WT/TPR/M/367/Add.1  
30 May 2018  
(18-3227 ) Page: 1/169 
Trade Policy Review Body  
20 and 22 February 2018  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
EGYPT 
MINUTES OF THE MEETI NG 
Addendum  
 Chairperson: H.E. Mr. H.E. Junichi Ihara (Japan)  
This document contains the advance written questions and additional questions  by WTO 
Members, and replies provided by  Egypt .1 
 
 
Organe d'examen des politiques commerciales  
20 et 22 février 2018  
EXAMEN DES POLITIQUE S COMMERCIALES  
ÉGYPTE 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. H.E. Junichi Ihara (Japon)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Égypte .1 
 
 
Órgano de Examen de las Políticas Comerciales  
20 y 22 de febrero de 2018  
EXAMEN DE LAS POLÍTICAS COMERC IALES  
EGIPTO 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. H.E. Junichi Ihara (Japón)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así  como las respuestas facilitadas por  
Egipto .1 
  
                                                           
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/367/Add.1  
 
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  INDIA  
Replies to questions from India  
 
Secretariat Report (WT/TPR/S/367) Page 28 para 2.22  
 
Question 1: Egypt maintains the list of reference countries for the import of pharmaceutical 
products based on the old GMP certification. Could Egypt clarify the reason for following old GMP 
certification and suggested remedial measures to address this problem?  
 
Reply:  
Limiting the number of approvals for registration of pharmaceutical products aims to:  
 
- Control the hu ge number of requests for registration of pharmaceutical products, which may 
hinder reviewing and auditing of the scientific studies submitted to demonstrate the efficiency and 
efficacy of pharmaceutical products.  
- Prevent accumulating certain categories of  pharmaceutical products in the Egyptian market 
without any real benefit to the patient. Companies often wish to register commercially profitable 
generic products, not the most therapeutic ones, such as non -descriptive preparations (OTC).  
- Limiting numbers of the pharmaceutical products of certain categories encourages 
companies to apply for registering various pharmaceutical preparations, and search for new drugs 
that serve the patient.  
- Encouraging local investment in the field of pharmaceutical manufacturi ng, as the rules 
allow the registration of 10 pharmaceutical products, thus contributing to the development of 
national pharmaceutical industries.  
 
Question 2: Egypt has placed limitation on number of approvals for the registration of new drug 
products for  each category. Could Egypt elaborate on the rationale behind limitation for the 
registration of new drugs and the proposed remedial measures?  
 
Reply:  
- The reference countries are approved by the "Technical Committee for Drug Control" based 
on the existence  of effective and approved regulatory systems in such countries, taking into 
consideration the data available by the World Health Organization in this context.  
- It is important to note that classifying a certain country as a non -reference country does not 
affect the acceptance of imported pharmaceutical products from this country as it mainly depends 
on the extent of verification of the efficacy and quality of the product and evaluation of the GMP 
compliance of the manufacturing site of the pharmaceutical pr oduct.  
 
Secretariat Report (WT/TPR/S/367) Page 59 para 3.1.4  
 
Question 3: Wide Ministerial Decree No. 417 of 2014 issued by the Minister of Trade and 
Industry, Arab Republic of Egypt, the import of tuk -tuks (three wheelers) was banned till further 
notice. India would like to know the reason behind the ban and the intended duration of the ban?  
 
Reply:  
Egypt has suspended the importation of tuk -tuk vehicles for national security reasons especially in 
light of the terrorist attacks Egypt has been facing since 2011. Furthermore, the tuk -tuk vehicles 
are still not regulated hence it is hard to track them. Hence, it is imperative to legalize the position 
of the tuk -tuk vehicles and regulate them, before opening the market for new imports.  
 
Regarding the validity period of Ministerial Decree 417/2017, it will be revised upon the finalization 
of the licensing and regulating process for the existing tuk -tuk vehicles.  
 
Secretariat Report (WT/TPR/S/367) Page 86 para 3.3.3  
 
Question 4: With reference to the standards for import of milk powder, India would like to know if 
Egypt is in process of adopting the Global Codex standard for Aflatoxin M1 levels and if so, what 
are the expected timelines for this revision?  
 WT/TPR/M/367/Add.1  
 
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  Reply:  
- The Egyptian organizat ion for Standardization and Quality issued the Egyptian Standard 
No. 7136/2010, "Maximum levels for certain contaminants in foodstuffs" which was adopted the 
technical content of European legislation No. 1881/2006 (and its amendments that may occur). 
The m odification of the maximum limit of aflatoxin for powdered  milk to the limits set by CODEX 
has been the subject of study by the technical committee for milk and milk products, however the 
Committee decided to keep the limit in ES 7136/2010.  
 
Question 5:  Pursuant to the issuance of Decree No. 43 of 2016 by the Minister of Trade and 
Industry, Arab Republic of Egypt, it has become mandatory for foreign manufacturers to register 
for export of certain items (around 25 categories of products) with the Egyptian Ge neral 
Organisation for Export and Import Control (GOEIC) prior to shipment. India would like to know 
the reason for this requirement of registration and the intended duration of this requirement?  
 
Reply:  
The purpose of the Decree is to ensure that the enti ties exporting to Egypt maintain a quality 
control system to confirm that the products specified in the Decree and that are used by natural 
persons are the outcome of a quality controlled production process. Despite the fact, that the 
imports of such produ cts represent only a minimal share in total Egyptian imports, it has been 
found out that the Egyptian market has been invaded by products that are the outcome of illegal 
manufacturing practices. This has had a negative impact on the health and safety of co nsumers 
and subjected them to deceptive practices.  
 
This requirement is not time bound. However, the government of Egypt is constantly reviewing 
and assessing its measures and regulations that affect imports and trade in general with the 
ultimate goal of e nhancing the business environment and facilitating trade. Hence, any changes in 
these measures and regulations are duly published and made available to the economic operators.  
 
Question 6:  In the past, some of the tenders by the selected group of companies  (Public Sector 
companies) had specifically asked the bidders to give project references in few specific countries, 
restricting the companies from India to bid for these projects. Could Egypt provide an explanation 
for these restrictive measures and what s tep the government is taking to ensure 
non-discrimination?  
 
Reply:  
Concerning the complaints from some Indian companies in relation to the preferences provided by 
Egypt to some specific countries through providing project preferences in evaluating the tend ers 
and not giving the same opportunity to the Indian investors and providers, Egypt would like to 
refer to the following elements:  
 
(a) Article (2) of Law No. 89/1998 organizing tenders and Bids states that all the public 
tenders are subject to the principals of Transparency, equal opportunities, equality & free 
competition.  
(b) Tender procedures in all projects are made with complete transparency, and thus the 
following points are to be elaborated:  
 
1) In general, companies provide specific conditions to be adhered by all contractors and 
subcontractors, accordingly these conditions are examined according to the terms and 
conditions booklet to evaluate their previous experience and their other documents.  
2) Thus, there is no problem to accept subcontractors  submitting technically and financially 
acceptable tender during the implementation phase. This is in the case of acceptance of 
the submitted documents in accordance with what the contract has stipulated concerning 
the possibility of adding sub -contractors  during the period of implementation provided that 
the submission of documents with prior experience.  
3) Finally, there are no discriminatory practices against Indian companies at all , giving the 
evidence that:  
a) On 2/3/2013 the Indian Company called "Dee" has contracted as a main contractor on 
the project of "Critical Pipe Operation" in North Giza.  
b) On 18/8/2014 the Indian Company called "Dee" has contracted as a main contractor 
on the project of "Critical Pipe Operation" in Suez.  
c) GEA – BGR energy system Company  has contributed as a subcontractor in the "Steam 
Turbines Operation" to supply Ball Cleaning system and Debris filter in South Helwan.  WT/TPR/M/367/Add.1  
 
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  OMAN  
Replies to questions from Oman  
 
Could you please inform us about the latest reforms undertaken by Egypt toward 
facilitation of trade with WTO Members and especially neighbouring countries?  
 
Reply:  
The latest reforms undertaken by Egypt towards trade facilitation, in line with implementation 
issues of WTO/ TFA can be listed as follows:  
 
Minister of Finance Decision No. 204/2013 amending the Executive Regulations of the Customs 
Law was issued in order to activate the Authorized Economic Operator (AEO system) in Egypt. The 
system is managed by Egypt's Customs Authority (ECA) in accordance with the WCO SAFE 
Framework, in order to facilitate and expedite the procedures of imported and exported AEO 
consignments. Publication 51/2013 establishes the conditions for approving the AEO enga ging in 
importing and exporting; Publication 3/2017 establishes the conditions for the approval of 
warehouses and brokers providing services to the AEOs.  
 
To simplify procedures, Minister of Finance Decree No. 256/2015 amended Articles 63 and 64 of 
the Reg ulations under the Customs Act to reduce the number of documents required for import 
and export processes and to allow their submission electronically. Minister of Finance Decree 
No. 40/2017 mandated Customs to start work on producing and implementing a Si ngle 
Administrative Document (SAD) in the import customs posts and would soon be using it in the 
export customs posts.  
 
Egypt issues advance rulings with respect to tariff classification and rates. The determination 
remains valid if no changes occur at the  time of importation. The ruling does not preclude 
verification upon importation of the products, without any liability whatsoever on the Customs 
Authority.  
 
Prime Minister Decree No. 2295/2015 created the Ministerial Steering Council for Egyptian Trade 
Facilitation "EgyTrade", chaired by the Minister of Trade and Industry, and comprised of the 
Minister of Finance, the Minister of Transportation, the Minister of Investment and International 
Cooperation, the Deputy Governor of the Central Bank of Egypt, the Chairman of the Federation of 
Egyptian Industries, the Chairman of Egypt's Federation of Commercial Chambers, and 
businessmen associations. EgyTrade aims at the creation of an Egyptian National Single Window 
(ENSW) system. In the framework of implementing the ENSW project, the ECA has taken into 
consideration international best practices and the experience of other countries. A working group 
has been established following a Decision from the Egyptian Customs commissioner, which 
includes four teams: legislat ion, documents, procedures, and technology. Similar working groups 
have been established in the Ministry of Transport, the Maritime Transport Authority, the Ministry 
of Trade and Industry and the GOEIC. The stage of studying the status quo had been conclud ed 
and that they were currently working on the simplification of procedures and documentation 
(re-engineering procedures).  
 
A team of Egyptian experts has finalized a study on the current business processes, procedures 
and documents, for the purpose of bus iness process reengineering to overcome any weakness that 
could constitute a hindrance to trade facilitating. This is part of preparation/work plan for 
establishing a national single window which is a part of implementing the articles of the TFA in 
order t o promote trade facilitation.  
 
The ECA follows Integrated Supply Chain Management (ISCM) procedures; has x -ray scanning 
devices available to carry out inspections; implements a risk management system; has an 
intelligence department to help identify high -risk cargo; allows an advance electronic exchange of 
information; and coordinates with foreign administrations to detect, suppress and combat customs 
offences. With regard to the customs -to-business partnership, the authorities have highlighted the 
creation of the Authorized Economic Operator (AEO) program, through Ministry of Finance Decision 
No. 204/2013, and the protocol signed between Customs and the GOEIC for its implementation.  
 
Egypt applies a risk management system by which it routes imports into two different channels: 
green and red. Clearance and release times depend on the channel to which the goods have been 
routed. The main risk assessment factors that are taken into account are: country of origin, port of WT/TPR/M/367/Add.1  
 
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  shipping, supplier, shipping agent, impor ter, broker, HS tariff heading, tariff rate, trade 
agreements, exemptions, and special customs regime. Pre -arrival processing and post -delivery 
clearance are used on occasion to speed up the release and clearance of goods.  
 
The challenge will be to seek to  reduce further release times as the risk management system is 
improved, and other trade -facilitating measures are adopted. The ECA has been engaging in a 
number of actions geared at facilitating trade. They have included interacting with port authorities 
to reduce the time of release and therefore cost. Customs has also put in place x -ray devices (total 
of 102) in most customs posts to facilitate trade and customs control and reduce release times. 
Also, an e -freight import, and export system has been devel oped for air freight, geared at 
facilitating international trade.  
 
The ECA's website has been upgraded and a questions -and-answers system has been activated. 
The authorities have indicated that information available on the website is being updated on a 
daily basis, and that the tariff is published on it.  
 
Trade Facilitation competent authorities are seeking to promote the use of electronic commerce, to 
facilitate trade, to foster efficient collection of customs duties and other border taxes, and to step 
up the fight against commercial fraud, trade in counterfeit goods and smuggling.  
 
Trade Facilitation competent authorities conduct periodic reviews regarding Egypt's obligations in 
international organizations, reflecting its international commitments and its  participation in 
international bodies.  
 
Egypt's Customs Authority has 10 bilateral administrative cooperation agreements for the 
exchange of customs information: with Iraq, Jordan, Lebanon, Libya, Morocco, Palestine, Sudan, 
Syria, Tunisia, and Turkey.  
 
Egypt is also trying to promote trade facilitation with neighbouring countries. Preparation of a draft 
agreement on security and trade facilitation within the Arab League is ongoing. Furthermore, 
Egypt has started consultations with Jordan and Saudi Arabia t o allow their customs offices to 
exchange information electronically. Egypt is also holding talks with Sudan to introduce a 
"one-stop shop" for trade between the two countries.  
 
On the regional level, the ECA has developed a strategic training plan which w as discussed on the 
meetings held in the Arab League through the support and participation of the Regional Training 
Office of the WCO in Bahrain.  WT/TPR/M/367/Add.1  
 
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  CANA DA 
Replies to questions from Canada  
Secretariat Report  
Summary: paragraph 14, page 10  
The Secretariat Report notes that " Despite recent reforms, Egypt's tariff system remains 
somewhat complex, with a number of exemptions, reductions, and concessions ." 
 
1. Does Egypt have any plans to simply its tariff system and to reduce its applied tariffs?  
Reply:  
The c ustoms tariff is deemed one of the fiscal policy instruments designed in accordance with the 
national economic policy and in line with the change in economic conditions at the national and 
international levels. Since 2004, Egypt has expanded the scope of i ts overall trade reforms to 
include trade liberalization. In this context, many measures have been taken, including tariff 
reductions by the Presidential Decree No. 300/2004 and the Subsequent Presidential Decrees. 
Some tariff lines are subject to ad valor em duties, while other tariff lines are subject to other 
specific duties, as commonly accepted in the international trade.  
 
Egypt is currently preparing its applied tariffs according to Harmonized System 2017, the new 
applied tariffs will be duly issued an d published. In this context, Egypt will take into consideration 
the continued efforts of simplifying the tariff system with the aim of facilitating trade.  
 
Within the framework of economic reform, Egypt introduces Value Added Tax (VAT) system to 
replace the Sales Tax system to change the tax -oriented accounting system. Such approach has 
been adopted by many countries since the middle of the last century, so that. Contrary to the 
Sales Tax system, the tax is imposed on the value added of a product or servi ce. 
 
Part III. Trade Policies and Practices by Measure: Measures directly affecting imports: 
Customs procedures, valuation, and requirements: Trade facilitation: paragraph 3.23, 
page 44:  
 
The Secretariat Report notes that the WTO's Trade Facilitation Agree ment (TFA) was approved by 
the Egyptian Parliament on 22 June 2017 and ratified by Presidential Decree No. 149/2017. 
However, as of early November 2017, the instrument of acceptance of the TFA had still to be 
deposited in the WTO. Egypt submitted its Categ ory "A" commitments in January 2015 
(Table  3.2). The authorities have indicated that they are currently working on category "B" and "C" 
commitments.  
 
2. When does Egypt plan to submit its instrument of acceptance of the TFA and notify its 
category B and C  commitments?  
 
Reply:  
Great efforts were exerted to ratify the TFA, Trade Facilitation department (TFD) under the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry went through all the 
complicated domestic procedures required for the comp letion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Review Committee at the 
Ministry of Foreign Affairs. TFD responded to all inquiries related to the agreement and its 
provisions, explained the vitality of  TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessions of the Economic Committee of the 
parliament and hence presented to the plenary session that approved to ratify TFA on 
22 June 2017 and ratified by Presidential Decree No. 149/2017.  
 
As for depositing the instrument, Egypt already communicated with the WTO Secretariat and the 
legal department concerning TFA instrument of acceptance. Egypt is about to deposit the 
instrument in accordance with the model  document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be attached or annexed to the Marrakech Agreement.  
Category B and C commitments will be notified soon, Egypt is already undertaking all the 
necessary prepa rations with different stakeholders to come up with commitments in Category (B) 
and their corresponding indicative dates needed for implementation of the provisions. As well as, 
discussing within the framework of the National Trade Facilitation Committee t he needs and WT/TPR/M/367/Add.1  
 
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  technical assistance required to implement the commitments established in accordance with 
Category (C) under the TFA.  
Part III. Trade Policies and Practices by Measure: Measures directly affecting imports: 
Tariffs, Bound Tariffs, Section  3.1.3 .3, paragraph 3.52, page 54  
The Secretariat Report notes that " Although [Egypt's] applied MFN rates are in most cases 
considerably lower than bound rates, in the 2017 tariff some 46 lines exceeded their bindings. " 
 
3. Could Egypt specify why the applied rates of these 46 tariff lines exceeded their bound 
rates? What measures is Egypt planning to take to comply with its WTO commitments?  
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound tariffs of which were wrongly transposed and the appropriate procedures will 
be taken in the context of the Committee on Market Access.  
 
It should also be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law. Hence, in cases were the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in preparin g the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members set at the bound rate levels or below.  
 
Part III. Trade Policies and Practices by Measure: Measures directly affecting imports:  
Tariffs, Other charges affecting imports, Section  3.1.3.6, paragraph 3.662, page 58  
The Secretariat Report notes that " Egypt also applies excise taxes, which were introduced in 2010, 
on some products (Table 3.12). While certain goods and services are subj ect to schedule (excise) 
tax only, a number of goods and services are subject to the excise tax in addition to the general 
VAT rate (Table 3.13). " 
 
4. Could Egypt provide information on its excise taxes and confirm whether its excise taxes 
apply equally to  domestic products and imports?  
Reply:  
The new VAT law applies a unified tax rate of 14% on all goods and services with an exception to 
certain schedule 1 goods. Excise taxes apply equally to domestic and imported products.  
 
 The New VAT Law stipulates tha t the excise tax is a tax that is levied in specific rates or at 
specific values on the sale or the importation of local or imported goods and services 
referenced in Schedule one, which is annexed to the Law.  
 
 Under the VAT Law, importers register any taxa ble product whether it being part of the 
Schedule 1 goods or not, regardless of the size of the transaction  
 
 Article 2 in chapter 2 of the Law stipulates that the VAT tax is levied on goods and 
services, including schedule 1 goods and services in schedule 1, whether domestic or 
imported, at all stages of their circulation excluding exceptions cited by a special provision 
in the law  
 
 Both domestic and imported products are treated equally under the new VAT Law whereas,  
o The value to be used as a basis for det ermining the tax on the sales of goods and 
services provided in Schedule 1 is as follows:  
 
 Sales of local goods and services: The value actually paid or payable in any 
form of payment plus the schedule 1 excise tax  
 Sales of Imported goods: the value taken  as a basis for determining the 
customs tax plus customs taxes, other taxes, fees, and schedule 1 excise 
tax 
 Sales of imported services: the value actually paid or payable in any form 
of payment plus the schedule 1 excise tax.  WT/TPR/M/367/Add.1  
 
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  EUROPEAN UNION  
Replies to questions from the EU  
 
Secretariat report ((WT/TPR/S/367)  
1 Economic Environment,  
1.2. Recent Economic Developments, Fiscal Policy,  
Page 16  
As a result both of the subsidy and exchange rate reforms and the 12 billion USD IMF agreement, 
Egypt's economic outlook is improving. However, the EU considers that further measures need to 
address, inter alia, the role of the private sector as primary engine of growth and job creation.  
 
EU question No 1 : What measures are envisaged to modernize the regulatory frame work and, in 
particular, to support greater trade integration and increase transparency and accountability of 
state owned enterprises?  
 
Reply:  
Measures to increase transparency and accountability in SOEs:  
- The last two years witnessed a renewed focus on Cor porate Governance(CG) of Egyptian 
SOEs under the Law 203/1991. Corporate Governance code for Egyptian SOEs was launched in 
2007 based on OECD principles, and a new revised code is currently being finalized by a 
committee formed by the ministry to accommoda te the new additions and modifications which 
took place in the new 2015 SOE CG Code adopted by the G20. One aspect of this new code that 
truly needs to be highlighted specially in the case of Egypt is securing the "independence" of an 
SOE from state influe nce, which was emphasized in the third chapter of the new OECD code. Since 
1991 to date, there is still evidence of companies under Law 203 overburdened by social costs, like 
pharmaceutical companies.  
 
- In light of the aforementioned, a revival of CG as a priority commenced in 2016 with a set of 
ministerial decrees covering key flaws in the system of Egyptian SOESs falling under Law 203. 
Examples of those decrees include (1) demanding that general assemblies of SOEs take into 
consideration selecting board m embers of different expertise including finance, marketing, or legal 
experts not only industry -related members. (2) All SOEs under Law 203 have been instructed to 
form independent "Audit Committees". Objectives and role of audit committees are being 
explai ned to corporate level management through seminars.  
 
Paragraph 1.8, page 15  
Reference is done to the Egyptian national development strategy .  
 
EU question No 2 : For the Egyptian economy, key areas include gas, oil industries and petroleum 
derivatives and other minerals. In the context of the Egyptian national development strategy, what 
other sectors is Egypt planning to focus on in terms of its exports in the nea r future?  
 
Reply:  
It is Egypt's national strategy to enhance value addition in key sectors not only to meet the 
demand of the local market but also to increase exports . The main sectors of focus are Textiles 
and Clothing, Chemicals and petrochemicals, Building Materials, E ngineering goods and Agri and 
processed food.  
 
Paragraph 1.15, page 18  
The report states that further reducing of the domestic debt stock remains a key challenge as 
Egypt tries to diversify sources of financing, lengthen debt maturities and reduce the cost of 
borrowing while aiming not to crowd out credit for the private sector.  
 
EU question No 3: Could Egypt elaborate on the possibility to diversify the sources of financing?  
Reply:  
Diversification of sources of financing for the fiscal year 2017/2018 and on the medium 
term:  
The Ministry of Finance's policy aims at diversifying the sources of financing between domestic and 
foreign currencies to limit the impact of high interest rates in the domestic market on debt service, 
by relying on concessional loans with low cost and lon g terms maturities available for the ministry 
of Finance.  WT/TPR/M/367/Add.1  
 
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  In addition to extending the maturities of Treasury bills and bonds to longer terms, while 
expanding the investor base and thus contributing to the gradual reduction in the cost of debt 
service by attracting investment institutions to subscribe to treasury bills and bonds in the local 
market.  
 
The Ministry of Finance has managed to issue $4 billion in dollar bonds with maturities ranging 
from 5 to 10 to 30 years in January 2017. As well as the devel opment of new financing 
instruments such as sukuk and the revitalization of the secondary bond market.  
 
2 Trade and Investment Regimes,  
2.2 Trade Policy Formulation and Objectives,  
Paragraph 2.14 page 27  
As stated in the report, the authorities have indi cated that Egypt's economic policy objectives are 
aimed at achieving private -sector led, outward -oriented economic growth, by maintaining a stable 
macroeconomic environment, creating a business -friendly environment, attracting foreign direct 
investment, an d developing capital markets.  
 
EU question No 4 : Has Egypt carried out any direct assessment of impacts of policies on the 
competitiveness in the respective sectors?  Is Egypt taking measures to increase the 
competitiveness of its automotive industry in or der to attract more foreign investment in this 
sector?  
 
Reply:  
New Civil servants law 81/2016 stipulated that each government institution has to establish a 
policy unit to formulate the policy, develop the strategy, and monitor and evaluate through 
carrying out impact assessment of that policy.  
 
ERADA (Egyptian Regulatory Reform and Development Activity) has been re -operationalized to 
conduct the Regulatory Impact Assessment (RIA) of the different policies and regulations. This has 
been done in the case of the impact of policies and regulations in cluding the devaluation policy, 
the trade policy, the industrial development policy, the industrial licencing law on job creation, 
increased investments , and the improvement of the  
balance of trade.  
 
However, those impact assessment activities are still in the process of maturity through building 
the capacities of those policy units within the government.  
 
On the automotive industry, the government of Egypt is currently exploring the appropriate policy 
options to enhance the competitiveness of the automot ive industry and attracting foreign direct 
investment. In deciding on those policy options, Egypt will ensure that it fully complies with its 
commitments at the multilateral, regional and bilateral levels. Furthermore, establishing industrial 
clusters in a rea of car components and feeding industries in the Suez Canal axis and the 6th of 
October are part of the Industry and Trade Development strategy 2016 -2020.  
 
2.3 Trade Agreements and Arrangements  
Paragraph 2.33, page 30 and paragraph 3.29, page 45  
Referen ce is done to the Agadir Agreement as well as to paragraph 3.29, mentioning initiatives 
regarding Trade Facilitation with other partners such as the Arab League, Jordan and Saudi Arabia.  
 
EU question No 5 : Could Egypt indicate its priorities within the Agadir agreement in particular 
regarding trade facilitation and also the initiatives launched with the Arab League and Jordan as 
mentioned in para 3.29?  
 
Reply:  
According to Agadir agreement, especially Article 8: Non -Tariff Barriers" "The Member Countries  
engage themselves to remove immediately all non -tariff barriers, including arrangements and 
procedures which might be adopted by Member countries to control imports. Such barriers may 
specifically include quantitative, currency, administrative and technic al barriers, which might be 
imposed on importations. No new non -tariff barriers may be imposed, this is in accordance with 
World Trade Organization rules, the agreement for facilitation and development of commercial 
exchanges between the Arab states, and t he arrangements of the Greater Arab Free Trade Area."  
Accordingly, the member states have taken several action s to facilitate trade among themselves:  WT/TPR/M/367/Add.1  
 
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  1) Electronic exchange of information protocol has been signed between customs authorities in 
the four countr ies.  
2) Agreement on mutual recognition of authorized economic operators in the member states has 
been signed.  
3) Finally, in 2018 work plan of the ATU, a working group on trade facilitation has been 
established.  
 
Paragraph 2.47, page 33  
In January 2012, the Af rican Union decided to establish a Continental Free Trade Area that will 
bring together 54 African countries by 2018. This agreement aims to create a single continental 
market for goods and services and pave the way for accelerating the establishment of th e Customs 
Union.  
 
EU question No 6:  The EU would like to know Egypt's intentions regarding the implementation of a 
0.2% levy on its eligible imports in order to contribute to financing peace and security efforts at 
the level of the AU following the AU Summit decision.  
 
Reply:  
Egypt fully respects all WTO rules and obligations as well as its commitments under its regional 
and bilateral trade agreements.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 39  
 
EU question No 7 : Does Egypt require preferential origin declarations to be certified by Chambers 
of Commerce in the exporting countries?  
 
Reply:  
According to article (23) of the Customs Law regarding accepting the invoice for customs 
purposes:  
 
"The owner of the goods must submit his original invoice certified by the competent authority to 
the Customs Authority, except in cases determined by the Director General of Customs."  
Thus, it applies as well to the preferential origin declaration since it  is considered both as a proof 
of origin and an invoice.  
 
Paragraph 3.9, page 41  
Minister of Finance Decree No. 256/2015 amending Articles 63 and 64 of the Regulations under 
the Customs Act aimed at reducing the number of documents required for import and export 
processes and to allow their submission electronically. Nevertheless, Cent ral Bank Instruction of 21 
December 2016 stipulates that customs documents which are related to import transactions 
conducted through 'cash against documents' must only be exchanged between the importer and 
exporter's banks. Previously, customs documents w ere allowed to be sent directly from the 
exporter to the local importer or its representative in Egypt. Exporters consider the compulsory 
intervention of a foreign and Egyptian Bank in the transfer of import documents as time consuming 
and complicated.  
 
EU question No 8:  Does Egypt envisage to simplify the process and revert back to the previous 
procedure, allowing exporters to send custom documents directly to the importer or its 
representative in Egypt and not through banks?   
 
Reply:  
For the time being there are no regulations intended to be issued to cancel these instructions. 
However, the CBE monitors the market and the issue could be reconsidered at a later stage.  
 
On another note, it is worth mentioning that the CBE in cooperation with the Customs Authority 
managed to automate the process of imports release between the banks and the Customs 
Authority which reduced the duration of the import transaction.  
 WT/TPR/M/367/Add.1  
 
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  3.1.1.1 Customs procedures  
Paragraphs 3.10 -3.13, page 41 (Law 7/2017 amending the Importers Regi ster)  
The EU is concerned about the registration requirements for imports which have created a lot of 
red tape and paperwork, and seem to go beyond what is necessary to achieve their objectives of 
protecting consumers or regulate trade . Furthermore, they are particularly burdensome for Small 
and Medium Enterprises.  
 
EU question No 9:  Could Egypt explain why the minimum capital required to be registered as 
importer was significantly increased (LE 500,000 instead of LE 10,000 for natural persons and to 
LE 2 million instead of LE 15,000 for companies with limited liability), coupled with the obligation 
to provide a cash guarantee of LE 50,000 for natural persons or LE 200,000 for a legal person?  
Reply:  
The minimum capital requirements have been set at those l imits to take into account the 
depreciation of the Egyptian pound and to ensure that the limits that were in Law 121/1982 are 
updated to maintain their main purpose that is to ensure the credibility of natural persons or 
companies involved in import activi ties. 
 
EU question No 10:  Could Egypt explain why it introduced a requirement to the effect that natural 
persons must have had a volume of business of at least LE 2 million and companies at least 
LE 5 million the previous year prior to registration ? How is  it possible for new importers to fulfil 
this requirement?  
Reply:  
The purpose of this amendment like other amendments is to ensure the credibility of natural 
persons or companies involved in import transactions. It also ensures that the natural persons and  
companies involved in import activities have a sound understanding of the mechanisms of the 
Egyptian market including its regulations and requirements and their rights and obligations.  
 
EU question No 11:  Why would Egypt restrict import activity to Egypti an nationals and in case of 
joint stock and share holding companies, to 51% owned by Egyptians?  
Reply:  
Restricting import activity to Egyptian natural persons already existed in Law No.121/1982. 
However, the new Law No.7 /2017 has provided flexibility in t erms of allowing joint stock and 
shareholding companies in which the share of Foreigners is 49% to participate in import activities 
whereas Law no.121/1982 required that they be totally owned by Egyptians.  
 
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.1 Customs procedures  
Paragraph 3.18, page 42  
According to the report, in 2016, 97% of import declarations were processed through the red 
channel, and only 3% were processed through the green cha nnel.  
 
EU question No 12:  Could Egypt indicate in relative terms the difference of treatment for these 
operators in terms of rapidity of custom clearance and why after about 18 years of implementation 
there are only 245 operators that were processed through the green channel and g iven that about 
97% of the shipments are put on the red channel?  
 
Reply:  
The Egyptian Customs Administration (ECA) agrees to the figures declared for the years 
2014-2016.  
 
On 2017, the 36% of imports were released through green channel (visual verification for security 
purposes) for Alexandria, Dekhila, Port Said ports and Cairo airport (these ports represent 90 % of 
the Egyptian imports). Whereas, 64 % of the imports were r eleased through red channel for the 
purpose of withdrawing samples for control authorities and customs control purposes.  
Moreover, importers may prefer to process through the red channel as they are confident their 
imports will be declared, unlike if they went through green channel and some custo ms violations 
were figured out.  
 WT/TPR/M/367/Add.1  
 
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  3.1.1.2 Trade facilitation  
Paragraph 3.23, page 44 (and also G/367, Section 4.10 – 4.11)  
 
According to the World Bank Doing Business Report 2017 "The Arab Republic of Egypt made 
trading across borders more difficult by making the process of obtaining and processing documents 
more complex". This goes against the declared aim of Egypt to facilitate trade and streamline 
import and export transactions, reducing the number of documents  required. The 'Trading Across 
Borders' indicator of the Doing Business Report shows that Egypt's ranking is steadily deteriorating 
across the last few years (in 2015 Egypt was ranked 99, in 2016 – 157, in 2017 – 168 and in 2018 
– 170 out of 190 countries) . 
 
EU question No 13:  Would Egypt consider amending Decrees 991/2015 and 43/2016 which impose 
measures that seem to go beyond what is necessary to achieve the declared objectives of 
consumer protection while adding more documentary requi rements to import t ransactions?  
Reply:  
It is Egypt's view that Ministerial Decree No.991/2015 deals with pre -shipment inspection to 
ensure conformity of the products with the relevant accredited Egyptian standards which have 
been notified to the TBT committee over the past y ears. Pre -shipment inspection activities relating 
to the verification of quality are well acknowledged within the WTO Agreement on Preshipment 
inspection.  
 
In respect of Ministerial Decree no. 43/2016, it is rather administrative in nature; it only require s 
registration through the submission of documents that already exist in any credible entity. It does 
not require that producers adapt their products or methods of production.  
 
However, the government of Egypt is constantly reviewing and assessing its meas ures and 
regulations that affect imports and trade in general with the ultimate goal of enhancing the 
business environment and facilitating trade. Hence, any changes in these measures and 
regulations are duly published and made available to the economic op erators.  
 
EU question No 14 : Could Egypt explain why its Category A commitments cover only 20.1% of all 
commitments under TFA?  
 
Reply:  
Category A commitments was determined through collaborative efforts of competent authorities, 
members at National Trade Facilitation Committee. In coordination with the WTO secretariat, a 
workshop was organized entitled "How Egypt uses the self -assessment tool and identify the needs 
and priorities within the framework of Trade Facilitation Agreement", to guide relevant auth orities 
in determining category A commitments.  
 
These commitments reflect the obligations or provisions that are fully implemented by Egypt in a 
framework consistent with its legislation, laws and financial capabilities directly after TFA entry into 
force,  unlike category B that needs a transitional period of time to be implemented and category C 
that needs financial & technical assistance.  
 
Moreover, TFA provisions are interrelated, for example when Egypt ends up with its National Single 
Window Project, which falls under TFA article 10/4, other correlated provisions will be implemented 
as prerequisites.  
 
In addition, through the submission of Egypt's B & C lists, it is expected to increase the coverage 
of A commitments or some of B list provisions will be  during 2017/2018.  
 
Paragraph 3.30, page 45 - customs valuation  
In October 2014, Egyptian customs authorities issued price list directives for several car 
manufacturers, according to which the price used as a baseline for tariff calculation would not be 
the transaction price but rather the retail price in the country of origin. The EU expressed concerns 
with this method which increases export -related costs for OEMs.  
 
EU question No 15:  Could Egypt explain why it does not follow the procedures of the Custom s 
Valuation Agreement in case of imported cars and car parts?  WT/TPR/M/367/Add.1  
 
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  Reply:  
The customs accepted value for cars all over the world is the price declared from the factory of the 
manufacturing in the country of origin. These prices are announced on the first of Oct ober 
annually. The other costs are added to this price (transportation costs from the factory to the port, 
maritime freight, maritime insurance, etc.)  
 
Egypt does not use the retail price as a basis for calculations. The retail price is only used if the 
deductive or computed methods are applied as per the WTO Agreement if it is difficult to reach the 
announced prices for the cars from the manufacturing company. The retail price is compared in 
both the country of origin and the country of importation for the  purpose of reaching fairness in 
the application.  
 
3.1.3.2 Applied MFN customs duties  
Paragraphs 3.4 and 3.44, page 49 (and Paragraph 4.89, page 124)  
Egypt levies prohibitive tariffs of 3.000 percent on imported alcoholic beverages, giving an 
exclusive advantage to the local production to monopolize the market as a sole player. Not to 
mention that under the new Investment Law 2017, no incentives are giv en for alcoholic beverages 
investments or any projects operating in free zones in Egypt (Law Nº72/2017).  
 
EU question No 16 : Does Egypt plan to reduce the extraordinarily high tariffs applied to spirits and 
alcoholic beverages (of 3,000% for spirits sold outside tourist establishments and/or the 300% 
tariff for spirits imported under a tourism licence) consistent with the Government's stated 
long-term tariff policy objective "to establish an environment where tariffs do not create obstacles 
to consumer cho ice" as stated in the Government's report (paragraphs 4.2 and 4.4)?  
 
Reply:  
The high tariffs imposed on spirits and alcoholic beverages are for religious and cultural reasons. 
Furthermore, the applied tariffs are in compliance with Egypt's bound rates. How ever, Egypt 
regularly reviews and assesses the trade related policies and measures in light of Egypt's low 
dependency on tariffs as a source of revenue and in view of the ongoing efforts towards further 
trade liberalization and facilitation.  
 
3.1.3.6 Other charges affecting imports  
Para 3.65 and Tables 3.12 and 3.13, page 58  
Table 3.13 on 'Goods and services subject to VAT and excise tax' indicates that beer (alcohol) is 
subject to a 200% excise rate. Spirits or other alcoholic drinks are not mentioned  in either 
Table  3.12 or Table 3.13. However, according to the EU Commission Market Access Data Base 
Scotch Whisky and other spirits are subject to the 14% VAT rate and the schedule tax at a rate of 
150% of the duty paid value, but at least 15 EGP per litr e.  
 
EU question No 17 : Could Egypt please clarify whether spirits are subject to either schedule tax 
only or excise plus VAT, and what the applicable excise rates are?  
Reply:  
Spirits are subject to excise tax plus VAT. The rates are as follows:  
 
 Ethylic pure alcohol, unconverted regardless of the degree alcohol: LE 15 + General VAT 
rate with input deduction  
 
 Alcohol adapted from any grade of fuel: LE 1/liter + General VAT rate with input deduction  
 
 Fresh grape wine, grape juice whose fermentation was stop ped by adding alcohol (including 
almstla), Vermot and other wines, fermented beverages: 150% with a minimum of LE 15 per 
liquid liter + general VAT rate with input deduction  
 
 Spirits, sweetened, scented alcoholic beverages, other alcoholic beverages, compl ex 
alcoholic beverages, distillates, natural: 150% with a minimum of LE 15 per liquid liter + general 
VAT rate with input deduction  
 
 Alcoholic Beer: Standard VAT rate + excise tax of 250% with input deduction to a minimum 
of LE 500  
 WT/TPR/M/367/Add.1  
 
- 14 - 
 
  3.1.4. Import prohibiti ons, restrictions and licensing  
Paragraph 3.69, page 59  
 
EU question No 18:  Could Egypt explain the reason for maintaining import prohibitions for 
two-stroke motor bicycles not equipped with oil injection pumps and two -stroke motor bicycle 
engines, of al l types and sizes? If the reason is national security, then why does Egypt allow 
domestic production of such motor bicycles?  
Reply:  
Imports of two -stroke motor bicycles are suspended for national security reasons especially in light 
of the terrorists attacks Egypt has been facing since 2011. Concerning domestic production, 
factories producing this product are limited in terms of number  and production and are under 
control through working under the relevant legislations and laws. Hence, their production and sales 
are regulated in a manner that allows the authorities to keep track of them. The government has 
not taken any measures to clos e down those factories for social factors including preserving the 
jobs of the workers and their income levels.  
 
Page 60  
Egypt is the world's largest importer of wheat. With the introduction of a maximum moisture 
content of 13% (previously 14%) for import ed wheat by the Egyptian authorities, imports from the 
EU Member States have declined significantly. A technical drying of the product is possible, but not 
economically viable for EU exporters. Neither phytosanitary nor from the point of view of the 
transp ort or storage requirements, a moisture level reduced t o 13% is desirable or required.  
 
Furthermore, according to the available information, better conditions (higher moisture levels)  
have been offered to certain wheat suppliers.  
 
EU question No 19:  Could Egypt explain these differences in market access conditions?  
Reply:  
- The Egyptian organization for standardization and quality control (EOS) has issued the E.S 
No. 1601 -1/2010 " Wheat Part 1 "General Principles For Wheat (Triticum aestivum L." which was 
mandated by Ministerial decree No. 163/2010 complying with Codex standard 199 -1995 "Wheat 
and Durum Wheat" which Specifies the maximum moisture content is 14.5% and Lower moisture 
limits should be required for certain destinations in relation to the cl imate, duration of transport 
and storage.  
- Therefore, a moisture content of 13% was determined in the Egyptian standard , This ratio 
is suitable for climatic conditions and storage conditions in the Egyptian silos , whereas :  
- A - High moisture content of gr ain increases the growth of fungi, which leads to the 
production of Mycotoxins and increase the proportion of the permissible limits, which leads to the 
rejection of Wheat's lot.  
- B - The increase in moisture leads to increase the surface moisture in grain,  which leads to 
an increase in the incidence of mite (which is a kind of insects) that affect the stored grain, which 
produce their toxins with grain when the moisture content of the grain, which means that the 
lower humidity of grain to less than 14.5% Th is has reduced insect reproduction and incomplete 
life cycle.  
- C - In addition, 13% of the maximum humidity has not hindered the importation of wheat 
from different countries of the world.  
- In view of the aforementioned reasons, the public interest is to m aintain the moisture 
content specified in the above mentioned standard (13%).  
-  The importation of Wheat with a moisture content up to 13.5% is an exceptional case, 
which is based on the request of the Ministry of Supply which based on the study of the avai lability 
of the strategic stock of this commodity.  
- According to the above mentioned reasons, allowing the entry of the moisture ratio is higher 
than the percentage specified in the standard comes by a sovereign decision based on the decision 
of the Ministe r of Supply in coordination with the Minister of Industry to study the availability of 
the strategic stock of this commodity.  
 
Paragraph 3.77, pages 64 -65 
A prior registration requirement comes in addition  to the requirement of compulsory Pre -Shipment 
Inspections under Decree 991/2015, covering the same categories of goods (Section 3.16 and 
3.74 of Secretariat Report). Decree No. 991/2015 has not been replaced by the registration WT/TPR/M/367/Add.1  
 
- 15 - 
 
  obligation under Decree No.  43/2016. Under Decree 991 producers must provide certificate of 
conformity to Egyptian quality standards issued by ISO 17025 accredited labs with every 
shipment. In addition, as mentioned in the Secretariat Report (section 3.18, p. 43), vast majority 
of imported goods are inspected (97% in 2016) and in case of food, all imports are inspected 
without exception (section 3.16, p. 42). Consumer protection thus seems to be already 
safeguarded by pre -shipment inspections and regular inspections at the Egyptian b order. 
Protection against counterfeit goods is already ensured by Decree 770/2005 (section 3.15 of 
Secretariat Report, p. 42).  
 
EU question No 20 : Could Egypt explain the rationale of introducing mandatory registration for the 
24 groups of products in Decr ee 43/2016?  
 
