Import Tariffs
In 2004, the Egyptian government reduced the number of ad valorem tariff bands from 27 to 6, dismantled tariff inconsistencies, and rationalized national sub-headings above the six-digit level of the Harmonized System (HS). The government also eliminated services fees and import surcharges ranging from 1 percent to 4 percent. The government reduced its 13,000-line tariff structure to less than 6,000 tariff lines. These and other changes have significantly reduced requests for customs arbitration over the past three years.
In February 2007, a presidential decree further reduced import tariffs on 1,114 items, including foodstuffs, raw materials, and intermediary and final goods. The government also adopted the World Customs Organization (WCO) HS-2007 for classifying commodities. The changes reduced the weighted average of import tariffs from 9.1 percent to 6.9 percent. Ninety percent of imported goods now face tariffs below 15 percent. These goods include many foodstuffs, raw materials, and intermediate goods, as well as some finished goods. Vehicles, alcohol, tobacco are the only items on which tariffs are still 40 percent or greater.
Significant barriers to the entry of U.S. agricultural products remain, particularly for those of animal origin, and the government still occasionally makes abrupt import regime changes without notification or opportunity for comment. In July 2006, the tariff rate on poultry was reduced from 32 percent to zero, but in March 2007, the government re-imposed the 32 percent tariff. It is permitted to import only whole chickens, yet not parts. There is a 300 percent duty on wine for use in hotels, plus a 40 percent sales tax. The tariff for alcoholic beverages ranges from 1200 percent to 3000 percent.
Foreign movies are subject to tariffs and sales tax of about 30
percent for the complete version of the movie and 12 – 15 percent
for the negative.
A list of recent tariff reductions for some major industries
follows:
• Automotive industry and its feeding industries: The
tariffs on the automotive manufacturing components have been
reduced from the range of 5-12% to the range of 2-5%, in addition
to around 10% sales tax.
• Passenger cars with engines under 1,600cc were reduced in
September 2004 to a maximum of 40 percent, while engines over
1,600cc now have a tariff rate of 135 percent, cars with engines
over 2,000 cc are subject to an escalating sales tax up to 45
percent.
• Paper manufacturing, printing and publishing: Tariffs on
material for paper manufacturing have been reduced from the range
of 5-32% to the range of 2-12%.
• Iron and steel industry: Some materials have been
completely exempted from tariffs, while others have been reduced
from 5% tariffs to only 2%.
• Food industry: Tariffs have been unified and reduced for
the food and pharmaceutical industries to 5%.
• Tariffs on textiles have been reduced from 12-22% to the
range of 5-10%, while garments have also been reduced to 30% down
from 40%. Customs on yarns were reduced from 12-20% to be
around 5%. Imported color stabilizers and similar textile
chemicals were reduced from 2% to 0%. Customs on medical
equipment, including dentistry, equipment used for treating
fractures, cardiovascular equipment, hearing aids, and needles
used for sewing wounds: Tariffs range between 2% and 5%.
• Fresh fruits dropped from 40 percent to 20 percent.
Textile machinery are custom tariff exempted.
• In June 2006, the Egyptian parliament approved amendments
to some articles of the Stamp Duty Law that simplified procedures
and halved the stamp duty tax rate for certain products and
services.
Trade Barriers
SERVICES BARRIERS
GATS Commitments
Egypt has restrictions for most services sectors in which it has
made GATS commitments. These restrictions place a 49
percent limit on foreign equity in construction and transport
services. In the computer services sector, larger
contributions of foreign equity may be permitted, such as when
the Ministry of Communication and Information Technology
determines that such services are an integral part of a larger
business model and will benefit the country. Egypt
restricts companies from employing non-nationals for more than 10
percent of their workforce. Limitations on foreign
management also apply to computer-related services (60 percent of
top-level management must be Egyptian after three years from the
start-up date of the venture). A prohibition on the
acquisition of land by foreigners for commercial purposes was
amended in 2002 to allow such acquisition under certain
circumstances. Acquisition of land and/or real estate property in
free zone areas is unbound."
Insurance
Foreign firms may own up to 100 percent of Egyptian private insurance firms. Investors acquiring more than a 10 percent stake in an insurance company require approval from the Egyptian Insurance Supervisory Authority (EISA). A 2008 amendment to the insurance law made EISA more autonomous and strengthened its role from administrative regulator to a risk-based and market-sensitive regulator. The amendment also allows foreign property insurance brokers to do business in Egypt for the first time. In an attempt to create a self-regulatory body, the amendment creates a “Union of Insurance Companies” which all companies must join. The union will issue professional standards and have the power to discipline its members. Another key change was the abolition of the “Higher Council for Insurance” which was an unnecessary bureaucratic layer and overburdened the regulatory framework. Other changes include raising the required minimum issued capital for insurance companies to LE60 million ($5.57 million) instead of LE30 million ($5.57 million).
Banking
Egypt permits unrestricted foreign participation in existing local banks. However, no foreign bank seeking to establish a new bank in Egypt has been able to obtain a license in 10 years. As part of the financial sector reform embarked upon by the Government since 2004, Egypt has improved its banking sector, including consolidating the sector by reducing the number of banks from 57 to 40 through the exit of weak banks.
Telecommunications
Egypt’s accession to the WTO Basic Telecommunications Agreement
in 2002 and the WTO Information Technology Agreement in 2003
required the liberalization of telecommunications services,
independence for the National Telecommunications Regulatory
Authority (NTRA) which was established in accordance with Law No.
10, for the year 2003 “The Telecommunications Regulation Law”,
and the phasing out of tariffs on all information technology
imports from WTO Members. In 2003, Egypt's
parliament approved a telecommunications law that established the
framework for the government to meet these commitments.
More progress, however, is needed in establishing full autonomy
for the NTRA.
As of December 2008, there are more than 40 million mobile
subscribers and the wireless communications sector is growing at
a rate of more than 50 percent per year. However, companies
continue to complain that regulators are stifling competition to
the benefit of TE by not licensing companies seeking to provide
Voice over Internet Protocol (VoIP). In addition, TE has
been slow in negotiating interconnection arrangements and
international gateway accessibility with
carriers.
Transportation
The government is liberalizing maritime and air transportation
services. The private sector conducts most maritime
activities including loading, supplying, ship repair, and,
increasingly, container handling. The Port of Alexandria
handles 60 percent of Egypt’s trade. Renovations are
completed at the Port of Alexandria, thus far at a cost of about
LE 300 million ($55 million), have increased handling capacity to
44 million tons/year, up from 32 million tons/year in 2004.
However, customs clearance may take between 11 days to 20
days.
Egypt and the United States concluded an Air Transport Agreement
in 1964, and the countries have modified the agreement only twice
since then. Private and foreign air carriers may not
operate charter flights to and from Cairo without the approval of
the national carrier, Egypt Air. U.S. and Egyptian
officials have in the past discussed the possibility of an
Open-Skies air services agreement to replace the 1964 agreement.
In June 2008, Delta Air Lines began operation of nonstop service
between Cairo International Airport and New York’s John F.
Kennedy Airport.
Courier and Express Delivery Services
Private courier and express delivery service suppliers seeking to
operate in Egypt must receive special authorization from Egypt
Post. In addition, although express delivery services
constitute a separate for-profit, premium delivery market,
private express operators are required to pay Egypt Post a
“postal agency fee” of 10 percent of annual revenue from
shipments under 20 kilos.
INVESTMENT BARRIERS
Under the 1986 United States-Egypt Bilateral Investment Treaty (BIT), Egypt committed to maintaining an open investment regime. The BIT requires Egypt to accord national and most-favored nation (MFN) treatment (with certain exceptions) to U.S. investors, to allow investors to make financial transfers freely and promptly, and to adhere to international standards for expropriation and compensation. The BIT also provides for binding international arbitration of certain disputes.
Based on a review of Egypt’s investment policies, the OECD has
invited Egypt to adhere to the OECD Declaration on International
Investment and Multinational Enterprises. Egypt signed the
Declaration in 2007, becoming the first Arab and first African
country to join. During this process, Egypt agreed to
review the restrictions on investors identified in the OECD’s
2007 Investment Policy Review of Egypt, such as certain limits in
the tourism sector as well as the discriminatory treatment of
foreign investors in construction and courier services.
In April 2008, the government stopped construction of a
fertilizer plant after the Canadian company Agrium invested $280
million and four years of planning in the plant. While
local activists raised environmental concerns about its location
along the Mediterranean coast, Agrium noted that it was adjacent
to other industrial plants. Agrium agreed to sell its stake
in the plant in September to a state-owned firm, which does not
plan to resume construction. Egypt's reputation as an attractive
location for foreign direct investment (FDI) risks being affected
because of the dispute.
Import Requirements and Documentation
For an imported shipment to be accepted at Customs in Egypt, the shipment must have the following documents:
• Commercial Invoice- 2 copies plus the original
document are required. Legalization by the Egyptian consulate in
the country of origin is required in most cases.
• Certificate of Origin- 2 copies plus the original
document are required. The Certificate of Origin must be
authenticated by the Egyptian consulate in the country of origin.
Natural products are considered to originate in the country where
the goods are extracted. The Certificate of Origin must bear a
statement that the information given is true and correct to the
best of the shipper's knowledge.
• Packing List- packing list may be required by the
consignee and is recommended in most cases.
• Bill of Lading- the number of bills of lading
required depends upon the carrier. There are no regulations
specifying the form or number of bills of lading required for
shipment. A bill of lading must show the name of the shipper, the
address and the number of bills of lading issued.
• Pro Forma Invoice- this is an invoice required by
the importer for submission along with the import license. It
must show the country where the goods were
manufactured.
• Letter of Credit- The Central Bank of Egypt in
March 1999 advised all banks operating in Egypt that L/Cs must be
covered 100% in cash by the importer. This replaced the previous
procedure whereby banks and their clients reached their own
agreements and covered, usually 10-20% of L/C’s value. In
general, the exporter may not ship the goods before the Egyptian
bank has notified the opening of a L/C. If the goods are shipped
before the L/C is opened, the importer runs the risk of being
fined up to a maximum of the value of the goods. If the importer
does not bear the cost, then the exporter will have lost the
value of such a shipment, and in the case of products with a
shelf-life, the delay at the customs can mean that even if the
exporter (e.g. a U.S. company) wanted to take back the shipment,
it’s no longer of any use.
