Considerations on COM(2010)166 - EU position within the Joint Committee created by the Association Agreement with the Palestinian Liberation Organisation (PLO) for the benefit of the Palestinian Authority on the amendment of Article 15 (7) of Protocol 3 to that Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation

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1. Protocol 3[1] to the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the PLO, for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, hereinafter 'the Agreement', as amended by Decision No 1/2009 of the EC-PLO Joint Committee of 24 June 2009[2] concerns the definition of the concept of 'originating products' and methods of administrative cooperation.

2. Article 15 of Protocol 3 provides for a general prohibition of drawback of, or exemption from customs duties on any non-originating materials used in the manufacture of originating products. However, paragraph 7 of that Article provides that a drawback or exemption may be applied until 31 December 2009 under certain conditions.

3. In order to ensure clarity, long term economic predictability and legal certainty for economic operators, the parties to the Agreement have agreed to prolong the application of Article 15 (7) with effect as from 1 January 2010 for a period of three years.

4. Moreover, the applicable rates in West Bank and the Gaza Strip should be adjusted on the basis of the current rates applied in the EU.

5. In accordance with Article 39 of Protocol 3, the Joint Committee established by the Agreement, should decide to amend the provisions of that Protocol.

6. The European Union should therefore take position in the Joint Committee as set out in the attached draft Decision.