Reply:  
The rationale of the Decree is to ensure that the entities exporting to Egypt maintain a quality 
control system to confirm that the products specified in the Decree and that are used by natural 
persons are the outcome of a quality cont rolled production process. Despite the fact, that the 
imports of such products represent only a minimal share in total Egyptian imports, it has been 
found out that the Egyptian market has been invaded by products that are the outcome of illegal 
manufacturi ng practices. This has had a negative impact on the health and safety of consumers 
and subjected them to deceptive practices.  
 
To be registered under Article 94 of Decree 770/2005 in a register maintained by GOEIC, the 
importer or producer must maintain a quality control system and his production must be carried 
out according to standards approved by the Egyptian Organization of S tandardization. This seems 
to duplicate or even go beyond the requirements of the register of approved manufacturers under 
Decree 43/2016.  
 
EU question No 21:  Could Egypt explain why registration under Decree 770/2005 would not be 
sufficient to ensure the quality of imported goods?  
Reply:  
Registration under Article 94 of Ministerial Decree 770/2005 serves a different purpose other than 
the above explained purp ose of Ministerial Decree 43/2016. Registration under article 94 of 
Ministerial Decree 770/2005 is to allow for visual inspection only for manufactured non -food 
shipments given the fact that among its requirements is that the producers produce according to  
the standards approved by the Egyptian Organization for Standards and Quality.  
 
EU question No 22:  Could Egypt explain why there are two separate procedures for registration 
and two different registries kept by GOEIC, one under Decree 43/2016 and another  one under 
Decree 770/2005?  
Reply:  
As explained registration under both registries serve two different purposes.  
 
The EU considers that publishing basic information, such as the names and nationality of approved 
companies would not infringe on business se crets or confidentiality requirements and would 
actually serve the general goal of consumer protection in enabling the public to know who can 
legally import goods to Egypt.  
 
EU question No 23 : Could Egypt explain why the basic information, such as names an d nationality 
of companies on the Register of approved manufactures under Decree 43/2016 is not publicly 
available?  
Reply:  
The approved manufacturing plants and the companies owning the trademarks that have been 
approved are duly informed of their registr ation. Furthermore the list of companies are made 
available at GOEIC's database for reference by economic operators.  
 
EU question No 24 : Could Egypt explain why after a documentary check for compliance under 
Decree 43/2016 carried out by GOEIC, each regist ration decision needs to be approved individually 
by decree of the Minister of Trade? This has caused long delays in registration, in many cases 
more than one year. Taking this into account, will Egypt consider setting a time limit so that WT/TPR/M/367/Add.1  
 
- 16 - 
 
  registration is automatic after a time period if no reason for refusal has been given? This would 
give legal certainty to business.  
Reply:  
Egypt recognizes the fact that registration may in sometimes have taken take longer than usual 
for reasons related to the verificatio n of documents. However, this has been in the early start -up 
of the system. Lately, Egypt has taken the appropriate measures to speed up the registration 
process and now its takes from two to three weeks. Nevertheless, registration can only take place 
through the issuance of a Ministerial Decree by the Minister competent for Foreign Trade.  
 
EU question No 25:  Could Egypt provide the total number of companies which applied for 
registration since the Decree entered into force and the total number of register ed companies?  
Reply:  
The total number of companies which applied for registration since the entry into force of Decree 
No. 43/2016 is 3095 and the total number of registered companies is 2047.  
 
Paragraph 3.77 (and 4.11 of the Government report)  
Paragraph 4.11 of the Government of Egypt's report on the Trade Policy Review states that "In line 
with Egypt's policy of continuous improvement in trade facilitation, the GoE is currently preparing 
to finalize new rules before 2019 that would reduce the n umber of documents required to carry out 
import or export transactions to be not more than 3 in total".  
 
EU question No 26:  Could Egypt state whether the new rules will affect the registration and 
declaration requirements referred to in paragraph 3.77 of the Secretariat's report?  
Reply:  
As stated in the Government report Egypt is committed to trade facilitation. However, the 
registration requirements under Ministerial Decree 43/2016 are not part to the number of 
documents referred to in paragraph 4.11 of the government report. Nevertheless, the government 
of Egypt is constantly reviewing and assessing its measures and regulations that affect imports 
and trade in general with the ultimate goal of enhancing the business environment and facilitating 
trade. He nce, any changes in these measures and regulations are duly published.  
 
Paragraph 3.149, page 83  
On first arrival, cosmetics are checked for compliance by the National Organisation for Drug 
Control and Research (NODCAR), which takes between 45 to 100 days and during this period, 
products cannot be released on the market. There is also a time consuming approval required for 
any changes to cosmetic products (formula, name, or label) and update of the registration file: 
once the updated product is registered, the importer cannot clear the stocks from the pre -upgrade 
formula; Currently, there are very long registration processing time for new products (between 6 
to 8 months) and manual processing of documentation and legalisation. In addition, registration 
numbe r of a product must be printed on the package, which delays the launching of new products 
(the manufacturing process starts only when the registration number is issued). In addition, 
cosmetics are now included also on the list of products under Decree 991/ 2015.  
 
EU question No 27:  Could Egypt explain why there is a duplication of testing and inspection on 
imported cosmetic products, both by GOEIC (under Decree 991/2015, pre -shipment inspection) 
and by the Ministry of Health?  
Reply:  
There is no duplication of testing and inspection on imported cosmetics, imported cosmetics are 
only subject to random testing upon arrival. Thus, it was necessary to subject them to the 
coverage of Decree 991/2015 to ensure their conformity with approved Egyptian standards noting 
that Egypt lacks a robust market surveillance system.  
 
EU question No 28 : Could Egypt consider facilitating the registration process for cosmetics?  
Reply:  
Reply:  
Issuing the Ministerial Decree 151/2015 was the approach for facili tating the regulatory process for 
cosmetics as it organizes and regulates all the process starting from the submission of the file to 
the release of the first manufactured of imported batch.  
 WT/TPR/M/367/Add.1  
 
- 17 - 
 
  EU question No 29 : Could Egypt explain why the registration numb er of a product must be printed 
on the package, which delays the launching of new products?  
Reply:  
Having the registration number considered the last step of approvals for placing such cosmetic 
product in the Egyptian market.  
Registration number helps the regulatory authority to identify the product and to differentiate 
many semi -identical formulas especially in the cosmetic industry for the same company and the 
same brand.  
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Industrial incentives  
Paragraph 3.124, page 77  
The customs tariff reductions which can go as high as 90% in proportion to the percentage of use 
of local content in assembly industries discriminate against foreign producers of industrial inputs, 
as it makes their use less attractive. It should be mentioned that Article 12 of the Executive 
Regulations to the new Investment Law 72/2017 states that additional incentives (non -tax) can be 
granted to companies which increase the use of local content in their products, provid ed that the 
local content is not less than 50%. While it is not a pre -condition for granting the incentives, as 
there are other conditions that can be fulfilled alternatively, it should be mentioned that it is 
among the possible criteria taken into account . 
 
EU question No 30:  Taking into account GCV, could Egypt elaborate on the rationale for using local 
content requirements for promoting its industry? Has Egypt carried out any impact assessment 
before adopting this law? Is Egypt envisaging to amend this l aw in a way that would not 
discriminate against foreign manufacturers/importers?  
Reply:  
Since 2004 when the government of Egypt adopted the bold tariff reforms including tariff 
simplification and reduction, the impact of customs tariff reductions in proportion to the 
percentage of use of local content in assembly industries has been nullified except for some minor 
industries. Further tariff reforms in this respect are planned.  
 
Egypt has issued its new investment law no. 72/2016, where all the assessm ents during the 
drafting of such law has been done.  
 
We believe that there is no discrimination included in the investment law, meeting any 
requirement out of the six requirements stipulated by the law shall make the investor entitled for 
the additional in centives in case the cabinet decided to grant it.  
 
Paragraph 3.149, page 83  
According to Ministerial Resolution 32/2006, GOEIC authorizes imports of readymade garments 
that have sewed/weaved data card proven on each piece during manufacturing, containing country 
of origin, type of textile and name of the importer. The same regulation (Ministerial Resolution 
32/2006) is applied on ceramic exports whose manufactures assume hefty costs and logistics 
problems in order to be able to inscribe/print the country o f origin on every single piece to comply 
with the Egyptian laws.  
EU question No 31 : Could Egypt explain the reason for this requirement? Is there any revision of 
the Ministerial Resolution 32/2006 in the pipeline?  
 
Reply:  
It should be noted that Ministeri al Decree 32/2006 stipulates the labeling requirements for ready -
made garments, home textiles, carpets and rugs (except for socks and imports for medical 
purposes and industrial security). However, it doesn't refer to labelling requirements for ceramics.  
The labelling requirements as stipulated in Ministerial Decree no. 32/2006 aim at protecting 
consumers from deceptive practices.  
 
The government of Egypt is regularly reviewing and assessing its measures and regulations that 
affect imports and trade in gen eral with the ultimate goal of enhancing the business environment 
and facilitating trade. Hence, any changes in these measures and regulations are duly published.  
 WT/TPR/M/367/Add.1  
 
- 18 - 
 
  Paragraph 3.162, page 85 - Restrictive Labelling Requirements for ceramic tiles  
Decree no. 770/2005 provides that porcelain tableware and ceramic tiles should indicate the 
country of origin and name of the factory, by scorching under the glaze layer. In practice, Egyptian 
authorities also require to have the origin and logo of the company engrav ed on each and every 
tile, rather than providing the aforementioned information on the box of tiles. This creates an 
additional cost for exporters, which have to change their manufacturing processes accordingly, and 
goes beyond what is necessary .  
 
EU ques tion No 32:  Is Egypt considering changing the labelling requirements for ceramic tiles, as 
the current requirements seem overly restrictive, causing an additional burden for exporters?  
 
Reply:  
Egyptian standard ES 923/2005 for "ceramic tableware" in additi on to the Egyptian standard 
No. 3168-1/2015 for "Ceramic Tiles – Definitions, classification, characteristics and marking" are 
mandatory standards providing that each item shall be labelled on the bottom with the data in a 
clear, visible and non -erasable m anner. The aim of such requirement is to protect consumers from 
deceptive practices.  
On changing the labelling requirements, the government of Egypt is regularly reviewing and 
assessing its measures and regulations that affect imports and trade in general with the ultimate 
goal of enhancing the business environment and facilitating trade. Hence, any changes in these 
measures and regulations are duly published.  
 
3.3.3 Sanitary and Phytosanitary (SPS) Issues  
Paragraph 3.169, page 87 (and also G/367 – section 5.2 
Egypt's policy on ergot in imported wheat has varied from zero -tolerance to applying the CODEX 
maximum limits. The current rules, notified as G/SPS/N/EGY/83, foresee that shipments with a 
ergot content below CODEX limits are accepted but also that any detection below those limits 
entails a further treatment under government supervision.  
 
EU question No 33 : Does Egypt have any evidence that such low -levels of ergot represent a risk to 
human or plant health that would justify the additional costs?  
Reply:  
Wheat represents almost 10 percent of the total value of agricultural production and about 
20 percent of all agricultural imports. Egypt is also one of the world's biggest wheat importer and 
the General Authority for Supply Commodities (GASC) of the Minist ry of Supply and Internal Trade 
of Egypt (MoSIT) alone is the world's biggest wheat purchaser. It is thus understandable that 
wheat is a product of paramount importance to Egypt and wheat policy is a priority for the 
government. (Egypt Wheat sector review - FAO/EBRD cooperation)  
 
It is a well -known fact that the volume of trade is a predetermine factor when considering the risk 
of any pest of quarantine concern.  
 
"Clavispes purpuria" is the causative agent which is spread in many neighboring countries and the 
probabilities of introduction is high in consideration to the huge volume of imports. Also referring 
to the surveillance conducting on the grain crops in all over the country it is highlighted that the 
pest is not present in Egypt.  
 
It is highly import ant also to highlight the challenges that Egypt faces in logistical arrangements 
which imposes risk of introduction and spread of pests  
 
Also while considering the phytosanitray risk another important aspect that was considered jointly 
with the relevant au thorities responsible for the imports of wheat is the health impact that is 
directly related to the rate of consumption in Egypt. For centuries, wheat has been a central 
component of the typical diet of the country's inhabitants. Per capita consumption of this cereal is 
amongst the highest in the world. Many countries ha ve adopted lower tolerance levels than 
defined by the CODEX according to their population consumption.  
 
Egypt imports approximately 12 million tons/year and produce s 300 million bread/day. 80 % of 
the wheat is used in the production of baladi bread and 20% is consider ed to be losses or animal 
feed. WT/TPR/M/367/Add.1  
 
- 19 - 
 
  The higher consumption with wheat infected or contaminated with ergot poses a huge risk in 
human as well as animal health . 
 
Paragraph 3.170, page 87  
EU question No 34 : Does Egyptian legislation foresee a limit for yeast presence in cheese?  
 
Reply:  
The current standards on limits for yeast vary according to the type of cheese. It's worth 
mentioning that a general standard fo r the bacteriological limits of milk and dairy products is 
currently under development.  
 
For example there is ES No. 1007 -1 / 2005 for "hard cheese part: 1 "general standard for hard 
cheese "The number of yeast is not more than 100 cells /g.  
ES No. 1008 -6 / 2005"soft cheese part: 6 "cottage creamed cheese and quark creamed cheese  
"The number of yeast is not more than 400 cells / g.  
 
Paragraph 3.172, page 88 (and also G/367, section 5.2)  
The export of live animals for fattening or slaughtering in Egypt is subject to quarantine in the 
exporting country of 21 or 30 days (slaughtering or fattening) under in -loco supervision of 
Egyptian officials.  
 
EU question No 35:  What is the justification for this requirement and under what conditions would 
Egypt accept the  control to be done by the competent authorities of the exporting country, who 
are responsible for certifying exported products?   
 
Reply:  
The requirement of importing of live animals for fattening or slaughtering under 
supervision of Egyptian officials is considered GOVS's requirement to ensure the age, 
weight and health status of the imported animals and to ensure of testing the imported 
animals by the required tests according to the health status of the exporting country in 
the time of exportation and thi s condition implemented for all exporting countries to 
Egypt without discrimination as non -discriminatory SPS measure because Egypt imports 
from many countries all over the world with different health status and different 
veterinary capabilities.  
 
The repo rt states that Egypt has adopted measures to apply zoning/regionalization for imports of 
day-old chicks from countries where Avian Influenza (AI) is present. However, it is our 
understanding that Egypt continues to require country freedom from AI for such imports.  
 
EU question No 36 : Could Egypt please explain how it has implemented regionalization for AI for 
imports of day -old chicks, and what certification statements are required? Do the SPS measures 
for AI also allow for the application of compartmentali zation for day -old chicks?  
 
 
 
Reply:  
Egypt doesn't require importation of day old chicks only from AI free countries but Egypt 
implements zoning or regionalization in the countries affected by AI like France.  
 
Egypt bans importation from zones (regions) affected by AI outbreaks till resolving the outbreaks 
which proved by the relevant OIE reports then Egypt resumes importation from these zones three 
months after resolving the outbreaks according to relevant OIE recommendation in Article 10.4.3.  
 
Meanwhile  Egypt continues importation of day old chicks from AI free zones even if there are 
another zones affected by AI in the same country.  
 
Application of compartmentalization principle is under study and is not implemented yet.  
 
Paragraph 3.179, page 89 - SPS measures/infant milk  
The new decree of the Ministry of Health on imports of several products, including infant milk 
formula, was published on 21 March 2017. It provides that infant milk shall be imported from 
'reference countries' or from 'non -reference co untries', provided that the formula is also available WT/TPR/M/367/Add.1  
 
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  for sale in a 'reference country'. The list of reference countries established by the Egyptian 
authorities is the list applicable for imports of pharmaceutical products. In the EU's view, the 
decree of 21 March 2017 creates a de facto discrimination within the EU since not all EU Member 
States are listed as 'reference countries' (only 14 MS are included on the list). It also creates 
difficulties for companies from 'non -reference countries' who wish to ex port their products to Egypt 
but in line with their business model they do not export their products to 'reference countries'.  
 
EU question No 37:  Could Egypt explain why it applies the list of 'reference countries' used for 
imports of pharmaceutical prod ucts to imports of infant milk formula which, according to Egyptian 
law, is not a pharmaceutical product?  
Reply:  
"National Nutrition Institute – Ministry of Health" has issued the Ministerial Decree No.5/2017, this 
decree regulates the importation of medi cines and pharmaceutical raw materials and 
biotechnology, children milk and medical supplies from the reference and non -reference countries.  
 
Importation of medicines and raw materials is allowed from countries that have supervisory 
authority and recognize d by international bodies such as the World Health Organization – FDA- 
EMA- and apply control standards.  
 
Egypt may import from non -reference countries, provided that the producing factories follow 
standards of Good Manufacturing Practices.  
 
Egypt may impo rt medication from other non -reference countries provided that this medication 
traded in one of the reference countries.  
 
Egypt may import infant milk from the reference countries where international control rules are 
applied, as well as from others non -reference countries provided that those infant milk is traded 
within one of the reference countries.  
 
3.3.6 Government procurement  
Paragraph 3.209, page 94  
Egypt  is not a signatory  to the WTO plurilateral  Agreement  on Government  Procurement.  
 
EU question No  38: Is Egypt considering the idea of becoming an observer of the Agreement on 
Government Procurement?  
Reply:  
In the time being, Egypt is not considering the idea of becoming an observer of the Agreement on 
Government Procurement.  
 
3.3.7 Intellectual property rights (IPRs)  
3.3.7.1 Legal and institutional framework  
Paragraph 3.226  
The authorities indicated that Egypt is considering accession to the Convention for the Protection 
of Performers, Producers of Phonograms and Broadcasting  Organizations (Rome Convention, 
1961).  
 
EU question No 39:  Does Egypt plan to accede to the Internet Treaties (WCT and WPPT)?  
Reply:  
The question about joining both the WCT and WPPT was discussed at the national level, and a 
conclusion was that some provisions of these agreement are not covered or addressed by the 
Egyptian IPR Law, and that they also include provisions imposing higher levels of protection than 
that of the TRIPS Agreement. Therefore, before considering accession, coverage by law to reg ulate 
or determine the scope of the legal responsibility of Internet Service Providers towards IP 
infringements would be required, and also other instruments or technologies necessary for 
implementation of the provisions of these agreements would be requir ed. 
 
Paragraph 3.228  
Egypt's IPR Law adopts the principle of international exhaustion of IPRs.  
 WT/TPR/M/367/Add.1  
 
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  EU question No 40:  Could Egypt justify this choice? Would a national exhaustion be more 
appropriate for Egyptian industry?  
 
Reply:  
Egypt adopted the principle of international exhaustion as it deemed it as better serving its 
interests, and based on TRIPS Article 6, it is optional for each country to choose which exhaustion 
method to be applied.  
 
Table 3.24 Overview of IPR protection  
Egypt protects undisclosed in formation having a commercial value due to its secrecy in conformity 
with Article 39 paragraph 2 of TRIPS.  
 
EU question No 41 : Does Egypt protect also  undisclosed test or other data submitted as a 
condition of approving the marketing of pharmaceutical or of agricultural chemical products in 
conformity with Article 39 paragraph 3 of TRIPS?  
Reply:  
The term "undisclosed test or other data", which is to be protected against unfair commercial use, 
embraces the undisclosed information which (i) concern pharmaceu tical or agricultural chemical 
products; (ii) result from considerable effort; (iii) utilize new chemical entities; (iv) are submitted 
to the concerned authorities as a condition for approving the marketing of such products; and 
(v) are required for conduc ting the tests necessary for the marketing approval.  
 
The concerned authorities who receive such information are obliged to protect the information 
against disclosure and against unfair commercial use. This obligation starts from the date the 
information i s submitted and continues until the information no longer becomes secret, or until the 
elapse of no more than five years, whichever occurs first.  
 
The exceptions provided for in article 56 of the Egyptian IPR Law are identical to those provided 
for in Arti cle 39.3 of the TRIPS Agreement namely; (i) where the disclosure by the concerned 
authorities is necessary to protect the public; or (ii) where the concerned authorities use the test 
information in testing or evaluating other similar products; this being a  situation where protection 
of the public is an issue.  
 
Additionally, test data and other data, which are required for the testing, examination and 
evaluation of the product, are handled by the responsible government authority, where all 
operations are conducted in complete secrecy and guarded against any form of disclosure to 
outside bodies except when required by law, such as by court order.  
 
A second applicant cannot, therefore, have access to such test data as submitted by a first 
applicant. It is on ly the concerned authority which can use the test data for testing the product of 
the first applicant or, where deemed necessary, to protect the public.  
 
Upon the above, the approval of applications for the marketing of new medicines does not depend 
on information from publically available sources or by using inspection, examination and analysis 
alone. The regulatory authority requires companies to present information about the new drug, 
these information are protected and considered as undisclosed informa tion. 
 
Any work not translated into Arabic within three years of its publication is public domain.  
 
EU question No 42:  Could Egypt explain further this provision? Is this provision compatible with 
Article 2(6) of the Berne Convention stating that the works  must enjoy protection in all Members 
of the Convention?  
 
Reply:  
Taking into consideration that Article 8 of Berne Convention indicates that the right of translation 
should last to the full period of 50 years of the copyright protection. And since the TRIPS 
Agreement incorporates Articles from 1 –21 of Berne and the Appendix thereof. Nevertheless, 
Article II of the Appendix to Berne Convention "Special Provisions Regarding Developing countries" 
provides for an exception to the exclusive right of translat ion to the favo ur of developing countries 
allowing them to limit the right of translation to three years. However, following the expiry of the 
three years period the original work does not fall in the public domain, hence, the competent WT/TPR/M/367/Add.1  
 
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  authority is to be entitled to issue a license for translation to any third party interested in 
translating the work in question. The original work remains accorded full protection for the full 
50 years.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.1 Agric ulture  
4.1.1.2 Policy developments  
4.1.1.2.1 Overall strategy - 4.1.1.2.2 Support to farming  
Paragraphs 4.9, 4.10, 4.14, 4.15 and 4.19 (and also 5.8 G/367)  
In paragraph 5.8 of the Government report Egypt states to provide "support to agriculture focused  
primarily on non -product -specific technical agricultural extension service support, including with 
irrigation and drainage management processes." In addition, the latest DS:1 notification only 
refers to the fuel subsidies and support for "development prog rammes", in particular investment 
credit and loan scheme for small farmers. However, according to the report of the secretariat 
(sections 4.9, 4.10, 4.14, 4.15 and 4.19) it appears that Egypt also provides other types of 
support in particular for wheat (su ch as market price support) which would normally have to be 
notified under the amber box spending.  
 
EU question No 43 : Is Egypt also going to notify to the WTO the support provided to wheat 
production via the policy implemented by the General Authority for  Supply of Commodities 
(GASC)?  Could Egypt clarify the eligibility criteria for the wheat that is being bought from farmers 
by GASC? What has been the average sales price of the wheat bought in the last 5 years by GASC . 
 
Reply:  
It is worth noting that the  latest DS:1 notification refers only to pest control subsidies provided as 
per the provisions of Annex 2 of the Agreement on Agriculture, it has no reference to fuel subsidies 
as referred to in the introduction of the question.  
 
As for wheat production , there is no market price support for wheat as the prices declared by the 
government for the marketing of wheat is determined based on the cost of production per feddan 
in addition to the cost of transport and storage without refer encing international prices. In fact the 
price declared by the government might be higher than the international prices for wheat or below 
them as has been the case for the years 2007, 2008, 2009, 2012, 2014 shown in table 4.8 of the 
secretariat report. It  was also below international prices in 2017.  
 
GASC buys local wheat from the farmers according to the following conditions:  
 
- The supplied wheat is from the latest crop not that of previous years.  
- The wheat is free of pests, sand and stones.  
- The wheat meets the requirements of the relevant Egyptian standards.  
 
4.1.1 Agriculture  
4.1.1.2.4 The Food Subsidy Programme  
Para 4.27, page 111  
 
EU question No 44 : The EU would appreciate more detailed information on how Egypt's General 
Administration for the Sup ply of Commodities operates. Could Egypt provide estimates of the 
current amounts of spillage/leakage in the system, and how much this would be reduced by the 
reform measures currently being implemented?  
 
Reply:  
The government of Egypt has moved towards a cash based food subsidy program whereby the 
subsidy is 50 L.E. /beneficiary to spend on 44  selected food products redeemable in State -owned 
shops or partnered private shops. The products are sold at market prices not at subsidized prices.  
 
The only subsidi zed product is bread five loaves of bread per day at a EGP  0.05 per loaf. Yet, 
beneficiaries can convert their unused "bread quota" into points to spend on other products. The 
government has stopped subsidizing flour used in bakeries selling subsidized bre ad. Instead, the 
subsidies are tied to the actual bread purchased by beneficiaries, estimated to save EGP  8 billion 
(USD  447 million) on 2017/18 food subsidies.  
 WT/TPR/M/367/Add.1  
 
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  The government has also moved to the smart card system. The databases of beneficiaries were 
further filtered according to a number of factors including the social factors, inflation, 
unemployment. This will in turn reduce the leakages and ensure that subsidy is better targeted to 
which will reduce the budget deficit and poverty among the low and mi ddle income groups.  
 
4.3 Manufacturing  
4.3.1 Overview  
Page 122  
EU question No 45 : The EU would like to receive the latest available information on the draft law 
on the "automotive industry"?  
 
Reply:  
The government of Egypt is currently exploring the appropriate policy options to enhance the 
competitiveness of the automotive industry and attracting foreign direct investment. In deciding on 
those policy options, Egypt will ensure that it fully complies with its commitments at the 
multilateral, regional and bilateral levels.  
 
WT/TPR/G/367 – Government Report  
 
4 Trade Policy Framework,  
4.1 Trade Policy Objectives,  
Paragraph 4.3, pages 9 –10 
Report states that  to support export growth, the Government of Egypt (GoE) has established 
(under the auspices of the  MTI) a new national trade promotion organization, the Export 
Development Agency (EDA). The EDA will also be directly involved in working with the private 
sector to identify target areas for regulatory reform, including streamlining import and export 
proce dures.  
 
EU question No 46 : Could Egypt specify how will the EDA's cooperation with the private sector look 
like and how will it take into account the Egyptian Free Trade Areas?  
 
Reply:  
 
The Export Development Authority (EDA) is an Egyptian governmental entity, affiliated to the 
Ministry of Trade and Industry. EDA is established to support and increase the Egyptian exports 
through penetrating various international markets by enhancing trade policies towards more trade 
facilitation, promoting the Egyptian products and providing export related services to help Egyptian 
products comply with the international standards and market entry requirements.  
 
The EDA is working closely and in cooperation with the Egyptian export councils, that are 
considered to be the focal point between the private sector and the government. The export 
councils represent the variety of the Egyptian industry.  
 
Such cooperation can be highlighted in the formulation of the "Coordination Council for Export 
Councils". The council aims at or ganizing and unifying the export related activities and efforts 
towards raising the competitiveness of the Egyptian products in the international target markets. 
In addition to conveying the problems, issues and feedbacks raised by exporters concerning 
procedures, regulations, marketing activities or any other trade related matter. The importance of 
this council is to ensure the effectiveness and soundness of the current trade policies and 
activities, in parallel with recommending and formulating future one s. 
 
Additionally, within its mandate, EDA is working on the provision of various training courses and 
workshops to raise the awareness of the industrial sectors and SMEs about the benefits of utilizing 
the existing preferential trade agreements that Egypt maintains with a number of countries and 
regions .In addition to highlighting the potential imports and exports with the partner countries to 
end with a win -win trade situation. Additionally, EDA is planning to organize the Egyptian 
participation in many i nternational trade fairs and exhibitions, coupled with B2B meetings and 
trade missions to deepen the trade relations with Egypt's current and potential trading partners.  
 WT/TPR/M/367/Add.1  
 
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  5 Trade Policy Developments since 2005  
5.5 Trade and Consumer Protection  
Paragraph 5. 12, page 12  
The report claims  that some types of unfair trade practices fall under the aegis of 'consumer 
protection' and notes creation of Egypt's Consumer Protection Agency (ECPA).  
 
EU question No 47:  Could Egypt provide more details about new developments in the field of 
consumer protection?  
Reply:  
The Consumer protection Agency has finalized a Twinning project in 2014 with Germany, France 
and Spain. This project consists of four components; the first component called for legislative 
upgrading of current CP law in Egypt in order to approximate it with the level of protection 
currently in place in European countries.  
 
The twinning project resulted in making a draft to the new consumer protection law which has 
been already revised in the Parliamen t's committee of commercial affairs, and is now ready for 
discussion and voting by the members of the parliament.  
 
The new draft of consumer protection law introduced some new articles to avoid gaps in existing 
law, tighten market control and combat all ne gative practices, for instance:  
1- Consumer bill MUST be issued.  
2- Defected goods can be replaced or refunded, if it's discovered within 30 days from the date 
of the receipt.  
3- All local/ imported goods should have a legal guarantee according to its nature.  
4- The s upplier must declare the total price of the good.  
5- Criminalization of misleading advertisements.  
6- Organizing reservation/cancellation of the goods.  
7- Supplier should provide the necessary spare parts after the legal period of warranty for a 
certain time accor ding to the nature of the commodity.  
8- Defining the needed criteria for remote selling according to the policy of refund and 
replacement of the goods.  
9- Awarding the legally committed trader a certificate under the name of "consumer friend".  
10- Supporting consume r protection associations and federations.  
The CPA is a member in many major Consumer Protection networks in the world such as:  
 CPA is a full member in the International Consumer Protection Enforcement Network 
(ICPEN).  
 An observer in the Committee on Consumer Policy Under the OECD.  
 An active member of the African Dialogue on consumer protection.  
 A member on Consumers International.  
 A member of UNCTAD MENA program.  
These memberships qualified CPA to adopt the best practices from the worldwide agencies i n order 
to enhance the standard of Egyptian consumer protection. In addition, the role of CPA in The 
United Nations to bring to light the UN Guidelines for Consumer Protection. This culminated in the 
issuance of the General Assembly Resolution on 22 Decemb er 2015. The proactive contribution of 
CPA in this exercise resulted in the nomination of the CPA Chairman to chair the first IGE meetings 
on consumer protection under UNCTAD in Geneva (October 17 and 18, 2016).  
 
This also was followed by the presidency of  CPA chairman of the Arab League Consumer Protection 
Experts Committee.  
 
Recently, CPA chairman was chosen as the first chairperson for the COMESA consumer protection 
Committee.  
 
All of these efforts are exerted to certify the CPA's mission to protect the consumer through 
encouraging legal trade, monitoring the market and educating consumers & businesses.  
 
Paragraphs 4.3 and 4.11, page 10  
Reference is done to the TF subsidiary committee mentioned in the report.  WT/TPR/M/367/Add.1  
 
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  EU questions No 48:  Could Egypt explain the role of the Trade Facilitation Subsidiary Committee 
compared to the NTFC?  
Reply:  
There is a confusion here as the Trade Facilitation Committee is abbreviated by NTFC. It is a 
subsidiary of the National High Committee which is unde r the auspices of the Ministry of Trade and 
Industry, and was established by Ministerial Decree No. 478/2002.  
If EU is asking about the main role of High Committee, which has both public and private sector 
participation, it is the formulation of the Egypt ian negotiating position and all proposals related to 
WTO negotiations, and the follow -up of the implementation of laws and regulations and their 
compliance with Egypt's international obligations. Its subsidiary committees (Market Access 
Committee, Dispute  Settlement and Trade Safeguard Committee, Trade in Services Committee, 
Intellectual Property Rights Committee, and New Issues Committee) are responsible for 
periodically preparing a technical report for the High Committee for follow up.  
Decree No. 183/201 1 created new subsidiary committees, namely the Government Procurement 
Committee, the Trade and Environment Committee, the Sanitary and Phytosanitary Measures 
Committee, the Technical Barriers to Trade Committee, and Trade Facilitation Subsidiary 
Committee . 
Regarding the role of Trade Facilitation Subsidiary Committee, it meets on a regular basis and is 
considered as the main instrument through which both public and private sector representatives 
convey the problems encountered and their technical needs. Th is Committee is responsible for 
coordinating the Egyptian position towards trade facilitation -related issues and for following up the 
implementation of the Trade Facilitation Agreement (TFA), as well as communicating with the 
donors. In addition, it plays a pivotal role in developing priorities and a Roadmap or strategic plan 
(potentially followed by action plans, too) with clear timelines, in collaboration with competent 
authorities. This committee is already notified to WTO, WCO and other TF - related inte rnational 
entities.  
Paragraph 5.16 and 5.18  
Together, the IPR specialised bodies coordinate the vigilant implementation of Egypt's relevant 
legal regimes that protect Intellectual Property Rights (IPRs), including cybercrimes. Furthermore, 
between 2011 and 2017, the GoE's IPR Contact Point processed  over 2,200 complaints, with the 
overwhelming majority related to copyright infringement.  
 
EU questions No  49: Could Egypt explain further this statement, notably as regards online piracy? 
What kind of measures were taken? What is the regime of liability o f the Internet Provider 
Services?  
Reply:  
The implementation in the statement refers to actions taken against users of online pirated 
copyrighted materials in light of the general commitment to protect any form of IP or copyright 
infringement.  
 
The Egyptian  IPR Law does not address the legal responsibility of internet service providers (ISPs) 
toward s IP infringements.  
 
As regards the measures taken, efforts were carried out by the Works Investigation Department 
within the Ministry of Interior in addition to ITIDA to combat pirated materials and conduct raids to 
seize them, whether upon ex -officio initiative or upon compl aints by right holders.  WT/TPR/M/367/Add.1  
 
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  SWITZERLAND  
Replies to questions from  Switzerland  
 
Report by the Secretariat (WT/TPR/S/367)  
1 ECONOMIC ENVIRONMENT  
1.1. Main Features of the Economy  
 
Question 1: According to para. 1.3 , public -sector enterprises continue to play a  prominent role in 
the Egyptian economy, while the economy could benefit from a more open and liberalized 
economic policy with the private sector as a larger source of growth. According to IMF estimates, 
the share of the public sector in total employment i s close to 30%, almost twice as high as formal 
private sector employment. What is Egypt undertaking in order to foster more openness, 
transparency and competitiveness? What is Egypt's policy in order to create room for the private 
sector? Are there any lib eralization plans in near future?  
 
Reply:  
At the outset, the reference to the share of public sector in total employment being close to 30% 
and being twice as high as formal private sector employment is not accurate.  
 
According to the statistics of the Cen tral Agency for Public Mobilization and Statistics, the total 
number of employees in Egypt is 28.9 million in 2017, out of which:  
 
 Employees in the Government sector are 5.2 million in 2017 (17.3% of total employment).  
 Employees in the public business sector are 0.83 million in 2017,(2.8% of total 
employment).  
 Employees in the private sector are 23.5 million in 2017, (75.7% of total employment).  
 
Therefore, employment in the Egyptian Government and the public business sector is 20.1% 
compared to about 7 6% in the formal private sector.  
 
Furthermore according to official statistics, the number of employees in the Public sector 
decreased by (6 %) and the number of employees in Government sector declined by (12%) since 
2014.  
 
On the creating more room for th e Private Sector, it is Egypt's strategy to enhance the 
participation of the private -sector into the economic development through building an enabling 
business environment that enhances the local and foreign investments to fulfil the increasing local 
deman d and integrate into the global value chains. In fact, the current expansion in the  various 
industries has been le d by the private sector. In 2016 -2017 2374 private sector manufacturing 
facilities started operation.  
 
In addition, law 5/2015 for the enhance ment of the private -sector participation in government 
procurement and contracting will enrich the market and give the private -sector especially the 
medium sized company the ability to leverage the economy of scale.  
 
Furthermore, in the case of public busi ness sector SOEs (those falling under Law 203) –which form 
part of the entire public sector - there is a clear policy of reaching out for potential partne rship with 
the private sector( Egyptian or foreign partners) in several ways. This is clearly because 
restructuring SOEs could benefit much from private entrepreneurship in terms of know -how, 
financial abilities, managerial skills and market outreach.  
 
Various forms of partnership are welcomed, some of which have already taken place in several 
cases, includi ng: 
 Leasing production lines.  
 Partnership through revenue -sharing agreements.  
 Establishing new Law 159 joint venture companies to carry out restructuring.  
 Capital increase to be subscribed to by private sector.  
 Stock flotation for stakes in SOEs under Law 203. Currently, an action plan has been 
agreed between the Ministry of Finance and the Ministry of Public Business Sector to sell 
minority stakes in 10 companies in the stock market.  
 WT/TPR/M/367/Add.1  
 
- 27 - 
 
  All these forms of partnership are to be adopted on case -by-case basis, and in light of proper 
studies by specialized consultants and investment banks.  
 
Question 2: Para. 1.5  states that the informal sector has grown significantly in recent years, 
representing the fastest growing segment of employment in Egypt and providing a significant 
share of the jobs for young people (91%). At the same time, the transformation of informal 
entrepreneurship into formal entrepreneurship seems to be of key importance, not least in order to 
increase the collection of revenue to finance social s ervices and invest in education, health and 
infrastructure. What are the most important clusters/sectors of informality? What instruments are 
used in order to increase the formality of the economy, respectively to link informal entities to the 
formal secto r? 
 
Reply:  
The most important sectors of informality are furniture, leather, chemical, plastic, and agriculture.  
 
The instruments that have been used in order to increase the formality of the economy can be 
summarized in the following:  
 
 Facilitation of the  process of getting the required licensing to be formal (Industrial 
Licensing law and the Firm establishment law);  
 The establishment of One -Stop-Shop Units are considered to be one of the most important 
tools to integrate the informal sector into the forma l one, given their key role in 
streamlining enterprise start -up and licensing procedures as they host, all in one single 
place, representatives from line ministries and governmental bodies/agencies responsible 
for the issuing of business licenses and appro vals. 
 Increasing the business opportunities that attract the informal business to formalize to get 
the benefits out of those business opportunities as well as to get the government 
assistances that include financial and non -financial services such as the t echnical and 
commercial support including assistance with product marketing through exhibitions, 
mega -stores and commercial chains and initiatives such as Creative Egypt;  
 Re-regulate the tax collection to exempt from the retroactive collection methodology which 
already has been stated at the MSMEs and entrepreneurship development law, that has 
been discussed at the cabinet;  
 Expansions in the current approach development in the establishment of the industrial 
zones that allows the MSMEs businesses to link wi th each other through the value and 
supply chain;  
 Facilitate Access to Finance through the provision of concessio nal loans (low interest rates 
appropriate grace periods);  
 Boosting the role of civil society organizations, and incentivizing and encouraging 
consumer protection associations and Government body in charge of raising public 
awareness about the risks of non -observance of health and safety requirements in the 
products of the informal economy;  
 Streamlining bankruptcy and business exit procedures;  
 Adjusting the share of insurance fees on the employer;  
 Setting a reduced electricity / water tariff for a determined period.  
 
1.2. Recent Economic Development  
 
Question 3:  According to para. 1.10 , Egypt implemented a large set of economic policy reforms 
in line with the Extended Fund Facility (EFF) arrangement of the IMF. Several reforms have already 
been implemented (notably the introduction of a VAT, reduction of energy subsidies, etc.), while 
others are under way. What reforms does the Egyptian government  currently plan in order to 
improve the business climate? In particular, are specific measures envisaged in order to reduce 
red tape and to increase the protection of intellectual property rights?  
 
Reply:  
The Government's objective is to unlock Egypt's gro wth potential through growth enhancing and 
market friendly reforms that attract investments, raise productivity, improve the business climate, 
support exports and competitiveness. Below is a list of approved reforms along with key reforms 
which are in the pipeline  
 WT/TPR/M/367/Add.1  
 
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   Industrial Land and Licensing Law (Both the law and executive regulation are enforced)  
o Introducing licensing service centers (outsourcing for the first time qualified and 
certified private entities to do this role).  
o Reducing the number of author ities involved down from 11 to 1 and the number of 
procedures from 154 to only 19 with an automated issuance system.  
o Shortening the issuance of licensee to 7 days for 80% of activities and a maximum 
of 30 days for industrial establishment.  
o Setting specif ic standards for grievances and ensuring transparency of procedures.  
o Possibility of dealing with technical accreditation offices, to facilitate procedures 
and reduce pressure on the Industrial Development Authority.  
 New Investment Law (Both the law and ex ecutive regulation are enforced)  
o Strengthening the guarantees granted to investors such as respect and 
enforcement of contracts, protection of investment projects funds, and ability to 
freely transfer and repatriate profits any time.  
o Introducing investme nt service centers (outsourcing for the first time qualified and 
certified private entities to do this role).  
o Increasing and diversifying incentives available to investors in an efficient manner 
(making them time bound and linked to main developmental goal s). 
o A comprehensive reform of the investment procedural system where a center for 
investor services was established in all provinces to help investors with all 
investments approvals.  
o Developing a technological system to deal with special investment zones.  
o Activate a more effective way of settling disputes, headed by the Ministerial 
Committee on Dispute Resolution  
 Bankruptcy law (awaiting parliament approval)  
o Amends the current bankruptcy system.  
o Provides legal alternatives enabling companies to go through debt restructuring 
bankruptcy.  
o Simplify bankruptcy and liquidation procedures to encourage investments and risk 
taking that is often cited as one key constraint for doing business in Egypt.  
o Preserve shareholders' interests.  
 Single partner companies law  
o Aims to keep pace with global developments in corporate regulation while 
encouraging SMEs.  
o Grants the ability to establish a limited liability company with only one person as a 
member, with a separate legal entity protection personal assets from risks.  
o Organi ze and maximize the performance of the proprietorship sectors, by providing 
ease of decision making and management man oeuvrability.  
 Natural Gas Law (Awaiting the issuance of executive regulation by January 2018)  
o The law and its executive regulation author ize the establishment of an independent 
regulatory body for the Natural Gas Market.  
o The law will permit for the first time the issuance of licenses for imports and 
distribution of natural gas by the private sector.  
 Feed-in tariff program (approved with mor e than 30 transactions reaching financial 
closure)  
o The program aims to develop 4.0 GW of renewable energy by the private sector by 
2022.  
o The program has been successful in attracting private sector investors (30 firms) 
to the Benban solar complex in Upper Egypt with committed private investments 
worth US$1.8 billion.  
o The project is attracting financing from IFC, EBRD, AIIB among other financial 
institutions.  WT/TPR/M/367/Add.1  
 
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  o The Egyptian Electricity Transmission Company (EETC) has signed a power 
purchase agreement with a co nsortium to develop US$250 mn wind power station 
in the Gulf of Suez, within the feed -in tariff (FiT) program.  
 
