The Importer is not Considered to be Breaching Confidence Against the Standards Institute

Gill Nadel, Adv.

A dispute arose between an importer and the Director of Standardization and the Standards Institute regarding the interpretation of a standard, and as a result, regarding the inspection of the goods, in accordance with the interpretation. In regards to this issue, an action was filed requesting a declarative judgment instructing as to the correct interpretation of the standard.

Despite the filing of the action, the adjuster requested confiscation of the bank guarantee deposited by the importer. Since the bank guarantee is for a low sum, the confiscation of the guarantee in and of itself is not a significant blow to the importer, but according to the protocol of the Standards Institute, confiscation of an importer's guarantee automatically causes the name of the importer whose guarantee was confiscated to be entered into the Institute's list of importers who have breached confidence. Being on this list means a more difficult protocol for receiving official standards approval, a strict inspection regimen, and on the importer, that involve heavy expenses.

The importer filed a request for temporary aid in which the honorable court was requested to instruct the Standards Institute not to confiscate the guarantee and not to enter our client into this list. After the request was filed, the sides reached an arrangement according to which the confiscation of the guarantee will not lead to an injury to the status of the importer and it will not be transferred to the list of importers who have breached confidence.

Gill Nadel, Adv, together with Hila Volgmot from his office, represented the importer.