This bilateral trade Agreement eliminates customs duties between the United States and Israel. It was signed in 1985 and came into full effect on January 1, 1995. Although the Agreement has no expiration date, it can be terminated by written notification of either party. Under this Agreement, American companies exporting U.S. goods to Israel can gain greater market access, reduce transaction costs, increase sales, enhance export revenues and become more competitive in the Israeli marketplace.
Israeli companies exporting their goods to the U.S. receive similar benefits.
A Stevedoring Fee of 0.5 percent of the CIF is imposed when products are unloaded from ships. A Compulsory Levy is imposed at various rates on the CIF value of food and agricultural products. A Purchase Tax is applied to specific products, primarily luxury and consumer items, whether or not they are imported or produced locally. The purchase tax is levied on the wholesale price of the item. The VAT rate is presently 17 percent.