Israeli Legislation.com
OrdinanceTax Law

Customs Ordinance [New Version]

פקודת המכס [נוסח חדש]

Published: 1957-07-29Consolidated Hebrew text as of 2024-07-01 · Last amended 2026-03-31✓ Amendment status checked against the Knesset legislation record on 2026-09-28
Premium
Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Chapter VII: Ship's Stores

Use of Ship's Stores§

120.

Ship's stores, whether loaded at foreign ports or at ports in Israel, shall be used only by the passengers and crew or for the services of the ship alone, unless an import declaration has been submitted in respect thereof for consumption in the country and authorisation has been granted therefor, or unless other provisions have been prescribed in this matter.

Landing of Ship's Stores§

121.

Ship's stores shall not be used contrary to section 120, and shall not be unloaded or landed except with the permission of the collector of customs.

Sealed Ship's Stores§

122.

Ship's stores that have been loaded from a warehouse without payment of customs duty, or on drawback, shall remain sealed with the customs seal for as long as the ship is in a port or other place in Israel, or for as long as it is passing from one port or other place in Israel to another, until its final departure on a foreign voyage.

Surplus Ship's Stores May Be Landed with Permission§

123.

Surplus ship's stores may, with the permission of the collector of customs, be the subject of an import declaration or be warehoused for future use as ship's stores.

Need to cite this law in a foreign court?

Eli Shimony Israeli Attorneys-at-Law provides certified Expert Legal Opinions on Israeli law within 24–48 hours, accepted by courts worldwide.

Contact Us →

Chapter VIII: Customs Payments

Person Liable for Customs Duty§

123a.
(a)The person liable to pay customs duty on goods is the owner of the goods.
(b)Notwithstanding the provisions of subsection (a), a person who is not the owner of the goods may, with the consent of the Director and on such conditions as the Director may direct, undertake to pay the customs duty on certain goods, in whole or in part, and from the time of the Director's consent as aforesaid shall be regarded as the person liable for customs duty on those goods.

Payment of Customs Duty§

123b.
(a)Customs duty on imported goods in respect of which there is an obligation to submit an import declaration pursuant to the provisions of Section E of Chapter IV shall be paid at the time of submission of the import declaration.
(b)Customs duty on goods imported by post shall be paid at the time of submission of the import declaration, and if no import declaration was submitted — at the time of their collection at the post office branch.
(c)Payment of customs duty pursuant to the provisions of this section shall be made in the manner determined by the Director.
(d)Nothing in the provisions of this section shall derogate from the provisions of section 81.

The Determining Date for the Rate of Customs Duty§

124.
(a)Customs duty shall be paid at the rate applicable at the time of payment.
(b)Notwithstanding the provisions of subsection (a), customs duty on goods imported by post in respect of which no import declaration was submitted shall be paid at the rate applicable at the time the assessment thereof is made.
(c)Customs duty on imported goods in respect of which there is an obligation to submit an import declaration pursuant to the provisions of Section E of Chapter IV, and in respect of which no such declaration was submitted, shall be paid at the rate applicable at the time of their importation, and if the time of their importation is unknown — at the time the assessment thereof is made.
(d)Notwithstanding the provisions of section 123b(a), where goods have been released from customs authority supervision under a conditional exemption, and it has been proved to the satisfaction of the Director that a condition among the conditions for the grant of the exemption has ceased to be fulfilled in respect of them, the obligation to pay customs duty for those goods shall apply from the time at which the said condition ceased to be fulfilled, and if that time is unknown — from the time of submission of the import declaration, and at the rate applicable at that time; for this purpose, "conditional exemption" — an exemption or reduction of the rate of customs duty applicable to imported goods upon the fulfilment of a condition relating to the use of the goods, excluding an exemption or reduction applicable in the case of temporary admission, that the Minister of Finance has prescribed by Order pursuant to the Customs Tariff and Exemptions Ordinance.
(e)Where goods have been released from customs authority supervision under an exemption from customs duty pursuant to section 162, and it has been proved to the satisfaction of the Director that a condition among the conditions under that section for the grant of the exemption was not fulfilled in respect of them, the provisions of section 123b(a) and the provisions of subsection (a) shall apply, respectively, with respect to the obligation to pay customs duty for those goods and with respect to the applicable rate of customs duty.
(f)Nothing in the provisions of this section shall derogate from the provisions pursuant to sections 140 and 160b.

