WORLD TRADE G/ADP/N/1/ISR/2
G/SCM/N/1/ISR/2
ORGANIZATION G/SG/N/1/ISR/2
10January 1996
(96-0054)
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, received on14December 1995 from thePermanent Mission
ofIsrael, contains arevised translation ofthesecond edition oftheTrade Levies Law5751-1991.
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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
forhisownuseofthegoods inIsrael;
"production" includes agricultural production;
"producer" includes agrower, andincludes aperson whohasbegun tosetup
aproductive enterprise;
"possessor ofgoods" -anyperson whoholds orcontrols goods usedorintended
tobeusedbyhimforsupply, production ortheprovision ofservices, whether
ornotheowns those goods;
"foreign currency" -asdefined intheForeign Currency Control Law5738-1978;
"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 attheplant'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(a) 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/2
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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" -
alsoduetodifferentials inthecostofagricultural components inimported
foodproducts,comparedtotheircostinfoodproductsoflocalmanufacture.
(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) toabsorbassistanceorbenefitsaccordedbythegovernmentinrespect
ofgoods intended tobeusedinIsrael, butwhich actually wereexported;
(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) Asafeguard levyshallbeaproportion ofthegoods 'value orafixed sum
oraproportion oftheexcess profit, oraccording toanyother calculation, allas
prescribed 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 tosafeguard levy:
(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" -theplaintiff, theimporter orperson summoned bythe
Commissioner orbythecommittee chairman tobeparty tothecommittee 's
deliberations;
"identical orsimilar goods" goods equal inalltheircharacteristics, form and
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/2
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(1) three representatives ofthepublic appointed bytheMinisters, one
ofwhom shallbethecommittee chairman;
(2) twostaff members oftheMinistry ofIndustry andTrade,
recommended bytheMinister ofIndustry andTrade, oneofwhom may
betheCommissioner;
(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) Acommitteemembershallnotparticipateincommitteedeliberations,
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 shallprescribe thecommittee 'sprocedure; thecommittee
itself shalldecide onitsprocedures, asfarastheyhavenotbeenprescribed bythis
laworbytheMinister.
Confidential 8. (a) Nouseshall bemade ofconfidential information, which reaches the
information Commissioner orthecommittee under thislaw,except fortheimplementation ofits
objectives.
(b) IftheCommissionerfindsthatthereareprimafaciegroundsforacomplaint
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study thecomplaint, aswellasanyother material delivered totheCommissioner or
tothecommittee, except forinformation which -attherequest oftheperson who
delivered it-isdetermined tobeconfidential.
(c) Forpurposes ofthissection, information therevelation ofwhich would
cause injury 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) IftheCommissioner orthecommittee findthattheinformation isnot
confidential, theyshallsoinform theperson whodelivered theinformation, andhe
maydemand thatthematerial notbeusedinthecommittee 'sdeliberations andthat
itbereturned tohim.
(f) Notwithstanding anyprovision ofthissection, thecommittee mayinclude
initsreasons general information derived fromtheconfidential information entrusted
toit,butthismust notcause injury totheperson whodelivered theinformation or
toathirdparty.
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 than
import defined theirnormal price.
Normal price 12. (a) Thenormal priceofgoods istheprice-intheordinary course ofbusiness -
andits ofidentical orsimilar goods intended forlocalconsumption inthecountry inwhich
determination theywere produced; forthispurpose, asaleshallalsobedeemed nottobeinthe
ordinary course ofbusiness when itisbetween parties between whom there isan
arrangement oraspecial connection, including suchbetween aproducer andabody
corporate under hiscontrol.
(b) Ifidentical orsimilar goods arenotsoldintheordinary course ofbusiness
inthecountry ofproduction, orifmarket conditions inthatcountry make asuitable
comparison ofsalesimpossible intheeffort todetermine thenormal price, thenthe
normal price shallbedetermined tobe-
(1) thehighest price ofidentical goods exported toathirdcountry in
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(2) thetotal costofproducing identical goods inthecountry of
production, plusreasonable profit.
(c) Ifnodataareavailable onthenormal price, assaidinsubsections (a)and
(b),thenthenormal price shallbedetermined according totheprice intheordinary
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 -thenitshallbedetermined thatthenormal
price is-
(1) thesaleprice ofidentical orsimilar goods forlocal consumption
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. Ifgoods areimported andthere isaspecial arrangement orconnection between
under special theimporter andthesupplier which affects theexport price, oraccording towhich
arrangement discounts orrefunds aremade outoftheconsideration forthegoods entered inthe
import document, orifthere isanyother arrangement capable ofaffecting theprice
ofthetransaction -whether directly orindirectly, incashorinkind-thentheexport
priceshallbecalculated onthebasisofthepriceatwhich theseller soldthesamegoods
toawilling buyer, andifsaiddataarenotavailable, thentheexport price shallbe
calculated onareasonable basis, asthecommittee shallprescribe.
Rules forprice 14. Forpurposes ofcomparing theexport pricetothenormal price, theprices shall
comparison becompared under similar commercial conditions, taking intoaccount different terms
ofsale,including differences inindirect taxes, aswellasanyother factor likely to
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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 injury toabranch ofproduction, orisliable toprevent
thedevelopment ofproductive enterprises fortheproduction ofsimilar goods, the
erection ofwhich hasbegun.
Documentation 17. Acomplaint assaidinsection 16shall besubmitted, together with such
information andevidence asmaybeobtained withreasonable effort.
Processing the18. (a) TheCommissionershalldecide,within21daysofreceivingthecomplaint,
complaint whether there isanyprima faciebasis forit.
(b) IftheCommissioner concludes thatthere isnoprima faciebasis forthe
complaint, heshall soinform theplaintiff inwriting stating thereasons forhis
conclusion.
(c) IftheCommissioner concludes thatthere isaprima facie basis forthe
complaint, heshallpublish -inReshumot andintwodaily newspapers -notice ofthe
complaint having beensubmitted: ifthename oftheimporter, producer orsupplier
ismentioned inthecomplaint, thentheCommissioner shall inform them thatthe
complaint hasbeenmade.
(d) Importers, producers orsuppliers ofgoods, inrespect ofwhich notice has
beenpublished under subsection (c),mayrespond toitwithin 30daysofthedayof
publication.
(e) TheCommissioner shall examine acomplaint ofwhich anotice was
published, assaidinsubsection (c),aswellastheevidence andresponses submitted
tohimconcerning it,andheshallbring thecomplaint andtheresults ofhisexamination
before thecommittee fordiscussion, within 21daysfrom theendoftheperiod for
thesubmission ofdocuments andreplies.
(f) TheCommissioner may, forreasons thatshallberecorded, extend the
periods setinthissection foraperiod ofnomore 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,from
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(1) theplaintiff;
(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 toquestions, assaidinsubsection (a),evenfrom aperson whose place
ofresidence isoutside Israel, andinconnection withacomplaint ofsubsidized imports -
alsofrom authorities 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 orthesupplier ofthegoods, tochange theprice oftheimported
goods, soastostopthedumped import;
(2) inrespectofacomplaintaboutsubsidizedimport-fromtheexporting
country 'sgovernment, tocease orreduce thesubsidy, oranundertaking
from thegoods 'supplier tochange theirprice, soastocancel theeffect
ofsubsidization.
(b) Thecommittee shall wind upitstreatment ofacomplaint when the
Commissioner -inaccordance withsection 18(e)-informs itthattheundertaking
saidinsubsection (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) When ithasconcluded itswork, andnolaterthan60daysafteracomplaint
wasbrought before itor45daysafterthedayonwhich itreceived additional evidence
assaidinsubsection (a),asthecasemaybe,thecommittee shalldeliver itsconclusions
anditsreasoned recommendations totheMinister, including -
(1) conclusions ontheexistence ofdumped orsubsidized imports, and
ontheextent ofthedumping ortherateofsubsidization, asthecasemay
be;
(2) conclusions onthematerial injury caused orliable tobecaused to
anybranch ofproduction, orwhether thedevelopment ofabranch ofG/ADP/N/1/ISR/2
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production -thecreation ofwhich hasbegun -isbeing orisliable tobe
prevented, andwhether thatdamage oroutcome stems from dumped or
subsidized imports;
(3) proposals concerning theimposition ofanti-dumping duty or
countervailing 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 fromtheplaintiff, then
theCommissioner, inconsultation withthecommittee chairman, orthe
committee, asthecasemaybe,maystopdealing 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 injury 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 weredelivered tohim; ifhe
failstodoso,orifhedecides todisagree withthecommittee 'srecommendations, he
shallnotify thecommittee andtheplaintiff 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
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Imposition of25. (a) Countervailing dutyshallapply togoods thatoriginate fromacountry of
countervailing production, inwhich there isasubsidized price forthose goods.
duty
(b) Countervailing dutyshallbeattherateofpartorallofthesubsidy, at
thetimethedutyisbeing set.
Liability to 26. Theimporter ofgoods isliable forthepayment ofanti-dumping dutyandof
duty countervailing duty.
Effect 27. (a) Anorder thatimposes duty under section 23shall beforaperiod
ofthreeyears fromthedayofitsimposition, unless ashorter period issetintheorder;
upon thecommittee 'srecommendation theMinister mayreimpose theduty, ifthe
conditions foritsimposition continue toexist.
(b) Theordershallapplytogoodsclearedthroughcustomsonthedayonwhich
itgoesintoeffect, andthereafter.
(c) Notwithstandingtheprovisionsofsubsection(b),theMinistermayprescribe
thatthedutyapply alsotogoods cleared through customs against temporary surety,
assaidinsection 28;theMinister having sodetermined, thedutyshallapply even
ifthegoods havepassed outoftheimporter 'spossession.
Temporary 28. (a) IfitappearstotheCommissionerprimafacie,thatgoodshavebeenimported
surety orareabout tobeimported asdumped orsubsidized imports, anditappears prima
faciethatinjury isliable tobecaused toabranch ofproduction, hemayinform the
director oftheestimated rate-inhisopinion -oftheanti-dumping dutyandofthe
countervailing dutythatwillapply tothose goods.
(b) TheCommissioner having notified thedirector assaidinsubsection (a),
thedirector shallrequire theimporter toprovide surety forpayment oftheduty, at
theratecommunicated bytheCommissioner assaidinsubsection (a).
(c) Once thedutyhasbeenimposed, thesurety shallbeforfeit assaidinthe
order; ifthedutywasimposed inanamount lower thanthesurety, thedifference
shallberefunded; ifnodutyisimposed within sixmonths from thedayonwhich
surety wasprovided, thesurety shallbecancelled.
Title Six: Re-examination ofDuty
Request for 29. (a) Animporterwhoimports,orisabouttoimportgoods,onwhichanti-dumping
reexamination dutyorcountervailing dutyhasbeenimposed, oraperson entitled tolodge acomplaint
ofduty under section 16,maysubmit areasoned written request forre-examination ofthe
order thatimposed theanti-dumping dutyorthecountervailing duty, anditschange
orrepeal (hereinafter: re-examination request).
(b) Are-examination request shallnotbeconsidered, unless atleastoneyear
haspassed since thedutywasimposed, buttheCommissioner maydecide toconsider
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Dealing with 30. (a) IftheCommissioner determine thatthere isprima facie basis forthe
request re-examination request, heshall soinform theapplicant andtheparties tothe
proceeding.
(b) IftheCommissioner finds thatthere isnoprima facie basis forthere-
examination request, heshallinform sotheapplicant andexplain thereasons forhis
decision.
