Israel Free Trade Agreement (ILFTA)
Information for U.S. Exporters is available through the Department of Commerce at: http://www.export.gov/FTA/index.asp
The Israel Free Trade Area Agreement (ILFTA) went into effect on September 1, 1985 and has included Qualified Industrial Zones (QIZs) since 1996. The QIZs, although originally limited to the West Bank and Gaza Strip, were subsequently expanded to include parts of Egypt and Jordan.
All or virtually all Israeli goods are eligible for ILFTA preference. For Israeli goods to benefit, they must be wholly the product of Israel or be manufactured in Israel and meet a 35% direct cost of processing (DCP) rule.
In order for goods of a QIZ to benefit, they must be products of a QIZ, and meet the 35% DCP requirement, including a lessor Israeli DCP requirement.
Goods of Israel enter the commerce of the United States exempt from the merchandise processing fee (MPF) irrespective of whether or not they meet the terms of the ILFTA.
To learn more about how to claim preference on these goods, select the following:
Israel FTA General Notes 8 and Qualified Industrial Zone QIZ General Notes 3(v) of the Harmonized Tariff Schedule of the United States (HTSUS)
A current link to general notes including the rules of origin and other requirements. There are no Israel FTA Regulations.
NOTE: On the USITC link, select the “General Notes; General Rules of Interpretation; General Statistical Notes,” link, followed by “General Notes 8” or “General Notes 3(v)”.
Any claim for preference under the Israel FTA must demonstrate that the good meets the origination and shipping requirements of the FTA.
The Israel QIZs were most recently expanded per Federal Register 78, No. 48, Tue., March 12, 2013.
The following Israel FTA goods may be subject to a reduced tariff rate quota (TRQ): Dairy and peanuts. Click here for an overview of quota. Go to the Commodity Graph Report for current fill levels. Go to the TPL Threshold to Fill List to see almost closed and closed quotas.
Israeli goods enter the commerce of the United States duty free. Individual tariff items may be looked up using the Department of Commerce tariff tool.
The Reconciliation Prototype is unavailable for post-importation Israel FTA claims because they are not administered under 19 USC 1520(d) but as Post Entry Amendments (PEAs) and Post Summary Corrections (PSCs).
Additional Resources and Regulations:
The complete text of the agreement.
Public Law No. 99-47, 99 Stat.82 and codified at 19 USC 2112 note
Amendment to the Israel FTA Implementation Act of 1985 with respect to the West Bank, Gaza Strip or a qualifying industrial zone. Public Law 104-234, Oct. 2, 1996, 110 Stat. 3058 and codified at 19 USC 2112 Note.
This document enacts the expansion of the ILFTA to Include the Qualified Industrial Zones