Egypt country guide

• The Government of Egypt (GOE) understands that attracting foreign direct investments (FDI) is key to addressing many of the economic challenges it faces.
• Egypt has a diverse economy open to new trade opportunities.
• Egypt’s society struggles with excessive bureaucracy. Slow and cumbersome customs procedures make doing business difficult.
• Egypt also has non-tariff trade barriers, which is unattractive for trade.

• The duty and value-added tax (VAT) rates are low, which is favorable for landed cost.
• Egypt’s de minimis is 0 EGP, so duty and tax will be charged on every import, which can result in high landed costs.

• Egypt deals with unreasonable bureaucracy.
• Egypt’s customs laws intend to drive foreign investment, simplify international trade, streamline customs, and more.

• Most major carriers ship to Egypt, and its close proximity to the high-traffic Middle Eastern and North African (MENA) trade routes allows for easier shipping.

• Egypt accepts a variety of methods for online payments, such as cash, ewallets, credit cards, bank transfers, and debit cards.

Normally, duty and tax are only charged on imports where the CIF value of the import exceeds the minimum value threshold (de minimis). However, Egypt does not operate a de minimis, which means duty and tax fees are charged on all imports. The only time imports to Egypt are exempt from duty and tax is when they receive preferential treatment through trade agreements.

• Duty and tax de minimis: 0 EGP

Note: Based on the FOB value of the order

Value-added tax (VAT):

The standard VAT rate is 14%, but there is a reduced rate for certain goods. Machinery and equipment used to produce taxable or nontaxable goods or services, agricultural supplies, necessary foodstuffs, oil goods, advisory services, and the development of new properties receive a reduced VAT rate of 5%.

• Standard rate: 14%
• Reduced rate: 5%

Note: Applied to the CIF value of the order

The average duty rate for all imports is 10.5%, but rates range from 0% to 60%.

• Average rate: 10.5%

Note: Applied to the CIF value of the order

Other import fees

Exemptions

Goods that are exempt from customs fees:

• All medications related to infectious, chronic, psychiatric, and neurological diseases
• Medical equipment used for dialysis
• Non-processed oil, gas, and mineral resources
• Media production, including the production of films, literary, and artistic work
• Silkworm eggs
• LED bulbs and light-emitting diodes

New tariff:

• Egypt has introduced a new tariff that covers sterilized and polymer-ethylene-manufactured surgery bags. Agricultural and nutritional products have received most of the financial benefits offered by this new customs tariff.

Automotive goods fees:

• 1600 CC engine power vehicle fees were reduced by 10%, higher engine-powered vehicle fees were reduced by 35%, and electric automobiles are exempt from fees.

Custom fees on miscellaneous goods:

• Custom fees on personal care and hygiene products (e.g., toothpaste, shaving creams, medical soaps), sportswear, and protective uniforms made of cotton and synthetic fibers receive a 20% tariff. Tariffs on baby strollers were also reduced to 20%.

Unified tariff:

• A 40% customs tariff has been applied on TV screens and monitors.

Egypt has at least 12 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries, and many bilateral agreements with Arab countries.

Egypt is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), Egypt must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

• DHL Express
• FedEx
• UPS
• USPS
• SMSA Express
• Bosta

Depending on the courier, additional shipping fees may include:

• Tracking
• Insurance
• Fuel surcharge
• Remote delivery charge
• Signature fee
• Overweight or oversized fee
• Special handling fee
• Dangerous goods fee
• etc.

• Bill of lading or air waybill
• Commercial invoice
• Certificate of Origin
• Packing list
• Pro Forma invoice
• Letter of credit

Egypt’s Ministry of Finance issued a decree in 2021 on pre-shipment registration under a new single-window system. The decree is only applicable for business-to-business (B2B) shipments that are over 50 kilos and above $2,000 USD. It requires that B2B import documentation for Egyptian agencies at ports of entry be submitted through this new single-window system (called “Nafeza” – the Arabic word for window) 48 hours prior to shipment arrival. This process became obligatory on October 1, 2021. This system requires importers to submit all necessary shipping documentation and transaction data (customs duties, import controls, port of entry, etc.) via the online “e-portal” in order to facilitate the release of the importers’ goods from ports in Egypt.

The Egyptian importer of an inbound package must sign into the online e-portal and submit the required shipping documents. Upon successful submission, the importer will be issued an Advanced Cargo Information identification number (ACID). Either the Egyptian importer or a customs broker acting on behalf of the importer may access the online e-portal to request the issuance of the ACID number for a particular shipment. Exporters should work closely with their clients in Egypt to ensure their consignments comply with import requirements.

Some of the most popular online stores in Egypt are as follows: OLX.com.eg, btech.com, Jumia.com.eg