The Court: The Israel Customs Authority is to Reveal Other Importers' Customs Classifications
Importers who have filed lawsuits relating to customs classifications against the Israel Customs Authority often turn to the Court to request that the Israel Customs Authority be obligated to reveal previous classification decisions it has made regarding similar goods.
These requests are submitted due to the fact that in Israel, unlike in the U.S. and in the E.U., there is no computerized database of pre-ruling decisions available. Lacking such a database, the question arises whether the Israel Customs Authority will be required to reveal similar classification decisions to the suing importer, or be able to rely on the claim of confidentiality?
This review will examine a decision recently given by the Jerusalem Magistrates Court (on February 18, 2015), in which the Court ordered the Israel Customs Authority to provide the importer, who was represented by our firm, with the customs entries of other importers who had imported similar goods, while rejecting the Israel Customs Authority's claim of confidentiality.
The Case Facts:
The importer filed a lawsuit against the Israel Customs Authority relating to the classification of interior doors. The importer claimed that the classification is H.S. Code 83.01, "Padlocks and Locks", while the Israel Customs Authority claimed that the classification is H.S. Code 83.02, "Base Metal Mountings, Fittings and Similar Articles".
The importer claimed in the lawsuit that he was discriminated against compared to other importers that import similar goods.
During the case's preliminary proceedings, the importer demanded that the Israel Customs Authority reveal how other importers had classified similar goods, and following the Israel Customs Authority objection to revealing the information, claiming confidentiality, the importer requested the Court to obligate the Israel Customs Authority to reveal this information.
The Ruling:
In its decision given on February 18, 2015, the Court accepted the importer's request and ordered the Israel Customs Authority to reveal to him the information relating to other importers' classifications, while blacking out confidential information pertaining to the identities of the importers.
In its ruling, the Court decided that in order to protect the privacy of other importers while revealing the relevant information to the importer, the Israel Customs Authority will provide the importer with an example of a customs import entry for each type of goods imported in the year 2013 as H.S. Code 83.01-4000, while blacking out confidential information.
[Civil Suit (Jerusalem Magistrates Court) 29772-05-13, Verdict given by Justice Abbas Abbasi on February 18, 2015. Parties' representatives: For the importer: Adv. Gill Nadel, Adv. Michal Solomonovich and Adv. Omer Wagner from Goldfarb Seligman. For the Israel Customs Authority: Adv. Adi Ben-david Mena from the Israel State Attorney Jerusalem District - Civil].
Comments:
In 2010, during a hearing of an appeal to the Supreme Court of Israel regarding Case 10144/06 The State of Israel vs. Pharma Guri, where the importer was represented by our firm, the State of Israel agreed to the Court's suggestion to reveal data regarding others' customs classifications to the importer, without revealing the names and commercial information of the other importers.
In the discussion of the current case, the State of Israel refused to repeat this solution, and the Court had to give a decision that provides a balance between the importer's right to receive relevant information to prove his claim, and the Israel Customs Authority's claim of confidentiality.
It should be noted that in a similar case decided by the Tel Aviv Magistrates Court in April 2014 [Civil Suit (Tel Aviv Magistrates Court) 2846-10-12 FILT AIR Ltd. vs. The State of Israel], the Court accepted the importer's request and ordered the Israel Customs Authority to reveal the classifications of other importers, with certain restrictions in order to maintain confidentiality.
Conversely, in a case decided in 2011, the Rishon Lezion Magistrates Court rejected a similar request and ruled that due to the claim of confidentiality the Israel Customs Authority could not be allowed to provide this information, and moreover this information was not readily available to the Authority but rather a great deal of work would be required for it to be procured.[Civil Suit (Rishon Lezion Magistrates Court) 1907/09 AFCON Control and Automation Ltd. vs. The State of Israel (Customs and VAT Division). Verdict given on October 10, 2011.]
These requests are submitted due to the fact that in Israel, unlike in the U.S. and in the E.U., there is no computerized database of pre-ruling decisions available. Lacking such a database, the question arises whether the Israel Customs Authority will be required to reveal similar classification decisions to the suing importer, or be able to rely on the claim of confidentiality?
This review will examine a decision recently given by the Jerusalem Magistrates Court (on February 18, 2015), in which the Court ordered the Israel Customs Authority to provide the importer, who was represented by our firm, with the customs entries of other importers who had imported similar goods, while rejecting the Israel Customs Authority's claim of confidentiality.
The Case Facts:
The importer filed a lawsuit against the Israel Customs Authority relating to the classification of interior doors. The importer claimed that the classification is H.S. Code 83.01, "Padlocks and Locks", while the Israel Customs Authority claimed that the classification is H.S. Code 83.02, "Base Metal Mountings, Fittings and Similar Articles".
The importer claimed in the lawsuit that he was discriminated against compared to other importers that import similar goods.
During the case's preliminary proceedings, the importer demanded that the Israel Customs Authority reveal how other importers had classified similar goods, and following the Israel Customs Authority objection to revealing the information, claiming confidentiality, the importer requested the Court to obligate the Israel Customs Authority to reveal this information.
The Ruling:
In its decision given on February 18, 2015, the Court accepted the importer's request and ordered the Israel Customs Authority to reveal to him the information relating to other importers' classifications, while blacking out confidential information pertaining to the identities of the importers.
In its ruling, the Court decided that in order to protect the privacy of other importers while revealing the relevant information to the importer, the Israel Customs Authority will provide the importer with an example of a customs import entry for each type of goods imported in the year 2013 as H.S. Code 83.01-4000, while blacking out confidential information.
[Civil Suit (Jerusalem Magistrates Court) 29772-05-13, Verdict given by Justice Abbas Abbasi on February 18, 2015. Parties' representatives: For the importer: Adv. Gill Nadel, Adv. Michal Solomonovich and Adv. Omer Wagner from Goldfarb Seligman. For the Israel Customs Authority: Adv. Adi Ben-david Mena from the Israel State Attorney Jerusalem District - Civil].
Comments:
In 2010, during a hearing of an appeal to the Supreme Court of Israel regarding Case 10144/06 The State of Israel vs. Pharma Guri, where the importer was represented by our firm, the State of Israel agreed to the Court's suggestion to reveal data regarding others' customs classifications to the importer, without revealing the names and commercial information of the other importers.
In the discussion of the current case, the State of Israel refused to repeat this solution, and the Court had to give a decision that provides a balance between the importer's right to receive relevant information to prove his claim, and the Israel Customs Authority's claim of confidentiality.
It should be noted that in a similar case decided by the Tel Aviv Magistrates Court in April 2014 [Civil Suit (Tel Aviv Magistrates Court) 2846-10-12 FILT AIR Ltd. vs. The State of Israel], the Court accepted the importer's request and ordered the Israel Customs Authority to reveal the classifications of other importers, with certain restrictions in order to maintain confidentiality.
Conversely, in a case decided in 2011, the Rishon Lezion Magistrates Court rejected a similar request and ruled that due to the claim of confidentiality the Israel Customs Authority could not be allowed to provide this information, and moreover this information was not readily available to the Authority but rather a great deal of work would be required for it to be procured.[Civil Suit (Rishon Lezion Magistrates Court) 1907/09 AFCON Control and Automation Ltd. vs. The State of Israel (Customs and VAT Division). Verdict given on October 10, 2011.]
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