Import Duty on Aluminium in Israel: Your 2026 Guide for Jerusalem Businesses

Import duty on aluminium is a critical factor for businesses in Jerusalem and across Israel that rely on this versatile metal. Understanding the specific tariffs, regulations, and potential trade agreements affecting aluminium imports is essential for managing costs, ensuring supply chain stability, and maintaining competitiveness in 2026. This comprehensive guide is designed to provide Jerusalem-based businesses, manufacturers, and traders with the detailed information they need to navigate Israeli customs and import duties for aluminium and its various forms. We will cover HS codes, current duty rates, Value Added Tax (VAT), and relevant considerations for importing into Israel’s unique economic landscape.

Israel’s strategic position and its dynamic industrial sector mean that imported raw materials like aluminium play a vital role. Whether you are involved in construction, aerospace, automotive manufacturing, or consumer goods production within Jerusalem or elsewhere in the country, accurately assessing the import duty on aluminium is a non-negotiable part of your operational planning for 2026. This article aims to demystify the process, offering practical insights and resources to help you make informed decisions regarding your aluminium sourcing strategies. Stay ahead of potential cost increases and logistical hurdles by familiarizing yourself with these crucial import regulations.

Understanding Israeli Import Duties on Aluminium

Israel’s customs duties are regulated by the Ministry of Finance and implemented by the Israel Tax Authority. The system is largely based on the Harmonized System (HS) of commodity classification, meaning that the specific type of aluminium product determines its duty rate. Aluminium, categorized under Chapter 76 of the HS code, includes unwrought aluminium, bars, rods, profiles, sheets, plates, foil, tubes, and pipes. The import duty rates in Israel can vary significantly depending on the specific HS code, the country of origin, and whether preferential trade agreements are in effect. For Jerusalem businesses, understanding these specifics is key to controlling the final cost of aluminium products.

The primary purpose of import duties is to support domestic industries, generate revenue, and manage the balance of trade. While Israel has a relatively open economy, certain tariffs are in place to protect local producers. However, many raw materials and industrial inputs are subject to lower duties to encourage manufacturing and technological development. It is crucial for importers to verify the exact HS code for their specific aluminium product, as even slight variations can lead to different duty rates. Consulting official Israeli customs tariffs or a licensed customs broker is highly recommended for accurate assessment. The Israeli government occasionally adjusts these tariffs, so staying updated for 2026 is essential.

Harmonized System (HS) Codes for Aluminium in Israel

The Harmonized System (HS) is an internationally standardized system of names and numbers to classify traded products. The HS code for aluminium products typically starts with ’76’. For instance, unwrought aluminium might fall under HS code 7601, while aluminium bars, rods, and profiles fall under 7604. Aluminium plates and sheets are under 7606, and tubes and pipes under 7608. Each of these six-digit codes can be further expanded to eight or ten digits for national classification purposes in Israel, providing greater specificity. The correct HS code is fundamental for determining the applicable import duty rate and any associated taxes or levies in Israel.

For example, unwrought aluminium (HS 7601) might carry a lower duty rate than finished aluminium products like extruded profiles or specialized alloys used in high-tech industries. Jerusalem-based manufacturers need to precisely identify the HS code that accurately describes their imported aluminium goods. This often requires detailed product specifications, including alloy composition, temper, dimensions, and intended use. Failure to correctly classify aluminium can lead to penalties, delays, and unexpected costs. The Israel Tax Authority’s customs division provides resources and guidelines for HS code classification, and professional customs agents can offer expert assistance.

Current Import Duty Rates on Aluminium in Israel

As of early 2026, the import duty rates on aluminium in Israel are generally moderate, reflecting the country’s reliance on imported raw materials for its industrial sector. Basic unwrought aluminium (HS 7601) often faces very low or zero duty rates to support manufacturing. However, more processed forms, such as aluminium bars, rods, and profiles (HS 7604), might attract duties ranging from 0% to 5%, depending on specific product types and origin. Finished products or specialized alloys could potentially face higher rates, though Israel’s trade policies often aim to keep input costs competitive for its export-oriented industries.

It is crucial to consult the official Israeli customs tariff database for the most up-to-date rates. These rates can be subject to change due to government policy adjustments, trade negotiations, or specific economic initiatives. For businesses in Jerusalem, understanding these rates is vital for accurate cost forecasting. In addition to customs duty, imported goods are subject to Value Added Tax (VAT). The standard VAT rate in Israel is currently 17%. VAT is typically calculated on the sum of the CIF (Cost, Insurance, Freight) value of the goods, plus any applicable customs duties. This means the total landed cost of imported aluminium can be significantly higher than the base product price.

Impact of Trade Agreements on Aluminium Imports

Israel has signed numerous Free Trade Agreements (FTAs) with countries and economic blocs, including the United States, Canada, the European Union (EU), the European Free Trade Association (EFTA), China, South Korea, and others. These agreements often allow for reduced or eliminated import duties on goods originating from these partner countries. For businesses importing aluminium into Israel, identifying the country of origin and verifying if it has an FTA with Israel is paramount. For instance, aluminium sourced from a country with an FTA might enter Israel duty-free or at a substantially lower rate compared to sourcing from a non-partner country. This can provide a significant competitive advantage.

To benefit from preferential tariff rates under an FTA, importers must provide proof of origin, typically in the form of a Certificate of Origin or a declaration by the exporter that meets the specific requirements of the relevant trade agreement. These requirements can be stringent and may involve detailed information about the production process to ensure the goods qualify as originating from the partner country. Companies in Jerusalem looking to import aluminium should proactively investigate the FTAs available based on their suppliers’ locations. This due diligence can lead to substantial cost savings and enhance the overall efficiency of their supply chain operations in Israel for 2026 and beyond.

