Israel WT/TPR/S/272/Rev.1 
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III. TRADE POLICIES AND PRACTICES BY MEASURE  
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures and trade facilitation 
1. Israel has no importer registration requirements for customs-related purposes (Free Import 
Order, 2012).  However, importers must be register ed with the Israel Tax Authority for purposes of 
VAT and, in certain cases, purchase tax (Chapter III(1)(iii)(a)).  Food importers must register with the Food Control Service of the Ministry of Health  and carry an official importer certificate 
(Chapter III(1)(vii)). 
2. For customs clearance, the requisite documenta tion includes the import declaration (single 
administrative document);  commercial invoice;  bill of lading (or airway bill);  certificate of origin;  
packing list;  import licence (if required);  SPS-related import permit and/or certificate (if required).   
3. 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 Israel Customs 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 (MOITAL, Israel Standards Institute, and the Ministries of Health, Transport, and Energy 
and Water).  There are seven customs houses. 
4. Customs valuation is based on the transaction valu e, adjusted to reflect costs and services that 
are not already included in the purchase price (Customs Ordinance Amendment Law of 1997).
1  The 
Customs Authority of Israel provides an electr onic facility for advance rulings regarding the 
classification of goods.2 
5. About 85% of import consignments are released within one hour (Table III.1).  About 3% of 
shipments are subject to non-security-related inspec tion.  Inspection is based mainly on risk 
assessment (risk profiling), otherwise random selection.   Selection criteria include the origin of the 
goods (country, supplier), complaints regarding viola tion of intellectual property rights, and the past 
record of importers.  The Customs Authority has broad powers to seize and destroy counterfeit goods.  
Israel has no laws or regulations re garding pre-shipment inspection.   
6. In September 2010, Israel Customs began im plementing an authorized economic operator 
(AEO) scheme and is now in the process of ne gotiating AEO mutual recognition agreements with 
other countries.  Since 2010, Customs offers pre-clea rance for couriers (air shipments only).  Israel 
has been implementing the Container Secure In itiative (CSI) with the United States since 2007. 
7. Israel's customs appeals procedures are set out in the Customs Ordinance of 1957.  In cases of 
disagreement with the customs authorities, the impor ter must stipulate on the import declaration form 
that the disputed customs duties were paid under pr otest.  Appeals must first be made to the High 
Customs Authority and then to the courts; they may be lodged against any customs decision.   
                                                      
1 The costs and services include f ees and commissions (other than buyer commissions);  containers;  
packaging;  royalties and licence fees;  transportation to the ports;  loading, unloading, and handling;  and 
insurance.   
2 Israel Tax Authority online information.  Viewed at:  http://ozar.mof.gov.il/customs/eng/. WT/TPR/S/272/Rev.1 Trade Policy Review 
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Table III.1 
Customs clearance and release time, 2008-10 
 2008 2009 2010 
Total declarations submitted 1,366,321  1,294,084 1,425,421 
Cleared without examination (% of total) 83.3 82.8 85.2 
Cleared subject to limited examin ation (% of total) .. .. 5.3 
Cleared subject to detailed examination: documentary check and/or 
physical inspection (% of total) 10.7 11.0 9.5 
Cleared with physical inspection (% of total) 2.7 2.9 2.9 
Average clearance time (hours) 6:22 6:28 5:10 
Cleared without examination (hours) 0:55 0:50 0:55 
.. Not available. 
Source : Israel Customs Authority. 
(ii) Tariffs and tariff quotas 
(a) Bound tariffs 
8. About 75% of Israel's tariff lines are bound (Table III.2).  Bound rates are high for 
agricultural products, averaging 73.3% with a ma ximum rate of 560% (dates).  Other duties and 
charges (ODCs) have been bound at zero on all produc ts covered by tariffs bindings.  Over 90% of 
Israel's tariff bindings are in ad valorem  terms;  non-ad valorem  tariff bindings exist mainly for 
certain agricultural products, textiles and clothing, a nd fish and fishery products.  Israel has not yet 
transposed its Schedule of concessions from HS 1996 nomenclature, which makes a comparison with 
its applied MFN tariffs (HS 2012) difficult because of the difference in nomenclatures.  
Table III.2 
Overview of Israel's Uruguay Round tariff bindings 
(%) 
Average bound rate   22.1 
Average bound rate (agriculture) 73.3 
Average bound rate (non-agriculture) 11.4 
Binding coverage (at HS  6-digit level) 75.1 
Non- ad valorem  tariffs (at HS 6-digit level) 5.9 
Share of tariff bindings covered by agricultu ral tariff-quota commitments (at HS 6-digit 
level) 6.9 
Share of tariff bindings covered by agricultura l special safeguard (at HS 6-digit level) 4.6 
Note: HS 1996 nomenclature. 
Source : WTO Tariff Profiles. 
(b) Applied tariffs 
9. Israel's 2012 tariff has 8,505 tariff lines (at HS nine-digit level), including 566  
non-ad valorem  tariffs (Table III.3).  The non- ad valorem  tariffs comprise specific (137 lines), 
compound (55), and mixed (374) tariffs.  The Isr aeli authorities have provided AVEs to the WTO 
Secretariat, which are included in its tariff analysis (Tables III.3, III.4, AIII.1 and Chart III.1).3 
                                                      
3 For 1.9% of all tariff lines, AVEs are not available. Israel WT/TPR/S/272/Rev.1 
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Table III.3  
Structure of applied MFN tariffs, 2012 
(%) 
2012a 
Simple average tariff rate  7.0 
Agricultural products (WTO definition) 24.5 
Non-agricultural products (WTO definition) 4.2 
Agriculture, hunting, forestry and fishing (ISIC 1) 29.5 
Mining and quarrying (ISIC 2) 0.2 
Manufacturing (ISIC 3) 5.8 
Duty-free tariff lines (% of all tariff lines) 54.6 
Non- ad valorem  tariffs (% of all tariff lines) 6.7 
Non- ad valorem  tariffs with no AVEs (% of all tariff lines)b 1.9 
Simple average rate of dutiable lines only 15.8 
Domestic tariff "peaks" (% of all tariff lines)c 3.8 
International tariff "peaks" (% of all tariff lines)d 4.6 
"Nuisance" applied rates (% of all tariff lines)e 0.8 
 
a Ad valorem  equivalents (AVEs) using 2011 import data were provided by the Israeli authorities.   
b Some AVEs were not available, hence 1.9% of all lines have been omitted. 
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied rate. 
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%. 
 Note: The 2012 tariff is based on HS2012 nomenc lature consisting of 8,505 tariff lines (at 9-digit tariff line level).  All tar iff 
 calculations exclude in-quota tariffs.   
 
Source : WTO Secretariat calculations , based on data provided by  the Israeli authorities. 
10. Israel's applied MFN tariffs average 7% in 2012.  Over half of the tariff lines are duty free; 
some unilateral tariff elimination happened in July 2012 (Box I.1) which is not yet reflected in the 
tariff structure (Table III.3).  Over 95% of tariff lines are in the 0-20% range.  A comparison of 
Israel's average applied MFN tariff in 2012 with the average at the time of its last TPR in 2006 would 
be misleading because of the differences in nomenc lature and methodologies used in calculating the 
averages.   
11. The average applied MFN tariff on non-agricultura l products in relatively low (4.2%).  The 
maximum tariff is generally 12%, except for fish a nd fishery products (up to 55%) and textiles (up to 
14%).  On agricultural goods (WTO definition), th e MFN tariff averages 24.5%.  Tariff protection is 
particularly high on dairy products (with an averag e of 109.9%) and live animals and related products 
(with an average of 42.3%) (Table III.4).  Moreover,  many agricultural tariffs are fairly complex and 
non-transparent since they are compound or mixed duties.  WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 24 
  
Table III.4 
Tariff summary, 2012 
 Number of lines Average (%) Range (%) Share of 
duty-free 
lines (%) Share of 
non- ad 
valorem  
tariffs (%) 
Total 8,505 7.0 0-560 54.6 6.7 
HS 01-24 1,492 22.8 0-560 30.5 28.7 
HS 25-97 7,013 4.0 0-14 59.8 2.0 
By WTO category      
Agricultural products 1,231 24.5 0-560 32.3 24.2 
Animals and products thereof 157 42.3 0-190 28.0 36.3 
Dairy products 44 109.9 0-212 6.8 15.9 
Fruit, vegetables, and plants 375 35.1 0-560 16.3 35.7 
Coffee and tea 37 1.4 0-12 81.1 5.4 
Cereals and preparations 155 13.5 0-112 33.6 23.2 
Oils seeds, fats, oil and their products 148 6.6 0-54 39.9 11.5 
Sugars and confectionary 28 3.8 0-21 60.7 32.1 
Beverages, spirits and tob acco 117 15.3 0-51 23.9 23.1 
Cotton 5 0.0 0 100.0 0.0 
Other agricultural products, n.e.s. 165 4.8 0-105 60.0 5.5 
Non-agricultural products 7,274 4.2 0-55 58.4 3.7 
Fish and fishery products 332 8.2 0-55 34.3 40.1 
Minerals and metals 1,514 3.3 0-12 63.1 1.9 
Chemicals and photographic supp lies 1,034 1.6 0-12 83.0 0.0 
Wood, pulp, paper and furniture 327 3.7 0-12 66.1 0.0 
Textiles 1,069 5. 9 0-14 46.9 8.0 
Clothing 266 7.9 0-12 32.3 2.3 
Leather, rubber, footwear and travel goods 247 5.6 0-12 45.3 0.8 
Non-electric machinery 1,000 4.3 0-12 55.1 0.2 
Electric machinery 566 4.2 0-12 60.3 1.2 
Transport equipment 283 3.9 0-12 47.4 0.0 
Non-agricultural products, n.e.s. 609 3.9 0-12 58.6 0.8 
Petroleum 27 0.9 0-8 88.9 0.0 
By ISIC sector      
ISIC 1 - Agriculture, hunting and fishing 516 29.5 0-560 36.1 35.5 
ISIC 2 - Mining 98 0.2 0-12 98.0 0.0 
ISIC 3 - Manufacturing 7,891 5.8 0-212 55.3 4.9 
 
Note: Ad valorem  equivalents (AVEs) using 2011 import da ta were provided by the Israeli author ities.  However, some AVEs were not 
 available, hence around 1.9% of total lin es have been omitted.  All tariff calcu lations exclude in-quota lines.  The 2012 tari ff is 
 based on HS2012 nomenclature cons isting of 8,505 tariff lines (at nine-digit tariff line level).   
 
Source : WTO Secretariat calculati ons, based on data provided by the Israeli authorities.  
 Israel WT/TPR/S/272/Rev.1 
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(54.6)
(18.5)(21.1)
(1.1) (0.4) (0.5)(1.9)
0102030405060708090100
01,0002,0003,0004,0005,0006,0007,0008,0000 0-10 >10-20 >20-30 >30-40 >40-50 >50
Figures in parentheses indicate the share of total lines.  Calculations exclude in-quota rates.  They do not add to 
100% since some AVEs were not available (1.9% of all lines).  
WTO Secretariat calculations, based on data provided by the authorities.Chart III.1
Breakdown of applied MFN tariffs, 2012
Number of tariff lines
Note:
Source:Per cent
Number of lines 
Cumulated percentage (right-hand scale)
 
 
12. The last TPR of Israel identified 11 tariff lines where the applied MFN rates exceeded the 
corresponding bound rates.4  The applied rate of one of the tariffs concerned (HS Code 0709 5920 - 
truffles) is 10%, lower than the corresponding b ound rate.  The Secretariat has been unable to 
undertake an exhaustive analysis due to difference in HS nomenclatures.  Nonetheless, overall, a 
considerable gap exists between bound  and applied tariffs, particularly  agricultural products.  Thus, 
Israel has some latitude for increasing its appl ied tariffs, which imparts a certain degree of 
unpredictability to its trading regime.   
13. Fiscal revenues from the collection of customs duties amounted to NIS 2.7 billion in 2010 or 
1% of total tax revenues (Chart III.2). 
(c) Preferential tariffs 
14. Most of Israel's trade is conducted under va rious preferential agreements (Table II.1).5   
15. Within the framework of its trade agreements, Is rael applies preferential rules of origin, based 
on value-added criteria, or change in tariff head ing (Table II.1).  Israel does not maintain non-
preferential rules of origin.   
                                                      
4 WTO (2006), Table AIII.2. 
5 While the WTO Secretariat has received inform ation from the authorities regarding Israel's 
preferential tariffs, it has decided not to include this information for methodological reasons, which would make a comparison with applied MFN tariffs difficult and misleading. WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 26 
  
Income tax (NIS 37.9 bn, 19%)Chart III.2
Tax revenue distribution, 2010
Source:  Ministry of Finance, Israel Customs Directorate.Purchase tax on imports
(NIS 14.1 bn, 7%)Purchase tax-local products
(NIS 1.1 bn,1%)Fuel excise duty (NIS 14.6 bn, 7%)VAT (NIS 64 bn, 31%)
Payroll taxes (NIS 63.3 bn, 31%)
Customs duties (NIS 2.7 bn, 1%)Property tax (NIS 6.9 bn, 3%)
 
