Back to the complete issue
Monday, 22 March 2021

FinMin issues new Customs Act regs

Companies importing capital goods they need to grow — including heavy equipment and machinery — could get a breather under upcoming changes to the Customs Act’s executive regulations (pdf), the draft of which the Finance Ministry has completed ahead of their being put up for public consultations. The regs would allow importers to pay customs in chunks over six months for businesses that are up and running, and over the course of one year for ventures that are still in the construction phase.

Shippers could also be allowed to move goods out of Egypt without submitting waybills on the spot and would instead be given the option of handing over the documentation 48 hours after leaving the country. This applies to cargo ships, planes, and other vessels with or without cargo. The Customs Authority had agreed to introduce this concession in the act’s executive regulations last month.

Background: We have a bulleted rundown on the new Customs Act here if you need to get up to speed. The recently-approved law came into effect late last year and aims to expedite customs clearance. It received a final nod from the House of Representatives in August 2020, but has since been met with pushback from exporters, shipping agencies, and customs brokers. Their grumblings led the Finance Ministry to make minor concessions, including on ins. requirements.

IN OTHER LEGISLATION NEWS-

FGM is now punishable by at least five years in prison and up to a decade if the victim is permanently disabled after the Senate signed off on tougher penalties for the illegal procedure in a plenary session yesterday, Al Shorouk reported. The penalty in the case of a victim’s death is at least 20 years in prison. Medical professionals found guilty of FGM will face similar prison terms and will be stripped of their medical license for at least five years. Those who promote or encourage the practice will also face prison time.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.