Goods can now transit through a third country without losing their customs exemption.
Minister of Industry, Trade and Labor Eli Yishai and Mexican Minister of Economics Eduardo Sojo Garza-Aldape have signed a memorandum confirming the final text of the Amendment to the Israel-Mexico Free-Trade Agreement of 2000.
Ministry of Industry bilateral trade agreements division director Boaz Hirsch said that the amendment was aimed at solving a problem faced by many companies that want to transit goods made in either Israel or Mexico through a third country, such as the US. Until now, the transit of such goods required redefining the country of origin of the goods and the payment of customs, because the free-trade agreement required direct shipment of goods between Israel and Mexico as a condition for the customs exemption.
The amendment allows for goods originating in Israel or Mexico to undergo minimal processing or storage in a third country before shipment to Israel or Mexico without this transit affecting the goods’ duty-free exemption under the free-trade agreement.
Published by Globes [online], Israel business news - www.globes.co.il - on October 24, 2007
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