About exporting/importing with USA & figures

Exporting

Palestinian exports are low compared to imports; however, the numbers have been increasing gradually in the recent years. According to the Palestinian Central Bureau of Statistics (PCBS) total exports from Palestine in the year 1996 reached $339.5 million and the number has increased gradually to reach $513 million in the year 2007, with the exception of the year 2000, where exports reached $400.8 million. The products recording the most exporting rates include; non-metallic mineral manufactures, furniture, footwear, iron and steel, medicinal and pharmaceutical products, and cork and wood products (excluding furniture) with combined exports that reach $242 million in the year 2007 (47% of total exports in that year).

Exporting to the United States is very low compared to exporting to other countries in the world, as total exports to the United States throughout the years 1996-2007 reached the total of $14.5 million (less than 1% of total exports in those years) according to PCBS, showing gradual increase in recent years. The year 2005 has seen the highest export numbers to the United States with $4.2 million of exported products.

Importing

Palestinian imports record much bigger numbers than exports. The numbers show that imports to Palestine have been ranging around $2 billion, with the exception of the years 1999 and 2007 where the number exceeded $3 billion. The most imported products recorded in the year 2007 were; petroleum, natural and manufactured gas, non-metallic mineral manufactures, cereal and cereal preparations, and electrical machinery apparatus and appliances and parts these products combine to a total of $1.4 billion (44% of total imports of that year).

Importing from the United States is also considered low compared to importing from other countries in the world, as the total imports from the United States throughout the years 1996-2007 combined to the total of $434.5 million (1.6% of total imports in those years) according to PCBS. Statistics show that the year 1999 has seen the highest import numbers from the United States with a total of $90.5 million of imported products.

Duty Free Treatment of Products of the West Bank and Gaza Strip

The Duty Free Treatment of Products of the West Bank and Gaza Strip agreement (Free Trade Agreement) that was signed between the United States and the Palestinian Authority states that all imported products from the United States to the Palestinian territories are not subject to custom fees if the products meet the requirements of the agreement. The same rules of the agreement also apply to products exported from the Palestinian territories to the United States.
(Click here to view the Duty Free Treatment of Products of the West Bank and Gaza Strip agreement)

How to Import from USA

Import Procedures:

The importing company or person first need to obtain a Foreign Trade Dealing Registration (FTDR), which is a one-time authorization to trade, this applies for both importing and exporting. The (FTDR) is a "number password" which will be registered in the Israeli computer system. The import or export process will not take place unless the “number password” is obtained.

How to obtain a Foreign Trade Dealing Registration?

1. The process goes through three stages, it starts at the Ministry of National Economy /Consumer Services Department, then goes to the Office of the Commercial Affairs Coordinator in Beit El and the final stage is when it goes back to the Consumer Services Department or the Clearing Agent office.
2. The forms for the Foreign Trade Dealing Registration are obtained at the Ministry of National Economy /Consumer Services Department or from its offices in the governorates.
3. The Foreign Trade Dealing registration may be obtained for a company (carries the corporate registration number) or for an individual trader (carries the identity card number of the trader). 

Documents required for obtaining Foreign Trade Dealing registration:

Considering there are two types of importers, there are different documents for each type. The first is importing companies, where the documents needed are:

1. Three copies of the corporate registration
2. Three copies of the corporate registration application.

The second is individual importers, where the documents needed are:

1. Three copies of the identity card. 
2. Acquittance from the Income Tax and VAT departments.
3. A handicraft certificate from the municipality.
4. A certificate from the Chamber of Commerce and Industry.

• After the forms and proper documents are complete, the application must be submitted to the Ministry of National Economy /Consumer Services Department or any of its offices. The application is reviewed and verified to make sure that all the proper documents are annexed with the application.
• A copy of the application signed by the Director General of Trade is then given to the importer to prove he is an importer in the Palestinian territories.
• It will then take one to two weeks for the “number password” to be registered at the Israeli computer system at all Israeli entry points after the application is delivered to Beit-El.
• The importer has to verify, through his clearing agent, that the "number password" has been entered in the Israeli computer system at all the crossing points, after the two weeks have passed.

Important Remarks

• If the "number password" has not been entered the Israeli computer after the two weeks have passed, the importer has to inform the Consumer Services Department at the Ministry of National Economy.
• Foreign Trade Dealing Registration is a one-time authorization for trade and it continues to be valid provided that it is used at least once annually, otherwise it will be cancelled.

