On 21 July 2026, the Netherlands published the Temporary Sanctions Decree concerning Unlawful Settlements in the Territories Occupied by Israel, a Royal Decree of 13 July 2026. The Decree introduces an import ban, together with broader market restrictions covering the purchase, sale, placing on the market, and provision of intermediary services in relation to goods originating in Israeli settlements in the West Bank, East Jerusalem, and the Golan Heights. It also contains an anti-circumvention provision. The government has opted for this three-pronged approach (a customs measure, market-surveillance measures, and a circumvention ban) to minimise the risks of circumvention associated with a purely national import ban.

The Decree enters into force on 21 September 2026 and will expire automatically after three years from entry into force, unless otherwise provided by a subsequent Act of Parliament. It has been adopted as an Order in Council (Algemene Maatregel van Bestuur, AMvB) under Article 2(1) of the Sanctions Act 1977 (Sanctiewet 1977).

According to the explanatory memorandum, the measure is based in particular on the (non-binding) ICJ Advisory Opinion of 19 July 2024, which found the occupation to be unlawful and referred to the obligation of third states to take steps to prevent trade or investment relations that assist in maintaining that unlawful situation. The government also relies on UN General Assembly Resolutions ES-10/24 and A/RES/79/90 and UN Security Council Resolutions 465 (1980) and 497 (1981).

Pressure within the EU to adopt measures in this area has increased in recent months in light of continued settlement expansion and escalating settler violence against Palestinians and their property. In the absence of EU-level consensus, the Netherlands has chosen to act nationally. The explanatory memorandum records that the government continues to press for an equivalent measure at EU level.

Scope of the Decree

The Decree applies to natural and legal persons in the Netherlands (including the Caribbean public bodies Bonaire, Sint Eustatius and Saba, but not Aruba, Curaçao or Sint Maarten), as well as to Dutch natural and legal persons operating elsewhere within the European Union. It applies to goods that are wholly or partly obtained in, or produced in, an unlawful settlement in the territories occupied by Israel, identified by reference to the EU postcode list. Part 1 of that list is covered in full; Part 2 postcodes are covered only where the place or street lies beyond the 4 June 1967 lines. In practical terms, the measure targets settlement-origin goods, rather than Israeli-origin goods generally.

The explanatory memorandum indicates that goods eligible for preferential treatment in accordance with Article 64 of the Union Customs Code — including goods of preferential Israeli origin under the EU-Israel Association Agreement — fall outside the Decree’s scope. The exclusion is drawn by reference to preferential eligibility, not to Israeli origin as such: goods imported on non-preferential terms remain within scope and trigger the declaration duty. The stated rationale is that the measure is aimed specifically at settlement goods, while seeking, as far as possible, to respect the EU’s existing treaty obligations towards Israel.

What is prohibited?

It establishes a layered set of prohibitions:

• Import ban: Article 3(1) prohibits bringing in-scope goods onto Netherlands territory. This is wider than customs import: it captures entry across the internal land borders with Germany and Belgium, and applies to private individuals as well as importers and carriers. Transit (customs transit) is excluded.
• New customs declaration requirement: Article 3(2) also requires that any person importing goods of Israeli origin within the meaning of Article 60 of the Union Customs Code, on non-preferential terms and for placing or making available on the EU market, must provide a declaration to Customs confirming that the goods do not originate in an unlawful settlement in the territories occupied by Israel. The declaration is made by entering a new document code on the customs declaration. It does not apply to goods in travellers’ personal baggage intended for private use, and is not required where a preferential proof of origin is provided.
• Purchase, sale, and market placement ban: Articles 4 and 5 prohibit direct and indirect purchase, sale, and placing on the market and making available on the market, including distance and online sales, of the goods concerned. Both apply to Dutch persons purchasing or selling elsewhere in the EU, not only on Netherlands territory.
• Intermediary services ban: Article 6 prohibits the direct or indirect provision of intermediary services relating to those goods, meaning negotiating or arranging transactions for their import, purchase or sale, including where the goods are destined for another EU Member State. The explanatory memorandum states that technical and financial services as such fall outside the definition.
• Anti-circumvention clause: Article 7 prohibits activities having the object or the effect of circumventing the Chapter 2 prohibitions. Unlike the equivalent EU sanctions clause, it deliberately omits any “knowingly and intentionally” element, so conduct that has a circumventing effect is caught regardless of intent; intent goes only to the penalty tier under the Economic Offences Act. Examples given include misdescribing origin in trade documents and routing goods through other Member States.

