EU Delivers a Blow to Settlement Exports

3 November 2009 [Yeshiva World News] - In a ruling released last week, an advisor to the European Court of Justice in Luxembourg by Advocate-General Yves Bot ruled that products manufactured in “settlements” and PA (Palestinian Authority) autonomous areas are not entitled to customs benefits.

In this case, the ruling was made in reference to a shipment from the Soda Club and Brita Companies, products manufactured in Mishur Adumim, the industrial zone of Maale Adumim, viewed by the European community [and the United States] as “occupied territories”.

The items in question arrived in the Port of Hamburg, marked as “Israel” being the source of origin, but the ruling stated otherwise. While the goods received provisional customs benefits, pending an investigation into the origin, as is the practice with goods arriving from Israel, goods originating in the “West Bank”, Golan Heights, [previously Gaza] and the eastern capital are not are not viewed as originating in “Israel”.

Brita was ordered to pay the tariff as a result, but the company rejected the ruling, appealing to the Hamburg Finance Court. The recommendation to the court was to reject the Brita appeal and demand €20,000 in tariff fees. While the court has the option of rejecting the recommendation, this would be most unlikely and the enforcement of the “occupied territories” ruling will have a profound impact on exports originating from the areas mentioned, delivering a serious blow to the firms operating in those areas.

(Yechiel Spira – YWN Israel)