Annexes to 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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Agreement on trade and cooperation between the European Community, of the one part, and the Palestinian Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, concerning the definition of the concept of "originating products" and methods of administrative cooperation

The Joint Committee,

Having regard to the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestinian Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, and in particular Article 39 of Protocol 3 thereto,

Whereas:

7. Article 15 (7) of Protocol 3 to the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestinian Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part , hereinafter "the Agreement", permits under certain conditions a drawback of, or exemption from customs duties or charges having an equivalent effect until 31 December 2009.

8. 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.

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

10. Protocol 3 to the Agreement should therefore be amended accordingly.

11. As the application period of Article 15 (7) expires on 31 December 2009, this Decision should apply from 1 January 2010,

HAS DECIDED AS FOLLOWS:

Article 1

Article 15 (7) of Protocol 3 to the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestinian Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, concerning the definition of the concept of "originating products" and methods of administrative cooperation is replaced by the following:

"7. Notwithstanding paragraph 1, the West Bank and the Gaza Strip may, except for products falling within Chapters 1 to 24 of the Harmonized System, apply arrangements for drawback of, or exemption from, customs duties or charges having an equivalent effect, applicable to non-originating materials used in the manufacture of originating products, subject to the following provisions :

(a) a 4 % rate of customs charge shall be retained in respect of products falling within Chapters 25 to 49 and 64 to 97 of the Harmonized System, or such lower rate as is in force in the West Bank and the Gaza Strip;

(b) a 8 % rate of customs charge shall be retained in respect of products falling within Chapters 50 to 63 of the Harmonized System, or such lower rate as is in force in the West Bank and the Gaza Strip;

The provisions of this paragraph shall apply until 31 December 2012 and may be reviewed by common accord."

Article 2

This Decision shall enter into force on the day of its adoption.

It shall apply from 1 January 2010.

Done at

For the Joint Committee

The President

[1] OJ L 187, 16.7.1997, p. 3

[2] OJ L 298, 13.11.2009, p. 1