The latest customs press release
says that they are not actually taking away rights on cars for olim. The
news is that small cars will no longer have lower taxes. Cars
of all sizes will be taxed at the same rate.
For cars 1750
cc's and above, taxes will remain 77%. That is 50% plus
vat-- on the tax and on the car. The formula is (car value x 50% +
car value)x .165% + car value x 50%, or 1-(1.165*1.5).
The
change is that taxes for olim on small cars (under 1750 cc) will go up from the
current level of 47% to the big car level of 77%. Taken in a positive light,
this encourages people to bring larger, safer cars.
The date
of this change is March 1st, 2004 unless you came into the country as
an Oleh before March 1st, in which case you have until the end of June.
This same timing applies to the end of oleh rights for purchasing *approved* locally
made furniture without paying the 16.5% vat.
It also
applies to the end of returning resident rights for purchasing local furniture, imported
cars, and appliances.
As a
new immigrant, you may bring three shipments of appliances and household goods
into Israel TAX-FREE from ANY COUNTRY--- as of Jan 1, 2005, it no longer needs
to be your last country of residence. Items brought with you on the plane are
not considered as one of your shipments if you are receiving your teudat oleh
(immigration certificate) at the airport.
Self-employed
professionals or business people owning at least half of their operation are entitled
to as much as $36,000 worth of professional equipment from any country tax-free,
with a bank guarantee for the taxes. This will not be counted as one of the three
personal shipments described above, but will require a bank guarantee. A
bank guarantee is a time-limited letter from your bank to Customs guaranteeing
payment if the goods are not installed in your home. Send it by registered
mail to the Customs office with a copy of the guarantee. Call to make sure Customs
notifies the bank to cancel the bank guarantee. These days it’s hardly
worthwhile to deal with tax-free business shipments, because taxes for industrial
and office equipment tend to be limited to Vat, which businesses receive back
from the government.
Returning
residents are defined as Israelis who spent 72 consecutive months living out of
the country and less than four months total in Israel each year. A new immigrant
who spends six years in Israel after receiving his last tax-free shipment and
leaves for two years can become a returning resident. Then a returning
resident can bring two shipments from any country. They must arrive in Israel
within nine months of his return. He can also purchase a tax-free Israeli-made
refrigerator.
Every person over 2, regardless
of status, is entitled to bring in up to $200 worth of gifts each time you re-enter
the country. If you are stopped by Customs, don't make the mistake of declaring
that you are importing something as a new immigrant that you could have brought
in as a gift, since this will be counted as one of your three shipments.
Your
goods must arrive in Israel within three years of your date of aliyah, i.e. the
day you changed your status to oleh or temporary resident. This rule, however,
does not apply to returning minors. If you served in the army (sadir) for at least
six months, that time period will not be included in your three years of tax-free
rights. Rights will also be frozen if you spend at least six months and a day
uninterrupted out of the country following your change of status. If you enroll
full time in a post-secondary school, college or yeshiva recognized by the Student
Authority within 1 1/2 years of your arrival, your rights may be extended to one
year after you finish your studies. The limit is 5 years of study. If you come
as a tourist, your three years of rights usually begin when you change your status,
unless you were a working tourist. Working tourists should check with the Customs
Authority for clarification. (This applies to shipping rights only.
Check with the relevant authorities regarding other oleh rights, such as sal
klita.)
Goods
must arrive in Israel on or before the third anniversary of your change in status.
They do not have to be cleared through Customs by that date, yet they must arrive
in port. Customs allows an extension for one reason only: a shipping strike. Customs
will usually grant permission to buy Israeli-made major appliances tax-free if
you purchased or imported no major appliances during the first three years.
If
your goods arrive late, you will be required to pay FULL TAXES. Though much has
been made of the recent fulfillment of the Free Trade Agreement with the United
States, but there are no dramatic changes in tax levels, with the exception of
refrigerators. No customs tax is charged on American-made goods shipped from America
or European goods shipped from Europe providing they are accompanied by the proper
certificate.
The remaining taxes are, however, substantial.
Tax
rates Without Certificate OF ORIGIN
With
cetificate of origin
Refrigerator over 18 cu. ft.
38%
24%
TV/VCR/Stereo
35%
38%
Oven/washer/dryer
38%
24%
Dishwasher
38%
24%
Furniture
*
31%
17%
Automobile
**
128%
128%
Japanese cars are 144%
*
The tax on used furniture: NIS 2 per Kg or 20% x value of shipment (+ ocean
freight)-- the higher + 17% VAT. Inheritance shipments get a break of about
20% off that. If you're wondering how used
furniture are valued, it's at $2/kilo.
**See
section entitled “The Latest News” on page 2 for details on car taxes.
Taxes on appliances are levied on the sum of the price at origin, shipping
and marine insurance.
When Oleh
Marries Olah
When an oleh marries
an olah who has used tax-free privileges within the last six years, their shipments
are added together, with the permitted total remaining at three. The oleh can
only bring in goods that his spouse did not. It is no longer valid that if your
spouse used her rights over six years ago and spent the next six years in Israel,
you have a complete set of rights. There still may be some leniency in this matter
check with us first. If a shipment is arriving near your marriage date and you
have a problem with overlapping purchases or too many shipments, your shipment
must be cleared through Customs before you are married. A returning resident who
marries an olah forms an oleh family with the full tax and customs rights.
Olim are entitled
to bring tax-free one of each of the following for home use: refrigerator, oven
(double-decker or built-in with stove top), television, washing machine, stereo
- tuner, amplifier, CD or turntable, cassette deck, and two pair of speakers or
a home theatre speaker set, microwave, and dishwasher. Olim can bring in
a dryer, freezer, and VCR or DVD. Olim can also purchase Israeli-made goods
in these categories tax free, when available.
Olim are
entitled to bring: cooking utensils, pots, pans, flatware, china, dishes (everyday,
fancy, Pesach each for meat, dairy and parve!), one musical instrument (no piano
or organ for returnees), bedding, clothing, up to 50 recorded audio cassettes
(20 videotapes), up to 200 records, jewelry and personal effects including as
much furniture as is appropriate to their living space. Olim can also bring 30
meters of carpet tax-free if they are renting; if they own the apartment, they
may bring up to 70% of the total area in wall-to-wall or 25% in area carpets.
Note that the Customs Guide says 25% overall. Much depends on the
port and customs agent.
Olim have privileges
on one of each of the following: computer (including monitor and printer), food
processor, radio, vacuum cleaner, sewing machine, iron, bicycle, hair dryer, slide
projector, knitting machine, coffee grinder, alarm clock-radio, vaporizer. Olim
have rights on a toaster, toaster oven, mixer, citrus juicer, vegetable juicer,
crepe maker, ice-cream maker, portable word processor, electric kettle, hand power
tools, meat grinder, hot water urn, coffee maker, deep fryer, popcorn maker, espresso
machine, rug shampooer, floor polisher, can opener, electric knife, answering
machine, electric skillet, electric blanket, garbage disposal, hot water dispenser.
Olim have rights to two or three of each of the following: fans, heaters,
telephones.
Faxes are taxed at ~41%. Any fax
that has the approval of a Western country standards institute, is legal to import.
Simple plain paper faxes are available in Israel for $200.
Most people send their lifts in “consolidation.”
Your Shipper packs a 40-foot container—about 2,000 cubic
feet NET—with the belongings of 2-10 people. Each person’s goods are
crated in wooden boxes, or bound on wooden pallets, though major appliances
are often shipped loose. Each individual shipper has his own documentation,
and there is a group document as well. When the container arrives at the
port, it takes from 5-8 days for the container to be unloaded and documents to
be prepared for each of the consignees.
Inside
measurements of a standard crate are ~ 88” wide, ~84” height,
depth variable. Externally in meters 2.2m x 2.2m x 1.2m.
The alternative
to shipping in consolidation is shipping your own container. Your shipper
hires a container, either a 20 foot long one, or a 40, or an extra high
40, then fills this container with your goods and brings it to the ship.
One
advantage of shipping in your own container is that the door of the container
is closed with a visibly sealed lock. It is easier for the Customs Clearer
to see if the seal is intact and to report any irregularity before passing through
Customs. If there is no customs inspection, the seal should not be broken
until the container arrives at your home. Containers can fit unusually large
items—such as a car—or unusually shaped items that would otherwise
require the construction of a specially shaped crate.
