Reforms and Procedures of Agricultural Imports to Israel Inbar Grinstein-Deker Director of International Trade Ramat-Gan, December 2017
Israel is a Net Food Importer Export
But a Net Exporter of Fresh Produce Import
Different Composition of Production and Export Production Value 29 Billion NIS Export Value 4.6 Billion NIS Source: Central Bureau of Statistics, 2016
Import Sources are Diverse ch. 1-24
We Import Mainly Grains
Nine Signed Bilateral FTAs European Union 1975, 1995 United States 1985 EFTA 1992, 2018? Canada 1997, 2015 Turkey 1997 Mexico 1999 MERCOSUR 2007 Colombia 2013 Panama 2016 Korea Ukraine Vietnam Eurasian Customs Union China India Negotiations
Import Procedures Taking into consideration: High / Regular demand Duty free / Reduced duty Consumer / Industry Established / New importers Large / Small importers Israeli / Palestinian destinations
High Demand TRQs 2018 quota requests from 17.12.17 including “Shipped of Board” documents. 10% of the TRQ is initially allocated to new importers 20% of the TRQ is initially allocated to Palestinian importers
High Demand TRQs EU TRQ Product 180 Honey 2,300 Onions 380 Quinces 2,140 Pears 3,280 Apples 230 Garlic 200 Mushrooms (Oct.-Apr.) WTO voluntary TRQs Chickpeas Almonds Groundnuts
FCFS EU TRQs 2,060,000 units Chicks 250 Tunas 100 Asparagus 730 (+WTO quota) Prunes 560 Watermelon seeds 1,150 Dog/Cat food additives 1,610 Other animal food additives 120 Raisins 50,000 units Turkey eggs for incubation 2,450 Fresh Fruits*
Industry TRQs EU Quotas 300 Honey 6,380 Potatoes 8,004,800 Fresh eggs Voluntary WTO Quotas Groundnuts Olives
Policy Changes
Import Policy Reforms Beef Market Timeline Increased duty-free TRQs for fresh/chilled bovine meat Elimination of customs duties for the Import of Calves for slaughtering Mandatory labeling of thawed meat Fixing the customs rate to only 12% from 2020 Decreased tariffs for fresh/chilled bovine meat Gradually increased direct support 2014 2015 2016 2017 2018 2019 2020 2021
Import Policy Reforms Beef WTO Duty Free TRQs (tonnes) Tariff rate Duty Free WTO TRQs -Tonnes Year 12% + 13.00 NIS/kg 6,000 2015 7,500 2016 12% + 9.75 NIS/kg 10,000 2017 12% + 6.50 NIS/kg 12,500 2018 12% + 3.25 NIS/kg 15,000 2019 12% 17,500 2020
Import Policy Reforms Cheese Market Timeline 2011: “The Cottage Cheese protest” 2014: a budget of NIS 60 million transferred over 4 years to support the dairy cattle sector, accompanied by gradual reduction of tariffs for the importation of various dairy products
Import Policy Reforms Dairy WTO Duty Free TRQs (tonnes) Yoghurt 1,250 2014 1,500 2015 2,000 +2016 TRQ Semi-Hard Cheese 4,200 2014 4,800 2015 5,400 2016 6,000 2017 6,500 2018+ TRQ Butter 750 2014 1,000 2015 1,250 +2016 TRQ Cream 750 2014 1,000 2015 1,200 +2016
Import Policy Reforms Fish Event1 Passover TRQs March 2016 – July 2016 3,500 tons of frozen Tilapia + 500 tons of carp and mullet NIS 23 million Direct Payments Event2 Fixed tariff reduction plan Immediate tariff reduction of 50% Further reduction in the next 3 years Examining reduction threshold every year Direct Payment for 7 years - NIS 30 million NIS 77 million for Environmental reforms Frozen Tilapia 2015 Customs Tariff – 15 NIS/Kg 2016 Customs Tariff – 7.5 NIS/Kg
Regulatory Policy Improvements Imports of plants and plant products Exemption from license for safe products Shortening the PRA process Reducing laboratory tests Reducing the rate of inspections at ports using Risk Management Methodologies Imports of animals and animal products Extending shelf life of chilled meat Eliminating import license requirement for live fish
Regulatory Policy Improvements Imports of agricultural equipment Adaptation of international regulations 90% reduction in document requirements TRQs under bilateral and multilateral agreements 75% reduction in document requirements Computerized TRQ submission system