Israeli Export Shipping Kit

Israeli Export Shipping Kit

Legal notice

This is a free information tool operated by an AI model. It explains customs and import rules and helps you organise your own figures. All of its outputs are produced automatically by an AI model, with no involvement, review, or approval by a customs agent or tax adviser. The output is not a filed customs declaration and not a professional opinion, but an explanation and a draft only. An AI model may err, omit data, or present a wrong conclusion.

A declaration to the customs authority is a legal document, and a false declaration carries liability. Any text this tool produces is therefore an automatic draft for your personal preparation only, to be checked with a customs agent or with the Tax Authority before filing. This tool is not a substitute for advice that takes account of the particular circumstances and needs of each person, and all use of its output is the user's sole responsibility.

Problem

Shipping a product out of Israel triggers a paperwork chain: commercial invoice, packing list, transport document (B/L, AWB or CMR), and an origin proof matched to the destination's FTA (EUR.1 for EU/UK, US Origin Invoice Declaration for the USA, Form B239 for Canada). Getting any of these wrong delays clearance or denies preferential duty. Exporters also routinely pick the wrong Incoterm and end up absorbing freight or insurance they meant the buyer to pay.

Instructions

Step 1: Choose the Incoterm

Incoterms 2020 (ICC) defines 11 three-letter trade terms. Pick once and write it on every document alongside the named place.

Rule of thumb:

• FOB/CFR/CIF are for bulk sea cargo only. Do not use them for containers or air freight; use FCA/CPT/CIP.
• Avoid EXW with international buyers unless the buyer explicitly handles export clearance from Israel.
• DDP is risky for small exporters: you become responsible for Israeli export formalities AND foreign import clearance.

Step 2: Draft the commercial invoice

Required fields (bilingual HE + EN is recommended for Israeli customs):

• Exporter (shipper): Israeli business name, address, VAT ID, phone, email
• Consignee (buyer): full name, address, country, tax/VAT ID
• Invoice number and date
• Purchase order / buyer reference
• Incoterm + named place (e.g. "FOB Haifa" or "DAP Berlin")
• Country of origin (Israel, for goods wholly or substantially produced in Israel)
• Item lines: description (HE + EN), HS code, quantity, unit price, total
• Currency (USD, EUR, GBP or ILS)
• Totals: subtotal, freight, insurance, total invoice value
• Declaration of origin (when claiming FTA preference, see Step 4)
• Exporter signature, stamp, printed name

Israeli exports are zero-rated for VAT: the standard rate is 18 percent, but exports carry a 0 percent rate. The invoice must still show the VAT line explicitly as 0 for the Tax Authority. The 0 percent rate under Section 30(a)(1) of the VAT Law is CONDITIONAL on proof that the goods actually left Israel: keep the export declaration and the transport documents on file. The statute names the document הצהרת ייצוא (export declaration); everyone in the trade calls it a רשימון יצוא, and your customs broker will use the colloquial name, but that is the thing the section requires. Without that proof the Tax Authority can deny the 0 percent and assess VAT at 18 percent.

Invoice in the currency you actually contracted in, and do not convert the item lines to shekels on the invoice itself. For the VAT return and the books, the transaction is translated to shekels at the Bank of Israel representative rate for the date of the tax point, not at the rate on the day you get paid. For goods the tax point is delivery under section 22(a), so a shipment delivered in December and paid in February belongs to the December reporting period. Check which basis applies to you before relying on that: section 22(b) puts a dealer whose turnover does not exceed 2 million NIS (and certain other categories) on a CASH basis, where the tax point is receipt of payment instead. Getting this backwards misdates the whole reporting period. Record the rate you used next to the entry, because a later exchange gain or loss is an income-tax item and does not retroactively change the VAT figure.

Step 3: Build the packing list

• Same header as the invoice (exporter, consignee, invoice number)
• Per-package: package number, dimensions, gross weight, net weight
• Per-item per-package: quantity, description, HS code
• Marks and numbers (visible on the cartons)
• Total number of packages, total gross weight, total net weight

Step 4: Produce the origin document matched to the destination

Israel has free trade agreements in force with the EU, USA, EFTA, Canada (CIFTA), Mercosur, UK, Turkey, Ukraine, Jordan, Mexico, Panama, Colombia, Guatemala, South Korea (KIFTA, in force 1 January 2023), the UAE (CEPA) and Vietnam (VIFTA). Check the exact origin-document type and rules of origin in the specific agreement before shipping; the table above lists the most common ones.

