The Ministry of Finance today cancelled customs duties on online purchases up to NIS 1,200 and on goods up to $75 when returning to Israel from abroad. The cancellation of the duties was one of the Trajtenberg Committee's recommendations to increase competition and lower the cost of living. The measure will cost the Treasury NIS 60 million a year.

Minister of Finance Yuval Steinitz signed the two directives today. The first exempts from customs duties personal imports up to $325 (NIS 1,200). The second raises the import duties exemption from $50 to $75.

Until now, shipments of clothes, footwear or books were exempt from customs only if they were sent as gifts.

The exemptions do not apply to personal imports of cigarettes or alcoholic beverages.

Published by Globes [online], Israel business news - www.globes-online.com - on January 30, 2012

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