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How to Export
Required Documents
Procedures/Transportation
Exporting & Re-Exporting
How to Import
Required Documents
Licensing System
Standards & Testing
Technical requirement/Labeling/Packaging
Clearance Procedure
Taxes/Tariff
Transportation
Trade Finance
Trade Environment
How to Export
Preliminary
Steps
Before
getting involved in the export business, exporters
should do the following:
- Assess
the potential market abroad for the product
intended for export;
- Gather
information on standard requirements and quality
standards in the country of destination;
- Ascertain
whether any trade agreements exist, signed by
the PLO, which grant preferential tariffs
(either duty free or reduced tariffs) to export
to the selected country;
- Negotiate
and agree with the importer the terms of the
contract such as quantities, quality, packing,
marking and labeling requirements, prices, terms
of payment, means of transportation and payment
of the shipment;
- Obtain
all necessary documents, licenses and
certificates required for exporting. These
include health certificates, standards testing,
veterinary, phytosanitary certificates and
export licenses. Documents are required
according to the type of product to be exported
as well as on the importer’s requests;
- Obtain
the Foreign Trade Dealing registration (Chapter
1, Section 4.2);
- Contact
a clearing agent to gather information about
requirements and procedures for exporting.
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Documents
The
documents needed to complete the export procedures
are presented in the following sections.
Export
License
Exports
do not normally require licenses. There are,
however, certain categories of goods, which need to
fulfill standards and other controls. For these
goods, licenses are the authorization to export,
when all requirements have been fulfilled.
Categories
of goods requiring an authorization are the
following:
- Foodstuffs and
chemicals
- Authorization is obtained from the Ministry of
Health.
-
Agricultural
products
- Authorization is obtained from the Ministry of
Agriculture and is valid for a single shipment. If
seasonal products are exported, a seasonal
registration must be undertaken at the Ministry
before applying for the export authorization. The
Ministry of Agriculture also issues the
phytosanitary certificate, after an agronomist
from the Ministry checks that the farm complies
with the requirements. The agronomist’s check
takes one day and no fees are charged. When the
importer requires additional analysis, it is
possible to have them completed at the Ministry of
Agriculture and the results attached to the
documents sent to the importer.
Certificate
of Origin
Certificates
of origin are necessary to benefit from preferential
tariff treatment. For more details on rules of
origin and trade agreements signed by the PLO refer
to Chapter 1, Section 3.
Certificate
of Origin: EUR.1
The
free trade agreement signed between the PLO and the
European Union states that only goods accompanied by
a certificate of origin benefit from duty free
entrance. The certificate of origin is called EUR.1
and it is the proof that goods are entitled to duty
free treatment because they comply with the European
or the EFTA rules of origin.
This
document is available at the Customs Department -
Ministry of Finance - and at the Chamber of
Commerce. At the Chamber of Commerce, fees are
charged at a rate of 0,002% of the value of the
invoice. The certificate must be typed in English
and must include the exporter’s signature and
seal. In order to be valid, the Customs Department -
Ministry of Finance - must also stamp the
certificate and the stamping is done upon
presentation of the EUR.1. The Customs Department
– Ministry of Finance – is entitled to ascertain
the origin of the goods at the firm before stamping
the EUR.1. No fees are charged at the Customs
Department – Ministry of Finance.
The
EUR.1 form is also used when exporting to the EFTA
countries and the same procedure applies.
In
order to grant duty free treatment, the commercial
invoice and the packing list should accompany EUR.1.
A)
Substitutes for EUR.1: Invoice Declaration
The
EU agreement states that for products whose total
value does not exceed 6,000 Euro, an invoice
declaration to prove the origin can substitute the
EUR.1.
B)
Substitutes for EUR.1: Approved Exporter
The
EU agreement also states that any exporter who has
frequent shipments to the EU can be granted the
status of “Approved Exporter”. This translates
into the possibility of substituting the EUR.1
certificate with an invoice declaration.
Certificate
of Origin: Form A
The
American-PLO Free trade arrangement requires a
certificate of origin called Form A, to prove the
origin of the goods. Form A is the proof that goods
are entitled to duty free treatment because they
comply with the American rule of origin.
In
order to grant duty free treatment, the commercial
invoice and the packing list should accompany Form
A. The entrance document, which is a customs form
called CF7501, should also be attached and a special
permission for direct delivery to the USA called
form CF316 should be obtained. Both forms can be
obtained (free of charge) through the forwarder or
the clearing agent.
Certificate
of Origin for Canada
The
certificate of origin for Canada is the proof that
goods are entitled to duty free treatment when
exported to Canada as they comply with the Canadian
rule of origin. It has the form of a declaration,
which needs to be presented to the Canadian Customs
Authorities only upon request. The exporter must fax
it to the Canadian importer within the time limit
stated by the Canadian Customs Authorities. The
declaration that the goods originated in the WBGS is
to be completed and signed by the exporter.
