Inside the Trade and Industry Office - Civil Administration Quarterly (October 2010)

State of Israel

Civil Administration of Judea & Samaria

Beit El

Tel: 02-9977744

Fax:02-9977055

E-mail: [email protected]

Civil Administration

Quarterly

INSIDE THE TRADE AND

INDUSTRY DEPARTMENT

October 2010

Quarterly Welcoming………………………………..…………………..2 Brief History of the Civil Administration …………...…..………...……..3 Overview of the Economics Branch…………….……….………...…...….4 Civil Administration Structure…………………….……………..…..…5 Economics Branch and Staff Officer Layout..………...…………....……...6 The Trade and Industry Staff Officer ……………………....…...….…...7 Units and Functions …………………………………….…….............8 Frequently Asked Questions………………………………...………...12 Contact Information …………………………….……...…….……..13 Appendixes ……………………………………………..…..……..14

C I V I L A D M I N I S T R A T I O N Issue 2, Page 1

October 2010

TABLE OF CONTENTS

Dear Friends, This publication, the second in the Civil Administration Quarterly series, focuses on the Trade and Industry Office. The Quarterly series strives to provide crucial transparency to the ongoing activities of the Civil Administration in the West Bank. We hope this report will illuminate and clarify the issues relating to trade and industry in the region. The mission of the Trade and Industry Office is to coordinate economic relations and support development in the West Bank. The office promotes and strengthens close professional contacts in the economic sphere in accordance with international law and agreements signed between Israel and the Palestinian Authority. Primarily, this publication deals with the three main functions of the Trade and Industry Office in the West Bank. The first section focuses on the coordination efforts crucial to fluid and efficient trade-relations involving import and export activities from overseas. The second section involves the facilitation of importing potential dual-use items and materials into the areas under Palestinian control. These products are made for civilian use but could be used for belligerent actions. The section explains the procedures and steps necessary to attain the license needed to transfer such items. The final topic discussed in the report is the approval and promotion processes for industrial and eco-nomic projects in area C. The Civil Administration views economic growth and development in the West Bank as paramount for security and stability. We are committed to fostering the positive economic trends currently being experienced in the West Bank and will continue to act collaboratively with all parties in the region in these endeavors.

Warmest Regards,

Lt. Col Avi Shalev Head of International Organizations and Foreign Affairs Branch


October 2010

QUARTERLY WELCOME

.


The Civil Administration was established by the

Government of Israel in 1982 with the purpose of administering and coordinating civilian and humani-tarian needs in Judea and Samaria. The Civil Administration functions under the aus-pices of the Coordinator of Government Activities in the Territories (COGAT), which is a unit within the Ministry of Defense in Israel. COGAT’s head-quarters are in Tel Aviv, headed by Major General Eitan Dangot. The Civil Administration, headquartered in Beit El, incorporates representatives of the Israeli Govern-ment Ministries and IDF personnel who work in Judea and Samaria headed by Brigadier General Yoav (“Poli”) Mordechai. The Civil Administra-tion operates 8 District Coordination and Liaison offices (DCL) in each of the major districts of the West Bank including Jenin, Nablus, Tulkarm-Qalqilyah, Ramallah, Jerusalem (periphery), Bethle-hem, Hebron, and Jericho. DCL’s give the Civil Ad-ministration the capability to care for the wellbeing of the population, including Israelis and Palestini-ans, providing a range of civilian services in Judea and Samaria

The Civil Administration, with civilian and army , Is-raeli and Palestinian personnel, is composed of various branches and authorities of the Israeli Government. These departments are listed in page 6 under Structure of the Civil Administration. These branches, known as Staff Offices, coordinate their work with the relevant parties in the region such as the Palestinian Authority, international organizations, the IDF, and the Govern-ment of Israel to manage civilian needs in the West Bank. As a result of the Israeli-Palestinian interim agreement on the West Bank and Gaza Strip signed in 1995, three temporary distinct administrative divisions in Judea and Samaria known as areas A, B, and C were created. Israel retains its overriding authority in Area “C” of the West Bank. Most civil authorities in Areas “A” and “B” have been handed over to the Palestinian Authority. In these areas, close coordination exists between both parties. The Civil Administration acts as a liaison between the Palestinian and Israeli authorities to synthesize com-mon interests. Areas “A” and “B” constitute 40% of the West Bank, while Area “C” is the remaining 60%. Only 150,000 Palestinians live in Area “C”.


