Index

Protocol B - Rules of Origin

Annex I Introductory notes to the list in Annex II

Annex II List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

Annex III a Specimens of movement certificate EUR.1 and application for a movement certificate EUR.1

Annex III b Specimens of movement certificate EUR-MED and application for a movement certificate EUR-MED

Annex IV a Text of the invoice declaration

Annex IV b Text of the invoice declaration EUR-MED

Protocol C

Joint Declaration on the Cumulation of Rules of Origin

PREAMBLE

The Government of the State of Israel and the Government of the Republic of Bulgaria (hereinafter “the Parties”);

Reaffirming their commitment to the principles of market economy, which constitutes the basis for their relations;

Considering their common desire to participate actively in the process of international economic integration;

Expressing their readiness to co-operate in finding the means and ways for strengthening this process;

Considering the Europe Agreement for Association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, and the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the State of Israel, of the other part;

Resolved to this end to eliminate progressively the obstacles to substantially all their mutual trade, in accordance with the provisions of the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement establishing the World Trade Organization (WTO);

Convinced that this Agreement will create a new climate for their economic relations and, in particular, for the development of trade, investments and economic and technical co-operation;

Considering that no provision of this Agreement may be interpreted as exempting the Parties from their obligations under other international agreements, especially the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement establishing the World Trade Organization (WTO);

Have agreed as follows:

Article 1

Objectives

1. The Parties shall gradually establish a free trade area, during a transitional period ending at the latest on January 1, 2004, in accordance with the provisions of the present Agreement and in conformity with those of the GATT 1994, in particular Article XXIV of the GATT 1994 and the Understanding on the Interpretation of Article XXIV of the GATT 1994, and the Agreement establishing the WTO.

2. The objectives of the present Agreement are:

(a) to promote through the expansion of mutual trade the harmonious development of economic relations between the Parties;

(b) to provide fair conditions of competition for trade between the Parties;

(c) to contribute in this way, by removal of barriers to trade, to the harmonious development and expansion of world trade;

(d) to enhance co-operation between the Parties in areas which are of mutual interest to the Parties.

Chapter I

Industrial Products

Article 2

Scope

1. The provisions of this Chapter shall apply to industrial products originating in the State of Israel or in the Republic of Bulgaria.

2. For the purpose of this Agreement the term "industrial products" means products falling within Chapters 25 to 97 of the Harmonized Commodity Description and Coding System, with the exception of the products listed in Annex I.

Article 3

Basic Duties

1. The Customs Tariff of the Republic of Bulgaria shall be applied to the classification of goods imported into the Republic of Bulgaria . The Customs Tariffs of the State of Israel shall be applied to the classification of goods imported into the State of Israel.

2. For each product the basic duty to which successive reductions set out in this Agreement are to be applied shall be the most favoured nation duty applicable by the Parties on the day before the date of entry into force of this Agreement.

3. If after this date any tariff reduction is applied on an erga omnes basis in particular, reductions resulting from tariff agreements under the Uruguay Round of the GATT 1994 and the Agreement establishing the WTO, the reduced duties shall replace the basic duties under paragraph 2 from the date of application of the reduction.

4. The reduced duties calculated in accordance with paragraph 2 shall be applied rounded to the first decimal place or in case of specific duties, to the second decimal place.

5. The Parties shall communicate to each other their respective basic duties.

Article 4

Customs Duties on Imports

1. No new customs duties on imports shall be introduced, nor shall those already applied be increased, in trade between the Parties as from the date of entry into force of this Agreement.

2. Customs duties on imports applied in the Republic of Bulgaria on products originating in the State of Israel, other than those specified in Annex II, shall be abolished from the date of entry into force of this Agreement.

3. Customs duties on imports applied in the Republic of Bulgaria on products originating in the State of Israel, specified in Annex II, shall be progressively abolished in accordance with the timetable provided in that Annex.

4. Customs duties on imports applied in the State of Israel on products originating in the Republic of Bulgaria, other than those specified in Annex III, shall be abolished from the date of entry into force of this Agreement.

5. Customs duties on imports applied in the State of Israel on products originating in the Republic of Bulgaria, specified in Annex III, shall be progressively abolished in accordance with the timetable provided in that Annex.

Article 5

Charges Equivalent to Duties

1. No new charges having an effect equivalent to customs duties on imports shall be introduced in trade between the Parties.

2. All charges having an effect equivalent to customs duties on imports shall be abolished on the date of the entry into force of this Agreement.

Article 6

Fiscal Duties

The provisions of Article 4 shall also apply to customs duties of a fiscal nature.

Article 7

Customs Duties on Exports and Charges Having Equivalent Effect

1. No new customs duties on exports or charges having equivalent effect shall be introduced in trade between the Parties.

