The Israel Government exercises far-reaching control over the use of
foreign exchange, and it regularly uses this control to restrict the
movement of commodities in international trade. Israeli importers are
required to submit comprehensive justifications as to Israel's need for
a commodity before they are granted an allocation of foreign exchange.
Once the licenses have been granted, it has been to the interest of the
Government of Israel to make certain that the commodities are in fact
imported and used in the Israeli economy. This identity of interest
is a strong safeguard that materials consigned to Israel are not
reexported.