October 2010

BRIEF HISTORY

Overview of the Economics Branch

The Economics Branch is one of the seven branches

in the headquarters of the Civil Administration. The branch’s mission is to coordinate and assist economic activity and development in the West Bank. In this capacity, the branch serves as a point of contact for the Palestinian and Israeli business communities and representatives in the West Bank. The Head of the Economics Branch serves as the ad-visor to the head of the Civil Administration on mat-ters relating to economic policy and development in the West Bank. The Brigadier General has made eco-nomic advancement an important goal for the Civil Administration in 2010. The Economics Branch plays an crucial role in influ-encing security policies set by the IDF Central Com-mand. This is achieved mainly by balancing security concerns with humanitarian and economic needs and the interests of the Palestinian and Israeli business communities. While security is essential to stability in the West Bank, access and movement are also critical for growth and development. With this in mind, the Economics Branch promotes confidence building measures which serve the economy wellbeing of the West Bank. Exam-ples of the measures promoted by the Economics Branch and implemented recently by the IDF and Civil Administration in the West Bank include:

♦ Extended operating hours of commercial termi-nals and the Allenby border crossing point.

♦ Entrance for Arab-Israelis to the West Bank cities and towns.

♦ Increased work permit quotas to 25,000 and ex-tended validity from three months to over six months.

♦ Exclusive expanded access to Israel awarded to over six hundred prominent Palestinian business-men and their close relatives by way of special business cards.

The branch initiates field visits and professional work-shops for Palestinian businessmen and professionals in Israel. These include guided visits to Israeli sea-ports, seminars held with top ranking Economic Ministry offi-cials, and promoting a Palestinian business presence in Israeli trade fares and exhibitions. The Economics Branch recently initiated meticulous staff work which lead the IDF Central Command to lift the ban on use of explosives in Palestinian quarries in the West Bank in 2009. This substantial shift in security policy facilitated growth in the quarry and building sec-tors in the Palestinian economy. The Economics Branch serves as a point of contact for the Palestinian Authority and economic institutions who seek to promote regional economic projects. Promoting large scale regional projects (such as industrial zones) necessitates close coordination with Israel on matters related to infrastructural development, environmental issues, and other services. The activities of several joint Israeli-Palestinian commit-tees, such as transportation, tourism, and agriculture are overseen by the Economics Branch. These committees play a pivotal role in safeguarding mutual economic in-terests, synchronizing policies and exchanging profes-sional information. The Economics Branch also coordi-nates five civilian staff offices which represent ministries in the government of Israel. These offices include the Trade and Industry Office, the Agricultural office, Transportation office, Labor and Employment office, and Telecommunications office.


