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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
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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

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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.

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Section D: Miscellaneous Provisions

Financial Penalty for a Contravention under this Ordinance and under Another Law§
223o.

For a single act constituting a contravention of a provision of the provisions under this Ordinance listed in section 223b and of a provision of the provisions under another law, not more than one financial penalty shall be imposed.

Appeal§
223p.
(a)A final decision of the Director under this Chapter may be appealed to the Magistrate's Court before which the President of the Magistrate's Court sits; such an appeal shall be filed within 30 days of the date on which notice of the decision was given to the contravener.
(b)The filing of an appeal under subsection (a) shall not stay the payment of the financial penalty, unless the Director has agreed thereto or the court has so ordered.
(c)Where the court has decided to allow an appeal filed under subsection (a), after the financial penalty has been paid, and has ordered the return of the amount of the financial penalty paid or the reduction of the financial penalty, the amount paid or any part thereof that has been reduced shall be returned, with the addition of shekel interest from the date of its payment until the date of its return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.
Publication of Financial Penalty§
223q.
(a)Where the Director has imposed a financial penalty under this Chapter, the Director shall publish on the Israel Tax Authority website the following particulars, in a manner that ensures transparency with respect to the exercise of the Director's discretion in making the decision to impose a financial penalty:
(1)the fact of the imposition of the financial penalty;
(2)the nature of the contravention in respect of which the financial penalty was imposed and the circumstances of the contravention;
(3)the amount of the financial penalty imposed;
(4)where the financial penalty has been reduced – the circumstances by reason of which the amount of the financial penalty was reduced and the rate of the reduction;
(5)relevant particulars concerning the contravener, excluding particulars that could identify the contravener.
(b)Where an appeal has been filed under section 223p, the Director shall publish, in the publication under subsection (a), also the fact of the filing of the appeal and its outcome.
(c)Notwithstanding the provisions of this section, the Director shall not publish particulars that constitute information that a public authority is precluded from disclosing under section 9(a) of the Freedom of Information Law, 5758-1998, and may also refrain from publishing particulars under this section that constitute information that a public authority is not required to disclose under section 9(b) of that Law.
(d)A publication under this section in respect of a financial penalty imposed on a corporation shall be for a period not exceeding four years, and in respect of a financial penalty imposed on an individual – for a period of two years.
(e)The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe additional ways of publishing the particulars referred to in this section.
Preservation of Criminal Liability§
223r.
(a)The payment of a financial penalty or the delivery of an administrative warning under this Chapter shall not derogate from a person's criminal liability for the contravention of a provision of the provisions under this Ordinance listed in section 223b that constitutes an offence.
(b)Where the Director has sent to a contravener a notice of intent to charge or has given the contravener an administrative warning in respect of a contravention that constitutes an offence as referred to in subsection (a), no indictment shall be filed against the contravener in respect of that contravention, unless new facts have come to light that justify doing so.
(c)Where an indictment has been filed against a person in respect of a contravention that constitutes an offence as referred to in subsection (a), the Director shall not take proceedings against that person under this Chapter in respect of that contravention, and if an indictment was filed in the circumstances referred to in subsection (b) after the contravener had paid a financial penalty – the amount shall be returned to the contravener, with the addition of shekel interest from the date of payment of the financial penalty until the date of its return, and the provisions of the Interest and Linkage Law shall apply with respect to such interest, with the necessary modifications.

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Chapter XIV: Customs Prosecutions

Definition§

224.

Prosecutions for offences under this Ordinance, and any proceedings for the recovery of customs duty or penalties, or for the confiscation or forfeiture of vessels, conveyances or goods, are hereinafter referred to as "customs prosecutions".

How a Prosecution is Filed§

225.
(a)Customs prosecutions may be instituted in the name of the Attorney General of the Government or in the name of the Director, by way of a civil action, indictment or other appropriate proceeding, before the court having jurisdiction in the matter.
(b)The right of appeal shall be in accordance with the rules relating to appeals in criminal cases.
(c)Where the decision being appealed relates to customs duty or a fine liable to be imposed on a vessel, conveyance or goods, the appellant shall deposit with the court, pending the determination of the appeal, the amount payable under the decision; provided that if the amount exceeds 500 liras, the court competent to hear the appeal may permit the filing of the appeal upon the deposit of an amount less than the amount payable under the decision.
226.§

(Repealed — תיקון מס' 28, 2018)

Immunity of Witnesses§

227.

A witness on behalf of the Attorney General or on behalf of the Director in a customs prosecution shall not be compelled to disclose the fact that he received information, or the nature of the information, or the name of the informant; and a customs officer who gives evidence shall not be compelled to produce reports that he prepared or received in confidence by virtue of his official capacity or that contain confidential information.

