Israel Import Duty, Tariff Rates & Customs Regulations Explained

Import duty in Israel is a tax levied on goods imported into the country. The duty rates varies by product and are determined by the Israeli Customs Authority. In addition to import duty, a Value Added Tax (VAT) of 17% is also applied to the imported goods. The VAT is calculated on the total value of the goods, including the import duty. The total cost of importing goods into Israel is paid in ILS (Israeli Shekel). Understanding the import duty and VAT rates is crucial for businesses and individuals importing goods into Israel to avoid any unexpected costs or delays.

The import duty in Israel can be calculated in two ways: ad valorem or specific. Ad valorem duty is a percentage of the value of the goods, while specific duty is a fixed amount per unit of the goods. The method of calculation varies by product and is determined by the Israeli Customs Authority. The duty is calculated on the Free On Board (FOB) value of the goods, which includes the cost of the goods, packaging, and transportation to the port of export. The total duty payable is then added to the VAT of 17%, and the total amount is paid in ILS.

The Harmonized System (HS) codes play a crucial role in determining the import duty rates in Israel. The HS codes are an international standard for classifying goods, and each product is assigned a unique code. The Israeli Customs Authority uses the HS codes to determine the duty rate for each product. The HS codes are used to classify goods into different categories, and each category has a specific duty rate. The varies by product duty rates are determined based on the HS codes, and businesses and individuals importing goods into Israel must ensure that they use the correct HS codes to avoid any errors or delays.

The preferential origin of goods can have a significant impact on the import duty rates in Israel. Goods that originate from countries with which Israel has a free trade agreement may be eligible for reduced or zero duty rates. The preferential origin is determined based on the rules of origin agreed upon in the free trade agreement. Businesses and individuals importing goods into Israel must ensure that they comply with the rules of origin to take advantage of the preferential duty rates. The varies by product duty rates are determined based on the preferential origin, and the total duty payable is calculated based on the reduced duty rate. The total amount is then added to the VAT of 17% and paid in ILS.

To calculate the total duty payable on imported goods in Israel, the following steps can be followed: determine the HS code for the product, determine the FOB value of the goods, calculate the ad valorem or specific duty based on the HS code, add the duty to the FOB value, calculate the VAT of 17% on the total value, and pay the total amount in ILS. The varies by product duty rates and the preferential origin of the goods must be taken into account when calculating the total duty payable. It is essential to note that the duty rates and calculation methods may change, and businesses and individuals importing goods into Israel must stay up-to-date with the latest regulations to avoid any errors or delays.