A note on the EU route, current as of 27 July 2026: preferential access is fully in force and nothing has been suspended. The Commission proposed suspending certain trade provisions of the EU-Israel Association Agreement in September 2025, but the Council never adopted it; a further attempt at the Foreign Affairs Council in April 2026 did not carry; and a July 2026 discussion of measures aimed specifically at settlement trade ended without a decision. So quote EU customers on the preferential basis today. The reason to track it is that a suspension would move Israeli goods to the EU's third-country MFN duty rates overnight, which is a real pricing exposure on a long-dated contract. If you are quoting delivered-duty terms months ahead, say who bears a duty change in the contract rather than assuming today's rate holds. Note separately that the long-standing exclusion of goods from Israeli settlements in territories administered since 1967 is unrelated to any of this and has applied throughout.

If the destination has no FTA with Israel, you need a different document entirely: a non-preferential certificate of origin. The EUR.1 and the invoice declaration are preferential proofs, and they only exist to claim a reduced duty rate under an agreement. A buyer in the Gulf, India, China, Nigeria, or most of Latin America has no agreement to claim under, but their customs authority or their bank still demands written proof of where the goods were made. That document is issued by an Israeli chamber of commerce (Tel Aviv, Haifa or Jerusalem), stamped by the chamber rather than by Customs, and it makes no preference claim at all.

Two situations catch exporters out. First, a letter of credit will very often call for a chamber-stamped certificate of origin even when the destination DOES have an FTA, because the requirement comes from the bank's document list, not from customs. Read the L/C wording and produce exactly the document it names: a EUR.1 will be rejected as a discrepancy if the credit asked for a chamber certificate. Second, some Arab-market destinations additionally require the chamber certificate to be legalised at their embassy or consulate, which adds days and a fee. Confirm the requirement with the buyer before the goods ship, not after.

See references/eur1-application-guide.md for the EUR.1 fields and pitfalls, and references/origin-declaration-template.md for invoice declaration wording.

Step 5: Attach the transport document

The transport document must match the Incoterm: under FOB the buyer chooses the carrier and receives the B/L, under CIF the seller buys the freight and may be on the B/L as shipper.

The export entry itself is filed electronically with Israeli Customs through the "Sha'ar Olami" (שער עולמי) system. In practice the freight forwarder or customs broker submits this declaration on the exporter's behalf, drawing on the commercial invoice, packing list, and origin document the exporter provides.

Two counterparty details to confirm before the goods move, because both stall a shipment at the far end rather than at yours.

• The EU or UK consignee needs an EORI number. Customs in the destination country will not clear an import without one, and it is the consignee's to obtain, not the Israeli exporter's. Ask for it early and put it on the invoice: chasing it after the container lands is how demurrage starts. An Israeli exporter does not need an EORI of their own unless they are acting as importer of record in the EU.
• Your customs broker needs a power of attorney (ייפוי כוח לסוכן מכס). The broker files the export entry in your name, and they cannot do it without that authorisation on file. Sort it once, before the first shipment, rather than per consignment.

Step 6: Optional documents

• Proforma invoice: sent before shipment, used for advance payment or import license in the destination country.
• Certificate of Inspection (SGS / Bureau Veritas): required by some destination buyers for government tenders.
• Health certificate / phytosanitary certificate: for food, plants, cosmetics.
• Fumigation certificate: for wood pallets under ISPM-15.
• Insurance certificate: for CIF / CIP shipments.

Step 7: Generate the set with the helper script

scripts/generate_invoice.py takes a JSON input (seller, buyer, items, Incoterm) and outputs a bilingual commercial invoice and packing list in markdown, ready for review before you lock the final PDF. A complete working example ships alongside it at scripts/sample_order.json; copy that and edit rather than building the JSON from scratch.

Required top-level fields: invoice_number, invoice_date, incoterm, seller, buyer, items. seller needs name_en, address and vat_id (add name_he for the Hebrew column); buyer needs name_en, address and country. Each entry in items needs description_en, quantity and unit_price, plus hs_code, description_he, gross_kg and net_kg if you want them on the invoice and packing list. Optional: currency (defaults to USD), named_place for the Incoterm, freight and insurance. The script validates these up front and names anything missing.

Two behaviours worth knowing before you read the output. Freight and insurance are only added into the total when the Incoterm puts them on the seller. Under EXW, FCA, FAS and FOB the buyer contracts the main carriage, so the script prints those amounts as memo lines marked "buyer's account" and leaves them out of the invoice total: adding them there would overstate the transaction value the importer declares to their customs authority. Under the C and D terms the seller bears them and they are included. Line totals are computed from the rounded unit price, so the printed columns actually multiply out; give unit_price to more decimals than the currency has and the invoice will show the rounded figure consistently rather than a total that does not match its own arithmetic.