Proof of Regulations, etc.§

228.

The production of the Reshumot (Official Gazette) containing an order or regulation purporting to be made under this Ordinance, or the production of a document certified by the collector of customs as a true copy or extract of an order or regulation made under this Ordinance, shall be prima facie evidence that the order or regulation was made and is in force.

Burden of Proof§

229.

Where a question arises in a customs prosecution, or in proceedings under section 192 for the return of a vessel, conveyance or goods seized by a customs officer, whether customs duty on goods has been paid or not, or whether goods were imported into Israel or exported therefrom, or carried coastwise, or unloaded or loaded, lawfully, the burden of proof that the duty was paid or that the dealing with the goods was lawful shall, in a customs prosecution, rest on the accused and, in proceedings as aforesaid, rest on the plaintiff.

Effect of Conviction as Condemnation§

230.

Where the commission of an offence entails the forfeiture of a vessel, conveyance or goods, the conviction for that offence, or the judgment or decision of the court to recover any part of a fine associated with the commission of that offence, shall operate as a condemnation of the vessel, conveyance or goods in respect of which the offence was committed.

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Chapter XIVA: Electronic Reporting

Definitions – Chapter XIVA§

230a.

In this Chapter –

"electronic reporting" – the submission of a document by means of an electronic message signed with an approved electronic signature and capable of electronic storage and production as output;

"approved electronic signature" – as defined in the Electronic Signature Law.

Duty of Electronic Reporting§

230b.
(a)An import declaration, an export declaration, a manifest and a signed power of attorney shall be submitted to the customs authority by means of an electronic message signed by the submitter with an approved electronic signature (in this Chapter – an approved electronic message), in accordance with the provisions made under this Chapter.
(b)The Director may, by rules, prescribe additional documents, beyond the documents listed in subsection (a), that shall be submitted to the customs authority by means of an approved electronic message.

Retention of a Document Submitted as an Electronic Message§

230c.

An owner of goods who is required to submit a document by means of an electronic message shall retain the document, including any document attached thereto, in the manner prescribed by the Director in rules.

Service of an Electronic Message by the Customs Authority§

230d.

A notice, demand or any other document that the Director or an employee of the customs authority authorised by the Director for that purpose is entitled to serve under this Ordinance on an addressee may be drawn up as an electronic message and served on the addressee in the manner prescribed by the Director in rules.

Presumption of Service§

230e.
(a)An electronic message as referred to in section 230d, sent to an addressee by means of the computerised system of the customs authority, shall be presumed to have been served on the addressee at the expiry of three business days from the date of its dispatch, provided that both of the following conditions are met:
(1)upon each entry of the addressee into the system to which the message was sent (in this section – the receiving system), a prominent indication shall be displayed that a new electronic message has been received that has not been read by the addressee;
(2)the receiving system enables the addressee to produce a software log (log) attesting to the dates of his entry into the system.
(b)The presumption referred to in subsection (a) may be rebutted by the addressee, inter alia, by producing a software log as referred to in paragraph (2) of that subsection showing that the addressee was prevented from connecting to the receiving system during the period following the expiry of the period referred to in the opening words of subsection (a) owing to a malfunction in that system.

Rules on Electronic Reporting§

230f.

The Director may prescribe in rules provisions on the following matters:

(1)the conditions and approval procedures for connection to the computerised system of the customs authority for the purpose of electronic reporting to the customs authority;
(2)the manner of electronic reporting;
(3)minimum requirements for hardware and software systems used for electronic reporting;
(4)the structure and format of the forms to be used for electronic reporting.

Software Registry§

230g.
(a)For the purpose of securing electronic reporting as referred to in this Chapter, the Director shall maintain a registry of software programmes that meet the requirements prescribed pursuant to section 230f(3) (in this section – the software registry); the software registry shall be published on the website of the Tax Authority.
(b)No person shall use software for the purpose of implementing the provisions of this Ordinance unless it is registered in the software registry.

Malfunction in Hardware or Software System§

230h.

Where there is a malfunction or shutdown in a hardware or software system used by the customs authority for the receipt or dispatch of an electronic message pursuant to the provisions of this Ordinance, the Director may prescribe in rules provisions regarding receipt or dispatch otherwise than by means of an electronic message, which shall apply subject to such conditions and for such period as he shall prescribe; notice of the prescription of such provisions shall be published on the website of the Tax Authority.

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Chapter XV: Miscellaneous Provisions

Power to Compound Offences§

231.
(a)For an offence or any act committed, or suspected of having been committed, by a person in contravention of the provisions of this Ordinance, the Director and any other customs officer authorised by the Government for that purpose by Order may compound it by accepting from that person a payment of money not exceeding the maximum pecuniary penalty to which that person may be liable under this Ordinance in respect of that offence or that act.
(b)Where a vessel, conveyance or goods or other things are liable to forfeiture under this Ordinance by reason of an offence or act committed in respect thereof, and the offence or act is compounded as aforesaid, the Director or the authorised customs officer may forfeit them.
(c)Upon payment of the said composition to the Director or to the authorised customs officer, no further proceedings shall be taken in respect of that offence or that act against the person with whom the composition was made, and if that person is in custody he shall be released.
(d)The provisions of this section shall not apply to an offence under paragraphs (4) or (6) of section 212(a), unless it was committed by a person who is not an importer or exporter as defined in section 223a, and likewise if it was committed in connection with a document as referred to in sections 62(c)(2) or 103(c)(2), as the case may be, required under the Import and Export Ordinance.

Application of Provisions of the Value Added Tax Law§

231a.

The provisions of sections 1a(a), 100, 102a, 103, 106, 106b, 108, 135 and 141 of the Value Added Tax Law, 5736-1975, shall apply, with such modifications as are required by the context, in relation to customs duty under this Ordinance.

Methods of Collection§

231a1.
(a)The Tax Ordinance (Collection) shall apply to the collection of tax and a fee imposed under this Ordinance, and any amount imposed pursuant to sections 83, 84, 203(b), 203a(b) and 231c, which may also be collected by way of a civil action.
(b)The provisions of sections 102(b) and 102b of the Value Added Tax Law, 5736-1975, shall apply to collection as referred to in subsection (a), with such modifications as are required.

Duty of Confidentiality§

231a2.
(a)No person shall disclose information that came to his knowledge in the course of the implementation of this Ordinance, except in one of the following cases:
(1)the Minister of Finance has permitted its disclosure;
(2)the information is required by the customs authority or by a competent authority for the purpose of implementing this Ordinance or implementing another law regulating the importation or exportation of goods or the supervision of imported or exported goods, or the regulations thereunder, in the case and to the extent required; in this paragraph, "competent authority" – as defined in section 2b(a) of the Import and Export Ordinance;
(2a)the information is required by the Standards Commissioner for the exercise of his powers under the Import and Export Ordinance or in order to facilitate its implementation on an ongoing basis, in accordance with the provisions under section 2l1 of that Ordinance;
(3)it is required to be disclosed in legal proceedings under this Ordinance or a tax law within the meaning of the Law for the Amendment of Tax Laws (Exchange of Information between Tax Authorities), 5727-1967;
(4)the information is as detailed in section 384a of the National Insurance Law [Consolidated Version], 5755-1995, or in regulations thereunder, provided that such information shall be transmitted to the National Insurance Institute and that this information is required for the purposes referred to in that section, and to the extent required.
(b)For the purpose of subsection (a)(1), the Minister of Finance may grant a permit for the disclosure of categories of information, provided that such a permit shall be granted to holders of positions specified therein for the purpose of performing their duties as required by law, and on grounds that shall be recorded.
(c)A person to whom information has come pursuant to the provisions of subsection (a) shall be regarded as having received it in the course of the implementation of this Ordinance.
(d)A person who discloses information that came to his knowledge in the course of the implementation of this Ordinance, in contravention of the provisions of this section, is liable to imprisonment for one year or a fine of NIS 19,300.
231b.§

(Repealed — תיקון מס' 10, 1985)

Administrative Fine in respect of Goods Imported by Post§

231c.
(a)Where goods in packaging are imported by post and they fulfil, in the opinion of the Director, the conditions set out in sections 39(b) or 204(9), the Director may accept from the consignee, with the consignee's consent, in addition to the customs duty applicable to the goods, double the customs duty, but not more than NIS 1,000, in lieu of forfeiting them.
(b)(Repealed).
(c)Where a person has paid double customs duty as referred to in this section, the provisions of section 231(c) shall apply as if a composition had been paid, and it shall not be regarded as a conviction for any purpose whatsoever.

