See also:

      1. Sefer Hukim 5729. p. 228
          1. No indirect taxes shall be imposed on goods imported from abroad into, or manufactured in, a free port zone, or on the export of goods from a free port zone, if the goods are intended for the establishment, management, operation, use or business, as may be specified in the instrument of approval, of the authorized enterprise in the free port zone.
          2. The aforesaid exemption shall not be granted for a vehicle other than a work vehicle, within the meaning of the Traffic Ordinance.
        2. In a free port zone, the owner of an authorized enterprise shall be entitled to use foreign currency freely, as may be required for the management of the enterprise, unless the Minister of Finance otherwise expressly directs in the instrument of approval.
        3. The import of goods from abroad into and the export of goods from, a free port zone, within the scope of the business, as specified in the instrument of approval, of an authorized enterprise shall not require an import or export license.
          1. Goods transferred under the control of the Customs from one free port zone to another or to warehouses under the control of the Customs shall not be regarded as imported.
          2. Goods intended for an authorized enterprise which were brought for storage to warehouses under the control of the Customs prior to being transferred therefrom to a free port zone, shall be regarded as imported into a free port zone.

        (See English translation in Asher Yosef, Government of Israel, Department of Customs and Excise, Israel Customs Regulation 1981, Yalkut 470, (Summer 5741-1981, pp. 70-71.)

      2. Kobetz Takanot 5731. p. 1247.

      EXPLANATORY NOTES
      The goal of the proposed Law is to create conditions to attract investments to the development regions in the Negev, Jerusalem and Galilee for the establishment of export industries by means of Free Export Processing Zones - FEPZs. Experience gathered over a number of years indicates that foreign investors are discouraged by limitations on economic activities and the bureaucratic systems they encounter. The goal is to correct this situation, and in particular, to improve the negative image of Israel among wide circles of potential investors throughout the world, by ensuring free economic activity, convenient terms, equality and efficiency in the case of foreign entrepreneurs and investors.

      The proposed Law will have a positive effect in such fields as population distribution, settling of development areas, improving balance of payments, reducing the burden on the local economy of financing the development of development areas, encouraging immigration, discouraging emigration, development of local industry, finance and services. The Law and its enforcement will not increase the national budget or reduce income from taxation.

      The concept behind "Free Export Processing Zones" is that these Zones will be efficient industrial parks, with the obvious advantages to scale. They will be regarded as extra-territorial areas for customs purposes, exempt from ordinary tax liability, from the economic regulations and limitations applicable in other areas of the country and from the maze of bureaucracy. As a result, it will be possible to attract foreign investors to exploit the relative advantages of the Israeli economy and to allow them the ability to compete effectively in international markets. It will be possible to establish 7-10 industrial parks throughout the country, principally in Development Zones "A", established under the terms of the Capital Investments Encouragement Law.

      Each Zone will be established, operated and marketed by private or public corporate Concessionaires, pursuant to approval granted by a Council established by the government. The Council will supervise the location, building and operation of the Zones, in accordance with the terms of the Law. Each Zone will be efficiently planned and built, and will include a service center established for the benefit of the users.

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