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Thursday, 1 March 2018

Customs Act lowers tariffs on capital goods to 2% from 5%

LEGISLATION WATCH- The new Customs Act would slash customs duties on capital goods to 2% from a current 5%, Customs Authority head Magdy Abdel Aziz tells Al Shorouk on Wednesday. The move is part of a series of incentives laid out in the proposed law, which also include expanding temporary exemptions for production inputs and packaging equipment. He added that the law would exempt cars for the disabled from custom duties.

Abdel Aziz also said that the Customs Authority was studying the impact of Egypt joining the Mercosur freetade agreement on customs revenues. When Egypt signed the agreement, tariff rates for a number of goods had been set yet, he added. The agreement had only laid out five categories of goods, each with its own tariff rates, so it is not yet clear how the agreement will impact certain goods.

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