Reporting in respect of Opinions§

231d.
(a)In this section –

"opinion" – a written opinion, signed by the opinion-giver, provided, directly or indirectly, to a person and enabling or intended to enable a tax advantage, provided that one of the following applies to it:

(1)the fee for the opinion, in whole or in part, is contingent on the amount of the tax advantage that will accrue to the recipient of the opinion;
(2)it is a shelf scheme;

"tax advantage" – includes any of the following:

(1)a discount or relief from tax, deferral of the tax event, reduction of the amount of tax, or avoidance of tax;
(2)a refund of tax;
(3)a deferral of the date of payment of tax;

"tax" – import taxes;

"fee" – an amount of at least NIS 100,000, agreed between the parties to be paid for the opinion in respect of the maximum total tax saving that will accrue to the recipient of the opinion;

"shelf scheme" – one of the following:

(1)an opinion consisting primarily of uniform content on the same subject, provided directly or indirectly by the opinion-giver to at least three taxable persons within a period of two years, subject to the provisions of subsection (e), who are not relatives, and which does not depend primarily on the particular circumstances of each taxable person; for this purpose, "relative" – as defined in paragraphs (1) or (2) of section 88 of the Income Tax Ordinance [New Version];
(2)an opinion that the opinion-giver offered to the recipient on his own initiative, and the recipient was bound by a duty of confidentiality as to its content, in whole or in part.
(b)
(1)A person who received an opinion shall report it on a form to be prescribed by the Director, within 60 days from the end of the tax year in which the tax advantage in respect of the opinion was obtained, provided that the submission of the opinion itself to the Tax Authority shall not be required; the report shall detail only the following:
(a)the fact of receipt of the opinion;
(b)the transaction or asset dealt with in the opinion;
(c)the type of taxation issue affected by the opinion, as prescribed by the Director;
(2)Where a person received an opinion after the end of the tax year, he shall report it on the form referred to in paragraph (1), within 60 days from the date on which he received it.
(c)Notwithstanding the provisions of subsection (b), a person shall not be liable to report –
(1)in respect of a shelf scheme as referred to in paragraph (1) only of the definition of "shelf scheme" for which no notice has been given pursuant to subsection (d);
(2)in respect of an opinion provided to him regarding issues dealt with in proceedings in connection with a demand for underpayment as defined in the Indirect Taxes Law (Tax Paid in Excess or in Deficit), 5728-1968, provided that the opinion was provided during the period in which such proceedings are taking place and in respect of the same import declaration.
(d)A person who provided an opinion that is a shelf scheme under paragraph (1) of the definition of "shelf scheme" shall give notice thereof to the person who received it, provided that that person is the third or subsequent person to whom the opinion was provided.
(e)The provisions of this section shall not apply to a public institution within the meaning of section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation in the Value Added Tax Law, 5736-1975, to a dealer whose turnover does not exceed NIS 3 million, or to goods imported for personal use as defined in section 129.

Reportable Position§

231e.
(a)In this section –

"tax" and "tax advantage" – as defined in section 231d;

"reportable position" – a position in which all of the following apply:

(1)it is contrary to a position published by the Tax Authority by the end of the preceding tax year;
(2)the tax advantage arising from it exceeds NIS 2 million in a year or NIS 5 million over a period of no more than four years.
(b)
(1)The position of the Tax Authority as referred to in paragraph (1) of the definition of "reportable position" shall be published in a separate place on the website of the Tax Authority, after the Israel Bar Association, the Institute of Certified Public Accountants in Israel, the chamber as defined in the Law for the Regulation of the Practice of Representation by Tax Consultants, 5765-2005, and the body representing customs agents as defined in the Customs Agents Law, 5725-1964, have been given a reasonable opportunity to present their arguments regarding it prior to its publication;
(2)the position of the Tax Authority shall be formulated in clear and comprehensible language;
(3)
(a)the number of positions to be published by the Tax Authority shall not exceed 25 in a year; should the Tax Authority seek to publish additional positions in the same year, the Minister of Finance shall submit the additional number of positions sought to be published as aforesaid for approval by the Finance Committee of the Knesset;
(b)notwithstanding the provisions of sub-paragraph (a), in 2016 and 2017 the Tax Authority shall be entitled to publish 50 positions in each year.
(c)A person who adopts a reportable position shall report it on a form to be prescribed by the Director, within 60 days from the end of the tax year in which he adopted a reportable position as aforesaid.
(d)The provisions of this section shall not apply to a public institution within the meaning of section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation in the Value Added Tax Law, 5736-1975, or to a dealer whose turnover does not exceed NIS 3 million.

Regulations§

232.

