Canada-Israel Free Trade Agreement

Part 2 - Trade in Goods

Chapter Two - Tariff Elimination and Related Matters

Tariff Elimination

Article 2.1: Tariff Elimination

1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any customs duty, or any charge of equivalent effect on an originating good to which paragraph 2 applies.

2. Except as otherwise provided in this Agreement, each Party shall,

  • (a) by January 1, 1997, eliminate its customs duties on originating goods listed in Chapters 25 to 97 of the Harmonized System with the exception of the tariff items listed in Annex 2.1.1 and
  • (b) in the case of originating goods listed in Chapters 1 to 24 of the Harmonized System eliminate or reduce duties on goods in accordance with Annex 2.1.2.

Related Matters

Article 2.2: Customs Duties: Repair and Alteration

1. Neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.

2. Neither Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.

3. The Parties shall comply with the requirements set out in Annex 2.2.3, as amended by the Parties from time to time, to verify that the repair or alteration has been performed in the territory of one of the Parties.

Article 2.3: Definitions

For purposes of this Chapter:

Customs duty includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

  • (a) charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994 as specified in, or any equivalent provision of a successor agreement to which both Parties are party, in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
  • (b) antidumping or countervailing duty that is applied in accordance with the WTO Agreement, including the GATT 1994 pursuant to a Party's domestic law; and
  • (c) fee or other charge in connection with importation commensurate with the cost of services rendered.

existing customs duty means the rate of duty applicable to imports from the other Party on January 1, 1996.

repair or alteration does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good.

Annex 2.1.1

1. Each Party agrees to phase out by July 1, 1999, the Most Favoured Nation rate of duty in effect on January 1, 1996 on the goods listed below, by the following percentages of those rates:

  • a) January 1, 1997 10%
  • b) July 1, 1997 30%
  • c) July 1, 1998 30%
  • d) July 1, 1999 30%
Canada

Women's or girls' swimwear in tariff items:

  • 6112.41.00
  • 6112.49.00
  • 6211.12.00
Israel

Woven cotton fabric in tariff items:

