WORLD TRADE
ORGANIZATIONS/DCS/W/ISR
24 January 2003
(03-0470)
Trade in Services Original:  English
ISRAEL
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version  of the Schedule of Specific Commitments of Israel in
word format.  This document  does not substitute for the legally binding commitments undertaken by
Israel in its Schedule of Specific Commitments (GATS/SC/44; GATS/SC/44/Suppl.1;GATS/SC/44/Suppl.2)
Attached to the draft consolidated schedule is Israel's Article II (MFN) Exemption List
(GATS/EL/44) in word format.
The draft consolidated version of the Schedule and the MFN Exemption List were prepared by
the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
_______________
                                                          
1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/ISR
Page 2ISRAEL – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORSINCLUDED IN THISSCHEDULE3) Registration of corporate bodies.  The
Companies Ordinance (New Version) 5743-1983, requires that a public corporation must
have on its board of directors at least two
directors representing the public at large, whomust be residents of Israel.
The same enactment also requires a foreigncompany that maintains in Israel a place ofbusiness or an office for registration or
transfer of shares to register as a foreign
company and pay the requisite fees.  ThePartnership Ordinance (New Version), 5735-1975 provides that a foreign partnership, i.e.one formed outside Israel, may only carry on
business in Israel if it is registered in the Israel
register partnerships. In the case of a limitedpartnership, registration has to be sanctionedby the Minister of Justice who at his discretionmay authorize or refuse registration.
4) Presence of Natural Persons
1. Unbound except that Israel shall permit,
without requiring compliance with labourmarket tests, the temporary entry of serviceproviders as intra-corporate transfers in the
following categories:4) Unbound except for executives and managers
referred to under Market Access.S/DCS/W/ISR
Page 3Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(a) Executives:  persons who primarily direct
the management of the organization, establish
its goals and generally have a wide decisionmaking authority;
(b) Managers:  persons who direct the
organization or its department and are in a
senior level position responsible for theservice providing functions of the organizationby supervising and controlling and having also
authority to hire and fire personnel or
recommend such and other personnel actions.
2. Unbound:  Work permit will be issued in
compliance with the labour market tests tothose intra-corporate specialists, who possess
knowledge at an advanced level of expertise
or otherwise essential or proprietal to theorganization's service, research equipment,techniques or management.
II. SECTOR-SPECIFIC
COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
(a) Legal services (CPC 861) 1) None
2) None3) Israeli resident or citizen
4) Unbound except as indicated in the horizontal
section.1) None
2) None3) Israeli resident or citizen
4) Unbound except as indicated in the horizontal
section.
(b) Accounting (CPC 862) 1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.S/DCS/W/ISR
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(d) Architectural services
(CPC 8671)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(e) Engineering services
(CPC 8672-8673)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(g) Urban planning
(CPC 8674)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
8. Computer and Related 
Services
(a) Consultancy services
related to the installation of
hardware (CPC 841)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(b) Software implementation
services (CPC 842)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(c), (d) Data processing and 
database services(CPC 843 excluding 84330)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
F. Other Business ServicesS/DCS/W/ISR
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(a) Advertising (CPC 871) 1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(b) Market research and public
opinion (CPC 864)1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.
(c) Management consulting
(CPC 865-866)1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section.
(h) Services incidental to
mining and oil-field1) Unbound∗
2) Unbound*
3) None4) Unbound except as indicated in the horizontal
section.1) Unbound*
2) Unbound*3) None
4) Unbound except as indicated in the horizontal
section.
(k) Placement and supply
services of personnel -domestic market only(CPC 872)1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.
(m) Related scientific and
technical consultingservices(CPC 8675)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
                                                          
∗ Unbound due to lack of technical feasibility.S/DCS/W/ISR
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(p) Photographic services
(CPC 875)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
2. COMMUNICATION
SERVICES
A., Postal/Courier Services
B. (CPC 75111-2 and 7512)
Above 500g per addresseditem1) None
2) Unbound*
3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) Unbound*
3) None
4) Unbound except as indicated in the horizontal
section
C. Telecommunication
Services1) The existing monopoly's exclusive rights in
domestic Telecommunication services and
infrastructure mentioned in paragraphs: a(I),a(III), b, c, f, g,  will terminate not later thanthe year 2001. The government will publishthe rules and regulatory policy regarding theway of opening the above mentioned to
competition in the future.
