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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