WT/TPR/M/376/Add.1  
27 November 2018  
(18-7449) Page: 1/105 
Trade Policy Review Body  
17 and 19 July 2018  Original: English/anglais/inglés  
 
  
TRADE POLICY REVIEW  
ISRAEL 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Eloi Laourou (Benin)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Israel .1 
 
 
Organe d'examen des politiques commerciales  
17 et 19 juillet 2018  
EXAMEN DES POLITIQUE S COMMERCIALES  
ISRAËL 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Eloi Laourou (Bénin)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Israël .1 
 
 
Órgano de Examen de las Políticas Comerciales  
17 y 19 de julio de 2018  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
ISRAEL 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Eloi Laourou (Benin)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Israel .1 
  
                                                
1 In English only./ En anglais seulement./En inglés solamente.  WT/TPR/M/376/Add.1  
 
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  TABLE OF CONTENTS  
 
MEXICO  ................................ ................................ ................................ ............................  3 
COLOMBIA  ................................ ................................ ................................ .......................  9 
CANADA  ................................ ................................ ................................ .........................  14 
COSTA RICA  ................................ ................................ ................................ ...................  15 
JAPAN  ................................ ................................ ................................ ............................  16 
CHINA  ................................ ................................ ................................ ............................  17 
FOLLOW UP QUESTIONS FROM CHINA  ................................ ................................ ...........  20 
NEW ZEALAND  ................................ ................................ ................................ ...............  23 
RUSSIAN FEDERATION  ................................ ................................ ................................ ... 27 
UKRAINE  ................................ ................................ ................................ ........................  33 
AUSTRALIA  ................................ ................................ ................................ ....................  44 
BRAZIL  ................................ ................................ ................................ ...........................  46 
EUROPEAN UNION  ................................ ................................ ................................ .........  47 
FOLLOW UP QUESTIONS FROM THE EUROPEAN UN ION ................................ .................  58 
ARGENTINA  ................................ ................................ ................................ ....................  61 
DOMINICAN REPUBLIC  ................................ ................................ ................................ .. 64 
GUATEMALA  ................................ ................................ ................................ ...................  65 
UNITED STATES  ................................ ................................ ................................ .............  66 
QUESTIONS FROM ECUAD OR ................................ ................................ ..........................  82 
ADDITIONAL QUESTIONS  FROM ECUADOR  ................................ ................................ .... 84 
CHINESE TAIPEI  ................................ ................................ ................................ ............  86 
REPUBLIC OF KOREA  ................................ ................................ ................................ ...... 89 
THAILAND  ................................ ................................ ................................ ......................  91 
PHILIPPINES  ................................ ................................ ................................ .................  92 
TURKEY  ................................ ................................ ................................ ........................  102  
  WT/TPR/M/376/Add.1  
 
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  MEXICO  
3. Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 International context and WTO participation  
3.150  
 
1. Is there a specific protection regime for geographical indications (GIs) in Israel? Is there a 
national regime for the recognition and protection of foreign GIs or are they only recognized 
through the Lisbon Agreement? Is there an opposition procedure for the recognition of a foreign 
GI? If applicable, what are the criteria for filing an opposition against the recognition of a GI?  
 
Answer:  Geographical indications, as that term is understood  in the TRIPS Agreement 
are protected as such pursuant to the Law for the Protection of Appellations of Origin 
and Geographical Indications, without formalities, provided they are known in Israel as 
constituting a geographical indications. Since there is n o registration process for GI 
protection there is no opposition process.  
 
A geographical indication may also be eligible for protection as a registered certification 
mark. "Certification Marks" are a type of registered trademark which will only be 
register ed following successful completion of an eligibility examination process and 
publications for possible opposition.  
 
In addition, Israel is a member of the Lisbon Agreement for the Protection of 
Appellations of Origin and provides protection in Israel for appellations of origin in 
accordance with the terms of that treaty. Under the terms of that treaty applications for 
registration may be opposed on grounds of lack of eligibility for registration by any 
person.  
 
3. Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.4.1 Patents  
3.167  
 
2. Does the granting of an extension of the duration of the patent, due to delays in the 
marketing approval of patented pharmaceutical products, necessa rily depend on the granting of an 
extension in the country of reference? That is, is the extension only granted if it was granted in the 
reference country? Or is it possible to grant the extension regardless of whether there is an 
granted extension in the reference country?  
 
Answer : Where an Israeli patent provides protection for a pharmaceutical product which 
only has marketing approval in Israel, the initial duration of the extension of that basic 
patent will be equal to the elapsed time period from the d ate the marketing approval 
application was submitted to the Israel Ministry of Health to the date of issuance of such 
approval. That initial amount might be reduced in certain circumstances subject to one 
or more capping provisions set forth in the law.  
 
Where the pharmaceutical product covered by the Israel basic patent has also been 
approved for marketing in a reference country then the reference extension period(s) is 
required and will form the basis for determining the duration of the Israeli extension  
order subject to capping limitations set forth in the law.  
 
3. Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.173  
 
3. According to the law, does the compensation of 100,000 NIS per each infringement of 
industrial designs and/or models triggered to the benefit of the holder by the mere existence of 
the infringement, or is it subject to verification and determination by a J udicial proceeding? Are WT/TPR/M/376/Add.1  
 
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  there similar sanctions (previously established in laws or regulations) for all other industrial 
property rights?   
 
Answer:  Statutory damages for infringement of a registered design may be granted by 
the court at the conclusion of  a case, when the plaintiff has elected to receive statutory 
damages, instead of proving his actual damages. The court, in determining an award of 
statutory damages has broad discretion and, depending on the circumstances of a 
particular case, may determin e an award of any amount between zero and NIS 100,000 
per infringement depending on the circumstances of a given case.  
 
As a general rule courts will award an amount that approximates the sum of actual 
damages, costs of enforcement and a possible deterrent  element. Statutory damage 
regimes exist in Israeli legislation with respect to copyright, trade secret infringement 
and passing off.  
 
4. Trade Policies by Sector  
4.4 Services  
4.4.3 Bank services  
4.65 
 
4. The Banking Supervision Department refers to new ca pital adequacy targets for the banking 
system in Israel. In this regard, Mexico would like to obtain additional information on these 
targets.  
 
Answer:  As part of a gradual process of adopting Basel III in Israel, the Banking 
Supervision Department required banks and credit card companies to meet a minimum 
core capital ratio of 9 percent beginning from January 1, 2015. For the largest banks, 
each of whos e assets are more than 20 percent of the banking system's assets, it was 
further established that they meet a higher core capital ratio of 10 percent by January 1, 
2017. The higher capital adequacy ratio will essentially apply to large banking groups.  
 
The guideline was formulated following the recommendations published by the Basel 
Committee in December 2010 (and which were revise d in June 2011), known as 
Basel  III. The Committee's document placed particular emphasis on the level and quality 
of capital of banks, especially the core capital component, given its ability to absorb 
losses on an ongoing basis, with the occurrence of various shocks, while ensuring the 
continuation of sound business activity. In accordance with the Committee's 
recommendations, sup ervisory authorities in many countries published capital policies 
which are more stringent than those outlined in the Committee's document —among 
other ways, through setting higher capital ratios, setting earlier implementation dates, 
or a combination of th e two.  
 
In light of the importance of this guideline, and in order to ensure its implementation 
within the established timeframe, the banks were additionally required to update their 
capital plans. The Banking Supervision Department expects the banks to in crease their 
equity in order to meet this requirement. The distribution of dividends will be possible if 
doing so does not negatively impact their ability to meet the new requirements.  
 
4. Trade Policies by Sector  
4.4 Services  
4.4.5 Telecommunications and postal services  
4.82 
 
5. Mexico would like to know the reasons for postponing the privatization plans of the Israel 
Postal Company (IPC).  
 
Answer:  During the past few weeks the process of privatization of the Israel Postal 
Company was approved and it includes, in the first stage, the selling of 20% of the 
company to a private investor. The second stage is planned to take place within two 
years from the end of the first stage and includes selling of an additional 20% to the 
public (issuance of shares).  
 WT/TPR/M/376/Add.1  
 
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  4. Trade Policies by Sector  
4.4 Services  
4.4.7 Tourism  
4.103  
 
6. Mexico would like to know if foreign investors can benefit from these incentives for the 
tourism sector. (This question is repeated)  
 
Answer:  Foreign owned companies that are incorporated in Israel and invest in Israel's 
tourism sector enjoy the same treatment as local companies  
 
9. Government Report  
9.5.5  
 
7. On page 19, section 5.5, paragraph 5.14, the text of the Report of the Government of Israel 
states that: "5.14. Israel continues to pursue trade liberalization as part of its general economic 
policy. In recent years, as part of the Government's review of tariff and non -tariff measures and in 
an effort to reduce the cost of living, Israel h as eliminated tariffs on more than 1,300 tariff lines 
(at HS 8 -digit level) on many consumer goods, where the prior level of customs duties had been in 
the range of 6 -12%. The reductions are worth over $150 million in annual customs revenue. In 
addition, i n the past few years, Israel introduced new voluntary Tariff Rate Quotas of substantial 
amounts, open for all WTO members, for a number of highly demanded food and agricultural 
products such as fresh and chilled beef, hard cheese and olive oil. For some of  the product, the out 
of quota duty rate was reduced as well."  
 
Could the Israeli government comment on whether it has plans in the short and medium term to 
continue eliminating its import tariffs and/or open voluntary tariff quotas on products from the 
agri-food sector? If so, could you elaborate on these plans?  
 
Answer:  Israel regularly opens voluntary tariff quotas subject to local production 
constraints and market needs. As part of pilot programs in the beef, dairy and fisheries 
sectors, the following s teps have been taken:  
 
1. Beef   
• Increased TRQs for imported fresh and chilled beef from 7,500 tons in 2016 to 
17,500 tons in 2020, combined with gradual reduction of the MFN tariffs on the 
out of quota imports from 12% plus 1,300 ILS (USD 339) per ton in 2016 to 12% 
with zero ILS in 2020.  
2. Dairy  
• Gradual liberalized import regime for selected dairy products has been put in 
place as follows:  
 Full Exemption WTO TRQs (Tonnes)  
Product  Yoghurt  Butter  Cream  
2014 1,250  750 750 
2015 1,500  1,000  1,000  
2016+  2,000  1,250  1,200  
 
 Full Exemption WTO TRQs (Tonnes)  
Product  Semi -Hard Cheese  
2014 4,200  
2015 4,800  
2016 5,400  
2017 6,000  
2018+  6,500  
 
3. Fishery  
• Custom duties for Tilapia, Carp, and Mullet (fresh, frozen and fillet) were reduced 
by 50% from 15 NIS/KG to 7.5 NIS/KG. Further tariff reductions will be 
examined based on fish growers' profitability over the coming years.  
2. Trade and Investment Regime  
2.3 Trade Agreements and Arrangements  WT/TPR/M/376/Add.1  
 
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  2.3.2 Regional and preferential agreements  
2.3.2.2 Colombia  
2.13 
 
8. On page 22, paragraph 2.13, it is mentioned that Israel and Colombia signed a Free Trade 
Agreement on September 30, 2013, and that the Agreement provides for the possibility of 
accumulation of origin with third parties.  
 
Could Israel provide informa tion regarding the agreed conditions to implement such expanded 
accumulation?   
 
Answer:  Following are the relevant provisions from the Colombia -Israel FTA (not ratified 
yet):  
 
"3. Subject to paragraph 4, where each Party has a trade agreement that, as 
contemplated by the WTO Agreement, concerns the establishment of a free trade area 
with a non -Party, the territory of that non -Party shall be deemed to form part of the 
territory of the free trade area established by this Agreement, for purposes of 
determi ning whether a good is an originating good under this Agreement.  
 
4. A Party shall apply paragraph 3 only where provisions having equivalent effect to 
those of paragraph 3 are in force between each Party and the non -Party with which each 
Party has separate ly concluded a free trade agreement. Where such provisions between 
a Party and the non -Party apply only to certain goods or under certain conditions, the 
other Party may limit the application of paragraph 3 to those goods and under such 
conditions, subject  to the provisions of this Agreement. "  
 
It is important to note that the intent behind this concept of cumulation is to address the 
possible trade restricting effect that bilateral (or regional) rules of origin may have. 
Allowing cumulation will enhance t rade and preserve supply chains, thereby 
contributing to trade and economic growth.  
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguards measures  
3.35 and 3.36  
 
9. Could Israel clarify what are the procedural stages that follow and what it precisely means 
for the participation of the interested parties in the proceedings before the Commissioner for Anti -
dumping and Countervailing Measures and the Advisory Committee on Anti -Dumping and 
Countervailing Measures?  
 
Answer:  Procedural stages for the participation of the interested parties in the 
proceedings before the Commissioner and the Advisory Committee, are as follow:  
• Providing responses to the foreign producer/exporter ques tionnaire  
• Providing responses and comments to the complaint  
• Providing answers to the Commissioner's additional questions which may arise  
• Providing comments to the Commissioner's preliminary decision  
• Participation in the verification visit  
• Providing additio nal information to the Commissioner, if necessary  
• Providing comments to the Commissioner's final finding for the Committee to 
consider  
• Providing oral comments during the Committee's meeting  
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguards measures  
 
10. Could Israel indicate what calculation methodologies it follows in order to determine the 
mandatory lesser duty rule, and what each of it consists of?  
 WT/TPR/M/376/Add.1  
 
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  Answer:  The Trade Levies and Safeguard Measures Law of 1991 requires that should the 
Commissioner or the Advisory Committee, as the case may be, find that a duty that is 
lower than the dumping rate is sufficient to prevent material injury to the domestic 
industry, the anti -dumping duty should be at the rate required to prevent said injury. In 
order to implement this provision, an injury margin is determined according to the 
comparison between the target price (total costs plus reasonable profit) and the import 
price at the p ort in Israel. In addition, a dumping margin is determined according to the 
comparison between the normal value and the export p rice at the factory gate (EXW).  
 
The duty imposed should be at the rate of the injury margin if such margin is lower than 
the du mping margin.  
 
Could Israel indicate, in a general way, the reasons why it was determined that the imposition of 
duties on recycled containerboards from the European Union was not in the public interest?  
 
Answer:  The Minister of Finance, in fact, actually did not approve the imposition of the 
levy because he was not convinced that a causal link existed between the dumping and 
the injury.  
 
We understand that no duties were applied to the recycled containerboards of the European Union. 
In that sense, could Is rael clarify whether this suspension of the application of rights is temporary 
or definitive?  
 
Answer: The decision not to apply a duty is definitive.  
 
3. Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Exports  
3.2.5 Export finance,  insurance, and guarantees  
3.63 
 
11. Could Israel indicate if it has an approximate date for the submission of the notification, 
specified under paragraph 3.63 of page 40, to the WTO Committee on Subsidies and 
Countervailing Measures?   
 
Answer:  Israel subm itted an updated "New and Full Notification", pursuant to Article 
XVI:1 of the GATT 1994 and Article XXV of the Agreement on Subsidies and 
Countervailing Measures for 2014 -2016 in documents G/SCM/N/284/ISR and 
G/SCM/N/315/ISR  (dated 11 July 2018) . 
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.3 Tariffs  
3.21 
 
12. Could the Government of Israel explain the reason why the MFN Tariff applied during 2018 
exceeds the bound rates in 18 tariff lines as indicated? Is t he Government of Israel considering 
initiating a procedure to modify its schedules, as established under Article XXVIII of the GATT 
1994? (This question is repeated)  
 
Answer:  Israel has no intention to modify its schedules as established under Article 
XXVI II of the GATT 1994. We are currently reviewing these items and will make the 
necessary adjustments as soon as possible.  
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirement s/Customs procedures and 
requirements and customs valuation  
3.4 
 
13. It is mentioned that the Single Window allows the submission of the required paperwork; 
Does this refer only to the electronic submission of documents, or to the fact that since there are 
five interconnected government institutions, it not only includes th e presentation but also the WT/TPR/M/376/Add.1  
 
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  resolution of all related customs paperwork under the responsibility of these five interconnected 
government institutions?  
 
Is it possible to carry out the advanced customs clearance of goods through a Single Window?  
 
Answer:  The competent authorities send out their resolutions simultaneously both to the 
submitting entity such as the importer and the Customs Authority. As a result of the 
transmission of the respective import declaration to customs, the resolution is available 
in the Customs Authority's foreign trade system.  
 
The most recent upgrades included adding the following government ministries to the 
system:  
Ministry of Communications, Ministry of Culture and Sport, Israel Antiquities Authority , 
Ministry of Agriculture and Rural Development, Ministry of Environmental Protection  
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.6 
 
14. What are the main benefits when using the Authorized Economic Operator (AEO) scheme?  
 
Answer:  
The main benefits for AEOs members, based on the SAFE model are:  
 
(1)   Mutual recognition with other international AEO programs  
(2)   Reduced amount of customs examinations  
(3)   If an examination is required, then  a documentary examination is preferred  
(4)   A physical examination is performed by means of NII (Non -Intrusive Inspection)  
(5)   Receive the details of an AEO contact point at Israel Customs  
(6)   Simplification at the customs clearance process  
(7)   Preclearance procedures  
 
3. Trade Policies and Practices by Measure  
3.1 Measure Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements/Customs procedures and 
requirements and customs valuation  
3.8 
 
15. What is the estimated time required by the Customs Authority to issue an advance ruling 
regarding the classification of goods?  
 
Are advance rulings relating to the origin also expected to be included under the electronic facility?  
 
Answer:  45 days is the maximum period of time for a response to a pre -ruling question 
for classification of goods.  
 
Israel currently provides for electronic advanced ruling regarding the origin of goods 
and customs valuation via email.  WT/TPR/M/376/Add.1  
 
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  COLOMBIA  
Summary. Page 7, Paragraph 16. "The Israeli economy specializes in the development and 
production of high -tech goods and services, supported by the highest level of civilian R&D in the 
world (about 4.3% of GDP in 2015). The Israel Innovation Authority, set up in 2015, encourages 
both local and foreign inves tment by offering a wide range of incentives and benefits to investors 
in industry, tourism and real estate. Most of these incentive programmes offer participation in the 
risks involved in the development process via conditional loans."  
 
1. Can you describ e the levels/percentage of participation of the Israel Innovation 
Authority in the production chain?  
Answer:  The Israel Innovation Authority's major goal is to ensure economic prosperity 
through technological innovation. In practice, it  focuses almost enti rely on the 
encouragement of Research and Development (R&D) and aims to strengthen R&D in the 
Israeli industry and thus to increase the economic benefits to the Israeli economy. In 
most cases R&D is the first stage of the production chain or is even consid ered a 
separate process that is necessary to complete prior to production.  
 
2. In practice, can you please describe the Israel Innovation Authority's participation 
to achieve the strengthening of the creative ecosystem, the industry and the different 
sectors of the economy?   
Answer:  Strengthening the innovation ecosystem is the core mission of the Israel 
Innovation Authority, which seeks to further develop and support technological 
innovation in Israel through various tools. The Authority advises the g overnment and 
Parliament ("Knesset") committees regarding innovation policy in Israel and 
furthermore monitors and analyses the dynamic changes taking place throughout the 
innovation environments in Israel and abroad. It creates cooperation with counterpar t 
agencies to promote technological innovation in the Israeli industry and economy.  
 
The Israel Innovation Authority provides a variety of practical tools aimed at addressing 
the dynamic and changing needs of the local and international innovation ecosyste ms. 
 
With deep knowledge and understanding of the unique challenges facing the Israeli 
companies and entrepreneurs, the tools offered by the Authority are based on the 
specific stage and needs of the company. This includes tools for early stage 
entrepreneurs, mature companies developing new products or manufacturing processes, 
academic groups seeking to transfer their ideas to the market, multinational 
corporations interested in Israeli technology, Israeli companies seeking new markets 
abroad, an d traditional factories and plants seeking to incorporate innovative and 
advanced manufacturing into their businesses.  
 
In order to achieve its objectives, the Israel Innovation Authority has adopted an 
internal structure designed to enable: task and clien t orientation, concentration of 
knowledge and tools under a single entity, enlargement of the offered toolbox, and 
expansion of the scope of activities beyond R&D. This strategic approach is advanced 
through a number of innovation divisions each focused on  a specific target audience, for 
the purpose of developing and delivering dedicated solutions to their associated 
challenges.  
 
The innovation divisions include:  
 
• Start -up Division  (Technological Incubators, Early Stage)  
• Growth Division  (R&D)  
• Technological Infrastructure Division   
• Advanced Manufacturing Division  
• International Collaboration Division  
• Societal Challenges Division  
 WT/TPR/M/376/Add.1  
 
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  These divisions pave a variety of customized paths for entrepreneurs and companies to 
promote, implement and realize their innovative R&D ideas at various stages.  
 
ECONOMIC ENVIRONMENT, 1.1 Main Features of the Economy. Page 10, Paragraph 1.4. "Some of 
the main economic challenges lie in raising productivity growth, which is low by high -income 
country standards. Israel also fa ces demographic challenges in the labour market (particularly in 
the hi -tech sector), which are related to low participation and productivity among Arab -Israeli and 
ultra-orthodox (Haredi) communities, although some progress has been made in raising 
employ ment rates by increasing the incentives to work (notably, cuts in income taxes and social 
benefits). However, income disparities and poverty levels remain high, despite some improvement 
in recent years."  
 
3. Through which strategies is Israel fighting the economic challenge related to 
productivity growth? What incentives to promote work is Israel implementing?  
 
Answer:  The government has identified the need to enhance productivity by 
implementing different types of programs, one related to advanced manufacturing and 
the other to the encouragement of employment in labor intensive sectors:  
 
1. The adoption of advanced manufacturing techniques is at the core of a national 
program, led by the Ministry of Economy and Industry, aiming to increase productiv ity, 
improve the competitiveness of Israeli factories, as well as their profitability and the 
average salary they pay. This program seeks also to focus on Israel's relative advantage 
in fields such as Big Data for manufacturing, Industrial IoT, Robotics, M achine Learning, 
Cyber defense for the industrial arena, additive manufacturing and more. The program 
will provide both the adequate infrastructure for the transition of the industry from 
traditional means of production to the more advanced ones as well as  the relevant funds 
to support the Research and Development of such technologies and their 
implementation throughout the industrial sector. In addition, a plan to establish a 
national Advanced Manufacturing Institute in Israel, which will coordinate the 
development and implementation of the Advanced Manufacturing transition of the 
industrial sector, is currently in its final stages.  
 
2. A program to increase the supply of skilled workforce in the Hi -Tech sector:  
While recognizing that the Hi -Tech sector has  been the growth engine of the Israeli 
economy in the last two decades, Israel adopted a program to increase the supply of a 
skilled workforce in the next 5 years. The measures and goals include inter alia:  
 
▪ A target of 40% increase of students in universi ties and colleges enrolled in Hi -
Tech related programs;  
▪ An increase in the number of foreign students and researchers in the Israeli 
academia;  
▪ The Israeli Innovation Authority will work to design training programs for non -
skilled employees, that is, in co operation with the industry and academia;  
▪ Promotion of training opportunities among underrepresented sectors of the 
population in the Hi -Tech sector namely: women, ultra -orthodox and Arabs;  
▪ Incorporating technological courses in the teaching programs of ultra -orthodox 
women as part of their bachelor studies;  
▪ Establishment of a range of informal programs by the Ministry of Science, 
Technology and Space to expose and train high school students in robotics, cyber, 
computers and engineering.  
 
3.3.7 Intellectual property rights, 3.3.7.2 Economic policy context. Page 57, Paragraph 3.141. 
"Rankings of the Israeli economy in global indices of innovation and competitiveness over the 
review period reflect its status as one of the most innovative econ omies. It continues its efforts to 
further improve the policy framework for its vibrant high -tech industry sector. Israel's overall 
ranking in the Global Competitiveness Index rose from 26th place in 2012 -13 to 16th in the 2017 
18 report , with its 3rd pla ce ranking in the innovation sub -category remaining unchanged 
throughout the period. Israel's ranking in the IP protection sub -category – improving from 33rd 
place in 2012 -13 to 10th place in the 2017 -18 report – reflects that IP protection is a central 
component of its overall innovation policy, which is borne out by intensive use of the IP system for WT/TPR/M/376/Add.1  
 
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  innovation outputs. In that regard, Israel ranked among the top ten countries in PCT patent 
applications per million population throughout the review period. " 
 
4. In addition to the protection of intellectual property, what are other fundamental 
components of Israel's innovation policy? Colombia would welcome a thorough 
description in order to deepen Colombia's understanding of all implemented policies as 
well as the main aspects of the country's overall innovation strategy.   
 
Answer : No one factor can be pointed to explain Israel's innovation output. Amongst the 
leading factors are included investments in educational institutions, R&D policy and 
trade policies.  
 
Some of the indicators of Israel's success in R&D are total expenditure on R&D as share 
of the GDP, venture capital availably, number of patents per capita and quality of 
research institutions. Foreign investment in R&D accounts for 57% of the t otal business 
R&D and 84% of the investments in R&D comes from the business sector; these two 
indicators reflect the attractiveness of the Israeli research environment and strong 
business driven innovation eco -system that also helps create a business envir onment 
which is conducive to entrepreneurship and favours risk - taking.  
 
The competitive advantage of the Israeli Hi -Tech sector is based on various factors, 
notably an innovation culture and infrastructure that benefits from the world's highest 
expenditur es, 4.3% as a share of GDP, for civilian R&D.  
 
Israel's innovation strategy that allows this success is led by the Israeli Innovation 
Authority and its establishment marks one of the most substantial developments in 
Israel in the field of innovation in the  past few years. The Authority was set up on the 
basis of the Office of the Chief Scientist in the Ministry of Economy and Industry. The 
objective was to fulfil the missions assigned to it by the R&D Law in a more conclusive 
way, and to provide more effici ent and high -quality service to the Israeli innovation 
community. In order to do so, the Authority operates with a structure of "innovation 
divisions".  
 
The Start -up Division offers unique tools to support the early development stages of 
technological init iatives. These tools assist entrepreneurs and start -up companies in 
developing their innovative technological concepts at the pre -seed or initial R&D stages, 
transform their ideas into reality and reach significant milestones.  
 
The Growth Division operates  a wide range of incentive programs that promote 
technological innovation of mature and growth companies. This division contributes to 
the promotion and preservation of competitiveness and technological leadership of 
companies, as well as the increase of t heir growth rates and potential.  
 
The Technological Infrastructure Division focuses on collaboration between industry and 
academia to produce advanced technologies and innovative products. The incentive 
programs offered by this division promote cooperation , exchange of knowledge and 
experience, and development of generic ground -breaking knowledge by an integrated 
group of researchers from academia and industry. These incentive programs seek to 
strengthen the long -term technological advantages of Israeli ind ustry in the face of 
fierce international competition.  
 
The Advanced Manufacturing Division focuses on promoting the implementation of R&D 
and innovation processes in companies in the manufacturing sector, in order to 
strengthen their competitiveness in th e global arena and improve productivity across a 
variety of industrial sectors. The programs offered by this division aim to boost 
manufacturing -oriented industries and encourage the owners of mainly small and 
medium sized factories to develop products, te chnologies and manufacturing processes 
to realize these goals.  
 
The Societal Challenges Division focuses on improving productivity through 
technological innovation in the public sector and social organizations. This division is 
also responsible for R&D aim ed at dealing with social and environmental challenges, WT/TPR/M/376/Add.1  
 
- 12 - 
 
  including the diversification of the population employed in the hi -tech industry and the 
creation of appropriate technological solutions for disadvantaged populations in Israel 
and abroad.  
 
The Intern ational Collaboration Division is responsible for creating bridges to new 
international markets, building platforms for cooperation in innovative R&D, and 
attracting strategic foreign stakeholders to Israel, all while creating competitive 
advantages for th e Israeli industry in the global market. These initiatives are made 
possible through an array of bilateral cooperation agreements and bi -national funds that 
support joint R&D and projects between international partners.  
 
2.3.3 Other agreements and arrangem ents. 2.3.3.1 Qualifying Industrial Zones. Page 23, 
Paragraph 2.18. "In 1996, the United States launched the Qualifying Industrial Zone (QIZ) 
initiative to support the peace process and economic cooperation in the Middle East. QIZs are 
designated industria l parks in Egypt and Jordan from which goods can be exported duty free and 
quota free to the United States. Most of the QIZ production has been in textiles and clothing, given 
relatively high tariffs on these products in the United States. According to the  authorities, the 
Jordanian QIZs have not been in use since 2010, following the full implementation of tariff 
concessions (textiles) under the U.S. -Jordan FTA. The QIZ rules require local content of at least 
35%, of which a minimum of 11.7% must be Israeli  under the Israel -Egypt QIZ agreement. The 
remaining local content may come from a Jordanian QIZ, an Egyptian QIZ, Israel, the West Bank 
and the Gaza Strip, or the United States (a maximum of 15% U.S. content). Israeli suppliers to 
the QIZ manufacturers mu st comply with the rules of origin under the Israel -U.S. Free Trade 
Agreement, i.e. a minimum of 35% local content, and substantial transformation. The QIZ 
initiative has no expiry date and thus does not require renewal by the U.S. Congress."  
 
5. What has been the result of the Qualifying Industrial Zone (QIZ) in support the Israeli 
peace process? What impact have they had at a social, commercial and political level? If 
this initiative were to be implemented in Colombia, what improvement would you 
foresee t hey could have?   
 
Answer:  The QIZ contributed substantially in strengthening the economic and trade 
relations between Israel and Egypt, as well as supporting the industries of both sides 
and facilitating Egyptian trade with the United States. Israeli exports to Egypt reached 
US$10 0 million per year, of which about US$80 million are Israeli inputs to Egyptian 
QIZs (currently 14 QIZs). In addition, as a result of the QIZ, Egyptian exports to the 
United States reached approximately US$800 million. Regarding a possible 
implementation i n Colombia, we are willing to further share our experience and discu ss 
this bilaterally.  
 
2.4 Investment Regime. Page 24, Paragraph 2.23. "The Foreign Investments and Industrial 
Cooperation Authority (formerly "Invest in Israel") under the Ministry of Econ omy and Industry is 
the Government's investment promotion arm for foreign investors. Eligible foreign or domestic 
investments in industrial projects benefit from assistance pursuant to the Law for the 
Encouragement of Capital Investment, which is managed b y the Investments Authority at the 
Ministry of Economy and Industry."  
 
6. Could you please explain in detail the strategies applied by the Foreign Investments 
and Industrial Cooperation Authority (formerly "Invest in Israel") to attract Foreign 
Investment to the country. Could Israel explain in detail the changes introduced with 
the new entity, compared to those existing under "Invest Israel", if any. Regarding the 
grants to investments in industrial projects, what are they and what do they entail?  
 
Answer:  The Foreign Investments and Industrial Cooperation Authority at the Ministry 
of Economy and Industry is responsible for promoting foreign investment, offset 
management in government procurement, and industrial cooperation agreements with 
international cor porations, no fundamental change in its responsibilities was introduced 
following the change of its name. As stated in the Report, the Authority promotes 
investments in Israel and with its assistance; eligible foreign or domestic investors in 
industrial pr ojects receive benefits they are entitled to pursuant to the Law for the 
Encouragement of Capital Investment. Please see paragraph 3.74 (page 43) of the 
Secretariat Report for more details on these benefits.  WT/TPR/M/376/Add.1  
 
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  3.3.7 Intellectual property rights. 3.3.7.3 Inte rnational context and WTO participation. Page 60, 
Paragraph 3.149. "Since the last TPR in 2012, Israel has signed and ratified WIPO's Marrakesh VIP 
Treaty which entered into force for Israel on 30 September 2016. Israel is a member of WIPO and 
a party to m ost of its treaties. The Patent Cooperation Treaty (PCT), the Protocol Relating to the 
Madrid Agreement Concerning the International Registration of Marks, and the Lisbon Agreement 
for the Protection of Appellations of Origin and their International Regist ration directly affect the 
working of the domestic system of IP protection. While a signatory to the WIPO Copyright Treaty 
and the WIPO Performances and Phonograms Treaty since 1997, Israel has not ratified these 
agreements. It is also not a signatory of t he Patent Law Treaty."  
 
7. Given Israel's highly innovative and competitive industry, which is in part due to its 
extensive experience and importance given to IP rights and policy, what is preventing 
the ratification of the Patent Cooperation Treaty (PCT),  the Protocol Relating to the 
Madrid Agreement Concerning the International Registration of Marks, and the Lisbon 
Agreement for the Protection of Appellations of Origin and their International 
Registration? Additionally, what is preventing Israel from beco ming a signatory of the 
Patent Law Treaty?  
 
Answer:  Israel has been a longstanding member of the Patent Cooperation Treaty, the 
Protocol Relating to the Madrid Agreement Concerning the International Registration of 
Marks and the Lisbon Agreement. Israel is  not a member of the Patent Law Treaty due to 
differences between certain requirements of the Patent Law Treaty and existing Israeli 
legislation.  
 
In order for trade to contribute to the economic and social development of countries, it is 
necessary it is d one in accordance with the law. However, not all exchanges have beneficial 
consequences. Fraud in international trade damages the rights of many groups in society: 
including consumers, IP right holders, taxpayers and the national industry; particularly SME s, since 
it affects security, innovation and competition. Due to stricter controls over the financial system, 
criminal organizations have been increasingly using international trade transactions for illicit 
purposes in order launder their illegal income. T he trade and commerce connected to illicit 
objectives could consequently have opposite effects to the economic and social development.  
 
8. Colombia would like to know if Israel has identified cases of trade with illicit 
purposes that occur in its territory ? What obstacles and challenges have you 
encountered when fighting against this type of trade, if any? Does Israel have any 
recommendations or lessons learned that can be shared with other members of the 
WTO?  
 
Answer:  Israel has identified the phenomenon o f using international trade as an 
instrument for laundering money or financing terror activities.  
 
There are some obstacles and challenges that we face when enforcing measures 
required in order to fight this phenomenon.  
 
The main challenges we are facing a re in the intelligence and legal spheres.  
 
We strongly support more cooperation between countries under frameworks such as 
bilateral customs cooperation agreements  
  WT/TPR/M/376/Add.1  
 
- 14 - 
 
  CANADA  
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.4.1 Patents  
3.167  
 
Question(s)  
The report notes that amendment No. 11 "introduced the early examination of a PTE application 
even if the reference extensions under the "two state requirement" have not yet been  granted in 
the reference countries". What is the "two state requirement" referenced? Could Israel further 
explain this new early examination process?  
Answer:  
Patent term extension provisions are not required by the TRIPS Agreement. 
Nevertheless, Israeli p atent legislation does provide for patent term extension orders in 
certain circumstances.  
The "two state requirement" refers to one of several pre -conditions necessary for the 
grant of an Israel Patent Term Extension Order of an Israeli basic patent (i.e. the patent 
whose duration will be extended). With respect to this pre -condition, where a 
pharmaceutical product covered by the basic patent has been approved for marketing in 
the United States of America and in at least one of five designated European Unio n 
reference countries (Italy, the United Kingdom, Germany, Spain and France – 
hereinafter "EU -5"), and a parallel patent in both the United States of America and at 
least one EU -5 state has been extended, then the "two state requirement" will be 
fulfilled.  
When said marketing approval is only granted in the U.S but not in the EU -5, or vice 
versa, then reference to an extension in "one state"  will suffice for purposes of 
obtaining an Israel PTE Order. Nevertheless, as a general rule pharmaceutical products 
covered by a patent which have utility and commercial success will have marketing 
approval in both the US and the EU -5. 
The "new early examination process" refers to certain changes in the timing of the 
examination of the PTE application. Under the new syst em the examination process can 
commence, prior to submission of information regarding "two state" reference country 
extension orders, whereas prior to amendment No. 11 the application examination 
would only commence d once all elements of the applications were on file, and in 
particular notifications regarding reference extensions.  
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.4.1 Patents  
3.167  
 
Question(s)  
The report notes that Israel's patent term extension (PTE) system expires "either before, or 
coterminous with, the earliest -expiring reference patent term extension in any of the reference 
countries". Under what circumstances can a PTE expire in Israel prior to the expiry of a protection 
in a reference country?  
Answer:  
A Patent Term Extension Order could expire prior to the expiry of a parallel protection in a 
reference country, for example, where the Israeli basic patent underlying the said PTE Order has 
been invalidated o r where the duration of the shortest reference extension would arrive at an 
expiration date that would exceed a period of 14 years from the grant of the first reference 
marketing approval in a reference country. We recall that patent term extension is not required 
under TRIPS.  
  WT/TPR/M/376/Add.1  
 
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  COSTA RICA  
Trade Policies by Sector  
4.2 Mining and Energy  
4.2.3 Electricity  
4.51 
 
In accordance with Sustainable Development Goal (SDG) 12 (c)2, how does Israel intend to 
rationalize the inefficient use of subsidies for fossil fuels  that encourage wasteful consumption in 
such a way as to avoid disadvantages in the absorption of renewable energies?  
 
