Israel and the United States enjoy a close economic and strategic partnership. In addition, many in the United States may want to either immigrate to Israel or pursue dual citizenship. Whatever the case, some might be wondering how one would go about importing a used vehicle from the United States into Israel.
Below, we’re going to cover everything you need to know. Most importantly, we’ll discuss the various restrictions that Israel has placed on the import of used vehicles. Especially as they concern those who are immigrating to the country. In addition, we’ll also discuss the process for clearing customs, import duties, and taxes. And everything else involved in the process. All told, you’ll learn everything you need to know about importing used or salvaged vehicles from the United States into Israel.
Israeli Restrictions on the Import of Used Vehicles
Generally speaking, the state of Israel places fairly rigorous restrictions on the import of used vehicles into the country. Unless you are an immigrant to the country, a used vehicle is only permitted to be up to two years old, (based upon model year) to be imported into the country.
If you’re immigrating to Israel, there is no restriction placed upon the age of a vehicle that you’re importing. However, there are still several other restrictions of which you’ll need to be aware. First and foremost, you will want to ensure that you have a letter from a licensed Israeli garage stating that this garage will provide service for the used vehicle that you’re importing.
More importantly, though, you’ll want to ensure that your vehicle has been deemed acceptable for import by Israeli authorities. To do this, you will have to consult a list of permissible makes and models that are furnished by Israel’s Ministry of Transport. To consult this list, please visit this website. Do note, however, that the list is only offered in Hebrew.
Used vehicles that meet the United States’ Federal Motor Vehicle Safety Standards are on the whole permissible for import. However, a few modifications may be necessary before shipping your used vehicle to Israel. First, Convert the speedometer to kilometers-per-hour (KPH). Second, convert the vehicle’s signal to meet European standards.
Should you have any questions about the above restrictions, please consult the website for Israel’s Ministry of Transport, which is here offered in English.
Purchasing Used Vehicles at U.S. Online Car Auctions
It’s long been known that used car auctions are the best way to get an incredible deal on a used or salvaged vehicle. However, these auctions have typically only been available to those in possession of a dealer’s license. Not anymore! That’s because online car auctions give individuals and importer-exporters the opportunity to participate in certain dealer-only auctions by listing vehicles from certain dealer-only auction houses on their site so that you get access to this inventory at great prices.
Because of this, one can stand to save an extraordinary amount of money on a used or salvaged vehicle. Even better, using online car auctions is simple! You only need to create an account and make a deposit to establish your maximum bid. This deposit will typically be 10% of whatever your maximum bid can be, so a small deposit of only $400 will allow you to bid up to $4,000 on a used or salvage vehicle!
Once you’ve set up your account, the real fun begins. Without leaving your home or office, you can bid on an extensive database of used car auctions taking place across the country. In addition, an auction agent or broker will be assigned to you, offering advice on everything from choosing the right car to setting a bidding strategy.
In the end, if you use online car auctions, you’ll discover what many others have. They’re simply the best way to find the exact car you need at a price that cannot be beaten.
Shipping a Used or Salvage U.S. Car to Israel
Given the close economic ties between the United States and Israel, finding a port from which you can ship your used or salvage vehicle should be a painless affair. The only real decision that you’ll have to make is your shipping method. You can, of course, opt for container shipping, but there is another, cheaper option of which you should be aware.
This other option is known as RORO shipping, wherein RORO stands for “roll-on roll-off”. This refers to the method by which your used vehicle will be loaded and unloaded by the ship, i.e. it will be rolled onto the ship at the departure port and then rolled off when it arrives in Israel. Given that this involves much less labor than container shipping, the savings are significant. The only drawback is that without the protection of a container, the chance of damage occurring in transit is greater. That said, the risk is minuscule.
There are several ports along the Israeli coastline, with two serving as the country’s major container ports. The first is the Port of Haifa, which is located on the northern coast, just west of Nazareth. The second is the Port of Ashdod, which is located on the southern coast, just west of Jerusalem.
For more information about the Port of Haifa, you can visit its official website here. For more information about the Port of Ashdod, you can consult its official website here. In addition, you might also consider other smaller ports, like the Port of Tel-Aviv and the Port of Hadera, if you will be shipping via the RORO method.
Clearing Your Used Vehicle Shipped to Israel Through U.S. Customs
When shipping a used vehicle from the United States to Israel, you will first need to clear that vehicle through U.S. customs. You will be happy to learn that this process is incredibly simple, only requiring that you file the proper documentation and submit your vehicle in adequate time before its ship date.
As far as documentation is concerned, you will need to ensure that you have your used vehicle’s Original Certificate of Title. In addition, you will also need to have either a certified copy of that title or two complete copies of the title.
