Coffee with Ahmad Amawi. Against the backdrop of the Madbouly government making significant progress in customs reforms with the aim of supporting local industry and bringing in fresh investments, EnterpriseAM sat down with Ahmad Amawi, the head of the Egyptian Customs Authority to discuss the latest reforms and the overall trade movement in the country.

IN CONTEXT- The Finance Ministry finalized amendments to the customs law over the summer, proposing changes to three customs laws, including 15 amended articles and 3 newly introduced articles. Back in October, a source told us that the amendments will soon head to the House.

Below are edited excerpts from our conversation:

EnterpriseAM: There have been murmurs about amendments to the customs tariff, what can you tell us about that?

Ahmad Amawi: The government is currently reviewing amendments to the customs tariff system to better regulate the market, protect local manufacturers, and align it with the state’s broader industrial development agenda under close coordination with industry stakeholders, the business community, and relevant authorities.

The amendments will include tariff reductions on selected production inputs — to fix long-standing distortions and strengthen local manufacturing — and increases on other items in line with national priorities.

We are in constant communication with local manufacturers, who notify us when they begin manufacturing a new product that was not previously manufactured locally, whose production input is not available locally, be it raw material or an intermediate good. The issue is then looked into — if lowering customs on the production input will enhance their competitiveness against their imported counterpart, then we move forward with a custom break to support local industry.

EnterpriseAM: We’re expecting the government to start implementing the Advance Cargo Information (ACI) system for air freight in January. Why now?

AA: The ACI system contributes to automating and accelerating customs procedures before goods arrive at ports, ensuring the highest levels of governance and transparency. We began applying it for sea freight in 2021, given that sea freight represents the vast majority of Egypt’s trade traffic.

This marked a transition for companies — exporters, importers, shipping, or customs clearance firms. They had to adapt to the new system and its procedures.

EnterpriseAM: How has this supported the trade movement in Egypt?

AA: This allowed for better coordination between the Customs Authority and other local inspection bodies. It ensured the relevant entities were notified ahead of time that a specific shipment will arrive at a certain time and requires inspection by a particular authority.

The system also made it possible to conduct risk assessments before shipments arrive. This includes verifying the foreign supplier before allowing them to export or supply goods to Egypt and ensuring that the entity possesses the necessary documents. Through defined mechanisms, the system retrieves this information and verifies the identity of the supplier and prevents the entry of goods of unknown origin, non-compliant products, or items containing harmful, carcinogenic, or any banned chemical substances, among other risks.

EnterpriseAM: How have air freight companies reacted to the introduction of the ACI system?

AA: Since 2021, 500 companies have voluntarily joined the system, despite their dealings being conducted through air freight channels. Currently, the number is increasing thanks to the facilities the system offers — there are no additional fees or obstacles and it is flexible to accommodate the nature of air freight. Some 80% of companies engaged in air cargo also operate in maritime shipping, making them familiar with the system.

Some had concerns given the fast nature of air freight. It is important for traders to be scheduling import needs in advance, taking advantage of the fact that the maritime and air ACI systems are valid for six months. That is, I can schedule the import of a shipment for June 2026 in December 2025, so there is no real “rush.” That being said, any exceptional case will be handled, and registration will not take more than 5 minutes.

EnterpriseAM:Air freight is inherently more expensive, so will applying ACI raise the total cost?

AA: Prior to implementing ACI, the state required all shipping documents to be attested, be it for air or sea freight. This process could cost up to EUR 600 for a single shipment. The introduction of the Nafeza system cancels this step — it uses a specialized tool to verify the authenticity of documents.

Registration through the ACI system costs USD 175, meaning importers actually save about 75-80% when comparing the figure to the costs of previously-applied systems.

EnterpriseAM: To what extent will the system contribute to reducing clearance time?

AA: Currently, half of air shipments have their clearance procedures completed in less than a single day, the other half see clearance times exceeding a few days. This depends on several variables, as air shipments have to go through not only customs procedures, but also procedures related to different regulatory bodies.

EnterpriseAM: Time and time again Investment Minister Hassan El Khatib highlighted efforts to reduce customs clearance time, which has so far more than halved. Why is reducing customs clearance time such a priority?

AA: Previously, the average customs clearance time for sea freight exceeded 28 days. By 2023, we reduced that to 15.6-15.8 days and at the beginning of 2025, we reached 5.6 days. We are looking to cut clearance time to just 2 days by the end of 2025.

This is a good indicator. Every additional day a shipment spends at the port costs the country about USD 150 mn in fees for containers, yards, and storage, in addition to the fees paid to the shipping company. If a vessel arriving from abroad is delayed by even one day, that day alone can cost up to USD 21k. So reducing clearance time results in pretty significant FX savings.

Beyond that, the move reduces the cost for importers of production inputs, which consequently lowers the cost of production, thereby increasing the competitiveness of the Egyptian product in terms of quality and price compared to imported finished goods. We are working to ensure that customs clearance for air shipments reaches a time not exceeding a few hours.

EnterpriseAM: We can’t talk about trade or customs without touching on recent trade tensions ignited by the US this past year. Some saw Trump’s sweeping tariff plan as a chance for Egypt to attract investors from the likes of China and Turkey — have we been taking advantage of this opportunity?

AA: Certainly. There is indeed a plan to attract more investments to Egypt, seeing as it has gained a competitive advantage over the past few years, more so now that it was one of the least affected countries by Trump’s tariffs. Egypt is subject to the blanket 10% duty.

Tags: