Annexes to COM(2000)283 - Community position on an amendment to Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation attached to the Association Agreement with the PLO for the benefit of the Palestinian Authority of the West Bank and Gaza Strip - Main contents
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| dossier | COM(2000)283 - Community position on an amendment to Protocol 3 concerning the definition of the concept of "originating products" and ... |
|---|---|
| document | COM(2000)283  |
| date | June 19, 2000 |
EURO-MEDITERRANEAN INTERIM ASSOCIATION AGREEMENT
on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part
Draft
JOINT COMMITTEE DECISION No ... OF ...
amending Protocol 3 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 Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, signed in Brussels on 24 February 1997, and in particular Article 37 of Protocol 3 thereto,
Whereas:
(1) Article 14 of Protocol 3 stipulates that from 1 January 2000 non-originating materials used in the manufacture of products originating in the Community or in the West Bank and Gaza Strip must not be subject to drawback of or exemption from customs duties of any kind.
(2) The Palestinian Authority asked for the suspension of the entry into force of the provisions of Article 14 of Protocol 3 to be extended for six years.
(3) This request is motivated by the economic development problems which the West Bank and Gaza Strip are facing and the need to step up existing efforts to promote industrial development in those territories.
(4) The West Bank and Gaza Strip should not be treated less favourably than the neighbouring Arab countries,
HAS DECIDED AS FOLLOWS:
Article 1
Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation is amended as follows:
replace Article 14(6) with the following:
"6. The provisions of this Article shall apply from 1 January 2006 and may be reviewed by common accord."
Article 2
This Decision shall enter into force on 1 January 2000.
Done at Brussels, [...]
For the Joint Committee
The Chairman
FINANCIAL STATEMENT
1. Title of operation
Proposal for an amendment of Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation attached to the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the Community and the PLO for the benefit of the Palestinian Authority of the West Bank and Gaza Strip.
2. Budget heading(s) involved
[Chapter 12, article 120]
3. Legal basis
Article 133 of the Treaty.
4. Description of operation
4.1 General objective
To allow the West Bank and Gaza Strip to keep in force the suspension of the prohibition on customs duty drawback and exemption.
5. Financial impact
Where the Community is concerned, maintaining the suspension of the non-drawback provisions means not collecting customs duty on third-country materials incorporated in the Community into finished products for export to the West Bank and Gaza Strip, where they are eligible for preferential treatment (the converse would also apply, but would have no own-resources implications).
Overall Community exports to the West Bank and Gaza Strip were worth ECU 67 421 050 in 1998 and EUR 61 515 750 in 1999.
The main exports were machinery of Chapter 84 (ECU 23 187 000 in 1998 and EUR 15 226 140 in 1999) and vehicles of Chapter 87 (ECU 19 804 000 in 1998 and EUR 25 211 470 in 1999).
The rules of origin which apply to these goods allow third-country components to be used up to a level of 40% of the value of the finished product.
The duty levied on the third-country components (40%) incorporated into the goods of the Chapters in question averaged 2% for Chapter 84 and 6% for Chapter 87.
The own-resources shortfall would be caused mostly by the goods of these Chapters, and is put at:
1998:
- ECU 185 496 [2% of (40% of 23 187 000)]
- ECU 475 296 [6% of (40% of 19 804 000)]
1999:
- EUR 121 809 [2% of (40% of 15 226 140)]
- EUR 605 075 [6% of (40% of 25 211 470)]
The conclusion is that the own-resources shortfall is likely to be around EUR 1 000 000 in each of the next six years.