Israel - Vietnam FTA (2023)
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Maritime Regulations (Seafarers), 2002

Maritime Regulations (Seafarers) (Staffing of Vessels and Tugboats with Israeli Seafarers), 2016

Shipping and Ports Authority Law, 2004

Shipping Law (Foreign Sea Vessel under Israeli Control), 2005

Description: Cross-Border Trade in Services and Investment

1. In order to register in the Israeli vessel registry and carry an Israeli flag, a majority ownership of a vessel by a national of Israel or an enterprise incorporated in Israel or by Israel is required (“Israeli Vessel.")

2. A foreign vessel that is controlled by a national or resident of Israel or by an enterprise incorporated in Israel shall be registered in Israel in accordance with Shipping Law (Foreign Sea Vessel under Israeli Control), 2005 (“Foreign Vessel”).

3. Israeli seafarers are required in order to operate an Israeli vessel or a foreign vessel referred to in paragraph 2.

4. Seafarer certificate requires nationality of Israel.

Providing a certificate to non-residents is subject to prior approval by the Administrator of Shipping and Ports.

16 Sector: Transportation

Sub-Sector: Aircraft repair and maintenance services as defined in the GATS Annex on Air Transport Services

Obligations Concerned:

Market Access (Article 8.5)

Measures: Air Navigation Regulations (Approved Maintenance Organizations), 2013 (Article 25)

Description: Investment

The number of service suppliers of base maintenance and repair in each airport can be limited, due to available space constraints.

17 Sector: Transportation

Sub-Sector: Motor vehicle

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Performance Requirements (Article 9.6)

Local Presence (Article 8.6)

Senior Management and Board of Directors (Article 9.7)

Measures: Supervision Order on Commodities and Services (Imports of Motor Vehicle and Services to Motor Vehicle), 1978, Article 3

Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, Articles 2, 20, 41, 42, 44, 68, 97, 98, 136, 143 and 149

Companies Law, 1999, Article 1

Description: Cross-Border Trade in Services and Investment

1. License is required in order to commercially import motor vehicles. The director general and at least one interested party as defined in Article 1 of the Companies Law, 1999, of a corporation applying for licensure, shall be nationals or residents of Israel.

2. License is required in order to manufacture and market motor vehicles or to trade in motor vehicles and the license holder must be:

(a) a national or resident of Israel who is a sole proprietor; or

(b) a registered corporation in Israel whose director general and at least one interested party as defined in Article 1 of the Companies Law, 1999, are nationals or permanent residents of Israel.

3. License is required in order to brokerage in motor vehicle private import and the license holder must be:

(a) a national or resident of Israel who is a sole proprietor; or

(b) an employee of a registered corporation in Israel whose director general and at least one interested party as defined in Article 1 of the Companies Law, 1999, are nationals or residents of Israel.

4. License is required in order to manufacture traffic products, as defined in Article 2 of the Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, and the license holder must be:

(a) a sole proprietor; or

(b) a registered corporation in Israel the director general and at least one interested party as defined in Article 1 of the Companies Law, 1999, of which are nationals or residents of Israel.

5. Israel may determine that certain traffic products, as defined in Article 97 of the Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, are made for marketing in the Israeli market alone.

6. Nationality or permanent residency of Israel is required for licensure as a motor vehicle appraiser.

7. Nationality or residency of Israel is required for licensure as a professional manager of a motor vehicle service center (garage) and at least one licensed professional manager is required to be available on the premises in order to operate a motor vehicle garage.

Note 1: “Traffic Product” as defined in Article 2 of the Law of Licensing of Services and Professions in the Motor Vehicle Sector, 2016, is an accessory, a part, system of parts, an appliance with the exception of an appliance that is a work tool used by garages or manufacturers only, a device or substance that is a liquid, solid or gas, that is used or designed to be used for assembly, maintenance or the proper operation of a motor vehicle or for ensuring thesafety of a motor vehicle or for ensuring user safety or for his convenience.

Note 2: For the purposes of this Schedule, it is understood that director general is an equivalent position to chief executive officer.

Note 3: For the purposes of this Schedule, “interested party”, as defined in Article 1 of the Companies Law, 1999, is:

(a) a substantial shareholder;

(b) a person with the power to appoint one or more members of the board of directors or the director general; or

(c) a person who serves in the enterprise as a member of the board of directors or as a director general.

18 Sector: Transportation

Sub-Sector: Driving Licenses and Road Transport Services, including Passenger Transportation Services, Motor Vehicle

Mechanics Safety Officer

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Local Presence (Article 8.6)

Measures: Road Transport Regulations, 1961 (Articles 175-190, 213-213H, 216, 221, 221A, 247, 251, 531, 567, 567B and 582)

Road Transport Ordinance (Article 14)

Supervision Order on Commodities and Services (Purchase, Installation and Maintenance of Taxi Meters), 1984

Companies Law, 1999 (Article 1)

Description: Cross-Border Trade in Services and Investment

1. Israeli residency or nationality is required to obtain certain types of driving licenses, in accordance with Articles 175-185, 189 and 190 of Road Transport Regulations, 1961.

2. Israeli residency or nationality is required for obtaining a taxi operator license.

3. Israeli residency or nationality is required for an individual working in installation or maintenance oftaxi meters and an enterprise operating in installation or maintenance of taxi meters must have at least oneinterested party, as defined in Article 1 of the Companies Law, 1999, who is a national or permanent resident of Israel.

4. Israeli residency or nationality is required for authorization to work as a motor vehicle mechanics safety officer.

19 Sector: Road Transportation

Sub-Sector: Transportation of freight

Transportation of furniture

Rental of commercial vehicles with operator

Industry Classification: CPC 71233, 71239, 71234, 7124

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Local Presence (Article 8.6)

Measures: Road Transport Regulations, 1961 (Article 189)

Freight Services Regulations, 2001 (Article 2 and 24)

Law of Transport Services, 1997

Description: Cross-Border Trade in Services and Investment

Israeli residency or nationality is required in order to obtain a license to transport freight over 10 tons or hazardous materials of any weight.

The professional manager and the operator of haulage shall be a national or resident of Israel.

20 Sector: Transportation

Sub-Sector: Customs Agents

Industry Classification: CPC 749**

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Local Presence (Article 8.6)

Measures: Customs Agent Law, 1964 (Articles 4 and 5).

Description: Cross-Border Trade in Services and Investment

Israeli residency or nationality is required to obtain a Customs agent’s license.

All customs firms, including foreign customs firms, must employ at least one Israeli licensed custom agent as an active manager, clerk or as a partner.

ANNEX II . RESERVATIONS FOR FUTURE MEASURES. SCHEDULE OF THE STATE OF ISRAEL

EXPLANATORY NOTE

1. Israel's schedule to this Annex sets out, pursuant to subparagraph 2 of Article 8.7 (Non-Conforming Measures) and 9.8 (Non-Conforming Measures), the specific sectors, sub-sectors or activities for which Israel may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 8.3 (National Treatment) or 9.4 (National Treatment);

(b) Article 8.4 (Most-Favored-Nation Treatment) or 9.5 (Most-Favored-Nation Treatment);

(c) Article 8.5 (Market Access):

(d) Article 8.6 (Local Presence);

(e) Article 9.6 (Performance Requirements); or

(f) Article 9.7 (Senior Management and Board of Directors)

2. Each Schedule entry sets out the following elements:

(a) “Sector” refers to the sector for which the entry is made;

(b) “Sub-Sector”, where referenced, refers to the specific sub-sector for which the entry is made;

(c) “Industry Classification”, where referenced, and only for transparency purposes, refers to the activity covered by the nonconforming measure, according to domestic or international industry classification codes;

(d) “Obligations Concerned” specifies the obligations referred to in paragraph 1 that, pursuant to paragraph 2 of Article 8.7 (Non-Conforming Measures) and paragraph 2 of Article 9.8 (Non-Conforming Measures) do not apply to the sectors, sub-sectors or activities listed in the entry;

(e) “Description” sets out the scope or nature of the sectors, sub-sectors or activities covered by the entry; and

(f) “Existing Measures”, where specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, sub-sectors or activities covered by the entry.

