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Replacing Appliances Long After Aliyah - Buy Locally or Ship??
Q: We've been in Israel for 23 years. The major appliances that we shipped when we had Oleh rights (e.g. washer, dryer, refrigerator) are showing their age. Ever since our appliances were new, as an electrical engineer, I've installed and serviced them myself. I just asked some local dealers for a price quote on an American-style gas dryer and I was quoted 6500-7500 shekels. Browsing the Internet I see that similar models in export stores in the States cost about $800 + shipping + taxes. If I read the customs tables correctly taxes on US-origin appliances are only about 15% VAT these days. Multiplying this out seems to imply a tremendous advantage to shipping my own, especially if I ship 3-4 appliances in one shipment, I travel a lot so I can pop into a store in New York, and I do all the installation myself.
What's your view on this?
A:Dear Sam,
In this case, let me start with a "fair disclosure" statement...I am a shipper and have an interest in your shipping as much as possible. So you may want to take my comments with the proverbial...grain of salt.
However, you have done the right exercise. You have checked prices here, gone on the internet and checked prices in the States. The only number you are missing to complete the comparison is cost of shipping.
I always recommend getting prices from at least two shipping companies (best if you call companies recommended by people who have used them) and be absolutely certain all costs are included - especially port charges in Israel. You would then add the shipping cost to the cost of the items and then have a fair price comparison.
Most appliances sold by 220 volt stores in the States come with a guarantee or service contract. You should verify this even though you are an engineer and can probably take care of this yourself. You may be able to save money if you feel comfortable forgoing the service contract.
You are right about the taxation, if and only if, the items you want to ship are made in the States. In order to enjoy the Customs exemption and not pay Customs Duties, you will need an original Certificate of Origin for the Free Trade Agreement Between the US and Israel. Please note, this is a special Certificate of Origin and it is the only one accepted by Israeli Customs. In addition to the original Certificate of Origin, Customs requires the original invoice for items you are importing.
The Certificate of Origin is prepared by the Chamber of Commerce. Your shipper, manufacturer or appliance store may be able to get the Certificate of Origin for you.
Finally, I touched on this above, but I must emphasize what may be obvious…Israel is on a 220 volt system while the US and Canada are on a 110 volt system. Unless you want to use a very big and heavy transformer, you can only buy the specially manufactured 220 volt appliances. Keep in mind Europe is also on a 220 volt system so you may want to look at buying appliances as well.

Good luck and I hope, your comparison will show it make sense to ship a lot! J

All the best,

Shmuel
 
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