Weights and Measures§

125.

Where customs duty is imposed by weight or by measure, the weight or measure of the goods shall be determined according to the weights and measures approved by the customs authority.

Customs Duty — by Pro-Rata Calculation§

126.

Where customs duty is imposed by a specified quantity, weight, size or value, the customs duty to be imposed on a greater or lesser quantity, weight, size or value shall be calculated on a pro-rata basis.

When Customs Duty Is Payable on the Greater Quantity§

127.

Goods that are sold or offered for sale as being of a greater rate or quantity than they actually are, or that are customarily regarded as such goods, shall be subject to customs duty imposed according to the greater size or quantity.

128.§

(Repealed — תיקון מס' 12, 1995)

Definitions and Interpretation§

129.

In sections 129 to 134a –

"goods under valuation" – the goods whose value is to be determined for customs purposes;

"identical goods" – goods that are identical in all respects to the goods under valuation, including in their physical characteristics, their quality and their reputation, provided that they were produced in the same country in which the goods under valuation were produced; for this purpose –

(1)minor differences in appearance shall not disqualify goods that otherwise satisfy the conditions of the definition from being regarded as identical;
(2)goods that include an Israeli component shall not be regarded as identical goods;

"similar goods" – goods which, although not identical in all respects to the goods under valuation, satisfy all of the following:

(1)they were produced in the same country in which the goods under valuation were produced;
(2)they have characteristics similar to those of the goods under valuation and are made of similar materials, enabling them to perform a similar function and to be commercially interchangeable;
(3)they do not include an Israeli component;

for the purpose of determining similarity to the goods under valuation, account shall be taken, inter alia, of quality, reputation and trade mark;

"Israeli component" – engineering, development, artistic work, design work, plans or sketches, performed in Israel;

"production" – includes growing and mining;

"commercial level" – wholesale, retail, sale through an exclusive agent, and the like;

"special relationship" –

(1)a relationship between parties to an import transaction in which at least one of the following applies –
(a)one of the parties to the transaction is an office holder in the business of the other; for this purpose, "office holder" – a director, general manager, chief executive officer, deputy general manager, assistant general manager, another manager directly subordinate to the general manager, and any person fulfilling such a role in a company even if his title is different;
(b)the parties to the transaction are recognised by law as business partners;
(c)the parties to the transaction are an employee and an employer;
(d)any person is an owner of, controls or holds, five per cent or more of the voting rights or shares in either of the parties to the transaction, directly or indirectly;
(e)one of the parties to the transaction controls the other, directly or indirectly;
(f)the parties to the transaction are controlled by a third party, directly or indirectly;
(g)the parties to the transaction jointly control a third party, directly or indirectly;
(h)the parties to the transaction are family members; for this purpose, "family member" – a spouse, brother, sister, parent, grandparent, parent of a spouse, descendant, descendant of a spouse, and the spouse of any of the foregoing;
(2)for the purpose of this definition, a person shall be regarded as controlling another where that person is in a legal or practical position enabling him to restrict or direct the other's activity;
(3)an exclusive agent, exclusive distributor or exclusive franchisee in another's business, whatever the description of the relationship between them, shall be regarded as having a special relationship between them only if at least one of the conditions in paragraph (1) applies to them;

"personal use" – one of the following:

(1)use of goods imported by an individual for his own needs or for the needs of his household members;
(2)the giving as a gift of goods imported by an individual, for the needs of another individual or for the needs of that other individual's household members;

"commercial use" – use that is not personal use.

Methods of Determining the Value of Assessed Goods§

130.

