Benefits of tariff and taxes under FTA

Under this Agreement, American exporters can expect to receive the following benefits:

1. No Israeli tariffs of any kind on product (except for agricultural products). The following fees, however, may apply:

– A Port Fee of one percent on the cost, insurance, and freight value (CIF) of the product is imposed on goods sent by ship.

– A Stevedoring Fee of 0.5 percent of the CIF is imposed when products are unloaded from ships.

– A Compulsory Levy is imposed at various rates on the CIF value of food and agricultural products.

-- A Purchase Tax is applied to specific products, primarily luxury and consumer items, whether or not they are imported or produced locally. The purchase tax is levied on the wholesale price of the item.

-- Israel imposes a Value-Added Tax (VAT) on most goods and services sold in Israel, including all imports, with the exception of fresh fruits and vegetables. The VAT rate is presently 18 percent. The VAT on an imported product is recovered by the importer upon resale of the goods.

2. Limited import licensing requirements; No other import restrictions, except on agricultural products; No barriers or discrimination in bidding on Israeli government procurement; No requirements to purchase locally-produced goods or services; Full intellectual property rights; and an open market for trade in services.

All American companies interested in exporting under this Agreement must satisfy two important conditions: products must meet the Agreement’s designated rules of origin criteria, and must be accompanied by all required documentation.

The Israeli Customs Service prefers that exporters use their own commercial invoice forms to provide all required information. Exporters should include the following information on their invoice forms: the supplier’s name and address, general nature of the goods, country of origin, name and address of the recipient in Israel, name and address of the agent in Israel, rate of exchange, terms, Israeli import license number (if applicable), shipping information, full description of all goods in the shipment, price per unit and total value of the shipment. The commercial invoice must be signed by the manufacturer, consignor, owner, or authorized agent.