WORLD TRADE  
ORGANIZATION  G/LIC/N/3/ISR/1 
19 October 2006 
 (06-5056) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the  
Agreement on Import Licensing Procedures  
 
ISRAEL 
  
 The following notification, dated 16 October 200 6, has been received from the Delegation of 
Israel. 
 
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Outline of Systems
 
 
1. Give a brief description of each licensing system  as a whole and, with respect to each, reply 
to the following questions as relevant, placing all of  the material with respect to a given system in 
sequence together, and using cross references as appropr iate when elements which have already been 
described are also present in another system. 
 The import licensing system is regulated primarily by: 
 
• Free Import Order of 2006 (replacing Free Import Order of 1978), Article 5(4) and 
Schedules 1 - 2, for purposes of citizens' security and safety, and consumers' welfare.  
 
• Israeli Customs Tariff and Exemptions and Ta x Order of 2006, Schedule 5; for purposes of 
MFN tariff quota management, under the GATT.  
 
 These Orders establish the list of goods s ubject to import licensing. The first Order is 
administered by the Israe li Ministry of Industry, Trade & Labour,  at the Foreign Trade Administration. 
The second Order is administrated by  the Israeli Tax Authority at th e Israeli Ministry of Finance. 
 
Purposes and Coverage of Licensing  
 
2. Identify each licensing system maintained and state what products, appropriately grouped, 
are covered. 
 Schedules 1 and 2 of the Free Import Order of 2006 list products subject to non-automatic 
licensing.  
 
Israeli Customs Tariff and Exemptions and Purc hase Tax on Goods Order of 2006, Schedule 5, 
regulates the non-automatic li censing of GATT MFN tariff quotas. 
 
                                                      
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/ISR/1 
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  3. The system applies to goods originating in and coming from which countries? 
 The systems mentioned above apply to goods  originating in and coming from all WTO 
countries.   
4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its 
purposes?  Have alternative methods of accomplishi ng the purposes been considered and if so which?  
Why have they not been adopted? 
 Free Import Order of 2006: Import licenses are required for imports for safety and security 
reasons.  
Israeli Customs Tariff and Exemptions and Tax Order of 2006, Schedule 5:  Import licenses are 
required for imports for tariff quota management purposes.  
 
5. Cite the law, regulation and/or administrative order under which the licensing is maintained.  
Is the licensing statutorily required?  Does the legislation leave designation of products to be 
subjected to licensing to administrative discretion?  Is it possible for the government (or the executive 
branch) to abolish the system without legislative approval? 
The licensing system is based on official  regulations (promulgated under law).  
 
Regarding the Israeli Customs Tariff and Exemp tions and Tax Order of 2006, Schedule 5, no 
administrative discretion is allowed for the government in order to abolish the system without legislative 
approval. 
 Regarding the Free Import Order of 2006, Schedul es 1-2 list the tariff items that require a 
licensing process. Under special circumstances there exists the possibility of granting an exemption 
from these requirements.  
Procedures
 
 
6. For products under restriction as to the quan tity or value of imports (whether applicable 
globally or to a limited number of countries or wh ether established bilaterally or unilaterally): 
I. Is information published, and where, concerning allocation of quotas and formalities of filing 
applications for licences?  If not, how is it brought  to the attention of possible importers?  Of 
governments and export promotion bodies of  exporting countries and their trade 
representatives?  Is the overall amount publishe d?  The amount allocated to goods from each 
country?  The maximum amount allocated to each importer?  How to request any exceptions or 
derogations from the licensing requirement? 
 
 For products under restriction, according to Israeli Customs Tariff and Exemptions and 
Purchase Tax on Goods Order of 2006, Schedule 5: The quota system is administered by the Ministries 
of Agriculture and Rural Development (for agricultu ral products and fresh food) and Industry, Trade, 
and Labor (for processed food).  At the end of each calendar year, both Ministries announce the opening of the quotas on their websites and in two daily newspapers. The announcement includes 
information on source countries, HS codes, and quot a volumes. There are no restrictions on eligibility. 
 