2) The government issued two licenses to two
operators that won a tender issued by thegovernment for the operation of internationalservices in addition to those offered by thepresent operator (BEZEQ International, which
is a fully (100%) subsidiary of BEZEQ - the
local PTT). The companies have exclusivityuntil 1.1.2002 and the government willreexamine its policy regarding furthercompetition in the field of international
services towards the year 2001.S/DCS/W/ISR
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Foreign investment
(a) No limitation on foreign ownership for 
value-added service providers.
(b) 74% foreign ownership permitted in 
international service providers.
(c) 80% foreign ownership  permitted in 
wireless service providers.
(a) Voice telephone services
(CPC 7521)
(i) Public voice 
telephone:
-w i r e - b a s e d- facilities based- local/long distance
11) Only through network of Bezeq, the Israel
Telecommunications Corp. Ltd.
2) None3) Reserved to Bezeq, the monopoly supplier:
foreign equity partic ipation in Bezeq is
permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in  horizontal
sectionSee annexed, as well as the
following (in case of
inconsistency between theAnnex and the followingtext, the Annex willprevail):
Independence of regulator
Regulatory functions are
the exclusive purview ofthe Ministry ofCommunications.
(ii) Public voice 
telephone:
-w i r e - b a s e d- facilities based- International1) Only through network of three operators
2) None
3) Reserved to three operators.  74% foreign
ownership permitted in international serviceproviders
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionInterconnection
The Telecommunications
Law (5742-1982)authorizes the Minister ofCommunications, interalia to order one operatorto allow interconnection of
its network to the facilities
of another operator; bothoperators are to negotiatethe proper system ofreimbursement.
                                                          
1 International simple resale is not permitted.S/DCS/W/ISR
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(iii) Public voice 
telephone:
- local/long distance- radio-based1) None, but by using Bezeq's network, or by
using licensees own network.
2) None3) Local partner required; no more than 80% of
shares may be owned by a foreign entity.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionShould they not reach an
agreement, the Ministermay decide on the properprice for the
interconnection, based on
increment costs whichinclude operating,expenses,  and properreturn of equity.
(iv) Non-public voice
telephone: closed usergroups and privatenetworks- Local/long-distance1) Only through Bezeq's network
2) None3) Resale of excess capacity is not permitted,
must be point-to-point without anytransmission to a third party.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
sectionIn the event that a tender
will  be issued for limitedcompetition in this field(i.e  international services),the  Minister willdetermine maximum
tariffs.
(b) Packet-switched data
transmission (CPC 7523)and
(c) Circuit-switched data
transmission services
(CPC  7523)- Local, Long distance1) Only through network of Bezeq
2) None3) Only through network of Bezeq.  Foreign
equity participation in Bezeq is permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
(c) Circuit-switched data
transmission services
(CPC 7523)
- International1) Only by using three operator's and IBS
licensees' network.
2) None
3) Only by using three operator's and IBS
licensees' network.  74% foreign ownershippermitted in international service providers
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionS/DCS/W/ISR
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(f) Facsimile services
(CPC 7521 + 7529)- Local, Long 
distance1) Only through network of Bezeq
2) None3) Only through network of Bezeq.  Foreign
equity participation in Bezeq is permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
- International 1) None
2) None3) None
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
g) Private-leased circuit
services(CPC 7522 + 7523)
- Non-voice
- Local/long-
distance
- for public or non-
public use1) Only through Bezeq's network
2) None3) Only through circuits leased from Bezeq.
Foreign equity participation in Bezeq is
permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
- Non-voice
- for public or non-
public use
- International1) Only by using three operators' and IBS
licensees' network.
2) None3) Only by using three operators' and IBS
licensees' network.  74% foreign ownershippermitted in international service providers
4) Unbound except as indicated in horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in horizontal
section.
(o) Other
(i) Paging services 1) None
2) None
3) None4) Unbound except as indicated in horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in horizontal
section.S/DCS/W/ISR
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(ii) Satellite services: 
voice and data1) None
2) None3) None4) Unbound except as indicated in horizontal
section.1) None
2) None3) None4) Unbound except as indicated in horizontal
section.
Data and message transmission
(CPC 7523)1) None except for:
Must be transmitted via the infrastructure of alocal licensee.
2) Unbound*
3) None except for:
Must be transmitted via the infrastructure of alocal licensee.
4) Unbound except as indicated in the horizontal
section.1) None except for:
Must be transmitted via the infrastructure of alocal licensee.
2) Unbound*
3) None except for:
Must be transmitted via the infrastructure of alocal licensee.
4) Unbound except as indicated in the horizontal
section.
