WORLD TRADE G/ADP/N/1/ISR/1
G/SCM/N/1/ISR/1
ORGANIZATION G/SG/N/1/ISR/1
5July1995
(95-1863)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
Committee onSafeguards
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6AND 12.6OFTHE AGREEMENTS
ISRAEL
Thefollowing communication, dated 28June1995, hasbeenreceived from thePermanent
Mission ofIsrael.
_______________
With reference totheprovisions ofArticle 18.5oftheAgreement onImplementation of
Article VIoftheGATT 1994, Article 32.6oftheAgreement onSubsidies andCountervailing Measures
andArticle12.6oftheAgreementonSafeguards,pleasefindenclosedanon-officialcopyoftheTRADE
LEVIES LAW (5751-1991) ofIsrael.
TheGovernment ofIsrael hasundertaken areview oftherelevant partsofthislawtoensure
itsconsistency withtheWTO Agreements.G/ADP/N/1/ISR/1
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TRADE LEVIES LAW, 5751 -1991
Chapter One-Definitions
Definition 1. InthisLaw-
"committee" -theadvisory committee appointed under section 6;
"Commissioner" -theperson appointed bytheMinister under section 5;
"director" -theDirector ofCustoms andValue Added Tax,oraperson authorized
byhim;
"importer" ofgoods -asinthedefinition of"owner" inrespect ofgoods inthe
Customs Ordinance, including anyone forwhom abillofentry hasbeenallowed
foruseofthegoods inIsrael;
"production" includes agricultural production;
"producer" includes agrower, andincludes aperson whohasbegun tosetup
aproductive enterprise;
"possessor ofgoods" -anyperson inpossession orincontrol ofgoods usedor
intended tobeusedbyhimforsupply, production ortheprovision ofservices,
whether ornotheowns those goods;
"foreign currency" -asdefined intheForeign Currency Control Law5378-1978;
"dealer" -asdefined intheValue Added TaxLaw5736-1975 (hereinafter: VAT
law);
"value" -
(1) inrespect ofimported goods -theirvalue forcustoms purposes,
asdefined intheCustoms Ordinance;
(2) inrespect ofexported goods andgoods heldasstock -theirprice
from awilling seller toawilling buyer andtheplant'sgate;
"theMinister", notwithstanding theprovision ofanyenactment, forpurposes
ofchapters twoandfour-anyMinister within thefieldofhiscompetence, and
inrespect oftheother provisions ofthislaw-theMinister ofIndustry andTrade.
Chapter Two-Safeguard Levy
Safeguard 2. TheMinister May-andinrespect ofparagraphs (1),(2),(6)and(7)hemay
levy jointly withtheMinister ofFinance -impose byorder levies ontheimport of
goods toIsrael, ontheexport ofgoods fromIsrael, onthepossession ofgoods oronG/ADP/N/1/ISR/1
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theprovision ofservices (inthislaw: safeguard levy), ifheisoftheopinion thatthe
levyisneeded foroneormore ofthese purposes, asheshallspecify intheorder:
(1) toprevent deterioration ofIsrael'sbalance ofpayments orforeign
currency reserves;
(2) toregulate production, demand orconsumption ofagricultural and
fishery products, including theprevention ofsurpluses orofdepressed
prices forsuchproduce;
(3) toprotect localproduction against substantial injury caused orliable
tobecausedtoitbycompetingimports,takingintoaccountbenefitsderived
bytheeconomy fromtheimport; forthispurpose, "substantial injury" -
alsoresulting from differentials inthecostofagricultural components
inimported foodproducts, compared totheircostinfoodproducts oflocal
manufacture.
(4) toprevent theexhaustion ofmineral deposits;
(5) torestrict orprevent theexport ofrawmaterials produced ormined
inIsrael inorder toprevent shortages inthelocalmarket, ortoregulate
thepriceofthesaidrawmaterials; "rawmaterials" -including minerals,
asdefined intheMining Ordinance, materials enumerated inthedefinition
of"quarry" insection 108oftheMining Ordinance, goods thatonly
underwent initial processing andareintended tobeusedascomponents
intheproduction ofother products, unprocessed farmproduce, andscrap
metals;
(6) toabsorb orprevent excess profit duetoalegislative provision or
from aneconomic steptaken bythegovernment oroneofitsMinisters;
"excess profit" -thedifference between thepriceobtained, orwhich could
havebeenobtained bythepossessor ofgoods forthose goods intheopen
market, andtheprice heactually paidforthegoods, plusexpenses and
reasonable profit;
(7) toabsorb assistance orbenefits conferred bythegovernment in
respect ofgoods intended tobeusedinIsrael, butwhich actually were
exported;
(8) toadopt economic countermeasures against anystate, which violated
anagreement orarrangement withtheState ofIsrael;
(9) torestrict orprevent import from anycountry thatprohibits or
restricts trade withIsrael, orwhich takes discriminatory steps against it,
ortorestrict orprevent export toasaidcountry.
(b) Asafeguard levymaybegeneral, foracategory ofgoods, orforcertain
goods, foracertain dealer orcategory ofdealers, orfortheimport ofgoods from
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(c) Theamount ofthesafeguard levyshallbeequivalent totheproportion
ofgoods 'value orafixed sumoraproportion oftheexcess profit, oraccording to
anyother calculation, allasprescribed bytheMinister byorder.