2. The Parties shall abolish between them on the date of entry into force of this Agreement all customs duties on exports and charges having equivalent effect.

Article 8

Quantitative Restrictions on Exports and Measures Having Equivalent Effect

1. No new quantitative restrictions on exports or measures having equivalent effect shall be introduced in trade between the Parties from the date of entry into force of this Agreement.

2. All quantitative restrictions on exports from the Parties and measures having equivalent effect shall be abolished on the date of the entry into force of this Agreement.

Article 9

Quantitative Restrictions on Imports and Measures Having Equivalent Effect

1. No new quantitative restrictions on imports or measures having equivalent effect shall be introduced, in trade between the Parties from the date of entry into force of this Agreement.

2. All quantitative restrictions and measures having equivalent effect on imports shall be abolished by the Parties on the date of entry into force of this Agreement.

Chapter II

Agricultural Products

Article 10

Scope

1. The provisions of this Chapter shall apply to agricultural products originating in the State of Israel or in the Republic of Bulgaria.

2. For the purpose of this Agreement the term “agricultural products” means products falling within Chapters 1 to 24 of the Harmonized Commodity Description and Coding System, and the products listed in Annex I.

Article 11

Exchange of Concessions

1. The Parties declare their readiness to foster, in so far as their agricultural policies allow, the harmonious development of trade in agricultural products, and to discuss this issue periodically within the Joint Committee.

2. In pursuance of this objective, the Parties shall grant each other the concessions specified in Protocol A, in accordance with provisions of this Chapter and those laid down in that Protocol.

3. Taking account of:

- the role of agriculture in their economies,

- the development of trade in agricultural products between the Parties,

- the particular sensitivity of the agricultural products,

- the rules of their agricultural policies,

- the results of the multilateral trade negotiations under the GATT and of the WTO;

- the Parties shall examine within the framework of the Joint Committee the possibilities of granting each other further concessions and improving the existing concessions.

Article 12

Concessions and Agricultural Policies

1. Without prejudice to the concessions granted under Article 11, the provisions of this Chapter shall not restrict in any way the pursuance of the respective agricultural policies of the Parties or application of any measures under such policies, including the implementation of the provisions of the Agreement on Agriculture negotiated under the auspices of the GATT 1994 and the Agreement establishing the WTO.

2. Each Party shall notify the other Party of changes in their respective agricultural policies pursued or measures applied which may affect the conditions of agricultural trade among them as provided for in this Agreement. On the request of a Party prompt consultations within the Joint Committee shall be held to examine the situation.

Article 13

Specific Safeguards

Notwithstanding other provisions of this Agreement and, in particular Article 20, and given the particular sensitivity of the agricultural products, if imports of products originating in a Party, which are subject to concessions granted under this Agreement, cause serious disturbances to the markets of the other Party, the Party concerned shall immediately enter into consultations within the Joint Committee with a view to finding an appropriate and mutually acceptable solution. Pending such solution, the Party concerned may take measures it deems necessary, immediately notifying the other Party of the measures taken.

Article 14

Sanitary and Phytosanitary Measures

The Parties shall apply their sanitary and phyto-sanitary

measures in accordance with the WTO Agreement on Sanitary and Phyto-sanitary measures and other relevant agreements of the WTO.

measures in an arbitrary, unjustifiable or discriminatory way or as a disguised restriction on trade between them.

Chapter III

General Provisions

Article 15

Technical Barriers to Trade

1. The rights and obligations of the Parties related to standards or technical regulations and the respective measures shall be defined by the WTO Agreement on Technical Barriers to Trade .

2. The Parties shall cooperate and exchange information in the field of standardization, metrology, conformity assessment and accreditation, with the aim of eliminating technical barriers in trade.

3. Each Party, upon a request by the other Party, shall submit information on particular individual cases of standards, technical rules or similar measures. The Parties shall cooperate for the purpose of eliminating possible barriers in bilateral trade.

Article 16

Internal Taxation

1. The Parties to this Agreement shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products originating in the Parties.

2. Products exported to the territory of one of the Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them.

Article 17

Customs Unions, Free Trade Areas and Frontier Trade

1. This Agreement shall not prevent the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade which are in accordance with the provisions of Article XXIV of the GATT 1994 and with the Understanding on the Interpretation of Article XXIV of the GATT 1994.

2. Upon request, consultations between the Parties shall take place within the Joint Committee in order for the Parties to inform each other on agreements establishing customs unions or free trade areas and, where required, on other major issues related to their respective trade policy with third countries.

Article 18

Structural Adjustment

1. Exceptional measures of limited duration which derogate from the provisions of Article 4 may be taken by either of the Parties in the form of increased customs duties.