Answer : Israel does not maintain subsidies for fossil fuels.  
 
4. Trade Policies by Sector  
4.2 Mining and Energy  
4.2.3 Electricity  
4.51 
 
Could Israel elaborate on the specific measures being implemented in order to meet Israel's 
objectives of generating renewable energy for environmental purposes (Paris Agreement)? Is 
Israel still maintaining the objective of generating at least 10% of renew able energies by 2020?  
 
Answer:  An overview of Israel's renewable energy scheme is available in pages 19 -20 of 
the document in following link:  
http://www.medreg -regulators.org/Portals/_default/Skede/Allegati/Skeda4506 -233-
2018.3.9/RES_Benchma rking.pdf?IDUNI=ygbawh5lnnkutwk2j0z1k2yy8432  
 
Trade Policies by Sector  
4.2 Mining and Energy  
4.2.3 Electricity  
4.51 
 
In accordance with Sustainable Development Goal (SDG) 12 (c)3, how does Israel intend to 
rationalize the inefficient use of subsidies for fossil fuels that encourage wasteful consumption in 
such a way as to avoid disadvantages in the absorption of renewable energies?  
 
Answer : The only measure concerning consumer support for fossil fuels in Israel is a tax 
rebate on diesel fuel for commercial vehicles. Israel is committed to its renewable 
energy targets, which focuses on increasing the share of RES in electricity generation, 
and should not be affected by the tax rebate measure.  
 
  
                                                
2 See (https://sustainabledevelopment.un.org/sdg12 ). Rationalize inefficient fossil -fuel subsidies that 
encourage wasteful consumption by removing market  distortions, in accordance with national circumstances, 
including by restructuring taxation and phasing out those harmful  subsidies, where they exist, to reflect their 
environmental impacts, taking fully into account the specific needs and conditions of d eveloping countries and 
minimizing the possible adverse impacts on their development in a manner that protects the poor and the 
affected communities . 
3 See ( https://sustainabledevelopment.un.org/s dg12). Rationalize inefficient fossil -fuel subsidies that 
encourage wasteful consumption by removing market distortions, in accordance with national circumstances, 
including by restructuring taxation and phasing out those harmful subsidies, where they exis t, to reflect their 
environmental impacts, taking fully into account the specific needs and conditions of developing countries and 
minimizing the possible adverse impacts on their development in a manner that protects the poor and the 
affected communities . WT/TPR/M/376/Add.1  
 
- 16 - 
 
  JAPAN  
4. TRADE POLICIES BY  SECTOR  
4.4 Services  
4.47 
 
Question(s)  
With regard to data obtained within Israel, does Israel have any measure in effect which obliges 
private companies to store or process such data using computer facilities located within Israel? If 
any, could Israel elaborate concrete regulation s concerning such measure?  
Answer:  
The Privacy Protection Regulations (Transference of Data to Databases Located outside 
the State of Israel), 2001, regulate trans -border data flows. In principle, the transfer of 
data from databases within Israel to a loca tion outside the country is prohibited. 
However, the regulation clearly provides legal basis for cross border transfer of data 
under certain circumstances.  
Additionally, the Privacy Protection Regulations (Data Security), 2017, which came into 
force in May 2018, apply to both private and public sectors. The regulations establish 
organizational mechanisms aimed at making data security part of the management 
routines of all organizations processing personal data, and maintain a reference to the 
abovementioned regulations when transferred for processing by a third party service 
provider if that service provider is located outside of Israel.  
4. TRADE POLICIES BY  SECTOR  
4.4 Services  
4.47 
 
Question(s)  
Does Israel have any measure in effect which restricts cross -border transfer of information 
including personal information? If any, could Israel elaborate concrete regulations concerning such 
measure?  
Answer:  
The Privac y Protection Regulations (Transference of Data to Databases Located outside 
the State of Israel), 2001, regulate trans -border data flows. In principle, the transfer of 
data from databases within Israel to a location outside the country is prohibited. 
Howev er, the regulation clearly provides legal basis for cross border transfer of data 
under certain circumstances.  
Additionally, the Privacy Protection Regulations (Data Security), 2017, which came into 
force in May 2018, apply to both private and public secto rs. The regulations establish 
organizational mechanisms aimed at making data security part of the management 
routines of all organizations processing personal data, and maintain a reference to the 
abovementioned regulations when transferred for processing by a third party service 
provider if that service provider is located outside of Israel.  WT/TPR/M/376/Add.1  
 
- 17 - 
 
  CHINA  
Part I. Questions based on Report by the Secretariat  
Page 24, para 3.4  
"Israel has a fully computerized customs system to which all customs agents are linked. The 
services of a customs broker/agent are not mandatory for commercial imports. A company may 
request special authorization from the ITA to have a direct link to the c ustoms systems if it 
employs a licensed customs clerk with at least five years of experience. Since 2008, Israel 
Customs operates a single window with electronic processing of import permits through the 
competent authorities: the Ministry of Economy and In dustry, the Ministry of Transport and Road 
Safety, the Ministry of Energy, the Ministry of Health, and the Israel Standards Institute. There are 
seven customs houses."  
 
Question 1: please further introduce the overall planning and specific progress of the 
development of single window in Israel, as well as the challenges encountered in 
operation.   
 
Answer:  The competent authorities send out their resolutions simultaneously both to the 
submitting entity such as the importer and the Customs Authority. As a result of the 
transmission of the respective import declaration to customs, the resolution is available 
in the Customs Authority's foreign trade system.  
 
The most recent upgrades included adding the following government ministries to the 
system:  
Ministry o f Communications, Ministry of Culture and Sport, Israel Antiquities Authority , 
Ministry of Agriculture and Rural Development, Ministry of Environmental Protection  
 
Page 27, para3.7  
"According to the World Bank's ease of trading across borders ranking, regarding border 
compliance, it takes 64 hours and US$307 to import into Israel (down from 240 hours and US$545 
in 2012). This is more than the OECD high income countries average (Table 3.2).3 In the World 
Bank's Logistics Performance Index (LPI), Israel r anked 28th (23rd for customs) out of 160 
countries in 2016 (41st in 2014)."  
 
Question 2: please further explain the reason why customs clearance costs in Israel stay 
at a high level, what are the measures taken to reduce customs clearance costs, and 
what a re the effects.  
 
Answer:  According to our understanding  the World Bank's  rating was based on data that 
included some procedures that are not within the scope of the Customs Authority. For 
example, the  costs and time lines for unloading shipments at the por ts are not 
controlled by  the Customs Authority. Therefore, in our view  the rating is an inaccurate 
indicator for the performance of customs clearance. Taking into consideration only the 
factors that are under the Customs Authority's responsibility 95% of t he import 
consignments to Israel are released within one hour.  
 
Page 28, para 3.8  
"Customs valuation is based on the transaction value, adjusted to reflect costs and services that 
are not already included in the purchase price (Customs Ordinance Amendment Law of 1997).5 
The ITA provides an electronic facility for advance rulings regarding the classification of goods. 
Customs appeals procedures are set out in the Customs Ordinance of 1957. In cases of 
disagreement with the authorities, the importer must stip ulate on the import declaration form that 
the disputed customs duties were paid under protest. Appeals must first be made to the High 
Customs Authority and then to the courts; they may be lodged against any customs decision."  
 
Question 3: please explain th e customs valuation rules and procedures, clarify whether 
such rules and procedures comply with Article VII of the General Agreement on Tariffs 
and Trade (GATT) and the Customs Valuation Agreement dated in 1994, and indicate the 
reasons why HS 17 is not re vised.  
 
Answer:  Israel has implemented the WTO Agreement on Customs Valuation since 
January 1998. Under the Customs Ordinance Amendment Law of 1997, the basis for WT/TPR/M/376/Add.1  
 
- 18 - 
 
  customs valuation is the transaction value. The transaction value is defined as the price 
paid or payable for the goods when they are sold for export to  Israel. Ad valorem  duties 
are applied on the transaction value, adjusted to reflect some costs and services not 
already included in the price incurred by the buyer. The costs and services include those 
for fees and commissions (other than buyer's commissions); containers; p ackaging; 
royalties and license fees; transportation to the ports;  loading, unloading and handling; 
and insurance.  
 
Separately, Israel is in the process of transposing its bindings from HS12 to HS17.  
 
Page 27, para 3.9  
"In July 2014, Israel notified its Category A commitments under the Trade Facilitation Agreement 
(TFA).6 The Agreement was ratified and entered into force on 8 December 2017."  
 
Question 4: please specify whether Israel has established the National Trade Facilitation 
Committee, the leading d epartment of the Committee, and the model through which the 
business circle participates in the Committee.  
 
Answer:  
Israel has established its national committee on trade facilitation.  
The committee consists of 6 members:  
• 2 from the international department of the Israeli Customs Authority  
• 1 customs expert on clearance process  
• 1 legal advisor  
• 2 representatives from the Foreign Trade Administration of the Ministry of 
Economy and Industry  
 
The committee is the led by the Customs Authority in collaboration with the Ministry of 
Economy and Industry.  
 
Regarding the participation of the business community, we maintain on -going contact 
with the business sec tor and consult them regularly.  
 
Page 70, para 4.3  
"About 93% of land (1,959,800 ha) in Israe l is publically owned, either by the State, the Jewish 
National Fund or the Development Authority, and managed by the Israel Land Authority. Of this 
area, about one quarter is designated as agricultural land."  
 
Question 5: How does the owner of each type of land obtain the land right?  
 
Answer:  All state owned land ("Israeli Land") is administered by the Israel Land 
Administration (ILA). "Ownership" of real estate in Israel usually means leasing rights 
from the ILA for 49 or 98 years.  
 
Question 6: How does  Israel determine the area of land for agriculture it needs?  
 
Answer:  The Ministry of Agriculture and Rural Development is about to finalize a 
strategic plan for Israeli agriculture for the coming decade 2020 -2030. The future needs 
of Israel in terms of ov erall agricultural land aspects is one of the main pillars of that 
strategic plan. The main tool for this specific issue is the Ministry's Planning Policy 
Document – "Mapping the Agricultural Land in Israel", whose main outputs are:  
 
1. The scope and location  of areas required to maintain agricultural production 
capacity in Israel, in correlation to population growth and the comprehensive 
economic policy  
2. Future demand for cultivated agricultural land  
3. Allocation of agricultural land to the rural communities  
4. Foreseen changes of agricultural land uses  
5. Allocation of water for agriculture  
6. Determining areas' statutory status for agricultural land  
7. Basic data for any future planning of agriculture in Israel  WT/TPR/M/376/Add.1  
 
- 19 - 
 
  Page 83, para 4.45  
"Israel Natural Gas Lines Ltd. (a state -owned enterprise) holds a licence to operate and develop 
the natural gas transmission system. The regional distribution networks are operated by the 
private sector; distribution licences are issued by public tender. To encourage a competitive 
dome stic market for natural gas, the Natural Gas Authority requires the national or regional 
licensees to provide open access without discrimination to all consumers and marketers of natural 
gas.24 Service fees for infrastructure services (transmission and dis tribution) require approval 
from the regulator; consumer prices of natural gas are not regulated."  
 
Question 7: in addition to Israel Natural Gas Lines Ltd., which companies hold licenses 
as well? Are foreign companies allowed to participate in this area? Is there any foreign 
company participating in so far?  
 
Answer:  At this point no other company holds a license to develop and operate a natural 
gas transmission system and there is no plan to allocate such additional license.  
 
Page 83, para 4.46  
"Liquefied natural gas (LNG) is one of the main sources of energy in Israel, especially for home 
use. Israel has a consumption of LNG of about 650,000 tons annually, of which 40% are imported 
via the Hadera Deepwater LNG Terminal. The market is divided int o two groups: 4 large 
companies hold a market share of approximately 85%, and about 20 companies account for the 
rest. In September 2016, the Israel Antitrust Authority initiated an investigation into suspected 
collusion between companies operating in the LNG market. Also, in 2016, the Israel Antitrust 
Authority published a draft report on the domestic gas market for public comment, as part of the 
Government's efforts to promote competition. Some of the conclusions of the examination were 
implemented in the  Economic Arrangements Bill (supplementary legislation to the state budget). 
The Bill was enacted in January 2017. Rules were included to reduce obstacles for consumers to 
change their gas supplier, and price discrimination between consumers connected to t he same 
central gas system was prohibited. The Fuel Authority in the Ministry of Energy has established an 
Internet price system that enables consumers to choose the company that gives the best price in 
the town or region."  
 
Question 8: how are the anti-monopoly measures in LNG market performed?   
 
Answer:  Due to a typographical error in the report, the energy source mentioned is LNG 
(Liquefied Natural Gas) while the paragraph actually refers  to the market of LPG 
(Liquefied Petroleum Gas). Currently, there is no LNG market in Israel and therefore the 
question regarding LNG is not relevant.  WT/TPR/M/376/Add.1  
 
- 20 - 
 
  FOLLOW UP QUESTIONS FROM CHINA  
Part I. Questions based on Report by the Secretariat  
 
Page 7, summary 12  
“A tax reform for alcoholic beverages was implemented in 2014 and the TAMA (a type of import 
surcharge which approximates domestic wholesale prices) was cancelled and replaced by a specific 
tax on imports and domestic products alike. VAT accounts for about  30% of Israel's tax revenues; 
VAT is applied on imported and domestic goods and services. The standard rate for VAT was 
increased from 16% to 17% in 2012 and to 18% in 2013. In October 2015, it was decreased to 
17% (at a cost to government revenue equival ent to 0.4% of GDP). A number of items, including 
fruit and vegetables, are zero -rated. Alcoholic beverages, cigarettes and fuel are subject to excise 
tax.” 
 
Question 1: Please explain the specific contents of the aforesaid specific duty, and brief the rol e 
and impact of such tax measures. In addition, please explain the relationship between such 
specific duty and consumption tax.  
 
Answer:  TAMA is applied to a very limited number of imported goods where a purchase 
tax is imposed and is expressed in ad valor em terms rather than specific duties. The 
purpose of TAMA is to equate the purchase tax calculation basis for domestically 
manufactured goods and imports. As the basis for calculation of the tax for domestic 
goods is the wholesale price (thus increasing th e calculation basis), TAMA is added to 
the import price.  Alternatively, importers have the option of declaring the actual 
wholesale value of their products.  
 
Page 54, para 3.126  
“In 2014, a new three -year privatization scheme of NIS 20 billion (1.75% of GDP) was launched, 
involving the full divestment of some SOEs, including the ports and the postal service, and a series 
of partial privatizations through initial public offerings ( electricity, water and defence). In addition 
to the public revenue generated, the authorities also expect it to have a positive impact on the 
firms' management and performance as a result of their increased exposure to market forces and 
stricter transparen cy requirements.”  
 
We note that Israel has made commitments to postal services (CPC75111 -2) and express services 
(CPC7512) for addressed letters over 500g in its WTO commitments.  
 
Question 2: How is the privatization of postal enterprise in Israel? Is it c ompletely privatized? 
What’s the impact on the postal market? Do you want to keep the franchise of addressed mail over 
500g?  
 
Answer:  During the past few weeks the process of privatization of the Israel Postal 
Company was approved and it includes, in the f irst stage, the selling of 20% of the 
company to a private investor. The second stage is planned to take place within two 
years from the end of the first stage and includes selling of an additional 20% to the 
public (issuance of shares).  
 
Postal services of addressed mail up to 500g and priced up to 5.4 NIS is cur rently not 
open to competition.  
 
Question 3: Is there any foreign postal enterprise that provides postal services in Israel?  
 
Answer:  There are no enterp rises operating in the form of ETOES (Extraterritorial Office 
of Exchange) in Israel.  
 
Question 4: What is the status quo of express service in Israel? Does the establishment of a 
foreign express enterprise in its territory need to undergo approval procedures or comply with 
other requirements ? 
 
Answer:  There are several international express service corporations such as UPS, DHL, 
TNT, FedEx and more that are operating in Israel.  WT/TPR/M/376/Add.1  
 
- 21 - 
 
  In case these companies want to provide postal services of addressed mail up to 500g 
and priced over 5.4 NIS, they a re required to obtain a permit from the Ministry of 
Communications.  
 
Question 5: What are the specific regulations and requirements for the customs clea rance of 
international express?  
 
Answer:  Assuming that  the word 'express' refers to expedited shipments using couriers 
(such as DHS, DHL and the like), customs clearance is carried out in the following 
manner: using an abbreviated import declaration, pre -arrival information is provided to 
the Customs Authori ty by the courier companies. Goods then can be cleared from 
customs upon their arrival into Israel through immediate release.  
 
Page 70, para 4.4  
“About 80% of agricultural products are from kibbutzim and moshavim cooperatives on land 
leased from the Israel Land Authority subject to some conditions which include prohibitions on: the 
exchange of land use rights; sub -leasing; and the division of plots through succession.”  
 
Question 6: Please specify whether the subject of the leased land is individual or cooper ative 
 
Answer:  The land is leased to cooperatives (moshavim and kib butzim) and not to 
individuals.  
 
Question 7: Please elaborate on the current land lease system, and indicate on which domestic 
laws or documents the current land lease system is based  
 
Answer:  The following are the main domestic laws and documents which form the basis 
for the current land lease system:  
 
A. Basic Law: Israel Lands - determines that the ownership of Israel's lands will not be 
transferred by sale or in any other manner s ubject to exceptions determined  by the 
Israel Lands Law of 1960.  
 
"Israel's lands" are lands of the State of Israel, the Development Authori ty or the Jewish 
National Fund.  
 
B. Israel's Lands Authority Law - 1960 is the law establishing the Lands Administration  
as the responsible authority for administering Israel's lands. In 2013 the Israel Lands 
Administration bec ame the Israel Lands Authority.  
 
C. Israel Lands Law -1960 (referred to above)  
 
D. Land Regulations (Administration and Registration) -2011  
 
E. The Ch arter between the Government of Israel and the Jewish National Fund of 1961 -
determines that the land,  held by the State, the Development Authority and of the 
Jewish National Fund will be administered by the State. Pursuant to this Charter the 
government  established the Israel Lands Administration. The Charter also reiterates the 
principle that these lands will be transferred only by lease and their ownership will not 
be transferred.  
 
A person acquiring an apartment or house on land administered by the Lands  Authority 
signs a lease with the Lands Authority which ensures the leased rights (long term lease 
usually for a period of 49 years) but ownership on the land remains of the State of 
Israel, the Development Authority or the Jewish National Fund.  
 
The lease d rights are registered in the land registry maintained by the Ministry of 
Justice on condition that the land is parcelized.  
 
In accordance with the law and decisions of the Land Council under certain conditions it 
is possible to switch from a lease to own ership of the land.  
 WT/TPR/M/376/Add.1  
 
- 22 - 
 
  Page 71, para 4.5  
“One of the main differences between kibbutzim and moshavim is that, on a kibbutz, land is 
managed and worked communally, while on a moshav each actively farming household works a 
separate farm and the moshav operates  as a cooperative for purchases, sales, and joint ownership 
of some assets. In addition, there are second order cooperatives (i.e. cooperatives made up of 
other cooperatives) which provide a wide range of services, including collective purchases and 
sales,  and which process outputs from the first order cooperatives. These second order 
cooperatives may operate at the national level. In addition, some moshavim operate cooperatives 
with other moshavim, and kibbutzim with other kibbutzim, on a regional basis. I n 2014, it was 
reported that there were 442 moshavim operating, where most members worked on non -
agricultural activities and production was concentrated in a declining number of specialized farms. 
Similarly, in the 286 kibbutzim, growth is focused on non -agricultural activities, and a growing 
number of members work outside the kibbutz.”  
 
Question 8: Please explain what exactly does “non -agricultural activities” referred  to in the above 
paragraph mean  
 
Answer:  Regarding the members themselves “non -agricultural activities” refers to 
working in different sectors other than agriculture either as business owners or as 
employees.  
 
For the kibbutzim and moshavim, the meaning is that some of them set up industrial 
companies and factories within their territory which are owned and managed by the 
kibbutz/moshav.  
 
Page 80, para 4.37  
“According to the OECD, the TSE for agriculture was NIS 5,794 million in 2016, compared to a 
peak of NIS 5,993 million in 2015. Of total supp ort to agriculture, the PSE accounted for NIS 
5,226  million and, of the PSE, market price support accounted for NIS 4,333 million. While the 
minimum prices for milk and eggs account for some of the market price support, most of it arises 
from border measur es, particularly tariffs, which keep domestic prices higher than international 
ones. The Producer Nominal Protection Coefficient (Producer NPC) was 1.15 across all 
commodities, indicating that domestic prices are about 15% higher than international referen ce 
prices, but the Producer NPC for some commodities was much higher: at 1.66 for milk; 1.32 for 
poultry meat; and 2.02 for bananas. However, the use of administered prices also means that 
market price support may be negative if the external prices are hig her than the administered 
price, which happened in 2015 for wheat and in 2013 for eggs (Table 4.8). ”  
 
Question 9: Please explain the predictable negative impacts.  
 
Answer:  OECD support calculations (TSE and PSE) are intrinsically different from WTO 
domestic support calculations, as they are based on different principals and formula. 
While OECD calculations take into account border measures, particularly tariffs, Israel's 
tariffs for most agricultural products are well below its bound tariffs. Market Price 
Support calculations are also non -comparable. While OECD MPS indicator for eggs in 
2012 was ( -188) million NIS, the Total Market Price Support calculated for eggs in the 
WTO DS:1 2012 report was US$119 million ( NIS 459 million). Therefore, no specific 
negative impacts can be predicted by comparing the two reports.  
 
Part II. Questions based on Report by I srael  
Part III. Other questions  
 
Question 10: What are the tax benefits that foreign investors can get if they set up R&D centers in 
Israel? Please also introduce the names of relevant laws or acts.  
 
Answer:  Under the Law on Encouragement of Capital Investment, foreign investors 
setting up an R&D centre in Isr ael can enjoy a tax benefit under which the corporate tax 
paid will be 16% in the centre of Israel and 7.5% in the pe riphery areas (instead of 
23%).    WT/TPR/M/376/Add.1  
 
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  NEW ZEALAND  
Report by the WTO Secretariat (WT/TPR/S/376)  
 
WT/TPR/S/376, Summary, page 8  
Paragraph 23 of the Secretariat report notes that while Israel exceeded its total Aggregate 
Measurement of Support (AMS) commitment level for the period 2011 to 2014, for 2015 and 2016 
Israel's notified total AMS level for these years is below its commitme nt level.  
 
Question  1: 
What policy changes has Israel undertaken that have ensured it did not exceeded its total AMS 
commitments in 2015 and 2016, and will these changes ensure that it does not exceeded this 
important commitment level in future years?  
 
Answer:  Discussions are still being held between relevant stakeholders and government 
representatives regarding reforms in the dairy and table eggs sectors with government 
support, with the following aims:  
 
1. Improving production infrastructures in terms of animal welfare and 
environmental aspects  
2. Expanding the units of production in order to improve farmers' profitability and 
mainly further reducing the costs of production in order to further reduce 
consumer prices of these products  
3. Further liberalization of  trade measures regarding increased imports of these 
sectors' related products  
 
SECTIONS: SUMMARY / ECONOMIC ENVIRONMENT / TRADE POLICIES AND PRACTICES 
BY MEASURE / TRADE POLICIES BY SECTOR  
Sub-section title: Summary / Main Features of the Economy / Measur es Directly 
Affecting Imports / Internal Policies  
WT/TPR/S/376, Summary and sections 1, 3 & 4, pages 6, 13, 29 & 76, sub -sections 1.2, 
3.1.3.1, 4.1.1.3.2  
 
Paragraphs 7, 1.14, and 3.15 of the Secretariat report note that popular discontent in 2011 led 
Israel to undertake reforms aimed at increasing competition, which resulted in Israel's average 
MFN tariff reducing from 7.6% in 2012 to 5.2% in 2018. These reforms included the elimination of 
import duties and the opening of autonomous tariff quotas including for some agricultural 
products.  
 
Paragraph 4.20 of the Secretariat report further notes that Israel's dairy industry remains closely 
regulated and controlled through production quotas, reregulated prices for milk from producers, 
and regulated retail prices  for milk and other dairy products.  
 
Question 2:  
Does Israel intend to continue to support increased competition in its domestic industries, 
including it dairy and meat industries, through further liberalisation of import duties?  
 
Answer: Israel is evaluating competition in its domestic industries, including its dairy 
and meat industries, through further liberalization of import duties by means of opening 
voluntary TRQs with reduced or zero tariff rates.  
 
As part of pilot programs in the be ef, dairy and fisheries sectors, the following steps 
have been taken:  
 
1. Beef  
• Increased TRQs for imported fresh and chilled beef from 7,500 tons in 2016 to 
17,500 tons in 2020, combined with gradual reduction of the MFN tariffs on the 
out of quota import s from 12% plus 1,300 ILS (USD 339) per ton in 2016 to 12% 
with zero ILS in 2020.  
 
 WT/TPR/M/376/Add.1  
 
- 24 - 
 
  2. Dairy  
• Gradual liberalized import regime for selected dairy products has been put in 
place as follows:  
Full Exemption WTO TRQs (Tonnes)  
Product  Yoghurt  Butter  Cream  
2014 1,250  750 750 
2015 1,500  1,000  1,000  
2016+  2,000  1,250  1,200  
 
 Full Exemption WTO TRQs (Tonnes)  
Product  Semi -Hard Cheese  
2014 4,200  
2015 4,800  
2016 5,400  
2017 6,000  
2018+  6,500  
 
3. Fishery  
• Custom duties for Tilapia, Carp, and Mullet (fresh, frozen and fillet) were reduced 
by 50% from 15 NIS/KG to 7.5 NIS/KG. Further tariff reductions will be 
examined based on fish growers' profitability over the coming years.  
 
SECTIONS 1 & 4: ECONOMIC ENVIRONMENT / TRADE POLICIES BY SECTOR  
Sub-section title: Main Features of the Economy / Policies  
WT/TPR/S/376, sections 1 & 4, pages 13 & 73, sub -sections 1.2 & 4.1.1.3  
 
Paragraph 4.11 of the Secretariat report notes that the Government maintains a significant role in 
agriculture, and the overall policy objective has been to ensure food security, including through 
self-sufficiency in fresh dairy products, poultry, and eggs . Paragraph 1.14 of the report, however, 
notes that public protests occurred in 2011 due to the high price of dairy products in particular, 
and reforms to stimulate competition have been undertaken as a result.  
 
Question 3  
How has Israel's reforms supporte d its overall policy of ensuring food security, and what is the 
impact of its extensively regulated agricultural industries?  
 
Answer:  The reforms have not addressed food security issues directly. The impact of the 
regulated agricultural industries may be r eflected in relatively high consumer price, 
mainly of meat and animal products.  
 
SECTION 3: TRADE POLICIES AND MEASURES  
Sub-section title: 3.1 Measures Directly Affecting Imports  
WT/TPR/S/376, section Trade Policies and Measures, page 27, sub -section 3.1.1  
Customs procedures, valuation, and requirements  
 
Paragraph 3.8 on page 27 notes that the Israel Tax Authority provides an electronic facility for 
advance rulings regarding the classification of goods. The report appears to be silent on other 
types of customs rulings such as advance rulings on origin of g oods and valuation methodology.  
 
Questions 4 and 5  
Could Israel advise whether it has provisions for the issuance of advance rulings on origin matters 
and valuation methodology? and;  
 
Answer:  Yes. 
 
If it has provisions, could Israel elaborate on timeframes for advance rulings, who can apply and 
fee structure?  
 
Answer:  The advance ruling on origin will be given within 45 days of applying for an 
advance ruling. There is no limitation on who can apply and no fee is required.  
 WT/TPR/M/376/Add.1  
 
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  SECTION 3: TRADE POLICIE S AND PRACTICES BY MEASURE  
Sub-section title: Measures Directly Affecting Imports  
WT/TPR/S/376, section 3, page 28, Table 3.3  
The applied MFN tariff on agricultural products was at 19.1% in 2018, while non -agricultural tariffs 
were 3%. We welcome Israel's reduction of tariffs on certain agricultural products since its 2012 
review. This was an encouraging improvement on the 2012 figure of 27.7%, but tariffs on 
agricultural products remain higher than tariffs on non -agricultural products.  
 
Question 6  
 
New Zea land commends Israel as being among the first to implement the Nairobi Decision on 
Export Competition by submitting an amended schedule.  Is Israel considering any further 
reduct ions on tariffs on agriculture?  
 
Answer:  Further reductions of tariffs on agriculture are considered from time to time 
within different contexts such as:  
1. Israel's future FTAs  
2. Future agreement on the multilateral level  
3. As part of an overall reform in the agricultural support system  
 
WT/TPR/S/376, section 4, page 73, sub -section 4 .13 
There is an average MFN tariff of 65.6% on dairy products.  
 
Question 7  
We would welcome further information from Israel on whether it is considering any steps to reduce 
tariffs on dairy products.  
 
Answer:  Reforms in the agricultural support system of Israel, inter alia, the shift from 
indirect measures such as high tariff rate to direct budgetary support, is under an 
ongoing evaluation. As far as the dairy sector is concerned, the government has granted 
ILS 65 million of direct support to dairy farmers for the years 2014 -2018, mainly aimed 
for production upgrading investments. In return, the guaranteed prices for raw milk 
decreased in 2016 – by an average of 9% and gradual liberalized import regime for 
selected dairy products has been put in place as follows:  
 
Full Exemption WTO TRQs (Tonnes)  
Product  Yoghurt  Butter  Cream  
2014 1,250  750 750 
2015 1,500  1,000  1,000  
2016+  2,000  1,250  1,200  
 
Full Exemption WTO TRQs (Tonnes)  
Product  Semi -Hard Cheese  
2014 4,200  
2015 4,800  
2016 5,400  
2017 6,000  
2018+  6,500  
 
Further steps are being considered.  
 
SECTION 4: TRADE POLICIES BY SECTOR   
Sub-section title: 4.1: Agriculture, Forestry and Fisheries  
WT/TPR/S/376, section 4, page 70, sub -section 4.13  
The average applied MFN tariff is particularly high on fish and fishery products, at up to 146.3%. 
This well exceeds the average maximum tariff on non -agricultural products (12%).  
 
Questions 8 and 9  
 
Can Israel provide further information on why its tariffs on fish an d fishery products are this high?   
Is Israel considering reducing the tariffs on fish and fishery products?  WT/TPR/M/376/Add.1  
 
- 26 - 
 
  Answer:  Israel imports about 80% of its fish consumption. Therefore most of its fish 
tariff lines are duty free. The tariff on fish species produced  in Israel has a higher tariff 
rate. However, a special upgrading program consisting of ILS 30 million has been 
granted to this sector for R&D and marketing promotion of fresh fish as well as for direct 
payments based on past production -for the period 201 6 until 2023. In addition, ILS 77 
million will be allotted in the years 2017 to 2020 as support to the fish growers in the 
form of 60% grants for the implementation of an environmental related reform. 
Furthermore, custom duties for tilapia, carp, and mulle t (fresh, frozen and fillet) were 
reduced by 50% from 15 NIS/KG to 7.5 NIS/KG. Further tariff reduction will be 
examined, based on fish growers' profitability.  
 
Sub-section title: 4.2 Mining and Energy  
WT/TPR/S/376, section 4, page 84, sub -section 4.23  
Paragraph 4.51 of the Secretariat Report notes that Israel has established targets under the Paris 
Agreement for renewable energy use, aiming for 10% by 2020 and 17% by 2030. It also notes 
that the transition is behind target, at 3% of total energy generat ion in 2017  
 
Question 10 and 11  
New Zealand welcomes Israel's efforts to encourage the uptake of renewable energy. How does 
the Government intend to get back on track to meet its stated targets?  
 
Answer:  An overview of Israel's renewable energy scheme is available in pages 19 -20 of 
the document in following link:  
http://www.medreg -regulators.org/Portal s/_default/Skede/Allegati/Skeda4506 -233-
2018.3.9/RES_Benchmarking.pdf?IDUNI=ygbawh5lnnkutwk2j0z1k2yy8432  
 
• How does Israel intend to rationalize any inefficient fossil -fuel subsidies that encourage 
wasteful consumption in line with SDG 12(c) so as to avo id disadvantaging renewable 
energy uptake?  
 
Answer: Israel does not maintain subsidies for fossil fuels.  
 
Revised Answer to New Zealand  
 
Sub-section title: 4.2 Mining and Energy  
WT/TPR/S/376, section 4, page 84, sub -section 4.23  
 
Paragraph 4.51 of the Secretariat Report notes that Israel has established targets under the Paris 
Agreement for renewable energy use, aiming for 10% by 2020 and 17% by 2030. It also notes 
that the transition is behind target, at 3% of total energy generation in 2017  
 
Questions  11 
How does Israel intend to rationalize any inefficient fossil -fuel subsidies that encourage wasteful 
consumption in line with SDG 12(c) so as to avoid disadvantag ing renewable energy uptake?  
 
Answer: The only measure concerning consumer support for fossil fuels in Israel is a tax 
rebate on diesel fuel for commercial vehicles. Israel is committed to its renewable 
energy targets, which focuses on increasing the share of RES in electricity generation, 
and should not be affected by the tax rebate measure . 
 WT/TPR/M/376/Add.1  
 
- 27 - 
 
  RUSSIAN FEDERATION  
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/376)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements . 
page 47, paragraph 3.92  
 
Israel has made a total of 13 notifications (including revisions, addenda, and corrigenda) to the 
WTO on SPS measures, most recently in 2011 on the approximation with OIE guidelines relating to 
BSE on the importation of live animals and animal products.61 Four specific trade concerns have 
been raised about SPS measures taken by Israel, all of which have been resolved.62 In addition to 
notifications of SPS measures, some of the notifications on technical barriers to trade are 
concerned with protection of hum an health or safety, protection of animal or plant life or health, or 
protection of the environment. From 1 January 2012 to 31 December 2017, 60 such notifications 
were made (including revisions, addenda, and corrigenda) about products under HS headings 1 to 
24 (all for food and beverages, except for one notification on tobacco products). Some of these 
notifications may include references to SPS measures.  
 
Question №1:  According to the Secretariat Report, Israel has not made SPS notifications since 
2011. H owever, 60 TBT notifications contain information about SPS -related issues. Does Israel 
intend to notify SPS measures which came to force since 2011 as SPS notification ? 
 
Answer:  During the preparation of the Secretariat Report we have been made aware 
that some TBT notifications may, in fact, be more relevant to the SPS mechanism. We 
thank the Secretariat and Members for drawing our attention to that possibility. We plan 
to look i nto the matter. Any Member that has an interest in a particular TBT notification 
is invited to indicate it to us.  
 