(d) Tariff quotas 
16. In its Schedule, Israel has tariff-quota commitm ents for 12 agricultural product groups.  Four 
of these quotas are currently not implemented, since th e applied tariffs are equal to or lower than the 
corresponding bound in-quota tariffs (Table AIV.1). 
17. Israel administers over 100 tariffs under its FTAs.  According to the authorities, the 
preferential tariff quotas remain the same as listed in the 2006 Review of Israel, with the exception of 
the tariff quotas open to the EU and the new tariff  quotas open to its MERCOSUR trading partners 
(Chapter II(3)(ii)).6  
(e) Duty concessions and exemptions  
18. Israel grants tariff concessions and exempti ons on commercial imports within the framework 
of several schemes (Table AIII.2). 
(iii) Other taxes and charges  
(a) Internal taxes 
19. Israel applies value-added tax (VAT) on im ported and domestic goods and services.  The 
current standard VAT rate is 16% (May 2012).  A nu mber of items, including fruit and vegetables, are 
zero-rated (Table III.5).  Cigarettes and fuel ar e subject to excise tax. All stamp duties were 
eliminated in January 2006.   
                                                      
6 See WTO (2006), Table AIII.2. Israel WT/TPR/S/272/Rev.1 
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Table III.5 
Taxes on imported or domestic goods and services, May 2012 
Tax Product Rate Taxation base 
Imports Domestic 
Value-added tax Standard rate for goods and services
 
Fresh fruit and vegetables; ships 
and airlines for service on international lines; travel tickets for 
international sea and air-lines; cargo 
transportation by sea and air; hotel accommodation for foreign tourists; most products and selected services 
in Eilat free port 16% 
 
0% Value of goods for 
customs purposes 
plus customs duties, 
port and stevedoring fee, 
levy (if applicable) Value of 
transaction 
Purchase tax Certain luxury and consumer goods, 
mostly motor vehicles, consumer 
electrical goods, alcoholic 
beverages, and a limited number of 
intermediate goods .. Customs value plus 
customs duties plus TAMA Wholesale 
price 
Excise tax Cigarettes  260.6% + NIS 224.99/ 1,000 
cigarettes but no less than 
NIS 498.23/ 1,000  Wholesale price Wholesale 
price 
Excise tax Gasoline     
Kerosene    
Diesel         
Heavy fuel oil  Gas  
Coal   NIS 2,959.13/100  litres  
NIS 2,835.18/100  litres  
NIS 2,835.18/100  litres  
NIS 14.68/1,000 kg NIS 116.82/1,000 kg  
NIS 44.39/1,000 kg n.a. n.a. 
.. Not available. 
n.a. Not applicable. 
Source : Israeli authorities. 
20. 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.  Howe ver, for the imposition of purchase taxes on 
imported products, Israel uses an assessment called TAMA (the Hebrew acronym for additional rate 
of increase).7  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 
product to product).  The effect of the TAMA  is similar to an import surcharge.  
21. A tax reform for alcoholic beverag es is to be implemented by 2014.8  Currently, imports are 
subject to a specific purchase tax (NIS 15-16 per litre of alcohol) plus 75% of the c.i.f. price, plus the TAMA.  Domestic alcoholic beverages are subject to the same specific tax, plus 75% of the wholesale 
price.  By 2014, the TAMA will be cancelled a nd replaced by a specific tax of NIS 80 per litre of 
alcohol on imports and domestic pr oducts alike.  The tax rate will be linked to the consumer price 
index.  Beer is currently subject to a purchase tax of NIS 2 per litre, while there is no purchase tax on 
wine. 
                                                      
7 Alternatively, importers have the option of declaring the actual wholesale value of their products.  
Importers concerned must register with the Israel Tax Authority.  To register, a person must import goods of least of US$100,000 per calendar year and must not have been convicted of a tax offence in the preceding five 
years. 
8 Official Gazette,  1 March 2010, customs regulation 1596.  Approved by the Finance Committee in 
June 2010.   WT/TPR/S/272/Rev.1 Trade Policy Review 
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(b) Fees for services rendered 
22. Israel's port wharfage fee scheme, whereby impor ts had effectively cro ss-subsidized exports, 
was reformed in 2010.  A new port user fee scheme, based on the cost of services rendered is being implemented over ten years (Chapter IV(4)(iii)(a)). 
(iv) Import prohibitions and licensing 
Import prohibitions 
23. Israel maintains import prohibitions for reasons  of protecting human health, public morals, 
security, and the environment, or in accordance w ith its international commitments under the Basel 
Convention on Hazardous Wastes, the Montreal Protocol, and CITES.  The import prohibitions are 
provided for in the 2005 Customs Order and the Free Import Order, 2012.  Israel maintains a ban on 
imports of non-kosher meat a nd meat products (Kosher Meat  Import Law of 1994).  Import 
prohibitions were added during the review period,  notably on tobacco and manufactured tobacco 
substitutes with packaging containing prohibited ad vertisement (Table III.6).  A general import ban 
remains in place for Iran, Lebanon, and Syria.  
Table III.6 
Import prohibitions, May 2012 
Items  Reason for prohibition 
Non-kosher meat and meat products Religious/cultural reasons  
Wine, spirits products and grape juice, whether ca lled by a geographical name that is not its place 
of origin or by a name that incorporates such a geographical name or that may give the impression 
that it incorporates such a geographical name (22) Enforcement of  laws and 
regulations 
Tobacco and manufactured tobacco substitutes (excluding unmanufactured tobacco, tobacco 
refuse) (24, excluding 24. 01) Protection of human health 
(Art. 5 of the Limitation of 
Advertising and Marketing of tobacco products, 1983) 
Transparent spray made for blu rring the license plate of vehicles while shooting/photographing 
(32.08) Enforcement of  laws and 
regulations (toll, speed limits) 
Matches made from white or yellow phosphorus (36.05) Environment protection 
Licentious or indecent films (37.06) Public morals 
Currency notes, bank notes or coins that are legal tender in any country or which have been at 
some time legal tender in any country, whethe r counterfeit or imitation (49.07, 71.18, 97.04) Public morals 
Tickets or publicity items for lottery or gambling (49.11) Public morals 
Sales invoice form that is a form or other paper that  purports to be a form on which it is possible to 
fill in blank spaces so as to use it as a sales i nvoice for goods from foreign countries (48.20, 49.11) Public morals 
Used bags for packaging vegetable materi al (63.05) Protection of human health 
Knives, cutlasses, spears, and swords having a serra ted point or sharp blade, except for knives of a 
kind for professional work or domestic use (82.11, 93.07) Protection of human life 
Disruptive instruments of laser speed  measuring meters Public safety 
Firearms resembling a pen, starting pistols, ite ms activated by gas, etc. (93.03) Security 
Nerve gas container resembling a gun (93.04) Security 
Games of chance or part of them as define d in the Penal Code (95.04) Public morals 
Motor skateboards (94.06) Public safety 
Goods of all types that carry a false commercial description as defined in the Consumer Protection 
Law of 1981 Public morals 
Postal packages containing live cr eatures such as vipers, explosives, inflammable materials, and 
other dangerous packages Protection of human health 
Table III.6 (cont'd) Israel WT/TPR/S/272/Rev.1 
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Items  Reason for prohibition 
Used equipment for bee farming Protection of human health 
Goods that can be used as tools for preparing or consuming dangerous drugs as defined in the 
Dangerous Drug Order, 1973. Protection of human health 
Goods that can be used to incite violence, terror , or racism as defined in Chapter H of the Penal 
Code  Security 
 
Note: The corresponding HS code is provided in parenthesis. 
 
Source:  Information provided by the Israeli authorities. 
Import licensing  
24. Israel applies non-automatic licensing pro cedures under the Free Import Order of 2012, 
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 
(Chapter IV(1)(iv)).  Israel's last notifi cation on import licensing procedures dates from 2006 
(Table AII.1) 
25. Annex 1 to the Free Import Order, 2012 contai ns a list of 203 items (from HS four to eight-
digit level) subject to import licensing principa lly for (food) safety and security reasons.  The 
procedures involve the licensing of import consignmen ts and importers.  Importer licences are granted 
at the discretion of the competent authority.  For example, for importing certain types of goods the 
criminal record of the importer may be relevant.   
26. Annex 2 to the Free Import Order, 2012 lists goods  that are subject to specific standards and 
technical requirements in order to ensure  safety, security, and environmental objectives.9  Approvals 
(permits) are granted prior to importation, if the imported goods comply with technical requirements.  
Annual approvals may be granted,  subject to a declaration by the importer that subsequent 
consignments will be identical. 
27. Depending on the product, licences/approvals are issued free of charge by the Ministries of 
Industry, Trade and Labor, Agriculture, Health , Transportation, and Environment within  
14-21 working days, but in most instances in less than seven days upon completion of all necessary 
documentation.  Reasons for refusal of a licence must  be provided in writing, and the applicant has the 
right of appeal to the High Court of Justice.  Exemptions are granted mainly by MOITAL in cases of 
imports used in manufacturing;  goods intended for exhibitions or marketing samples;  re-export;  
imports for own-use; spare parts;  computers a nd peripheral equipment;  and equipment for audio 
visual professional use (Article 2(c)2 of the Free Import Order, 2012).  
28. Imports from 17 WTO Members10 and non-Members that do not have diplomatic relations 
with Israel or prohibit imports from Israel are subject to a special import licensing regime administered by MOITAL, which is subject to annual review (i.e. the Free Import Order does not 
apply to these countries).  In July 2003, Israel  lifted its general import prohibition from the WTO 
Members concerned.  Textiles and bed linen requi re import licences when imported from Bangladesh 
                                                      
9 Annex 2 lists 882 items (HS 4-8 digit level) plus HS chapters 1, 2, 4, 6, 8, 9, 10, 11, 16, 17, 18, 19, 
21, 46, 57, 61 and 62. 
10 Bahrain, Bangladesh, Brunei Darussalam, Cambodia, Chad, Cuba, Indonesia, Kuwait, Malaysia, 
Mali, Morocco, Oman, Pakistan, Qatar, Saudi Arabia , Tunisia, and United Arab Emirates. MOITAL online 
information.  Viewed at:  http://www.tamas.gov.il/NR/exeres/B2034774-5A64-41CF-A837-8A81073035D.htm. WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 30 
  
or Pakistan.  In addition, plastic raw materials require a licence when imported from Bahrain, Oman, 
Qatar, Saudi Arabia or the United Arab Emirates.   
(v) Contingency trade remedies 
29. Israel's legislation on contingency trade remedies evolved during the review period 
(Table III.7).  The renamed Trade Levies and Safeguard Measures Law, 1991 now covers anti-
dumping measures, countervailing measures, safegua rd measures, and "safeguard levies".   
Table III.7 
Evolution of Israel's Trade Levies and Sa feguard Measures Law, selected years 
Entry into force Event Notes 
1991 Adoption of the Trade Levies  Law notified to the WTO 
(G/N/1/ADP/ISR/2-G/SCM/N/1/ISR/2-G/SG/N/1/ISR/2) Covers anti-dumping and countervailing 
measures, and a so-called Safeguard Levy 
July 2005 Amended Trade Levies Law notified to the WTO 
(G/ADP/N/1/ISR/3-G/SCM/N /1/ISR/3 and Corr.1) Revised anti-dumping and countervailing 
measures legislation; Chapter 2 (Safeguard 
Levy) remains basically unchanged   
December 2008  Amended Trade Levi es and Safeguard Measures Law 
notified to the WTO (G /SG/N/1/ISR/2/Suppl.1) Chapter B2 (Safeguard Measures) was added 
December 2011 Amended Trade Levies Law (not yet notified to the 
WTO)  Changes regarding approval of provisional 
measures and duties 
 
Source : WTO Secretariat. 
Anti-dumping and countervailing measures 
30. The last amendment to the Tr ade Levies Law, in December 2011, covers changes regarding 
the approval of provisional and final measures.  The previous amendments, in July 2005, were to align 
them with Israel's obligations under the Agreem ents on Implementation of Article VI of the GATT 
1994 (AD Agreement) and on Subsidi es and Countervailing Measures.  This legislation was reviewed 
by the Committees on Anti-Dumping Practices and on Subsidies and Countervailing Measures in 
2006.11  The legislation envisions implementing provisions on, inter alia , calculation of production 
costs, comparison between export price and normal va lue, content of complaints, and the conduct of 
investigations;  and the authorities reported in 2006 that such provisions were being prepared.12  
However, no such provisions have yet been approved. 
31. Under Israeli law, a Commissioner for Anti- Dumping and Countervailing Measures within 
MOITAL accepts complaints and conducts i nvestigations.  Although the Commissioner makes 
preliminary determinations, imposes provisional measu res, enters into undertakings, and terminates 
investigations without final measures, finding s regarding the imposition of final measures are 
submitted to an Advisory Committee on Anti-Dumpi ng and Countervailing Measures.  The Advisory 
Committee, composed of six public representatives, four employees of the MOITAL, and four employees of the Ministry of Finance, conducts a hearing with the domestic industry, importers, 
exporters, government representativ es of exporting countries, industry and trade organizations, and 
other interested parties, and submits its conclu sions regarding dumping/subsidization, injury, 
causation, and public interests, along with a reco mmendation on the imposition of a duty, including its 
rate, applicability, and period of validity, to the Mini ster of Industry, Trade and Labor.  Any decision 
by the Minister of Industry, Trade and Labor to le vy a duty, must be submitted to the Minister of 
                                                      
