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Issue No. 4 - April 2016 
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Welcome to the fourth issue of Customs & Trade in Israel
which brings you the latest legal and business updates in the field of Customs & Trade in Israel.
We hope you find this newsletter informative and useful.

Customs & Trade in Israel, published by the Customs and International Trade Law Practice at Goldfarb Seligman & Co., provides legal, regulatory and legislative updates related to customs and international trade in Israel.
Customs
 1. Protocols and Resolutions of the Customs Committees will be Delivered to the Importer  
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Overview: Disputes between the Customs Authority and importers relating to the disclosure of documents during a lawsuit are common, and occur routinely.

In the following article we will review the Petah Tikva Magistrate Court's ruling, which ordered the Customs Authority to provide an importer with the protocols and resolutions of its committees on the subject of indirect taxes, rejecting the confidentiality claims of the Customs Authority.
 
 2. Not Every Delay in Customs Warrants Compensation
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Overview: The Customs Authority is authorized to delay the release of imported and exported goods if it suspects a related offense has been committed, including false or fraudulent statements, failure to submit required documents, and others.

The question of compensation arises: if the Customs Authority delays the release of goods for a time, and then releases them, is the owner of the goods entitled to compensation for the delay?

In this article we will review the Tel-Aviv Magistrate Court ruling that addresses this question.
 
 3. The Court: a Customs Debt Notice which is not Backed by Tangible Evidence may be Annulled
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Overview: In the following article we will review the Tel Aviv Magistrate Court's ruling on the customs classification of a "turkey flavored paste".

The court determined that the importer proved his claim regarding the essence of the goods and accepted the importer's classification. The court criticized the Customs Authority for its conduct in the case, as it failed to preserve samples of the product and submitted opinion reports based on theories and assumptions rather than facts. 
 
Customs - Valuation
4. The Saga Ends in the Supreme Court: Jewish Religious Supervision Expenses are Dutiable 
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Overview: Among the most common disputes between commercial importers and the Customs Authority are disputes regarding the value of the transaction. In other words, the sides dispute as to the amount subject to import duty.
Over the past two years, Magistrate and District Courts ruled in several cases that the expense of Jewish religious supervision should be included in the dutiable transaction value. Appeals of these rulings were submitted to the Supreme Court.

Recently, the Supreme Court offered its first decision on the subject, as part of its response to a motion for leave to appeal. The court's decision ended the legal saga, determining that Jewish religious supervision expenses should be included in the dutiable transaction value.
5. The Court: a Private Automobile Importer will not Receive Information on Other Importers
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Overview: Among the most common disputes between importers and the Customs Authority are disputes regarding the value of the transaction. The importer is the one burdened with proving his original valuation was the accurate one.

In such a case, will the importer be allowed to view the Customs Authority documentation of the valuation process for other importers of similar goods? Or will the Customs Authority claim of confidentiality take precedence?

In the following article we will review the Rehovot Magistrate Court's ruling, which rejected the importer's request to view the Customs Authority's decisions in similar cases.
Export Control
6. Increased Enforcement of Defense Export Control - First Criminal Trial Ruling 
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Overview: The intent behind the Defense Export Control law and the various regulations and orders enacted thereunder, is to regulate defense export on the grounds of national security, foreign policy, international commitments and other crucial interests of the State of Israel.

In this article we will review the first criminal trial of an Israeli exporter for violating the Defense Export Control law, finding him guilty. We will conclude with a review of the trial's implications..
7. Regulating Cyber Activity in Israel - Publication of the Draft for the Cyber Control Order
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Overview: In this article we will review the recent developments in the regulation of the cyber domain in Israel relating to defense export control of the cyber domain.

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The content in this communication is provided for informational purposes only and is not intended to be comprehensive. It 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 communication or its recipients about any normative, legal or other changes that may impact the subject matter of this communication. If you are interested in obtaining further information or wish to follow the legal developments in this matter, please contact Adv. Gill Nadel - Chair of the firm's Import, Export and International Trade Law Practice, Tax Department. Email: Gill.Nadel@goldfarb.com, phone: +972-3-6089979.