Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps his Department is taking to differentiate between goods and services from (a) illegal settlements in the Occupied Palestinian Territory and (b) Israel.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

The UK Government has a clear position that Israeli settlements in the Occupied Palestinian Territories are illegal under international law. Goods originating in these settlements are not entitled to tariff and trade preferences under either the existing agreement between the UK and Israel or in our agreement with the Palestinian Authority.

UK operators are advised on gov.uk that all movement certificates and invoice declarations made out in Israel must include the postcode where production has taken place. Where there are doubts about the declared origin of goods, HMRC undertakes checks to verify the origin of those goods to ensure compliance. The overseas business risk guidance, available on gov.uk, provides information for UK operators on how goods from Israel and the Occupied Palestinian Territories should be labelled.

UK citizens and businesses should be aware of the potential reputational implications of getting involved in economic and financial activities in settlements, and we do not encourage or offer support to such activity. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice. We routinely update our guidance to British businesses on the Overseas Business Risk website.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of (a) revising the UK-Israel Trade and Partnership Agreement to explicitly prohibit the importing of goods (i) produced and (ii) sourced (A) in whole and (B) in part in the illegal settlements in the Occupied Palestinian Territories and (b) ensuring that the supply of goods imported into the UK are free from human rights abuses in the Occupied Palestinian Territories.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

The UK Government has a clear position that Israeli settlements in the Occupied Palestinian Territories are illegal under international law. Goods originating from illegal Israeli settlements are not entitled to tariff and trade preferences under either the existing agreement between the UK and Israel or in our agreement with the PA.

There are clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity. UK citizens and businesses should be aware of the potential reputational implications of involvement in economic and financial activities in settlements, as well as possible abuses of the rights of individuals that such activity may entail. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether he has considered barring (a) financial institutions, (b) banks and (c) other corporations headquartered in the UK from investing in settlement-based companies.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

The UK Government has a clear position that Israeli settlements in the Occupied Palestinian Territories are illegal under international law. There are clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity.

The overseas business risk guidance, available on gov.uk, provides further information for UK operators. UK citizens and businesses should be aware of the potential reputational implications of involvement in economic and financial activities in settlements, as well as possible abuses of the rights of individuals that such activity may entail. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of taking legislative steps to prevent the importation of goods from the illegal territories in the Occupied Palestinian Territories.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

The UK Government has a clear position that Israeli settlements in the Occupied Palestinian Territories (OPTs) are illegal under international law. Goods originating from illegal Israeli settlements are not entitled to tariff and trade preferences under either the existing agreement between the UK and Israel or in our agreement with the Palestinian Authority. We do not encourage or offer support to such activity and advise that those contemplating any economic or financial involvement in settlements should seek appropriate legal advice.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what consideration has the UK given to the suspension of the UK-Israel Trade and Partnership Agreement contingent upon Israel’s compliance with the human rights provision in the agreement and with the ICJ Advisory Opinion of 19 July 2024.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Our trading relationship with Israel underpins key areas of UK life and UK exports to Israel support thousands of jobs in the UK. Action to suspend trade preferences risks unpredictable consequences and significant economic disruption for British businesses.

The UK Government is committed to international law and fully respects the independence of the ICJ. We continue to consider the Court’s Advisory Opinion carefully, with the rigour it deserves.

The UK Government has recently announced a number of measures in relation to the actions of the Netanyahu Government. We have been clear that if Israel does not cease the renewed military offensive and lift its restrictions on humanitarian aid, we will take further concrete actions in response.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what proportion of goods from the illegal settlements in the Occupied Palestinian Territories are passed-off as coming from Israel.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.

Where there are doubts about the origin of goods that have been declared as being of Israeli origin, HMRC will undertake checks to verify the origin of those goods to ensure fiscal compliance. HMRC does not however provide specific details regarding checks as it may serve to undermine compliance activity.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what checks are made on the postal codes of goods to identify whether the origin of such goods are from (a) the illegal settlements in the Occupied Palestinian Territories and (b) Israel.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

It is a long-standing requirement that Israeli preference cannot be claimed on goods if the production conferring originating status has taken place in a location within the territories brought under Israeli administration since June 1967. The Department of Business & Trade has recently updated the list of non-eligible postcodes to reflect the latest position on Israeli Settlements.

HMRC takes a risk-based and intelligence-led approach to customs enforcement. Compliance measures evolve as the picture of risk changes ensuring any interventions are proportionate to the risk. HMRC has confirmed that regular checks are carried out on imports from Israel, and they are subject to verification to check their originating status.

HMRC introduced a new document code on 1 September 2025 to strengthen compliance with existing processes by asking the declarant to confirm imported goods met the conditions to claim preference under the UK-Israel Trade and Partnership Agreement, including alignment with the updated list of non-eligible postcodes.

These actions form part of the ongoing policy advice and review of processes aimed at ensuring the UK’s origin verification procedures remain robust and responsive to developments on the ground; ensuring any interventions are proportionate to the risk. The government remains committed to upholding the integrity of its trade policy and ensuring that goods receiving preferential treatment under trade agreements fully comply with legal and procedural requirements.

Question to the HM Treasury:

To ask the Chancellor for the Exchequer, whether guidance is given to the food sector on potential criminal culpability in the importation of (a) goods and (b) services from the illegal settlements in the Occupied Palestinian Territories.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law, and that goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Israel.

Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, with reference to UN General Assembly Resolution ES-10/24, published on 18 September 2024, whether she has taken steps to cease the importation of (a) products and (b) services originating from illegal settlements in the Occupied Palestinian Territories.

Answered by Hamish Falconer - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)

The UK Government considers Israeli settlements illegal under international law. Goods originating from illegal Israeli settlements are not entitled to tariff and trade preferences under either the existing agreement between the UK and Israel or in our agreement with the Palestinian Authority. Where there are doubts about the declared origin of goods, His Majesty's Revenue and Customs (HMRC) undertakes checks to verify the origin and ensure fiscal compliance. The UK Government encourages accurate labelling of goods produced in illegal Israeli settlements in Palestine to avoid misleading consumers and promote transparency.

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