11 WTO document G/ADP/M/30, 18 October 2006 and G/SCM/M/58, 2 April 2007.  See also 
Harpaz (2006). 
12 WTO document G/ADP/Q1/ISR/13-G/SCM/Q1/ISR/13, 9 June 2006.  Israel WT/TPR/S/272/Rev.1 
 Page 31 
 
 
Finance for approval.  The duty will only take eff ect following approval by the Finance Committee of 
the Knesset. 
32. Israel applies a mandatory lesser duty rule in  respect of final anti-dumping and countervailing 
measures; where the Commissioner or the Advisory Co mmittee finds that a duty less than the margin 
of dumping or rate of subsidization is sufficient to  prevent material injury to the domestic industry, 
the lower rate is to be applied.13  The rule has been applied to all measures imposed during the period 
under review.  Further, under Israeli law, the imposition of anti-dumping and countervailing duties is 
permissive, and in deciding whether to levy a duty, the Minister must take into account, inter alia , the 
trade relationship between Israel and foreign c ountries and reasons pertaining to the economy in 
general.14  For example, the Minister of Finance determined that it was not in the public interest to 
impose a duty in the case of recycled containerboards.  
33. Israel has notified its anti-dumpi ng actions through 30 June 2011.15  Based upon notifications, 
Israel has initiated 43 anti-dumping investigations sin ce the entry into force of the WTO Agreement.  
Of these, 18 investigations resulted in final duties or undertakings, 18 were terminated without final 
measures, 7 are ongoing, and 3 could not be accounted for.  It appears that in recent years, notably 
2009-10, the number of new anti-dumping proceedings has increased slightly, but overall the 
incidence of new anti-dumping measures remains within the long-term trend (Table III.8 and 
Chart III.3).  Israel has not submitted any notification to the WTO on the use (or non-use) of countervailing measures and it has never opened an inv estigation relating to countervailing measures.  
Table III.8 
Definitive anti-dumping measures in force, May 2012 
Country/customs 
territory Product Measure Date of original imposition 
China Cutting and grinding wheels (HS 680422) Duties 26.11.2007 
 Elbow-butt pipe fitti ngs Duties 12.04.2011 
    
European Union Stretch wrap (HS 392010,  391990) Price undertaking 
1.23-1.45 €/ kg 15.04.2010 
Turkey Stretch wrap (HS 392010,  391990) Price undertaking 
1.17-1.34 €/ kg  22.02.2010 
Source : WTO Secretariat. 
 
                                                      
13 Trade Levies and Safeguards Measures La w, 1991, Articles 32.19(b) and 32.20(b). 
14 Trade Remedies and Safeguards Meas ures Law, 1991, Article 32.13(a).   
15 WTO document G/ADP/N/216, 23 January 2012.  WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 32 
  
012345678
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Anti-dumping measures
Initiations of anti-dumping proceduresChart III.3
Anti-dumping procedures, 1995-2011
Source: WTO Secretariat.  
 
Safeguard measures 
34. In December 2008, Israel introduced safeguard legislation intended to implement the WTO 
Agreement on Safeguards, and the law was re named Trade Levies and Safeguard Measures 
Law (5768-2008).16  The new legislation was reviewed  by the Committee on Safeguard in 
May 2009.17  As in the case of anti-dumping and count ervailing investigations, the Commissioner 
within the MOITAL opens and conducts inves tigations.  However, rather than making 
recommendations to an Advisory Committee, the Commissioner submits conclusions and 
recommendations to the Minister of Trade, Indus try and Labor who will decide whether to levy 
safeguard measures, taking into account arguments relating to the economy as a whole and Israel's 
trade relations with other countries.  This decision is  subject to the approval of the Minister of Finance 
and the Finance Committee of the Knesset. 
35. Pursuant to the new safeguard legislation, Israel initiated its first investigation, on steel rebars, 
in 2009.  It imposed a provisional safeguard measure, in March 200918, but ultimately terminated the 
investigation without the imposition of a final measure.19  Israel's second safeguard investigation, 
initiated in January 2011 on glass and ro ck wool, is awaiting final approval.20  There are currently no 
final safeguard measures in force.  
                                                      
16 WTO document G/SG/N/1/ISR/2/Suppl.1, 14 January 2009. 
17 WTO document G/SG/M/35, 25 September 2009. 
18 WTO document G/SG/N/6/ISR/1, 1 April 2009. 
19 WTO document G/SG/Q2/ISR/2, 14 October 2010. 
20 WTO document G/SG/N/6/ISR/2, 12 January 2011. Israel WT/TPR/S/272/Rev.1 
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Safeguard levy 
36. A safeguard levy may be imposed by the Minist er of Industry, Trade and Labor on imports or 
exports of goods and services in any of the following circumstances:  (i) to prevent deterioration of 
Israel's balance of payments or foreign currency reserves;  (ii) to regulate production, demand or 
consumption of agricultural and fi shery products;  (iii) to protect agricultural products against 
substantial injury caused or that may be caused by  competing imports, in accordance with the Special 
Safeguard provisions of the Agreement on Agricu lture;  (iv) to prevent exhaustion of mineral 
deposits;  (v) to restrict the export of raw material s produced or mined in Israel, in order to prevent 
shortages in the local market, or to regulate the price of these raw materials;  (vi) to absorb or prevent 
excess profits due to legislative provision;  (vii) to absorb assistance or be nefits accorded by the 
Government in respect of goods that were intended for use in Israel but were actually exported;  
(viii) to adopt economic counter-measures against an y State that has violated an agreement with 
Israel;  and (ix) to restrict or prevent imports fro m any country that prohibits or restricts trade with 
Israel or imposes discriminatory measures against Israeli products.  
37. A safeguard levy is set as a proportion of the goods' value or a fixed sum or a proportion of 
the excess profit or according to any other calculati on, as prescribed by the Minister.  A safeguard 
levy is in effect for a maximum of two years; the Minister may re-impose the levy or extend its effect by order, as long as it is required for one of the purposes enumerated above.  Imposition of the levy requires approval by the Knesset.  The amount of the safeguard levy is capped so that the ordinary 
customs duty plus safeguard levy do not exceed Is rael's tariff binding of the product concerned. 
38. At the time of its last TPR, Israel had implem ented safeguard levies on a number of vegetable 
oils and oilcakes
21, and Members raised concerns that the level of the levies differed depending upon 
the origin of the product.22  According to the authorities, these safeguard levies were neither safeguard 
measures within the meaning of Article XIX of  the GATT 1994 and the Agreement on Safeguards, 
nor covered by the Special Safeguard clause of th e Agreement on Agriculture.  Rather, they were 
customs duties and as such could not exceed the level of Israel's bindings .  Safeguard levies on 
various edible oils were converted to ordinary cu stoms duties on 9 May 2007.  There are currently no 
safeguard levies in force. 
(vi) Standards, technical regulatio ns, and conformity assessment 
39. Standards, conformity assessment, and their en forcement are governed by the Standards Law 
of 1953 and its eight amendments.  Under the Standa rds Law, the Standards In stitution of Israel (SII), 
a statutory non-governmental organization, is the so le authority for the development of standards and 
for permitting manufacturers the use of the Standard Mark, indicating that a product conforms to an 
Israeli standard.  The SII is largely a self-financi ng institution, but receives support (5% of its budget) 
from the Government for work on standardization.   The Commissioner of Standardization (in the 
MOITAL) is in charge of enforcement of mandatory  standards and approval of testing laboratories.  
Depending on the type of standard, other agencies, such as the Ministries of Health, Communications, 
Agriculture and Rural Development, and Energy an d Water are involved in developing or enforcing 
binding regulations based on standard s pertinent to their fields of activity.  Enforcement of food 
standards is mainly under the Ministry of Health;  fuel and gas standards are under the authority of the 
Ministry of Energy and Water;  and regulations governing key features of automobiles are under the Ministry of Transport.  Israel is in the process of implementing regulatory impact analysis (RIA) 
within the Prime Minister's office. 
                                                      
21 See WTO (2006), Table III.6. 
22 WTO document WT/TPR/M/157/Add.1, 15 March 2006, p. 36. WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 34 
  
40. The MOITAL hosts the TBT enquiry point under the TBT Agreement.  In the period 2006-11, 
Israel submitted 420 notifications to the Commi ttee on Technical Barriers to Trade, mostly 
concerning the revision of mandatory standards or the adoption of international or regional standards.  
During the period under review, two specific trad e concerns were raised in the TBT Committee.23   
41. The SII has published 3,192 standards (2,600 in  2005).  As of January 2012, 552 standards 
(excluding food standards) were mandatory.  Manda tory standards are particularly important in 
electrical and mechanical engineering, and in f ood (Table III.9).  In 2007, the Government had 
decided that the share of mandatory standards of regional or international origin should be increased 
from 45% to 65% by July 2010.24  In early 2012, some 77% or 424 of Israel's mandatory standards 
involved adoption of international, regional or ot her foreign standards.  Of these, some 60% are 
international (ISO/IEC), 35% are European (C EN/CENELEC), and 5% are "other", including 
standards of the United States.  In January 2012,  the Government set the objective of making the 
remainder of Israel's mandatory standards interna tional (except for food, see section (vii) below) by 
31 December 2012.  The Government's decision also in structs the Director General of the MOITAL to 
promote MRA's of certificates of compliance with Israel's trading partners.   
Table III.9 
Equivalence of Israel's standards with internatio nal, regional or foreign standards, January 2012 
Equivalence 
(%) Number of 
mandatory Israeli 
standards equivalent 
to international, 
regional or other 
foreign standards Number of 
mandatory Israeli 
standards Total number of 
Israeli standards  
69 29 42 360 Building 
91 139 152 391 Electrical engineering 
59 30 51 240 Chemicals 
77 95 123 405 Mechanical engineering 
60 6 10 186 Textiles, leather, paper 
100 47 47 160 Polymers 
92 24 26 175 Electronics 
34 10 29 160 Water appliances 
n.a. n.a. 0 308 Information systems 
n.a. 0 1 130 Environmental protection 
38 5 13 89 Motor vehicles 
66 23 35 133 Medical equipment 
n.a. 0 1 39 Packaging 
84 16 19 133 Safety 
n.a. n.a. 0 68 Management quality 
n.a. 0 3 30 Energy 
76.8 424 552 3007 Total (excluding food) 
12 20 160 185 Food standards 
n.a. Not applicable. 
Source: Standards Institution of Israel.   
                                                      
23 These matters concern the "Regulation for Labeling of Imported and Locally Produced Automotive 
Products – Name of Manufacturer and Country of Origin Requirements" (Regulation 31/08);  and a technical 
regulation on infant formula (WTO docum ent G/TBT/M/49, 22 December 2009). 
24 Cabinet resolution "Improvement of Terms of Trade – Standardization", August 2007 (Decision 
No. 2191). Israel WT/TPR/S/272/Rev.1 
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42. The SII is a signatory to the Code of Good Practice for the Preparation, Adoption and 
Application of Standards, and operates in accord ance with the ISO/IEC guidelines set out for this 
purpose.  The standardization process is laid down in the Rules for the Preparation of Israeli Standards 
of 1991.  Voluntary standards are elaborated by  the SII's technical committees, after which the 
Institution circulates each draft standard for comme nts prior to adoption.  At present, some 1,090 
standards committees are active in the SII.  The MO ITAL may declare a particular standard to be 
mandatory after consultation with representatives of producers and consumers (one month), and 
obtaining the written consent of the competent Mi nister, following which they are published in the 
Official Gazette .  If there are several standards suitable fo r adoption, the SII may publish alternative 
standards, provided that each is based on a current international standard.  In this context, the 
authorities note the difficulties in harmonizing Israel's  standards with its two main trading partners - 
the EU and the United States - between which standa rds often differ.  The absence of international 
standards in specific areas (e.g. on food labelli ng) often proves problematic.  Occasionally, Israeli 
standards have been adopted as international st andards, for example in the area of irrigation 
equipment.  According to some observers, certain Israeli standards, e.g. plywood, are specified in 
terms of design rather than perfo rmance, impeding market access.25  According to the authorities, 
Israel does not declare standards in terms of design.  
43. Most imports that are subject to technical requirements (as listed in Annex 2 of Free Import 
Order, 2012 (Chapter III(1)(iv)) are inspected at the port of entry.  Domestic products are subject to 
market inspection. Compliance testing, both for dom estic and imported products , is generally carried 
out by one of the SII's laboratories.  Imports with  an SII Standards Mark, certifying compliance with a 
certain standard, may enter Israel without being test ed.  As of January 2012, 1,750 permits have been 
granted for marking products with a Standard Mark , to 1,100 companies, mainly domestic.  The SII 
has also licensed 600 production processes. 
44. The procedures for imports without the Mark  depend on the degree of product safety and 
reliability of the importer.  Since June 2006, a ll imported goods subject to mandatory standards 
(Annex 2 of the Free Import Order 2012) have been  classified into four levels of examination 
according to the degree to which they might endange r public health and safety.  The goal of creating 
these groups was to ease the inspect ion burden on imported consumer products, and to shift the 
emphasis of enforcement to inspection at the marketing stage.  For goods in Group 1, representing the highest danger level, an examination of each sh ipment remains mandatory (e.g. electrical home 
appliances, toys);  goods in Group 2, with an inte rmediate danger level, are subject to type approval 
tests;  while goods in Group 3 must be accompanied by  a SDoC (supplier's declaration of conformity).  
Imported goods intended solely for industrial use (G roup 4) do not undergo any special inspection.  
Like a number of developed countries, Israel applies the presumption of conformity approach.  It places more responsibility on the supplier, includ ing manufacturers, importers, and distributors, 
whose shipments must be accompanied by a persona l declaration that the goods conform to Israeli 
mandatory standards.  The statement (SDoC) is also  certified by an attorney.  Penalties for infractions 
against the Standards Law are US$45,000 for each infr action by an individual,  and up to US$70,000 
in the case of corporate bodies.  Moreover, the Co mmissioner is empowered to impose Group 1 status 
(i.e. examination of each shipment) on the goods of  any unreliable supplier. This status may be 
maintained for one year.  
45. Israel has few mutual recognition agreemen ts (MRAs).  The first MRA was a Good 
Laboratory Practice Agreement with the EU, in forc e since 2000.  In 2010, Israel and the EU signed 
an agreement on acceptance of conformity assessment with a sectoral annex on GMP in pharmaceuticals.  In 2011, Israel and Canada  concluded an MRA on conformity assessment 
                                                      