(d) Anorder, which imposes asafeguard levy, shallbeineffect foraperiod
ofnotmore thantwoyears, buttheMinister mayreimpose thelevyorextend itseffect
byorder, aslongasitisrequired foroneofthepurposes enumerated insubsection (a).
Liable tolevy 3. Thefollowing areliable forthelevy:
(1) onimports -theimporter;
(2) onexports -theexporter;
(3) onthepossession ofgoods -thepossessor;
(4) ontheprovision ofservices -whoever provides theservice.
Chapter Three -Anti-Dumping Duty and
Countervailing Duty
Title One: Definitions
Definitions 4. Inthischapter -
"parties toproceedings" -thecomplainant, theimporter orperson summoned
bytheCommissioner orbythecommittee chairman tobepartytothecommittee 's
deliberations;
"identical orsimilar goods" goods equal toinalltheircharacteristics, formand
quality, orgoods similar intheirmain characteristics andpurpose;
"export price" -theprice actually paidortobepaidforgoods soldforexport,
lesstheamount ofbenefit incorporated incredit arrangements orother
arrangements made inrespect oftheconsideration;
"production costs" -including fixed expenses, variable expenses, overhead and
reasonable profit.
Title Two: Advisory Committee
Commissioner 5. TheMinister shallappoint aCommissioner forpurposes oftheprovisions of
thischapter.
Advisory 6. (a) TheMinister shall, together withtheMinister ofFinance (hereinafter:
committee theMinisters) appoint anadvisory committee ofseven members;
(b) Thecommittee members shallbe-G/ADP/N/1/ISR/1
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(1) three representatives ofthepublic appointed bytheMinisters, one
ofwhom shallbethecommittee chairman;
(2) twostaffmembers oftheMinistry ofIndustry andTrade, oneof
whom maybetheCommissioner;
(3) astaffmember oftheMinistry ofFinance, recommended bythe
Minister ofFinance;
(4) astaffmember oftheMinistry ofAgriculture, recommended by
theMinister ofAgriculture.
(c) When dealing withanycomplaint, thesubject ofwhich iswithin thescope
ofactivity ofaMinistry thatisnotrepresented onthecommittee, arepresentative of
thatMinistry -appointed bytheMinister responsible forthatMinistry -shallbecoopted
asanadditional committee member; inthiscase, theadditional committee member
shalltaketheplace oftherepresentative oftheMinistry ofAgriculture.
(d) Thecommittee chairman shallbeajurist; committee members shallbe
knowledgeable andexperts ineconomics andforeign trade.
(e) Thecommittee shallbefirstappointed within 30daysofthedayonwhich
thislawisadopted bytheKnesset; thereafter, committee members shallbeappointed
under thissection within 30daysafteravacancy occurs.
(f) Compensation andexpenses shallbepaidtothecommittee chairman and
totheother representatives ofthepublic, inamanner tobeprescribed bytheMinisters
inregulations.
Committee 7. (a) Three committee members, including thecommittee chairman, constitute
deliberations aquorum.
(b) (1) Acommittee member whorepresents thepublic shallnotparticipate
incommittee deliberations, ifhehasapersonal interest inthematter before
it.
(2) Acommittee member whorepresents thepublic shallnotparticipate
incommittee deliberations, ifhisother business areliable tocreate a
conflict ofinterest withthematter before it.
(c) TheMinister shall prescribe thecommittee 'swork procedures; the
committee itselfshalldecide onitsprocedures, asfarastheyhavenotbeenprescribed
bythislaworbytheMinister.
Confidential 8. (a) Nouseshall bemade ofconfidential information, which reaches the
information Commissioner orthecommittee under thislaw,except fortheimplementation ofits
objectives.
(b) Should theCommissioner determine thatthere areprima facie grounds
foracomplaint asstated insection 18,thentheparties totheproceedings before theG/ADP/N/1/ISR/1
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committee maystudy thecomplaint, aswellasanyother material delivered tothe
Commissioner ortothecommittee, except forinformation which -attherequest of
theperson whodelivered it-isdetermined tobeconfidential.
(c) Forpurposes ofthissection, information ofwhich thedisclosure would
cause damage totheperson whodelivered itortoathird party, shall bedeemed
confidential.
(d) Anyperson whodelivers information totheCommissioner ortothe
committee mayrequest them todetermine thatcertain information delivered byhim
isconfidential; thecommittee maychange theCommissioner 'sdetermination, either
attherequest oftheperson whodelivered theinformation oratitsowninitiative.
(e) Should theCommissioner orthecommittee findthattheinformation is
notconfidential,theyshallinformthepersonwhodeliveredtheinformationaccordingly,
andhemaydemand thatthematerial notbeusedinthecommittee 'sdeliberations and
thatitbereturned tohim.
(f) Notwithstanding anyprovision ofthissection, thecommittee mayinclude
initsreasons general information derived fromtheconfidential information entrusted
toit,butthismust notcause injury totheperson whodelivered theinformation to
athirdparty.
Secret 9. Thecommittee 'sdeliberations shallbebehind closed doors.
deliberations
Experts 10. Thechairman ofthecommittee may, athisowndiscretion, invite experts tothe
committee 'sdeliberations.
Title Three: Dumped orSubsidized Imports
Dumped 11. Dumped import istheimport ofgoods atanexport price thatislower thantheir
import defined normal price.
