Client Update | Importer’s Obligation to Complete an Electronic Affidavit for Each Supplier: Significance and Implications
26 November 2018
As of January 2018, the Israeli Tax Authority (hereinafter: “the ITA”) has replaced the Custom Administration’s foreign trade system with a new system called “Global Gate”. From November 1, 2018, importers are now required to complete an electronic affidavit for each supplier with respect to their relationship.
It should be emphasised that completion of the importer’s affidavit requires careful consideration and an examination of the various agreements and contracts with global manufacturers and suppliers. In this regard, an incorrect affidavit may be considered a false customs declaration, and may even lead to financial penalties, commencing during 2019.
We are setting out below, a short review of the questions which arise from the affidavit, as well as the main issues which are relevant to determining the transaction value, particularly in view of the potential implications relating to subsequent import taxes (VAT, customs and purchase tax, if imposed).
In addition, we would like to remind you of the potential status of being an “Authorised Economic Operator” (hereinafter: “AEO”), or “Authorised Importer”, which afford a more simplified customs procedures, including the granting of an exemption from the need to file an importer’s affidavit.
The following is the full update, which contains a brief review of the importer’s affidavit and its implications, as well as recommendations regarding the completion of the affidavit.
Click here for the full update.Key Contact: Iris Weinberger | Partner Head of Indirect Taxes, Customs & International Trade Department