Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED ARAB EMIRATES AND THE GOVERNMENT OF THE STATE OF ISRAEL
Preamble
PREAMBLE
The Government of the United Arab Emirates (hereinafter referred to as the "UAE") and the Government of the State of Israel (hereinafter referred to as "Israel");
hereinafter being referred to individually as a "Party"and collectively as "the Parties";
RECOGNISING the strong economic ties between the Parties and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
BUILDING on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994 (WTO Agreement);
COMMITTED to reducing obstacles to trade;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
RESOLVED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services for their mutual benefit;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Comprehensive Economic Partnership Agreement (hereinafter referred to as "this Agreement");
AIMING to establish a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
HAVE AGREED, in pursuit of the above, to conclude the following Agreement:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Section A. General Definitions
Article 1.1. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
Agreement on Agriculture means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 and its Interpretative Notes, contained in Annex 1A to the WTO Agreement;
Customs Authority refers to the Israel Customs Authority of the Israel Tax Authority of the Ministry of Finance in the case of Israel, and to the Federal Authority for Identity, Citizenship, Customs and Port Security in the case of the UAE;
customs duty means any duty or a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994;
(b) antidumping or countervailing or safeguard duties that are applied pursuant to a Party's law, in accordance with the WTO Agreement, including the GATT 1994, the Anti-Dumping Agreement, the SCM Agreement, and the Safeguards Agreement; or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered.
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
days means calendar days;
GATS means the General Agreement on Trade in Services, contained in Annex 1B of the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A of the WTO Agreement;
good or goods of a Party means domestic products as these are understood in the GATT 1994, or any other good that the Parties may agree, and includes any originating good of a Party;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, Chapter Notes, and subheading notes;
Joint Committee means the Joint Committee established in accordance with Article 17.1 (Establishment of the Joint Committee);
measure covers any measure whether in form of a law, regulation, rule, procedure, decision, administrative action, practice, or any other form;
originating means qualifying under the rules of origin set out in Chapter 3 (Rules of Origin);
person means a natural person or juridical person;
Safeguards Agreement means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;
sanitary or phytosanitary measure means any measure referred in paragraph 1 of Annex A of the SPS Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement;
SME means a small and medium-sized enterprise, including a micro enterprise;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement;
tariff classification means the classification of a good or material under a chapter, heading or subheading of the Harmonized System;
territory means:
(a) for Israel,
the territory of the State of Israel;
(b) for the UAE, the terms "United Arab Emirates" or "UAE" when used in a geographical sense, means the territory of the United Arab Emirates which is under its sovereignty as well as the area outside the territorial water, airspace and submarine areas over which the United Arab Emirates exercises, in accordance with international law and the law of United Arab Emirates, sovereign and jurisdictional rights including the Exclusive Economic Zone and the mainland under its jurisdiction in respect of any activity carried on in its water, sea bed, subsoil, in connection with the exploration for or the exploitation of natural resources by virtue of its law and international law;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement;
WTO means the World Trade Organization;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994.
Section B. Initial Provisions
Article 1.2. Establishment of a Free Trade Area
The Parties to this Agreement, consistent with Article XXIV of the GATT 1994, and Article V of the GATS, hereby establish a free trade area.
Article 1.3. Objective
The objective of this Agreement, as elaborated more specifically in its provisions, is to eliminate obstacles to trade in, and facilitate the movement of goods and services between the Parties, thereby promoting conditions of fair competition and substantially increasing investment opportunities in the free trade area.
Article 1.4. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which both Parties are party.
2. In the event of any inconsistency between this Agreement and the WTO Agreement, this Agreement prevails, except as otherwise provided in this Agreement.
3. In the event of any inconsistency between this Agreement and any agreement other than the WTO Agreement to which both Parties are a Party, the Parties shall, upon request, consult with each other with a view to finding a mutually satisfactory solution.
Article 1.5. Extent of Obligations
Each Party shall take such reasonable measures as may be available to it to ensure that the necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance by the regional, municipal and local governments and authorities.
Article 1.6. Reference to other Agreements
1. When this Agreement refers to or incorporates by reference other agreements or legal instruments in whole or in part, those references include related footnotes, interpretative notes, and explanatory notes that are binding on both Parties.
