Docstoc

Tariffs'

Document Sample
Tariffs' Powered By Docstoc
					                              Customs Tariff’s in Palestine and Israel


                                           Contents


1. Introduction
2. The harmonized system
                 What is the harmonized system
                 Importance of harmonized system
                 What is tariff Book
3. Types of duties
                 Tariffs
                 Customs duty
                 Tama & purchase tax
                 Value Added Tax (VAT)
4. Classification of goods:
                 HS codes and composition
                 Method of classifying goods
                 Example 1: the classification of spades and shovels (Agricultural Tools)
                 Example 2: Cashew nuts
                 Tariffs Calculation (Annex 1)
                 Where to go for additional information




5. Customs Tariffs, Exemptions and Purchase Tax on Goods/ Order, May-2009
6. Link to relevant websites


Annex1: Classification and calculation of duties
Annex 2: Lists A1, A2 & B
1. Introduction
This manual is intended to help the Palestinian trader better understand Customs Tariffs
in Israel and Palestine, it will provide an explanation of the tariff book and how to use it,
it will provide an explanation of tariffs, and it will guide the user on where to find
additional information.


Before we begin a detailed explanation of tariffs, we should explain how Palestinian
customs began to use the tariff book. Palestinian external trade is regulated by the terms
of the Protocol on Economic Relations signed in Paris between Israel and the Palestinian
Authority (PA) on 29 April 1994. The Protocol’s framework for development was based
on linking the Palestinian economy to the Israeli economy on more equitable terms than
in the past. Although the accords allow the PA a significant degree of economic decision
making, Palestinian trade policy options are included with the Israeli under one customs
envelope.
The accords also allow Palestinian traders to benefit from free trade agreements signed
between the PA and other countries. The PA has the freedom to negotiate and conclude
trade agreements, for the benefit of the PA, as long as the same import policy is applied
in Israel.


For third party trade, the Paris Protocol regulates the relations between Palestine and the
rest of the world as follows:
1. Palestinian products are not subject to any export restrictions.
2. Trade to and from Palestine has full access to Israeli international gateways of entry
    and exit. Palestinian imports and exports are granted equal treatment at the Israeli
    ports of entry and exit.
3. Israeli regulations on customs, purchase tax and standards apply to Palestinian
    imports with the exception of goods listed in list A1, A2 and B. The Palestinian
    Authority has the right to apply, within pre-defined quotas, its customs rates,
    purchase tax and other import charges on those imports. In addition, the Palestinian
    Authority has autonomy in importing goods listed in A1 and A2 regardless of Israeli
    standard requirements. Goods imported under List A1 must be locally produced in
   Jordan, Egypt or in other Arab countries. Goods imported under List A2 can be
   imported from Arab, Islamic or other countries. Goods imported under List B are not
   subject to quantitative restrictions but are subject to Israeli standards.
   Israeli import policy prohibits trade with several countries, mainly those that do not
   have diplomatic relations with Israel, including a number of Arab states such as
   (Lebanon, Syria, and Iran). The only exceptions are those imports in list A1, A2 and
   B.


2. What is the Harmonized Commodity Description and Coding System
(HS)?:
The Harmonized Commodity Description and Coding System also referred to as
Harmonized System or simply HS, is a multipurpose international product nomenclature
developed and administered by the World Customs Organization (WCO).


The HS is an internationally accepted numerical language that is comprised of about
5,000 commodity groups. Each of these groups is identified by a numerical code,
arranged in a legal and logical structure and supported by well-defined rules to achieve
uniform classification. The first 6 digits of the HS are used universally, and then each
individual country is permitted to add to the original 6 to suit its own tariff and statistical
needs, which at times leads to the creation of 8, 10, and even 12 digit national codes.


