**[UNOFFICIAL TRANSLATION]{.underline}**

**[FOR THE EXEMPTION CIRUCLAR NO. (3)]{.underline}**

Ministry of Finance

Customs Administration

Office of the Commissioner

[EXEMPTION CIRCULAR NO.3 OF 1994]{.underline}

Further to exemption circular no.6 of 1993 regarding the customs
exemption of imported vehicles, materials, and supplies imported under
the economic, technical, and related assistance agreement between Egypt
and the united states of America, presidential decree no. 458 of 1978,
and in response to the inquires related to the implementation of the
above cited circular, please adhere to the following:

**First: [THE EXEMPTION SCOPE & CONDITIONS]{.underline}**:

1.  Established exemptions for the U.S. Employees, who have contracts to
    implement the U.S. Grant Funded Projects, will include us employees
    under personal services contract with USAID, whether they are under
    certain projects or not. They will receive an exemption only for one
    vehicle for each of them in addition to their personal effects, and
    household goods based on the same conditions stated in the exemption
    circular no. 6 of 1993, and pursuant to a letter of certification
    from USAID.

2.  If the sub-agreement for a certain project includes clauses for
    customs exemptions for other nationalities employees
    (non-Americans), these clauses shall be applied, within the limit of
    the text, to this project, provided that the agreement has been
    issued through a low presented and approved by the legislative
    authorities, considering that the specific clause supersedes the
    general clause. If such clause is not included in the sub-agreement,
    the temporary release system will be applied until the released
    items are re-exported.

**Second: [DISPOSITION]{.underline}**:

1.  Project commodities funded by U.S. grants. Under a specific
    sub-agreement cannot be disposed of to the others. If disposition
    occurs, the custom exemptions law, general rules for disposition
    will be applied.

2.  Items imported under the name of a contractor and owned by him. But
    not funded by a specific project's grant can be transferred from on
    project to another under the same system. Such items can be
    re-exported. However, disposition of these items to the others
    prohibited before getting an approval from the customs
    administration and payment of customs duties and other taxes.

3.  The Customs Administration authorizes us employees to dispose of
    their POV and personal effects and household goods without paying
    customs duties after three year from the date of the release, or in
    case of transfer based on the U.S. Government Instructions, on
    condition that the employee, and the vehicle or the exempted effects
    should have been in Egypt fro two year at lease. The buyer or
    recipient of the disposed items will pay the sales tax, unless he
    has the same or similar exemption, if the vehicle of the effects is
    disposed of before the elapse of the above periods or the
    on-compliance to the above conditions the assessed customs duties
    will be paid according to its condition at the time of disposition.

4.  Any disposition of the exempted or temporary released items I not
    permitted without the customs administration approval, whether this
    disposition was made based on exemption or payment of the customs
    duties. The customs status of the vehicle or the effects will be
    settled at the customs release deport based on the above mentioned
    rules.

> **Third:** any contradictions to the above rules shall be deleted form
> previous circular or circular no.6 of 1993. Other rules in the
> previous circular which have not been superseded will remain valid.
>
> **Forth:** we reconfirm the contents of Circular Number 6 of 1987
> which states that imported commodities through the U.S. Commodity
> Import Programs (CIP) are not subject for the established exemption of
> presidential decree no. 458/1978 (Bilateral Agreement). Subsequently,
> Circular Number 6 of 1993 will not be applied on the following U.S.
> Commodity Import Programs:
>
> 263-K-026, 027, 029, 030, 036, 038, 045, 052, 053, 054, 055.
>
> 263-K-0601, 602, 603, 604, 606, 607, 610, 612, 615, 616, 618, 620,
> 624, 625, 627.
>
> 263-0201 Private Sector CIP
>
> Commissioner
>
> Customs Administration
>
> Fathy Hassan Salama
>
> Date: 13 June 1994