To print the preferential origin declaration on the invoice, set origin_declaration to eu, uk or us. For the EU and UK route also give origin_place and origin_postcode (the place and postal code where the originating processing happened, which Israeli origin proofs must state), and approved_exporter_number if you hold approved-exporter status. Without that number the script warns when the consignment is over 6,000 EUR, because an invoice declaration by a non-approved exporter is not accepted above that value and a EUR.1 is needed instead. The ceiling is a euro-equivalent test rather than a rule about euro-denominated invoices, so on a foreign-currency invoice the script cannot decide it for you and tells you to convert and check the ceiling yourself.

The packing list is NOT produced by default. Pass --packing-list to append it, or you will ship with an invoice and no packing list, which stalls clearance:

python3 scripts/generate_invoice.py --input sample_order.json --packing-list --output invoice.md

Two more optional fields worth setting. country_of_origin defaults to ISRAEL but is honoured if you set it, which matters the moment you re-export goods made somewhere else: printing ISRAEL on a customs document for non-Israeli goods is a false origin statement, not a formatting choice. reason_for_export (sale, sample, repair, return) is printed when present and is what a customs officer looks for on a non-sale shipment.

Examples

Example 1: EU shipment of 12000 euros to Germany

User: "I am shipping 12000 euros of industrial pumps to Germany. What do I need?"

Actions:

1. Incoterm: negotiate CIP Berlin (paid insurance, road/sea via a forwarder).
2. Commercial invoice HE + EN showing origin Israel, HS code per pump, zero VAT.
3. Packing list with per-carton breakdown.
4. EUR.1 movement certificate stamped by Israeli Customs. Wet-ink signature.
5. Bill of Lading or FCR/AWB from the forwarder.
6. Insurance certificate (required by CIP).
7. Reminder: the value exceeds 6000 euros, so an invoice declaration is NOT enough unless the exporter has approved-exporter status.

Example 2: US shipment of 3000 USD to California

User: "I am sending 3000 USD of cosmetics to a US distributor."

Actions:

1. Incoterm: DAP Los Angeles (door delivery, buyer imports).
2. Commercial invoice HE + EN, zero VAT, full HS codes.
3. Packing list.
4. US Origin Invoice Declaration printed and signed on the invoice. No separate certificate.
5. AWB from the courier.
6. Ensure that Israeli content + direct processing costs meet the 35 percent value-added rule.

Example 3: Small EU shipment under 6000 euros

User: "I am sending 4500 euros of leather goods to Poland."

Actions:

1. Incoterm: DAP Warsaw.
2. Invoice + packing list.
3. Under the 6000 euros threshold, an invoice origin declaration by any exporter is accepted; no EUR.1 needed.
4. Add the declaration wording (see references/origin-declaration-template.md).

Bundled Resources

Scripts

• scripts/generate_invoice.py -- Renders a bilingual commercial invoice and packing list from JSON input (seller, buyer, items, Incoterm). Run: python3 scripts/generate_invoice.py --help

References

• references/incoterms-2020.md -- Full breakdown of all 11 Incoterms 2020 rules with seller / buyer responsibility tables.
• references/eur1-application-guide.md -- Field-by-field guide to filling and stamping an EUR.1 in Israel.
• references/pem-2026-rules.md -- Current status of the revised PEM Convention and Israel's unratified position.
• references/origin-declaration-template.md -- Exact wording for the US-Israel, EU, UK and CIFTA invoice declarations.