Palestine and Israel are two of the more than 200 countries and economies that use the
HS as a basis for their Customs tariffs and for the collection of international trade
statistics. Palestine and Israel each has its own Tariff Book, which are identical in terms
of classification codes, rules and tax rates.               The Palestinian Tariff Book
http://www.psc.ps/taarif.html is a direct translation of the Israeli Tariff Book, which is
available in English-http://62.219.95.10/TaarifEnglish/TaarifList.aspx and Hebrew -
http://62.219.95.10/TAARIFCUSTOMSEXPORT/TaarifList.aspx). However because of
the lengthy time requirements for translating and publishing the book, a Palestinian trader
may find more recent and up to date information when using the Israeli book.
What is the Importance of Harmonized System “HS” Code?


As international trade becomes more complex and governments around the world
demand greater effectiveness from their Customs Administrations, nation after nation are
turning toward the WCO’s Harmonized Coding and Description System (Harmonized
System – HS) to be a central pillar of their requirement for fiscal and regulatory
compliance. The HS contributes to the harmonization of Customs and trade procedures,
and the non-documentary trade data interchange in connection with such procedures, thus
reducing the costs related to international trade.


Governments use HS codes to facilitate their operations in a number of ways including:

      Calculation of customs tariffs
      Collection of international trade statistics
      Determining rules of origin
      Collection of internal taxes
      Facilitating   trade    negotiations    (e.g.,   the   World   Trade    Organization
       http://www.wto.org/english/tratop_e/cusval_e/cusval_info_e.htm         schedules   of
       tariff concessions),
      Tracking transport tariffs and statistics
      Monitoring of controlled goods (e.g., wastes, narcotics, chemical weapons, ozone
       layer depleting substances, endangered species)
      Tracking areas of customs controls and procedures, including risk assessment,
       information technology and compliance.

Palestinian Customs, which is spearheaded by the Palestinian Ministry of Finance, uses
“Tawasol” or Asycuda World to calculate duties, complete customs declaration forms,
calculate valuation, and store customs historical data.


For Palestinian and Israeli Customs officials, who may be placed randomly at roadside
checkpoints to check road transport consignments, HS provides vital information to assist
them to carry out their duties. Without the vital HS classification code there would be
confusion, lengthy searches and delays. To other officials dealing with waves of sea
cargo, airfreight consignments or express mail it has become a vital partner. We can
expect that this dependence will increase as 21st century commercial and social demands
evolve.


Businesses on the hand rely on HS codes to calculate the final cost of imported items and
components and to spot international selling and sourcing opportunities. Following the
Paris Protocol and the trade agreement that were then signed between the PA and the
Israeli government with the U.S., Europe, and the Arab countries, the Palestinian
importer can make such advantage by spotting these countries searching for targeted
items to import, to decrease cost when importing exempted items for example please
clarify.

For a Palestinian importer/exporter, the HS is a very important tool that should serve as
the guideline or the basis for all international transactions. The successful Palestinian
trader will use the Tariff Book to help determine the final cost of a product he may be
indenting to buy or sell, and will use that information to help assess the feasibility of
trading that particular product.


3. Types of duties:

There are several types of duties that are important for Palestinian traders understand and
be able to calculate.


Tariffs:
A tariff is a duty imposed on goods when they are moved across a political boundary.
Tariffs are usually associated with protectionism, the economic policy of restricting trade
between nations. For political reasons, tariffs are usually imposed on imported goods,
although they may also be imposed on exported goods.


When shipments of goods arrive at a border crossing or port (airport or seaport), customs
officers inspect the contents and charge a tax according to the tariff formula, which will
be discussed in more detail throughout this manual. The goods are not allowed to
continue transit until the duty is paid, making this the easiest and most cost effective
method for customs officials to collect duties.


To determine the appropriate duty for an imported/exported product, the Palestinian
trader should check the Tariff Book and then work closely with his Palestinian Customs
Broker or his Israeli Customs Agent to ensure that customs declaration forms are
prepared and all other transport documents are completed and handed over to customs
officials in an accurate and timely manner. The accurate classification of goods and
preparation of documents in accordance with the tariff book and tariff requirements will
help to facilitate the release of goods from the port.


The role of the Palestinian Customs Department is limited in this regard. Currently,
Palestinian Customs Officials do not have access to ports and crossings, which limits
their role to checking shipping documents after the shipment is released from Israeli
customs and has arrived in the West Bank.


