Schedule XLII - ISRAEL. PART I - MOST-FAVOURED-NATION TARIFF SECTION I - Agricultural Products SECTION I - A Tariffs - 1 -

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1 2201 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter not flavoured; ice and snow Mineral waters and aerated waters Other: Ice and snow Other Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading No Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured Other 2203 Beer made from malt Containing up to 2% alcohol Other, containing up to 3.7% alcohol, marketed in a reusable bottle with a capacity of at least 45 cl. and sold or cleared from Customs before January 1st, Other Wine of fresh grapes, including fortified wines; grape must other than that of heading No Sparkling wine: - 1 -

2 Champagne type wines Other Other wine; grape must with fermentation prevented or arrested by the addition of alcohol: In containers holding 2 liters or less Other Other grape must 2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances In containers holding 2 liters or less Other Other fermented beverages (for example, cider, perry, mead) Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength Ethyl alcohol or neutral spirits, undernatured of a strength of 80% or higher: Which the Dir.-Gen. of the Ministry of Health confirms will be used for medical purposes in hospitals or clinics of Kupat Holim, Magen David Adom or zje Ministry of Health if used as aforesaid (cond.) - 2 -

3 Which the Dir.-Gen. of the Ministry of Health confirms willbe used for the production of medical drugs, if used as aforesaid (cond.) If proved to the satisfaction of the Director that the alcohol will be used for the production of vinegar and if used as aforesaid (cond.) Which the Dir.-Gen. of the Minsitry of Defence confirms will be used as aforesaid (cond.) To be used in the production of an alcoholic beverage by a licensed manufacturer for the production of alcoholic beverages, and to be used solely as aforesaid (cond.) Other Ethyl alcohol and other spirits, denatured, of any strength: Denatured alcohol, assuming that the denaturisation process takes place in a licensed distillery using materials as specified in the specifications for denatured alcohol -15 and on condition that the denaturisation of the mixture by weight is according to the said specifications Other - 3 -

4 2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirit, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages Compound alcoholic preparations of a kind used for the manufacture of beverages: The price of which per cl exceeds the Other Spirits attained by distilling grape wine or grape marc: Containing less than 17% alcohol volume the The price of which per cl exceeds the equivalent in shekels $ Other Whiskies Rum and Tafia: Containing less than 17% alcohol volume the The price of which per cl exceeds the equivalent of $ Other Gin and Geneva: Containing less than 17% alcohol volume the proce of which per cl does not exceed the - 4 -

5 The price of which per cl exceeds the Other Other Containing less than 17% alcohol volume the The price of which per cl exceeds the Other Vinegar and substitutes for vinegar obtained from acetic acid