25 USDA Foreign Agricultural Service (2011).  WT/TPR/S/272/Rev.1 Trade Policy Review 
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procedures for telecoms equipment. Both agreements  will enter into effect after the completion of 
internal approval procedures by the parties.  Israel, through the SII, has also signed MRAs on test data 
with 45 certification and testing organizations in 20 countries.  It has also signed memoranda of 
understanding for mutual recognition of ISO 9000 re gistration with nine foreign organizations. 
(vii) Sanitary and phytosanitary measures 
46. Israel has notified three new or revised SPS me asures since its last TPR in 2006.  The SPS 
notifications concern alignment of its phytosanitary  import requirements with international standards, 
and an amendment of BSE-related import requireme nts.  The Plant Protection and Inspection Service 
(PPIS) and the Veterinary and Animal Health Se rvices of the Ministry of Agriculture and Rural 
Development (MARD) are the national enqui ry points and notification authorities. 
47. The main SPS-related legislation includes the Public Health Order (Food) of 1983;  the 
Animal Diseases Order of 1995;  the Law of Export Control (Animals and Animal Products) of 1957;  
the Plant Protection Law of 1956;  the Plant Inspection and Marketing Law;  the Control and Commodities Services Law;  the Bu siness Licence Law;  and the Standards Law, the Consumer 
Protection Order, and the Free Import Order of 2012. 
Food safety 
48. Israel has 185 food standards, including 160 mandato ry standards, of which 20 are equivalent 
to international, regiona l, and other foreign standards (Table III.9).  The Government aims to 
harmonize all of Israel's mandatory food standards with overseas norms, by 31 December 2013.  
49. All food importers must be registered with the Food Control Service (FCS) of the Ministry of 
Health.  Applications for an official importer cer tificate (importer registration) include an importer 
declaration stating, inter alia , that the imports comply with Israeli laws and that the importer will act 
in accordance with the directives of the FCS, in cluding procedures for recalling products from the 
market. 
50. Each food import consignment other than fish , meat, and related pr oducts requires prior 
authorization from the FCS.  Shipments are divided into "sensitive food" and "regular food" according 
to risk assessment with regard to  aspects such as microbiology, chemistry, animal source, or foods 
intended for a particular consumer group.  Food su pplements, infant formulas, and foods for special 
dietary uses, dairy products, low-acid canned food, or baby foods are categorized as sensitive food; 
the list is revised periodically.  About 3% of the sh ipments of regular food items are inspected by the 
quarantine station at Customs.  In addition, th e FSC takes samples of different types of foods 
depending, inter alia , on previous information, and country of  origin. Israel does not require labelling 
of food containing GMOs.  
Kosher certification 
51. Under the Kosher Meat Import Law (1994), impor ts of non-kosher meat and meat products 
are prohibited.  The import prohibition does not apply to live animals, beef offal, milk or dairy 
products.  The Government permits some domestic  production, sale, and c onsumption of non-kosher 
meat, for example bovine meat from dairy cows.  Pi g rearing is prohibited, except in a few villages.  
52. Meat and meat products must be certified kos her to ensure compliance with Jewish dietary 
laws.  Kosher certification is not mandatory for other food items.  Kosher certificates may only be issued by the Chief Rabbinate in Israel or desi gnated Rabbis located abroad at the expense of 
exporters (Law for Prevention of Fraud in Kashrut).   Israel WT/TPR/S/272/Rev.1 
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Animal health 
53. According to the authorities, the Israeli Veteri nary and Animal Health Services are making 
use of international standards set by the OIE, F AO, and Codex Alimentarius as a basis for their SPS 
measures.  Unprocessed and unpackaged meat requ ires an import permit from the Veterinary and 
Animal Health Services.  Meat imports are allowed only from approved countries with authorized 
establishments and approved products .  Risk assessment (e.g. upon a request to import a new product) 
normally takes a few months, depending on the cooperation by the exporting country.  Israel recognizes disease-free zones within countries, for exam ple Argentina with respect to FMD or Canada 
with respect to Avian Influenza.  Israel has re vised its BSE-related guide lines for imports of live 
cattle, sheep, and goats in accordance with recommendations of the OIE.
26   
Plant protection 
54. The Plant Protection and Inspection Service (PPI S) is responsible for issuing import permits 
for plants and plant products.  Some, but not all, pr oducts requiring phytosanitary permits are listed in 
Annex 2 of the Free Import Order, 2012 (Chapter  III(1)(iv)).  The PPIS is also responsible for 
authorizing pesticides.   
55. Israel's phytosanitary legislation for plant imports has been revised and, according to the 
authorities, virtually all standards have been b een aligned with the International Standards on 
Phytosanitary Measures (ISPM) of the Internationa l Plant Protection Convention (IPPC).  The new 
Plant Protection Regulations, in force since June 2009, improve the transparency of import requirements.
27  Some of the main changes are in the area of licensing, whereby a long list of plants 
and plant products has been exempt ed from import permit requirements.28  Import permits for non-
listed plants and plant products require, inter alia , a pest risk assessment by PPIS.  As part of the 
revised phytosanitary measures, Israel has implemen ted the international standard for wood packaging 
materials (ISPM 15) since October 2009.29  A pending amendment of the Plant Protection Regulations 
would allow for emergency measures.  
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
56. There is no registration requirement for ex porters.  The main documents for customs 
clearance include the export declaration;30  commercial invoice;  bill of lading (or airway bill);  
certificate of origin;  packing list;  and export licence/permit (if required).  
(ii) Export taxes and charges 
57. Israel does not apply any export taxes or levies.  The wharfage fee on exports (0.2% of the 
f.o.b. value) was abolished in 2010 and has been replaced by a new port user fee scheme 
(Chapter IV(4)(iii)(a)). 
                                                      
26 Terrestrial Animal Health Code, see WTO do cument G/SPS/N/ISR/9/Rev.1, 19 July 2011. 
27 Plant Protection Regulations (Plant Import, Plant Products, Pests and Regulated Articles), see WTO 
document G/SPS/N/ISR/7, 18 May 2009. 
28 Goods in the third schedule to the Plant Protection Regulations are exempt from import permits and 
phytosanitary certificates but require ce rtificates of origin;  goods in th e fourth schedule, such as fruit and 
vegetables or seeds are exempt from import permits but require a phytosanitary certificate. 
29 WTO document G/SPS/N/ISR/8, 18 May 2011. 
30 Except for goods under US$100 exported without financial compensation or sales transaction.  WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 38 
  
(iii) Export prohibitions, controls, and licensing 
58. Israel maintains export licensing and approval (p ermit) schemes.  Products may require an 
export licence/approval for reasons such as commitmen ts under (non-WTO) intern ational agreements;  
control of quality and standards of Israeli goods , and conservation of local resources.  Products 
subject to export licensing are listed in Annex 131, 332 and 4 of the Free Export Order of 2006, as last 
amended in 2011;  most are chemicals or agricult ural products.  Export approval is required for 
selected food and fresh agricultural products for sanitary and quality reasons (Annex 2 of the Free 
Export Order)33;  diamonds;  certain tools; and certain religi ous articles.  Approvals are granted if the 
exported goods fulfil the applicable technical/sanitary  requirements, while export licences are granted 
at the discretion of the competent authority.  Licen ces and approvals are granted free of charge.  Israel 
does not apply export quotas, according to the authorities. 
59. In accordance with the Ordinance on Trade with  Enemy States, Israel prohibits exports to 
Iran, Lebanon, and Syria.   
(iv) Export subsidies, and duty and tax concessions 
60. During the 2007/08 and 2008/09 marketing years, Israel temporarily used export subsidies for 
fruit and vegetables (Chapter IV(1)(v)).  Accordi ng to the authorities, Israel currently does not 
provide export subsidies for agricultural products.  
61. Exporters are eligible for drawbacks with r espect to anti-dumping duties, purchase tax, and 
customs duties when importing raw materials that are used for manufacturing products for export, or when purchasing local raw materials for export or u se in manufactured products that are exported.  
The policy is currently under review by MOITAL.  Reimbursement (drawbacks) of customs duties for 
exports under the FTAs with the EU, EFTA, Jordan, a nd Turkey is not permitted.  Exports are exempt 
from VAT.   
(v) Export finance, insurance, and assistance 
Export insurance and guarantees 
62. The state-owned Israel Foreign Trade Risk In surance 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 a nd long-term export credit transactions (ranging from 
1 to 15 years) and Israeli investments abroad, ag ainst 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.  In 2011, ASHR'A underwrote 
export transactions with a total value of US$4.3  billion.  Its maximum guarantee exposure is 
US$1.75 billion. 
63. During the review period, especially following the global financial crisis, the Government 
significantly increased its export guarantees to encourage exports.  In June 2009, the Ministry of 
Finance launched a new assistance programme for exporters, based on the "follow the fortune" 
principle (i.e. the reinsurer relies on the good faith of the insurer’s actions in the underwriting and 
claims processes, assuming the insurer's own fortune is at risk as well).  Under this programme, the 
                                                      
31 HS chapter 6. 
32 HS 4-8 digit level, 58 items. 
33 HS chapters 1-4, and 6. Israel WT/TPR/S/272/Rev.1 
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Government provides reinsurance for private cr edit 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 th e Government).  A minimum domestic content of 
40% of the insured transaction is required.  E xport transactions totalling about NIS1.8 billion have 
been carried out under this programme ("top up 1"). 
64. In May 2011, the Ministry of Finance la unched a similar programme under which the 
Government provides reinsurance for private cred it 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 ma rket segment traditionally served by ASHR'A.  The 
export credit agency has so far faced little competiti on from Israeli private insu rance companies, since 
it generally insures transactions with high level ri sks.  The maximum allowed exposure of guarantees 
under both MOF programmes is NIS 1 billion.   
Export promotion and assistance  
65. Export promotion activities are administered  by the Israel Export and International 
Cooperation Institute (IEICI), a join t-venture between the Israeli Gove rnment and the private sector.  
The IEICI provides services to exporters such as marketing, quality control, and publicity, and 
participation in international trade fairs.  IEICI's activities are financed by the Government (50%), and 
regular or voluntary contributions (50%).  The G overnment's contribution amounted to NIS 40 million 
in 2011. 
66. The Marketing Tutorial Program, administered by the MOITAL, provides support to 
companies (in all sectors) that e xport up to US$200,000 per year and require assistance for building a 
marketing infrastructure.  Grants amount to 50% of ma rketing tutorial fees, up to a ceiling of 200 hours.  
Expenditures were US$300,000 in 2010.34   
67. The Law on Encouragement of Capital Investment has export-oriented objectives 
(Chapter III(3)(i)). 
(vi) Free zones 
68. The city of Eilat on Israel's Red Sea coast is a free port.  The Eilat Free Trade Zone Law 
of 1985 aimed to encourage the development of the city of Eilat, especially tourism 
(Chapter IV(4)(iv)).35  Enterprises are exempt from import duties.  The Law provides for tax 
concessions and other benefits.  Most products purch ased in Eilat and selected services are exempt 
from VAT.36  Enforcement measures against leakage are ca rried out by the Border and Customs Unit.  
Employers that are residents of Eilat are eligible fo r tax refunds of up to 20% of gross wages paid to 
employees working in Eilat, subject to a ceiling.   
                                                      
34 WTO document G/SCM/N/155/ISR, 11 November 2011. 
35 Airport-related activities at Ovda are covered by the Eilat Free Trade Zone. 
36 Including services such as installation, operation,  maintenance, or repair of lifts, air conditioning 
systems, industrial refrigerators, automatic data processing machines, or vehicles;  dental technical services;  
architectural services for hotels;  management servi ces for hotels (bookkeeping, acc ounting, tax consultancy, 
legal services, advertising, registration of real es tate, financial consultancy, marketing of hotels). WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 40 
  
