Your chance to bring in a phone from abroad without being charged customs fees is now gone, after the Madbouly government ended the exemption, which granted Egyptians the right to bring in one handset without customs or taxes (equivalent to 37.5% of the customs value of the device) every three years. This comes almost a year after the policy on personal mobile-phone imports was first introduced.

The message is clear: Buy local. The government is signaling that the local smartphone industry can now meet domestic demand, with 15 international smartphone players now assembling here. Together, they have a production capacity of c. 20 mn units a year.

What does this mean for Egyptians living abroad, but home for a visit? Egyptian expats will get a 90-day exemption from the customs and fees, renewable with each visit, provided they contact a dedicated hotline to activate the grace period, Customs Authority Head Ahmad Amawi tells EnterpriseAM.

As for tourists and folks in town for business? They’ll automatically get a 90-day exemption from the customs and fees when they purchase a local tourist line — the exemption period resets with every visit, Amawi says. Anyone who keeps using their international SIM card while visiting will not be subject to fees.

What’s next? You can pay the necessary customs and fees for importing a mobile through the Telephony app or using digital payment methods offered by banks and e-wallets and installment payment will soon be available. Users will have a 90-day grace period from the device's first activation date to pay what they owe.

Our take

It’s frustrating personally, but it’s also smart policy: Why should grey- and black-market retailers (and global handset makers) have a back-door to one of the world’s most populous markets? Made-in-Egypt goods — from shoes to clothing, office supplies, and ball bearings — are increasingly the purchase of choice for Egyptian consumers and businesses adjusting to our new exchange-rate reality. By restricting the flow of individual imports — often resold through informal channels — the Finance Ministry is capturing taxes for the treasury and giving a boost to businesses that have invested in assembly capacity (and legit resale relationships).

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Tags: