1 COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 25.07.1996 
(JOM(96) 403 tïnal 
96/0202 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
on the conclusion of an Agreement in the form of an 
exchange of letters between the European Community and the 
State of Israel on the adjustment of the regime for imports 
into the European Community of oranges 
originating in Israel 
and amending Council Regulation (EC) No 1981/94 
(presented by the Commission) 

Explanatory Memorandum 
The Association Agreement between the EU and Israel, signed on 
20 November 1995, as well as the Interim Agreement, signed on 18 
December 1995, which entered into force on 1 January 1996, did 
not contain any provisions regarding the new regime applied at 
the import of oranges into the Community. 
The European Community and the State of Israel acknowledged in 
an exchange of letters on the implementation of the results of 
the Uruguay Round, which forms part of the Agreement, the 
necessity of continuing negotiations on this question. This 
exchange of letters stated that both parties should agree on "an 
adequate and acceptable entry price, which will enable the 
importation of 200,000- tonnes of Israeli oranges, a figure which 
will imply a reduction of 30% from the actual tariff quota for 
oranges from Israel". The Community has so far agreed with 
Morocco a reduced entry price for oranges within certain 
conditions. It is the intention of the Community to restrict this 
special entry price to the Mediterranean partners of the 
Community. 
Consultations have taken place between Israel and the Community 
and it has been agreed that 200,000 tonnes of Israeli oranges 
shall be imported into the Community each season, free of ad 
valorem duties. Within this quota, reduced entry prices have been 
agreed upon for the period of 1 December until 31 May of each 
season. 
The provisions of this Agreement shall commence on 1 July 1996. 
This Agreement is contained in an exchange of letters (attached). 
The implementation of the Agreement with Israel requires a 
modification of Council Regulation (EC) No 1981/94. In order to 
ensure timely implementation and for reasons of efficiency, the 
approval of the agreement and the modifications to the Council 
regulation are contained in the same legal text. 
The Commission herewith recommends this Agreement to the Council 
for adoption. 
i 
I i Proposal for a 
1 COUNCIL REGULATION TEC) 
on the conclusion of an Agreement in the form of an 
exchange of letters between the European Community and the 
State of Israel on the adjustment of the regime for imports 
into the European Community of oranges 
originating in Israel 
I and amending Council Regulation (EC) No 1981/94 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
and in particular Article 113 in conjunction with the first 
sentence of Article 228 (2) thereof, 
Having regard to the proposal from the Commission, 
Whereas, in the context of the Uruguay Round of multilateral 
trade negotiations the import regime for oranges has been 
changed; 
Whereas the exchange of letters on the implementation of the 
results of the Uruguay Round which forms part of the Association 
Agreement signed on 20 November 1995 and of the Interim 
Agreement between the State of Israel and the European 
Community1, which was signed on 18 December 1995 and which 
entered into force on 1 January 1996, provides that the import 
regime for oranges originating in Israel will be agreed upon 
between the European Community and Israel at a later stage; 
Whereas an agreement has been reached on certain adjustments of 
the import regime for oranges from Israel; 
Whereas this Agreement should now be approved; 
Whereas Council Regulation (EC) no 1981/94 of 25 July 19942, 
opening and providing for the administration of Community tariff 
quotas for certain products originating in Algeria, Cyprus, 
Egypt, Israel, Jordan, Malta, Morocco, the Occupied Territories, 
Tunisia, and Turkey, and providing detailed rules for extending 
and adapting these tariff quotas, as last amended by Commission 
Regulation (EC) No 1099/96 , should be modified to implement the 
new regime for imports into the European Community of oranges 
originating in Israel, as provided for in the above-mentioned 
Agreement, with effect from 1 July 1996; 
1 OJ No L 71 of 20.3.1996, p. 145 
'OJ No L 199 of 2.8.1994, p.l. 
;OJ No L 146 of 20.6.1996, p. 8 
HAS ADOPTED THIS REGULATION: 
Article 1 
The Agreement in the form of an exchange of letters between the 
European Community and the State of Israel on the adjustment of 
the regime for imports into the European Community of oranges 
originating in Israel is hereby approved on behalf of the 
European Community. 
The text of the Agreement is attached to this Regulation. 
Article 2 
The President of the Council is hereby authorized to designate 
the person empowered to sign the Agreement so as to bind the 
Community. 
Article 3 
Regulation (EC) No 1981/94 is hereby amended as follows: 
1) In annex II, in the table relating to order No 09.1323 
(fresh oranges originating in Israel), the quota volume 
of 290 000 tonnes shall be replaced by 200 000 
tonnes and the description under column 4 shall read 
"Fresh oranges : 1 July to 30 June". 
At the end of annex II the 
replaced by the following: footnote shall be 
"(2) Within this quota, the agreed entry price beyond 
which the specific additional duty provided in the 
Community's list of concessions to the WTO is reduced 
to zero, is: 
-273 ECU/tonne from 1 December 1996 to 31 May 1997 
-271 ECU/tonne from 1 December 1997 to 31 May 1998 
-268 ECU/tonne from 1 December 1998 to 31 May 1999 
-266 ECU/tonne from 1 December 1999 to 31 May 2000 
-264 ECU/tonne from 1 December 2000 to 31 May 2001 
and from 1 December to 31 May of the following 
years. 
If the entry price for a consignment is up to 2,4,6 or 
8% lower than the agreed entry price, the specific 
customs' duty shall be equal respectively to 2,4,6 or 
8% of this agreed entry price. If the entry price for 
a consignment is less than 92% of the agreed entry 
price, the specific customs' duty bound within the WTO 
shall apply." 
Article 4 
The Commission shall adopt detailed rules for the application of 
this regulation, in accordance with the procedure laid down in 
Article 33 of Regulation (EEC) No 1035/724, as last amended by 
Regulation (EC) No 1363/955. 
Article 5 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European Communities. 
It shall apply from 1 July 1996. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, 
For the Council 
The President 
4 OJ No L 118 of 20.S.1972, p.l 
•'' OJ No L 132 of 16.6.1995, p; 8 
AGREEMENT 
in the form of an exchange of letters between the European 
Community and the State of Israel on the adjustment of the regime 
for imports into the European Community of oranges originating 
in Israel 
A. Letter from the Community 
Sir, 
I have the honour to refer to the negotiations between the 
Israeli authorities and the European Commission on the regime 
applied at the import of oranges into the Community originating 
in Israel. 
These negotiations were conducted on the basis of an exchange of 
letters on the implementation of the new WTO rules following the 
Uruguay Round, which forms part of the Association Agreement, 
signed on 20 November 1995, and of the Interim Agreement, signed 
on 18 December 1995, between Israel and the European Community. 
By derogation to Protocol 1 of the said Agreements, it has been 
agreed that for fresh oranges falling within the code ex 080510: 
1. From 1 July to 30 June of each season 200,000 tonnes of 
oranges originating in Israel are exempted from ad valorem duties 
upon import into the EC. Ad valorem duties shall be reduced by 
60% in respect of quantities imported in excess of this quota. 
2. Within this tariff quota, the specific duties will be reduced 
to zero during the period of 1 December to 31 May if the 
following entry price levels are respected : 
1996/1997: 273 Ecu/tonne 
1997/1998: 271 Ecu/tonne 
1998/1999: 268 Ecu/tonne 
1999/2000: 266 Ecu/tonne 
2000/2001: and following 264 Ecu/tonne. 
3. If the entry price of a particular lot is up to 2%, 4%, 6% or 
8% below the entry price agreed upon under paragraph 1, the 
specific duty shall be 2%, 4%, 6% or 8% of the agreed entry price 
as appropriate. 
4. If the entry price of a particular lot is below 92% of the 
agreed entry price; the specific duty bound within the WTO shall 
apply. 
This Agreement shall enter into force upon signature of both 
parties. It shall be applicable as from 1 July 1996. 