Certificate
of Origin for the Arab Countries
The
certificate of origin for the Arab countries is the
proof that goods are entitled to preferential tariff
treatment because they comply with the Arab rule of
origin. The certificate of origin for the Arab
countries is available at the Chambers of Commerce.
Three copies need to be completed: one for the
Chamber of Commerce and two are retained by the
exporter. The original will accompany the goods
during the clearing procedures in the country of
destination.
A)
Procedure
The
Chamber of Commerce and the Ministry of Economy and
Trade must stamp the certificate for the Arab
countries. The certificate should include rule of
origin, the name of the products, the name of the
exporter/producer, the registration number of the
company and the place of origin of the raw
materials.
B)
Requirements
The
Chamber of Commerce requires the following
documentation to stamp the certificate of origin for
the Arab countries:
-
The
commercial invoice
-
The
corporate registration
-
Foreign
Trade Dealing registration
At
the Chamber of Commerce, the certificate is stamped
on the spot and fees charged at a rate of 0,002% of
the value of the invoice. The stamp at the Ministry
of Economy and Trade is also immediately obtained
and no fees are charged.
Shipping
Documents
The
clearing agent receives the products on behalf of
the exporter and starts the process of transferring
goods on to the international carrier (the shipping
procedures). The international carrier can be paid
either on “Freight Collect” or on “Freight
Pre-paid” basis. The former clause implies that
the importer will pay the carrier, while the latter
implies that the importer has already paid for the
carrier. The clearing agent should confirm cargo
space and load the shipping container (if not done
at the exporter’s factory).
The
following are the documents to be prepared prior to
shipping.
Insurance
An
insurance certificate is required for the goods
while in transit. The most common clauses related to
the trader’s liability for the goods are “Free
On Board” (FOB) and “Cost Insurance and
Freight” (CIF). FOB indicates that the importer,
receiving the goods, must pay for insurance from the
moment goods are shipped . In fact, the liability of
the exporter is limited to the port area of
departure. CIF indicates that the exporter must pay
for the insurance up to the port of arrival. The
shipping company provides insurance for the cargo.
Bill
of Lading
A
Bill of Lading is the transportation contract
between a carrier and the owner of the goods. The
carrier issues it and can be negotiable and
non-negotiable. Negotiable means that the goods can
be traded while in transit.
Airway
Bill
An
Airway Bill (for airfreight) is a document
constituting the carrier’s confirmation of receipt
for transport. The carrier issues it and is only
non-negotiable, therefore the goods cannot be traded
while in transit.
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Content
of the Bill of Lading/Airway Bill
Both
the Bill of Lading and the Airway Bill
contain the following information:
- Name
of the ship/carrier;
- Name
of the beneficial L/C bank;
- Description
of the goods (General description);
- Indication
of Full Container Load (FCL) or Less
Container Load (LCL) clauses;
- Pre-paid
freight or freight collect clauses.
The
“Master” Bill of Lading/Airway Bill is
exchanged between shipping companies while
the “House” Bill of Lading/Airway Bill
includes the names of the exporter and the
importer. The originals of the
“Master” and the “House” must be
sent to the importer’s clearing agent,
through the shipping company.
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Invoice
An
Invoice contains the name of the exporter, terms of
payment, unit price, total price, quantities and
weight of the goods. There are differences between
pro-forma and commercial invoices. The pro-forma
invoice is a document prepared by the exporter in
response to a sales order or inquiry. Its receipt by
the importer does not obligate the potential buyer
to purchase the product. A commercial invoice, sent
by the exporter, includes specifications that both
parties have agreed upon in advance and must be
printed on the exporter’s official letterhead. The
importer should sign a copy and return it to the
exporter. The commercial invoice could be a copy of
the pro-forma invoice if that was unchanged by sales
negotiations.
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Content
of the Pro-forma/Commercial Invoice
This
document should include as many details as
possible including a full description of
the products, prices, import
specifications, delivery dates, terms and
dates of payment, route to be taken,
packaging, shipment, insurance, type of
carriage, unloading and accompanying
documents. The details are needed to avoid
disputes and to obtain all required
documents, licenses and certificates based
on the description of the goods.
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Packing
List
A
Packing List should be prepared by the
producer/exporter.
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Content
of the Packing List
The
packing list indicates the gross and net
weight of the cargo, invoice number and
the importer’s name. It clearly states
all products sent by the exporter as well
as the number of pallets, boxes, the
contents of each box and the type of
products, their quality and
specifications.
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Normally,
any mistake in the packing list can cause a delay in
clearance at the port of destination. Customs
Authorities have the right to delay the clearance of
the shipment until the importer makes a packing list
reflecting the real content of the container (in
case the list originating from the exporter is
incomplete). The packing list is unnecessary only
when all information contained in it is clearly
stated in the invoice.