The value of assessed goods shall be determined as follows —

(1)according to the transaction value at which they were purchased, calculated pursuant to the provisions of section 132;
(2)in the absence of the possibility of determining the value of the assessed goods as referred to in paragraph (1) — according to the transaction value at which identical goods were purchased, calculated pursuant to the provisions of sections 133a and 133c;
(3)in the absence of the possibility of determining the value of the assessed goods as referred to in paragraph (2) — according to the transaction value at which similar goods were purchased, calculated pursuant to the provisions of sections 133b and 133c;
(4)in the absence of the possibility of determining the value of the assessed goods as referred to in paragraph (3) — according to the sale price in Israel, calculated pursuant to the provisions of section 133d;
(5)in the absence of the possibility of determining the value of the assessed goods as referred to in paragraph (4) — according to the computed value, in accordance with the provisions of section 133e;
(6)in the absence of the possibility of determining the value of the assessed goods pursuant to paragraph (3), and notwithstanding that it is possible to determine the value of the goods pursuant to the provisions of paragraph (4) — pursuant to the provisions of paragraph (5) first, and this in accordance with the importer's request and with the approval of the collector of customs;
(7)in the absence of the possibility of determining the value of the assessed goods as referred to in paragraphs (1) to (6) — pursuant to the provisions of section 133f.

Determination of the Value of Goods in respect of which One Year Has Elapsed since Their Importation§

131.
(a)The value of assessed goods in respect of which one year has elapsed since the time of their importation as referred to in section 144 before they were redeemed from customs authority supervision shall be determined pursuant to the provisions of section 130 commencing from the provision of paragraph (2), and the provision of paragraph (1) shall not apply.
(b)Notwithstanding the provisions of subsection (a), the Director may, upon the request of the importer and for reasons that shall be recorded, direct that the value of goods within the meaning of subsection (a) be determined pursuant to the provisions of section 130 commencing with the provision of paragraph (1).

Transaction Value§

132.
(a)The transaction value is the price paid or payable for the goods upon their sale for export to Israel (hereinafter — the transaction price), with the addition of the expenses and amounts set out in section 133, provided that all the conditions listed in subsection (b) are fulfilled.
(b)A transaction value shall be determined pursuant to subsection (a) only where all of the following are fulfilled:
(1)there are no restrictions on the sale of the goods or on their use by the importer, except —
(a)restrictions imposed or required in Israel by law;
(b)restrictions on the geographical areas in which the goods may be sold;
(c)restrictions that do not materially affect the value of the goods;
(2)the sale of the goods or their price is not subject to any condition or consideration whose value cannot be estimated for the purpose of determining the value of the goods;
(3)no part of the proceeds accruing from any subsequent resale of the goods or from their use by the importer can be attributed to the seller, whether directly or indirectly, other than the expenses and amounts set out in section 133, if they are not included in the transaction price from the outset;
(4)
(a)there is no special relationship between the seller and the importer;
(b)where there is a special relationship between the seller and the importer — the transaction value was not influenced by that relationship; for this purpose, the transaction value shall be regarded as not having been influenced by a special relationship if the importer has proved that the transaction value is close, as far as possible, to one of the following values —
(1)the transaction value in the sale for export to Israel of identical or similar goods to importers who have no special relationship with the seller;
(2)the value of identical or similar goods determined pursuant to the provisions of section 133d;
(3)the value of identical or similar goods determined pursuant to the provisions of section 133e;
(c)if the Director considers that the transaction value was influenced by a special relationship, the Director shall notify the importer accordingly and afford the importer an opportunity to be heard.
(c)A transaction in respect of which one of the conditions referred to in subsection (b) is not fulfilled shall not serve for the determination of the value of goods pursuant to section 130.
(d)In determining a transaction value, interest pursuant to financing arrangements made by the importer in connection with the importation of the goods shall not be taken into account, if all of the following are fulfilled:
(1)the interest charges are separate from the transaction price;
(2)the financing arrangements were made in writing;
(3)the importer has proved, if required to do so, that the goods are indeed sold at the price declared as the transaction price and that the declared interest rate does not exceed the level customary in similar transactions in the country where the financing was provided, at the time the financing arrangement was made.
(e)Discounts on the price of goods granted after their redemption from customs authority supervision shall not be taken into account for the purpose of determining the transaction value of those goods.