3. In the interpretation of an entry, all elements of the entry shall be considered.

The “Description” element shall prevail over all other elements.

4. For the purposes of this Annex the term “CPC” means Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991).

5. In case of any inconsistency between Scheduled Entry No. 50 and any other scheduled entry, the latter shall prevail.

6. In case Israel will use Entry No. 8 (d) mutual recognition in different fields, this same Entry shall become applicable for Viet Nam as well.

1 Sector: All

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Market Access (Article 8.5)

Local Presence (Article 8.6)

Performance Requirements (Article 9.6)

Senior Management and Board of Directors (Article 9.7)

Description: Cross-Border Trade in Services and Investment

Israel reserves the right to adopt or maintain any measure to promote policy objectives for the benefit of socially or economically disadvantaged groups, including, minorities, disabled persons, military veterans and first-degree family members of Israeli fallen soldiers and the development of its peripheral areas.

2 Sector: All

Sub-Sector: Privatization

Obligations Concerned:

National Treatment (Articles 8.3 and 9.4)

Market Access (Article 8.5)

Local Presence (Article 8.6)

Performance Requirements (Article 9.6)

Senior Management and Board of Directors (Article 9.7)

Description: Cross-Border Trade in Services and Investment

1. When transferring or disposing of its equity interests in, or the assets of, a state enterprise or a governmental entity, Israel reserves the right to:

(a) prohibit or impose limitations on the ownership of such interests or assets by investors or investments;

(b) impose limitations on the ability of investors or investments as owners of such interests or assets to control any resulting enterprise;

(c) adopt or maintain any measure relating to the nationality or permanent residency of members of the board of directors, position holders or certain officers of any resulting enterprise; or

(d) impose limitations on the location of management, main operations and center of business of any resulting enterprise.

Note: For the purposes of this Schedule entry, “position holder” is the director general, chief business officer, deputy director general, vice director general or any persons in equivalent positions, member of the board of directors or other officers who directly report to the director general, as defined in Article 1 of the Companies Law, 1999. Further it is understood that director general is an equivalent position to chief executive officer.

2. In the event where the supply of services, which is restricted to designated enterprises or governmentalentities, is liberalized to those other than the designated enterprises or governmental entities, or inthe event where such designated enterprises or governmental entities no longer operate on a noncommercial basis, Israel reserves the right to adopt or maintain any measure related to those activities.

Existing Measures: Government Companies Law (including Special State Share), 1975

Government Companies Order (Announcement on Essential State Interests in Ashot Ashkelon Industries Ltd.), 2005

Government Companies Order (Announcement on Essential State Interests in Oil Refineries Ltd.), 2007

Government Companies Order (Announcement on Essential State Interests in Oil Refinery – Ashdod Ltd.), 2006

Government Companies Order (Announcement on Essential State Interests in El-Al Israel Airlines Ltd.), 2004

Government Companies Order (Announcement on Essential State Interests in IMI Systems Ltd.), 2016

Special State Share in Israel Chemicals Ltd. and in its Subsidiary Companies

Special State Share in Zim Integrated Shipping Services Ltd.

Special State Share in El-Al Israel Airlines Ltd.