• Content Analysis of the Commodity – Required for
those products that may be subject to standards testing.
MINISTERIAL DECREE 619 OF 1998 - CERTIFICATION OF ORIGIN
Ministerial decrees over the past years has had an impact on U.S.
trade with Egypt. Ministerial Decree 619 of 1998 required
imports to be accompanied by a certification of origin and
stipulated that consumer goods (durable and non-durable) be
shipped directly from the country of origin. Decree 619
subsequently was adjusted in late 1999 to allow the shipment of
imported consumer goods from the main branches of the producing
company and its distribution centers. Regulations also were
implemented to facilitate the ability of firms to meet the
requirement for a certificate of origin. This requirement
can now be fulfilled with a company invoice noting the country of
origin and bearing the endorsement of an Egyptian overseas
commercial office. Since May 1999, the Central Bank of
Egypt has required 100% coverage for credit lines opened for
goods imported by traders for resale purposes.
Egypt no longer requires import licenses for most products, although licenses are still required for some items, such as animal products.
U.S. Export Controls
Egypt is not subjected to special sanctions (such as those imposed on Libya and Iran). Nevertheless, there are three aspects of U.S. export control regulations that should be considered in doing business with Egypt.
First, the U.S. has stringent anti-boycott regulations. American companies may not aid or abet the boycott against Israel that the Arab League has had on the books for years. For instance, American companies are not allowed to certify that their products do not come from Israel. If there appears to be any request that might be in support of boycotts, companies should contact the Bureau of Industry and Security (BIS) in the U.S. Department of Commerce at http://www.bis.doc.gov/index.htm.
Second, there are numerous companies and individuals that have been blacklisted by the U.S. Government as a result of past violations of export regulations. The BIS has a Denied Persons List and the Office of Foreign Assets Control has a Specially Designated Nationals List. Both of these lists can be checked online to ensure that the prospective business partner has not been blacklisted.
Third, individual items may require specific export licenses. In principle all exports require a license, though in practice the vast majority of our exports fall under a so-called general license that allows export without getting permission from the BIS. For a number of items, a specific license is required. These include products whose high-tech nature implies that export may involve a national security risk.
Again, contacting BIS will enable an exporter to determine whether or not specific items require a license. If a specific license is required, one of the considerations will be the reliability of the end-user. Government agencies and companies with a solid business reputation are more likely to be granted a license.
Temporary Entry
Temporary Imports
In general, Egyptian customs allows for commercial samples and temporary imports for display purposes at officially recognized exhibitions or for sales promotion activities to enter the country duty free, with the exception of goods that are cited on the list of prohibited imports. Certain conditions do apply, however.
Medical samples must comply with the rules for the importation of pharmaceuticals, and samples of foodstuffs must comply with the relevant health regulations.
In certain cases, goods imported on a temporary basis may be disposed of or sold in Egypt upon payment of the appropriate customs duty plus an extra tax of 10% per month after clearing customs.
On re-exportation of goods imported under temporary import regulations, companies should ensure that correct documentation and return of the letter of guarantee is obtained from the Egyptian Customs in order to avoid claims against the company at a later stage.
Printed advertising materials, such as catalogs, posters, or films, may also be imported duty free in small quantities.
Drawback System
Exporters may also take advantage of the drawback system.
This procedure is different from the temporary admission system
in that full customs duties are paid on the imported materials
and the manufacturer does not fill out a special form with
Customs. However, there is a one-year time requirement to
re-export these imports as part of a final product in order to
have the right to reclaim the full amount of the duties paid as
well as other taxes such as the sales tax.
This procedure is cumbersome and refunding may take up to six
months for processing. The agencies administering the
program are tasked with the responsibilities of determining and
then repaying the drawback amount. The Industrial
Surveillance Authority carries out the first task, while the
Customs Authority carries out the second. A delegate from
Customs has to be present during the manufacturing process.
To refund the amount paid, several administrative requirements
must be satisfied:
• Details, such as quantities and materials used in
manufacturing a unit of the exported products, must be provided
to enable Customs to calculate the drawback rate;
• Proof of duties paid on the imported quantities must be
furnished in order to collect an allowance in the drawback rate
for wastage and scrap, quantities of such must be verified.
In addition, the following documents must be
provided:
• Customs import release certificate
• Certificate of export of product
• Export permit
• Registered deed of sale from the original importer
• Customs clearance certificate
To speed up the reimbursement process, the Egyptian Government
introduced in October 1999 a new "tax rebate" system, by means of
which exporters could be reimbursed according to pre-specified
rates for each industry. The tax rebate system currently
covers more than half of the major exported commodities.
Labeling and Marking Requirements
Finished goods that are imported for retail sale must have the product's country of origin, the producer's name and product description in Arabic in a clearly visible place on the packaging. Special regulations exist for some items, including foodstuffs, pharmaceuticals and textiles.
Food imports face a number of burdensome labeling and packaging requirements. Poultry and meat products must be shipped directly from the country of origin to Egypt and sealed in packaging with details in Arabic both inside and outside the package. This requirement raises processing costs and discourages some exporters from competing in the Egyptian market. Appropriate packaging must be provided for food products. These should be clean and odorless, so as preserve the product and prevent damage occurring. Production and expiry dates must be clearly displayed on the product's packaging. The information should be printed in Arabic on the package using indelible type, but stuck on labels will normally be accepted as well.
Production and expiration dates must be clearly shown on the package. Information on the label cannot be easily erased, scratched or altered. Information must be written in Arabic as well, and weights and measures must be shown using the metric system. Dates are accepted in English, but the words "production" and "expiry" must be written in Arabic. The label must include:
• Name and address of manufacturer;
• Brand or trade mark (if applicable);
• Country of origin
• Type of product;
• Name and address of importer;
• Production and expiration dates;
• Product use instructions (optional);
• Ingredients;
• Storage instructions or storage temperature;
• Net weight;
• Gross weight and total number of packages per case or
carton;
• If preservatives are being used- percentages of each
preservative must be indicated;
• If meat or poultry, the statement that the meat "is
slaughtered according to Islamic ritual" or " “Halal," must be
included; and
• For meat or poultry, all products must be in packaged and
sealed bags. Labels must be inserted inside the package as well
as on the outside.
The label on the meat must include the following:
1) Country of origin
2) Producer’s name and logo
3) Name of slaughterhouse
4) Slaughter date
5) Name and address of importer
6) Name of entity, which issued the “Islamic slaughter”
definition.
The Commercial Office in the Egyptian Embassy or Consulate in the country where the product originated must then approve all these labeling requirements.
Packaging requirements:
Article 74 of the Import and Export regulations stipulates that
the package should be fit for preserving the product, and the
product should occupy the space of the container in full. If a
container is wooden, the container itself should be accompanied
by an official certificate that states it is free from
wood-harmful pests and insects.
Data that appears on equipment, tools and machinery should be identical to those appearing on the package. The country of origin should be indicated on each item and be non-erasable. They should be accompanied with an Arabic-language catalogue indicating the following:
• An illustrative design of the parts.
• Mode of assembly and operation.
• Maintenance procedures.
• Electrical circuits for electrical equipment.
• Safety measures.
Products prone to rust and corrosion should be painted with a special protective paint. Check that the labeling on the goods conforms to the current Egyptian labeling regulations for the product in question.
Be aware that packaging and import description discrepancies can
lead to payment default.
Textile fabric was also subject to costly and complicated
labeling requirements. Egypt ended the requirement that the
country of origin must be identified in a continuous band along
the entire length of the imported fabric. However, imported
textiles are subject to quality control examination by a
committee made up of members representing the domestic spinning
and weaving industries. This group also has some influence
with Egyptian Customs in setting the duties that are
imposed. The labeling requirement for textile fabric was
canceled while labeling requirements for imported garments
mandate basic information on tags similar to foreign
garments. In addition, fabrics are no longer subject to
testing, and measures requiring that apparel labels be written in
Arabic to include importer information were eliminated.
Egypt also committed to expedite the customs clearance process
for apparel and textile imports
Prohibited and Restricted Imports
Egypt lifted its ban on apparel imports on January 1, 2002, replacing it with excessive specific rate duties. In January 2004, the Egyptian Government issued a decree replacing these specific-rate duties with ad valorem (percentage of value) tariffs consistent with Egypt's commitments to the WTO.
In 1998, Egypt issued a decree stipulating that passenger vehicles can only be imported during their year of manufacture, effectively banning the importation of second-hand cars. In 2000, the decree was amended adding one year after the year of production to the period during which passenger vehicles can be imported. In November of 2005 the Minister of Trade and Industry issued a decree lifting the regulation restricting the import of cars from the country of origin. Egyptian regulations allow foreign investors to import a vehicle duty-free for their private use in the year of manufacture, provided that approval is obtained from the Chairman of the General Authority for Investments and Free Zones (GAFI).
In February 2005, Egypt lifted its ban on beef with a fat content
greater than 7 percent. In March, 2005, it lifted its BSE ("mad
cow disease") ban on U.S. beef imports, but only de-boned U.S.
beef is allowed entry. U.S. live cattle imports
remain banned. The ban on imports of live cows, meat
and its products, from most European countries remains
active. However, in September 2006, Egypt approved
imports of live male slaughter beef from Moldova, Ukraine,
Hungary and Romania. Most of the imported beef come from
India, Brazil, New Zealand, and Australia.
Egypt continues to block imports of U.S. poultry and poultry
products based on concerns that U.S. industry does not meet
Egyptian Halal requirements. Although a decree in July 2006
lifted the overall ban on poultry imports for six months, the
Ministry of Agriculture (MOA) now requires that MOH officials be
present to observe the slaughter process at U.S. plants to ensure
Halal requirements are fulfilled. Beef liver comes
from the USA, Brazil, and India. However, the U.S. imported
quantities of beef liver are small and not meeting the local
demand.