There are various types of tariffs:

   An ad valorem tariff is a tax based on a set percentage of the value of the good that is
    being imported. Sometimes this kind of tariff can become problematic, for instance
    when the international price of a good falls, so does the tariff associated with that
    good, making domestic industries more vulnerable to competition. Conversely, when
    the price of a good rises on the international market, so does its tariff. However, a
    country is often less interested in protection when the price of a good is higher.
    Another problem associated with this type of tariff is inappropriate transfer pricing,
    where a company declares an understated value for the goods being traded with the
    aim of reducing overall taxes due.

   A specific tariff is a tax based on a specific amount of money that does not vary with
    the price of the good.
Example: Calculating the ad valorem and the specific tariff

Let's assume a Palestinian trader wants to import a carpet with a value of 1000 NIS.
How can the trader calculate the ad valorem and specific tariff for the carpet? First, he
must look up the tariff code for the carpet in the Palestinian or Israeli tariff book.
Click here for a more detailed explanation of how to look up HS codes. For now, let's
assume that the Palestinian trader knows the HS code for carpets is 57 01 1000 from
section 11 in the tariff book, as seen below.

Sample from the Palestinian Tariff Book
Sample from the Israeli Tariff Book in English
                                     Explanation

How can a trader calculate the ad valorem and specific tariff for a carpet with a
value of 1000 NIS?

As you can see from the examples above, the general tax rate for carpets is:

                      4% + 10.66 per M3 but no more than 22%

   So the tax rate would be calculated as follows:

Ad Valorem Tariff: The ad valorem tariff is 4%. So for a carpet with a value of
1000 NIS and a volume for example of 3 M3, the ad valorem would be:

                              1000 NIS * 4% = 40 NIS

Specific Tariff: The specific tariff is 10.66 NIS per M3. So for a carpet with a
volume of 3 M3, the specific tariff would be:

                              10.66 * 3 M3 = 31.98 NIS

Total Duties: with an ad valorem of 40 NIS and a specific duty of 31.98 NIS, the total
duty would be:

                          40 NIS + 31.98 NIS = 71.98 NIS

As per the general tax rate above, total duties cannot exceed the 22% value of goods,
which is:

                             1000 NIS * 22% = 220 NIS

Based on the above, the importer should pay 71.98 NIS customs plus the VAT on total
cost of goods including customs as follows:

             1000 NIS + 71.98 NIS = 1071.98 NIS * 14.5% = 155.4371 NIS
             A protective tariff, also known as Tama, is intended to artificially inflate prices of
              imports and protect domestic industries from foreign competition especially from
              competitors whose host nations allow them to operate under conditions that are illegal
              in the protected nation, or who subsidize their exports. Currently, the Tama is applied
              to some imported goods to Palestine, as in the example below for imported Alcohol
              under HS code 20 08 3020.

          Example: Calculating the Tama

          Let's assume a Palestinian trader wants to import an alcoholic beverage with a unit cost of
          100 NIS. How is the Tama calculated?

          Sample from the Palestinian Tariff Book




Protective tariff




              Sample from the Israeli Tariff Book in English
Protective tariff
                                       Explanation

 How can a Palestinian trader calculate the Tama on the import of an alcoholic
 beverage with a unit cost of 100 NIS?

 As seen in the Israeli tariff book, the tax rates on alcoholic beverages are listed below:




 So a Palestinian trader importing an alcoholic beverage with a unit cost of 100 NIS
 would pay duties according to the following:

 Customs tax: the customs tax rate is 12%, so the calculation for the tax rate is:

                                100 NIS * 12% = 12 NIS

 Purchase tax:

 Tama: it is important to note that the Tama is not to be paid; it is used to increase the
 value of goods for purchase tax purpose only. The calculation is as follows:

                                100 NIS * 60% = 60 NIS

                              60 NIS + 100 NIS = 160 NIS

 Purchase tax: after the Tama is calculated, the purchase tax can be calculated as
 follows:

