Allocation of Duty-free import quotas Yair Shiran Head of Industries Administration Chairman of the quotas committee Ministry of Economy & Industry

DG Executive Order 2.7 is the legal document governing the allocation of Duty-free Import quotas

Types of Quotas Mandatory Quotas – Resulting from Israel’s Free Trade Agreements with its international trading partners (E.U., U.S.A., Canada, E.F.T.A., Turkey Etc.) Voluntary Quotas – Resulting from Government resolution and/or Minister of Finance order.

The implementation of the Quota allocation order is executed by: Ministry of Agriculture – Fresh products Ministry of Economy & Industry – Processed Agricultural products

Generally, quotas are allocated twice a year: At the beginning of the year the process begins in October of the previous year (advertising quotas for allocation) and actual allocation at the beginning of January Mid-year the process begins in late May (collection of unused allocations, advertising quotas in June) and actual allocation in early July

Allocation of quotas at other times of the year: As a result of a shortage in the market - for example, olive oil quota in 2015 As a result of a Government Decision or Minister of Finance Decision - for example, the food reform quotas in March 2016 As a result of “Shmita year” - for example, grape juice quota in March 2016

Guidelines for the work of the Quotas Committee: Prevention of license trading Increase of competition in the domestic market Reducing consumer prices Supporting the development of domestic industry Support for small businesses and manufacturers Utilization of quotas Compliance with international trade agreements Prevention of “unnecessary hands"

Types of quotas (Demand) High Demand quotas requested quantity is greater than the allocated quotas quantity. for example in: Cheeses, olive oil, frozen vegetables, butter, milk powder etc. Normal Demand quotas Low Demand quotas allocated on a first-come-first-served basis

Quotas allocated by Competitive procedure Allocated according to ‘lowest consumer price’ basis. Currently operated in three products: Cheese, Meat, Butter. Cheese: ~6,000 tons allocated quotas per year, out of an annual ~25,000 tons consumption in the retail market. Meat: ~13,000 tons allocated quotas per year, out of an annual ~20,000 tons consumption in the retail market.

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