New rules make it harder to transfer equipment to Israeli soldiers, charities say

Asaf Elia-Shalev

Dozens of Israeli and American nonprofits are protesting new government regulations that they say have forced them to halt the flow of donated equipment to Israeli soldiers.

In response, the government representative promised to address the issue.

The new policy is intended to cut red tape at Israeli ports. But nonprofits said the rules complicate the process of importing charitable goods, effectively denying them the ability to deliver supplies to soldiers in Israel.

“This policy change creates insurmountable bureaucratic hurdles for volunteer organizations like ours,” said Adi Vaxman, head of Operation Israel, a New Jersey-based charity that has donated millions of dollars worth of equipment to Israeli soldiers since Oct. 7.

Under the new system, Israel’s Ministry of Economy is allowing registered commercial importers to bypass testing, inspections and permits for thousands of products that are classified as low-risk, provided they certify that the products meet Israeli standards. The ministry estimates that processing fees and delays have increased the cost of imported goods by as much as 9%.

Economy Minister Nir Barkat hailed the reforms as a victory for consumers.

“From now on, no shipping container will be delayed at port, and goods will go directly to the shelves, without unnecessary bureaucracy – and without increasing costs passed on to consumers,” he said in a press release.

The problem, nonprofits say, is that charities aren’t prepared to register as commercial importers, so they can’t take advantage of the streamlined process; they don’t have the funds or expertise to do so. They say that under the old system, charities were exempt from bureaucratic hurdles, allowing them to get through customs quickly. In addition, a separate tax provision that also benefited charities has also expired in recent months.

Vaxman and her team were concerned and confused by this change.

“At a time when Israel is facing unprecedented threats, especially on its northern border, it is unthinkable that we would have to go through complicated import procedures intended for commercial entities, which could delay or prevent the delivery of life-saving equipment to those who need it most,” she said.

The crisis triggered by the new import reforms is an example of perhaps the biggest obstacle facing volunteers working to secure supplies of military equipment: interference from the Israeli government, which claims there is no shortage of equipment, despite widespread evidence that there is.

Now, the donor channel that has worked to close those gaps — something military officials say is crucial to keeping their troops safe in the field — could be blocked. On Sunday, Vaxman delivered a letter to Barkat signed by 26 volunteer groups asking for help.

“We ask for urgent attention to this matter, especially in light of the escalation in the north,” the letter said. “The volunteerism and sacrifice of thousands of people around the world who are committed to Israel’s security deserve support and encouragement, not additional bureaucratic burdens.”

The letter said the old system included a “donation waiver that allowed us to respond quickly to changing needs on the ground.”

The ministry has not yet officially responded to the letter, and its spokesman has also not provided a clear answer on the implications of the new rules.

However, Vaxman shared a screenshot of a WhatsApp message from the ministry’s director general, Amnon Merhav, in which he promised to resolve the issue.

“We recognize the problem caused by the reforms and are working to change it,” he wrote. “At this time, we will expand the current donation rules so that there are no problems.”

Since the outbreak of war between Israel and Hamas on October 7, the Israeli military has struggled with shortages of essential equipment, including protective and medical gear, as well as combat tools such as rifle scopes and small drones.

Since the first weeks of the war, Israeli military and Defense Ministry leaders have repeatedly and falsely claimed there are no shortages. Yet the military’s official supply chain has failed battlefield commanders and logistics officers so often that they have had to buy their own equipment or ask civilians for donations, in flagrant violations of military principles.

Volunteers and Israeli military officers built the logistical infrastructure needed to fulfill requests, raise funds from foreign donors, buy equipment and ship it to Israel. They have delivered as much as $1 billion worth of equipment, even though volunteers say many potential donors have hesitated to help because of official government denials about the problem.

“Potential donors ask me why they should give money to buy equipment when IDF spokesmen and high-ranking officers say that every soldier and every unit has all the equipment they need,” Daniel Polisar, who has raised millions to buy the equipment, told JTA last month. “This is the biggest obstacle to fundraising for my team and other groups working to help supply our soldiers.”

The recent change in the Ministry of Economy policy is not the only regulatory hurdle that donors face. Another consequence of the military’s policy is that combat equipment is subject to a 17% value-added tax, whether it’s a soldier buying a bulletproof vest for himself before leaving for Gaza or a charity buying tactical boots for an entire unit.

For the first few months, the government set up a fund to subsidize VAT on purchases for soldiers, but the money has run out. The Israeli Finance Ministry continues to subsidize donations intended for civilians suffering from the war or supporting security efforts.

“It’s very frustrating to explain to donors that they’re taking money out of their pockets to pay for basic equipment like shoes, and to explain to them that they also have to pay VAT on those shoes,” said Michal Wachstock, one of the volunteers behind Boots for Israel, which has distributed more than 50,000 pairs of combat boots since Oct. 7. “That means that at the end of the day, we’re able to distribute 17 percent fewer shoes to soldiers who really need them.”