Israel Tariff 2026: Stay Compliant, Reduce Costs

Israel Customs Duties Overview

Israel maintains a relatively liberal trade regime, bolstered by Free Trade Agreements (FTAs) with major economies like the US and EU which often allow for zero-duty entry on industrial goods. However, the import structure is multi-layered, consisting of Customs Duties, a Purchase Tax (similar to Excise) on luxury goods, and a standard Value Added Tax (VAT) of 17%. Importers must carefully classify goods to determine if they are subject to specific Purchase Taxes, which can significantly increase the landed cost beyond standard tariffs.

• Ad Valorem Duty: The most common duty method, calculated as a percentage of the CIF (Cost, Insurance, and Freight) value of the imported goods.

• Purchase Tax (Excise): A consumption tax levied on specific items such as vehicles, electronics, and raw materials, regardless of country of origin.

• Port Fees (MPF Equivalent): Israel charges a Port Fee on imports, which functions similarly to a Merchandise Processing Fee, calculated on the value of the cargo.

• Specific & Compound Duties: Often applied to agricultural products and textiles, these combine a percentage rate with a fixed currency charge per unit.

• Antidumping: Targeted duties applied to specific foreign manufacturers found to be selling goods below fair market value to protect local Israeli industry.