Second: Import Licenses

Import Licenses are granted as follows:

1. Import licenses according to lists A1,A2 & B (click here to view A1, A2 & B Lists)
   These are the lists in which the Palestinian National Authority, in accordance with Paris Protocol, has the right to apply, within pre-determined quotas, its customs rates, purchase tax and other import charges on those goods, in addition to defining standard requirements.
   Goods imported under list A1 must be locally produced in Jordan, Egypt or in other Arab countries. Goods imported under lists A2 can be imported from Arab, Islamic or other countries. Goods imported under list B are not subject to quantitative restrictions but are subject to Israeli standards.
2. Import licenses according to quotas: Commodities imported from the United States of America, European Union and Turkey in limited quantities and low customs fees and taxes.
3. Motor vehicles licenses: This requires approval from the Ministry of Transportation.
4. Other import licenses: Other types of goods that require from the importer obtaining an import license for various reasons.

An import license consists of four forms and every form consists of three copies in different colors (white, red and green). Following are the forms:

1. Import License in Arabic and English (click here to download form)
2. Import License in Hebrew and English (click here to download form)
3. Proforma Order for Importing Goods Based on the License in Arabic and English
4. Proforma Order for Importing Goods Based on the License in Hebrew and English.

• The forms above are available free of charge at the Ministry of National Economy / Consumer Services Department or the Ministry‘s offices in the governorates. They must be typed in English only in offices that provide such services or in the clearing agents‘ offices. The form must be signed and sealed by the importing side (firm or individual).
• The form must be clean and void of any scratching or handwriting and must include a single item identified by one tariff code and one origin.
• The import application is submitted to the Consumer Services Department (registrar) for verification or one of the Ministry‘s offices in the governorates, which in turn verifies it and sends it to the Ministry‘s headquarters in Ramallah.
• The Consumer Services Department puts the "number password" on the license and delivers it to the importer.
• The importer has to check with the clearing agent to make sure whether the imported goods need a license from the Ministry or not.

The import application includes the following items:

1. Licensing Number: The (number password) which consists of 9 digits and is obtained after the final approval of the application. The serial number of the application is written on the right corner.
2. Importer Name: The name of the company or person/ identity card number. The name of the company should be written in Latin letters and in Arabic pronunciation. Example: Sharikah Al-Wattanyah Lel-Tijarah Wal-Istithmar
3. Importer Address: Company‘s place of service and address for correspondence as shown in the company‘s registration certificate.
4. Importer card Number: The same registration number of the company or the identity card number of the importer if the importer is an individual.
5. Type of Commodities: Name of the imported commodities.
6. Terms of Payment: FOB (A pricing term indicating that the price includes the cost of loading the goods into transport vessels at a specified place. The exporter is no longer responsible for the goods once they have been placed on the ship at the port of departure). CIF means cost, insurance and freight and it is a pricing term indicating that the price includes the costs of goods in the country of origin on the day of clearance, and the entire costs incident to delivery at the port of entry in the country of destination.
7. Packaging: The way goods are wrapped, boxed or consigned to the importer‘s address. This may be in cartons or wooden boxes, free wrappers or sacks or loaded in trucks (as sheep) during shipment.
8. Measurement Unit:
   
   a. 1Kg if the goods are weighed
   b. 1M if the goods are measured in length
   c. 1M2 if the goods are measured in area
   d. 1PC if the goods are in pieces
   e. Measurement unit of cigarettes is 1000 cigarettes.
   
   N.B. Ton; dozen and gallon should be avoided as measurement units.
    
9. Quantity: Total units of imported goods.
10. Unit Price: Price of measurement unit in dollar.
    
    N.B. If the goods are of the same type but of different size (or of any other difference), the average price is calculated and Average is written opposite to the price.
    
11. Value in Purchase Currency: The total value of the imported goods in the currency in which the goods were purchased whether in $US or in any other currency.
12. Value in $US:  If the goods are purchased in a currency other than $US, the total value is converted to $US.
13. Country of Purchase: The country from which the goods are purchased.
14. Country of Export: The country from which the goods are exported.
15. Country of Import: The country which imported the goods.
16. Name of the Exporter: The name of the company from which the goods are purchased.
17. Address of the Exporter: The address of the company from which the goods are purchased.
18. Validity of the License: Validity of the import license is 6 months and renewable to another 6 months. The imported goods may be divided, in agreement with the customs authorities of the crossing points through which the goods enter, into parts. 19. Port of Entry: The port or crossing point through which the goods will enter.