  • 5209.32.00
  • 5209.39.00
  • 5209.42.00

2. Article 2.1(2) does not apply to goods provided for in headings 35.01 and 35.02.

Table 1: Annex 2.1.2 A, Canada

HS No.Description of GoodsDutySpecific Provisions
06.01 to 06.04Live plants, bulbs, cut flowers, foliageFreeExcept for roses set out in 0603.10.20
0603.10.20Roses, freshFreeTariff Quota of not less than 90,000 dozen; any roses over quota are to be subject to the MFN rate of duty
0701.10Seed potatoesFree
0709.90Other fresh vegetablesFreeExcept for goods set out in 0709.90.51 and 0709.90.52 (sweet corn-on-cob), which are to be subject to the GPT or MFN rate of duty, whichever applies
07.12Dried vegetablesFreeExcept for garlic
ex 0712.90.90, which is to be subject to the MFN rate of duty
0713.10Peas, driedFree
0713.33Kidney beans, dried, including white pea beansFree
0806.10Grapes, freshFree
0810.20Raspberries, blackberries, mulberries and loganberries, freshFree
0810.30Black, white or red currants and gooseberries, freshFree
0810.40Cranberries, bilberries and other fruits of the genus Vaccinium, freshFree
09.04Pepper of the genus Piper, dried or crushed or ground fruits of the genus Capsicum or the genus PimentaFree
09.10Ginger and other spicesFree
1001.10.10Durum wheat, within access commitmentFree
1001.90.10Other wheat, within access commitmentFree
1003.00.11Barley, for malting, within access commitmentFree
1003.00.91Other barley, within access commitmentFree
1005.90.10Yellow dent corn (maize)Free
1101.00.10Wheat or meslin flour, within access commitmentFree
11.06Flour, meal and powder of leguminous vegetablesFree
1107.10.11Malt, not roasted, whole, within access commitmentFree
1107.10.91Malt, not roasted, other, within access commitmentFree
1107.20.11Malt, roasted, whole, within access commitmentFree
1107.20.91Malt, roasted, other, within access commitmentFree
1212.30Apricot, peach or plum stones and kernelsFree
1214.10Lucerne (alfalfa) meal and pelletsFree
13.02Vegetable saps and extracts; pectic substances, mucilages and thickenersFree
1601.00.31Sausages and similar products of turkey, within access commitmentFree
1601.00.99Beef sausages and similar productsFree
1602.31.92Specially defined mixtures of turkey10%
1602.50.99Other prepared meat of bovine animalsFree
1604.11Prepared salmonFree
ex 1604.20.90Gefilte fishFree
17.01 to 17.04Sugars and sugar confectioneryFreeExcept for glucose and glucose syrup set out in 1702.30, which are to be subject to the MFN rate of duty
18.01 to 18.06Cocoa and cocoa preparationsFreeExcept for 1806.20.32 and 1806.90.12 (chocolate ice cream mix or ice milk mix), over access commitment in each case, which are to be subject to the MFN rate of duty
1901.10Baby food (retail)Free
1902.11.11Uncooked pasta, containing eggs, within access commitment4%
1902.11.90Uncooked pasta, containing eggs, with less than 25% wheat content4%
1902.19.91Uncooked pasta, other, within access commitment4%
1902.19.99Uncooked pasta, other, with less than 25% wheat content4%
1902.40.10Couscous, in packages not exceeding 11.34 kg.5%
1902.40.20Couscous, bulk or packages greater than 11.34 kg.3%
20.01Vegetables, fruits, nuts, preserved by vinegarFree
2005.70.90Olives, prepared or preserved, other than ripe olives in brine6%Duty to be reduced to 5% on January 1, 1998
2005.90.99Other vegetables, prepared or preservedFreeExcept for carrots which are to be subject to the MFN rate of duty
20.06Fruit, vegetables, nuts preserved by sugarFree
20.07Jams, fruit jellies and marmaladesFree
2008.11.10Peanut butterFree
2008.11.20Peanuts, blanchedFree
2008.11.90Peanuts, otherFree
2008.19Other nuts, including mixturesFree
ex 2008.40Pear chipsFree
ex 2008.99Apple chipsFree
2009.11Orange juice, frozenFree
2009.19Orange juice, not frozenFree
2009.20Grapefruit juiceFree
2009.80.11Passion fruit juiceFree
2009.80.12Prune juiceFree
2009.80.19Juice of other single fruitFree
2009.90.20Orange and grapefruit juice mixture, not dehydratedFree
21.01Extracts, essences and concentrates of coffee, tea or maté, chicory and coffee substitutesFree
2103.10Soya sauceFree
2103.30Mustard flour and meal and prepared mustardFree
2103.90Other sauces and preparationsFree
21.04Soups and broths and preparations therefor; homogenized composite food preparations and substancesFree
2106.10Protein concentratesFree
22.03BeerFree
ex 22.04Kosher wineFree
ex 22.05Kosher vermouthFree
22.08SpiritsFreeExcept for 2208.30.00 (whiskies) which is to be subject to the GPT or MFN rate of duty, whichever applies

Table 2: Annex 2.1.2B Israel

HS No.Description of GoodsDutySpecific Provisions
0105.12.90Live turkey chicks, parent and grandparent stock0%No increase in duty without prior consultation
02.02Bovine meat, frozen0%A Tariff Quota of not less than 2,000 tonnes
0206.20Edible offal of bovine animals, frozen
0303.10Pacific salmon, frozen0%
0303.22Atlantic salmon, frozen0%
0304.20Fish fillets frozen0%Except for trout set out in ex 0304.20
0305.41Pacific salmon, smoked0%
0305.42Herrings, smoked0%
0511.10Bovine semen0%No increase in duty without prior consultation
06.01 to 06.04Live plants, bulbs, cut flowers, foliage0%Except for roses set out in 0603.10
0603.10Roses, fresh0%A Tariff Quota of not less than 10 tonnes
0701.10Seed potatoes0%A Tariff Quota of not less than 1,000 tonnes
07.12Dried vegetables0%Except for garlic set out in 0712.90.10
0713.10Peas, dried0%A Tariff Quota of not less than 10,000 tonnes
0713.33Kidney beans, dried, including white pea beans
0713.40Lentils, dried
0810.20Raspberries, blackberries, mulberries and loganberries, fresh0%A Tariff Quota of not less than 150 tonnes
0810.30Black, white or red currants and gooseberries, fresh
0810.40Cranberries, bilberries and other fruits of the genus Vaccinium, fresh
0811.20Raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries, frozen14%
ex 0811.90Blueberries, frozen14%
1001.10Durum wheat0%A Tariff Quota of not less than 150,000 tonnes. Non-feed wheat of 1001.90 is subject to local purchase requirements
1001.90Other wheat and meslin
10.02Rye0%A Tariff Quota of not less than 200,000 tonnes
10.03Barley
10.04Oats
1005.10.90
1005.90.00
Maize (corn, except popping corn)
1008.30Canary seed0%A Tariff Quota of not less than 100 tonnes
11.01Wheat or meslin flour0%A Tariff Quota of not less than 10,000 tonnes
1105.10Potato flour, meal and powder8%
1105.20Potato flakes, granules and pellets8%
1106.10
1106.20
Flour, meal and powder of leguminous vegetables0%
11.07Malt, whether or not roasted0%A Tariff Quota of not less than 9,000 tonnes
12.05Rape (canola) or colza seeds0%
1207.50Mustard seeds0%
1212.30Apricot, peach or plum stones and kernels0%
1214.10Lucerne (alfalfa) meal and pellets0%
1301.10Lac0%
13.02Vegetable saps and extracts; pectic substances, mucilages and thickeners0%
15.14Rape (canola), colza or mustard oil13%
1601.00.90Beef sausages and similar products0%
ex
1602.50.90
Other prepared meat of bovine animals, excluding containing over 20 percent poultry meat0%
1604.11Prepared salmon0%
17.01 to 17.04Sugars and sugar confectionery0%Except for glucose and glucose syrup set out in 1702.30, which are to be subject to the MFN rate of duty
18.01 to 18.06Cocoa and cocoa preparations0%
1901.10Baby food (retail)0%
1902.11Uncooked pasta, containing eggs8¢US/kg
1902.19Uncooked pasta, other8¢US/kg
20.01Vegetables, fruits, nuts preserved by vinegar0%
2005.90Other vegetables, prepared or preserved0%Except for carrots set out in 2005.90.30, which are to be subject to the MFN rate of duty
20.06Fruit, vegetables, nuts preserved by sugar0%
20.07Jams, fruit jellies and marmalades0%
2008.11.10Ground nuts - food preparation (including peanut butter)0%
2008.99Fruits, other, prepared12%
2009.80Juice of other single fruit0%
21.01Extracts, essences and concentrates of coffee, tea or maté, chicory and coffee substitutes0%
2103.10Soya sauce0%
2103.30Mustard flour and meal and prepared mustard0%
2103.90Other sauces and preparations0%
21.04Soups and broths and preparations therefor; homogenized composite food preparations and substances0%
2106.10Protein concentrates0%
22.03Beer0%
22.08Spirits0%Except for 2208.20.00 (Brandy) which is to be subject to the MFN rate of duty
2309.10.10Animal feeds12%
2309.10.208%
2309.10.902%
2309.90.1012%
2309.90.208%
2309.90.3012%
2309.90.902%
General Notes to Annexes 2.1.2A and 2.1.2B

1. The "HS No." column sets out those tariff items, subheadings, headings or chapters, as appropriate, with respect to which duty is being reduced or removed.

2. The goods described in the column entitled "Description of Goods" are representative only, except where the respective HS No. is prefaced by "ex", wherein the description sets out all those goods subject to the level of duty in the Duty column.

3. The "Duty" column sets out the rate of duty that shall be effective by January 1, 1997, applicable to the goods classified within the appropriate HS No., subject to the specific provisions.

4. The "Specific Provisions" column sets out any qualifications to the "Description of Goods" and the rate of duty for that HS No.

Annex 2.2.3

Requirements Concerning Verification of Repairs and Alterations

Upon reimportation into the territory of a Party of a good that has been exported to the territory of the other Party for repair or alteration, an importer shall submit:

  • (a) an invoice or a written statement from the person who performed the repair or alteration, setting out a detailed description of and the value of the repair or alteration; and
  • (b) proof of exportation of the good to the territory of the other Party.

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