The Madbouly government has formed new committees to address the effects of Trump’s tariffs — direct and indirect. The committees are tasked with conducting a comprehensive review of Egypt’s customs to adapt to recent global developments and, particularly, the tariffs imposed by some countries in response to US tariffs, a senior government official told EnterpriseAM.

REMEMBER- US President Donald Trump announced plans for a new wave of tariffs last month that will see the country hit auto, semiconductor, and pharma imports with 25% duties. Trump aides are reportedly preparing to roll out tariffs on “goods from most countries that trade with the United States” next month. The new plans would hit imports worth multi-tns, with one proposal suggesting grouping the US trading partners into three tariff rate categories — low, medium, and high.

“Anyone who thinks we’re completely safe from the effects of these tariffs is mistaken, as they will indirectly impact Egypt. Therefore, we are assessing the relative weight of goods whose customs fees have increased,” our source said.

The committees are also designed to help protect local manufacturing: The government’s review of customs tariffs is also set to entail an effort to address customs and tariffs harming local industry, which will be done by reducing tariffs on select items to attract private investment in productive sectors, the source said. This would, in turn, help achieve the necessary balance between taxes imposed on finished and intermediate goods, as well as the raw materials used in their production.

Localization efforts come first: The review will take into account Egypt’s commitment to international agreements and the standards of the World Customs Organization but will do so without compromising the country’s localization strategy, taking into account feedback from the Federation of Egyptian Industries and local manufacturers to protect local industry and maintain employment levels, the source said.

Additional amendments to the customs law are set to be introduced: Five articles of the current customs law will be amended to introduce new legislation that addresses issues such as dispute resolution, waiving fines, and issues related to the retention of import invoices for post-clearance reviews. These amendments aim to help support the industrial sector and reduce any new potential disputes. Reducing input tariffs, tightening control over smuggling, and accelerating customs clearance will significantly support Egypt’s industrial sector, the source added.

The effects of customs facilitation have been specifically felt in the auto sector: Tariff reductions, regulatory reforms, and incentives for local production have led to the entry of seven new companies into the local auto market, with two more working on meeting the necessary regulatory requirements to follow suit, we were told.

More facilitation measures could be on their way: A new package of customs facilities is set to be launched immediately following the Eid El Fitr vacation, the source said. Three committees were formed and tasked with resolving customs disputes, while technical and judicial experts were recruited to expedite the resolution of these issues.

THE GOALS FOR THE GOVERNMENT-

Reducing clearance time is among the most urgent goals for the gov’t: Egypt aims to initially cut the customs clearance time for goods from eight days to just two — a measure that is expected to take between nine months to a year to be fully implemented. After that, the government aims to cut clearance time to just a few hours.

Expanding the so-called “white list” is another: The authorities are working to add companies and customs clients without any history of smuggling or customs value manipulation to its “white list,” which currently includes a limited number of entities but is expected to grow significantly once the assessment is complete. Those on the list will receive special benefits regarding customs clearance and inspections, helping support local investments for those with a clear record. Meanwhile, the government is set to implement stricter measures against any smuggling attempts using a “more robust risk management system designed to close loopholes,” the source said.

The Finance Ministry aims to collect some EGP 74 bn in customs duties during the current fiscal year, a figure that may grow further with the resolution of disputes and the simplification of procedures, the source concluded.

Tags: