1 TARIFF MEASURES
Structure of the tariff schedule
Egypt applies an eight-digit tariff nomenclature according
to the Harmonized Commodity Description and Coding System (HS 92).
Tariff publications
Bundesstelle für Aussenhandelsinformation
Egypt, working edition, 1999.
Current information on customs-related matters is available from the
Customs Authority, 4 El Tayaran St., Nasr City, Cairo.
| 12 |
In conformity with Presidential Decree 243/88 of September 1998, the
common tariff range is between 5% and 40% with the exception of the following
commodities:
1. Some food and pharmaceutical products are subject to
a rate of 1%
2. Textiles of cotton and man-made fibres are assessed
at a rate of
54% in accordance with Presidential
Decree 1 of 1 January 1998
3. Passenger cars with engines greater than 1300 cc and
camper
vans are charged at rates of 55% to
135%
4. Applied tariffs on poultry increased to 80% in August
1997
5. Manufactured tobacco enters at the 85% level
6. Certain alcoholic beverages are subject to prohibitive
rates
such as 1200% for beer, 1800% for wine,
and 3000% for
most spirits |
| 13 |
As a result of the Uruguay Round negotiations, Egypt bound over 98
percent of its tariff. Basic rates were bound at rates of 20% to
60% on engines and components, and 20% to 160% on finished vehicles.
Unbound lines include rubber and rubber articles, machinery and mechanical
appliances, and electrical equipment. |
| 16 |
Assembly industries may benefit from customs duty reductions of up
to 75% in proportion to local content requirements in the final product.
Completely-knocked-down parts imported by factories for assembly under
the supervision of the Customs Administration are subject to the import
duty rate imposed on the complete goods, less 20%.
Under Article 4 of the Law 186/1986, a group of imported capital goods
enjoy a customs duty of 5%, if imported for construction purposes carried
out in new cities, desert areas, as well as for the purposes of land reclamation,
and low cost housing.
Exemptions from customs tariffs are granted for imports destined for
Egypt's free zones with certain exceptions.
Imports by some government ministries and their agencies, and a number
of goods imported by state-owned enterprises may be exempted from the payment
of import duties.
A number of activities and schemes such as tourism and the Investment
Scheme for Arab and Foreign Funds benefit from reduced rates of customs
duties.
Primary materials used for processing, and parts used for repairing
or completing the manufacture of finished goods are subject to temporary
exemption of customs duties if certain conditions are met. |
| 19.1 |
Egypt is a participant in the Global System of Trade Preferences among
Developing Countries (GSTP).
On 19 February 1997, the Economic Council of the Arab League decided
to establish an Arab Free-trade Area over a period of ten years starting
from 1 January 1998. During the ten-year period, member countries
ought to reduce their respective tariffs by one-tenth every year.
As from 1 January 2007, the free-trade area was scheduled to be fully operational.
Algeria, Comoros, Djibouti and Mauritania did not join the agreement.
Lebanon, Libya, Palestine, Somalia, Sudan and Yemen did not start the implementation.
In June 1998, Egypt became a member of the 51-nation Common Market for
Eastern and Southern Africa (COMESA) which aims to create a free-trade
zone in Africa by 2004. The goal of the agreement is to have a Common
External Tariff (CET) with rates of 0%, 5%, 15% and 30%, respectively,
for capital goods, raw materials, intermediate and final goods. |
| 19.3 |
Egypt has signed a bilateral trade agreement with Tunisia in December
1997 to phase out customs duties:
(a)
on about 100 commodities immediately
(b)
on tariffs currently subject below 20% over five years
(c)
on remaining customs duties by 2007
A free-trade agreement with Lebanon provides for duty-free access to
each other's imports for a limited number of products.
In 1998, Egypt and Morocco signed an agreement to create a free-trade
area.
The goal of the agreement with Jordan is to create a free-trade area
by 2005.