Additions to the Transaction Price for the Purpose of Determining the Transaction Value§

133.
(a)For the purpose of determining the transaction value as referred to in section 132, only the expenses and amounts set out below shall be added to the transaction price, if they are not included therein from the outset, when calculated on the basis of objective and quantifiable data —
(1)expenses paid by the buyer or payable by the buyer that are related to the purchase of the goods, as follows —
(a)commissions and brokerage fees, other than buying commissions; for this purpose, "buying commissions" — payments made by the importer to his agent in consideration for representation services in the purchase of the goods that the agent provides for him abroad;
(b)the cost of containers that are regarded for customs purposes as forming an inseparable part of the goods;
(c)the cost of packing, including the cost of labour and the cost of packing materials;
(2)the proportionate value of the following services and means of production that the importer supplied, directly or indirectly, free of charge or at a reduced price, in connection with the production and sale for export of the goods —
(a)materials, components, parts and similar items incorporated in the goods;
(b)tools, moulds and similar items used in the production of the goods;
(c)materials consumed and used up in the production of the goods;
(d)engineering, development, artistic work, design work, plans and sketches performed outside Israel that were required for the production of the goods;
(3)royalties and licence fees relating to the goods that the importer is obliged to pay, directly or indirectly, as a condition of the sale of the goods in Israel by the importer;
(4)the value of any part attributable, directly or indirectly, to the seller, of the proceeds accruing from any subsequent resale of the goods or from their use, effected after their sale for export to Israel;
(5)the following costs involved in bringing the goods to the port of importation or place of importation —
(a)the cost of transporting the goods to the port of importation or place of importation, excluding costs as aforesaid incurred as a result of special circumstances beyond the importer's control and which the Director has determined are not to be included in the transaction value; the Director may prescribe rules and conditions for this purpose, including types of goods, types of transportation and other services;
(b)payments for loading, unloading and handling connected with the carriage of the goods to the port of importation or place of importation, including porterage fees, stevedoring fees and quay dues;
(c)the cost of insurance.
(b)In the absence of objective and quantifiable data for the purpose of calculating any expense or amount among those set out in subsection (a) that were incurred within the framework of a transaction, that transaction shall not serve for the determination of the value of goods pursuant to section 130.

Transaction Value at which Identical Goods Were Purchased§

133a.

For the purpose of section 130(2) —

(1)the transaction value at which identical goods were purchased shall be calculated pursuant to the provisions of section 132;
(2)a transaction at which identical goods were purchased shall serve for the determination of the value of the assessed goods if all of the following are fulfilled:
(a)the identical goods were exported to Israel at the same time as the assessed goods were exported, or at approximately the same time;
(b)the transaction at which the identical goods were purchased was carried out at the same commercial level as that at which the transaction in the assessed goods was carried out and in similar quantities; in the absence of such a transaction — a transaction at which identical goods were purchased at a different commercial level from that at which the assessed goods were purchased or in different quantities, provided that the differences attributable to the commercial level or to the quantities were taken into account for the purpose of adjusting the transaction value; the adjustment shall be based on proven evidence that clearly demonstrates the reasonableness and accuracy of the assessment.

Transaction Value at which Similar Goods Were Purchased§

133b.

For the purpose of section 130(3) —

(1)the transaction value at which similar goods were purchased shall be calculated pursuant to the provisions of section 132;
(2)a transaction at which similar goods were purchased shall serve for the determination of the value of the assessed goods if all of the following are fulfilled:
(a)the similar goods were exported to Israel at the same time as the assessed goods were exported, or at approximately the same time;
(b)the transaction at which the similar goods were purchased was carried out at the same commercial level as that at which the transaction in the assessed goods was carried out and in similar quantities; in the absence of such a transaction — a transaction at which similar goods were purchased at a different commercial level from that at which the assessed goods were purchased or in different quantities, provided that the differences attributable to the commercial level or to the quantities were taken into account for the purpose of adjusting the transaction value; the adjustment shall be based on proven evidence that clearly demonstrates the reasonableness and accuracy of the assessment.

Rules for Determining the Transaction Value of Identical or Similar Goods§

133c.

For the purpose of section 130(2) and (3) —

(1)where more than one transaction value of identical goods or similar goods, as the case may be, is found in respect of which the provisions of sections 129 to 133i apply, the value of the assessed goods shall be determined according to the lowest of the values found;
(2)in cases where the expenses set out in section 133(a)(5) are included in the transaction value, an adjustment shall be made, in order to take into account significant differences in those expenses arising from differences in the distance or mode of transportation, between the transaction value of the identical or similar goods, as the case may be, and the transaction value of the assessed goods.

Determination of the Value of Goods According to the Sale Price in Israel§

133d.

For the purpose of section 130(4) —

(1)where it is not possible to determine the value of the assessed goods pursuant to section 130(1) to (3), and identical or similar goods to the assessed goods are sold in Israel in the same condition as that in which they were imported — the value of the assessed goods shall be calculated pursuant to this section, based on the unit price at which the identical or similar goods are first sold after importation, in the greatest aggregate quantity, at the time of importation of the assessed goods or approximately at that time, to persons who have no special relationship with the seller in Israel, after deducting the following amounts:
(a)the commissions usually paid or agreed to be paid, or the additions usually added when calculating profit, and general expenses, in connection with sales of imported goods at the same level or of the same type in Israel;
(b)the usual costs of transportation and insurance and associated costs that are ordinarily incurred in Israel;
(c)costs involved in bringing the goods to the port of importation or place of importation, as set out in section 133(a)(5);
(d)customs duty and other taxes payable in Israel in consequence of the importation or sale of the goods;
(2)where identical or similar goods are not sold at the time of importation of the assessed goods or approximately at that time — the value of the assessed goods shall be calculated as referred to in paragraph (1), but based on the unit price at which the identical or similar goods are sold in Israel in the same condition as that in which they were imported, at the earliest date after the importation of the assessed goods, provided that 90 days have not yet elapsed from the date of importation of the assessed goods;
(3)where identical or similar goods are not sold in Israel in the same condition as that in which they were imported — the value of the assessed goods shall be calculated, if the importer so requests, as referred to in paragraph (1), but based on the unit price at which the said goods are sold after further processing, in the greatest aggregate quantity, to a buyer in Israel who has no special relationship with the seller in Israel, after deducting the added value resulting from that processing; the added value shall be calculated on the basis of objective and quantifiable data;
(4)a sale in Israel of identical or similar goods to a person who supplied, directly or indirectly, free of charge or at a reduced price, any of the components set out in section 133(a)(2), for use in connection with the production and sale for export of those goods, shall not serve for the determination of the value of assessed goods pursuant to this section.

Determination of the Computed Value§

133e.

For the purpose of section 130(5) —

(1)the value of the assessed goods shall be determined according to the computed value, which is the sum of all of the following values:
(a)the cost or value of materials and production or any other processing used in producing the assessed goods, including the cost of the components set out in section 133(a)(1), in sub-paragraphs (b) and (c);
(b)an amount equal to the profits and general expenses that are usually included in sales of goods at the level or of the type of the assessed goods, made by producers in the country of production for export to Israel;
(c)the costs involved in bringing the assessed goods to the port of importation or place of importation as set out in section 133(a)(5);
(2)a person who is not a resident of Israel shall not be required to produce accounts, records or other documents for examination, nor shall such a person be required to permit access thereto, for the purpose of determining a computed value; however, the Director may verify, in another country, information supplied by a producer of goods for the purpose of determining a computed value, with the consent of that producer, after giving proper advance notice to the competent authority in the producer's country, and provided that that authority has not objected within a reasonable time.

Determination of Value in Other Cases§

133f.