69. The Free Export Processing Zone Law of 1994 allows the establishment of duty-free 
processing zones.  No export processing zone is currently in operation.  
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
Overview 70. Israel's main incentive schemes are for e xport-oriented capital investments (Law on 
Encouragement of Capital Investment), and resear ch and development (R&D).  The tax and non-tax 
incentives are structured with the aim, inter alia , to attract foreign investment, promote exports, foster 
development in peripheral regions, and to help underpin Israel's comparative advantage in the high-
tech sector.  The high-tech industry is a key driver  of economic growth and exports (41.2% of total 
exports in 2009) (Chapter IV(3)(ii)). 
71. Israel's expenditures on civilian R&D amounted to about 4.4% of GDP in 2010, the highest 
share in the world.  Most of the R&D expenditures are financed by the private sector (venture capital 
industry).  R&D-related incentives have played a key role in the Government's response to the global 
financial crisis (Acceleration Plan).  In 201 1-12, the Government's R&D budget was raised to 
NIS 1.3 billion, up from NIS 1 billion in 2010.  
Law on Encouragement of Capital Investment 
72. Under the Law on Encouragement of Capital Investment (5719) of 1959, companies, mainly 
manufacturers, benefit from tax incentives and gran ts with preference given to:  (i) priority 
development regions in the periphery of the country;  (ii) export-oriented enterprises, and (iii) large 
enterprises.  The law also authori zes special incentives for the tourism sector (see Chapter IV(4)(iv)).  
The law was further amended on 1 January 2011 (A mendment 68) to reform the incentive structure 
amongst other things.  According to some observers  the incentives had largely failed to achieve the 
law's objective of promoting economic development in  the peripheral regions, and had created various 
distortions in the economy (Chapter IV(3)(i)). 
73. For purposes of the law, Israel is divided in to two areas: "priority area A" includes the 
peripheral regions in the north and the south (the Ga lilee, the Jordan Valley, the Negev, and Eilat) and 
Jerusalem (for high-tech industries only);  the remaining area covers mainly the central part of Israel.   
74. One the main changes introduced in 2011 concer ns the structure of tax incentives, which has 
been simplified.  STEs and mining companies are no longer eligible for the incentives.  The corporate 
tax rate in priority area A will be reduced from 10%  in 2011-12 to 6% by 2015;  elsewhere, the rate 
will be reduced from 15% in 2011-12 to 12% by 20 15 (the standard corporate tax rate was 24% in 
2011 and 25% in 2012).  Dividends are taxed at a prefer ential rate of 15%, subject  to the provisions of 
applicable double-taxation agreements.  The durati on of tax benefits is open-ended.  Total tax 
expenditures were about NIS 6 billion in 2008, NI S 5.3 billion in 2011 and NIS 5.5 billion in 2012.
37   
75. Since January 2011, large (multi-national) compan ies, such as Intel, with an annual turnover 
of at least NIS 1.5 billion and a combined company balance sheet of NIS 20 billion benefit from 
special tax breaks (special preferred enterprise).  From 2011, the corporate tax rate is 5% for a minimum investment of NIS 400 million completed over three years in priority area A.  For 
investments of at least NIS 800 million in other regi ons, the tax rate is 8%.  Alternatively, these tax 
                                                      
37 Ministry of Finance (2010b), p. 18. Israel WT/TPR/S/272/Rev.1 
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incentives are available for invest ments in R&D of at least NIS 100 million in priority area A 
(NIS 150 million elsewhere) or a business progra mme generating additional employment.  The 
duration of the tax benefits is ten years.   
76. The grant for investment in fixed assets (land, buildings, machinery, equipment) is 20% of 
expenditures in priority area A.  Th e rest of the country is not eligib le for grants.  Tax incentives and 
grants may be combined. Projects must be completed within five years from the date of approval.  The requirement of a minimum investment in fixe d assets has been eliminated.  Grants totalled 
US$244 million in 2008 and US$158 million in 2009.
38  Over 100 project grants were approved in 
2011. 
77. The eligibility criteria include:  investment pr ojects must be in the industrial sector;  
enterprises must export at least 25% of sales;  genera tion of high value-added;  and registration of the 
company in Israel.  Eligible enterprises must obt ain "approved enterprise" status from Investment 
Centre (Ministry of Industry, Trade and Labor), a nd "special preferred enterprise" status from the 
Israel Tax Authority.  The economic viability of projects is assessed by the MOITAL. 
78. Israel also provides employment subsidies fo r:  (i) industrial enterprises, call centres, 
computer services support centres, and logistics centres in outlying areas of Israel with high rates of 
unemployment, subject to a maximum support per employee of NIS 135,000 for 30 months or NIS 4,500 per month;  (ii) high salaries, including R&D Centres (Table AIII.3);  and (iii) large enterprises.
39 
Incentives for research and development  
79. Most governmental R&D programmes have been authorized under the Law on the 
Encouragement of Industrial Research and Devel opment (5744) of 1984 (last amended in 2011), and 
are administered by the Office of the Chief Sc ientist (OCS) at the MOITAL.  The leading OCS-
administered programme is the R&D Fund, which su pports projects by companies registered in Israel 
with grants of up to 50% of approved expenditures.   Project grants are repayable in the form of 
royalties in case of commercial success.  The In cubator programme, launched in 1991, has become 
the main source of initial funding for start-ups in the manufacturing (high-tech) sector, which are 
often financed by the venture capital industry wh en the flow of OCS seed-money ends.  Israeli 
incubators are privately owned technological support organizations that provide entrepreneurs with 
physical premises, financial resources, tools, pr ofessional guidance, and administrative assistance to 
develop innovative technological ideas into export able commercial products.  Israel currently has 
22 technological incubators, one biotechnology incubator and two technology-based industrial 
incubators (i.e. they tend to be closer to industr y needs or market needs).  Another important OCS-
administered programme is the Magnet Programme, which aims to encourage the development of 
innovative generic technologies through cooperati on between academic research institutions and 
industry.  The OCS has 32 programmes (Table AIII.3). 
                                                      
38 WTO document G/SCM/N/155/ISR, 11 November 2011. 
39 Invest in Israel online information, "Incentives  and benefits: employment grants".  Viewed at:  
http://www.investinisrael.gov. il/NR/exeres/2A82DCE7- 9B2D-4581-83B7-8C518D8323D1.htm.   WT/TPR/S/272/Rev.1 Trade Policy Review 
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Other assistance programmes  
80. Agriculture stands out as the sector that bene fits from the highest level of subsidies and 
protection relative to its size.  Other sectors be nefiting from government incentives include tourism, 
the film industry, renewable energy, and financial R&D centers (Table AIII.3).  
81. Government assistance to small- and medium-si zed enterprises is coordinated by the Israel 
Small- and Medium-size Business Agency of th e MOITAL.  About 400,000 small businesses employ 
more than 50% of Israel's workforce, and cons titute about 96% of all businesses in Israel.  The 
maximum loan with state guarantees (70% of the loan) is NIS 8 million.40  Most loans are for 
five years with market-based interest  rates, according to the authorities. 
(ii) Competition policy and price controls 
Overview 
82. Israel continues to face competition-related challenges for reasons such as high tariff 
protection (agriculture), the small size of the econo my, a certain degree of geographic isolation with 
little regional trade, and language barriers contributi ng to barriers to market entry.  Markets are 
relatively concentrated in the Israeli economy in  banking, energy, food retailing, amongst other 
sectors.  One of the Government's key policy obj ectives is to strengthen competition in the economy 
through structural reforms.  A reform of the comp etition law in the area of oligopolies was enacted in 
2011.  
Legal framework 
83. The Restrictive Trade Practices Act, 5748-1988 co vers restrictive arrangements; monopolies;  
and mergers, with the aim to prevent harm to competition.41  The law follows substantially the 
competition model of the EU and the United States; it also applies to state-owned enterprises.  The 
law is enforced by the Israeli Antitrust Authority (IAA), which is independent from the Government, 
and is vested with powers to initiate civil and criminal proceedings.  The competition law allows 
private enforcement through individual action or  class actions by consumers' and business 
organizations.  An Antitrust Tribunal at the District  Court in Jerusalem has exclusive jurisdiction over 
non-criminal competition proceedings brought to it by the IAA.  The District Court of Jerusalem itself 
has exclusive jurisdiction on criminal matters.  D ecisions by the Tribunal may be appealed to the 
Supreme Court, Israel's highest judicial authority.  
84. Cartels and other restrictive arrangements are prohibited by the Law, unless block exempted 
or authorized by the General Director of the IAA or the Antitrust Tribunal (Table III.10).  Currently, 
8 block exemptions are in force (franchise agreem ents;  exclusive purchase agreement;  restraints 
ancillary to mergers; agreements  for the execution of R&D;  arra ngements of "minor importance";  
joint ventures; arrangements between aircraft carriers;  and arrangements between affiliated 
companies).  In 2008, the general exemption of the air transport sector from competition rules was cancelled and replaced by block exemption rules w ith the objective of promoting competition in the 
                                                      
40 The following thresholds apply for governments incen tives, benefits or loans to enterprises:  very 
small enterprise - up to 5 employees with a turnover of up to NIS 1 million;  small enterprise - up to 
15 employees with a turnover of up to NIS 50 million; and medium-sized business - up to 100 employees with a turnover of up to NIS 100 million.  See Israel Business Connection online information.  Viewed at:  
http://www.israelbusiness.org.il/financialassistance/loansandfunds. 
41 In the context of Israel's accession to the OECD , the OECD Secretariat made a detailed assessment 
of Israel's competition regime, which reflects the situation through February 2009 (OECD, 2011a).   Israel WT/TPR/S/272/Rev.1 
 Page 43 
 
 
sector (Chapter IV(4)(iii)(b)).  Agreements betw een airlines that have an adverse effect on 
competition are not covered by the exemption.   
85. The last remaining sectoral exclusions of the competition law are in maritime transport, and 
agriculture.  An exception applies to the growi ng 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 ).  This exclusion introduced in the previous 
law, of 1959, allows restrictive arrangements by cooperatives (kibbutzim, moshavim) and agricultural 
marketing boards.  Over time, the scope of the ex clusion has been tightened through jurisprudence 
and legislative amendments, so that it no longer a pplies to agricultural imports, retail food marketing, 
and processed agricultural products.42  With respect to maritime transport, in 2011 the Knesset 
repealed the statutory exemption for arrangements be tween shipping carriers, effective July 2012.  
The authorities expect that the statutory exemption will be replaced by a block exemption, which will 
apply to consortia arrangements. 
86. Under Israeli law, the abuse of a dominant position by a monopoly may constitute a criminal 
offence.  The General Director of the IAA has th e authority to declare a company a monopoly in the 
Official Gazette , if the company supplies or purchases more  than 50% of a product's or service's 
output in the domestic market (section 26);  monopsonis ts are thus covered.  The official list currently 
comprises 68 monopolies of goods and services.  Instruments for regulating monopolies include price controls (see below);  prohibitions of certain conduct,  such as abusive pricing;   instructions by the 
IAA of measures to be taken by the monopolist to pr event prejudice to competition;  or break-up of a 
monopoly by order of the Antitrust Tribunal. 
87. In 2011, the Knesset passed Amendment No. 11  to the Restrictive Trade Practices Act 
concerning the regulation of oligopolies.  The amendment was initiated by the IAA, based on the 
recommendation by an expert committee (Goshen Committee).
43  The IAA notes that many domestic 
industries comprise a small number of competitors and lack effective competition.  The amendment 
enables the IAA to make an official declaration of  a "concentration group" where an oligopoly exists 
and provides the agency with a new toolbox to in tervene.  Under the amended law, the Antitrust 
Commissioner may issue instructions to members of a concentration group to take certain steps in order to prevent harm to competition or to the public, or in order to improve the competitive situation.  
In addition, the Commissioner may file a petition w ith the Antitrust Tribunal for an order to divest 
holdings in certain cases of cross-ownership among members of a concentration group. 
88. Mergers are subject to prior approval by the IAA if:  (i) the merger creates a monopoly or one 
of the parties is a monopoly;  (ii) if the combined sales turnover in Israel exceeds NIS 150 million and the sales turnover of at least one of the companies exceeds NIS 10 million.  There is a compulsory pre-merger notification system for mergers exceed ing these thresholds.  Mergers are evaluated for 
anti-competitive effects in less than one month, on  average, by the IAA.  Post-merger remedies for 
mergers that did not receive approval, include di vestiture of companies if ordered by the Antitrust 
Tribunal.  The Income Tax Ordinance grants tax bene fits for structural changes and mergers, mainly 
to improve efficiency.
44  
                                                      