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Export
Procedures
Marking and
Labeling
Goods must be
labeled and marked. Shipping marks are important to the safe and speedy transfer
of the products. In fact, marks, complying with legal requirements, assist
carriers and Custom Authorities to identify the goods. Common shipping marks are
the identification of the importer, the number of the packing case, the port of
destination, gross and net weight, outside measurements of the case, the country
of origin and cautionary marks if careful handling is needed. However, rules
applying to shipping marks can vary according to the country of destination.
Labeling
requirements vary according to the country of destination. Normally, detailed
rules are applied to foodstuff, pharmaceuticals and cosmetics, textile and
garments. The importer provides details on labels according to the requirements
in the country of destination.
At the Port of
Embarkation
Goods are
transported to the port of embarkation where a “Dock Receipt” is issued,
upon arrival. The shipping company issues the “Dock Receipt” to confirm the
arrival and the reservation of the space for the shipment. Goods have to go
though security checks and clearing.
Security Measures
on Palestinian Exports
Palestinian goods
must reach the port 72 hours prior to departure for security reasons. During
this time, security checks can take place. Currently, checks on exports are not
as strict as those conducted on Palestinian imports. A major restriction
currently imposed on Palestinian goods is that they cannot be transported on
passenger flights.
Export Clearing
Once the goods are
loaded on board, the clearing agent prepares the Export Declaration Form. This
is a document stating that the goods have been exported. The Export Declaration
Form is submitted to the Customs Authorities, when presenting the documents for
shipment.
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Content of
the Export Declaration Form
It
describes the products, states their value and weight, and specifies
the country of destination, port of embarkation and arrival, the name
of the exporter and the carrier.
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Fees & Taxes
There are no taxes,
tariffs or duties to pay on exports. The importer will pay the required duties
and taxes at the port of destination. Port fees to be paid are 1.3% of the value
of the shipment.
Transportation
The exporter should
contract a trucking agency to transport the goods from the warehouse to the port
of embarkation.
Goods can be
transported to the port area in containers or in other transport cases. In the
latter case, the clearing agent, the trucking agency or the forwarding company
could load the container. If the goods are transported in containers from the
warehouse, then the exporter must arrange with the shipping or forwarding
company for the container to be brought and filled at the factory. Generally,
the exporter fills the container at the factory when goods are not packed in
carton boxes.
Procedure from
Gaza to the Port of Embarkation
In case the
exporting process starts from the Gaza Strip, goods must be transported to a
crossing point with Israel, using Palestinian trucks. From the crossing points,
the exporter has two options, either (i) using Israeli licensed trucks to reach
the port area, or (ii) using Palestinian licensed trucks.
Using Israeli
Licensed Trucks
When using an
Israeli truck, goods must be moved from the Palestinian truck following a
back-to-back or an unloading-reloading procedure. In the back-to-back process
goods will be moved from the Palestinian truck to an Israeli truck. In the
unloading-reloading procedure, goods will be unloaded from Palestinian trucks on
the Israeli inspection area (i.e. Karni) and then reloaded on an Israeli truck.
During both procedures, Israeli security and checking of documents will take
place at the crossing point. Currently, the crossing charges are about 250 NIS
per vehicle.
Manufactured goods
coming from the Gaza Industrial Estate (GIE) do not have to go through the
back-to-back procedure.
Using Palestinian
Licensed Trucks
When using a
Palestinian truck, a permit, for the driver and the vehicle, should be obtained
from the Israeli Authorities. A “convoy” of Palestinian trucks must be
escorted by Israeli security from the Gaza crossing point to the port of
departure. Arrangements for the “convoy” are done through the Palestinian
Ministry of Civil Affairs, and the procedure takes between five to ten days.
Trucks going on a “convoy” are normally checked by the Israeli security for
few hours before leaving the crossing point.
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Exporting
and Re-exporting
Export and Return License
In the case of exporting goods,
which may be re-imported to the country of origin, there is a special license to
be obtained from the Ministry of Economy and Trade. This license is made
available for traders participating in fairs abroad and for exporters of
machines to be repaired abroad. It is needed in order to obtain exemption from
customs duty on the goods returned to the WBGS. When the goods are exported, it
must be clearly stated in the Customs Declaration Form that re-import is
anticipated on some or all of the shipment. Another requirement for duty
exemption in this case is that the packing list be accurate and detailed.
In the case of foreign trade
fairs, tariffs and duties will be paid only on the items sold abroad, based
on counting of items returned to the WBGS as compared to the packing list. In
case a machinery is being repaired abroad, only VAT will be paid
on the value of the repair, with this value proved by an invoice.
Drawback System
The exporter can apply at the
Ministry of Economy and Trade for a license that allows reimbursement of duties
for imports intended for processing and re-export. The request for this license
must articulate the reasons for re-exporting and contain the following:
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Name and address of the
exporter;
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Type of products, quantity
and the acquisition year;
-
Origin of the inputs and
source of acquisition proved by the purchasing invoice.
Re-exporting License
The re-exporting license is used
when exporting defects previously imported, such as motor vehicles, computers
and electronic parts and so on.
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