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| Practical
Guide | Export Procedure |
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Saudi Arabia |
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Bahrain |
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Egypt |
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United Arab Emirates |
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Kuwait |
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Oman |
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Syria |
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Yemen |
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1. Local
representation / agents and distributors agency legislation |
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A foreign
company may appoint a commercial agent from the private or
public sector to represent its interest in Egypt. The appointment
of a commercial agent is obligatory for making tenders or
for purchase offers to committees of public sector organisations
and government agencies in Egypt. |
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Commercial
agents arenot permitted with respect to offers made to the
Ministry of Defence. |
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An agent is not required when dealing with the private sector. |
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It's easier
for most foreign companies to appoint a local agent who can
deal with problems related to communication, bureaucratic
procedures, local business practices and marketing. |
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2. Labelling
and packaging regulations |
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Labelling
must the following:
- Name and address of manufacturer.
- Brand or trade mark, if appropriate.
- Country of origin.
- Type of product and grade.
- Name and address of importer.
- Production and expiration dates.
- Product use instructions (optional).
- Product ingredients.
- Storage instructions/storage temperature.
- Net weight.
- Gross weight and total number of the packages per case
or carton.
- Products containing preservatives, must the percentage
of each preservative.
- Meat or poultry products must have the following statement:
"slaughtered according to the Islamic ritual"
or "Halal slaughtered".
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Special regulations
exist for some items, including foodstuffs, pharmaceuticals
and textiles. |
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Labelled information
should not be erased, scratched or altered in any way. The
information should be printed in Arabic on the package using
indelible type, but stuck on labels will normally be accepted
as well. |
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Arabic language
is mandatory. Information that is provided in English only
is generally not allowed. |
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Appropriate
packaging must be provided for food products. These should
be clean and odourless, so as preserve the product and prevent
damage occurring. Production and expiry dates must be clearly
displayed on the product's packaging. |
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There are
certain food import requirements that must be observed including
the following:
- Labelling requirements.
- Multiple product samples.
- Restrictions on the use of artificial colours.
- Shelf-life standards and product specifications.
- Shipping documents.
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Rules regarding
how markings should be placed on the outer packaging will
usually be stated in the contracts, and it is important that
each individual package is clearly marked and numbered in
accordance with the bill of lading. |
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Strong, watertight
packaging, which can also withstand rough handling, high temperatures
and atmospheric humidity should be used at all times. |
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Packaging
materials used internationally for packaging goods for Egypt
will usually suffice, although the use of cotton wool for
second hand materials and plant residues, which may contain
pests, is prohibited. |
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The product
should fill the package completely, so that the packed items
are protected. If the package is wooden, it should be accompanied
by an official certificate which states that it is free of
wood pests and insects and be sealed with metal hoops. The
following information should be written on each package in
clear Arabic letters in a non-erasable manner:
- The name of the product, its trade mark (if any), type
of product and its brand.
- The product's technical data and mode of operation.
- Data and international marks that should be observed
during transportation and handling.
- Country of origin.
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Data which
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 equipment that is operated electrically.
- Safety measures.
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Products prone
to rust and corrosion should be painted with a special protective
paint. Check that the labelling on the goods conforms to the
current Egyptian labelling regulations for the product in
question. |
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Be aware
that packaging and import description discrepancies can lead
to payment default. |
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It
is recommended that all documentation is in Arabic, or bi-lingual
(English and Arabic). |
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3. Exchange
controls |
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There are no restrictions on foreign exchange currency transfers
outside the country. |
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Although
the government promotes the creation of closer economic ties
with its neighbours and trading partners, it does not encourage
increased Egyptian investment abroad. |
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The only
foreign exchange restriction is a five-year period for transfer
of sale proceeds of real estate in Egypt owned by foreigners
residing outside Egypt. |
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4. Import
controls |
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The import
regulations provide that goods may be freely imported and
exported, provided they are not on the prohibited list and
the relevant duty is paid. |
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The import-banned
list applies mainly to textiles and apparel. This ban may
be lifted within the next two years and replaced with protective
tariffs. |
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Law 121 of
1982 requires that an importer who wishes to import goods
for the purpose of trade must be registered in the Register
of Importers and be an Egyptian national. |
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5. Export
controls and licensing |
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The Europeans
Governments maintains export controls to prevent the export
of goods, including technology, for a variety of reasons including:
- the collective security of your European state and its
allies in NATO
- national security and foreign policy requirements
- international legal obligations and commitments
- non-proliferation policy
If goods or technologies are subject to your state export
controls, a licence is required to gain the legal authority
to export them. |
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6. Documentation |
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Certificate
of origin
The Ministry of Trade issued a Decree
(619/1998) on 21 November 1998 stating that all products imported
into Egypt should be accompanied by a Certificate of Origin
legalised by the Egyptian Mission in the country of origin.