D. Audiovisual Services
(a) Motion pictures and video-
tape production (CPC96111-2)1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) Israeli movies (25% Israeli investments) are
entitled to a grant.
4) Unbound except as indicated in the horizontal
section.
Distribution of motionpictures and video-tape(CPC 96113)1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.S/DCS/W/ISR
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
6. ENVIRONMENTAL
SERVICES
Sewage and refuse disposalservices (CPC 9401-9405)
(Not including industrial
activities)1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.
Note:  The common practice in this sector is to
require a local representative.
7. FINANCIAL SERVICES
General Notes:
1. The commitments in financial services are made in accordance with the General Agreement on Trade in Services and the Annex on  Financial Services.
2. Israel applies certain restrictions on the convertibility of its  currency.  Therefore, certain rules concerning the purchase of foreign currency from New Israeli Sheqel
(N.I.S.) by permanent residents in Israel are not intended to di scriminate against foreign suppliers of Financial Services as s uch.  In this context Israel is "Unbound" to
cross-border supply (mode 1) and consumption abroad (mode 2) in certain Financial Services due to limitations and licensing req uirements applied by The
CURRENCY CONTROL LAW, 5738-1978 on transaction in foreign currency or in foreign security, to which a permanent resident in Isr ael is a party of, whether the
transaction is made in Isr ael or outside of Israel.
3. For prudential reasons within the context of paragraph 2(a) of the Annex on Financial Services, Israel applies, inter alia , measures requiring juridical form of
establishment or residence of natural persons in Israel for the supply of Financial Services.
4. Modes of supply 1 and 2 in financial services schedules:  the absence of any limitation on the ability of a resident consumer  to purchase the service in the territory of
another Member does not signify a commitment to allow a non-resident service supplier to solicit business or to conduct active marketing in the territory of the
Member.
All Insurance and Insurance
Related Services
I. Direct insurance
(A) Life insurance including
Pension fund1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.S/DCS/W/ISR
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(B) Non-Life insurance
services1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Compulsory car insurance must be purchased in
Israel from an insurance company established inIsrael and licenced by the Israeli commissioner
of insurance.
3) None4) Unbound except as indicated in the horizontal
section.
(C) M.A.T 1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.
II. Reinsurance and
retrocession1) None
2) None
3) None
4) Unbound, except as indicated in the horizontal
section.1),2) & 3) None:  Israel intends to enact 
regulations requiring registration 
of Certified Foreign Reinsurers in an Israeli Reinsurance Registrar.
4) Unbound, except as indicated in the horizontal
section.
III. Insurance intermediation
such as brokerage andagency1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.
IV. Services auxiliary
to insurance
(a) Consultancy 1) Unbound
2) Unbound
3) None
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None
4) Unbound, except as indicated in the horizontal
section.S/DCS/W/ISR
Page 13Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(b) Actuarial services 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
(c) Risk assessment 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
(d) Claim settlement 
services1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
Banking and other Financial
Services (Excluding Insurance)
V. Acceptance of deposits and
other repayable funds from
the public1) Unbound
2) Unbound
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.
VI. Lending of all types,
including consumer credit,mortgage credit, factoringand financing ofcommercial transaction1),2) Such activities may only be carried out 
through Banking institutions licenced by the controller of foreign exchange to act as an authorized dealer.
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1),2) Such activities may only be carried out 
through Banking institutions licenced by the controller of foreign exchange to act as an authorized dealer.
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.S/DCS/W/ISR
Page 14Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
VII. Financial leasing 1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.
VIII. All payment and 
money transmission services, including 
credit, charge and debit
cards, travellers cheques and bankers drafts1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.
IX. Guarantees and
commitments1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.
X. Trading for own account
or for account of customers,
whether on an exchange, inan over-the-counter marketor otherwise, the following:
(A) money market 
instruments (including 
cheques, bills, certificates of deposits,etc.)1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.
(B) Foreign exchange 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.S/DCS/W/ISR
Page 15Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(E) Transferable securities 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
XI. Participation in issues of all
kinds of securities,including underwriting andplacement as agent
(whether publicly or
privately) and provision ofservices related to suchissues1) Unbound
2) Unbound3) None, except that:
Banks are required to carry out such activities
only through subsidiaries.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None, except that:
Banks are required to carry out such activities
only through subsidiaries.
4) Unbound, except as indicated in the horizontal
section.
XIII. Asset management, 
such as cash or 
portfolio management,all forms of collective investment management, custodial,depository and trust 
services1) Unbound
2) Unbound
3) None, except that:
Banks are required to carry out assetmanagement activities only throughsubsidiaries.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None, except that:
Banks are required to carry out assetmanagement activities only throughsubsidiaries.