Normal price 12. (a) Thenormal priceofgoods istheprice-intheordinary course ofbusiness -
andits ofidentical orsimilar goods intended forlocalconsumption inthecountry inwhich
determination theywere produced; forthispurpose, asaleshallnotbedeemed asbeing inthe
ordinary course ofbusiness when itisbetween parties between whom there isan
arrangement oraspecial connection, including anarrangement oraspecial connection,
including anarrangement orconnection between aproducer andabodycorporate under
hiscontrol.
(b) Ifidentical orsimilar goods arenotsoldintheordinary course ofbusiness
inthecountry ofproduction, orifmarket conditions inthatcountry donotallow a
suitable comparison ofsalesinorder todetermine thenormal price, thenthenormal
price shallbedeemed as-
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andifthere isnosuchprice, -
(2) thetotal costofproducing identical goods inthecountry of
production, plusreasonable profit.
(c) Intheabsenceofdataregardingthenormalprice,asstatedinsubsections(a)
and(b),thenthenormal priceshallbedetermined according tothepriceintheordinary
course ofbusiness ofidentical goods intended forlocalproduction inanother state,
taking intoconsideration thedifferent conditions thataffect thatmatter inthatstate.
(d) Iftheprice ofidentical orsimilar goods intended forlocalconsumption
inthecountry ofproduction arelower thanthecostofproducing thegoods inthat
country, thatshallnotbeconsidered aprice intheordinary course ofbusiness, and
thenormal price shallbedetermined assaidinsubsections (b)or(c).
(e) Ifthecountry inwhich thegoods wereproduced, isoneinwhich theprice
ofgoodsforlocalconsumptionandforexportisinfluencedbygovernmentalintervention
intrade -whether bytraining bythegovernment itself orthrough bodies corporate
overwhich thegovernment exerts influence -thenthenormal priceshallbedetermined
as-
(1) thesaleprice ofidentical orsimilar goods forlocalconsumption
inathird county, inwhich theprices ofgoods arenotinfluenced as
aforesaid (hereinafter: market economy) ortheexport priceofthose goods
fromthatcountry, orthetotalproduction costsofidentical orsimilar goods
inacountry withamarket economy;
andintheabsence ofprice dataasaforesaid,
(2) theprice actually paidonthelocalmarket inIsrael foridentical or
similar goods.
(f) Ifthegoods were notimported directly from thecountry inwhich they
were produced, thenthenormal price ofthose goods shallbetheirnormal price in
thecountry ofexport: however, theCommissioner orthecommittee mayprescribe
thatthenormal price shallbetheprice ofgoods inthecountry ofproduction.
Transactions 13. Should goods beimported regarding which there isaspecial arrangement or
under special connection between theimporter andthesupplier which affects theexport price, or
arrangement according towhich discounts orrefunds aremade outoftheconsideration forthe
goods entered intheimport document, orifthere isanyother arrangement capable
ofaffecting theprice ofthetransaction -whether directly orindirectly, incashorin
kind-thentheexport price shallbecalculated onthebasis oftheprice atwhich the
seller soldthesame goods toawilling buyer, andifsaiddataarenotavailable, then
theexport price shall becalculated onareasonable basis, asthecommittee shall
prescribe.
Rules forprice 14. Forpurposes ofequalizing theexport price tothenormal price, theprices shall
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ofsale,including differences inindirect taxes, aswellasanyother factor likely to
affect theequalization.
Subsidized 15. Subsidized import isimport, when theexporter orproducer inthecountry of
import production enjoy direct orindirect subsidization fromthegovernment ofthatcountry,
orfrom abody under thatgovernment 'sinfluence.
Title Four: Complaints andTheir Treatment
Complaint of16. Theproducer ofacertain product orhisrepresentative, aswellastheDirector
dumped or General oftheMinistry ofIndustry andTrade, maysubmit totheCommissioner a
subsidized written complaint, thatidentical orsimilar goods havebeenorareabout tobeimported
import under conditions ofdumped orsubsidized imports, andthatthisconsequently will,
orisliable tocause material damage toabranch ofproduction, orisliable toprevent
thedevelopment ofproductive enterprises fortheproduction ofsimilar goods, the
establishment ofwhich hasbegun.
Documentation 17. Acomplaint asstated insection shallbesubmitted, together withsuchinformation
andevidence asmaybeobtained withreasonable effort.
Processing the18. (a) TheCommissionershalldecide,within21daysofreceivingthecomplaint,
complaint whether there isanybasis forit.
(b) Should theCommissioner conclude thatthereisnobasisforthecomplaint,
heshallinform theplaintiff accordingly inwriting stating thereasons forhisconclusion.
(c) IftheCommissioner concludes thatthere isabasis forthecomplaint, he
shallpublish it-inReshumot andintwodaily newspapers -notice ofthecomplaint
having beensubmitted: should thename oftheimporter, producer orsupplier be
mentionedinthecomplaint,thentheCommissionershallinformthemthatthecomplaint
hasbeensubmitted.
(d) Importers, producers orsuppliers ofgoods, inrespect ofwhich notice has
beenpublished under subsection (c),aswellastheevidence andresponses submitted
tohimconcerning it,andheshallbring thecomplaint andtheresults ofhisexamination
before thecommittee fordiscussion, within 21daysofthetermination oftheperiod
forthesubmission ofdocuments andresponses.
