2. The import policy of the Palestinian Authority for Lists Al 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.
   
   

2. For the purposes of para 2 ( a ) above, the Palestinian market needs for 1994 will be estimated by a Subcommittee of experts. These estimates will be based on the best available data regarding past consumption, production, investment and external trade of the Areas. The Subcommittee will submit its estimate within three months from the signing of the Agreement. These estimates will be reviewed and updated every six months by the Subcommittee, on the basis of the best data available regarding the latest period for which relevant data are available, taking into consideration all relevant economic and social indicators. Pending an agreement on the Palestinian market needs, the previous period's estimates adjusted for population growth and rise in per - capita GNP in the previous period, will serve as provisional estimate.
   
   
3. The Palestinian Authority will have all powers and responsibilities to independently determine and change from time to time the rates of customs, purchase taxes; levies, excises and other charges on the goods on List B, attached hereto as Appendix III, of basic food items and other goods for the Palestinian economic development program, imported by the Palestinians to the Areas.
   
   
1. With respect to all goods not specified in Lists A1, A2 and B, and with respect to quantities exceeding those determined in accordance with paras 2 ( a ) & 3 above ( hereinafter - the Quantities ), the Israeli rates of customs, purchase tax, levies, excises and other charges, prevailing at the date of signing of the Agreement, as changed from time to time, shall serve as the minimum basis for the Palestinian Authority. The Palestinian Authority may decide on any upward changes in the rates on these goods and exceeding quantities when imported by the Palestinians to the Areas.
   
   
2. With respect to all goods not specified in Lists A1 and A2, and with respect to quantities exceeding the Quantities, Israel and the Palestinian Authority will employ for all imports the same system of importation, as stipulated in para 10 below, including inter alia standards, licensing, country of origin, valuation for customs purposes etc.
   
   

4. Each side will notify the other side immediately of changes made in rates and in other matters of import policy, regulations and procedures, determined by it within its respective powers and responsibilities as detailed in this Article. With regard to changes which do not require immediate application upon decision, there will be a process of advance notifications and mutual consultations which will take into consideration all aspects and economic implications.
   
   
5. The Palestinian Authority will levy VAT at one rate on both locally produced goods and services and on imports by the Palestinians ( whether covered by the three Lists

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