GENERAL AGREEMENT GATS/SC/44
15April 1994
ONTRADE INSERVICES (94-1042)
ISRAEL
Schedule ofSpecific Commitments
(This isauthentic inEnglish only)
____________________ISRAEL -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
INTHIS SCHEDULE
3) Registration ofcorporate bodies. The
Companies Ordinance (New Version) 5743-
1983, requires thatapublic corporation
must have onitsboard ofdirectors atleast
twodirectors representing thepublic at
large, whomust beresidents ofIsrael.
Thesame enactment alsorequires aforeign
company thatmaintains inIsrael aplace of
business oranoffice forregistration or
transfer ofshares toregister asaforeign
company andpaytherequisite fees. The
Partnership Ordinance (New Version),
5735-1975 provides thataforeign
partnership, i.e.oneformed outside Israel,
mayonlycarry onbusiness inIsrael ifitis
registered intheIsrael register
partnerships. Inthecaseofalimited
partnership, registration hastobe
sanctioned bytheMinister ofJustice who
athisdiscretion mayauthorize orrefuse
registration.
GATS/SC/44
Page1ISRAEL (continued)GATS/SC/44
Page2
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Presence ofNatural Persons
1.Unbound except thatIsrael shall permit,
without requiring compliance withlabour
market tests, thetemporary entry ofservice
providers asintra-corporate transfers inthe
following categories:
a)Executives: persons whoprimarily
direct themanagement ofthe
organization, establish itsgoals and
generally have awide decision making
authority;4) Unbound except forexecutives and
managers referred tounder Market Access.
b)Managers: persons whodirect the
organization oritsdepartment andare
inasenior level position responsible
fortheservice providing functions of
theorganization bysupervising and
controlling andhaving alsoauthority
tohireandfirepersonnel or
recommend such andother personnel
actions.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2.Unbound: Work permit willbeissued in
compliance withthelabour market teststo
those intra-corporate specialists, who
possess knowledge atanadvanced level of
expertise orotherwise essential or
proprietal totheorganization 'sservice,
research equipment, techniques or
management.
II. SECTOR-SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
a) Legal services
(CPC 861)1) None
2) None
3) Israeli resident orcitizen
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) Israeli resident orcitizen
4) Unbound except asindicated inthe
horizontal section.
b) Accounting (CPC 862) 1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
GATS/SC/44
Page3ISRAEL (continued)GATS/SC/44
Page4
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
d) Architectural services
(CPC 8671)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
e) Engineering services
(CPC 8672-8673)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
g) Urban planning
(CPC 8674)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
8. Computer andRelated
Services
a) Consultancy services
related totheinstallation
ofhardware (CPC 841)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
b) Software implementation
services (CPC 842)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
c), Data processing anddata
d) baseservices (CPC 843
excluding 84330)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
F. Other Business Services
a) Advertising (CPC 871) 1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
b) Market research and
public opinion
(CPC 864)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
GATS/SC/44
Page5ISRAEL (continued)GATS/SC/44
Page6
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
c) Management consulting
(CPC 865-866)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
h) Services incidental to
mining andoil-field1) Unbound*
2) Unbound*
3) None
4) Unbound except asindicated inthe
horizontal section.1) Unbound*
2) Unbound*
3) None
4) Unbound except asindicated inthe
horizontal section.
k) Placement andsupply
services ofpersonnel -
domestic market only
(CPC 872)1) Unbound
2) Unbound
3) None
4) Unbound except asindicated inthe
horizontal section.1) Unbound
2) Unbound
3) None
4) Unbound except asindicated inthe
horizontal section.
m) Related scientific and
technical consulting
services (CPC 8675)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
p) Photographic services
(CPC 875)1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2. COMMUNICATION
SERVICES
A., Postal/Courier Services
B. (CPC 75111-2 and7512)
Above 500g per
addressed item1) None
2) Unbound*
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) Unbound*
3) None
4) Unbound except asindicated inthe
horizontal section.
