Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 88

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 4
Chunk 88
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 of monitoring compliance in each country and working with national authorities to ensure compliance with the Narcotics Convention. The Narcotics Convention has 186 state parties, including all the countries in which we operate and plan to operate.
 
From an export perspective, in January 2019, the Israeli government approved the export of pharmaceutical-grade cannabis and cannabis-based products. Nevertheless, during the fourth quarter of 2020, the Israeli government, as part of a pilot project to issue export permits for licensed producers, granted us a temporary export permit. The pilot program (as well as our temporary export permit) was set to expire on December 31, 2020, but was subsequently extended to March 2021. The MOH extended the export pilot program multiple times, and it has now entered into its commercial phase. Export from Israel is generally permitted as long as the exporter complies with the regulations of the importing country.
 
From an import perspective, in January 2020, due to a shortage in the Israeli market of pharmaceutical-grade cannabis, the Israeli MOH and the IMCA expedited the process of approving import licenses of such cannabis, and for the first time ever, pharmaceutical-grade cannabis and cannabis-based products were imported into Israel. In October 2020, the IMCA published a directive that included updated qualifications for a licensee to receive an import license and the guidelines under which such import may take place. From time to time, the MOH revises the guidelines for imports, and the Company has consistently followed all the updates, ensuring a steady flow of imports. On January 18, 2024, we were notified that the Trade Levies Commissioner of the Israeli Ministry of Economy and Industry had initiated a public investigation into alleged dumping of medical cannabis imports from Canada to Israel. On November 10, 2024, the Commissioner announced a final determination proposing the imposition of a 175% anti-dumping duty on imports on Canadian licensed producers. Following the Commissioner’s determination, in April 2025, the Israeli Minister of Economy accepted the recommendation to impose the proposed duty. However, on April 24, 2025, the Israeli Minister of Finance submitted a formal objection to the Minister of Economy regarding the imposition of the duty. On April 29, 2025, the Israeli Minister of Economy and Industry submitted a formal response opposing the Minister of Finance’s position, reaffirming his decision to proceed with the anti-dumping duty process.
 
Regulation regarding CBD
 
On December 8, 2020, Israel’s Minister of Health