VAT and Other Levies on Imported Aluminium

Beyond the basic import duty, the most significant charge on imported aluminium in Israel is Value Added Tax (VAT). The standard VAT rate stands at 17%. This tax is levied on the total value of the imported goods, which includes the purchase price, shipping costs, insurance premiums, and any customs duties paid. For example, if you import aluminium worth ₪10,000, with ₪500 in shipping and insurance, and a 5% duty of ₪525 (calculated on the total cost + duty), the VAT base would be ₪11,025. The VAT payable would then be 17% of ₪11,025, amounting to approximately ₪1,874. VAT is usually collected by customs authorities at the time of import clearance. For registered businesses in Jerusalem, this VAT paid on imports can often be reclaimed as an input tax credit against their VAT liability on sales, effectively neutralizing its cost impact, provided the aluminium is used for taxable business activities.

In addition to customs duty and VAT, other charges might apply in specific circumstances. These could include excise taxes on certain luxury goods (though less common for raw materials like aluminium), or anti-dumping duties if imported aluminium is found to be sold below fair market value, causing injury to domestic producers. Environmental levies or fees might also be introduced. It is essential for importers to be aware of all potential charges to avoid surprises. The Israel Tax Authority is the primary body responsible for assessing and collecting these taxes and duties. Thorough planning and consultation with customs experts are recommended to ensure all applicable charges are accounted for, especially when dealing with large volumes of aluminium imports into Jerusalem.

Sourcing Aluminium Ethically and Efficiently

For businesses in Jerusalem aiming for sustainable and responsible sourcing, considerations beyond just duty rates are increasingly important. Ensuring that the imported aluminium is produced ethically, with minimal environmental impact and fair labor practices, is becoming a key differentiator. Some international standards and certifications focus on sustainable aluminium production. While direct import duties may not directly reflect these ethical considerations, suppliers who can provide such certifications might align better with corporate social responsibility goals. Furthermore, choosing suppliers in countries with strong FTAs with Israel can ensure both cost-effectiveness and compliance with trade regulations, streamlining the import process.

Logistics and supply chain management are also critical for the efficient import of aluminium. Factors such as reliable shipping routes, efficient warehousing, and timely customs clearance directly impact the availability and cost of materials for Jerusalem-based manufacturers. Working with reputable freight forwarders and customs brokers who have expertise in the Israeli market can significantly smooth the process. Considering the total landed cost, including freight, insurance, duties, VAT, and any broker fees, provides a true picture of the economic viability of importing aluminium from different sources. Strategic planning for 2026 should encompass these operational efficiencies alongside tariff considerations.

Frequently Asked Questions About Import Duty on Aluminium in Israel

What is the typical import duty on aluminium in Israel for 2026?

Import duty on aluminium in Israel for 2026 typically ranges from 0% to 5% for basic forms like unwrought aluminium or profiles, depending on the specific HS code and country of origin. More complex or finished aluminium products may face higher rates. It’s essential to check the specific HS code and any applicable trade agreements for accurate rates.

How does VAT affect the cost of importing aluminium into Jerusalem?

VAT in Israel is 17% and is applied to the total import value, including the cost of the goods, shipping, insurance, and customs duty. While this increases the upfront cost, registered businesses can generally reclaim this VAT as an input tax credit against their sales VAT, minimizing its impact on their bottom line.

Are there preferential duty rates for aluminium imported into Israel from specific countries?

Yes, Israel has Free Trade Agreements (FTAs) with many countries and blocs, such as the US, EU, and China. If the aluminium originates from a country with an FTA, it may qualify for reduced or zero import duties. Proof of origin documentation is required to claim these preferential rates.

Where can I find the official HS codes and duty rates for aluminium in Israel?

You can find official HS codes and duty rates for aluminium in Israel through the Israel Tax Authority’s customs division resources. Consulting with a licensed Israeli customs broker is also highly recommended for accurate classification and up-to-date information on tariffs applicable to your specific aluminium products.

What is the role of the Israel Tax Authority in import duties?

The Israel Tax Authority is responsible for implementing and enforcing customs duties, VAT, and other levies on imported goods. They manage tariff schedules, oversee customs clearance, and ensure compliance with national regulations and international trade agreements for all imports entering Israel.

Conclusion: Strategic Aluminium Imports for Jerusalem Businesses

For businesses in Jerusalem and across Israel, navigating the landscape of import duty on aluminium in 2026 requires diligence, accurate information, and strategic planning. By understanding the specific HS codes for your aluminium products, staying informed about current duty rates, leveraging preferential tariffs under relevant trade agreements, and accounting for VAT and other charges, you can effectively manage your import costs. The Israeli Tax Authority provides the framework, but proactive research and consultation with customs experts are key to optimizing your supply chain. Prioritizing ethical sourcing and efficient logistics further enhances the overall value and sustainability of your operations. With the right approach, importing aluminium can remain a cost-effective and reliable component of your business success in Israel’s thriving industrial and technological sectors.

Key Takeaways:

Accurate HS code classification is fundamental for correct duty assessment.
Israel’s Free Trade Agreements offer significant duty reduction opportunities.
VAT at 17% is applied, but often reclaimable by registered businesses.
Consulting the Israel Tax Authority and customs brokers is crucial for compliance.
Strategic sourcing and logistics are as important as tariff rates.

Ready to optimize your aluminium imports? Consult with a licensed Israeli customs broker today to ensure you are leveraging all available trade agreements and correctly classifying your shipments for duty and VAT savings in 2026.