For the purposes of section 130(7) –

(1)Where it is not possible to determine the value of the goods being valued under section 130(1) to (6) – their value shall be determined using reasonable means consistent with the principles and provisions established in the GATT Agreement of 1994 and the Agreement on Implementation of Article VII of the GATT Agreement of 1994, as expressed in sections 129 to 133i;
(2)The value of goods being valued under this section shall not be determined on the basis of any of the following:
(a)the retail price of goods of domestic manufacture;
(b)a method requiring the determination of value for customs purposes on the basis of the higher of two given values;
(c)the price of the goods on the domestic market of the country of production;
(d)the cost of production, other than a computed value determined for identical goods or similar goods under section 133e, and for this purpose, goods shall be regarded as identical goods or similar goods even if they were not manufactured in the same country;
(e)the price of the goods for export to a country other than the State of Israel;
(f)minimum value for customs purposes;
(g)arbitrary or fictitious values;
(3)Without derogating from the provisions of paragraph (1), the Director may, for the purpose of implementing the provisions of this section, avail himself of the methods of valuation of goods set out in section 130, even if not all of their conditions can be fulfilled.

Determination of Value of Goods Damaged before Their Release§

133g.

The value of goods damaged before their release from customs authority supervision shall be determined in accordance with the methods of valuation prescribed in section 130, taking into account the depreciation in the value of the goods being valued as a result of the damage; where the value of goods damaged has been determined pursuant to the provisions of this section, the provisions of section 150(1) shall not apply to them.

Provision of Account Details to the Importer§

133h.

The Director shall provide the importer with written notice of the value of the goods determined pursuant to the provisions of sections 130 to 133g, as the case may be, and of the method by which that value was determined; at the request of the importer, the Director shall also provide him in writing with the details of the calculation.

Application to Goods Imported for Commercial Use§

133i.

The provisions of sections 129 to 133h shall apply only to goods imported for commercial use.

Director's Authority to Make Regulations for Valuation Purposes§

134.
(a)The Director may make Regulations for the operation of sections 129 to 133i and in particular so as to require any person connected with the importation of goods into Israel to supply to the Director, in such form as he may require, any information which he considers necessary for the proper valuation of the goods, as well as account books and any other document relating to the purchase, importation or sale of the goods by that person.
(b)A person who contravenes a regulation made under this section is liable to a fine of one hundred pounds for each offence.

Value of Goods Imported for Personal Use§

134a.

The value of goods imported for personal use, whether as accompanied baggage or otherwise, shall be calculated in accordance with Regulations to be prescribed by the Minister of Finance, with the approval of the Finance Committee of the Knesset.

135.§

(Repealed — תיקון מס' 3, 1965)

Rate of Customs Duty on Part of a Whole§

136.

Goods that are liable to ad valorem customs duty and that consist of two or more separate parts, each part of them, if imported separately, shall be charged with customs duty at the rate applicable to the complete goods.

137.§

(Repealed — תיקון מס' 3, 1965)

Measurement for the Purpose of Calculating Customs Duty§

138.

Goods that are liable to customs duty by measure shall be stacked, piled, sorted, framed or otherwise arranged, at the request of the collector of customs and at the expense of the owner of the goods, so as to enable their measurement and specification; where the goods are measured in bulk, the measure shall be determined according to the full extent of the stack or the pile.

Value of Goods Sold by Customs Authority§

139.

Goods that are liable to ad valorem customs duty and that have been sold at one of the customs authority's sales, the price realised at that sale may be treated as the value of the goods.

Payment of Customs Duty on Goods Included in the Manifest but Not Presented§

140.

Where dutiable goods were included in the manifest but were not presented before the customs officer, the owner of the conveyance, its master, commander or agent shall pay the customs duty upon the demand of the collector of customs and according to his assessment, at the rate that was in force at the time of delivery of the manifest in which the goods are included, unless a satisfactory explanation is provided to the collector of customs.