Going forward, other key measures are:  
 To support SMEs and entrepreneurship and encourage the formalization of the private 
business sector, the government is underway to establishing a modern and effective tax 
regime for SMEs in 2017/2018; where small tax payers would pay a reduced flat tax rate 
on annual recorded turnover levels.  
 To further support competition, optimize public spending and reduce  corruption, the 
government is intending to modify our public procurement law in line with best 
international practices. The new law will introduce procurement methods that are in line 
with best and market practices to accommodate government current and fu ture needs, 
regulate subcontracting benefits and obligations, and strengthen transparency and 
complaint mechanism. The government will work on the issuance of the new law by the 
Parliament by end -November 2018. Additionally, to promote transparency we aim to 
establish a single portal dedicated for government Procurement, where all relevant 
materials can be publicly accessible online by December 2018 and to introduce a code of 
Integrity for Government Procurement staff by June 2019.  
 To promote competition an d complement the legislative reforms aiming to liberalize the 
Electricity market, the government is working on compiling a plan to financially restructure 
the Egyptian Electricity Holding Company in order to improve financial soundness of the 
company and e nable it to engage in commercial transactions without Government 
guarantee and/or support. The plan will be jointly announced by the Ministries of Finance 
and Electricity by March 2018.  
 To promote competition, investment and raise the quality of services in the transportation 
sector, especially regarding road transport, the government is working on separating the 
regulatory authority for public transportation from the Ministry of Transpor tation. The plan 
is to announce the creation of the independent regulatory authority by June 2018.  
On the other hand, with regards to Intellectual Property Rights, Egypt, in the last few years, has 
undertaken various steps towards improving the business climate and increasing protection for 
intellectual property rights.  
 
The following points illustrate some of the major steps taken by the Government: - 
 
- Providing awareness campaigns for judges, prosecutors, police officers, and IP owners.  
- Establishment of specialized departments to combat IPR infringements.  
- The establishment of Economic Courts which are specialized in the IPR Law among other laws 
regulating commercial matters. These courts provide more speedy and efficient procedures 
than the traditional co urts system, and rule on both the civil and criminal aspects of the case.  
- The relevant authorities work on enhancing and fastening the registration processes. For 
example the Ministry of Health has recently shortened the time period required for examining 
pharmaceuticals, and provided a fast track examination system in addition to the normal track.  
 
These efforts combined together contribute to promoting the IPR environment and protection, and 
the business environment consequently.  
 
Question 4:  As stated in  para. 1.13 , the Egyptian Government launched a four -year Industrial 
Development Strategy (IDS) in February 2016, with the aim to significantly increase the 
contribution of the industrial sector to the GDP. Could you further elaborate what kind of 
(legisla tive) measures the IDS entails in order to support the growth of industrial development, 
especially regarding micro -, small and medium enterprises? Did Egypt introduce any incentives 
towards selected sectors/areas? In which way does the IDS address the sig nificant discrepancies 
between the different regions and their respective development needs?  
 
Reply:  
 
Q: Could you further elaborate what kind of (legislative) measures the IDS entails in 
order to support the growth of industrial development, especially re garding micro -small 
and medium enterprises?  
Answer: Egyptian Government have issued some legislations:  WT/TPR/M/367/Add.1  
 
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  Law No.15 of 2017 of "Simplification of Industrial Licensing Procedures" whereby licensing entities 
reduced from 11 entities to only one entity, which is  Industrial Development Authority (IDA). This 
Law aimed at facilitating the procedures of providing the industrial licenses, for example, through 
reducing the duration of issuing licenses from 634 days to only 7 days for the low -risk industries 
and 30 days  for high -risk industries.  
 
Law No. 83 of 2016 that "unify the allocation, pricing and management of industrial lands" to be 
under IDA Supremacy.  
 
New law for Micro, Small and medium Enterprises (MSME's) is being discussed this law will provide 
a unified d efinition of SMEs, includes clear procedures for the transition from the informal sector to 
the formal sector, and support the ease of licensing and funding procedures for the SMEs 
enterprises.  
 
Q: Did Egypt introduce any ince ntives towards selected sectors /areas?  
Answer: Egypt offers Tax and non -Tax Incentives as follows:  
 
1. TAX INCENTIVES  
1. A General Incentives  
Exemption from the stamp tax, notary fees and taxes on the registration of the Memorandum of 
Incorporation of the company and credit facilities granted and contracts pledged in association 
with the activity of the company for five years from the date of registration in the Commercial 
Register.  
 
Exemption from taxes on the registration of the land required to set up the company and 
estab lishments.  
 
Preferential import duty rate of 2% (in accordance with Art. 4 of the Customs Exemption Law 
No. 186/1986) on the value of imports of machinery and equipment to be used to set up the 
company or in any public utility project needed to set up the company.  
 
Industrial investment projects subject to the Investment Law may import casts and molds 
exempted from customs duties and other supplies for temporary use in the manufacturing of 
products to be re -exported abroad.  
 
1. B Specific Incentives  
50% dis count off taxable net profits for investment costs incurred in Sector A, which includes 
those geographical locations most urgently in need of development as defined in Egypt's 
Investment Map, and in the activities defined in Prime Minister Decree No. 2310/ 2017, containing 
the Executive Regulations of Investment Law No. 72/2017 .These areas, as defined in the 
Regulations are: the Economic Zone of the Suez Canal; the Economic Zone of the Golden Triangle; 
and areas most in need of development (high level of po verty and low level of education and 
health services), determined by the Council of Ministers.  
 
30% discount off taxable net profits for investment costs incurred in Sector B, covering the rest of 
Egypt's areas and in the activities defined in Prime Minist er Decree No. 2310/2017, containing the 
Executive Regulations of Investment Law No. 72/2017  for the following investment projects:  
 
 Labor -intensive projects as defined in the Regulations (at least 500 Egyptian workers and 
the cost of wages representing at least 30% of production costs)  
 Small and medium -size enterprises and projects  
 Projects using or producing new and renewable energy  
 National and strategic projects as defined by a Decision of the Council of Ministers  
 Tourism projects as defined by a Decision of the Council of Ministers  
 Electricity generation and distribution projects as defined by a Decree issued by the Prime 
Minister upon a joint proposal from the competent Ministry, the Minister concerned with 
electricity affairs and the Ministry of  Finance  
 Export projects  
 Automotive manufacturing and auto feeding industries  
 Wood, furniture, printing, packaging and chemical industries  
 Antibiotics, oncology drugs and cosmetic industries  
 Food, agricultural products, and agricultural waste recycling ind ustries  WT/TPR/M/367/Add.1  
 
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   Engineering, metallurgical, textile and leather industries  
 
2. NON -TAX INCENTIVES  
The Council of Ministers may:  
Establish Customs Offices dedicated to an investment project's exports or imports in agreemen t 
with the Ministry of Finance.  
 
Decide tha t the State is to cover, wholly or partly, the expenses incurred by the investor for the 
provision of utilities to the real -estate properties allocated to the project.  
 
Decide that the State is to partly cover the expenses incurred for the technical traini ng of the staff.  
Refund 50% of the value of the land allocated for the industrial projects in case the production 
starts within two years from the land delivery date.  
 
Allocate lands free of charge for some strategic activities.  
 
Upon proposal from the competent Ministry, pass a decree to introduce new non -tax incentives 
whenever it is considered necessary.  
 
The investor may deduct from income tax expenses up to 10% of his annual profits to create a 
social development system outside of the investment pro ject in one of the following fields: 
(a) enhancing environmental protection; (b) providing healthcare, social care or cultural 
programmes or services; (c) supporting research, technical education and production 
improvement, in agreement with universities o r research institutes; (d) training and scientific 
research.  
 
Q: In which way does the IDS addresses the significant discrepancies between the 
different regions and thei r respective development needs?  
 
Answer:  
Egyptian Prime Minister have issued a decree No.42 of 2017 concerning free land allocation 
"Infrastructured" in upper Egypt governorates (Aswan – Luxor – New Vally – Assut –Sohag – Qena 
– Beni Suif -Mena) in order to encourage industrial investment in upper Egypt Governorates.  
 
2 TRADE AND INVESTMENT REGIMES  
2.2. Trade policy formulation and objectives  
Question 5 : Para. 2.12: The report mentions that the National High Committee is one of the 
most important trade -related bodies in Egypt and that the main role of the Committee, which has 
both public and private sector participation, is in particular the formulation of the Egyptian 
negotiating position and proposals related to WTO negotiations. How does the Committee take its 
decisions/recommendations and what is their status? How does the Committee intera ct with the 
Ministry of Trade and Industry?  
 
Reply:  
The National High Committee takes all its decisions and recommendations by consensus of all 
participants from both government authorities and business community. Any 
decisions/recommendations submitted by  the National Committee should be reflected in the 
Egyptian negotiating position.  
 
The Committee is under the supervision of the Ministry of Trade and Industry. However, the 
Ministry does not have the authority to amend any decisions or recommendations app roved by all 
members in the National High Committee.  
 
2.3.3. Other agreements and arrangements  
 
Question 6 : With reference to para. 2.45 , could Egypt give some more details why the Trade 
Preference System of the Organization of Islamic Cooperation (TPS -OIC) has not yet entered into 
force although the required number of countries having met the necessary requirements of the 
System and ratified it has already been reached in December 2014?  
 WT/TPR/M/367/Add.1  
 
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  Reply:  
Pursuant to Article 18 on Entry into Force of the Framework Agreement on TPS -OIC, 10 Member 
States have to fulfill two conditions simultaneously to operationalize the TPS -OIC, namely; the 
ratification of the three TPS -OIC Agreements and the submission of t he list of concessions to the 
Trade Negotiation Committee Secretariat. As of December 2014, the number of countries having 
met necessary requirements of the TPS -OIC has been reached. However, for the entry into force of 
the System there are some practical steps that should be taken by the participating member 
states, including, updating the concession lists. By December 2017, Turkey, Malaysia, Pakistan, 
Jordan, Bangladesh, Iran and Morocco have submitted their updated concession lists.  
 
Question 7 : With ref erence to para. 2.47 , could Egypt provide some more information as to the 
timing of the establishment of the custom union based on the Continental Free Trade Agreement?  
 
Reply:  
According to the Abuja Treaty, which was signed in 1992 and entered into force in 1994, the 
African Union Heads of State have adopted and are pursuing regional integration as a crucial 
continental development strategy. On the basis of its adopted stages to reach the African 
Economic Community (AEC), the Customs Union is expected to b e established by 2019.  
 
Question 8: According to para. 2.44 to 2.49 , Egypt is participating in several preferential trade 
agreements and ongoing initiatives on the African continent. Do these agreements and initiatives 
foresee between them the harmonizatio n of certain rules in some areas? If so, could Egypt provide 
examples?  
 
Reply:  
With regards to Agreements:  
 Egypt has applied the Tripartite Agreement NTBs rules in the COMESA Agreement in order not 
to duplicate the negotiations in this matter.  
 Also, in neg otiating the Tripartite Rules of Origin, the three RECS rules (COMESA -SADC -EAC) 
were used as a benchmark for negotiations.  
 
With regards to Initiatives:  
 The COMESA has initiated the VICMED project where the principal objectives of this project 
are to devel op sustainable transport linkage between the Nile Basin countries, namely 
Burundi, Democratic Republic of Congo, Kenya, Rwanda, Tanzania, Uganda, South Sudan, 
Sudan and Egypt. This will help promote economic integration among the Nile Basin countries 
throu gh trade movements, and cheaper and cleaner transport means for goods and people, 
and ultimately build a development corridor on the Nile River.  
 
2.4. Investment regime  
 
Question 9 : In para. 2.53 it is stated that the Council of Ministers may grant additio nal incentives 
such as refunding half the price of the land, if the industrial project starts production within two 
years of the land delivery. What procedures apply to submit such a request for such a grant? Are 
they similar to the tax advantages under th e law, governed by the General Authority for Foreign 
Investment and Free Zones (GAFI)?  
 
Reply:  
The procedures to get refund of half price of the land "if the project starts production after 2 years 
from land delivery" is similar to the procedures to get ta x advantages under the law 72 -2017 , and 
these procedures are included in the article 13 in the executive regulation of law 72/2017 as 
follow:  
- Companies and entities subject to the provisions of the Investment Law shall notify GAFI with 
the production date  or the starting date of the activity within 90 days from the starting date. 
In addition a statement of the total Investment cost that is accredited by an auditor who's 
registered in the registry of accountants and auditors shall be attached with the notif ication 
letter.  
- Companies that engage in integrated tourism development activity are committed to this 
notification for each of their projects.  
- GAFI, is the sole entity , shall determine the production date or the date of starting the activity 
through one committee or more, that is formulated by a decree of the Executive Chairman of 
GAFI or his authorized representative, in which the concerned parties of the project activity WT/TPR/M/367/Add.1  
 
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  shall be presented. The committee shall conduct the necessary inspections to determ ine the 
production date or the date of starting the activity and to do the necessary documentary 
examination, and the committee shall prepare a report based on the output of the inspection 
within 15 working day from the date of receiving the completed noti fication. The report shall 
include the basis on which the committee leaned on in determining the production date or the 
date of starting the activity and the total value of the investment costs, and this report shall be 
approved by the Executive Chairman o f GAFI or his authorized representative. And this report 
is considered final and the company or the entity is to be notified by the results of this report 
after being approved.  
- Companies and entities has the right to appeal against this report and the basi s on which the 
report has been built in front of the grievance committee provided for the article (83) of the 
investment law.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1.1. Customs procedures  
 
Question 10 : In para. 3.18 , the report indicates that  97% of import declarations were processed 
through the red channel, and only 3% were processes through the green channel . Moreover, Para. 
3.19 states that, in 2016, for 31% of customs declarations the release time was four days to two 
weeks, and that for 15.4 % of customs declarations, it took more than two weeks. Does Egypt 
plan to take further measures in order to speed up customs clearance an d reduce release times?  
 
Reply:  
The Egyptian Customs Administration (ECA) agrees to the figures declared for the years 2014 -26. 
 
On 2017, the 36% of imports were released through green channel (visual verification for security 
purposes) for Alexandria, De khila, Port Said ports and Cairo airport (these ports represent 90 % of 
the Egyptian imports). Whereas, 64 % of the imports were released through red channel for the 
purpose of withdrawing samples for control authorities and customs control purposes.  
 
Currently Egypt is implementing the following plan to enhance the time -periods for customs 
clearance and hence to promote and trade facilitation:  
1- Signing a protocol between the ECA and the General Organization for Export and Import 
Control (GOEIC) regarding e xpediting the shipments of the AEOs.  
2- Using X -ray scanning all over the customs locations to facilitate customs control and save 
time  
3- A ministerial council for trade facilitation in Egypt (EgyTrade) has been established with the 
objective of creating a nat ional single window system. Accordingly, a team of Egyptian 
experts has finalized a study on the current business processes: procedures and 
documents, for the purpose of business process reengineering to overcome any weakness 
that could constitute a hindra nce to trade facilitation. Finally, the ECA team is working on 
the simplifying the procedures and rationalizing the documents used in the transactions.  
4- The ECA is undergoing the process of analyzing manifest data in order to enhance the 
efficiency of risk  management and select high risk consignments and reduce the 
percentage of inspection and examinations.  
5- Finally, the ECA is reviewing the possibility of unifying risk criteria between the ECA and 
the GOEIC.  
 
3.1.3.2 Applied MFN customs duties  
 
Question 11 : According to para. 3.42  of the report, Presidential Decree No. 538/2016, issued in 
December 2016, substantially increased MFN applied tariffs to up to 60% on certain items. 
Para.  3.45 indicates that 294 tariff lines bear tariff of 60% as of 2017. These a pply to machinery, 
medical appliances, electrical machinery and equipment, and furniture. Could Egypt indicate for 
how long these increased MFN applied tariffs will be in place? Could Egypt elaborate on the 
rationale for increasing the duty on medical appl iances, as it seems that it could have a negative 
impact on the health of the population, who might have to pay more?  
 WT/TPR/M/367/Add.1  
 
- 34 - 
 
  Reply:  
It should be noted that Presidential Decree No.538/2016 is not time bound. However, in the 
course of updating the Egyptian tariff structure according to HS 2017, a new Egyptian applied tariff 
will be issued and published. It is worth mentioning that tariffs are determined in the context of 
the entire economic and fiscal policy of the country.  
 
As for the reference in the question to the increase of tariffs on medical equipment and its impact 
on the health of the people, it should be noted that Decree 538 of 2016 did not entail any changes 
to medical equipment.  
 
3.1.3.3 Bound tariffs  
 
Question 12 : Para. 3.52 and table A3.2  refer to a list of 46 tariff lines for which the MFN 
applied tariffs exceed the bound rates. Could Egypt indicate which measures it intends to 
implement in order fulfill its WTO obligations as contained in its schedule of commitments? Does 
Egypt foresee to reduce the  applied duties to the level of its bound duties? If not, will Egypt resort 
to the deconsolidation procedure of Article XXVIII of the GATT 1994?  
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to a nother as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound rate of which was wrongly transposed and the appropriate procedures will be 
taken in the context of the Committee on Market Access.  
 
It should a lso be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law. Hence, in cases were the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in p reparing the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members set at the bound rate levels or below.  
 
On resorting to Article XXVIII of the GATT 1994, currently Egypt is not consider ing renegotiations 
of its tariff commitments. However, if it is decided later on, Egypt will follow the procedures set 
with regard to renegotiations.  
 
3.1.4 Import prohibitions, restrictions, and licensing  
 
Question 13 : As stated in para. 3.67  of the Secre tariat's report, Egypt has not submitted any 
notifications with respect to its import licensing regime. When do the Egyptian authorities envisage 
to submit the notifications as mandated by the obligations of the Agreement on Import Licensing 
Procedures and  allow the relevant committee to examine the import licenses of Egypt?  
 
Reply:  
The general principle is that imports are not subject to import licensing procedures. However, it 
may be applied to ensure the appropriate application of SPS, national security and environmental 
measures.  
 
We are currently taking stock of all the trade related regulations that have not been previously 
notified in order to prepare and submit the appropriate notifications in the context of the relevant 
WTO committees. However, this  task requires huge human and technical capacities.  
 
Question 14 : In para 3.71 , the report by the Secretariat states that "the Ministry of Health 
prohibits the importation of natural products, vitamins, and food supplements in their finished 
form." It also  says that "these items may be marketed in Egypt through local manufacture under 
licence, or by sending ingredients and premixes to a local pharmaceutical firm to be prepared and 
packed in accordance with Ministry of Health specifications."  
 
Although Egypt  is currently allowing importation of certain food supplements as bulk -type 
registered products that are subsequently packed in Egypt, we would appreciate if Egypt could 
elaborate on the rationale and objectives of this practice? Have alternative measures been taken 
into consideration?  
 WT/TPR/M/367/Add.1  
 
- 35 - 
 
  Reply:  
Prohibiting the importation of natural products, vitamins, and food supplements in their finished 
form protects the market from products imported with no reference, considering that these 
products are not essential ph armaceutical products. However as mentioned in the question above, 
Egypt allows importation of bulk and premixes products which undergo further manufacturing 
steps as dividing and final packaging.  
 
Question 15 : In para 3.77 , the Secretariat says that " in  accordance with Ministerial Decree No. 
43/2016, imports for commercial purposes of a number of products will be allowed into Egypt only 
if they are produced by manufacturing plants or imported from the companies owning the 
trademarks or their distribution  centres registered in the relevant established Register in the 
GOEIC."  
 
Given the existing quality control measures such as the inspections by the GOEIC of imported 
commodities, could Egypt clarify why Decree No. 43/2016 is necessary to achieve Egypt's p ublic 
policy objectives and whether Egypt considered alternative measures?  
 
Reply:  
The purpose of the Decree is to ensure that the entities exporting to Egypt maintain a quality 
control system to confirm that the products specified in the Decree and that a re used by natural 
persons are the outcome of a quality controlled production process. Despite the fact, that the 
imports of such products represent only a minimal share in total Egyptian imports, it has been 
found out that the Egyptian market has been inv aded by products that are the outcome of illegal 
manufacturing practices. This has had a negative impact on the health and safety of consumers 
and subjected them to deceptive practices.  
 
The Decree does not deal with or require compliance of products with specific Egyptian approved 
technical regulations and standards. Ensuring compliance o the products with relevant technical 
regulations and standards is done through the quality control measures inspection by GOEIC 
especially that Egypt lacks the appropriat e market surveillance mechanisms.  
 
In line with Egypt's commitment to the continuous improvement of trade facilitation processes, 
including through the use of new technologies, would Egypt consider creating a publicly accessible 
database of registered comp anies, so as to increase the transparency of the registration process?  
 
Could Egypt clarify whether registrations according to Ministerial Decree No. 43/2016 remain valid 
or whether they are subject to periodic reviews or renewals?  
 
Reply:  
The approved man ufacturing plants and the companies owning the trademarks that have been 
approved are duly informed of their registration. Furthermore the list of companies are made 
available at GOEIC's database for reference by economic operators.  
Registration according to Ministerial Decree no. 43/2016 remains valid as long as the submitted 
documents are valid. Hence, it is up to the applicant to submit documents having a long validity to 
avoid the renewal of the registration at frequent short time intervals.  
 
Question 16: In para 3.77 , the Secretariat report notes that "registration in, or striking off from 
this register is decreed by the Minister of Foreign Trade who also has the authority to allow for an 
exemption from some or all the requirements for registration."  
 
On which criteria does the Minister of Foreign Trade decree the registration of foreign 
manufacturing plants and trademarks owners that export to Egypt? Is the registration process with 
the GOEIC and the following decree by the Minister of Foreign Trade su bject to any time limits?  
 
Reply:  
The only criteria for registering the foreign manufacturing plants and trademarks owner companies 
is the fulfilment of the requirements set out in Ministerial Decree no.43/2016 and submitting the 
required valid documents.  
 
The time limit for the registration process is subject to the verification of documents. Once the 
verification of submitted documents is done by the General Organization for Export and Import WT/TPR/M/367/Add.1  
 
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  Control (GOEIC), the Minister competent for Foreign Trade issue s the relevant decree stipulating 
the registration.  
 
3.3.4 Competition policy and price controls  
 
Question 17 : Para. 3.193  stipulates that, according to the Egyptian Competition Law, sanctions 
can apply in respect of all prohibited activities that have an effect in Egypt, even if committed 
abroad and that sanctions can apply for failure to notify mergers and acquisitions to the Egyptian 
Competition Authority. Could Egypt please provide more details regarding this possibility of 
sanctions for omission of not ification abroad, in particular the process to carry out the sanctions 
for companies abroad?  
 
Reply:  
According to the Egyptian Competition Law No. 3 of 2003 and its executive regulations; the 
obligation to notify mergers and acquisitions applies only on the following;  
- The Acquiring undertaking, whose annual turnover in Egypt Exceeds 100 million EGP, upon 
their acquisition of assets, proprietary or usufructuary rights or shares.  
- The merged undertaking, whose annual turnover in Egypt Exceeds 100 million EGP . 
- The merged undertaking resulting in a joint venture, whose annual turnover in Egypt 
Exceeds 100 million EGP.  
Hence, the obligation to notify mergers and acquisitions applies only for the undertakings having a 
turnover exceeding 100 million EGP in Egypt. Therefore, any merger or acquisition that takes place 
outside Egypt does not fall under the obligation to notify according to the Egyptian Competition 
Law and Its Executive Regulation.  
 
It is worth mentioning that ECA is not the entity that is responsible for imposing sanctions on the 
violators of the ECL, as its jurisdiction is limited to investigate and making a violation/ non -
violation decision then refer the case to the public prosecution. The latter will then refer the case 
to the economic court which is the competent body to sanction the violators and impose fines.  
Moreover, the process to carry out the sanctions for companies abroad has not been provided for, 
explicitly, in the Egyptian Competition Law. Also, ECA has not faced this case yet.  
 
Therefor e, this matter should be worked out through international cooperation, in particular, in 
light of treaties and conventions of the judicial enforcem ent that was signed by Egypt. (T he 
question should be referred to the Ministry of Justice for any rather clar ifications)  
 
4 TRADE POLICIES BY SECTOR  
4 TRADE POLICIES BY SECTOR  
4.1.1 Agriculture/ 4.1.1.1 Main features  
 
Question 18 : In para. 4.6 , export restrictions on rice are listed among the measures 
implemented in order to prevent the non -authorized cultivation of rice. Could Egypt explain 
whether this policy instrument is frequently used? What has been Egypt's experience with export 
restrictions? As to the specific measure, is there evidence of a negative correlation between the 
measure and the non -authorized cu ltivation of rice? How does Egypt ensure that this measure 
does not have a negative impact on rice -importing countries?  
 
Reply:  
Egypt introduces export restrictions in accordance with the provisions of Article XI or Article XX of 
GATT 1994. In the case of rice, export suspension has been introduced to prevent the shortage of 
foodstuff in addition to rationalize on the use of water given the scarcity of water resources that 
Egypt is currently facing, and this was done based on studies conducted by the Minist ry of 
Agriculture in cooperation with the Ministry of Irrigation.  
 
It is also worth mentioning that Egypt has become one of the importing countries of rice to cover 
the shortage of rice in the domestic market. Also, the local production of rice is totally consumed 
domestically and we cover the rest of our demand through imports.  WT/TPR/M/367/Add.1  
 
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  4.1.1.2.3 Market access  
 
Question 19 : In para. 4.24 (p. 110)  the Secretariat notes that the exportation of certain 
commodities can be prohibited or restricted by ministerial decree under certain circumstances and 
that the Government did so for rice between 2008 and 2014. Such measures potentially 
aggravated the upward dynamic of prices on international markets at that time of extraordinary 
price surges. Do the Egyptian authorities en visage policy reforms that would allow to abstain from 
any export restrictions and prohibitions in the future?  
 
Reply:  
It is worth mentioning that Egypt has become one of the importing countries of rice to cover the 
shortage of rice in the domestic market.  Also, the local production of rice is totally consumed 
domestically and we cover the rest of our demand through imports.  
 
The government of Egypt is regularly reviewing and assessing its trade related policies, measures 
and regulations with the ultimate g oal of enhancing the business environment and facilitating 
trade. Hence, any changes in these policies, measures and regulations are duly published.  
 
4.2. Mining and Energy  
 
Question 20 : Egypt has already undertaken reforms of its energy consumption subsidies, as 
mentioned in para. 3.39, 4.48, and 4.55 . Could Egypt indicate whether it plans to continue to 
reform its remaining fossil fuel subsidies?  
 
Reply:  
Yes, as we already removed part  of energy subsidies over the past 2 years, we still plan to remove 
the rest gradually on all petroleum products. Sure, such a sovereign decision can take time and it 
also takes into consideration many aspects such as social conditions.   
 
Question 21 : Para s. 4.40 and 4.57  mention the objective to increase electricity production from 
fossil fuel energy sources, while according to para. 4.73 , the 2016 "Sustainable Development 
Strategy: Egypt Vision 2030" (2030 SDS) foresees that in 2030 only 27% of the total electricity 
generated will stem from oil and gas, 29% from coal, 16% from solar sources, 14% from wind 
sources, 9% from nuclear and 5% from hydro -electrical sources. How is the objective set by the 
2030 SDS to encourage the use of coal in electricity gener ation or as an alternative fuel for some 
industries in line with the Agenda 2030 (in particular SDG 3 (Good Health and Well -being), SDG 7 
(Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production) and SDG 13 
(Climate Action)), with the Paris Agreement and in particular with the objective of promoting the 
use of sustainable and environmentally friendly technologies set out in the 2030 SDS? What will be 
the greenhouse gas (GHG) emissions balance of shifting the electricity generation from oil and gas 
to electricity generation from coal until 2030? What kind of technology is envisaged for the burning 
of coal to make sure that the benefit for the environment is positive compared to the burning of oil 
and gas?  
 
Reply:  
Regarding the increase of  energy portion generated from fossil fuels and its accordance with 2030 
SDS: 
 
The increase of energy generated from fossil fuel does not mean that the percent contribution of 
fossil fuel in the overall generation of electrical energy will increase because  the demand on 
electrical energy increases in turn. Accordingly, SDS shows that energy generated from Renewable 
Sources will increase from 1.2% in present time to nearly 40% by 2030 and at the same time the 
contribution of hydro -electric energy reduces fro m 8% to 5% in the same time frame. Therefore, it 
should have been concluded that the overall target is to reduce the environmental emissions per 
unit of generated electrical energy.  
 
Regarding the GHG balance after operation of Coal Fired Power Plants, and  its accordance with 
2030 SDS and the Paris Agreement, kindly be informed that all future CFPP are built according to 
the IFC and WB Environmental Guidelines, also the future CFPP will be designed upon the Ultra 
Super Critical (USC) technology that insures  the highest efficiency, and Egypt will use the Clean 
Coal Technology that results in minimum gas emissions worldwide.  
 WT/TPR/M/367/Add.1  
 
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  4.4.6. Tourism services  
 
Question 22 : Para. 4.197/Table 4.28 : In the table, under 9.B, the report indicates that a non -
discriminatory ec onomic needs test based on the categories of tourists is applied. Could Egypt 
elaborate on the specific content of this test?  
 
Reply:  
An economic needs test is applied in a non -discriminatory manner; its main criteria are market 
needs, geographical locat ion, hotel categories and increase in number and categories of tourists 
(High end tourist with high expenditure and mass tourism where Categories of tourists depend on 
the tourism products which are related to the tourists segments like diving, visitors of  Natural 
parks and reserves ....etc, and the segmentation will depends on the capacity of the sites).  
 
Report by Egypt (WT/TPR/G/367)  
3 NATIONAL ECONOMIC VISION  
3.1. National Development and Economic Growth Goals  
Question 23 : Para 3.3: The 2030 Sustainabl e Development Strategy (2030 SDS) provides for a 
progressive policy mix that includes in particular sustaining three drivers of rapid economic 
development and employment, i.e. (a) high -skilled knowledge -based innovation, (b) 
entrepreneurship and (c) the hi gh-value -added manufacturing of goods with projected long -term 
growth in export demand and global consumption. What are the clusters where high -skilled 
knowledge are mostly supported? What are the instruments used to foster entrepreneurship? Are 
there some  clear policies of economic development/particular business assistance in disadvantaged 
regions? If so, what kind of instruments and in which regions?  
 
Reply:  
The clusters where high -skilled knowledge are mostly supported are: chemical, engineering, 
textiles and clothing, building material, leather, furniture, as well as agri and processed food 
industries.  
The instruments that have been used to foster entrepreneurship are:  
o Dedicated industrial investments map that address exactly what type of investment the  
country needs to ensure the local and global supply chain integration as well as fulfilling the 
gaps into the value chains. This industrial investment map has all the micro, small, and 
medium sizes required investment based on the complexity index prerequ isites. In addition, 
clear investment profiles have been developed and published through this platform in which 
the interested entrepreneurs/investors can register and apply.  
o Business development services (BDS) providers have been upgraded to be capable to  provide 
the (BDS) to the MSMEs as well as the entrepreneurs. Special attention have been given to the 
incubators and accelerators.  
o National competition has been conducted across all the governorates with special focus on 
Upper Egypt, youth, TVET students,  women, and special needs people. The main purposes of 
those competitions are to raise the entrepreneurship awareness as well to do the ideation 
generation and build the capacity for developing the business plan required to start the 
business.  
o The MSMEs an d Entrepreneurs Development strategy have been developed and approved by 
the advisory board and MSMEDA board of directors. Specific sections have been dedicated to 
give incentives to develop the Entrepreneurs.  
o A dedicated law for MSMEs and Entrepreneurs De velopment has been passed to the cabinet. 
Specific articles are dedicated to give incentives to develop the Entrepreneurs. Furthermore, 
the Single owner type of firms has been approved through the new law for the establishment 
of firms that have been appro ves and ratified by the parliament.  
Regarding the policies of economic development/particular business assistance in disadvantaged 
regions. Special incentives have been given to Upper Egypt including two governorates that are 
the most governorates in need for development such as Qena and Sohag have a dedicated 
program in close cooperation with the World Bank for inclusive development.  
 WT/TPR/M/367/Add.1  
 
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  3.2. Macro -economic overview  
 
Question 24 : In para 3.10 , the report indicates that at the sectoral level, tourism remains 
among the slowest of the key sectors to recover from the socio -political transformation phase of 
2011-2013. What is the specific strategy concerning the tourism sector? Is there a clear focus on a 
more sustainable tourism with an impact on disadvantaged reg ions? Tourism remains a key 
service in Egypt: In 2015, it employed 1.8 million persons directly and 4 million indirectly, which 
represents some 12.6% of the total work force. Apart from political unrests, which could radically 
slow down the numbers of inco ming tourists, what are the most important challenges the countries 
face with the tourism sector?  
 
Reply:  
Ministry of Tourism is seeking to increase the tourism flows in quantity and quality in Egypt 
through horizontal diversity by offering new tourism products in addition to vertical diversity by 
enriching the tourist destinations geographically. It also works to increase the share of inbound 
tourist, targeting new markets, and creating responsible and sustainable legislative and regulatory 
environment to encourage investment in the Tourism sector.  
 
Converting towards green tourism in order to save financial and natural resources by encouraging 
tourism sector to use new and renewable energy sources, maintain the biodiversity, reduce solid 
and liquid wast e volume, and reduce carbon emissions especially in remote areas. Provide studies 
on environmental impact, concerning reflection on the natural resources. Additionally, according to 
the new Investment Law there will be more incentives to the disadvantaged regions or related to 
the use of renewable energy when we shall allocate new projects for tourism.  
 
The most important challenges facing tourism sector include:  
 
− Travel advisory in some traditional markets especially Russia to Egypt and UK to Sharm El 
Sheikh Airport.  
− Negative perception toward the ME region.  
− Tourism awareness for the locals.  
 
3.5. Industrial policy  
Question 25 : Para. 3.23  lists the objectives of the near -term industrial policy in the context of 
the 2030 SDS. What are the main high -tech clusters foreseen in the SDS 2030? Are technology 
parks being developed as part of the innovation promotion policy? What are the main pilla rs in 
order to leverage energy efficiency? In which industrial sectors does Egypt look to engage more 
semi-skilled labour?  
 
Reply:  
- The main high -tech clusters foreseen in the SDS 2030 are :  
o Electronic, programming , Engineering industries , feeding industr ies for the 
engineering industries especially for home devises in Asyut and Beni Suef;  
o Technological Industrial clusters in Gizah and Alexandria;  
o Industrial cluster for manufacturing machines and equipment in Suez Canal Axis 
and 6th of October.  
 
- Indeed, th e technology parks have been developed as part of the innovation promotion 
policy. This policy ha s been developed in close cooperation with our development partners 
as well as the ministry of higher education and the Ministry of Communication and 
Information Technology. The government of Egypt is eager to establish technology parks 
across the nation to  provide a supportive environment for the development of the national 
ICT industry, and boost Egypt's reputation as a provider of world -class ICT and 
outsourcing services. Technology parks promote national growth in ICT -related fields while 
providing a num ber of benefits to member companies and organizations. These benefits 
include access to shared resources, such as uninterruptible power supply, high -speed 
telecommunications connections,security, management offices, convention facilities, 
parking, retail o utlets, and entertainment and sports facilities. In addition to reducing 
overheads for hosted companies, these parks foster links between industry and academia 
and provide an ideal environment for incubation centers.  WT/TPR/M/367/Add.1  
 
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  - Egypt has a national program for resour ce efficiency that includes energy, water, and 
recycling program to enhance the industry competitiveness and support the green 
economy. There are three pillars for the operationalization of the resource efficiency 
strategy: 1) Assess the situation in speci fic high energy consuming sectors such as 
ceramics, steel, cement, fertilizers as well as textiles and RMGs; 2) Identify the global and 
local bench mark for consumption; and 3) Upgrade the industries to meet the local and 
global benchmark of consumptions.  
- Egypt at large has a pool of low cost semi -skilled labour which gives it a competitive edge. 
The main Industrial sectors in which semi -skilled labour has a great potential are the 
automotive, the leather, agri and processed food, furniture, the ICT, and t he building 
material industries.  
4.3. Trade facilitation  
Question 26 : In para 4.7 , the report indicates that a new WTO Enquiry Point has been 
established in support of the newer WTO arrangements that include the TFA. How does Egypt 
ensure the effective fun ctioning of this new WTO Enquiry point? How many staff does it have? 
What kind of skills transfer is foreseen to make sure that the Enquiry Point functions in the long 
term?  
 
Reply:  
Egypt ensures the effective functioning of this new WTO Enquiry point thro ugh the National Trade 
Facilitation Committee, one of its main task is following up the implementation of the Enquiry 
Point, monitoring, assessing and evaluating its performance and provided information accuracy.  
 
Egypt's Enquiry Point is considered a centralized body with a group of specialists representing 
competent trade facilitation national agencies who would directly provide answers to the enquirer; 
it represents a coordination mechanism within some selected g overnment agencies to transmit 
requests, compile replies and send them back to the requesting parties;  
 
Egypt believes that ensuring sustainable Enquiry Point functions in the long term is through 
following the harmonious coordination between the agency/o fficials designated as the enquiry 
point and other relevant agencies, as well as the availability of financial and technical resources.  
 
Taking into consideration the TFA entry into force, Egypt is developing and improving its trade 
facilitation enquiry p oint through the necessary tools to perform the tasks (i.e. computers, fax 
machines, photocopy machines, Internet access,), besides providing on the job training based on 
countries' experience to update the agencies with the monitoring mechanism to ensure that all 
enquiries are readily answered using continuously updated information in reasonable time period.  
 
5.3. Trade in agriculture  
Question 27 : In para. 5.7 , the report mentions that the GoE  launched in 2009 its Sustainable 
Agriculture Development Strategy 2030. What were the first results of these programs launched in 
2009? Could Egypt indicate in which specific regions they were implemented?  
 
Reply:  
The initial results of the programs of th e strategy 2030 include the implementation of the 
project of reclamation of a million and a half feddans in Al -Farafra, West Minya and other 
desert areas. In addition, irrigation systems have been developed in an area of 
230 thousand feddans in Al -Beheira Governorate and Kafr El -Sheikh.  WT/TPR/M/367/Add.1  
 
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  COLOMBIA  
Replies to questions from Colombia  
 
DOCUMENT WT/TPR/S/ 367 
Summary - Customs procedures  
Paragraph 13  of the Report Summary states that: "13. During the period under review, Egypt 
continued the reform processes to improve the efficiency and transparency of its customs 
administration, reducing the number of documents necessary for import and export and ena bling 
its electronic submission. The Egyptian Customs continues to be based on the Customs Law of 
1963 and its amendments, although a new Customs Law is currently being drafted which will 
incorporate, among other things, the necessary amendments to impleme nt the TFA and the Kyoto 
Convention.  
 
However, several amendments have already been made to facilitate trade, such as the authorized 
economic operators program, the use of X -ray machines in most customs locations to facilitate 
customs control and save time , and the development of an electronic system for goods import and 
export by air. In addition, a Ministerial Council for Trade Facilitation in Egypt (EgyTrade) has been 
established with the objective of creating a national single window system.  
 
1. When the n ew Customs Law which will update the Customs Law of 1963 and 
implement the reforms that will improve trade facilitation will be drafted?  
Reply:  
The draft law has been submitted to His Excellency the Prime Minister and has been declared as 
part of the trade  facilitation tools. Some articles have been amended on February 8th, 2018. It is 
expected to proceed with the referred to amendments before the end of April 2018, before the 
closure of the current People's Assembly round.  
 
2. Apart from the Investment Law No. 72 of 2017 regarding the cancellation of 
some unnecessary documentation to facilitate trade, was there any other 
developments since 2005 to date?  
Reply:  
1- The decree of the Minister of Finance No. 256/2015 has been issued in order to slash down 
the numbe r of documents required for exports and imports through discarding the 
submission of the packing list as part of the supporting documents. Subsequently, the 
supporting documents necessary for customs release of imported goods are:  
- The bill of lading  
- The invoice  
- Delivery order  
- Documents proving origin for preferential treatment.  
2- The Egyptian Customs Administration (ECA) currently exchanges the data relevant to the 
results of inspections and examinations with the General Organization for Export and 
Import  Control (GOEIC) electronically.  
3- The data of the importers' register (available at the GOEIC) is, also, exchanged with the 
ECA electronically.  
4- The data between the Central Bank of Egypt with the ECA is exchanged electronically. This 
has led to annulling t he use of the paper form of the funding document and the paper form 
of the receipt of the administrative fees.  
 
3. During 2017, Egypt advanced from position 131 to position 122 in the "Doing 
Business Report of the World Bank", what factors were responsible fo r this 
improvement in the investment climate?  
Reply:  
Factors responsible for this improvement in the investment climate during 2017 were as follows:  
- Starting a Business Indicator improved from 73 to 39 by merging procedures at 
the one -stop shop by introdu cing a follow -up unit in charge of liaising with the tax 
and labo ur authority on behalf of the company  
- Dealing with Construction Permits indicator improved from 113 to 64. That was 
due to finishing website on the E -Government Portal to correct data; about number 
of procedures and required time to get building permits; recorded by the World 
Bank.  
- Getting Electricity indicator improved from 144 to 88. That was due to correction of 
the data of System Average Interruption Frequency Index SAIFI and System WT/TPR/M/367/Add.1  
 
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  Averag e Interruption Duration Index SAIDI per year which are recorded by the 
World Bank.  
- Protecting Minority Investors indicator improved from 122 to 144 by amending the 
registration rules of companies that lead to expand shareholders' role in company 
management  and determine the responsibilities for the members of company's 
board.  
-  
In other words, the improvement was increasing shareholder rights and role in major corporate 
decisions and by clarifying ownership and control structures.  
 
4. Does Egypt have any factua l elements evidencing that Law No. 72 of 2017 had a 
direct and positive effect on the improvement of the World Bank assessment?  
Reply:  
Yes, this law provides many procedures that will have positive effect on the improvement of 
the World Bank assessment as follows:  
- The electronic incorporation procedures shall apply (Article No. 48).  
- The Competent Authorities shall regularize their status  to activate the electronic 
services system with the GAFI; by providing all the documents, forms, and statements, 
and linking their working systems and databases with the GAFI's electronic services' 
system and database; accept the electronic signatures and  electronic payment of all of 
their payments. (Article No. 50).  
- Each facility or company, regardless of its legal form, shall have a unified national 
number to be used for all the Investor's dealings with all the different authorities and 
bodies. (Article No. 51).  
- Each facility or company shall have a unified national number to be used for all the 
Investor's dealings with all the different authorities and bodies in the State. (Article 
No. 51).  
 
