Israel Customs & VAT, Additional Clarification

Due to questions and requests which were received regarding additional clarification to our notices of June 24, 2003 and September 16, 2003, I wish to note the following:
A.	The classification stated in the Bill of Lading and on the Manifest must be correct, however this does not obligate the importer, customs agent or the Department of Customs and V.A.T. If the customs agent (or importer) reaches the conclusion, on a professional basis, that the classification is different from the one noted on the Bill of Lading, he must note the correct classification on the import entry.
B.	Discrepancies in classification between the Manifest and the entry will not automatically entail a complete inspection of the shipment, however, under certain circumstances, this may cause delays.
C.	In cases in which a customs agent rejects the classification noted on the Bill of Lading and classifies the goods in the import entry differently from the classification noted by the supplier, and eventually it becomes evident that the supplier's classification was correct, the claim of the importer may be compromised in Accordance to Paragraph 3 of the Indirect Tax Law, (tax that was over or under-paid), because in such cases, the importer can not claim that he did not know or could not have known the correct classification of the goods. Therefore, in cases where there is a contradiction between the classification indicated on the Bill of Lading/Manifest, and the professional knowledge of the customs agent, the customs agent must use extreme care before proceeding and examine the case thoroughly, including consulting with the Customs House, if so required.
D.	In cases where the shipment arrives to Israel but is intended for Transit, including cases in which the shipment remains on the transport vessel and is not unloaded in Israel, the Registered Dealer Number of the shipping agent for V.A.T. purposes must be indicated on the Manifest.
E.	In rare cases, both the "Consignee" and the "Notify" party reside abroad. In these cases, the Registered Dealer Number of the shipping agent must be indicated on the Manifest as well.
F.	In cases in which the "Consignee" noted on the Bill of Lading resides abroad and the "Notify" party (which should be the importer) resides in Israel, the Identification Number of the "Notify" party (Importer Number) must be noted on the Manifest.
G.	If the Bill of Lading arrives with missing information (no importer or supplier I.D. number, or no Customs Heading), the shipping agent and/or the international freight forwarder have the authority and the obligation to complete the missing information to the best of their ability when submitting the Manifest or Sub-manifest.
H.	A Manifest which is submitted with missing information will not lead to its disqualification, however, the clearance of the goods with the missing information may be delayed.
I.	In general, in cases in which a transaction is signed between an Israeli importer and a supplier in Country A, and the goods are to be sent to Israel by a manufacturer in Country B, the supplier's information which will be noted on the importation documents (Bill of Lading and Manifest) will be the person or the entity noted as the "Shipper" in the Bill of Lading.
J.	In a "Master" Bill of Lading of consolidations, it is customary that the international freight forwarder in the exporting country is noted as the "Shipper" and the "Consignee" is the international freight forwarder in Israel. This practice is accepted in international trade and will continue to be so, by indicating the identification numbers of the relevant forwarders. The internal Bill of Lading issued by the forwarder abroad and the sub-manifest submitted by the forwarder in Israel, must already indicate the Supplier and Importers' identification numbers.
K.	Abbreviations and acronyms may be used for the purpose of describing goods on the Bill of Lading and on the Manifest, provided that these are clear abbreviations which can be understood by any reasonable person. Unclear abbreviations will not be accepted.
L.	In shipments sent directly by foreign governments, the identification number for the purpose of foreign trade of the Governmental office sending the shipment must be noted. The original manufacturers and suppliers need not be indicated.
M.	The Department of Customs and V.A.T. will enact a policy of consideration for the first few months after initiation these regulations.
N.	The Department of Customs and V.A.T. requires the supplier's identification number on the Manifest. This may be the manufacturer, but it may also be a commercial company in cases in which the transaction was signed between the importer and a commercial company. In such cases, there is no need to note on the Bill of Lading or on the Manifest the manufacturer's name or number. As noted above, if the transportation transaction was conducted between a shipping company and an international freight forwarder, the forwarder will be indicated as the "Shipper" on the Bill of Lading and the Manifest. However, the actual importer's information must be noted on the internal Bill of Lading issued by the freight forwarder and on the sub- Manifest submitted by the international freight forwarder in Israel.
O.	Shipments intended for Government offices or authorities in Israel are not exempt from the obligation to note the unequivocal identification number of the supplier, importer and goods.
P.	In the near future, a letter will be published (in Hebrew and English) indicating the regulations concerning shipments sent to an importer in Israel by various suppliers under one Bill of Lading (Assembly).
We will continue to clarify any issues or concerns which will arise. Sincerely, Ruben Meltzer Chief Coordinator Department of Customs and VAT

Revised 09.02.2005 Copyright © 2005, The State of Israel. All Rights Reserved. (Terms of Use)