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

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

3. 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.

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

5. 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

6. 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

7. 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"

8. 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

9. 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.

10. Thank you