Some goods, mainly consumables, must be shipped direct. This
measure has placed additional burden on many European exporters
and manufacturers. The only concession regarding this rule
so far is to allow for goods manufactured in one EU Member
State to be exported from another Member State as long as
the EU certificate of origin is used and the goods stated
as manufactured in the EU. If the country of origin were stated,
egUE, then the certificate of origin would need to be legalised
in that country. Otherwise the certificate can be legalised
in the country from where the goods are shipped. |
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Letter of
Credit
The Central Bank of Egypt has recently
advised all banks operating in Egypt that L/Cs must be covered
100% in cash by the importer. This practice was brought in
at the beginning of March 1999 and overtook the previous procedure
whereby banks and their clients reached their own agreements
and covered, usually, only 10-20% of the L/C?s value. Banks
are strictly adhering to this ?advice?. As a result to this
new role, a shortage in US Dollars in the market was recognised
by foreign companies operating in Egypt |
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7. Commercial
samples and Temporary Imports |
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All commercial
samples and temporary imports which are intended for an Egyptian
importer are duty free. |
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With
the exception of :
- goods which are cited on the list of prohibited imports.
- The goods must not exceed a certain value or be suitable
for resale.
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If the party
concerned does not meet these conditions, a deposit may have
to be paid along with a signed declaration that the goods
will be re-exported. |
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Parties wishing
to import samples which are included in the list of prohibited
imports, may be required to pay customs duties and other taxes,
along with a declaration that the samples will only be used
or tested in a production process. The forwarding documents
must clearly show that the goods in question are commercial
samples. |
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Medical samples
must comply with the rules for the importation of pharmaceuticals,
and samples of foodstuffs must comply with the relevant health
regulations. |
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It is generally
more straightforward importing samples as baggage, as consignments
of samples by air mail of airfreight are subject to the same
import formalities and customs treatment as general imports.
Exporters may find that the samples are detained in Customs
for up to several weeks. It is recommended that consultations
be carried out with the Egyptian importer in order to ascertain
the best method of importing samples without difficulty. |
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Temporary
Imports A letter of guarantee is needed and this can be obtained
from any Bank or the National Bank of Egypt (who also hold
the format for the letter). |
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8. Customs
duties |
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Since 1991,
under its economic reform programme developed in conjunction
with the IMF and World Bank, the Government has reduced its
tariff rates to a maximum rate of 40%, with a few exceptions
such as cars with engines larger than 1300cc, alcoholic beverages
and certain luxury items. |
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In February
1994, Egypt implemented the Harmonised System (HS) which replaced
the previously used CCCN. The Egyptian Government does not
abide by tariff rates outlined in the GATT, having received
a waiver of its obligation to provide these lower rates. |
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The waiver
was approved with the government pledging to negotiate new
rates with its GATT members. The target year for reaching
minimum tariff rates is year 2005. To counterbalance the reduction
in tariffs, the government levies service charges on the value
of imported shipments in return for inspection, listing, classification
and examination of shipments. |
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This surcharge
is 2% for commodities subject to customs duties between 5
and 30% and 3% for those subject to custom duties over 30%.
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When importing
into Egypt, the custom duties are often high due to hidden
costs, which increase the effective rates. Sales tax will
also apply see with your commercial attache or agent representative |
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