Products under TQs*

Member: 

Basic information

1

Outline of the system

The import licensing system is regulated primarily by:

Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedules 3­10 and 13; for purposes of MFN tariff quota management, under the GATT and the Free Trade Area Agreements (FTAs).

These Orders establish the list of goods subject to import licensing. The third Order is administered by the Israeli Tax Authority at the Israeli Ministry of Finance, except allocation of quotas which is administered by the Ministry of Economy and Industry.

2

Product coverage

Israeli Customs Tariff and Exemptions and Purchase Tax on Goods Order of 2017, Schedules 3­10 and 13, regulates the non­automatic licensing of GATT and FTA MFN tariff quotas.

Nature of licensing

Automatic

3

If Automatic, administrative purpose

Non-Automatic

4

If Non-Automatic, description of the notified Non-Automatic Licensing regime

5

Products under restriction as to the quantity or value of imports

Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedules 3­10 and 13: Import licenses are required for imports of agricultural products and fresh food for quotas management purposes.

6

Questions for products under restriction as to the quantity or value of imports

See Answers 6.1-6.11.

7

The system applies to products originating from which country?

The systems mentioned above apply to goods originating in and coming from all WTO Member countries and FTA partners.

8

Expected duration of licensing procedure

Eligibility of applicants

12

Is there a system of registration of persons or firms permitted to engage in importation?

13

What persons or firms are eligible to apply for a licence?

Any registered firm is eligible to apply for licenses.

14

Is there a registration fee?

In some specific areas, there is a registration fee.

15

Is there a published list of authorized importers?

In some specific areas, there are published lists of authorized importers.

Contact point for information on eligibility

16

Ministry/Authority

Import Policy, Ministry of Economy and Industry

17

Address

5 Bank Israel St. Jerusalem 91036

18

Telephone

+972 74 7502417

19

Fax

+972 74 7502337

20

E-mail address

22

Contact officer

Mr. Anwar Hilf

Submission of an application

23

Administrative body(ies) for submission of an application

Please see attached list of administrative bodies for submission of applications.

Documentation requirements

24

What information is required in applications?

Sample application form attached for an Import license under the Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedules 3-10 and 13 for quotas management purposes.

Administrative bodies.pdf
25

What documents is the importer required to supply with the application?

There are no standard documents that apply for all products.

Window of submission of an application

26

How far in advance of importation must application for a licence be made?

27

Are there any limitations as to the period of the year during which application for licence can be made? If so, explain

Issuing the license

28

Can a licence be granted immediately on request?

29

Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence

30

Which administrative body is responsible for approving application of licences?

31

Must the applications be passed on to other organs for visa, note or approval?

32

Are there any other conditions attached to the issue of a licence?

In some products there is an additional requirement for compliance with other conditions, usually for reasons of protecting human lives and health, and safety.

Fees and other administrative charges

33

Is there any licensing fee or administrative charge?

For most goods there are only standardization tests. In addition, there is a licensing fee or administrative charge in some specific areas.

34

What is the amount of the fee or charge?

The amount of the various fees relies on the nature of the goods.

35

Is there any deposit or advance payment required associated with the issue of licences?

No.

36

Amount or rate?

37

Is it refundable?

38

What is the period of retention?

39

What is the purpose of this requirement?

Refusal of an application

40

Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?

None.

41

Are the reasons for any refusal given to applicants?

The reasons for any refusal are given to the applicant in writing.

42

Have applicants a right of appeal in the event of refusal to issue a licence?

In the event of refusal to issue a license, the applicant may first apply to the Quota Allocation Committee and in later stage has a right of appeal by petitioning to an administrative court.

43

If so, to what bodies and under what procedures?

In the event of refusal to issue a license, the applicant may first apply to the Quota Allocation Committee and in later stage has a right of appeal by petitioning to an administrative court.

Importation

44

Are there any limitations as to the period of year during which importation may be made?

45

What documents are required upon actual importation?

Upon actual importation, an importer is required to submit the import license.

46

Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

There are no other administrative procedures, apart from import licensing, required prior to importation.

Conditions of licensing

47

What is the period of validity of a licence? Can the validity be extended? How?

