The Finance Ministry finalized new amendments related to customs facilitation measures that are set to be launched in the coming weeks, a government source told EnterpriseAM. The ministry is set to finalize a new package of custom facilities within the coming weeks, with a separate real estate tax relief package expected in 1Q FY 2025-2026, Finance Minister Ahmed Kouchouk said previously.

The amendments involve changes to three customs laws, including 15 amended articles and 3 newly introduced articles that pertain to installment payment of customs duties, activation of a risk management system, and adjustment of allowable wastage rates for manufacturers to ease regulatory burdens, our source said. The amendments also address feedback from the Federation of Egyptian Industries and the broader industrial community, intending to protect local manufacturing, maintain employment levels, and preserve production activity.

What the changes will entail: The new amendments will work to provide customs facilitation in a number of ways, enabling dispute resolution, waiving fines, and resolving issues related to the retention of import invoices for post-clearance audits in a way that satisfies the industrial sector and reduces potential new disputes. The amendments also aim to reduce customs clearance time to two days from eight in the initial phase, which could take 9-12 months. Eventually, clearance could happen within hours.

The amendments also include:

  • Launching a new pricing platform for frequently imported goods to standardize customs valuation and avoid inconsistent pricing estimates across customs points;
  • Enabling six-month installment payments for customs duties, with no late fees for the first three months;
  • Introducing a wastage allowance of up to 3% for free zones to resolve longstanding issues and reports filed by the Industrial Control Authority against manufacturers.;
  • Postponing customs duty collection via the Nafeza system until goods arrive to help ease financial pressure on manufacturers;
  • Expanding the list of acceptable guarantees from importers, including ins. documents;
  • Accepting electronic payments through various digital methods, in line with the government’s digital transformation strategy;
  • Updating the risk management system and allowing easier conversion of provisionally cleared shipments into production inputs without added costs to facilitate Egyptian exports.

REFRESHER- The cabinet greenlit the formation of a committee to implement a risk management system for customs clearance back in April, with the committee tasked to develop the framework for implementing the system, monitor its execution, and propose legislative changes.

Planned expansions to the so-called white list have also seen progress: A survey is underway to identify companies and customs clients with no prior record of evasion or customs value manipulation to add them to the white list, which currently includes a limited number of entities. The list is expected to expand significantly upon completion of the survey, providing listed entities with the ability to benefit from expedited customs clearance and inspection, which will in turn support local investment.

AND- FX collection rules for exports expanded: The Investment Ministry added 65 new items to the list of goods that local exporters must fully collect payment for in foreign currency before shipping abroad, according to a decision published in the Official Gazette. The regulation requires exporters to receive the full value of these goods in convertible currencies — such as USD or EUR — through local banks authorized by the central bank and using secure methods like letters of credit and wire transfers. Exporters must provide proof of payment to customs authorities before shipment. The move is part of broader efforts to ensure FX flows through the banking system.

The new items span a wide range of commodities, including flour, fertilizers, metals, petroleum products, chemical compounds, waste and scrap materials, and electrical connectors, among other goods.

PLUS- Gov’t is also shaking up the way import fees are collected: The Central Bank of Egypt instructed banks to comply with a recent Investment Ministry decision that shifts import fee collection responsibilities from banks to the Egyptian Customs Authority, Al Mal reports. Customs officials will be required to collect administrative import fees determined by the ministry and transfer them to the ministry’s account at the CBE, a role previously carried out by local banks. The release of goods is contingent upon the payment of these fees.

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