Goods Detained in Customs: The Difference Between Detention and Seizure and What to Do in the First Few Days

Detained goods in customs are goods that remain under customs supervision and have not been released — for example, because the Collector of Customs requires proof of the particulars stated in the import declaration under Section 198 of the Customs Ordinance. Seizure is a more severe measure: under Section 188, a customs officer seizes goods where there are reasonable grounds to believe they are liable to forfeiture. From the moment of seizure, the owner of the goods has one month to deliver a written notice to the Collector of Customs claiming the seized goods. If the notice is not delivered in time, the goods are deemed forfeited.

The Customs Ordinance distinguishes between detention for inspection, detention on suspicion of intellectual property infringement, and seizure, and the rules governing each are different. The first step is therefore to identify which situation applies to your shipment, based on the notice you received or the information provided by your customs agent.

Detention for Inspection or Verification of Particulars

As long as goods are under customs supervision, a customs officer may open the packaging, inspect, weigh, and mark them (Section 174). The costs of the inspection, including transporting the goods to the inspection site, are borne by the owner of the goods. Section 198 empowers the Collector of Customs to require proof that you are the owner and that the description and particulars in the import declaration are accurate, and to refuse release until such proof is submitted. This is the common scenario when there is a question about the transaction value or the tariff classification, and it does not yet constitute a seizure.

Detention on Suspicion of Intellectual Property Infringement

Section 200A applies where there is a prima facie suspicion that the goods infringe a copyright, trademark, or registered design. Customs detains the release for 3 business days, which may be extended by an additional 3 business days for special reasons. The rights holder must deposit a bond within 3 business days from the date of detention and file a claim with the court within 10 business days from the date of the detention notice. If the rights holder fails to do so, the Director cancels the detention.

Amendment 31 to the Ordinance, which entered into force on 30.9.2026, changed two things in this section. The Director may now, for special reasons, extend the deadline for filing the claim by an additional 10 days. In addition to a bank guarantee, the rights holder may deposit a bond from another financial entity, such as an insurer or a licensed credit provider.

Seizure and Forfeiture

Seizure under Section 188 is carried out where there are reasonable grounds to believe that the goods are liable to forfeiture. Section 204 lists the applicable cases, including smuggled goods, goods imported in violation of a prohibition or restriction, and goods in respect of which a false or deliberately misleading import declaration, invoice, or certificate has been submitted regarding a particular detail. The seized goods are transferred to the nearest customs warehouse or to another location designated by the Collector of Customs.

After a seizure, the statutory deadlines are short and run from the date of seizure, so the order in which you act matters. These are the steps under Sections 190 through 192 of the Ordinance:

1. Read the seizure notice. Under Section 190, a person who was not present at the seizure receives a written notice of the seizure and its grounds. The stated grounds typically refer to a specific paragraph of Section 204 and determine what you will need to prove.

2. Deliver a written notice to the Collector of Customs claiming the seized goods, within one month from the date of seizure. For certain types of goods, the Director may set a deadline of only 7 days, so check the deadline stated in the notice itself. Goods that are perishable or are live animals may be sold or destroyed immediately.

3. Consider requesting release on bond. Section 191 allows the Director to deliver the goods to the claimant after the claimant has provided a bond for payment of their value in the event they are ultimately forfeited. This is a discretionary power and is especially important for seasonal merchandise or raw materials awaited by a production line.

4. Prepare the documents. Under Section 196, when goods have been seized, the owner of the goods must, upon demand, hand over the books and records relating to those goods, as well as to goods imported or exported in the 5 years preceding the demand.

5. Monitor the customs authority's response. Under Section 192, the Collector of Customs may require you to file a court claim for the return of the seized goods, in which case you have two months from the date of the notice. The Collector may also file a forfeiture claim on his own initiative. If neither party takes action within 3 months of receipt of your claim, the seized goods must be delivered to you.

For example, goods seized on 2.11.2026: the claim notice must reach the Collector of Customs by 2.12.2026. If customs sends a demand to file a court claim on 15.12.2026, the deadline for filing will be 15.2.2027.

When the dispute concerns the amount of customs duty rather than forfeiture, there is another way to release the goods. Section 154 allows you to pay the amount demanded by the Collector of Customs "under protest" and to file a claim for a refund within 3 months from the date of payment. The condition is that the words "paid under protest" are written in the import declaration and signed before payment. This is how you manage a dispute over tariff classification and customs valuation without leaving the shipment at the port.

These are the situations in which goods owners miss a deadline or unknowingly waive a right:

• Waiting for an oral response from the customs house instead of sending a written claim notice. The one-month deadline under Section 190 runs even while discussions are ongoing.

• Assuming that customs will compensate for damage to goods during detention. Under Section 23, the Customs Authority and the State are not liable for loss of or damage to goods under customs supervision, unless caused intentionally by a customs officer.

• Paying the demand without writing "paid under protest" in the import declaration. Without this notation, Section 154 does not permit filing a claim for a refund.

• Treating a compounding payment as a way to get the goods back. Under Section 231, payment of a compounding fine concludes the proceedings with respect to the offense, but the Director may still forfeit the goods even when the offense has been compounded.

When the seizure is accompanied by a suspicion of smuggling or a false declaration, it also has a criminal dimension, and the first statement given to customs investigators affects both proceedings. Information about the available courses of action vis-à-vis customs, including an application for the return of seized goods, can be found on the Release of Seized Goods in Customs page.

This area is handled at the firm by Adv. Udi Asa, who served from 2011 to 2022 in the Legal Department of the Customs and VAT Division at the Israel Tax Authority headquarters.