Plant protection and inspection services  
page 49, paragraph 3.101  
Under the Plant Import Regulations of 2009, importers of many plant produc ts (as listed in 
Annexes 3 and 4 of the Regulations) no longer require an import permit, provided:  
 
- the plant products are not used for propagation, unless imported for this purpose and, if so, the 
relevant authority of the exporting country certifies t hat the material is not genetically modified;  
 
- for products listed in Annex 3 of the Regulations, the importer attaches to the consignment a 
certificate of origin. Annex 3 includes several major plant products, including: dried grains for 
human consumpt ion, animal feed or oil extraction (excluding cotton seeds); wood products 
(excluding logs, bark and chips); shelled nuts (excluding peanuts and pecans); and dried fruit, 
vegetables, and herbs; and  
 
- for products listed in Annex 4 of the Regulations, the  importer attaches a phytosanitary 
certificate. Annex 4 includes a long list of plants and plant products, and includes requirements 
that must be met (often stating they must originate from "European countries").  
 
Question №2:  According to the Secretariat Report importers of many plants and plant products 
listed in the Annex 4 of the Plant Imports Regulation and originated in European countries no 
longer require import permit if they have a phytosanitary certificate. Please clarify are only 
European countri es included in this list? What are the criteria for inclusion of countries into the list?  
 
Answer:  The Plant Protection Regulations of 2009 define, "Countries of Europe" for the 
purposes of the regulation as Austria, Italy, Ireland, Belgium, the United Kingdom, 
Germany, Denmark, the Netherlands, Spain, Portugal, Finland, France, Sweden and 
Switzerland. These were the approved countries of origin for imports of most of the 
regulated commodities mentioned in Annex 4 prior to the 2009 revision of the 
regulations. Therefore only these countries may be exempted from import permits as 
their import requirements  were transferred to the Plant Protection Regulations. Any 
revisions to this list, included in the Regulations, require parliamentary approval.  
 WT/TPR/M/376/Add.1  
 
- 28 - 
 
  3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, insurance, and guarantees  
Page 41, paragraph 3.6 5 
The state -owned Israel Foreign Trade Risk Insurance Corporation Ltd. (ASHR'A) provides credit 
insurance to Israeli exporters, as well as credit guarantees for loans extended by commercial 
banks to exporters. ASHR'A insures medium - and long -term export cr edit transactions (ranging 
from 1 to 15 years) and Israeli investments abroad, against political and commercial risks, mainly 
in developing countries. ASHR'A covers up to 95% of losses for political risks and up to 90% of 
losses for commercial risks. There  is no maximum commitment per transaction. ASHR'A income 
consists mainly of premiums; there are no transfers from the Government. Its maximum 
guarantee exposure is US$2.5 billion.  
 
Question №3:  Please illustrate types of projects and relevant sectors supported under ASHR'A 
programs with the tenor up to 15 years? Does ASHR'A follow the provisions of the OECD 
Arrangement on officially supported export credits  with respect to medi um- and long term 
transactions?  
 
Answer:  Below are some projects under ASHR'A programs:  
• Zambia – an Infrastructure project with a 13Y tenor.  
• Papua New Guinea – agriculture project with a 10Y tenor.  
• Angola – agricultural project with a 10Y tenor.  
• Ethiopia – water project with a 10Y tenor.  
 
Yes, ASHR'A does follow the provisio ns of the OECD Arrangement on officially supported 
export credits  with respect to medium - and long term transactions  
 
Page 41, paragraph 3.66  
The Ministry of Finance (MOF) provides reinsurance for private credit insurance companies for 
short-term export transactions of up to 50% on top of the amount the private company takes upon 
itself (i.e. up to 33.3% of the entire transaction amount can be insured by the Government). A 
minimum domestic content of 40% of the insured transaction is required.  
 
Question № 4: Does the Ministry of Finance or any other Israel institution have a mandate to 
provide official export credit support via direct loans? Please specify whether any regulatory 
documents authorize commercial banks to provide export credit support? Accordin g to current 
practice, please indicate if a direct loan of a commercial bank with the ASHR'A or Ministry of 
Finance support can be qualified as an officially supported export credit.  
 
Answer:  In 2014 the Ministry of Finance launched a program for foreign t rade 
transactions in medium and long term which included cooperation with the private 
insurers dealing with credit insurance for foreign trade in Israel - the Clal Credit 
Insurance Companies and the FSB. As part of the plan, the MOF undertook to indemnify 
private insurers in a state of insolvency repayment of the insured transaction, in respect 
of receipts that are to be received during the second period of export transactions of up 
to 10 years.  
 
The plan was terminated in December 2017.  
 
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
 
Question №5:  Please specify the purposes for which the funds, invested in the improvement of 
administrative procedures in the areas of protection of patent and designs, have been allocated. 
Have the fun ds been invested in improving administrative procedures in the protection of other 
objects of industrial property?   
 
Answer:  The ILPTO has made efforts to improve efficiency and timely service, for 
example, through training and improved allocation of exist ing resources as well as 
recruitment of new patent and trademark examiners. Further improvements in 
productivity have been achieved through use of fully online service and correspondence 
systems for patents, trademark and designs applications, examinations  and 
correspondence. Also of importance has been ILPO's patent department has participated WT/TPR/M/376/Add.1  
 
- 29 - 
 
  in WIPO's global system for centralized access to search and examination (CASE) since 
2014 and computer -aided search and examination (CASE2) since 2015.  
Page 59, paragraph 3.145  
In early 2016, in an effort to  nurture and develop the Israeli innovation infrastructure, and to 
adapt and improve the innovation strategy of the former Office of the Chief Scientist (OCS), Israel 
replaced the OCS and its Industry Centre with the Israel Innovation Authority (IIA). This  new 
independent agency comprises several dedicated innovation divisions that administer programmes 
targeted at start -ups, R&D financing, technological infrastructure improvement and international 
collaboration on R&D, among others (Section 3.3.1).  
 
Questi on №6:  Please provide more details on functions and powers of the Israel Innovation 
Authority.  
 
Answer:  Strengthening the innovation ecosystem is the core mission of the Israel 
Innovation Authority, which seeks to further develop and support technological 
innovation in Israel through various tools. The Authority advises the government and 
parliament ("Knesset") committees regarding innovation policy in Israel and 
furthermore monitors and analyses the dynamic changes taking place throughout the 
innovation en vironments in Israel and abroad. It creates cooperation with counterpart 
agencies to promote technological innovation in the Israeli industry and economy.  
 
The Israel Innovation Authority provides a variety of practical tools aimed at addressing 
the dynami c and changing needs of the local and international innovation ecosystems.  
With deep knowledge and understanding of the unique challenges facing the Israeli 
companies and entrepreneurs, the tools offered by the Authority are based on the 
specific stage and  needs of the company. This includes tools for early stage 
entrepreneurs, mature companies developing new products or manufacturing processes, 
academic groups seeking to transfer their ideas to the market, multinational 
corporations interested in Israeli t echnology, Israeli companies seeking new markets 
abroad, and traditional factories and plants seeking to incorporate innovative and 
advanced manufacturing into their businesses.  
 
In order to achieve its objectives, the Israel Innovation Authority has adopt ed an 
internal structure designed to enable: task and client orientation, concentration of 
knowledge and tools under a single entity, enlargement of the offered toolbox, and 
expansion of the scope of activities beyond R&D. This strategic approach is advanc ed 
through a number of innovation divisions each focused on a specific target audience, for 
the purpose of developing and delivering dedicated solutions to their associated 
challenges.  
 
The innovation divisions include:  
• Start -up Division  (Technological Inc ubators, Early Stage)  
• Growth Division  (R&D)  
• Technological Infrastructure Division   
• Advanced Manufacturing Division  
• International Collaboration Division  
• Societal Challenges Division  
 
These divisions pave a variety of customized paths for entrepreneurs and companies to 
promote, implement and realize their innovative R&D ideas at various stages.  
 
3.3.7.3 International context and WTO participation  
Page 60, paragraph 3.149  
Since the last TPR in 2012, Israel has signed and ratified WIPO's Marrakesh VIP Treaty10 7 which 
entered into force for Israel on 30 September 2016. Israel is a member of WIPO and a party to 
most of its treaties.108 The Patent Cooperation Treaty (PCT), the Protocol Relating to the Madrid 
Agreement Concerning the International Registration of M arks, and the Lisbon Agreement for the 
Protection of Appellations of Origin and their International Registration directly affect the working 
of the domestic system of IP protection. While a signatory to the WIPO Copyright Treaty and the WT/TPR/M/376/Add.1  
 
- 30 - 
 
  WIPO Performances a nd Phonograms Treaty since 1997, Israel has not ratified these agreements. 
It is also not a sign atory of the Patent Law Treaty.  
 
Question №7:  Israel signed the WIPO Copyright and Performance and Phonogram treaties in 
1997, but has not ratified them yet. Please explain what caused the lengthy procedure of 
ratification of these treaties, as well as the non -signature of the Patent Law Treaty.  
 
Answer:  Due to substantive law differences between certain requirements of those 
treaties and existing Israeli legis lation, the Government of Israel is not presently 
contemplating ratifying any of the aforementioned agreements.  
We note that neither the 1996 WIPO treaties nor the Patent Law Treaty are covered by 
the TRIPS Agreement.  
3.3.7.4 Structure and use of the IP S ystem  
3.3.7.4.2 Industrial designs  
Page 66, paragraph 3.173  
Under the new Designs Law, an unregistered design will be protected for 3 years from the first 
publication of the design if marketed in Israel. The new Designs Law also introduces statutory 
damages of NIS 100,000 for each act of infringement, and border measures for registered design 
piracy. It establishes as a criminal offence the intentional copying of a registered design by way of 
business and in a commercial manner. Corporate officers who  – under the new law - are required 
to supervise and implement measures to avoid the offence, are also liable in that regard.  
 
Question №8:  Please describe h ow is this article implemented.  
 
Answer:  Under Israel's new Designs Law duration of protection will last for up to 25 
years from date of application with respect to registered designs. Unregistered designs 
will be protected for a period of up to 3 years, against copying, from the date of first 
publication anywhere provided that the product embodying the unregistered design is 
offered for sale in Israel within 6 months of said publication.  
Remedies for infringement include temporary and permanent injunctions, monetary 
damages based on direct losse s, lost profits and disgorgement of infringer's profits, or 
where plaintiff so elects, statutory damages (i.e. court estimated damages, without 
actual proof of extent of damage) not to exceed 100,000 NIS per infringement. In 
determining the amount of statu tory damages in a particular case the court may take 
into account several factors, including, the scope and severity of the infringement, 
estimated actual injury caused, court estimate of the defendant's profits attributable to 
the infringement, the defend ant's activities, the nature of the relationship between the 
parties and the  good faith of the defendant.  
Border measures of a type compliant with TRIPS Articles 51 -60 will be applicable to 
good s embodying registered designs.  
Criminal remedies against a pe rson, include, corporate officials, who in the course of 
business and in a commercial manner, knowingly manufacture or import goods 
embodying infringed registered designs.  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.3 Banking  
Page 88, paragraph 4.67  
There  are no restrictions on the establishment (through local incorporation) of banks or on their 
acquisition by foreign residents, provided prudential requirements on ownership and management, 
laid down by the Supervisor of Banks, are respected. There are some  requirements, mostly 
prudential, when foreign banks open branches in Israel. Nonetheless, the presence of foreign 
banks in Israel remains limited, mainly due to the fact that it is a relatively very small and 
developed banking market. The four foreign ban ks (HSBC, Citibank, Barclays Bank P.L.C., and 
State Bank of India) together held 1.3% of bank assets in 2017, and operate mainly in niche 
markets (e.g. the diamond industry, mergers and acquisitions). However, there is a large presence 
of foreign banks tha t are not deposit takers (underwriters, etc.).  
 WT/TPR/M/376/Add.1  
 
- 31 - 
 
  Question №9:  Please provide more information on control of the concentration of foreign  capital 
in the banking sector.  
 
Answer:  Information on licensing and regulatory methodology is available on the 
Banking Supervisions Department's website, please see link below:  
http://www.boi.org.il/en/BankingSupervision/SupervisorMethod/Pages/Default.aspx  
 
PART II: QESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/376)  
1 THE ISRAELI ECONOMY: RECENT DEVELOPMENTS  
1.3 Israel's Monetary Policy  
Page 9, paragraph 1.19  
In recent years the Bank of Israel is maintaining a very accommodative policy, keeping its official 
interest rate at a historically low level of 0.1% since March 2015. The authorities also intervene in 
the foreign exchange market to limit fluctuations and excessive appreciation that would result from 
the extraordinarily accommodative monetary policy settings by the world's major central banks. 
These interventions come on top of currency purchase to offset the exchange -rate pressures from 
expanded natural ga s production. The result of persistent intervention is that the Bank of Israel 
has foreign -currency reserves of US$118 billion (34.5% of GDP), one of the highest GDP shares 
amongst developed countries. Since November 2015 the Bank of Israel has also provid ed forward 
policy guidance to influence investor expectations: this accommodative policy is thus expected to 
be maintained as long as necessary to entrench inflation within the 1 -3% target range. Although 
shorter -term inflation expectations are below 1%, t hey are well anchored to the target beyond this 
horizon, indicating monetary policy credibility.  
 
Question №10: By what date this figure is calculated? Could you, please, provide with recent 
official information on per capita basis for foreign -currency res erves as it is traditionally high in 
Israel. Furthermore, before, Israel provided loans to the development of the third world countries 
from the gold reserves of the Bank of Israel, not from the country's budget. How often does Israel 
use this practice?  
 
Answer:  Israel's foreign currency reserves have reached US$117.6  billion by end -
January 2018. Current updates regarding Israel's foreign currency reserves are 
published on a monthly basis on the Bank of Israel's website in the following link:  
http://www.boi.org.il/en/Markets/PressReleases/Pages/Default.aspx  
 
For further information please see "Investment of the  Foreign Exchange Reserves  - 
Annual Report 2017" on the Bank of Isr ael's website in the following link:  
http://www.boi.org.il/en/NewsAndPublications/RegularPublications/Pages/13 -03-2018-.aspx  
 
3 STRUCTURAL AND SECTORAL REFORM INITIATIVES  
3.3 Antitrust and Competition  
Page 13, paragraph 3.15  
(…) - New primary legislation:  
(1) Enactment of the "Promotion of Competition and the Reduction of Concentration Law" of 2013 
which aims to reduce the leve l of concentration in the Israeli market including by an establishment 
of a Centralization Committee that advises the Government on licensing and other rights granted 
to key entities in the economy; publication of lists of entities which are considered as 
concentrated, and setting an obligation for the regulators to take into consideration the level of 
industry competition in the process of allocating rights, and to consult with the Antitrust 
Commissioner regarding certain rights which have a significant im pact on competition. (…)  
 
Question №11: Whereas the aforementioned law indicates the procedures for allocation rights to 
concentrated entities, it still remains unclear, whether the regulations concern MNCs. If 
multinationals are also subject to the law, t han what are the methods adopted to define, whether 
their business conduct may be regarded as harmful to competition? Are such entities to be 
assessed based on their sales share, or legal jurisdiction, or are such cases to be con sidered on an 
individual ba sis? 
 
Answer:  Every decision regarding granting a license or other rights is examined 
individually, according to the specific entities requesting to participate in the allocation 
procedure. According to the Concentration Law in order to  include an entity in the list of 
concentrated entities the turnover of a real corporation will be calculated as its sales WT/TPR/M/376/Add.1  
 
- 32 - 
 
  turnover, the turnover of the entity that controls it and any real corporations under its 
control and under the control of the entity  that controls it. The Law does not specify that 
only Israeli entities are included but it specifies clearly that the relevant turnover 
consists of its sales in Israel.  
 
5 ISRAEL'S TRADE POLICY  
5.5 Unilateral Trade Liberalization  
Page 19, paragraph 5.14   
Israel continues to pursue trade liberalization as part of its general economic policy. In recent 
years, as part of the Government's review of tariff and non -tariff measures and in an effort to 
reduce the cost of living, Israel has eliminated tariffs on mo re than 1,300 tariff lines (at HS 8 -digit 
level) on many consumer goods, where the prior level of customs duties had been in the range of 
6-12%. The reductions are worth over $150 million in annual customs revenue. In addition, in the 
past few years, Israe l introduced new voluntary Tariff Rate Quotas of substantial amounts, open 
for all WTO members, for a number of highly demanded food and agricultural products such as 
fresh and chilled beef, hard cheese and olive oil. For some of the product, the out of qu ota duty 
rate was reduced as well.  
 
Question №12: Please clarify what principles Israel followed when new voluntary Tariff Rate 
Quotas were introduced? How long will new voluntary Tariff Rate Quotas be in effect and what is 
its distribution method? Could I srael clarify, if it provides individual Tariff Rate Quotas for any 
country?  
 
Answer:  As part of the government's efforts to reduce the cost of living in Israel, new 
TRQs were opened in sectors where the government came to the conclusion that the 
prices ar e relatively high and where local demand is high. The TRQs are opened for a 
year, unless decided otherwise. The allocation method is decided on a case by case 
basis. There are no quotas for individual countries other than those with whom Israel 
has FTAs.  WT/TPR/M/376/Add.1  
 
- 33 - 
 
  UKRAINE  
PART I : QUESTIONS REGARDING THE Secretariat Report (WT/TPR/S/376)  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
Page 24 (Para 2.23)  
According to the Report "The Foreign Investments and Industrial Cooperation Authority (formerly 
"Invest in Israel") under the Ministry of Economy and Industry is the Government's investment 
promotion arm for foreign investors. Eligible foreign or domestic investments in industrial projects 
benefit from assistance  pursuant to the Law for the Encouragement of Cap ital Investment, which is 
managed by the Investments Authority at the Ministry of Economy and Industry. Various tax and 
non-tax incentives are available for research and development (R&D), including grants to launch 
joint R&D projects with Israeli entrepre neurs, or to encourage foreign multinational companies to 
establish financial R&D centres in Israel. Israel currently has investment protection agreements 
with 37 countries and double taxation treaties in force with 54 countries."  
 
Questions:  
1. Ukraine would appreciate if Israel could indicate what the various tax and non -tax incentives 
are available for R&D (for foreign multinational companies (? 
Answer:  All incentives for R&D are within the scope of the Israeli Innovation Authority, 
please see s ection 3.3.1(page 41) of the Secretariat Report and Section 4 (page 14) of 
the Government Report.  
2. Could Israel, please, also specify other key functions of the Foreign Investments and 
Industrial Cooperation Authority?  )? 
Answer:  The Foreign Investments and Industrial Cooperation Authority at the Ministry 
of Economy and Industry is responsible for offset management in government 
procurement, promoting foreign investments, and industrial cooperation agreements 
with international co rporations.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 34 (Para 3.25)  
The Report states that "In general, internal taxes are levied on the duty -inclusive c.i.f. value of 
imports, or on the wholesale price of locally produced goods. However, for the imposition of 
purchase taxes on imported products, Israel uses an assessment called TAMA (the Hebrew 
acronym for additional rate of increase). The TAMA approximates local wholesale prices by adding 
estimated profits, insurance, and inland freight to the declared value of imports (coefficients for 
calculating the TAMA vary from prod uct to product). The effect of the TAMA is similar to an import 
surcharge."  
Question:  
3. Ukraine would appreciate if the State of Israel could give an explanation how the imposition 
of the TAMA on imported products as a measure similar to an import surcharge is in conformity 
with its WTO commitments?  
 
Answer:  TAMA is applied to a very limited number of imported goods where a purchase 
tax is imposed and is expressed in ad valorem terms rather than specific duties. The 
purpose of TAMA is to equate the purchase tax calculation basis for domestically 
manufactured goods and imports. As the basis for calculation of the tax for domestic 
goods is the wholesale price (thus increasing the calculation basis), TAMA is added to 
the import price.  Alternatively, imp orters have the option of declaring the actual 
wholesale value of their products.  
 WT/TPR/M/376/Add.1  
 
- 34 - 
 
  In light of this explanation TAMA does not have the effect of a surcharge on imports and 
therefore is not inconsistent with the WTO commitments.  
 
3.1.5  Import prohibitions, restrictions, and licensing  
Page 35 (Para 3.29)  
Under the Report  "Israel applies non -automatic licensing procedures under the Free Import Order 
of 2014, mainly for reasons of safety, health, protection of the environment, and security, or to 
comply with international (non -WTO) commitments, or for purposes of tariff quota administration 
(Section  4.1.1.3.1.)."  
At the same time according to the information provided on the WTO web -site the Israel's last 
notifications under the provisions of Agreement on Impor t licensing procedures is dated from 
October 2013.  
Question:  
4. When will Israel notify its import licensing regime according to the requirements under Art. 
1.4 (a), Art. 5.1 -5.4 and Art. 7.3 (annual notification) of the Agreement on Import Licensing 
procedures?  
Answer:  Israel is in the final stages of preparing an updated notification under Articles 
1.4, 8.2, 5.1 -5.4 and 7.3 of the Import Licensing Agreement.  
Measures Directly Affecting Exports  
3.2.5  Export finance, insurance, and guarantees  
Page 40 (Para 3.57)  
The Report states that "During the review period, Israel eliminated the following programmes that 
had been notified to the WTO Committee on Subsidies and Countervailing Measures: the Design 
Product Programme; the New Media Support Programme; th e Marketing Tutorial Programme; the 
Consortia Programme; the "200 X 2" – "Two Hundred Times Two"; and the Greenhouse Gas 
Emissions Reduction Programme."  
Page 40 (Para 3.63)  
Under the Report "Three of the programmes  described above (i.e. Marketing Tutorial, Consortia, 
and Two Hundred Times Two) have been replaced by others with similar expenditure amounts. In 
this regard, the Israeli authorities are preparing a new notification to the WTO Committee on 
Subsidies and C ountervailing Measures."  
Question:  
 
5. When does Israel intend to provide the notification on the abovementioned programmes?  
 
Answer: Israel submitted an updated "New and Full Notification", pursuant to Article 
XVI:1 of the GATT 1994 and Article XXV of the  Agreement on Subsidies and 
Countervailing Measures for 2014 -2016 in documents G/SCM/N/284/ISR and 
G/SCM/N/315/ISR  (dated 11 July 2018) . 
 
Page 41 (Paragraphs 3.66 – 3.67)  
The Report declares that t he Ministry of Finance (MOF) provides reinsurance for private credit 
insurance companies for short -term export transactions of up to 50% on top of the amount the 
private company takes upon itself (i.e. up to 33.3% of the entire transaction amount can be 
insured by the Government). A minimum domestic content o f 40% of the insured transaction is 
required.  
 
The MOF also provides reinsurance for private credit insurance companies for medium - and long -
term export transactions; the Government assumes most of the long -term risk and the private 
company, the short -term risk ("top up 2"). The programme aims to enhance competition by 
encouraging the private sector, with state guarantees, to expand into the market segment 
traditionally served by ASHR'A.  
 WT/TPR/M/376/Add.1  
 
- 35 - 
 
  Question:  
 
6. Could Israel kindly present some more information regarding the level of government 
spending on reinsurance programs for the last few years  
 
Answer: The level of government spending varies substantially according to ASHR'A's 
activity. Except for special and limited programs, the Ministry of Finance provid es 
reinsurance only to ASHR'A. The maximum amount of reinsurance given by the MOF can 
reach 50% of the amount that ASHR'A is insuring and is conditional upon purchasing 
private reinsurance by ASHR'A for the remaining 50%.  
 
In 2014 the Ministry of Finance launched a special program for foreign trade 
transactions in medium and long term which included a cooperation with the private 
insurers dealing with credit insurance for foreign trade in Israel - the Clal Credit 
Insurance C ompanies and the FSB. As part of the plan, the MOF undertook to indemnify 
private insurers in a state of insolvency repayment of the insured transaction, in respect 
of receipts that are to be received during the second period of export transactions of up 
to 10 years. The scope of guarantees unde r the program was $250 million.  
The plan was terminated in December 2017.  
 
3.3 Measures Affecting Production and Trade  
3.3.3  Sanitary and phytosanitary requirements  
Page 48 (Para 3.95)  
According to the Report  "All fo od importers must be registered with the NFS, and consignments of 
sensitive goods must have prior authorization from the NFS. For non -sensitive food products, prior 
authorization for imports is no longer required, nor is original documentation from the 
manufacturer demonstrating compliance with Israeli regulations. Non -sensitive food products may 
be imported based on a declaration by the importer that they comply with Israeli regulations and 
may be automatically released, unless randomly selected for docume ntary and physical checks 
(5% of consignments are sampled). The importer is required to keep all documents relating to the 
import, including copies of labels and packages, for one year after the expiration of the shelf -life of 
the goods and the importer mu st also keep a record of those supplied with the goods."  
Question:  
7. Could Israel provide detailed information on the procedure for registration for importers 
(requirements for documents and their acceptance, reasons for refusal, lengths of registration 
procedure, fees for registration procedure etc.) as well as on the procedure for prior authorization 
of consignments of sensitive goods?  
 
Answer:  In order to register as an importer one should apply to NFS with its details: 
name, address, contact person, e -mail, copy of identity papers and the address of a 
licensed warehouse for storing the food products. Registration of the importer  is based 
on municipal license/ approval of the warehouse for food storage. The warehouse could 
be the property of the importer  or leased. Refusal to register an importer could be in the 
case where the importer does not have a licensed warehouse to store the goods. 
Another reason for refusal could be in case of severe convictions or indictments on the 
grounds of public health prot ection. No fees are required for registration. Registration 
takes a maximum of 10 working days (subject to receiving complete information). The 
registration is valid for 2 years and can be renewed for up to 5 years.  
Prior authorization of sensitive goods i s carried out based on documentation from the 
manufacturer and analyses relevant to quality and safety of the product and compliance 
with the requirements, and based on documentation from the competent authorities 
that the manufacturing site is under super vision.  
A decision concerning a request for prior authorization takes up to 45 days (except 
infant formula and food for special purposes - up to 60 days). The authorization is valid 
for 1 -4 years according to the importer's request. The fees for a request a re currently 
384 NIS for 1 year.  
 WT/TPR/M/376/Add.1  
 
- 36 - 
 
  The procedure for issuance of prior authorization and release from the port:  
https://www.health.gov.il/hozer/food05 -001.pdf  
 
Page 48 (Para 3.96)  
The Report declares that "Imports of sensitive foods must be accompanied by certificates of 
analysis that certify their quality and safety, are checked at import, are sampled every three 
months, and are released to the importer's warehouse subject to a bank guarantee  while awaiting 
the test results."  
 
Question:  
 
8. Could Israel provide detailed information on certificates of analysis certifying quality and 
safety of imported sensitive foods?  
 
Answer:  Consignments of sensitive foods should be accompanied with certificate of 
analysis of the food product from the manufacturer showing that relevant 
microbiological/chemical/physical parameters are in compliance with the Israeli 
requirements and with the spe cification of the prior authorization.  
 
Page 50 (Para 3.102)  
Under the Report "Imports of regulated articles such as plan ts, plant products, seeds, propa gation 
material an d biotic material not listed in Annexes 3 and 4 of the Regulations require import permits 
from the PPIS and, where a new commodity or originating market is concerned, a pest risk 
assessment. For these products, applications for import permits must be submitt ed before the date 
of import. If approved, a permit will be granted and will include the import requirements for 
import, ific product, a certificate of origin, and additional statements required for import, based on 
PPIS decision. These statements should a ppear in the health certificate accompanying the 
shipment from the country of origin. Under the Plant Protection Law, Regulations for Importation 
of Plants – 2009, imports of biotic material (which include invertebrate organisms, microbes, fungi, 
viruses, and soil) are forbidden. However, for research and development purposes a permit may 
be issued for imports of limited amounts from proven reliable sources and under restrictive 
conditions."  
 
Question:  
 
9. Please, provide information on where the procedures  of applying for import permits are 
published and updated, including a website, if possible.  
 
Answer:  Link to the Israeli PPIS import permits website, where requirements are being 
updated on a regular basis:  
http://www.moag.gov.il/en/Ministrys%20Units/Plant%20Protection%20and%20Inspection%20 Ser
vices/Import%20of%20Plants%20and%20their%20Products/Pages/default.aspx  
 
Link to the Israeli Veterinary Services import permits website, where requirements are 
being updated on a regular basis:  
http://www.moag.gov.il/en/Ministrys%20Units/Veterinary_Services/Import%20 -
%20Export/Pages/default.aspx  
 
3.3.7 Intellectual property rights  
3.3.7.3 International context and WTO participation  
Page 6 0 (Para 3.149)  
The Report notes that "…While a signatory to the WIPO Copyright Treaty and the WIPO 
Performances and Phonograms Treaty since 1997, Israel has not ratified these agreements. It is 
also not a signatory of the Patent Law Treaty."  
 
Question:  
 
10. Could Israel clarify whether it has an intention to ratify the aforementioned treaties?  
 
Answer:  Due to substantive law differences between certain requirements of those 
treaties and existing Israeli legislation, the Government of Israel is not present ly 
contemplating ratifying any of the aforementioned agreements.  WT/TPR/M/376/Add.1  
 
- 37 - 
 
  We note that neither the 1996 WIPO treaties nor the Patent Law Treaty are covered by 
the TRIPS Agreement.  
3.3.7.4 Structure and use of the IP System  
3.3.7.4.1 Patents  
Page 65 (Para 3.168)  
In accordance with the Report, despite its active generic pharmaceutical industry that could 
potentially benefit from the permission to export pharmaceuticals produced under compulsory 
licenses, Israel has not yet implemented the WTO's Paragraph 6 System i nto domestic law.  
 
Question:  
 
11. Has Israel considered possibility of using the WTO's Paragraph 6 System, set out by the 
Protocol Amending the TRIPS Agreement, for export of pharmaceuticals, produced under 
compulsory licenses, and what steps does it inte nd to apply, if any, for implementation of this 
System into domestic law?  
 
Answer:  To date domestic stakeholder interest in use of the "Paragraph 6 System" has 
been minimal however the government reserves the right to implement the "Paragraph 
6 System" in the future.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Policies  
4.1.1.3.1 Trade Policies  
Page 73 (Para 4.14)  
The Report notes that "Israel's commitments under the Uruguay Round include 12 bound tariff 
quotas (TQs) covering a number of tariff lines, some at the eight -digit level and some at the four -
digit level. However, two quotas (for walnuts, and edible fats an d oils) were not opened, as the 
out-of-quota applied tariff was below the in -quota tariff. According to the notifications on imports 
within tariff quotas, in most cases, in -quota imports are much greater than the commitment level 
(Table 4.3)."  
 
Question:  
 
12. Would Israel kindly provide the link to a website, if any, where information on TQs fill rates, 
yearly quantities and criteria for submission and allocation of TQs is publicly available?   
 
Answer:  The information is published on the Ministry of Econo my and Industry and 
Ministry of Agriculture and Rural Development's websites:  
Ministry of Economy and Industry:  
https://www.gov.il/quotas  
 
Ministry of Agriculture and Rural Development : 
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/import/Pages/default.aspx  
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/publication_list/2018/nohal_2018/Pages/nohal_
michsot2018.aspx  
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/publication_list/2018/nizul_2018/Pages/dohnizu
lmichsot140118.aspx  
 
Page 73 (Para 4.15)  
According to the Report "The most recent notification on the administration of TQs was in 2003. 
Import licences  for in -quota imports may be issued by either the Ministry of Economy and Industry 
for processed products or the Ministry of Agriculture and Rural Development for fresh products, 
usually based on a pro rata basis or, if applications exceed the TQ quantity,  by a lottery or on a 
first-come -first served basis, with 10% of the TQ reserved for newcomers."  
 
Questions:  
 
13. Could Israel elaborate on the main regulatory developments of the administration of TQs 
that have occurred since 2003?  
 WT/TPR/M/376/Add.1  
 
- 38 - 
 
  Answer : The Ministry  of Agriculture and Rural Development issues its in -quota TRQs 
either on a first -come -first served basis or on a pro rata basis, depending on the demand 
for a specific TRQ, the number of importers etc. The lottery system has been phased out 
from the Minist ry's TRQ mechanism.  
 
The administration of TRQs and other import procedures has gone through significant 
regulatory and policy improvements in recent years:  
• As for TRQs under bilateral and multilateral agreements:  
o 75% reduction in document requirements  
o Computerized TRQ submission system  
• As for Imports of animals and animal products:  
o Eliminating import license requirement for live fish  
o Reducing inspections at ports using Risk Management Methodologies  
• As for Imports of agricultural equipment:  
o Adaptation of  international regulations  
o 90% reduction in document requirements  
Please note that the 2003 notification has been updated and submitted recently.  
 
14. Ukraine would appreciate if Israel could inform more on the established mechanism of 
issuance of import l icences for in -quota imports, in particular describe both procedures - based on 
a pro rata basis and if applications exceed the TQ quantity, clarifying cases when import licences 
may be granted by a lottery and when on a first -come -first served basis . 
 
Answer: The Ministry of Agriculture and Rural Development issues its in -quota TRQs 
either on a first -come -first served basis, or on a pro rata basis, depending on the 
demand for a specific TRQ, the number of importers etc. The lottery issuance system has 
been  phased out from the Ministry's TRQ issuance mechanism.  
 
More information regarding this issue will be forthcoming in Israel's updated 
notifications under Articles 1.4, 8.2, 5.1 -5.4 and 7.3 of the Import Licensing Agreement  
 
15. How could Israel ensure that these import licensing arrangements are in conformity with the 
requirements of the Import Licensing Agreement?  
 
Answer : After reviewing the multilateral and bilateral agreements, and in light of the 
aforementioned answers, in our view Israel fully com plies with the Import Licensing 
Agreement.  
 
More information regarding this issue will be forthcoming in Israel's updated 
notifications under Articles 1.4, 8.2, 5.1 -5.4 and 7.3 of the Import Licensing Agreement  
 
Page 75 (Para 4.18)  
The Report states that "Up to the end of 2016, Israel used export subsidies for a limited range of 
products, mainly for non -citrus fruits and for vegetables. During the period 2007 -16, the 
budgetary outlay for export subsidies varied from zero for the year ending 30 September 20 07 to 
US$2 million for the year ending 30 September 2011 (Table 4.4). Israel has stated that, as of 1 
January 2023, export subsidies will no longer be granted." 
 
Questions:  
 
16. Ukraine welcomes notification and modification by the State of Israel its schedule of 
commitments, implementing the Nairobi Decision on Export Competition, nevertheless could the 
State of Israel please elucidate reasons to keep on lending its export su bsidy entitlements to 
certain agricultural products till 1 January 2023 according to the WTO document 
G/MA/TAR/RS/511?  
 
Answer : Israel will fully comply with WTO document G/MA/TAR/RS/511. However, 
Israel reserves the right to gradually prepare for a comple te phase out of its currently 
low export subsidies by January 1st 2023.  
 
17. Will any supporting measures for these products be planne d in the future period, after 
1 January 2023?  WT/TPR/M/376/Add.1  
 
- 39 - 
 
  Answer : As of 1st January  2023, Israel intends to cease all export subsidies in 
accordance with the WTO document G/MA/TAR/RS/511. Most of the support to 
agricultural exports  will be allocated to marketing promotion programs.  
 
4.4 Services  
4.4.1 Overview  
Page 86 (Para 4.4.1)  
According to the Report " Israel's specific commitments under the GATS cover 58 out of 160 
subsectors."  
 
Israel pursued unilateral trade liberalization in goods in recent years (in particular review of tariff 
and non -tariff measures, elimination of tariffs on more than 1,300 tariff lines on consumer goods, 
introducti on of new voluntary tariff rate quotas for a number of products).  
 
Question:  
 
18. Does Israel have any plans within further liberalization of its services market access?  
 
Answer:  Israel is constantly seeking different ways to promote competition and reduce 
the cost of living, and reviews specific sectors taking into account its domestic needs.  
 
4.4.3 Banking  
Page 87 (Para 4.4.3)  
The Report describes the regulatory developments of  the banking sector regime in Israel that have 
occurred during the period under review.  
 
