Tariff & Non-Tariff Barriers

Tariff Barriers

Achieved Advantages for Importers & Investors In Customs field

First: Through Harmonious Custom Tariff

Custom tariff is considered one tool of economy & finance policy applied in our country by which we can achieve balance between all economic activities, like decreasing custom tariffs troops in tariff schedule on production requirements of factories, and also on small rising industries like collecting industries to facilitate expansion in exporting national commodities compete with foreign ones in price and quality.

There are many economic sectors in Egypt have the advantage of reduction included in custom tariff which are:

(1) In construction and building field:
Egypt takes into consideration price increasing of reinforced iron as one of the main components of construction and building industry.

Our country also takes into consideration changes in custom tariff in other sections under the title (Reinforced Concrete) as they are lowered into 5%.

(2) In National Products field:
The main aim of the new custom tariff changes is supporting these industries to enable it compete with the imported ones, this could be done by raising custom tax on imported grades to protect national industries and also decreasing or discharge the basic elements of some commodities or production requirements to encourage national production.

(3) In Medical Field:
Custom tax has been decreased on many of medical equipments & its tools between 2% & 5%  as follows:

(a) Medical equipments of surgical room 5%
(b) Heart beats organizer 2%
(c) Hearing Release Equipments 2%
(d) Artificial knuckle 2%
(e) Orthopedics equipments 2%
(f) Artificial teeth (denture) 2%

(4) In Textile field
It was put into consideration lowering its custom tax or discharging it completely for all machinery and equipments and production requirements of textile factories to help them decrease the final product prices in order to compete with foreign products.

(5) In collecting industry field
Section 6 in the introduction of custom tariff specified the advantages, which collection industries are enjoying, like washing machines, refrigerators, televisions, heater, fans and others of engineering & industrial commodities that all collecting factories benefit of customs lowering as the more national requirements increases over foreign ones. The more lowering rate increases, the lowering rate of custom tariff can reach 90% .

Second: Through Law No 186 of Custom Discharges for the Year 1986 and its Amendments

(1) Advantages and reductions mentioned in favored, doublness, Arabian , African & international agreements visualized in:
Favored agreement between Egypt & Jordan
Favored agreement between Egypt & Saudi Arabia
Favored agreement between Egypt & Libya
Favored agreement between Egypt & Lebanon
Agreement of facilitating and developing trade exchange between Arab countries
Agreement of the great Arab Free Trade Zone as the lowering rate reached 100% for the exchanged commodities between member countries
Agreement of common market for East & South Africa (COMESA) issued by the republic decision No344 of the year 1998.
Agreement of the European partnership
Agreement of QIZ (Qualified Industrial Zone) between Egypt, America & Israel.
Agreement of Commodity Import Program for the private sector signed between Egypt & America through The American Agency For International Development.

The most important condition to enjoy the lowering mentioned in most of the above agreements is the CERTIFICATE OF ORIGIN and its expiry is only four months.

(2) Enjoying Unified Custom Tax 5% mentioned in section4 of the Law Concerning Equipments & Machinery Required for Establishing The Following Projects:
Investment projects and free zone according to law No8 of 1997
Joint-stock companies projects according to law No159 of 1981
Construction projects under the authority of law No 62 of 1974
New constructional projects according to law No 59 of 1979
Reclamation & cultivation projects raised on lands subject to law No. 143 of 1981 concerning desert lands
Co-operative housing projects subject to law No. 14 of 1981.
Products imported by tourist & hostel foundations mentioned in tourist law No.1 of 1973 of machinery and equipments necessary for establishing them.

Third: Through Custom Law No.66 OF 1963 and its amendments:

(1) Goods subject to Draw Back System:
Equipments for factory production imported and re-exported after being industrialized.
The disposal on these foreign imported equipments and never consulting customs and this is considered contraband according to subject 98 of custom law, even after changes of this subject according to law No157 of 2002 the disposal is not considered contraband but became contravention and the penalty is additional tax of 4% for every month after exchange date.

( 2 ) Value Agreement and imported goods bills:
Before applying GAT agreement (subject7) concerning value of custom equipments, custom authority improved bills prices, this improvement is accompanied by penalty of value variance and this caused financial damages to serious importers.
But after applying subject 7 concerning value since 1/6/2001, it was a must on customs to accept the value mentioned in imported commodity bills and it has no right to add or improve bills prices as long as it represents the real value of transaction.