The Government of the State of Israel and the European Commission have reached an arrangement concerning technical issues in the implementation of Protocol 4 of the Association Agreement.

This arrangement is without prejudice to the positions of the Parties, concerning the application of the Association Agreement.

This arrangement sets to determine that for goods exported from Israel under the Association Agreement covered by EUR-1 Movement Certificates, Limited Invoice Declarations or Authorized Exporter Declarations, the name and postal code number of the city, village or industrial zone where production conferring originating status has taken place shall be indicated.

It is hereby clarified that unlike the Israeli position, the European Union does not regard areas that were brought under Israeli administration since 1967 as included in the Association Agreement, for the purposes of preferential tariff treatment.

2. Legal References

• The Euro-Mediterranean Agreement Establishing an Association Between the European Communities and their Members States, of the One Part and the State of Israel, of the Other Part ("The Association Agreement").
• The Arrangement Between the EU and the Government of Israel Concerning the Technical Components to be Included in the Implementation of Protocol 4 to the Euro-Mediterranean Agreement Establishing an Association Between the European Communities and their Members States, of the One Part and the State of Israel, of the Other Part.

3. Persons Authorized to Act in Accordance to these Regulations

• Director General - Director of Israel Tax Authority and/or Sr. Deputy Director General for Foreign Trade.
• Authorized Persons at Directorate - Sr. Chief Coordinator of Export and Rules of Origin or any person authorized by him.
• Authorized Persons at Customs Houses - Customs Collector, Deputy Customs Collector, Director of Export Unit, or any person authorized by them.

4. Definitions

1. "Location" - City, village, or industrial zone, including postal code.
2. "Postal Code" - Identifying number for the location, as defined by the Postal Authority of Israel.
3. "Protocol" - Protocol 4 of the Association Agreement.
4. "Preference Document" - EUR-1 Movement Certificate, Limited Invoice
   Declaration or Authorized Exporter Declaration.
5. Locations that according to the EU's position are not included in Paragraph 83
   of the Association Agreement for the purposes of preferential Tariff treatment" - locations that were brought under Israeli administration since 1967.
6. Products Wholly Obtained
7. Products wholly obtained, as defined in Article 4 of the Protocol and which are exported to the EU within the framework of the Association Agreement - the place where the products were wholly obtained as defined in Article 4(1) of the Protocol, shall be determined as the location conferring original status.
8. Products which are exported to the EU within the framework of the Association Agreement will be considered by the EU as wholly obtained as defined in Article 4 to the Protocol, when the conditions set out in Article 4 of the Protocol are fulfilled, subject to the following:
9. Products detailed in Article 4(1) (a)-(j) of the Protocol, originating in locations that according to the EU's position are not included in Paragraph 83 of the Association Agreement for the purposes of preferential Tariff treatment, will be considered as non-originating for the purposes of the application of Article 4 (1) (k) to the Protocol, when used for the manufacturing of products in other locations in Israel.

6. Sufficiently Worked or Processed Products

Products which are not wholly obtained as defined in Article 4 to the Protocol and which are exported to the EU within the framework of the Association Agreement, will be considered by the EU as having undergone sufficient processing, when the conditions set out in the list in Annex II of the Protocol are fulfilled and subject to the following:

1. Materials originating in locations that according to the EU's position are not
   included in Paragraph 83 of the Association Agreement for the purposes of preferential Tariff treatment, will be considered as non-originating for the purposes of fulfilling the conditions set out in the list in Annex II to the Protocol, when used for the manufacturing of products in other locations in Israel.
2. The working or processing carried out in locations that according to the EU's
   position are not included in Paragraph 83 of the Association Agreement for the purposes of preferential Tariff treatment, will be considered for the purposes of fulfilling Article 12 of the Protocol, as work or processing carried out outside one of the Parties, as defined in this Article.

7. Indication of Location in Preference Documents