(c) TheCommissioner maypublish anotice about there-examination request
inReshumot andintwodaily newspapers.
(d) Theparties toaproceeding assaidinsubsection (a)mayrespond tothe
re-examination request within 30daysofthedayonwhich thenotice assaidin
subsection (c)waspublished; other interested parties mayalsorespond totherequest.
(e) TheCommissioner shalltransmit there-examination request, theresponse,
ifonewassubmitted, andtheresults ofhisexamination tothecommittee fordiscussion,
within 21daysofthedayforthedelivery ofaresponse.
Committee 31. (a) When theCommissioner hastransmitted are-examination request tothe
discussions committee, thecommittee shallsummon theapplicant andtheparties totheproceeding,
andMinister 'sattheirrequest, tostatetheirarguments before it;thecommittee mayalsosummon
decision on anyother person itbelieves canbehelpful toitswork.
reexmination
request (b) Attheconclusion ofitswork andnolater than 30days after the
Commissionertransmittedtherequesttoit,thecommitteeshallbringitsrecommendation
onthere-examination request before theMinister.
(c) TheMinister, taking intoaccount theconsiderations andconditions assaid
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 branch 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 assaidinsection 34shall
beaproportion oftheprice ofgoods sold, orofservices provided, orofwages paid
bythedealer, oragiven amount perunitofproduct orperemployee, oraccording
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(c) Ifthelevyissetataproportion oftheprice ofgoods soldorofservices
provided byadealer, thentheprice shall besetaccording totherules setoutin
Chapter Three oftheVAT Law.
(d) TheprovisionsofChapterFiveshallapply,mutatismutandis,totheresearch
levy,andwherever "director", appears inthatchapter, then-forthepresent purpose -
read"theMinister oraperson soauthorized byhim".
(e) Theeffect ofanorder under thissection shalllapseon31December 1992,
unless anearlier dateissetintheorder.
Periodic 34. (a) Adealer liable toresearch levyshalldeliver -towhom andinthemanner
return prescribed bytheMinister -returns onsales, wages oranyother parameter onwhich
thelevyisbased, forevery report 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. Foreachindustry specified inanorder under section 33(a), theMinister shall
itspurpose establish anindustry fundforthepromotion ofresearch, marketing andvocational
training inthatindustry, andfortheimprovement ofproduction processes andproduct
quality (hereinafter: fund), which shalloperate within theframework oftheMinistry
ofwhich theMinister isincharge.
Uses of 38. Thesumscollected asresearch levyshallbededicated onlytothefund'spurposes,
thefund andtheyshallbeexpended asthemanagers ofthefunddecide.
Sources of 39. Inaddition tothemoney placed atthefund'sdisposal assaidinsection 38,
fund thefundmayreceive fromanyperson money andallocations fortheadvancement of
itsobjectives andforitsactivities.
Incorporation 40. Afundestablished under section 37isabody corporate.
Management 41. (a) TheMinister shallappoint a9member management committee forthe
fundandheshall appoint oneofthem -inconsultation withtheorganization of
producers assaidinsection 33(a) -tobethechairman.
(b) Themembers ofthemanagement committee shallbe-
(1) threegovernmentrepresentatives,twoofthemfromthestaffoftheMinistry
ofwhich theMinister isincharge, andoneofthestaffoftheVocational Training
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(2) three representatives ofemployers intheindustry, appointed onthe
recommendation oforganizations, whose members employ amajority ofthe
employees intheindustry;
(3) twoadditional representatives appointed bytheMinister fromamong those
liable totheresearch levyforthatfund;
(4) arepresentative ofthelabour organization whose members include a
majority oftheorganized employees intheindustry.
(c) Themanagement ofthefundshallprescribe itsownprocedures, asfar
asthose havenotbeenprescribed 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 ontheexport ofgoods.
