Import Laws and Procedures
Palestinian and foreign entities must obtain a trade authorization
before engaging in any trade transaction. The Foreign Trade Dealing
Registration is a one-time authorization to trade, applicable for
both import and export across international borders. Applications
are submitted to the Ministry of National Economy, upon approval,
they will provide authorization for both Palestine and Israel.
No fees are charged and the time frame of the procedure should
not exceed three weeks.
A summary of laws and procedures for importing or exporting
goods in Palestine is outlined in the following sections.
For more detail regarding the requirements for import and export
licenses and procedures, please consult The Palestinian Export
Import Guide available through MET or Massar Associates.
Please consult either with PIPA or
with the associated Ministries and monitoring agencies. The
below listed information represents a series of guidelines and
general
requirements. They are not to be considered the final source
on export/import procedures and regulations.
The importer must be aware of certain requirements that must
be fulfilled prior to importing and while clearing goods at the
port of entry. These requirements do not apply to all categories
of imported goods. Failure to meet these requirements may result
in delays and additional costs. These requirements are:
• Valid Import Licenses
• Valid Certificates of Origin
• Compliance with Standards & Testing
• Compliance with Sanitary and Phytosanitary Regulations
• Proper Marking, Labeling and Packaging
The Palestinian licensing system requires an import license
in the following cases:
• When imports are subject to quotas, as in the case of agricultural
products and goods cited on Lists A1, A2 and B of the Paris Protocol.
• When public health is involved (i.e. meat, foodstuffs or pharmaceuticals)
a license is required to verify that imports meet Palestinian
standards.
• When importing petroleum, gas, telecommunications equipment,
or motor vehicles.
• As the Palestinian Authority applies the Israeli import policy,
an import license is required when an (L) indication appears
in the Tariff Book of Israel.
Applications for import licenses are obtained
at the General Directorate of Internal Trade – Ministry
of National Economy. The applicant is required to provide four
copies
of the application
form.
The following categories of products require approval from relevant
Palestinian ministries and/or entities prior to the issuance
of the license:
• Gasoline (petrol) and oil require the approval of the General
Petroleum Corporation.
• Cigarettes and tobacco require authorization from the Palestinian
Tobacco Authority.
• Insecticide and paint mixtures require approval from the Environmental
Department.
• Motor vehicles and related spare parts require approval from
the Ministry of Transportation.
• Telecommunications items require the approval of the Ministry
of Post and Telecommunications.
• Agricultural products and foodstuffs require the approval of
the Ministry of Agriculture.
• Chemical products require the approval of the Ministry of Health.
Additional detailed information regarding the above requirements
can be obtained from the Ministry of National Economy, trade
associations, trade agencies or from The Palestinian Export Import
Guide.
Prohibited Goods
Clearance of Goods
Tariffs
Customs Valuation
Other Levies: Surcharges
Purchase and Excise Taxes
Value-Added Tax (VAT)
Transportation
Prohibited Goods
All sources of internationally controlled substances such as
narcotic drugs and psychotropic substances.
Pornographic publications, hate literature
and any other materials contrary to generally accepted public
morals, human, animal & plant
health or national security.
Imports of motor vehicles older than 3 years, according to Article
3, Paragraph 11 (a) of the Paris Protocol.
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Clearance of Goods
Before goods arrive to the port, the importer should inform the
clearing agent regarding the date of arrival and provide the
agent with the required documents. Assuming all the documentation
is in order, the Customs Declaration Form will be issued.
Once the shipment arrives, goods must be unloaded, cleared,
inspected and pass security clearance.
After being inspected, a gate pass is provided to the importer.
The goods can then leave the port area. Special arrangements
to leave the port area apply to trucks transporting frozen meat
and livestock to the West Bank and Gaza Strip (which require
an Israeli Authority escort either (1) directly to the importer's
warehouse or (2) to the Palestinian checkpoint when such a warehouse
lies within Area A. The same escorting procedures apply to goods
destined for the Gaza Strip on Palestinian trucks.
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Tariffs
Most tariffs are ad valorem (proportionate to the value of the
goods) and consequently, are calculated as a percentage that
includes cost, insurance and freight (CIF).
Sometimes tariffs are calculated on a pre-specified basis, which
is assessed on a statistical unit, as listed in the Tariff Book.
Specific duties are common in the agricultural sector, particularly
on meat, fruit, nuts and animal or vegetable fats and oils.
Tariffs can be combined (ad valorem plus specific). The total
tariff is the sum of an ad valorem and a specific tariff. Combined
tariffs apply mostly to textiles and textile articles, beverages
and spirits, some electrical machinery, fish and crustaceans,
edible vegetables and prepared cereals.
Tariffs can also be alternative (either ad
valorem or specific). The Tariff Book indicates which of the
two apply with the following
acronyms: "But Not Less" (BNL) or "But Not More" (BNM).
Alternative rates are applied mainly to clothing, dairy products,
live animals, poultry, meat, edible fruit, prepared vegetables
and some electrical machinery and equipment.
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Customs Valuation
Customs valuation follows the Brussels definition of value: the
value of imported goods is the value of the goods on the open
market on the day they are released from the customs authorities.
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Other Levies: Surcharges
The Tariff Book contains a special column indicating compulsory
surcharges (indicated by the letter ("C") applied
on a number of imported goods including foodstuffs such
as edible meat, fish and crustaceans, and textile products.
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Purchase and Excise Taxes
Purchase and excise taxes are levied on both local and imported
goods. Purchase taxes are levied on consumer goods (perfumery,
carpets, clocks and watches), iron and steel products, some
copper products, alcohol, machinery and boilers, some electrical
machinery, motor vehicles, cosmetics, and tobacco. The purchase
tax is calculated on the value of goods, adding the import
increment.
Excise taxes are applied to alcoholic beverages, petroleum,
arms and tobacco.
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Value-Added Tax (VAT)
The value-added tax is an indirect form of taxation on both locally
produced and imported goods. The VAT is calculated at 16% and
is applied after all other tariffs and taxes have been added
to the CIF value.
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Transportation
Transporting goods from Israeli ports to the West Bank or Gaza
can be done by Israeli-licensed trucks (yellow plated) or Palestinian-licensed
(green plated) trucks. When Palestinian trucks are used, they
require special permits.
Goods transported to the West Bank by Israeli-licensed trucks
are permitted to proceed all the way to the final destination.
Some Palestinian vehicles are granted Israeli permission to transport
goods from Israeli ports back to the West Bank.
Goods transported to Gaza by Israeli-licensed trucks must be
unloaded at the Israeli crossing point with Gaza and reloaded
on Palestinian trucks.
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