39Customs Cooperation Committee

Article 40Annexes

The Annexes to this Protocol shall form an integral part thereof.

Article 41Implementation of the Protocol

The Community and Israel shall each take the steps necessary to implement this Protocol.

Article 42Goods in transit or storage

The provisions of the Agreement may be applied to goods which comply with the provisions of this Protocol and which on the date of entry into force of the Agreement are either in transit or are in the Community or in Israel in temporary storage, in bonded warehouses or in free zones, subject to the submission to the customs authorities of the importing State, within four months of that date, of a certificate EUR.1 endorsed retrospectively by the competent authorities of the exporting State together with the documents showing that the goods have been transported directly.

ANNEX I INTRODUCTORY NOTES Preliminary remarks The rules established in the present list are only applicable to products covered by the Agreement.

Note 1 1.1. The first two columns in the list describe the product obtained. The first column gives the heading number, or chapter number, used in the Harmonised System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns a rule is specified in columns 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rule in columns 3 or 4 only applies to the part of that heading or chapter as described in column 2.

1.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of product in column 2 is therefore given in general terms, the adjacent rule in columns 3 or 4 applies to all products which, under the Harmonised System, are classified within headings of the chapter or within any of the headings grouped together in column 1.

1.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in column 3 or 4.

1.4. Where, for any entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 2 2.1. The working or processing required by a rule in column 3 has to be carried out only in relation to the non-originating materials used. The restrictions contained in a rule in column 3 likewise apply only to the non-originating materials used.

2.2. Where a rule states that "materials of any heading" may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression "manufacture from materials of any heading, including other materials of heading No...." means that only materials classified in the same heading as the product of a different description than that of the product as given in column 2 of the list may be used.

2.3. If a product made from non-originating materials which has acquired originating status during manufacture by virtue of the change of heading rule or its own list rule is used as a material in the process of manufacture of another product, then the rule applicable to the product in which it is incorporated does not apply to it.

For example::

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex-works price, is made from "other alloy steel roughly shaped by forging" of heading No 7224.

If this forging has been forged in the country concerned from a non-originating ingot then the forging has already acquired origin by virtue of the rule for heading No ex 7224 in the list. It can then count as originating in the value calculation for the engine regardless of whether it was produced in the same factory or another. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

2.4. The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer origin. Thus if a rule says that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not.

2.5. When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of ex Chapter 50 to Chapter 55 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other or both.

2.6. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also note 5.2 below in relation to textiles.) Example:

The rule for prepared food of heading No 1904 which specifically excludes the use of cereals or their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not produced from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular material specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage.

2.7. Where in a rule in the list two or more percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to.

Note 3 3.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres and is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, the term "natural fibres" includes fibres that have been carded, combed or otherwise processed but not spun.

3.2. The term "natural fibres" includes horsehair of heading No 0503, silk of heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of heading Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and the other vegetable fibres of heading Nos 5301 to 5305.

3.3. The terms "textile pulp", "chemical materials" and "paper-making materials" are used in the list to describe the materials not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

3.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings Nos 5501 to 5507.

Note 4