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New Restrictions on Temporary Clearance of Imported Cars


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News Date: 6/17/2010 12:00 AM  New Restrictions on Temporary Clearance of Imported Cars 
Dr. Youssef Boutros Ghali, the Minister of Finance, gave detailed instructions to tighten procedures related to the temporary customs clearance of cars, to address loopholes that may be taken advantage of,  specially by car owners coming back home from Libya.

The new regulations oblige car owners, benefitting from the Trip Ticket system, to drive their own temporarily cleared vehicles, and not to rent them to anyone else, Dr. Ghali said. Defaulting motorists will face the risk of the immediate re-exportation of their cars, and the suspension of the Trip Ticket system benefits for two years. All car clubs will be notified of the new regulations.

Egyptian expatriates returning for a short stay in the country could have their cars released for a maximum of 6 months, paying L.E. 500 for the first 3 months, in addition to another L.E. 1,000 for the next three months, said Mr. Galal Abul Fotouh, Minister of Finance's Advisor for Customs Affairs. Moreover, the Egyptian expats would be entitled to a special discount (ranging from 10% to 50% of the due fees) in case they seek a final clearance of the vehicles, provided that they be the first owners of those vehicles.

As for the customs on European vehicles, the European imports will benefit from a reduction of 10% on customs tariffs according to the Egypt-EU trade agreement, Mr. Abul Fotouh added.  The 40% standard duty, will be reduced to 36% only, according to Egypt-EU trade agreement, provided that the car be imported from one of the European signatories to the agreement, and that the vehicle be shipped directly to Egypt  (in compliance with the country-of-origin rule).

Travelers arriving to Egypt will have a duty-free allowance of up to L.E. 1,500 for items bought abroad, provided that these items be not for trade purposes, he added. Likewise, according to the Agreement of Arab Free Trade Area (Agreement To Facilitate and Develop Trade Among Arab States), most of the products made in Arab countries are duty-free, as long as they have a local component of more than 40%. Arriving passengers are entitled to duty-free goods not exceeding US$ 200 at duty-free shops within 48 hours of arrival - up to twice a year for Egyptians and 4 times a year for foreigners, and only if the passport holder is present.

More staff and operation rooms will be in place at airports and land ports in preparation for the summer peak. Besides, signs explaining all required customs procedures will be posted in Arabic and English, said Mr. Ahmed Farag Saudi, Commissioner of the Egyptian Customs Authority (ECA) on his part.

As for cash, incoming or outbound passengers could carry up to L.E. 5,000, and US$ 10,000 (or the equivalent in other currencies). Larger amounts will have to be declared upon arrival or departure, by filling the relevant forms provided by airports and seaports.

(Source : Ministry of Finance)

 

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New Restrictions on Temporary Clearance of Imported Cars