Agreement in the form of an Exchange of Letters between the European Community and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Palestinian Authority Interim Association Agreement
Date: 2005-02-26
Institutions: European Community, Palestine Liberation Organisation
Subjects: Palestine, agricultural trade, association agreement (EU), import (EU), interim agreement (EU), liberalisation of trade, protocol to an agreement, revision of an agreement, tariff exemption, trade agreement (EU)

L 2/6

EN

Official Journal of the European Union

5.1.2005

AGREEMENT

in the form of an Exchange of Letters between the European Community and the Palestine
Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and
the Gaza Strip concerning reciprocal liberalisation measures and the replacement of Protocols 1 and
2 to the EC-Palestinian Authority Interim Association Agreement

Sir,

A. Letter from the Community

I have the honour to refer to the negotiations which took place under Article 12 of the Euro-Mediterranean
Interim Association Agreement 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 (hereinafter the Palestinian Authority), of the other part (hereinafter the Interim Association
Agreement), in force since 1 July 1997, which states that the Community and the Palestinian Authority shall
progressively establish greater liberalisation, inter alia, of their trade in agricultural products of interest to
both Parties.

These negotiations were held in accordance with the provisions of Article 14, which stipulates that, from 1
January 1999, the Community and the Palestinian Authority shall examine the situation in order to
determine the measures to be applied by the Community and the Palestinian Authority from 1 January
2000 in accordance with the objective set out in said Article 12.

On the conclusion of the negotiations, the two Parties agreed to the following:

1. Protocols 1 and 2 to the Interim Association Agreement and their annexes shall be replaced by Protocols

1 and 2 and their annexes appearing in Annexes I and II to this Exchange of Letters;

2. the Agreement in the form of an Exchange of Letters between the Community and the Palestinian
Authority annexed to the Interim Association Agreement, relating to Protocol 1 and concerning
imports into the Community of fresh cut flowers and flower buds falling within subheading 0603 10
of the Common Customs Tariff, is hereby repealed;

3. no later than in 2007, the Community and the Palestinian Authority will assess the situation with a view
to determining the liberalisation measures to be applied by the Community and the Palestinian Authority
from 1 January 2008, in accordance with the objective laid down in Article 12 of the Interim Asso-
ciation Agreement.

The provisions of this Agreement in the form of an Exchange of Letters shall apply from 1 January 2005.

I would be grateful if you could inform me of the agreement of your Government to the above.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

5.1.2005

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Official Journal of the European Union

L 2/7

Sir,

B. Letter from the Palestinian Authority

I have the honour to acknowledge receipt of your letter of today’s date, worded as follows:

‘I have the honour to refer to the negotiations which took place under Article 12 of the Euro-
Mediterranean Interim Association Agreement 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 (hereinafter the Palestinian Authority), of the other part (hereinafter the
Interim Association Agreement), in force since 1 July 1997, which states that the Community and the
inter alia, of their trade in
Palestinian Authority shall progressively establish greater liberalisation,
agricultural products of interest to both Parties.

These negotiations were held in accordance with the provisions of Article 14, which stipulates that,
from 1 January 1999, the Community and the Palestinian Authority shall examine the situation in
order to determine the measures to be applied by the Community and the Palestinian Authority from 1
January 2000 in accordance with the objective set out in said Article 12.

On the conclusion of the negotiations, the two Parties agreed to the following:

1. Protocols 1 and 2 to the Interim Association Agreement and their annexes shall be replaced by
Protocols 1 and 2 and their annexes appearing in Annexes I and II to this Exchange of Letters;

2. the Agreement in the form of an Exchange of Letters between the Community and the Palestinian
Authority annexed to the Interim Association Agreement, relating to Protocol 1 and concerning
imports into the Community of
fresh cut flowers and flower buds falling within subheading
0603 10 of the Common Customs Tariff, is hereby repealed;

3. no later than in 2007, the Community and the Palestinian Authority will assess the situation with a
view to determining the liberalisation measures to be applied by the Community and the Palestinian
Authority from 1 January 2008, in accordance with the objective laid down in Article 12 of the
Interim Association Agreement.

The provisions of this Agreement in the form of an Exchange of Letters shall apply from 1 January
2005.