(e) TheCommissioner may, forreasons thatshallberecorded, extend the
periods setinthissection foraperiod ofnormore than30additional days.
Commissioner 's19.(a) TheCommissioner orperson authorized byhiminwriting maygather
authority to evidence andrequire theproduction ofanydocument, book orcertificate, including
gather documents thatrelate toimport andexport prices, andhemayalsodemand replies
evidence toquestionnaires andthesubmission ofcalculations, within atimesetbyhim,forany
ofthese:
(1) thecomplainant;G/ADP/N/1/ISR/1
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(2) theimporter, producer orsupplier ofgoods, inrespect ofwhich
acomplaint wassubmitted;
(3) anyother person orgovernment agency orother body, ofwhich
hehasreasonable cause tobelieve thattheyhaveinformation concerning
dumped orsubsidized import.
(b) TheCommissionerorapersonsoauthorizedbyhimmayrequestdocuments
andreplies toquestionnaires, asstated insubsection (a),evenfrom aperson whose
placeofresidence isoutside Israel, andwithrespect toacomplaint regarding subsidized
imports -alsofromauthorities inthecountry which issaidtohavesubsidized theprice.
Dropping a 20. (a) After hehasgiven theplaintiff suitable opportunity tostatehiscasebefore
complaint him,theCommissioner may-theDirector General oftheMinistry ofIndustry and
Trade concurring -stayorstopdealing withacomplaint, inrespect ofwhich notice
waspublished under section 18(c), ifanundertaking hasbeen received tothe
Commissioner 'ssatisfaction -
(1) inrespect ofacomplaint ondumping -from theproducer ofthe
goods, tochange thepriceoftheimported goods, soastostopthedumped
import;
(2) inrespect ofacomplaint regarding subsidized import -from the
exporting country 'sgovernment, tocease orreduce thesubsidy, oran
undertaking fromthegoods 'supplier tochange theirprice, soastocancel
theeffect ofsubsidization.
(b) Thecommittee shallterminate itstreatment ofacomplaint submitted under
section 18(e), ifanundertaking asstated insubsection (a)hasbeenreceived.
Powers ofthe21. (a) Thecommittee shallsummon theplaintiff andtheimporter tostatetheir
committee casesbefore it:thecommittee mayalsosummon anyotherperson -including consumer
organizations, asdefined intheConsumer Protection Law5741-1981 -ifitbelieves
thattheycanbehelpful toitsefforts; itmayalsorequest theCommissioner to
investigate andgather additional evidence onsubjects itdecides.
(b) Upon completion ofthework, andnolaterthan60daysafterthecomplaint
wassubmitted or45daysafterthedayonwhich itreceived additional evidence as
stated insubsection (a),respectively, thecommittee shalldeliver itsconclusions and
itsreasoned recommendations totheMinister, including -
(1) conclusions ontheexistence ofdumped orsubsidized imports, and
ontheextent ofthedumping ortherateofsubsidization, asthecasemay
be;
(2) conclusions onthematerial damage caused orliable tobecaused
toanybranch ofproduction, orwhether thedevelopment ofabranch of
production -thecreation ofwhich hasbegun -isbeing orisliable tobe
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(3) recommendations concerning theimposition ofanti-dumping duty
orcountervailing duty, itsrateandperiod ofeffect.
Failure to 22. Ifdocuments orreplies, assaidinsection 19,arenotdelivered tothe
produce Commissioner, oraredelivered inapartial manner, thenthefollowing provisions shall
evidence apply:
(1) Ifthedocuments orreplies wererequested from thecomplainant,
thattheCommissioner may,inconsultation withthecommittee chairman,
orthecommittee, asthecasemaybe,stopdealing withthecomplaint:
(2) Ifthedocuments orreplies were requested from another person,
assaidinsection 19,thenthecommittee shallsubmit itsrecommendations
andconclusions assaidinsection 21(b) onthebasis ofinformation inits
possession atthattime.
Title Five: Anti-Dumping Duty andCountervailing Duty
Imposition of23. (a) Afterhehasreceivedthecommittee'srecommendations,theMinistermay-
anti-dumping athisdiscretion andalsotaking intoaccount traderelations between Israel andforeign
dutyand countries andconsiderations thateffect theeconomy initsentirety -impose byorder
countervailing anti-dumping dutyandcountervailing duty,ifhefindsthatthefollowing twoconditions
duty havebeenmet:-
(1) goods have been imported orareabout tobeimported under
conditions ofdumped orsubsidized imports;
(2) material damage hasbeenorisliable tobecaused tosome branch
ofproduction, ordevelopment ofabranch ofproduction, theestablishment
ofwhich hasbegun, isbeing orisliable tobeprevented bythedumped
orsubsidized imports.
(b) TheMinister shallmake hisdecision under thissection within 30days
ofthedayonwhich thecommittee 'srecommendations weresubmitted tohim; ifhe
failstodoso,orifhedecides against thecommittee 'srecommendations, heshallnotify
thecommittee andthecomplainant ofhisreasons therefor inwriting.
Imposition of24. (a) Anti-dumping dutyshallapply toacertain category ofgoods, imported
anti-dumping fromthecountry orcountries ofproduction specified intheorder ormade byproducers
duty orsupplied bysuppliers enumerated intheorder.