Containers
must be cleared and delivered within four days of arrival in Israel. After
that time, container rental and port storage fees add up at a rate of between
$25-60/day for rental of the container and port fees.
If
you have a lot of space around your house in Israel, you might consider purchasing
a shipping container. This eliminates about half of the costs of leaving
a container at the port and is only possible by pre-arrangement with the
shipping company, forwarder. Costs of purchase are approximately $1,600
for a used 40-foot container and $900 for a used 20-foot container. Once
you are finished using them, you can resell them in Israel for about ½
what you paid. Remember to have the code numbers on the container removed
before you ship.
1.
Where you ship from. The further you ship from a major USA
-to-ISRAEL port (New York, Baltimore, Los Angeles), the greater the merits of
a container, because consolidations are harder to come by and more expensive.
2. How much of the container you fill.
The fuller it is, the better the value.
3.
How much packing there is to be done. The most expensive part of shipping
is not the freight…it’s the packing and loading.
4.
The steamship company. Zim tends to be the priciest.
Other companies with less direct routes can be less expensive.
Whichever
way you ship, make sure that it is clear to your shipper--and to yourself—who
has authority to say that the shipment is complete and ready to ship.
Not doing so could result in a split shipment—the loss of one of your three
tax-free shipments, double port fees, double documentation fees, double clearing
and delivery fees.
How long do you
have to notify your shipper that you want goods picked up?
In the winter, just a few days is enough.
During the spring and summer, three weeks may not be. Appliances, unless
you’re informed otherwise, are generally deliverable to the forwarder within
one week. Dacor and Viking can take 2-5 weeks to get to the forwarder.
And specific models of even the most popular and reasonably priced brands and
models can suddenly and inexplicably become unavailable. So order early.
If the appliances arrive with 10 days to
spare before a boat sails, chances are the shipper will find room and time to
pack them and get them aboard. On the other hand, the consolidator may not
have room in one of his containers for a shipment your size, or he may not have
enough consolidations to make it worthwhile to ship a container yet. That
can be a particular problem for shipments from Chicago—especially in winter.
Most steamship companies have ships leaving every two weeks for Israel.
Direct
shipments take 15-22 days from the North-East Coast, 30 days from Miami, 25 days
from Houston, 30-40 days from the West.
If
you are shipping an exclusive container (FCL), getting it onto a boat and
clearing and delivering on the Israel side usually each take a week or less.
If you are shipping less than a full container (LCL), figure two weeks on
each side.
The sochnut/Jewish
Agency warehouse is no longer available for storage.
Less than
a full container
If you are an oleh/ah
shipping less than a full container (skids or lift vans), you are entitled to
one month free at the port in Israel. After that Olim have a
50% discount on the usual $1+vat/2200 lbs (or part thereof) rate at the port.
Marine insurance is indefinitely extendible there. Except where goods are
crated or in Haifa, it is sometimes possible to access and take portions
of the shipment.
Full container
Full containers must be cleared
and delivered within 4 days to avoid high storage and rental fees, (~$20-30/day
for 20 footer, double for 40 footer). At Ashdod you can have your container
emptied out at port ($0.24/cubic foot +$50+ vat on both), which will allow you
to take advantage of the cheaper “less than full container” storage
rates and avoid container rental fees.
Private storage.
Your shipper has available both
commercial and self-storage. Only in commercial warehouses is the marine
policy extendible. Rates range from $7-12/cubic meter depending on the type
of storage and volume.
Value-added-tax (16.5%) must be paid on all services
rendered in Israel. Expect to pay VAT on customs clearing, delivery, installation,
service contract, and the commissions of a personal import agent. When the
Customs booklets state that appliances for new immigrants are exempt from VAT,
this refers to the cost of buying, insuring, and shipping foreign appliances and
to the purchase of Israeli appliances.
A numbered packing list‑‑including
description of apparent defects in your goods‑‑must be made up by
the packer/shipper and presented to customs. It is not enough to make your
own list.
For goods you
pack yourself (PBO=Packed By Owner) you must make another detailed, numbered list.
We recommend using room codes and numbers, such as LR1 for the first living room
box. Use both the shippers and your own lists to check inventory upon delivery
and to prove to the insurance company that everything was shipped.
With a large shipment it is nearly impossible to take an inventory as the goods
come off the truck.
Shipping
Insurance
1.
Valued inventory
Before goods are picked
up, your insurer needs a detailed list of all your goods with USA and Israel replacement
values. Israel values are usually 3.5 x USA value for electrical goods,
2.5 times for household goods, and 1.5 times for collectibles. If you insure
for less than full value you will be underpaid for any claim, proportionally.
2.
Packing and storage lists
Make separate
lists if part of your goods are to be stored and the other part delivered. To
assure insurance coverage of surface damage and denting of used items take pictures
and make sure the packer records any scratches or other damage on the packing
list.
3.
Boxes you pack yourself
These are
listed by the shipper as Packed By Owner
- PBO. They are covered for loss and theft only and only
if you submit to the insurer a detailed, complete list of contents before pickup.
PBO's are not covered for breakage, chipping, scratching, denting, staining, tearing,
or surface marring. If goods were recently packed by professionals
then present to your shipper, before pickup, the invoice of packing. Otherwise
be sure to UNSEAL the boxes and make sure the packers inspect and repack as necessary.
There could be extra charges associated with unpacking in order to repack.
4.
Valuables
For silver, gold, antique, rugs,
furs or art objects insured for more than $500 per item, the Importer must submit
to YOUR SHIPPER a third party evaluation: an assessment, invoice, or home
insurance before pickup. IT IS VERY IMPORTANT THAT THIS BE DONE IN ADVANCE, BOTH
TO FULFILL THE CONDITIONS OF YOUR MARINE INSURANCE POLICY AND SO WE CAN BE AWARE
OF ANY SPECIAL PACKING NEEDS. It is very worthwhile to take pictures and
verbally describe the condition of furniture and items of special value.
5.
Extensions
You are covered 60 days at the
shipper’s warehouse in North America and 60 days in Israel. To extend in
either case, the Importer must give notice and pay for the extension before the
expiry date. The cost of extension is $2 per $1,000 per month. Neither
the insurance company nor YOUR SHIPPER has responsibility to extend without
your timely request and payment.
6.
Signing the release
If the container seal
is broken or any box or crate are open when you first see them, or if there is
any sign of damage, write it on the delivery receipt. If the trucker does not
have a receipt, make one up and keep a copy for yourself. Be as detailed
as possible. In any case, write, "Contents uninspected."
It
is technically impossible to claim loss if the shipment arrives perfectly intact
and you make no mention of shortage on the delivery receipt. You must check the
pieces arriving against the packing list and record the results of your check
on the receipt.
7.
The claims process
If goods are damaged
or missing, save the evidence ,the packing and the broken items. Officially
you have 3 days to register a claim for loss and 45 days for damage. Then
you have another 45 days to submit all the supporting documents.
To
begin the claims process, call and follow up with a letter to the insurance company,
the shippers, and the truckers. Your original certificate of insurance includes
a claim form which you must fill out in detail and return with the original first
page of the policy, customs form, subrogation form, packing list, and copies of
the letters to the carriers.
There will be no surveyor
sent (usually) for damages less than $5,000, but you do need to supply local repair/replacement
estimates from reliable local suppliers. If damage does exceed $5,000, the
insurance company will call the surveyor.
Damaged
goods—even broken glass—and packing materials which contained damaged
or missing goods must be kept until the surveyor comes.
If a relative or friend
of yours gives instructions to our shipper to go ahead and ship, YOUR SHIPPER
cannot be responsible to verify that everything that was supposed to be is actually
in the shipment.
Accepting
Delivery
1.
Any problems
Call YOUR SHIPPER’S AGENT.
They are fully empowered to handle all delivery problems. Have more
than one person at home‑‑one to watch the truckers unload and mark
off the packages from the insurance/packing list as they come off the truck, the
other to direct the porters where to put things. (It is nearly impossible to do
this.) As soon as the truck arrives, send the watcher down. The truckers
will remove gross debris; he will not move the crate wood for you.
2.
Access, assembly, taking things out of boxes
Truckers
will not put furniture together, unless it is very simple, except by special agreement.
Have the truckers remove major appliances from their boxes and put them where
you will want them installed; otherwise you could be charged for this by the serviceman.
Do not let a refrigerator be laid on its back for more than a few seconds.
If it cannot get through a door, the truckers can (for $) take the fridge door
or the door frame off.
3.
Delivery time
Except for full containers,
two weeks is usual for clearing and delivery. Let your clearing agent know
if you have a preferred time and date for delivery. Within one or two days
of the trucking date, they will call again to fix the date and time of day.
3 hours is a common margin of error.
4.
Tipping
Appropriate tips:
50-90 NS per person‑‑the driver too‑‑for small shipments
(up to 200 cubic feet) , 90-120 NS for medium (up to 200-700 cut.), $100-150 overall
for 20’ container, $150-200 for 40 foot container.
Additional
delivery charges
More than 28 stairs
inside or outside or up or down, hoisting, Old City (or anywhere out of
Jerusalem proper, greater Tel Aviv, or Haifa and its suburbs), where the truck
cannot park closer than 25 meters to the door of the building, or where
goods or doorframes have to be disassembled.
Wood
crates and pallets
These belong to
you. Unless you make a point of it, the trucker may take them away without
asking you.
As
soon as possible after entering the country, go to the Ministry of the Interior
to get your teudat zahoot or at least to register as an Israeli. Though
the word is that they may not have your information for a couple of days after
you’ve arrived, we know people who’ve gone the day after arriving
and received the receipt. After getting the Teudat Zahoot or the receipt,
go to your local customs office. Bring Teudat Zahoot, passports, teudat
oleh, and housing contract. Get them inscribed in the customs computer.
Then bring or fax your shipper’s agent photocopies of the picture pages
of passports and teudat oleh, the visa page of the passports, and your housing
contract. Also fax back signed power of attorney and lists for customs.
Photocopy of Immigrant
Visa. Extensions are almost always written on a separate piece of
paper. Make sure you have a customs extension, not only a Misrad Klita extension.
Teudat Tipul is needed, if you lost your Teudat Oleh.
*
Passports
Original passports of both
spouses – US and Israeli. Be sure “ashrat oleh” is stamped
inside US passports.
*
List of contents
A detailed list of contents
including USA values and whether new or used. For new electrical items ,
supply invoices.
* Housing
Contract
Rental or purchase agreement or
a statement from your Merkaz Klita. The meterage determines the amount of
carpeting and household goods you can import. If you have a room‑mate,
bring a separate contract or proof that the apartment does not come with any of
the major appliances you are importing.
*
Status of Spouse
If your
spouse is Israeli or once had tax exempt status, you need a photocopy of page
one of their Teudat Zehut and a letter from them stating when or if they used
tax‑free privileges. If your spouse is out of the
country, you may need a notarized statement of their status from the consulate
or a lawyer of their status. If divorced or widowed after you acquired tax-free
status, a copy of the appropriate documentation.
Returning
resident
You must have your passport stamped
by your local Meches office before attempting to clear your shipment. We
need a photocopy of the first page including the picture and any page where the
stamp of customs appears. If you are married, then a copy of the page
signed by customs saying, “See the passport of the spouse.”
For a spot-check or when
documents are not in order, customs inspects all or part of a shipment.
Air shipments are nearly always inspected. At the seaports, the odds are
1 in 15. Usually new immigrants’ shipments are inspected superficially—a
few items are unpacked, checked against your lists, and repacked. Trust our Customs
clearer to represent you. He will charge $.35 per cubic foot for an all-out
inspection, and $125- $150 for a superficial one, depending on the size of the
shipment. A customs clearer experienced in new immigrant rights is
worth every penny. He can anticipate problems before presenting your file to Customs,
and her knowledge and finesse can work wonders.
Disclaimer:
The above article is for informational purposes only. The relationship between
the oleh and shipper is defined by the contract signed between them.
With
thanks to Neil Kummer at Kef International
Aliya Shipping and Appliances (1979).
