 The EU customs authorities are then able to discern the exact origin and provide preferential treatment only to goods from Israel proper, giving "de facto" meaning to the EU policy of non-recognition of the Territories as part of the State of Israel

The 2010 ruling of the European Court of Justice in the "Brita" case confirmed that products originating in the West Bank do not qualify for preferential customs treatment under the EC–Israel Agreement, and that contrary assertions by Israeli authorities are not binding upon EU customs authorities.In its reasoning, the ECJ relied on the presence of two, distinct and equal Association agreements, one with Israel, applying to the "territory of the State of Israel", and one with the PLO, applying to the territory of the West Bank and the Gaza Strip, and on the general principle of customary international law that an obligation cannot be imposed on a third party without its consent.The Court concluded that the EC–Israel Agreement may not be interpreted in such a way as to compel the Palestinian authorities to waive their right to exercise the competence conferred upon them by virtue of the EC–PLO Agreement and, in particular, to refrain from exercising the right to issue customs documents providing proof of origin for goods manufactured in the West Bank and the Gaza Strip.