(b) Anti-dumping dutyshallbeattherateofsome orallofthedifference
between thenormal priceandtheexport price, andmaybeafixedamount, apercentage
oraccording tosome other method ofcalculation, allprovided thatitnotexceed the
saiddifference atthetimethedutyisset.
Imposition of25. (a) Countervailing dutyshallapply togoods thatoriginate fromacountry of
countervailing production, inwhich there isasubsidized price forthose goods.
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(b) Countervailing dutyshallbeattherateofpartorallofthesubsidy, at
thetimethedutyisbeing set.
Liability to 26. Theimporter ofgoods isliable forthepayment ofanti-dumping dutyandof
duty countervailing duty.
Period of 27. (a) Anorder thatimposes dutyunder section 23shallbevalid foraperiod
validity ofthree years fromthedayofitsimposition, unless ashorter period isprescribed in
theorder; uponthecommittee 'srecommendation theMinister mayreimpose theduty,
iftheconditions foritsimposition continue toexist.
(b) Theordershallapplytogoodsclearedthroughcustomsonthedayonwhich
itgoesintoeffect, andthereafter.
(c) Notwithstandingtheprovisionsofsubsection(b),theMinistermayprescribe
thatthedutyapply alsotogoods cleared through customs against temporary surety,
assaidinsection 28;should theMinister sodetermine, thedutyshallapply evenif
thegoods havepassed outoftheimporter 'spossession.
Temporary 28. (a) IfitappearstotheCommissionerprimafacie,thatgoodshavebeenimported
surety orareabout tobeimported asdumped orsubsidized imports, anditappears prima
faciethatdamage isliable tobecaused toabranch ofproduction, hemayinform the
director oftheestimated rate-inhisopinion -oftheanti-dumping dutyandofthe
countervailing dutythatwillapply tothose goods.
(b) Should theCommissioner notify thedirector assaidinsubsection (a),the
director shallrequire theimporter toprovide surety forpayment oftheduty, atthe
ratecommunicated bytheCommissioner asstated insubsection (a).
(c) After theimposition oftheduty, thesurety shallbeforfeited asstated in
theorder; should thedutybeimposed atanamount lower thanthesurety, the
difference shallberefunded; intheabsence ofanimposition ofdutywithin sixmonths
ofthedayonwhich surety wasprovided, thesurety shallbecancelled.
Title Six: Re-examination ofDuty
Request for 29. (a) Animporterwhoimports,orisabouttoimportgoods,onwhichanti-dumping
reexamination dutyorcountervailing dutyhasbeenimposed, oraperson entitled tosubmit acomplaint
ofduty under section 16,maysubmit areasoned written request forre-examination ofthe
order thatimposed theanti-dumping dutyorthecountervailing duty, foritschange
orrepeal (hereinafter: re-examination request).
(b) Are-examination request shallnotbeconsidered, unless atleastoneyear
haspassed sincethedutywasimposed, buttheCommissioner maydecide toreconsider
are-examination request earlier, ifhefinds thatitisjusttodoso.
Dealing with 30. (a) Should theCommissioner determine thatthere isprima faciebasisofthe
arequest re-examination request, heshallinform theapplicant andtheparties totheproceeding
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(b) Should theCommissioner determine thatthere isnoprima faciebasisfor
there-examination request, heshallinform theapplicant accordingly andexplain the
reasons forhisdecision.
(c) TheCommissioner maypublish anotice about there-examination request
inReshumot andintwodaily newspapers.
(d) Theparties toaproceeding asstated insubsection (a)mayrespond tothe
re-examination request within 30daysofthedayonwhich thenotice asstated in
subsection (c)waspublished; other interested parties mayalsorespond totherequest.
(e) TheCommissioner shallconvey there-examination request, theresponse,
ifonewassubmitted, andtheresults ofhisexamination tothecommittee fordiscussion,
within 21daysofthedayforthedelivery ofaresponse.
Committee 31. (a) When theCommissioner hasconveyed are-examination tothecommittee,
discussions thecommittee shallsummons theapplicant andtheparties totheproceeding, attheir
andMinister 'srequest, tostatetheirarguments before it;thecommittee mayalsosummon anyother
decision on person itbelieves canbehelpful toitswork.
reexamination
request (b) Attheconclusion ofitswork andnolater than 30days after the
Commissioner conveyed therequest toit,thecommittee shall present its
recommendation onthere-examination request before theMinister.
(c) TheMinister,takingintoaccounttheconsiderationsandconditionsasstated
insection 23,mayleave theorder ineffect, change itorcancel it.
Additional 32. Theprovisions ofthischapter apply, mutatis mutandis ,tothere-examination
provisions ofalevyunder thistitle.
Chapter Four: Levy inSupport ofResearch,
Marketing andVocational Training
Research levy 33. (a) TheMinister may-during theperiod fromtheenactment ofthislawuntil
31December 1992, upon application byanorganization ofproducers, themembers
ofwhich employ themajority ofworkers inaspecific sector ofproduction -prescribe
bygeneral order thatdealers intheindustry specified intheorder payalevyforthe
promotion ofresearch, marketing, vocational training, theimprovement ofproduction
processes andofproduct quality inthatindustry (hereinafter: research levy).
(b) Theresearch levyforevery reporting period asstated insection 34shall
beaproportion oftheprice ofgoods sold, orofservices provided, orofwages paid
bythedealer, oragiven amount perunitofproduct orperemployee, oraccording
toanyother calculation, allasprescribed bytheMinister byorder.