October 2010

ECONOMICS BRANCH

Civil Administration Interactions Governmental Structure

Civilian Office Military Office

Structure of the Civil AdministrationStructure of the Civil Administration

Spokesperson

Head of the Civil Administration

Comptroller Treasury Deputy Head

Public Relations Officer

Gaza Strip Gaza Strip Coordination Coordination & &

Liaison Liaison

IDF IDF

Chief of StaffChief of Staff

Prime MinisterPrime Minister

Coordination Coordination & & Liaison Liaison

SchoolSchool

Computers and Computers and Technology Technology

UnitUnit

Head of COGATHead of COGAT

Minister of DefenseMinister of Defense

88 Civil District Civil District

Liaison OfficesLiaison Offices

Head of the Head of the

Civil Civil

AdministrationAdministration

Palestinian

population

International

organizations,

NGO’s and foreign

representatives

Civil

Administration

IDF, police,

and security

authorities

Israeli

Government

offices

Israeli

settlement

authorities

Business

Community

In Israel and the

West Bank

Palestinian

Authority


October 2010

STRUCTURE

Security

Coordination

Branch

Infrastructure

Branch

Abandoned Lands

Caretaker

Lands Office

Natural Parks and

Reserves Authority

Archeological Affairs

Office

Ministry of Defense

Office

Measurements Office

Appraisal Office

Electricity Affairs

Office

Planning Department

Inspection Unit

Economics

Branch

Agriculture Office

Trade and Industry

Office

Transportation Office

Labor and Employment

Office

Telecommunications

Office

Operations

Branch

Health Affairs

Coordinator

Population Registry

Advisor for

Palestinian Affairs

International

Organizations

Branch

Water Affairs Office

Welfare Affairs Office

Environmental Affairs

Office

Crossings

Branch

Labor and Employment

Office

Transportation Office

Telecommunications Office

Head of the Economics Branch

Economics Call Center Officer

Deputy and Economic Analyst

Trade and Industry Staff Officer

Agricultural Office


October 2010

BRANCH STRUCTURE

Assistant

Foreign Trade

Coordinator Economic Project

Coordinator Dual-Use

Coordinator


October 2010

TRADE AND INDUSTRY

Trade and Industry Staff Officer

The Trade and Industry Office is located in the Civil

Administration headquarters in Beit El. The office is one of 23 staff offices that work to fulfill civilian needs in the West Bank. The office is the representative of the Israeli Trade and Industry Ministry in the West Bank. The office coordinates economic and trade relations be-tween Israel and the Palestinian Authority. The legal framework for economic relations stems from the bilat-eral economic agreement signed between Israel and the PLO in April 1994. The Protocol on Economic Rela-tions* sets the guidelines for mutual economic coopera-tion. The office works in close coordination with the Pales-tinian Ministry of National Economy on issues relating to mutual economic interests, foreign trade, and indus-trial development. The office’s goal is to promote eco-nomic growth in the West Bank as well as relations be-tween the Israeli and the Palestinian entrepreneurs. The Staff Officer for Trade and Industry at the Civil Administration is Mr. Fredy Avivi, who has been work-ing in the West Bank since 1982. Mr. Avivi was pro-moted to the position of Staff Officer in the year 2000 and is trained in the fields of economics and statistics. In addition, he is proficient in Hebrew, Arabic, English, French, and Italian. Mr. Avivi coordinates the Civil Administration commit-tee for economic projects, a forum headed by the Dep-uty Head of the Civil Administration, an officer with the rank of a colonel. The committee oversees the process of approving projects sent to the Civil Administration for principal approval prior to presenting it to the plan-ning committee for permitting.

* http://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Gaza-Jericho+Agreement+Annex+IV+-+Economic+Protoco.htm

Among Mr. Aviv’s responsibilities, he oversees the function of three units in the office: the Foreign Trade Coordinator headed by Mr. Eli Hazan, the Dual-Use Coordinator headed by Mr. Yosef Fadli, and the Indus-trial Economic Project Coordinator headed by Mr. Gad Avidor.

The Staff Officer for Trade and Industry is the point of contact for parties who seek to promote economic and industrial projects or to advance issues relating to the Palestinian business community in the West Bank. Mr. Avivi meets on a regular basis with Palestinian Authority officials, Palestinian and Israeli entrepreneurs and promi-nent members of the business community. He also works with representatives of international organizations promoting projects and development in the West Bank.

Foreign Trade Coordinator

The Foreign Trade Coordinator, Mr. Eli Hazan, is

responsible for coordinating Palestinian import and export through Israeli sea, air and land ports accord-ing to the economic agreements signed between Israel and the Palestinian Authority (Israeli-Palestinian Pro-tocol on Economic Relations). This responsibility has been delegated to the Coordinator by the Israeli Min-ister of Trade and Industry.

The coordination effort includes issuing import li-censes to Palestinian traders, registering private Pales-tinian commercial companies as well as individual im-porters in the Israeli customs database, and issuing ex-emptions from quality standard requirements set by the Israeli Ministry of Trade and Commerce. Weekly meetings are held at the offices of the Civil Ad-ministration between the unit coordinator and official representatives from the Palestinian Ministry of Na-tional Economy. At these meetings Palestinian Ministry requests are handed over to the coordinator and gener-ally are approved within 24 to 48 hours.

Standard requirement exemptions are granted for do-nations made to the Palestinian Authority, imports for export purposes, imports of goods used in production processes, personal use, spare-parts for imported goods, medical equipment, computers, audio-video equipment, electric musical instruments and photo-coping machines. Furthermore, the coordinator ap-proves exemptions from Hebrew labels for products sold in the Palestinian market. Certain goods necessitate an expert opinion which until recently were received from the Commissioner of Stan-dardization in the Israeli Ministry of Trade and Indus-try. This process sometimes delayed a request by a few weeks. Therefore the Civil Administration has recently recruited an expert engineer in this field who will en-able the unit to expedite the process of approval to four working days.

In cases where the imported merchandise does not meet Israeli standards, the goods are bonded in an Israeli port. The coordinator assists with the release of the bonded goods by serving as a point of contact for the Palestinian Ministry of National Economy. The procedure includes the release of the bonded goods, allowing the Palestinian importer in the West Bank the opportunity to meet the required standards. Once standards are met, the coordi-nator will transfer a formal letter to the Israeli or Pales-tinian customs agent acting on behalf of the importer indicating that the Palestinian Ministry of Economy has verified that the imported goods meet the required stan-dards. In 2009 the coordinator granted 289 import licenses, fa-cilitated 1199 exemptions from standards and labels, and processed 405 requests for the release of bonded goods. Furthermore, an additional 632 requests submitted by the Palestinian Ministry of National Economy for the registration of new Palestinian importers were processed by the coordinator and added to the Israeli custom regis-ter. Import licenses are valid for three to six months. Im-porters can extend their licenses based on available quota. Mr. Hazan joined the Civil Administration in 2002 and was promoted to the position of the Coordinator for Foreign Trade in 2003. Prior to his position in the Civil Administration, Mr. Hazen worked in the private sector in the tourism industry.


October 2010

FOREIGN TRADE

c

p C I V I L A D M I N I S T R A T I O N Issue 2, Page 9

October 2010

DUAL-USE

The Dual-Use Coordinator

The Dual-Use Coordination Unit was established in the Staff Office for Trade and Industry in April 2009. The activities of the unit follow the authority granted to the Staff Officer by the Ministry of Defense (MoD) in an official communiqué* signed on 5 February 2007. A military notice regarding the imports of dual-use items was also signed by the Head of the Civil Administration of Judea and Samaria in April 2005 and was updated sev-eral times thereafter. Many of the 55 items listed in the MoD communiqué are intended for civilian use but may potentially also be used for hostile purposes. The other items on the list are used overwhelmingly by the military. Three Staff Officers in the Civil Administration were granted the authority to deal with the items listed in the MoD communiqué. Items 30-55 on the list include: steel pipes used to manufacture missiles, medical or scientific analyzers used to test chemicals in the production of ex-plosives, industrial machinery potentially used in arms production; and visual-optical instruments such as night vision. The coordinator for dual-use items, Mr. Yosef Fadli, is the point of contact for importers who seek to receive a license to import these items into the West Bank. The request for such a license must include the following documents submitted to the coordinator:

♦ A formal letter stating the intended uses and details regarding the end user of the product

♦ Product specification ♦ Invoice or pro forma invoice.