Egypt also signed a trade agreement with Libya. |
2
PARA-TARIFF MEASURES
Additional charges
| 21 |
A 2% or 3% import surcharge is levied for imports subject to customs
duties of 5% to 29% or 30% and above, respectively. |
| 22.8 |
A customs fee of 1% is set on sugar. This tax will be decreased
annually. |
Internal
Taxes levied on Imports
| 23.1 |
The general sales tax (GST), introduced by Law 11 in 1991, as amended
by Laws 91/96, 2/97 and 163/1998, is levied at three rates:
1. A normal rate of 10%
2. A reduced rate of 5% for coffee, fertilizers, insecticides,
iron bars and rods for building, rough
wood, flour and products
made of flour, gypsum and soap
3. An increased rate of 25% for luxury goods such
as
refrigerating equipment and freezers,
air-conditioning units,
chandeliers, cosmetics or beauty preparations,
audio and
video apparatus, colour televisions,
motor vehicles with
a cylinder capacity of 1600 cc to 2000
cc, caravans and trailers |
3 PRICE
CONTROL MEASURES
Antidumping
measures
| 34.2 |
Definitive antidumping duties in force as at 28 June 1998 apply to
stainless steel kitchen sinks from Greece and Spain, as well as steel reinforcing
bars from Latvia, Romania and Ukraine. |
4 FINANCE
MEASURES
Advance
payment requirements
| 41.2 |
Letters of credit require a cash deposit of 100%. Cash deposit
requirements are not required for raw materials and semi-finished goods
imported for manufacturing purposes. |
6 QUANTITY CONTROL MEASURES
Licensing under the authority
of
Ministry of Economy and
Foreign Trade
8 Sharia Adly
Cairo
Non-automatic
licensing
| 61.2 |
In conformity with decree No. 38/1997, seeds of agricultural products
may only be imported by retailers authorized to sell seeds subject to a
permit from the Committee of Seeds of Agricultural Products. |
| 61.6 |
Under a bilateral agreement with Lebanon, Egypt requires import licences
for a number of products including cement, gypsum, plaster, quick lime,
copper and alloyed wires, electrical and insulated wires, and cables. |
| 61.7 |
Decree No. 194/1997 of 30 June 1997 provides for the importation of
used goods. Arms require an approval from the Ministry of Interior
Affairs. Apparatus, machinery and equipment for medical use must
be approved by the Ministry of Health. Raw materials of rags, cloth
made of textile material, remnants of thread, and bundles and thick ropes
may be imported subject to an approval of the Ministry of Industry.
Aircrafts, ships and boats require an approval from the concerned ministry
or agency. |
Prohibitions
| 63.2 |
In line with Egypt's Uruguay Round commitments, conditional prohibitions
on the import of fabrics were lifted by Presidential Decree 1 in 1998 and
the remaining conditional prohibitions on textile and clothing items will
be removed no later than 1 January 2002. |
| 63.7 |
About 80 chemical compounds used for the production of pesticides,
fungicides and herbicides are barred from importation. A list of
corresponding items is annexed to decree No. 55 of 1 March 1996.
Decree No. 874 of 31 July 1996 prohibits the importation of various
insecticides based on the US-American classification of substances that
might cause cancer.
A number of pharmaceutical and other health related products, hazardous
drugs, animal hides, live animals, and plants are subject to import bans,
mainly for health and safety reasons.
Imports of air conditioners, refrigerators and aerosol products using
ozone damaging substances are prohibited as part of Egypt's participation
in the Montreal Protocol on Substances that Deplete the Ozone Layer. |
| 63.8 |
As a member of the League of Arab States, Algeria applies the different
degrees of the embargo decreed by this institution in 1954 with regard
to products originating in Israel. |
8
MISCELLANEOUS MEASURES
Technical regulations
Standards are formulated and enforced
by the
Egyptian Organization for Standardization and
Quality Control (EOS)
2 Latin American Street
Garden City, Cairo
| 81.1 |
The majority of Egyptian mandatory standards are concerned with food
products, engineering goods, and textiles and clothing, however, only 25%
to 30% of these standards conform with international standards. Egyptian
standards are reviewed periodically to ensure their relevance to current
requirements.
In accordance with decree No. 42 of March 1994 amended by decree No.
180 of 1996, goods which conform to ISO/IEC standards, as well as the national
standards of the United States, Japan, United Kingdom, Germany and France
will be accepted unless specific requirements apply in Egypt.
Since 1993, imports of deep-frozen beef has been restricted by the application
of certain standards set out in the Decree 1522/91 of the Ministry of Health.
Under decree No. 113/34 of 21 September 1994, all imports require a
certificate of origin.
Sanitary certificates are required for raw materials but not for finished
products.
