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Mandatory Industrial Cooperation Regulations - Umbrella Agreements
Dear Clients,

Israeli regulations impose international reciprocal purchase obligations on foreign entities that win a government tender in Israel that exceeds $5 million. Such foreign entities are required to purchase a certain percentage of local goods or services and sign a reciprocal purchase obligation with the Industrial Cooperation Authority (“ICA”).

Due to the considerable amounts of resources the Israeli government intends to invest in major infrastructure projects in the years to come, we recommend that foreign entities who intend to engage in business with the public sector in Israel should consider entering into an Umbrella Agreement with the ICA. Such an agreement governs all of the foreign supplier's obligations towards the ICA in a comprehensive manner and grants certain advantages to the foreign supplier.

For the full article, please click here.
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The content in this Memo is provided for informational purposes only, and does not serve to replace professional legal advice required on a case by case basis. The firm does not undertake to update the information in this Memo, or its recipients, about any normative, legal, or other changes that may impact the subject matter of this Memo.

Should you have any questions or need additional information regarding this matter, please feel free to contact Adv. Rami Sofer, Head of the Corporate, Finance and Infrastructure Department: rami.sofer@goldfarb.com or Adv. Roy Aga, Partner, Corporate, Finance and Infrastructure Department: roy.aga@goldfarb.com or at: +972-3-6089369.