UNDERSTANDING IMPORT TAX AND DUTIES
IMPACT OF IMPORT TAXES ON OVERALL SHIPPING COSTS
Import taxes and duties significantly influence the final cost of goods shipped from China to Israel. Key components include:
- Value Added Tax (VAT): VAT in Israel is currently at 17%. It is applied to the CIF value (Cost, Insurance, and Freight) of the goods imported.
- Customs Duties: These vary based on the product’s classification under the Harmonized System (HS) codes. Rates can range from 0% for certain technology products to 30% for luxury items.
| Product Category | Customs Duty (%) | VAT (%) | Example Products |
|---|---|---|---|
| Electronics | 0 – 5 | 17 | Mobile phones, computers |
| Textiles | 12 | 17 | Clothing, fabrics |
| Machinery | 0 – 8 | 17 | Industrial machines, appliances |
| Vehicles | 7 – 30 | 17 | Cars, motorcycles |
| Food and Beverages | 20 – 120 | 17 | Alcohol, dairy products |
| Luxury Goods | 15 – 30 | 17 | Watches, jewelry |
For practical illustration, if you import electronic goods worth $10,000, expecting customs duties of 5% and applying the current VAT rate, the additional cost would be $1,200 solely in taxes and duties. Businesses must use accurate classification and valuation to prevent underpayment or overpayment of these fees.