The Egyptian Ministry of Health prohibits the import of natural
products, vitamins, and food supplements in their finished
form. These items may be marketed in Egypt only through
local manufacture under license, or by sending ingredients and
premixes to a local pharmaceutical firm to be prepared and packed
in accordance with Ministry of Health specifications. Only
local factories are allowed to produce food supplements, and to
import raw materials used in the manufacturing process.
With the USAID assistance, the National Food Safety Management
(NFSM) has been formed and started operation. The Ministry
of Health, Agriculture, and Trade and Industry are represented in
the NFSM. It is the equivalent of the U.S. FDA. The
Egyptian Parliament will give final approval to this project in
its new round that started in November 2008.
The Nutrition Institute and the Drug Planning and Policy Center
of the Ministry of Health register and approve all nutritional
supplements and dietary foods. It takes from four months to
one year for approval. Importers must apply for a license
for dietary products. The validity period of the license
varies from 1 to 5 years depending on the product. After
the expiration date of the license, the importer must submit a
new request for license renewal. License renewal costs
about $500. However, if a similar local dietary product is
available in the market, registration for an imported product
will not be approved.
The Ministry of Health (MOH) must approve the importation of used
and refurbished medical equipment and supplies to Egypt in
advance; without the approval, such imports are banned. The
ban does not differentiate between the most complex
computer-based imaging equipment and the most basic of
supplies. At present, even new medical equipment must be
tested in the country of origin and proven safe before it will be
approved for importation into Egypt. The importer must
submit a form requesting the MOH’s approval to import medical
equipment. The importer will also provide a certificate
issued by official health authorities in the country of origin,
indicating that the medical equipment, subject to importation, is
safely used there.
The importer must also present an original certificate from the manufacturer indicating the production year of the equipment, and that the equipment is new. In addition, the importer must present a certificate of approval from the FDA or the European Bureau of Standards. The importer must prove it has a service center to provide after sales support for the imported medical equipment, including spare parts and technical maintenance. The MOH’s technical committee examines and reviews the technical specifications of the equipment before granting approval for import. These regulations also apply to donated medical equipment.
Customs Regulations and Contact Information
The Ministry of Finance has committed to a comprehensive reform of Egypt's customs administration. As part of USAID’s six-year program to support reform efforts, the Customs Authority has been reorganized according to international standards, modern customs centers were established in major ports to pilot test all new procedures such as risk management, and the implementation of a new IT system to link all ports/airports started. This system is expected to be fully operational by June 2009.
Egypt has joined the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) according to the presidential decree 334 for 2007. The accession process was ratified by the Egyptian parliament in December 2007. Joining the convention would align Egypt’s customs procedures with those of the World Customs Organization standard. According to the Customs Authority, the convention is considered an instrument for the harmonization of customs techniques, which covers aspects of customs legislation. It also aims at ensuring that customs systems and processes are not barriers to international trade and growth. The Customs Authority is actively taking measures to implement the convention.
The GOE established an Account Management System to streamline and facilitate the customs treatment of large importers. (The GOE has also established a Large Taxpayer Center to provide similar services for large sales and income tax payers.) Two model customs centers which offer simplified procedures were opened in Alexandria and Suez in 2005, in addition to one in Damietta. Other centers were inaugurated.
Tariff valuation is based on either the worldwide price list received annually from foreign producers/distributors, or if that is not available, they take the highest price available in the local market. In cases where customs officials suspect under-invoicing, they usually add from 10% to 30% (called improvement percentage) to the invoice value. Importers have the right to take legal action against the Customs Authority in the event of a dispute regarding appropriate valuation, including arbitration that takes fifteen days or more. During that time, the disputed shipments are withheld and the importer has to pay fees as deposit until arbitration is over.
The Egyptian Government has established a “white list” of importers who, under some conditions, are able to avoid full inspection of their shipments.
The ability to fulfill local content requirements is no longer required to obtain an approval to set up an assembly project. However, assembly industries must meet a minimum local content requirement of 45% in order to benefit from customs tariff reductions on imported industrial inputs.
Current importing regulations require that every component of a product be inspected, regardless of the compliance history of the product, country of origin, exporter, shipper or the importer. No import can be put up for direct sale on the Egyptian market without first proving that it conforms to Egyptian standards, if it is on the mandatory list. If there are no Egyptian standards that suit the imported product, then it must be defined using the standards of one of the international organizations that Egypt is affiliated with e.g. ISO, IEC, and Codex Alimentarius. On arrival of a shipment to the Egyptian ports, the process that takes place is as follows:
1) A committee from the Customs and Security office checks
the shipment for security reasons and determines whether there
are any illegal products.
2) The importer presents Customs with the documentation
required to clear the shipment.
After reviewing these documents, Customs either clears the
shipments for release to the importer directly or directs the
consignment to other bodies for testing and inspection. Custom
duties are then assigned and are paid in Egyptian pounds.
