? Egypt’s new customs reforms aim to deliver for manufacturers: The government has rolled out a fresh set of customs reforms designed to stimulate investment, accelerate production, and reduce import clearance times, measures which — like recent tax incentives — are all geared toward jumpstarting economic growth. The initiative is particularly focused on simplifying customs procedures, supporting local manufacturing, and removing bottlenecks in import processes. However, a key question remains — will these measures meet the expectations of manufacturers seeking lower production costs and an export boost from the devalued EGP?

The project is a work in progress: Authorities are currently working to ease the criteria required to join the authorized economic operator (AEO) program, which helps streamline trade for businesses operating in Egypt. Additionally, a number of proposed reforms will soon be opened for public debate, engaging stakeholders such as the Federation of Egyptian Industries (FEI), chambers of commerce, business groups, freight forwarders, and shipping companies, according to government sources. Some legislative amendments may be required to implement the changes, with officials expecting the new framework to take effect in 2H 2025.

The gov’t is seeking manufacturers’ input: Industrial chamber members recently met with Finance Ministry officials to discuss the upcoming reforms and the pressing concerns of manufacturers, Mohamed El Bahey, FEI’s customs and tax committee head, told EnterpriseAM. Through these ongoing discussions, the government aims to collect input from industrial players to identify regulatory roadblocks and industry priorities.

A balanced approach is needed: The state needs to balance between strong tax revenues while allowing businesses to import goods more efficiently, El Bahey noted, stressing that coordination among regulatory bodies — including industry, trade, and customs authorities — would be crucial to eliminating bureaucratic delays that hold up shipments at ports.

One of the main concerns raised by industry leaders is the lack of a unified white list for importers, with El Bahey advocating for a standardized system across all government agencies. He also questioned how it would be possible to amend white list criteria for the General Organization for Export and Import Control (GOEIC) without also revising the Finance Ministry’s criteria, arguing that a cohesive set of white list regulations would ease trade operations significantly.

Industry leaders call for overhaul of customs penalties: Egypt’s customs framework has long suffered from inconsistent policies, fragmented oversight, and varying tax assessments across different ports, Mohamed Al Argawy, chairperson of the Customs Committee of the Importers Division at the Federation of Chambers of Commerce (FEDCOC), told us. He said that the government should implement a full-scale customs overhaul to reduce costs and streamline imports for manufacturers.

El Argawy highlighted the abolition of jail terms for customs violations as a key demand from the business community, alongside cutting excessive fines and simplifying clearance processes. He proposed forming a permanent government committee composed of finance and investment officials to standardize customs clearance procedures and enhance regulatory efficiency.

Simplifying procedures and reducing bureaucracy: El Bahey has also pushed for a reduction in post-clearance audits, arguing that requiring companies to retain shipping invoices for five years is impractical, particularly when goods have long been distributed. He called for greater digital integration between customs and regulatory bodies to turn ports into seamless trade gateways rather than bureaucratic bottlenecks. Industry has also urged expanding the use of visual inspections for customs clearance, which could significantly cut processing times and reduce port congestion.

Lower tariffs on industrial inputs could boost competitiveness: Lowering tariffs on raw materials and industrial components would enhance Egypt’s global competitiveness by maximizing the benefits of existing trade agreements such as COMESA, the EU-Egypt partnership, and Agadir, Ali Tawfik, founder and chairperson of the Egyptian Auto Feeders Association (EAFA), said.

Fixing flaws in the tariff structure: El Bahey pointed out that some imported goods are cheaper than locally produced alternatives — due to large-scale manufacturing advantages in their home countries — posing a challenge for domestic manufacturers. He noted that the government has been responsive to industry concerns and is working toward fairer trade policies.

Tawfik also proposed to enter bilateral agreements to gradually eliminate import duties over a 10-year period, following the EU’s freetrade model. This, he argued, would challenge local industry and could eventually make Egyptian products more competitive internationally.

A one-stop-shop for customs approvals: To reduce clearance delays, industry leaders are calling for a single-window system for customs approvals that would eliminate redundant inspections across different regulatory agencies. El Bahey also called for lifting restrictions on reselling surplus imported goods, arguing that manufacturers should be free to sell excess inventory in both free zones and the local market.

Issues with the Nafeza system: While the new customs package does not currently include changes to the Nafeza system for imports, El Bahey called for amendments to pre-registration rules, which currently force businesses to re-export goods if a supplier misregisters them before shipment. This issue, he said, has resulted in costly delays for importers.

Inspection processes could use streamlining: Granting immediate clearance for industrial inputs upon arrival would help increase production and supply chain efficiency, head of the FEI's maritime transport division, Ibrahim El Dessouky said. He suggested that site inspections could be conducted post-clearance instead of requiring manufacturers to store goods at ports for weeks, which adds significant costs to production.

Changes to customs regulations could have a big economic payoff: Tawfik projected that reducing customs clearance times and associated costs could potentially increase Egypt’s GDP growth to at least 7% if customs inefficiencies are fully eliminated. Moreover, Amr El Samdouni, secretary-general of the International Transportation and Logistics Services Division at the Cairo Chamber of Commerce, described the customs reforms as a major step toward improving supply chain efficiency. He stressed that cutting logistics costs and clearance fees would allow manufacturers to receive raw materials faster, ultimately boosting industrial output.

El Samdouni urged the government to accelerate the rollout of the reforms, suggesting that reducing clearance times to 3-4 days for standard shipments and just 4 hours for air freight would align Egypt with global best practices.

The shipping agencies have also proposed a series of industry-driven improvements, including increasing allowable weights for bulk goods, streamlining required documentation, introducing more flexible submission deadlines, and expanding options for tax settlements, according to a memorandum viewed by EnterpriseAM.

Reevaluating tax incentives for capital goods: Manufacturers are also pushing for revisions to VAT exemptions on capital goods, arguing that uncertainty over tax liabilities has forced many to delay expansion plans. Industry representatives are also advocating for stricter oversight of import tariffs and the abolition of penalties on production waste.

A fully digital customs system is the next step: To modernize trade logistics, industry leaders emphasized the importance of real-time digital integration between customs and other regulatory agencies.

Your top industrial development stories for the week:

  • Packaging firm PackTech is investing USD 60 mn to build two new factories in Iraq. The construction of both facilities is set to kick off this year, with operations expected to start in 2026. The project will be executed in partnership with an undisclosed Iraqi investor, with both parties holding equal stakes. (Al Borsa)
  • Chinese electronics and household appliance manufacturer Hisense and UAE’s FBB Tech began construction of their USD 38 mn new electronic devices manufacturing facility in the China-Egypt Teda trade zone in Ain Sokhna.
  • DiDi is mulling taking part in the establishment of an EV manufacturing plant in Egypt in partnership with other companies and government entities. The move would facilitate the addition of EVs to the company’s local fleet.
  • The New Urban Communities Authority announced a three-month exemption for industrial facilities from paying outstanding financial dues. To benefit from the exemption, industrial investors must submit a formal request outlining the status of their project’s execution and provide the necessary commitments to settle their financial obligations. (Al Mal)
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