Return 43. Thedirector maydemand from anyperson whohaspossession ofgoods ofa
category onwhich alevyhasbeenimposed, thathedeliver areturn onthequantity
ofgoods imported, exported orheldbyhim,theirvalue, purchase price, saleprice,
where theyarekept, thewages paid, theservice charges paid, theaddress ofthe
business orwarehouses inhispossession andevery other particular required inthis
context, allasspecified inthedemand.
Fees 44. TheMinister mayprescribe, byorder withtheapproval oftheKnesset Finance
Committee, theratesoffeestobepaidbypersons whosubmit complaints orrequests
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) alevy ontheimport ofgoods, including anti-dumping duty and
countervailing duty-untilthetimewhen customs arepaid; andifthegoods
areexempt fromcustoms -untilthetimewhen thebillofgoods isreleased for
consumption inIsrael; anti-dumping dutyimposed ongoods cleared through
customs, assaidinsection 27(b) or(c)-within 30daysafter thelevywas
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(2) alevyontheexport ofgoods -uptothetimeoftherelease ofthebill
ofgoods forexport;
(3) alevyonthepossession ofgoods -within 30daysofthedayonwhich
thegoods came intothepossessor 'spossession, orofthedayonwhich thelevy
wasimposed, whichever islater;
(4) alevyontheprovision ofservices -within 30daysaftertheservice has
beenprovided.
Deferment of46. (a) Notwithstanding theprovisions ofsection 45,thedirector maydeferdates
dateforpay- forthepayment ofalevyandhemaymake deferment conditional upontheprovision
ment oflevy ofsurety which hedeems satisfactory.
(b) Ifthedirector deferred thedateforthepayment ofthelevy, there shall
beadded toit-fortheperiod ofdeferment -linkage differentials attherateofincrease
oftheconsumer price index published bytheCentral Bureau ofStatistics, from the
index lastpublished before thedateforthepayment ofthelevyuntiltheindex last
published before theactual payment.
Determination 47. (a) Ifaperson chargeable forthepayment ofresearch levydidnotsubmit
oflevyupon aperiodic return, assaidinsection 24,orifthepossessor ofgoods didnotsubmit
non- areturn assaidinsection 43,thedirector mayprescribe thelevywhich hemustpay,
submission takingintoaccounttheextentofhisbusinessoractivity,andwheredataarenotavailable
ofreturn -byestimate.
(b) Determination ofalevy,assaidinsubsection (a),shallbecancelled when
areturn issubmitted within 12months ofthedayonwhich thelevywasset.
Assessment 48. Ifaperson liable toalevyhassubmitted areturn andthedirector isoftheopinion
thatthereturn inincomplete, orinaccurate, ordoesnotrestondocumentation orproper
account books, thenthedirector mayassess thelevyduetothebestofhisjudgement.
Contestation 49. (a) Ifaperson disagrees with adecision 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) Ifaperson disagrees withtheclassification ofcertain goods, orwiththe
determination thattheyarepartofaclassification towhich thelevyapplies, orwith
anassessment under section 48,orwiththevalue setforgoods forpurposes ofthe
levy, hemaycontest itinwriting before thedirector, within 15daysofthedayon
which thelevywasimposed orthedecision made, asthecasemaybe,orwithin a
longer period allowed himbythedirector because ofspecial reasons which shallbe
recorded.
(c) Ifthecommittee chairman orthedirector made nodecision onthe
contestation within twomonths ofthedateonwhich itwasmade, thenthecontestation
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Appeal 50. (a) Whoever disputes hisliability toalevyorwhodeems himself aggrieved
byadecision ofthecommittee chairman orofthedirector onacontestation under
section 49,mayappeal against itwithin 30daysofthedayonwhich hewasinformed
oftheobligation topayalevyorofthedecision ofthecommittee chairman orofthe
director, asthecasemaybe.
(b) Thecourt competent tohearanappeal under subsection (a)istheDistrict
Court; theappeal shallbeheard byasingle judge.
(c) Theappeal shallbeheard inopencourt, unless thecourt orders 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 oftheimplementation ofthislawthedirector shallhavethepowers
director prescribed bysections 108to111,114and115oftheVAT Law.