How to export to USA

In order to export from the Palestinian territories, exporters need to obtain a certificate of origin.

Procedures for obtaining a certificate of origin:

Agricultural exporters:

1. Agricultural exporters registered at the Palestinian Customs & Excise Department shall duly abide to the following:
   
   a. Obtain a certificate from the Ministry of Agriculture to prove that the product is Palestinian.
   b. Present an invoice based on the taxation system on local products.
   
2. Non-registered agricultural exporters should obtain the following from the Agricultural Marketing Center at the Palestinian Customs & Excise Department:
   
   a. Obtain a certificate from the Ministry of Agriculture to prove that the product is Palestinian.
   b. Obtain an invoice in the name of the Agricultural Marketing Center according to the procedures of the center.
   
3. Present the packing list with the documents mentioned above.
4. The exporter must provide previous exporting data to the Palestinian Customs & Excise Department.
5. Stamp a copy of the presented invoice from the Palestinian Customs & Excise Department.
6. Obtain the certificate of origin from the local Chamber of Commerce according to the procedures.
7. The certificate of origin issued by the local chamber of commerce must be validated at the Ministry of National Economy after delivering the stamped original copy of the invoice (kept in the Ministry archives).

Industrial Exporters:

1. Validating the Calculating Added Value of Local Products Form from the Department of Industrial Development or its offices at the Ministry of National Economy. (click here to download form)
2. Obtain a stamped copy of the invoice from the Palestinian Customs & Excise Department, and present the following:
   
   a. Original invoice based on the taxation system on the local products.
   b. Packing List.
   c. Calculating Added Value of Local Products Form.
   
   Exporters must deliver previous exporting data to the Palestinian Customs & Excise Department.
   
3. Obtain the certificate of origin from the local Chamber of Commerce according to the procedures.
4. The certificate of origin issued by the local chamber of commerce must be validated at the Ministry of National Economy after delivering the stamped original copy of the invoice (kept in the Ministry archives).

Exporting to the United States:

Exporting to the United States is subject to certain procedures and requires certain forms to fill. The exporting process requires the consultation of a customs broker to provide all the necessary documents and fill them according to the exporting procedures. The documents are:

1. Entry Summery (CBP Form 7501). (click here to download form)
2. Entry / Immediate Delivery (CBP Form 3461). (click here to download form)
3. Customs Bond (CBP Form 301) annexed with the commercial invoice, packing list, and bill of lading. (click here to download form)
4. If the products are from the West Bank, (WB) should be added before the phrase (HTS US) found in (CBP Form 7501). If the products are from Gaza Strip, (GS) should be added before the phrase (HTS US) found in (CBP Form 7501) in order to receive a duty free treatment for the products.
5. Specific description of foreign expenses such as raw materials and fundamental changes on the product can be mentioned in case the U.S. Customs and Border Protection ask for it.
6. Certificate of origin. (click here to download form)

Re-Exportation:

Re-exportation of any product requires the following:

Exporters must provide the documents of the products that are to be re-exported.

1. Certificate of origin.
2. Customs Declaration.
3. Bill of lading.
4. Purchase invoice
5. Invoice of the products that are to be re-exported by the exporting company (stamped and certified by the local chamber of commerce) – a certification from the local chamber of commerce (the chamber of commerce where the company is registered).

After completing all the required documents, the re-exportation application must be filled, signed, and stamped by the exporter. Then delivered to the Exporting Department at the headquarters of the Ministry of National Economy, who on its part studies the application and the annexed documents and checks the products then sign and stamp the application in case of an approval, the ministry also keeps a copy of all the documents at the department’s archives.
(Click here to download Re-Exportation form)

Sources:

The Palestinian Ministry of National Economy
The Palestinian Central Bureau of Statistics
Importing into the United States: A Guide for Commercial Importers
U.S. Customs and Border Protection

Forms:

CBP Form 7501
CBP Form 3461
CBP Form 301
Certificate of Origin
Re-Exportation Form
Import License Arabic English
Import License Hebrew English
Calculating Added Value Form