Egypt - Trade BarriersEgypt - Trade Barriers
Non-Tariff Trade Barriers
The Egyptian Minister of Industry and Trade issued a decree (992/2015) on Dec. 31, 2015, requiring foreign manufacturers of specific products to register for export with the Egyptian General Organization for Export and Import Control (GOEIC). This measure was superseded by a second decree (43/2016) on Jan. 16, 2016. Under Decree 43/2016, listed products will only be allowed entry into the Egyptian market if they are registered by the owner of the manufacturing facility or the legal holder of the trademark in advance. This list was expanded by Decree 44, issued on January 15, 2019.
Products for which registration is required:
In addition to the application form, the following documentation is required.
For Factories:
U.S. exporters must comply with all Egyptian laws and regulations to ensure customs clearance. Documents must be legalized at the local chamber of commerce, the U.S. Department of State, and the Egyptian Embassy in Washington, D.C. or consulates in other locations. For more information on documentation and registration to comply with the decree please contact: Office.Cairo@trade.gov
Useful Links: For more information and help with trade barriers please contact:
International Trade Administration, Enforcement and Compliance
ECCommunications@trade.gov
Enforcement and Compliance
Service Barriers
General Agreement on Trade in Services (GATS) Commitments
GATS restricts foreign equity in construction and transport services to 49 percent. In the computer services sector, larger contributions of foreign equity may be permitted, such as when the Ministry of Communication and Information Technology determines that such services are an integral part of a larger business model and will benefit the country. Egypt prohibits companies from employing non-nationals for more than 10 percent of their workforce. Limitations on foreign management also apply to computer-related services (60 percent of top-level management must be Egyptian after three years from the start-up date of the venture). A prohibition on the acquisition of land by foreigners for commercial purposes was amended in 2002 to allow such acquisition under certain circumstances.
Courier and Express Delivery Services
Private courier and express delivery service suppliers seeking to operate in Egypt must receive special authorization from the Egyptian National Postal Organization (ENPO). In addition, although express delivery services constitute a separate for-profit, premium delivery market, private express operators are required to pay ENPO a "postal agency fee" of 10 percent of annual revenue from shipments under 20 kilograms. In 2010, ENPO requested private courier and express delivery services to pay a fee of EGP 5 (USD 0.83) on each imported consignment under 20 kilograms.
Civil Aviation Decree 607/2015 requires all courier and express delivery services to have at least 51% Egyptian ownership. Currently U.S. and European courier services operate in Egypt.
Transportation
The GOE liberalized maritime and air transportation services in 1998. Since then, the Egyptian private sector has been conducting most maritime cargo activities, such as loading, supplying, ship repairs and container handling. Ninety percent of Egyptian trade moves through seaports. Egypt has 43 ports: 15 are commercial ports and 28 specialized ports, 11 serve the petroleum industry, 9 serve the mining industry, 5 serve the tourist industry, and 6 are used for commercial fishing. Seaports are located on both the Mediterranean Sea and the Red Sea.
Total containers handled in Egyptian ports was 6.2 million TEUs in 2017. Port Said handled 3 M TEU in 2017. The Port of Alexandria now handles about 65 percent of Egypt’s trade. Recent renovations and improvements of the Port of Alexandria include: construction of deeper quays to receive larger vessels; redesign of storage areas, warehouses, and associated infrastructure; installation of new fiber optic cables for data transmission; installation of a more automated cargo management system; and renovation of the passenger cruise ship terminal. While these renovations have resulted in a smoother flow of goods and services, the average time from arrival of a consignment to final release takes eight to nine days, including clearances by Customs and other agencies.
When shipments require approval from the General Organization for Export and Import Control (GOEIC), customs clearance takes from two to twenty days, depending on the type of cargo.
Egypt and the United States concluded an Air Transport Agreement in 1964. The countries have modified the agreement only twice since then, adding a security article in 1991, and in 1997 adding an amended route schedule, a limited agreement on cooperative marketing arrangements, and a safety article. The agreement remains restrictive and has no provisions for charter services. Private and foreign air carriers require approval of EgyptAir, the national carrier, to operate charter flights to and from Cairo. The United States remains interested in replacing the restrictive 1964 agreement with an Open Skies air services agreement.