Dealing with Goods Imported Free of Customs Duty§

141.
(a)Where goods were imported into the country free of customs duty by reason of being the property of the Israel Defence Forces or of a consular officer, commercial agent, company, firm or any other institution or person who at that time were, under any customs law then in force, entitled to the privilege of importing those goods without customs duty, and the goods have been released to the possession of a company, firm, institution or other person not entitled to import those goods without customs duty, they shall be dealt with according to the following rules:
(1)If at the time of release the customs duty by tariff is ad valorem customs duty, the goods shall be liable to ad valorem customs duty on their value at the time of release and that customs duty shall be levied on them;
(2)If at the time of release the customs duty by tariff is a specific rate, and it is proved to the satisfaction of the Director that the condition of the goods has deteriorated since the time of their importation, they shall be liable to the amount which bears the same proportion to their value at the time of release as the amount to be levied at that specific rate bears to their value at the time of their importation, and that customs duty shall be levied on them; if it is not so proved, they shall be liable to customs duty at the specific rate prescribed for them and that customs duty shall be levied on them.
(b)Any person who releases goods as referred to in subsection (a) shall provide the Director with particulars thereof and shall pay the customs duty that may be applicable to them before their release.
(c)The Minister of Finance may exempt, in whole or in part, and on such conditions as he has prescribed, from the customs duty applicable under this section, a passenger car that a diplomatic representative or diplomatic mission of another state has transferred to another, to the extent that that state reciprocates such an exemption to the State of Israel.

Samples§

142.

Small samples from a bulk of goods that are under customs authority supervision may, on prescribed conditions, be delivered without payment of customs duty.

Amendment of Agreement upon Change in Customs Duty§

143.

If, after agreement has been reached on the sale or delivery of goods with the customs duty thereon paid, and before an import declaration for home consumption in respect of the goods has been submitted as referred to in section 62(a)(1), a change affecting those goods occurs in the customs duty collected, the agreement shall be subject to the following conditions, unless it expressly provides otherwise in writing:

(1)If the change is the imposition of a new customs duty or an increase in the existing customs duty, the seller may, after paying the new or increased customs duty, add the difference to the agreed price;
(2)If the change is the abolition or reduction of the customs duty, the buyer may deduct from the agreed price the difference arising from the change.

Time of Importation of Goods§

144.

Where it is necessary, for the purposes of customs laws, to determine precisely when the time of importation of goods occurred, the time of importation shall be deemed to be the time of entry of the vessel carrying the goods into the limits of the port at which the manifest of the vessel and its cargo is, in the proper course, to be delivered and the goods are to be unloaded; and if the goods were imported other than by sea, the time of importation shall be deemed to be the time at which the goods crossed the border.

Customs Lien§

145.

The State shall have a first and preferential lien on goods under customs authority supervision, whoever the consignor may be, to secure the payment of the customs duty and charges applicable thereto, whoever the person liable for payment may be, and the fines the payment of which falls on the consignor or the consignee.

146.§

(Repealed — תיקון מס' 28, 2018)

147.§

(Repealed — תיקון מס' 28, 2018)

Conversion of Foreign Currency for Valuation Purposes§

148.

Where the price of goods or any other amount to be taken into account for the purposes of customs laws is not denominated in Israeli currency, it shall be calculated in Israeli currency in accordance with rules prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset.

Director May Take Goods in Payment of Their Declared Value or Take Customs Duty in Kind§

149.
(a)Where the customs duty is ad valorem and the Director has reason to believe that the value declared by the importer or his agent is too low, the Director may take the customs duty in kind, or may, upon first giving notice to the importer or his agent, take the goods in payment of their said value plus five per cent.
(b)Payment of the declared value as aforesaid, and refund of the customs duty paid on the goods, shall be made within thirty days after the declaration by the importer or his agent.

Refund of Customs Duty Paid§

150.

The Director may refund customs duty or waive payment thereof, in whole or in part, in any of the following cases:

(1)The goods have been lost, destroyed, damaged or abandoned to the customs authority, whether while under its supervision or before; provided that no claim for refund or waiver shall be submitted after the goods have been cleared from customs authority supervision;
(2)The goods were cleared from customs authority supervision and within six months of their clearance a non-conformity with the conditions of sale or a defect was discovered in them that had existed at the time of their clearance; provided that the claim for refund or waiver was submitted immediately after the said discovery and it was proved to the satisfaction of the collector of customs that the goods had not been used at all in Israel, or if they had been used, such use was only the use that caused the discovery of their non-conformity with the conditions of sale or the discovery of a defect that had existed in them at the time of their clearance and but for that use the non-conformity or the defect could not have been discovered.
151.§

(Repealed — תיקון מס' 4, 1968)

No Refund by Reason of Change in Customs Duty§

152.