Questions:  
 
19. Could Israel, please, describe the procedure for assessment of transparency of banks' 
ownership structures by the Bank of Israel: indicators of a non-transparent ownership structure 
and approaches to revealing banks' beneficial owners?  
 
Answer:  Information on licensing and regulatory methodology is available on the 
Banking Supervisions Department's website, please see link below:  
http://www.boi.org.il/en/BankingSupervision/SupervisorMethod/Pages/Default.aspx  
 
20. What are the requirements for authorization and licensing of non -banking fina ncial 
institutions in Israel (types of activities subject to authorization/licensing, key requirements to 
applicants, approval procedure, including verification of sources of funds used for capital 
formation, assessment of financial standing, business repu tation and transparency of applicants' 
ownership structure)?  
 
Answer: The term non -banking financial institutions refers to a very wide range of 
institutions that may vary from one to the other in terms of regulation and 
requirements.  
 
The information and policy regarding licensing and control of insurers, pension funds 
and provident funds is published in the Capital Market, Insurance and Savings 
Authority's website:  
http://www.mof.gov.il/hon/Information - 
entities/ControlLicensingandtransferofgoods/Pages/Licensing.aspx  
 
http://www.mof.gov.il/hon/Information -
entities/ControlLicensingandtransferofgoods/Pages/Controlandpossession.aspx  
 
21. What are the specific approaches to regulation of FinTech companies and supervision over 
their activities in Israel?   
 
Answer:  The Financial regulators supervise services provided by FinTech companies. 
There is no specific regulation of FinTech companies at this point.  
 
 WT/TPR/M/376/Add.1  
 
- 40 - 
 
  4.4.7 Tourism  
Page 94 (Para 4.102)  
The Report notes that "The Ministry of Tourism is responsible for planning, developing, and 
marketing tourism. During the review period, the Ministry of Tourism has been marketing activities 
in new emerging marke ts; providing incentives for investors that have resulted in an increase in 
the number of hotel rooms from 47,800 in 2012 to 52,900 in 2017; and developing niche tourism 
(such as medical tourism, bird -watching, wine, and gastronomy). As a result, there wer e 3.6 
million international incoming tourists in 2017 (up from 3.4 million in 2011; figures do not take 
into account day visitors)."  
 
Questions:  
22. What marketing channels has the Ministry of Tourism used for marketing activities in new 
emerging markets?  
 
Answer:  The Ministry of Tourism uses a verity of marketing tools to promote tourism to 
Israel, such as:  
• Marketing activities with airlines and tourists agencies  
• Marketing agreements with leading tourism wholesalers  
• PR activities and hosting journalists a nd bloggers  
• Participating and presenting in leading conferences and exhibitions  
• Special seminars (both physical and webinars) for tourism agents  
• On-line and off -line campaigns  
 
23. Are there any technical assistance programs, provided by Israel for developing countries, 
aimed at sharing practical experiences and information on such matters?  
 
Answer:  The Ministry of Tourism (like other Ministries around the world) is a member of 
the Organization of Chambers of Tourism that organizes regular meeting in which 
memb ers update and share relevant experience as well as discuss future work plans.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT (WT/TPR/G/376)  
 
3.4 Digital Israel  
Page 14 (Para 3.4)  
The Report describes the national initiative "Digital Israel" in the area of digital services in the 
public and business sectors.  
 
Question:  
 
24. Ukraine would appreciate if Israel could inform more concerning set of government's 
measures, in particular institutional, and relevant activities within the related national digital plan, 
aimed at the above -mentioned initiative's implementation.  
 
Answer:  The government adopted a resolution on establishing "Digital Israel". The 
mechanism for implementing the government resolution includes the coordination 
bureau in the Prime Minister's  Office which formulates a nati onal digital plan in this 
area.  
 
Following previous government decisions and in assessing the socioeconomic and 
economic situation, in 2015 the government adopted an additional resolution. This 
resolution includes the promotion of the "Digital Israel" project in close cooperation 
with government ministries, the private sector and NGOs.  
 
The resolution also included the establishment of additional implementation teams (as 
well as digital leaders) in fields related to: local government (the Ministry of the 
Interior), the Ministry of Justice, the Tax Authority and the National Insurance Institute.  
To coordinate and integrate government work in order to advance the national initiative 
and its goals, the government also dec ided to establish the Digital Israel Bureau that 
operates within the Ministry for Social Equality. Among other tasks, the government 
charged the Bureau with the responsibility for formulating a National Digital Program, 
while accompanying the development o f intra -ministry and inter -ministerial digital WT/TPR/M/376/Add.1  
 
- 41 - 
 
  programs, as well as programs to promote cross -government steps necessary for 
realizing the national initiative.  
 
To realize the vision of the national initiative the primary goals and the strategic 
objectives  of the national digital program were defined as follows:  
 
 
 
To realize the goals and objectives of the national initiative, a broad scope of activities 
was defined, encompassing a wide range of fields, services and products pertaining to 
the Israeli gove rnment, to the economy and to society. Implementation areas were 
divided into two groups: core areas and horizontal areas. Most likely, these areas will be 
updated as the national initiative advances.  
 
Page 15 (Para 4.6)  
According to the Report "One of the  most substantial developments in Israel in this field since the 
last Trade Policy Review was the establishment of the Israel Innovation Authority. The Authority 
was set up on the basis of the Office of the Chief Scientist in the Ministry of Economy and 
Industry. The objective was to fulfil the missions assigned to it by the R&D Law in a more 
conclusive way, and to provide more efficient and high -quality service to the Israeli innovation 
community. In order to do so, the Authority operates with a structure of "innovation divisions" that 
allocate a cumulative budget of approximately NIS 1.6 billion each year."  
 
Question:  
 
25. Could Israel provide more information on the current work of the Israel Innovation Authority 
established in early 2016?  
 
Answer:  Strengthening the innovation ecosystem is the core mission of the Israel 
Innovation Authority, which seeks to further develop and support technological 
innovation in Israel through various tools. The Authority advises the government and 
parliament ("Knesse t") committees regarding innovation policy in Israel and 
furthermore monitors and analyses the dynamic changes taking place throughout the 
innovation environments in Israel and abroad. It creates cooperation with counterpart 
agencies to promote technologic al innovation in the Israeli industry and economy.  
 
The Israel Innovation Authority provides a variety of practical tools aimed at addressing 
the dynamic and changing needs of the local and international innovation ecosystems.  
 
With deep knowledge and unde rstanding of the unique challenges facing the Israeli 
companies and entrepreneurs, the tools offered by the Authority are based on the 
specific stage and needs of the company. This includes tools for early stage 
WT/TPR/M/376/Add.1  
 
- 42 - 
 
  entrepreneurs, mature companies developing n ew products or manufacturing processes, 
academic groups seeking to transfer their ideas to the market, multinational 
corporations interested in Israeli technology, Israeli companies seeking new markets 
abroad, and traditional factories and plants seeking t o incorporate innovative and 
advanced manufacturing into their businesses.  
 
In order to achieve its objectives, the Israel Innovation Authority has adopted an 
internal structure designed to enable: task and client orientation, concentration of 
knowledge an d tools under a single entity, enlargement of the offered toolbox, and 
expansion of the scope of activities beyond R&D. This strategic approach is advanced 
through a number of innovation divisions each focused on a specific target audience, for 
the purpose  of developing and delivering dedicated solutions to their associated 
challenges.  
 
The innovation divisions include:  
• Start -up Division  (Technological Incubators, Early Stage)  
• Growth Division  (R&D)  
• Technological Infrastructure Division   
• Advanced Manufacturing Division  
• International Collaboration Division  
• Societal Challenges Division  
 
These divisions pave a variety of customized paths for entrepreneurs and companies to 
promote, implement and realize their innovative R&D ideas at various stages  
 
Page 18 (Para 5.8)  
The Report notes that " Unfortunately, some of the plurilateral initiatives Israel also took part in 
have failed to materialize, notwithstanding the intensive work by all participants. These plurilateral 
initiatives include the Trade in Services Agreement (TiSA) and the Environmental Goods 
Agreement (EGA). TiSA aims to achieve an ambitious outcome, compatible with the GATS, that 
would attract broad participation and that could be multilateralized in the future. EGA seeks to 
eliminate tari ffs on a number of important environment -related products with the objective of 
helping to achieve environmental and climate protection goals. The benefits of a potential EGA 
would be extended to the entire WTO membership, which show how some plurilateral initiatives 
can have an effect on a multilateral level. At the moment the future of these initiatives remains 
uncertain, but Israel remains open and willing to continue working towards their conclusion."  
 
Question:  
 
26. Could Israel elaborate on its vision  with regard to its participation and further activities under 
the multilateral initiatives, such as Trade in Services Agreement (TiSA) and the Environmental 
Good Agreement (EGA)?  
 
Answer:  Israel believes that rules and/or liberalization steps in internati onal trade 
should go hand in hand with latest technological developments, and that the Multilateral 
Trading System should be able to take part in addressing some of today's challenges.  
 
Trade in services is rapidly growing and expanding. Advancements in t echnology and 
transportation have not only affected the scale of trade, but also affect the very nature 
of how trade in goods and services is conducted.  
 
Israel believes that the rules of trade should evolve accordingly and modernize its 
approach, which is  over two decades old.  
 
Israel further believes that the efforts to achieve a new Trade in Services Agreement, 
encompassing over two thirds of world trade in services, could serve as a catalyst to the 
Multilateral Trading System, bringing it up to date and  enabling Members to conduct 
trade in services in an updated rules based system that addresses the challenges and 
needs of businesses in this era.  
 WT/TPR/M/376/Add.1  
 
- 43 - 
 
  Another example is the EGA negotiations which could demonstrate how the multilateral 
system can contribute to one of the most important challenges we are facing today, 
namely, climate change. We hope that both negotiations will be renewed soon.  WT/TPR/M/376/Add.1  
 
- 44 - 
 
  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/376)  
2 Trade and Investment Regimes  
2.4 Investment Regime  
Table 2.3 Selected foreign ownership limitations by sector, 2018  
Pages 24 -25 
 
The report includes a table that branches of foreign law firms must employ at least one Israeli 
licenced lawyer or one foreign lawyer as defined in Israeli law.  
 
Question 1  
For further clarity, are there specific limitations on foreign lawyers practising in Israel?  
Does Israel allow foreign lawyers to practise foreign or international law?  
What is the legal basis for the limitation on legal services described in the table?   
 
Answer:  Israeli residency is required for obtaining a l icense to practice Israeli law.  
Foreign licensed lawyers may practice foreign law and international law in Israel 
provided  that they are registered with the Israeli Bar Association.  
 
The legal basis is the Bar Association Law, 1961 (Articles 20, 42, 98 -98M)  
 
Question 2  
Does Israel maintain any other limitations on professional services, particularly engineering, 
architecture  and accounting?  
 
Answer:  There are no market access or national treatment limitations on engineering, 
architecture and accounting. A corporation's tax return to the Tax Authority must be 
certified by an auditor licensed in Israel. An auditor may be either an accountant or a 
tax consultant, licensed in Israel. There is an Israeli residency requirement for obtaining 
a tax consultancy license.  
 
Report by the Secretariat (WT/TPR/S/376)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 International context and WTO participation  
Page 60, Paragraph 3.149  
 
The report states that, Israel has been a signatory to the WIPO Copyright Treaty and the WIPO 
Performances and Phonograms Treaty since 1997, however Israel has not ratified these 
agreements.  
 
Question 3  
Does Israel have plans to ratify these treaties? If so, what are Israel's timeframes for domestic 
implementation of these treaties.  
Answer:  Due to substantive law differences between certain requirements of those 
treaties and existing Israeli legislation, the Government of Israel is not presently 
contemplating ratifying any of  the aforementioned agreements.  
We note that neither the 1996 WIPO treaties nor the Patent Law Treaty are covered by 
the TRIPS Agreement.  
Report by the Secretariat (WT/TPR/S/376)  
4 Trade Policies by Sector  
4.4 Services  
4.4.2 Financial Services  
Page 86 -87, Paragraph 4.61  
 
The report discusses the establishment of a deposit  insurance scheme to help small banks 
compete for additional customers.  WT/TPR/M/376/Add.1  
 
- 45 - 
 
  Question 4  
Is the deposit insurance scheme available to all deposit -taking institutions, including foreign 
deposit -taking institutions?  
 
Answer:  While the Secretariat Report discusses the establishment of a deposit insurance 
scheme, such insurance is not yet in use in financial institutions in Israel. The terms and 
conditions as well as the applicability of the deposit insurance scheme are still being 
considered.  
 
Report by the Secretariat (WT/TPR/S/376)  
4 Trade Policies by Sector  
4.4 Services  
4.4.6 Transport Services  
4.4.6.1 Maritime transport  
Page 92, Paragraph 4.87  
 
The report provides an overview of reforms to port tariffs and operations aimed at improving the 
efficiency of t he fee regime and productivity of ports.  
 
Question 5  
What has been the impact of the reforms on port productivity?  
 
Answer:  The tariff reform improved the service provided to the port users due to 
increased competition between the port operators. An overall assessment of the reforms 
on port productivity is not available at this time and may probably be addressed only 
after the completion of all the reforms in the sector.  
 
Report by the Secretariat (WT/TPR/S/376)  
4 Trade Policies by Sector  
4.4 Services  
4.4.6 Transport Services  
4.4.6.1 Maritime transport  
Page 92 -93, Paragraph 4.89  
 
The report describes subsidies for Israeli flagged and Israeli controlled vessels for employing 
Israeli officers and cadets on board.  
 
Question 6  
What is the policy objective for these subsidies?  
 
Answer:  The objective is to maintain a sufficient level of  professional capabilities and 
maritime knowledge, which may otherwise be lost due to the high costs of employing 
Israeli personnel.  WT/TPR/M/376/Add.1  
 
- 46 - 
 
  BRAZIL  
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT (WT/TPR/S/376)  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 21  (Para. 3.82)  
 
Israel has made a total of 13 notifications (including  revisions, addenda, and corrigenda) to the 
WTO on SPS  measures, most recently in 2011 on the approximation  with OIE guidelines relating to 
BSE on the importation  of live animals and anim al products. Four specific  trade concerns have 
been raised about SPS measures  taken by Israel, all of which have been resolved. In  addition to 
notifications of SPS measures, some of the  notifications on technical barriers to trade are  
concerned with protec tion of human health or safety,  protection of animal or plant life or health, or  
protection of the environment. From 1 January 2012 to  31 December 2017, 60 such notifications 
were made  (including revisions, addenda, and corrigenda) about products under HS headings 1 to 
24 (all for food and  beverages, except for one notification on tobacco  products). Some of these 
notifications may include  references to SPS measures.  
 
Question 1:  Only in the last 12 months, six notifications to  the TBT committee referred to food 
products, including  meat, and had as justification the protection of human  health and safety. Some 
of them even mentioned food  contaminants (heavy metals, pesticide residues and  mycotoxins), 
food additives, microbiological  requirements, and processes such as inspection and  quarantine. 
How does the choice between notification  to the TBT Committee and to the SPS Committee occur?  
 
Question 2:  Why does Israel not notify such  measures simultaneously in both Committees, in 
accordance with the  recommended pro cedures for implementing the  transparency obligations of 
the SPS Agreement set  forth on G/SPS/7/Rev.4? Does Israel intend to follow such recommended 
procedures in the future?  
 
Answer to questions 1 & 2:  During the preparation of the Secretariat Report we have 
been made aware that some TBT notifications may, in fact, be more relevant to the SPS 
mechanism. We thank the Secretariat and Members for drawing our attention to that 
possibility. We plan to look i nto the matter. Any Member that has an interest in a 
particular TBT notification is invited to indicate it to us.  WT/TPR/M/376/Add.1  
 
- 47 - 
 
  EUROPEAN UNION  
WT/TPR/S/376 – WTO Secretariat's Report  
2 Trade and Investment Regimes  
2.4 Investment Regime  
Paragraph 2.21, Page 24  
 
According to the report, Israel maintains foreign -ownership restrictions in a few sectors, including 
air and maritime transport, telecommunications and broadcasting, and energy, mainly for public 
interest and energy security reasons.  
 
EU question No 1:  Does Israel intend to modify its offer in GATS in order to reflect its current 
regulation, at least in the Telecommunication services sector, which allows a higher foreign equity 
participation in most of its subsectors?  
 
Answer:  There is no such intention at  this time.  
 
Paragraph 2.22, Page 24  
According to the report, eligible foreign or domestic investments in industrial projects benefit from 
assistance pursuant to the Law for the Encouragement of Capital Investment. The EU already 
required clarifications in  the last Trade Policy Report for Israel concerning the aid intensity that can 
be granted to a company and whether tax incentives and the grant can be combined.  
 
EU question No 2 : Could Israel clarify whether, from the last Trade Policy Review, there have been 
changes in the Law for the  Encouragement of Capital Investment concerning the aid intensity that 
can be granted to a company and whether tax incentives  and the grant can be combined?  
 
Answer:  Regarding grants – from the last Trade Policy Review there has been no change 
concerning the aid intensity of the grants.  
 
Regarding tax benefits - The corporate tax rate in priority area A was reduced from 10% 
in 2011 -12 to 9% as from 2014, and to 7.5% as from 2017; elsewhere, the rate 
increased from 15% in 2011 -12 to 16% as from 2014 (the standard corporate tax rate 
was reduced from 26.5% in 2014 -15 to 23% starting from 2018).  
The tax incentives  and the grant may be combined.  
 
Paragraph 2.23, Page 24  
The table lists a series of limitations of foreign ownership by  sector.  
 
EU question No 3 : Is Israel envisaging a modification of the list of sectors where foreign ownership 
thresholds apply also as a means of inducing competition in the shielded sectors?  
 
Answer:  Israel is constantly seeking different ways to promote competition and reduce 
the cost of living, and reviews specific sectors taking into account its domestic needs.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation and requirements  
Paragraph 3.7, Page 27  
 
Table 3.2 of the report indicates time and cost of border and documentary compliance for imports. 
While indicators have definitely improved in the period 2012 -2018, the cost and time for operators 
are still well above the OECD high -income countries' average.  
 
EU question No 4 : Could Israel explain the strong discrepancy in time and costs for border and 
documentary compliance towards the average of OECD high -income countries? Is Israel envisaging 
any measure to improve those indicators and continue the positive trend of 2012 -2018? 
 
Answer:  According to our understanding  the World Bank's  rating was based on data that 
included some procedures that are not within the scope of the Customs Au thority. For 
example, the  costs and time lines for unloading shipments at the ports are not 
controlled by  the Customs Authority. Therefore, in our view  the rating is an inaccurate WT/TPR/M/376/Add.1  
 
- 48 - 
 
  indicator for the performance of customs clearance. Taking into consideratio n only the 
factors that are under the Customs Authority's responsibility 95% of the import 
consignments to Israel are released within one hour.  
 
3.1.4  Other charges affecting imports  
Paragraph 3.24, page 33  
According to the report, Israel applies value added tax on imported and domestic goods and 
services. Israel is revising its current system and one of the  measures of the ongoing reform is to 
set a threshold below which "personal imports" do not pay some taxes and tariffs.  
 
EU question  No 5 : Could Israel provide more information about how the so -called "personal 
imports" will be defined?   
 
Answer:  At this point we are not aware of a decision to change the current thresholds.  
Personal imports are currently defined in the Free Import Order -2014 as im ports: (1) 
not through  a dealer (2) not intended for  the purpose of supply, manufacturing or for 
providing services and  (3) are imported in a reasonable quantity for personal or family 
use.  
 
Paragraph 3.25, Page 34  
According to the report, Israel uses an assessment called TAMA for the imposition of purchase 
taxes on imported products, which approximate local wholesale prices by adding estimated profits, 
insurance and inland freight to the declared value of imports. T he effect of the TAMA is similar to 
an import surcharge. TAMA was cancelled for alcoholic beverages in 2014 and replaced by a 
specific tax.  
 
EU question No 6 : What are the products currently targeted by this measure? What is the rationale 
for the impositio n of this import surcharge on certain products?  
 
Answer:  TAMA applies only on car parts and jacuzzis  and is applied on imported goods 
where a purchase tax is imposed and is expressed in ad valorem terms rather than 
specific duties. The purpose of TAMA is to equate the purchase tax calculation basis for 
domestically manufactured goods and imports. As the basis for calculation of the tax for 
domestic goods is the wholesale price (thus increasing the calculation basis), TAMA is 
added to the import price.  Alternatively, importers have the option of declaring the 
actual wholesale value of their products.  
 
3.1.5 Import prohibitions, restrictions, and licensing  
Paragraph 3.28, page 35  
According to the report, Israel maintains a ban on imports of non -kosher meat and meat products 
(Kosher Meat Import Law of 1994).  
 
EU question No 7 : Is Israel  considering  accep ting the import  of non-kosher  meat and related  
products,  the same  way it is possible  to import  other  non-kosher  products?  Could  Israel  explain  
why the local production  of non-kosher  meat in Israel  is possible  while the importations  are 
banned?  
 
Answer:  There is no intention to accept the import of non -kosher meat and related 
products. In order not to restrict totally the minorities in Israel who do not keep the 
religious practice of eating kosher meat, the sale of non -kosher meat is permitted in 
Israel.   
 
EU companies would be interested in exporting meat to the Palestinian Territories. Paris 
Agreement gives Israel the control on the meat export that will transit in Israeli Territory.  
 
EU question No 8 : Even though  meat imports  addressed  to the Palestini an Territories  (in transit  in 
Israel  from Ashdod  or Haifa ports)  are halal,  the EU would  like to know  if those  are affected by the 
kosher  meat policy.  
 
Answer:  Halal does not fulfil kosher requirements but we note that in light of the Paris 
Agreement the P alestinians are entitled to an annual import quota of meat of 1,300 tons 
to which ko sher requirements do not apply.  WT/TPR/M/376/Add.1  
 
- 49 - 
 
  3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Paragraphs 3.54 -3.55, pages 39 -40 
Under the Eilat  Free Trade Zone Law of 1985 and under the Free Port Zone Law of 1969, 
companies located in Eilat benefit of tax concessions and other benefits.  
 
EU question No 9:  The EU would like to receive additional information on the budget and 
expenditure of these t wo measures (Eilat Free Trade Zone law and Free Port Zone law), as well as 
on their envisaged duration.  
 
Answer:  The measures are aimed to promote the development of the Red Sea's coastal 
city of Eilat  which is located at Israel's most southern border and other areas around it. 
These measures are currently ongoing with no specific termination date. Since the 
nature of the measures is consumption based, it varies significantly from time to time, 
there fore the data is not available.  
 
3.3  Measures Affecting Production and Trade  
3.3.2  Standards and other technical requirements  
Paragraph 3.80, Page 44  
Israel has recently been working on new regulation on marking of nutritional values on certain 
categories of  food (mandatory as of 1 January 2020) and on the draft secondary legislation of the 
law on cosmetics. The EU provided its comments within the WTO -TBT Committee. Some of the 
rules that are included in the law on nutritional marking and in the draft seconda ry legislation on 
cosmetics may result in unnecessary barriers to trade.  
 
EU question No 10 : What is the status of the secondary law on cosmetics? How will Israel ensure 
that the application of those rules will not result in unnecessary market access barri ers and 
therefore in increased prices for consumers? Could also Israel clarify whether the opening  of the 
Israeli  cosmetic  market  include  the perfumes?  
 
Answer:  The purpose of the proposed regulations is to open the market to more 
competition while still maintaining the safety and quality of the cosmetics market in 
Israel. This is part of a broader effort to further lower barriers to imports into the Israeli 
mark et in order to reduce prices and improve the quality of goods for the consumer's 
benefit. The proposed regulations are still being discussed including the status of 
perfumes.  
 
Paragraph 3.81, Page 45  
As of 1 January 2016, the Regulatory Impact Assessment (RIA) is a necessary requirement to 
initiate any governmental legislative initiative.  
 
EU question No 11 : Could Israel explain how does this procedure assure the participation of 
relevant stakeholders, including international trade partners?  
 
Answer:  The decision of whom to include as relevant stakeholders in the RIA procedure 
is made on a case by case basis.  
 
It should be noted that most draft regulations are required to be published on the 
Ministry of Justice's website for public comments as to assure re levant stakeholders, 
including trading partners, of participation in the legislative process.  
 
Paragraph 3.83, Page 45  
The report states that Israel has taken steps to align its standards to international ones and that 
recent Amendments to the Standards Law of 1953 require the adoption of international and 
regional standards in place of Israeli standards that have no natio nal deviations, and also set out 
timetables for a three -year re -evaluation of all mandatory standards, by August 2019. Table 3.13 
illustrates the equivalence of Israeli standards with international ones as of 2017.  
 
EU question No 12 : In the context of the  reform of the Standard Institute of Israel (SII) is Israel 
envisaging a full alignment of all its mandatory standards with international ones and if yes, in 
which timeframe? How does the process of reform make sure that all standard setting bodies 
(such a s Ministries of Health, Transport, Agriculture and so on) are duly involved?  WT/TPR/M/376/Add.1  
 
- 50 - 
 
  Answer:  The substitution of Israeli standards by international standards is a continuing 
process. The standards are revised according to an annual program with the intention of 
replacing them with international standards, if such exist.  
 
The standards are developed by public standardization committees in which all relevant 
government ministries participate. The requirement to adopt international standards 
involves all aspects of th e standardization process and all the standards committees.  
 
Paragraph 3.80 3.81 3.83, pages 44 and 45  
EU companies encounter difficulties to provide input in the process of developing standards by the 
Standards Institution of Israel (SII).  
 
EU question  No 13: Does Israel accept certificates and test reports as proof of compliance with its 
technical regulations and standards from foreign laboratories? Under which conditions?  
 
Answer:  In addition to the US -Israel and Canada -Israel MRA agreements on recognition 
of test certificates of telecom equipment and to the ACAA agreement on GMP, signed 
with the EU, the Standards Institution of Israel has a lengthy list of B -2-B agreements 
with Eu ropean and other foreign laboratories.  
 
Israel is also part of the CB Scheme. In addition, when imports fall into product groups 
that require only a Supplier's Declaration of Conformity to be released from customs, it 
suffices to submit a certificate from a foreign laboratory that is accredited by an 
accreditation organization that is a an ILAC member.  
 
As regards the complaint implied above, we are not aware of any problem EU companies 
have encountered.  
 
EU question  No 14: Could  Israel  explain  why its authorities  require,  under  certain  circumstances,  
extra Good Manufacturing  Practices  (GMP)  certificate  for different  sectors  of the EU exports?  
 
Answer:  According to Public Health Regulations (Food) (Dietary Supplements) -1997, 
dietary supplements should be ma nufactured by a GMP certified manufacturer.  
 
According to Public Health Regulations (Food) (Gluten Labelling) -1996, food products 
labelled "gluten free" should be manufactured by a GMP certified manufacturer.  
 
EU question  No 15: Could  Israel  explain  why its authorities  do not recognize international 
standards or EU standards in food registration?  
 
Answer:  Food imported to Israel has to  comply with the Israeli legislation which aligns 
with the international standards of Codex Alimentarius and with legislations such as of 
the European Union and the United States. This is the case in many areas such as food 
additives, pesticide residues, c ontaminants, commodity standards, bearing in mind that 
no full global harmonization has yet been achieved in food standards.  
 
3.3.3  Sanitary and phytosanitary requirements  
Paragraph 3.90 -3.92, page 47  
Reference is made to the importation of live animals and animal products in light of the most 
recent developments.  
 
EU question No 16:  In light of  the recent recommendations formulated by the inter -ministerial 
advisory committed under the leadership of the Israeli Ministry of Agriculture what steps do Israel 
plan to take to ensure that international trade is carried out in line with multilateral obl igations?  
 
Answer:  The position of the inter -ministerial advisory committee on related aspects of 
animal welfare as well as that of the professional levels at the Ministry of Agriculture 
and Rural Developmen t is to ensure both the continuation of imports of live animals 
while constantly improving and adequately monitoring all aspects of animal welfare of 
the shipments in line with Israel's international commitments.  
 
 WT/TPR/M/376/Add.1  
 
- 51 - 
 
  Paragraph 3.104, Page 50.  
The report states that the Chief Rabbinate of Israeli has exclusive competence over kosher 
certification and the recognition of kosher certifying bodies outside Israel.  
 
EU question No 17:  How many certifying bodies outside Israel have been approved by the Chief 
Rabbinate of Israel? Are there clear requirements f or those bodies to be certified? Is there any 
third country in which local rabbis are authorized by the Israeli Chief Rabbinate to certify kosher 
slaughtering for meat to be exported to Israel? If this is the case, why this possibility is not 
extended to o ther WTO members?   
 
Answer:  Regarding kosher certificate, the chief Rabbinate is the competent authority for 
the certificates. The Chief Rabbinate issues a list of rabbis located worldwide, whose 
certificates are recognized . The list is published on the Ch ief Rabbinate's website:  
https://www.gov.il/he/Departments/publications/reports/pirsum_yevu2  
 
Local rabbis are not authorized to certify slaughtering for meat to be exported to Israel; 
only representatives of the Chief Rabbinate of Israel are authorized to ce rtify kosher 
meat slaughtering.  
 
3.3.4 Competition policy and price controls  
Paragraph 3.106, page 51  
According to the report, the main competition legislation in  Israel is the Restrictive Trade Practices 
Law, 5748 -1988 (RTP). It provides the legal grounds upon which the Antitrust Commissioner and 
the Israel Antitrust Authority (IAA) regulate restrictive arrangements, merger transactions, 
monopolies and concentrati on groups.  
 
EU question No 18:  What further actions will be taken to make use of all means at the disposal of 
the IAA to apply competition law (including leniency), also in light of the information provided in 
Table 3.15?  
 
Answer: The means which the IAA is authorised to use, in order to apply competition 
law, are elaborated in part 3.3.4 of the Secretariat Report. Among these actions are, 
investigating criminal proceedings, imposing administrative fines, blocking mergers, 
declaring  of monopolies and instructing measures to be taken by a monopolist or a 
concentration group in order to prevent hindering competition. All these tools are given 
to the IAA by the RTP law. Furthermore, according to the RTP law, the Antitrust Director 
Gener al may determine whether different obligations according to the RTP law have 
been violated. For example, the Director General may determine that a particular 
monopolist abused or is abusing its dominant power. A determination can be used as 
evidence in any  judicial proceedings, including class actions taken by citizens. As 
reflected in the table mentioned in the question the IAA also has a program which 
allows for leniency towards whistle blowers that were involved in infringement of the 
Law.  
 
The IAA also acts as an advisor to the government in order to assist in promoting 
competition in Israel.  
 
Authority to initiate administrative proceedings, is also granted to the IAA by the "Food 
Law". The Director General is authorised to give instructions to a big re tailers, in order 
to prevent hindering competition. In case that the retailer does not follow the 
instructions, they may be subject to administrative fines or criminal proceedings.  
 
EU question No 19 : How many complaints leading to investigations have been  received?   
 
Answer:  The numbers are detailed in the following table:  
Year Number of complaints leading to investigations  
2012  4 
2013  3 
2014  1 
2015  0 
2016  2 
2017  0 WT/TPR/M/376/Add.1  
 
- 52 - 
 
  Paragraph  3.110,  page  51 
According to the report, the Food Sector Law 5774 -2014 prohibits, limits and regulates certain 
practices that could potentially be used by major suppliers or retailers to limit competition.  
 
EU question  No 20: Is there  any plans  for allowing  a foreign  company  to own 100%  equity  in the 
retail sector in the future ?  
 
Answer:  The Promotion of Competition in the Food Sector Law, 5774 -2014 (Food Law) 
was enacted to increase competitiveness in the food sector and reduce product prices. 
The law does not restrict foreign equity in the retail sector.  
 
Paragraph 3.118, page 53  
The report states  "(…) However, some external sources suggest creating independent regulators 
with well -defined mandates (e.g. in the telecoms, postal services, and gas sectors) to improve 
competition."  
 
EU question No 21:  In addition to the  Capital Markets, Insurance and Savings Authority mentioned 
in page 9 of the report, will other independent regulators be established? If so, which ones?  
 
Answer:  there is no intention of establishing such other regulators at this point  
 
3.3.5 State trading, government -linked enterprises and privatization  
Paragraph 3.123, page 54  
Government companies are subject to the general Companies Law and to the Government 
Companies Law of 1975 (the GCL). The Government Companies Authority (the GCA) is 
responsi ble, inter alia , for supervising, restructuring and privatization.  
 
EU question  No 22: Has GCA veto power  in commercial  operations  with public  entities  involved?  
 
Answer:  The GCA has no veto power. It should be noted that according to the 
Government Companies Law the GCA may send a representative to participate in the 
meetings of the board of directors but the representative neither has the right to vote 
nor be considered for the purposes of a quorum.  
 
EU question No 23 : In the restructuring and privatization process, does the GCA or a separate 
body exercise a form of subsidies control?   
 
Answer:  A governmental company that has been privatized may not receive a financial 
subsidy from the government by virtue of the fact that it was formerly a governmental 
company.  
 
Paragraph 3.127, page 54  
According to the report, reforms have been carried out for improving the regulatory framework to 
ensure competi tive neutrality between public and private firms in the same market in terms of 
regulation, financing and taxation. SOEs are strongly represented in defence and many network 
industries (maritime and rail transport, postal services, water management, electr icity and other 
energy -related activities).  
 
EU question No 24:  Are SOEs entrusted with providing services of general economic interest or 
other exclusive activities? If so, what is the procedure for granting these rights? In case they 
conduct other econom ic activities, is a separation of accounts envisaged ? 
 
Answer:  Most governmental companies have been established in order to supply an 
essential service to the public. In addition, they may engage in other business activities  
The establishment of a governmental company requires a government resolution in 
accordance with the Government Companies Law. The resolution will be approved 
following a proposal by a relevant minister together with an assessment submitted by 
the GCA. The resolution will determine the companies objectives, capital structure, 
composition of the board of directors and the minister responsible for the company's 
activities.  
 WT/TPR/M/376/Add.1  
 
- 53 - 
 
  In theory the GCA may request disclosure of information concerning all governmental 
company's activities if such discl osure is in the public interest . In practice, there is a 
separation in disclosure of accounts in certain situations, for example, regulators that 
determine fees charged by governmental companies, tend to require separation of  costs 
between those needed to cover the essential service activities provided by the company 
from costs related to other activities of the company.  
 
3.3.6  Public Procurement  
Paragraph 3.131, Page 55  
The report recalls that Israel benefits from an exemptio n from certain GPA rules, by which Israel 
applies offset percentage for procurements (20% of the value of the contract for procurements 
covered by GPA obligations; 35% for procurement excluded from GPA coverage and 50% or 
military procurements). The exempt ion is valid until 2019. The EU reiterates its opinion that the 
offset regime creates a burden and obstacle especially for SMEs to compete in the government 
procurement market.  
 
EU question No 25 : How does Israel assess the results of the application of the offset procedure? 
How is Israel preparing for the expiry of this exemption?  
 
Answer:  The offset right Israel negotiated as part of its GPA accession was, and to a 
certain extent still is viewed by Israel as an essential part of its industrial policy. Being a 
small, island - like economy the offset mechanism exposed foreign companies to the 
Israeli industry's capabilities on the one hand, and on the other hand, encouraged 
Israeli companies to improve their products in order to meet higher standards and 
requirements of foreign (in some cases more sophisticated) companies, thereby 
becoming more  competitive both in the Israeli market as well as abroad.  
 
The offset will be gradually eliminated for GPA Members starting in 2019 until 2029 as 
specified in Israel's Note to its GPA Schedule.  
 
We disagree with the EU's position regarding the offset mech anism as stated above, and 
note that the Israeli government procurement market is very open. We further note that 
it is Israel's experience that government procurement is a very challenging area for 
SME's in any market including that of the EU's.  
 
Paragrap h 3.134 page 56  
According to the report, each exemption from public tender must be published on the website of 
the Government Publications Office within five days; this is a prerequisite for the entry into force 
of the exemption decision. The EU believes that the information on public tenders should be more 
readily available in English and easily accessible for foreign bidders.  
 
