Business

Egypt Announces New Tax Cuts on Industrial Imports

Egypt’s Ministry of Finance has approved temporary cuts to duties and taxes on imported industrial inputs, intended to support the manufacturing sector. Projects and entities working within established controls will pay zero customs taxes, fees and other taxes on a temporary basis for priority inputs imported for manufacturing into finished export goods. To be eligible for the incentives, appropriate projects and entities must provide a guarantee of at least 60% of the total value of the shipment’s customs tax, as well as other customs fees on ready made items – such as fabrics and clothing, 30% of which will comprise cash or bank guarantees. The government also plans to include all companies that comply with specific temporary permission system regulations on the “Economic Actors” list, enabling them to access incentives easing imports customs clearance procedures. These incentives include cargo customs clearance through the green path system; priority customs declaration registration; x ray examination, detection and inspection; and release procedures completion after normal working hours. They will also be eligible for goods sample examination at the General Organization for Export and Import Control, with the ministry appointing a logistics centre coordinator to assist firms in completing customs clearance.