42 OECD (2011a), p. 86.  
43 Israel Antitrust Authority online information "Legislative Memorandum: Antitrust Bill (Amendment 
11), 5768-2008".  Viewed at:  http://www.antitr ust.gov.il/Files/HPLinks/Goshen%20Committee.pdf. 
44 The conditions are set out in chapter 5B of the Income Tax Ordinance. WT/TPR/S/272/Rev.1 Trade Policy Review 
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Enforcement 
89. Antitrust offenders risk imprisonment of up to five years, plus financial penalties 
(Table III.10).  Several criminal cases have been pu rsued since the last TPR of Israel (gas cartel, 
envelope cartel, traffic-light cartel, amongst others ).  However, effective enforcement of competition 
rules remains a challenge due to, inter alia , limited resources.  IAA resources have not significantly 
increased in recent years (NIS 24 million and 83 employees in 2011).  A significant part of the IAA's enforcement activities have been in the area of ex emption requests for restrictive arrangements and 
mergers. 
90. An immunity programme (leniency programme) wa s launched in 2005 to help the IAA in the 
detection of cartel-type restrictive agreements and th e criminal indictment of participants.  There has 
been little use of such immunity procedures.  There are also whistle-blowing procedures for 
individuals. 
Table III.10 
Antitrust law enforcement, 2006-11 
 2006 2007 2008 2009 2010 2011 
IAA decisions on requests for exemption of restrictive 
arrangements 82 54 68 72 75 73 
   Granted 57 41 48 53 51 54 
   Granted subject to conditions 23 11 19 11 23 17 
   Objections 2 2 1 8 1 2 
Monopoly determinations 0 0 0 0 0 2 
IAA merger decisions       
   Approved mergers 193 214 168 143 149 191 
   Approved with conditio ns 24 22 13 13 9 5 
   Blocked mergers 3 1 0 1 2 1 
IAA infringement investigations/decisions, of which:       
    Abuse of dominant position 1 0 0 0 0 0 
Bid-rigging   1 30 2 22 
    Price fixing 0 0 0 0 1 0 
    Mergers 1 1 0 1 1 1 
    Restrictive arrangements 2 1 3 4 2 1 
Cases involving the leniency programme 0 0 0 0 0 0 
Proceeding brought before the Antitrust Tribunal 5 5 5 3 8 8 
Total fines and administrative monetary  penalties  (NIS 000) 0 0  610 0 0 0 
Number of prison sentences 0 0 3 0 0 0 
Source:  Information provided by the authorities. 
Price controls 
91. Retail prices of a number of goods and service s remain under the control of the Government 
(Table III.11).  Prices are either fixed by the G overnment (e.g. certain utilities, and communication 
and transportation fees) or are subject to supervisi on, requiring approval before they may be increased 
(certain foodstuffs, school books, and medicines).   
92. Price oversight is exercised under the Law on the Supervision of Prices of Goods and 
Services of 1996, rather than under the competition law.   The Minister of Finance together with the 
ministers with jurisdiction over the product concerne d, may order price controls if (i) the product is Israel WT/TPR/S/272/Rev.1 
 Page 45 
 
 
controlled by a monopoly;  (ii) if the supply is cont rolled in a manner that substantially affects the 
market;  (iii) the suppliers or purchasers of the pr oduct face no or slight competition (e.g. fuel);  and 
(iv) the product is subsidized (e.g. medicines or pub lic transportation).  A price control order may also 
be issued if (i) the product is essential and the restricti on is in the public's best interest;  (ii) there is a 
shortage of the product due to speci al circumstances;  and (iii) pri ce regulation is needed to control 
inflation or to achieve the objectives of the Government's economic and social policy.  
Table III.11 
Regulated prices  
Controlled prices  Prices under supervision  
(Supervision of Prices of Goods and Services Law) 
Railway transport Margarine (products of Israel Food Industries only) 
Municipal taxes Milk (1% and 3% fat)
Electricity (for domestic use) Basic bread 
Water (for domestic use) Hard cheese (2 types) 
Mail services Cream (15% fat) 
Phone services (local  calls) Edible salt 
Vehicle fees Butter 
Vehicle mandatory insurance Table eggs 
Yoghurt (2 types) 
 School books 
 Medicines 
 Day-care centres and kindergarten
 Fuel (reduced-lead benzene and 96-octane benzene) 
 Domestic flights 
 Public bus transportation 
 Taxi rides 
 Selected bank commissions 
 
Source : Information provided by the authorities. 
(iii) Government procurement 
93. Israel is party to the plurilateral Agreem ent on Government Proc urement (GPA) and has 
participated in the negotiations of the revised GP A.  Under Israeli law, commitments under the GPA 
prevail over national pr ocurement regulations.45  Israeli government procurement, including for 
defence, totals about US$25 billion annually.46   
94. Procurement by central government entities, government authorities, statutory corporations, 
and government companies is governed by the Ma ndatory Tenders Law of 1992.  Procurement by 
local authorities is subject to the Municipalities Ordinance of 1967 (Sections  197 and 198) and the 
Municipalities Regulations (Te nders) of 1987, as amended. 
95. The main changes of Israel's government proc urement regime since its last TPR in 2006 are 
the reforms of the offset regime (Box III.1) and the Mandatory Tenders Regulations (1993).  The 
objective of the revised regulations, which entered in to force on 1 June 2009, is to streamline and 
decentralize the procedure for exempting procurem ents from public tender, while strengthening the 
basic principles of Israeli tenders legislation, incl uding transparency and the use of public tender as 
the main form of public procurement (priority to public/open tender, then limited public tender, then 
selective tender, and exemption from a tender).  The regulations are subject to further review.  The 
main revisions are set out below. 
                                                      
45 Article 5(A)(b) of the Mandatory Tenders Law of 1992 states that "Regulations under this Law shall 
apply to the extent that they do not conflict with an undertaking of the State in an international agreement", such 
as the GPA. 
46 OECD (2011c).  WT/TPR/S/272/Rev.1 Trade Policy Review 
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Decentralization of the exemption procedure   
96. An exemption committee has been establishe d in each government office, comprising the 
Director General of the office, the office's legal advisor (representative of the Attorney General), and 
the accountant (representative of the Accountant Gene ral), whose function is to grant exemptions 
from tenders, falling under the categories specified in the regulations.  This committee grants 
exemptions for transactions valued above NIS 150,000 and under NIS 4 million.  Exemptions from 
tenders over NIS 4 million and in some cases over NI S 2.5 million are taken to the Central Exemption 
Committee for a decision.  This committee is composed of representatives of the Ministry of Finance.  
Previously all exemptions from tenders over NI S 750,000 had to be approved by this central 
committee.  The reason for the change was to expe dite the exemption procedure.  The provisions 
regarding the decentralization have been im plemented on a provisional basis since 2009. 
Transparency  
97. Each exemption from public tender musts be published on the website of the Government 
Publications Office within five days;  this is a pr erequisite for the entry into force of the exemption 
decision.  The exemption committee may approve contracts of procurement from a single supplier 
only after verifying the availability of additional suppliers, by advertis ing, via the internet, five days 
before the intent to procure from a sole supplie r, and allowing any person to notify the Tenders 
Committee that they believe that there is more th an one supplier.  The Tenders Committee is obliged 
to inform this person of its decision.  A participan t in a tender may be allowed access to the protocols 
of the Tenders Committee, the winner's bid,  professional opinions submitted to the Tenders 
Committee, and the Committee's legal advisor's opinion. 
98. Since Israel's last TPR, a central website fo r government procurement has been established 
and new electronic procedures have been introduced  to improve competitive proceedings, including 
expeditious electronic auctions (a closed pool of te nderers that have to be registered and qualified in 
advance (Table III.12)).  Public tenders are publishe d in two daily Israeli newspapers, on the website 
of the Government Publications Office47, and in one daily or weekly Arabic publication.  The 
announcement must include:  type of contract, genera l information on the contract, option to continue 
the contract, period of the contract, conditions to pa rticipate in the tender, where to obtain the tender 
information and forms, and the place and date fo r submitting bids.  For a tender under the GPA, the 
information must also be published in an Englis h newspaper (either the Jerusalem Post or the 
International Herald Tribune-Ha'aretz).  The purchasing agency is required to notify all participants in 
the tender of its final decision.  
99. Israel's tendering regulations allow for price preferences to local suppliers (Table III.12). 
Preferences do not apply to contracts subject to the GPA provisions.  Price preferences for certain regions and local subcontracting have been eliminated since the last TPR.  
100. A party may challenge a tender at any stage of its process.  Contract awards may be 
challenged in the District Court in the region wh ere the tender was published.  The Court may cancel 
the awarding of the tender on the basis of incorrect pr ocedures or temporarily hold up the tender until 
the facts are checked. 
                                                      
47 Viewed at:  http://michrazim.lapam.gov.il. Israel WT/TPR/S/272/Rev.1 
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Table III.12 
Key features of Israel's govern ment procurem ent provisions  
Method Application 
Procurement procedures  
 No tender Contracts up to: 
    - NIS 50,000 for ministries othe r than Defence and Public Security; 
  - NIS 200,000 for government companies or subsidiaries 
  Other instances: a contract that is urgently need ed in order to prevent substantial harm; a contract 
pertaining to a transaction for which a tender is liabl e to cause substantial harm to national security; 
additional contracts within three years of the conc lusion of the first contract; contracts concerning 
marketing of agricultural produce, advertising in the me dia, cultural, artistic, en tertainment, or certain 
areas of medicine 
 Expeditious electronic 
auction  Contracts from:  NIS 50,000 to NIS 400,000 for minist ries, other than Defence and Public Security 
Other instances:  for the acquisition of goods with special properties and with "uncommon 
characteristics";   for the acquisition of medical e quipment; insurance; R&D activities 
 Public tender Contracts above: 
  - NIS 400,000 for ministries, other than Defence and Public Security; 
  - NIS 156,000 for government companies or subsidiaries 
 Extraordinary tender Contracts: 
  - transaction with respect to R&D or scientific work; 
  - when no technical specification is available; 
  - for educational or vocational training;  and 
  - when, for defence considerations, the Ministry will need to make investments in infrastructure 
 Shortened tender Expeditious electronic au ction for purposes of shortening proce dures, applicable to tenders of up to 
NIS 30,000 
Preferences for domestic industries 
 All international tenders (except for GPA tenders): price preference of up to 15% to domestic suppliers (at least 35% domestic  
content) 
Offset requirement  
 International public tenders with a value above US$5 million; mi nimum "co-operation" of 35% of the contract value (20% for 
GPA members).  The offset requirement can be satisfied in the fo rm of subcontracting to local companies, investment in local 
industry, know-how transfer, or acquisition of  goods made in Israel or of work or services in Israel (Mandatory Tenders 
Regulations (Mandatory Industrial Cooperation) of 2007). 
 
Source : Information provided by the Israeli authorities. WT/TPR/S/272/Rev.1 Trade Policy Review 
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Box III.1:  Israel's commitments under the revised Agreement on Government Procurement 
On 15 December 2011, the 15 par ties (representing 42 WTO Members)  to the plurilateral Agreement on 
Government Procurement of 1994 reached agreement on a revision of the Agr eement, encompassing both 
the text and the coverage of the Agreement.  The revised text of the GPA, while based on the same principles and main elements of the existing text, improves it in many ways.  For example, it brings it 
up-to-date with developments in information technology and procurement methods.  It expands access 
to government procurement contracts, and eliminates a number of discriminatory measures.  Parties' total new market access commitments have been estimat ed by the WTO Secretariat to be worth about 
US$80-100 billion annually.  The revised Agreement will enter into force once the parties (a minimum of 
two thirds) have deposited th eir instruments of acceptance. 
Israel has made a number of market-access commitments that enhance the opportunities for foreign 
companies to compete in its g overnment procurement market.  
(a) Several central government entities and government enterprises have been added to Israel's lists of 
covered entities and government en terprises that procure in accord ance with the GPA provisions: 
 The number of covered central government entities (Annex 1) increases by 5 to a total of 26.  The 
additions include the Small and Medium Business Ag ency, and the Central Bureau of Statistics.  
The threshold for construction contracts tendered  by covered central government entities will be 
reduced from SDR 8.5 million to SDR 5 million starting from the 6th year after entry into force for Israel of the revised GPA.  The thresholds  for supplies and services remain unchanged at 
SDR 130,000.   
 Nine government enterprises and other entities (Annex 3) have been added to Israel's list 
(e.g. Environmental Services Company Ltd., Arim Urban Development Ltd. and Marine Trust Ltd.). 
(b) Israel's covered procurement includes a number of additional service sectors (including financial   
services, commercial courier services;  education se rvices;  and sewage and refuse, sanitation, and 
similar services). 
Israel has invoked developing-country status pursuant to the GPA 1994, allowing it to implement offset 
arrangements to ensure a certain domestic content in government procurement contracts.  To satisfy the offset requirement, a foreign supplier may subcontract to local companies, invest in local industries or research and development, transfer know-how, purchase goods made in Israel, or in any other manner 
approved by the Industrial Co-operation Authority (ICA).  The policy is aimed at protecting and promoting 
the participation of Israeli small and medium-sized enterprises in government procurement contracts.  
In 2007, Israel reformed its offset policy.  In add ition to government agencies and state-owned companies, 
local authorities are required to follow an offset po licy. All international public tenders exceeding 
US$ 5 million (up from $0.5 million) must include a clause on industrial cooperation with Israeli entities, 
with undertakings of at least 35% of the value of the contract.  The higher  threshold for offsets is intended 
to make the mechanism more efficient.  Israel has notified the Committee on Government Procurement that 
from 1 January 2009 the offset level has been reduced from 28% to 20% for tenders covered by the GPA 
(WTO document GPA/97, 17 February 2009).   
Israel has undertaken to phase out its offset regime with respect to procurement covered by the GPA.  It 
will progressively reduce the current 20% offset level and eliminate offsets entirely after 15 years from the 
entry into force of the revised GPA for Israel.  Additionally, a threshold of SDR 3 million will be set below 
which offsets will not be applied.  After five years, Is rael will also start reducing the number of entities that 
apply offsets.  
Source:  WTO Secretariat; Anderson, Robert D. (2012), "Government Procurement in the WTO: 2011 as a 
Watershed Year", Paper delivered at the 2012 West Government Contracts Year in Review Conference, Wa shington, D.C.  (forthcoming);  and WTO document GPA/113, 2 April 2012.
 
