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Gamliel vs. Ministry of Transportation

The licensing fee is determined in regulations by licensing group.

The affiliation to the licensing group is determined in accordance with the price of the vehicle to the consumer by the pricelist tables published in the traffic regulations. The regulations stipulate that in the case of a personal import vehicle that does not have a parallel import, the price of the vehicle (for the purpose of classifying the licensing group) will be determined according to the value determined for customs, with addition of customs, purchase tax and VAT paid at import procedure.

The plaintiff imported a personal import vehicle that did not have a parallel model. The vehicle was classified in group 7, when in practice, according to the calculation in the regulations, it should have been classified in licensing group 2. This means a difference of thousands of NIS in the licensing fee.

In this case, a compromise agreement was signed with the Ministry of Transportation, which undertook to re-examine all toll payments made by anyone who imports a vehicle in a personal import that does not have a parallel commercial import. It was further agreed that if he finds any of the members of the group who is required to pay a higher fee than stipulated in the traffic regulations due to the classification of his vehicle into a higher licensing group than required, the difference he paid will be refunded.

The Ministry of Transportation also undertook that from now on it will work to classify vehicles that will be imported into Israel by personal import and that do not have a parallel import – in accordance with the regulations.

As a result of this compromise agreement, the Ministry of Transportation returned to the group members a total of approximately NIS 7.5 million.

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