Border Guard sappers revealed that the explosives belt did not contain explosives; security sources estimated that the belt was intended to be filled up at another location.
The teen arrived in the area at about 2:00 p.m. holding a suspicious bag. An IDF officer spotted the suspect and alerted troops to close the checkpoint and isolate the boy.
The suspect was taken in for questioning, while the sappers blew up the devices in a controlled manner.
Defense establishment officials estimate the explosives belt was to be used to carry out a terror attack in Israel. However, an alert officer was able to avert a potentially serious disaster.
"If the explosive belt had reached its destination, it would have caused the death and injury of many Israelis," Battalion commander Kobi Katz told Ynet.
"The soldiers' alertness at the checkpoint prevented a disaster," he added.
"During a routine inspection by soldiers at the Hawara checkpoint, a 16-year-old Palestinian youth aroused suspicion," he said. "The youth was taken in for questioning, while the bag was checked by Border Guard sappers."
Katz said the teen insisted on transferring the bag to someone on the other side of the checkpoint and claimed he did not know what was inside.
Over the past two months IDF forces have thwarted 15 smuggling attempts into Israel through the Hawara checkpoint.