Egypt has a raft of customs facilitations in the pipeline: The Madbouly government is currently preparing a list of facilitations on customs duties as part of larger efforts to streamline Egypt’s customs system and facilitate local manufacturing efforts, a government source told EnterpriseAM.

What we know: The measures are being taken to push the government’s localization efforts forward, with the investment and industry ministries holding meetings to discuss requests submitted regarding distortions in the customs tariff that create advantages to imported goods ahead over locally produced alternatives, our source said. The government could move to reduce customs duties on inputs for certain industries to increase value-added, push localization efforts forward, and create opportunities for feeder industries to grow rather than rely on imports, the source added.

The government is also looking to ease the Authorized Economic Operator (AEO) program’s membership conditions, in what would be an additional step towards facilitating customs clearance, our source said, explaining that the system currently requires specific transaction volumes and the submission of three financial statements in order for companies to join.

The government is working on a number of other ways of facilitating customs, including efforts to launch the first call center for the Egyptian Customs Authority (ECA), electronically link data with the Egyptian Tax Authority to expedite data verifications, improve issues related to duty drawback, temporary admission, and pre-release procedures for shipments — all while reducing the number of customs inspection authorities — currently 22 — to be limited to the relevant authorities based on the nature of the product, our source said.

Remember: The cabinet also recently approved a proposal from the finance and investment ministries to improve the process of exporting and importing goods in a bid to cut customs clearance time down from eight days to just two.

This would come on top of a number of newly announced measures:

  • The launch of a new unified platform for the prices of the most frequently imported goods, which will help eliminate arbitrary assessments across customs ports;
  • Allowing the payment of custom taxes on inputs in six-month installments of up to six months, without late penalties for the first three months;
  • Allowing manufacturers a production material waste rate of up to 3%, which will benefit producers working in freezones and special economic zones and help resolve cases filed against manufacturers by the Industrial Control Authority;
  • Only collecting customs duties through the Nafeza platform upon the arrival of goods, easing financial burdens on manufacturers;
  • Allowing manufacturers to use ins. documents as a guarantee to provide the Egyptian Customs Authority (ECA);
  • Unifying the requirements of the ECA and the General Organization for Export and Import Control (GOEIC), which will help reduce customs clearance time — resolving one of the main disputes among manufacturers;
  • Allowing e-payments across different payment methods and platforms, representing a step forward for the digital transformation;
  • Updating the Authority’s risk management system, with the aim of making it easier to reclassify shipments from being “under reservation” to being classified as production inputs — provided their safety is verified.

ICYMI- Deputy Finance Minister for Tax Policies Sherif El Kilani told EnterpriseAM late last year that the government is revisiting customs procedures to align with global standards and improve efficiency. This includes a plan to introduce a four-tier system — green, red, blue, and orange — for importers, allowing for faster clearance for compliant businesses.

Tags: