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Israeli Authorities Probe Textile Firms Over Alleged Duty-Free Smuggling
Israeli authorities probe textile firms for alleged NIS 27 million duty-free smuggling via QIZ agreement, submitting false declarations and potentially.
Jerusalem, 6 January, 2026 (TPS-IL) — Israeli authorities are probing several textile firms suspected of exploiting the Israel-US-Egypt QIZ (Qualified Industrial Zone) agreement to smuggle goods duty-free.
The companies — AEDKT Tel Aviv, IL Fabrics, CNR Textiles, and MLA Zippers — allegedly exported fabrics and threads to Egypt without the required processing in Israel, submitting false declarations, the Israel Tax Authority said.
The alleged offenses, estimated at NIS 27 million ($8.5 million), may violate multiple laws, including customs, VAT, and money laundering, while harming domestic and international competition.
Owners and a manager were detained for questioning, factories searched, and materials seized.
