10.
Sector: Postal and Courier Services Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain any measure with respect to postal and courier services for any item below 500 gram. Existing Measures:
11.
Sector: Technical Testing and Analysis Services Water Transmission Services Incidental to Forestry and Logging Non-Human Health Services Exploration and Exploitation, Use and Sale of Hydrocarbons, Minerals, Stone and Aggregates Communications Transportation Energy, including the Natural Gas, Oil and Electricity Sub-Sector: Industry Classification: Obligations Prohibition of Performance Concerned: Requirements (Article 6) Description: 1. Israel reserves the right to adopt or maintain any measure, excluding measures involving subparagraph 1(h) of Article 6 of this Agreement, with regard to the granting of concessions or licenses in the sectors listed in the "Sector" element, except energy sector. 2. Israel reserves the right to adopt or maintain any measure with regard to the granting of concessions or licenses in the energy sector. Existing Measures:
12.
Sector: All Sub-Sector: Privatization Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 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 of Japan or their investments; (b) impose limitations on the ability of investors of Japan or their 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, "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 governmental entities, is liberalized to those other than the designated enterprises or governmental entities, or in the event where such designated enterprises or governmental entities no longer operate on a non- commercial 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.
13.
Sector: All Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Description: Israel reserves its right to adopt or maintain measures 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. Existing Measures:
14.
Sector: Communications Sub-Sector: Satellite Broadcasting Cable Broadcasting Television and Radio Broadcasting Satellite Telecommunications Services Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. Members of the boards of directors and position holders in a licensee of satellite broadcasting, cable broadcasting, television broadcasting or radio broadcasting are required to be nationals of Israel who are residents of Israel in some cases with security clearance and are subject to approval by the relevant regulator. 2. Israel reserves the right to adopt or maintain any measure with regard to licensing of satellite communications facilities for the transmission of voice, data, text, sound and full motion picture video between network termination points and with regard to licensing of services for the transmission of television and radio programs to the consumer by a satellite system. Existing Measures:
15.
Sector: All Sub-Sector: Subsidies and Grants Industry Classification: Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain any measure with regard to subsidies or grants, including a government-supported loan, guarantee or insurance. Existing Measures: Law for Encouragement of Research, Development and Technological Innovation in Industry, 1984 Law for Encouragement of Capital Investments, 1959 Law for Encouragement of Capital Investments in Agriculture, 1980
16.
Sector: All Sub-Sector: Industry Classification: Obligations Most-Favored-Nation Treatment Concerned: (Article 3) Description: Israel reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement or arrangement regarding: (a) aviation; (b) maritime matters, including search and rescue and salvage; (c) co-production and distribution in film, video and television; (d) mutual recognition in different fields; or (e) cooperation in aeronautics and space. Existing Measures:
17.
Sector: Defense Industry Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain any measure with regard to the defense industry sector. Existing Measures:Defense Export Control Law, 2007 Defense Corporations Law, 2005
18.
Sector: Communication Services Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain certain safeguards with regard to essential communication services, as defined in the Communication Law (Telecommunications and Broadcasting), 1982. Such safeguards may include measures dealing with: (a) control, means of control or the ability to appoint a position holder in a licensee; (b) location of management, main operations and center of business; and (c) members of the board of directors, position holders and certain officers. Existing Measures:Government Companies Law, 1975 Communication Law (Telecommunications and Broadcasting), 1982 Telecommunications Order (Determination of Essential Service Provided by "Bezeq" the Israel Telecommunication Corp, Ltd.), 1997
19.
Sector: All Sub-Sector: Industry Classification: Obligations Prohibition of Performance Concerned: Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. Members of the board of directors, position holders and certain officers in public bodies as defined in Security of Public Bodies Law, 1998, and persons in certain positions with cyber security responsibilities, are required to be nationals or permanent residents of Israel and to hold appropriate security clearances. 2. Israel reserves the right to demand the imposition or enforcement of the purchase or use of goods produced or services provided in its Territory, when the demand is mainly related to cyber security and is in conformance with national cyber security policy. Existing Measures: Security of Public Bodies Law, 1998 Government Decision 2443 of 2015 Government Decision 2444 of 2015
20.
Sector: Agriculture Sub-Sector: Dairying including Cattle, Goats and Sheep Dairying Poultry and Eggs Honey including Beekeeping Groundnuts Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Description: Israel reserves the right to adopt or maintain any measure relating to agriculture sectors listed in the "Sub-Sector" element. Existing Measures:
21.
