preface

94
INVESTMENT INCENTIVES AND TRADE ADVANTAGES
♦ Small exporter - exports up to US$ 7 million per annum, with total annual
turnover exceeding US$ 4 million, or exports exceeding US$ 2 million and
less than US$ 7 million per annum, and total annual turnover not exceeding
US$ 15 million. Such exporter is entitled to a grant of up to 30% of current
marketing expenses plus up to 50% of specific marketing expenses not
exceeding US$150,000. The volume of the proposed marketing plan shall
not be less than US$ 200,000.
♦ Medium exporter - exports exceed US$ 7 million and below US$15 million
per annum, with total annual turnover not exceeding US$ 30 million. Such
an exporter is entitled to a grant of up to 30% of current marketing expenses
not exceeding US$ 250,000, plus up to 50% of specific marketing expenses.
The volume of the proposed marketing plan shall not be less than US$
400,000.
The proposed marketing plan is for a 12 month period. The fund may pay in
advance up to 30% of the approved grant, and the remainder according to
actual payments effected by the company.
Should the eligible company implement less than 40% of the proposed plan, it
is obligated to repay the advance payment. Implementing less than 60% of the
plan will disqualify the company from obtaining grants for the following year.
The following companies and industries are eligible for assistance under
special terms and conditions:
♦ Export companies (as defined in the fund's guidelines).
♦ Start-ups.
♦ International joint projects.
♦ The film industry.
♦ E-commerce.
♦ Diamond merchants and jewelers.
Due to lack of resources, the fund was not active in 2004. It is quite likely
that this will also be the situation in the near future.
Instead, the Ministry is establishing a fund under the same principles, to
promote marketing activities for companies which have joined forces in order
to benefit from the said assistance.
BDO Israel