II. How is the size of the quotas determined:  on a yearly, six-monthly or  quarterly basis?  Are 
there cases where the size of quota is determined  on a yearly basis but li cences are issued for  
imports on a six-monthly or  quarterly basis?  In the latter ca se, is it necessary for importers to 
apply for fresh licence on a six- monthly or quarterly basis? G/LIC/N/3/ISR/1 
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 Quotas are determined on an annual basis. All import licenses issued by the Ministry of 
Industry, Trade and Labor and most licenses issued  by the Ministry of Agriculture and Rural 
Development, are valid from 1 January to 31 July.2  In midyear, the Ministries publish another notice, 
inviting importers to submit requests for the qua ntities not utilized. Those licenses are valid from 1 
September to 25 December.  
 III. Are licences allotted for cert ain goods partly or only to dom estic producers of like goods?  
What steps are taken to ensure that licences allocated are actually used for imports?  Are 
unused allocations added to quotas for a succeed ing period?  Are the names of importers to 
whom licences have been allocated made know n to governments and export promotion bodies 
of exporting countries upon request?  If not, fo r what reason?  (Indicate products to which 
replies relate.) 
 
 Licences are allotted to importers regardless of whether they are produc ers of like products.  
Guidelines determine that licensees that do not utilize  the licences issued to them cannot submit requests 
for licenses for these products in the following year .  Unused allocations are not added to quotas for the 
next year.  The list of importers to whom licences ha ve been allocated is publis hed on the web site of the 
Ministries.   IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period 
of time allowed for the submissi on of applications for licences? 
 
 From the time of announcing the opening of quot as, a period of four weeks is allowed for the 
submission of applications for licences. 
 
V. What are the minimum and maximum length s of time for processing applications? 
  Applications for licences are pr ocessed within 1 to 2 months. 
 VI. How much time remains, at a minimum, betw een the granting of licences and the date of 
opening of the period of importation? 
 
 Import licences are granted on the date of ope ning of the period of importation. If necessary, the 
licences are extended for another period of time. 
 VII. Is consideration of licence applic ations effected by a single admi nistrative organ?  Or must the 
application be passed on to other organs for visa, note or approval?  If so, which?  Does the 
importer have to approach more  than one administrative organ? 
 
 In most cases, licence applications are consid ered by one administrative organ. The specific 
organs which must be approached, relevant to th e product, are specified in Schedules 1 and 2 of the 
Free Import Order of 2006. 
 
VIII  If the demand for licences cannot be fully satisf ied, on what basis is the allocation to applicants 
made?  First come, first serve d?  Past performance?  Is there a maximum amount to be 
allocated per applicant and, if so, on what basis is it determined?  What provision is made for 
new importers?  Are applications exam ined simultaneously or on receipt? 
 
 Licences are issued mainly on the basis of past  performance.  A portion of the quota is allocated 
to new importers.  Applications are examined on receipt. 
                                                     
 
2 The validity of some licences issu ed by the Ministry of Agriculture  is shorter.  In these cases, 
importers may submit requests throughout the year. G/LIC/N/3/ISR/1 
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IX. In the case of bilateral quotas or export restrain t arrangements where export permits are issued 
by exporting countries, are im port licences also required?  If so, are licences issued 
automatically? 
  There are no such arrangements.  
 X. In cases where imports are allowed on the basis of export permits only, how is the importing 
country informed of the effect given by the ex porting countries to the understanding between the 
two countries? 
 
 Non applicable.  XI. Are there products for which licences are is sued on condition that goods should be exported 
and not sold in the domestic market? 
 
 No.  
7. Where there is no quantitative limit on importati on of a product or on imports from a 
particular country: 
(a) How far in advance of importation must applicat ion for a licence be made?  Can licences be 
obtained within a shorter time-limit or for goods  arriving at the port without a licence (for 
example, owing to inadvertency)? 
 