                                160 NIS * 45% = 72 NIS

 Total duties: the total duties to be paid on an alcoholic beverage with a unit cost of
 100 NIS is:

                 12 NIS (customs tax) + 72 NIS (Purchase tax) = 84 NIS

 VAT: the VAT payment would be:
There are several other tariffs that are worth noting, although they are not widely used to
                   100 NIS + 84 NIS = 184 NIS * 14.5% = 26.68 NIS
There are several other tariffs that are worth noting, although they are not widely used in
trade in Palestine and Israel:

       A revenue tariff is a set of rates designed primarily to raise money for the
        government. A tariff on coffee imports imposed by countries where coffee cannot
        be grown, for example raises a steady flow of revenue.
       A prohibitive tariff is one so high that nearly no one imports any of these items.
       An environmental tariff, similar to a 'protective' tariff, is also known as a 'green'
        tariff or 'eco-tariff', and is placed on products being imported from, and also being
        sent to countries with substandard environmental pollution controls.



Customs Tariff:


A customs tariff is a kind of indirect tax which is realized on goods of international
trade. In economic sense, it is also a kind of consumption tax. Duties levied by the
government in relation to imported items are referred to as import duty. In the same vein,
duties realized on export consignments are called export duty. Tariff which is actually a
list of commodities along with the leviable rate (amount) of Customs duty is popularly
understood as Customs duty.


TAMA & Purchase Tax:


Governments imposes tax’s on some products, primarily luxury and consumer items.


   Purchase tax is imposed on a long list of products, whether imported or local
    manufactured. On some products the rates are quiet high.


   The Tama system results in higher taxation on imported goods than on domestic
    products. "Tama" (the Hebrew acronym for "additional rate of increase", also called
    "Import Increment Rate") on imports. Tama was designed to artificially raise the
    declared value of an imported product for purposes of calculating purchase taxes. The
   uplift assessment (TAMA), which increases the CIF value (cost, insurance and
   freight) to a "wholesale value" for the imposition of a Purchase Tax, even when no
   tariff applies. This acts somewhat like an import surcharge. Purchase taxes are
   imposed on certain product categories only, such as: refrigerators, air conditioners,
   alcoholic beverages, certain automotive products, cosmetic products and household
   appliances.


Value Added Tax (VAT)


A tax on the estimated market value added to a product or material at each stage of its
manufacture or distribution, ultimately passed on to the consumer.
Percentages: Palestinian VAT: 14.5%
Israeli VAT: 15.5%


4. Classification of goods:
Now that we have gained a basic understanding of the Harmonized System and the
different kinds of tariffs that apply in Palestine and Israel, we can begin a thorough
explanation of how goods are classified in the Palestinian and Israeli tariff books.




Method of classifying goods
Searching the tariff book for classification of goods requires some knowledge about how
this book classifies items and the rules of classification. Below are some rules to
facilitate searching the tariff book in order to determine the accurate HS code.


Rule #1
The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only.
For legal purposes, classification shall be determined according to the terms of the
headings and any relative Section or Chapter Notes and, provided such headings or Notes
do not otherwise require, according to the following provisions.
Rule #2
Any reference in a heading to an article shall be taken to include a reference to that article
incomplete or unfinished, provided that, as presented; the incomplete or unfinished article
has the essential character of the complete or finished article. It shall also be taken to
include a reference to that article complete or finished (or falling to be classified as
complete or finished by virtue of this Rule), presented unassembled or disassembled.


Any reference in a heading to a material or substance shall be taken to include a reference
to mixtures or combinations of that material or substance with other materials or
substances. Any reference to goods of a given material or substance shall be taken to
include a reference to goods consisting wholly or partly of such material or substance.
The classification of goods consisting of more than one material or substance shall be
according to the principles of Rule3.