EU question No 26 : Is Israel envisaging any actions that would allow to access to all necessary 
documentation for a bid in Englis h? 
 
Answer : No, and we do not recall that there is any obligation to do so under the GPA.  
 
3.3.7  Intellectual Property Rights  
3.3.7.4 Structure and use of the IP System  
Page 62  
Contrary to major developed economies, Israeli IPR legislation still does not provides for data 
protection for biological medicines.  
 
EU question No 27 : What is the status and, possibly, the timeframe of the process leading to the 
drafting and approval of a legislation ensuring data protection for biological medicines ? 
 
Answer:  Israel is in the preliminary stages of reviewing the issue. There is no timeframe 
at this point. We recall that data protection for biological medicines is not required 
under the TRIPS Agreement, and in particular not under Article 39(3) of the TRIPS 
Agree ment.  
 
 
 WT/TPR/M/376/Add.1  
 
- 54 - 
 
  4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3.2 Internal policies  
As well as Government report point 3.1, page 11  
 
Given the policies of the dairy and eggs sectors described in the report, which in some years lead 
to the overpassing of amber box limits, as well as the Israel political determination in introducing 
reforms aiming at enhancing competitiveness, reduce the high cost of living and reduce regulatory 
burden referred to in page 11 of the gove rnment report:  
 
EU question No 28:  Could Israel indicate whether it intends to advance with reforms for the dairy 
and eggs sectors similar to what has been done for beef? In particular, could  Israel explain the 
main instruments Israel intend to use in carrying out this reform and how these will help Israel to 
comply by its Amber box limits?   
 
Answer:  Discussions are still being held between relevant stakeholders and government 
representatives regarding reforms in the dairy and table eggs sectors with government 
support, with the following aims:  
 
Improving production infrastructures in terms of animal welfare and environmental 
aspects  
 
Expanding the units of production in order to improve farmer s' profitability and mainly 
further reducing the costs of production in order to further reduce consumer prices of 
these products  
 
Further liberalization of trade measures regarding increased imports of these sectors' 
related products  
 
EU question No 29:  Could Israel explain what is the state of play in reforming the agricultural 
support system possibly switching from protection through border measures (high tariffs) to direct 
subsidies for farmers?  
 
Answer:  In 2016, the Ministry of Agriculture and Rural Development and the Ministry of 
Finance initiated a process to reform the agricultural support policies through the 
reduction of market price support and the introduction of direct payments to farmers.  
 
The above mentioned reform of the agricultural suppor t system is still undergoing 
evaluation, mainly following the implementation over the last two years of three related 
pilot programs in the following sectors:  
 
1. Beef:  
• An agreement between cattle producers and the government that foresees 
increased TRQs for imported fresh and chilled beef from 7,500 tons in 2016 to 
17,500 tons in 2020, combined with gradual reduction of the MFN tariffs on the 
out of quota imports from 12% plus 1,300 ILS (USD 339) per ton in 2016 to 12% 
with zero ILS in 2020.  
• On top of the  ongoing 7 year support program of ILS 23 million which was agreed 
upon in 2014, an additional direct support program to the grazing cattle growers 
until 2024, has been agreed upon - gradually rising in accordance with the 
increase of the TRQs and tariff r eduction from ILS 12 million in 2017, up to ILS 
16 million in 2021 and on.  
• ILS 4 million (out of the abovementioned sums) will be allocated annually to 
improve professional practices.  
2. Dairy  
• The government has granted ILS 65 million of direct support to  dairy farmers for 
the years 2014 - 2018, mainly aimed for production upgrading investments. In 
return, the guaranteed prices for raw milk decreased in 2016 – by an average of 
9% and gradual liberalized import regime for selected dairy products has been 
put in place as follows:  
 WT/TPR/M/376/Add.1  
 
- 55 - 
 
   Full Exemption WTO TRQs (Tonnes)  
Product  Yoghurt  Butter  Cream  
2014 1,250  750 750 
2015 1,500  1,000  1,000  
2016+  2,000  1,250  1,200  
 
 Full Exemption WTO TRQs (Tonnes)  
Product  Semi -Hard Cheese  
2014 4,200  
2015 4,800  
2016 5,400  
2017 6,000  
2018+  6,500  
 
3. Fishery  
• A special upgrading program consisting of ILS 30 million has been granted to this 
sector for R&D and marketing promotion of fresh fish as well as for direct 
payments based on past production for the period 2016 until 2023.  
• In addition, ILS 77 million ha s been allotted during 2017 to 2020 as support to 
the fish growers, in the form of 60% grants, for the implementation of an 
environmental related aspects reform.  
• Custom duties for Tilapia, Carp, and Mullet (fresh, froze n and fillet) were reduced 
by 50% from 15 NIS/KG to 7.5 NIS/KG. Further tariff reductions will be 
examined, based on fish growers' profitability over the coming years.  
 
4. TRADE POLICIES BY SECTOR  
4.2 MINING AND ENERGY  
4.2.2 Natural Gas  
Paragraph 4.44, page 82  
According to the report, Israel has a natural gas export policy (Government Decision No. 442 of 23 
June 2013), whereby, starting from June 2013, approximately 540 bcm of production is reserved 
for the domestic market and around 300  bcm for export. The Ministry may order to domestic 
needs are met first at market prices. Exports require permits.  
 
EU question  No 30: Is the export  to Egypt  still on the table?  Would  it need a construction  of a new 
gas pipeline?  If so, would  it get to Damietta  plant?   
 
Answer : As stated in the Report "in 2018, the Tamar owners and Leviathan owners 
concluded two agreements to export a total quantity of 64 bcm of natural gas to Egypt 
(32 bcm from each reservoir)." Further details are not available at this point.  
 
4.2.3 Electricity  
Paragraphs 4.50 and 4.51, page 84  
According to the report, the Government pursues the objective of fostering a competitive market 
structure in electricity generation, while maintaining a natural monopoly in transmission, and 
regional monopolies in distribution. Reforms of the electricity market have been implemented to 
end the monopoly of the Israel Electric Corporation (IEC), mainly through the licensing of 
independent power producers.  
 
EU question No 31 : When the reform of the electricity sector will be concluded? Could Israel 
anticipate which are the perspectives of such reform?  
 
Answer:  The reform of the electricity sector includes 3 major elements:  
1. Establishment of a new independent system operator to replace the current SO 
unit in IEC, as a separate government owned company, starting December 2019  
2. Reduction of IEC's market share in the production segment by privatizing 5 
production sites with total capacity of 4500 MW, over a period of 60 months, 
starting December 2019  
3. Intro duction of competition in the retail segment to households - this measure is 
still pending final approval of the Knesset.  
 WT/TPR/M/376/Add.1  
 
- 56 - 
 
  EU question No 32:  Could Israel explain what measures are foreseen to support the increase of 
renewable energy production?  
 
Answer:  An overview of Israel's renewable energy scheme is available in pages 19 -20 of 
the document in the following link:  
http://www.medreg -regulators.org/Portals/_default/Skede/Allegati/Skeda4506 -233-
2018.3.9/RES_Benchmarking.pdf?IDUNI=ygbawh5lnnkutwk2j0z1k2yy8432  
 
WT/TPR/G/376 – Israel Government's Policy Statement  
3 Structural and Sectoral Reform Initiatives  
3.1 Main Initiatives  
Paragraph 3.3, Page 11  
Services represent ca. 80% of Israeli GSP, but the presence of international operators in some 
sectors is negligible, like in the retail banking, insurance, food retail or construction.  
 
According to the Government report, a series of reforms have been initiated to address the 
relatively high cost of living and, in particular, several reforms are underway in the financial 
services sector.  
 
EU question No 33 : Given the influence of services on the cost of living, is Israel envisaging any 
action to promote the presence of international actors?   
 
Answer:  Israel is constantly seeking different ways to promote competition and reduce the cost of 
living, and reviews specific sectors taking into account  its domestic needs.  
 
EU question No 34 : With particular reference to the financial sector, could Israel list the reforms in 
the final service sectors and whether these will results in an increased openness of the Israeli 
market?   
 
Answer:  Since 2012, regulators have taken various steps to improve stability, competition , and 
investors' confidence in banks, institutional investors, and the capital market  . 
 
In 2013 the Zaken Committee  proposed the following major reforms:  
 
Increasing competition in the pr ovision of credit to households and small businesses by non -bank 
institutions;  
 
Removing impediments to switching from one bank to another by improving and streamlining the 
process of transferring direct debits from the old bank to the new one.  
 
In 2015 th e Strum Committee  addressed the problem of increasing the level of competition in 
the banking system and in the credit market by the following proposals:  
 
The separation of two credit card companies from the two largest banks and the possible 
separation of  the third card company from its two mid -sized bank owners;  
 
Expanding access to the clearing and settlement infrastructures by regulating these in accordance 
with the EU Payment Services Directive, along with an increased role for nonbanks in credit 
provision. 
 
In 2016 the Baris Committee  addressed the regulatory framework for non -banking credit 
institutions by proposing the regulators introduce reforms or specific relegations in the following 
areas:  
Section a  (Baris -1) –  
Non-institutional credit  - direct  credit, leasing  and credit services while providing 
other services, including discounting, credit facilities and guarantees.  
Deposits without credit  - the preservation and management of financial assets  . 
Payment service providers  (transfers) and currency , as well as currency 
conversions  (excluding credit)  . 
 
 WT/TPR/M/376/Add.1  
 
- 57 - 
 
  Section b  (Baris 2) –  
Cooperative banking  - in terms of credit unions and deposits  . 
Non-interest non -profit credit and deposit institutes (known as "G'Machim")  
Section c (Baris 3)  –  
 
Peer-to-Peer ("P2P") Online brokerage and lending platforms  
 
3.3 Antitrust and Competition  
Paragraph 3.15, page 12  
 
Israel mentions, as new primary legislation adopted, the "Enactment of the "Promotion of 
Competition and the Reduction of Concentration Law".  
 
EU question No 35 : What is the institutional setup of the Centralization Committee? How are its 
member nominated? Does it have an advisory role in all circumstances or can it eventually issue 
binding opinions?   
 
Answer:  The Centralization Committee is established according to the Promotion of 
Competition and Reduction of Concentration Law ("The Concentration Law"). The 
Antitrust Commissioner is the head of the committee, and the other members are the 
Director General or the Chief Economist of the Ministry of Finance, and the Director 
General of the national economic council. The committee's role is only an advisory role.   
 
5 Israel's Trade Policy  
5.4 Bilateral Trade Agreements  
Paragraph 5.10, Page 18  
The Policy Statement s lists a series of recent negotiations on bilateral agreements that Israel has 
with trade partners, such as Colombia, Panama and Canada.  
 
EU question No 36 : What are the main innovations of the latest bilateral agreements in terms of 
content and scope?  
 
Answer : From Israel's perspective the above -mentioned agreements (Colombia and 
Panama new and Canada revised) are all more modern compared to the agreements 
Israel signed before 2013, and in some cases include separate chapters on areas not 
covered in deta il, in Israel's previous agreements. For example, all three agreements 
have TBT and SPS chapters and both agreements with Colombia and Panama include 
chapters on services and investment protection. The Agreement with Canada goes 
further to include chapters  on trade and environment/labour/gender.  
 
Additional questions  
 
Israel is supporting the participation of foreign companies in different sectors in the country, but 
there is not enough normative to support the management of working visas.  
 
EU question  No 37: Does Israel  intend  to automatize  and reduce  the cost of short working  visas for 
EU citizens?  
 
Answer:  An inter -ministerial committee is currently examining the policy regarding 
short term entry permits, including costs. The committee is not expected to discuss the 
automatization of short working visas for EU citizens.  
  WT/TPR/M/376/Add.1  
 
- 58 - 
 
  FOLLOW UP QUESTIONS FROM THE EUROPE AN UNION  
WT/TPR/S/376 – WTO Secretariat's Report  
 
2 TRADE AND INVESTMENT REGIMES  
 
EU initial question No 3 : Is Israel envisaging a modification of the list of sectors where foreign 
ownership thresholds apply also as a means of inducing compe tition in the s hielded sectors?  
 
Answer : Israel is constantly seeking different ways to promote competition and reduce the cost of 
living, and reviews specific sectors taking into account its domestic needs.  
 
EU follow -up question : Could Israeli specify in which sectors Israel is considering action, with a 
view to promote competition and reduce the cost of living ? 
 
Answer:  Israel is considering a number of sectors in which the promotion of competition 
and market openness may assist  in the reduction of the cost of living. These sectors 
include, inter alia, distribution, banking, financial services and construction.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
EU initial question No 4 : Could Israel explain the strong discrepancy in time and costs for border 
and documentary compliance towards the average of OECD high -income countries? Is Israel 
envisaging any measure to improve those indicators and continue the positive trend of 2012 -
2018?  
 
Answer : According to our understanding the World Bank's rating was based on data that included 
some procedures that are not within the scope of the Customs Authority. For example, the costs 
and time lines for unloading shipments at the ports are not co ntrolled by the Customs Authority. 
Therefore, in our view the rating is an inaccurate indicator for the performance of customs 
clearance. Taking into consideration only the factors that are under the Customs Authority's 
responsibility 95% of the import con signments to Israel are released within one hour.  
 
EU follow -up question : In Israel's opinion, what would be the reason for the high costs and time 
lines for unloading shipments at the Israeli ports ? 
 
Answer:  Israel is in the process of improving the infra structure in its existing ports; 
developing two new ports which should be operational in 2021, and developing 
paperless shipment management systems. Combined with other competition promotion 
activities, including in other related services, the costs and ti me lines are expected to be 
improved.  
 
EU initial question No 13: Does Israel accept certificates and test reports as proof of compliance 
with its technical regulations and standards from foreign labora tories? Under which conditions?  
 
Answer:  In addition to the US -Israel and Canada -Israel MRA agreements on recognition of test 
certificates of telecom equipment and to the ACAA agreement on GMP, signed with the EU, the 
Standards Institution of Israel has a lengthy list of B -2-B agreements with Eur opean and other 
foreign laboratories.  
 
Israel is also part of the CB Scheme. In addition, when imports fall into product groups that 
require only a Supplier's Declaration of Conformity to be released from customs, it suffices to 
submit a certificate from a  foreign laboratory that is accredited by an accreditation organiz ation 
that is a an ILAC member.  
 
As regards the complaint implied above, we are not aware of any problem EU companies have 
encountered.  
 
EU follow -up question : Is the list of B -2-B agreement s publicly available? Which are the 
requirements for a foreign laboratory to be included in such a list?  
 WT/TPR/M/376/Add.1  
 
- 59 - 
 
  Answer:  Following is a link to a list of mutual recognition agreements (MRA) between 
the Standards Institution and foreign laboratories:  
 
http://www.sii.org.il/1589 -en/SII_EN.aspx  
 
The establishment of MRAs is the business decision of the Standards Institution of 
Israel.  
 
WT/TPR/G /376 – Israel Government  Report  
 
EU initial question No 3 4: With particular reference to the financial sector, could Israel list the 
reforms in the final service sectors and whether these will results in an increased openness of the 
Israeli market?  
 
Answer:  Since 2012, regulators have taken various steps to improve stability, competition, and 
investors' confidence in banks, institutional inv estors, and the capital market.  
 
In 2013 the Zaken Committee  propos ed the following major reforms:  
 
Increasing competition in the provision of credit to households and sma ll businesses by non -bank 
institutions; removing impediments to switching from one bank to another by improving and 
streamlining the process of transferring direct debits from the old b ank to the new one.  
 
In 2015 the Strum Committee  addressed the problem of increasing the level of competition in 
the banking system and in the credit mar ket by the following proposals:  
 
The separation of two credit card companies from the two largest banks and the possible 
separation of the third card company from its two mid -sized bank owners; expanding access to the 
clearing and settlement infrastructures by regulating these in accordance with the EU Payment 
Services Directive, along with an increased role fo r nonbanks in credit provision.  
 
In 2016 the Baris Committee  addres sed the regulatory framework for non -banking credit 
institutions by proposing the regulators introduce reforms or specific regulations  in the following 
areas:  
 
Section a  (Baris -1) – 
Non-institutional credit - direct credit, leasing and credit services whil e providing other 
services, including discounting, credit facilities and guarantees.  
Deposits without credit - the preservation and management of financial assets.  
Payment service providers (transfers) and currency , as well as currency conversions 
(exclu ding credit).  
 
Section b (Baris 2) –  
Cooperative banking - in terms of credit unions and deposits.  
Non-interest non -profit credit and deposit institutes (known as "G'Machim")  
 
Section c (Baris 3) – 
Peer-to-Peer ("P2P") Online brokerage and lending platforms . 
 
EU follow -up question : Could Israel specify which of the reforms, suggested by the Zaken, Strum 
and Baris Committee, that actually have been drafted, approved and implemented?  
 
Answer:  
1. The work conducted by the Zaken  Committee was mostly implemented 
regarding increasing competition and reduction of banking fees  which did  not 
require any new specific legislation.  
 
2. Pursuant to the recommendations of the Strum Committee (2015) which 
addressed the problem of increasing th e level of competition in the banking 
system and in the credit market, the Increase in Competition and Reduction of 
Concentration in Banking Law was passed in January 2017. The Law 
establishes the changes needed to separate the two credit card companies WT/TPR/M/376/Add.1  
 
- 60 - 
 
  from the large banks, alongside establishing a Central Credit Register, 
providing an outline for setting up completely new banks, promoting increased 
efficiency in the banking system, and advancing technology and innovation in 
the banking system.  
 
3. Pursuant to the recommendations of the Baris Committee (2016) which 
addressed the regulatory framework for non -banking credit institutions, the 
Control of Financial Services (Regulated Financial Services) Law (2016) was 
passed.  
 
The Law establishes a mandatory licensing requirement for financial service -
providers – credit providers or providers of financial asset services. The Law 
defines two types of licenses for engaging in the provision of a Financial 
Service:  
Credit -Provider license - for example: the provis ion of credit, loans, a credit 
line, check discounting, factoring services or the provision of a guarantee for 
another party’s undertaking.  
 
Financial Asset Service -Provider license - defined in the Law as a closed list of 
assets, including, inter alia, ca sh, checks, promissory notes, bills of exchange, 
bank checks or travel lers' checks, cards loadable with particular sums, bearer 
bonds and virtual currency.  
 
The Law exempts from the licensing requirement those entities that are 
supervised by virtue of othe r financial laws, such as the Banking Law, the 
Securities Law and the Control over Financial Services (Insurance) Law, and 
private individuals who are providing credit through internet platforms serving 
solely as brokers (P2P platforms).  
 
The Capital Marke ts Insurance and Savings Authority (“CMISA”), was 
appointed to the role of Supervisor of Financial Service Providers.  
  WT/TPR/M/376/Add.1  
 
- 61 - 
 
  ARGENTINA  
- Regarding section 3.3. ("3.3 Measures affecting production and trade"),  
 
Question 1:   could Israel report whether it has measured the impact of antitrust and competition 
measures on the dairy or food sector?  
 
Answer : The Israel Antitrust Authority carries out research projects related to the level 
of competition in food sector on an ongoi ng basis. This includes a recent research 
project on substitution and market definition in milk -based spreads and other products, 
an investigation of changes in the competitive landscape and pricing for infant formula, 
etc. The Authority is currently in th e first stages of a large -scale survey of the food 
sector that is based on price data of all products sold in supermarket chains nation -
wide, and is examining the effect of distribution agreements (with an emphasis on 
distribution by large firms) of variou s food products on the competition. In addition, the 
Authority carries out econometric checks to support inquires of merger requests and 
requests for the approval of restrictive arrangements.  
 
Question 2:  What has been the impact on the number of bidders a nd prices in these sectors?  
 
Answer:  As also stated in the Government Report (page 19, paragraph 5.14),  in  the past 
few years, Israel introduced new voluntary tariff rate quotas of substantial amounts, 
open for all WTO members, for a number of highly demanded food and agricultural 
products such as fresh and chilled beef and hard cheese. These resulted in a hig h 
number of bidders for these TRQs, some of which were new bidders. Regarding the 
prices, between the years 2014 - 2017, these TRQs resulted in a decrease of 
approximately 10% in the prices of hard cheese (both imported and locally produced) 
and a decrease  of 5% -25% in the prices of fresh and chilled beef.  
 
3.1.1 Customs procedures, valuation, and requirements  
 
- Paragraph 3.2 indicates that Israel requires importers to be registered with the Israel Tax 
Authority (ITA) for the purposes of VAT and the tax on  purchases, additionally importers should be 
registered with the Food Control Service of the Ministry of Health and be provided with an official 
importer certificate.  
 
Question 3:  Could Israel indicate what are the requirements that an importer must meet f or the 
aforementioned registrations and issuance of the certificate?  
Answer : In order to register as an importer  one should apply to NFS with its details: 
name, address, contact person, e -mail, copy of identity papers and the address of a 
licensed warehouse for storing the food products. Registration of the importer is based 
on municipal license/approval of the ware house for food storage. The warehouse could 
be the property of the importer or leased. Refusal to register an importer could be in the 
case where the importer does not have a licensed warehouse to store the goods. 
Another reason for refusal could be in cas e of severe convictions or indictments on the 
grounds of public health protection. No fees are required for registration. Registration 
takes a maximum of 10 working days (subject to receiving complete information). The 
registration is valid for 2 years and  can be renewed for up to 5 years.  
Prior authorization of sensitive goods is carried out based on documentation from the 
manufacturer and analyses relevant to quality and safety of the product and compliance 
with the requirements, and based on documentatio n from the competent authorities 
that the manufacturing site is under supervision.  
A decision concerning a request for prior authorization takes up to 45 days (except 
infant formula and food for special purposes - up to 60 days). The authorization is valid 
for 1 -4 years according to the importer's request. The fees for a request are currently 
384 NIS for 1 year.  WT/TPR/M/376/Add.1  
 
- 62 - 
 
  The procedure for issuance of prior authorization and release from the port (in Hebrew):  
https://www.health.gov.il/hozer/food05 -001.pdf . 
- Paragraph 3.4 mentions that, since 2008, Customs has operated a single window for the 
electronic processing of import permits through various competent authorities.  
 
Question 4:  Could Israel detail what services the single window offers and what are the 
procedures and requirements stipulated for the operator to access it?  
 
Answer:  The window serves importers that need to obtain licenses or permits in order to 
import goods into Is rael and also serves the ministries and competent authorities in 
responding to the requests sent by the importers as well as for presenting each 
authority's import requirements.  
 
The most recent updates included adding the following government ministries to the 
system:  
 
Ministry of Communications, Ministry of Culture and Sport, Israel Antiquities Authority , 
Ministry of Agriculture and Rural Development, Ministry of Environmental Protection.  
 
- Paragraph 3.8 explains that the Israel Tax Authority has an ele ctronic service to issue advance 
rulings on the classification of goods.  
 
Question 5:  Could Israel indicate what is the electronic procedure for issuing advance rulings?  
 
Answer: Israel currently provides for electronic advanced rulings regarding the origin of 
goods and customs valuation via email.  
Regarding  classification of goods - any person can submit a request for an advance 
ruling using the int ernet based electronic service.  
Please see below the link to the website where general instructions are available and 
through which the submission is made:  
https://taxes.gov.il/English/customs/CommercialImport/Pages/ClassificationImport.aspx  
 
The electronic service supports attachment of documents for the purpose  of examination 
of the request.  
Results are sent via the electronic service directly to the email address entered by the 
requesting party.  
 
3.1.3.1 Applied MFN tariffs  
- In paragraph 3. 15, it is indicated that, during the period under review, Israel unilaterally 
eliminated import duties on several products.  
 
Question 6:  Could Israel give the list of all the products to which the import duties have been 
eliminated and indicate if such eli mination is temporary or definitive?   
 
Answer:  As also stated in the Government Report (page 19, paragraph 5.14), in recent 
years, as part of the government’s review of tariff and non -tariff measures and in an 
effort to  reduce the cost of living, Israel has eliminated tariffs on more than 1,300 tariff 
lines (at HS 8 -digit level). These unilateral tariff eliminations are promulgated through 
temporary orders. All updated tariffs, as well as the relevant expiry date for eac h tariff, 
are published on Israel's Customs Tariff website:  
 
https://shaarolami -
query.customs.mof.gov.il/CustomspilotWeb/UrlHash/CustomsBook?hash=QDtbP0YBT7gjCp6RDUfr
OPB8l2j6VnrvejrOzoRz1qvjyKDX~UdH9aczrJeWZvznhzTCod4YQpIUSwhxWb9YNTcrUhFBSdFS30O2j
SXj~sh%2BXCxM~FpqoeA5EeLlmIIO  
 
3.1.5  Import prohibitions, restrictions, and licensing  
- Paragraph 3.31 states that the “2012 Free Import Order” provides that, if the imported goods 
comply with the corresponding technical requirements, the government may grant annual WT/TPR/M/376/Add.1  
 
- 63 - 
 
  authorizations prov ided that the importer presents a declaration that subsequent shipments will be 
identical.  
 
Question 7:  Could Israel describe the process to acquire these permits?  
 
Answer: The procedure and conditions for obtaining an annual permit vary depending on 
the type of technical requirements concerned, for example regarding automotive parts 
an annual approval will be granted if a product file has been compiled by an authorized 
laboratory which contains evidence of compliance to Israeli technical requirements.  
 
Veterinary services and animal health  
- In paragraph 3.100, it is indicated that “Under the VSAH's import procedures, meat and eggs 
must originate from plants approved by the VSAH in authorized countries.”  
 
Question 8:  In this regard, in relation to the pro cedures for importing meat and eggs, could Israel 
clarify whether “meat” refers to avian, bovine and ovine meat?  
 
Answer  -The import procedures are the same for different kinds of meat.  
 
Kosher certification  
 
- In paragraph 3.104, the report indicates that the “Kosher” certification is only required for meat 
products, however, it can often be considered a practical market requirement since many hotels 
and businesses do not accept any prod uct without this certif ication.  
 
Question 9:  Could Israel indicate to what extent the government intervenes to prevent this 
requirement, not stipulated in the legislation, from becoming an obstacle to trade?  
 
Answer:  The purchasing of kosher certified products is a result of consumer preference 
and is not mandated by law.  
 
The government does not see the need for intervention since no Kosher certification is 
required for non -meat products. In addition, we note that Is raeli legislation does not 
preclude marketing and selling of both Kosher and non -Kosher products.  
  WT/TPR/M/376/Add.1  
 
- 64 - 
 
  DOMINICAN REPUBLIC  
2.4 Investment Regime, pg. 24  
2.23. The Foreign Investments and Industrial Cooperation Authority (formerly "Invest in Israel") 
under the Ministry of Economy and Industry is the Government's investment promotion arm for 
foreign investors. Eligible foreign or domestic investments in industrial projects benefit from 
assistance pursuant to the Law for the Encouragement of Capital Investment, wh ich is managed by 
the Investments Authority at the Ministry of Economy and Industry. Various tax and non -tax 
incentives are available for research and development (R&D), including grants to launch joint R&D 
projects with Israeli entrepreneurs, or to encour age foreign multinational companies to establish 
financial R&D centres in Israel. Israel currently has investment protection agreements with 37 
countries and double taxation treaties in force with 54 countries.  
 
Question 1:  Are there other incentives for companies that do not have R&D projects? What are 
the requirements to apply for these incentives?  
 
Answer:  Yes, there are incentives for companies that do not have R&D projects. The Law 
on Encouragement of Capital Investment aims to encourage local and foreign capital 
investments and commercial entrepreneurship, particularly innovation and economic 
activities in disadvantaged areas. The support given under this programme is in the form 
of grants and/or reduced rates of taxation. Grants of up to 20% of the approved capital 
investment are given to approved enterprises located in disadvantaged areas. 
Incentives un der this programme are provided to globally competitive industrial 
companies, as well as companies in tourism (hotels) and real estate sectors. Foreign 
owned companies that are incorporated in Israel are eligible for these incentives.  
 
3.3 Measures Affecti ng Production and Trade  
3.3.1 Incentives  
Pg. 42  
3.72. Most of the incentive programmes that the Authority operates offer participation in the risks 
involved in the development process via conditional loans (Table 3.12). Companies that receive 
this kind of support undertake to repay the received funding to the Authority via the payment of 
royalties from sales (up to 3% from the annual sales associated with the supported R&D activity), 
but only if the project succeeds in reaching the commercialization stage. Usually the share of the 
R&D project's cost that the Authority will finance will not exceed 50% of the approved 
expenditures (some programmes in the Start -up Division offer up to 85%).  
 
Question 2:  Can foreign companies also apply for all the benefits of t he incentive programs 
managed by the Innovation Authority, including conditional loans?   
 
Answer:   In general, foreign owned companies may benefit from the incentives if they 
are incorporated in Israel but there are some programs that are extended also to 
companies that are not incorporated in Israel.  
 
  WT/TPR/M/376/Add.1  
 
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  GUATEMALA  
3. Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.4.5 Copyright  
3.181  
 
Could Israel provide more information regarding the provisions on copyright which allow 
access to works in accessible formats for people with visual impairments? What procedures have 
been implemented for the creation of the authorized entities referred to in the Marrakesh Treaty?  
 
Answer:  The link below includes the WIPO questionnaire with answers provided by the 
Israel giving a brief background to the implementation and operation of the Marrakesh 
Treaty in Israel:   
http://www.wipo.int/export/sites/www/marrakesh_treaty/en/docs/mt_questionnaire_israel.pdf  
 
In addition, with regard to how an entity may become an "auth orized entity" there is no 
certifying authority in Israel for such, rather any entity conforming with the criteria set 
forth in the law will be deemed as so authorized. An "authorized entity" is defined in the 
law as any one of the following:  
 
(1) Not for profit institution as defined in the Value Added Tax law, 1975i, where one of 
its objectives, or one its primary activities is education, training or welfare of persons 
with disabilities or making information accessible to said persons;  
 
(2) A government office;  
 
(3) An educational institution of the kind determined by the Minister of Justice.  
 
2. Trade and Investment Regime  
2.4 Investment Regime  
2.20 
 
Could you kindly state the reason why the State of Israel does not have a foreign investment law? 
Are there any plans to have one in the future?  
 
Answer:  Historically, Israel has always been open for foreign investments and the need 
to distinguish between foreign and local investors has not arisen. As a result, there is no 
specific legislation in Israel at  this point which requires the pre –screening or approval 
of investments by foreigners in Israel. Israel does maintain certain sectorial laws and 
regulations (see table 2.3 in page 24 of the Secretariat Report).  
 
  WT/TPR/M/376/Add.1  
 
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  UNITED STATES  
Questions based on the Secr etariat Report (WT/TPR/S/376)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing and safeguard measures  
Page 36, Paragraph 3.34 : Paragraph 3.34 of the Report by the Secretariat notes “The Trade 
Levies and Safeguard Measures Law of 1991…was last amended in 2011. The legislation has yet to 
be notified to the WTO.”  
 
a. Please identify when Israel expects to notify this legislation to the WTO AD, SCM and 
Safeguard Committees.    
Answer:  Israel is in the midst of preparing the notification on the amendment. The 
amendments made in 2011 to the Trade Levies Law refer to the following:  
 
1. Before applying a provisional measure in anti -dumping and safeguard 
proceedings the decision to apply the provisional  measure must be submitted to 
the Director General of the Ministry of Economy and Industry. The DG's approval 
will be given only after consulting with the Director of the Budget Departm ent of 
the Ministry of Finance.  
2. When determining whether to apply a pro visional anti -dumping and safeguard 
measure the Commissioner of Trade Levies, in addition to the existing 
considerations detailed in the law, must also weigh the potential injury to other 
sectors in Israel likely to be effected by the decision to impose a  provisional 
anti-dumping and safeguard measure.  
3. The approval of the Knesset Finance Committee for the imposition of the duties 
specified in the law is required prior to the imposition of the duty instead of 
within 60 days following its imposit ion. 
Page 36 , Paragraph 3.36 : Paragraph 3.36 of the Report by the Secretariat indicates that final 
findings “…are submitted to the Advisory Committee on Anti -Dumping and Countervailing 
Measures. The Committee, composed of six public representatives, four employees of the Ministry 
of Economy and Industry, and four employees of the Ministry of Finance, deliberates the findings 
of the Commissioner and invites the domestic industry, importers, exporters, government 
representatives of exporting countries, trade organization s and other interested parties to present 
arguments.”  
 
a. What opportunities are interested parties provided to examine and rebut or argue against 
the arguments presented by others to the Committee?  
Answer:  Interested parties may provide the Committee with their written and oral 
comments regarding the Commissioner's final report for the Committee to consider 
before it reaches its conclusion and makes its recommendation to the Minister. A non -
confidential ver sion of the parties' comments is circulated betwe en all the interested 
parties. Interested parties may attend the Committees' meetings and may present the 
Committee with their oral comments as well as address arguments presented by others 
before the Commit tee. 
 
b. How does the Committee provide an opportunity for interested parties to address the 
ultimate determination that is made by the Committee, including the underlying facts on 
which the determination is based?  
Answer:  The final determination regar ding th e imposition of an anti -dumping measure is 
made by the Minister of Economy and Industry and requires the approval of the Minister 
of Finance as well as approval by the Finance Committee of the Knesset. Interested 
parties may provide the Committee with thei r written and oral comments regarding the 
Commissioner's final report for the Committee to consider before it reaches its 
conclusion and makes its recommendation to the Minister.  
 
c. Is the Committee report issued for public comment or review? If so, is it el ectronically 
accessible?   WT/TPR/M/376/Add.1  
 
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  Answer:  The Committee's report is not issued for public comment.  
 
d. Can the Committee overturn a recommendation made by the Commissioner?   
 
Answer:  Yes. 
 
e. Can the Committee increase the measure, or are the only options available to accept the 
Commissioner’s recommendation or apply a lesser duty rate?   
 
Answer:  Yes. The Committee can reach any conclusion it sees fit, based on the mater ials 
and arguments it examined.  
 
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Page 46, Paragraph 3.85:  In addition to the information provided, we understand further from 
the Standards Institute of Israel’s (SII) website that “Most Israeli standards are voluntary; 
however, they may be converted into mand atory standards if they are vital for the protection of 
public safety or public health or quality of the environment. The procedure to convert standards 
into mandatory standards is performed either by a declaration by the Minister of Trade and 
Industry - proclaiming the standards as official standards, or by publishing an order or regulation 
on behalf of the Minister in charge of the particular area.”  
a. Where can declarations by the Minister be found? Where are orders or regulations 
published?   
Answer:  Notifi cations on the declaration of standards are published in Reshumot 
(Official Gazette), the official government publication of the Ministry of Justice ’s 
website:  
http://www.justice.gov.il/En/Units/OfficialPublications/Pages/default.aspx  
Search for publications in Reshumot  – 
https://www.gov.il/he/Departments/official_gazette  
Various legislative notes /legislation drafts:  - 
http://www.tazkirim.gov.il/Pages/tazkirim.aspx?typeofsearch=lastpublish  
The regulations and orders of other ministries are also published on the internet sites of 
each of the ministries.  
In addition, the Standards Institution of Israel (SII) has a standards catalog, including a 
note indicating whether the standard is mandatory:  
https://portal.sii.org.il/eng/standardization/tekensearchex/.aspx  
The Standards Administration has a search engine for mandatory standards:  
http://www.economy.gov.il/English/Industry/Standardization/Pages/search_engine_standarts.aspx   
b. Please also provide further clarification of how interested parties are able to comment on 
voluntary standards that are made mandatory. Is there a different proc ess depending on 
whether the standards are made mandatory by declaration by the Minister or by publishing 
an order or regulation? At what stage can the public review and comment on draft 
mandat ory standards developed by SII?  
Answer:  When it is proposed to change the status of a standard  from voluntary to 
mandatory Israel’s official Enquiry Point notifies the WTO Secretariat. Member s may 
then send their comments.  
Whether the status changes by declaration of the Minister or by publication of an order 
or regul ation, in both cases a TBT notification will be sent and thus interested parties 
will be able to comment.  WT/TPR/M/376/Add.1  
 
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  The public can review and comment on a draft mandatory standard in Israel at two 
different stages:  
• Once the Standards Institution of Israel (SII) has finished developing or 
revising an existing standard (either voluntary or mandatory), it 
announces it on its website and allows 30 days for public comments, as 
required by the Standards Rules:  
https://portal.sii.org.il/heb/standardization/publicstandards/.aspx  
(Hebrew only)  
• After the above -mentioned consultation is complete and all comments 
have been considered, mandatory standards are sent from the SII to 
Israel’s Commissio ner of Standardization. The Commissioner reviews the 
standard and opens a new consultation as required by the Standards Law. 
The Commissioner consults with relevant ministries, government 
authorities, importers, manufacturers and consumer representatives. Any 
other person wishing to comment may do so during this period. Israel 
uses the consultation period to also notify, as required, the WTO TBT 
Secretariat of changes in technical regulations  
c. How long is the comment period?  How are comments taken into acc ount?  
Answer: During the standards preparatory stage, prior to publication of the final version, 
a 30-day public consultation is held. Anyone may submit reservations. All the requests 
are disc ussed in a technical committee.  
 
