Customs giveth, and Customs taketh away
The Israel Customs Authority is authorized to seize and, in certain circumstances, forfeit goods in a wide range of situations. One of the most common cases involves a passenger passing through the green channel (lane) at Ben Gurion Airport without declaring an item brought into Israel from abroad.
In recent years, enforcement in this area has increased significantly. Items commonly seized by Customs include luxury watches, jewelry, designer handbags, coins and collectable banknotes.
As a general rule, a new product purchased abroad with a value exceeding US$200 must be declared by passing through the red channel (lane), and the applicable taxes must be paid. However, certain exceptions apply, and some cases leave room for interpretation. Clothing and footwear, for example, are exempt from tax regardless of their value, provided that they are brought in a reasonable quantity for the passenger’s personal use-yet the law does not define precisely what constitutes a “reasonable quantity”.
Disputes may also arise in relation to used goods, as many passengers are unaware that, according to the Customs Authority’s position, used items may also be subject to declaration and taxation in certain circumstances. There are also intermediate situations-for example, where a person leaves Israel with a particular item and later returns with it – in which the passenger may be required to prove that it is the same item that was originally taken out of Israel.
The seizure of goods is not limited to passengers’ luggage and may also occur in the context of commercial imports. This may happen, for example, where undeclared items are discovered in a container, where a false declaration has been made regarding the destination of the goods – such as declaring that they are intended for the Palestinian Authority when they are in fact destined for Israel – or where the approvals required for their importation have not been obtained.
The laws governing seizure and forfeiture are set out in the Customs Ordinance, legislation dating back to the British Mandate which, subject to various amendments and adaptations, remains in force today. It is particularly important to be aware that these proceedings are subject to extremely short time limits. Following the seizure of goods, a notice of claim must be submitted to the Customs Authority within less than 30 days. If Customs subsequently issues a notice of forfeiture – indicating its intention to confiscate the goods – a legal claim must be filed with the court within less than 60 days.
Individuals and importers sometimes lose their right to seek the return of seized goods solely because they were unaware of these short statutory time limits.