U.S.-Israel Free Trade Agreement

The United States-Israel Free Trade Agreement is the first free trade agreement the United States ever signed. It was implemented by the United States-Israel Free Trade Area Implementation Act of 1985 (Pub. L. 99-47) and entered into force September 1, 1985. Almost all merchandise trade between the two countries is duty-free.

Origin rules. The Israel FTA uses a value-content rule rather than the modern tariff shift approach. To qualify:

1. The article must be the growth, product, or manufacture of Israel
2. At least 35% of the appraised value must be Israeli content (cost of materials produced in Israel plus direct costs of processing) — up to 15 percentage points may be U.S.-origin materials
3. The article must be imported directly from Israel
4. The article must have undergone a substantial transformation in Israel

Qualifying Industrial Zones (QIZs). A 1996 amendment extended FTA-like duty-free treatment to goods produced in designated industrial parks in Egypt and Jordan, provided minimum percentages of Israeli content. QIZ goods enter duty-free under the Israel FTA's rules.

West Bank and Gaza. Trade Act of 1996 provisions allow duty-free entry under the Israel FTA for goods produced in the West Bank, Gaza Strip, or designated QIZs, subject to specific marking and origin requirements.

Certification. No prescribed form — the original "U.S.-Israel Certificate of Origin" (Form A) is the traditional document, though importers may use any sufficient documentation. Claims use the "IL" Special Program Indicator on CBP Form 7501.