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
Date: 1996-07-25
Institutions: European Commission
Subjects: Israel, citrus fruit, import policy, import price, trade agreement (EU)

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 

1 

I 

Proposal  for  a 

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 
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. 

Regulation  (EC) No 1981/94 is hereby amended as follows: 

Article 3 

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 

Sir, 

B.  Letter 

from 

Israel 

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. 
Israel 

For the Government  of 

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 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 

(REFUNDS/INTERVENTION) 
- NATIONAL  ADMINISTRATION 
-OTHER 

REVENUE 
- OWN RESOURCES OF THE EC 
(fcjBVffiS/CUSTOMS  DUTIES) 

- NATIONAL 

PERIOD OF 12 
MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR 
(96) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR 
(97) 
(ECU  million) 

1998 
ECU million 

1999 
ECU million 

2000 
ECU million 

2001 
ECU million 

(*) 

ESTIMATED EXPENDITURE 
ESTIMATED REVENUE 

(*) 

(*) 

(*) 

(*) 

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. 

' 

5.0. 

5.1. 

5.0.1. 
5.1.1. 

5.2. 

6.0. 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CHAPTER OF THE CURRENT BUDGET? 

YliS/NO 

6.1. 

6.2. 

6.3. 

CAN  THE  PROJECT  BE  FINANCED  BY TRANSFER  BETWEEN  CHAPTERS  OF THE  CURRENT 
BUDGET? 

IS A SUPPLEMENTARY  BUDGET  NECESSARY? 

WILL FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

YKS/V'O 

YES/MO 

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 

Office for Official Publicatioas of the European Communities 

L-2985 Luxembourg