For import licenses under the Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedules 3­10 and 13 for quotas management purposes: there are two periods in which licenses are issued; at the beginning of the year (January) and the middle of the year (June-July). For the vast majority of the goods, licenses are granted for up to 12 months, from 1 January to 31 December.

There is a group of products under the quota system that is characterized by low demand. For that group the licenses are allocated on a first come first serve basis throughout the year. For these licenses the validity cannot be extended and the importer is required to apply again in order to obtain a license to import under the quota.

48

Is there any penalty for the non-utilization of a licence or a portion of a licence?

There is no penalty for the non­utilization of a license or a portion of it. Nevertheless, for licenses for the purpose of quota allocations, usually an importer who did not utilize a license may not apply for the reserves nor for the following year.

49

Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

Licenses are not transferable between importers, unless otherwise stated in the license.

Foreign Exchange

50

Is foreign exchange automatically provided by the banking authorities for goods to be imported?

There are no foreign exchange limitations in Israel.

51

Is a licence required as a condition to obtaining foreign exchange?

52

Is foreign exchange always available to cover licences issued?

53

What formalities must be fulfilled for obtaining the foreign exchange?

The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)

6.1

Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

According to Israeli Customs Tariff and Exemptions and Purchase Tax on Goods Order of 2017, Schedules 3­10 and 13, for products under restriction, the quota system is administered by the Ministries of Agriculture and Rural Development (for agricultural products and fresh food) and Economy and Industry (for processed food). The methods used for allocating quotas, as well as ongoing announcements related to quota allocation, are published on the websites of both Ministries, on a regular basis. Both Ministries announce the opening of the quotas on their websites and in two daily newspapers. The announcement includes information on source countries, HS codes, and quota volumes.

6.2

Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?

There are two periods in which licenses for the purpose of quota allocation are issued; at the beginning of the year (January) and the middle of the year (June-July). Licenses are granted for up to 12 months, from 1 January to 31 December. However, by mid-year, the Quota Allocation Committee examines the extent to which the quota is utilized by each importer. The Committee reserves the right to recall licenses of importers who have not utilized at least 40% of the granted quantity by mid-year. The unutilized quantity is then re-allocated to other bidders who have demonstrated that they have imported at least 50% of the quota granted to them by mid-year.

There is a group of products under the quota system that is characterized by low demand. For this group the licenses are allocated on a first come first serve basis throughout the year.

6.3

Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)

Licenses are allocated to importers regardless of whether they are producers of like products. Guidelines determine that importers that do not utilize the licenses issued to them cannot submit requests for licenses for these products in the following year. Unutilized allocations are not added to quotas for the next year. The list of importers to whom licenses have been allocated is published on the web site of the relevant Ministries.

6.4

From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

From the time of announcing the opening of quotas, an average period of two weeks is allowed for the submission of applications for licenses.

6.5

What are the minimum and maximum lengths of time for processing applications?

Applications for licenses under preferential and WTO quotas are normally processed within 2 to 6 weeks. Some applications are processed within a shorter time frame.

6.6

How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

Import licenses are granted on the date of opening of the period of importation. If necessary, the licenses are extended for another period of time.

6.7

Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

In most cases, licenses applications are considered by one administrative organ. The specific organs which must be approached, relevant to the product, are specified in Schedules 1 and 2 of the Free Import Order of 2014 and Personal Import Order of 2019.

6.8

If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

Allocation is generally determined according to demand and size of quotas. Specific methods of allocation are determined according to size of the quotas and number of applicants. The methods used include mainly past performance and FCFS. For a very small number of highly demanded products, a competitive tender (auction) method is used in which the bidders compete on the price for the consumer and the bidder that proposed the lowest price is granted the license to import under the quota. In addition, the lottery system still exists but is rarely used.

In general, the quotas are divided into equal portions, for allocation between applicants. Priority is given to local producers, in allocation of raw materials, in proportion to the volume of the producers' consumption of materials under quotas. Applications are examined upon receipt.

6.9

In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

There are no such arrangements.

6.10

In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

Non applicable.

6.11

Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

There are no such arrangements.