 There is no requirement for a certain period of time between the application for a licence and 
the importation of the goods. Licences can be obt ained for goods arriving at the port without a 
licence.  
 
(b) Can a licence be granted  immediately on request? 
  Under certain circumstances, a licence can be granted immediately on request. 
 
(c) Are there any limitations as to the period of  the year during which application for licence 
and/or importation may be made?  If so, explain. 
 
 There are no limitations as to the period of the year during which application for licence and/or 
importation may be made. 
 
(d) Is consideration of licence applic ations effected by a single admi nistrative organ?  Or must the 
application be passed on to other organs for visa, note or approval?  If so, which?  Does the 
importer have to approach more  than one administrative organ? 
 
 An importer has to approach only one administra tive organ in connection with an application. 
 
8. Under what circumstances may an application fo r a licence be refused other than failure to 
meet the ordinary criteria?  Are the reasons for any  refusal given to the applicant?  Have applicants a 
right of appeal in the event of refusal to issu e a licence and, if so, to what bodies and under what 
procedures? 
 None.  The reasons for any refusa l are given to the applicant in wr iting.  In the event of refusal 
to issue a licence, the applicant has a right of  appeal by petitioning the High Court of Justice. 
  G/LIC/N/3/ISR/1 
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  Eligibility of Importers to Apply for Licence  
 
9. Are all persons, firms and institutions  eligible to apply for licences: 
(a) under restrictive licensing systems? 
(b) under non-restrictive systems? 
 
If not, is there a system of registration of persons  or firms permitted to engage in importation?  
What persons or firms are eligible?  Is there a registration fee?  Is there a published list of 
authorized importers? 
  All persons, firms and institutions are eligible to apply for licences. 
 
Documentational and Other Requirem ents for Application for Licence
 
 
10. What information is required in applications?  Submit a sample form.  What documents is the 
importer required to supply with the application? 
 A sample application form is attached. There are no standard documents that apply for all 
products.  
11. documents are required upon actual importation? 
 Upon actual importation, an importer is  required to submit the import licence. 
 
12. Is there any licensing fee or administrative charge ?  If so, what is the amount of the fee or 
charge? 
 There is no licensing fee or administrative charge, except for standardization tests performed by 
the Standards Institution of Israel. 
 
13. Is there any deposit or advance pay ment requirement associated with  the issue of licences?  If 
so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement. 
 No. 
 Conditions of Licensing
 
 
14. What is the period of validity of a licence?  Can the validity of a licence be extended?  How? 
 The validity of the licences varies  according to the nature of th e goods. It ranges from a licence 
per shipment to a licence for one year from the date of issue. The extension of the licence will be 
considered if the applicant so requests. 
 
15. Is there any penalty for the non-utilization of a licence or a portion of a licence? 
 There is no penalty for the non-utili zation of a licence or a portion of it. 
 
16. Are licences transferable between importers?  If so, are any limitations or conditions 
attached to such transfer? 
 Licences are transferable between importers, unless otherwise stated in the license. 
 G/LIC/N/3/ISR/1 
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  17. Are any other conditions attached to the issue of a licence: 
(a) For products subject to quantitative restriction? 
 
(b) For products not subject to quantitative restriction? 
 
 No. 
 
Other Procedural Requirements
 
 
18. Are there any other administrative procedu res, apart from import licensing and similar 
administrative procedures, required prior to importation? 
 There are no other administrati ve procedures, apart from impor t licensing, required prior to 
importation.  
19. Is foreign exchange automatically provided by the banking authorities for goods to be 
imported?  Is a licence required as a condition to obtaining foreign exchange?  Is foreign exchange 
always available to cover licences issu ed?  What formalities must be fulfilled for obtaining the foreign 
exchange? 
 Foreign exchange is automatically provided by the banking authorities for goods to be imported.    
 
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