"Store" or "Business" - a location where beverage containers are sold;

"Commissioner" - employee of the government appointed by the Minister in accordance with the instructions of paragraph 9.;

"Importer" - one who imports full beverage containers, excluding personal consumption;

"Producer" - one who produces full beverage containers or one who is filling empty beverage containers either by himself or by others;

"Beverage Container" - a container in which beverage is marketed, either full or empty, made of any material excluding -

Bags;

Beverage containers made primarily of paper or of carton;

Beverage containers whose capacity is less than 0.1 liters or whose capacity is 1.5 liters or more;

"Recycling" - as defined in the Law of Collection and Disposal of Garbage for Recycling, - 1993,

"Consumer" - a person who purchases or collects containers not for business purposes;

"Fund" - the Fund for Preservation of Cleanliness in accordance with paragraph 10 of the Law for the Preservation of Cleanliness - 1984;

"Minister" - the Minister of the Environment;

2. (a) A deposit will be paid for each full beverage container in accordance with this law.

(b) The amount of the deposit will be 0.25 NIS for each single container unless the Minister instructed differently.

Producer or importer have the right to fix a higher amount as a deposit than the one fixed in the above paragraph (b) or than the one that the Minister instructed in accordance with this law.

No one will produce, or market imports, of beverage containers which require a deposit in accordance with the instructions of this law, unless the container is printed, stamped or tagged, in a recognized manner, with the words "A DEPOSIT OF O.25 INS IS REQUIRED".

A producer, importer and store will collect a deposit for each full beverage container, which they sell.

A business where drinks are being sold for consumption within its premises will not be obliged to Collect a deposit.

Anyone purchasing a full beverage container will pay a deposit to the producer, importer, business or store. The payment of the deposit will be made at the time of payment for the beverage container.

(a) A consumer who has an empty beverage container marked in accordance with paragraph 3 is entitled to return it to a business where beverage containers of that sort are sold.

(b) A store as defined in (a) is required to accept an empty beverage container returned to it by a consumer and will refund the deposit for it.

2 -

Notwithstanding the instructions of paragraph (a) & (b) -

A store, whose floor space is less than 28 square meters, will not be required to accept empty beverage containers or refund the deposit for it.

A business as said in paragraph 4. (b) is not required to accept from a consumer an empty marked beverage container and refund its deposit unless it was purchased there and a deposit was charged.

(a) A store that has empty beverage containers has the right to return them to a business, producer or importer from whom the full beverage containers were purchased.

(b) A business, producer or importer will accept empty beverage containers from a store in accordance with paragraph (a) above, and will refund the deposit for them.

(a) Producers and importers will transfer the net balance of the amounts collected for deposit to the

Fund in accordance with the instructions issued by the Minister and approved by the Minister of the Treasury.

In case a producer or an importer is charging a higher rate of deposit in accordance with the instructions of paragraph 2.(c), the net balance will be calculated is if the deposit charged and refunded was the amount fixed in paragraph 2.(b) or as the minister instructed.

As long as the Minister did not issue specific instructions in accordance with paragraph (a) - the net balance will be transferred to the fund at the same time and together with the report in accordance to the instructions of paragraph 10.(a).

The Minister will appoint an employee from his office as a commissioner for the purpose of collecting the amounts due to the Fund in accordance with the instructions of this law.

(a) A producer or an importer will report to the Fund, once every 6 months, the quantity of containers, for which they collected or were required to collect a deposit.

(b) If a producer or an importer fails to act as per paragraph (a) above, or if the commissioner has reasonable grounds to believe that the report is inaccurate - the commissioner will have the right, subject to an opportunity given to the producer or importer to make their arguments - to make a reasoned decision, to the best of his judgement, as to what will be the amounts that the producer or importer will have to transfer to the Fund.

(c) The employees of the Fund and the commissioner will not disclose the data and information that was collected according to this law, nor will they use it for any purpose whatsoever, except for the purpose of the implementation of this law.

The Commissioner's decisions taken in accordance to this law will be subject to the instructions of paragraph 16 with the necessary adaptations.

(A list of crimes, punishments and procedures of their execution, connected with the implementation of this law).

20. Fines collected in accordance to this law will be transferred to the Fund.

The amounts which will be collected in the Fund in accordance with the instructions of this law will be managed in a separate account, and will be used for the encouragement of recycling beverage containers as well as for any other purpose that will serve the implementation of this law and the execution of its instructions, all as the Minister will instruct, with the recommendations of the Fund and subject to the approval of the Economic Affairs Committee of the Knesset.

(a) The Minister has the right, by way of issuing a regulation, to oblige a producer, an importer, a store and a business to collect, dispose of or recycle empty beverage containers which are at their disposal in accordance to this law. Regulations dealing with refillable containers will be issued in consent with the Minister of health.

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The Minister may, in consent with the Minister of the Interior, by way of regulations, to order a local municipality to carry certain duties in regard to collection and disposal of empty beverage containers.

23.(a) The Minister is in charge of the execution of this law and is authorized to issue regulations in connection with any subject for the implementation of this law..

(1) Fixing different deposit amounts to different containers. The amount of the deposit may be determined taking into account the possibilities of recycling of the beverage containers;

(2) Updating the amounts of the deposit.

(3) Changes in the phrasing of the marking as said in paragraph 3, as well as its size, manner and shape of the marking;

(4) Additional circumstances to those listed in paragraph 6 (c), for the granting of exemptions;

(5) Ways as how to report in accordance to paragraph 10.(a) as well as changes in the periods of reporting as instructed in same paragraph. Regulations issued in accordance with this law will have to be approved by the Committee for Economic Affairs of the Knesset.

First regulations as per paragraphs 22 and 23.(a)(5) will be presented for approval to the Economic Affairs Committee of the Knesset within nine months from the day this law was publicized

25.(a) This law will come into effect on the 2nd of April 2000.

(b) The Minister will be entitled, subject to the approval of the Committee for Economic Affairs of the Knesset, to extend this date to not later than 31st of July 2000.

26. This law will be publicized in the RESHOOMOT (the official government paper) within 45 days of it being adapted by the Knesset.

* * *

The above text is a free translation from the official Hebrew text and has no legal significance.

Kibutz Galuiot St. 41/1

Herzelia, 46246 ISRAEL

Tel. 972 9 9550735

Fax. 972 9 9586084

E-mail: inov@iol.co.il

KNESSET9907