 Israel WT/TPR/S/272/Rev.1 
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(iv) State-trading and state-owned enterprises 
State-trading 
101. According to the authorities, the Israel Groundnuts Production and Marketing Board 
continues to operate as a state-trading enterprise with exclusive export rights.  
State-owned enterprises  
102. State-owned enterprises continue to play an im portant role in the economy, notably in the 
electricity, water, transport, ports and defence industries.  There were 92 state-owned companies 
(government companies) in 201 1, contributing about 7% to GDP, and NIS 14. 7 billion in mainly 
defence-related export revenues.  State-owned enterprises include 2 companies that have been 
declared as monopolies under the Competition Law.   
103. Government companies are subject to the ge neral Companies Law and to the Government 
Companies Law of 1975 (the GCL).  The Government Companies Authority (the GCA) is responsible, inter alia , for supervising, restructuring and privatization.  Government-owned 
companies, are divided into three groups:  gove rnment companies (excluding state banks acquired 
pursuant to the Bank Shares Agreement), with the st ate holding more than 50% of the voting power or 
the right to appoint over half of the board member s;  government subsidiaries, which are separately 
incorporated entities subordinate to existing gove rnment companies where the government company 
alone or together with the State possesses over half of the voting power or the right to appoint over 
half of the board of directors;  and mixed compan ies, in which the State's ownership or control does 
not meet these thresholds. 
104. In 2003, the Government of Israel launched an  ambitious plan for the privatization of state-
owned companies.  Since then, some of the major (f ull) privatizations have involved Zim Integrated 
Shipping Services (200
3), El Al Israel Airlines Ltd. (2003 07 -), Bezeq Israel Telecommunications Ltd. 
(1997-2005), Oil Refineries Ltd. ( 2006-07), and Israel Discount Bank Ltd. ( 2010).  Since the last TPR 
of Israel, the Government has further reduced the State's minority stake in Bank Leumi Ltd.  The restructuring of the Israel Electric Corporation, th e largest state-owned enterprise, is being discussed, 
while the privatization of Eilat port is under way.  
105. Privatization of government-owned companies, other than banks, is administered by the 
GCA.  The Privatization Committee (consisting, inter alia , of the Minister of Finance, as chairman 
and the Minister of Justice) may initiate the privatization of any government company or mixed company, and implement structural changes or ot her preparatory measures necessary for privatization 
(subject to approval by the Finance Committee of th e Knesset).  Pursuant to the 1983 Bank Shares 
Arrangement, responsibility for the privatization of ba nks is with the Ministry of Finance, through a 
wholly owned government entity (MI Holding). 
(v) Trade-related aspects of intellectual property rights (TRIPS) 
106. Israel has a well-developed intellectual propert y system that corresponds to the country's 
status as one of the most innovative economies
48, with an active innovation policy, world class 
academic institutions49, and a continuous flow of research-ba sed, internationally oriented start-up 
companies50 that are usually dependent on intellectual property right protection.  Israel's innovation 
                                                      
48 "Capacity for innovation" ranking 6/142 in World Economic Forum (2011). 
49 "Quality of scientific research institutions" ranking 1/142 in World Economic Forum (2011). 
50 Senor and Singer (2009). WT/TPR/S/272/Rev.1 Trade Policy Review 
Page 50 
  
policy actively encourages domestic R&D in generic and applied technologies, including the 
development and acquisition of intellectual propert y rights, through a range of incentive programmes 
administered by the Office of the Chief Scientis t as well as through bilateral cooperation funds with 
partners such as the United States, Singapore, a nd the Republic of Korea (Chapter III(3)(i)).  The 
availability of domestic and foreign venture capita l further encourages start-up companies, which 
have been particularly active in the info rmation technology sector (Section (3)(ii)). 
107. This policy stance is reflected in Israel's partic ipation at the internati onal level as a member of 
the World Intellectual Property Organization (WIPO)  and as a party to most major international 
treaties on intellectual property rights, with the exception of the WIPO Copyright Treaty (WCT) and 
the WIPO Performances and Phonograms Treaty (WPPT).51  Israel joined the Madrid system for the 
international registration of Marks by ra tifying the Madrid Protocol on 31 May 2010.52  Israel has 
made further commitments with respect to IPR protection in bilateral agreements, including an 
undertaking to protect intellectual property righ ts "in accordance with the highest international 
standards, including effective means of enforcing such rights".53  
108. In February 2010, Israel reached an agreement with the United States54 to amend certain 
pharmaceutical IPR provisions (relating to patent term  extension, patent application publication and 
data exclusivity) in an effort to downgrade its st atus from the USTR Special 301 "Priority Watch List" 
to "Watch List".55  The amendment with respect to data ex clusivity was enacted in 2011 and the other 
amendments are in advanced stages of the legisl ative process. The United States kept Israel on the 
Priority Watch List in 2011, citing, among others , delays in the implementation of the agreement. 
109. The other significant development in Israeli inte llectual property law is the introduction of the 
new Copyright Act 200756 which, inter alia , replaces the doctrine of fair dealing with that of fair use, 
thus providing a more flexible approach to copyright exceptions.  
110. Table AIII.4 lists Israel's main intellectual pr operty laws and summarizes the protection they 
provide.  Israel's notified IPR contact point is the Commissioner of Patents, Designs, and 
Trademarks.57  Israel accepted the Protocol Amendi ng the TRIPS Agreement on 14 August 2007.58  
Israel's intellectual property system has never been challenged under the WTO dispute settlement 
system. 
Industrial property 
111. The Israeli Patent Office (ILPO ) is responsible for the administration of Industrial Property 
Rights in Israel.  Table III.13 provides statistical data  on applications for indu strial property rights.  
                                                      
51 Israel signed those treaties in 1997 but has not ratified them.  
52 Viewed at:  http://www.wipo.int/edocs/madrdocs/en/2010/madrid_2010_10.pdf. 
53 Euro-Mediterranean Agreement between the Europ ean Communities and Israel of 1995, Chapter 4, 
in WTO document WT/REG110/1. 
54 USTR-Government of Israel Agreement dated 18 February 2010.  Viewed at:  http://www.ustr.gov/ 
webfm_send/1664. 
55 The Special 301 lists identify states whose intellect ual property laws are seen as trade barriers to 
U.S. companies and products. 
56 Notified to the TRIPS Council in WTO do cument IP/N/1/ISR/C/10, 29 May 2008. 
57 WTO document IP/N/3/Rev.7/Add.1, 23 February 2004. 
58 WTO document WT/Let/582. Israel WT/TPR/S/272/Rev.1 
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Table III.13 
Applications for trade marks, in dustrial designs, and patents, and patents granted, 1998 and 2005-10 
 1998 2005 2006 2007 2008 2009 2010 
Trade mark applications        
Resident 2,103 2,816 3,475 3,293 3,198 2,734 2,569 
Non-resident 5,911 6,159 6,778 7,285 7,544 5,572 6,042 
Total 8,014 8,975 10,253 10,578 10,742 8,306 8,611 
Industrial designs applications        
Resident 1,555 - 1,192 - 1,312 - 1,200 
Non-resident 223 - 432 - 482 - 417 
Total 1,778 - 1,624 - 1,794 - 1,617 
Patent applications        
Resident 1,950 316 257 1,615 1,528 1,387 1,450 
Non-resident 3,106 4,808 7,239 6,394 6,214 5,387 5,856 
Total 5,056 4,124 7,496 8,009 7,742 6,774 7,306 
P a t e n t  g r a n t e d         
Resident 425 - 381 372 320 295 212 
Non-resident 1,596 - 2,203 2,117 1,535 1,720 3,512 
Total 2,021 - 2,584 2,489 1,855 2,015 3,724 
 
Source:  WTO Secretariat, based on WIPO data. 
Patents 
112. The majority of patent applications are filed in the area of computer/electronic technology 
(41%) and chemistry (31%), of which 50% are phar maceutical-related.  This reflects the strong 
industry focus in technology research and the pr esence of a successful generic pharmaceutical 
industry.  Other focus areas are biotechnology (1 7%) and telecommunications -related applications 
(11%).59 
113. Patent protection is granted, after examination by the Patent Office, if the application meets 
the patentability criteria.  Applicants may elect for either a full substantive examination or an 
abbreviated examination on the basis of acceptance of a parallel application by an approved examining authority abroad, such as the European Patent Office or the U.S. Patent Office.  In 2009, 
the Israeli Patent Office initiated a fast track fo r "green" patent applications, which provides that 
examination of applications that meet the criteria will begin within 3 months from the classification 
date.
60  Twenty-two such applications were filed in  2010, of which six have been rejected.   
114. Since January 2011, in order to remedy delays and to expedite registration, objections and 
other procedures, the paper publication of patent  applications has been replaced by electronic 
publication on the website of the ILPO.61  Provisions that enact Israel's commitment, in the 2010 
agreement with the United States, to promptly pub lish patent applications after 18 months are in 
advanced stages of approval in the Knesset La w and Constitutional Committee.  A three-month 
opposition period follows publication of the acceptance of a patent.  Applications that are not opposed, or on which opposition is rejected, will be  granted.  Patent pendency, the time until a 
decision on a patent grant is reached, is 36 to 48  months from entering the national examination phase 
depending on the field of technology.
62   
                                                      
59 ILPO (2010). 
60 M.N. 76 dated 13 December 2009. 
61 Patent Law 5727-1967, SEFER HA-HUKIM 5727, at 148, as amended; Patent Law 
(Amendment No. 8) 5771-2011. 
62 OECD (2011c). WT/TPR/S/272/Rev.1 Trade Policy Review 
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115. In view of Israel's large generic pharmac eutical industry, its pharmaceutical-related IPR 
provisions governing patent term ex tensions and test data protection have been a particular focus of 
attention in the process of its accession to the OE CD.  Under the current provisions, patent term 
extensions of up to five years are available to re medy delays in the granting of marketing approval for 
pharmaceutical products.  Where the pharmaceutical pr otected by the underlying reference patents is 
approved for marketing in the United States and in the EU-15, an extension in Israel will only be 
available if reference patents have been extende d in the United States and in at least one EU-15 
reference country (the "two state requirement").   Where such marketing approval has only been 
granted in one of these, then extension of the re ference patent in only one reference country is 
sufficient for a patent term extension in Israel .  Under legislation passed in December 2005, the 
duration of extension is limited to the shorter of the earliest-expiring extension in 21 reference 
countries63 or the reference extension of shortest duration in days. 
116. The effect of this approach is that in Israel, an extension of the pate nt term beyond the TRIPS 
minimum standard of 20 years will in most cases e xpire either before or at the same time as the 
earliest-expiring parallel patent term extension in th e reference countries.  This ensures that in cases 
where extended patent protection has been grante d among the reference count ries,  Israeli generic 
companies will usually be among the first permitted to  begin producing the now off-patent product for 
the Israeli market once all other legal prohibitions  have terminated.  Under the agreement reached 
with the United States64 in 2010, Israel has committed to redu ce the number of reference countries 
from 21 to 665 and to permit the filing of an application fo r extension even if the reference extensions 
under the "two state requirement" have not yet been gr anted.  As of April 2012, the amendment of the 
patent term provisions enacting these commitments has been approved by the Ministerial Committee 
on Legislation and is proceeding with the legislative process.  
117. With respect to test data protection, legislation passed in April 200566 introduced a data 
exclusivity regime protecting confidential test data of pharmaceutical firms from unfair commercial 
use.  The statute was amended in 2011 to extend th e period of protection in conformity with the 2010 
agreement between Israel and the United States.  U nder this regime, protection is available for test 
data regarding drugs with new active ingredie nts, not merely new indications.  Generic 
pharmaceutical companies may file applications based on bioequivalence during the exclusivity 
period, but marketing approval fo r such pharmaceuticals will only be granted after the protection for 
the originator's test data has expired.  The pr otection period, as amended in 2011, provides for a 
period of exclusivity of up to 6.5 years, calcu lated from the first product registration of the 
pharmaceutical in a number of developed refere nce countries including the United States and the 
European Union.  This linkage of the term of protection to the reference countries is intended to 
encourage early launch of protected innovative pharmac eutical products in Isra el.  Under the amended 
regime, marketing approval for pharmaceutical products in Israel should be granted within 12 months 
of an application.  This means that following a timely application for marketing approval, the 
effective duration of protection in Israel can last for five years.  Neither registration nor marketing 
approval is required in Israel for pharmaceuticals that are exported.67   
                                                      