I would be grateful

if you could inform me of the agreement of your Government to the above.’

I have the honour to inform you of the agreement of the Palestinian Authority to the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Palestinian Authority

L 2/8

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Official Journal of the European Union

5.1.2005

ANNEX I

PROTOCOL 1

concerning the arrangements applicable to imports into the Community of agricultural products originating in
the West Bank and the Gaza Strip

1. The products listed in the Annex, originating in the West Bank and the Gaza Strip shall be admitted for importation

into the Community, according to the conditions contained hereafter and in the Annex.

(a) Customs duties are eliminated or reduced as indicated in column ‘a’.

(b) For certain products, for which the Common Customs Tariff provides the application of an ad valorem duty and a
specific duty, the rates of reduction, indicated in columns ‘a’ and ‘c’, only apply to the ad valorem duty. However,
for the product corresponding to the subheading 1509 10, the duty reduction applies to the specific duty.

(c) For certain products, customs duties are eliminated within the limit of the tariff quotas listed in column ‘b’ for each
of them; the tariff quotas shall apply on an annual basis from 1 January to 31 December, unless otherwise
specified.

(d) For the quantities imported in excess of the quotas, the common customs duties are, according to the product

concerned, applied in full or reduced, as indicated in column ‘c’.

2. For certain products, the exemption of customs duties is granted in the framework of reference quantities as indicated

in column ‘d’.

Should the volume of imports of one of these products exceed the reference quantity, the Community, having regard
to an annual review of trade flows which it shall carry out, may make the product in question subject to a Community
tariff quota, the volume of which shall be equal to the reference quantity. In that case, for quantities imported in excess
of the quota, the common customs duty is, according to the product concerned, applied in full or reduced as indicated
in column ‘c’.

3. For the first year of application, the volumes of the tariff quotas and the reference quantities shall be calculated as a
pro rata of the basic volumes, taking into account the period elapsed before the date of entry into force of this
Protocol.

4. For some products listed in the Annex, the volume of the tariff quota is increased twice, on the basis of the volume
indicated in column ‘e’. The first increase takes place on the date when each tariff quota is opened for the second time.

ANNEX TO PROTOCOL 1

Reduction of
the MFN
customs duty
(%) (3)

Tariff quota
(t, unless
otherwise
indicated)

Reduction of
the MFN
customs duty
beyond current
or possible
tariff quota
(%) (3)

Reference
quantity
(t, unless
otherwise
indicated)

Specific provisions

b

500

2 000

a

100

100

100

100

100

c

0

0

60

60

60

d

e

point 4 — yearly increase of
250 t

point 4 — yearly increase of
250 t

2 000

3 000

CN Code (1)

Description (2)

0409 00 00

Natural honey

ex 0603 10

Cut flowers and flower buds,
fresh

0702 00 00

Tomatoes, fresh or chilled, from
1 December to 31 March

ex 0703 10

Onions, fresh or chilled, from
15 February to 15 May

0709 30 00

Aubergines (eggplants), fresh or
chilled, from 15 January to 30
April

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Official Journal of the European Union

L 2/9

Reduction of
the MFN
customs duty
(%) (3)

Tariff quota
(t, unless
otherwise
indicated)

Reduction of the
MFN customs
duty beyond
current or
possible tariff
quota
(%) (3)

Reference
quantity
(t, unless
otherwise
indicated)

Specific provisions

a

b

c

d

e

1 000

300

25 000

500

800

10 000

100

100

100

100

100

100

40

80

60

60

80

80

100

500

0

100

100

100

100

100

100

100

100

1 000

2 000

60

60

80

40

0

50

0

80

point 4 — yearly increase of
500 t

point 4 — yearly increase of
500 t

CN Code (1)

Description (2)

ex 0709 60

Fruits of the genus Capsicum or
of the genus Pimenta, fresh or
chilled:

0709 60 10

Sweet peppers

0709 60 99

Other

0709 90 70

Courgettes, fresh or chilled,
from 1 December to end of
February

ex 0709 90 90

0710 80 59

0711 90 10

0712 31 00
0712 32 00
0712 33 00
0712 39 00

Wild onions of the species
Muscari comosum, fresh or
chilled, from 15 February to 15
May

