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 XIIIA: Administrative Enforcement Measures
Section A: Definitions
Definitions – Chapter XIIIA§
223a.
In this Chapter –
"importer" – the owner of goods being imported into Israel who is one of the following:
(1)a person who imports goods for business purposes;
(2)a non-profit organisation or financial institution that imports goods for the purposes of its activity;
(3)a person who imports goods for personal use, in respect of whom conditions prescribed by the Minister of Finance, with the consent of the Minister of Justice, are met;
"exporter" – the owner of goods who seeks to export them from Israel, who is one of the following:
(1)a person who exports goods for business purposes;
(2)a non-profit organisation or financial institution that exports goods for the purposes of its activity;
(3)a person who exports goods for personal use, in respect of whom conditions prescribed by the Minister of Finance, with the consent of the Minister of Justice, are met;
"non-profit organisation", "financial institution" and "business" – as defined in the Value Added Tax Law;
"personal use" – as defined in section 129.
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 →Section B: Financial Penalty
Financial Penalty§
223b.
(a)Where a person has submitted a manifest containing incorrect particulars, contrary to the provisions of section 53(a)(1)(a), 53(a)(2), 53(a)(3) or 53(a)(4), the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of NIS 2,500.
(b)Where an importer or exporter has contravened a provision of the provisions under this Ordinance, as specified below, the Director may impose on that person a financial penalty in accordance with the provisions of this Section at a rate of 10% of the difference in import taxes that arose, or NIS 5,000, whichever is higher, unless it has been proved to the satisfaction of the Director that the importer or exporter provided the customs agent with all the documents and particulars required to be provided for the submission of a declaration on their behalf:
(1)an importer who submitted, personally or through a customs agent, an import declaration containing an incorrect particular, or who did not attach to the import declaration so submitted a document that was required to be attached thereto, contrary to the provisions under section 62, except for a document referred to in section 62(c)(2) that is required under the Import and Export Ordinance;
(2)an exporter who submitted, personally or through a customs agent, an export declaration containing an incorrect particular, or who did not attach to the export declaration so submitted a document that was required to be attached thereto, contrary to the provisions under section 103, except for a document referred to in section 103(c)(2) that is required under the Import and Export Ordinance.
(c)Where a customs agent has contravened a provision of the provisions under this Ordinance, as specified below, the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of 1% of the difference in import taxes that arose, but not more than NIS 5,000 and not less than NIS 500, unless it has been proved to the satisfaction of the Director that the incorrect particular included in the declaration was provided to the customs agent by the importer or exporter, as the case may be:
(1)the customs agent submitted an import declaration containing an incorrect particular, or did not attach to the import declaration so submitted a document that was required to be attached thereto, contrary to the provisions under section 62;
(2)the customs agent submitted an export declaration containing an incorrect particular, or did not attach to the export declaration so submitted a document that was required to be attached thereto, contrary to the provisions under section 103;
provided that if no difference in import taxes arose as a result of a contravention referred to in this subsection, the Director may impose on the contravener a financial penalty in accordance with the provisions of this Section in the amount of NIS 500.
(d)Where a customs agent has contravened a provision of the provisions of subsection (c)(1), and the contravention was committed in one of the circumstances listed below, and no difference in import taxes arose as a result of a contravention under this Section exceeding NIS 500 in respect of a single import declaration, the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of NIS 150 in respect of each import declaration:
(1)the customs agent submitted an import declaration containing one or more incorrect particulars from among the following:
(a)importer number;
(b)type of currency;
(c)origin of the goods;
(d)bill of lading number;
(e)classification of the goods;
(2)the customs agent did not attach one of the following documents in cases where the customs agent was required to attach them, and the documents were in the customs agent's possession at the time of submission of the import declaration:
(a)a freight invoice or bill of lading or airway bill;
(b)a transport invoice;
(c)a preference document;
(d)a commercial invoice.
(e)Where a customs agent has not verified the signature of the owner of the goods on the letter of authorisation, contrary to the provisions of section 168(b), the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of NIS 400.
(f)Where a customs agent has submitted to the customs authority a letter of authorisation contrary to the provisions of section 168(b), the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of NIS 5,000.
(g)Where a person has contravened a provision of the provisions under this Ordinance, as specified below, the Director may impose on that person a financial penalty in accordance with the provisions of this Section in the amount of NIS 25,000:
(1)a person who did not submit a manifest on time, contrary to the provisions applicable to that person, as specified below, as the case may be:
(a)a shipping agent, master of a vessel, international freight forwarder or shipping company – contrary to the provisions of section 53(a)(1) or (2);
(b)a carrier airline – contrary to the provisions of section 53(a)(3);
(c)a customs agent of an importer – contrary to the provisions of section 53(a)(4);
(2)the holder of a warehouse licence who acted contrary to the conditions of the licence, contrary to the provisions of section 68(a);
(3)the holder of a warehouse licence who stored goods in a warehouse without clearance having been granted in respect of them, contrary to the provisions of section 68(b).
(h)The holder of a warehouse licence who has contravened a provision of the provisions under section 232, as specified in Column A of the Schedule, may have a financial penalty imposed on that person by the Director in the amount set out in Column B alongside it.
Notice of Intent to Charge§
223c.
(a)Where the Director has reasonable grounds to believe that a person has contravened a provision of the provisions under this Ordinance, as referred to in section 223b (in this Chapter – the contravener), and intends to impose a financial penalty on that person under that section, the Director shall give the contravener notice of the intention to impose a financial penalty on that person (in this Chapter – notice of intent to charge).
(b)In a notice of intent to charge, the Director shall specify, inter alia, the following:
(1)the act or omission (in this Chapter – the act) constituting the contravention;
(2)the amount of the financial penalty and the period for its payment;
(3)the contravener's right to submit submissions before the Director in accordance with the provisions of section 223d;
(4)the power to add to the amount of the financial penalty in respect of a continuing contravention or a repeated contravention in accordance with the provisions of section 223f, and the date from which the contravention shall be regarded as a continuing contravention for the purposes of that section.
Right to Submit Submissions§
223d.
A contravener to whom a notice of intent to charge has been given in accordance with the provisions of section 223c may submit submissions, in writing, before the Director, regarding the intention to impose a financial penalty on that person and regarding its amount, within 30 days of the date of delivery of the notice, and the Director may extend the said period by a further period not exceeding 30 days.
Director's Decision and Payment Demand§
223e.
(a)The Director shall decide, after considering the submissions made in accordance with section 223d, whether to impose a financial penalty on the contravener, and may reduce the amount of the financial penalty in accordance with the provisions of section 223g.
(b)Where the Director has decided in accordance with the provisions of subsection (a) –
(1)to impose a financial penalty on the contravener – the Director shall give the contravener a demand, in writing, to pay the financial penalty (in this Chapter – payment demand), specifying, inter alia, the updated amount of the financial penalty and the period for its payment;
(2)not to impose a financial penalty on the contravener – the Director shall give the contravener notice thereof, in writing.
(c)In the payment demand or notice, under subsection (b), the Director shall set out the reasons for the decision.
(d)Where the contravener did not submit submissions in accordance with the provisions of section 223d within the period referred to in that section, the notice of intent to charge shall be deemed, upon the expiry of that period, to be a payment demand given to the contravener on that date.
Continuing Contravention and Repeated Contravention§
223f.
(a)In the case of a continuing contravention, one fiftieth of the financial penalty prescribed for that contravention shall be added to the financial penalty for each day on which the contravention continues.
(b)In the case of a repeated contravention, an amount equal to the financial penalty prescribed for that contravention shall be added to the financial penalty; for this purpose, "repeated contravention" – the contravention of a provision of the provisions under this Ordinance, as referred to in section 223b, within two years of a previous contravention of the same provision in respect of which a financial penalty was imposed on the contravener or for which the contravener was convicted.
Reduced Amounts§
223g.
(a)The Director may not impose a financial penalty in an amount lower than the amounts prescribed in this Section, except in accordance with the provisions of subsection (b).
(b)The Minister of Finance, in consultation with the Minister of Justice, may prescribe cases, circumstances and considerations by reason of which it shall be possible to impose a financial penalty in an amount lower than the amounts prescribed in this Section or in the Schedule, and at the rates to be prescribed.
Updated Amount of the Financial Penalty§
223h.
(a)The financial penalty shall be in accordance with its updated amount on the date of delivery of the payment demand, and in respect of a contravener who did not submit submissions before the Director as referred to in section 223d – on the date of delivery of the notice of intent to charge; where an appeal has been filed with a court in accordance with section 223p and the payment of the financial penalty has been stayed by the Director or by the court – the financial penalty shall be in accordance with its updated amount on the date of the decision on the appeal.
(b)The amounts of the financial penalty prescribed in section 223b and in the Schedule shall be updated on 1 January of each year (in this subsection – the update date), in accordance with the rate of change of the index known on the update date as compared with the index that was known on 1 January of the preceding year; the said amount shall be rounded to the nearest amount that is a multiple of NIS 10; for this purpose, "index" – the Consumer Price Index published by the Central Bureau of Statistics.
(c)The Director shall publish in Reshumot (Official Gazette) a notice of the updated amounts of the financial penalty in accordance with subsection (b).
Time for Payment of Financial Penalty§
223i.
The contravener shall pay the financial penalty within 30 days of the date of delivery of the payment demand as referred to in section 223e.
Shekel Interest and Late Payment Charges§
223j.
(a)Where a contravener has not paid a financial penalty on time, shekel interest and late payment charges shall be added to the financial penalty for the period of default, until its payment, and the provisions of the Interest and Linkage Law shall apply, with the necessary modifications.
(b)Notwithstanding the provisions of section 231a, the provisions of section 100 of the Value Added Tax Law shall not apply with respect to shekel interest and late payment charges as referred to in subsection (a).
Collection§
223k.
A financial penalty shall be collected to the State Treasury and the Tax (Collection) Ordinance shall apply to its collection.
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 →Section C: Administrative Warning
Administrative Warning§
223l.
(a)Where the Director has reasonable grounds to believe that a person has contravened a provision of the provisions under this Ordinance, as referred to in section 223b, and the circumstances prescribed by the Director in procedures, with the approval of the Attorney General, are present, the Director may, instead of giving that person a notice of intent to charge and imposing a financial penalty on that person in accordance with the provisions of Section B, give that person an administrative warning in accordance with the provisions of this Section; in this subsection, "Attorney General" – includes a Deputy Attorney General whom the Attorney General has authorised for this purpose.
(b)In an administrative warning, the Director shall specify the act constituting the contravention, shall notify the contravener that the contravener must cease the contravention and that if the contravener continues the contravention or repeats it, the contravener will be liable to a financial penalty in respect of a continuing contravention or a repeated contravention, as the case may be, as referred to in section 223n, and shall also specify the contravener's right to request the cancellation of the warning in accordance with the provisions of section 223m.
Cancellation of Administrative Warning§
223m.
(a)Where an administrative warning has been given to a contravener as referred to in section 223l, the contravener may apply to the Director, in writing, within 30 days, with a request to cancel the warning on one of the following grounds:
(1)the contravener did not commit the contravention;
(2)the act committed by the contravener, as specified in the warning, does not constitute a contravention.
(b)Where the Director has received a request for the cancellation of an administrative warning in accordance with the provisions of subsection (a), the Director may cancel the warning or reject the request and leave the warning in place; the Director's decision shall be given in writing and shall be delivered to the contravener together with reasons.
Continuing Contravention and Repeated Contravention following a Warning§
223n.
(a)Where an administrative warning has been given to a contravener in accordance with the provisions of this Section and the contravener has continued to contravene the provision in respect of which the warning was given, the Commissioner shall give the contravener a payment demand in respect of a continuing contravention as referred to in section 223f.
(b)Where an administrative warning has been given to a contravener in accordance with the provisions of this Section and the contravener has again contravened the provision in respect of which the warning was sent, within two years of the date of delivery of the warning, the additional contravention referred to shall be regarded as a repeated contravention for the purposes of section 223f(b), and the Director shall give the contravener a notice of intent to charge in accordance with the provisions of section 223c in respect of the repeated contravention.
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 →Read the entire law on one page — continuous text, no page breaks, plus PDF downloads.