63 The 21 countries are: Australia, United States, Icel and, Japan, Norway, Swit zerland, Austria, Italy, 
Ireland, Belgium, United Kingdom, Germany, Denmar k, the Netherlands, Greece, Luxembourg, Spain, 
Portugal, Finland, France, and Sweden.   
64 USTR–Government of Israel Agreement dated 18 Fe bruary 2010.  Viewed at:  http://www.ustr.gov/ 
webfm_send/1664. 
65 Five EU countries (United Kingdom, Spain, Ge rmany, France, and Italy) and the United States. 
66 Pharmacist's Ordinance (New Version) 5741-1981. 
67 OECD (2011c).  Israel WT/TPR/S/272/Rev.1 
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118. The courts have prevented the parallel importa tion of patented products where an exclusive 
licence existed, but no ruling has been made as to the rights of the patentee in this respect.  In a 2001 
case not directly concerning paralle l imports of patented products68, the Supreme Court indicated (by 
way of obiter ) that the Patents Law does not prevent paralle l imports.  From a regulatory perspective, 
a variation on the concept of parallel import of pha rmaceutical products exists in amendments to the 
Pharmacist's Ordinance in 1999,  and the Pharmacists Regulations (Preparations) 1986 in 200069, 
which provide requirements for obtaining an import permit; however that regulation has no bearing on 
patent rights.  An import permit will only be granted if  the preparations have been shipped to Israel by 
authorized traders from recognized countries70;  and if the preparations have been stored only in 
recognized countries.  Since 2001, there has been no further Supreme Court treatment of patent rights 
and parallel imports.  
119. Despite its active generic pharmaceutical i ndustry, which could potentially benefit from 
permission for exporting pharmaceuticals produced under compulsory licences, Israel has not yet implemented the WTO's Paragraph 6 System into domestic law. 
Trade marks 
120. Trade-mark applications in Israel are file d predominantly in the areas of scientific and 
computer equipment (Class 9:  16%), pharmaceu tical products (Class 5:  15%), and business-related 
services (Class 35:  11%).
71  Trade-mark pendency (the time un til a decision is taken on whether to 
grant the trade-mark right) is 18 months from application.  
121. Parallel importation of genuine goods does not  constitute trade-mark infringement under 
Israeli law, subject to various restrictions on re packaging, relabeling etc., as long as the goods were 
manufactured with the consent of the trade-mark owner. 
Geographical indications 
122. Israel's law provides extensive protection fo r geographical indications (Table AIII.4) 
reflecting its long-standing membership of the Lisbon Agreement, which requires domestic GI 
protection standards that are higher than t hose required under the TRIPS Agreement.  
123. A geographical indication is defined as "an i ndication that identifies in Israel goods as 
originating in a given geographical area of a member state, or a region or part thereof, where a given 
quality, characteristic or reputation of the good is ess entially attributable to its geographical origin"72;  
it extends to agricultural and industrial goods as well  as handicrafts.  Protection is provided against 
imitation even if the true origin of the product is indi cated or if the appellation is used in a translated 
form or accompanied by terms such as "ki nd", "type", "make", "imitation" or the like.73  F o r  t h e  
                                                      
68 Supreme Court, Case Number 5379/00 (19.6.2001), Bristol Myers Squibb v. the Health Minister, and 
others. 
69 OECD (2011c), p. 42;  and WHO online informati on, "Israel (2009)".  View ed at:  http://www.euro. 
who.int/en/what-we-do/health-topics/Heal th-systems/medicines/country-work2/a-selection-of-country-profiles/ 
israel-2009. 
70 Under the regulation, "recognized countries" are Au stralia, Canada, the EU member states, Iceland, 
Israel, Japan, New Zealand, Norway , Switzerland, and the United States. 
71 ILPO (2010). 
72 Section 1, Appellations of Origin and Geographical Indications (Protection) Law 1965, 5725-1965. 
73 Section 21B. WT/TPR/S/272/Rev.1 Trade Policy Review 
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resolution of conflicts between confusingly similar trade marks and geographical indications, a "first 
in time, first in right" principle is followed.74  
124. Despite this strong protection system, Israel has not been an extensive user of GI protection at 
the international level.  It has one term, "Jaffa a nd Jaffas" for oranges, registered as an appellation of 
origin for oranges under the Lisbon System since 1969.75  In July 2007, the Appeal Board of Israel 
reversed the decision of the Israel Commissioner of  Patents and Trade Marks, approving the renewal 
of the Israeli domestic registration of "Jaffa" and " Jaffas" in English, and for "Yafo", "Jaffa", and 
"Jaffas" in Hebrew for oranges.76  This decision was reached despite the fact that the registrant had 
allowed the designation to be used for similar oran ges grown in South Africa and sold in England;  
and for products other than citrus fruit, for instan ce, for yoghurts in the Netherlands containing traces 
of such fruits.  The court held that the validity of  the registration of the Israeli Jaffa would not be 
impaired by the licensed use of the designation as a trade mark in a non-Lisbon Agreement country77, 
even where the fruits grown are similar in quality to  those are produced in the appellation of origin 
country, as such an outcome would defeat the right of an owner in his intellectual property. 
125. Israel's nuanced approach to geographical indi cations protection is further illustrated in its 
participation in the WTO GI negotiations where it supports the "Joint Proposal"78, which calls for a 
voluntary GI register that has no legal effects at the national level.  
Copyright and related rights 
126. The introduction of the new Israeli Copyright Law in 2007 has modernized the copyright 
regime by reinforcing existing copyright and ne ighbouring rights and codifying recent legal and 
technological developments.79  The most notable reform c oncerns copyright exceptions and 
limitations, where the Act completes the transition from  a relatively restrictive "fair dealing" approach 
to the more flexible and open-ended approach of "f air use", an exceptional step that few other major 
jurisdictions have taken so explicitly.  
127. Works protected by copyright include original literary, dramatic, musical, and artistic 
works.80  These terms are broadly interpreted; for in stance, photographs are considered as artistic 
works, and cinematic and other audio-visual works are protected as dramatic works.  In addition, 
sound recordings and computer programmes also be nefit from copyright protection.  Courts have 
applied a relatively low threshold for originality.81  There are no formal requirements or registration 
necessary to protect a work.  A transfer of copyri ght must be in writing and the law provides that 
exclusive licences must also be in writing.  The genera l rule is that copyright protection exists for the 
life of the author plus 70 years.  However, sound recordings are protected for a maximum of 
50 years82, and photographs for the life of the author, plus 70 years. 
                                                      
74 Section 33A. 
75 Lisbon System for the Interna tional Registration of Appellations of Origin, Registration No. 512, 
17 October 1969. 
76 The Citrus Division of the Plant Production and Marketing Board v Israel Commissioner of Patents 
and Trade Marks [2007] 1011/05, Appeal Board (Jerusalem), 12 July 2007. 
77 South Africa is not a member of the Lisbon Syst em for the Protection of Appellations of Origin. 
78 WTO document TN/IP/W/10/Rev.4, 31 March 2011. 
79 The Israeli Knesset passed the new Copyright Law on 19 November 2007, which entered into force 
on 25 May 2008, repealing the Copyright Law 1911 (as amended) and the Copyright Ordinance 1924.  Viewed at:  http://www.wipo.int/wipolex/en/text.jsp?file_id=132095. 
80 Section 4 Israeli Copyright Act 2007. 
81 CA 513/89 Interlego A/S v. Exin-Line Bros. SA 48(4) P.D. 133, 163 [1994]. 
82 Section 41 Israeli Copyright Act 2007. Israel WT/TPR/S/272/Rev.1 
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128. With regard to copyright ownership, the 2007 Act introduces the works-made-for-hire 
doctrine.  While in principle the author of a work  remains the right owner, the work product of an 
employee undertaken during the course of employment remains the property of the employer unless otherwise agreed.  By contrast, rights in commissioned works belong to the author, unless otherwise 
agreed, excluding private portraits or photograph s of a private event (f or instance a family 
celebration) where by default the property of the work belongs to the commi ssioner of the work.  
129. With respect to limitations and exceptions, the 2007 Act adds a list of 11 new specific 
permitted uses for a work, the conditions for which ar e set out in each relevant section of the Act.  
The list is non-exhaustive and non-exclusive, thereby a llowing for the definition of the term "fair use" 
to be further developed through case law.  The most notable change brought by the Act is a general, 
open-ended permission to make fair use  of a work.  Section 19 is based on the fair use provisions 
under U.S. law, and authorizes fair use for purposes such as private study, research, criticism, review, 
journalistic reporting, quotation, or instruction a nd examination by an educational institution.  The 
courts are directed to measure the fairness of a par ticular use in light of the specific circumstances of 
the case, applying the four factors applied by U.S. c ourts:  (1) the purpose and character of the use;  
(2) the nature of the copyrighted work;  (3) th e amount and substantiality of the portion used in 
relation to the copyrighted work as a whole;  and (4) the effect of the use upon the value of the 
copyrighted work and its potential market. 
130. Although fair use is considered a defence, exem ption or privilege under U.S. Copyright law, 
the drafting of the 2007 Act could support the interp retation that fair use is a permitted use and not 
merely a defence
83, and a number of Israeli commentators argue that the permitted uses should 
constitute "user rights", not merely defences to an infringement action, which would constitute a 
considerable strengthening of users rights.84  A 2009 district court case interpreted the fair use 
provision in the 2007 Act to acknowledge "users' ri ghts" and "cultural rights" as interests that are 
worthy of protection and should be take n seriously in applying copyright law.85  The case concerned 
live streaming of British Premier League football matc hes over the internet and the court held that the 
purpose of the fair use doctrine was to preserve huma n rights and to ensure that all users have access 
to and can fully participate in cultural life and activities, including sporting events.86  The court argued 
that streaming could be considered as fair use and referred to other cases where social importance overrode the commercial purpose of the alleged infringement.
87  The case is under appeal.  
131. The 2007 Act also limits the type of works over which authors and creators are entitled to 
exercise moral rights, excluding, inter alia , software applications and records.88  Further, the Act 
provides for the first-time definitions of direct a nd indirect infringement of copyright, extending the 
latter to a number of situations relating to commercia l use of a copy of a protected work.  In addition, 
it raises the maximum statutory damages for copyright infringement  to NIS 100,000. 
                                                      
83 C.M. (Dist. T.A.)1146/08 The Football Association Premier League, Ltd. v. Ploni 08(3) Tak-District 
2514 (2008). 
84 For instance:  Elkin-Koren (2009), pp. 327; 342;  and Dotan et al. (August 2010), pp. 511. 
 85 Case No. 1636/08, Motion 11646/08, The Football Association Premier League Ltd. v. Ploni and 
others [in Hebrew], Tel Aviv District court, Judge Agmon-Gonen, 2 September, 2009. 
86 Case No. 1636/08, Motion 11646/08, The Football Association Premier League Ltd. v. Ploni and 
others [in Hebrew], Tel Aviv District court, Judge Agmon-Gonen, 2 September, 2009. 
87 K e l l y  v .  A r r i b a  S o f t  C o r p .   U n i t e d  S t a t e s  D i s t r i ct Court for the Central District of California, 
Southern Division.  77 F. Supp. 2d 1116; 1999 U.S. Dist;  Perfect 10, Inc. v. Amazon.com, Inc., 508 F.3d 1146 
(9th Cir. 2007);  Perfect 10 v. Google, Inc., et al., 416 F. Supp. 2d 828 (C.D. Cal. 2006). 
88 Section 45 Copyright Act 2007. WT/TPR/S/272/Rev.1 Trade Policy Review 
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132. With respect to parallel importation of copyright-protected goods, section 1 of the 2007 
Israeli Copyright Act defines the term "infringing copy" as including the importation of a copy that would infringe copyright if it had been made in Isra el.  However, a copy made under the authority of 
the copyright owner in the country of manufacture is considered a genuine good and not an infringing 
copy.
89 
Enforcement 
133. The Customs Authority may detain merchandise  suspected of trade mark or copyright 
violation and notify right holders, who are given the opportunity to inspect the suspected goods prior to their release.  If a court action is initiated,  the goods will be detained until the end of the 
proceedings.  IPR infringements and violations are subject to fines (up to NIS 2 million) or 
imprisonment (up to five years).  Civil remedies ar e available in all cases of infringement, and piracy 
can further lead to prosecution for tax evasion.  The number of intellectual-property-related services 
and detainments increased signifi cantly in 2010 (Chart III.4). 
Chart III.4
Intellectual-property-related seizures of imported goods
Sourc e:       Ministry of Finance, Israel Customs Directorate.0100200300400500600700800
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Clothing and 
footwear 35%
Multimedia devices 21%Toys and 
clocks 25%Purses, wallets, 
and bags 7%Other 12%No. of seizures and detainments 
(excluding counterfeit cigarettes) Distribution of intellectual-property-related 
seizures, by type of goods (2010)
 
 
                                                      
89 Section 1 Copyright Act 2007; see also Internationa l Intellectual Property Alliance (2011), p. 197.