Introduction
Importing goods into Israel requires compliance with strict regulations, especially regarding standards, licensing, and coordination with government authorities. However, there are legal exceptions that allow the importation of certain goods without full compliance with mandatory standards. One of the most important is the exemption under Section 2(g)(2) of the Free Import Order.
This exemption enables individuals and organizations to import products for personal, professional, or industrial use, provided they are not intended for commercial sale. For small businesses, one-time importers, or public institutions, this offers a practical solution to avoid lengthy and expensive standardization processes.
In this article, we’ll explore the purpose of this exemption, the eligibility conditions, how to submit an application, the differences compared to standard imports, and best practices for a successful request.
What Is Section 2(g)(2) of the Free Import Order?
This section of the Free Import Order grants the Supervisor of Standards the authority to approve imports even if the goods do not meet the mandatory Israeli standard, as long as the goods are not intended for commercial use. In other words, the exemption applies when products are imported for private or limited professional purposes, such as:
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Medical equipment for university research
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Industrial machinery for use in a single production line
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A prototype under development
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A control computer to be installed in a closed system
When Can the Exemption Be Requested?
The exemption is applicable when the following conditions are met:
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The goods are not intended for public or commercial sale
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The quantity is reasonable for the declared use
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The importer signs a declaration of limited use
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Meeting the standard would impair the intended use or be impractical
Common Use Cases for the Exemption
In practice, this exemption is commonly used in situations such as:
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Imports by research institutions or universities
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Importation of one-time prototypes or demonstration models
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Replacement parts for existing equipment
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Internal installations not accessible to the public
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Evaluation units provided by international vendors
How to Apply for the Exemption?
The application process involves several key steps:
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Document Preparation
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Full product description
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Clear justification and purpose of use
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Supplier invoice
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Shipping documents (e.g., bill of lading, packing list)
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Online Submission
Applications must be submitted through the Ministry of Economy’s online platform. -
Signed Declaration
The importer must commit in writing that the goods will not be sold or used commercially. -
Review and Approval
The Supervisor of Standards reviews the application and may request further documentation. -
Customs Clearance
Once approved, the broker continues clearance with the exemption documentation.
Table: Comparison Between Regular Import and Section 2(g)(2) Exemption
| Feature | Standard Import | Exemption under 2(g)(2) |
|---|---|---|
| Mandatory Standard | Required | Waived upon approval |
| Standards Institute Approval | Always required | Not required with exemption |
| Permitted Quantity | Any quantity | Limited to stated purpose |
| Commercial Use Allowed | Yes | No |
| Customs Handling | Standard process | Requires exemption certificate |
| Eligible Importers | All importers | Only for non-commercial usage |
Benefits of Obtaining the Exemption
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Time Savings – No need to wait for inspection or lab testing.
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Reduced Costs – Avoid the high cost of standardization certification.
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Business Flexibility – Evaluate products before committing to mass production.
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Simplified Process – Particularly efficient for public institutions and universities.
Risks of Misusing the Exemption
Failure to comply with the exemption terms can lead to serious consequences:
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Cargo delays at port
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Monetary fines
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Revocation of import privileges
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Legal prosecution for false declarations
It is essential to maintain transparency and ensure that the use of the goods matches the declared purpose.
Practical Tips Before Applying
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Clearly define and justify the intended use
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Provide detailed information on where and how the product will be used
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Include a formal letter from the end user (if different from the importer)
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Consult with a licensed customs broker or regulatory attorney
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Apply in advance—don’t wait until the shipment arrives
When Will the Exemption Be Denied?
The Supervisor of Standards is likely to reject the exemption if:
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The quantity is clearly commercial
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No reasonable justification for avoiding compliance
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There is a risk of public distribution
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A compliant alternative product is available locally
Conclusion
Section 2(g)(2) of the Free Import Order is a vital tool for importers who need to bring in non-commercial goods for specific, limited purposes. It supports innovation, research, and industrial applications—without the burden of full standard compliance. However, improper use carries significant legal and operational risks.
To make effective use of the exemption, importers must understand the legal rationale, submit a well-prepared request, and maintain full transparency. When used properly, this exemption can save both time and money while enabling targeted imports for personal or institutional needs.