The Decree does not cover transit, nor exports or services to the settlements, which remain governed by the existing discouragement policy and the OECD/UNGP responsible-business frameworks. The government’s stated position is that goods in transit do not enter the Dutch market, that a transit ban would be difficult to enforce in practice, and that such a measure would interfere more directly with the trade policy choices of other states.

Enforcement and penalties

Enforcement is shared between Dutch Customs (Douane) and the Fiscal Intelligence and Investigation Service (FIOD). Customs will oversee border-related compliance, exercising its existing Algemene douanewet powers while goods remain under customs supervision. The FIOD will be responsible for criminal enforcement of the import ban where goods are not brought into the Netherlands through the EU’s external borders, and for the purchase, sale, intermediary-services and circumvention bans.

Breaches of the Decree, including indirect breaches, negligent conduct, and false declarations, are enforceable under criminal law as economic offences under the Economic Offences Act (Wet op de economische delicten).

The main penalties are:

• Intentional breach: up to six years' imprisonment, community service, or a fifth-category fine (currently up to €103,000).
• All other cases: up to one year's detention (hechtenis), community service, or a fourth-category fine (currently up to €25,750).
• Additional sanctions available: total or partial business closure (up to one year), forfeiture of the goods concerned, placement under administration, and provisional measures. Attempt and complicity are also punishable. Prosecution is subject to the opportunity principle; the explanatory memorandum indicates enforcement will focus on structural and intentional breaches.

Practical implications for business

For businesses, the compliance impact is not limited to customs filings. The Decree raises the bar for supply-chain due diligence, origin tracing, contractual controls, and record-keeping.

Businesses active in sectors such as agri-food, cosmetics, wine, construction materials, and textiles, or otherwise exposed to a West Bank, East Jerusalem, or Golan Heights nexus, should consider taking the following steps:

• Map supply chains against the EU postcode list, rather than relying on country-of-origin data alone;
• Ensure they can identify the precise place of production or sourcing, and not merely whether goods are labelled as originating in Israel;
• Update supplier due diligence questionnaires and onboarding processes to capture settlement-related origin risks;
• Build and retain documentary support for the new customs declaration requirement;
• Audit existing stock and in-flight shipments before 21 September 2026, as there is no grandfathering for pre-existing inventory; the explanatory memorandum expressly confirms the absence of transitional law and defends immediate effect on foreseeability grounds;
• Review purchase, distribution, agency, and brokerage agreements for settlement-origin exposure; and
• Train procurement, logistics, customs, sales, and compliance teams on the new restrictions.

Key takeaways

• From 21 September 2026, importers into the Netherlands must screen against the EU postcode list and provide a declaration that the goods of non-preferential Israeli origin do not originate in an unlawful settlement.
• The Decree goes beyond an import ban: it also restricts purchasing, selling, placing on the market, and intermediary services. Article 8 designates the Chapter 2 prohibitions as overriding mandatory provisions under Article 9 of Rome I, so a Dutch court must apply them whatever law governs the contract.
• Intentional breaches may expose companies and individuals to criminal penalties of up to six years’ imprisonment, in addition to fines and other sanctions.

Assessing how this Decree affects a particular supply chain will not always be straightforward, especially where product origin, mixed sourcing, intermediary arrangements, legacy stock, or existing contracts are involved.

BDW’s sanctions and trade compliance team can help businesses assess exposure, strengthen due diligence, review contractual arrangements, and implement practical compliance measures ahead of entry into force.