Sector: Mining including Phosphates Mining, Quarrying and Services Incidental to Mining and Quarrying Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain any measure with regard to mining including phosphates mining, quarrying and services incidental to mining and quarrying. Existing Measures: Mining Ordinance
22.
Sector: Energy Sub-Sector: Gas including Natural Gas Oil Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. Israel reserves the right to adopt or maintain any measure with regard to the natural gas sector and to essential services in the oil sector. 2. Israel may require a petroleum right holder, as defined in the Oil Law, 1952, to supply certain amount of oil or oil products for domestic consumption and usage. 3. Israel reserves the right to adopt or maintain any measure involving national treatment or performance requirements, with regard to oil distillates and oil refineries and with regard to pipeline transport of oil and natural gas including crude or refined oil and oil products. 4. Israel reserves the right to adopt or maintain any measure with regard to storage of liquids or gases and bulk storage services of liquids (oil or liquefied gas) or gases and with regard to oil and gas exploration and production. Existing Measures: Government Decision 442 of 2013 Government Decision 476 of 2015 Government Decision 1465 of 2016 Natural Gas Sector Law, 2002 Gas Law (Safety and Licensing), 1989 Oil Law, 1952 Oil Supervisor's Guidelines for Licensing of Onshore Oil Exploration
23.
Sector: Energy Sub-Sector: Liquefied Petroleum Gas (LPG) Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. Nationality and residency of Israel are required for a natural person applying for licensure as a gas supplier, gas agent or a gas technician/engineer. 2. Members of the board of directors, position holders and certain officers in an LPG licensed enterprise are required to be nationals of Israel who are residents of Israel, in some cases with security clearance. 3. Foreign ownership in an LPG licensed enterprise may be restricted. 4. Foreign LPG technicians may be subject to time limited license. 5. Israel reserves the right to adopt or maintain any measure involving performance requirements, with regard to LPG marketing and exporting. Existing Measures: Gas Law (Safety and Licensing), 1989 Natural Gas Sector Law, 2002
24.
Sector: Energy Sub-Sector: Electricity Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. A licensee as a supplier of an electricity service who provides an essential service, as defined in the Electricity Market Law, 1996, shall be subject to the following conditions: (a) the licensee shall be controlled by nationals of Israel who are residents of Israel; (b) the maximum rate of means of control in the licensee to be held, directly or indirectly, by non-residents of Israel, is subject to a determination by the Minister of National Infrastructures; and (c) members of the board of directors, position holders and certain officers in the licensee are required to be nationals of Israel who are residents of Israel, in some cases with security clearance. 2. Members of the board of directors, position holders and certain officers in an enterprise licensed to transmit, distribute, supply or produce electricity are required to be nationals of Israel who are residents of Israel, in some cases with security clearance. 3. Foreign ownership in an enterprise licensed to transmit, distribute, supply or produce electricity may be restricted. 4. Nationality of Israel is required for licensure of a natural person to transmit, distribute, supply or produce electricity. 5. Approval of guarantees of a foreign bank to a licensee for selling electricity is subject to the consideration of the Electricity Authority. Existing Measures: Electricity Market Law, 1996 The Electricity Authority Book of Standards
25.
Sector: Identity Management, Biometric Technology, Biometric Information and Databases Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: 1. Israel reserves the right to impose or enforce any of the following requirements, with regard to identity management, biometric technology and biometric information and databases: (a) to restrict the exportation or sale for export; (b) to purchase or use goods produced or services provided in its Territory; and (c) to transfer technology, a production process or other proprietary knowledge to a natural person or an enterprise in its Territory. 2. Members of the board of directors, position holders and certain officers in an enterprise responsible for identity management and/or managing of a biometric information and database may be required to be nationals or permanent residents of Israel, in some cases with security clearance and the enterprise may be required to be incorporated in Israel and have its main operations and center of business in Israel. Existing Measures:
26.
Sector: Treatment of Waste Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Israel reserves the right to adopt or maintain any measure with regard to treatment of hazardous waste and with regard to the development of domestic treatment capacities of waste. Existing Measures:
Schedule of Japan
1.
Sector: All Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Senior Management and Board of Directors (Article 7) Description: When transferring or disposing of its equity interests in, or the assets of, a state enterprise or a governmental entity, Japan reserves the right to: (a) prohibit or impose limitations on the ownership of such interests or assets by investors of the State of Israel or their investments; (b) impose limitations on the ability of investors of the State of Israel or their investments as owners of such interests or assets to control any resulting enterprise; or (c) adopt or maintain any measure relating to the nationality of executives, managers or members of the board of directors of any resulting enterprise. Existing Measures:
2.