The Minister of Finance may make Regulations on any matter that this Ordinance requires or permits to be prescribed and on anything relating to the implementation of this Ordinance or to the management of any matter relating to the customs authority, and in particular Regulations prescribing:

(1)the conditions under which the transit of goods through Israel is permitted;
(2)the fees payable for the examination of goods, a licence, a certificate or a form issued under this Ordinance and generally;
(3)the charge to be levied for the storage of goods in a place under the supervision of the customs authority;
(4)the conditions under which goods that are the subject of an agreement with the government of another country may be brought into or taken out of Israel;
(5)the method by which temporary admission of goods without payment of customs duty may be authorised;
(6)the reward to be given to a person who furnishes information regarding customs offences or who seizes smuggled goods;
(7)the maximum rates that may be charged for the porterage of goods in a place under the supervision of the customs authority.

Amendment of the Schedule§

232a.

The Minister of Finance may, by Order, with the consent of the Minister of Justice, amend the Schedule, provided that the amount of the financial penalty to be prescribed in respect of a breach of any of the provisions under section 232, as detailed in Column B of the Schedule, shall not exceed NIS 50,000.

Vessels on Mission Required to Submit Manifest§

233.

A person in command of a vessel on a mission of the State of Israel or on a mission of a foreign state, on board which there are goods loaded abroad that are not ship's stores, is required, at the demand of the Director or a customs officer authorised by him –

(1)to submit in writing a specification of the quantity of those goods, their marks and numbers, the names of their shippers and consignees, and a declaration as to the truth of the matters stated;
(2)to answer questions in relation to those goods.

Power to Search Vessels on Mission§

234.

A customs officer specially authorised for that purpose may board and search a vessel on a mission of the State of Israel or on a mission of a foreign state on board which there are goods loaded abroad that are not ship's stores, in the same manner as any other vessel, and may bring the goods ashore and place them in a customs warehouse.

Reward for Apprehension of Smugglers§

235.

Where a customs officer or any other person apprehends a person liable to apprehension under any of the customs laws and the person apprehended is convicted, the Government may grant the person who carried out the apprehension such reward as it thinks fit, provided that it shall not exceed 25 pounds for each person so apprehended.

236.§

(Repealed — תיקון מס' 20, 2003)

Power to Restore Seized Property and to Mitigate Penalties§

237.

Where anything has been seized, or a fine or other penalty has accrued or been imposed, the Government may direct the restoration of the seized property, whether already forfeited or not, or may waive proceedings or mitigate or remit the fine or the penalty.

Existing Warehouses under Agreement§

238.

Any warehouse that held a licence on the date of commencement of this Ordinance by virtue of a valid agreement with the State of Israel, and any warehouse established and licensed after the commencement of this Ordinance by virtue of such an agreement, shall be deemed to be licensed under this Ordinance for the full period of that licence and shall be liable to pay a fee in accordance with the terms of that agreement.

Facilitations in Import Procedures for Authorised Operators§

238a.

For the purpose of facilitating foreign trade processes, securing the global supply chain and strengthening security measures in those processes, the Director may grant to operators whom he authorises facilitations in import procedures under this Ordinance; the Director shall prescribe the types of facilitations as aforesaid that are to be granted and the conditions under which the facilitations are to be granted.

Director May Prescribe Forms§

239.

The Director may, by Order, prescribe the form of bonds, certificates and documents required for the implementation of this Ordinance, and may make alterations and additions to those forms.

Burden of Proof§

239a.

In proceedings to which section 229 does not apply, a person who claims that he has paid the customs duty due, or that he has duly submitted a declaration, or that a due release has been granted in respect of goods included in a declaration, bears the burden of proof.

Exemption from Signature§

239b.
(a)Any document issued by the customs authority under the provisions of this Ordinance in which the name or title of the person issuing it is indicated does not require his handwritten signature.
(b)(Repealed).

Requirements Relating to Forms§

240.
(a)Where a prescribed form contains, by way of note or otherwise, a clear instruction or indication regarding the requirements of the customs authority in respect of any of the matters mentioned below, those requirements shall be deemed to have been prescribed, and those matters are:
(1)the colour or dimensions of the form;
(2)the number of copies of the certificates to be submitted;
(3)the nature or form of the information to be furnished to the customs authority;
(4)an act that the person concerned or his authorised representative is required to perform in the transaction in which the certificate is used;
(5)receipts that ships' officers, railway officers or other persons are required to sign as proof that the goods described in the form have been received for carriage or for another purpose.
(b)The Director may require copies of a prescribed form in addition to the number of copies specified in the form.
(c)Where forms have been prescribed that differ from the existing forms, the Director may permit the continued use of the existing forms for such period as he thinks fit.

Sale of Goods§

241.

The sale of goods by the customs authority shall be carried out in accordance with the conditions prescribed, and the proceeds of the customs duty shall be dealt with in the manner prescribed.

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