2. When this Agreement incorporates by reference other agreements or international legal instruments in whole or in part, except when the reference affirms existing rights, this reference also includes, as the case may be, a successor agreement to which both Parties are party or an amendment binding on both Parties.
Article 1.7. Transparency
Each Party shall ensure that any law, regulation, procedure or administrative ruling of general application in respect of a matter covered by this Agreement is promptly published or made available in a manner that enables any interested person and the other Party to become acquainted with it.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party; and
Import Licensing Agreement means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement.
Article 2.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Section A. National Treatment
Article 2.3. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretive notes, and to this end Article III of GATT 1994 and its interpretive notes are incorporated into and made part of this Agreement, mutatis mutandis.
2. Paragraph 1 does not apply to the measures set out in Annex 2A
Article B. Reduction or Elimination of Customs Duties
Article 2.4. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any new customs duty, on an originating good of the other party.
2. Except as otherwise provided in the Agreement, upon the entry into force of this Agreement, each Party shall reduce or eliminate its customs duties on originating goods of the other Party in accordance with its Schedule to Annex 2B or 2C.
3. If at any moment, after the entry into force of this Agreement, a Party reduces its applied most-favoured-nation (hereinafter referred to as "MFN") customs duty, that duty rate shall apply to originating goods of the other Party if, and for as long as, it is lower than the customs duty rate calculated in accordance with its Schedule included in Annex 2B or 2C.
4. Upon the request of either Party, the Parties shall consult to consider accelerating or broadening the scope of the reduction or elimination of customs duties set out in their request of either Party, the Parties shall consult to consider accelerating or broadening the scope of the reduction or elimination of customs duties set out in their Schedules included in Annexes 2B and 2C. Following such consultations, a decision by the Joint Committee on the acceleration or broadening of the scope of the reduction or elimination of a customs duty on a good shall supersede any duty rate or staging category determined pursuant to the respective Party's Schedule included in Annex 2B or 2C for that good, in accordance with Article 17.2.2 (c) (Functions of the Joint Committee).
5. For greater certainty:
(a) nothing in this Agreement shall prohibit a Party from unilaterally accelerating, or broadening the scope of the elimination of customs duties set out in its Schedule in Annex 2B or 2C on originating goods;
(b) a Party may raise a customs duty up to the level established in its Schedule to Annex 2B or 2C following any unilateral reduction referred to in subparagraph (a); or
(c) a Party may maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO.
Article 2.5. Classification of Goods
1. The classification of goods in trade between the Parties shall be that set out in the respective tariff nomenclature of each Party in conformity with the Harmonized System (HS) and its amendments.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annexes 2B or 2C due to periodic amendments and transposition of the Harmonized System (HS).
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the transposition of the schedules of tariff commitments shall be carried out in accordance with the methodologies and procedures adopted by the Subcommittee on Trade in Goods established under Article 2.18.
4. Each Party shall ensure that the transposition of its schedule of tariff commitments under paragraph 3 does not afford less favourable treatment to an originating good of the other Party than that set out in its Schedule in Annex 2B or 2C.
5. A Party may introduce new tariff splits, provided that the preferential conditions applied in the new tariff splits are not less preferential than those applied originally.
Article 2.6. Valuation of Goods
For the purpose of determining the customs value of goods traded between the Parties, the provisions of Article VII of the GATT 1994, its interpretative notes, and the Customs Valuation Agreement shall apply mutatis mutandis.
Section C. Special Regimes
Article 2.7. Temporary Admission of Goods
1. Each Party shall, in accordance with its respective domestic law, grant temporary admission free of customs duties for the following goods imported from the other Party, regardless of their origin:
(a) professional and scientific equipment, including their spare parts, and including equipment for the press or television, software, and broadcasting and cinematographic equipment, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display, demonstration or use at theaters, exhibitions, fairs, or other similar events;
(c) commercial samples and advertising films and recordings;
(d) goods admitted for sports purposes;
(e) containers and pallets that are used for the transportation of equipment or used for refilling; and
(f) goods entered for completion of processing.
2. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs Authority, extend the time limit for temporary admission beyond the period initially fixed.
3. Neither Party may condition the temporary admission of a good referred to in paragraph 1, other than to require that the good:
(a) not be sold or leased while in its territory;
(b) be accompanied by a security in an amount no greater than the custom duties and any other tax imposed on imports that would otherwise be owed on entry or final importation, releasable on exportation of the good;
(c) be capable of identification when exported;
(d) be exported in accordance with the time period granted for temporary admission in accordance with its domestic law related to the purpose of the temporary admission;
(e) not be admitted in a quantity greater than is reasonable for its intended use; or
(f) be otherwise admissible into the importing Party's territory under its law.
