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Sunday, 4 June 2017

Gov’t moves to tighten control of exports by hiking capital requirements for importers

Tightening control of imports: The Trade and Industry Ministry issued amendments to the executive regulations of the Importers Registry Act on Saturday meant to tighten control of imports, Reuters says. The amendments — which complement changes to the Importers Registry Act that were issued in March — raise the minimum capital requirement for the smallest importers to EGP 500k from EGP 10k previously, EGP 2 mn instead of EGP 15k for limited liability companies, and EGP 5 mn for joint stock companies. These measures, which come at the heel of amendments to import-export regulations last week, are meant to curb the import of low-quality goods and encourage local investment and industry, the ministry said in a statement, according to the newswire. The government is giving companies six months to comply with the new directives and submit the necessary paperwork (listed here on Ahram Gate). The new regulations will come into effect once published in the Official Gazette.

The ministry will also be sending this week its final draft of the executive regulations for the Industrial Permits Act to the Council of State for review, Youm7 reports. The act is meant to cut red tape for businesses looking to license new plants and upgrades.

The news on the importers’ registry comes as Egypt is looking to increase its exports to USD 40-50 bn from their current “low” levels of USD 15-20 bn, Finance Minister Amr El Garhy said, according to Al Ahram. He said one third of Egypt’s imports originate from the European Union, but that bloc accounts for only a quarter of our exports. El Garhy’s comments were made on the sidelines of economic talks with an EU delegation in Cairo.

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