4) Unbound, except as indicated in the horizontal
section.
XIV. Settlement and clearing
services for financial assets, including securities, derivative 
products and other 
negotiable instruments1) Unbound
2) Unbound3) Securities settlement and clearing services in
the T.A. Stock Exchange are exclusively
provided for the Stock Exchange members.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) Securities settlement and clearing services in
the T.A. Stock Exchange are exclusively
provided for the Stock Exchange members.
4) Unbound, except as indicated in the horizontal
section.
XV. Provision and transfer of
financial information, and
financial data processingand related software bysuppliers of other financialservices1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound, except as indicated in the horizontal
section.S/DCS/W/ISR
Page 16Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
XVI. Advisory, 
intermediation and other auxiliary financial services on all
the activities listed in 
subparagraphs (V) through (XV), including credit reference and analysis, 
investment and 
portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
9. TOURISM AND
TRAVEL-RELATEDSERVICES
A. Hotel Services (CPC 641) 1) Unbound*2) None
3) Ownership must be in hands of Israeli-
registered company.
4) Unbound except as indicated in the horizontal
section.1) Unbound*
2) Tourists exempt from V.A.T. on services given
by hotels and paid in foreign currency.
3) None
4) Unbound except as indicated in the horizontal
section.
Food serving services(CPC 642-643)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.S/DCS/W/ISR
Page 17Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
B. Travel Agencies and Tour
Operators
(CPC 7471)1) Unbound
2) None3) Ownership must be in hands of Israel-
registered Company.  Travel Agencies should
employ at least one Israel-licensed Travel
Expert.
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.
C. Tourist Guides Services
(CPC 7472)1) Not applicable
2) None3) Israeli resident or citizen.4) Unbound except as indicated in the horizontal
section.1) Not applicable
2) None3) Israeli resident or citizen.4) Unbound except as indicated in the horizontal
section.S/DCS/W/ISR
Page 18
ANNEX
ADDITIONAL COMMITMENTS ON BASIC TELECOMMUNICATIONS SERVICES
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network of service that:
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in the relevant market for basic telecommunications services as a
result of:
(a) control over essential facilities; or(b) use of its position in the market.
1. Competitive Safeguards
1.1. Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in, or continuing anti-competitive practices.
1.2. Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;(b) using information obtained from competitors with anti-competitive results; and(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information whichare necessary for them to provide services.
2. Interconnection
2.1. This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of anotherS/DCS/W/ISR
Page 19
supplier and to access services provided by another supplier, where specific commitments are
undertaken.
2.2. Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided:
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for itsown like services or for like services of non-affiliated service suppliers or for its
subsidiaries of other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates, that are transparent, reasonable, having  regard toeconomic feasibility, and sufficiently unbundled so that the supplier need not pay for
network components or facilities that it does not require for the service to be provided;
and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of  necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured, that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection: dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
(a) at any time; or
(b)  after a reasonable period of time which has been made publicly knownto an independent domestic body, which may be a regulatory body as referred to in paragraph
5 below, to resolve disputes regarding appropriate terms, conditions and rates for
interconnection within a reasonable period of time, to the extent that these have not been
established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and not more
burdensome than necessary for the kind of universal service defined by the member.S/DCS/W/ISR
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4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision 
concerning an application for a licence; and
(b)  the terms and conditions of individual licence.The reasons for the denial of licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services.  The decisions of and the procedures used by regulators shall beimpartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner.
The current state of allocated frequency bands will be made publicly available, but detailed
identification of frequencies allocated for specific government uses is not required.
_______________S/DCS/W/ISR
Page 21ISRAEL – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
Film, Video andTelevision Programming
Co-production
and DistributionDifferential treatment is accorded
to works co-produced with
persons of countries with which
Israel may have co-productionarrangements, and to naturalpersons engaged in such co-productions, as well as to natural
and juridical persons engaged in
film and video distribution.All countries Indefinite For reasons of cultural policy,
including to improve the availability
of Israeli audiovisual productions in
Israel to promote greater diversityamong foreign audiovisual works onthe Israeli market, and to promote theinternational exchange of audiovisual
works.
Financial Services -
BankingA licence may be granted to the
establishment of foreign servicesupplier, to the country of originof which grants Israeli suppliers
access to its market in the form of
similar commercial presence.All countries Indefinite To obtain equal market access
possibilities for Israeli banks.
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