3 Sector: All

  • Chapter   1 INITIAL PROVISIONS AND GENERAL DEFINITIONS 1
  • Section   A Initial Provisions 1
  • Article   1.1 Establishment of a Free Trade Area 1
  • Article   1.2 Objectives 1
  • Article   1.3 Relation to other Agreements 1
  • Article   1.4 Extent of Obligations 1
  • Section   B General Definitions 1
  • Article   1.5 Definitions of General Application 1
  • Chapter   2 TRADE IN GOODS 1
  • Article   2.1 Definitions 1
  • Article   2.2 Scope and Coverage 1
  • Article   2.3 National Treatmebt 1
  • Article   2.4 Reduction or Elimination of Customs Duties 1
  • Article   2.5 Import and Export Restrictions 1
  • Article   2.6 Trade Related Non-Tariff Measures 1
  • Article   2.7 Import Licensing 1
  • Article   2.8 Administrative Fees and Formalities 1
  • Article   2.9 Agricultural Export Subsidies 1
  • Article   2.10 Administration of Trade Regulations 1
  • Article   2.11 Contact Points and Consultations 1
  • Article   2.12 Sub-Committee on Trade In Goods 1
  • Chapter   3 RULES OF ORIGIN 1
  • Article   3.1 Definitions 1
  • Article   3.2 Originating Good 1
  • Article   3.3 Cumulation of Origin 2
  • Article   3.4 Wholly Obtained Goods 2
  • Article   3.5 Sufficiently Worked or Processed Goods 2
  • Article   3,6 De Minimis 2
  • Article   3.7 Insufficient Working or Processing 2
  • Article   3.8 Unit of Qualification 2
  • Article   3.9 Accounting Segregation 2
  • Article   3.10 Accessories, Spare Parts and Tools 2
  • Article   3.11 Sets 2
  • Article   3.12 Neutral Elements 2
  • Article   3.13 Principle of Territoriality 2
  • Article   3.14 Direct Transport 2
  • Article   3.15 Exhibitions 2
  • Article   3.16 Proof of Origin 2
  • Article   3.17 Electronic Origin Data Exchange 2
  • Article   3.18 Procedures for the Issuance of Certificates of Origin 2
  • Article   3.19 Certificates of Origin Issued Retrospectively 2
  • Article   3.20 Duplicate Certificates of Origin 2
  • Article   3.21 Approved Exporter 2
  • Article   3.22 Conditions for Making Out an Origin Declaration 2
  • Article   3.23 Validity of Proofs of Origin 2
  • Article   3.24 Submission of Proofs of Origin 2
  • Article   3.25 Importation by Instalments 2
  • Article   3.26 Exemptions from Proofs of Origin 2
  • Article   3.27 Supporting Documents 3
  • Article   3.28 Preservation of Proofs of Origin and Supporting Documents 3
  • Article   3.29 Discrepancies and Formal Errors 3
  • Article   3.30 Mutual Assistance 3
  • Article   3.31 Verification of Proofs of Origin 3
  • Article   3.32 Denial of Preferential Treatment 3
  • Article   3.33 Dispute Settlement 3
  • Article   3.34 Amendments to the Chapter 3
  • Article   3.35 Sub-Committee on Customs and Rules of Origin 3
  • Chapter   4 CUSTOMS ADMINISTRATION AND TRADE FACILITATION 3
  • Article   4.1 Customs Cooperation 3
  • Article   4.2 Customs Procedures 3
  • Article   4.3 Release of Goods 3
  • Article   4.4 Risk Management 3
  • Article   4.5 Transparency 3
  • Article   4.6 Advance Rulings 3
  • Article   4.7 Review and Appeal 3
  • Article   4.8 Confidentiality 3
  • Article   4.9 Subcommittee on Customs and Rules of Origin 3
  • Chapter   5 Trade Remedies 3
  • Section   A Bilateral Safeguard Measures 3
  • Article   5.1 Definitions 3
  • Article   5.2 Application of a Bilateral Safeguard Measure 3
  • Article   5.3 Limitations for Applying a Bilateral Safeguard Measure 3