4. If any condition that a Party imposes under paragraph 3 has not been fulfilled, that Party may apply the customs duty and any other charge that would normally be owed on the importation of the good and any other charges or penalties provided for under its law.
5. Each Party through its Customs Authority shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, such procedures shall provide that when such a good accompanies a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
6. Each Party shall permit a good temporarily admitted under this Article to be exported through a customs port other than that through which it was admitted in accordance with its customs procedures.
7. Each Party shall provide that the importer of a good admitted under this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs Authority of the importing Party before the good can be so destroyed.
Article 2.8. Goods Re-Entered after Repair or Alteration
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters its territory in accordance with its laws and procedures after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in the territory from which the good was exported, except that a customs duty or other taxes may be applied to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
3. For purposes of this Article, "repair" or "alteration" does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially different good;
(b) transforms an unfinished good into a finished good; or
(c) results in a change of the classification at a six-digit level of the Harmonized System (HS).
Article 2.9. Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials
Each Party, in accordance with its respective domestic law, shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party; or
(b) such advertising materials be imported in packets, that each contain no more than one copy of each such material, and that neither the materials nor the packets form part of a larger consignment.
Section D. Non-Tariff Measures
Article 2.10. Non-Tariff Measures
1. The Parties shall ensure that non-tariff measures are not prepared, adopted or applied with a view to creating unnecessary obstacles to trade with the other Party.
2. If a Party considers that a non-tariff measure of the other Party is an unnecessary obstacle to trade, that Party may present such a non-tariff measure for review by the Subcommittee on Trade in Goods. The Subcommittee on Trade in Goods shall review the measure with a view to securing a mutually agreed solution to the matter.
Article 2.11. Import and Export Restrictions
1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994 and its interpretative notes.
To this end, Article XI of GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. In the event that a Party introduces a measure that imposes a prohibition or restriction otherwise justified under the relevant provisions of the WTO Agreement with respect to the exportation of goods to the other Party, the Party imposing the measure, shall publish the measure in a timely manner. Upon the request of the other Party, it shall enter into consultation with the aim of resolving any problem that may arise due to that measure.
3. Paragraphs 1 and 2 do not apply to the measures set out in Annex 2A.
Article 2.12. Import Licensing
1. Neither Party may adopt or maintain a measure that is inconsistent with the Import Licensing Agreement. (1)
(a) Promptly after the entry into force of this Agreement, each Party shall notify the other Party of its existing import licenses, if any. The notification shall:
(i) include the information specified in Article 5 of the Import Licensing Agreement; and
(ii) be without prejudice as to whether the import license is consistent with this Agreement.
(b) Before applying any new or modified import license, a Party shall publish it, to the extent required by its law, on an official government internet site. To the extent practicable, the Party shall do so at least 21 days before it takes effect.
2. Neither Party may apply an import license to a good of the other Party unless the Party has complied with the requirements of paragraph 2 with respect to that import license. Where exceptional and critical circumstances as provided in Article XX of GATT 1994 require immediate action that makes prior notification impossible, the Party may apply it forthwith, as necessary to deal with the situation and shall inform the other Party immediately thereof.
Article 2.13. Export Subsidies
1. Neither Party shall adopt or maintain any export subsidy on any good destined for the territory of the other Party in accordance with the SCM Agreement and the Agreement on Agriculture.
2. Notwithstanding paragraph 1, the Parties reaffirm that a Party may maintain an export subsidy on an agricultural good only in accordance with its commitments made in the WTO Ministerial Conference Decision on Export Competition adopted in Nairobi on 19 December 2015, including the elimination of scheduled export subsidy entitlements for agricultural goods.
Article 2.14. Administrative Fees and Formalities
1. Each Party shall ensure that all fees and charges imposed in connection with importation and exportation shall be consistent with their obligations under Article VIII:1 of GATT 1994 and its interpretive notes, which are hereby incorporated into and made a part of this Agreement, mutatis mutandis.
2. Each Party shall make available and maintain through the internet a current list of the fees and charges it imposes in connection with importation or exportation.