Import of Commercial Encryption Items to the State of Israel for the purpose of selling
and distribution
Ministry of Defense policy update - July 2001
A license - holder (importer) who wishes to sell commercial Encryption Items, will be granted a license for
selling and distribution of Encryption Items within the State of Israel, excluding the Palestinian Authority.
Sales of encryption Items to an end - user within the Palestinian Authority requires a separate application.
Sales Information shall be saved by the license - holder and reported to the Ministry of Defense upon request.
A license - holder is exempt from saving sales data regarding the following bodies:
Financial institutions supervised by the State of Israel under law i.e. Banks and Insurance Companies.
Hospitals and Medical Institutions supervised by the State of Israel under law.
Academic Institutions supervised by the State of Israel under law.
Government Ministries and Statutory Institutions.
Security Forces (i.e. IDF, and Israeli Police etc.).
A unique licensing track
An import license - holder may submit the
catalogue of imported
items for an early review to the Ministry of Defense.
The list will include the following details:
Name of commodity \ encryption item.
Commodity Description and functionality.
Encryption algorithm and relevant key length for each algorithm.
The Ministry of Defense shall notify the importer with regard to which
commodities require regular licensing procedure (early - prior import
to Israel); regarding other commodities, the importer shall submit a
license application, post factum, after importing to Israel.
In the latter case, the importer is obliged to submit a license application
for engagement in Encryption Items (post factum), including the necessary
technical information regarding the relevant item, within 14 days after the
commodity was imported to Israel.
Supervising sub distributors
Distributor is defined as person engaging in selling and distributing, within
the state of Israel, of Encryption Items imported to Israel by a license - holder.
Distributors are exempt from holding a license for distribution and selling of Encryption
items in Israel subject to the following conditions:
The importer is a license - holder.
The existence of a legally binding agreement between the license - holder
and the distributor, in which the distributor is made aware of the legal
situation regarding Encryption Control as well as of Ministry of
Defense policy.
The distributor is obliged to submit all sales data to the license - holder.
Sales data shall be saved by the license - holder (importer) and reported to
the Ministry of Defense upon request.
The importer shall submit to the Ministry of Defense a complete list of
distributors, to be updated on a regular basis.
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