I should be obliged if you would confirm that your Government is 
in agreement with the contents of this letter. 
Please accept, Sir, the assurance of my highest consideration 
For the Council of the European Union 
B. Letter from Israel 
Sir, 
I have the honour to acknowledge receipt of your letter of 
today's date which reads as follows: 
"I have the honour to refer to the negotiations between the 
Israeli authorities and the European Commission on the regime 
applied at the import of oranges into the Community 
originating in Israel. 
These negotiations were conducted on the basis of an exchange 
of letters on the implementation of the new WTO rules 
following the Uruguay Round, which forms part of the 
Association Agreement, signed on 20 November 1995, and of 
the Interim Agreement, signed on 18 December 1995, between 
Israel and the European Community. 
By derogation to Protocol 1 of the said Agreements, it has 
been agreed that for fresh oranges falling within the code ex 
080510: 
1. From 1 July to 30 June of each season 200.000 tonnes of 
oranges originating in Israel are exempted from ad valorem 
duties upon import into the EC. Ad valorem duties shall be 
reduced by 60% in respect of quantities imported in excess of 
this quota. 
2. Within this tariff quota, the specific duties will be 
reduced to zero during the period of 1 December to 31 May if 
the following entry price levels are respected : 
1996/1997: 273 Ecu/tonne 
1997/1998: 271 Ecu/tonne 
1998/1999: 268 Ecu/tonne 
1999/2000: 266 Ecu/tonne 
2000/2001: and following 264 Ecu/tonne. 
3. If the entry price of a particular lot is up to 2%, 4%, 6% 
or 8% below the entry price agreed upon under paragraph 1, 
the specific duty shall be 2%, 4%, 6% or 8% of the agreed 
entry price as appropriate. 
4. If the entry price of a particular lot is below 92% of the 
agreed entry price; the specific duty bound within the WTO 
shall apply. 
This Agreement shall enter into force upon signature of both 
parties. It shall be applicable as from 1 July 1996. 
I should be obliged if you would confirm that your Government 
is in agreement with the contents of this letter." 
I have the honour to confirm that my Goverment is in agreement 
with the contents of your letter. 
Please accept, Sir, the assurance of my highest consideration. 
For the Government of Israel 
1-
FINANCIAL STATEMENT 
BUDGET HEADING: 120 (CUSTOMS DUTIES) APPROPRIATIONS: 
ECU 14.281 million 
TITLE: 
Proposal for a Council Regulation on the conclusion of an Agreement in the form of an exchange of letters between the 
European Community and the State of Israel on the adjustment of the regime for imports in the European Community 
of oranges originating in and imported from Israel and amending Council Regulation (EC) No 1981/94 of 25 July 1994 
LEGAL BASIS: 
Article 113 of the Treaty 
4. AIMS OF PROJECT: 
Reduction in the quota of oranges originating in Israel and in entry price levels up to marketing year 2000/2001. 
FINANCIAL IMPLICATIONS PERIOD OF 12 
MONTHS 
(ECU million) CURRENT 
FINANCIAL 
YEAR 
(96) 
(ECU million) FOLLOWING 
FINANCIAL 
YEAR 
(97) 
(ECU million) 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(fcjBVffiS/CUSTOMS DUTIES) 
- NATIONAL (*) 
1998 
ECU million 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE (*) 1999 
ECU million 
(*) 2000 
ECU million 
(*) 2001 
ECU million 
(*) 
5.2. METHOD OF CALCULATION: 
(*) In the past five marketing years, the average price of oranges originating in Israel has been ECU 352/t. This 
sum is well in excess of the prices proposed in the Regulation. Assuming no change in the situation, the 
financial implications should be negligible. ' 
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? YliS/NO 
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? YKS/V'O 
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? YES/MO 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO 
OBSERVATIONS: 
8 
ESSN 0254-1475 
COM(96) 403 final 
DOCUMENTS 
EN 03 11 
Catalogue number : CB-CO-96-395-EN-C 
ISBN 92-78-07655-4 
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