Fruits of the genus Capsicum or
Pimenta, other than sweet
peppers, uncooked or cooked
by steaming or boiling in water,
frozen

Fruits of the genus Capsicum or
Pimenta, other than sweet
peppers, provisionally preserved
but unsuitable in that state for
immediate consumption

Mushrooms, wood ears (Auri-
cularia spp.), jelly fungi (Tremella
spp.) and truffles, dried

ex 0805 10

Oranges, fresh

ex 0805 20

Mandarins (including tangerines
and satsumas); clementines,
wilkings and similar citrus
hybrids, fresh

0805 40 00

Grapefruit

ex 0805 50 10

Lemons (Citrus limon, Citrus
limonum), fresh

0806 10 10

Fresh table grapes, from 1
February to 14 July

0807 19 00

Melons (excluding water-
melons), fresh, from 1
November to 31 May

0810 10 00

Fresh strawberries, from 1
November to 31 March

0812 90 20

Oranges, provisionally
preserved, but unsuitable in that
state for immediate
consumption

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Official Journal of the European Union

5.1.2005

Reduction of
the MFN
customs duty
(%) (3)

Tariff quota
(t, unless
otherwise
indicated)

Reduction of the
MFN customs
duty beyond
current or
possible tariff
quota
(%) (3)

Reference
quantity
(t, unless
otherwise
indicated)

Specific provisions

d

e

point 4 — yearly increase of
500 t

b

2 000

a

100

100

100

100

c

80

0

80

80

CN Code (1)

Description (2)

0904 20 30

Fruits of the genus Capscium or
of the genus Pimenta, other than
sweet peppers, dried, neither
crushed or ground

1509 10

Virgin olive oil

2001 90 20

2005 90 10

Fruits of the genus Capsicum,
other than sweet peppers or
pimentos, prepared or preserved
by vinegar or acetic acid

Fruits of the genus Capsicum,
other than sweet peppers or
pimentos, prepared or preserved
otherwise than by vinegar or
acetic acid, not frozen

(1) CN codes corresponding to Regulation (EC) No 1789/2003 (OJ L 281, 30.10.2003, p. 1).
(2) Without prejudice to the rules for the interpretation of the combined nomenclature, the description of the products is deemed to be indicative only, the preferential
scheme being determined, for the purposes of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined
by application of the CN code and corresponding description taken together.

(3) Duty reduction applies only to ad valorem customs duties. However, for the product corresponding to the subheading 1509 10, the duty reduction applies to the specific

duty.

5.1.2005

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Official Journal of the European Union

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ANNEX II

PROTOCOL 2

concerning the arrangements applicable to imports into the West Bank and the Gaza Strip of agricultural
products originating in the Community

1.

2.

3.

4.

The products listed in the Annex originating in the Community shall be admitted for importation into the West
Bank and the Gaza Strip according to the conditions contained herein and in the Annex.
Import duties on imports are either eliminated or reduced to the level indicated in column ‘a’, within the limit of the
annual tariff quota listed in column ‘b’, and subject to the specific provisions indicated in column ‘c’.

For the quantities imported in excess of the tariff quotas, the general customs duties applied to third countries shall
apply, subject to the specific provisions indicated in column ‘c’.

For the first year of application, the volumes of the tariff quotas and the reference quantities shall be calculated as a
pro rata of the basic volumes, taking into account the period elapsed before the date of entry into force of this
Protocol.

Specific
provisions

c

ANNEX TO PROTOCOL 2

CN Code

Description

0102 90 71

Live bovine animals, of a weight exceeding 300
kg, for slaughter, other than heifers and cows

0202 30 90

Meat of bovine animals, boneless excluding fore-
quarters, ‘compensated’ quarters, crop, chuck and
blade and brisket cuts, frozen

0206 22 00

Edible livers of bovine animals frozen

0406

Cheese and curd

0407 00 19

Poultry eggs for hatching, other than those of
turkeys or geese

1101 00 15

Flour of common wheat and spelt

2309 90 99

Other preparations of a kind used in animal
feeding

Duty
(%)

Tariff quota
(t, unless
otherwise
indicated)

a

0

0

0

0

0

0

2

b

300

200

100

200

120 000
pieces

13 000

100