  • Article   5.4 Investigation Procedures 3
  • Article   5.5 Provisional Bilateral Safeguard Measures 3
  • Article   5.6 Notification and Consultations 3
  • Article   5.7 Compensation 3
  • Section   B Global Safeguard Measures 3
  • Article   5.8 Imposition of Global Safeguard Measures 3
  • Section   C Anti-dumping and Countervailing Measures 4
  • Article   5.9 Anti-dumping and Countervailing Measures 4
  • Section   D General Provision 4
  • Article   5.10 Selection of Measures 4
  • Chapter   6 SANITARY AND PHYTOSANITARY MEASURES 4
  • Article   6.1 Definitions 4
  • Article   6.2 Objectives 4
  • Article   6.3 Scope 4
  • Article   6.4 General Provisions 4
  • Article   6.5 SPS Contact Points 4
  • Article   6.6 Adaptation to Regional Conditions 4
  • Article   6.7 Equivalence 4
  • Article   6.8 Procedure of Listing Establishments 4
  • Article   6.9 Communication and Exchange of Information 4
  • Article   6.10 Sub-Committee on SPS 4
  • Article   6.11 Technical Cooperation 4
  • Article   6.12 Consultations 4
  • Article   6.13 Emergency Measures 4
  • Chapter   7 TECHNICAL BARRIERS TO TRADE 4
  • Article   7.1 Definitions 4
  • Article   7.2 Objectives 4
  • Article   7.3 Scope 4
  • Article   7.4 General Provisions 4
  • Article   7.5 International Standards, Guides and Recommendations 4
  • Article   7.6 Conformity Assessment Procedures 4
  • Article   7.7 Transparency 4
  • Article   7.8 Information Exchange and Technical Discussions 4
  • Article   7.9 Cooperation on TBT Related Issues 5
  • Article   7.10 Sub-Committee on Technical Barriers to Trade 5
  • Article   7.11 Contact Points 5
  • Chapter   8 Cross-Border Trade In Services 5
  • Article   8.1 Definitions 5
  • Article   8.2 Scope 5
  • Article   8.3 National Treatment 5
  • Article   8.4 Most-Favoured-Nation Treatment (3) 5
  • Article   8.5 Market Access 5
  • Article   8.6 Local Presence 5
  • Article   8.7 Non-Conforming Measures 5
  • Article   8.8 Domestic Regulation 5
  • Article   8.9 Transparency In Developing and Applying Regulations (5) 5
  • Article   8.10 Recognition 5
  • Article   8.11 Payments and Transfers 5
  • Article   8.12 Restrictions to Safeguard the Balance-of-Payments 5
  • Article   8.13 Denial of Benefits 5
  • Article   8.14 Exceptions 5
  • Chapter   9 INVESTMENT 5
  • Section   A General Provision 5
  • Article   9.1 Definitions 5
  • Article   9.2 Scope and Coverage 6
  • Article   9.3 Right to Regulate 6
  • Section   B Non-Discrimination and Liberalisation of Investment 6
  • Article   9.4 National Treatment 6
  • Article   9.5 Most-Favoured Nation Treatment 6
  • Article   9.6 Performance Requirements 6
  • Article   9.7 Senior Management and Board of Directors 6
  • Article   9.8 Non-Conforming Measures 6
  • Article   9.9 Special Formalities and Information Requirements 6
  • Section   C Investment Promotion and Protection 6
  • Article   9.10 Scope of Investment Protection 6
  • Article   9.11 Treatment of Investments 6
  • Article   9.12 Losses and Compensation 6
  • Article   9.13 Expropriation and Compensation (4) 6
  • Article   9.14 Transfers (6) 6
  • Article   9.15 Subrogation 6
  • Article   9.16 Taxation Measures (7) 7
  • Article   9.17 Denial of Benefits 7
  • Article   9.18 General Exceptions 7
  • Section   D Investor – State Dispute Settlemen 7
  • Article   9.19 Consultation and Negotiation 7
  • Article   9.20 Submission of Claim to Arbitration 7
