WRITTEN QUESTION P-1106/01

by John Cushnahan (PPE-DE) to the Commission

(28 March 2001)

Subject: EU-Israel Association Agreement

In its May 1998 Communication to the Council and the European Parliament, the Commission stated: Preferential access to Community markets for exports originating in Israeli settlements

in the West Bank and Gaza Strip and those from East Jerusalem and the Golan Heights contravene agreed rules of origin since these territories do not form part of the State of Israel under public international law. There are indications that these exports are taking place. The European Community will take steps to verify the accuracy of this information Should it be confirmed, such violations of rules should be brought to an end.

In September 1998 Israeli officials confirmed to the Commission that as a matter of official policy Israeli Customs was routinely certifying products wholly produced or substantially processed in Israeli settlements as originating in the State of Israel. After several cases of fraudulent imports of settlement products under preferences were uncovered by Member States' customs services, the Commission informed us that the interpretation of the territorial scope of application of the agreement adopted by Israel does not coincide with the interpretation accepted by the European Union. However, the Commission also assured us that the verification procedure for the origin of products makes it possible to determine whether a product may benefit from the right to preferential treatment even where there is a failure to co-operate in the determination of origin on the part of the third country concerned. After the Commission moved to coordinate a posteriori verifications by the Member States' customs services for a number of imports of settlement-produced goods, Israeli officials announced publicly that Israel would respond to the Member States' verification inquiries by reaffirming the originating status of the products concerned. Can Israel fail to co-operate in the determination of origin without violating an essential provision of its agreement with the EU? Does such a failure to co-operate encumber and diminish the capacity of the Member States' customs services to detect and prevent customs fraud? Does the Commission tolerate an inferior standard of customs fraud deterrence and prevention on the Member States' parts where Israeli exports of settlement products are concerned?

Answer given by Mr Patten on behalf of the Commission

(15 May 2001)

As the Honourable Member may know, the Union-Israel Association Agreement establishes a procedure for the verification of the proof of origin, whereby the customs authorities of the importing country return the certificate of origin to the customs authorities of the exporting country, if they have a reasonable doubt as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of Protocol 4 of the Agreement. The verification is carried out by the customs authorities of the exporting country. This process is presently taking place.

About 2000 certificates of origin have been sent back to Israel's customs authorities by Member State customs authorities. The Union-Israel Association Agreement foresees that Israel's customs authorities have up to 10 months to send an answer to Member States custom authorities. In case Israel customs authorities fail to answer or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities shall refuse entitlement to the preferences.

On the occasion of the first Association Council on 13 June 2000, the Union Presidency, in the official speech, expressed its particular attachment to the respect of the territorial coverage of the Association Agreement with Israel. The Commission, in full co-ordination with Member States, will ensure the respect of the Association Agreement.