Standards
• Overview
• Standards Organizations
• Conformity Assessment
• Product Certification
• Accreditation
• Publication of Technical Regulations
• Labeling and Marking
• Contacts
Overview
Standardization's official application in Egypt started in 1957,
when presidential decree number 29/1957 established the Egyptian
Organization for Standardization (EOS). In 1997, the
organization's name was modified to Egyptian Organization for
Standardization and Quality Control. EOS is affiliated with the
Ministry of Trade and Industry and issues standards and technical
regulations through a consultative process with other ministries
and the private sector. Verification of compliance with
standards and technical regulations is the responsibility of
agencies including the Ministry of Health, the Ministry of
Agriculture and, for imported goods, the General Organization for
Export and Import Control (GOEIC) in the Ministry of Trade and
Industry.
Of Egypt’s 5,000 standards, 543 are Egyptian technical
regulations or mandatory standards. EOS reports that it has
harmonized mandatory standards with international standards and
that about 80 percent of its mandatory standards are based on
standards issued by international institutions such as the
Geneva-based International Organization for
Standardization. In the absence of a mandatory Egyptian
standard, Ministerial Decree Number 180/1996 allows importers to
choose a relevant standard from seven international systems
including ISO, European, American, Japanese, British, German, and
for food, Codex standards
Most of these specifications are optional except for those related to general health, public security, and consumer protection. A ministerial decision issued by the Ministry of Trade and Industry is needed to require compliance to these specifications. Obligatory standards constitute around 15% of the total number of Egyptian specifications.
Standards Organizations
There are three main official Egyptian governmental organizations involved in developing and enforcing the standards used and applied in Egypt. They are:
Egyptian Organization for Standards and Quality Control (EOS):
The EOS was established in 1957 and is affiliated with the
Ministry of Trade and Industry and issues standards and technical
regulations through a consultative process with other ministries
and the private sector. Verification of compliance with
standards and technical regulations is the responsibility of
agencies including the Ministry of Health, the Ministry of
Agriculture and, for imported goods, the General Organization for
Import Export Control (GOEIC) in the Ministry of Trade and
Industry.
Of Egypt’s 5,000 standards, 543 are Egyptian technical
regulations or mandatory standards. EOS reports that it has
harmonized mandatory standards with international standards and
that about 80 percent of its mandatory standards are based on
standards issued by international institutions such as the
Geneva-based International Organization for
Standardization. In the absence of a mandatory Egyptian
standard, Ministerial Decree Number 180/1996 allows importers to
choose a relevant standard from seven international systems
including ISO, European, American, Japanese, British, German, and
for food, Codex standards.
General Authority of Export and Import Control
(GOEIC):
GOIEC is affiliated to the Ministry of Trade and Industry. GOIEC
currently has 22 offices and laboratories located at all the
major sea and airports for import inspection as well as 11 others
located throughout the country for export inspection. GOIEC has
the responsibility for testing imported and exported products to
ensure they meet the stipulations of EOS standards. Moreover,
GOEIC may also indirectly generate standards through the use of
an "ad hoc" technical committee. This committee provides
recommendations for either creating or modifying a standard
accordingly, and these recommendations are then passed on to the
Ministry of Trade and Industry to be authorized and formalized.
Similarly, GOEIC also tests products for consumer protection
against economic fraud and deceptive practices- not solely for
quality purposes. A 1999 Presidential Decree assigned GOIEC as
the coordinator for all import inspections.
In 2005, new import/export regulations increased transparency and liberalized procedures to facilitate trade. The new regulations reduced the number of imported goods subject to inspection by GOEIC and allowed importers to use certifications of conformity from any internationally accredited laboratory inside or outside of Egypt for those goods still subject to inspection by GOEIC.
The National Institute for Standards (NIS):
NIS is affiliated with the Ministry of Higher Education and
Scientific Research. NIS is Egypt's primary standards laboratory.
NIS is mostly concerned with measurements, testing, calibration,
accreditation and consultation, and it also provides laboratory
accreditation services.
NIST Notify U.S. Service
Member countries of the World Trade Organization (WTO) are
required under the Agreement on Technical Barriers to Trade (TBT
Agreement) to report to the WTO all proposed technical
regulations that could affect trade with other Member countries.
Notify U.S. is a free, web-based e-mail subscription service that
offers an opportunity to review and comment on proposed foreign
technical regulations that can affect your access to
international markets. Register online at Internet URL: http://www.nist.gov/notifyus/
Conformity Assessment
For an imported shipment to be accepted at customs in Egypt, the
shipment must have the following documents: Commercial Invoice,
Certificate of Origin, Packing List, Bill of Lading, Pro Forma
Invoice, and Letter of Credit.
The current import regulations require that every component of a
product be inspected, regardless of the compliance history of the
product, country of origin, exporter, shipper, or importer. All
products that fall under the category of obligatory standards
cannot be put up for direct sale on the Egyptian market without
first conforming to Egyptian specifications. If there are no
Egyptian standards that suit the imported product then it must be
defined using the standards of one of the international
organizations that Egypt is affiliated with e.g. ISO, IEC, and
Codex Alimentarius. On arrival of a shipment to the Egyptian
ports, the process that takes place is as follows:
1) A committee from both the customs and security bodies checks the shipment for security reasons and for any illegal imports.
2) The importer presents the customs officials with the documentation required to clear the shipment.
