G/LIC/N/3/ISR/4  
 
17 September 2018  
(18-5718) Page: 1/4 
Committee on Import Licensing  Original: English  
 
REPLIES TO QUESTIONN AIRE ON IMPORT LICEN SING PROCEDURES1 
NOTIFICATION UNDER A RTICLE 7.3 OF THE AG REEMENT  
ON IMPORT LICENSING PRO CEDURES  (2018)  
ISRAEL 
The following communication, dated 5 July 2018 , is being circulated at the request of the delegation 
of Israel . 
 
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Outline of System  
1.  The import licensing system is regulated primarily  by: 
 
- Free Import Order of 2014 (replacing Free Import Order of 2012) , for purposes of public  
security,  health  and safety,  and consumer  welfare.  
 
- 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 first Order is administered by 
the Israeli Ministry  of Economy and Industry . The second  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 Agriculture or the Ministry of Economy and Industry (see below).  
 
Purposes and coverage of licensing  
2. Schedules 1 and 2 of the Free Import Order of 2014 list products subject to non­automatic  licensing.  
 
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.  
 
3. The systems mentioned above apply to goods originating in and coming from all WTO countries 
and FTA partners.  
 
4. Free Import Order of 2014: Import licenses are required for reasons of safety, health, protection 
of the environment, and security, or to comply with international (non -WTO) commitments.  
 
Israeli Customs Tariff and Exemptions and Tax Order of 2017, Schedul es 3­10 and 13: Import 
licenses are required for imports of fresh agricultural products and processed food for quotas 
management purposes.  
 
5. The licensing system is based on official regulations (secondary legislation) promulgated under 
The Import and Ex port Ordinance [New Version], 1979 . 
Regarding the Free Import Order of 2014, Schedules 1­2 list the tariff number and the products that 
require a licens e. Under special circumstances there exists the possibility of granting an exemption 
                                                
1 See document G/LIC/3, Annex, for the Questionnaire.  G/LIC/N/3/ISR/4  
 
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  from these requirements, specifically based on the designation of the products. T he 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 administrativ e discretion (exemption) is allowed for the government in order to abolish the 
system without legislative approval.  
 
Procedures  
6.I. According to Israeli Customs Tariff and Exemptions and Purchase Tax on Goods Order of 2017 
Schedules 3­10 and 13, for produ cts 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). Before the end of each calendar year, both 
Ministries announce the opening of the quotas for the coming year on their websites and in two 
daily newspapers. The announcement includes information on source countries, HS codes, and 
quota volumes.  
 
II. There are two periods in which licenses for the pu rpose of quota allocation 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 12 months, from 1st January to 31st 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 that group the licenses are  allocated on a first come first 
serve basis throughout the year.  
 
III. 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. Unu tilized  allocations are 
not added to quotas for the next year. The list of importers to whom licenses have been 
allocated is pu blished on the web site of the relevant Ministri es. 
 
IV. From the time of announcing the opening of quotas , a period of four weeks is allowed  for the 
submission of applications for licenses . 
 
V. Applications for licenses under preferential and WTO quotas are normally processed within 4 
to 6 weeks. Some applications are processed within a shorter time frame.  
 
VI. 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.  
 
VII. 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 . 
 
VIII. Allocation is generally determined according to demand and size of q uotas.  Specific methods 
of allocation are used according to size of the quotas and number of applicants. The methods 
used include mainly past performance and FCFS. For highly demanded products a competitive 
tender (auction) method is used in which the bidd ers 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 port ions, for allocation between applicants. 
Maximum allocation per importer may not exceed 20 per cent of a given quota.  
 
Priority is given to local producers, in allocation of raw materials, in proportion to the volume 
of the producers' consumption of materi als under quotas. Applications are examined on 
receipt . 
 
IX. There are no such arrangements.  G/LIC/N/3/ISR/4  
 
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  X. Non applicable . 
 
XI. No. 
  
7.(a) There  is no requirement  for a certain  period  of time between  the application  for a license  
and the importation of the goods. Licenses can be obtained for goods arriving at the port 
without a license.  
 
(b) Under certain circumstances, a license can be granted immediately  on request . 
 
(c) In general, t here are no limitations as to the period of the year during which application for 
license and/or importation may be made . Nonetheless, for some fresh agricultural products 
the license/quota could be given for specific seasons of the year.  
 
(d) 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.  
 
8.  None. The reasons for any refusal are given to the applicant in writing. In the event of refusal to 
issue a license, the applicant has a right of appeal by petitioning  to an administrative court. The 
applicant also has the right to apply again later.  
 
Eligibility of importers to apply for licence  
9.  All persons, firms and institutions are eligible to apply for licenses. In some specific areas, there 
is a registration fee and there are published lists of authorized importers.  
 
Documentation and other requirements for application for licence  
10.  Two sample application forms are attached, one  for an Import License under the Free Import 
Order of 2014, and another for an Import license under the Israeli Customs Tariff and Exemptions 
and Tax Order of 2017, Schedules 3­10 and 13 for quotas management purposes. There are no 
standard documents that apply for all products.  
 
11.  Upon actual importation, an importer is required to submit the import license.  
 
12.  For most goods there are only standardization tests. In addition , there is a licensing fee or 
administrative charge in some specific areas, t he amount of the fee various rely on the nature of the 
goods.  
 
13.  No. 
 
Conditions of licensing  
14.  For import licenses under the Free Import Order of 2014: The validity of the licenses can vary 
(usually between 2 -5 years) according to the nature of the goods.  The extension of a license may be  
considered if the applicant  so requests.  
 
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 th e year (June -July). For the 
vast majority of the goods, licenses are granted for 12 months, from 1st January to 31st December.   
 
There is a group of products under the quota system that is characterized by low demand. For that 
group the licenses are alloca ted 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.  
 
15. There is no penalty for the non­utilizati on of a license or a portion of it. Nevertheless, for licenses 
for the purpose of quota allocations, an importer who did not utilize a license may not apply for the 
reserves nor for the following year.  
 G/LIC/N/3/ISR/4  
 
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  16. Licenses are not transferable between importers, unless otherwise stated in the license.  
 
17. No. 
 
Other procedural requirements  
18. There are no other administrative procedures, apart from import licensing, required prior to 
importation.  
 
19. There are no foreign exchange limitations in Israel.  
 
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