Once the necessary details have been submitted to the coordinator, the request is sent for a security review. The Civil Administration generally responds to re-quests within 45 days. In certain cases (such as trans-fer of piping) coordination for the transfer of the goods approved in the license must be facilitated by the coordinator directly. Please refer to Appendix I for the details required for coordination requests to be processed. In the last eighteen months, the coordinator has proc-essed over 177 requests for licenses to import goods listed in the dual-use document. 128 requests were ap-proved and licensed, 19 were denied, and 30 are cur-rently being processed. Of the 177 requests, 18 are requests for transfer of pipes for water projects. Mr. Fadli joined the Civil Administration in 2009 as the Coordinator of the Dual-Use unit. Mr. Fadli has a diploma in Industrial Management Engineering and is a retired IDF noncommissioned officer.

* The Staff Officer for the environment handles items 1-26, the Staff Offi-

cer for Telecommunications handles items 27-29, and the Staff Officer for

Trade and Industry handles items 30-55.

Coordination

(If Necessary)

Dual-Use Approval Process

Request Submitted

Coordinator Review

License Approved

Request Denied

Requests Processed for Import

Licenses for Dual-Use Products

April 2009- July 2010

Approved Denied Pending

128 30

19

10.7% 17% 72.3%

Industrial-Economic Projects Coordinator

The Industrial Economic Projects unit is responsible

for promoting projects submitted to the Civil Admini-stration by Palestinian and Israeli entrepreneurs. Pro-ject proposals include quarries, gas stations, wineries, industrial zones and structures situated in Area “C” in the West Bank. All requests to promote economic projects must be submitted to the coordinator in a formal meeting which takes place in the offices of the Civil Administration. Requests must include a project outline, a map indicat-ing the scope of the project, details regarding the land ownership and rights, financial backing, and a business plan (only for quarries situated in public owned lands). Requests submitted by Palestinian entrepreneurs must include a formal recommendation from the Palestinian Authority. Once all project details have been ascertained, staff work is initiated by the coordinator. Staff work typically entails dispatching the project proposal for analysis to fellow staff officers in the Civil Administration. All staff work recommendations then are submitted by the staff officer for conditional approval in the Civil Administra-tion Committee for Economic Projects. The committee aims to promote a coherent development policy and minimize the amount of bureaucratic delays that could dissuade entrepreneurial efforts. The Committee for Economic Projects, headed by the Deputy Head of the Civil Administration, formulates a principle response to each request based on staff work , complete project details, and the professional opinion of its members. Once a conditional approval for the project has been received, the initiator can submit the request with formal plans to the Planning Department for permitting. Gad Avidor is the coordinator of the Economic Pro-jects unit and has held this position since 2008. Mr. Avidor has been working in the Civil Administration since 2001 and holds a Masters degree in Public Policy.


October 2010

ECONOMIC PROJECTS

Industrial Economic Project Ap-

proval Process

Initiator Submits

Request

Industrial Economics

Projects Unit

Staff Work

Principal Approval

Building

Permit

Project

Implementation

Economic

Projects

Committee

Planning

Department

Project Turned

Down

c

p C I V I L A D M I N I S T R A T I O N Issue 2, Page 11

October 2010

Civil Administration Policy Encourages Devel-

opment in the Palestinian Quarry Industry Palestinian quarries in Area “C” used explosives up until the outbreak of violence in the year 2000. The unstable security climate resulted in an IDF ban on the imports of explosives into the West Bank. The Economics Branch identified the needs and the sig-nificance of the quarry industry in the West Bank econ-omy. Using explosives dramatically increases the output of materials from the quarry. Quarry output is needed in the production of cement, sand and other building materials used in the Palestinian building industry. With this in mind, the branch initiated staff work which persuaded the IDF Central Command to lift the ban on use of explosives by Palestinian quarries. This substantial change in security policy, approved as of September 2009, has facilitated growth in the quarry and building sectors in the Palestinian economy. Since the lift of the ban, Palestinian quarries have already imported and used more than 200,000 kilograms of explosives in the Ramallah and Hebron districts. Today, regulations for transferring explosives into the West Bank are exactly the same for Israeli and Palestinian owned quarries. The transfer and use of explosives is closely regulated and monitored by the Civil Administra-tion in coordination with the IDF to prevent misuse of the explosives.

