Catalonia-Israel Commerce Chamber

ICA, The Industrial Cooperation Authority, operates within the Ministry of Industry, Trade and Labor.

ICA initiates, coordinates and monitors industrial and commercial cooperation activities following Government, Government-owned companies, public institutes and other State entities procurement.

ICA also promotes and monitors commercial and industrial cooperation activities related to selected areas of non-government trade.

ICA is authorized to supervise the enforcement of the “Mandatory Tenders Regulations,” pertaining to the Mandatory Tenders Law regarding Mandatory Commercial Cooperation.

ICA operates within the rules of the Government Procurement Act and other international agreements.

ICA cooperates with parallel organizations in countries worldwide.

ICA is based in Jerusalem and also has an office at the Israel Economic mission in NewYork, covering activities in North America.

ICA’S INDUSTRIAL COOPERATION APPROACH

Cooperation Based On Competitiveness

In many countries local directives obligate foreign companies to purchase – due to their sales in these countries – locally manufactured products, or carry out other reciprocal business activities to a value of up to and over 100 percent of said sales, involving the signing of back-to-back purchase, offset or other counter-trade agreements.

In most cases, such agreements contain legally-binding clauses, which specify a variety of penalties to be directly imposed on the company in the event of non-compliance. These penalties, apart from the realization of bank guarantees, warranties etc., are imposed irrespective of the competitiveness of the products offered in these countries, or of the company’s actual needs.

ICA feels that long-term cooperation must ultimately depend on the competitiveness of Israeli products. ICA believes that a company’s undertaking for industrial cooperation to be realized in Israel should not carry penalties, warranties or other financialguarantees.

ICA’s policy is aimed at developing new markets for high quality competitive goods and creating a framework for bilateral or multilateral industrial and trade cooperation between the Company or its subsidiaries and Israeli industry.

Purchases, or any other industrial cooperation activities, subsequent to an industrial cooperation undertaking, are expected to be carried out on a competitive basis.

Once contact has been established between a foreign company and an Israeli manufacturer, ICA will assist the parties, as much as required by either of them, without being directly involved in the detailed negotiations between them. Within the framework of its undertaking, the company will carry out all necessary activities aimed at enabling Israeli firms to qualify as its subcontractors, such as quality assurance qualification, or any other certification in order to become a qualified supplier. The company will appoint a local liaison officer to be responsible on its behalf for fulfilling the undertaking, for managing all relevant activities and serving as the Company’s coordinator with ICA and Israeli industry

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