New regulations forbid Israel Post Company Ltd. releasing parcels received from overseas from customs as part of its postal services at no cost to customers. Henceforth, customers will have to pay a fee beginning at NIS 35 and ranging up to hundreds of shekels to release parcels. Until now, customs clerks released incoming parcels at post offices.
The status of the Postal Authority was changed to Israel Post a few months ago, as part of the government's plan to increase competition in the parcel delivery market. As part of this process, it was decided in early February to remove the customs clerks from the post offices, and that agents authorized by Israel Post will release parcels from customs.
The result of this change is that post office customers will have to pay for this service previously provided for free.
According to the Customs and VAT Law, a parcel arriving from overseas with a declared value of up to $50 is exempt from customs duty. Customs is levied on any parcel with a declared value greater than $50 based on the goods sent. Until now, customs agents at the post office would determine the value of the goods and the customs duty to be paid. Customers would pay the duty at the post office when they collected the parcel.
With the coming into effect of the new regulations, this process is handled by an authorized agent, who pays the customs duty, which is then passed on to the customer with extra fees added on.
Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2008
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