In line with the Israeli consumer:
The Economics Committee today (Thursday) approved the "Pharm reform", following last night's discussion with Prime Minister Naftali Bennett, Minister of Health Nitzan Horowitz, Chairman of the Economics Committee, Michael Bitton, Deputy Minister Avir Kara, and finance representatives As part of the discussion, it was agreed to expand the reform, which will be approved in the next state budget.
As part of the reform, regulatory barriers to the import of cosmetics will be removed, making the official import process simpler, the number of Israeli importers in the field of parallel and official imports will be expanded, and the growth of small and medium-sized Israeli manufacturers will be possible.
Production and import fees will also be abolished.
The reform, which will take effect next year, includes everyday consumer products, including shampoo, conditioner, body soap, body lotion, hand cream, hair cream, aftershave, aluminum-free deodorant, compressed powder and more.
Prime Minister Naftali Bennett: "This is a significant step, which should have been taken a long time ago, and will lead to a dramatic relief in the import of cosmetics to Israel. We will continue to lower the cost of living for the benefit of Israeli citizens."
The reform is expected to alleviate both importers and needs, Photo: Oren Ben Hakon
Three key principles in the reform
Facilitation of Israeli manufacturers in the production of cosmetics - Israel will move to the European production model, which instead requires a general license and a process of obtaining a cosmetics license, which lasts about five months for each type of cosmetics, and will only require a declaration of compliance.
Facilitating importers in the official import of cosmetics - Instead of the process of obtaining a license for any type of cosmetic (for example, orange-scented shampoo), the process will be in a declaration only according to the European standard.
These facilitations will allow more brands, such as boutique brands and small manufacturers abroad, to reach Israel.
Facilitation of importers in parallel imports - currently only 2.4% of cosmetics imported to Israel are in parallel imports.
The reform will allow flexibility in parallel imports while maintaining the safety of the product and its arrival in Israel, which will increase the number of importers and the variety of imported products.
In addition, production and import fees decreased from NIS 1,000 for a cosmetic type on average to NIS 0 for all importers and manufacturers, which will mainly facilitate importers and small manufacturers and increase competition.
The expected changes in the pharma reform will save high costs for the importer, which are based directly in the consumer's pocket, so that a significant drop in prices is expected in Israel.
In addition, regulatory barriers will be removed so that the number of factors in the cosmetics market will be expanded.
At the same time, the transition to the European standard will increase the level of safety of the products.