Doing Business With Israel
~11,000 KM / 8600 MILES
Presented by: Dan Carmely, Adv.
Deputy Director General,
Parliament, Government and Legislation Affaires
August 2013
Israel’s Business Organization
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Founded in 1919
Roof organization
Over 5,000 businesses and organizations
Public, independent, non-profit entity
Promotes business sector
100 sub-sector divisions, including importers,
exporters, retailers and wholesalers
Represents our members’ interests at various
official entities
Sectors
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Pharma
Toys
Electronics
Food & Bev.
Retail & Trade
Education
Chemicals
Transportation
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HR
IPR
Energy,
infrastructure
Agriculture
Media
Weapons
Financial
Main Divisions
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International Relations
Economics
Import, Custom & Standardization
Public Relations
Business Services
Legal & Labor Relations
Certificates & Documentation
International Relations Division –
Promoting International Trade
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International Links –
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Distributing Business Profiles –
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Seminars and Conferences –
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Economic Forums -
International Relations Division –
One-Stop Shop
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Business Opportunities Database –
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Publications –
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Website –
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General Information –
Internet
Website:
www.chamber.org.il
Doing Business in Israel Group:
www.linkedin.com
Blog: http://chamber.cafe.themarker.com
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http://www.twitter.com
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Post your Offer
Search for Business Opportunities
Search for Business Opportunities
Exporting to Israel
The Israeli Market
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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
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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
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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
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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.
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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?
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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
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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
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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
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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?
is Your Point of Contact in Israel
Thank you!
Tel: 972-3-563-1020
Fax: 972-3-561-9027
Email: chamber@chamber.org.il