Iran isn't the only group having their dual use technologies under tight scrutiny, or facing sanctions connected to compliance with an Oil for Food program.
Like the Iranians, Chareidim in Israel face similar problems.
As you know Chanukah is approaching rapidly, and the hiddur mitzvah of lighting the Chanukiah demands pure olive oil.
And herein lies the problem.
Pure olive oil one buys in the supermarket is very expensive. Prohibitively so for the average Chareidi family in the quantities they would need.
So an entrepreneurial spirit decided to import, ahead of Chanukah, Badatz certified pure olive oil properly labeled for candle lighting.
The reason this would be cheaper is because the olive oil in the supermarket is taxed to the skies by the tax authorities who categorize it as a food product (oil for food), whereas oil for candles, not being categorized as a food product sidesteps all these additional sanctions and tariffs.
The Customs Authority recognizing this dual-use technology and the importers legal attempt to bypass the sanctions and tariffs (for the more dangerous use of this product) through proper labeling, declared the oil as food, hence taxable to the tune of 850,000 shekel - an amount that would probably guarantee the importers lose any profit from their venture.
After a month of no agreement between the sides, and with their candle oil locked up in Customs ahead of the Chanukah buying season, and having no other choice, the importers agreed to put the sum in escrow until an agreement could be reached by both sides on the oil's proper categorization.
The oil has been released to the Chareidi market in time for Chanukah, but an entrepreneurial venture has been crushed.
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