World Trade Organization

Import Licensing Procedures

Products under TQs

Document symbol
G/LIC/N/3/ISR/6
Original language
English
Published on
16/06/2023

Outline of Systems

Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another 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.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

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.

Q3. The system applies to goods originating in and coming from which countries?

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

Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?

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.

Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?

The licensing system is based on official regulations (secondary legislation) promulgated under The Import and Export Ordinance [New Version], 1979.

Under special circumstances, there exists the possibility of granting an exemption from these requirements, based on several reasons such as self-use and small quantities. The government may not abolish the system without legislative approval.

Regarding the Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedules 3­10 and 13, no administrative discretion (exemption) is allowed for the government in order to abolish the system without legislative approval.

Procedures

Q6. 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):

Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? 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 and Economy and Industry. 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 usually includes information on source countries, HS codes, and quota volumes.

Q6.II. How is the size of the quotas determined: on a 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 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, during the year, the extent to which the quota is utilized by each importer is examined. The responsible Ministries reserve the right to recall licenses of importers who have not utilized the quota.

Q6.III. Are licences allotted 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 the 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.

Q6.IV. 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.

Q6.V. What are the minimum and maximum lengths of time for processing applications?

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

Q6.VI. 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 usually extended for another period of time.

Q6.VII. 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.

Q6.VIII. 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 bidders that proposed the lowest prices are granted the license to import under the quota. In addition, the lottery system still exists but is rarely used.

Q6.IX. 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.

Q6.X. In cases where imports are allowed 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?

N/A

Q6.XI. 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.

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

N/A

Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?

N/A

Q7.b. Can a licence be granted immediately on request?

N/A

Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.

N/A

Q7.d. 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?

N/A

Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?

None. The reasons for any refusal are given to the applicant in writing. In the event of refusal to issue a license, in some cases 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. In the event of refusal to issue a license, in some cases 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.

Eligibility of Importers to Apply for Licence

Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?

Any registered firm is eligible to apply for licenses. In some specific areas, there is a registration fee. In some specific areas, there are published lists of authorized importers.

Documentational and Other Requirements for Application for Licence

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

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. There are no standard documents that apply for all products.

Q11. What documents are required upon actual importation?

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

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

For most goods there are only standardization tests. In addition, there is a licensing fee or administrative charge in some specific areas. The amount of the various fees relies on the nature of the goods.

Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.

No.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence 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 may be extended, upon request by the importer.

Q15. 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.

Q16. 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.

Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?

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

Other Procedural Requirements

Q18. 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.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

There are no foreign exchange limitations in Israel.