Article II

THE JOINT ECONOMIC COMMITTEE

1. Both parties will establish a Palestinian - Israeli Joint Economic Committee ( hereinafter - the JEC ) to follow up the implementation of this Protocol and to decide on problems related to it that may arise from time to time. Each side may request the review of any issue related to this Agreement by the JEC.
   
   
2. The JEC will serve as the continuing committee for economic cooperation envisaged in Annex III of the Declaration of Principles.
   
   
3. The JEC will consist of an equal number of members from each side and may establish sub - committees specified in this Protocol.
   
   

A sub - committee may include experts as necessary.

4. The JEC and its sub-committees shall reach their decisions by agreement and shall determine their rules of procedure and operation, including the frequency and place or places of their meetings.
   
   

Article III

IMPORT TAXES AND IMPORT POLICY

5. The import and customs policies of both sides will be according to the principles and arrangements detailed in this Article.
   
   
1. The Palestinian Authority will have all powers and responsibilities in the sphere of import and customs policy and procedures with regard to the following:
   
   
1. Goods on List Al, attached hereto as Appendix I locally - produced in Jordan and in Egypt particularly and in the other Arab countries, which the Palestinians will be able to import in quantities agreed upon by the two sides up to the Palestinian market needs as estimated according to para 3 below.
   
   
2. Goods on List A2, attached hereto as Appendix II, from the Arab, Islamic and other countries, which the Palestinians will be able to import in quantities agreed upon by the two sides up to the Palestinian market needs as estimated according to para 3 below.
   
   

2. The import policy of the Palestinian Authority for Lists A1 and A2 will include independently determining and changing from time to time the rates of customs, purchase tax, levies, excises and other charges, the regulation of licensing requirements and procedures and of standard requirements. The valuation for custom purposes will be based upon the GATT 1994 agreement as of the date it will be introduced in Israel, and until then - on the Brussels Definition of Valuation ( BDV ) system. The classification of goods will be based on the principles of "the Harmonized Commodity Description and Coding System". Concerning imports referred to in Article VII of this Protocol ( Agriculture ), the provisions of that Article will apply.

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