Where the amount of customs duty payable on a particular article has been reduced as a result of the customs authority having changed its practice in the classification or categorisation of that article, the change does not entitle any person to receive back any part of customs duty paid before the change came into effect.

Payments on Goods Re-imported into Israel§

153.

Goods, whether made or manufactured in Israel or not, that are by their kind or description of the type of goods on which customs duty is applicable, and that were exported from Israel and re-imported into it and an import declaration for home consumption was submitted in respect of them, and it has been proved to the satisfaction of the Director that the customs duty or excise duty that could have been levied on those goods before their exportation was duly paid, whether before or after exportation, and no drawback was granted thereon at the time of exportation or any drawback that was granted was returned to the Director, shall be dealt with as follows:

(1)If it is further proved, as aforesaid, that no process whatsoever was applied abroad to those goods, they shall be exempt from customs duty or excise duty at the time of submission of the import declaration in respect of them after their return to Israel; provided that if at the time that the declaration referred to was submitted in respect of them the rate of excise duty or customs duty, as the case may be, that could be levied on goods of that kind or description was greater than the rate paid on them whether as excise duty or as customs duty at the time of their importation and submission of the import declaration in respect of them for the first time, as the case may be, they shall be liable to a rate equal to the difference between the rate at which the customs duty or excise duty previously paid on them was calculated and the rate applicable at the time of submission of the import declaration in respect of them after their return to Israel;
(2)If the goods at the time that the import declaration was submitted in respect of them after their return to Israel were by their kind or description goods liable to ad valorem customs duty, and if it is further proved, as aforesaid, that abroad those goods underwent a process of repair, restoration or improvement, but that no change in their form or pattern occurred, the goods shall be liable to customs duty as if their entire value equals the amount of their appreciation by reason of the said process, and if a specific sum was agreed to be paid for the execution of that process, that sum shall be prima facie evidence of the amount of the appreciation, but this shall not derogate from the authority of the Director under customs laws in determining the value of the goods for the purpose of assessing the ad valorem customs duty applicable to them; provided however that if at the time the said declaration was submitted in respect of them the rate of excise duty or customs duty, as the case may be, that could be levied on goods of that kind or description was greater than the rate paid on them whether as excise duty or as customs duty at the time of their importation and submission of the import declaration in respect of them for the first time, as the case may be, they shall be liable, in addition to the ad valorem customs duty to be paid in respect of the amount of appreciation as stated in this subsection, also to excise duty or customs duty to be calculated under paragraph (a) as if no process of repair, alteration or improvement had been applied to them while abroad.

Dispute regarding customs payment§

154.
(a)Where a dispute arises regarding the amount of customs duty or the rate of customs duty payable on certain goods, or regarding the liability of goods to customs duty under the customs laws, the owner of the goods may pay under protest the amount demanded by the collector of customs, and any amount so paid shall be deemed, as regards the owner of the goods, to be the correct rate of customs duty payable on the goods, until a different decision is given in proceedings instituted under this section.
(b)The owner of the goods may, within three months of the date of payment, institute proceedings against the Government for the recovery of the amount so paid, in whole or in part.
(c)No proceedings for the recovery of any amount under this section shall be instituted unless, before payment, the words "paid under protest" were written in the import declaration and signed by the owner of the goods or by his agent.
155.§

(Repealed — תיקון מס' 4, 1968)

Need to cite this law in a foreign court?

Eli Shimony Israeli Attorneys-at-Law provides certified Expert Legal Opinions on Israeli law within 24–48 hours, accepted by courts worldwide.

Contact Us →
← 1…345…9 →

Page 4 of 9

Read the entire law on one page — continuous text, no page breaks, plus PDF downloads.