Civil Administration

Quarterly

INSIDE THE TRADE AND

INDUSTRY DEPARTMENT

October 2010

State of Israel
Civil Administration of Judea & Samaria
Beit El
Tel: 02-9977744
Fax:02-9977055
E-mail: int.org@cvladm.gov.il
CIVIL ADMINISTRATION Issue 2, Page 1
October 2010

TABLE OF CONTENTS

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
 CIVIL ADMINISTRATION Issue 2, Page 2
October 2010

QUARTERLY WELCOME

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
 CIVIL ADMINISTRATION
BRIEF HISTORY
Civil Administration
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
.
Issue 2, Page 3
October 2010
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”.
 CIVIL ADMINISTRATION
ECONOMICS BRANCH
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.
Issue 2, Page 4
October 2010
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.
 CIVIL ADMINISTRATION Issue 2, Page 5
October 2010

STRUCTURE
Governmental Structure Civil Administration Interactions

Prime Minister Business

Community
In Israel and the
West Bank
Minister of Defense Palestinian IDF, police,
IDF Authority and security
Chief of Staff authorities
Head of COGAT
Civil
Administration
Israeli
Gaza Strip Head of the Coordination & Computers and Government Palestinian
Coordination & Civil Liaison Technology offices population
Liaison Administration School Unit
International Israeli
organizations, settlement
8 Civil District NGO’s and foreign
Liaison Offices representatives authorities

Structure of the Civil Administration

Head of the Civil Administration

Public Relations
Spokesperson
Officer

Treasury Deputy Head Comptroller

Economics Advisor for International Security

Infrastructure Operations Crossings
Organizations Branch Coordination
Branch Branch Branch Palestinian Affairs Branch Branch

Abandoned Lands Trade and Industry Health Affairs Water Affairs Office
Caretaker Office Coordinator
Environmental Affairs
Lands Office Agriculture Office Population Registry Office

Natural Parks and Transportation Office

Welfare Affairs Office
Reserves Authority
Labor and Employment
Archeological Affairs Office
Office
Telecommunications
Ministry of Defense Office
Office

Measurements Office

Appraisal Office
Civilian Office Military Office
Electricity Affairs
Office

Planning Department

Inspection Unit
 CIVIL ADMINISTRATION Issue 2, Page 6
October 2010

BRANCH STRUCTURE

Head of the Economics Branch

Deputy and Economics Call

Economic Analyst Center Officer

Agricultural Transportation Trade and Industry Labor and Telecommunications

Office Office Staff Officer Employment Office
Office

Assistant

Economic Project Foreign Trade Dual-Use

Coordinator Coordinator Coordinator
 CIVIL ADMINISTRATION Issue 2, Page 7
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.
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.

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
 CIVIL ADMINISTRATION
FOREIGN TRADE
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.
Issue 2, Page 8
October 2010
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.
c
p CIVIL ADMINISTRATION 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.
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.

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.
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 coordinator for dual-use items, Mr. Yosef Fadli, is

the point of contact for importers who seek to receive a Requests Processed for Import
license to import these items into the West Bank. The Licenses for Dual-Use Products
request for such a license must include the following April 2009- July 2010
documents submitted to the coordinator:
♦ A formal letter stating the intended uses and
details regarding the end user of the product 30
19 128
♦ Product specification
♦ Invoice or pro forma invoice.
Dual-Use Approval Process
Request Submitted
Approved 72.3% Denied 10.7% Pending 17%

Request Denied Coordinator Review

* 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.
License Approved

Coordination
(If Necessary)
 CIVIL ADMINISTRATION Issue 2, Page 10
October 2010

ECONOMIC PROJECTS
Industrial-Economic Projects Coordinator Industrial Economic Project Ap-
The Industrial Economic Projects unit is responsible proval Process
for promoting projects submitted to the Civil Admini-
stration by Palestinian and Israeli entrepreneurs. Pro- Initiator Submits
ject proposals include quarries, gas stations, wineries, Request
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 Industrial Economics
takes place in the offices of the Civil Administration. Projects Unit
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 Staff Work
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 Project Turned Economic
fellow staff officers in the Civil Administration. All staff Down Projects
Committee
work recommendations then are submitted by the staff
officer for conditional approval in the Civil Administra-
tion Committee for Economic Projects. The committee Principal Approval
aims to promote a coherent development policy and
minimize the amount of bureaucratic delays that could Planning
dissuade entrepreneurial efforts. Department

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
Building
of its members. Once a conditional approval for the Permit
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- Project

jects unit and has held this position since 2008. Mr. Implementation
Avidor has been working in the Civil Administration
since 2001 and holds a Masters degree in Public Policy.
c
p CIVIL ADMINISTRATION Issue 2, Page 11
October 2010

PROMOTING THE QUARRY INDUSTRY

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 A Palestinian owned quarry, March 2010
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.
↓

←
 CIVIL ADMINISTRATION
F.A.Q.
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 - ‘‫ד‬1)
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.
Issue 2, Page 12
October 2010
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.
CIVIL ADMINISTRATION Issue 2, Page 13
September 2010

CONTACT INFORMATION

Contact Information:
Economics Branch
of the Civil Administration
Office Hours:
Sunday-Thursday
Staff Officer of the 08:00-18:00
Trade and Industry Office
Fredy Avivi Telephone:
02-997-7031 02-997-7093
dan.avivi@moital.gov.il 02-997-7010
02-997-7772
Fax:
Secretary
Orly Aharon 02-997-7713
02-997-7030 E-Mail:
orly.aharon@moital.gov.il economic@cvladm.gov.il

Coordinator of the
Dual-Use Division
Yosef Fadli Contact Information:
02-997-7306
yosef.fadli@moital.gov.il Trade and Industry Office
Office Hours:
Coordinator of the Sunday-Thursday
Foreign Trade Division 08:30-16:00
Eli Hazan
02-997-7720 Telephone:
eli.hazan@moital.gov.il 02-997-7030 / 02-997-7031
Fax:
02-997-7713
Head of the Economic
Projects Division E-Mail:
Gad Avidor orly.aharon@moital.gov.il
02-997-7385
gad.avidor@moital.gov.il
Address:
Staff Office for Trade and Industry Office
Civil Administration
P.0. Box 34,
Beit El, Israel
CIVIL ADMINISTRATION Issue 2, Page 14
October 2010

APPENDIX I

Dual -Use Coordination Request

CIVIL ADMINISTRATION Issue 2, Page 15
October 2010

APPENDIX II

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