Violations 52. (a) Anypersonwhocommittedoneofthefollowingshallbeliabletooneyear's
imprisonment:
(1) hedelivered areturn, information, account book, document orother
certificate (hereinafter inthissection: document) which isfalseinanimportant
particular;
(2) hedidnotdeliver areturn which hewasrequired todeliver under the
provisions ofthislaworbyregulations under it,other thanaquestionnaire or
calculation under section 19,orhedelivered itlate;
(3) heinterfered withtheperformance oftheduties ofanyperson whoacted
lawfully under thislaw;
(4) herefused todeliver orabstained fromdelivering adocument orsample,
which hewasobligated todeliver, having beenordered todoso;
(5) heunlawfully revealed confidential information, which came intohis
possession forpurposes ofthislaw;
(6) hecontravened oneoftheprovisions ofthislaworofaregulation under
it.
(b) Ifaperson committed onetheoffenses enumerated insubsection (a)with
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thesaidintention, orifhewilfully concealed, destroyed, orchanged adocument which
hewasrequired tokeeportodeliver under theprovisions ofthislaw,heshallbeliable
tothree years'imprisonment.
Offenses by 53. Ifanoffence against thislawwascommitted byabodycorporate, thenanyperson
bodies who-atthetimetheoffence wascommitted -wasanactive director, secretary, partner -
corporate other thanalimited partner -comptroller oraranking administrative employee
responsible forthatsphere shallalsobeguilty ofitunless heproves thattheoffence
wascommitted without hisknowledge andthathetookallappropriate stepstoensure
compliance withtheprovisions ofthislaw.
Responsibility 54. Ifanoffence against hislawiscommitted byanemployee oragent inthecourse
foractions ofofthebusiness ofaperson liable toalevy, thentheliable person mayalsobeaccused
employee ofthatoffence, unless heproves thattheoffence wascommitted without hisknowledge
andthathetookallappropriate stepstoensure compliance withtheprovisions ofthis
law.
Monetary 55. (a) Ifaperson committed anoffence against theprovisions ofthislaworis
composition suspected thereof, thedirector may-withthatperson 'sconsent -accept from him
monetary composition inanamount nogreater thandouble thelargest finethatcan
beimposed forthatoffence, orthree times thevalue ofthegoods, inconnection with
which theoffence wascommitted, whichever isthelarger amount, andwhen hehas
doneso,every legalproceeding inconnection withthatoffence shallcease; however,
ifanindictment forthatoffence 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 forthesaidoffence, anditmaybeguaranteed byathirdparty
orbewithout guarantee, asthedirector shalldecide.
(c) Ifaperson isfound guilty ofanoffence, 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.
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Arrear 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 thatthe
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 prescribes otherwise.
TheState 62. TheprovisionsofChapterThreeshallapplytogoodsimportedbythegovernment,
except forcustoms exempt combat equipment.
Implementation 63.(a) TheMinister ischarged withtheimplementation ofthislawandhemay
andregulations make regulations foritsimplementation.
(b) TheMinister ofJustice maymake 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.
Effect 65. (a) Thislawshallcome intoeffect on1January 1991.
applicability
and (b) Theprovisions ofthislawonanti-dumping dutyandcountervailing dutyshall
transitional apply tocomplaints submitted onthedayofitspublication andthereafter; ifaperson
provisions submitted acomplaint before thislawwentintoeffect andifnotice ofitssubmission
waspublished under thelawineffect justbefore thislawwaspublished, andifitwas
notyetbrought before thecommittee, thenhemayinform theCommissioner thathe
desires thecomplaint tobedealt withunder theprovisions ofthislaw; asaid
notification shallbedelivered totheCommissioner inwriting within onemonths after
thepublication 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
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(2) ifanorder wasmade under thePrevention ofDumping Law5737-1977,
are-examination request initsrespect maybemade under thislaw.