https://he.wikipedia.org/wiki/%D7%9E%D7%9B%D7%A1
CUSTOMS – Gov.il
https://www.gov.il/he/departments/topics/customs_israel_tax_authority/govil-landing-page
Customs Duty
Customs duty, as a tax imposed on goods transported from one country to another, first appeared in the 18th and 19th centuries. Until then, the tax on the movement of goods was imposed by way of payment for the use of roads, the passage of a bridge over a river, the use of a port, and for protection in the movement of people or goods from one place to another. Customs policy in the Land of Israel during the Ottoman period was determined in accordance with the principles of the Turkish system in this regard, and until 1838, foreign trade was prohibited. In 1838, the year of the great reforms in Turkey, the prohibition on the import and export of goods in commercial contracts was abolished, and a customs duty on imports was set at a rate of 5% of the value of the goods and a customs duty on exports at a rate of 2.12%.
The legal basis for the collection of customs duties during the Mandate period was laid down in the Customs Ordinance (1929), the Customs Border Ordinance (1924), the Customs Tariff and Exemptions Ordinance (1937) and a long series of orders, regulations and decrees. With the establishment of the Mandatory government in the country, the importance of customs duties increased and over time Customs was the main source of revenue for the Mandatory government in general and taxes in particular. With the introduction of income tax in Israel, the share of customs in the Mandatory government’s total tax revenue began to decline. Most of the customs rates during the Mandatory period were fixed rates.
The establishment of the State of Israel brought about a change in the economic policy of the government in the country, including a change in customs policy. The basic principles on which the customs policy was founded were: increasing revenues, encouraging local industry by imposing customs duties on imported finished products (which were exempt until then), and expanding the scope of exemption for raw materials and equipment.
Over the years, the Tax Authority has signed five bilateral customs agreements as part of a program operated by the Customs Administration to facilitate the import and export of goods. The Tax Authority has agreements with the customs authorities of the United States, Taiwan, South Korea, China, and Canada.
Value Added Tax (VAT)
On July 1, 1976, the Value Added Tax Law was published and the regulations for its operation were established, six years after Finance Minister Pinchas Sapir appointed a public committee headed by Justice Shlomo Asher to examine preparations for imposing the tax without causing economic and social distortions. In 1976, with the implementation of the VAT Law, the name of the “Customs and Excise Administration” was changed to the “Customs and VAT Administration”.