EgyptAir joined the Star Alliance in July 2008. EgyptAir operates a direct flight between Cairo International Airport and New York’s John F. Kennedy Airport, and on June 4, 2019, it introduced a new flight between Cairo and Dulles international airport. A dedicated air cargo facility at Cairo International Airport serves as the main provider of airfreight services in the country. Five cargo terminals handle around 400,000 tons of cargo each year, 60 percent of which are exports from Egypt.
Other Services Barriers
Egypt maintains several other barriers to the provision of certain services by U.S. and foreign firms. Foreign motion pictures are subject to a screen quota, and distributors may import only five prints of any foreign film. According to Egyptian labor law, foreigners cannot be employed as export and import customs clearance officers, or as tourist guides. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The Egyptian Minister of Industry and Trade issued a decree (992/2015) on Dec. 31, 2015, requiring foreign manufacturers of specific products to register for export with the Egyptian General Organization for Export and Import Control (GOEIC). This measure was superseded by a second decree (43/2016) on Jan. 16, 2016. Under Decree 43/2016, listed products will only be allowed entry into the Egyptian market if they are registered by the owner of the manufacturing facility or the legal holder of the trademark in advance. This list was expanded by Decree 44, issued on January 15, 2019.
Products for which registration is required:
- Milk and milk products for retail sale in packages of 2 kg or less
- Preserved and dried fruits for retail sale in packages of 2 kg or less
- Oils and fats for retail sale in packages of 2 kg or less
- Chocolate and food products containing cocoa for retail sale in packages of 2 kg or less
- Sugar confectioneries
- Pastries and food preparations of cereals, bread and bakery products
- Fruit juices for retail sale in packages of 10 kg or less
- Natural, mineral and carbonated water
- Make-up cosmetics, oral and dental care products, deodorants, toiletries and perfume preparations
- Soap and surfactants intended for use as soap, for retail sale
- Floor coverings
- Bath tubs, sinks, wash basins, toilets, toilet seats and covers thereof;
- Toilet paper, cosmetic paper, diapers, and towels
- Tableware, cutlery and kitchenware
- Table glassware
- Reinforced iron
- Household appliances (stoves, fryers, air-conditioners, fans, washing machines, blenders, heaters)
- Home and office furniture
- Regular bicycles, motorbikes, motorized bikes
- Watches
- Lighting devices for home use
- Toys
- Textiles, clothing, furnishing, carpets, blankets and footwear except personal protection equipment and medical use clothes
- Carpets
- Bags
- Items for the transfer and packaging goods (containers, boxes, bags, and similar products)
- Shaving and hair care appliances
- Mobile phones
- Footwear
In addition to the application form, the following documentation is required.
For Factories:
- Factories must submit a registration form together with the following documents:
- Certificate of the legal status and the license of the factory
- List of the manufacturer’s products and its trademarks
- The trademark of the product and any licensed trademarks by the trademark owner
- A certificate to prove that the factory has a quality control system, issued by a body recognized by the International Laboratory Accreditation Cooperation (ILAC) or International Accreditation Forum (IAF) or from an Egyptian or foreign governmental entity approved by the Ministry of Foreign Trade.
- Licensees must submit a registration form together with the following documents:
- A certificate to prove registration of the trademark and a list of products manufactured under this trademark
- A certificate from the trademark owner listing the distribution centers that are authorized to distribute products with this trademark
- A certificate to prove that the trademark owner has a quality-control system, issued by an entity recognized by the International Laboratory Accreditation Cooperation (ILAC) or International Accreditation Forum (IAF) or from an Egyptian or foreign governmental entity approved by the Ministry of Foreign Trade.
U.S. exporters must comply with all Egyptian laws and regulations to ensure customs clearance. Documents must be legalized at the local chamber of commerce, the U.S. Department of State, and the Egyptian Embassy in Washington, D.C. or consulates in other locations. For more information on documentation and registration to comply with the decree please contact: Office.Cairo@trade.gov
Useful Links: For more information and help with trade barriers please contact:
International Trade Administration, Enforcement and Compliance
ECCommunications@trade.gov
Enforcement and Compliance
Service Barriers
General Agreement on Trade in Services (GATS) Commitments
GATS restricts foreign equity in construction and transport services to 49 percent. In the computer services sector, larger contributions of foreign equity may be permitted, such as when the Ministry of Communication and Information Technology determines that such services are an integral part of a larger business model and will benefit the country. Egypt prohibits companies from employing non-nationals for more than 10 percent of their workforce. Limitations on foreign management also apply to computer-related services (60 percent of top-level management must be Egyptian after three years from the start-up date of the venture). A prohibition on the acquisition of land by foreigners for commercial purposes was amended in 2002 to allow such acquisition under certain circumstances.
Courier and Express Delivery Services
Private courier and express delivery service suppliers seeking to operate in Egypt must receive special authorization from the Egyptian National Postal Organization (ENPO). In addition, although express delivery services constitute a separate for-profit, premium delivery market, private express operators are required to pay ENPO a "postal agency fee" of 10 percent of annual revenue from shipments under 20 kilograms. In 2010, ENPO requested private courier and express delivery services to pay a fee of EGP 5 (USD 0.83) on each imported consignment under 20 kilograms.
Civil Aviation Decree 607/2015 requires all courier and express delivery services to have at least 51% Egyptian ownership. Currently U.S. and European courier services operate in Egypt.
Transportation
The GOE liberalized maritime and air transportation services in 1998. Since then, the Egyptian private sector has been conducting most maritime cargo activities, such as loading, supplying, ship repairs and container handling. Ninety percent of Egyptian trade moves through seaports. Egypt has 43 ports: 15 are commercial ports and 28 specialized ports, 11 serve the petroleum industry, 9 serve the mining industry, 5 serve the tourist industry, and 6 are used for commercial fishing. Seaports are located on both the Mediterranean Sea and the Red Sea.
Total containers handled in Egyptian ports was 6.2 million TEUs in 2017. Port Said handled 3 M TEU in 2017. The Port of Alexandria now handles about 65 percent of Egypt’s trade. Recent renovations and improvements of the Port of Alexandria include: construction of deeper quays to receive larger vessels; redesign of storage areas, warehouses, and associated infrastructure; installation of new fiber optic cables for data transmission; installation of a more automated cargo management system; and renovation of the passenger cruise ship terminal. While these renovations have resulted in a smoother flow of goods and services, the average time from arrival of a consignment to final release takes eight to nine days, including clearances by Customs and other agencies.
When shipments require approval from the General Organization for Export and Import Control (GOEIC), customs clearance takes from two to twenty days, depending on the type of cargo.
Egypt and the United States concluded an Air Transport Agreement in 1964. The countries have modified the agreement only twice since then, adding a security article in 1991, and in 1997 adding an amended route schedule, a limited agreement on cooperative marketing arrangements, and a safety article. The agreement remains restrictive and has no provisions for charter services. Private and foreign air carriers require approval of EgyptAir, the national carrier, to operate charter flights to and from Cairo. The United States remains interested in replacing the restrictive 1964 agreement with an Open Skies air services agreement.
EgyptAir joined the Star Alliance in July 2008. EgyptAir operates a direct flight between Cairo International Airport and New York’s John F. Kennedy Airport, and on June 4, 2019, it introduced a new flight between Cairo and Dulles international airport. A dedicated air cargo facility at Cairo International Airport serves as the main provider of airfreight services in the country. Five cargo terminals handle around 400,000 tons of cargo each year, 60 percent of which are exports from Egypt.
Other Services Barriers
Egypt maintains several other barriers to the provision of certain services by U.S. and foreign firms. Foreign motion pictures are subject to a screen quota, and distributors may import only five prints of any foreign film. According to Egyptian labor law, foreigners cannot be employed as export and import customs clearance officers, or as tourist guides. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.