Recommended MCP Servers

Gotchas

• Agents confuse Incoterm letters. FOB is sea-only; use FCA for container shipments. CIF is sea-only; use CIP for air or multimodal.
• Israel has NOT ratified the revised PEM Convention (in force from 1 January 2025 between the EU and ratifying PEM parties; 2025 a transition year, full application 1 January 2026). Israeli exporters and EU importers must continue using the 2012 rules and the same EUR.1 form they used before. This also means an Israeli EUR.1 is valid for 4 months from issuance (the 2012 rule), NOT the revised-PEM 10-month window.
• An exporter is permanently in a VAT refund position (zero output VAT, real input VAT), so the input side is where the money is, and Israel's allocation-number rule bites there and ONLY there. The rule runs one way for an exporter, and getting the direction wrong costs money in both. On the INPUT side, a tax invoice from an Israeli supplier needs a מספר הקצאה before you can deduct the VAT on it. These are ordinary domestic taxable supplies, so the zero-rate carve-out does NOT protect them: freight forwarding, customs brokerage, packaging and crating invoices land above the threshold routinely, and the deduction is disallowed without a number. On the OUTPUT side, your own export invoices are zero-rated and are expressly outside the requirement under s.47(א2)(1), which applies only לעניין חשבונית מס שהוצאה בשל עסקה שהמס שחל לגביה אינו בשיעור אפס. Never flag your own export invoice for a missing allocation number, however large. Applying the rule symmetrically is the classic exporter error. The threshold is keyed to the INVOICE's own date, not today's, so a supplier invoice from an earlier year is tested against its own band: nothing before May 2024, then NIS 25,000 from May 2024, NIS 20,000 from January 2025, NIS 10,000 from January 2026 and NIS 5,000 from June 2026. Two further points from the statute. The loss of YOUR deduction is s.38(א1), which has NO buyer-request condition, so do not wait to see whether anyone demanded a number: לא יותר ניכוי מס התשומות הכלול בחשבונית מס שסכומה, בלא המס, עולה על 5,000 שקלים חדשים (מינואר 2026 ועד מאי 2026: 10,000 שקלים חדשים) ושאינה כוללת מספר שהקצה לה המנהל. That demand belongs to the SELLER'S duty under s.47(א2)(1) and has nothing to do with whether you can deduct. And the subsection says עולה על (EXCEEDS), so a supplier invoice sitting exactly on a band figure is outside the rule. Check for the allocation number when the invoice arrives, not at the end of the reporting period, because chasing a supplier for it months later is how a refund claim gets cut.
• EUR-MED certificates are retired under the REVISED PEM rules, but Israel is still on the 2012 rules, where the EU's own guidance states that "Movement certificates EUR.1 or EUR-MED are issued by the customs authorities of the exporting country". So do not tell an Israeli exporter the form no longer exists. In practice a plain EUR.1 is what you want for a straight Israel-to-EU shipment; EUR-MED only matters when you are claiming diagonal cumulation with another PEM party, and it is worth asking Israeli Customs whether the specific cumulation you want is available before you plan around it.
• EU-Israel Technical Arrangement: to win EU preference, EUR.1 Box 7 and every invoice declaration MUST state the name of the city, village or industrial zone AND the postal code where the origin-conferring processing took place. Goods produced in Israeli settlements in territories brought under Israeli administration since June 1967 are NOT entitled to preferential treatment. Since 16 May 2023 the EU enforces this with import code Y864. A EUR.1 or invoice declaration missing the place + postal code is rejected at the EU border. See references/eur1-application-guide.md.
• An electronic signature on an EUR.1 is rejected by Israeli Customs. Plan time for the original stamped form to travel with the shipment.
• The 6000 euros threshold for an invoice declaration is stated in the PEM rules as "the total value of the products", so it is the value of the originating goods for the whole consignment, not a per-line figure and not the invoice grand total with freight and insurance stacked on top. A 5999 euros consignment of goods can skip the EUR.1; a 6001 euros one cannot, unless the exporter is approved. The helper script applies it to the goods subtotal for that reason.
• US-Israel FTA requires a SIGNED declaration on the commercial invoice, not a separate certificate. Do not mix up the two directions here: the widely-quoted 10 January 2018 retirement of the Green Form (Form A) applies to US exporters shipping INTO Israel. For your direction, Israel to the US, CBP eliminated Form A on 20 May 1994 and replaced it with a signed affidavit that CBP may request from the importer, and CBP states the 2017 amendment "represents no change in the ILFTA requirements for importations into the United States".
• This skill builds shipping paperwork; it does NOT determine whether goods need an export license. Controlled goods are a separate regime: defense and military items fall under the Defense Export Control Agency (אגף הפיקוח על היצוא הביטחוני) at the Ministry of Defense, and civilian dual-use items fall under the Export Control Agency at the Ministry of Economy and Industry. If the product could be military, dual-use, or otherwise controlled, the exporter must check licensing with the relevant agency before shipping. Do not rely on this skill for that determination.

Reference Links

Troubleshooting

Error: "EUR.1 rejected at the EU border"

Cause: Electronic signature, missing Israeli Customs stamp, or incorrect box 4 (country / group of countries).

Solution: Request a fresh EUR.1 with a wet-ink signature and a physical Israeli Customs stamp. For repeat shipments, apply for approved-exporter status with Israeli Customs to switch to invoice declarations.

Error: "US buyer says the origin declaration is invalid"

Cause: Missing signature, missing 35 percent origin calculation, or the declaration placed on a non-commercial document.

Solution: Print the exact US Origin Invoice Declaration wording on the commercial invoice, shipping list or proforma invoice. The exporter or manufacturer must sign manually. Keep the value-added calculation on file in case CBP requests verification.

Error: "Freight forwarder says my Incoterm is impossible"

Cause: FOB or CIF chosen for air freight, or DDP chosen without clearing authority in the destination country.

Solution: For air or multimodal, switch FOB/CFR/CIF to FCA/CPT/CIP. For DDP, confirm with the buyer that you have a local tax registration or a fiscal representative in the destination, otherwise switch to DAP.