Rule #3
When by application of Rule 2 (b) or for any other reason, goods are classifiable under
two or more headings, classification shall be affected as follows:


       a. The heading which provides the most specific description shall be preferred to
           headings providing a more general description. However, when two or more
           headings each refer to part only of the materials or substances contained in
           mixed or composite goods or to part only of the items in a set put up for retail
           sale, those headings are to be regarded as equally specific in relation to those
           goods, even if one of them gives a more complete or precise description of the
           goods.


       b. Mixtures, composite goods consisting of different materials or made up of
           different components, and goods put up in sets for retail sale, which cannot be
           classified by reference to Rule 3 (a), shall be classified as if they consisted of
           the material or component which gives them their essential character, insofar
           as this criterion is applicable.
       c. When goods cannot be classified by reference to Rule 3 (a) or 3 (b), they shall
           be classified under the heading which occurs last in numerical order among
           those which equally merit consideration.


Rule #4
Goods which cannot be classified in accordance with the above Rules shall be classified
under the heading appropriate to the goods to which they are most akin.


Rule #5
In addition to the foregoing provisions, the following Rules shall apply in respect of the
goods referred to therein:


       d. Camera cases, musical instrument cases, gun cases, drawing instrument cases,
           necklace cases and similar containers, specially shaped or fitted to contain a
           specific article or set of articles, suitable for long-term use and presented with
           the articles for which they are intended, shall be classified with such articles
           when of a kind normally sold therewith. This Rule does not, however, apply to
           containers which give the whole its essential character.
       e. Subject to the provisions of Rule 5 (a) above, packing materials and packing
           containers presented with the goods therein shall be classified with the goods
           if they are of a kind normally used for packing such goods. However, this
           provision is not binding when such packing materials or packing containers
           are clearly suitable for repetitive use.


 Rule #6
 For legal purposes, the classification of goods in the subheadings of a heading shall be
 determined according to the terms of those subheadings and any related Subheading
 Notes. For the purpose of this Rule the relative Section and Chapter Notes also apply,
 unless the context otherwise requires.
HS Codes & composition: The Harmonized Tariff Schedule is broken into two major
parts: notes and classification.


   Notes: The notes portion of the HS is comprised of approximately one fourth to one
    fifth of the Tariff Schedule. It contains rules of classification, details on region-
    specific trade programs (NAFTA and the CBERA), recognized countries and
    abbreviations, and a list of recent changes to name a few. Each chapter of the HS
    contains notes on classifying products within that chapter. It is very important to
    thoroughly review these chapter notes before continuing with the classification
    process. Often times, these notes will list specific articles that can or can not be
    classified within that chapter. The notes can contain lists of acceptable definitions,
    clarifications to chapter headings, and other important information.


   Classification: The classification portion is comprised of an example of classifying
    PURE-BRED BREEDING ANIMALS. As we go through this example, it will be
    shown how the HS code is divided into 4 parts: section, chapter/heading, sub-heading
    and paragraph. The numerical codes associated with each of these four parts will lead
    to the HS Code, sometimes referred to as Brussels Tariff Number (BTN), for this
    item. Following is a detailed description of each of the five parts:


    1. Section: The Harmonized Tariff Schedule is divided into 21 different sections,
       which are further divided into chapters. The chapters are categorized with the
       most highly processed and refined goods last. Following this method of
       categorization, raw products such as live animals, lumber, and agricultural
       products will be found near the front of the tariff book while such products as
       electronics, works of art, medical devices will be found at the back.


       Sample from the Palestinian Tariff book
                                             Section


   Sample from the Israeli tariff book




                                                           Section


2. Chapter: Also referred to as heading, each section is divided into chapters /
  headings. The first four digits are referred to as the heading, since we say there are
  five parts, can we break this down to show parts 2 and 3


   Sample from the Palestinian tariff book


                           Chapter / Heading




   Sample from the Israeli tariff book
                                                                     Chapter / Heading




     3. Subheading: Also referred to as part. The first six digits are known as a
       subheading.


       Sample from the Palestinian tariff book




                                                                                 Subheading




        Sample from the Israeli tariff book




Subheading



     4. Code: The HS is a six-digit nomenclature. Countries that have adopted the
       Harmonized System are not permitted to alter in any way the descriptions
       associated to a heading or a subheading nor can the numerical codes at the four or
       six digit level be altered. This is what keeps the Harmonized System harmonized.
       It should be noted that individual countries may extend a Harmonized System
       number to eight or ten digits for customs purposes, and to eight or ten digits for
       export purposes. Moreover, codes have been revised through the years. So if it's
            necessary to reference a code related to a trade issue from even a few years ago,
            one has to make sure the definition set being used matches the code.


            Sample from the Palestinian tariff book




                                                                        HS


            Sample from the Israeli tariff book


Heading
Sub Heading

Paragraph

                               HS




    Example 1: The Classification of Spades and Shovels (Agricultural Tools)


    Use the information below to determine the HS code for spades and shoves


    Sample from the Palestinian Tariff book
                  Tax                                             HS
                  Rate


Sample from the Israeli Tariff Book




      HS
      82 01 1000




                                                                       Tax Rate




In the above example, Spades and Shovels are classified in the Palestinian and Israeli
tariff book as follows:
                             Classification of Spades and Shovels
           Section – 15
           Chapter 82- TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND
           FORKS, OF BASE METAL; PARTS THEREOF OF BASE METAL


           Heading 8201- Hand tools of the following kinds and base metal
           parts thereof: spades, shovels, mattocks, picks, hoes, forks and rakes;
           axes, bill hooks and similar hewing tools; scatters and prunes of any
           kind; scythes, sickles, hay knives, hedge shears, timber wedges ,and
           other tools of a kind used in agriculture, horticulture or forestry


           Subheading 8201.10.00.00 - Spades and shovels, and parts thereof


                                              Explanation
    The first two digits (82) of this classification are a reference to the appropriate chapter.
    The first four digits combined (8201) comprise the article’s heading within that
    chapter, while the last six digits (10.00.00) break that heading down into subheadings.




Example 2: The Classification of Cashew Nuts1
Use the information below to determine the HS code for cashew nuts.


                                 Classification of Cashew Nuts
           Section II- Vegetable Products
           Chapter 8 or 08 - Edible Fruit and Nuts; Peel of Citrus Fruit or
           Melons
           08.13 - Fruits and Nuts, uncooked or cooked by steaming or boiling in
           water, frozen, whether or not containing added sugar or other

1
    http://www.finance.gov.il/customs/eng/reinfo.htm#1
       sweetening matter -
       08.13.50 - Mixtures of nuts or dried fruit of this chapter
       08.13.50.10 - Mixtures of nuts –
       08.13.50.11/8 -Coconuts, Brazil nuts, Cashew nuts


The above information was taken from the Israeli Customs Tariff book, which is the tariff
schedule issued at the beginning of each year. It is issued in Hebrew, and it is constantly
updated throughout the year as changes are made. The code 08.13.50 is the last code as
given by the HS. Beginning with 08.13.50.10, this code - and the one that follows, is
decided by the Israeli Customs as divisions within the heading.


Rates of Duty: The Rates of Duty Column determines the amount of duty you will have
to pay on an imported product. Typically these rates of duty are expressed in a percentage
of the value of the good (e.g. 12% of the value) or as a cost/quantity rate (e.g. NIS
0.04/kg).


Example 3: The Classification of Canned Chicken Meat


Use the information below to determine the HS code AND customs duties for
canned chicken meat.
Section




Chapter
Heading




Sub
Heading




          Part
   HS
16 02 2091




                                                                                 Tax
                                                                                 Rate




                           Classification of Canned Chicken Meat
             Section IV- Prepared foodstuffs: Beverages, spirits and vinegar;
             Tobacco and manufactured tobacco
             Chapter/Heading 16 – Machinery and mechanical appliances;
             electrical equipment and parts thereof (because these items are
             produced through machines)
             Sub Heading 02 – Other prepared or preserved meat, meat offal, or
             blood.
             Part 2091 – Containing Chicken liver
             HS Code - 16 02 2091
                                     Explanation
Calculate customs duties for canned chicken meat.


According to the above illustration, the HS code for canned chicken meat is
16.02.2091 . The General Tax Rate is:
                12% customs + 9.75 per Kg but no more than 50%




The Calculation of Tariffs
The calculation of duties is based on the wholesale price of domestic products and on the
Cost, Insurance and Freight (CIF) landed value plus "Tama”. It can be calculated
through any of the following ways:


   Percentage: Some goods are subject to a specific percentage of customs (e.g. 12%
    Customs).
   Weight: Goods like TUNA FISH are subject to 12% customs OR are subject to
    customs according to their weight (in KG), which may be lower or higher than the
    percentage value.    For example, a tariff based on weight may be calculated as
    follows: 1.66 NIS/KG
   Piece: Some goods are subject to duties based on percentage or specific amount per
    piece.
   Liters, Fixed Amount /liter: Goods subject to this type of tariff are based on a
    percentage or specific amount per liter.
   Power (Air Conditions), Customs + Fixed amount / BTU: A duty based on a
    percentage or specific amount per power unit.
   Selling Price (cigarettes): A duty based on a percentage of selling price + specific
    amount per unit.
The amount of VAT to be paid on goods is calculated based on the value of the goods
plus all other duties on the imported shipments.


Early Information Service from the Israeli Customs Authority – The Israeli
Customs Authority http://www.finance.gov.il/customs/eng/mainpage.htm
has launched an Early Information service
http://62.219.95.10/preruling/preruling.dll/kelet , which can be used by any importer to
determine earlier information about the process and relevant tariffs/duties for any product
that he is considering to import.
Anyone interested in obtaining early information regarding classification of commercial
goods may submit a request for information before the importation process of the
required goods has begun. The following conditions apply:
              The importation transaction regarding the requested goods has yet to be
               established, and the goods were not imported in the past.
              No conflict of any kind exists with the Customs Authority regarding the
               said goods.
              No prior information regarding classification of the said goods was given
               in the past, or the information given is no longer valid.
              Early information regarding classification of commercial goods will be for
               one item per request, and will be provided by the Department of Customs
               free of charge.
              The early information provided by the Department of Customs will be
               information regarding the classification of the goods only (an 8 digit
               Customs Heading).
              The person making the request is responsible for checking any and all
               implications of the information (the tax rate of the Customs Headings,
               legality of importation, importation process etc.).
              The person making the request may be requested by the Department of
               Customs to present catalogues, samples, and various permits - as needed-
               as part of the process of examining the goods and their classification.
              The early information given by the Department of Customs will be based
               on the facts, documents and all other information submitted by the person
               making the request.
              The classification of the goods, when provided to the person making the
               request, will be valid for one year from the day the information is
               provided, and is subject to any change in the law occurring after the
               information is provided.
              The department of Customs will not take responsibility for information
               used by a person who did not make the request.
              In order to remove any doubt, the responsibility of the Department of
               Customs for providing early information regarding classification of
               commercial goods, is conditioned upon the goods being identical to those
               declared in the original request for classification. Information will not be
               given regarding similar or other goods.
Below is the process of requesting early information regarding classification of goods
through the internet:
              Log on to the Department of Customs website early information page
               http://62.219.95.10/preruling/preruling.dll/kelet. Your screen will look
               like this:




              Fill in all requested information and submit.
              Once the request is sent, a confirmation e-mail will be received.
                  An assessor within the Israeli Customs Authority will handle the
                   classification request.
                  More documentation may be requested by the assessor (as needed).
                Providing the information regarding the Customs Heading for which the
                   goods are to be classified under.



5. Customs Tariffs, Exemptions and Purchase Tax on Goods
Order, May-2009

Israeli Customs Department publishes the Customs, Excise and Purchase Tax Law
periodically to help ease the classification process for traders. Through this law, traders
can track changes to the law and learn how they can classify their goods. The latest
version of this law it was published in May 2009.


Where to go for additional information?2
For more information on Palestinian trade issues, additional information may be acquired
from the following Palestinian sources:

          Palestinian Customs Authority /link : http://www.mofa-gov.ps

          Asycuda /link: http://www.asycuda.ps

          The Palestinian Shippers’ Council (PSC) /link: http//www.psc.ps




2
    http://www.finance.gov.il/customs