“What is Good for Europe is Good for Israel” Reform
15 August 2024
Dear Clients and Colleagues,
We are pleased to inform you that a comprehensive and significant reform in the field of imports, titled “What is Good for Europe is Good for Israel,” has recently been approved. This reform impacts four sectors: standards, food, energy efficiency in electrical products, and cosmetics.
The aim of the reform is to ease import processes into Israel by removing some import barriers, opening the Israeli market to competition, and reducing product prices. The principle is that any product meeting European regulations and/or sold in Europe can be sold in Israel without further testing. Additionally, enforcement by regulators in the markets will be enhanced.
Please see below the key highlights of the reform across different sectors:
- Standards Reform – The reform in the standards sector is expected to come into force on January 1, 2025, and it continues the changes introduced by the “Do Not Stop at the Port” Reform (for our customers update detailing this reform, click here). The main aspects if the Standards Reform are as follows:
- The European Route – The main part of the reform is the introduction of a new optional route, the European Route. This route permits the import, production, and marketing of goods that comply with European regulatory or directive requirements without the need to prove compliance with Israeli standards. Some European regulations will come into effect on January 1, 2025, while others will be implemented at later dates, as detailed in the Fifth Addendum to the Standards Law, 1953 (the “Standards Law“). The adopted European regulations will be published on the website of the Ministry of Economy and Industry, in both English and Hebrew.
- Adaptation – Importers choosing to use the European Route will be required to label the goods according to the labeling requirements set by European regulations or directives, in addition to the labeling required by Israeli law. This excludes any labeling obligations stipulated by an official standard (unless otherwise specified in the Fifth Addendum to the Standards Law). Additionally, the product must be adapted to the electrical network in Israel.
- Product File – For the majority of product categories, maintaining a testing certificate in the Product File will not be required. However, the importer will be required to retain a declaration in the Product File stating that: (i) there are no known defects in the goods; (ii) there is no known non-compliance with the adopted European regulations; and (iii) there is a commitment to continuously monitor relevant publications concerning the goods, adhere to any instructions or alerts issued, and report to the Director of the Standards Administration.
- Exclusions – This part of the reform does not apply to food products, motor vehicles, or any item or process governed by an official standard related to fire safety, except for portable fire extinguishing equipment not permanently affixed to real estate or buildings, fire extinguishing materials, and standalone smoke detectors. Certain products will still need to comply with Israeli legislative requirements, as specified in the Fifth Addendum to the Standards Law.
- Samples – An important exemption has been set out for samples, stipulating that an importer or manufacturer of samples not intended for marketing and distribution to the public, are not required to meet standards requirements. This exemption, along with several other exemptions, took effect on the publication date in the official gazette and applies irrespective of the European Route.
- Food Reform – The Food Reform is expected to come into effect on January 1, 2025. The main aspects of the Food Reform are as follows:
- Adoption of New European Regulations – Approximately 20 new European regulations (in addition to the 4 previously adopted) have been adopted, covering various issues such as food labeling (Regulation 1169/2011), gluten labeling, flavor and fragrance additives, food additives, and more. In addition, exemptions and amendments to the provisions of the regulations and directives have been set out in the Second Addendum to the Public Health Protection (Food) Law, 2015 (the “Food Law“). Local legislation will continue to apply to the exempted subjects. Notably, the requirements for red labels and sugar spoon labels remain in effect. A transition period of 3 years from the effective date has been set out, with an option for an additional period of up to 2 years. Manufacturers or importers may apply the adopted regulations (in full or excluding labeling requirements) to certain products before the transition period ends and must provide appropriate notification.
- Expansion of European Regulatory Concessions – A temporary provision has been set out for 5 years, under which Proper Importers and local manufacturers with an effective local control system, that applies European regulatory requirements to their products, to be exempt from Israeli legislation specified in Addendum 13 to the Food Law, except for certain exceptions outlined in the adopted regulations. Additionally, document requirements have been simplified to ease the importation of food products marketed (rather than produced) in the European Union. The documents requiring direct contact with the food manufacturer or with suppliers with direct ties to the manufacturer have been removed, enabling parallel imports from various suppliers.
- Additional Provisions Effective as of the Publication Date in the Official Gazette (August 4, 2024) – The maximum duration for the pre-approval of sensitive food products has been extended from 6 years to 10 years. Additionally, a Proper Importer who applies self-monitoring procedures to the food being imported will only need to retain documentation proving these procedures, rather than providing a testing certificate or a specific declaration for each shipment.
- Energy Reform – The main aspects of the Energy Reform are set to take effect on November 1, 2024, and are outlined as follows:
- New Import Route – A new optional route has been set out, allowing the presentation of documents demonstrating that the product is listed in an official European register for energy aspects of energy-consuming devices, along with an energy rating label corresponding to the device’s energy efficiency level, if such a label is required by import regulations. The list of device types eligible for this route will be published on the website of the Ministry of Energy and Infrastructure.
- Removal of Expiry Limit for Energy Ministry Approvals – The one-year validity limit for approvals from the Ministry of Energy has been removed. These approvals will remain valid as long as there is no change in the European energy efficiency requirements that were the basis for the approval.
- Reform in Cosmetics – The Reform in Cosmetics is expected to come into force on January 1, 2025. The main aspect of this reform is the establishment of a new optional route – Proper Importer for importing products marketed in the European market, based on compliance with European regulations. Importers will be required to register in the Importers Registry and submit a marketing notification. This new route will operate alongside the notification route, while the licensing route will be discontinued as of December 31, 2024. However, this reform does not apply to cosmetics containing nano ingredients or those intended for use according to the label: for infants and children (up to age 12), for pregnant or breastfeeding women, for hair straightening, or for sun protection.
For the publication of the Standards Reform in the official gazette (in Hebrew), click here.
For the publication of the Food Reform in the official gazette (in Hebrew), click here.
For the publication of the Electrical Products Reform in the official gazette (in Hebrew), click here.
For the publication of the Cosmetics Reform in the official gazette (in Hebrew), click here.
We will be happy to assist you with any questions or clarification regarding this matter.
Kind Regards,
Herzog Fox and Neeman