Sector: All Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Senior Management and Board of Directors (Article 7) Description: In the event where the supply of telegraph services, postal services and betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes and minting and sale of coinage in Japan, which are restricted to designated enterprises or governmental entities, are liberalized to those other than the designated enterprises or governmental entities, or in the event where such designated enterprises or governmental entities no longer operate on a non- commercial basis, Japan reserves the right to adopt or maintain any measure related to those activities. Existing Measures:
3.
Sector: All Sub-Sector: Industry Classification: Obligations Most-Favored-Nation Treatment Concerned: (Article 3) Description: Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement involving: (a) aviation; (b) fisheries; or (c) maritime matters, including salvage. Existing Measures:
4.
Sector: All Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Description: National Treatment and Most-Favored- Nation Treatment may not be accorded to investors of the State of Israel and their investments with respect to subsidies. Existing Measures:
5.
Sector: Aerospace Industry Sub-Sector: Aircraft Industry Space Industry Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to the investment in aircraft industry and space industry. Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5
6.
Sector: Arms and Explosives Industry Sub-Sector: Arms Industry Explosives Manufacturing Industry Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to the investment in the arms industry and explosives manufacturing industry. Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5
7.
Sector: Energy Sub-Sector: Electricity Utility Industry Gas Utility Industry Nuclear Energy Industry Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to investment in the energy industry listed in the "Sub-Sector" element. Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5
8.
Sector: Fisheries Sub-Sector: Fisheries within the Territorial Sea, Internal Waters, Exclusive Economic Zone and Continental Shelf Industry JSIC 031 Marine fisheries Classification: JSIC 032 Inland water fisheries JSIC 041 Marine aquaculture JSIC 042 Inland water aquaculture JSIC 8093 Recreational fishing guide business Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to investment in fisheries in the territorial sea, internal waters, exclusive economic zone and continental shelf of Japan. For the purposes of this entry, the term "fisheries" means the work of taking and cultivation of aquatic resources, including the following fisheries related activities: (a) investigation of aquatic resources without taking such resources; (b) luring of aquatic resources; (c) preservation and processing of fish catches; (d) transportation of fish catches and fish products; and (e) provision of supplies to other vessels used for fisheries. Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Law for Regulation of Fishing Operation by Foreign Nationals (Law No. 60 of 1967), Articles 3, 4 and 6 Law concerning the Exercise of Sovereign Rights concerning Fisheries in the Exclusive Economic Zones (Law No. 76 of 1996), Articles 4, 5, 7, 8, 9, 10, 11, 12 and 14
9.
Sector: Information and Communications Sub-Sector: Broadcasting Industry Industry JSIC 380 Establishments engaged Classification: in administrative or ancillary economic activities JSIC 381 Public broadcasting, except cablecasting JSIC 382 Private-sector broadcasting, except cablecasting JSIC 383 Cablecasting Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to investment in broadcasting industry. Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Radio Law (Law No. 131 of 1950), Chapter 2 Broadcast Law (Law No. 132 of 1950), Chapters 5 and 8
10.
Sector: Land Transaction Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Description: With respect to the acquisition or lease of land properties in Japan, prohibitions or restrictions may be imposed by Cabinet Order on foreign nationals or legal persons, where Japanese nationals or legal persons are placed under identical or similar prohibitions or restrictions in the foreign country. Existing Measures: Alien Land Law (Law No. 42 of 1925), Article 1
11.
Sector: Public Law Enforcement and Correctional Services and Social Services Sub-Sector: Industry Classification: Obligations National Treatment (Article 2) Concerned: Most-Favored-Nation Treatment (Article 3) Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure relating to investment in public law enforcement and correctional services, and in social services such as income security or insurance, social security or insurance, social welfare, primary and secondary education, public training, health and child care. Existing Measures:
12.
Sector: Transport Sub-Sector: Air Transport Industry Classification: Obligations National Treatment (Article 2) Concerned: Prohibition of Performance Requirements (Article 6) Senior Management and Board of Directors (Article 7) Description: Japan reserves the right to adopt or maintain any measure with respect to investment in airports or airport operation services. For the purposes of this entry, the term "airport operation services" means the supply of air terminal, airfield and other airport infrastructure operation services on a fee or contract basis. Airport operation services do not include air navigation services. Existing Measures: