Market Reports/Tariffs
Textiles, Apparel, Footwear and Travel Goods

Israel

Import Tariffs
Documentation/Procedures
Restrictions
Standards
Labeling
Intellectual Property Rights
Market Information

Last updated on 12/11/2012

If you have any questions about the following information, please contact an analyst at the U.S. Department of Commerce- Office of Textiles and Apparel at 202-482-4058 or click here for e-mail access.

**The following information is provided only as a guide and should be confirmed with the proper authorities before embarking on any export activities.**


Import Tariffs - Israel
On September 1, 1985, the U.S.-Israel Free Trade Agreement was implemented. Under this agreement, import duties on U.S. textile and apparel goods entering into Israel, which meet the Agreement rules of origin, have been eliminated. For more information on the provisions for textile and apparel products in the Agreement, see the OTEXA webpage on the U.S.- Israel Free Trade Agreement. U.S. textile and apparel exports that do not qualify under the U.S.-Israel Free Trade Agreement are subject to non-preferential import duties.

Israel Tariffs (percent ad valorem) for Textiles, Apparel, Footwear and Travel Goods
HS Chapter/Subheading
Tariff Rate Range (%)
Yarn
-silk
5003-5006
0
-wool
5105-5110
0
-cotton
5204-5207
0 - 6
-other vegetable fiber
5306-5308
0
-man-made fiber
5401-5406/5501-5511
0 - 6
........................
Woven Fabric
-silk
5007
0
-wool
5111-5113
6
-cotton
5208-5212
0 - 6
-other vegetable fiber
5309-5311
0
-man-made fiber
5407-5408/5512-5516
0 - 6
Knit Fabric
60
0 - 6
.........................
Non Woven Fabric
5603
0 - 6
Industrial Fabric
59
0 - 6
........................
Apparel
61-62
0 - 6
Home Furnishings
including: bed, bath, kitchen linens, etc.......
63
0 - 12
........................
Carpet

Footwear

Travel Goods
57

64

4202
* 0 - 12

0 - 12

0
*Certain products are also subject to specific per unit duty rates

For more detailed tariff information, see the Israel Tax Authority website or the Current Situation of Schedules of Members on the World Trade Organization website.

To obtain information about tariffs on individual U.S.-origin products exported to FTA member countries, you may use the FTA Tariff Tool.
Additional Import Taxes and Fees--A VAT (valued added tax) of 17% is applied on virtually all services and products sold in Israel, including imports. The VAT on imports is levied on the c.i.f. (cost, insurance, and freight) landed cost plus purchase tax. In addition to the VAT, Israel may apply the following fees: a Port Fee of one percent on the c.i.f. value of the product is imposed on goods sent by ship; a Stevedoring Fee of 0.5 percent of the c.i.f. value is imposed when products are unloaded from ships; and a Purchase Tax is applied to specific products, primarily luxury and consumer items. Calculation of the Purchase Tax is based on the wholesale price of domestic products and on the c.i.f. landed value plus "Tama" (the Hebrew acronym for "additional rate of increase") on imports.

Temporary Entry/Samples--Temporary entry of U.S.-made goods may be effected either with an "ATA Carnet" issued by a U.S Chamber of Commerce or through payment of a deposit, reimbursable upon re-export.

ATA Carnet--An ATA Carnet or "Merchandise Passport" is a document that facilitates the temporary importation of products into foreign countries by eliminating tariffs and other import taxes or charges normally required at the time of importation. For more information or to apply for an ATA Carnet, see the United States Council for International Business website.

For information on how to determine tariff rates, see the Export.gov webpage on Tariffs and Import Fees.

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Import Documentation/Procedures (Israel)

As part of the FTA, to benefit from zero customs duties, U.S. exporters are required to state the value of the U.S. content of shipment as a percentage of the ex-factory product price, on a “Certificate of Origin for Exports to Israel” (CO). Correct CO forms can be obtained from an America-Israel Chamber of Commerce.

All administrative import licensing requirements for U.S.-made consumer and industrial goods have been eliminated under the FTA.

A hard copy, green color Certificate of Origin (CoO) is required for all shipments from the United States to Israel to qualify for preferential access to the Israeli market, The CoO is not mandatory but U.S. exporters are encouraged to present it to Israeli Customs. U.S. goods that are transshipped through third countries require a Certificate of Non-Manipulation from the customs authority of the third country, in order to qualify for the FTA preferential tariff.

If the exporter is also the manufacturer the CoO does not need to be notarized or stamped by a Chamber of Commerce. Instead, the exporter should sign the declaration in box 11 of the certificate: "The undersigned hereby declares that he is the producer of the goods covered by this certificate and that they comply with the origin requirements specified for those goods in the U.S.-Israel Free Trade Area Agreement for goods exported to Israel”. The U.S. Commercial Service should be contacted for more information at Certificate of Origin for Exporting to Israel

Potential candidates for “Approved Exporter” status are U.S. firms with total annual exports to Israel of at least $20 million that have a clean record with the Israel Customs Service. Israel. Once "Approved Exporter" status is granted, the exporter will be given an identity number to be stamped on all invoices. The approval is valid for six months, after which the exporter should receive an automatic extension from Israel Customs.

For more information on local customs rules and regulations:
Israel Tax Authority

Ministry of Finance
For information on common export documents, such as transportation documents, export compliance documents, certificates of origin, certificates for shipments of specific goods, temporary shipment documents, and other export-related documents, see the Export.gov webpage on Common Export Documents.

For more information on import procedures and documentation requirements, see the Country Commercial Guides (CCG) in the U.S. Commercial Service Market Research Library (enter your country of interest in the "country" field, and enter "Country Commercial Guide (CCG)" in the "Report Type" field. Some market research reports are available only to U.S. companies and U.S. students/researchers that are registered with Export.gov.

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Import Restrictions (Israel)
Imports requiring a license include used clothing and other used articles for sanitary reasons. Sanitary certificates are required for shipments of wool.

Importation of used bags for packaging vegetable material is prohibited for health reasons.

There is a ban on imports of seconds fabrics.

U.S. Export Restrictions:

The Office of Foreign Assets Control (OFAC) in the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, terrorists, and international narcotics traffickers and their agents in accordance with U.S. foreign policy and national security goals. The OFAC website includes summaries of sanctions programs for various countries and the “Specially Designated Nationals and Blocked Persons” (SDNs) list of entities and individuals with whom U.S. persons may not conduct business and whose property must be blocked if under the control of a U.S. person.

The Bureau of Industry and Security (BIS) in the U.S. Department of Commerce is responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of most commercial items. BIS maintains the Denied Persons List, which consists of individuals, and companies that have been denied export and re-export privileges by BIS, and the Entity List, which consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction

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Standards - Israel
The Standards Institution of Israel - SII is the statutory body that develops and establishes standards. Technical standards are published in the official Israel Government Gazette in hard copy only and can be purchased in bookstores that sell legal textbooks or by subscription. Prior to publication, the Director General of the SII officially informs the relevant industry sectors of pending additions and amendments.

Standard regulations, which apply to sizing and working garments, can be obtained through the SII.

Technical standards are published in the official Israel Government Gazette in hard copy only and can be purchased in bookstores that sell legal textbooks or by subscription.

Local standards organization and other resources:
Standards Institution of Israel - SII

The National Center for Standards and Certification Information (NCSCI) at the National Institute of Standards and Technology (NIST) in the U.S. Department of Commerce provides information on U.S. and foreign standards, technical regulations, and conformity assessment procedures for non-agricultural products. NCSCI staff responds to requests for information by identifying relevant standards and regulations, and by referral to the appropriate standards-developers or private-sector organizations. Under copyright restrictions, NCSCI cannot provide copies of standards, but NCSCI does provide sources for accessing standards.

U.S. companies can register for the Notify U.S. service to learn about and comment on proposed changes to foreign standards, technical regulations, and conformity assessment procedures that may affect U.S. access to global markets.

Additional resources:

Examples of voluntary formaldehyde labeling programs

American Apparel and Footwear Association's Restricted Substances List

American National Standards Institute (ANSI)

International Organization for Standardization (ISO)

Footwear Distributors and Retailers of America (FDRA) 2014 global guidebook on Understanding Chemical and Physical Requirements for Footwear

ASTM International


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Labeling - Israel
Israel has strict marking and labeling requirements that frequently differ from those of other countries. U.S. exporters should consult with their Israeli importer prior to shipping any product that will be offered to the local market. Specific information on labeling and packaging standards is available from the Department of Weights and Measures, Ministry of Economy.

Garments must bear a label in Hebrew. English may be added provided the printed letters are no larger than those in Hebrew. The label must be made of a woven material and include name, address, telephone number of importer, country of origin (material, and "assembled in", if different), material composition in percentage, and care instructions, written or in graphics.

Labels should be attached or sewn on to the product before importation into Israel. However, it may be admissible to attach the labels in a bonded warehouse in Israel where Customs employees perform the job prior to Customs clearance for an average of 30 cents per piece.

Size labeling - U.S. and Israeli clothing size equivalents:
Mens Trousers
U.S.32343638404244
Israel42444648505254
Women’s Clothes
U.S.8101214161820
Israel38404244464850


Labeling requirements in the Palestinian Authority areas:

In 1997, the Ministry of Economy and Trade of the Palestinian Authority (PA) issued regulations regarding labeling requirements for products coming into the PA areas. The 1997 labeling regulation stipulates that:

No product may be brought in or distributed in the PA areas if it does not carry a label in Arabic with the following details:

Name of product.
Trademark (if any).
Grade of product.
Name of importer and the importer's address.
Place of origin, the name and address of the manufacturing company.
Date of production and date of expiration.
List of ingredients that make up the product.
Storage directions.
Quantity in numbers, length or area as applicable.

The Arabic characters should be in large print, very legible and larger than the second language in case there are other languages printed on the label. The writing in the second language should exactly correspond to that in Arabic. Also, the color of the Arabic label should be different than the color of the original label on the product.

It is possible for a PA company or importer interested in marketing a new product in the PA to apply for an exemption to the labeling requirement. However, exemptions are only granted on a case-by-case basis.

For more information about the labeling requirement, contact the Palestinian Standards Institute -PSI.

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Intellectual Property Rights - Israel
Ministry of Justice Patent Office

For information on protecting your trademarks, patents and copyrights:

Export.gov --Protecting Intellectual Property Rights (IPR) Abroad

StopFakes.gov


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Market Information - Israel

Qualifying Industrial Zone (QIZ):
In 1996, the U.S. Congress established the Qualifying Industrial Zone (QIZ) initiative to support the peace process in the Middle East. The QIZ initiative allows Egypt and Jordan to export products to the United States duty-free, as long as these products contain inputs from Israel. The QIZ legislation authorizes the President to proclaim elimination of duties on articles produced in the West Bank, Gaza Strip, and qualifying industrial zones in Jordan and Egypt. In order to obtain duty-free access to the U.S. market under the initiative, the goods must be produced in designated QIZ factories and meet specific rules of origin requirements. See the section on QIZs for more information.

Government Procurement-- See Global Procurement Opportunities for U.S. exporters.

The Industrial Cooperation Authority - ICA, a division of the Ministry of Industry, Trade & Labor, is responsible for negotiating and monitoring the implementation of the offset agreements. Public tenders are published in two daily Israeli newspapers, on the Government Publications Office website, and in one Arabic publication.

U.S. companies may contact the U.S. Commercial Service for information and personalized counseling at every step of the exporting process. Find a U.S. Export Assistance Center near you or contact an international office.

Other sources for market information and data:

OTEXA Export Market Report (U.S. export data for textiles, apparel, footwear and travel goods)

Export.gov Trade Data & Analysis webpage

U.S. Department of Agriculture, Foreign Agricultural Service

U.S. Department of State - U.S. Embassies, Consulates, and Diplomatic Missions and
U.S. Department of State Country Background Notes

U.S. Office of the Trade Representative

Local Industry and Trade Associations


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