If a mandatory standard is being discussed, following the aforementioned process and 
to the extent that there is an intention to change the status of the existing standard – 
declaration of official status or removal thereof – a public consultation is held with all 
significant public bodies, including relevant government ministries, consumer groups, 
importers, manufacturers etc. The consultation lasts 30 days in average.  
 
All comments, including of WTO Members, are taken into consideration.  
 
Page 46, Paragraph 3.86 :  Besides SII laboratories, we understand that compliance testing can 
be carried out by a laboratory which holds an approval and/or recognition certificate from the 
Commissioner of Standardization and those labs can issue a compliance certif icate. How does a 
foreign laboratory go about gaining approval and/or recognition from the Commissioner of 
Standardization?  
 
Answer : A laboratory requesting approval must be located in Israel. In order for a 
foreign laboratory to gain recognition a governm ent to governme nt agreement is 
required.  
 
a. Are conformity assessment bodies required to have a presence in the Israeli market in 
order to gain the Commissioner of Standardization’s approval?  
 
Answer:  Yes. 
 
b. Could Israel please provide a list of foreign laboratories that have gained the 
Commissioner of Standardization’s approval/recognition?  
 
Answer:  Under the U.S. -Israel telecom MRA, the Commissioner recognizes US 
laboratories designated by NIST.  A list of these laboratories can be found at the 
followin g link:   
http://economy.gov.il/standartization/InternationalActivity/Documents/Annex_IV_agreement.pdf  
 
Page 45, Paragraph 3.81: In addition to the information provided in the report by the 
Secretariat regarding the resolution on Regulatory Impact Analysis (RIA), we request the following 
information:  
 WT/TPR/M/376/Add.1  
 
- 69 - 
 
  a. Are all of the draft regulations and RIA published on each Ministry’s website als o published 
on a cen tral website ? 
 
Answer:  All RIA reports are published on the government regulations website:  
http://regulation.gov.il/RIA_REP  
 
b. How does each Ministry coordinate with the MOE to ensure the draft regulations being 
reviewed via the RIA are notified for WTO member review and comment?  
 
Answer:  Most draft regulations are published on the following website :  
http://www.tazkirim.gov.il/Pages/tazkirim.aspx?typeofsearch=lastpublish . 
Stakeholders may then send their comments for a time period of 21 days.  It should be 
noted that RIA is required only for governmental proposed legislation. Relevant 
regulations are n otified to the WTO as required.  
 
c. At what stage will RIA be made public for stakeholder input, including WTO members, 
when it undergoes changes in the Knesset or Knesset committees?  
Answer:  The decision of whom to include as relevant stakeholders in the RIA procedure 
is made on a case by case basis.  
It should be noted that most draft regulations are required to be published on the 
Ministry of Justice's website for public comments as to assure relevant stakeholders, 
including  trading partners, of participation  in the legislative process.  
 
d. How many RIAs have been conducted and could you provide a list of those regulations, the 
status, and whether they have been notified to the WTO TBT Committee for review and 
comments?  
Answer:  In question 'a' we have provided a link to all of the RIA reports that have been 
published since the obligation to conduct RIA was introduced (46 reports).  
There is no governmental portal that allows the public to track the status of a specific 
law as it is discussed in the Knesset. However, the Knesset discussions and protocols 
are open to the public on the Knesset website.  
 
Relevant regulations are notified to  the TBT Committee as required.  
 
Page 45, Paragraph 3.82:   
In the past year, the USG has engaged with Israel bi laterally and at the WTO TBT Committee on 
draft regulations (“mandatory standards”) that did not align with the international standards as 
Israel’s Ministries had noted was their intent. In addition, many were not originally notified to TBT, 
although trade  relevant, such as Israel’s draft Pharmacist Ordinance and its accompanying 
guidance on nanotechnology. We appreciate the information regarding the number of notifications 
Israel has made over the previous period. We would ask for additional information re garding the 
process Israel uses to determine which technical regulations and conformity assessment 
procedures to notify.  
 
a. How does Israel’s Enquiry Point work with Ministries to ensure relevant measures are 
notified?   
Answer:  Israel WTO -TBT Enquiry Point operates from within the Standardization 
Administration in the Ministry of Economy and Industry. This allows tracking of changes 
made in mandatory standards that constitute the majority of t echnical regulations in 
Israel.  
The EP cooperates with the Israel Foreign Trade Administration and the Import 
Administration in the Ministry of Economy and Industry, which reviews drafts of Israeli 
laws and regulations that may affect international trade. The EP is in contact with the 
minist ries and government agencies that issue regulations or produce legislation, 
emphasizing the importance of informing it of any changes in technical regulations or 
legislation, and of Israel’s obligations as a member of the WTO.  WT/TPR/M/376/Add.1  
 
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  b. What process do the responsib le government entities take to review and to address 
comments received? How do they ensure that this process is transparent?  
Answer:  Draft regulations are published for public comments. The relevant ministry or 
government agency, reviews the comments submi tted, takes them into consideration 
and then makes revisions, as appropriate. In addition, the EP receives comments on 
Israel’s notifications and transmits them to the government ministries and agencies 
responsible for the proposed measure in order for the m to provide comments. Most 
regulations are discussed in various Knesset committees which are open for public 
participation.  
c. When will Israel notify to the WTO TBT Committee the draft regulation and/or guidance 
with respect to the Pharmacist Ordinance and  its accompanying guidance on 
nanotechnology to the WTO TBT Committee  for member review and comment?  
 
Answer:  The original No tification (GTBTN13ISR70) was published on 23 October 2013 
and since then was revised twice, on 7 June 2017 (Add. 1) and on 23 Janu ary 2018 
(Add. 2). These regulatio ns have remained in draft form.  The Ministry of Health has 
received comments and proposals from interested parties and these have been taken 
into consideration d uring the legislation process. When the regulation is finaliz ed, it will 
be published and made available to the general public.  
 
Page 45, Paragraph 3.83:  With regard to mandatory standards:  
 
a. Where can one find a current list of mandatory Israeli standards? Of the mandatory 
standards, how many are and/or will be re -evaluated via the RIA process?  
Answer:  The Standardization Authority ’s search engine for mandatory standards can be 
found:  
 
http://www.economy.gov.il/English/Industry/Standardization/Pages/search_engine_standarts.aspx  
 
Although mandatory standards do not undergo a RIA process nonetheless they are 
subject to consultatio n procedures as detailed above.  
 
Page 45, Paragraph 3.84: Israel categorizes standards into 3 broad categories – international, 
European and “other” which includes U.S. standards.  
 
a. How does Israel define “international standards”?  In Israel’s view, are international 
standards just those developed by ISO and IEC?  
 
Answer:  For the purposes of transforming Israeli standards into international standards 
in accordance with the Standards Law, Israel adopts international (ISO, IEC and Codex 
Alimentarius) as well as standards of major trading partners.  
 
Page 46, Paragraph 3.85:  We would appreciate additional information about SII’s  standards 
development process.  
 
a. Are technical committees open to participation by any relevant sta keholder, including 
foreigners?  
 
Answer:  Any person who is not a representative of acad emia, industry, manufacturers or 
importers according to the numbers defined in the Standards Law, may request to 
participate in any committee meeting that is of interest to them.  Committees generally 
respond positively to such requests.  The SII internet site allows those interested to 
search for meetings.  Similarly, protocols of meetings are made public.  
 
b. Where are draft standards published for comment and what is the typica l length of the 
comment period?  
 
Answer:  Draft standards are published on the SII  site: 
https://portal.sii.org.il/heb/standardization/publicstandards/  The comment period is 30 days.  
 WT/TPR/M/376/Add.1  
 
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  Pages 44 -45, Paragraph 3.80 : We appreciate the information on the sector responsibilities of 
different ministries in Israel, including the Ministry of Health for cosmetics.  As you are aware, the 
United States has recently raised questions, including in the TBT Committee (STC #57), about 
Israel’s new cosmetic requirements (Cosm etics 5778 -2018, G/TBT/N/ISR/709/Add.2). While we 
appreciate the recent Knesset decision to further consider these requirements, we continue to 
have questions, including the requirement to have an actual person, rather than a corporate 
entity, to serve as the responsible person, does not align with international best practice for 
corporate registration, nor is it feasible.  
 
a. Does Israel plan to address concerns with this requirement? If so, how?  
b. Can Israel elaborate as to the differing responsibilities it r equires for parallel importers of 
cosmetics products versus the responsible person and the manufacturer?  
 
Answer:  The purpose of the proposed regulations is to open the market to more 
competition while still maintaining the safety and quality of the cosmet ics market in 
Israel. This is part of a broader effort to further lower barriers to imports into the Israeli 
market in order to reduce prices and improve the quality of goods for the consumer’s 
benefit. The proposed regulations are still being discussed.  
 
3.3.3 Sanitary and phytosanitary requirements  
Page 48, paragraph 3.94 : The Secretariat states Under the Law, food imports are divided into 
two groups: "sensitive", and "non -sensitive". According to the authorities, sensitive foods are 
classified as such based on risk assessment with regard to different aspects such as microbiology, 
chemistry, animal source, foods intended for particular consumer groups, etc. Sensitive goods 
under the responsibility of the National Food Service (NFS) include: milk products  and milk product 
substitutes; food supplements (vitamins, minerals and herbs); baby food; low -acid canned foods; 
egg products; mineral water and beverages based on mineral water; mushroom products; high 
caffeine food products; fresh fruit and vegetables; fish and fish products; and meat products.  
 
a. Please explain the process for determining whether food imports are “sensitive” or “non -
sensitive?”  What is the process for the same products produced domestically?  
 
Answer:  According to Protection of Public Health Law (Food) -2015, the list of "sensitive 
foods" is published on the internet site of the NFS. The categories listed are determined 
based on risk management, microbiological and chemical hazards concerned, history 
and past experience, whether the food is intended for specific groups such as infants or 
for particular metabolic situations. Link to the list (in Hebrew):  
https://www.health.gov.il /PublicationsFiles/SensitveFood.pdf . 
 
Domestic manufacturers must have a manufacturer's license from the Ministry of Health. 
The license is for the facility (and not for the products) based on the technological flow, 
cross contamination prevention, quality  assurance system and hygienic conditions. In 
the case of sensitive food, the frequency of the official controls is higher. The 
classification of sensitive food is the same for imported and locally manufactured goods.  
Page 48, paragraph 3.95 : The Secretari at states that all food importers must be registered with 
the NFS, and consignments of sensitive goods must have prior authorization from the NFS. For 
non-sensitive food products, prior authorization for imports is no longer required, nor is original 
docum entation from the manufacturer demonstrating compliance with Israeli regulations.  
 
a. Please describe in detail the process to obtain prior authorization?  
 
Answer:  Only registered importer can submit an application  for prior authorization of 
sensitive goods. The authorization is specific for the product, manufacturer (specific 
site), supplier and importer. The importer applies to NFS by submitting a request form 
including specifications of the product from the manuf acturer, documentation from the 
manufacturer with quality and safety aspects of the product showing compliance with 
the legislation requirements, label of the product, and documentation from competent 
authorities that the manufacturing site is under superv ision.  
Decision about a request for prior authorization is taken within:  WT/TPR/M/376/Add.1  
 
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  • 21 days for finished food products  
• 14 days  for raw materials  
• 45 days for dietary supplements and raw materials for them  
• 60 days For infant formula and food for special purposes  
 
The a uthorization is valid for 1 -4 years according to the importer's request. The fees for 
a request for 1 product are 384 NIS for 1 year. A request for renewal of an authorization 
can be submitted 3 months before expiry date of the certificate.  
The procedure for issuance of prior authorization and release from the port (in Hebrew):  
https://www.health.gov.il/hozer/food05 -001.pdf  
Page 48, paragraph 3.96 : The Secretariat states that imports of sensiti ve foods must be 
accompanied by certificates of analysis that certify their quality and safety, are checked at import, 
are sampled every three months, and are released to the importer's warehouse subject to a bank 
guarantee while awaiting the test results.  
 
a. Please describe the process required for similar products produced domestically?  
 
Answer:  In regard to an importer who is in con tact with the manufacturer (direct or 
through a supplier), an alternative for certificates of analysis is documentation signed 
by the manufacturer of the composition of the food and a declaration of the 
manufacturer that the batches of the consignment are in c ompliance with the 
specifications of the product.  
 
In regard to products produced domestically, in the case of sensitive food the frequency 
of the official controls in the facilities is higher, and includes checking the analyses 
conducted by the food busin ess operator and sending samples for laboratory testing as 
part of the official controls.  
 
Specifically, in the case of sensitive foods such as infant formula analysis of each batch 
is required, and in the case of dietary supplements records of analysis of  batches should 
be kept.  
 
3.3.4 Competition policy and price controls  
Page 52, paragraph 3.112 : the Secretariat states, during the review period, the Israel Antitrust 
Authority (IAA) limited sector -specific exemptions in agriculture and in maritime and air  transport, 
the last remaining sectoral exclusions of the competition law. An exception applies to the growing 
or marketing of certain agricultural products, provided all parties are producers or wholesalers of 
the product concerned (fruit and vegetables, field crops, milk, eggs, honey, cattle, sheep, poultry, 
or fish).  
 
a. What is the justification for antitrust exemptions for certain agricultural products?  
 
Answer:  Antitrust exceptions for agricultural products are justified based on the fact 
that markets for agricultural products are often marked by large differences in supply 
over time periods, because of climate or weather events, etc. Therefore, there is public 
value in allowing an exemption that allows producers of a certain product (and it sh ould 
be emphasized, the exemption allows only horizontal cooperation between producers of 
the same agricultural product, and does not allow vertical integration or cooperation) to 
coordinate in order to maintain a constant supply of the product in question , by 
coordinating issues of supply chain and pricing.  
 WT/TPR/M/376/Add.1  
 
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  Page 53, paragraph 3.119 : the Secretariat states Retail prices of a number of goods and 
services remain under the control of the Government (Table 3.15). Prices are either fixed by the 
Government (e.g.  certain utilities, and communication and transportation fees) or are subject to 
supervision, requiring approval before they may be increased (certain foodstuffs, school books, 
and medicines). Price control and supervision concern almost 20% of food produc ts in the CPI 
basket.  
 
a. Please explain how these price control measures impact imported food products?  
 
Answer: Price control measures present an effective maximum price ceiling for imported 
goods in the same category. The government sets a maximum price according to the 
production costs of local producers and is not authorized to set a maximum price for 
imported products.  
 
In fact, an importer is free to sell the product according to its own considerations but 
due to market forces will likely charge an eq ual price or lower than the controlled. The 
competition of imported products is not blocked but rather effectively is limited to the 
maximum price set by the government.  
 
3.3.5 State trading, state -owned enterprises, and privatization  
Page 54, paragraph 3. 121: the Secretariat states Israel has notified to the WTO that the Israel 
Groundnuts Production and Marketing Board is the only state -trading enterprise (SOE) with 
exclusive export rights as defined in GATT Article XVII and the Understanding on the Interp retation 
of Article XVII.  
 
a. What is the justification to maintain an SOE for groundnuts?  
 
Answer:  The Groundnuts Board is responsible for exporting the majority of Israel 
groundnut production.  
 
3.3.6 Government Procurement  
 
Page 55, Paragraph 3.129: The Secretariat notes that in 2016, the Israeli government 
procurement market, excluding defense, hospitals, and sub -central entities, was estimated at 
approximately NIS 32 billion (or US$8.1 billion).  
 
a. Could Israel please provide information or statistics  on the number of and value of 
contracts awarded by the Government of Israel covered by the WTO GPA?  
Answer:  Israel’s Government Procurement Administration is currently in the process of 
developing a system that will be able to provide statistics for government procurement.  
According to the statistics for 2017 (that are based on estimates), contracts awarded by 
the government that were covered by the WTO GPA amounted to 28.2 billion NIS (in 
approx. 8,500 contracts) out of 30.6 billion NIS in total. These numbers refer to 
procurement conducted only by entities listed in Israel's Annex 1.  
Page 55, Paragraph 3.131:  The Secretariat notes that Israel has been allowed to implement 
offset arrangements as part of its GPA commitments.  
 
a. Could Israel please provide information or statistics on the number of and value of 
contracts awarded by the Government of Israel that req uired offsets?  
Answer:  The total offset obligations by foreign companies in civil procurement for 2016 
amounted to $425 million in a total of 27 contracts. In 2017 the offset obligations by 
foreign companies in civil procurement amounted to $1.19 billion  in 188 contracts.  
Page 55, Paragraph 3.133: The Secretariat notes that there is an exemption committee in each 
government office that has the authority to grant exemptions from tenders; for larger -value 
procurements, the Central Exemption Committee has the  authority.  
 
a. What are the criteria for which an exemption from tendering may be granted?  WT/TPR/M/376/Add.1  
 
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  Answer:  Criteria for exemptions are varied and include for example,  low valued 
transactions  (under 50,000 NIS) certain continued transactions, land acquisitions under 
certain circumstances, advertising in th e media, contracts for services  requiring special 
relations of trust including legal, accounting and arbitration  services, transactions which 
may cause substantial harm to national security, etc..  The fu ll list may be found in the 
Mandatory Tenders Regulations ( English translation updated until 2012) at:  
https://www.mr.gov.il/Information/Training%20materia ls/Mandatory%20Tenders%20Law.pdf  
Page 57, Paragraph 3.136: The Secretariat notes that Israel’s regulations allow a price 
preference of up to 15% to local suppliers and that preferences do not apply to contracts subject 
to GPA provisions.  
a. Does this mean tha t GPA countries (or countries with which Israel has a trade agreement 
with government procurement obligations) benefit from a price preference relative to non -
GPA suppliers, or are there no preferences applied at all for GPA -covered procurements?  
Answer:  Yes, GPA countries (or countries with whom Israel has a free trade agreement 
with government procurement obligations) benefit from a price preference relative to 
non-GPA suppliers.  
3.3.7 Intellectual Property Rights  
Page 60, Paragraph 3.150: Paragraph 3.150 refers to Israel’s position on the scope of 
protection for GIs, citing to its Annual Report of 2015. The Annual Report references the 
consideration of prior rights and genericness of terms. With respect to Israel’s practice, does Israel 
refuse GIs on prior existing trademark rights? Can a proposed term be refused as generic? If so, 
what are the criteria determining if a proposed term is generic in your country? If an individual 
component of the proposed GI is generic, is the generic element specifically disclaimed or 
otherwise noted as being non -exclusive to the registrant?  Similarly, can the use of a generic 
component of a protected GI be the basis for an infringement action by the GI owner or 
enforcement authority?  
 
Answer:  Geographical in dications (as that term is defined in the TRIPS Agreement) may 
obtain protection in Israel through one of several means, each with its own conditions, 
as follows: (1) As a certification mark within the registered trademark system; (2) 
Under a sui generis u nregistered right (similar to a passing off concept) provided that 
the geographical indication is renowned in Israel at the time enforcement is sought; 
and, (3) As an "Appellation of Origin" within the Lisbon Agreement system provided that 
the "geographica l indication" would meet Lisbon eligibility criteria.  
 
Israel does not maintain a sui generis register of geographical indications, rather 
geographical indications may be protected as an unregistered right or within the 
framework of a "certification mark".  Israel also provides protection for "appellations of 
origin". In each of these frameworks resolution of conflicts between prior trademark 
rights and subsequent rights in geographical indications or appellations of origin, Israeli 
law generally follows a r ule of "first in time first in right" and in certain circumstances 
may allow parallel registrations or use.  
 
Genericness is generally a ground for refusal to register a trademark or an appellation of 
origin and may be used as a defence as against a claim o f infringement of a trademark, 
or a geographical indication or of a registered appellation of origin.  
 
Genericness is generally determined on a case by case basis in accordance with the facts 
of a case.  
 
As a general rule generic elements  in a trademark, certification mark, geographical 
indication or appellation of origin do not obtain exclusive rights on their own but only in 
combination with other elements. Registered trademark practice does allow disclaiming 
protection in such elements,  however even where a disclaimer was not formally used 
generic elements, on their own, would not generally be  eligible for exclusive rights.  
 
Page 65, Paragraph 3.169: For the patent opposition, does the IPO republish the invention once 
the opposition is r esolved in case there are any changes on the claims or the abstract…etc? Does WT/TPR/M/376/Add.1  
 
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  the IPO grant any patent protection extension if the opposition’s decision takes a long time to be 
issued?  
 
Answer:  Yes, the patent file is available for public inspection on the Patent Office’s web 
site from the time of 18 month publication. All changes in the specification, claims etc. 
are reflected in the patent file.  
 
The Patents Law does not provide for patent prot ection extension if the opposition’s 
decision takes a long time to be issued. However, it should be noted that with respect to 
the period between publication for opposition through to patent grant (if granted) the 
patent holder is eligible for full retroac tive damages with respect to exploitation that 
took place during that period provided that such acts of exploitation would infringe the 
patent in the form in which it is granted.  
 
Page 65, Paragraph 3.170: What are the exact regulations that deal with the parallel 
importation for the patented products?   
 
Answer:  The Israel Patents Law definition of "exploitation of an invention" includes 
"importation" as one of the exclusive patent rights held by a patentee. Case law has 
been inconclusive in interpreting th is section as to whether it implies international 
exhaustion or not.  
 
Page 66, Paragraph 3.176: How will the parallel importer practically take steps to avoid the 
impression of any relationship with the right holder?  
 
Answer:  According to Israeli case law, the question of creating an impression of a 
relationship with the trademark right holder is determined on a case by case basis, and 
will be examined according the context and circumstances, taking into account the type 
of goo ds and the reasonable expectations of the consumer. For example, whether the 
relationship between the seller and the buyer is continuous or is a one -time transaction. 
The parallel importer can state that the goods are original, but to the extent that 
impor tation of such goods into Israel would disqualify them for warranty protection by 
the rights holder or other such benefit, the parallel importer should notify the consumer 
and in not doing so may open the importer to liability under consumer protection law . 
We recall that Article 6 of the TRIPS Agreement leaves to the Members to determine for 
themselves whether to adopt an international exhaustion system.  
 
Page 67, Paragraph 3.180:  The report references that the “current law also provides no clear 
statutory  guidance on the circumvention of technical protection measures and liability of online 
service providers.” Does Israel have plans on any to introduce legislation regarding the 
circumvention of technical protection measures and online service provider liab ility? 
 
Answer : Requirements for protection against the circumvention of technological 
protection measures in the copyright context arise post TRIPS in international 
agreements to which Israel is not bound. Currently, there are no plans to create specific 
TPM legislation.  
 
Page 67, Paragraph 3.180:  The report discusses the 2013 Safecom case and highlights the 
Supreme Court’s point that more “in -depth deliberation” and “more detailed legislative guidance” 
may be necessary to manage the controversy around the  application of the fair use doctrine in the 
digital context. Is Israel considering whether this “in -depth deliberation” will occur in the courts, 
the legislature, or in a different context?  
 
Answer:  Israel's open ended "fair use" provisions of the Copyright Law are flexible and 
will be further developed by the courts over time.  
 
Page 67, paragraph 3.182: The report references the extension of the term for the protection 
for phonograms is conditioned by “publishing copies in an amount sufficient to r easonably satisfy 
the public’s demand for the phonogram.” What factors are considered in determining whether this 
condition is met? How is reasonable satisfaction of public demand defined? Who would make that 
determination? What process would be followed i n making that determination?  
 WT/TPR/M/376/Add.1  
 
- 76 - 
 
  Answer:  This is a new provision in the Copyright Law, which will be developed by the 
courts, taking into account that copies of phonograms are sometimes published in 
physical copies and sometimes published through on line digi tal means which may not 
go "out of print" as readily as in the world of physical copies.  
 
Page 68, paragraph 3.183:  The report mentions that provisions in the Digital Broadcast 
Distribution Law “explicitly recognize the rights of creators and performers” a nd follows such a 
statement by explaining that a registered multi -channel provider requires authorization from 
copyright holders and performers for content in the broadcast. Are the rights of creators and 
performers recognized in any other manner in the Di gital Broadcast Distribution Law and the 
multi-channel broadcast context?  
 
Answer:  With respect to the Digital Broadcast Distribution Law the rights of creators and 
performers are not recognized in any other manner.  
 
The Communications Law, which regulates  the cable and satellite multi -channel 
broadcasters, prohibits said broadcasters from broadcasting IP infringing content and 
allows for administrative fines in case of violation of that prohibition.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, an d Fisheries  
4.1.1 Agriculture  
4.1.1.1 Features  
4.1.1.2 Trade  
4.1.1.3 Policies  
Page 72, paragraph 4.9 : The Secretariat states, the Ministry of Agriculture and Rural 
Development is the principal government agency responsible for developing agricultural polic y and 
preparing draft legislation for the Knesset. In addition to its headquarters, the Ministry includes the 
Agricultural Research Organization, extension services, plant protection services, and veterinary 
services. There are also three production and ma rketing boards that operate under a specific law, 
and are responsible for implementing policy: the Egg and Poultry Board; the Groundnuts Board; 
and the Plants Production and Marketing Board.  
 
a. Please explain the role each of the industry production and mark eting board have in 
implementing policy?  
 
Answer:  
 
A. Egg and Poultry Board : 
The Board is responsible for the following sectors –table eggs, broilers, 
turkey and the respective breeding/reproduction sub sectors.  
The role regarding implementation of government  policies:  
1. The allocation through its quotas’ committee of the overall national quota 
for table eggs set up by the government and in consultation wi th the 
Board - to the entitled farmers.  
2. Regular inspection and monitoring as to the farmer's full compliance  with 
the quotas allocated to them –including applying the appropriate 
sanctions derived from excess quota production.  
3. Management of the surpluses of all poultry production to prevent decrease 
of adequate farm gate prices – and in full compliance with Israeli anti -
trust laws.  
4. Collecting authorized levies from all poultry farmers to finance the 
following activities:  
• Removal of surpluses  
• Supporting and financing R&D activities for the benefit of the 
sector  
• Financing marketing promotion  
• Collectively financ ing the poultry farmers share in the premiums 
for the relevant insurance programs against natural hazards and 
calamities  
• Providing on a regular basis for the public, governmental and 
public agencies information and data regarding the poultry sector.  WT/TPR/M/376/Add.1  
 
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B. Plant s Production and Marketing Board:  
All the aforementioned activities of the Poultry Board  are relevant to this board 
as well, except for the allocation of quotas (there are no production quotas in 
the Israeli horticulture sector).  
 
C. Groundnuts Board:  
The board is responsible for exporting the majority of Israel groundnut 
production.     
 
Page 73, paragraph 4.11 : the Secretariat states, as noted in the last Report, the Government 
maintains a significant role in agriculture, particularly in the dairy and egg sector, and the overall 
policy objective has been to ensure food security, including through self -sufficiency in fresh dairy 
products, poultry, and eggs.  
 
a. How is access for imported dairy, poultry and eggs products impacted by Israel’s goal of 
self-suffici ency for these products?  
 
Answer : International trade volume in  dairy products and table eggs is relatively low. 
Due to Israel's complex geo -political environment and Israel's policy objective to ensure 
food security  the government still maintains a significant role in these sectors namely 
quota regimes and minimum guaranteed prices for the farmers. In addition, Israel still 
maintains for these two types of products relatively high tariffs while fully complying 
with its relevant commitments under bila teral and multilateral trade agreements. 
Ongoing discussions are being held between relevant stakeholders and government 
representatives regarding reforms in the dairy and table eggs sectors, with the following 
aims:  
 
1. Improving production infrastructures in terms of animal welfare and 
environmental aspects;  
2. Expanding the units of production in order to improve farmers' profitability and 
reduce the costs of production in order to further reduce consumer prices;  
3. Further liberalization of trade measures regar ding increased imports of products 
related to these sectors.  
 
4.1.1.3.1 Trade Policies  
Page 73, paragraph 4.15 : The Secretariat states the most recent notification on the 
administration of tariff quotas? (TQs) was in 2003. Import licenses for in -quota imports may be 
issued by either the Ministry of Economy and Industry for processed products or the Ministry of 
Agriculture and Rural Development for fresh products, usually based on a pro rata basis or, if 
applications exceed the TQ quantity, by a lottery or on a first -come -first-served basis, with 10% of 
the TQ reserved for newcomers.  
 
a. Since the most recent notification on administration of TRQs was 2003, will Israel provide 
an updated current TRQ administration notification?   
 
Answer : The Ministry of Agri culture and Rural Development issues its in -quota TRQs 
either on a first -come -first served basis or on a pro rata basis, depending on the demand 
for a specific TRQ, the number of importers etc. The lottery system has been phased out 
from the Ministry's TRQ  mechanism.  
 
The administration of TRQs and other import procedures has gone through significant 
regulatory and policy improvements in recent years:  
 
• As for TRQs under bilateral and multilateral agreements:  
o 75% reduction in document requirements  
o Computeriz ed TRQ submission system  
• As for Imports of animals and animal products:  
o Eliminating import license requirement for live fish  
o Reducing inspections at ports using Risk Management Methodologies  
• As for Imports of agricultural equipment:  
o Adaptation of international regulations  WT/TPR/M/376/Add.1  
 
- 78 - 
 
  o 90% reduction in document requirements  
Please note that the 2003 notification has been updated and submitted recently.  
 
b. What are the qualifications for a newcomer?   
 
Answer:  In general, for quotas allocated by the Ministry of Econ omy and Industry a 
newcomer is one of the following:  
1. An importer who imported less than 20 Tons of food products, and paid full 
customs duties, per year for the three years prior to submitting an application  
2.  An importer who imported less than 10 Tons of b utter or powdered milk, and 
paid full customs duties, per year for the three years prior to submitting an 
application provided that it did not import any other food products during that 
year.  
For certain products additional conditions may apply, for further information see:  
https://www.gov.il/quotas  
For quotas allocated by the Ministry of Agriculture and Rural Development, newcomers 
have to show a minimum of 40 tons import of food products in order t o be quali fied for 
the process.  
 
Page 75, paragraph 4.18 : The Secretariat stated up to the end of 2016, Israel used export 
subsidies for a limited range of products, mainly for non -citrus fruits and for vegetables. During 
the period 2007 -16, the budgetary outlay for  export subsidies varied from zero for the year ending 
30 September 2007 to US$2 million for the year ending 30 September 2011 (Table 4.4). Israel has 
stated that, as of 1 January 2023, export subsidies will no longer be granted.  
 
What other domestic support measures for agricultural products does Israel plan as export 
subsidies are being phased out ? 
 
Answer:  
Most of the support measures to agricultural exports will be allocated through "green 
box like" marketing promotion programs.  
4.1.1.3.2 Internal  policies  
Page 76, paragraph 4.20 : The Secretariat states Under the Dairy Sector Planning Law of 2011, 
which replaced the Milk Market Planning Law of 1992, the dairy industry is closely regulated and 
controlled through production quotas, regulated prices f or milk from producers, and regulated 
retail prices for milk and other dairy products. The Law and government policy are applied by the 
Dairy Board and its governing body, the Dairy Industry Council.  
 
a. How is market access for dairy products treated under this law?  
 
Answer : - The Dairy Sector Planning Law of 2011, foresees that most of the domestic 
consumption of dairy products will be supplied by domestic production. However, the 
law ensures compliance with Israel’s commitments under all relevant internati onal 
agreements.  
b. Please explain in detail the steps Israel is taking to maintain support levels below AMS 
commitments.  
Answer:  Ongoing discussions are being held between relevant stakeholders and 
government representatives regarding reforms in the dairy and table eggs sectors, with 
the following aims:  
1. Improving production infrastructures in terms of animal welfare and 
environmental aspects;  
2. Expanding the units of production in order to improve farmers' profitability and 
reduce the costs of production in o rder to further reduce consumer prices;  
3. Further liberalization of trade measures regarding increased imports of products 
related to these sectors.  
c. Please provide an update to the ENPARD Seminars that were planned for 2018.  
 WT/TPR/M/376/Add.1  
 
- 79 - 
 
  Answer:  The purpose of the ENPARD Seminar related to the dairy sector (which took 
place in 2017)  was to explore alternative policies for the Israeli dairy sector by:  
• Learning from the experience of the EU Member States, following the recent 
phase out of the quota regime in the EU.  
• Exploring and comparing alternative policies for the Israeli dairy sector, their 
costs and benefits and their efficiency with regard to Israel dairy policy 
objectives  
• Israel’s conclusion from this seminar]  is that the phasing out of the quota regime 
is not  the appropriate solution due to specific constraints of the Israeli 
agricultural and dairy sectors, including rural development policies and 
geopolitical constraints.  
 
d. Page 77, paragraph 4.26 : The Secretariat states that apart from milk and eggs, 
minimum prices are also applied to wheat, based on the Kansas market price adjusted for 
quality and transport costs. However, domestic prices for wheat were higher than the 
reference price. Other domestic support measures include investment programmes for 
fruits, vegetables, flowers, and poultry meat; income insurance for cereals; and herd aid 
for bovine meat.  
 
a. Please provide details on “Other domestic support measures?”   
Answer:  
1. The investment programmes for fruits, vegetables, flowers, and poultry 
meat include up  to 25 % grants of the recognized investment programs  
 
2. Income insurance for cereals include 80% subsidies of the premiums for 
this program  
 
3. As for herd aid for bovine meat – An agreement between cattle producers 
and the government that foresees increased TRQs for imported fresh and 
chilled beef from 7,500 tons in 2016 to 17,500 tons in 2020, combined 
with gradual reduction of the MFN tariffs on the out of quota imports from 
12% plus 1,300 NIS (USD 339) per ton in 2016 to 12% with zero NIS in 
2020.  
 
On top of the ongoing 7 year support program of NIS 23 million which was 
agreed upon in 2014, an additional direct support program to the grazing 
cattle growers until 2024, has been  agreed upon - gradually rising in 
accordance with the increase of the TRQs and tariff reduction from NIS 12 
million in 2017, up to NIS 16 million in 2021 and on.  
 
NIS 4 million (out of the abovementioned sums) will be allocated annually 
to improve profess ional practices.  
 
