Since publishing of the Draft Executive Regulations of Customs Law on the Ministry of Finance’s website last March 18, no remarks or proposals were received

Minister of Finance, Dr. Mohamed Maait, affirmed that current April 8 was the last date to receive Business Community’s remarks on the Draft Executive Regulations of the New Customs Law through the Ministry of Finance’s website "www.mof.gov.eg", and the Egyptian Customs Authority website "www.customs.gov.eg". Furthermore, since publishing of such Draft Regulation on last March 18, no remarks or proposals were received in this matter. Thus, it reflects that it meets the business community requirements because it has taken into account, in its preparation stage, the suggestions presented by the business community after issuance of the new Customs Law, as the minister also clarified.

 

In the same context, as mentioned in a statement issued by the Ministry of Finance, the Draft Executive Regulation of the New Customs Law includes a precise definition of some terminologies such as: Manifest Extracts, Postal Consignments, Clearance routes, and Advance Cargo Information (ACI) System. The said draft also involves more flexible provisions in applying custom exemptions to Egyptians and tourists returning from abroad, as the value of “allowed items” exempt from customs tax has been increased from  EGP 1,500 to 10,000.

 

The statement also added that the Draft Executive Regulation precisely clarifies the procedures to be followed by employees and those who are dealing with customs; so as not to leave the door open for the exercise of personal judgment or estimates. Cars imported for tourism purposes are completely exempt from customs tax, except “limousines”, which are exempted up to EGP 400,000. However, the customs tax shall be imposed, if the value exceeds the exempted level, as also explained by the statement.

 

Equally important, the Draft Executive Regulation confirms that there is no breach of any exemptions established in the other applicable laws, as pointed out by the statement. Further, this project involved the new custom systems that include free zones and economic zones of a special nature, without prejudice to any rights, advantages, or guarantees assessed for the beneficiaries of these systems in accordance with the provisions of investment and economic zones of a special nature laws. Moreover, the customs broker may be authorized to pay in installments the determined value of cash insurance in order to have an occupational licensing. This payment will be paid over 5 years in equal annual installments, and will be deposited with the Customs Authority for any fines or compensations imposed in case of contraventions.

 

In addition, the statement clarified that it is permissible to change destination of the imported goods, the customs system to be applied to them, and the numbers and weights of the goods, as well as correct material errors in manifests without imposing any fines. It is also permissible to amend the “clarifications” that the concerned person makes by himself/herself before determining the “parcels” for inspection, correcting material and mathematical errors at any phase even after the customs clearance, and changing the final destination of the exported consignments/messages before their arrival. All of this shall be attached by a request from the shipping agency, airlines, or shipping agents. It also pointed out that the Draft Executive Regulation included an accurate listing of the services provided by the Customs Authority, for those who are dealing with it, with the determination of the remuneration due on them that does not exceed the actual value of the service, as well as permitting the settlement of disputes through “arbitration”.

 

Likewise, the Draft Executive Regulation includes sufficient guarantees to protect the sanctity of private homes, headquarters of companies and bodies that deal with customs, when conducting the subsequent review of the customs data according to which the goods were released, the statement confirmed.

 

On top of that, the statement also added that the Draft Executive Regulation contributes to establishing the philosophy that ports are transit gates rather than storage places, as it stipulates that warehouses in ports be granted a three-month period to reconcile their positions with the stakeholders so that the period of goods’ survival does not exceed three months. Furthermore, there are incentive benefits for the golden group of Authorized Economic Operator “white list”; in accordance with the provisions of the Trade Facilitation Agreement, as the statement explained.