C. Telecommunications
Services
a) Public telephone services
-mobile telephone
(CPC 75213)1) None except for:
Number oflicences issubject toeconomic
needs test.
2) Unbound*
3) None except for:
Number oflicences issubject toeconomic
needs testandalocal partner maybe
required.
4) Unbound except asindicated innthe
horizontal section.1) None
2) Unbound*
3) None except for:
Local partner mayberequired.
4) Unbound except asindicated inthe
horizontal section.
GATS/SC/44
Page7ISRAEL (continued)GATS/SC/44
Page8
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Data andmessage
transmission (CPC 7523)1) None except for:
Must betransmitted viatheinfrastructure
ofalocal licensee.
2) Unbound*
3) None except for:
Must betransmitted viatheinfrastructure
ofalocal licensee.
4) Unbound except asindicated inthe
horizontal section.1) None except for:
Must betransmitted viatheinfrastructure
ofalocal licensee.
2) Unbound*
3) None except for:
Must betransmitted viatheinfrastructure
ofalocal licensee.
4) Unbound except asindicated inthe
horizontal section.
D. Audiovisual Services
a) Motion pictures and
video-tape production
(CPC 96111-2)1) Unbound
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) Unbound
2) None
3) Israeli movies (25% Israeli investments)
areentitled toagrant.
4) Unbound except asindicated inthe
horizontal section.
Distribution ofmotion
pictures andvideo-tape
(CPC 96113)1) Unbound
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) Unbound
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
6. ENVIRONMENTAL
SERVICES
Sewage andrefuse
disposal services
(CPC 9401-9405) (Not
including industrial
activities1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
Note: Thecommon practice inthissector isto
require alocal representative.
GATS/SC/44
Page9ISRAEL (continued)GATS/SC/44
Page10
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7. FINANCIAL SERVICES
General Note: Israel applies certain restrictions ontheconvertibility ofitscurrency. Therefore, certain rules concerning thepurchase offoreign currency from
Sheqalim byeither Israeli residents orforeign residents mayappear inthefollowing tables andnotes asrestricting foreign suppliers offinancial services. Themain
intention ofthese restrictions istoprotect theIsraeli money andcapital markets andnotasitmight seem, todiscriminate against foreign suppliers ofservices as
such.
A. AllInsurance and
Insurance-Related
Services
Non-life insurance
services1) None (a)
2) Unbound*
3) None (b)
4) Unbound except asindicated inthe
horizontal section.1) None (a)
2) Unbound*
3) None (c)
4) Unbound except asindicated inthe
horizontal section. (c)
Notes:
(a) Including Reinsurance.
(b) TheMinistry ofFinance isresponsible fortheissuance ofinsurance licences. Aforeign insurer must satisfy theMinistry thatitisfinancially sound andmust
commit itself tokeep certain prescribed sums ofmoney inthecountry before itisaccorded alicence.
(c) Similar tonotes (d)and(e)under banking sector below.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Lifeinsurance 1) Unbound (a)
2) Unbound (b)
3) None
4) Unbound except asindicated inthe
horizontal section. (c)1) Unbound (a)
2) Unbound (b)
3) None
4) Unbound except asindicated inthe
horizontal section. (c)
Notes:
(a) Certain exchange controls arestilloperative inIsrael. Therefore selling foreign lifeinsurance policies inIsrael cannot bepermitted. However, buying the
riskpartofaninsurance scheme ispermitted.
(b) Certain exchange controls arestilloperative inIsrael. Therefore Israeli residents arenotpermitted topurchase lifeinsurance schemes -asdistinct from the
riskpart-while physically being abroad.
(c) Similar tonotes (d)and(e)under banking sector below.
GATS/SC/44
Page11ISRAEL (continued)GATS/SC/44
Page12
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Banking andOther
Financial Services
(excl. insurance)
Banking 1) Unbound (a)
2) Unbound (b)
3) None (c)
4) Unbound except asindicated inthe
horizontal section. (d)1) Unbound (a)
2) Unbound (b)
3) None
4) Unbound except asindicated inthe
horizontal section. (e)
Notes:
(a) Certain Exchange controls arestilloperative inIsrael. Therefore, various direct banking services from abroad maynotbeavailable toIsraeli residents.
(b) Certain exchange controls arestilloperative inIsrael. Therefore Israeli residents arenotpermitted topurchase certain banking services while physically
present abroad.
(c) Israel regards foreign banking presence within itsborders favourably. Therefore, there arenorestrictions ontheestablishment oflocally incorporated banking
firms, ortheacquisition thereof, byforeign residents. However, theprudential requirements laiddown bytheSupervisor ofBanks regarding theownership
andmanagement ofIsraeli banks must beadhered to.Distributed profits mayberepatriated without restrictions. There arenorestrictions ontheopening of
Israeli branches offoreign banks aslongastheysatisfy theprudential requirements laiddown bytheSupervisor ofBanks. Exchange control regulations set
certain rules fortherepatriation ofprofits from theinvestment inanIsraeli branch ofaforeign firmandoftheprincipal thereof. These apply tobranches of
banking firms too.
(d) Thegeneral rules regarding employment offoreign residents inanyindustrial branch inIsrael apply toemployment offoreign residents inbanking, too-see
partone. Foreign residents canserve oncompanies 'boards ofdirectors.
(e) There arenosetrestrictions regarding thenationality offoreign banks employees.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Traded Securities
(Capital Market Services)1) None (a)
2) Unbound (b)
3) None (c)
4) Unbound except asindicated inthe
horizontal section. (d)1) None (a)
2) Unbound (b)
3) None (c)
4) Unbound except asindicated inthe
horizontal section. (d)
Notes:
(a) Israeli mutual funds arepermitted topurchase foreign securities trade inthemain capital markets. Individual Israeli residents arepermitted todothesame
according toarecent legislation (thedetails fortheimplementation arecurrently being worked out). Securities purchased must bekeptinasafekeeping
deposit withanIsraeli bank. There arehowever norestrictions astowhoistheforeign broker orfund manager from whom thesecurities arepurchased.
Israeli firms areallowed toraise funds (loans, bonds andstocks) onforeign capital markets without restrictions (however, theproceeds must betransferred to
Israel).
(b) Certain exchange controls arestilloperative inIsrael. Physical presence abroad does notinitself affect therights tobuyorsellforeign securities thatan
Israeli individual resident mayhave.
(c) Currently there arenorules toprescribe therequirements foracommercial presence ofaforeign security broker inIsrael. Nonetheless, asecurity broker
office inIsrael operating inforeign securities onbehalf ofIsraeli residents requires anauthorization from theController ofForeign Exchange.
(d) Similar tonotes (d)and(e)under banking sector above.
GATS/SC/44
Page13ISRAEL (continued)GATS/SC/44
Page14
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
9. TOURISM AND
TRAVEL-RELATED
SERVICES
A. Hotel Services
(CPC 641)1) Unbound*
2) None
3) Ownership must beinhands ofIsraeli-
registered company.
4) Unbound except asindicated inthe
horizontal section.1) Unbound*
2) Tourists exempt from V.A.T. onservices
given byhotels andpaidinforeign
currency.
3) None
4) Unbound except asindicated inthe
horizontal section.
Food serving services
(CPC 642-6431) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.1) None
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.
B. Travel Agencies and
Tour Operators
(CPC 7471)1) Unbound
2) None
3) Ownership must beinhands ofIsrael-
registered Company. Travel Agencies
should employ atleast oneIsrael-licensed
Travel Expert.
4) Unbound except asindicated inthe
horizontal section.1) Unbound
2) None
3) None
4) Unbound except asindicated inthe
horizontal section.ISRAEL (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C. Tourist Guides Services
(CPC 7472)1) Notapplicable
2) None
3) Israeli resident orcitizen.
4) Unbound except asindicated inthe
horizontal section.1) Notapplicable
2) None
3) Israeli resident orcitizen.
4) Unbound except asindicated inthe
horizontal section.
GATS/SC/44
Page15