Egyptian Customs Law 207: A Comprehensive Review

Egyptian Customs Law 207: A Comprehensive Review

The Arab Republic of Egypt enacted Law No. 207 of 2020, which introduces a comprehensive Customs Law to govern the country’s trade and customs regulations. This new legislation aims to streamline customs procedures, enhance administrative efficiency, and align Egypt’s customs practices with international standards. The law covers various aspects of customs operations, including permanent and temporary customs release, as well as transit trade procedures.

Permanent and Temporary Customs Release:

The Customs Law provides detailed guidelines for the permanent and temporary release of goods into the Egyptian market. Permanent release refers to the clearance of goods for consumption within the country, where the importer pays the applicable customs duties and taxes. The law outlines the customs declaration process, cargo inspection, and the determination of the customs value and origin of the goods.

In contrast, the law also introduces provisions for temporary customs release in articles No. 34 and 35. According to article No. 34, temporary release of goods may be permitted with the suspension of payment of customs duties and taxes, provided a guarantee is submitted in accordance with the Executive Regulations of this law. The temporary release of machinery, equipment, devices, containers, and means of transportation (except for passenger cars and yachts) for operation or rental within the country is subject to a customs tax of 2% of the customs duty due on the date of temporary release, collected monthly or in part, with a maximum of 20% annually. This tax is applicable throughout their stay within the country until their re-export abroad or final release.

For machinery, equipment, and components related to new and renewable energy, as well as their spare parts, a customs tax of 1% of the customs duty imposed on the date of temporary release is applicable, collected monthly or in part, with a maximum of 10% annually.

The Executive Regulations of this law will specify the conditions for suspending payment for passenger cars and yachts, not exceeding 5% of the tax value per month or part thereof. Additionally, the regulations will outline the cases, guarantees, periods, conditions, and situations necessary for the application of this system. In all cases, an amount equivalent to the percentage paid for the month in which the final release takes place will be deducted from the customs tax.

The law allows for the storage of goods within licensed customs warehouses or temporary customs warehouses until necessary customs procedures are completed. This mechanism enables importers to defer payment of customs duties and taxes, facilitating trade and logistics operations. The law specifies the responsibilities of licensed parties operating these warehouses, ensuring proper control and oversight by the Customs Department.

Transit Trade Operations:

The Customs Law also addresses the regulations governing transit trade in article No. 25, which involves the movement of goods through Egyptian territory without being cleared for domestic consumption. The law defines the customs lines, checkpoints, and control domains where customs authorities have the jurisdiction to carry out their duties. Importers and carriers engaged in transit trade are required to comply with specific documentation and reporting requirements, ensuring the traceability and monitoring of goods in transit.

The law also empowers the Customs Department to take necessary measures to prevent the entry of banned or prohibited goods, safeguarding national security and public interests. Additionally, the law provides for the adjustment of customs conditions for goods cleared before the new law came into effect, ensuring a seamless transition for existing trade operations.

The Egyptian Customs Law No. 207 of 2020 represents a significant step forward in modernizing the country’s customs framework. By introducing comprehensive regulations for permanent and temporary customs release, as well as transit trade operations, the law aims to facilitate international trade, enhance efficiency, and strengthen customs control. As importers, exporters, and logistics providers navigate the new legal landscape, they will need to familiarize themselves with the updated procedures and requirements to ensure compliance and maximize the benefits of the revised customs regime.

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