←

↓

↓

A Palestinian owned quarry, March 2010

PROMOTING THE QUARRY INDUSTRY

The Dual-Use Coordinator Question: Where is the list of restricted dual-use prod-

ucts published?

Answer: The list for the restricted dual-use products is

published on the internet - exportctrl.mod.gov.il

(see - ד ‘ 1) Q: How does the applicant know that his request has

been received and processed?

A: The coordinator informs the applicant that his re-

quest has been received and processed. The appli-cant will receive a request number.

Q: How long does it take to receive a license?

A: An average of 4 weeks, or in exceptional cases up

to 8 weeks. Q: Can a license be issued for goods not yet pur-

chased?

A: Yes. Only a pro forma invoice is necessary as part

of the request process. Shipping the goods to the region can be promoted after the permit is re-ceived. Coordination can be arranged for a later date.

Q: Is the process for the transfer of dual-use goods to

the Palestinian Authority any different for Israelis?

A: No. The process of transferring dual-use products

to the areas under the authority of the Palestinian Authority is exactly the same for all individuals and firms, be they Palestinian or Israeli.

Q: Can you appeal if the request has been turned

down?

A: Yes. Appeals are received and processed by the staff

officer. If the appeal is denied, the request can be sent to COGAT for final review.

Q: For how long is the dual-use license valid?

A: The dual-use license is valid for 21 days. Extension

of the validity can be requested given delays in the transfer of goods.

Foreign Trade Coordinator Q: Can the applicant check the status of his or her re-

quest?

A: Yes. The applicant can check the status of his or her

request by contacting the Coordinator of the For-eign Trade - Mr. Eli Hazan.

Q: From whom does the applicant receive the import

license number?

A: The applicant receives the import license number

from the Palestinian Ministry of National Econ-omy.

Economic Projects Division

Q: What is the system used in the Economics Projects

Committee to award principal approval?

A: The system used for awarding projects is committee

review. The committee aims to promote a coherent development policy and minimize the amount of bureaucratic delays that could dissuade entrepreneu-rial efforts.


October 2010

F.A.Q.

Contact Information:

Trade and Industry Office

Office Hours:

Sunday-Thursday

08:30-16:00

Telephone:

02-997-7030 / 02-997-7031

Fax:

02-997-7713

E-Mail:

[email protected]

Address: Staff Office for Trade and Industry Office


P.0. Box 34,

Beit El, Israel

Secretary Orly Aharon 02-997-7030

[email protected]

Staff Officer of the

Trade and Industry Office

Fredy Avivi 02-997-7031

[email protected]

Coordinator of the

Foreign Trade Division Eli Hazan

02-997-7720 [email protected]

Head of the Economic Projects Division

Gad Avidor 02-997-7385

[email protected]

Coordinator of the

Dual-Use Division Yosef Fadli 02-997-7306

[email protected]


September 2010

CONTACT INFORMATION

Contact Information:

Economics Branch

of the Civil Administration

Office Hours:

Sunday-Thursday

08:00-18:00

Telephone:

02-997-7093

02-997-7010

02-997-7772

Fax:

02-997-7713

E-Mail:

[email protected]

Dual -Use Coordination Request


October 2010

APPENDIX I

Further Reading and Links:

COGAT Website

Cogat.idf.il

The Israeli Ministry of Industry, Trade, and Labor

http://www.moital.gov.il/NR/exeres/B0B48981-357D-446F-AFAC-91A358E93C87.htm

Israeli-Palestinian Protocol on Economic Relations

http://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Gaza-Jericho+Agreement+Annex+IV+-+Economic+Protoco.htm

Israel sets up trial program to expedite PA export process

http://www.jpost.com/Israel/Article.aspx?id=170599


October 2010

APPENDIX II

Documents

Inside the Trade and Industry Office - Civil Administration Quarterly (October 2010)