(c) Ifthelevydetermined asaproportion oftheprice ofgoods soldorof
services provided byadealer, thentheprice shallaccording totherules determined
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(d) TheprovisionsofChapterFiveshallapply,mutatismutandis,totheresearch
levy, andtheterm"director", wherever appearing, shallbereplaced by"theMinister
oraperson soauthorized byhim".
(e) Theeffect ofanorder under thissection shalllapseon31December 1992,
unless anearlier dateisprescribed intheorder.
Periodic 34. (a) Adealer liable toresearch levyshalldeliver -towhom andinthemanner
research levy prescribed bytheMinister -returns onsales, wages oranyother parameter onwhich
thelevyisbased, forevery period setforthedealer under theVAT Law(hereinafter:
return period).
(b) Areturn shallbedelivered within 15daysaftertheendofthereturn period,
evenifnobusiness liable tolevywastransacted during thatperiod.
Payment of 35. Theresearch levyshallbepaid-inthemanner prescribed bytheMinister -at
research levy thetimethereport under section 34issubmitted.
Exemption 36. TheMinister mayprescribe thatadealer, whose salesdonotreach aprescribed
amount isexempt ofpaying thelevy.
Thefundand 37. Foreachsector specified inanorder under section 33(a), theMinister shall
itspurpose established asectorial fundforthepromotion ofresearch, marketing andvocational
training inthatsector, andfortheimprovement ofproduction processes andproduct
quality (hereinafter: fund), which shalloperate within theframework oftheMinistry
ofwhich theMinister isincharge.
Designation of38. Thesums collected asresearch levyshallbedesignated exclusively forpurposes
thefund ofthefund, andshallbeexpended asthemanagers ofthefunddecide.
Sources of 39. Inaddition tothemoney placed atthefund'sdisposal asstated insection 38,
fund thefundmayreceive from anyperson money andallocations forthepromotion of
itsobjectives andactivities.
Thefund-a40. Afundestablished under section 37isabody corporate.
corporation
Management 41. (a) TheMinister shallappoint amanagement committee consisting ofnine
ofthefund members forthefundandheshall appoint onofthem -inconsultation withthe
organization ofproducers asstated insection 33(a) -tobethechairman.
(b) Themembers ofthemanagement committee shallbe-
(1) threegovernmentrepresentatives,twoofthemfromthestaffoftheMinistry
ofwhich theMinister isincharge, andoneofthestaffoftheVocational Training
Department intheMinistry ofLabour andSocial Welfare;
(2) three representatives ofemployers inthesector, appointed onthe
recommendation oforganizations, whose members employ amajority orthe
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(3) twoadditional representatives appointed bytheMinister fromamong those
liable totheresearch levyforthatfund;
(4) arepresentative ofthelabour organization whose members include a
majority oftheorganized employees inthatsector.
(c) Themanagement ofthefundshallprescribe itsownwork procedures, to
theextent thattheyhavenotbeenprescribed bytheMinister.
Chapter Five: General Provisions
Refund 42. (a) TheMinister mayprescribe that,when thegoods aremade inIsrael and
exported, thelevies paidunder Chapter TwoandThree onsome orallofthegoods
usedfortheirproduction berefunded, andhemaymake conditions under which that
refund willbemade.
(b) TheMinister mayprescribe thattherefund beaproportion ofthevalue
oftheexported goods, oracertain amount according tothequantity orweight ofthe
goods usedintheproduction ofexported goods, oraccording tosome othercalculation.
(c) Norefund shallbemade ofanylevyimposed ontheimport ofgoods.
Return 43. Thedirector maydemand fromanyperson inpossession ofgoods ofacategory
onwhich alevyhasbeenimposed, thathesubmit imported, exported orheldbyhim,
theirvalue, purchase price, saleprice, where theyarekept,thewages paid,theservice
charges paid, theaddress ofthebusiness orwarehouses inhispossession andevery
other particular required inthiscontext, allasspecified inthedemand.
Fees 44. TheMinister mayprescribe, byorder withtheapproval oftheKnesset Finance
Committee, therates offeestobepaidbypersons whosubmit complaints or
applications forthereexamination oflevyunder thislaw.
Datefor 45. Thesafeguard levy, anti-dumping dutyandcountervailing duty(hereinafter in
payment of thischapter: levy) shallbepaidatthetimes specified hereinafter, unless otherwise
levy prescribed intheorder, under which thelevyhasbeenimposed:
(1) foralevyontheimport ofgoods, including anti-dumping dutyand
countervailing duty-untilthetimeofpayment ofcustoms, andifthefoods are
exempt from customs -untilthetimewhen thebillofgoods isreleased for
consumption inIsrael; withrespect toanti-dumping dutyimposed ongoods
cleared through customs, assaidinsection 27(b) or(c)-within 30daysafter
thelevywasimposed;
(2) foralevyontheexport ofgoods -uptothetimeoftherelease ofthebill
ofgoods forexport;
(3) foralevyonthepossession ofgoods -within 30daysofthedayonwhich
thegoods came intothepossessor 'spossession, orofthedayonwhich thelevy
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(4) foralevyontheprovision ofservices -within 30daysaftertheservice
hasbeenprovided.
Deferral of 46. (a) Notwithstanding theprovisions ofsection 45,thedirector maydeferdates
payment date forthepaymentofalevyandhemaymakesuchdefermentconditionalupontheprovision
oflevy ofsurety which hedeems satisfactory.
(b) Ifthedirector deferred thedateforthepayment ofthelevy, thenitshall
besupplemented by-fortheperiod ofdeferment -linkage differentials attherateof
increase oftheconsumer price index published bytheCentral Bureau ofStatistics,
fromtheindex lastpublished before thedateforthepayment ofthelevyuntiltheindex
lastpublished before theactual payment.
Determination 47. (a) Should aperson chargeable forthepayment ofresearch levyfailtosubmit
oflevyupon aperiodic return, asstated insection 24,orshould thepossessor ofgoods failtosubmit
non- areturn assaidinsection 43,thedirector mayprescribe thechargeable levy, taking
submission ofintoaccount theextent ofhisbusiness oractivity, andwhere dataisnotavailable -
return byestimation.
(b) Determinationofalevy,asstatedinsubsection(a),shallbecancelledwhere
areturn issubmitted within 12months ofthedayonwhich thelevywasset.
Assessment 48. Ifaperson chargeable foralevyhassubmitted areturn andthedirector isof
theopinion thatthereturn inincomplete, orinaccurate, orisnotbased upon
documentation orproper account books, thenthedirector mayassess thechargeable
dutytothebestofhisjudgement.
Contestation 49. (a) Should aperson disagree withadecision bytheCommissioner under
sections 18(b), 20(a), 28or30(b), hemaycontest itinwriting before thechairman
ofthecommittee within 15daysofthedayonwhich hewasinformed ofthedecision,
orwithin alonger period allowed himbythechairman forspecial reasons which shall
berecorded.
(b) Should aperson disagree withtheclassification ofcertain goods, orwith
thedetermination thattheyarepartofaclassification towhich thelevyapplies, or
withanassessment under section 48,orwiththevalue setforgoods forpurposes of
thelevy, hemaycontest itinwriting before thedirector, within 15daysoftheday
onwhich thelevywasimposed andthedecision made, asthecasemaybe,orwithin
alonger period allowed himbythedirector because ofspecial reasons which shall
berecorded.
(c) Should thecommittee chairman orthedirector failtorender adecision
onthecontestation within twomonths ofthedateonwhich itwasmade, thenthe
contestation shallbedeemed tohavebeenaccepted.
Appeal 50. (a) Whoever disputes hisliability toalevyorwhodeems himself aggrieved
byadecision orthecommittee chairman orofthedirector onacontestation under
section 49,mayappeal against itwithin 30daysofthedayonwhich hewasinformed
oftheobligation topayalevyorofthedecision ofthecommittee chairman orofthe
director, respectively.G/ADP/N/1/ISR/1
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(b) Thecourt competent tohearanappeal under subsection (a)istheDistrict
Court; theappeal shallbeheard byasingle judge.
(c) Theappeal shallbeheard inopencourt, unless thecourt order otherwise
upon application byaparty.
(d) Theburden ofproof restsupon theappellant, ifhedidnotsupply proof
which hewasrequired todeliver totheCommissioner ortothecommittee, ifhefailed
tomake areturn which hewasrequired tomake under thislaworifhisarguments
arenotsupported bylawfully keptaccount books.
(e) Thecourtmayorder theCommissioner orthecommittee chairman tobring
acomplaint orare-examination request before thecommittee, anditmayalsoapprove,
reduce, increase orcancel theassessment orthelevy, ordetermine thatthelevydoes
notapply atallortoissue another judgement, allasitdeems appropriate.
Powers of 51. Forpurposes ofimplementation ofthislawthedirector shallhavethepowers
director prescribed bysections 108to111,114and115oftheVAT Law.
Violations 52. (a) Anypersonwhocommittedoneofthefollowingshallbeliabletooneyear's
imprisonment:
(1) submittedareturn,information,accountbook,documentorothercertificate
(hereinafter inthissection: document) which isfalseinanimportant particular;
(2) failed tosubmit areturn which hewasrequired tosubmit under the
provisions ofthislaworbyregulations thereunder, other thanaquestionnaire
orcalculation under section 19,orhissubmission waslate;
(3) heinterfered withtheperformance oftheduties ofanyperson whoacted
lawfully under thislaw;
(4) herefused tosubmit orfailed tosubmit adocument orsample, which he
wasobligated tosubmit, having beenordered todoso;
(5) heunlawfully disclosed confidential information, which came intohis
possession forpurposes ofthislaw;
(6) hecontravened oneoftheprovisions ofthislaworofaregulation
thereunder.
(b) Ifaperson committed onetheoffenses enumerated insubsection (a)with
theintention ofevading payment ofalevy, orifhecommitted some other actwith
thesaidintention, orifhewillingly concealed, destroyed, orchanged adocument which
hewasrequired tokeeportosubmit under theprovisions ofthislaw,heshallbeliable
tothree years'imprisonment.
Offenses by 53. Ifanoffense against thislawwascommitted byabodycorporate, thenanyperson
bodies who-atthetimetheoffense wascommitted -wasanactive director, secretary, partner -
corporate otherthanalimitedpartner-comptrollerorasenioradministrativeemployeeresponsibleG/ADP/N/1/ISR/1
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forthatsphere shallalsobeguilty ofsuchoffense unless heproves thattheoffense
wascommitted without hisknowledge andthathetookallappropriate stepstoensure
compliance withtheprovisions ofthislaw.
Responsibility 54. Ifanoffense against hislawiscommitted byanemployee oragent inthecourse
foraction of ofthebusiness ofaperson liable toalevy, thentheliable person mayalsobeaccursed
employees ofthatoffense, unless heproves thattheoffense wascommitted without hisknowledge
andthathetookallappropriate stepstoensure compliance withtheprovisions ofthis
law.
Monetary 55. (a) Ifaperson committed anoffense against theprovisions ofthislaworis
composition suspected thereof, thedirector may-withthatperson 'sconsent -accept from him
monetary composition inanamount nogreater thandouble thelargest finethatcan
beimposed forthatoffense, orthree times thevalue ofthegoods, inconnection with
which theoffense wascommitted, whichever isthelarger amount, andwhen hehas
doneso,every legalproceeding inconnection withthatoffense shallcease; however,
ifanindictment forthatoffense hasbeenfiled, thenmonetary composition maybe
accepted onlywiththeapproval oftheAttorney General orofaperson soauthorized
byhim.
(b) Thedirector may make monetary composition conditional upon an
undertaking torefrain from offenses against thislawduring aperiod setbyhim,but
notlonger thanthreeyears; theundertaking shallbebybondnogreater thanthelargest
finethatcanbeimposed forthesaidoffense, anditmaybeguaranteed byathirdparty
orbewithout guarantee, asthedirector shalldecide.
(c) Ifaperson isfound guilty ofanoffense, fromwhich heundertook torefrain
under subsection (b),thenthebond shallbecollected asalevyunder thislaw.
Effect oflevy 56. Theprovisions ofsection 2oftheCustoms andExcise Duties (Variation ofRates)
Law5709-1949 shallapply tothesafeguard levyandtheresearch levy, asifthelevy
were taxwithin themeaning ofsaidsection.
Collection 57. Alevyunder thislawshallbecollected under theTaxes (Collection) Ordinance,
asifitwere ataxwithin themeaning ofthatordinance.
Applicability 58. Theprovisions ofsections 31to36,39A,124to127,136,145,150except
ofcustoms lawforitsparagraph (2),152,156,158,159,160B and161oftheCustoms Ordinance
shallalsoapply, mutatis mutandis ,toalevyunder thislaw.
Overpayment 59. TheprovisionsoftheIndirectTaxes(OverpaymentandUnderpayment)Law5728-
and 1968 shallapply tolevies under thislaw.
underpayment
Arrears fines 60. Theprovisions oftheTaxes (Arrear Fine) Law5741-1980 shallapply tolevies
under thislaw,asiftheyhadbeenimposed under ataxlaw,within themeaning of
thesaidlaw; thedirector isauthorized towaive orreduce arrear fines forspecial
reasons which shallberecorded.
Obligation of61. (a) When alevyisimposed under thislawongoods orservices aftertheir
purchaser salehasbeenagreed upon, thentheperson liable tothelevymaydemand thattheG/ADP/N/1/ISR/1
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purchaser ortherecipient oftheservice payhimtheamount hepaidaslevy, unless
theagreement between them prescribes otherwise.
(b) When therateofalevyisincreased, thentheprovisions ofthissection
shallapply totheadditional amount oflevy.
(c) When alevyisreduced orcancelled, theseller orwhoever provides a
service shallreduce theprice, unless theagreement between themprescribes otherwise.
TheState 62. TheprovisionsofChapterThreeshallapplytogoodsimportedbythegovernment,
except forcustoms exempt combat equipment.
Implementation 63.(a) TheMinister ischarged withtheimplementation ofthislawandhemay
andregulation enact regulations foritsimplementation.
(b) TheMinister ofJustice mayenact regulations onthemanner ofsubmitting
appeals under thislaw,onprocedure andonfees, costs andlossofworking time
compensation forwitnesses insaidappeals.
Repeal 64. Thefollowing arerepealed:
(1) Emergency Regulations (Mandatory Payments) 5718-1958;
(2) Prevention ofDumping Law5737-1977.
Commence- 65. (a) Thislawshallcome intoeffect on1January 1991.
ment,
applicability (b) Theprovisions ofthislawonanti-dumping duty andcountervailing duty
and shallapply tocomplaints submitted onthedayofitspublication andthereafter; if
transitional stated, aperson submitted acomplaint prior tothecommencement ofthislawandif
provisions notice ofitssubmission waspublished under thelawineffect immediately before this
lawwaspublished, andifithadnotyetbeenbrought before thecommittee, thenhe
mayinform theCommissioner thathedesires thecomplaint tobedealt withunder
theprovisions ofthislaw; asaidnotification shallbedelivered totheCommissioner
inwriting within onemonth afterthepublication ofthislaw.
(c) Notwithstanding theprovision ofanyenactment -
(1) theprovisions ofsection 2(d)ofthislawshallapply toanorder made under
Emergency Regulations (Mandatory Payments) 5718-1958, ifnoearlier datefor
itslapse isprescribed inthatorder, provided thatitseffect doesnotlapse later
than31December 1992;
(2) ifanorder wasmade under thePrevention ofDumping Law5737-1977,
are-examination request initsrespect maybemade under thislaw.