1.Ministry of Finance
(a) Economic Research and State Revenue Administration

The Economic Research and State Revenue Administration has two duties: dealing with tax policy, and providing the Ministry of Finance with macroeconomic consulting services. In tax policy, it has various duties: advising the Minister of Finance and his official in matters of tax policy; formulating a tax-collection forecast in the course of preparing the state budget; monitoring tax collection and the implementation of tax policy during the year; and initianting and promoting proposals for changes in the tax system as part of the government's economic policy, including the handling of tax legislation. The Administration is also in charge of tax research and provides the public with current information on tax collection. The Administration coordinates the interministrial committee on government offices' fees. It conducts discussions with other governments to conclude double-taxation treaties (see Appendix). Finally, the Administration monitors macroeconomic developments, advises the Ministry administration in this regard, and publishes information on the topic.

"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:

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.

      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.

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

Lastly, please limit your information requests to 3 items per letter. For a quicker response, please fax your request directly to our Customs Directorate in Israel at:

Classification Department
Department of Customs & VAT
+972-2-624-1061