3) After reviewing these documents, customs either clears the shipments for release to the importer directly or directs the consignment to other bodies, usually the GOIEC for testing and inspection. Customs duties are then assigned, and are paid in Egyptian pounds.
A problem that often takes place at customs is the process of what can be called “standard creation at port.” When a new product enters the country that has not previously been imported, customs officials will often insist that there must be a written description or standard to qualify a product for import. Hence, even if there is no such standard for the new product, the customs inspectors will try to fit the product into a previously existing standards category. The EOS often tries to apply the same standards to products that seem to be “historically” common in nature.
Inspection and testing of the imported goods will differ according to the nature of the consignment. Agricultural products for example, are sent to special agricultural authorities for detailed chemical inspection in the Ministry of Agriculture. Industrial and manufactured commodities may be directed for control at the Ministry of Industry and Trade. Some medical products, for example, will be directed to the Ministry of Health, EOS and other accredited laboratories. Since the establishment of GOIEC, it is mandatory that a sample be sent to the institute, most of the time for the sole purpose of classifying of the product according to HS codes. This process is a vital procedure in many cases where customs is unsure about product classification and tariffs due. Therefore, a number of different bodies legally have the rights to take samples of the imported shipment for further inspection and testing.
A large number of items are repeatedly imported into Egypt. Previous rules specified that every shipment must be tested to verify its conformity to standards requirements, irrespective of whether the preceding shipments were accepted or rejected, meaning inspection and testing must be repeated each time. The EOS has recently used past history of products, manufacturers, exporters and importers for clearing imported goods. When the product is first imported, it has to go through full inspection. If it is imported frequently within a year and each time all inspection procedures are cleared, then the product has a history file leading to reduced inspection afterwards. The exporter gains accreditation the more shipments are imported into Egypt.
Product Certification
The Egyptian Quality Mark scheme is based on the international standards listed in the ISO/IEC Guide 28/1982.
Presidential Decree No. 392/1979 stipulates that EOS is the national authority in the Arab Republic of Egypt to grant licenses permitting the application of the quality to industrial goods and products. Such licenses are only available for domestically produced goods, since acquiring such a quality mark involves not only the testing of the product, but also the inspection of the whole production line, similar to ISO accreditation. Hence, it is not viable for imported products, since inspection of the actual production company will have to take place.
In 1996, a Ministerial Decree No. 180 stated that all imports must abide by Egyptian product standards. In the case where there are no Egyptian standards that fit in with a specific imported product then the international standards listed below, in order of precedence, are acceptable:
- International Standards- ISO/IEC
- European Standards (EN)- if there are none, then British
Standards (BS), German (DIN), French (NF) standards are
applied
- American Standards (ANS)
- Japanese Standards (JIS)
- Codex Standards for food products.
In the absence of an Egyptian or international standard, authorities often will refer to the Analysis Certificate accompanying the product.
Certification:
All certificates issued concerning the shipment’s details, must be countersigned by the Chamber of Commerce and notarized by the Egyptian Embassy or Consulate in the country of origin.
Accrediation
Presidential Decree 312/1996 established the Egyptian Accreditation Council (EGAC), a governmental organization, as the sole national body for the assessment and accreditation of conformity assessment bodies performing testing/ calibration Laboratories, inspection and certification of products & systems as well as personnel. EGAC is headed by the Minister of Trade & Industry and governed by a board of 14 members, representing all stakeholders and concerned bodies. EGAC has contracted with UKAS of the United Kingdom who provides technical assistance.
EGAC/UKAS joint accreditation will be practiced for a transition period. The accreditation activity is to be carried out according to the relevant international requirements (ISO/IES guides 58,61,62,65 and 66 as well as ISO/IEC TR 17010 and 17020). Accreditation activity covers: product certification, system certifiers, inspection bodies, and testing and calibration laboratories and personnel certifiers.
Publication of Technical Regulations
The Egyptian Accreditation Council (EGAC) is currently publishing a directory for all the companies that have been accredited for ISO 9000 or ISO 14000 certificates.
The EOS library is the only library in Egypt specializing in the field of Standard Specifications and its related publications.
The library has more than 160,000 standard specifications in the form of complete groups; among these are 5000 Egyptian standards, and standards groups of more than 30 countries and regional and international organizations such as ISO, IEC, CODEX, and AIDMO as well as foreign standardization organizations. The library has also a large collection of catalogues, specification guides, bulletins, and magazines in the field of Standardization and its related activities alongside some references, books, and specialized dictionaries.
Labeling and Marking
Most imports require certain labeling and packaging requirements, especially food products.
Labeling requirements:
Production and expiration dates must be clearly shown on the
package. Information on the label cannot be easily erased,
scratched or altered. Information must be written in Arabic also.
Dates are accepted in English, but the words "production" and
"expiry" must be written in Arabic.
The label must include: -
• Name and address of manufacturer;
• Brand or trade mark (if applicable);
• Country of origin
• Type of product;
• Name and address of importer;
• Production and expiration dates;
• Product use instructions (optional);
• Ingredients;
• Storage instructions or storage temperature;
• Net weight;
• Gross weight and total number of packages per case or
carton;
• If preservatives are being used- percentages of each
preservative must be indicated;
• If meat or poultry, the statement that the meat "is
slaughtered according to Islamic ritual" or "Halal," must be
included; and
• For meat or poultry, all products must be in packaged and
sealed bags. Labels must be inserted inside the package as well
as on the outside. The label on the meat must include the
following:
1) Country of origin
2) Producer’s name and logo
3) Name of slaughterhouse
4) Slaughter date
5) Name and address of importer
6) Name of entity, which issued the “Islamic slaughter”
definition.
The Commercial Office in the Egyptian Embassy or Consulate in the
country where the product originated must then approve all these
labeling requirements.
Packaging requirements:
Article 74 of the Import and Export regulations stipulates that
the package should be fit for preserving the product, and the
product should occupy the space of the container in full. If a
container is wooden, the container itself should be accompanied
by an official certificate that states it is free from
wood-harmful pests and insects.
Multiple product samples:
Sampling and inspection duties are mainly carried out by the
GOEIC, however, some products may be subject to inspection by
other concerned institutions. GOIEC has been authorized to assume
inspection and certification functions without referral to any
higher authority, but for the food industry, for example, there
are 3-4 bodies involved that have the right to take samples from
any imported shipment. They are:
• The Radiation Department of the Ministry of Energy and
Electricity
• The Ministry of Health
• The Ministry of Agriculture (Veterinary Office)
• The Ministry of Trade and Industry (Export and Import
Control)
Each agency draws its own sample and tests it independently.
Shelf-life standards and product specifications:
In 1994, the government issued a decree that all food products
should have at least 50% of the established shelf life remaining
at the time of importation into Egypt. Moreover, Egypt applies
shelf life standards to certain non-food imports such as syringes
and catheters. Milk and dairy products, meat and products, fish
and products, and poultry and products, each have a shelf life
determined by EOS. Exporters to Egypt must be aware that
import and custom procedures take a period of no less than 2
weeks; hence, expiration dates must be at least twice that length
of time.
Contacts
Egyptian Organization for Standardization and Quality
Dr. Mahmoud Eissa, Chairman
16 Tadrib El Moalemeen St., Amirya, Cairo
Tel: +20 (2) 2284-5528 – 22845529, Fax: +20 (2) 22845504
Email: moi@idsc.net.eg
Website: www.eos.org.eg
General Authority of Export and Import Control
(GOEIC):
Mr. Mohamed Abdel Hamid El Banna, Chairman
Airport Building, Heliopolis, Cairo
Hot Line: + 20(0) 8006667666
Tel: +20 (2) 2266-9620/02, Fax: +20 (2) 2268-1731/02
Fax: +20 (2) 2576-6971, +20 (2) 2266-6847
Website: http://www.goeic.gov.eg/
National Institute of Standards (NIS)
Mahmoud Gharib El-Sherbiny, Manager
Tersa St., El-Haram, Giza
PO Box 136 Giza 12211
Tel: +20 (10) 604-4616, Fax: +20 (2) 3386-7451
http://www.nis.eg.net/
U.S. Embassy Cairo
U.S. Commercial Service
Ms. Hend El Sineity
Tel: +20 (2) 2797-3482, Fax: +20 (2) 2795-8368
Email: Hend.El-Sineity@mail.doc.gov
Website: www.buyusa.gov/egypt
Trade Agreements
Egypt is involved globally in several intra and inter-regional trade agreements, both multilateral and unilateral, including preferential trade agreements with the E.U., the U.S., Arab, African and European countries, some of which are:
• The General Agreement on Tariffs and Trade (GATT);
• The General Agreement on Trade in Services (GATS);
• Egyptian-European Mediterranean Partnership
Agreement;
• The Common Market for Eastern and Southern Africa
(COMESA);
• Trade and Investment Framework Agreement (TIFA);
• Pan Arab Free Trade Area (PAFTA);
• Free Trade Agreement between Egypt and Turkey, signed in
2005.
Moreover, Egypt has signed several bilateral agreements with Arab Countries: Jordan (December 1999), Lebanon (March 1999), Libya (January 1991), Morocco (April 1999), Syria (December 1991), Tunisia (March 1999). Additionally, in 1995, Egypt and China entered into a trade accord. Egypt also signed an economic treaty with Russia.
Web Resources
Commercial Service in Egypt: http://www.buyusa.gov/egypt/en/
American Chamber of Commerce in Egypt: http://www.amcham.org.eg/
U.S. Embassy: http://cairo.usembassy.gov/
U.S. Department of Commerce, Bureau of Industry and
Security: http://www.bis.doc.gov/index.htm
U.S. Department of Commerce’s Denied Persons List: http://www.bis.doc.gov/dpl/Default.shtm
U.S. Department of Treasury’s Specially Designated Nationals
List: http://www.treas.gov/offices/enforcement/ofac/sdn/
Egyptian Organization for Standards and Quality Control (EOS):
http://www.eos.org.eg/
Ministry of Foreign Trade and Industry: http://www.mfti.gov.eg/
Egyptian Accreditation Council: http://www.egac.gov.eg/
Egypt’s National Institute of Standards: http://www.nis.sci.eg
Central Bank of Egypt: http://www.cbe.org.eg/