In addition to the above mentioned support measures, Israel provide:  
4. Payments for relief from natural hazards and disasters programs  
 
5.  Services provided by the Ministry’s various units:  
• R&D activities through the Chief Scientist budget and the Ministry's 
ARO (Agricultural Research Organization)  
• Extension and training programs  
• Inspection and plant protection services  
• Veterinary services  
• Soil conservation and drainage department  
• Pest prevention activities  
• National park protection authorit y 
• Pasture authorities  
• Marketing promotion  
 
Questions based on the Government Report (WT/TPR/G/376)  
 
 WT/TPR/M/376/Add.1  
 
- 80 - 
 
  3 STRUCTURAL AND SECTORAL REFORM INITIATIVES  
3.2. Reducing the Regulatory Burden and Regulatory Impact Assessment (RIA)  
Page 12, paragraph 3.11: Israel states that an RIA is conducted before formulating the 
regulation itself, at the policy planning stage. If the regulation undergoes changes in the Knesset 
or one of the Knesset committees, the ministry will not be required to edit and publish a new RIA.  
 
a. At what stage if any will the RIA be made public for systematic stakeholder input?  
Answer:  The stage in which the RIA will be made public and the decision of whom to 
include in the RIA procedure is made on a case by case basis.  
 
It should be noted that most  draft  regulations are required to be  published on the 
Ministry of Justice website for public comment.  
 
b. How many RIAs have been conducted and could you provide a list of those regulations and 
the status?  
Answer:  All RIA reports that have been published sin ce the obligation to conduct RIA 
was introduced (46 reports) are published on government regulation website:  
http://regulation.gov.il/RIA_REP  
 
Protocols of discussions taking place in the Knesset  concerning  draft laws and 
regulations (those requiring parliamentary approval) are open to the public on the 
Knesset website.  
 
Page 12, paragraph 3.12: Israel states that in order for Israel to avoid performing a complex 
process on negligible regulation, the respons ible minister may exempt a specific regulation from 
the requirement to perform a RIA process in cases where the impact of the regulation on the 
targets of the regulation or on other public interests is negligible.  
 
a. Is there a monetary or other threshold for what Israel considers “the impact of the 
regulation on the targets of the regulation or on other public interests is negligible”?  
Answer:  There is no specific definition for those terms. However, the general use of 
these terms is that the proposed legislation does not impose extra costs or bureaucratic 
burden on the public.  
3.3 Antitrust and Competition  
Page 13, paragraph 3.15 : Can Israel define the term “Other rights”? Can Israel explain how it 
imagines the Committee advising this term? Does t his term include the IP rights?  
 
Answer:  In addition to licenses in essential infrastructures, the Centralization 
Committee advises the government regarding contracts which are defined as "an 
engagement for the execution of an activity that is one of the areas of essential 
infrastructure”, which is carried out in a procedure according to the Mandatory Tenders 
Law,or regarding actions of significant privatization of state owned companies. The 
categories in which rights are defined as essential infrastructures are specified in the 
schedule to the la w an d do not include IP rights.  
 
5 ISRAEL'S TRADE POLICY  
5.3 WTO  
Page 17, Paragraph 5.6: The government report notes that Israel took an ambitious approach in 
implementing the Trade Facilitation Agreement, notifying all commitments under Category A. 
Howeve r, Israel has not submitted its transparency notifications to the WTO under Articles 1.4 
(information on import, export, and transit procedures), 10.4.3 (information on operation of the 
single window), 10.6.2 (information on the use of customs brokers), an d Article 12.2.2 (contact 
points for the exchange of customs information).  
 
a. Could Israel please indicate its plans to submit the information required by the 
notifications to the WTO?  
Answer:  We are currently working on completing and submitting these notifications.  
 WT/TPR/M/376/Add.1  
 
- 81 - 
 
  5.5 Unilateral Trade Liberalization  
Page 19, paragraph 5.5, 5.15 : Israel states they have eliminated tariffs on more than 1,300 
tariff lines (at HS 8 -digit level) on many consumer  goods, where the prior level of customs duties 
had been in the range of 6 -12%. The reductions are worth over $150 million in annual customs 
revenue. In addition, in the past few years, Israel introduced new voluntary Tariff Rate Quotas of 
substantial amou nts, open for all WTO members, for a number of highly demanded food and 
agricultural products such as fresh and chilled beef, hard cheese and olive oil. For some of the 
product, the out of quota duty rate was reduced as well.  
 
a. Will Israel provide a list of  the 1,300 tariff lines that have been eliminated?  
 
Answer:  All updated tariffs, as well as the relevant expiry date for each tariff, are 
published on Israel's Customs Tariff website:  
https://shaarolami -
query .customs.mof.gov.il/CustomspilotWeb/UrlHash/CustomsBook?hash=%2B49OeZqwvVJ2gzNY6
c5mN8ILDCbYsrVtFsCnb1jxPbq2oqgfL6irjurf015eC4CWw5O~tyB7CNIGNVM0zbZMFJm%2BDJuBT8
~NK~vbLCbSzXdmKZ1JBa6jmUYGFEdZkRgV  
 
b. Please provide details on new voluntary TRQs (fresh/chilled b eef, hard cheese, olive oil, 
etc. Additionally, please clarify what Ministry in charge of the following: administering each 
quota, TRQ quantity, in -quota rate, out -of-quota rate, and import license requirements?  If 
there are multiple ministries, will Isra el please explain how the ministries work together to 
ensure transparent and predictable administration of the TRQ’s ? 
 
Answer:  The information, as well as all relevant information on TRQs is published on the 
Ministry of Economy and Industry and Ministry of  Agriculture and Rural Development's 
websites . Please see links below:  
 
Ministry of Economy and Industry:  
 
https://www.gov.il/quotas  
 
Ministry of Agriculture and Rural Development : 
 
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/import/Pages/default.aspx  
 
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/publication_list/2018/nohal_2018/Pages/nohal_
michsot2018.aspx  
 
http://www.moag.gov.il/yhidotmisrad/sahar_hutz/publication_list/2018/nizul_2018/Pages/dohnizu
lmichsot140118.aspx  
 
  WT/TPR/M/376/Add.1  
 
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  QUESTIONS FROM ECUAD OR 
 
1. According to page 19, paragraph 2.3, which mentions that “While Israel has long -standing free 
trade agreements (FTAs) with some of its main trading partners, it has been negotiating and 
exploring others with partners in Latin America and Asia, with a view to opening new markets for 
its exporters and diversifying its foreign trade.”  
 
Could Israel tell us which countries in Latin America are being analy sed to potentially open new 
markets?  
 
Answer: As both reports state, Israel is currently negotiating several FTAs which take up 
all of our resources. We are now in a process of re -evaluating our plans with th e aim of 
establishing new prioritization for future negotiations.  
 
2. In accordance with page 22, paragraph 2.14. “Bilateral trade in goods declined over 2012 -16, 
dropping to US$104 million in 2016. Israel exports mainly machinery and electronic equipment,  
organic chemicals and plastic products to Colombia, and imports mainly spices, organic chemicals, 
wood, and iron and steel products from it.”  
 
Could Israel explain to us the reasons why, during the 2012 -2016 period, the value of bilateral 
(Israel - Colomb ia) goods trade decreased, standing at US$104 million in 2016?  
 
Answer:  Our data shows a more moderate decrease in the value of goods traded 
between Israel and Colombia which may be explained, inter alia, by the weakening of 
the Colombian Peso, which decre ased the competitiveness of Israeli products in the 
Colombian market.  
 
3. In accordance with page 23, paragraph 2.20. “Israel does not have a foreign investment law. 
There is no special approval or screening process for investments by foreigners, according  to the 
authorities.”  
 
Could Israel tell us how they regulate foreign investment without the application of regulations?  
 
Answer:  There is no specific legislation in Israel which regulates investments by 
foreigners in Israel. Israel does maintain certain s ectorial laws and regulations (see 
table 2.3 in page 24 of the Secretariat Report).  
 
4. According to page 26 paragraph 3.4, which states that “Israel has a fully computerized customs 
system to which all customs agents are linked. The services of a customs broker/agent are not 
mandatory for commercial imports. A company may request special authorization from the ITA to 
have a direct link to the customs systems if it employs a licensed customs clerk with at least five 
years of experience. Since 2008, Israel Customs operates a single window with electronic 
processing of import permits through the competent authorities: the Ministry of Economy and 
Industry, the Ministry of Transport and Road Safety, the Ministry of Energy, the Ministry of Health, 
and the Israel Standards Institute. There are seven customs houses.”  
 
• Could Israel tell us if the service of a customs broker/agent is mandatory for exports? At what 
time can you obtain the aforementioned special authorization from Israel Tax Authority to have a 
direct link with the customs systems?  
 
Answer: The Customs Authority operates a fully compu terized foreign trade system to 
which all customs brokers can access. The services of a customs broker/agent are 
mandatory for commercial export procedures. A company may request special 
authorization from the Customs Authority to have a direct link to the  customs systems if 
it employs a customs broker who is licensed by the Customs Authority with at least five 
years of experience.  
 
5. According to page 26 paragraph 3.5, where Israel is mentioned “According to the authorities, 
about 86% of import consignmen ts are released within one hour, and some 5% of shipments are 
subject to non -security -related inspection (Table 3.1). Inspection is based mainly on risk 
assessment (risk profiling), and random selection is also used. Selection criteria include the origin 
of the goods (country, supplier), complaints regarding violation of intellectual property rights, and WT/TPR/M/376/Add.1  
 
- 83 - 
 
  the past record of importers. Customs has broad powers to seize and destroy counterfeit goods. 
Israel has no laws or regulations regarding pre -shipment ins pection.”  
 
Could Israel inform us if they are planning to adopt a regulation on pre -shipment inspection of 
goods?  
 
Answer:  We do not intend to adopt such regulation at this point.  
 
6. In accordance with page 26, paragraph 3.6. “Israel has in place the Authorized Economic 
Operator (AEO) programme, a voluntary programme based on the SAFE Framework of Standards 
of the World Customs Organization. The programme’s main goal is to promote international trade 
facilitation and efficacy while meeting global suppl y chain standards, thus reducing shipping costs. 
Companies that are willing to adopt the framework of standards benefit from Israel's mutual 
recognition agreements (MRAs). Israel has signed MRAs with: Canada (2016), China (2017), the 
Republic of Korea (201 6), Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) (2013), and the United States (2014). Negotiations for MRAs with Hong Kong, 
China; and Mexico are still underway.”  
 
Could Israel tell us how many AEOs are registered, and what type of operator is it? What are the 
requirements to become an AEO?   
 
Answer:  Currently, there are 180 companies that are registered in Israel as AEOs.  
They include exporters, customs brokers, international freight forwarders, warehouses, 
air cargo te rminals, seaports and airlines.  
 
The requirements to become an AEO include meeting certain security as well as customs 
related criteria. Examples for security criteria are: security policy management and  risk 
assessment, container and cargo security, phys ical security, access control, IT security, 
employees recruitment process, business partners and disaster recovery programs.  
 
Some examples for customs issues are: compliance with customs requirements and tax 
laws, financial viability and adequate systems for the management of commercial 
records (ISO9001).  
 
7. In accordance with page 49, paragraph 3.100. “Under the VSAH's import procedures, meat and 
eggs must originate from plants approved by the VSAH in authorized countries. To be included in 
the list of a uthorized countries, an Israeli importer must make a request for a specific permit to 
import a specific animal or animal product. The VSAH then sends a questionnaire to the competent 
authorities of the exporting country. The completed questionnaire is eval uated, and further 
information may be requested. On conclusion of the written procedure, and in consultation with 
the competent authorities, the VSAH visits the competent authority of the exporting country. The 
final report by the VSAH may include a conclu sion that imports may start immediately, whether 
additional guarantees are needed, or that the req uest for an import is refused. Once a year, the 
competent authority of the exporting country should send to the VSAH a list of plants authorized 
for the expor t to Israel of meat and offal, although it may amend this list during the year. Each 
year, the VSAH also conducts risk analysis and, based on the results, may decide which countries 
and which plants within these countries are to be audited.”  
 
Could Israel indicate the approximate time it takes for the process to include a country in the list 
of authorized countries, starting from the moment when the questionnaire is submitted all the way 
to the preparation of the final report? Is there an alert system for t he countries authorized to 
export in case of non -compliance with the system?   
 
Answer : The length of time that it takes to authorize a country to export to Israel varies 
and depends on several factors including the answers and information given, number of 
requests to authorize simultaneously, manpower assigned for the mission, coordination 
of a visit, on site visit, results of the visit, corrective actions, implementation if 
necessary, etc.  
 
  WT/TPR/M/376/Add.1  
 
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  ADDITIONAL QUESTIONS  FROM ECUADOR  
1. Secre tariat report. Page 8, po int 18  
Question:  Could Israel tell us if it has health/sanitary programs for animal control and what are 
they?  
 
Answer:  Israel has numerous health/sanitary programs for animal control including 
monitoring for infectious diseases hazards. The Israeli Veterinary Services have several 
departments dedicated to animal health, including cattle, horses, poultry, swine, small 
ruminants, fish and bees. IVSAH maintains a central laboratory that perform 5,000 
necropsies and 660,000 laboratory examinations annual ly. It also serves as the National 
Reference Laboratory for rabies, anthrax, botulism, brucellosis, avian influenza and 
animal mycoplasmas and an International Reference Laboratory for brucellosis. In 
addition, two separate well -equipped poultry laboratori es are maintained in conjunction 
with the Poultry and Egg Board. Each district has laboratory equipment to do periodic 
milk ring test for brucellosis. The National Service for Udder Health is owned by the 
Dairy Board and provides private services related t o mastitis.  
 
2. Pg. 55 -56. 
Question:  Could Israel disclose whether the laboratories that control exports and imports of 
animals or products of animal origin are government -controlled or private?  
 
Answer : Generally, the laboratories that control exports and imports of animals or 
products of animal origin are government controlled. However, there are also 4 private 
laboratories that are accredited by the Israeli Veterinary Services to conduct tests of 
pathogenic bacteria in food products of animal origin.  
 
3. Page 56 point 3.100  
Question: Could Israel inform us if the system described in the above -mentioned paragraph would 
also work for a prelisting system, similar to that implemented for the EU; and when dealing with 
imported products, could Israel specify which aspects are taken into account when determining the 
annual risk analyzes for the selection of the locations that would require audits ? 
 
Answer : The prelisting system in Israel is similar, but not identical, to the one 
implemented by the EU. The considerati ons taken into account when determining the 
annual risk analysis for the selection of the locations that would require audits for 
imported products are: the quantities imported from a certain country and from specific 
plants, the number of plants in that c ountry, the existence of new plants, results of 
previous imports to Israel and previous levels of nonconformity and the results of past 
audits.  
 
Likewise, there is no information of a procedure for the export of live animals and/or genetic 
material, could Israel specify the process to authorize exporters of live a nimals and/or genetic 
material?  
 
Answer:  Authorization of exporters of live animals and/or genetic material is granted by 
the Israeli Veterinary Services in accordance with the procedures and requirements of 
the importing countries, as conveyed through direct contact with the relevant Contact 
Point in the country of destination.  
 
4. Page 29 point 3.2  
Question:  Could Israel tell us how to obtain the official importer certificate?  
 
Answer:   In order to register as an importer one should apply to NFS with its details: 
name, address, contact person, e -mail, copy of identity papers and the address of a 
licensed warehouse for storing the food products. Registration of the importer  is based 
on municipal license/ approval of the warehouse for food storage. The warehouse could 
be the prop erty of the importer or leased.  
 
The procedure for issuance of prior authorization and release of the shipment (in 
Hebrew):  
 
https://www.health.gov.il/hozer/food05 -001.pdf  WT/TPR/M/376/Add.1  
 
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  5. Page 55 point 3.94  
Question:  In relation to the classification contained in the paragraph above -mentioned, could 
Israel explain to us whether it is communicated in advance to the exporting countries? Also, is this 
exercise in accordance with the categories handled to prevent the diff iculty in commercialization? 
Additionally, apart from the internal risk analysis, can it also be based on some other category?  
 
On the other hand, in reference to this law that marks a distinction of food into sensitive and non -
sensitive foods, could Israe l provide information on whether organic/biological/ecologic products 
are contained within these?  
 
Answer:  According to Protection of Public Health Law (Food) -2015, the list of "sensitive 
foods" is published on the internet site of the NFS. The catego ries listed are determined 
based on risk management, microbiological and chemical hazards concerned, history 
and past experience, whether the food is intended for specific groups such as infants or 
for particular metabolic situations. The list is available  (in Hebrew) on the Ministry of 
Health website:  https://www.health.gov.il/PublicationsFiles/SensitveFood.pdf . 
 
6. Page 56 point 3.96  
Question:  Could Israel precise what are the actio ns taken in case of obtaining negative results 
derived from the analysis of the imported products? For example: is the product sei zed and the 
guarantee refunded?  
 
Answer:  When the consignment is sampled for laboratory analysis and released to the 
importer's warehouse subject to a bank guarantee while awaiting the test results, the 
importer shall not market the goods until receiving positive results. If the results are 
negat ive, marketing of the goods is prohibited and the importer must  decide whether to 
destroy the consignment or return it. In case the importer releases the goods to the 
market before receiving positive results the bank guarantee may be forfeited subject to 
a hearing.  
 
7. Page 57 point 3.101  
Question:  Could Israel provide copies of Annex 3 and Annex 4 of the 2009 Plant Import Regulation 
and the Plant Health Regulation by which Israel determines the Phytosanitary Import 
Requirements ? 
 
Answer: The information is av ailable on the Ministry of Agriculture and Rural 
Development's website:  
http://www.moag.gov.il/ppis/Laws/Regulation/Documents/takanot_yevu_tzmahim_2009.pdf  
 
8. Question:  It would be very useful to know the status of the implementation of Israel’s singe 
windo w/point of entry for all govern ment authorities/agencies in relation to generate documents, 
permits, certificates etc. for imports, exports and transit.  
 
Answer:  The window serves importers that need to obtain licenses or permits in order to 
import goods into Israel and also serves the ministries and competent authorities in 
responding to the requests sent by the importers as well as for presenting each 
authority's import requirements.  
 
The most recent updates included adding the following government ministries to the 
system:  
 
Ministry of Communications, Ministry of Culture and Sport, Israel Antiquities Authority , 
Ministry of Agriculture and Rural Developmen t, Ministry of Environmental Protection.  WT/TPR/M/376/Add.1  
 
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  CHINESE TAIPEI  
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/ 376) 
 
II. Trade and Invest Regime  
1.3 Developments in trade and investment  
1.3.1 Trends and patterns in merchandise and services trad e 
Page 14 (Para 1.17-18) 
 
As indicated in the report, Israel is an export -oriented economy specializing in high -tech products 
and services, supported by incentives for export -oriented enterprises (Law  on Encouragement of 
Capital Investment , ECIL). However, Israel h ad a trade deficit in goods in the period under review, 
with merchandise exports in 2016 (in value terms) below the 2012 level. Also, Israel experienced 
a major shift from exports o f goods to exports of services.  
 
Question(s):  
1. Based on 2012-2016 exports  statistics, the Encouragement of Capital Investment Law did 
not seem to have result ed in the anticipat ed increase of exports. How effective is the ECIL  to the 
exports of services? Is it benefi cial to  investment and employment ? If so,  to what extent  is it 
beneficial ? 
 
Answer:  The requirements under the Law on Encouragement of Capital Investment are 
intended to ensure that incentives are available to companies that contribute to the 
economic independence of Israel and are competitive contributors to t he gross national 
product. The government, as any other investor, is interested in minimizing risks when 
investing; therefore the projects must be economically viable. In light of these goals, the 
law does not necessarily have an effect on exports (of good s or services) and therefore 
there is no anticipation for it to increase as a result of the law.  
 
2.3 Trade Agreement and Arrangement  
2.3.2 Regional and preferential agreements  
Page 20 (Para 2.8) 
 
As indicated in the report, Israel has long -standing free trade agreements (FTAs) with some of 
your main trading partners, and has been negotiating and exploring others with partners in Latin 
America and Asia. Furthermore, Israel has been engaged in free  trade negotiations with China.  
 
Question(s):  
2. Does Israel  plan to promote FTAs with Asia n countries  in the future?  If so, which countries? 
Would Israel consider negotiating an FTA  with Taiwan ?  
 
Answer: As both reports state, Israel is currently negotiating several FTAs which take up 
all of our resources. We are  now in a process of re -evaluating our plans with the aim of 
establishing new prioriti zation for future negotiations.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.7 Intellectual Property Rights  
3.3.7.4.1 Patents  
Page  64 (Para 3.167)  
 
According to the re port, a mendment No. 11 of Patent Laws, which entered into force on 24 
January 2014, revised Israel's patent term extension (PTE) system, which governs the extension 
of the patent protection term to remedy delays in the granting of marketing approval for pa tented 
pharmaceutical products. The unique Israeli PTE system is based on external linkages to PTEs or 
supplementary protection certificates (SPEs) in "Reference Countries" and calculates the period of 
Israeli PTEs in such a manner that they expire either before, or coterminous with, the earliest -
expiring reference patent term extension in any of the reference countries, thus ensuring that 
generic companies will usually be among the first permitted to begin producing the now off -patent 
product for the Israe li market once all other legal prohibitions have terminated. As agreed with the 
U.S. in 2010, amendment No. 11 reduced the number of reference countries from 21 to 6 
countries and introduced the early examination of a PTE application even if the reference 
extensions under the "two state requirement" have not yet been granted in the reference WT/TPR/M/376/Add.1  
 
- 87 - 
 
  countries. In addition, in order to increase the certainty for the Israeli market and for public health 
policy makers, the amendment also tightens the timeline for PTE examination procedures. PTEs 
automatically expire when a reference patent is revoked, or a PTE or SPC for a reference patent is 
revoked or withdrawn in any of the reference countries.  
 
Question(s):  
3. Since 2014, how many requests for patent term extension  for pharmaceutical products have 
been approved? And how many cases of patent term extension have automatically expired in 
Israel because of revocation or withdrawal of patent term extension for pharmaceutical products in 
any of the reference countries?   
 
Answer : Betwe en January 2014 to April 2018, 58 extensions were granted. We do not 
have the data readily available for the second question.  
 
IV. TRADE POLICIES BY SECTORS  
4.2 Mining and energy  
4.2.2  Natural gas and oil  
Page 83 (Para 4.45)  
 
Israel Natural Gas Lines Ltd. (a state -owned enterprise) holds a licence to operate and develop the 
natural gas transmission system. The regional distribution networks are operated by the private 
sector; distribution licenses are issued by public tender. T o encourage a competitive domestic 
market for natural gas, the Natural Gas Authority requires the national and regional licenses to 
provide open access without discrimination to all consumers and marketers of natural gas. Service 
fees for infrastructure se rvices (transmission and distribution) require approval from the regulator; 
consumer prices of n atural gas are not regulated.  
 
Question(s):  
1. Could Israel provide further information concerning how foreign participation/investments 
are regulated in the na tural gas distribution sector?  
 
Answer:  Foreign companies are allowed to invest in the companies that hold existing 
licenses for natural gas distribution. These are private companies that  have the 
possibility to raise funds through stocks issuance or through private investments.  
 
IV. TRADE POLICIES BY SECTORS  
4.2 Mining and energy  
4.2.3  Electricity  
Page 84 (Para 4.50) 
 
The Government pursues the objective of fostering a competitive market structure in electricity 
generation, while maintaining a natura l monopoly in transmission, and regional monopolies in 
distribution. Reforms of the electricity market have been implemented to end the monopoly of the 
Israel Electric Corporation (IEC), mainly through the licensing of independent power producers. 
The shar e of electricity generated by IPPs (three at present) has increased substantially in recent 
years (Table 4.10).  
 
Question(s):  
5. Would Israel elaborate on the measures taken to end the monopoly of the Israel Electricity 
Corporation in addition to the licensing of independent power producers ? 
 
Answer:  The reform of the electricity sector includes 3 major elements:  
 
1. Establishment of a new independent system operator to replace the current SO 
 unit in IEC, as a separate government owned company, starting December 2019  
2. Reduction of IEC's market share in the production segment by privatizing 5 
 production sites with total capacity of 4500 MW, over a period of 60 months, 
 starting December 2019  
3. Introduction of competition in the retail segment to households - this measure is 
 still pending final approval of the Knesset  
 WT/TPR/M/376/Add.1  
 
- 88 - 
 
  6. Are foreign investments allowed to enter the IPP business of Israel? If yes, are there any 
regulations on the investment  ceiling or ratio?  
 
Answer:  Foreign companies are allowed to invest in  the IPP market in Israel and there 
are no specific regulations regarding this market at this point.  
 
PART II: REGARDING THE GOVERNMENT REPORT  (WT/TPR/G/ 376) 
 
5 ISRAEL’S TRADE POLICY  
5.3 WTO 
Page 1 7 (Para 5.5) 
 
Israel is a founding and active member of the WTO. Israel strongly supports the fundamental  
principles and norms of the WTO rules based system, i.e., non -discrimination; transparency;  
consensus based decision -making; promoting competitiveness and free trade through discouraging  
unfair trade practices and progressive liberalization; and special and differential treatment for  
developing countries and LDC’s. Israel believes that full observance of the above -mentioned  
principles and norms is imperative for the goals of the WTO to be attained for the benefi t of all. As  
such, they should be respected by all existing WTO Members and future acceding countries. This is  
why Israel reaffirms its full commitment to uphold the WTO agreements and its preeminent role in  
advancing trade liberalization and promoting economic growth. Nevertheless, Israel also  
acknowledges the reality and the need to find new approaches to advancing trade liberalization  
and promoting economic growth.  
 
Question(s):  
7. We cordially urge your Government can add us to the recognized countri es list in cosmetic 
reform, make our cosmetic products can equal access to your market.  
 
Answer:  We took note of your request.  
 
  WT/TPR/M/376/Add.1  
 
- 89 - 
 
  REPUBLIC OF KOREA  
 
2. Trade and Investment Regime  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
 
According to  Para 2.8 of the Secretariat Report , during the review period, Israel has maintained 
and expanded its FTA networks.  
 
(1) Korea would like to know about the Israel’s master plan on FTA.  
 
Answer:  As both reports state, Israel is curre ntly negotiating several FTA's which take 
up all of our resources. We are now in a process of re -evaluating our plans with the aim 
of establishing new prioritizati on for future negotiations.  
 
(2) Korea would like to know main results of the recently conclu ded or updated FTAs with 
Colombia, Panama, Canada and EFTA.  
 
Answer:  From Israel's perspective the above mentioned agreements (Colombia and 
Panama new and Canada revised) are all more modern compared to the agreements 
Israel signed before 2013, and in some  cases include separate chapters on areas not 
covered in detail, in Israel's previous agreements. For example, all three agreements 
have TBT and SPS chapters and both agreements with Colombia and Panama include 
chapters on services and investment protectio n.  The Agreement with Canada goes 
further to include chapters on trade and environment/labour/gender.  
 
The EFTA update r elates to further market access  for agricul ture and food products only.  
 
3. Trade Policies and Practices By Measure  
3.3 Measures Affecting Production and Trade  
 
Would you share Israeli government’s efforts in re moving the non -tariff barriers  in order to 
observe the international trade norms and also recent examples or best practices that the Israeli 
government endeavo ured to elimina te the non -tariff barriers?  
 
Answer: The Israeli government is constantly reviewing its policies and acts to eliminate 
unnecessary regulat ions as well as trade barriers.  
 
Some examples of these measures are:  
 
• A government resolution on Reducing the Regulat ory Burden and Regulatory Impact 
Assessment (RIA) - The annual plan of each ministry should achieve 25% reduction 
in the aggregate administrative costs of the regulators, so that at the end of the five 
years, 25% of the overall administrative costs will be reduced.  
 
• Steps have been taken to align all of Israel's technical standards to international 
standards. Over 2016 -17, various government resolutions were adopted regarding 
standards, including Amendments Nos. 12 and 13 to the Standards Law of 1953. The 
amendments require the adoption of international and regional standards in place of 
Israeli standards that have no national deviations, and also set out timetables for a 
three -year re -evaluation of all mandatory standards, by August 2019. Food 
standards, for  example, are undergoing a gradual revision under the existing food 
standards committees, with the purpose of bringing them closer to existing 
international standards such as those of the Codex Alimentarius.  
 
• A reform in the Israeli standards and in the St andards Institution of Israel (SII)  -
The government has been working for some time to reform aspects of Israel's 
standardization system. This includes an ongoing effort to adopt international 
standards, and to base checks of conformity assessment on a risk based analysis. In 
addition, the go vernment has withdrawn the exclusivity of performing product 
testing granted in the past by law only to the Standards Institution of Israel (SII). 
SII is the country's national standards body. Its Standardization Division WT/TPR/M/376/Add.1  
 
- 90 - 
 
  coordinates the preparation of Isr aeli standards through technical committees, 
comprised representatives from all sectors of the Israeli economy and society (as 
appropriate). The product testing laboratories carry out testing of domestic and 
imported products for compliance with the releva nt Israeli mandatory standards. 
The reform passed in December 2016, contains several fundamental measures that 
aim to reduce the cost of imported goods, provide better and quicker service to 
importers and encourage greater participation of small and medium  size enterprises 
in standardization process by ensuring equal representation for all sectors of the 
economy.  
•  
The two main structural changes are:  
 
- Eliminating the monopoly of the SII in testing imported goods by opening the 
market for competition to othe r recognized, private, independent laboratories.  
 
- Revision in the composition and budget resources of SII in the area of the 
technical committees. The expectation is that the change will enable wider 
representation of different stakeholders and will encour age the committees to 
adopt international standards that do not include any national deviations.  
 
3. Trade Policies a nd Practices by Measure  
3.2 Measures Directly Affecting Exports  
3.2.3 Export prohibitions, restrictions, and licensing  
3.2.2 -3.14 of the Government Report  
 
Regarding the medical devices, SII has made agreements with approval bodies such as CSA, UL, 
ETL and TUV which are all American or European entities. In the process of signing agreements 
between SII and European or American authorities, would you explain whether there are specific 
reasons for signing agreements only with Europeans or Americans?  
 
Answer:  The SII decision on mutual recognition agreements is mostly a business 
decision based, inter alia , on the structure of Israel's foreign trade. Naturally, the SII 
would prefer laboratories that are present in more than one market. It should be noted 
that the majority of mandatory Israeli standards that serve as the basis for determining 
the conformity of goods are an adoption of internation al and regional standards, 
including ISO, IEC, CENELEC, NSF, EN and others.  The laboratories with which SII signs 
mutual recognition agreements conduct their examinations and tests according to these 
same standards. The SII would be willing to consider pr oposals from additional 
laboratories a ll over the world.  
  WT/TPR/M/376/Add.1  
 
- 91 - 
 
  THAILAND  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
3.1.3.2 Bound tariffs  
 
3.21. A full comparison between MFN applied and bound rates was not possible; some 13% of 
tariff lines could not  be compared, mainly due to changes in HS nomenclature and in the structure 
of the tariff schedule. On this basis, MFN applied rates exceeded their bound levels for 18 tariff 
lines; for some products the gap is 12  percentage points (Table 3.6).  
 
Question 1 : 
As MFN applied rates exceeded their bound levels for 18 tariff lines on products such as parts and 
accessories of machines, we request that Israel provide justification and clarification on this 
matter.  
 
Answer:  We are currently reviewing these items and will make the necessary 
adjustments as soon as possible.  
 
3.3.3 Sanitary and phytosanitary requirements  
 
3.92. Israel has made a total of 13 notifications (including revisions, addenda, and corrigenda) to 
the WTO  on SPS measures, most recently in 2011 on the approximation with OIE guidelines 
relating to BSE on the importation of live animals and animal products.61 Four specific trade 
concerns have been raised about SPS measures taken by Israel, all of which have b een 
resolved.62 In addition to notifications of SPS measures, some of the notifications on technical 
barriers to trade are concerned with protection of human health or safety, protection of animal or 
plant life or health, or protection of the environment. From 1 January 2012 to 31 December 2017, 
60 such notifications were made (including revisions, addenda, and corrigenda) about products 
under HS headings 1 to 24 (all for food and beverages, except for one notification on tobacco 
products). Some of these no tifications may include references to SPS measures.  
 
Question 2:  
As Israel has not made a notification on SPS measures since 2011 although some of the TBT 
notifications submitted since then may include references to SPS -related issues. Thailand would 
like to seek clarification whether measures with reference to the SPS matters could also be notified 
to the SPS Committee.  
 
Answer:  During the preparation of the Secretariat Report we have been made aware 
that some TBT notifications may, in fact, be more relevant to the SPS mechanism. We 
thank the Secretariat and Members for drawing our attention to that possibility. We plan 
to look i nto the matter. Any Member that has an interest in a particular TBT notification 
is invited to indicate it to us.  
  WT/TPR/M/376/Add.1  
 
- 92 - 
 
  PHILIPPINES  
 
GOVERNMENT REPORT (WT/TPR/G/376)  
1.3 Israel’s Monetary Policy  
 
Para 1.19 (Page 9)  
 
Since November 2015 the Bank of Israel has also provided forward policy guidance to influence 
investor expectations: this accommodative policy is thus expected to be maintained as long as 
necessary to entrench inflation within the 1 -3% target range. Although shorter -term inflation 
expectations are below 1%, they are well anchored to the target beyond this horizon, indicating 
monetary policy credibility.  
 
Please provide further detail s (i.e. website to obtain list and description of policy guidance, 
government monitoring) on this policy guidance.  
 
Answer:  The BOI regularly publishes its quarterly and annual reports and publications 
regarding policy and future forecasts. The information is published on the BOI’s website:  
 
http://www.boi.org.il/en/NewsAndPublications/RegularPublications/Pages/Default.aspx  
 
GOVERNMENT REPORT (WT/TPR/G/376)  
Foreign Investment  
 
Para 2.3 (Page 10)  
 
Economy -wide investment is primarily affected by the long -term real interest rate and the 
economy’s risk premium. An increase in investment is the key to sustainable growth as well as the 
continued decline in the rate of unemployment. In light of the falli ng interest rate over the past ten 
years and the decline in the country’s risk premium, foreign investment in the Israeli economy 
amounted to a total of $104.1 billion in 2015, up from $93.3 billion and $88.2 billion in 2014 and 
2013 respectively. Israel's  assets abroad grew by about $9.7 billion in 2015, to a total of $89.4 
billion.  
 
What are the monetary policies that the Israel government has undertaken to combat the falling 
interest rate?  
 
Answer:  During the past 10 years the interest rate in Israel was  affected by the lowering 
of interest rates around the world as a result of the 2008 economic crisis, therefore the 
monetary policy was adapted accordingly.  
 
All reports, including the protocols and decisions taken by the Monetary Committee as 
well as a semi -annual monetary policy report and a detailed annual report (Bank of 
Israel Annual Report) are published on the BOI's website:  
 
http://www.boi.org.il/en /NewsAndPublications/RegularPublications/Pages/Default.aspx  
 
GOVERNMENT REPORT (WT/TPR/S/376)  
 
4.1 Research and Development  
 
Para 4.8 (Page 15)  
The Growth Division operates a wide range of incentive programs that promote technological 
innovation of mature and growth companies. This division contributes to the promotion and 
preservation of competitiveness and technological leadership of companies, as well as the increase 
of their growth rates and potential.  
 
Please provide further details on the incentive pr ograms being operated by the Growth Division.  
 
Answer:  The incentive programs for R&D under the Growth Division (as well as other 
divisions) are detailed in Table 3.12 (Page 42) in the Secretariat Report. Additional 
information is also available on the Isr ael I nnovation Authority's website:  WT/TPR/M/376/Add.1  
 
- 93 - 
 
  www.matimop.org.il/divisions.html  
 
GOVERNMENT REPORT (WT/TPR/S/376)  
 
4.1 Research and Development  
 
Para 4.9 (Page 15)  
 
The Technological Infrastructure Division focuses on collaboration between industry and academia 
to produce advanced technologies and innovative products. The incentive programs offered by this 
division promote cooperation, exchange of knowledge and experience, and development of generic 
ground -breaking knowledge by an integrated group of researchers from  academia and industry. 
These incentive programs seek to strengthen the long -term technological advantages of Israeli 
industry in the face of fi erce international competition.  
 
Please provide further details on concretizing the collaboration between industry and academia to 
produce advanced technologies and innovative products.  
 
Answer:  The Technological Infrastructure Division targets potential companies and 
institutions in order to create effective partnerships. The focus is mainly on:  
 
• University researchers interested in transforming their discoveries into products  
• Academic research institutions looking for new and practical research directions 
 for the industry  
• Industrial corporations interested in developing innovative products  
 
The programs off ered by the division are detailed in Table 3.12 (Page 42) in the 
Secretariat Report. Additional information is also available on the Israel I nnovation 
Authority's website:  
www.matimop.org.il/divisions.html  
 
GOVERNMENT REPORT (WT/TPR/S/376)  
 
4.1 Research an d Development  
 
Para 4.10 (Page 15)  
 
The Advanced Manufacturing Division focuses on promoting the implementation of R&D and 
innovation processes in companies in the manufacturing sector, in order to strengthen their 
competitiveness in the global arena and i mprove productivity across a variety of industrial sectors. 
The programs offered by this division aim to boost manufacturing -oriented industries and 
encourage the owners of mainly small and medium sized factories to develop products, 
technologies and manuf acturing processes to realize these goals.  
 
Please provide further details on the programs offered by the Advanced Manufacturing Division.  
 
Answer:  The incentive programs for R&D under the Advanced Manufacturing Divisio n (as 
well as other divisions) are detailed in Table 3.12 (Page 42) in the Secretariat Report. 
Additional information is also available on the Israel I nnovation Authority's website:  
www.matimop.org.il/divisions.html  
 
GOVERNMENT REPORT (WT/TPR/S/376)  
 
4.3 Digital Health  
 
Para 4.15 (Page 16)  
 
For the last three years Israel has been building a comprehensive digital health infrastructure, 
positioning its public health system in the front of the new data -driven medical world. The goal is 
to enable the system to cope successfully with the challen ges that health systems face worldwide: WT/TPR/M/376/Add.1  
 
- 94 - 
 
  aging population, overcoming chronic diseases, an unhealthy lifestyle etc., all of which puts the 
health care system under growing pressure.  
 
What are the challenges the government face in the implementation of Israe l’s national digital 
health initiative? How does the government address these challenges?  
 
When is the timeline of implementation of this initiative?  
 
Answer:  There are numerous challenges in the development and implementation stages 
of the Digital Health  Solution life cycle. These include, among others: appropriate 
regulations, the promotion of human capital development required to advance the field, 
increased access to qualitative data for research and development purposes, promoting 
academic research an d research infrastructure, supporting R&D processes in 
cooperation with health organizations, the business sector and academia, and 
encouraging marketing and assimilation activities of digital health solutions developed 
in Israel, both in Israel and worldw ide. 
 
As part of the plan, following the conclusions of the Committee for Secondary Uses of 
Health Information published by the Ministry of Health, regulations regarding secondary 
uses of data collected in the Israeli health system will be implemented. The  regulation is 
intended to enable the realization of the potential inherent in the data, while at the 
same time, ensuring the protection of patients' rights – primarily the right to privacy 
and medical confidentiality. The regulation will ensure that the u se is authorized and 
performed under strict medical, research and profession al ethics.  
 
In addition, in order to promote the activity in the field of personalized medicine in 
Israel, the Ministry of Health plans to streamline the process required for the a pproval 
of research in the field of genetic information, while maintaining the principles of 
medical and research ethics, and safeguarding patients' rights.  
 
The launching and developing of the progr am started in 2015 for 5 years.  
 
GOVERNMENT REPORT (WT/TP R/S/376)  
 
5.4 Bilateral Trade Agreements  
 
Para 5.12 (Page 19)  
 
As customs duties are declining, Israel is looking for ways to remove non -tariff barriers as well. To 
that end Israel has concluded varied types of Mutual Recognition Agreements with the EU (a 
framework agreement with an Annex on pharmaceuticals), and with Canada (on telecom 
equipment). A similar agreement on telecom was signed with the U.S.  
 
Please provide further information on the initiative  to remove non -tariff barriers.  
What are Israel’s pr iority goods/products?  
 
Answer:  The Israeli government is constantly reviewing its policies and acts to eliminate 
unnecessary regulations as well as trade barriers.  
 
Some examples to these measures are:  
• A government resolution on Reducing the Regulatory Burden and Regulatory 
 Impact Assessment (RIA)  - The annual plan of each ministry should achieve 25% 
 reduction in the aggregate administrative costs of the regulators, so that at the 
 end of the five year s, 25% of the overall administrative costs will be reduced.  
 
• Steps have been taken to align all of Israel's technical standards to international 
 standards. Over 2016 -17, various government resolutions were adopted regarding 
 standards, including Amendment s Nos. 12 and 13 to the Standards Law of 1953. 
 The amendments require the adoption of international and regional standards in 
 place of Israeli standards that have no national deviations, and also set out 
 timetables for a three -year re -evaluation of all mandatory standards, by August 
 2019. Food standards, for example, are undergoing a gradual revision under the WT/TPR/M/376/Add.1  
 
- 95 - 
 
   existing food standards committees, with the purpose of bringing them closer to 
 existing international standards such as those of the Codex Ali mentarius.  
 
• A reform in the Israeli standards and in the Standards Institution of Israel (SII) -
 The government has been working for some time to reform aspects of Israel's 
 standardization system. This includes an ongoing effort to adopt international 
 standards, and to base checks of conformity assessment on a risk based analysis. 
 In addition, the government has withdrawn the exclusivity of performing product 
 testing granted in the past by law only to the Standards Institution of Israel (SII). 
 SII is  the country's national standards body. Its Standardization Division 
 coordinates the preparation of Israeli standards through technical committees, 
 comprised representatives from all sectors of the Israeli economy and society (as 
 appropriate). The produ ct testing laboratories carry out testing of domestic and 
 imported products for compliance with the relevant Israeli mandatory standard, 
 The reform passed in December 2016, contains several fundamental measures that 
 aim to reduce the cost of imported go ods, provide better and quicker service to 
 importers and encourage greater participation of small and medium size 
 enterprises in standardization process by ensuring equal representation for all 
 sectors of the economy.  
 
The two main structural changes ar e: 
 
- Eliminating the monopoly of the SII in testing imported goods by opening the 
 market for competition to other recognized, private, independent laboratories.  
 
- Revision in the composition and budget resources of SII in the area of the 
 technical committees. The expectation is that the change will enable wider 
 representation of different stakeholders and will encourage the committees to 
 adopt international standards that do not include any national deviations.  
 
Regarding priority produc ts, in general, when negotiating G to G mutual recognition 
agreements Israel is looking at products which are important to its exports as well as its 
imports. Telecommunications and pharmaceuticals are two good examples. Medical 
devices or cosmetics could be priority as well, taking into account other policy 
considerations.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
 
Para 1.2 (Page 10)  
 
The year 2013 marks a milestone for Israel's energy security, as major dome stic supplies of 
natural gas came on -stream from the Tamar field in the Israeli EEZ. The natural gas is mainly used 
for electricity generation and has led to a significant decline in fuel imports. Also, the discovery of 
the Tamar reservoir and the far larg er Leviathan gas field in the Mediterranean Sea (not yet in 
production) is transforming Israel from an importer into a (net) exporter of natural gas. The 
impact on economic growth has been limited so far but according to the authorities is expected to 
become more significant in the coming years as export oppo rtunities begin to be realized.  
 
Please indicate Israel’s export markets for natural gas.  
 
How significant is the export of natural gas to total energy exports of Israel?  
 
Answer:  As of now, three permits to export gas from Israel have been granted: (1) An 
export permit from the Tamar reservoir to the Jordanian Dead Sea plants for 15 years  
(export began in 2017). (2) A permit for “Dolphinus” to export gas from the Tamar 
reservoir to the Egyptian dom estic market for 7 years. (3) An export permit from the 
Leviathan reservoir to the Jordanian Electric Compa ny for the Jordanian domestic 
market. This per mit is for 15 years  and started  this year.  
 
 WT/TPR/M/376/Add.1  
 
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  Israel -Cyprus -Greece -Italy pipeline – The East Med Pipeline  
 
A pipeline which will allow the export of natural gas found in Israel and Cyprus’s 
economic waters to Europe. The pipeline is designed for a capacity of 10 BCM of natural 
gas per year, with an option to double the capacity.  
 
The exports of natur al gas are expected to increase during the next few years. At this 
point there is no substantial export of natural gas nor of othe r energy products from 
Israel.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
 
1. ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
 
Para 1.16 (Page 14)  
 
Furthermore, Israel has launched a five -year initiative (2015 -19) to reduce the regulatory burden 
and cut administrative costs. Regulatory impact analysis (RIA) became mandatory in January 
2016. Steps have also been taken to reduce the  regulatory burden for imports of "non - sensitive" 
food items and spare car parts and to align all of Israel's technical standards to international 
standards by August 2019.  
 
How effective has the mandatory conduct of RIA been in addressing regulatory burd en and  
reducing administrative costs?  
 
Answer:  The first five year stage of the program to reduce regulatory burden and 
administrative costs is expected to end in 2019 after which the government plans to 
review the results of the initiative and the level of success compared to the goal of 
reducing ove rall administrative costs by 25%.  
 
SECRETARIAT REPORT  (WT/TPR/S/376)  
 
2.4 Investment Regime  
 
Para. 2.20 (Page 23)  
 
Israel does not have a foreign investment law. There is no special approval or screening process 
for investments by foreigners, according to the authorities. Establishment is governed by the 
Companies Law of 1999. Companies must register with the Registrar of Companies (within a 
month of establishment), the Israel Tax Authority, and the National Insurance Institute. 
Registration of a business i n Israel takes about 12 days, according to the World Bank.14 Israel 
ranked 54th out of 190 countries in the World Bank's ease of doing business indicator for 2018 
(down from 34th place in 2012).15 Nevertheless, Israel performed better in individual measure s 
comprising the ease of doing business index, such as "protecting minority investors" (ranked 
16th), "resolving insolvency" (ranked 29th) and "starting a business" (ranked 37th). In July 2017, 
the Government established a committee for the improvement of the business environment in 
Israel.  
 
Are there any plans to create a law for foreign investments in the future?  What are the areas for 
improvement envisaged by the newly -established committee?  
 
Answer:  Historically, Israel has always been open to foreign investments and the need 
to distinguish between foreign and local investors has not arisen. Israel does maintain 
certain sectorial laws and regulations (see table 2.3 in page 24 of the Secretariat Report ( 
Some of the areas for improvement that were examine d by the committee are:  
 
• The absence of one defined authority in the government which is responsible for 
improving the business environment, and which could set strategic targets and 
draft plans to achieve them  WT/TPR/M/376/Add.1  
 
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  • Different levels of technological capabilities, infrastructure and accessibility of 
services between different government ministries  
• Lack of mechanisms for regular government -business sector dialogues  
Insufficient data and ongoing measurements of governmental activities with, and 
for the b usiness sector.  
SECRETARIAT REPORT  (WT/TPR/S/376)  
 
2.4 Investment Regime  
 
Para. 2.20 (Page 23)  
 
Israel maintains foreign -ownership restrictions in a few sectors, including air and maritime 
transport, telecommunications and broadcasting, and energy, mainly for public interest and energy 
security reasons (Table 2.3). Under the GATS, Israel has scheduled foreign -ownership limitations 
on international fixed telecommunications services (74% foreign equity cap) and wireless 
telecommunications services (80% foreig n equity cap).16 In certain sectors, Israeli law imposes 
nationality and residency requirements on members of boards of directors and other personnel, 
involving in some cases security clearance and approval by the regulator (Israeli airlines; 
electricity g eneration, transmission, and distribution; natural gas operations; domestic fixed line, 
radio, mobile, and international telecommunications services; television, radio, satellite, and cable 
broadcasting; and defence corporations).  
 
Are there plans to remov e these restrictions?   
 
Answer:  There are no specific plans to remove these restrictions, however Israel is 
constantly seeking different ways to promote competition and reviews specific sectors 
taking into account its domestic needs.  
 
SECRETARIAT REPORT ( WT/TPR/S/376)  
 
2.4 Investment Regime  
 
Para 2.22 (Page 24)  
 
Private ownership of land is much lower than in many other countries (about 7% of the total area). 
Foreign -owned companies are entitled to own or lease land (for 49 or 98 years), subject to prior 
approval by the Ministry of Housing and Construction through the Israel Land Authority. The Land 
Authority may agree to bestow or transfer rights of land to foreign -controlled companies once an 
advisory opinion has been received from the Minister of Foreign  Affairs and the Ministry of 
Defence.  
 
Are there any plans to allow foreign ownership of land? Under what circumstances is an advisory 
opinion from the Minister of Foreign Affairs and the Ministry of Defense  secured?  
 
Answer:  Most of the land in Israel is owned by the State of Israel and administered by 
the Israel Land's Authority. The transfer of ownership of these lands to private 
individuals, companies, cooperatives and other bodies is made by lease and not through 
sales.  
The lessee will be registered in the land registry as the owner of the property when the 
transfer of ownership is carried out in accordance with Israel La nd's Authority Law of 
1960 and Israel Land's Cou ncil decision (No. 1520) which specifies the ways and de tails 
of transferring such ownership.  
 
Foreigners may acquire rights in state owned land (by lease) subject to amendment No. 
3 of the Israel Land' s Law of 1960 which prohibits bestowing or transferring rights in 
state owned land to foreigners unless an approval has been given by the Chairperson of 
Israel's Land Council or the director of the Israel Land's Authority of Israel in 
accordance with the conditions set down in the law.  
 WT/TPR/M/376/Add.1  
 
- 98 - 
 
  A request for the bestowal or tra nsfer to a foreigner requiring approval from the 
Chairperson of the Land Council is transmitted to the Minister of Defence and to the 
Minister of Foreign Affairs for their advisory opinion. Council decision No. 1148 specifies 
the ways to transfer ownership of land to foreigners.  
 
SECRETARIAT REP ORT (WT/TPR/S/376)  
 
2.4 Investment Regime  
 
Para 2.23 (Page 24)  
 
The Foreign Investments and Industrial Cooperation Authority (formerly "Invest in Israel") under 
the Ministry of Economy and Industry is the Government's investment promotion arm for foreign 
investors. Eligible foreign or domestic investments in industrial projects benefit from assistance 
pursuant to the Law for the Encouragement of Capital Investment, which is managed by the 
Investments Authority at the Ministry of Economy and Industry. Variou s tax and non -tax 
incentives are available for research and development (R&D), including grants to launch joint R&D 
projects with Israeli entrepreneurs, or to encourage foreign multinational companies to establish 
financial R&D centres in Israel. Israel cu rrently has investment protection agreements with 37 
countries and double taxation treaties in force with 54 countries.  
 
Apart from incentives in R&D, are there other investment incentive packages that Israel grants to 
investors?  
 
Answer:  Yes, there are i ncentives for companies that do not have R&D projects. The Law 
on Encouragement of Capital Investment aims to encourage local and foreign capital 
investments and commercial entrepreneurship, particularly innovation and economic 
activities in disadvantaged areas. The support given under this programme is in the form 
of grants and/or reduced rates of taxation. Grants of up to 20% of the approved capital 
investment are given to approved enterprises located in disadvantaged areas. 
Incentives under this programm e are provided to globally competitive industrial 
companies, as well as companies in tourism (h otels) and real estate sectors.  
 
SECRETARIAT REPORT  (WT/TPR/S/376)  
 
3.1.3.2 Bound tariffs  
 
Para 3.22 (Page 33)  
 
Other duties and charges (ODCs) have been bound at zero on all products covered by tariff 
bindings. Over 90% of Israel's tariff bindings are in ad valorem terms; non -ad valorem tariff 
bindings exist mainly for certain fish and fishery products, textiles and textile articles, base metals, 
and machi nery a nd electrical equipment.  
 
What is Israel’s rationale for the non -ad valorem  bindings for fish and fishery products, textiles 
and textile articles, base metals, and machinery and electrical equipment?  
 
Answer : Unlike ad valorem  tariffs, the non -ad valorem tariffs are not affected by the 
value of the goods which simplifies tax collection, prevents offences such as price 
lowering (in order to pay less taxes unlawfully) and contributes to stability as the tax 
rate remains the same even when prices go up. Moreover, non -ad valorem bindings are 
more common in sensitive agricultural products.  
 
SECRETARIAT REPORT  (WT/TPR/S/376)  
 
3.3.1 Incentives  
 
Para 3.79 (Page 44)  
 
Government assistance to small - and medium -sized enterprises (SMEs) is coordinated by the 
Israel Small - and Medium -size Business Agency of the Ministry of Economy and Industry.52 About 
540,000 SMEs employ 60% of Israel's workforce in the business sector, and constitute about 99% WT/TPR/M/376/Add.1  
 
- 99 - 
 
  of all businesses in Israel.53 Loans with a gov ernment guarantee are provided to small firms with 
up to 100 employees or an annual turnover of up to NIS 100 million. The credit limit for a small 
business is NIS 500,000; for a medium -sized business is up to 8% of its annual turnover; and for 
businesses with exports of above US$250,000 is up to 12% of its annual turnover. The loan is 
given for a period of up to five years, with half a year grace. In 2016 -17, aid to SMEs amounted to 
approx imately NIS 2 billion annually.  
 
Please provide further information on how Israel provide s assistance to its SMEs.  
 
Answer:  The Small and Medium Business Agency is a unit within the Ministry of Economy 
and Industry. The aim of the agency is to assist owners and entrepreneurs of small 
businesses in establishing, managing  and expanding their business.  
 
The  Small and Medium Business Agency also established 39 SBDCs (Small Business 
Development Centres) named MAOF centres, which it finances and monitors.  These 
centres are meant to serve as a focal point for small businesses owne rs and for 
entrepreneurs th at are planning new businesses.  They are designed as "one -stop shop" 
for entrepreneurs' training.  
 
The agency can also provide guarantees for loans give n by commercial banks to SMEs.  
 
SECRETARIAT REPORT  (WT/TPR/S/376)  
 
3.3.2 Standards and other technical requirements  
 
Para 3.86 (Page 46)  
 
Most imports that are subject to technical requirements (as listed in Annex 2 of the Free Import 
Order, 2014 (Section 3.1.5) are inspected at the port of entry. Domestic products are subject to 
market inspection. Compliance testing, for both domestic and imported products, is generally 
carried out by one of the SII's laboratories or by a laboratory which holds an approval and/or 
recognition certificate from the Commissioner of Standardization to carry out the tests and issue a 
compliance certificate. Imports with an SII Standards Mark, certifying compliance with a certain 
standard, may enter Israel without being tested. As of 2017, 2,290 permits had been granted for 
marking products with a Stan dard Mark, to 863 companies, mainly domestic. The SII has also 
licensed 745 production processes. There is, however, no requirement that imported goods be 
supervised by the  SII and bear a Standards Mark.  
 
Please provide further information on the market in spection requirement/s for domestic products.  
 
Answer:  Domestic, as well as i mported, products, subject to  mandatory standards are 
subject to market inspection requirements. These inspections are carried out by 
inspectors of the Standards Administration of  the Ministry o f Economy and Industry both 
for imports and locally manufactured products.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
 
3.3.3 Sanitary and phytosanitary requirements  
Kosher certification  
 
Para 3.104 (Page 50)  
 
Except for meat products, there is no legal requirement for food products to have kosher 
certification, but it has been reported that it is often a practical market requirement as many 
hotels and shops do not stock non -kosher products. Under the Law for Prevention of Fraud in 
Kashrut (1983), t he Chief Rabbinate of Israel has exclusive competence over kosher certification 
and the recognition of kosher certifying bodies outside Israel.  
 
Please provide the kosher certification process for meat products.  
 
Please also provide the certifying bodies f or kosher outside Israel.  
 WT/TPR/M/376/Add.1  
 
- 100 - 
 
  Answer:  Regarding kosher certificates, the chief Rabbinate is the competent authority 
for the certificates. The Chief Rabbinate issues a list of rabbis located worldwide, whose 
certificates are recognized. The list is published on the  Chief Rabbinate’s website:  
https://www.gov.il/he/Departments/publications/reports/pirsum_yevu2  
 
Representatives of the Chief Rabbinate of Israel are authorized to ce rtify kosher meat 
slaughtering.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
 
3.3.4 Competition policy and price controls  
 
Para 3.109 (Page 51)  
 
At the end of 2013, the Knesset passed the Promotion of Competition and Reduction of 
Concentration Law, 5774 -2013.75 The Law limits firms' use of pyramidal control structures, which 
are particularly widespread and complex and have allowed a handful number of business groups to 
control a large proportion of the economy. Under the Law, these groups have until the end of 2018 
to reduce the maximum number of levels in these pyramids to two. This Law also restricts the 
control of major financial institutions by large non -financial enterprises. Such cross -ownership can 
distort competition between businesses, in that access to credi t depends on whether they belong 
to one of these groups. Moreover, the Law requires all government authorities to take competition 
considerations into account when granting licenses or franchises or selling assets which may affect 
market concentration and,  in certain cases, to consult with the IAA on the issue.  
 
Please provide an assessment of the law’s effectiveness in addressing pyramidal control structures.  
 
Answer:  According to a paper prepared by the research unit of the Tel Aviv Stock 
Exchange, the Co ncentration Law had wide influence on pyramidal control structures. 
For example 37 public companies which were held as 3rd or 4th layer companies were 
delisted and are no longer traded as public companies. According to the study there are 
still 24 public l ayer companies that should be delisted.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
3.3.7.2 Economic policy context  
 
Para 3.148 (Page 60)  
 
In 2016, the Israeli Tax Authority (ITA), submitted a draft amendment to the VAT Law that would 
require foreign suppliers of b usiness -to-consumer digital services to register and account for value 
added tax in Israel and would apply to telecommunication services and electronic services, 
including sales of intangible products, provided through the internet or other networks, inclu ding 
software sales or upgrades, entertainment products, gaming, music, digital books, gambling, TV 
programmes, movies, transfer of rights to sell intangible goods or services in an online store in 
exchange for consideration.  
 
Please provide updates on the status of the draft amendment to the VAT Law.  
 
Answer:  The draft legislation for VAT on digital services was published by the Israel Tax 
Authority and submitted for the approval of the  Minister of Finance. The draft has  not 
yet been approved.  
 
SECRETARIAT REPORT (WT/TPR/S/376)  
3.3.7.4.1 Patents  
 
Para 3.168 (Page 65)  
 
Despite its active generic pharmaceutical industry that could potentially benefit from the 
permission to export pharmaceuticals produced under compulsory licences, Israel has not yet 
implemented the WTO's Paragraph 6 System into domestic la w. 
 WT/TPR/M/376/Add.1  
 
- 101 - 
 
  Please provide the rationale for non -implementation of the WTO’s Paragr aph 6 System into 
domestic law.  
 
Are there any transitional measures being undertaken to allow or prepa re for domestic 
implementation?  
 
Answer: To date, domestic stakeholder interest in use of the "Paragraph 6 System" has 
been minimal, however, the government reserves the right to implement the "Paragraph 
6 System" in the future.  
 
SECRETARIAT REPORT  (WT/TPR/S/376)  
4.1.1 Agriculture  
4.1.1.3.1 Trade Policies  
Export Subsidies  
 
Para 4.18 (Page 75)  
Up to the end of 2016, Israel used export subsidies for a limited range of products, mainly for non -
citrus fruits and for vegetables. During the period 2007-16, the budgetary outlay for export 
subsidies varied from zero for the year ending 30 September 2007 to US$2 million for the year 
ending 30 September 2011 (Table 4.4). Israel has stated that, as of 1 January 2023, export 
subsidies will no longer be gr anted.  
 
Could Israel explain its plan and timeline on the elimination of export subsidies for agricultural 
products?  
 
Answer : Israel will fully comply with WTO document G/MA/TAR/RS/511. However, 
Israel reserves the right to gradually prepare for a complete  phase out of its currently 
low export subsidies by January 1st 2023.  
 
Most of the support to agricultural exports  will be allocated to marketing promotion 
programs.  
 
  WT/TPR/M/376/Add.1  
 
- 102 - 
 
  TURKEY  
 
THE GOVERNMENT REPORT  
 
1. The Israeli Economy: Recent Developments, 1.1 Main developments, pg. 3, 1.3  
 
It is stated in the Government Report that “Since 1990s, Israel’s fiscal and monetary policies have 
been formulated and coordinated with the overarching goals of enhancing economic growth, 
reducing tax burden, narrowing the Govern ment’s fiscal deficit, and maintaining low levels of 
inflation. The efforts made by the Government to reduce the cost of living in Israel have also 
influenced the rate of inflation (year -end compared to previous year end), which stood at 0.4% in 
2014, -1.0% in 2015, -0.2% in 2016 and 0.1% in 2017”  
 
1. The Israeli Economy: Recent Developments, 1.3 Israel’s Monetary Policy, pg. 9, 1.19  
 
It is also stated in the Government Report that “ In recent years the Bank of Israel is maintaining a 
very accommodative pol icy, keeping its official interest rate at a historically low level of 0.1% since 
March 2015. The authorities also intervene in the foreign exchange market to limit fluctuations and 
excessive appreciation that would result from the extraordinarily accommod ative monetary policy 
settings by the world’s major central banks. These interventions come on top of currency purchase 
to offset the exchange -rate pressures from expanded natural gas production. The result of 
persistent intervention is that the Bank of Is rael has foreign -currency reserves of US$118 billion 
(34.5% of GDP), one of the highest GDP shares amongst developed countries. Since November 
2015 the Bank of Israel has also provided forward policy guidance to influence investor 
expectations: this accomm odative policy is thus expected to be maintained as long as necessary to 
entrench inflation within the 1 -3% target range. Although shorter -term inflation expectations are 
below 1%, they are well anchored to the target beyond this horizon, indicating  moneta ry policy 
credibility.”  
 
Question: Could Israel further explain the recent fiscal policy instruments? How did the Israeli 
Government implement a consistent fiscal policy with its accommodative monetary policy to 
achieve the target inflation rate?  
 
Answer:  The government pursues an active policy to reduce the cost of living and 
enhance competition by removing regulatory constraints e.g. on international air -travel 
and facilitating imports. Some of these efforts have resulted in the reduction of prices 
and t hus also affected the inflation rate. The monetary framework is of a "flexible 
inflation target", therefore, and accord ing to the Bank of Israel Law, the monetary 
policy's aim is to maintain pri ce stability as defined by the inflation target. Monetary 
policy takes the government intervention in the level of prices as a given when using its 
various instruments to bring i nflation into the target range.  
 
1. The Israeli Economy: Recent Developments, 1.2. Foreign trade, pg. 6, 1.11  
 
It is stated in the Government Report that “The composition of Israel’s trade in goods reflects the 
industrialized nature of its economy. In 2017, exports of goods consisted primarily (85%) of 
manufactured goods section (industry related), which includes t he dominant high -tech sector (see 
figure 8). This Industry related export grew by 3.3% in 2017. Raw materials and capital 
investment, including fuels and diamonds, comprised 80% of imported goods (see figure 8).”  
 
Question: Could Israel provide detailed in formation on the studies carried out in order to increase 
the share of high -tech sector in its exports?  
 
Answer:  The hi -tech industry is an important part of the Israeli economy. It contributes 
significantly to the industrial sector and is a major part of the services sector (that 
accounts for approximately 80% of GDP and 40% of total exports), therefore it is 
natural for the hi -tech industry to become a substantial part of Israel’s total exports. 
Since exports serve as an engine for economic growth, Israel  is always seeking ways to 
increase its exports in all sectors including traditional industries. We are not aware of 
any specific study aimed to increase the share of hi -tech exports in particular.  
 
4. Technological Innovation, 4.2 Israel NewTech, pg. 16, 4.13 WT/TPR/M/376/Add.1  
 
- 103 - 
 
  It is stated in the Government Report that “With the aim of responding to increasing global 
environmental challenges and the water shortage in Israel, the Government continued “Israel 
NewTech” national program, focused on water and renewable energy te chnologies respectively. 
This pioneering national program is led by the Ministry of Economy and Industry, and is supported 
by a number of additional government agencies. Israel NewTech helps to advance the water and 
sustainable energy sectors by supporting  academia and research, encouraging implementation of 
novel solutions in the local market, and promoting those solutions in the international arena.”  
 
Question: Could Israel elaborate on the infrastructure works that have been carried out for the 
solution of the water shortage and the renewable energy projects in the framework of the Israel 
NewTech national program?  
 
Answer : Israel NewTech is a focal point for eve ryone and everything that has to do with 
water and energy in Israel. As such, we are able to bring together all the relevant 
stakeholders, including companies, startups, investors, academy, government and 
others, in order to create a dialogue, solve possib le problems and advance Israeli 
innovation, in the local and international arenas. Our activity covers both the most basic 
levels, such as connecting a company and a potential customer, to G2G agreements and 
extensive activity in a variety of international  bodies such as the OECD and the World 
Bank.5. Israel’s Trade Policy, 5.1 Introduction, pg.17, 5.2  
 
It is stated in the Government Report that “The Israeli economy has undergone a substantial 
process of structural reforms, so that in a relatively short tim e the Israeli economy has developed 
into a liberalized market place, trading in a wide range of manufactured goods and services 
worldwide. Intense entrepreneurial activity became the hallmark of the business environment, 
attracting the attention of foreign  and local investors. The Israeli technological, research and 
knowledge based industries have gained worldwide recognition and have served as an engine for 
economic growth.”  
 
Question: Could Israel provide details on  the structural reforms that have been u ndergone and 
their results and the industries that have gained worldwide recognition?  
 
Answer : The Israeli technological, research and knowledge based industries have gained 
worldwide recognition as a result of their innovative products, solut ions and exce llent 
performance.  
 
One of the main conditions that contributed to the development of such successful 
industries was the development of a strong business driven innovation eco -system that 
also helps create a business environment which is conducive to entrepreneurship and 
favors risk - taking.  
 
In addition, throughout the years Israel has pursued numerous structural reforms and 
privatization initiatives, as well as tariff reductions and removing obstacles for opening 
its market. These steps also created a competitive environment for the development of 
these industries.  
 
5. Israel’s Trade Policy, 5.2 Trade policy, p.17, 5.3   
 
It is stated in the Government Report that “Israel's trade policy objectives are as follows:  
 
(1) Continued integration of the Israe li economy into the global trading system, through the use of 
policy instruments that relate to trade in goods, services, investment, competition, environment, 
intellectual property, and others.  
 
(2) Promote and maintain Israel's exports competitiveness by  expanding and updating the network 
of international agreements designed to promote trade, facilitate market access, eliminate non -
tariff barriers and encourage long term economic growth.  
 
(3) Increase the efficiency of resources' allocation, by enhancing reforms that aim at the 
introduction of greater competition and increased transparency in the domestic market and to 
support the Government’s initiatives to reduce the cost of living for the welfare of consumers.  
(4) Create an attractive climate for invest ors, business people, and consumers.”  WT/TPR/M/376/Add.1  
 
- 104 - 
 
  Question: Could Israel give detailed information regarding its trade policy objec tives (3) and (4) 
cited above?  
 
Answer:  Regarding enhancing efficiency and competition (3), please see section 3 
(starting on page 11) and in particular section 3.3 (starting on page 11) of the 
Government Report for detailed information on the important actions and reforms 
carried out in order to perus e the abovementioned objective.  
 
Regarding investments (4), in order to create an attrac tive climate for investors, 
business people, and consumers, Israel has always been open for foreign investments 
and there is no specific legislation in Israel at this point which requires the pre –
screening or approval of investments by foreigners in Israe l. It should also be noted that 
the Law on Encouragement of Capital Investment offers the same benefits for foreign 
investors as it does for domestic ones.  
 
5. Israel’s Trade Policy, 5.4 Bilateral trade agreements, pg.18, 5.9  
 
It is stated in the Governmen t Report that “Bilateral agreements have been an important pillar of 
Israel's trade policy. Bilateral initiatives are useful as a supplementary way of achieving substantial 
results more rapidly than would be possible at the multilateral level. They provide  a particularly 
effective alternative when they are conducted, as has been the case for Israel, with the country's 
main target markets. Israel’s bilateral trade agreements cover substantial, however decreasing 
portion of Israel’s international trade.”  
 
Question: Could Israel state whether it has an objective of entering into bilateral negotiations 
with its non -FTA partners due to their increasing share in Israel’s trade in the last years?  
 
Answer:  Israel is currently engaged in several negotiations with new partners with the 
aim to increase the number of free trade agreements and share of the trade covered by 
them.  
 
THE SECRETARIAT REPORT  
 
2. Trade and Investment Regimes, 2.3 Trade agreements and arrangements, 2.3.2 
Regional and preferential agreements, p g.20, 2.8  
 
It is stated in the Secretariat Report that  “Israel's network of FTAs remains unchanged, and covers 
Canada, EFTA, the European Union, Jordan, MERCOSUR, Mexico, Turkey and the United States. 
Since the last Review, Israel has concluded FTAs with Colombia (awaiting ratification) and Panama 
(not yet si gned), which are Israel's first FTAs covering trade in both goods and services, and 
investment. Furthermore, Israel has been engaged in free trade negotiations with China, the 
Republic of Korea, India, Ukraine, Vietnam, and the Eurasian Economic Union. The  FTA with 
Canada has been updated (awaiting signature and ratification) and the agricultural part of the FTA 
with EFTA has also been updated to provide for more liberal trade in this sector.  
 
Question: Could Israel provide information on services sectors t hat are liberalized in its FTAs with 
Colombia and Panama? Does Israel envisage to pursue a policy of liberalization in trade in servic es 
with its other FTA partners?  
 
Answer:  Israel’s policy is to pursue liberalization in sectors where competition can 
contribute to the reduction of the cost of living. Where possible, Israel discusses these 
sectors in its bilateral or multilateral trade negotiations. The FTAs with Colombia and 
Panama include commitments in service sectors that were liberalized, such as legal  
services, accounting and telecommunications.  
 
3. Trade Policies and Practices by Measure, 3.1 Measures directly affecting imports, 
3.1.3 Tariffs, 3.1.3.2 Bound tariffs, pg. 32, 3.21  
 
It is stated in the Secretariat Report that “A full comparison between MFN applied and bound rates 
kas not possible; some 13% of tariff lines could not be compared, mainly due to changes in HS 
nomenclature and in the structure of the tariff schedule. On this basis, MFN applied rates exceeded 
their bound levels for 18 tariff l ines; for some products the gap is 12 percentage points. ”  WT/TPR/M/376/Add.1  
 
- 105 - 
 
  Question: Could Israel specify since when the mentioned exceeding bound rates have been in 
force for each of the listed products? Is there any projection to make the applied duties in 
compliance with GATT Article II commitments? If so, could Israel elaborate on these projections?  
 
Answer:  We are currently reviewing these items and will make the necessary 
adjustments as soon as possible.  
 
4. Trade Polices by Sector, 4.2 Mining and energy, 4.2.3 Ele ctricity, pg. 84, 4.51  
 
It is stated in the Secretariat Report that “Israel has established targets for renewable energy 
generation for environmental reasons (Paris Agreement), with the share of renewables to rise from 
5% in 2014, to 10% by 2020 and 17% by  2030. However, the transition to renewable energy 
sources is behind target (3% of total energy generation in 2017). Renewable electricity generation 
is encouraged through production quotas set by the Electricity Authority, which are eligible for 
feed-in tariffs. The production quotas are tendered (auctioned), using public procurement 
procedures. For solar PV capacity, the auctions in 2017 and 2018 are for about 1.2 GW, with 
supply contracts for 23 years at guaranteed feed -in tariffs.”  
 
Question: Could Isr ael further explain its future projects in order to increase renewable energy 
generation within the framework of 2020 and 2030 targets (solar, wind etc.)?  
 
Answer:  An overview of Israel's renewable energy scheme is available in pages 19 -20 of 
the document in following link:  
 
http://www.medreg -regulators.org/Portals/_default/Skede/Allegati/Skeda4506 -233-
2018.3.9/RES_Benchmarking.pdf?IDUNI=ygbawh5lnnkutwk2j0z1k2yy8432  
 
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