CLASSIFICATIONS AND TAXATION ON IMPORTS
RECEIVING INFORMATION FROM THE DEPARTMENT OF CUSTOMS & VAT

This Document Deals with Commercial Importation of Goods

     General Explanation of Customs Tariff Act, Classification/Customs Heading
     Receiving Classification Information from the Department of Customs & VAT
  Requests From Within Israel
  Requests From Abroad

     How and Where to make a request
  From Within Israel
  From Abroad

1) General Explanation of Customs Tariff Act, Classification/Customs Heading

     "Custom Tariff & Purchase Tax Order"

The Department of Customs & VAT is divided into different sections, one of which is Classification. The Classification Section is responsible for overseeing the giving and publishing of information concerning the classification of goods, as well as import duties.

The classification of goods in Israel is based on the Harmonized System nomenclature, generally referred to as HS. The HS commodity classification system divides goods in 22 different sections, which are divided into 97 different chapters overall. These 97 chapters are then further subdivided again. It is recognized and used worldwide in the compilation of tariff schedules, and it is managed by the World Customs Organization (WCO), which sits in Brussels, Belgium.

Tariff schedules are organized such that the first 6 digits of a Heading correspond to that which is issued in the HS. The digits following (up to 4) are given by each individual country as they choose, for a wide range of purposes i.e, tracking of imports and exports, taxation, trade policies and more.

The following is an example of how items are classified:

	Section II- Vegetable Products
	Chapter 8 or 08 = Edible Fruit and Nuts; Peel of Citrus Fruit or Melons
	08.13 = Fruits and Nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter -
	08.13.50 = Mixtures of nuts or dried fruit of this chapter: -
	08.13.50.10 = Mixtures of nuts –
	08.13.50.11/8 = Coconuts, Brazil nuts, Cashew nuts

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

At the beginning of each Section and Chapter there are notes which cover rules relating to that Section or Chapter. These notes are very important and should be given attention, as they mention those items which are distinctive from the group or which have additional rules upon them.

In addition to the 97 chapters in The Israeli Customs Tariff, there are relevant additions at the end that pertain only to Israel. Included is information on items for import by immigrants, returning residents, tourists, and diplomats, as well as information concerning trade agreements that Israel has with different countries.

2) Receiving Classification Information from the Department of Customs & VAT

     Requests From Within Israel

Within the framework of services provided by the Department of Customs & VAT, the Israeli public is able to request information concerning the classification of goods (namely the Customs Heading, which is an 8 digit number). This information is given without charge, but is limited to 3 items per request.

Standards and licensing are the responsibility of other accredited authorities such as the Standards Institution of Israel, as well as various governmental ministries - Health, Agriculture, Communications, Environment, etc. (hence, for more information you should contact them directly).

The classification of goods is a most complex matter and we therefore strongly suggest that you hire a customs agent - who is accredited from all standpoints, to handle the releasing of imported goods.

Throughout the country at different Customs Houses, there are Customs Valuators who determine whether the classification of each item by a customs agent is correct. Still, should you feel it necessary to get in touch with the Department, please read the reference document to determine the appropriate Customs Houses to contact.

     Requests From Abroad

Within the framework of services provided by the Department of Customs & VAT, foreigners may contact our Classification Section directly to receive information concerning the classification of goods (namely the Customs Heading which is an 8 digit number), as well as taxes and other charges required when importing goods. This information is given without charge, but is limited to 3 items per request.

Classification also includes information about the need for standards and/or licensing from other accepted authorities. Standards and licensing are the responsibility of other accredited authorities such as the Standards Institution of Israel, as well as various governmental ministries - Health, Agriculture, Communications, Environment, etc. (hence, for more information you should contact them directly).

The classification of goods is a most complex matter and we therefore strongly suggest that you hire a customs agent - who is accredited from all standpoints, to handle the releasing of imported goods.

3) How and Where to make a request

     Within Israel

The Department of Customs & VAT has divided the responsibilities of giving classification information to Customs Houses throughout the country. As such, a request for classification, coming from within Israel, should be directed to the proper Customs House according to the type of goods. Requests should include (as appropriate) the following:

a sample of the item
laboratory testing results
permits from approved institutions/government offices
copy of the import license
other forms as requested

     From Abroad

Requests from abroad should be directed to the Classification Department at the Customs & VAT Headquarters in Jerusalem. Requests for classification and import duties should include (if applicable) the following information:

Description of goods, including the type of goods and what they consist of.
what is the country of origin (The country where in the goods are produced/manufactured)?

Note: It is important that you do not just include generalizations, but specifics. For example - Preserved salmon in vacuumed containers - originating in Italy or Fruit drink, 30% real orange juice, 20% real pineapple juice - originating in USA.

A prospectus or any printed technical information issued by the manufacturer. This should include:

the full chemical composition of the preparation by percentage up to 100% (material not element);

the manner and purpose of use a description of the manufacturing process of the preparation.

Note: Separate information should be given for each preparation requested. what is the country of origin (the country where the goods are produced/ manufactured)?

Any other relevant information - it is important that you do not include generalizations, but specifics.

In addition, the following information, if available, is also requested:

Classification heading

Quantity/volume

A catalog/prospectus which includes description/specifications