  • Article   9.21 Consent of Each Party to Arbitration 7
  • Article   9.22 Conditions and Limitations on Consent of Each Party 7
  • Article   9.23 Selection of Arbitrators 7
  • Article   9.24 Place of Arbitration 7
  • Article   9.25 Places of Hearings and Procedural Language 7
  • Article   9.26 Conduct of Arbitration 7
  • Article   9.27 Third-Party Funding 7
  • Article   9.28 Governing Law 7
  • Article   9.29 Awards 7
  • Section   E Final Provisions 7
  • Article   9.30 Duration and Termination 7
  • Annex 9A   Expropriation 7
  • Annex 9B   Temporary Safeguard Measures 8
  • Annex 9C   Taxation and Expropriation 8
  • Annex 9D   Submission of a Claim to Arbitration with respect to Subparagraphs 2(b) and 2(c) of Article 9.22 (Conditions and Limitations on Consent of Each Party) 8
  • Chapter   10 GOVERNMENT PROCUREMENT 8
  • Article   10.1 Cooperation 8
  • Article   10.2 Information on the Procurement System 8
  • Article   10.3 Consultations 8
  • Article   10.4 Non-Application of Dispute Settlement 8
  • Article   10.5 Contact Points 8
  • Article   10.6 Review 8
  • Chapter   11 EXCEPTIONS 8
  • Article   11.1 General Exceptions 8
  • Article   11.2 Security Exceptions 8
  • Article   11.3 Taxation 8
  • Article   11.4 Disclosure of Information 8
  • Chapter   12 TRANSPARENCY 8
  • Article   12.1 Publication 8
  • Article   12.2 Provision of Information 8
  • Article   12.3 Administrative Proceedings 8
  • Chapter   13 ADMINISTRATION OF THE AGREEMENT 8
  • Article   13.1 Establishment of the Joint Committee 8
  • Article   13.2 Procedures of the Joint Committee 8
  • Article   13.3 Functions of the Joint Committee 8
  • Article   13.4 Establishment of Subcommittees, Working Groups and other Bodies 8
  • Article   13.5 Free Trade Agreement Coordinators 8
  • Chapter   14 DISPUTE SETTLEMENT 8
  • Article   14.1 Objective 8
  • Article   14.2 Scope 9
  • Article   14.3 Mutually Agreed Solution 9
  • Article   14.4 Consultations 9
  • Article   14.5 Good Offices, Conciliation or Mediation 9
  • Article   14.6 Choice of Forum 9
  • Article   14.7 Qualification of Arbitrators 9
  • Article   14.8 Request for the Establishment of an Arbitral Tribunal 9
  • Article   14.9 Terms of Reference of the Arbitral Tribunal 9
  • Article   14.10 Composition of the Arbitral Tribunal 9
  • Article   14.11 Function of Arbitral Tribunals 9
  • Article   14.12 Proceedings of Arbitral Tribunals 9
  • Article   14.13 Suspension and Termination of Proceedings 9
  • Article   14.14 Implementation of Report 9
  • Article   14.15 Compensation and Suspension of Benefits 9
  • Article   14.16 Time Frames 9
  • Article   14.17 Remuneration and Expenses 9
  • Annex 14-A   RULES OF PROCEDURE 9
  • Annex 14-B   CODE OF CONDUCT 10
  • UNDERTAKING IN THE MATTER OF PROCEEDING (TITLE) 10
  • Chapter   15 FINAL PROVISIONS 10
  • Article   15.1 Annexes, Appendices and Footnotes 10
  • Article   15.2 Amendments 10
  • Article   15.3 Entry Into Force 10
  • Article   15.4 Duration and Termination 10
  • Article   15.5 Amendments to the WTO Agreement 10
  • ANNEX I   RESERVATIONS FOR EXISTING MEASURES SCHEDULE OF THE STATE OF ISRAEL 10
  • ANNEX II   RESERVATIONS FOR FUTURE MEASURES. SCHEDULE OF THE STATE OF ISRAEL 12
  • ANNEX I   RESERVATIONS FOR EXISTING MEASURES. SCHEDULE OF VIET NAM 17
  • ANNEX II   RESERVATIONS FOR FUTURE MEASURES. SCHEDULE OF VIET NAM 21
  • Appendix II-A   Viet Nam 26