[UNOFFICIAL TRANSLATION]{.underline}

CUSTOMS ADMINISTRATION

CENTRAL DEPARTMENT FOR EXEMPTIONS

AND SPECIAL ARRANGEMENTS

Ref: 3515/branches

Date: 14 December 1993

***[EXEMPTION CIRCULAR]{.underline}***

***[NO. 6/93]{.underline}***

To: General Manager

Exemptions and Technical Affairs

Dear Sir:

The Prime Minister sent a letter no. 1539 dated December 7, 1993 to the
Minister of Finance regarding vehicles, equipment, and supplies imported
under the U.S. assistance program to Egypt, and covered by the
Presidential Decree 458 of 1978. Article 5 of this agreement states; "to
exempt equipment and supplies introduced into or acquired by the
government of the United States of America. Or any American contractor
financed by that government.....etc". Also it stipulated that this
exemption will include us citizens, and their families. Who are
contracting with or financed by the USG, or individuals under contract
with, or employees of public or private organizations under a contract
with the Arab Republic of Egypt, or any agency thereof......who are
present in the Arab Republic of Egypt or perform work in the connection
with agreement".

In the said letter, his Excellency, the Prime Minister approved to
exempt vehicles, equipment and supplies imported under this agreement,
and to release it exempted from the customs duties upon arrival. Where,
there is no need to apply the temporary release system on it......either
for vehicles.......... Etc previously imported.

Therefore;

With reference to the advisory circular no. 6/1981, and exemption
circular no. 6/1987 related to the imported vehicles under the above
mentioned agreement, the following rules and procedures will be
followed:

**First: *[Upon Arrival]{.underline}*:**

\- vehicles, equipment and supplies imported either (i) under the name
of the financed project by a us grant, or (ii) under the name of the
American contractor, or (iii) under the name of the American employees
who are under contracts to implement the financed projects from us
grants, will be released under the customs exemptions system, according
to the following rules:

**[Exemption Conditions:]{.underline}**

1.  The GOE agency which supervised the financed project by the U.S.
    Grant will present a letter specifying; grant number, number of the
    project agreement presidential decree, number of the imported
    vehicles and their details, and the request of the exemption.

2.  Review the project agreement presidential decree according to
    article 1 of presidential decree number 458 of 1978 to make sure
    that the grant I sun-refundable or not a loan.

3.  The shipping documents and invoices of the imported vehicles, and
    supplies should indicate the grant number (similar to the existing
    rules for equipment), or to provide other supporting documents.

4.  As per the experts and American employees, in addition to the above,
    the U.S. agency for international development will provide a letter
    stating that the expatriate is working tin the implementation of a
    USAID funded project.

5.  Imported party will provide an undertaking letter stating that it
    will not dispose of the exempted items before prior notification to
    the customs. The traffic department will be instructed not to
    dispose of the exempted vehicles before checking with the customs.

> **Second: [After the Release]{.underline}:**
>
> The exemption departments in each customs unit will record the
> exempted vehicles in systematic books for each project independently.
> Then It will notify the general department for exemptions control, of
> the items which released exempted one by one.
>
> **Third:**
>
> Customs status for vehicles and supplies which have been import under
> the aforesaid agreement, and released under the temporary release
> system will be settled through the same rules mentioned hereinabove.