Israel cancels customs duties on South Korean industrial imports

Israeli Finance Minister Avigdor Lieberman speaks to members of the media at the weekly cabinet meeting in Jerusalem, September 11, 2022. REUTERS/Ronen Zvulun

JERUSALEM, Dec 4 (Reuters) - Israel's finance minister on Sunday signed an order to eliminate customs duties on agricultural and industrial imports from South Korea, including on cars, as a new free trade agreement between the countries took effect.

Finance Minister Avigdor Lieberman made the change, which will result in the end of a 7% customs duty imposed on South Korean auto imports and a 12% customs duty on air conditioners, after the free trade agreement was ratified in March, according to Israel's Tax Authority.

Israel, it said, will lose as much as 225 million shekels ($66 million) a year in tax revenue as a result of the customs reduction.

($1 = 3.3955 shekels)

Reporting by Steven Scheer Editing by Ari Rabinovitch

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