Israelis are sensitive to advertising and brand image They like quality and are thus ready to pay a higher price but the price should remain reasonable.Price is thus an important factor in the purchase decision of Israeli consumers. The after-sales service and warranties are necessary, since the Israeli consumer considers that a product without warranty is not a genuine product.
Consumer profile and purchasing power
Israeli consumers like new products. Israeli legislation promotes national products.
Specialised Superstores and Discount stores have sprung up in Israel.
Market shares
In the field of foodstuffs, the distribution chain is composed of supermarkets, grocery stores, specilialised boutiques and open air markets. More than 40% of the consumers make their purchases of food products in supermarkets which accounts for 60% of the retail sales of foods. In Israel, there are 470 supermarkets that are mainly controlled by three large chains.
Organizations in the retail sector
Market access procedures
International Conventions
International economic cooperation
Israel has signed free trade agreements with the European Union, United States, EFTA, Turkey, Mexico, Canada, Jordan, Egypt and Mercosur. A customs union exists between Israel and the Palestinian territories, since 1994.
Non tariff barriers
Most of the products can be imported freely in Israel, with the exception of some agricultural products which comply to strict health rules as well as follow the kosher customs for food.
Finally it is to be noted that imports from countries which restrict or prohibit imports originating from Israel are subjected to special monitoring.
Customs duties and taxes on imports
The average customs duty of non-agricultural products is 4.54 % according to CNUCED (2006). This is a low rate.
Customs classification
Harmonised System
Import procedures
For importing into Israel, there must be an import licence issued by the Ministry of Industry and Trade; a certificate from the Standards Institute which establishes that the product conforms to Israeli standards.
In 2006, 36.25 million tonnes of cargo passed through the ports of the country. Haifa Port (6th for the containerised cargo) has handled 19.202 million tons of cargo, which for Ashdod is 15.144 million tons of cargo and for Eilat (Free Zone) 1.908 million tons of cargo in 2006. The site administration of the Ben Gurion airport has estimated 318 900 tons all of cargo handled by it every year. The objective projected by Israel Railways and Port and Rail Authority is to carry traffic for transport of cargo for 15 million tons of goods per year by 2010. The rail transport of cargo represented 7.6 million tons of goods in 2006, according to the Central Bureau of Statistics.
Since the country has a highly qualified manpower but is deficient in raw materials, the industry has concentrated today on high added-value products, in developing products based on Israel's own scientific creativity and technological innovation. The most important sectors of the country are pharmaceutical, chemical, biotechnology, software, electronics and telecommunications industries. The Israeli diamond industry is one of the most important in the world.