Doing Business With Israel Presented by: Dan Carmely, Adv. Deputy Director General, Parliament, Government and Legislation Affaires August 2013 ~11,000 KM / 8600 MILES

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Exporting to Israel The Israeli Market Israel is a mature market in many sectors and U.S. companies will face significant local and international competition. The Israeli market is a very complex and competitive market with as many threats as opportunities.

Exporting to Israel The Israeli Market The market is very dynamic: market structures change constantly and buying motives are today different from those of 5 years ago. Free trade agreements. EU and Asian competition – EU regulatory and business orientation.

Exporting to Israel Trade Regulations, Customs and Standards Import Tariffs -Israel's tariff classification is based on the Harmonized System (HS) Code. Import Requirements and Documentation - All administrative import licensing requirements for U.S.-made consumer and industrial goods have been eliminated under the FTA, excluding the requirements for most food and agricultural products.

Exporting to Israel Trade Regulations, Customs and Standards Labeling and Marking Requirements - Israel has strict marking and labeling requirements that frequently differ from those of other countries. U.S. exporters should consult with their Israeli importer prior to shipping any product that will be offered to the local market. Standards- The Standards Institution of Israel (SII) is the only statutory body in Israel that develops and establishes standards.

Exporting to Israel What’s your product? Commissioned Agents: used mainly for industrial equipment, raw materials and commodities. Non-Stocking Agents: used mainly by manufacturers. Stocking Agents: used mainly for high volume items. Importers/distributors: used often for consumer goods. Franchising/Licensing: since its introduction to Israel in the mid-1980s, franchises have increased in popularity. ACE Hardware, Office Depot, Re/MAX, McDonalds, Toys-R-US, UPS, FedEx, American Eagle all operate in Israel.

Exporting to Israel joint ventures and licensing Joint ventures are the most popular methods of cooperation for Israeli firms, especially in technology-related industries. Israeli businesses prefer licensing agreements in which the licensor takes equity with the licensee. U.S. companies should seek advice from a competent law firm and accounting firm when figuring tax liabilities. The United States and Israel have signed a tax treaty to avoid double taxation.

Exporting to Israel Distribution and Sales Channels Distribution methods vary by type of product. Roughly 40% of Israel's 7.8 million people are concentrated in the greater Tel Aviv metropolitan area, Israel's commercial and financial center. Consumer malls and shopping centers are popular in Israel. Over 200 malls and shopping centers exist and others are planned.

Exporting to Israel Transportation & Logistics The currency difference between the US dollar and the Euro gives clear advantage for US exporters when exporting to Israel. When looking at shipping prices this advantage changes in favor of the EU exporters – mainly by sea. Shipping by sea to Israel takes approximately 30 days including land transportation. This effects time of supply and costs. When shipping by air you can reach Israel from any point in the US in aprox 2 days. The cost of shipping by sea in comparison to Europe is about 30% higher. The cost of shipping by air on the other hand is relatively cheaper due to the high capacity of flights.

Exporting to Israel how to do it? Your Point of Contact in Israel is Your Point of Contact in Israel

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