The Minister of Finance, Avigdor Lieberman, signed yesterday the decree canceling the customs duty on industrial and agricultural products imported from South Korea. The order was signed following the entry into force of the free trade agreement signed between Israel and South Korea and ratified by the Israeli government on March 17, 2022.
The order will result, among other things, in the cancellation of the customs duty imposed on imports of cars from South Korea, at a rate of 7%. Also, the order will result in the cancellation of the customs duty imposed on the import of air conditioners from South Korea, at a rate of 12%. The loss of the state’s tax revenues as a result of the customs reduction is expected to amount to NIS 220-225 million per year.