Court to rule on taxing Israeli goods

JERUSALEM, July 20 (UPI) -- A European court will decide whether to impose taxes on Israeli goods manufactured in West Bank settlements, a report said.

Quoting a report in the German magazine Der Spiegel, Yedioth Aharonoth said Monday the pending decision will dictate the future tax policy to be upheld by 27 European Union countries regarding Israeli goods manufactured in the settlements.

A court in Hamburg is currently reviewing a case concerning the Israeli company Soda Club, which develops soda machines for domestic use and has factories in Ashkelon and Mishor Adumim, Israel, the paper said.

The company has branches worldwide, and a Hamburg customs official reportedly delayed a recent shipment of Soda Club goods, demanding to know whether they were manufactured in the settlements, the report said.

Dissatisfied with Israel's reply, which said the products were produced in an area under Israel's customs control, the German officials reportedly slammed a tax of 19,155 euros on the shipment before releasing it, the report said.

Soda Club issued a statement saying the company has no political affiliation and acts in accordance with the law and custom regulations, the paper said.