Coffee with Ahmad Amawi. In this second part of our conversation with Head of the Egyptian Customs Authority Ahmad Amawi, we dive into the latest developments the customs landscape is seeing — from digitization and facilities to what is being done to improve the logistics infrastructure. Below are edited excerpts from part two of our interview:

ICYMI- In part one of our conversation with Amawi we discussed customs reforms and trade movement, as well as the Advance Cargo Information (ACI) system and its impact on trade. Check it out here.

EnterpriseAM: What will the customs system look like following the implementation of the new package of custom facilities?

AA: We have submitted a legislative amendment to the House of Representatives, which will open the door for installment payment of customs duties on production inputs, to support local industry and boost exports. Under the amendments, the allowable wastage rate within the temporary admission system for freezones and special economic zones will see an additional 3% exemption margin to resolve longstanding issues and reports filed by the Industrial Control Authority against manufacturers.

EnterpriseAM: What about procedural facilitations?

AA: We are working on a set of procedural facilitation, most notably integrating the HS Code system into operations, automating the valuation process, and incorporating a comprehensive AI-powered risk-management system. These new systems will help resolve issues related to valuations and disputes stemming from human assessment.

EnterpriseAM: But, couldn’t this new system create new complications?

AA: Actually, quite the opposite. The new smart system is designed to identify and analyze supplier data, thereby tackling the main problem: under-invoicing, where invoices for goods are issued at less than their true value to evade customs duties. These duties were put in place to regulate the domestic market and protect local industry. When these duties are evaded, it’s ultimately the Egyptian industry that bears the cost.

EnterpriseAM:Why aren’t we using AI to generate up-to-date reference prices?

AA:We are actually developing an AI-powered system to update reference prices for goods. This system uses much more advanced algorithms. It compiles data from the specific shipment’s supplier, from suppliers of comparable shipments with the same HS Code, and from multiple countries. This process produces more accurate and updated reference prices.

EnterpriseAM: What steps are still necessary to truly transform customs from points of congestion into efficient transit gateways?

AA: We are on the right track, which is enhancing coordination among all 28 bodies involved in the clearance process. The prime minister this year issued a decision to form a committee to establish a risk-based system for customs clearance that aligns procedures across the relevant bodies and then integrates it with the Nafeza customs platform. The relevant bodies will have access to shipment data for the goods they oversee through Nafeza, enabling them to conduct their own risk analysis.

This initiative’s main objective is to ultimately reduce the time dedicated to individual party inspections and eventually standardize risk criteria across all involved groups.

We also have unified fees’ payments to fall under one umbrella so that the exporter or importer is not required to visit several entities to pay different fees and obtain receipts, as was previously the case. Payment is now done in one place.

EnterpriseAM: Is there a strategy in place to broaden the whitelist of customs-dealing traders?

AA: The number of companies that are part of the Authorized Economic Operator program has increased from less than 500 companies a year ago to more than 700 companies now. We are currently working on a “reach the customer” approach through direct communication with companies instead of waiting for them to apply to join.

The program offers a streamlined clearance process for participating companies, recognizing them as reliable entities free from violations. This allows for smoother import and export procedures, enabling authorities to focus resources on higher-risk cases.

It aligns with a broader push for trade facilitation and simplifying procedure, for both Egyptian and foreign-capital companies. The goal is to enhance service delivery, improve the economic climate, and streamline customs procedures.

There are four tracks: The Green Track, for highly compliant companies or low-risk commodities, under which incoming shipments bypass both document and physical inspection; the Red Track includes documentary inspection followed by physical inspection of the shipment; the Yellow Track focuses only on document verification; and the Blue Track is designed for low-risk companies and utilizes a post-clearance audit” system.

EnterpriseAM: Will the system allowing the temporary release of non-compliant goods under custody continue under new controls?

AA: Among the amendments to the executive regulations is the introduction of optional inspection at a factory’s or company’s warehouses. This move allows certain shipments to be transported under custody from the port directly to the company’s warehouse. All necessary procedures, including inspection and fee payment, would then be completed at the warehouse instead of at the port.

EnterpriseAM: What projects are being implemented to improve infrastructure and streamline customs procedures? What role do dry ports have in these efforts?

AA: The state has seen a leap in infrastructure development in recent years, whether in sea ports, airports, roads, or dry ports. For customs, there are ongoing projects to establish dedicated units or centers for completing export procedures in most ports. These centers will greatly facilitate things for exporters, allowing them to complete the needed procedures at dedicated export points.

This includes dry ports — the transportation Ministry has recently developed several dry ports and raised their capacity and logistical capabilities for cargo handling. This included establishing presence of teams from the Customs Authority in these ports to complete the required procedures on the spot, in dry ports like 6th of October, 10th of Ramadan, or Badr — which reduces congestion at the gates or in the yards of major sea ports, because part of the procedures is completed in advance at the dry ports.

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