CELEX: 51996PC0403
Language: en
Date: 1996-07-25
Title: 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

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)
 ---pagebreak---  ---pagebreak---                      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
 ---pagebreak--- 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
 ---pagebreak--- 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 footnote              shall be
           replaced by the following:
           "(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."
 ---pagebreak---                             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
 ---pagebreak---                             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
 ---pagebreak---                            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-
 ---pagebreak---        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               CURRENT              FOLLOWING
                                                                   MONTHS                 FINANCIAL              FINANCIAL
                                                                                             YEAR                   YEAR
                                                                                              (96)                   (97)
                                                                 (ECU million)           (ECU million)          (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             1999              2000              2001
                                                              ECU million      ECU million        ECU million       ECU million
5.0.1. ESTIMATED EXPENDITURE
5.1.1. ESTIMATED REVENUE                                            (*)              (*)               (*)                (*)
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
 ---pagebreak---                                                                   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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