Canadian medical hashish imports in Israel might now face tariffs of as much as 175% amid the most recent escalation of a dispute over allegations of ‘product dumping’.
In July, Enterprise of Hashish reported that Israel had come to a ‘preliminary determination’ to tax Canadian hashish imports, after the Israeli Ministry of Financial system launched an investigation into the market in January, following quite a few complaints from native producers.
The publication of preliminary findings on July 10 reportedly discovered a big over-importation of medical hashish from Canada, with charges reaching as much as 369%.
It discovered that Canadian hashish imports have been offered in Israel at costs decrease than these within the nation of origin, a follow often called ‘overflow imports’, inflicting a pointy drop in competing Israeli hashish corporations revenues.
As such, the Ministry has opted to chorus from imposing quick levies on Canadian imports, and as an alternative stated it might wait till the ultimate findings are printed.
Following a subsequent public remark interval, this remaining report has now been printed by the ministry.
Based on Stratcann, the commissioner initially beneficial a floating levy or tariff of 63% for Decibel, 74% for Pure Sunfarms, 112% for Organigram, and 369% for all different producers.
Nevertheless, in a brand new 126-page remaining report, printed on November 10, charges beginning as little as 2% for Decibel hashish, 33% for Village Farms (Pure Sunfarms), 39% for Organigram, and 77% for Tilray have been proposed. All different corporations would face a levy of as much as 175%.
Based on authorities information, Israel imported 78,394 kilograms of hashish from 2020 to 2023, with 80% (62,345 kg) coming from Canada. Nevertheless, home manufacturing has been on the rise, surpassing imports since 2021. In 2023, Israel produced 51,750 kilograms of hashish, in comparison with 15,950 kilograms imported.
Canadian hashish corporations have been counting on export gross sales to international locations like Israel to command higher costs and clear stock backlogs. Regardless of greater export prices, producers typically favor the export market resulting from extra favorable cost phrases, in comparison with promoting domestically the place funds can take weeks or months.
The Hashish Council of Canada (C3) and different stakeholders have disputed the declare that Canadian producers promote at decrease costs in Israel than in Canada, and the Ministry of Financial system will submit its findings to the World Commerce Organisation.
A remaining ruling on the proposed levies is now pending.