These documents and your vehicle must be submitted to U.S. customs at your chosen port of departure at least 72 hours in advance of your ship date. To find out precisely where this will be at your departure port, simply contact the Port Director.
After U.S. customs has taken possession of your vehicle, they will check to ensure that the documents about the vehicle are submitted, and they will inspect the vehicle to ensure nothing has been illegally stowed away. Once your vehicle passes this check and inspection, it will be cleared and then loaded onto the ship.
Should you have any additional questions about this process, simply consult this guide provided by U.S. Customs and Border Security.
Getting Your Used Salvage Car Through Israeli Customs
Provided that your used U.S. vehicle meets all of the restrictions that were outlined above, the process for clearing your vehicle through Israeli customs is fairly simple. Ensure you have all of the appropriate documentation. Present documents to Israeli customs agents at your port of arrival. The documentation should include:
- The Original U.S. Certificate of Title
- A Carfax Report Outlining the Vehicle’s History
- The Original U.S. Vehicle Registration
- The Original Bill of Landing
- Proof of Insurance
- Shipping and Shipping Insurance Invoices
- Customs Declaration Form (See Here)
- Your U.S. Driver’s License
- Your Israeli Driver’s License
- Purchase Invoice
- Proof that Vehicle Meets U.S. Safety Standards
Note that Israeli customs agents, at their sole discretion, can request documentation in addition to the above. Also, do note that they can (and sometimes do) disagree with your declared value for the car and may arrive at their value.
If you will be taking advantage of the breaks for import taxes afforded to those emigrating into Israel (more on this in the next section), you will also need to furnish the following documentation:
- Foreign Passport
- Aliyah Visa
- Israeli Passport
- Teudat Oleh or Teudat Zakaut
- Teudat Zehut
Provided that your documentation checks out and all relevant taxes are paid, your vehicle will be cleared. Note, however, that your work isn’t finished with the clearance of your vehicle!
You will also need to submit the vehicle for a standardization check after taking possession of your used car. Via mail, you will receive a notice for this check within about two weeks of your vehicle’s clearance from the Personal Imports Division of Misrad Hatachbura. After this, submit the vehicle for this standardization check. The process takes several months and during which you will NOT have possession of your vehicle.
When presenting your vehicle for this standardization check, you will need to provide the following documentation:
- Your Driver’s License
- Your Temporary Vehicle Registration
- The Invitation Letter for the Standardization Check
- Receipt for Payment of Check Fee
Misrad Hatachbura offices in either Holon or Haifa perform the standardization check. You can present your vehicle and documentation to either of these offices.
For any further questions about the process of clearing your imported used U.S. vehicle through Israeli customs, please consult the Ministry of Finance here.
Import Duties and Taxes for U.S. Vehicles Imported into Israel
The good news about importing a used vehicle into Israel is this: there are no customs duties. However, there are several taxes you will need to pay, and the size of the taxes will depend upon your citizenship status.
Those who are not immigrating to Israel will have to pay a substantial car tax of 92% of the car’s value. (More on how a vehicle’s value is determined below.) In addition to this, you will also pay a Value Added Tax of 17%. This VAT is calculated based on the total of the car value plus the car tax above. As you can see, even though there is no import duty, the cost of importing a used car from the United States into Israel can quickly become prohibitively expensive.
Things, though, are much different for those who are importing their car while also immigrating to Israel. In these cases, the car tax is lowered from the exceptionally high 92% to 50%. There is no break granted on the VAT, which will remain at 17%, and is calculated based on the car’s value plus the car tax paid.
If you’re not importing a used vehicle into Israel as part of a relocation to the country, then the vehicle shouldn’t be older than two years.
If you are immigrating into the country, you need to understand how used vehicles have their values depreciated for tax purposes:
- 1% Depreciation per Month: From 1 Month to 36 Months
- 0.75% Depreciation per Month: From 37 Months to 60 Months
- 0.4166% Deprecation per Month: From 61 Months to 120 Months
- 0.083% Deprecation per Month: From 121 Months to 240 Months
Do note that the base value of a vehicle is up to the sole discretion of Israeli customs. In most cases, they will agree with your declared value provided it is by standardized vehicle values on the global market. However, if there is any disagreement, then customs will notify you in writing of their change of valuation. You will then have the option to appeal their finding, should you wish.
How to Register an Imported Used Car in Israel
Vehicle registration in Israel is handled by the Ministry of Transport. Registrations are renewed annually, and vehicles must be submitted for inspection to ascertain their roadworthiness and compliance. Along with emissions and other safety standards. Imported used vehicles older than 15 years must also have their brakes checked at a licensed garage before the inspection. Used vehicles that are classified as classic or vintage must be tested at least twice per year.
To learn more about the process for registering a used U.S. vehicle that has been imported into Israel, please consult this handy guide. In addition, you may also wish to consult the official website of the Ministry of Transport here.