A sanitary certificate from the Ministry of Agriculture and Land Reclamation
is required for fresh and canned meat, stating that the slaughter was carried
out in accordance with Islamic custom and that the meat has been free from
contagious diseases for at least three months prior to slaughter.
Decree No. 38/1997 stipulates for sanitary and international certificate
requirements applicable to seed imports.
Decrees No. 478 of 5 December 1995 and No. 411/1997 of 30 October 1997
provide for the precise lists of food additives for preservation and colouring
matters permitted in food processing.
The Ministry of Health does not have a positive list of approved flavorings.
However, all flavorings which conform under CODEX or WHO are approved in
Egypt.
Imported motor vehicles must be suitable for the Egyptian climate.
A corresponding certificate is required under decree No. 633 of 1 January
1995. On 15 September 1998, a decree of the Minister of Finance provides
for additional import requirements. Imported motor vehicles require
a certificate of conformity approved by the Egyptian Embassy in the country
of origin. The certificate of origin should indicate the maker's
number of chassis.
Under decree No. 210 of 4 October 1987, blood, components of blood and
its by-products may be imported subject to certificate requirements stating
that the products are free of virus diseases infecting the liver and AIDS.
Subject to previous treatment, a wooden package should be accompanied
by an official certificate stating that the package is free of wood pest
and insects.
Decree No. 14 of 1992 provides for limits of heavy metals permitted
in containers used for food.
Pesticides must be registered with the Ministry of Agriculture in conformity
with Decree No. 663/1998 of the Minister of Agriculture.
Cosmetics are treated as pharmaceuticals by the Egyptian authorities
and must be registered with the Ministry of Health in conformity with decree
No. 69 of 3 March 1994. |
| 81.1/5 |
A certificate of radiation inspection is required for foodstuffs, oils
and fats and products thereof, live animals except camels from Sudan, plants
and seeds, animal fodder, milk substitutes and tobacco. Respective
imports under the authority of the Atomic Energy Agency are also subject
to radiation inspection.
Under Ministerial Decree 1 of the Ministry of Industry of 1 January
1998, importers of woven fabrics are required to comply with the stipulations
of woven fabrics and knitted fabrics annexed to the decree. |
| 81.2 |
Circular No. 12/1998 of the Ministry of Trade and Supply imposes new
marking requirements on every package of industrial commodities imported
into Egypt. |
| 81.2-4 |
Decree 16/1993 provides for marking, labeling and packaging requirements. |
| 81.3 |
Decision No. 16/1993 provides for the compulsory use of the Arab language
on all labels.
Ministerial Decree No. 2613/1994 of 15 March 1994 requires that food
products entering Egypt should have 50 percent of their shelf life remaining.
Wheat and green coffee grains are exempted from shelf life requirements.
A decree of August 1994 extends shelf life requirements to certain non-food
imports such as syringes and catheters.
Decree No. 1 of the Ministry of Trade and Supply of 1 January 1998 provides
for inscription requirements on the selvage of fabrics.
Decree No. 580 (article 6) of 1998 stipulates that only cars produced
in the current year may be imported.
The importation of agricultural products except green coffee must be
made in the crop year. |
| 81.4 |
Packed goods must be in packaging that ensures preservation of the
product. Poultry and meat products must be packed in hermetically
sealed and sanitized packaging in accordance with decree No. 465 of 22
November 1997. |
| 81.5 |
A number of previously banned items were moved to the mandatory quality
control list subsequent to their derestriction. The list annexed
to the Import and Export Regulations covers a wide range of categories
including food stuffs, construction products, appliances, electronic products,
spare parts and consumer goods. Decree No. 99/94 exempts from quality
inspection industrial inputs imported by factories. Verification
of compliance is the responsibility of the General Authority for Export
and Import Control in the Ministry of Trade.
In addition to quality control, various control and inspection procedures
apply to imported food products. The controls are implemented by
the Food Control Agency.
Inspection requirements are set in respect of fruit and seeds, fresh
and frozen animal products, hides and skins and raw wool. Depending
on the type of product, the implementing authorities could be the Agriculture
Quarantine Body or the Animal Quarantine Body. On 10 July 1997, the
Ministry of Agriculture issued Ministerial Decree 1647/1997, introducing
new regulations for the import of meat and live animals. |
| 81.7 |
Under decree No. 619/98 of 21 November 1998, shipment of some 55 consumer
goods must be made directly from the country of origin. |
|