1.2 Recent Economic Development:  
Paragraph 1.13 states that "In  order to increases GDP growth and job opportunities, the 
Government will increase the private sector participation in the economy. This objective is part of 
the comprehensive development plan "Vision of Egypt 2030", which was introduced in 
March  2015."  
 
In paragraph 2.16, it is mentioned that "the objectives of the Sustainable Development Strategy 
are, among others: (a) to increase the annual GDP growth from 4.3% in 2015 -2016 to 10% by 
2020 and to 12% by 2030; (b) to i ncrease GDP per capita from US$ 3462 in  2015-2016 to 
US$4000 by 2020 and to US$ 10,000 by 2030; (c) to decrease the inflation rate to 3 -5% by 2030; 
and (d) to reduce the budget deficit to 7.5% by 2020 and to 2.28% by 2030.  
 
5. Given that Egypt Vision 2030 foresees an increase in the GDP which is su bject to 
the growth of its international trade, through what mechanisms of facilitating 
international trade does Egypt plan to realize that goal?  
Reply:  
Egypt has made every effort to ensure better integration into the world economy. According to 
WTO stati stics, Egypt had a trade (goods and commercial services) to GDP ratio of approximately 
33.5% in 2016. However, it is our near -term trade policy objective to boost this figure to 45% in 
2020 and reduce our current accou nt deficit to around 3% of GDP.  
 
Egypt  has also been committed to the enhancement of trade facilitation. This was evident from its 
accession in 2008 to the World Customs Organization's revised Kyoto Convention on the 
simplification and harmonization of customs procedures. It was also most rece ntly reflected in its 
acceleration for the ratification process of the WTO Trade Facilitation Agreement (TFA) earlier in 
2017 and in its way to transport it into the national Law.  
 
Egypt activated the Authorized Economic Operator (AEO system). The system i s managed by 
Egypt's Customs Authority (ECA) in accordance with the WCO SAFE Framework, in order to 
facilitate and expedite the procedures of imported and exported AEO consignments. Publication 
51/2013 establishes the conditions for approving the AEO engag ing in importing and exporting; 
Publication 3/2017 establishes the conditions for the approval of warehouses and brokers providing 
services to the AEOs.  WT/TPR/M/367/Add.1  
 
- 43 - 
 
  Egypt issued advance rulings with respect to tariff classification and rates. The determination 
remains  valid if no changes occur at the time of importation. The ruling does not preclude 
verification upon importation of the products, without any liability whatsoever on the Cus toms 
Authority.  
 
The Ministerial Steering Council for Egyptian Trade Facilitation "EgyTrade" was created in 2015, 
chaired by the Minister of Trade and Industry, and comprised of the Minister of Finance, the 
Minister of Transportation, the Minister of Investment and International Cooperation, the Deputy 
Governor of the Central Bank of Eg ypt, the Chairman of the Federation of Egyptian Industries, the 
Chairman of Egypt's Federation of Commercial Chambers, and businessmen associations. 
EgyTrade aims at the creation of an Egyptian National Single Window (ENSW) system. In the 
framework of impl ementing the ENSW project, the ECA has taken into consideration international 
best practices and the experience of other countries. A working group has been established 
following a Decision from the Egyptian Customs commissioner, which includes four teams:  
legislation, documents, procedures, and technology. Similar working groups have been established 
in the Ministry of Transport, the Maritime Transport Authority, the Ministry of Trade and Industry 
and the GOEIC. The stage of studying the status quo had bee n concluded and that they were 
currently working on the simplification of procedures and documentation (re -engineering 
procedures).  
 
Egypt follows Integrated Supply Chain Management (ISCM) procedures; has x -ray scanning 
devices available to carry out inspections; implements a risk management system; has an 
intelligence department to help identify high -risk cargo; allows an advance electronic exchange of 
information; and coordinates with foreign administrations to detect, suppress and combat customs 
offences. With regard to the customs -to-business partnership, the authorities have highlighted the 
creation of the Authorized E conomic Operator (AEO) program.  
 
Egypt applies a risk management system by which it routes imports into two different channels: 
green and red. Clearance and release times depend on the channel to which the goods have been 
routed. The main risk assessment factors that are taken into account are: country of origin, port of 
shipping, supplier, shipping agent, importer, broker, HS tariff h eading, tariff rate, trade 
agreements, exemptions, and special customs regime. Pre -arrival processing and post -delivery 
clearance are used on occasion to speed up the release and c learance of goods.  
 
The challenge will be to seek to reduce further release times as the risk management system is 
improved, and other trade -facilitating measures are adopted. The ECA has been engaging in a 
number of actions geared at facilitating trade. They have included interacting with port authorities 
to reduce the time of re lease and therefore cost. Customs has also put in place x -ray devices (total 
of 102) in most customs posts to facilitate trade and customs control and reduce release times. 
Also, an e -freight import, and export system has been developed for air freight, ge ared at 
facilitating international trade.  
 
Trade Facilitation competent authorities are seeking to promote the use of electronic commerce, to 
facilitate trade, to foster efficient collection of customs duties and other border taxes, and to step 
up the fig ht against commercial fraud, trade in counterfeit goods and smuggling.  
 
Trade Facilitation competent authorities conduct periodic reviews regarding Egypt's obligations in 
international organizations, reflecting its international commitments and its partici pation in 
international bodies.  
 
The government of Egypt has also activated in 2017 a Single Administrative Document (SAD) 
system for import and export processes as a preliminary step towards the eventual 
implementation of an electronic single -window syste m. Extensive capacity -building efforts and 
investments in strengthening the Risk Management systems at Egypt's border conformity 
assessment body between 2005 and 2016 have resulted in major improvements to processing 
times for several border clearance proc esses.  
 
Furthermore, the government of Egypt has reduced the number of documents required to 
implement an import transaction into Egypt from 11 documents in 2016 to 6 documents in 2017. 
Similarly, the number of documents required to execute an export trans action declined from 9 
documents in 2016 to 5 documents in 2017. Further to these efforts the government of Egypt is WT/TPR/M/367/Add.1  
 
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  currently preparing to finalize new rules before 2019 that would reduce the number of documents 
required to carry out import or export tran sactions to be not more than 3 in total.  
 
2.3.2 Commercial Agreements and Arrangements:  
In paragraph 11 of the Report Summary, the Secretariat states that "Egypt participates in several 
preferential trade agreements, which play an increasingly important ro le in its trade policy. In 
addition to the preferential agreements with the European Union, the European Free Trade 
Association (EFTA), Turkey and MERCOSUR, Egypt is a party to the Pan -Arab Free Trade 
Agreement (PAFTA), the Common Market of Eastern and Sou thern Africa (COMESA) and the Agadir 
Agreement, and benefits from the generalized preferences systems of several countries.  
 
6. Does Egypt consider increasing the number of countries with which it negotiates 
trade integration schemes that allow it to penetrat e the global market more 
deeply? What is the planned agenda to achieve this objective?  
 
Reply:  
Egypt is currently undergoing and concluding negotiations of phase I in the following Agreements:  
 
 Egypt has ratified the Tripartite Agreement, which comprises 2 6 African countries. 
The Heads of State and Government of the Common Market for Eastern and Southern 
Africa (COMESA), East African Community (EAC) and Southern African Development 
Community (SADC) met on 10 June, 2015 in Sharm El Sheikh, Egypt at the Third  
Tripartite Summit to officially launch the COMESA -EAC-SADC Tripartite Free Trade 
Area (TFTA).  
 In addition, the African Continental FTA (CFTA) will be signed and launched at an 
extra-ordinary Summit of the African Union in March 2018. The CFTA will bring 
together fifty -five African countries with a combined population of more than one 
billion people and a combined gross domestic product of more than US $3.4 trillion.  
 Furthermore, Egypt is in the process of discussions with the Euro -Asian 
Economic Union, which include (Russia, Belarus, Kazakhstan, Armenia and 
Kyrgyzstan) with a view to determine a date to start FTA negotiations.  
 
2.4 Investment Strategy:  
Paragraph 2.50 states that "There have been several changes in Egypt's investment strategy since 
its pr evious trade policy review which was prepared in 2005. On May 31, 2017, a new Investment 
Law came into effect. In addition to the new investment Law No. 72/2017, Law No. 159/1981 of 
Companies and Law No. 83/2002 of Special Economic Zones also regulate inve stments in Egypt. 
The executive regulations of the Investment Law entered into effect on October 29, 2017, 
pursuant to the Prime Minister Decree No. 2310/2017. The Investment Law No. 72/2017 repealed 
Law No. 8/1997 related to Investment Guarantees and Ince ntives.  
 
Paragraph 2.59 states that Egypt continued to promote the establishment of free zones (section 
3). Under Article 33 of Law No. 72/2017, the Council of Ministers can establish these zones.  
 
7. How does Law No. 72 of 2017 facilitate trade within the Fr ee Zones and what are 
the economic and commercial results that expected to be realized?  
 
Reply:  
Investment Law No. 72 of 2017 provides as follows:  
- The Board of Directors of the Public Free Zone shall issue final approval on conducting 
the projects. The Ch airman of the Board of Directors of the Zone shall issue licenses to 
these projects to conduct their activities. This license shall be sufficient when dealing 
with various authorities in the State to obtain the services, facilities, and privileges for 
the project without having to be registered in the industrial register (Article No. (36)).  
-  The commodities exported abroad by the Free Zone projects or imported for the 
purposes of pursuing their activities, shall not be subject to the rules governing import 
and export, or to the customs procedures related to the exports and imports. Such 
commodities shall not be subject to customs duties, the Value -Added Tax, or other 
taxes and duties. (Article No. 39).  
- With the exception of the passenger vehicles, shall be e xempted from the customs 
duties, the VAT, and other taxes and duties all types of tools, supplies, machinery and 
all kinds of means of transportation, necessary for exercising the activity licensed for WT/TPR/M/367/Add.1  
 
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  all the projects existing within the Free Zone, even i f the nature and requisite for 
pursuing such activity require their temporary exit from the Free Zone to the Country 
and return thereto. (Article No. 39).  
- Import from the Free Zones into the Country shall be subject to the general rules 
applicable to impor tation from abroad. (Article No. 39).  
- As for the products imported from the Free Zone projects, and containing local and 
foreign components, the customs tax basis in their respect shall be the value of the 
foreign components at the prevalent prices at the time of their egress from the Free 
Zone into the Country, provided that the customs tax due on the foreign components 
shall not exceed the tax due on the final product imported from abroad. The foreign 
components are the imported foreign parts and material s as they are at their ingress 
into the Free Zone, without calculating the operating costs in that Zone . Concerning 
the calculation of freight, the Free Zone shall be deemed as the country of origin for 
the products manufactured therein (Article No. 40).  
 
8. Does this rule introduce facilities for the entry of capital into the free zones?  
 
Reply:  
Yes, The Investment Law provides many facilities for the entry of capital to invest in Egypt in 
general not only for free zones as follows:  
- The Investor shall have th e right to set up, establish, expand, and fund the Investment 
Project from abroad with no restrictions and with the foreign currencies. The Investor 
shall also be entitled to own, manage, use, and dispose of the Project and to make 
profits from the project  and to transfer such profits abroad, as well as liquidate the 
Project and transfer the proceeds of such liquidation, in whole or in part, abroad 
without prejudice to the rights of third parties . (Article No. 6)  
- The State shall allow the availability of al l cash remittance operations associated with 
the foreign investment freely and without delay to and from the State, using a free 
transferable. (Article No. 6)  
- Also, may be determined in any convertible currency and their financial statements 
may be prepared and published using this currency. (Article No. 52).  
 
3.1.3.3 Consolidated Tariffs:  
It is mentioned in paragraph 3.52 that "Although in most cases the applied MFN rates are 
considerably lower than the bound rates, in the 2017 tariff there are 46 l ines that are levied higher 
than the bound rates. In some cases, this is due to the recent tariff increases established in the 
presidential decrees"  
 
9. Can Egypt explain the reasons for raising MFN tariffs beyond bound tariffs? Does 
it plan to correct this s ituation?  
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound rate of which was wrongl y transposed and the appropriate procedures will be 
taken in the context of the Committee on Market Access.  
 
It should also be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law. Hence, in cases were  the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in preparing the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members set at the bound rate levels or below.  
 
Additional Questions:  
In order for trade to contribute to the economic and social development of countries, it is 
necessary that it is done legally in accordance with the law. However, not all exchanges have 
beneficial consequences. Fraud in international trade damages the rights of many groups in 
society, including consumers, intellectual property rights holders, taxpayers and the national 
industry, particularly the small and medium enterprises, thus negative ly affecting security, 
innovation and competition. Due to stricter local controls over the financial system, the criminal 
organizations have been increasingly using the international trade operations for illicit purposes to WT/TPR/M/367/Add.1  
 
- 46 - 
 
  launder their illegal income. Th e commerce connected to illicit activities could consequently have 
negative impact upon economic and social development.  
 
Colombia would like to know if Egypt has discovered cases of trade with illicit purposes 
occurring in its territory. What obstacles an d challenges has Egypt encountered in the 
fight against this type of trade? Does Egypt have learned lessons or recommendations 
that it wishes to share with the other members of the WTO?  
 
Reply:  
I. The ECA has established a unit for combating money launderi ng at its headquarters. It has 
commenced on combating illicit financial flows through reviewing / double checking the declared 
values, which indicated over valuation of invoices. Upon investigation it was discovered that there 
were money laundry cases. One  of the solutions to overcome such a problem was the decree of 
the Central Bank of Egypt that any money is to be sent through the Egyptian banks. Currently an 
electronic form is exchanged between the Central Bank of Egypt/ banking sector and the ECA 
regard ing any foreign currency exchanged.  
 
In addition, a unit for combating IPR infringement has been established in the ECA. In cases on 
IPR infringement the measures of the Executive Regulations 770/2005 are to be implemented in 
collaboration with the Ministr y of Trade & Industry.  
 
II. Cash operations: enhancing control measures over the airports and ports, especially the 
traditional forms of smuggling cash with passengers or through concealing them in goods. For 
example, sharp blades in the form of cards wer e smuggled among clothes in passenger luggage as 
well as medical supplies and an aesthesia instruments.  
 
III. To reinforce precautionary measures, ECA is implementing a roll out plan for x -ray scanning 
equipment all over the customs offices. Further, enhan cing the capacity of our customs officials 
was a complementary step.  
 
IV. One of the lessons that we learned was the mutual cooperation with the other border control 
agencies is a MUST, as well as the importance of sharing and analyzing  all data to evaluate risks 
associated with consignments.  WT/TPR/M/367/Add.1  
 
- 47 - 
 
  CHILE  
Replies to  questions from  Chile  
 
Report: WT/TPR/S/367 -Egypt (Secretariat report)  
3.1.5.3 Safeguards:  
Paragraph 3.92, Page 75  
"Since its last trade policy review prepared in 2005, Egypt has initiated 14 safeguards 
investigations. It has imposed provisional measures in all cases and definitive measures in relation 
to three products: blankets, steel reinforcement bars and cotton and mixed yarns (Table 3.19). 
Although few definitive measures wer e taken, the application of provisional measures could be an 
obstacle to trade."  
 
Question 1 : Bearing in mind paragraph 3.94 regarding the initiation of 14 safeguards 
investigations - imposing provisional measures on all of them, but not on all final measures - Chile 
would be grateful if Egypt indicates whether it has considered revising its legislation related to the 
imposition of provisional measures so that they are not imposed in all investigations initiated by 
Egypt, considering the negative impac t on trade generated by these measures?  
 
Reply:  
Safeguard measures are purely technical aspects and are conducted according to WTO's referred 
relevant rules. Any decision taken by Egypt in any Safeguard investigation is taken in light of its 
rights and obl igations and in compliance with the procedures stated in the World Trade 
Organization Agreements (Article XIX on Safeguard).  
 
Egypt doesn't impose provisional measurers on regular bases, but only in critical circumstances 
where delay would cause damage, wh ich would be difficult to repair . The purpose of imposing such 
measures is to protect the domestic industry from the significant increase in imports according to 
article (6) of The Safeguard Agreement '  In critical circumstances where delay would cause 
damage, which it would be difficult to repair, a Member may take a provisional safeguard measure 
pursuant to a preliminary determination that there is clear evidence that increased imports have 
caused or are threatening to cause serious injury…..' .The invest igating Authority terminates the 
investigation if it concludes  that there is no sufficient evidence for the casualty between the 
imports and the serious injury suffered by the domestic industry.  
 
2.4 Investment Strategy:  
Paragraph 2.55, Page 40  
"In accordance with the Investment Law, investors may import raw materials, supplies necessary 
for the production, machinery, equipment, spare parts and transportation means which are 
appropriate for the nature of their projects and are necessary for its estab lishment, expansion, 
operation or export without having to register in the Registry of Exporters and Importers".  
 
Question 2 : Regarding the ability of investors to import raw materials, supplies and equipment 
used in the production without the need to regi ster with the Registry of Exporters and Importers, 
Chile would be grateful if Egypt indicates whether there are general restrictions or prohibitions on 
importation by investors of certain inputs, or if the only limit is that they are appropriate to the 
nature of the project and are necessary for its establishment, expansion, operation or export?  
 
Reply:  
There are no restrictions or prohibitions on importation by investors of certain inputs in the 
Investment Law No.72/2017 according to Article No.7as follows:  
 
" Without prejudice to the provisions of the laws, regulations, and decrees regulating the 
importation, the Investment Projects subject to the provisions of this Law shall have the right to 
import, whether directly or through third parties, the raw materia ls, production supplies, 
machinery, spare parts, and transportation that suit the nature of their activity, which are required 
for the establishment, expansion, or operation thereof, without the need to be registered in the 
Register of Importers.  
 
Further , these Projects shall have the right to export their products, directly or through an 
intermediary, without a license and without the need to be registered in the Register of Exporters."  WT/TPR/M/367/Add.1  
 
- 48 - 
 
  Also, "The companies and establishments; for companies are regulate d by this law; shall be 
subject to a unified customs tax bracket in the amount of (2%) of the value of all the imported 
machinery, equipment, and devices required for the set -up of such companies. (Article No. 10)  
 
There is unified customs tax bracket shal l also apply (2%) of the value of all the imported 
machinery, equipment, and devices imported by the companies and establishments operating in 
the public utility projects which are required for the set up or completion of such companies". 
(Article No. 10)  
 
Paragraph 2.62, Page 41:  
"Law No. 83/2002 on Special Economic Zones provides for the establishment of special zones for 
export -oriented activities. The Law allows companies established in these zones to import capital 
goods, raw materials and intermediate  goods free of customs duties. Also, companies working 
there are subject to lower corporate taxes, are exempt from indirect taxes and sales tax and 
operate according to a more flexible labo ur regulation. The special economic zones and the 
authorities that manage them are established by presidential decree. Currently there are 
two special economic zones: in the northwest of the Gulf of Suez and in the Golden Triangle."  
 
Question 3 : With regard to Law No. 83/2002 on Special Economic Zones, allowing companies to 
operate with a more flexible labo ur regulation, Chile would be grateful if Egypt indicates in detail 
what the aforementioned labo ur flexibility consists of and its impact upon the labo ur rights of the 
workers working in these companies?  
 
Reply:  
Yes all projects established under the umbrella of Law No. 83 of 2002 and its amendments enjoy 
the privileges and tax and customs incentives of the economic zones of a special nature in 
accordance with Article 41 and 42 of Law No. 83 of 2002 and its amendments: - 
 
Article (41): The provisions of the sales, stamp tax laws, and the fees for the development of the 
State's resources shall not apply to the region, nor any other type of fees or direct or indirect 
taxes shall be imposed upon it.  
 
Article (42) exempts from customs taxes, sales tax and all kinds of taxes and other fees, 
equipment, machinery, equipment, raw materials, equipment, spare parts and any other materials 
or components imported by the Authority companies or establishments or branches operating in 
the region from abroad, when necessary to carry out the activity Licensed within the region.  
 
Vehicles and vehicles of all kinds shall be exempted from taxes and duties when they are intended 
for a commodity or service production activity in accordance with th e criteria issued by a decision 
of the Board of Directors of the Authority. However, the products of the former authorities are 
subject to customs tax, tax and all other taxes and duties on the imported components alone, 
when the products are released for entry into the local market.  
 
− There are advantages to the law in the case of labor -intensive projects, and Law 83 of 2002 
dealt with the rights of workers in detail, which is one of the best laws governing the rights of 
workers as follows (Article 28 to Article 36):  
 
 The provisions of the Labor Law shall apply to the labor relations in the region, in the 
absence of a special provision in this law. The provisions of the Labor Law in the rights 
guaranteed to workers are a minimum of what may be agreed upon in individual and 
collective labor contracts.  
 The term of employment shall be terminated by the expiry of its term. If the parties 
continue to execute the contract after the expiry of its term, this shall be regarded as a 
renewal of the contract for a peri od similar to the first term, unless the parties agree 
otherwise.  
 The parties to the employment contract may terminate it before the expiry of its term, if 
the fixed period, or at any time if it is not fixed, in accordance with the following rules:  
 (A) If the termination is by the worker and the fixed term contract, the worker shall notify 
the employer of his desire to terminate sixty days before the date specified for 
termination. If the contract is not fixed, the period shall be 90 days, unless the employ er 
agrees to a shorter period.  WT/TPR/M/367/Add.1  
 
- 49 - 
 
   (B) If the termination is by the employer and the contract is fixed -term, the employer 
undertakes to notify the worker of his desire to terminate it sixty days before the date 
specified for termination. If the contract is not  fixed, the period shall be 90 days, to pay 
the full wage of the worker for any of the two periods referred to, as the case may be, 
without prejudice to the rights of the other worker.  
 The rules of procedure for the work of any entity engaged in activity i n the region, after 
being approved by the competent department of the Authority, shall be complementary to 
the individual or collective labor contracts, and that administration may object to the 
provisions contained in the regulations contrary to the gener al regulations.  
 In cases where the employer decides to terminate the employment contract without error 
on the part of the worker, the worker is entitled to compensation for termination of his 
service and this compensation shall be determined in the employm ent contract provided 
that such compensation is not less than that provided for in the Labor Law without 
prejudice to the worker's right to Other rights.  
 The employer shall submit to the competent department of the Authority a statement of 
his employees an d a periodic report on the working relations in his company on the form 
approved by the Chairman of the Board of Directors of the Authority in accordance with 
the rules and procedures and on the dates issued by a decision of the Council . 
 The Board of Direc tors of the Authority issued the rules for obtaining work permits for 
foreigners in the region, taking into account the percentage of foreign workers to the 
Egyptians stipulated in the laws governing it, unless a reasoned decision is issued by the 
Board of  Directors of the Authority to amend this percentage for a company, required 
locally . 
 The Authority issues foreign work permits after obtaining the approval of the competent 
security authorities . 
 The Board of Directors of the Authority may establish a spec ial social insurance system 
with no less benefit than that prescribed in social insurance legislation. Until such a system 
is issued, the social insurance regulations in force shall apply . 
 The provisions of the previous articles concerning labor and social  insurance shall apply to 
all workers within the region.  
 
Paragraph 2.65, Page 42:  
"Egypt ranks 122 out of a total of 190 economies in the World Bank's 2017 business readiness 
index, up from 165 out of a total of 175 countries in 2007. Despite that conside rable improvement, 
conditions for investment continue to present numerous difficulties. In particular, it is considered 
that Egypt has hindered cross -border trade by making the process of obtaining documents more 
complex and by imposing a limit on deposits  and withdrawal of funds in foreign exchange for 
imports. "  
 
Question 4 : In relation to what is indicated in paragraph 2.65, in the sense that Egypt has 
hindered cross -border trade by imposing, among others, a limit on deposits and withdrawal of 
funds in foreign currency for imports - Chile would be grateful if Egypt indicates the reforms made 
to the investment strategy and the measures that would correct this situation?  
 
Reply:  
The Investment Law No.72/2017 provides incentives and guarantees for the cross – border trade 
in accordance with the laws and regulations of the importation and Central Bank of Egypt.  
 
Kindly note that the Central Bank cancelled the stated limits gradually starting from March 2016 
until November 2017.  
 
4.4.2 Telecommunications Servic es: 
Paragraph 4.124, Page 148:  
"Telecom Egypt (whose 80% of its capital belongs to the state while the remaining 20% trades on 
the Egyptian Stock Exchange since 2005) remains the monopoly operator of fixed line services. 
However, Telecom Egypt lost exclusivity in certain segments in 2009, such as the provision of 
fixed services in closed residential complexes, for which the National Telecommunications 
Regulatory Authority granted a triple license to two operators, who are currently able to offer fixe d 
services and data and added value services to the end users of these complexes. In addition, in 
October 2016, the three mobile telephone companies were authorized to operate fixed line service.  
 WT/TPR/M/367/Add.1  
 
- 50 - 
 
  Question 5 : Regarding the monopolistic position of Telecom Egypt Company in the fixed line 
services sector, and the loss of some segments that has affected this company since 2009, Chile 
would be grateful if Egypt states the percentage of subscribers and the size of the fixed telephony 
market.  
 
Reply:  
The size of the Fixed market is 6.67 Million Subs.  
 
Paragraph 4.135, Page 151:  
"Regulation and licensing provide that operators authorized to provide mobile and fixed phone 
services are required to offer number portability. The termination of international calls is ba sed on 
a revenue sharing model between the owner of the international gateway and the operator, which 
performs the termination of the international call to its end user."  
 
Question 6 : In relation to regulations and licenses, which provide that operators au thorized to 
provide mobile and fixed phone services have the obligation to offer number portability, Chile 
would be grateful if Egypt gives more information about its number portability system, specially 
with respect to whether the number can be maintained  between companies or also between mobile 
and fixed devices.  
 
Reply:  
In Egypt we have mobile number portability and fixed number portability because there is 
difference in the numbering ranges assigned for fixed and mobile.  
 
4.4.3 Postal and Courier Services:  
4.4.3.1 Postal Services:  
Paragraph 4.143, Page 152:  
"The operator itself guarantees the application of the monopoly. However, you can entrust to third 
parties the provision of certain services on your behalf through stipulation of contracts pursu ant to 
applicable laws and regulations."  
 
Question 7 : With regard to what is stated in paragraph 4.143, Chile would be grateful if Egypt 
indicates whether there is any kind of technical or nationality requirement for those third parties 
who provide services to the monopolistic operator?  
 
Reply:  
Kindly note that EP does not impose any technical or nationality requirements for third parties who 
provide the services on behalf of EP. There are some regulatory requirements only as per 
contracts.  
 
4.4.4 Tr ansportation Services:  
4.4.4.1 Air Transport Services:  
Paragraph 4.155, Page 155:  
"In order to promote the use of airports that operate below their full capacity, an incentive scheme 
was put into action consisting of granting discounts on airport charges for flights to any tourist 
destination made by non -scheduled companies and low cost. The plan was operative between 
November 1, 2016 and October 31, 2017, and may be extended."  
 
Question 8 : Regarding the incentive plan mentioned in paragraph 4.155, Chile w ould be grateful 
if Egypt indicates the impact that this measure had and also indicates how many airlines have 
used this incentive and how many flights have been made, with the objective of assessing if there 
was an increase or decrease in flights?  
 
Reply:  
The number of airlines is 60 charter airlines.  
These incentives lead to encourage the airline to apply for long term tour operators and not for the 
current operating season only, which has attracted the turnout of foreign countries specially from 
Ukraine , and the Ukrainian market has become one of the best countries exporting tourism to 
airports tourist attraction in Egypt.  
 
 
 WT/TPR/M/367/Add.1  
 
- 51 - 
 
  Paragraph 4.158, Page 155 -156: 
"In practice, the Egyptian ancillary services (repair and maintenance of aircraft, computer 
reserv ation services, and sale and marketing) are quite liberal, even though Egypt has not made 
any commitment under the GAT in this area. National aircraft may undergo maintenance and 
repair operations in national or foreign facilities, provided that they have been authorized by the 
ECA (ECA Standards No. 43 and 145). The establishment in Egypt of foreign suppliers of 
maintenance, repair and overhaul services is only allowed for online maintenance and repair of 
defects, and on the basis of reciprocity."  
 
Questio n 9: Regarding the establishment in Egypt of foreign suppliers of maintenance and repair 
services mentioned in paragraph 4.158, Chile would be grateful if Egypt indicates the number of 
foreign suppliers who are currently providing ancillary services, as we ll as about any another index 
that may allow to estimate the impact (number of airports where they operate, amounts invested, 
etc.)?  
 
Reply:  
Four airlines are allowed to line maintenance and repair in Cairo airport according to the basis of 
reciprocity.  
 
3.1.4 Import Prohibitions and Restrictions, and Import Licenses:  
Paragraph 3.77  
 
Question 10 : Regarding paragraph 3.77 and in relation to the Notification of Egypt to the WTO 
(G/TBT/N/EGY/114, February 2016), Chile would be grateful if Egypt gives more detailed 
information on how the registration system works for foreign companies supplying the products 
indicated in the above notification and what are the criteria used to assess compliance with the 
requirements, certifications or tests and, therefore, ac cept or reject the registration. With regard 
to this last aspect, Chile would be grateful if Egypt provides information on whether there is public 
information on the number of applicants and the number of rejections that have been made?  
 
Reply:  
The list of  companies is made available at GOEIC's database for reference by economic operators. 
It is worth mentioning that there are no rejections in the registration process provided that the 
applicant has submitted the required set of documents and it has been ve rified. Delays in the 
registration process may occur due to incomplete documents and verification of the documents.  
 
Question 11 : Chile would appreciate if Egypt gives specific information on the criteria used to 
define the list of products subject to this  measure, as well as the criteria used to discriminate the 
application of this measure, and allow some products of one species and reject others. (The 
notification of measure G / TBT / N / EGY / 114, based on the objective of 'Guaranteeing quality, 
avoidin g deceptive practices and ensuring the health and safety of people', is only contemplated in 
the HS family 08, dry fruit, and not other foods)?  
 
Reply:  
As explained there are no rejections for the registration of any company or manufacturing plant 
provide it provides the complete set of documents as stipulated in the provisions of the Ministerial 
Decree . The main purpose of the decree is to ensure that the entities exporting to Egypt maintain 
a quality control system to confirm that the products specified in the Decree and that are used by 
natural persons are the outcome of a quality controlled production process. Despite the fact, that 
the imports of such products represent only a minimal share in total Egyptian imports, it has been 
found out that the Egyp tian market has been invaded by such products that are the outcome of 
illegal manufacturing practices. This has had a negative impact on the health and safety of 
consumers and subject ed them to deceptive practices.  
 
Paragraph 3.139  
 
Question 12 : Chile would appreciate if Egypt has any transparency mechanism, so that 
consumers, producers or interested persons from other countries, have access to comments or to 
get information related to new national regulations related to this type of measures?  
 
 
 WT/TPR/M/367/Add.1  
 
- 52 - 
 
  Reply:  
To ensure transparency to any national regulation, trade related measures and regulations are 
duly published in the official gazette , on the websites of the different authorities as well as notified 
in the WTO relevant committees.  
 
Paragraph 3.140  
 
Quest ion 13 : Chile would appreciate if Egypt provides information on how the inspection and 
testing processes operate on products from countries with which Egypt does not have a Mutual 
Recognition Agreement?  
 
Reply:  
If Egypt does not have MRAs with a country, the inspection and testing shall be carried out in 
accordance with the mandatory Egyptian standards which have been issued for these products.  
 
Paragraph 3.148  
 
Question 14 : Chile would appreciate if Egypt provides information on how registration in the 
Industrial Registry operates?  
 
Reply:  
The Ministry of Trade and Industry - represented in Industrial Development Authority (IDA) - 
allows the Registration of projects in the Industrial Registry to start their activities of production, 
distribution, importing  and exporting of products. Registration in Industrial Register procedures, as 
follow:  
1. The investor has to apply for the registration and attaches the Required Documents at IDA 
single window services.  
2. The service costs shall be paid.  
3. The application shall be transferred to the Industrial Registry Department in IDA to be 
reviewed.  
4. A Temporary Industrial Register certificate shall be issued for a period of one year and 
delivered to the customer.  
5. The file is then transferred to the relevant Technical Departmen t in IDA, as a technical 
inspection for the factory shall take place.  
6. The Technical Inspection report is submitted to the Industrial Registry Department in IDA 
and a Permanent Industrial Registry is delivered to the client.  
 
Required Documents:  
 
- Filling ou t services form "1IR".  
- Commercial Registration valid for five years.  
- Recent Certificate from Federation of Egyptian Industries.  
- Insurance Form No.S2 or Insurance Certificate.  
- An Official Proxy valid for five years or bank authorization valid for six months.  
- Environmental approval of the project.  
- Land tenure Document.  
- Copy of the personnel Identification card.  
 
Paragraph 3.167  
 
Question 15 : Chile would appreciate if Egypt provi des information on how the pest risk 
assessment process operates and how long does it take for the CAPQ to establish that a zone in 
another country is free of the pests under study or not?  
 
Reply:  
With reference to the risk assessment process it is conducted in accordance to the international 
Standards for Phytosanitary measures.  
The Central Administration of Plant Quarantine (CAPQ) manages the information required to 
perform risk analysis and eval uate a pathway with the importing country.  
The Central Administration of Plant Quarantine (CAPQ) follows the international standards related 
to the pest risk assessment as follows:  WT/TPR/M/367/Add.1  
 
- 53 - 
 
  1- Requesting the other country for a technical file for all the information r elated to the plant 
health about this zone (pests, crops, control methods, agricultural practices.  
2- Collecting any other necessary information needed for PRA throughout all the different related 
sites and organizations (APPO, CAPI,…..e tc). 
3- Starting PRA pro cess according to the international standard of IPPC and SPS (ISPM's: 2, 11. 
14 & 21 of IPPC as well as SPS articles).  
4- According to the results of this study we can determine if this zone is free of the pest or has 
this pest with certain risk level.  
5- Accord ing to the risk level, CAPQ decides which plant health measures should be taken into 
consideration during the pest risk management phase.  
6- International standards to establish pest free area according to IPPC and SPS are also taken 
into consideration.  
 
This process might take about one week provided the availability of the required data.  WT/TPR/M/367/Add.1  
 
- 54 - 
 
  CHIN A 
Replies to questions from China  
Part I. Questions based on Report by the Secretariat (WT/TPR/S/367)  
Summary, Para 15  
"Additionally, the importation of a relatively large number of items is subject to 'special conditions' 
and requires a license, including passenger cars; shoes; apparel; home textiles; carpets; car 
parts; household appliances; eyeglasses and watches; petroleum products; milk and milk 
products; oils and  fats; pasta; and soaps. The importation of certain products is subject to specific 
administrative formalities and requires government approval; such is the case for wheat grains, 
corn used for the feed industry, and soya bean seeds for oil extraction. Egy pt has not submitted 
any notifications to the WTO with respect to its import licensing regime."  
 
Question 1: What are the contents of the above -mentioned "special conditions" applied in the 
process of importation?  
 
Reply:  
It is already stated in the secretariat report on pages 61,62,63 in Table 3.16 that contains the 
products in Annex 3 to Decree No. 770/2005 that can be imported under special conditions.  
 
Question 2: What are the specific procedures of the above -mentioned  specific administrative 
formalities, for importation of wheat grains, corn used for the feed industry, soya bean seeds for 
oil extraction or other government -approved products?  
 
Reply:  
Prime Minister Decree No. 2992/2016 Organizing Imports of Strategic Ag ricultural Commodities 
and Ministerial Decree No.24/2017 set out the import permit requirements for the strategic 
agricultural commodities wheat grains; corn used for the feed industry; and soya bean seeds. The 
importation of these commodities is prohibite d without an import permit from the General 
Organization for Export and Import control (GOEIC) however this does not apply to commodities 
imported by governmental bodies.  
 
GOEIC is the sole authority to inspect the consignments upon their arrival according  to the 
specified Egyptian standards and the other requirements set by Plant Quarantine. The importer 
may request that the goods be subject to pre -shipment inspection, in this case pre -shipment 
inspection should be carried out by one of the international s urveillance and inspection companies 
registered at the GOEIC. Yet, pre -shipment inspection does not preclude inspection at the port of 
entry.  
 
Page 12, Para 25  
Egypt's agricultural policy is primarily aimed at meeting the rising demand for food at reasonab le 
prices; to this end, Egypt has made more land available for crops where it has a relative 
comparative advantage such as fruits and vegetables, and has resorted to subsidies.  
 
Question 3:  In order to make more land available to plant crops with comparat ive advantages, 
what specific measures has Egypt taken?  
Reply:  
Egypt has taken the following measures:  
 - Treating of all pests and diseases attacking products in which Egypt has a comparative 
advantage such as potatoes and oranges.  
- Increasing the cultivated areas of these crops in the new lands through the one and 
half million feddans project.  
 
Page 34, Para 2.52  
"The new Investment Law and its regulations allow investments to be registered under the Law as 
enterprises (one person)  or as companies (more than one person) through modalities such as 
shareholder companies, joint -stock companies, limited liability companies, and partnerships…"  
 
Question 4: Does Egypt have any specific measures to accelerate licensing process of foreign 
invested enterprises and shorten the time of security review?  WT/TPR/M/367/Add.1  
 
- 55 - 
 
  Reply:  
The new law grants the non -Egyptian investors residence in the Arab Republic of Egypt throughout 
the Project's terms without prejudice to the provisions of the relevant regulating laws an d in the 
manner stipulated by the Implementing Regulations of this Law. (Article No. 3)  
 
Egypt has taken several measures to accelerate licensing process of both foreign & local 
investment as one of the main pillars of the investment law is facilitating th e investment 
procedures and this is reflected in many Articles of the law such as:  
 
Article (18):The procedures & terms provided for this law shall be applicable when the investment 
services are obtained without prejudice to the enforcement of any laws or  measures that allow the 
investor to obtain approvals, permits or licenses by more easier or streamlined procedures or 
within shorter times compared to the provisions of this law and its executive regulations.  
 
Article (19): Issuance of an investment guide  or manual include all conditions, measures and dates 
prescribed for the issuance of approvals, permits ,licenses and land allocations related to 
investment activities.  
 
Article (20): Golden License: Which grant the cabinet the right to grant one single ap proval for 
establishment, operation and management of the project, for strategic or national projects, PPP 
projects, in the areas of public utilities and infrastructure, new or renewable energy, roads, 
transportation and ports.  
 
Article (21): Investor serv ice Centre (One stop – shop) to be established in GAFI and shall be 
authorized to grant the company incorporation services, establishment of company branches and 
after establishment services like approval of general assemblies meetings and increase or decr ease 
of capitals, in additions to granting approvals, permissions, land allocations and any other service 
related to the investment projects by having representative of all relevant authorities.  
 
Article (24): The relevant authorities shall reply to the ap plicant for license, permits, approvals and 
any other investment related procedures within 60 days maximum from date of submitting this 
application, and in case the authority didn't reply with this 60 days, the CEO of GAFI shall issue an 
approval of his ap plication and the applicant shall be granted the licenses, permits or approvals he 
was seeking.  
 
Article (22): Accreditation offices: Where by the investor shall entrust accreditation offices 
(external firms) licensed by GAFI to examine the documents relat ed to the issuance of the 
approvals ,permits and licenses required to setup ,operate or expand the investment projects to 
ensure it meets the technical and financial requirements then the accreditation offices shall issue 
the investor a (certificate of acc reditation) valid for one year showing that the investor satisfied 
the conditions in accordance with the laws and regulations and this certificate shall be accepted by 
the competent authorities and their representative at the investors service center and s hall be 
granted his license or permit or approval within 10 days max from the date of submitting the 
certificate.  
 
Finally, GAFI established online services for the incorporation and after incorporation services, by 
which the investor can establish his com pany online within 24 hours only.  
 
While, concerning the security review it is national security issue to avoid the money laundry and 
funding of terrorism. However, we are trying via several meetings with the ministry of interior and 
National Security Agency representatives to minimize the timing required for the security check 
and we think that the process will be minimized.  
 
Question 5: Does Egypt have any plan to speed up in assisting foreign employees in foreign 
invested enterprises to attain long -term working visa?  
Reply:  
As we mentioned before, the new Investment Law No.72/2017 stated in Article (3), 
fourth  paragraph that the foreign investors shall be entitled for residency in Egypt during the 
whole period of the project.  
 WT/TPR/M/367/Add.1  
 
- 56 - 
 
  It is stated in Article (8) that the investment project shall have the right to appoint 10%of total 
number of employees and could be raised to 20% by an approval of the CEO of GAFI, while in 
some strategic project which are identified under a resolution issued by supreme council , can be 
granted an exception from the said percentage.  
 
While Article (4) of the executive regulation stated that the foreign investors shall has the right to 
have a residence in Egypt provided that:  
1- To be shareholder founder, or partner in an Egyptian co mpany.  
2- That the term of residency shall not be less than one year and not more than the term of 
the project.  
 
Therefore, we believe that there are no problems in the working visas for the foreign employees 
and it does not take so much time in general cases . 
Question 6: Does Egypt have any plan to improve the supporting infrastructure for foreign 
investment?  
Reply:  
New Administrative capital over 270,000 Feddans.  
- Industrial zones (as Rubaiky leather city & Furniture city in Damietta).  
- Electricity projects ma de the total capacity of electricity production to be 27 Gegawatts.  
- National project for Roads:  
i) More than 7000 Kms Roads.  
ii) Development of railway and trains.  
- 3 New airports.  
- New cities( New Alameen , Galala City , New Ismailia )  
- Telecom: Launching 4G services and having more than 4 new telecommunication hubs.  
- Special economic zone in Suez Canal Corridor.  
- Development of port said new sea port.  
 
Page 36, Table 2.5  
"The investor may deduct from income tax expenses up to 10% of his annual profits to create  a 
social development system outside of the investment project in one of the following fields: 
(a) enhancing environmental protection; (b) providing healthcare, social care or cultural 
programmes or services; (c) supporting research, technical education an d production 
improvement, in agreement with universities or research institutes; (d) training and scientific 
research."  
 
Question 7: Does Egypt evaluate the implementation effects of applying the deducting income tax 
to environmental protection? If it does , please provide the report of evaluation.  
Reply:  
Yes, Egypt evaluated the effects of deducting tax income to environmental protection as we added 
such article to the law according to the request of ministry of environment.  
 
Question 8: Do the fields attra cting investment include China Medicine related services? Does 
investment for Chinese Medicine related services enjoy the above -mentioned tax reduction?  
 
Reply:  
N/A. 
 
Page 59, Para 3.67  
"Egypt has not submitted any notifications with respect to its import licensing regime to the WTO. 
The authorities indicated that import prohibitions and restrictions are maintained for economic, 
environmental, health, religious, safety, sanitary, and phytosanitary reasons."  
 
Question 9: Could Egypt please specify the import  prohibitions and restrictions aiming at 
environmental protection? Does Egypt evaluate the implementation effects of such measures? If it 
does, please provide the report of evaluation.  
 WT/TPR/M/367/Add.1  
 
- 57 - 
 
  Reply:  
Import prohibitions and restrictions for environmental reasons are set in accordance with Egypt's 
commitments in the context of the multilateral Environmental Agreements (MEAs),  in particul ar, 
the chemicals Conventions ( Basel – Montreal protocol – Stockholm). To this end, Egypt has taken 
the following measures:  
 
- Regulating the importation of certain chemicals listed in the Montreal Protocol on Substances that 
Deplete the Ozone Layer for the Environmental purposes as per Annexes 2 and 3 of Ministerial 
Decree No.770/2005 issuing the Executive regulation to implement th e Import and Export Law no. 
118/1975. It should be noted that Egyptian Companies have already transferred to 
environmentally friendly alternatives. Currently, Egypt regulates the importation of HCFCs in order 
to phase out the usage and import them in the y ear of 2030.  
 
- Banning harmful pesticides and chemicals that are listed in the Stockholm convention on 
Persistent Organic Pollutants (POPs) as per Annex1 of Ministerial Decree No.770/2005. Currently, 
Egypt is conducting inventory studies for the 16 POPs w hich are listed in the annexes of the 
convention as industrial chemicals to encourage the industrial companies to transfer gradually to 
use the best alternatives for the Environmental purposes.  
 
- Requiring authorization from the Industrial Development Aut hority (IDA) for the circulation of 
substances and wastes included in the Basel Convention on the Control of Transboundary 
Movements of Hazardous Wastes and their Disposal,. Currently, a review and update of these lists 
is being conducted to Egypt's compli ance with its commitments in the context of chemical 
environmental conventions.  
 
Page 71, Para 3.99  
"3.99. Pursuant to Article 7 of Law No. 118/1975, the exportation of certain commodities can be 
prohibited or restricted through Ministerial Decree to meet local demand and for environmental 
purposes."  
 
Question 10: Could Egypt please specify the export prohibitions and restrictions aiming at 
environmental protection? Does Egypt evaluate the implementation effects of such measures? If it 
does, please provide the report of evaluation.  
 
Reply:  
Egypt introduces export suspension or restrictions in accordance with provisions of Article XI or 
Article XX of GATT 1994. In the case of rice, export suspension has been introduced to prevent the 
shortage of foodstuff in addition to rationalize on the use of water given the scarcity of water 
resources that Egypt is currently facing.  
 
Page 74, Para 5.3  
... "The ECGE underwrites political and commercial risks by offering export credit guarantees 
covering up to 90% of the los s incurred"...  
 
Question 11: Please further explain export credit services based on political and commercial risks. 
Which kind of specific services or products are included?  
 
Reply:  
According to ECGE policy of covering Exporters against non -payment of buye rs and their countries 
through Credit Insurance:  
 
Political Risks cover includes:  
Cancellation of Import License, Prevention of the passage of goods, Capturing the shipped goods, 
Insolvency of Public buyers, Prevention of the authorities of payment of the debt, Non -transfer 
risk, Military acts.  
 
Commercial Risks cover includes:  
Bankruptcy of the buyer, Non -payment on due date, Refusal or abstention of the buyer to receive 
the documents  
 
- We cover all non -oil Egyptian exports short term.  WT/TPR/M/367/Add.1  
 
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  - Long-term exports are  studied on a case -by-case basis and include Construction and 
Electric Cables exports.  
- We provide Export Credit Insurance, Export Factoring, Debt Recovery, Buyer's Credit 
reports to export industries and services without supporting policies concerning pric ing or 
coverage.  
 
Question 12: Which specific exporting industries are included? Are there any key industries that 
will be granted with supporting policies?  
 
Reply:  
- Engineering products, construction, machines and equipment.  
- Non-oil Egyptian exports.  
- Construction.  
- Electric Cables exports.  
 
Page 78, Para 3.130.  
"The MSME is mandated to put in place a roadmap to encourage investment in SMEs and help 
smaller companies expand their exports. The Agency also aims at promoting the implementation of 
more SME -friendly land and licensing procedures."  
 
Question 13: Please elaborate more on SME -friendly land and licensing procedures  
 
Reply:  
In the context of implementing the Ministry of Trade and Industry (MTI) strategy (2016 -2020) IDA 
has taken several procedures to s upport Micro, Small and Medium industrial enterprises:  
- IDA targets to create Industrial Clusters as a developmental solution to enhance industrial 
integration between large scale factories from one side and MSME's on the other side. The 
project outcomes shall be manifested in 22 integrated industrial clusters until 2020.  
- The IDA has taken the initiative of establishing licensed Plug & Play factories as banks shall 
provide low -interest financing. The first phase of the initiative was implemented in four 
industrial zones.  
- According to law 15/2017 of "Simplification of Industrial Licensing Procedures "in article 
No.33 the MSME's will be pay only 50% of the determined fees for issuing licenses from 
IDA. 
- Furthermore, the establishment of Integrated Service Cent ers (ISCs) by the Micro, Small and 
Medium Enterprises Development Agency (MSMEDA) for small enterprises in all the 
governorates of Egypt reflects the enormous attention given by the State to streamlining 
enterprise licensing procedures. There are indeed th irty-three (33) ISCs (One stop Shop) for 
small enterprises created by MSMEDA in all governorates. Each ISC comprises a Service Unit 
that works in coordination with the competent authorities, respectively in charge of issuing tax 
cards, commercial registrat ion, commercial permit (CAP), enterprise ID number, and 
necessary approvals to set up a business and provide speci al loans for small enterprises.  
 
- The Integrated Service Center also hosts a representative from the Industrial Development 
Agency, responsible  for land allocation, and helps customers fulfill the requirements for: 
(i) issuing business operating license; (ii) getting all necessary approvals form concerned 
agencies and entities; (iii) and issuing a 30 -day temporary license, provided that within th is 
period the final license would have been issued, to evidence of enterprise integration into the 
formal sector.  
 
Page 90, Para 3.190  
"Established the imposition of a fine on persons refraining from providing the ECA with data and 
documents on specific ta rget dates; the fine is doubled in cases where false information is 
provided."  
 
Page 92, Para 3.193  
"Failure to notify mergers and acquisitions to the ECA or to submit the required data or documents 
or refraining to cooperate with the ECA's officers: a fin e of between LE 20,000 and LE 500,000."  
 WT/TPR/M/367/Add.1  
 
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  Question 14: How does Egyptian Competition Authority determine "failure to submit the required 
data or documents" or "providing false information"? Is there any clause in the Egyptian 
Competition Law prescribing suc h standards and investigation procedures? Please elaborate upon 
these questions.  
 
Reply:  
It is worth mentioning that ECA, according to the Egyptian Competition Law, has the right to ask 
for any kind of data or information to serve the following purposes;  
- To set up a comprehensive database relating to the economic activities, regularly updating 
and developing it to serve ECA in all aspects.  
- To conduct necessary studies and searches to detect any anti -competitive practices.  
Therefore, in order to providing E CA with the adequate information necessary to attain its 
aforementioned goals, ECL has incriminated certain acts to ensure the cooperation of all the 
market players with ECA, some of them, namely, are as the following;  
 
- Refraining from providing information: where a person refuses to provide ECA with any 
information or data required by ECA.  
- Providing false information: where a person provides ECA with  false document or data 
with the intention to mislead ECA. Such falsification can be detected as ECA bases its 
research and investigations on several resources (Local and International sources, 
Governmental and Private sources) to prove or disprove a certai n violation or the 
existence of a dominant position. So, when there is a significant difference in data, 
ECA will question the data acquired from the person, and depending on the case and 
the circumstances, the level of collaboration carried out by that pe rson with ECA, 
whether that person is the suspected violator, ECA might refer that person directly to 
the prosecutor for providing ECA with falsified documents with the intention to mislead 
ECA. Otherwise, in case such intention was not proven, ECA might g ive him a second 
chance to resend the Data before referring the Person to the Prosecutor.  
 
Page106, Para 4.9  
"The State intervenes in order to meet the targets described above. The State purchases crops 
such as wheat from farmers through the General Autho rity for Supply of Commodities (GASC), in 
addition to importing basic foodstuffs to form the country's strategic food stocks of the main 
commodities (wheat, flour, sugar, and edible oil)…The State has the obligation to buy at 
guaranteed prices if the farme r chooses that option, but there is no obligation for the farmer to sell 
to the State."  
 
Question 15: Please provide the guaranteed prices of the last five years at which GASC purchase 
crops from farmers and the current market prices of the last five years , as well as the conditions 
upon which GASC has to purchase crops from farmers at such guaranteed prices.  
 
Reply:  
The prices declared by the government for the marketing of wheat is determined based on the cost 
of production per feddan in addition to the cost of transport and storage without referencing 
international prices. In fact the price declared by the government might be higher than the 
international prices for wheat or below them as has been the case for the years 2007,  2008,  2009, 
2012, 2014 shown  in table 4.8 of the secretariat report . It was also below international prices in 
2017.  
 
GASC buys local wheat from the farmers according to the following conditions:  
- The supplied wheat is from the latest crop not that of previous years.  
- The wheat is fr ee of pests, sand and stones.  
- The wheat meets the requirements of the relevant Egyptian standards.  
 
Question 16: Please provide the respective shares of imported crops and domestic crops in the 
strategic food stocks of different commodities.  
 WT/TPR/M/367/Add.1  
 
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  Reply:  
Fiscal  year Quantity purchased by 
GASC from local farmers in 
million tons  Quantity of imports  
in million tons  
2012/13  3.72 3.375  
2013/14  3.7 5.460  
2014/15  3.724  5.165  
2015/16  5.345  4.444  
2016/17  4.91 5.850  
 
According to FAO statistics, Egypt remains the world's largest wheat importer. The overall cereal 
import requirements in the 2017/18 marketing year (July/June) are forecast at around 
22.1 million  tons, some 2  million tons more than in the previous year and 17  percent higher than 
the five -year average.  
Page 114, Para 4.43.  
"In recent years, foreign investment in the upstream oil sector has resumed and numerous 
exploration concessions have been granted."  
 
Question 17: What kinds of foreign enterprises are involved? What procedures are needed for 
foreign e nterprises to participate in?  
Reply:  
Many foreign enterprises are involved in the upstream oil sector such as Apache, BP, Shell, 
Eni…etc.  
 
For new foreign investors to participate in the upstream sector, they either go through "Bid 
Rounds" that are conduct ed periodically in exploration & exploitation based on Production Sharing 
Agreement (PSA) or through "Farm in" and "Farm out".  
 
Question 18: Are foreign enterprises only allowed to participate in upstream exploitation? Can 
they be involved in downstream re fining?  
Reply:  
Foreign investment is open for both upstream & downstream sectors. Many foreign enterprises are 
already participating in refining, transportation & distribution activities, and we are open to any 
new investment ideas.  
 
Page 115, Para 4.47 . 
"The 2016 "Sustainable Development Strategy: Egypt Vision 2030" identifies the state monopoly 
on exportation and importation of petroleum products as one of the handicaps of the present 
energy situation and argues in favo ur of allowing the private sector t o participate in these activities 
and to contribute to the achievement of the country's energy security."  
 
Question 19: Can foreign investors be involved? Or are these activities only open to domestic 
private enterprises in Egypt?  
 
Question 20: What are th e latest progresses?  
Reply for both 19 & 20:  
Currently no foreign investor is able to participate in exportation & importation of petroleum 
products, because the country is providing partial subsidies to most petroleum products which 
results in selling wit h prices lower than the international market price. But as we plan to remove 
subsidies gradually within the following few years, it is expected that foreign investor will be able 
to participate in importation & exportation with international market prices.  
Also, we established the Gas Regulator which allow the foreign investor to be part of the import & 
export process of natural gas, while planning to create Oil regulator in the following phase.  
 
Page 115, Para 4.48.  
Some petroleum products, namely liquefi ed petroleum gas (LPG), gasoline, kerosene, gas oil and 
fuel oil, benefit from Government subsidies.  WT/TPR/M/367/Add.1  
 
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  Question 21: What are the impacts to the markets when the country grants subsidies to these 
products?  
Reply:  
Partial subsidies are granted to most petroleu m products which impacted (lowered) the selling 
prices for the domestic market. This resulted in high consumption rates. But as we already 
removed part of these subsidies over the past 2 years, the consumption rates reduced as well. And 
as we plan to remov e all subsidies granted (gradually) in the following few years, the consumption 
rate is expected to reduce even more. Which will allow an increase in the quantities that are 
available for exportation.  
 
Part. Questions based on Report by Egypt (WT/TPR/G/367 ) 
Page 7, Para 3.17 -3.19 
"3.17. Following on from the over -arching aspects of the national investment policy, Egypt's 
National Entrepreneurship Policy seeks to provide mechanisms and modalities to 
encourage and capture global and local private investment, including investment that has 
not yet been capitalized, is not necessarily capital -intensive or may not be easily categorized using 
traditional business models. The primary function of Egypt's entrepreneurship policy, therefore, is 
to encourage all scales of value -adding business operations while preventing market failures from 
foreclosing innovation opportunities, employment -creation opportunities, the formalization of new 
or existing micro or small -scale economic activity or the expansion and scaling -up of existing small 
and me dium-sized enterprises.  
 
3.18. To implement this policy, different key institutions within the GoE have each put in place 
complementary programs to build a nested framework of supporting interventions for 
entrepreneurship, Micro, Sma ll and Medium Enterprises (MSMEs) and larger -scale or tra ditional 
industrial operations.  
 
3.19. At the horizontal level, the GoE established the MSME  Development Agency as a quasi -
governmental body, with a mandate to lead national MSME policymaking, to provide low -cost 
technical support, including capacity -building, sectoral guidance, financial assistance and access to 
soft credit, including to facilit ate access to more comprehensive business development services 
available in the private sector through more lenient payment terms. For larger -scale or traditional 
industrial operations, the Industrial Development Authority (IDA) provides specialized suppor t 
services and a single clearinghouse for all industry -related licensing procedures. All of these 
services through the MSME Development Agency and the IDA are accessible to firms legally 
established in Egypt irrespective of the national origin of sharehold ers or controlling interest."  
 
Question 22: What are favo urable policies and measures provided by the government of Egypt 
for micro, small and medium enterprises (MSMEs)?  
 
Reply:  
The MSMEs are viewed as the driving force of development in both developing and advanced 
countries. Egypt Government's interest in laying down a national programme for the development 
of MSMEs, underpinned by a business -enabling environment, and focused on the promotion of 
entrepreneurship, research and innovation culminated in Ap ril 2017 in Prime Minister Decree on 
the establishment of the MSME Development Agency as the competent authority responsible for 
enterprise development. MSMEDA mandate consists of: (i) formulating MSMEs development 
policies and strategic plans; (ii) establ ishing appropriate coordination mechanisms among relevant 
agencies and initiatives; (iii) devising necessary programmes to achieve the advancement of this 
Sector such as human resources capacity and skills development programmes, programmes for 
linking and  integrating enterprises to supply chains, and capacity building programmes for 
boosting marketing locally and internationally.  
 
MSMEDA is also entrusted with: (i) designing incentives systems for MSMEs and self -employment 
promotion; (ii) facilitating coll ective negotiations for the procurement of raw material from reliable 
sources and at reasonable prices; (iii) assisting with the preparation of market and feasibility 
studies and availing them to enterprises; (iv) accessing enterprises to start -up capital and to 
additional loans; (v) facilitating and streamlining license -issuance procedures to start activity; and 
(vi) creating a database for MSMEs.  
 WT/TPR/M/367/Add.1  
 
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  Page 8, Para 3.26.  
The pace of allocating industrial real estate for manufacturing purposes has also been rap idly 
accelerated since 2005, alongside the deployment of an Industrial Map system which facilitates 
investor's comprehension of the GoE's priority geographical zones under its spatial industrial 
policy, where investment and industrial incentives are more e nhanced so as to ensure a more 
inclusive economy in regions where greater investment is needed.  
 
Question 23: Please specify spatial industrial policy of Egypt.  
Reply:  
According to the Egyptian Ministry of Trade and Industry strategy the spatial dimension is highly 
taken into consideration in the development process, as the integrated trade and industrial policies 
are applied bearing in mind the developmental needs of Egyptian governorates to maximize the 
benefit of each governorate's potentials, and to imp rove the economic, social and environmental 
indicators of each governorate.  
 
An Industrial Investment Map ( www.invegypt.com ) has been launched by end of Oct 2017 includes 
4800 Preliminary  studies based on each governorate's economic, social, environmental and spatial 
potential.  
 
Question 24:  What is the relationship between spatial industrial policy and land utilization policy?  
Reply:  
The Egyptian Ministry o f Trade and Industry has taken several procedures to achieve 
comprehensive industrial development across Egypt governorates including:  
- The establishment of "Fund for Subsidizing, Establishment, Servicing and Development of 
industrial zones" to undertake th e process of completing industrial zones infrastructure in all 
over Egypt.  
- Private Sector Industrial Developers: MTI established a successful and balanced partnership 
with the private sector, allowing large companies to develop and manage industrial zones  
through international tenders to meet the challenge of scarcity of industrial land utilized and 
ready for industrial investment.  
-  For governorates requiring comprehensive development more incentives given to industrial 
investors in upper Egypt, Egyptian P rime Minister have issued a decree No.42 of 2017 
concerning free land allocation "Infrastructured" in upper Egypt governorates (Aswan – Luxor 
– New Valley – Assut –Sohag – Qena – Beni Suif - Menia) in order to encourage industrial 
investment in upper Egypt Governorates.  
 
Part III. Other Questions  
Egypt's anti -dumping measures and licensing of ceramic tableware have a relatively great impact 
on China's export. Egypt launched an investigation against China in August 2002, and began to 
impose high anti -dumping duty on ceramic tableware made in China. After the anti -dumping 
review in 2013, the duty rate was changed to 268%. The ruling measure of the sunset review by 
Egypt on ceramic tableware exported from China will expire in 2018, and we call on Egypt to stop 
imposing high anti -dumping duty.  
 
In addition, Egypt has imposed import licensing to 25 commodity categories including tableware 
from January 2016. It is known that until the second half of 2017, only 3 Chinese enterprises were 
able to export glass tableware through licensing, and only 3 Chinese enterprises could export 
ceramic tableware. Please explain whether this measure is in accordance with the WTO rules. Does 
Egypt intend to cancel such restrictive import licensing?  
 
Reply:  
Egypt d oes not consider that Decree no. 43/2016 is an import licensing procedure. It would be 
appreciated if China can provide a list of companies, which have applied for registration and have 
not been registered yet, in order to investigate the matter and take t he appropriate necessary 
measu res towards their registration.  
 
This measure is consistent with WTO provisions noting that the purpose of the Decree is to ensure 
that the entities exporting to Egypt maintain a quality control system to confirm that the prod ucts 
specified in the Decree and that are used by natural persons are the outcome of a quality 
controlled production process. Despite the fact, that the imports of such products represent only a WT/TPR/M/367/Add.1  
 
- 63 - 
 
  minimal share in total Egyptian imports, it has been found ou t that the Egyptian market has been 
invaded by products that are the outcome of illegal manufacturing practices. This has had a 
negative impact on the health and safety of consumers and subjected them to deceptive practices.  
However, the government of Egy pt is regularly reviewing and assessing its measures and 
regulations that affect imports and trade in general with the ultimate goal of enhancing the 
business environment and facilitating trade. Hence, any changes in these measures and 
regulations are duly  published.  
 
FOLLOW -UP QUESTIONS FROM TH E P. R. CHINA  
Part I. Questions based on Report by the Secretariat (WT/TPR/S/367)  
Summary, Para 3  
"In 2014, the Government began to implement a reform programme aimed at stimulating 
economic growth and improving the business environment. The first wave of reforms focused on 
rebalancing the macroeconomic situation, and included various fiscal, monetary and exchange rate 
policy measures: introduction of the value -added tax (VAT) at a rate of 13% in September 2016 
(incre ased to 14% as from July 2017); a shift in the exchange rate regime from a peg to the 
U.S. dollar to a full float of the Egyptian pound in November 2016; broadening of the tax base…"  
Question 1: Please elaborate more on the measures aimed at broadening the  tax base.  
Reply:  
Some the reforms that were introduced to broaden the tax base are:  
 
 Introduced modern VAT system  that brought most services into the tax net, reduced the list of 
exempted goods, unified the tax rate at 14%, and streamlined procedures.  
 Increased taxes on cigarettes and tobacco  4 times over past 5 years to bring effective tax 
rate close to international standards.  
 Effective implementation of long awaited property tax regime.  
 Introduced effective capital gain tax regime.  
 Better oversight and higher effective tax on firms operating in free zones  
 Working on introducing a new simplified tax regime for SMEs with the following features: lump 
sum tax for firms and individuals with annual turnover less than USD 60000, simplified and light 
tax procedures and accounting standards, and lower cost of compliance.  
Summary, Para 19  
"Egypt implements a number of incent ives programmes, which can be general or sector -specific. 
There are also regional support programmes, and programmes for MSMEs, which include 
facilitating access to credit at preferential conditions."  
Question 2: Is there any tax incentives program provide d by the government of Egypt to MSMEs? 
If there is, please specify.  
Reply:  
The Government is seeking (through MSMEDA) to promulgate a new law establishing standard 
definitions for small, medium and micro enterprises, and providing for tax incentives to enc ourage 
youth to become entrepreneurs.  
 
Summary, Para 30  
"Egypt has a liberal aviation policy with few restrictions. All domestic airlines are privately owned 
and foreign investment plays a large role in some of them. Except for two management contracts, 
airports remain publicly owned and managed and third -party handling is not allowed."  
 
Question 3: Please introduce the administrative system of Egypt's airports, including the approval 
system of airport construction and the operation and management mode, e tc. 
Question 4:  Please give a brief introduction to the allowance, subsidies which the government 
provides to the airports, and the related tax and charge policies.  
Page 73, Para 3.105  
"The Export Promotion Law No. 155/2002 established an Export Developmen t Fund with a view to 
increasing and diversifying exports of goods and services and raise their competitiveness."  
Question 5:  Please provide more details of the Export Promotion Law No. 155/2002.  WT/TPR/M/367/Add.1  
 
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  Reply:  
The Export Promotion Law No. 155 of 2002 stipulates that the Minister competent for Foreign 
Trade is responsible for issuing rules and measures that guarantee the increase of Egyptian 
exports, open new markets for them and increase their competitiveness in the global market.  
 
In order to achieve these goals , the law provides for the establishment of the Exports 
Development Fund under the Minister of Foreign Trade.  
 
II Other Questions:  
6. Are there access restrictions on foreign investment in civil aviation transport services, such as 
transpo rt aviation, general aviation, airport, air traffic control, aircraft maintenance, ground 
service, aviation fuel and computer reservation system? If there are, what are the measures? Is 
there any plan or timetable for further opening up?  
Reply:  
N/A. WT/TPR/M/367/Add.1  
 
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  UNITED STATES  
Replies to questions from the United States  
 
Questions based on the Secretariat's Report (WT/TPR/S/367)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.2 Rules of origin  
Page 46, paragraph 3.35: Accordin g to the Secretariat report, Egypt has not notified any rules of 
origin to the WTO. This is also confirmed in Section C of G/RO/W/171, where Egypt is listed as a 
Member who has not yet presented a notification under Article 5 of the Agreement on Rules of 
Origin. When does Egypt intend to submit its notification?  
 
Reply:  
As explained in the Secretariat's report Egypt does not have non -preferential rules of origin and 
Article 19 of the Customs Law defines origin as the country where the good is produced. On the 
submission of the notification under Article 5 of the Agreement on Rules of Origin, we are currently 
taking stock of all the trade related measures that have not been notified in order to prepare and 
submit the required notifications in the relevant WT O committee.  
 
3.1.3 Tariffs  
3.1.3.3 Bound tariffs  
Page 54, paragraph 3.52: The report notes that, in 2017, Egypt's tariffs exceeded the WTO bound 
rate for 46 tariff lines. Can Egypt identify the 46 tariff lines?  
 
Page 54, paragraph 3.52: The Secretariat r eport notes that in 2017, 46 tariff lines exceeded their 
bound rates. What is Egypt's plan to lower those tariff rates?  
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another as it has been dis covered that there is a need for rectification for a number of 
tariff lines the bound rate of which was wrongly transposed and the appropriate procedures will be 
taken in the context of the Committee on Market Access.  
 
It should also be noted that accordin g to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law. Hence, in cases were the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in preparing the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members set at the bound rate levels or below.  
 
3.1.3.4 Tariff exemptions and reductions  
Page 54, paragraph 3.53 and page 55, table 3: The Report mentions  various duty and tax 
concessions under different schemes such as duty drawback, temporary admission, duty -free 
warehouses, and concessional duties pursuant to Customs Law No. 95/2005, Customs Exemptions 
Law 186/1986, and Investment Law No. 72/17.  
 
 Could E gypt explain why it has not notified these subsidy programs? When will Egypt 
notify these subsidies, and what information will those notifications contain?  
 
Reply : 
We are studying all the procedures referred to and determining whether they fall within the 
framework of the agreement of Subsidy and countervailing Measures. If they require notifications, 
we will submit these notifications.  
 
Page 54, paragraph 3.56: According to the Report, under Article 6 of Presidential Decree No. 
184/2013, customs duties on intermediate goods may be reduced by 10% if the local content of 
the final product is less than 30%, and up to a 90% if the local content exceeds 60%.  
 
 Could Egypt explain this program in light of Article 3.1(b) of the SCM Agreement, which 
prohibits subsid ies contingent upon the use of domestic over imported goods?  
 When will Egypt submit notification of these subsidies, and what information will those 
subsidies contain?  WT/TPR/M/367/Add.1  
 
- 66 - 
 
  Reply:  
We are studying all the procedures referred to and determining whether they fall within the 
framework of the agreement of Subsidy and countervailing Measures. If they require notifications, 
we will submit these notifications.  
 
3.1.4 Import prohibitions, restrictions, and licensing  
Page 62, table 3.16: Goods imported with special condit ions in accordance with Annex 3 to Decree 
No. 770/2005. Table 3.16 in the Secretariat report states that for the importation of "intermediate 
products (natural leather, artificial leather, footwear parts, textiles and dyed and coloured yarns), 
except for i mports for private and personal use, clearance is conditioned upon the fulfilment of the 
control requirements set out in Ministerial Decree No. 770/2005 and its amendments (section 
3.4.2.3), after the payment of the relevant testing fees."  
 
 Could Egypt please provide the specific details of the control requirements applied to the 
importation of natural leather, artificial leather, footwear parts, textiles and dyed and 
coloured yarns?  
 
Reply:  
The specific requirements have been included in table 3.16 of t he Secretariat report. Furthermore, 
they have been notified to the WTO in document G/TBT/N/EGY/29/Rev.1 dated 12 February 2013.  
 
Page 64, paragraph 3.77: The United States notes that Decree No. 43 does not apply to domestic 
manufacturers. Could Egypt expla in how it will ensure Decree 43 does not discriminate against 
non-domestic manufacturers, consistent with the WTO Import Licensing Agreement?  
 
Reply:  
Egypt does not consider that Decree no. 43/2016 is an import licensing procedure. Egypt would 
like to stress its commitment and full compliance with the national treatment principle. Egyptian 
manufacturing plants and companies are subject to registration, surveillance and inspection 
requirements by numerous Egyptian regulatory authorities to ensure their c ompliance with the 
relevant regulations. Hence, achieving the same purpose of Ministerial Decree no. 43 that is to 
ensure that the entities exporting to Egypt maintain a quality control system to confirm that the 
products specified in the Decree and that a re used by natural persons are the outcome of a quality 
controlled production process.  
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Page 73, paragraph 3.105: Pursuant to Export Promotion Law No. 155/2002 , the Export 
Development Fund (EDF) assists exporters by, among other measures, reducing the financial 
burden on exporters to put them on an equal footing with competitors in international markets.  
 
 Could Egypt explain precisely what financial assistance the EDF provides and ident ify the 
specific programs currently in place for such assistance?  
 Will Egypt notify these subsidies in sufficient detail that satisfies the informational 
requirements of Article 25.3 of the SCM Agreement?  
 
Reply:  
We are studying all the procedures referred to and determining whether they fall within the 
framework of the agreement of Subsidy and countervailing Measures. If they require notifications, 
we will submit these notifications.  
 
3.2.5 Free zones and special economic zones  
Page 73, paragraph 3 .108: Exemptions from import tariffs, income tax and the VAT are among 
various incentives available to enterprises o perating in Egypt's free zones.  
 
Will Egypt submit notification of these subsidies? If so, what information will those notifications 
contain ? 
 WT/TPR/M/367/Add.1  
 
- 67 - 
 
  Reply:  
We are studying all the procedures referred to and determining whether they fall within the 
framework of the agreement of Subsidy and countervailing Measures. If they require notifications, 
we will submit these notifications.  
 
3.3 Measures Affect ing Production and Trade  
3.3.1 Incentives  
3.3.1.1 Industrial incentives  
Page 76, paragraph 3.120: According to the Report, industrial incentives provided under the 
Investment Guarantees and Incentives Law No. 8/1997  (amended by Law No. 17/2015 ) are aimed 
at promoting investment in targeted economic sectors and include tax holidays for company profits 
for 5 to 10 years.  
 
Will Egypt submit notification of these subsidies? If so, what information will those notifications 
contain?  
 
Reply:  
We are studying all the procedures referred to and determining whether they fall within the 
framework of the agreement of Subsidy and countervailing Measures. If they require notifications, 
we will submit these notifications.  
 
3.3.2 Standards and other technical requirements  
3.3.2.1.1 Standards  
Page 80, paragraph 3.138: Egypt notes it has accepted the WTO Code of Good Practice for the 
Preparation, Adoption and Application of Standards. The Egyptian Organization for Standardization 
and Quality (EOS) has also signed mutual reco gnition agreements in the field of standardization 
and related activities with most Agadir countries, China, France, Jordan, Kuwait, Lebanon, Libya, 
Morocco, Nigeria, Saudi Arabia, Sudan, Tunisia, and Uganda.  
 
Since, Mutual Recognition Agreements (MRAs) r elate to conformity assessment for specific 
products or sector  
 
 Could Egypt please clarify the scope of the MRAs that Egypt has signed with China and other 
economies identified?  
 Could Egypt please clarify what type of standards cooperation it has with Chin a, France, 
Jordan, and the other economies cited in your response?  
 
Reply:  
It is worth mentioning that currently there are no MRA's signed with China nor France. As for 
Jordan EOS has an executive program to follow the procedures of mutual recognition for 
conformity certificates for mutual exchange of industrial goods between Egypt and Jordan.  
The scope of standards cooperatio n signed between Egypt and other countries mentioned in the 
question are in the scope of industrial –non-food products sector and include:  
- Mutual Exchange of Information on National Standards and Technical Regulations.  
- Visits of Experts to exchange experience on standardization  
- Cooperation in Standardization work and in the areas of mutual interests  
- Exchange of views prior to  Regional and International Meetings  
 
Page 80, paragraph 3.140: Importers may choose a relevant standard from among seven 
international standard systems. Standards are based either on ISO or on the standardization 
systems of the EU, the United States, Germ any, Japan and the United Kingdom. Importers are 
usually required to inform the GOEIC of the standards applied to imported goods, prior to 
importation. Also, in the absence of a mutual recognition agreement between Egypt and the 
exporting country, the impo rted product is subject to inspection and testing in Egypt, even if 
covered by a certificate.  
 
 Could Egypt explain what are its requirements to sign a mutual recognition agreement 
(MRA)?  
 
Reply:  
Mutual Recognition agreements between Egypt and any country are concluded in accordance with 
the provisions of the Agreement on Technical Barriers to Trade provided that:  WT/TPR/M/367/Add.1  
 
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  - Its scope is confined to non -food industrial products.  
- The products exchanged within the framework of the MRA shall be subject to physical 
inspe ction and random inspection.  
- The inspection shall be carried out according to the technical regulations and specifications 
of the importing country. The product exported to Egypt shall be inspected according to the 
Egyptian mandatory standards and specifi cations. In the absence of Egyptian standards, 
inspection is performed according to the approved standards as per decrees No. 180/1996, 
No. 291/2003.  
 Could Egypt provide a list of the countries it is currently in talks or in the process of 
negotiating an M RA? 
 
Reply:  
The countries that Egypt is currently having talks or is in the process of negotiating an MRA are 
Morocco, , Saudi Arabia, Sudan and Tunisia.  
 
 Does Egypt provide a list of mandatory Egyptian standards?  
 
Reply:  
The 860 mandatory standards issued  by Ministerial Decrees are available on the EOS website 
(http://www.eos.org.eg ). 
 
 Can Egypt share any example of where Egypt used U.S. -domiciled SDO standards (ASTM, 
ASME, SAE, API, NSF, etc.) as the basis for mandato ry standards?  
 
Reply:  
EOS issued 309 Egyptian standards with reference (ASTM) and 15 of them are mandatory Egyptian 
standards, examples of such standards are:  
* ES No.7607 / 2013 "Specification for zinc oxide pigments".  
* ES No .13 / 2013 "paper".  
* ES No .16 / 2013 " diesel fuel".  
 
Page 80, paragraph 3.141: Egypt noted that as of November 2017, Egypt had issued more than 
8,500 standards. Of those, 7,000 national standards had been aligned with international standards 
in several sectors.  
 
 Of the 1,5 00 national standards not aligned with international standards, could Egypt please 
explain how many have an existing corresponding international standard that has not yet 
been applied?  
Reply:  
In general, International standards are the main reference for Egyptian standards . However, in 
case of absence of international or European standards, we use other references which are 
referred to in the Ministerial decrees No. 180/1996, No. 291/2003 which stipulate that in the case 
of absence of Egyptian standards ,  the producers and importers can use :  
- European standards(EN) in case of their absence resort to BS -DIN-NF; 
- US standards (ANS);  
- Japanese standards (JIS);  
 
 How does Egypt determine whether to align its standard with an international standard or 
not?  
Reply:  
The procedures for the preparation of Egyptian standards is available in Chart 3.4 of the 
Secretariat report. The technical committee identifies the market requirements and hence 
numerous studies are conducted to determine how the existing internati onal standards meet this 
requirement.  
 
3.3.2.1.2 Technical regulations  
Page 81, paragraph 3.142: We appreciate Egypt's note on standards developed by the Egyptian 
Organization for Standardization and Quality (EOS) that become technical regulations and on 
various national line function departments in different ministries also responsible for implementing 
technical regulations.  WT/TPR/M/367/Add.1  
 
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   In accordance to Article 15.2. of the WTO TBT Agreement, has Egypt submitted a statement 
on the measures in existence or taken measu res to ensure the implementation and 
administration of the WTO TBT Agreement, including the provisions on transparency?  
 If not, when does Egypt plan to submit this information?  
Reply:  
Egypt has indeed submitted its statement under Article 15.2 of the Agree ment on Technical 
Barriers to Trade, the latest is in document G/TBT/2/Add.34/Rev.1dated 8 October 2009. Further 
updates to the statement if needed will be duly submitted.  
 
3.3.2.5 Labelling Requirements  
Page 86, paragraph 3.163: The Secretariat reports states that "In accordance with Ministerial 
Decree No. 770/2005, imported fabrics must have the name of the importer woven into the cloth 
in Arabic, English or French; in the case of imported readymade garments, the required 
information (name of importer, type of fabric and country of origin) can be shown woven into the 
cloth or by a sticker fixed on it, or printed."  
 
 Could Egypt please confirm the labeling requirements for imported fabric, as well as the 
labeling requirements for domestically produced fabr ic?  
Reply:  
Labelling requirements apply to both the local manufacturers as well as the foreign manufacturers 
as both have to comply with following Egyptian standards:  
 ES no. 7266, part 1," safety and health criteria and labelling for textile products  
  part 1 : dyeing yarns"  
 ES no. 7266, part 2," safety and health criteria and labelling for textile products  
  part 2 : dyed, printed or finishing fabric"  
 ES no. 7266, part 3," safety and health criteria and labelling for textile products  
  part 3 : apparel an d home textile "  
 ES no. 7266, part 4 " safety and health criteria and labelling for textile products  
  part 4 : Clothing "  
 ES no. 7266, part 5" safety and health criteria and labelling for textile products  
  part 5 : carpets and rugs  
 
 In addition, could Eg ypt provide the reference regulation for the textile and apparel labeling 
requirements?  
 
Reply:  
The reference regulation for the textile and apparel labeling requirements is 'The Federal Trade 
Commission act protecting American consumers.  
 
3.2.6 Export finance, insurance, and guarantees  
Pages 74 -75, paragraphs 3.113: The Secretariat states that the Export Development Bank of 
Egypt (EBE) provides its own export financing through four programs, one of which is the 
Agriculture Development Program (ADP). The  Secretariat also states that the ADP provides export 
loans to agricultural companies.  
 
 In light of Egypt's responses to the Questionnaire, does Egypt consider the Export 
Development Bank's export financing support activities, such as the Agriculture 
Devel opment Program, to be covered by the Nairobi Decision on Export Competition?  
 If not, please explain why the programs are not covered by the Decision.  
 
Pages 74 -75, paragraphs 3.114: The Secretariat states that the (EBE) provides export financing 
through a  subsidiary, namely, the Export Credit Guarantee Company of Egypt (ECGE). The export 
financing programs mentioned include: export credit guarantees, letters of credit, export factoring. 
Do any of these programs include coverage of exports of agricultural p roducts?  
 
 
  WT/TPR/M/367/Add.1  
 
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  3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary (SPS) measures  
Page 88, paragraph 3.175: The Secretariat states that Egypt regularly updates its list of approved 
food additives. Could Egypt clarify how frequently it updates its list of approved additives and 
whether the updates incorporate annual amendments to Codex's General Standard on Food 
Additives?  
Reply:  
Egypt updates the list of approved additives whenever there are updates/amendments to Codex's 
general stan dards on food additives. Also the list can be updated upon a request from a food 
company, but this request has to be supported by scientific evidence either from Codex 
Alimentarius or European Union regulations on food safety .In addition, it has to be off icially 
approved by the Food Additives Subcommittee and the Food Safety Committee at the Egyptian 
Ministry of Health And Population.  
 
3.3.5 State Trading, State -Owned Enterprises, and Privatization  
Page 93, Paragraph 3.203: The Secretariat notes that SOEs in Egypt are active in a number of 
sectors, including petroleum, transportation, and industrial activities.  
 
 Does Egypt maintain a central listing of SOEs, including the se ctors in which they are 
active?  
 If so, Could Egypt please provide information on  how that list may be accessed?  
 
Reply:  
- Indeed Egypt maintains a central listing of SOEs under Law 203/1991, including the sectors, 
the financials and other areas are included in the database.  
- Access to this information is to be made through the Ministry of Public Business Sector.  
 
Page 93, Paragraph 3.203: The Secretariat notes that Public Sector Law No. 203/1991 states that 
"SOEs should not receive preferential treatment from the Government."  
 
 Does Law No. 203/1991 explicitly prohibit certain f orms of prefe rential treatment?  
 If so, could Egypt please provide a list of what is considered "preferential treatment" under 
Law No. 203/1991?  
 Does Law No. 203/1991 govern SOE activities in Egypt more broadly (beyond what is 
identified with the Secretariat report), in cluding through transparency or financial reporting 
requirements?  
 
Reply:  
- Yes, Law 203 explicitly prohibits preferential treatment to Law 203 SOEs.  
- There is no "list" of such treatment.  
- Yes, Law 203 includes several sections on disclosure and transparency and accountability, as 
well as clear identification of the roles of the boards of directors and the general assemblies, 
among other areas.  
 
3.3.6 Government Procurement  
Page 94, Paragraph 3.209: The Secretariat notes that Egypt is not a signatory to the WT O 
Agreement on Government Procurement (GPA). Further, Egypt is not an observer to the GPA. 
Given that observership provides opportunities to engage with GPA Members on government 
procurement issues more broadly without taking any obligations, has Egypt con sidered requesting 
to become an observer to the GPA?  
Reply:  
In the time being, Egypt is not considering the idea of becoming an observer of the Agreement on 
Government Procurement.  
 
Page 95, Paragraph 3.213: The Secretariat notes that the General Authority for Government 
Services publishes guidelines for the procurement process. Are such guidelines binding or 
mandat ory for all procuring agencies?  
 WT/TPR/M/367/Add.1  
 
- 71 - 
 
  Reply:  
The relevant Tenders and Auctions law # 89 issued in 1998 governs Procurement of all 
government  bodies. The provisions of the law shall be enforced, and the State's Administrative 
Body Units, inclusive of ministries, departments, bodies having special balances, as well as Local 
Administration Units, public Authorities, whether being servicing or eco nomic, Units of a special 
nature and funds of Administrative Units shall be subject to its provisions.  
 
Page 95, Paragraph 3.214: The Secretariat notes that generally, Egyptian products are given a 
15% price preference in government procurement.  
 
 Could Egy pt explain how it determines whether a good is e ligible for a price preference?  
 Is it based on the country of origin of the good, the nationality of the supplier, or another 
factor?  
 If the price preference is determined based on the country of origin of th e good, how does 
Egypt define country of origin in government procurement?  
Reply:  
- Good is eligible for a price preference if the provisions of article (1) of Law No. (5)/ 2015, 
entitled "Preference of Egyptian products in government contracts and its execu tive 
regulations" are fulfilled . This article stipulates that every industrial product in which the 
percentage of the Egyptian component exceeds (40%) of the product price, whereas the 
percentage of the Egyptian component is calculated by deducting the val ue of the imported 
components from the price of the product is given 15% price preference in government 
procurement.  
- No, it is not based on the country of origin of the good, the nationality of the supplier.  
 
 Does Egypt have any preference regime for servi ces in government procurement?  
 If so, what is the preference and how is origin of services determined in government 
procurement?  
Reply:  
- In all procurement, a 15% price preference is only given to Egyptian products. Bids related to 
locally -made supplies, or on works or Services carried out by Egyptian entities shall be 
deemed less in price, provided that such price is not over 15% higher than the highest foreign 
Bid.  
- Egyptian subsidiaries of foreign companies can benefit from the preference.  
 
Page 96, paragraph 3.128: The Secretariat notes that future amendments to the procurement law 
may include "streamlining the review and complaints mechanism."  
 
 Do bidders have the right to appeal procurement award dec isions through Egyptian courts?  
Reply:  
Yes, through the Administrative court.  
 
 Is there any administrative process, such as an independent government agency, that is 
also set up to hear appeals or complaints?  
Reply:  
Yes, through the Complaint Office, established at the Ministry of Finance, and regul ated by a 
decree from the Prime Minister.  
 
3.3.7 Intellectual property rights (IPRs)  
3.3.7.1 Legal and institutional framework  
Page 98, Table 3.24 and page 100, paragraph 3.230: Concerning patent compulsory licensing, 
could Egypt please explain how its law  is compliant with Paris Convention Article 5(4) and TRIPS?  
Reply:  
Since this question is closely related to the next question, a unified answer for both questions will 
be provided in the next reply below.  
 WT/TPR/M/367/Add.1  
 
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  Page 98, table 3.24 and page 100, paragraph 3.230 : Based on this explanation, compulsory 
licensing does not appear to be limited in accordance with the requirements of Paris Convention 
Article 5(4) or by incorporation, the TRIPS Agreement. Could Egypt please explain how it considers 
its law to be complia nt with Paris Convention Article 5(4)?  
Reply:  
Compulsory licenses under the Egyptian IPR Law are in conformity with Paris 5(4) and TRIPS.  
 
Article 23 of the Egyptian IPR Law set outs the cases where compulsory licenses could be issued.  
 
Article 5(4) of Paris Convention addresses, only, the case where a compulsory license is issued on 
the basis of the failure to work of the patent and provides for certain time frames that shall be 
respected in such case.  
 
Article 5(2) of Paris Convention is more comprehensive than Article 5(4) in that regard. Article 
5(2) states "Each country of the Union shall have the right to take legislative measures providing 
for the grant of compulsory licenses to prevent the abuses which might result from the exerci se of 
the exclusive rights conferred by the patent, for example, failure to work".  
 
Accordingly, Article 5(2) of Paris Convention defined abuses of the exclusive rights conferred by 
the patent as a basis upon which a compulsory license could be issued, whi le it referred to the 
"failure to work" as a mere example of the cases that the term abuses reflects.  
 
With regards to the grant of a compulsory license on the basis of the example of "failure to work" 
referred to in Paris Convention Article 5(2) and 5(4) , Egypt, as reflected in Article 23 of the 
Egyptian IPR Law, clearly abides to the terms provided for in Paris Convention Article 5(4).  
 
In addition, Paris Convention Article 10bis "Unfair Competition" obliges the countries of the union 
to assure to nation als of such countries effective protection against unfair competition. This would 
entail adopting measures they deem appropriate to protect the nationals against acts of unfair 
competition.  
 
However, Paris Convention did not set any exclusive list of case s upon which a compulsory license 
may be issued.  
 
On the other hand, with regards to the TRIPS Agreement, the Egyptian IPR Law reflects TRIPS 
article 31 and takes advantage of the flexibilities Provided thereof, such as the issuing of 
compulsory licenses i n cases of public non -commercial use, emergency or extreme urgency and 
respects the conditions of notifying the patent owner.  
 
Also, TRIPS Article 8 allows members to adopt measures necessary to protect public health and 
nutrition, and to promote the publi c interest in sectors of vital importance to their socio -economic 
and technological development.  
 
While TRIPS Article 30 provides exceptions to rights conferred by the patent as it states "Members 
may provide limited exceptions to exclusive rights conferre d by the patent, provided that such 
exceptions do not unreasonably conflict with a normal exploitation of the patent and do not 
unreasonably prejudice the legitimate interests of the patent owner, taking account of the 
legitimate interests of third parties ." 
 
Accordingly, TRIPS Articles 8, 30 and 31 complement each other and allow governments to adopt 
measures necessary to protect health, face cases of emergency or extreme urgency and prevent 
abuses.  
 
However, in certain cases as provided in the Egyptian I PR Law in conformity with the TRIPS 
Agreement and Paris Convention, the issuance of a compulsory license would entail an adequate 
remuneration to the patent owner. Worth noting is that Egypt has not issued any compulsory 
license so far.  
 
Page 98 -99, table  3.24, Undisclosed Information: Could Egypt explain the term "secrecy 
classification" and the procedure for it to expire? How often does the "secrecy classification" expire 
before the 5 -year period and under what circumstances?  WT/TPR/M/367/Add.1  
 
- 73 - 
 
  Reply:  
The term "secrecy cl assification" is not mentioned in the Egyptian IPR Law, as secrecy would be 
more appropriate if considered a "factor" for the information to be protected.  
 
With regard to the second part of the question concerning the 5 years period, will be answered in 
the next reply below.  
 
Page 98 -99, table 3.24, Undisclosed Information, Selected Exclusions and Limitations: The report 
states that "some acts of obtaining information are not considered contradictory to fair commercial 
practices, as obtaining the information from publically available sources or by using inspection, 
examination, and analysis of products that are circulated in the market and that embody the 
undisclosed information;"  
 
 Does Egypt approve applications for the marketing of new medicines and agricultural 
chemicals b ased on such information alone?  
 If so, under what circumstances is this possible, and how often does it occur?  
Reply:  
The term "undisclosed test or other data", which is to be protected against unfair commercial use, 
embraces th e undisclosed information which (i) concern pharmaceutical or agricultural chemical 
products; (ii) result from considerable effort; (iii) utilize new chemical entities; (iv) are submitted 
to the concerned authorities as a condition for approving the market ing of such products; and 
(v) are required for conducting the tests necessary for the marketing approval.  
 
The concerned authorities who receive such information are obliged to protect the information 
against disclosure and against unfair commercial use. T his obligation starts from the date the 
information is submitted and continues until the information no longer becomes secret, or until the 
elapse of no more than five years, whichever occurs first.  
 
The exceptions provided for in article 56 of the Egyptia n IPR Law are identical to those provided 
for in Article 39.3 of the TRIPS Agreement namely; (i) where the disclosure by the concerned 
authorities is necessary to protect the public; or (ii) where the concerned authorities use the test 
information in testi ng or evaluating other similar products; this being a situation where protection 
of the public is an issue.  
 
Additionally, test data and other data, which are required for the testing, examination and 
evaluation of the product, are handled by the responsib le government authority, where all 
operations are conducted in complete secrecy and guarded against any form of disclosure to 
outside bodies except when required by law, such as by court order.  
 
A second applicant cannot, therefore, have access to such tes t data as submitted by a first 
applicant. It is only the concerned authority which can use the test data for testing the product of 
the first applicant or, where deemed necessary, to protect the public.  
 
Upon the above, the approval of applications for th e marketing of new medicines does not depend 
on information from publically available sources or by using inspection, examination and analysis 
alone. The regulatory authority requires companies to present information about the new drug, 
these information a re protected and considered as undisclosed information.  
 
Page 99, table 3.24, Trademarks and Geographical Indications, Duration: The table states that the 
term of protection is "One or more periods of 10 years, indefinitely renewable."  
 
 Could Egypt please  clarify if this term of protection pertains to both trademarks and 
geographical indications?  
 If it only pertains to trademarks, could Egypt please elaborate on the terms of protection for 
geographical indications and if t hey are indefinitely renewable?  
 
Reply:  
The ten years term of protection concerns trademarks only, and it is indefinitely renewable.  
 
The Egyptian IPR Law did not specify a term of protection for geographical indications, in 
accordance with TRIPS Article 22.  WT/TPR/M/367/Add.1  
 
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  Pg. 99, table 3.24, Copyright  and Related Rights, Selected Exclusions and Limitations: The text 
states: "Any work not translated into Arabic within three years of its publication is public domain." 
Please provide additional information about this requirement.  
 
Reply:  
Taking into consi deration that Article 8 of Berne Convention indicates that the right of translation 
should last to the full period of 50 years of the copyright protection. And since the TRIPS 
Agreement incorporates Articles from 1 – 21 of Berne and the Appendix thereof. N evertheless, the 
Appendix to Berne Convention "Special Provisions Regarding Developing countries" provides for an 
exception to the exclusive right of translation to the favo ur of developing countries allowing them 
to limit the right of translation to three  years. However, following the expiry of the three years 
period the original work does not fall in the public domain, hence, the competent authority is to be 
entitled to issue a license for translation to any third party interested in translating the work in 
question. The original work remains accorded full protection for the full 50 years.  
 
3.3.7.2 Patents  
Page 100, table 3.25, IPR Activity: The table shows patent filings and grants for 2016, which 
appears to indicate a 21% grant rate; 2,196 applications f iled and only 471 applications granted – 
a figure similar to other years. In 2016, it appears only 40 applications arising from PCTs were 
granted. For Industrial Designs, the grant rate appears to be only about 15% for 2016, with 1,932 
applications filed a nd only 290 granted.  
 
 Could Egypt please explain what is happening to the large majority of applications that were 
filed and not granted, for instance almost 80% of patent applications and 85% of design 
applications filed?  
 In addition, is the GoE aware of  why these grant rates are so low?  
Reply:  
With regard to patent applications, some applications might not have met the criteria necessary to 
be granted patent protection, or would have been better applied for in the form of Utility Models.  
 
With regard to industrial designs, some applications might not have met the criteria to be eligible 
for protection.  
 
The following table illustrates the status of patent applications in 2016:  
 
% Number  Items  
90%  About  1975 Examined files  
31%  About  603 Accepted files  
79% from acceptance  471 Granted files  
11%  About  219 Refused files  
26%  About  505 Withdrawn Files  
11%  About  210 considered as non -existent  
22%  About  438 Withdrawn for not paying 
maintenance fee  
 
- About 31% of examined files were accepted.  
- Granted Patent  amount to 79% from accepted files because the applicant is not interested any 
more in his application, or did not submit the 5 print copy from his accepted application, or did 
not pay the maintenance fees, or there is an objection by a third party.  
- About 59% from examined application are Withdrawn Files (withdrawn for not paying 
maintenance fee which is the applicant's responsibility), and considered as non -existent.  
 
 
 
3.3.7.3 Trademarks, geographical indications and industrial designs  
Page 101, paragraph  3.241: Does Egypt maintain a separate system for geographical indications? 
What are the grounds to refuse protection of geographical indications? Is there an opposition 
system and post -registration challenge mechanism for geographical indications? What ar e the 
grounds to challenge a geographical indication?  WT/TPR/M/367/Add.1  
 
- 75 - 
 
  Reply:  
Egypt follows one system for examination of trademark s and geographical indications. 
Geographical Indications are addressed and are protected as such according to articles 104 to 118 
of the IPR Law. These articles define what is a geographical indication and sets the rules governing 
its protection and the sanctions for cases of violations.  
 
As for example, Art. 104 defines a geographical indication and sets a condition that it must be 
protected i n its country of origin in order to be eligible for protection under the Egyptian IPR Law in 
Egypt. Other articles also prohibit the use of a geographical indication in a manner that misleads 
the public as to the true origin of the good. They also refer to  the trademark that includes a 
geographical indication, as for example, Art. 110 states that a trademark that includes a 
geographical indication should not be registered as a trademark if its use would mislead the public 
with regard to the true origin of t he good. These articles also include provisions regarding the 
sanctions against persons involved in using geographical indications in misleading ways as 
described in the law (Art.114).  
 
Article 112 of the IPR Law allows any interested party to bring a case  before the competent court 
asking to prevent the use of any geographical indication if such use would mislead the public about 
the true origin of the good.  
 
3.3.7.4 Copyright  
Page 102, paragraph 3.243: The report does not mention collective rights managem ent in its 
discussion of copyright protections.  
 
 Are there any collection management organizations currently operating in Egypt, as 
permitted under the Intellectual Property law (No. 82 of 2002)?  
 If not, why not?  
 If there are, could Egypt please summariz e their activities and what constituencies they 
serve?  
Reply:  
The collective management for musical authors is held to the Association of authors, composers 
and publishers. The association collects the royalties for the musicians.  
 
Page 102, paragraph 3.2 44: The report states the term of "[p]rotection is reduced to 25 years for 
authors of performing arts." Assuming the phrase "authors of performing arts" refers to 
"performers," and that the term of protection for them is 25 years, could Egypt please explai n how 
this term addresses the obligations under TRIPS Article 14.5?  
Reply:  
The phrase "authors of performing arts" should have better been substituted with the term 
"authors of applied arts" as stipulated in article 164 of Egypt IPR Law. This article provi des for a 
protection period of 25 years from publishing or making available for the public by the author of a 
work of applied art. Accordingly, this article is in conformity with Berne Article 7(4) which provides 
for that same period of protection.  
 
While,  according to Article 166, performers are protected for 50 years in compliance with TRIPS 
Article 14(5).  
 
Page 102, paragraph 3.245: The report describes the entities for which applications of certain 
copyright registrations are to be submitted. Could Egyp t please provide a summary, including 
available statistics, for the number of copyright registrations issued in the last few years covered 
during this Trade Policy Review period?  
Reply:  
Copyright protection is automatic, registration is not a condition fo r protection.  
The number of copyrighted software deposited at the IP Unit within ITIDA was illustrated in the 
Secretariat's Report S367, Table 3.25, as follows: - 
 WT/TPR/M/367/Add.1  
 
- 76 - 
 
   2006  2007  2008  2009  2010  2011  2012  2013  2014  2015  2016  
Copyright 
applications  209 249 390 292 330 219 216 232 218 202 254 
Applications 
granted  209 249 390 292 330 219 216 232 218 202 254 
 
3.3.7.5 Plant varieties  
Page 102, paragraph 3.246: Does Egypt plan to accede to the UPOV Convention 1991? Has Egypt 
reached out to the UPOV Secretariat to begin this process?  
Reply:  
Egypt is working on accession to the UPOV 1991. Documents of accession were submitted to the 
UPOV Secretariat. The Secretariat, after reviewing the documents and the amended Book Four of 
the IPR Law protecting new varieties of plants, had some notes and re marks. Egypt is currently 
working on these notes and remarks at the national level and in coordination with the UPOV 
Secretariat in order to continue the accession process.  
 
Page 102, paragraph 3.246: It appears that Egypt's protection law on plant variet y is in conformity 
with UPOV Convention requirements. Does Egypt plan to accede to the UPOV Convention and take 
advantage of the benefits of membership?  
Reply:  
The new varieties of plants are protected by Book Four of the Egyptian IPR Law. Book Four of the  
Law was amended lately after consultations at the national level and coordination with the UPOV 
Secretariat in order for it comply with the UPOV Convention requirements and to join the UPOV 
consequently.  
 
3.3.7.6 Enforcement  
Page 103, paragraph 3.252: The  report states that the Information Technology Industry 
Development Agency (ITIDA) is entitled to take ex officio  actions and regularly conducts raids. 
Could Egypt please provide more information on the scope of ITIDA's ex officio authority, as well 
as the  results of actions taken in IPR related activities?  
Reply:  
Although the Ministry of Interior is the main Ex Officio enforcing authority for all laws applied in 
Egypt including the IPR Law. The Ministerial Decree No. 3286 of the year 2006 issued by the 
Ministry of Justice, indicated that the Intellectual Property Unit at the Information Technology 
Industry Development Agency (ITIDA) is one of the enforcement authorities that are entitled to act 
in the capacity of judicial officers in cases of software copy right infringements, including 
entertainment software as well as business software.  
 
ITIDA is responsible for protecting software copyright, as well as, spreading IPR awareness among 
the public.  
 
ITIDA achieved a remarkable success in establishing transpar ent procedures to protect and 
promote IPR in Egypt.  
 
ITIDA engage in conducting raids involving vendors of pirated entertainment software products. It 
cooperates and coordinates with the Ministry of Interior with regards to conducting raids. As a 
consequen ce, software anti -piracy raids during 2017 have increased to 438 raids compared to 313 
raids in 2016.  
 
ITIDA believes that the piracy rates will continue to drop as a consequence to the agreements 
which w ere signed between the Egyptian government and softw are vendors. The efforts of ITIDA 
were praised by the USTR Special 301 report.  
 
Page 103, paragraph 3.253: Does Egyptian Customs Authority utilize an IPR recordation system or 
process that provides right holders the ability to record trademarks or copyrig ht registrations with 
the Egyptian Customs Authority?  Can Egyptian Customs receive IPR complaints from right holders 
electronically?  WT/TPR/M/367/Add.1  
 
- 77 - 
 
  Reply:  
There is no register or recordation system, neither at TAS nor at the Customs Authority, that 
enables right holders to register or record their intellectual property rights. However, according to 
Article 33 of Chapter 9 of the Executive Regulation of the Import & Export Law, right holders are 
entitled to file complaints to TAS and to support it with the required documen tation. TAS examines 
the complaints and coordinates with the Customs Authority who spread the complaint to the 
various custom outlets to suspend any suspected shipments. Such procedure led to seizing lots of 
infringing shipments. The filing of complaints e lectronically is not available.  
 
Page 103, paragraph 3.254: Can Egypt provide the number of civil IPR infringement cases 
reviewed by the economic courts in 2016 and 2017 in addition to a sampling of relevant cases?  
Reply:  
Economic Courts are spread to 8 circles covering various governorates of the country. Each court 
has its separate register for cases. Taking into consideration that the Economic Courts see other 
economic -related laws other than the IPR law, the registers m ight not have special classification 
for IPR cases and their forms (copyright, patents, or trademarks) and nature whether civil or 
criminal. Accordingly, it would be difficult to provide the full number of civil or criminal IPR cases 
reviewed by the Econom ic Courts in general. However, the number of IPR cases that were referred 
to Experts of Cairo Economic Court in the year 2017 amounted to 165 cases.  
 
Page 103, paragraph 3.255: Can Egypt provide an overview or sampling of criminal IPR cases that 
were adju dicated in 2016 and 2017? Can Egypt provide examples of criminal cases that provided 
deterrent level penalties for IPR violations?  
Reply:  
Same reply as provided for the above question.  
 
Questions based on the Report by Egypt (WT/TPR/G/367)  
 
4 TRADE POLICY FRAMEWORK  
4.3 Trade Facilitation  
Page 9, paragraph 4.6: The Government Report mentions that Egypt ratified the WTO Trade 
Facilitation Agreement (TFA) in 2017, and that the TFA was transposed into national law through a 
Presidential Decree. Could Egypt plea se explain why it has not presented its instrument of 
ratification to the WTO, and could Egypt also provide details on when it plans to do so?  
Reply:  
Great efforts were exerted to ratify the TFA, Trade Facilitation department (TFD) under the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry went through all the 
complicated domestic procedures required for the completion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Review Committee at the 
Ministry of Foreign Affairs. TFD responded to all inquiries related to the agreement and its 
provisions, explained the vitality of TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessions of the Economic C ommittee of the 
parliament and hence presented to the plenary session that approved to ratify TFA on 22 June 
2017 and ratified by Pr esidential Decree No. 149/2017.  
 
As for depositing the instrument, Egypt already communicated with the WTO Secretariat and t he 
legal department concerning TFA instrument of acceptance. Egypt is about to deposit the 
instrument in accordance with the model document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be attached or annexed to  the Marrakech Agreement.  
 
5.7 Trade -Related Aspects of Intellectual Property Rights  
Page 13, paragraph 5.18: The report references 2,200 complaints received by the IPR Contact 
Point, "with the overwhelming majority related to copyright infringement."  
 Could Egypt please clarify if these complaints are filed solely through administrative 
channels, and whether or not potential cr iminal sanctions are available.  
 In addition, are data points available for each year (2011 through 2017)? Are there any 
details and/ or statistics available regarding the outcomes of these complaints, by subject 
matter?  WT/TPR/M/367/Add.1  
 
- 78 - 
 
  Reply:  
The Contact Point Organization for IPR Protection are considered among the expert bodies by the 
Public Prosecution and Economic Courts. Accordingly, many cases a re referred to the Contact Point 
for technical and legal opinions. Also, the police in their law enforcing capacity conduct raids that 
might lead to seizure of items suspected of infringing intellectual property, and they often refer the 
seized items to th e Contact Point for technical opinion.  
 
In addition to the previous cases, complaints can be submitted directly by the complainant to the 
Contact Point in their capacity of receiving complaints with the aim of trying to find amicable 
solutions prior to res orting to courts.  
The following table illustrates the numbers of cases referred to the Contact Point for legal and 
technical opinion during the period from July 2011 to Mars 2017.  
 
Subject matter  Number  
Patents  6 
Trademarks  197 
Copyright and Related Rights  2012 
Plant Varieties  0 
Complaints by Persons  88 
 
As for the outcomes of these cases, the role of the contact points ends at reporting their technical 
opinion and referring the report back to the court or prosecution.  
 
Page 13, paragraph 5.19: The report notes that "[i]n 2008, Egypt established a system of 
specialized Economic Courts, which handle cases of a predominantly economic or commercial 
nature, including both civil and criminal matters related to Intellectual Property Rights (IPRs)." 
Could Egypt please provide further information on the jurisdiction of the Economic Courts in 
regards to intellectual property adjudication?  
 
 What, if any, procedural differences might exist between Economic Courts and traditional 
civil and criminal courts?  
 Are there any statistics available concerning the results of all these cases (by subject matter 
– copyright, trademark, patent) handled by the Economic Courts?  
 What is the average time it takes to complete an IPR case?  
Reply:  
The Law No. 120/2008 Establishing Economic Courts fully details the issue in question. However, 
the Economic Courts have jurisdiction over IPR cases, the court rules over both the civil and 
criminal aspects of the case. The litigation process should be confined to two levels o f litigation 
instead of three levels, considering the value of the case in question, the first level might be 
reviewed in the Court of Appeal instead of the Court of First Instance. And the appeal to the ruling 
of the Court of Appeal would be seen before t he Court of Cassation. Certain Circles of the Court of 
Cassation are devoted to Economic Courts' cases.  
 
Statistics are not available as previously explained in the reply to the question on the 
WTO Secretariat's Report, Page 103, paragraph 3.254.  
 
The aver age time to complete a case might approximately take 6 to 9 months before the court for 
the one level of litigation.  WT/TPR/M/367/Add.1  
 
- 79 - 
 
  JAPAN  
Replies to Questions from Japan  
 
Report by the Secretariat (WT/TPR/S/367)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights (IPRs)  
 
(Question 1  Paragraph 3.224., Page 97)  
According to the report by the secretariat, in 2016, a Committee for E -Commerce was established 
within the Ministry of Trade and Industry. What are purposes of the establishment and roles of 
E-Commerce committee? What goal does Egypt aim for regarding e -commerce?  
 
Also, are there any regulations related to e -commerce and/or does the Committee intend to make 
new regulations? If so, we would li ke to know the outline of such regulations.  
 
Reply:  
The main role of E -Commerce Committee is to identify, in coordination with concerned 
governmental bodies, all challenges we are facing in Egypt in respect of e -commerce such as, the 
absence of clear legal  and institutional frameworks to regulate and address e -commerce issues, 
the lack of necessary infrastructure to maximize the returns of e -commerce, the absence of highly 
developed Electronic payment systems, and to determine also all opportunities that Eg ypt can 
benefit from this issue in future as a first step for developing this vital sector in Egypt.  
 
In addition, this Committee is responsible for following up and studying in depth all proposals 
related to e -commerce submitted by WTO or any internation al organizations in order to formulate 
a unified Egyptian position in e -commerce.  
 
Concerning any new regulations related to e -commerce, Egypt still does not have a general 
e-commerce law that cover and regulate all different areas related to e -commerce. H owever, law 
No. 15/2004 for regulating the electronic signature has been adopted by the Parliament and is 
considered as the first law for regulating the electronic transactions in Egypt.  
 
Moreover, there is the Egyptian Computer Emergency Readiness Team ( EG-CERT), established by 
the National Telecommunication Regulatory Authority in April 2009, which is in charge of providing 
computer and information security incident response, support, defense and analysis against cyber -
attacks and collaboration with gove rnmental, financial entities and any other critical information 
infrastructure sectors. EG -CERT also provides early warning against malware spreading and 
massive cyber -attacks against Egypt's telecom infrastructure.  
 
In addition, Egypt has prepared a draft  law for consumer protection related to e -commerce in 
order to regulate secure electronic transactions, and is actually in the process of adoption in the 
Parliament.  
 
Regarding intellectual property enforcement, the Committee will address the issue of enf orcement 
on IP infringements in the digital environment.  
The work of the committee will take in consideration the work of e -commerce in the TRIPS Council 
and other WTO bodies.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and  Trade  
3.3.7 Intellectual property rights (IPRs)  
 
(Question 2  Paragraph 3.233, Page 100)  
According to the Table 3.25 (IPR activity, 2006 -16) of the report by the Secretariat, the number of 
Trademark applications has greatly decreased from 16,215 (2015) to 11,782 (2016). We would 
like to know the reason of such decrease.  
 WT/TPR/M/367/Add.1  
 
- 80 - 
 
  Reply:  
The Trademarks & Industrial Designs Office reported that the number of applications for 
trademarks in 2015 was (20,630), and it has increased in 2016 to reach (21,754).  
 
However, it should be noted that trademark registrations are variable and may be subject to some 
rise and falls depending on many factors such as when the trademarks office finds a trademark 
confusing to another mark previously registered, they reject the application or require the 
applicant to make some amendments to his mark in order for it to be registered.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights (IPRs)  
 
(Question 3 Paragraph 3.246 , Pag e 102)  
According to the report by the Secretariat, the Egyptian Parliament has accepted Presidential 
Decree concerning the accession to UPOV convention. We would appreciate it if you would explain 
the schedule and possible time frame for that accession.  
Reply: 
Egypt is working on accession to the UPOV 1991. Documents of accession were submitted to the 
UPOV Secretariat. The Secretariat, after reviewing the documents and the amended Book Four of 
the IPR Law protecting new varieties of plants, had some notes and re marks. Egypt is currently 
working on these notes and remarks at the national level and in coordination with the UPOV 
Secretariat in order to continue the accession process.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and T rade 
3.3.7Intellectual property rights (IPRs)  
 
(Question 4 Paragraph 3.253, Page 103)  
According to the report by the Secretariat, Trade Agreements and Foreign Trade Sector (TAS) 
office and Egyptian Customs cooperate in carrying border measures. We would li ke to know 
whether Egypt has the system which enables right holders to record their intellectual property 
rights to the competent authority and suspend or detain IPR infringing goods based on such 
recordation. Further, if Egypt has such system, we would li ke to know the detail of it.  
Reply:  
There is no register or recordation system, neither at TAS nor at the Customs Authority, that 
enables right holders to register or record their intellectual property rights. However, according to 
Article 33 of Chapter 9 of the Executive Regulation of the Import & Export Law, right holders are 
entitled to file complaints to TAS and to support it with the required documentation. TAS examines 
the complaints and coordinates with the Customs Authority who spread the complaint to the 
various custom outlets to suspend any suspected shipments. Such procedure led to seizin g lots of 
infringing shipments.  
 
For Example, counterfeit Toyota cars spare -parts were suspended based on such procedure, as 
well as other goods that counterfeite d other Japanese companies' trademarks.  WT/TPR/M/367/Add.1  
 
- 81 - 
 
  INDONESIA  
Replies to questions from Indonesia  
Secretariat Report:  
Summary  
Page 9 Para 10  
"Egypt submitted numerous notifications to the WTO during the period under review. Some 
lagging notifications, for instance with respect to agriculture, were submitted to the WTO during 
the review process."  
 
Question 1: Would the Government of Egypt give clarification on the lagging in its notification 
process?  
 
Reply:  
Egypt is in the process of taking stock of all the trade related measures including domestic support 
in area of Agriculture to assess them and preparing the notifications there has been a number of 
challenges including inter alia:  
 
- The lack of availability of integrated information database in the relevant autho rities.  
- The lack of human and technical capacities to aggregate the data and classify them 
according to the different boxes in the Agreement on Agriculture.  
 
Page 10 Para 14  
"In 2017, some 46 lines exceeded their bindings.  Despite recent reforms, Egypt's tariff 
system remains somewhat complex, with a number of exemptions, reductions, and 
concessions. The tariff rates are ad valorem, with the exception of 21 lines. In addition to tariffs, 
imports are now subject to a value -added tax of 14%, which also appli es to domestically produced 
goods; exported goods are exempted and services are zero -related. Egypt also applies excise 
taxes on some products in addition to the general VAT rate."  
 
Question 2: Would the Government of Egypt clarify about the 46 lines that exceeded its bound 
tariffs?  
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound rate o f which was wrongly transposed and the appropriate procedures will be 
taken in the context of the Committee on Market Access.  
 
It should also be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law . H ence, in cases were the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in preparing the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members a nd 
non-WTO members set at the bound rate levels or below.  
 
Question 3 : Would the government of Egypt give more elaboration on its complex tariff system?  
 
Reply:  
The customs tariff is deemed one of the fiscal policy instruments designed in accordance with the 
national economic policy and in line with the change in economic conditions at the national and 
international levels. Since 2004, Egypt has expanded the scope of its overall trade reforms to 
include trade liberalization. In this context, there were man y measures have been taken, including 
tariff reductions by the Presidential Decree No. 300/2004 and the Subsequent Presidential 
Decrees. Some tariff lines are subject to ad valorem duties, while other tariff lines are subject to 
other specific duties, as c ommonly accepted in the international trade.  
 
Egypt is currently preparing its applied tariffs according to Harmonized System 2017, the new 
applied tariffs will be duly issued and published. In this context Egypt will take into consideration 
the continued efforts of simplifying the tariff system with the aim of facilitating trade.  
 
Question 4 : Would the government of Egypt give more elaboration on its excise taxes in addition 
to the general VAT rate, more specifically on the reason for conduction of this me asure?  WT/TPR/M/367/Add.1  
 
- 82 - 
 
  Reply:  
The new VAT law applies a unified tax rate of 14% on all goods and services with an exception to 
certain schedule 1 goods. Applying the new VAT system allows for a more transparent and 
encompassing tax system, where a number of incentives are  given to individuals and companies to 
register as taxpayers. The VAT has expanded the Egyptian tax base, and has also increased 
government revenues substantially since its inception.  
 
Some of the key features of the new VAT system are:  
 Tax rate : 
o The VAT h as been applied as a unified tax rate at 13% until the 30th June 2017 
and 14% FY17/18  
o All exported goods and services are zero rated  
o Separate chapter and Excise tax schedules  
 Registration threshold:  
o Introduced a higher registration threshold of EGP 500k (c . $56K) of the turnover.  
o A SMEs regime will be introduced.  
 Tax deduction:  
o On Direct and indirect  input tax and taxes on machinery and equipment.  
 
 Refund  
o For Input tax on exports, tax collected by error, Machinery and equipment used in 
taxable sales.  
o Credit balance for more than 6 months.  
o Refund within 45 days as of the refund request date.  
 
Page 10 Para 15  
Additionally, the importation of a relatively large number of items is subject to "special conditions" 
and requires a licen se, including passenger cars; shoes; apparel; home textiles; carpets; car 
parts; household appliances; eyeglasses and watches; petroleum products; milk and milk 
products; oils and fats; pasta; and soaps. The importation of certain products is subject to spe cific 
administrative formalities and requires government approval; such is the case for wheat grains, 
corn used for the feed industry, and soya bean seeds for oil extraction. Egypt has not submitted 
any notifications to the WTO with respect to its import l icensing regime.  
Question 5: Would the Government of Egypt clarify about the "special conditions" as mentioned 
above?  
 
Reply:  
The conditions are already stated in page 62 in the secretariat report in table 3.16 which provides 
the goods imported subject to special conditions in accordance with Annex 3 to Decree 
no.770/2005.  
 
Question 6: Would the Government of Egypt give clarification on why it's not submitted any 
notifications to the WTO with respect to its import licensing regime?  
 
Reply:  
The general principle is that imports are not subject to import licensing procedures. However, it 
may be applied to ensure the appropriate application of SPS, national security and environmental 
measures.  
 
We are currently taking stock of all the trade related regulat ions that have not been previously 
notified in order to prepare and submit the appropriate notifications in the context of the relevant 
WTO committees. However, this task requires huge human and technical capacities.  
 
Page 10 Para 17  
"Exports can be prohib ited or restricted in order to meet local  demand or for environmental 
purposes."  
 WT/TPR/M/367/Add.1  
 
- 83 - 
 
  Question 7: Would the Government of Egypt give more elaboration on why exports can be 
prohibited or restricted in order to meet local?  
 
Reply:  
Egypt introduces export restrictions in accordance with provisions of Article XI or Article XX of 
GATT 1994 such as in case of threat of foodstuff shortage or for the conservation of natural 
resources.  
 
Page 12 Para 29  
"The fixed telecommunications penetr ation rate is relatively low while the coverage of mobile 
telephony already surpasses the population, a result achieved during the period under review."  
 
Question 8: Would the Government of Egypt give more elaboration on this matter?  
 
Reply:  
This is a worldwide trend, that fixed telephony penetration is decreasing, and mobile telephony is 
increasing. However, the government of Egypt is encouraging and support the broadband 
penetration specially in the Egyptian communities such as school, hospi tals and Youth centers 
(please refer to the e -masr national broadband). In addition, the operators are currently 
introducing innovative new packages for fixed data services which eventually will promote the 
fixed line penetration.  
 
3 TRADE POLICIES AND PRA CTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 T ariffs  
3.1.3.1 Overview  
Page 48 Para 3.42  
"Presidential Decree No. 184/2013, published in the Official Gazette  in March 2013, announced 
changes in customs duties, which consisted mainly of hi gher rates on a wide range of products. 
This Decree was followed by three additional amendments, namely Presidential Decree 
No. 69/2015, Presidential Decree No. 25/2016, and Presidential Decree 538/2016 . Presidential 
Decree No. 25/2016, issued in January 2 016, raised import tariffs on a wide range of 
products (11.4% of the tariff lines of the 2016 schedule). Presidential Decree No. 
538/2016, issued in December 2016, further increased tariffs to up to 60% on certain 
items, some of which were already covered in the earlier decree. These decrees in 
general increased import tariffs on a substantial number of goods mainly for 
non-agricultural products (WTO definition),  and reduced rates on a small number of items 
(Table  3.5)."  
 
3.1.3.2 Applied MFN custom duties  
Page 49 Para 3.45  
"Law No. 538/2016 introduced three new tariff levels to the 2017 tariff schedule, namely 45%, 
50%, and 60%; these levels affect 5.8% of lines. The comparison between 2016 and 2017 
shows that some 294 tariff lines with a duty rate of 40% in  2016 were subject to a rate 
of 60% in 2017;  the affected items are mainly non -agricultural products such as machinery and 
mechanical appliances, electrical machinery and equipment, and furniture (Table 3.6)."  
 
Question 9: Would the Government of Egypt giv e more elaboration on its reason for conducting 
this measure since a lot of Indonesian imported goods are affected by this measure?  
 
Reply:  
It should be noted that Presidential Decree No.538/2016 is not time bound. However, in the 
course of updating the Egyptian tariff structure according to HS 2017, a new Egyptian applied tariff 
will be issued and published. It is worth mentioning that tariffs are determined in the context of 
the entire economic and fiscal policy of the country.  
 
3.1.4 Import prohibitions, restrictions, and licensing  
Page 64 Para 3.77  
In accordance with Ministerial Decree No. 43/2016, imports for commercial purposes of a number 
of products will be allowed into Egypt only if they are produced by manufacturing plants or 
imported from the companies owning the trademarks or their distribution centers 
registered in the relevant established Register in the GOEIC. Registration in, or striking WT/TPR/M/367/Add.1  
 
- 84 - 
 
  off from this Register is decreed by the Minister of Foreign Trade who also has the 
authority to allow for an exemption from some or all the requirements for registration.  
To register in the relevant registry in the GOEIC, manufacturing plants must produce evidence of 
the trademarks and the trademarked products produced under licence from the trade mark owners. 
They must also certify that the producer maintains a quality control system. The certificate must 
be issued by entities accredited by ILAC or the International Accreditation Forum (IAF) or an 
Egyptian or foreign governmental entity approved by  the Minister of Foreign Trade. In the case of 
companies owning trademarks, registration requires a certificate stating the registration of the 
trademark and the trademarked goods produced, as well as a certificate from the trademark 
owning company contain ing the distribution centres that are entitled to supply the products 
bearing the trademark. Likewise, a certificate that the trademark owning company maintains a 
quality control system issued by entities accredited by ILAC or IAF or an Egyptian or foreign  
governmental entity approved by the Minister of Foreign Trade must be produced.  
 
Question 10: We understand that in order to register to the GOEIC, the required documents have 
to be submitted with an Arabic translation and need to be legalized by the cons ulate of Egypt in 
the exporting country. However, this legislation process incurring new cost, which is around 
US$80/documents in Indonesia's case. Would the Government of Egypt give clarification on this 
matter? Since this additional fee are considered to  incriminate exporters from Indonesia.  
 
Reply:  
Egypt appreciates the concern of Indonesia. The costs are only incurred once. Furthermore, to 
ensure that exporters are not incurring unnecessary costs, a copy of the certificate stating that the 
producer or t he trademark owner company maintains a quality control system is accepted if it is 
available on the electronic database of the accredited certification service providers and GOEIC can 
verify it online.  
 
Question 11 : We also understand that there is a fee of L.E. 300 or US$500 that has to be paid for 
the registration. Would the Government of Egypt give clarification on this matter?  
 
Reply:  
There are no registration fees however the 300 L.E. are charges approximate to the services 
rendered including the veri fication and processing of documents.  
 
Question 12 : Would the government of Egypt clarify about the time needed in order to finish the 
registration process based on this Ministerial Decree?  
Reply:  
The time limits for the registration process is subject to  the verification of documents. Once the 
verification of submitted documents is done by the General Organization for Export and Import 
Control (GOEIC), the Minister competent for Foreign Trade issues the relevant decree stipulating 
the registration.  
 
Quest ion 13 : Would the government of Egypt give further elaboration on the procedures to 
obtain exemption from some or all the requirements for registration as decided by the Minister of 
Foreign Trade?  
 
Reply:  
The power of the Minister competent for Foreign Tra de to provide an exemption from all or part of 
the registration requirements stipulated in Ministerial Decree No. 43/2016 is a legal provision to 
allow for the appropriate flexibility that might be required in case of urgent and necessary public 
interest s uch as those related to the health of people. Examples of products that might merit such 
exemption are infant milk for premature babies and shoes for diabetics. Decisions regarding such 
cases are taken on a case -by-case basis.  WT/TPR/M/367/Add.1  
 
- 85 - 
 
  NEW ZEALAND  
Replies to questions from New Zealand  
 
REPORT BY THE WTO SE CRETARIAT (WT/TPR/S/ 367)  
SECTION 3  TRADE POLICIES AND PRACTICES BY MEASURE  
 
(3.1.1) Customs procedures, valuation, and requirements  
WT/TPR/S/367, Section 3.1.4, pp.64 -65, para 3.77  
 
The Secretariat's summary, at paragraph 13, notes that "during the period under review, Egypt 
continued its reform process, with a view to making its customs administration more efficient and 
transparent, by reducing the number of documents required for im port and export processes."  
 
At paragraph 15, however, the report states that "the importation of a relatively large number of 
items is subject to "special conditions" and requires a licence." Para 3.77 notes that "in accordance 
with Ministerial Decree No . 43/2016, imports for commercial purposes of a number of products will 
be allowed into Egypt only if they are produced by manufacturing plants or imported from the 
companies owning the trademarks or their distribution centres registered in the relevant 
established Register in the GOEIC."  
 
Questions:  
 
As highlighted during the April 2017 meeting of the Council for Trade in Goods in Geneva, many of 
Egypt's trading partners have noted delays in the process of companies applying for and receiving 
registration with GOEIC.  
 
 What is the objective that the re gistration requirement under Ministerial Decree No. 43/2016 
aims to fulfil?  
Reply:  
The main objective of the Decree is to ensure that the entities exporting to Egypt maintain a 
quality control system to confirm that the products specified in the Decree and  that are used by 
natural persons are the outcome of a quality controlled production process. Despite the fact, that 
the imports of such products represent only a minimal share in total Egyptian imports, it has been 
found out that the Egyptian market has b een invaded by products that are the outcome of illegal 
manufacturing practices. This has had a negative impact on the health and safety of consumers 
and subjected them to deceptive practices.  
 
 Given the already robust implementation of sanitary and phyto sanitary (SPS) measures in 
Egypt (Section 3.3.3, paras 3.164 -3.183), what is the objective for the application of 
Ministerial Decree 43/2016 to food products?  
Reply:  
As explained in the previous question the main objective of Ministerial Decree 43/2014 is to ensure 
that the entities exporting to Egypt maintain a quality control system to confirm that the products 
specified in the Decree and that are used by natural persons are the outcome of a quality  
controlled production process.  
 
This Ministerial decree does not require the fulfilment of any specific SPS measures or 
requirements, such requirements are specified in the relevant regulations.  
 
 Did Egypt consider less trade restrictive measures for meeting these objectives? If yes, what 
were the alternative m easures considered?  
 
Reply:  
Egypt does not consider that Ministerial Decree 43/2016 is trade restrictive as it serves a 
legitimate objective and is applied in a transparent non -discriminatory manner.  WT/TPR/M/367/Add.1  
 
- 86 - 
 
  SECTION 3  TRADE POLICIES AND PRACTICES BY MEASURE  
 
(3.1.3) Tariffs  
WT/TPR/S/367, Section 3.1.3, pp.47 -49, paras 3.41 -3.42 
 
The Secretariat's summary, at paragraph 14, notes that "Egypt's simple average applied MFN tariff 
rate was 19.1% in 2017, slightly down from 20%in 2005, but higher than 16.5% in 2012."  
 
Paragraph 3.42 reports that "Presidential Decree No. 184/2013, published in the Official Gazette in 
March 2013, announced changes in customs duties, which consisted mainly of higher rates on a 
wide range of products." Table 3.5 indicates that import tariff s were increased on a number of 
categories, including on fish products (HS 03 and HS 16).  
 
Furthermore, at table 3.20 on p.71, it is noted that through Ministerial Decree No. 1106/2017 
Egypt has imposed an export tax of LE  12,000 per ton on fresh, refri gerated and frozen fish until 
24 August 2018.  
 
Under Section 4.1.2 on Fisheries, meanwhile, the report notes that "aquaculture has become 
increasingly the most important segment of the fishing industry, doubling between 2005 and 
2016" (para 4.29), and that "t he value of exports of fish and fish products… increased twelvefold 
over the period" (para 4.30).  
 
Questions:  
 
In light of the above, and noting that in the fisheries sector, one of the goals of the General 
Authority for Fish Resources Development (GAFRD)  is "providing fish to the population at 
reasonable prices, in particular to the low income population" (para 4.3.3),  
 
 What is the objective of Egypt's export taxes on certain fish products?  
 
Reply:  
The main objective of export taxes on certain fish products is to ensure the sufficient amounts for 
local demand.  
 
 What role does Egypt see for imported fish (HS 03 and HS 16) in meeting that same 
objective?  
 
Reply:  
Imports of fish play an important role in securing the local demand for fish which is considered a 
substitute  for meat and poultry in Egypt.  
 
According to Egyptian statistics, Egypt produces about 1.6 Million tons of fish, and local demand is 
about 1.8 million tons per annum. The quantity impor ted is about 340 thousand tons, and the 
quantity exported is about 46 thousand tons. The applied tariffs on fish ranges from 0% to 40%.  
 
 Does Egypt have plans for further reforms in tariffs on fish products in order to meet its 
objective of providing fish to the population at reasonable prices?  
 
Reply:  
It is worth mentioning that tariffs are determined in the context of the entire economic policy of 
the country. For fish, in establishing the tariffs on fish and fish products, food security was one of 
the ma in factors that has been taken into account that is why higher tariffs are only imposed on 
high –end fish and fish products that are not highly demanded and consumed by middle and low 
income consumers.  
 
However, the government of Egypt regularly reviews it s trade related policies in light of its 
economic development strategy and with a view to enhancing the business environment. Thus, 
any changes or reforms will be duly issued and published.  
 
 Does Egypt have plans for reductions to subsidies in this area?  
 WT/TPR/M/367/Add.1  
 
- 87 - 
 
  Reply:  
Egypt does not provide any subsidies for the fish sector (fisheries – aquaculture).  
 How does Egypt ensure that such subsidies do not support illegal, unreported or unregulated 
fishing or fishing for overfished stocks?  
 
Reply:  
Egypt does not provide  any subsidies for the fish sector (fisheries – aquaculture).  
 
 We note (p112, para 4.34) overfishing is a challenge in the Mediterranean Sea. How does 
Egypt ensure that such subsidies do not contribute to overcapacity?  
 
Reply:  
Egypt does not provide any su bsidies for the fish sector (fisheries – aquaculture).  
 
SECTION 3  TRADE POLICIES AND PRACTICES BY MEASURE  
 
(3.3.3) Sanitary and phytosanitary (SPS) measures  
 
WT/TPR/S/367, Section 3.3.3, pp.86 -87, paras 3.164 -3.166  
 
Egypt's Report, at section 5.4, p.12, notes "the statutory establishment in 2017 of Egypt's National 
Food Safety Authority (NFSA), a body which is under transitional functionality in 2017 and which 
will be fully functional by 2019."  
 
The Secretariat's rep ort, at Section 3.3.3, paragraph 3.165, outlines in a footnote that, "Law No. 
1/2017 created a new authority to deal with food safety and its requirements. The idea is to 
centralize this work in one agency. Prior to the law, several ministries dealt with t he issue and 
there were some 2,000 laws, decisions and regulations related in one way or another to food 
safety." It also highlights that key laws concerning food safety require updating.  
 
Questions:  
 
 How will all of the current administrative functions of  the various responsible food safety 
bodies be amalgamated into the new Authority by 2019?  
 
Reply:  
 law No. 1 of 2017 on Enactment of National Food Safety Authority (NFSA) Clause (2) states 
that "The National Food Safety Authority established under the provisions of Article (2) of 
the attached Law, shall solely undertake the functions assigned to ministries; public 
organizations; government bodies; and local administration units in respect of control of 
food handling, in food safety related legislation w herever these functions are set forth in 
these laws, regulations and regulatory decrees, and shall prepare proposals for the 
amendment thereof. Additionally, the NFSA shall have the competencies specified in the 
attached Law."  
 Clause (3) states that "The N FSA shall perform the functions assigned thereto within a 
period not exceeding one year from the date of entry into force of this Law ( The law was 
published in Official Gazette – Issue No. 1 bis (C) January 10, 2017 and came into force 
from the day followi ng the date of the publication). Such period may be extended for a 
similar period by virtue of a decree issued by the Prime Minister.  
 Bodies referred to in Clause (2) shall continue to perform the functions assigned thereto as 
specified in the laws and re gulations pending performance of such functions by the NFSA.  
 The decrees and regulations issued for implementing the provisions of the laws related to 
food safety at the date of publication of the present Law shall remain in force pending the 
issuance of the regulations and decrees necessary for the implementation of the Law 
attached."  
 Clause (4) states that:"The employees working in the ministries; public organizations; 
government bodies; local administration units, and other competent bodies operating in  the 
field of food control and handling regulation, who shall be designated by virtue of a decree 
issued by the Prime Minister upon a proposal submitted by the NFSA Chairman of the Broad 
of Directors (BoD) following coordination with the ministers concerne d, shall be duly 
transferred to the NFSA. The transferred employees shall, at a minimum, retain their full job 
positions and financial benefits at the transferring date."  WT/TPR/M/367/Add.1  
 
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   What will be the impact of that amalgamation on the process for importation of food 
products?  
Reply:  
In addition to aforementioned legal text quoted from Law Number 1 of 2017 which refer to transfer 
of functions for the current bodies to the newly established National Food Safety Authority, Article 
(3) of the law identifies that among the functions of NFSA is Control food imported or locally 
produced; prevent handling of food unfit for human consumption, and combat fraud and deception 
therein.  
 
 What are Egypt's plans to modernise its food regulatory legislation, and in particular Law 
No. 10/1966 on Control of Food And its Handling?  
Reply:  
 All functions given to all ministries including those of Minister of Health in law No.  10/1966 
have been transferred to NFSA given Clause (2) of Law No. 1 of 2017.  
 In addition, Article (1) of Law No. 1/201 7 provides definitions including one for "food safety 
related legislation" Law No. 10/1966 is identified among the list of legislation.  
 Although Law No. 1/2017 is considered a tremendous modernization of the Egyptian food 
regulatory legislation, NFSA is w orking on drafting a new piece of legislation to be enacted  
by the Egyptian Parliament to further strengthen the Egyptian food regulatory legislation.  
 
SECTION 3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
(3.3.3) Sanitary and phytosanitary (SPS) measures  
WT/TPR/S/367, Section 3.3.3, p.86 -89, paras 3.164 -3.183  
 
We note that Section 3.3.3 on sanitary and phytosanitary (SPS) measures contains a reference to 
shelf life for non -food commodities but not for food commodities. We are aware, however, that the 
current application of mandatory expiry periods across whole commodity categories is not always 
consistent with international standards (e.g. frozen fish) and places a prohibitive barrier to trade, 
especially from distant nations and particularly when coupled w ith the requirement for a minimum 
50% of shelf life remaining when a product reaches the market.  
 
Questions:  
 
Egypt's Report, at section 5.4, p.12, notes "the statutory establishment in 2017 of Egypt's National 
Food Safety Authority (NFSA), a body which is  under transitional functionality in 2017 and which 
will be fully functional by 2019."  
 
 What are the current shelf life requirements for importation of food products?  
Reply:  
 The shelf life of food products is currently regulated by the following two mandatory 
Egyptian standards :  
a- shelf life for food products NO : 2613 -1 -2008 part 1 " General requirements "  
b- shelf life for food products NO : 2613 -2-2008 part 2 " shelf life".  
 
 With the establishment of NFSA, will Egypt review its mandatory expiry  periods on food 
commodities and align shelf life requirements with international standards?  
Reply:  
 The first function given to NFSA by Article (3) of Law 1/2017 is to "Establish mandatory 
criteria (technical regulations) for food safety, in accordance with the applicable international 
criteria, provided that these criteria are not in contradiction with the national requirements. 
The NFSA Board of Directors shall issue a decree specifying such criteria." Based on this 
legal text all mandatory criteria including that on shelf life shall be issued by NFSA.  WT/TPR/M/367/Add.1  
 
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  SECTION 4  TRADE POLICIES BY SECTOR  
(4.2.3) Electr icity 
WT/TPR/S/367, Section 4.2.3, p.120, paras 4.68 -4.76 
 
Section 4.2.3 of the Secretariat's Report, page 120, para 4.72, notes that "Egypt continues to be 
committed to a gradual phase -out of all energy subsidies via annual price increments so as to 
adjus t energy prices to cost recovery levels". Summary of the Secretariat's Report , paras 3, 9, 
27 acknowledge the heavy toll energy subsidies have had on Egypt's public finances and the 2014 
reform programme aimed at stimulating economic growth.  
 
Question:  
New Zealand welcomes Egypt's actions over recent years to phase -out subsidies on fossil 
fuels.  Given the benefits of fossil fuel subsidy reform to unlock investment opportunities as 
identified in Egypt's report (WT/TPR/G/367), is Egypt considering further measures beyond 2022 
to ensure the enduring elimination of harmful fossil fuel subsidies?  
Reply:  
N/A.  WT/TPR/M/367/Add.1  
 
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  AUSTRALIA  
Replies to questions from Australia  
 
Report by the Secretariat (WT/TPR/S/367)  
Summary  
Page 11, paragraph 23  
 
The report states that Egypt has about 150 state -owned enterprises engaged in activities in a 
number of sectors, including petroleum, transportation, telecommunications, post and industrial 
activities and three state -owned banks own some 40% of the banking  sector's assets.  
 
Question 1  
Are there any plans to open up particular services sectors to further participation by foreign 
service suppliers, including through privatisation of existing SOEs, to increase competition and 
generate economic growth?  
Reply:  
Various forms of partnership between SOEs and the private sector are welcomed, some of which 
have already been applied in several cases, including:  
 Leasing production lines.  
 Partnership through revenue -sharing agreements.  
 Establishing new Law 159 joint ven ture companies to carry out restructuring.  
 Capital increase to be subscribed to by private sector.  
 Stock flotation for stakes in SOEs under Law 203. Currently, an action plan has been 
agreed between Ministry of Finance and Ministry of Public Business Secto r to sell minority 
stakes in 10 companies in the stock market.  
 
Report by the Secretariat (WT/TPR/S/367)  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.2 Special Economic Zones  
Page 77, paragraph 3.3.1.2  
 
The report notes that Special Economic Zones (SEZ) Law No. 83/2002, as amended by Law No. 
27/2015, provides for the creation of SEZs.  
 
Question 2: Can Egypt provide an update on plans for any new SEZs?  
Reply:  
There are two economic zones of a special nature : 
1. The economic zone of the Suez Canal and its location at the Suez Canal.  
2. The economic zone of the Golden Triangle.  
 
Report by the Secretariat (WT/TPR/S/367)  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.1 Agriculture  
4.1.1.2 Policy Developments  
4.1.1.2.1 Overall strategy  
Page 106, Paragraph 4.8 -10 
 
The report outlines the intervention in the agricultural market by the State including "purchases 
crops such as wheat from farmers through the General Authority of Supply of Commodities" and 
that "Egypt provides state support for production" with actual spending for direct farming support 
of about "US367.8  million for support to farmers, including the partial subsidization by the 
Government of pesticides for cotton production".  
 
Question 3: In Egypt's recent domestic su pport notification (G/AG/N/EGY/3), only two measures 
are notified – a pest control subsidy and investment subsidies to low -income producers.  Can Egypt 
explain the disparity between this notification and the measures discussed in the Secretariat 
report?  WT/TPR/M/367/Add.1  
 
- 91 - 
 
  Reply: 
The responsible department for notification in the Ministry of Trade and Industry is currently taking 
stock of the entire trade related measures in the area of Agriculture including domestic support 
measures to assess them, prepare the necessary notifi cations and submit them i n the Committee 
in Agriculture.  
 
However, in preparing the notifications including G/AG/N/EGY/3 there have been a  
a number of challenges including inter alia:  
- The lack of availability of integrated information database in the rel evant authorities.  
- The lack of human and technical capacities in the relevant authorities to aggregate the 
data and classify it according to the different boxes in the Agreement on Agriculture.  
 
Question 4: Can Egypt provide further detail on the measures  outlined in the Secretariat report 
and the cost of these measures?  
Reply:  
Report by the Secretariat (WT/TPR/S/367)  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.1 Financial services  
4.4.1.1 Banking  
Page 126, paragraph 4.101  
 
The report states that during the period under review the number of banks has declined and Egypt 
has not delivered any new banking licences since 2009. The report also states that there is a policy 
of consolidation of existing banks.  
 
Question 5:  
The policy of consolidation appears to  have already significantly reduced the number of banks in 
Egypt. Will this policy come to an end or is there still a need to continue it?  
Reply:  
Historically, there was a need to consolidate some banks with low capital base into larger banks to 
be in lin e with law 88 for year 2003 in terms of minimum capital base and also in line with 
minimum capital adequacy ratio as per Basel requirement.  
Currently banks are robust, well capitalized and resilient against any shocks with capital adequacy 
ratio of 14.7%, banking sector continued to witness reasonable growth in both credit and deposits 
playing a crucial role in the country's overall growth and developments.  
Current number of banks (38 bank, 3025 branches) is sufficiently serving economy and 
population. Howe ver, granting new bank license is subject to authorities' approval in order to 
continue having the banking sector contributing positively to the economy and social welfare of the 
country.  
 
Report by the Secretariat (WT/TPR/S/367)  
4 TRADE POLICIES BY SECTO R 
4.4 Services  
4.4.1 Financial services  
4.4.1.4 Pension funds  
Page 130, paragraph 4.121  
 
The report states that Egypt has numerous pension funds, but they are not open to foreign 
investment because of the nature of private pension funds in Egypt.  
 
Question 6: Can Egypt provide further information about why the pension fund market is not 
open to foreign participation?  
 WT/TPR/M/367/Add.1  
 
- 92 - 
 
  Reply:  
The pension fund market in Egypt is not open to foreign participation, because of the following 
reasons:  
 
This market is funded by the contributions of both the participants and the Entity "which is called 
the work owner" provided that this entity exists in Egypt.  
 
The benefits of the private insurance pension funds are for their members only who are natural 
persons and live in Egypt, even if they are foreigners. In this situation, the foreigners as well as 
the domestic participants must have a permanent or a contractual working relationship with the 
entity which each Pension Fund belongs to.  
 
According to Ar ticle No. (1) of Law No. (54) Of 1975, the Private Insurance Pension Fund in Egypt 
is considered as a specific pool of individuals who work in one entity, or as an association between 
them, so Egyptians who do not work in this entity cannot participate in this fund.  
 
According to Law No. (54) Of 1975 also, the person who participates in the private insurance 
pension fund of any entity must receive his /her benefits according to the terms and conditions of 
this private pension fund.  In other words, each private insurance pension fund has its own 
features, so the terms and conditions to get the benefits could differ from one to another . 
 
In Egypt, private insurance pension funds are separate from the Governmental social schemes. 
The regulatory body of the private insurance pension funds is the Financial Supervisory Authority 
(FRA); previously the Egyptian Financial Supervisory Authority (EFSA). Whereas the regulatory 
body of the Governmental social schemes is the Ministry of Social Solidarity . WT/TPR/M/367/Add.1  
 
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  REPUBLIC OF MOLDOVA  
Replies to questions from the Republic of M oldova  
Secretariat report ((WT/TPR/S/367)  
Para 2.23. As concerns trade facilitation, Egypt notified its category A commitments under the 
Trade Facilitation Agreement (TFA) in December 2014.3 The TFA was approved by Egypt's 
Parliament and ratified by the Egyptian President in June 2017. However, as at late October 2017, 
Egypt had yet to deposit in the WTO its inst rument of acceptance of the TFA.  
Question 1: When it is expected Egypt to deposit its instrume nts of acceptance of the Trade 
Facilitation Agreement?  
Reply:  
Great efforts were exerted to ratify the TFA, the Trade Facilitation Department (TFD) under the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry, went through all the 
complicated domestic procedures required for the completion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Review Committee at the 
Ministry of Foreign Affairs. TFD responded to all inquiries related to the ag reement and its 
provisions, explained the vitality of TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessions of the Economic Committee of the 
parliament and hence presented to the plenary session that ap proved to ratify TFA on 
22 June 2017 and ratified by Pr esidential Decree No. 149/2017.  
 
As for depositing the instrument, Egypt already communicated with the WTO Secretariat and the 
legal department concerning TFA instrument of acceptance. Egypt is about t o deposit the 
instrument in accordance with the model document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be attached or annexed to the Marrakech Agreement.  
 
Para 2.49. In February 2015, Egypt announced that the members of the Eurasian Economic Union 
(Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia) had agreed to commence free trade zone 
negotiations with Egypt. This agreement is expected to allow Egyptian goods to be exported to 
these countries free of c ustom duties. Although members of the Eurasian Economic Union agreed 
to start the negotiations in December 2016, as of November 2017 they had not yet begun.  
 
Question 2 : Can Egypt provide any additional information on the actual beginning of negotiations 
on free trade zone with the Eurasian Economic Union? Please specify when Egypt is intending to 
make an early announcement notification to WTO members on the initiation of negotiations.  
 
Reply:  
Formal negotiations between Egypt and the Euro -Asian Union have not started yet. It is 
expected to take place during 2018 according to the ongoing deliberations between both 
sides. Notification to WTO will be made once a concrete decision is taken in this regard.  
 
Para 3.19. Customs release time varies from two hours to more than two weeks depending on the 
size and sensitivity of the consignment. In 2016, 22.5% of the goods imported were released by 
Customs in four days to one week and only 10% in less than two hours (Table 3.1). The latter 
compares unfavourably with t he release times achieved in 2014 and 2015. Moreover, if time 
allocated for the GOEIC's quality inspection is included, the release time becomes even longer: 
only 1.3% of customs declarations were released within two hours in 2016, while 31% took from 
four days to two weeks to be released and 15.4% took more than two weeks. Also, it has been 
reported that sometimes consignments are held in warehouses for periods of up to several 
months. The authorities have indicated that this refers mainly to dual -use chem icals, for which 
release of some consignments is delayed for several months. In this regard, specific instructions 
were issued from the security authorities requiring the analysis of these chemicals during 2014 
and 2015. Nevertheless, following consultatio ns among the GOEIC, the security authorities and the 
Egyptian Chemical Administration, it was agreed to speed up the release process of some of those 
consignments according to specific criteria. This significantly decreased the time of holding such 
consign ments. The challenge will be to seek to reduce further these release times as the risk 
management system is improved and other trade -facilitating measures are adopted.  WT/TPR/M/367/Add.1  
 
- 94 - 
 
  Question 3 : How does Egypt explain the negative trend in the customs release time over t he 
2014 – 2016 period, and is it expected to improve with the implementation of the TFA?  
Reply:  
Currently Egypt is implementing the following plan to enhance the time -periods for customs 
clearance and hence to promote and trade facilitation:  
1- Signing a prot ocol between the ECA and the General Organization for Export and Import 
Control (GOEIC) regarding expediting the shipments of the AEOs.  
2- Using X -ray scanning all over the customs locations to facilitate customs control and save 
time  
3- A ministerial council f or trade facilitation in Egypt ( EgyTrade) has been established with 
the objective of creating a national single window system. Accordingly, a team of Egyptian 
experts has finalized a study on the current business processes: procedures and 
documents, for th e purpose of business process reengineering to overcome any weakness 
that could constitute a hindrance to trade facilitation. Finally, the ECA team is working on 
the simplifying the procedures and rationalizing the documents used in the transactions.  
4- The ECA is undergoing the process of analyzing manifest data in order to enhance the 
efficiency of risk management and select high risk consignments and reduce the 
percentage of inspection and examinations.  
5- Finally, the ECA is reviewing the possibility of unif ying risk criteria between the ECA and 
the GOEIC.  
 
The implementation of the TFA will achieve significant gains for movement of goods, reduce the 
number of documents required for exportation and importation, ensure circulation of messages 
exported and impo rted easily within ports and to ensure the validity and integrity of these 
messages, reduce the cost and shorten the time. These elements affe ct positively the time release.  
 
It is expected that TFA implementation positive outcomes will encourage Egypt to measure and 
publish average release time of goods periodically and in a consistent manner which will improve 
the rank of Egypt in international reports published by World Bank & OECD.  
 
Para 3.34. Between January 2013 and September 2017, 6,675 decisions of the ECA were 
appealed at both the primary and the higher arbitration levels, most of which concerned valuation 
(Table 3.3). About two thirds of the appeals were settled in primary arbitration. Most cases of 
arbitration dealt with imports of clothing and te xtiles, tyres, household articles and electric cables.  
 
Question 4 : Can Egypt clarify frequency of appeals concerned valuation, as well as its 
concentration on certain sectors?  
 
Reply:  
N/A. 
 
Para 3.67 Egypt has not submitted any notifications with respect to its import licensing regime to 
the WTO. The authorities indicated that import prohibitions and restrictions are maintained for 
economic, environmental, health, religious, safety, sanitary, and  phytosanitary reasons.  
 
Question 5 : Could Egypt give additional clarification for the so called economic reasons with 
respect to its import licencing regime? Could Egypt present its Notification under article 1.4(a) 
and/or 8.2(b) of the Agreement on Impor t Licensing procedures, Notification under article 5.1 - 
5.4 of the Agreement and Notification under article 7.3 of the Agreement on Import Licensing 
procedures.  
 
Reply:  
The general principle is that imports are not subject to import licensing procedures. However, it 
may be applied to ensure the appropriate application of SPS, national security and environmental 
measures.  
 
We are currently taking stock of all the trade related regulations that have not been previously 
notified in order to prepare and submit  the appropriate notifications in the context of the relevant 
WTO committees. However, this task requires huge human and technical capacities.  
 WT/TPR/M/367/Add.1  
 
- 95 - 
 
  Para 3.75 Annex 8 of the Regulations contains the list of products subject to quality control when 
imported and the inspection fees imposed on them (Section 3.4.2.3 and Table A3.3). The controls 
are performed by the GOEIC. During the period under review, Annex 8 was amended by Ministerial 
Decree No. 169/2009 to add a list of products and change the inspection fees f or a number of 
products already included in Annex 8. Ministerial Decrees No. 305/2010, No. 784/2010, 
No. 219/2012 and No. 818/2015 also added new HS codes to the list of products subject to GOEIC 
inspection. Inspection fees are not significant; Table 3.17 contains examples of them.  
 
Question 6 : Could Egypt explain the rational for mandatory quality control inspections for the 
selected products?  
 
Reply:  
Selected products are subject to quality control as they touch the safety of the consumers. 
Furthermore, d ue to the lack of a robust market surveillance mechanism in Egypt, goods in Annex 
8 are subject to inspection to ensure their compliance with Egyptian approved standards and 
regulations.  
 
Para 3.209  Egypt is not a signatory to the WTO plurilateral Agreemen t on Government 
Procurement.  
 
Para 3.210  Egypt has no central procurement body; each government agency has its own 
procurement department, which examines its own tenders and procedures, in accordance with the 
procurement law (see below) and its Executive R egulations. Procurement committees are 
established by the competent authority in each entity for each procurement transaction, to ensure 
the consistent and correct application of procurement rules and procedures. Each procurement 
transaction is conducted t hrough these committees; the participation of a Ministry of Finance's 
representative in each procurement transaction's technical and financial evaluation committee is 
mandatory if the value of the purchase exceeds LE 250,000. If the value exceeds LE 500,00 0, 
participation by competent legal counsel from the Council of State is also required.  
 
Question 7: Does Egypt consider to accede to government procurement pact in the nearest 
future?  
Reply:  
- In the time being, Egypt is not considering the idea of becoming a party of the WTO Plurilateral 
Agreement on government procurement.  
 
Para 3.214 Procurement procedures under the Tenders Law require that contracts are awarded to 
the lowest priced technical ly acceptable bid. Purchases financed by international financial 
institutions, where specified criteria are considered, are awarded in accordance with the 
institutions' relevant procedures. In all procurement, a 15% price preference is given to Egyptian 
products. Egyptian subsidiaries of foreign companies can benefit from the preference. Additionally, 
pursuant to the Small and Medium Sized Enterprises Development Law No. 141/2004, SMEs must 
be given a 10% share of the entity's procurement.  
 
Question 8 : Is Egypt considering abolishing the existing preference of 15% given to Egyptian 
products in the foreseeable future?  
Reply:  
- Currently, there are no plans to review these preferences.  
 WT/TPR/M/367/Add.1  
 
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  UKRAINE  
Replies to questions from  Ukraine  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  (WT/TPR/S/367)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.1 Customs procedures  
 
Page s 41 – 42 (paragraphs 3.10 – 3.14)  
The Report mentions Law No. 121/1982 establishing the Importers Register and describes new 
import registration regulations, which were issued in 2017 and changed the conditions for 
registration. In particular, Law No. 7/2 017 amended Law No. 121/1982, increased the minimum 
capital required to be registered as an importer, provides for some requirements concerning 
submission of cash guarantee or a letter of guarantee by importers, and stipulates stricter 
enforcement conditio ns and a number of penalties for violations by importers and so on. The 
Executive Regulations to these amendments were issued by Ministerial Decree No. 846/2017 on 1 
June 2017.  
 
Question 1: Would Egypt please kindly explain the policy rationale behind the introduction of 
these new import registration regulations?  
 
Reply:  
The rationale behind the amendments introduced to Law no.121 for the year 1982 on the 
importers registry is to regulate import activities in a manner that reduces the risks of the 
introduction of fake products into the market which negatively impacts both the investors, 
producers and consumers. Hence, Law No. 7/2017 amending Law No. 121/1982 on importers 
registry has stipulated certain requirements for those involved in import activities whether natural 
persons or companies to ensure their credibility.  
 
Question 2: Could Egypt describe provisions of Ministerial Decree No. 846/2017 of 1 June 2017?  
 
Reply:  
Ministerial Decree no.846/2017 provides the Executive regulation for Law121/1982 on Importers 
registry it comprise 21 articles dealing with :  
 The Definitions and General Provisions;  
 The required documents for Registration;  
 The commodity groupings according to the Harmonized System;  
 The Modification of the data in the import register;  
 The Renewal of registration in the import register;  
 Charges for r egistering and modification rendered services;  
 Publication;  
 Striking off and suspension from the importers registry;  
 The Final Provisions.  
 
Question 3 : How may these legislative amendments influence trading across borders, including 
time and cost to import  goods into Egypt?  
 
Question 4 : Does Egypt consider that establishing of such stricter enforcement conditions will not 
create additional registration obstacles to trade?  
 
Reply for 3 & 4:  
As explained the main purpose of the amendments including stricter e nforcement conditions is to 
ensure the credibility of those involved in import transactions and their compliance with the 
relevant trade regulations. This will have a positive impact on the business environment in Egypt 
including trade.  
 
Law 7/2017 has add ed a number of economic crimes for which if the importer is convicted he will 
be duly prohibited from registration and will be striked off the import registry. Law number 
121/1982 stipulated a number of crimes including those related to the Import and Expo rt Law, 
Customs Law and internal Trade Law . However, since then a number of economic related laws WT/TPR/M/367/Add.1  
 
- 97 - 
 
  have been issued thus it was imperative to add crimes related to consumer protection, Intellectual 
property rights, money Laundry, protection of competition.  
 
Question 5 : How do these new import registration regulations correspond with the procedure of 
registration of the factories qualified to export products to Egypt, set out in Ministerial Decree 
No 43/2016?  
 
Reply:  
Law 7/2017 and Ministerial Decree no.43/2016 are mutually exclusive. Whereas, the new 
importers registry law deals with those practicing the importing activity in Egypt, Ministerial 
Decree 43/2016 deals with the manufacturing plants and companies exporting to Egypt.  
 
Question 6 : Has Egypt revised provisions of Ministerial Decree No. 43/2016 in view of changing 
the registration conditions?  
 
Reply:  
The government of Egypt is regularly reviewing and assessing its measures and regulations that 
affect imports and trade in general with the ultima te goal of enhancing the business environment 
and facilitating trade. Hence, any changes in these measures and regulations are duly published.  
 
Question 7 : When does Egypt intend to submit notifications on its new import registration 
regulations?  
 
Reply:  
We are currently taking stock of all the regulations that have not been previously notified in order 
to prepare the appropriate notifications in the context of the relevant WTO committees. However, 
this task requires human and technical capacity building.  
 
3.1.4 Import prohibitions, restrictions, and licensing  
Page 59 (Para 3.67)  
The Report notes that "Egypt has not submitted any notifications with respect to its import 
licensing regime to the WTO."  
 
It was stated in Egypt's replies to the questions concer ning submission of notifications, raised to 
the previous review in 2005 that "Egypt plans to submit its notification, copies of its licensing 
legislation and its response to the import licensing questionnaire to the WTO Committee on Import 
Licensing Proced ures in September 2005". But no notifications have been submitted by Egypt since 
2005.  
 
Question 8: Could Egypt please elaborate, when it plans to submit notifications on import 
licensing requirements used in its trade regime according to the provisions of  the Agreement on 
Import Licensing Procedures?  
 
Reply:  
The general principle is that imports are not subject to import licensing procedures. 
However, it may be applied to ensure the appropriate application of SPS, national 
security and environmental measures . 
 
We are currently taking stock of all the trade related regulations that have not been 
previously notified in order to prepare and submit the appropriate notifications in the 
context of the relevant WTO committees. However, this task requires hug e human and 
technical capacities . 
 
Page 59 (Para 3.68)  
The Report says that "As a general rule, prohibitions and restrictions are maintained according to 
the Import and Export Law No. 118/1975, as well as the Executive Regulations of the Import and 
Export  Law, Ministerial Decree No. 770/2005 and its amendments. They are applied eq ually to all 
trading partners."  
 
According to Article 14 of the abovementioned document "Imported goods shall be released only if 
attached with a certificate of origin authenticated by appropriate authorities… ." Furthermore, the WT/TPR/M/367/Add.1  
 
- 98 - 
 
  certificate of origin of goods is also the subject to the procedure of consular legalization at Egypt's 
Embassy on the territory of exporting country.  
 
Question 9: Could Egypt please clarify the  basis on which the cost of the consular legislation of 
certificates of origin of goods is calculated?  
 
Reply:  
The determination of this value depends mainly on the approximate value of the service rendered, 
including papers, stamps, inks and equipment, as  well as the salaries of the staff assigned to this 
service. Besides, the cost of maintaining copies of such ratifications by the concerned authorities 
within the country - employees and agencies - for reference in case of any problem for the 
investor or t he economic actor in general should not be ignored.  
 
Thus, it is worth mentioning that it does not represent an indirect protection to domestic products 
or a taxation of imports and exports for fiscal purposes. Moreover, it represents a minimal margin 
of the transaction cost and it is collected by other many countries as well.  
 
Question 10 : Is the cost of the procedure similar for all countries?  
 
Reply:  
According to the answer previously mentioned, the cost of the procedure isn't similar due to the 
difference in the cost of service delivery in each country, which varies, as well, according to the 
cost of living.  
 
Question 11 : Would Egypt elucidate countries to which the principle of equal treatment is 
applicable concerning exemption from authenticati on in accordance with governing regulations?  
 
Reply:  
It is worth mentioning that Procedures for the certification of certificates of origin are fully 
compatible with provisions of the WTO Agreements.  
 
There are exemptions according to the agreements conclu ded by Egypt with trading partners. In 
this case, the Egyptian embassies or consulates abroad are not required to certify the certificates 
of origin and other accompanying documents for goods originating in the countries concluded trade 
agreements with the  Arab Republic of Egypt, taking into consideration the principal of equal 
treatment. This is in accordance with the decision of Ministers of Finance, and Trade and Industry 
No. 573 / 2008.  
 
Egypt collects the cost of consular certification services even fr om the Egyptians themselves, so 
that missions abroad can continue to provide these services, including the ratification of Egyptian 
certificates of origin.  
 
Question 12 : Ukraine would also be grateful if Egypt could provide more information on the 
grounds for such exemption under the principle of equal treatment.  
 
Reply:  
There are exemptions according to the agreements concluded by Egypt with trading partners. In 
this case, the Egyptian embassies or consulates abroad are not required to certify the certific ates 
of origin and other accompanying documents for goods originating in the countries concluded trade 
agreements with the Arab Republic of Egypt, taking into consideration the principal of equal 
treatment. This is in accordance with the decision of Minist ers of Finance, and Trade and Industry 
No. 573 / 2008.  
 
The ratification on the Ukrainian certificates of origin is done only on seals and signatures without 
any liability on the content of the certificate.  
 
Page 60 (Para 3.72)  
According to the Report "The importation of certain products is subject to specific administrative 
formalities."  
 WT/TPR/M/367/Add.1  
 
- 99 - 
 
  Question 13: Could Egypt please clarify the products which are subject to these specific 
administrative formalities, the rationale for its es tablishing, the essence of these formalities and 
the way in which they are applied?  
 
Reply:  
Prime Minister Decree No. 2992/2016 Organizing Imports of Strategic Agricultural Commodities 
and Ministerial Decree No.24/2017 set out the import permit requirement s for the strategic 
agricultural commodities wheat grains; corn used for the feed industry; and soya bean seeds. The 
importation of these commodities is prohibited without an import permit from the General 
Organization for Export and Import control (GOEIC)  however this does not apply to commodities 
imported by governmental bodies.  
 
GOEIC is the sole authority to inspect the consignments upon their arrival according to the 
specified Egyptian standards and the other requirements set by Plant Quarantine. The i mporter 
may request that the goods be subject to pre -shipment inspection, in this case preshipment 
inspection should be carried out by one of the international surveillance and inspection companies 
registered at the GOEIC. Yet, pre -shipment inspection does  not preclude inspection at the port of 
entry.  
 
Pages 64 - 65 (Para 3.77)  
The Report notes that "In accordance with Ministerial Decree No. 43/2016, imports for commercial 
purposes of a number of products will be allowed into Egypt only if they are produced by 
manufacturing plants or imported from the companies owning the tradema rks or their distribution 
centres registered in the relevant established Register in the GOEIC. Registration in, or striking off 
from this Register is decreed by the Minister of Foreign Trade who also has the authority to allow 
for an exemption from some o r all the requirements for registration."  
 
During the TBT Committee meetings in 2016 -2017 this decree raised lots of concerns about 
National Treatment and the fulfilment of Egypt's WTO Technical Barriers to Trade agreement 
obligations requiring non -discrim ination in application and that technical regulations are no more 
trade restrictive than necessary to achieve its legitimate objectives.  
 
Members had serious concerns regarding the non -transparent application process of the system as 
it remains unclear how  applications are evaluated. The measure taken by Egypt demands long and 
different approval procedures. The regulation imposes straight burden on exporters by directing 
them to many authorities to complete the approval process. In this respect, all the exc essive 
paperwork, numerous administrative windows and lengthy procedures increase the cost and time 
which certainly damage the competitiveness of exporter companies while inhibiting market access 
into the Egyptian market.  
 
Question 14: Could Egypt please k indly clarify implementation mechanism of Ministerial Decree 
No. 43/2016 regarding the Amendment of the Rules Organizing the Registration of the Factories 
Qualified to Export Products to Egypt and its compliance with the TBT Agreement?  
 
Reply:  
On the imple mentation m echanism of Ministerial Decree N o. 43/2016, applicants whether 
manufacturing plants or trademarks owning company through their legal representatives 
/authorized person/agent submit the required set of documents as clearly stated in the Ministeri al 
Decree and notification G/TBT/N/EGY/114 to the General Authority for Export and Import Control 
(GOEIC). Once the verification of submitted documents is done by (GOEIC), the Minister 
competent for Foreign Trade issues the relevant decre e stipulating the registration.  
 
The decree is in compliance with the TBT agreement as it allows for recognition of certificates that 
the concerned plant applies a quality control system issued by conformity assessment bodies 
accredited by entities that are in turn accredit ed by ILAC or IAF. Furthermore, it was intentional 
not to require any specific quality control system certificate in order not to create any unnecessary 
barrier to trade. Moreover, it is applied in a transparent and non -discriminatory manner.  
 
Question 15:  Could Egypt inform on the average time for companies to undergo registration 
procedure, starting from submission of application documents till approval of registration and 
possibility to export products to Egypt?  
 WT/TPR/M/367/Add.1  
 
- 100 - 
 
  Reply:  
The time limit for the registration process is subject to the verification of documents. Once the 
verification of submitted documents is done by the General Organization for Export and Import 
Control (GOEIC), the Minister competent for Foreign Trade issues the relevant decree st ipulating 
the registration within an average period of two -three weeks.  
 
Question 16 : What difficulties and reasons of possible delays do companies often experience 
during the registration procedure?  
 
Reply:  
The difficulties that may lead to delays include:  
- Suspicion in the validity of documents subject to objective, visual and material evidence.  
- Verification of the validity of documents may entail requiring further documentation from 
the registrant or contact with the Egyptian Embassies and Commerci al missions abroad.  
- The submission of an uncomplete set of docume nts as specified in the Decree.  
 
Question 17 : Would Egypt describe the conditions and/or circumstances under which the 
exemption from the requirements of registration could be allowed by the Minister of Foreign 
Trade?  
 
Reply:  
The power of the Minister competent for Foreign Trade to provide an exemption from all or part of 
the registration requirements stipulated in Ministerial Decree no. 43/2016 is a legal provision to 
allow for the appropriat e flexibility that might be required in case of urgent and necessary public 
interest such as those related to the health of people. Examples of products that might merit such 
exemption are infant milk for premature babies and shoes for diabetics. Decisions  regarding such 
cases are taken on a case -by-case basis.  
 
Question 18 : How does Egypt appreciate the impact of such registration requirements on the 
trade conditions for domestic and foreign suppliers and competitiveness of their products on 
Egyptian marke t, considering that according to legislation registration process can be conducted 
through a legal representative or an authorized agent in the territory of Egypt?  
 
Reply:  
It is Egypt's view that the registration requirement is non -trade restrictive becaus e the 
manufacturing plant or the trademark owning company may authorize any of the 
importers/trading companies/intermediaries it deals with to carry the registration process. It is 
also worth mentioning that once the manufacturing plant has been registered  and the company 
owning the trademark has fulfilled the registration requirements, any intermediary or trading 
company can import the relevant products. In other words, importation is not confined to the 
authorized person who ha s conducted the registration  process.  
 
Question 19 : Is the list of  companies, that have completed the registration procedure, publicly 
available (if yes, please, give appropriate link)?  
 
Reply:  
The approved manufacturing plants and the companies owning the trademarks that have been 
approved are duly informed of their registration. Furthermore , the list of companies is made 
available at GOEIC's database for reference by economic operators.  
 
Question 20 : Could Egypt also indicate if it has any plans to reconsider the existing approach t o 
the relevant system of registration of the factories qualified to export products to Egypt or it has 
already amended Decree 43/2016 in light of the principles and obligations laid down in the TBT 
Agreement to avoid unnecessary obstacles to trade?  
 
Question 21 : If not, could Egypt please indicate when it intends to do so?  
 
Reply:  
The government of Egypt is regularly reviewing and assessing its measures and regulations that 
affect imports and trade in general with the ultimate goal of enhancing the bu siness environment 
and facilitating trade. Hence, any changes in these measures and regulations are duly published.  
 WT/TPR/M/367/Add.1  
 
- 101 - 
 
  3.1.5 Anti -dumping, countervailing, and safeguard measures  
3.1.5.1 Legal and institutional framework  
Page 65 (Para 3.79)  
The Report states that "Once the request is accepted, the Central Department conducts the 
respective investigation and submits a preliminary report to an Inter -Ministerial Advisory 
Committee, with its recommendations. According to the authorities, there is no statutory time  
frame for the submission of the preliminary report. The Advisory Committee takes a decision 
based on these recommendations and on what it considers to be the interests of Egypt; it must 
present its recommendations to the Minister of Trade and Industry wit hin ten days of receiving the 
Central Department's report. The Minister may accept or reject the recommendations m ade by the 
Advisory Committee."  
 
Question 22: Could Egypt please clarify how the Inter -Ministerial Advisory Committee is 
composed?  
 
Reply:  
The Inter -Ministerial Advisory Committee is composed according to the Ministerial Decree 
978/20012 amended by the Ministerial Decree 7/2017.  
 
Question 23 : Who are the members of this Committee?  
 
Reply:  
The Advisory Committee includes:  
Head of the Trade Re medies Sector  
Head of the Foreign Trade Sector.  
Head of the Customs Authority  
Head of the Consumer Agency  
Head of the General Authority of Import and Export Control.  
Counsellor of the legal Affairs of the Minister of Trade and Industry  
Representative of Mi nisters:  
Representative of the Ministry of Finance  
Representative of the Ministry of Army Production  
Representative of the Ministry of Investments  
Representative of the Ministry of Agriculture  
Representative of Business Associations:  
Head or Deputy Head of the Chambers of Commerce  
Head of the Federation of Industries or its representative  
Counsellors of the Minister of Trade and Industry for Trade Affairs.  
The Head of the Advisory Committee can continue to invite experts to the meetings even though 
they have no voting rights.  
 
Question 24 : Could Egypt explain how the decision is taken by the Inter -Ministerial Advisory 
Committee, by consensus or majority?  
 
Reply:  
The decision is taken by majority.  
 
Question 25 : Could Egypt explain what procedures are to be  followed when Minister rejects the 
recommendations made by the Advisory Committee?  
 
Reply:  
The Trade Remedies Sector (Investigating Authority) must submit its report (either preliminary or 
final report) to the inter -Ministerial Advisory Committee, with it s recommendations. The Advisory 
Committee decides based on recommendations made by the Investigating Authority and on the 
interests of Egypt; it must present its recommendations to the Minister of Trade and Industry. The 
Minister may accept or reject the r ecommendations made by the Advisory Committee.  
 
In case the Minister rejects the recommendations made by the Advisory Committee, the 
Investigating Authority adopts the recommendation of his excellency.  
 
According to Article (10) of Regulation of Law No. (1 61) of 1998 "The Minister of Trade and 
Industry may accept or reject the recommendations of the Advisory Committee…...". and WT/TPR/M/367/Add.1  
 
- 102 - 
 
  Article  (85) of the referred Regulation "The Minister of Trade and Industry may accept or reject the 
recommendations of the Advisor y Committee…..".  
 
Question 26 : Would Egypt please explain whether the Minister could take an affirmative decision 
to impose measure if the Inter -Ministerial Advisory Committee does not recommend imposition of 
the measures?  
 
Reply:  
The Minister could take a n affirmative decision to impose measure if the Inter -Ministerial Advisory 
Committee does not recommend imposition of the measures.  
 
According to Article (10) of Regulation of Law No. (161) of 1998 "The Minister of Trade and 
Industry may accept or reject t he recommendations of the Advisory Committee…...".  
And Article (85) of the referred Regulation "Rejection of an application, initiation or termination of 
investigation, provisional or definitive measures or acceptance of a price undertaking or any other 
measures shall be upon a decision by the Minister of Trade and Industry and upon a 
recommendation by the Advisory Committee …."  
 
Question 27 : Given that Egypt makes publication of notice on the trade remedies issues in the 
Egyptian Official Gazette, would Egypt please provide direct link to the relevant directory on the 
website where such publications can be found?  
 
Reply:  
The notice on the trade remedies issues could be found at:  
-The official web site of the investigating authority  http://www.tas.gov.eg  
-The official web site of the Ministry of Trade and Industry  http://www.mti.gov.eg/  
-The Egyptian Gazette is available online at  http://www.alamiria.com/  
 
3.1.5.2 Anti -dumping and countervailing measures  
Page 66 (Para 3.84)  
The Report stated that "After a final determination is made, final measures may be taken for a 
period not exceeding five years from the date of their publication. There are sunset review 
clauses: the investigating authority is mandated to carry out a review of the measure on its 
initiative or upon request by a concerned party. The review must commence six months before the 
expiry of the five year period from the date of the imposition of definitive dut ies and must be 
concluded within 12 months of the date of initiation. The investigating authority shall review 
whether the expiry of the duty is likely to lead to continuation or recurrence of dumping and 
injury. The duty remains in force pendi ng the outco me of such review."  
 
Question 28:  Would Egypt please clarify whether the paid during the expiry review duty would be 
reimbursed in case when in result of expiry review it is decided to terminate measures?  
 
Reply:  
The paid during the expiry review duty woul dn't be reimbursed in case when in result of expiry 
review it is decided to terminate measures.  
 
Question 29 : Could Egypt please clarify when the next 5 -year period of imposition of anti -
dumping measures starts in cases if measures are extended in result of the expiry review (the 
next 5 -year period of imposition of anti -dumping measures starts on the date when investigation is 
completed or next day following previous 5 -year period)?  
 
Reply:  
The imposition of anti -dumping measures starts on the next day fol lowing previous 5 -year period 
in cases if measures are extended in result of the expiry review.  
 
Question 30 : Would Egypt please describe the methodology used by investigating authority in the 
framework of expiry review when it should be demonstrated that the expiry of duty would lead to 
continuation or recurrence of dumping and injury according to the Article 11 of Antidumping 
Agreement.  
 
 
 WT/TPR/M/367/Add.1  
 
- 103 - 
 
  Reply:  
The investigating Authority examines the Continuation or Recurrence of dumping and injury 
according to the Article 11 of Antidumping Agreement as following:  
 
1-Continuation:  
-Dumping: calculation of dumping margin for imports using the same methodology of the original 
investigation.  
 
-Injury: is there a threat of injury/ injury during the investigation period of the expiry review?  
Injury analysis similar to one undertaken during the original investigation, i.e. Considered factors: 
volume, price trends, import and export activity…  
 
2-Recurrence:  
Would removal of the measures lead to a recurrence of dumping and/or give rise to material injury 
or a threat of material injury?  
 
Dumping: Is it possible that if measures are allowed to lapse, dumping would re -occur?  
Injury: Would injury likely reoccur?  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary an d phytosanitary (SPS) measures  
Page 87 (Para 3. 171)  
According to t he Report "Decree No. 1647/1997 establishes that importers of live animals must 
submit an import request to the GOVS specifying the number and type of animals to be imported, 
the country of origin, the shipping port, the expected arrival date, and the mean s of 
transportation."  
 
Question 31: Could Egypt please kindly provide the web -link through which the text of Decree 
No. 1647/1997 (in English) can be accessed?  
 
Reply:  
Ukraine can access the text of the required Decree No. 1647/1997 through the official 
channels from Egypt's SPS enquiry point which is present in the Department of the 
Foreign Agricultural Relations.  
 
Page 88 (Para 3. 173)  
It is stated in the Report that "Importers of meat products and chicken must provide a number of 
certificates before the product is accepted; these include: a slaughter certificate proving that the 
animal was slaughtered in accordance with the Islamic ritu al (halal), issued by an entity approved 
by the GOVS through the Commercial Office of the Egyptian Embassy or Consulate in the country 
of origin; a veterinary certificate, issued in the country of origin, confirming that any animal used 
in the making of th e product was examined before and after slaughter, and is free from contagious 
diseases; and a certificate of origin indicating the exporting country, number of parcels, type of 
meat, date of inspection, production and expiration dates, name of the exporte r, port of entry, and 
name of the consignee. Frozen meat products require a further certificate, confirming that a 
temperature of –18°C was maintained before exportation and that each piece was wrapped in 
accordance with accepted international packaging st andards."  
 
Question 32: Could Egypt please clarify, if there are established forms of veterinary certificates 
for products of animal or plant origin?  
 
Reply:  
There are no established forms of veterinary certificates for products of animal origin 
because the forms of the veterinary certificates differ according to the health status of 
the exporting countries, so the exporting countries send the model of their ve terinary 
certificates to the Central Administration of Veterinary Quarantine to review them for 
comment before approval.  
 
Question 33 : If so, Ukraine would appreciate if Egypt could provide appropriate web -link and 
English version of such forms.  
 
 WT/TPR/M/367/Add.1  
 
- 104 - 
 
  Reply:  
Ukraine can send the model of their veterinary certificates of the products of animal 
origin through the official channels to Egypt's SPS enquiry point which is present in the 
Department of the Foreign Agricultural Relations to send them to the Central 
Administration of Veterinary Quarantine to review them.  
 
Page 88 (Para 3. 175)  
The Report mentions that "Ministerial Decree No. 204/2015 lists food additives allowed in Egypt. 
The Decree was an important step in the modernization of Egypt's sanitary legislation since it 
contains all types of food additives, compared to the previous l egislation that allowed only three 
types of additives (colours, preservatives and antioxidants). Moreover, the list of additives is to be 
updated regularly."  
 
Question 34: Could Egypt please kindly provide the web -link and English version of the text of 
Ministerial Decree No. 204/2015?  
 
Reply:  
Preventive Medicine Sector – Ministry of Health, as it is the regulatory body responsible for issuing 
the mentioned ministerial decree No 204/2015 provides following link for the text of Ministerial 
Decree No. 204/2015 in Arabic version.  
http://www.mohp.gov.eg/UserFiles/Userfiles/9/54d0f107 -9e2f-44f2-a1bc-ad9584bc9ff9.pdf . 
 
3.3.6 Government procurement  
Page 94 (Para 3.209)  
The Report notes that "Egypt is not a signatory to the WTO plurilateral Agreement on Gove rnment 
Procurement."  
 
Question 35: Does Egypt have any plans to join the WTO Agreement on Government 
Procurement and what steps, if any, has the Government of Egypt taken in this regard?  
 
Reply:  
In the time being, Egypt is not considering the idea of becoming a party of the WTO Plurilateral 
Agreement on government procurement.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.1 Agriculture  
4.1.1.2 Policy developments  
4.1.1.2.2 Support to farming  
Page 108 (Para 4.19)  
The Report states that "…the GASC buys a share of the wheat crop at administered prices so as to 
guarantee a revenue to farmers and orient planting decisions, as well as to build up public stocks 
of basic foodstuff to be pr ocessed and sold to the general population at subsidized prices. The 
State fixes the guaranteed price and purchases the crop from farmers before the planting date, so 
that the farmer can make a decision on whether or not to produce wheat. Table 4.8 shows t he 
evolution of the farm gate (guaranteed) price for wheat, the price of imported wheat and the 
quantity purchased from farmers by the Government through the GASC in the 2005 -16 period. The 
authorities have indicated that purchases from the Government repr esent some 35% of the total 
crop. Also, the GASC is responsible for close to half of total imports, which are made for the 
subsidized wheat programme. A FAO study shows that the Government's share of imports has 
been declining, partly as a result of the in creased procurement of domestic wheat."  
 
4.1.1.2.4 The Food Subsidy Programme  
Page 111 (Para 4.27)  
Table 4.11 shows the evolution of ration card subsidies devoted to the Food Subsidy Programme. 
As can be seen, such subsidies increased fivefold over the pe riod between 2006/07 and 2015/16.  
 
Question 36: Could Egypt please give an explanation why information on such domestic support 
measures has not been notified?  
 
 
 WT/TPR/M/367/Add.1  
 
- 105 - 
 
  Reply:  
Currently, we are taking stock of all the trade related measures in the area of Agriculture to assess 
them, prepare the necessary notifications and submit them in the Committee in Agriculture. We 
recognize that the food subsidy program fall under the green  box and hence should be notified 
accordingly.  
 
However, taking stock of those measures is no easy task given the lack of availability of integrated 
information database in the relevant authorities.  
 
4.1.1.2.3 Market access  
Page 110 (Para 4.24)  
The Report notes that "Egypt currently imposes export duties on sugar and feed components. 
Pursuant to Minister of Commerce and Industry Decree No. 469/2017 of 30 March 2017, a fee of 
LE 3,000 per ton was imposed on exports of sugar. Pursuant to article 7 of L aw No. 118/1975, the 
exportation of certain commodities can be prohibited or restricted by ministerial decree under 
certain circumstances. The Government did so f or rice between 2008 and 2014."  
 
Question 37: Could Egypt please clarify to what extent the im plemented measures have 
contributed to the achievement of the goals set by these normative acts?  
 
Reply:  
The Egyptian market had faced shortage in the sugar supply so after imposing the export taxes on 
sugar, the problem has been solved and the prices of sugar went down.  
 
Question 38 : How export duties on sugar and feed components have influenced the sugar 
industry and consumers?  
 
Reply:  
On the consumer side, the sugar prices had decreased in the local market, and the sugar is 
available in the domestic mar ket with reasonable prices, after the country has experienced a 
period of shortage in sugar and it was sold in the black market.  
 
Export duties on Feed components have allowed for the provision of local meat and poultry 
products at appropriate prices to th e consumers.  
 
On the industry side, export duties do not impede exports as an appropriate margin of profit is 
taken into account in the context of study conducted to determine the appropriate export duty as 
per Article 8 of Law 118/1975 on Exports and Impo rts which stipulates that Exports restrictions 
should be imposed in a way that doesn't affect the profits of the exporter.  
 
Question 39 : Would Egypt also explain under what "certain circumstances" the exportation of 
certain commodities can be prohibited or  restricted by ministerial decree according to article 7 of 
Law No. 118/1975?  
 
Reply:  
Egypt introduces export restrictions in accordance with provisions of Article XI or Article XX of 
GATT 1994 such as in case of threat of foodstuff shortage or for the con servation of natural 
resources.  
 
PART II: QUESTIONS REGARDING THE REPORT  BY EGYPT (WT/TPR/G/367)  
 
Page 6 (Para 3.13)  
The Report mentions that "The GoE's  near-term national investment policy revolves around 
stimulating infrastructure and productive investment as the primary instruments of driving macro -
economic growth and employment creation through 2030."  
 
Question 40: Would Egypt kindly describe key mea sures set out in the GoE's long -term national 
investment policy for improvement of investment climate?  
 
Reply:  
Key measures set out in the GoE's long -term national investment policy for improvement of 
investment climate as follows:  WT/TPR/M/367/Add.1  
 
- 106 - 
 
  1- Legislation and regulatory reform such as new Investment Law and Amending in Companies 
Law, etc…  
2- Simplification procedures for investor services (providing the required services in a single 
location supported by Investors' Service Centers).  
3- Simplification  of the land allocation system in Investment Law No.72/2017  
4- Expanding the Public -Private Partnership System (PPP).  
5- Provide incentives for projects in remote areas and Upper Egypt  
6- Preparing the investment map for potential opportunities.  
 
Page 6 (Para 3.14)  
It is stated in the Report that "Within the context of the near -term 2030 SDS, therefore, Egypt has 
taken a very robust approach to investment, both in terms of public and private investment. 
Government spending on very large -scale national infrastructure  projects has been a hallmark of 
Egypt's economic revitalization since 2014. In parallel, the encouragement of private investment 
(and public -private partnerships) by both domestic and international parties, in agriculture, 
construction, energy infrastruct ure, transport and logistics (including the Suez Canal expansion 
project, roads and railways, airports and seaports) and oil and gas has been advanced as part of 
the 2030 SDS."  
 
Question 41: Could Egypt please specify what major projects are implemented or  planned for 
implementation within the framework of public -private partnership?  
 
Reply:  
1- Awarded PPP Projects  
(in million)  
Sector/projects  Project details  Tendering 
authority  Investment 
capital (L.E)  
1. New Cairo 
wastewater plant  Construction, financing, operation & 
management of a new Wastewater 
treatment plant with a total 
capacity of 250,000 m3/d to treat 
wastewater.  Ministry of 
Housing, Utilities 
& Urban 
Development  
 - New Urban 
Communities 
Authority NUCA.  786 
2. Alexandria 
University Mowassat 
Specialized Hospital  Construction of a 224 bed hospital 
with Centers of Excellence for the 
Provision of highly specialized 
services in Neurosurgery, Urology, 
Nephrology and Kidney Transplant 
University Hospital.  Ministry of Higher 
Education - 
Alexandria 
University  775 
3. Alexandria 
University Smouha 
Maternity Hospital and 
Blood Bank  Construction of a 200 bed 
Gynecology, Obstetrics University 
Hospital & a Blood Bank located as 
part of the New Smouha Hospital 
Complex which includes the 
Pediatric  and Emergency Hospitals.  805 
 Total Capital Investments for Signed PPP Projects  
 2366 
 
2- Tendered PPP Projects  
(in million)  
Sector/p rojects  Project details  Tendering 
authority  Investment 
capital (L.E)  
1. Commercial 
Registry Offices 
Development and 
Automation PPP 
Project  Rollout & Automation of the 
Commercial Registry Offices for 88 
offices around the country involving 
the finance, design, develop, 
automate, operate and maintain the 
offices, and transfer back at the end 
of the contract duration.  Ministry of Supply 
and Internal Trade  
- 
 Internal Trade 
Development 
Authority (ITDA)  600 
2. Notarization Offices 
Development and Rollout & Automation of the 
Notarization Offices for 400 offices Ministry of Justice 
- Ministry of 800 WT/TPR/M/367/Add.1  
 
- 107 - 
 
  Sector/p rojects  Project details  Tendering 
authority  Investment 
capital (L.E)  
Automation PPP 
Project  around the country involving the 
finance, design, develop, automate, 
operate and maintain the offices, , 
and transfer back at the end of the 
contract duration.  Comm. & IT  
3. Nile River Bus 
Ferry The Nile River Bus Ferry : The 
required services are as  follow :  
1. Purchase, finance and operate the 
River Transport Fleets.  
2. Develop 16 current terminals and 
add 15 new terminals including: 
Design, Build, Finance, Operate and 
Maintain.  
Transaction & Financial Advisor: E&Y 
(Abou Dhabi)  
Technical Advisor: WS P (UK) & 
Dorsch (Egypt)  
Legal Advisor: Eversheds (Abou 
Dhabi)) & Arab Legal Consultants 
(Egypt).  General 
Transportation 
Authorization in 
Cairo / Cairo 
Governorate  900 
3. 6 of Oc tober dry 
Port PPP Project  Development, finance, design, build 
and opera tion of a new dry port in 6 
of October city di vided to 2 phases, 
phase one is located on 400 feddans 
- 100 feddans for the project and 
300 feddans for future value added 
logistics center  
A contract of 30 years, for inland 
custom clearance depot for 
containers imported through the 
various ports on both the 
Mediterranean and Red sea Genertal Authority 
for land and dry 
ports GALDP  1.8 
4. New Schools PPP 
project (phase 1)  Construction of 54 of the planned 
total of 1000 schools as the 1st 
phase of the National Project for 
Building and Operation of Advanced 
PPP Language Schools.  
 
The project involve the Design, 
financing, construction, furnishing, 
maintenance and provision of 
Educational services and all the 
other non -core services such as 
facility management and in support 
of the operation of the Schools for 
the new schools in selected 
Governorates as first phase.  
 
Transaction & Financial Advisor: NI 
Capital  
Technical Advisor: Engineering 
Consultancy Dept., Military Technical 
College  
Legal Advisor: Sarie - Eldin & 
Partners  The Ministry of 
Education and 
Vocational 
Education  1.500  
 Total Capital Investments for Tendered PPP Projects  5.600  
 
 WT/TPR/M/367/Add.1  
 
- 108 - 
 
  3- PPP Projects under preparation to be Tendered in 2018  
(in million)  
Sector/ projects  Project details  Tendering 
authority  Investment 
capital (L.E)  
1. Safaga 
Industrial Port  Development & Upgrade of Safaga 
mining port that includes 2 phases:  
1st Phase: includes the establishment of 
the infrastructure and terminals needed 
for the industry and export of liquid bulk 
(phosphoric acid), Solid fertilizer - 
Livestock with meat processing, Grain 
storage and milling (silos), Agribulk (rice, 
sugar and s oybean oilseeds).  
2nd Phase: reserved for Activities of 
golden triangle Master Plan.  The Executive 
Organization For 
Industrial & Mining 
Projects / Ministry 
of Industry & 
Foreign Trade  4000  (Phase 
1 1500 
Industrial 
Activities 
2500)  
2. New building 
for fac ulty of 
commerce - Ain 
shams University  Finance, build, operate and maintain a 
new building for Faculty of Commerce - 
Ain shams University in obour city on 
13300m m2 land alloc ated for the 
project  Ministry of Higher 
Education 
represented by Ain 
shams Unive rsity 400 
3. Phase 2 for 
the PPP new 
Schools Project  Construction of 100 other schools as 
phase 2 of the planned total of 1000 
schools after the signature of 1st phase 
of the National Project for Building and 
Operation of Advanced PPP Language 
Schools.  
 
The project involve the Design, financing, 
construction, furnishing, mai ntenance 
and provision of Educational services and 
all the other non -core services such as 
facility management and in support of 
the operation of the Schools for the new 
schools in sel ected Governorates as first 
phase.  The Ministry of 
Education and 
Vocational 
Education  still under 
study  
 Total Capital Investments for Projects to be Tendered in 2016  1.900  
 
4- PPP Pipeline Projects under Feasibility Studies  
(in million)  
Sector/p rojects  Project details  Tendering 
authority  Investment 
capital (L.E)  
1. Phase 3 for 
the PPP new 
Schools Project  Construction of phase 3 of the planned 
total of 1000 schools after the signature 
of 2nd phase of the National Project for 
Building and Operation of Adv anced PPP 
Language Schools.  
The project involve the Design, 
financing, construction, furnishing, 
maintenance and provision of 
Educational services and all the other 
non-core services such as facility 
management and in support of the 
operation of the Schools  The Ministry of 
Education and 
Vocational 
Education  TBD 
 
Page 6 (Para 3.15)  
According to the Report "… to further accelerate the practical aspects of stimulating investment 
(sourced both domestically and internationally), a series of regulatory packages have been put into 
force between 2015 and 2017, including a new Investment Law that replaced previous legislation."  
 
Question 42: Could Egypt please elaborate if the Egyptian legal and policy framework, in 
particular the new Investment Law No. 72/ 2017, provides for greater transparency of country's 
investment regime and how?  WT/TPR/M/367/Add.1  
 
- 109 - 
 
  Reply:  
The new investment law no 72/2017 provides greater transparency of country's investment 
specifically that Article (2) of the law investment goals & principles stated the  investment should 
be governed by the following principles: 5 - Compliance with the principles of governance, 
transparency, prudent management and absence of conflict of interest.  
 
In addition to the above, you may find inside many articles of the law empha sizing either directly 
or indirectly on the importance of transparency and considering it as one of the major KPI for the 
employees dealing with the investment ( Article 27).  
 
As an example, you may review the last paragraph of Article (3) of the investment law which 
states: "While applying the provisions of this law, all the decisions related to the affairs of the 
investments should be justified and informed to the concerned parties in the manner regulated by 
the executive regulation "which is ind irectly emphasizing on the importance of transparency while 
dealing with investment.  
 
Page 11 (paragraphs 4.16 – 4.18)  
The Report mentions preferential agreements with the European Union, the European Free Trade 
Association (EFTA), Turkey and MERCOSUR, in which Egypt participates. In addition to such 
agreements, Egypt is also a party to the Pan Arab Free Trade Agreement (PAFTA), the Common 
Market for Eastern and Southern Africa (COMESA), and the Agadir Agreement.  
 
Question 43: Could Egypt kindly inform on its possible plans to conclude other free trade 
agreements in the near future and with what countries?  
 
Reply:  
Egypt is currently undergoing and concluding negotiations of phase I in the following Agreements:  
 Egypt has ratified the Tripartite Agreement, which is comprised of 26 African countries. The 
Heads of State and Government of the Common Market for Eastern and Southern Africa 
(COMESA), East African Community (EAC) and Southern African Development Communit y 
(SADC) met on 10 June, 2015 in Sharm El Sheikh, Egypt at the Third Tripartite Summit to 
officially launch the COMESA -EAC-SADC Tripartite Free Trade Area (TFTA).  
 In addition, the African Continental FTA (CFTA) will be signed and launched at an extra -
ordinary Summit of the African Union in March 2018. The CFTA will bring together fifty -five 
African countries with a combined population of more than one billion people and a combined 
gross domestic product of more than US $3.4 trillion.  
 Egypt is in the proces s of discussions with the Euro -Asian Economic Union, which 
include (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan) with a view to 
determine a date to start FTA negotiations.  
 
Page 12 (Para 5.8)  
The Report states that "GoE support to agriculture is f ocused primarily on non -product -specific 
technical agricultural extension service support, including with irrigation and drainage 
management processes."  
It seems to be a Green Box measure s. At the same time according to the notification concerning 
domesti c support commitments for the financial years 2005/2006 to 2016/2017 (G/AG/N/EGY/3 
dated 2 November 2017) there is the only measure of "Pest control subsidy" in Supporting Table 
DS:1.  
 
Question 44 : Could Egypt please explain this discrepancy?  
 
Reply:  
Curre ntly we are taking stock of the entire trade related measures in the area of Agriculture 
including domestic support measures to assess them, prepare the necessary notifications and 
submit them i n the Committee in Agriculture.  
 
However, in preparing the notifications including G/AG/N/EGY/3 there have been a  
a number of challenges including inter alia:  
- The lack of availability of integrated information databa se in the relevant authorities.  
- The lack of human and technical capacities in the relevant authorities to aggregate the 
data and classify it according to the different boxes in the Agreement on Agriculture.  
 WT/TPR/M/367/Add.1  
 
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  PART IIІ: OTHER QUESTIONS  
45. Could Egypt kindly inform when Egypt plans to accept the Marrakesh Treaty to Faci litate 
Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print 
Disabled, which was adopted on June 28, 2013 and entered into force on September 30, 2016?  
 
Question 46 : With respect to the Beijing Treaty on Audiovisual Perf ormances (this Treaty is not 
yet in force), adopted on June 26, 2012, what are Egypt's intentions to join this instrument?  
 
Reply for both 45 & 46:  
With regard to both the Marrakesh and Beijing treaties, the issue was discussed once at the 
parliament and the parliament proposed to join them. Also they were discussed at the national 
committee for IPR at the Ministry of Foreign Affairs and there are no political concerns towards 
joining them. Internal procedures are being processed.  WT/TPR/M/367/Add.1  
 
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  BRAZIL  
Replies to questi ons from  Brazil  
PART I: QUESTIONS RE GARDING THE SECRETARIAT REPORT  
3.1.1.1 Customs procedures  
"The WTO's Trade Facilitation Agreement (TFA) was approved by the Egyptian Parliament on 
22 June 2017 and ratified by Presidential Decree No. 149/2017. However, as of early 
November  2017, the instrument of acceptance of the TFA had still to be deposited in  the 
WTO ." (Page 39, para. 3.3 of the Secretariat Report) (Emphasis Added)  
 
Question [1]:  When does Egypt intend to deposit its instrument of acceptance of the TFA?  
Reply:  
Great efforts were exerted to ratify the TFA, Trade Facilitation department (TFD) un der the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry went through all the 
complicated domestic procedures required for the completion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Revi ew Committee at the 
Ministry of Foreign Affairs. TFD responded to all inquiries related to the agreement and its 
provisions, explained the vitality of TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessio ns of the Economic Committee of the 
parliament and hence presented to the plenary session that approved to ratify TFA on 
22 June 2017 and ratified by Presidential Decree No. 149/2017.  
 
As for depositing the instrument, Egypt already communicated with the WTO Secretariat and the 
legal department concerning TFA instrument of acceptance. Egypt is about to deposit the 
instrument in accordance with the model document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be a ttached or annexed to the Marrakech Agreement.  
"As the legislation in place requires updating, a new Draft Customs Law was being examined in 
2017. The new law would incorporate the amendments needed to implement the TFA and the 
Kyoto Convention." (Page 40,  para. 3.7 of the Secretariat Report)  
 
Question [2]:  Are there any perspectives for the enactment of the new draft?  
Reply:  
The draft law has been submitted to His Excellency the Prime Minister and has been declared as 
part of the trade facilitation tools. Some articles have been amended on February 8th, 2018. It is 
expected to proceed with the referred to amendments before the  end of April 2018, before the 
closure of the current People's Assembly round.  
 
"Customs duties and value -added tax may be collected electronically; additionally, the "inspection 
fees" collected by the GOEIC can be paid electronically since 1 July 2017. H owever, some other 
duties on imports and exports are collected separately  and this may not be done 
electronically."  (Page 40, para. 3.6 of the Secretariat Report) (Emphasis Added)  
 
Question [3]:  Please specify which are the "other duties on imports and exp orts" that are 
collected separately and cannot be done electronically?  
Reply:  
Indeed, all duties and taxes are collected electronically, however, on certain occasional incidents 
some other fees are collected separately:  
 
1- Duties and fines collected on exces sive weight: after the customs procedures are finalized 
and the goods are sent to be weighed at the Gates before exiting the port, if the weight 
exceeds the declared weight on the declaration, the calculated sum are paid separately 
because the customs proc edures have been finalized and the relevant duties an d taxes 
have been already paid.  
 
All payments regarding the duties and taxes of a transaction are paid electronically. Nevertheless, 
on certain occasions the agent or broker assigned to pay is short of money. For example, he has a 
check with a sum of 100 thousand pounds and the due sum is  WT/TPR/M/367/Add.1  
 
- 112 - 
 
  2- 102 thousand pounds. The bank allows cash deposits up to a sum of 5000 Egyptian 
pounds (L.E). Further, at the end of the fiscal year, companies are allowed certain 
exceptions due to their financial liabilities. This is part of facilitation and expedition of the 
processes.  
3- The inspection authorities are allowed to collect inspection fees upon "re -inspection "of 
goods. Currently, the controlling and inspection authorities are w orking on automating this 
step. 
 
"Customs release time varies from two hours to more than two weeks depending on the size and 
sensitivity of the consignment. In 2016, 22.5% of the goods imported were released by Customs 
in four days to one week and on ly 10% in less than two hours (Table 3.1). The latter compares 
unfavourably with the release times achieved in 2014 and 2015. (…) The challenge will be to seek 
to reduce further these release times as the risk management system is improved and other 
trade  facilitating measures are adopted." (Page 43, para. 3.19 of the Secretariat Report)  
 
Question [4]:  Are there specific measures/plans ongoing aimed at enhancing the time -periods for 
customs clearance?  
Reply:  
Currently Egypt is implementing the following pla n to enhance the time -periods for customs 
clearance and hence to promote and trade facilitation:  
1- Signing a protocol between the ECA and the General Organization for Export and Import 
Control (GOEIC) regarding expediting the shipments of the AEOs .  
2- Using X -ray scanning all over the customs locations to facilitate customs control and save 
time  
3- A ministerial council fo r trade facilitation in Egypt ( EgyTrade ) has been established with 
the objective of creating a national single window system. Accordingly, a team of Egyptian 
experts has finalized a study on the current business processes: procedures and 
documents, for the purpose of business process reengineer ing to overcome any weakness 
that could constitute a hindrance to trade facilitation. Finally, the ECA team is working on 
the simplifying the procedures and rationalizing the documents used in the transactions.  
4- The ECA is undergoing the process of analyzi ng manifest data in order to enhance the 
efficiency of risk management and select high risk consignments and reduce the 
percentage of inspection and examinations.  
5- Finally, the ECA is reviewing the possibility of unifying risk criteria between the ECA and 
the GOEIC.  
 
3.1.3 Tariffs  
"One of the features of the Egyptian tariff schedule is the large gap between tariffs applied to 
agricultural products and those applied to non -agricultural goods. In 2017, protection granted to 
agricultural products (WTO definitio n) remained high , with an average tariff of 51.6%, while 
tariffs on non -agricultural products (WTO definition) were generally lower, with an average of 
13%. Animals and animal products, cereals, sugar, beverages, clothing, leather products, and 
transport e quipment are the product groups with import duties higher than 15%." (Page 51, 
para. 3.47 of the Secretariat Report) (Emphasis Added)  
 
Question [5]:  Does the GoE's long -term tariff policy (Page 10, para. 4.4 of the Government 
Report) apply broadly to both agricultural and non -agricultural products or, instead, target tariff 
cuts on specific group of products?  
 
Reply:  
The long -term tariff policy applies both to agricultural and non -agricultural products. Tariffs are 
determined in light of the overall country's economic policy and in view of the ongoing efforts 
towards further trade liberalization and facilitation.  
 
3.2.4. Export Support and Promotion  
"The Export Promotion Law No. 155/2002 established an Export Development Fund with a view to 
increasing and diversifying exports of goods and services and raise their competitiveness. This is 
to be achieved by: (…) (g) prov iding other means and tools that work to achieve the 
objectives of the Fund ." (Page 73, para. 3.105 of the Secretariat Report) (Emphasis Added)  
Question [6]:  Is it possible to provide a more precise definition or examples of what would 
constitute "other me ans and tools that work to achieve the objectives of the Fund"?  WT/TPR/M/367/Add.1  
 
- 113 - 
 
  Reply:  
An example of the " other means and tools that work to achieve the objectives of the Fund " are the 
establishment of refrigerated port yards in order to maintain the viability of exports of agricultural 
products. Such projects are considered infrastructural projects that require funding by the 
government.  
 
3.3.2 Standards and other technical requirements  
"Egyptian standards are reviewed periodically, usually once every five years, to ensure their 
relevance to current requirements. As at November 2017, Egypt had issued  more than 8,500 
standards  covering six sectors (Chart 3.5). In addition, according to the authorities, more than 
7,000 national standards had been aligned with internatio nal standards  in several sectors 
(Chart 3.6)." (Page 80/81, para. 3.141 of the Secretariat Report) (Emphasis Added)  
 
Question [7]:  In view of the wording, it appears that there is part of national standards that are 
not aligned with international standards . Please provide further information on (i) whether this 
portion is aligned with other standards/practices; (ii) whether there is a current effort to bring 
these standards into conformity and (iii) what are the topics covered by standards not yet aligned 
with international standards.  
Reply:  
EOS issue the Egyptian Standards according to Ministerial Decree No. 180/1996 and Ministerial 
Decree No. 291/2003 and they are aligned with other standards as follows: 
 ( International standards (ISO / IEC)  
 European specifications (EN) - BS- DIN NF  
 American Standards (ANSI) and American Society for Testing and Materials (ASTM) 
standards.  
 Japanese specifications (JIS) and JASO specification   
 The International Code of Food Code (CODEX)  
 The specifications of the American  Automobile Engineers Association (SAE)  
 Specifications of the American Petroleum Institute (API)  
 Ministerial Decree No. 423/2005 for European directives  
EOS is consistent with international and European standards as follows:  
 5633 Egyptian standards (ISO/IE C) 
 486 Egyptian standards (CODEX),  
 170 Egyptian standards (OIML),  
 693 Egyptian standards (EN),  
 309 Egyptian standards (ASTM).  
In case of absence of international or European standards for products located in markets We use 
other references which included in the Ministerial decrees No. 180/1996, No. 291/2003 . 
 
"Egypt has accepted the WTO Code of Good Practice for the Preparation, Adoption and 
Application of Standards . It is a member of the International Organization for Standardization 
(ISO). The EOS has si gned mutual recognition agreements in the field of standardization and 
related activities with most Agadir countries, China, France, Jordan, Kuwait, Lebanon, Libya, 
Morocco, Nigeria, Saudi Arabia, Sudan, Tunisia and Uganda." (Page 80, para. 3.138 of the 
Secretariat Report) (Emphasis Added)  
 
Question [8]:  The WTO Code of Good Practice for the Preparation, Adoption and Application of 
Standards recommends a country to provide the complete text of the technical regulation/standard 
at the time in which the notification is made. Does Egypt follow this practice?  If not, where is it 
possible to obtain the complete text of these technical regulations/standards (i.e. the website 
link)?  
 
Reply:  
The listing of technical regulations/mandatory standards is published on the EOS website 
(http://www.eos.org.eg ), however the complete texts can be obtained via the Egyptian TBT 
enquiry point.  
 
3.3.3 Sanitary and phytosanitary (SPS) measures  
"There are various controls and inspection procedures for food products, live animals, and animal 
and plant products. The controls are implemented by the corresponding responsible agency: the 
National Authority for Food Safety, established by Law No. 1/201 7, for food products ; WT/TPR/M/367/Add.1  
 
- 114 - 
 
  the Atomic Energy Agency, for the examination of radiation levels; the Central Administration for 
Plant Quarantine (CAPQ), for plants and plant products; the Ministry of Agriculture and Land 
Reclamation for plants before harvesting; t he Food Control Department of the Ministry of 
Health, the GOEIC, and the GOVS for live animals, animal health and any products of 
animal origin ." (Page 87, para. 3.166 of the Secretariat Report) (Emphasis Added)  
 
Question [9]:  Considering the recent establ ishment of the National Authority for Food Safety and 
its apparent overlapping competence with the topics covered by the Food Control Department of 
the Ministry of Health, the GOEIC, and the GOVS, please provide a more detailed description of the 
functions  of these authorities and how they interact with each other?  
Reply:  
law No. 1 of 2017 on Enactment of National Food Safety Authority (NFSA) Clause (2) states that 
"The National Food Safety Authority established under the provisions of Article (2) of the a ttached 
Law, shall solely undertake the functions assigned to ministries; public organizations; government 
bodies; and local administration units in respect of control of food handling, in food safety related 
legislation wherever these functions are set fo rth in these laws, regulations and regulatory 
decrees, and shall prepare proposals for the amendment thereof. Additionally, the NFSA shall have 
the competencies specified in the mentioned Law."  
 
Clause (3) states that "The NFSA shall perform the functions assigned thereto within a period not 
exceeding one year from the date of entry into force of this Law. Such period may be extended for 
a similar period by virtue of a decree issued by the Prime Minister.  
 
Bodies referred to in Clause (2) shall continue to perform the functions assigned thereto as 
specified in the laws and regulations pending performance of such functions by the NFSA.  
The decrees and regulations issued for implementing the provisions of the laws related to food 
safety at the date of publica tion of the present Law shall remain in force pending the issuance of 
the regulations and decrees necessary for the implementation of the Law attached."  
 
Clause (4) states that "The employees working in the ministries; public organizations; government 
bodies; local administration units, and other competent bodies operating in the  field of food control 
and handling regulation, who shall be designated by virtue of a decree issued by the Prime 
Minister upon a proposal submitted by the NFSA Chairman of the Broad of Directors (BoD) 
following coordination with the ministers concerned, shall be duly transferred to the NFSA. The 
transferred employees shall, at a minimum, retain their full job positions and financial benefits at 
the transferring date."  
Hence, fun ctions given to Food Control Department of the Ministry of Health, and the General 
Organization for Export and Import Control (GOEIC) will be moved to the National Food Safety 
Authority (NFSA). As for the General Organization for Veterinary Services (GOVS) , it will remain as 
the competent authority responsible for official control activities for live animals. Once animals 
enter slaughterhouses it will be the responsibility of NFSA.  
 
4.1.1 Agriculture  
"Egypt currently imposes export duties on sugar and feed components. Pursuant to Minister of 
Commerce and Industry Decree No. 469/2017 of 30 March 2017, a fee of LE 3,000 per ton was 
imposed on exports of sugar. Pursuant to article 7 of Law No. 118/1975, the exportation of certain 
commodities can be prohibited o r restricted by ministerial decree under certain circumstances. The 
Government did so for rice between 2008 and 2014." (Page 110, para. 4.23 of the Secretariat 
Report).  
 
Question [10]:  Is it possible to provide a more detailed description of how these exp ort duties 
work (i.e. what are the objective features that orient their imposition, such as the triggering event, 
the factor that determines their duration, how they relate to imports and any other relevant 
feature).  
 
Reply:  
Export duties are legitimate p olicy tools as apparent from Article XI of GATT 1994 and they are 
imposed in order to ensure sufficient amount for local demand. Export duties are imposed after 
conducting a market assessment for the product at hand including:  
- The domestic supply and deman d; WT/TPR/M/367/Add.1  
 
- 115 - 
 
  - The national and international prices;  
- The amount of imports of the specific product.  
 
Furthermore, the export duties are imposed in a manner that ensures an appropriate margin of 
profits for the exporters as per Article 8 of Law 118/1975 on Exports and  Imports which stipulates 
that Exports restrictions should be imposed in a way that doesn't affect the profits of the exporter . 
 
4.4.1.1 Banking  
page 125 (4.98)  
"In the third phase, started in 2015 and currently (November 2017) still in implementation, the  
regulatory efforts of the CBE concentrated on: (a) encouraging banks to finance SMEs by issuing a 
unified definition of SMEs in December 2015 and updating it in March 2017; (b) requiring banks to 
direct 20% of their total credit lending portfolio to loans  to MSMEs by 2020; and (c) capping at 5% 
the interest rate applied to small -sized companies, at 7% the rate applied to medium -sized 
companies for the financing of their capital expenditures through long term loans, and at 12% the 
rate applied to medium -sized enterprises to finance their working capital. " 
 
Question [11]:  Does the government subsidize this program through the general budget, or is it 
the responsibility of commercial banks to manage the costs of implicit subsidies to MSMEs?  
 
Reply:  
Kindly note  that, according to the CBE's SMEs initiatives, the subsidized lending is available only to 
small and medium enterprises, noting that the commercial banks do not bear any additional costs 
upon financing these companies under these initiatives. With regard to the subsidized financing of 
the small enterprises, the CBE allows banks to deduct the entire value of these loans from their 
statutory reserve requirement – currently at 14%. As for the subsidized loans granted to the 
medium enterprises, the CBE allocat es certain funds for financing these loans through the banks; 
which are compensated for the subsidized interest rate through different mechanisms. Accordingly, 
the government does not bear the cost of the subsidized lending through the general budget.  
 
4.4.2 Telecommunication services   
page 130 ( 4.124)  
"Telecom Egypt (which is 80% owned by the State, the remaining 20% having been listed on the 
Egyptian stock market in 2005) is still the monopoly operator for fixed -line services. This in spite 
of having l ost its exclusivity in 2009 for certain segments such as the provision of fixed services in 
closed residential compounds (…)"  
 
Question [12]:  Is there any kind of restriction in place regarding the number of players in the 
telecom market?  
Reply:  
There is no restriction on the number of players in the telecom market. In addition, beside losing 
exclusivity of TE in segments like closed residential compounds in 2009, in 2016 three more fixed 
licenses were issued to the mobile operators.  
 
There is no  reference to consumer protection rules was found in the text.  
 
Question [13]:  Are there rules for protecting telecommunications consumers? If yes, would it be 
possible to send them or to provide us the weblink where the full text can be found?  
 
 
Reply:  
Please refer to the NTRA website on the consumer section, Rights & obligations.  
www.tra.gov.eg . 
Pages 130 to 133 (4.125)  
"As the sole provider of infrastructure leasing services, Telecom Egypt issued its Reference 
Interconnection offer that defines the technical, operational, and commercial terms and conditions 
for interconnection and wholesale services. These must be granted to other licensed operators in 
an open access manner and following non -discriminatory principl es". 
(4.129) "Egypt has followed a progressive liberalization policy for the telecommunications sector 
during the period under review. The mains steps of this liberalization are the following: (…) In 
October 2016, the three mobile companies obtained a 4G/LTE licen se and a fixed -line licen se each. WT/TPR/M/367/Add.1  
 
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  They intend to provide fixed services through Telecom Egypt's network using full local loop, bit 
stream, and call origination solutions."  
 
(4.133) "Regarding the fixed interconnection regime, the termination r ate into an operator is a 
percentage (65%) of this operator's on -net retail rate. This regime has been challenged by some 
operators and there are some cases still awaiting court decision. As at the end of 2017, the NTRA 
and the licensed operators were in t he process of reconsidering the interconnection regime".  
 
Question [14]:  The wholesale reference offers are based on some form of cost model? If so, 
which methodology is adopted?  
 
Reply:  
It depends on the type of service provided, some are based on cost justification and other services 
are based on retail minus.  
 
(4.132) "The NTRA is in charge of: licensing telecommunications services; regulating prices; 
regulating interconnection; setting technical standards; allocating radio frequencies; assigning and 
monitoring the use of the spectrum; determining numbering; granting type approval to 
equipment; regulating universal service; monitoring the quality of the services; enforcing 
consumer rights protection; and carrying out research and development".  
 
Questio n [15]:  Could NTRA elaborate on the extension and the measures adopted in the 
regulation of prices?  
 
Reply:  
All the measures and pricing regulations are Economic based depending on the type of service and 
also subject to public consultation.  
 
Page 132 (4. 132). "There is no regulatory framework yet for over -the-top (OTT) or Internet 
Protocol TV (IPTV) Internet television providers such as Netflix".  
 
Question [16]:  In the context of over -the-top services, are there plans or discussions regarding 
the developm ent of a regulatory framework towards that subject?  
 
Reply:  
OTT matters are still under Study.  
 
PART II: QUESTIONS R EGARDING THE GOVERNMENT REPORT  
 
1. Executive Summary  
"Aggressive economic reforms, including slashing subsidies , floating the national currency and 
massive national investment in infrastructure have all resulted in stimulating the economy."  (Page 
3, para. 1.4 of the Government Report) (Emphasis Added).  
 
Question [17]:  Is it possible to describe with more detail what types of measure cons titute the 
so-called "slashing subsidies"? Do these subsidies still exist?  
Reply:  
Energy Subsides (fuel & electricity)  
The government is very serious about addressing the issue of energy subsidies within a more 
comprehensive economic reform program. Energy subsidy reform is an integral part of the 
government's reform program because it slashes wasteful spending and creates fiscal space for 
higher priority spending on well targeted social programs and investments. Some examples are:  
 
Petroleum Product  Old Price  New Price (Nov 2016)  New Price (July 2017)  
LE/Unit  LE/Unit  LE/Unit  
Diesel (lit re) 1.8  2.35  3.65  
Kerosene  1.8  2.35  3.65  
Gasoline 92 (lit re) 2.6  3.50  5.00  
Gasoline 80 (lit re) 1.6  2.35  3.65  
LPG4/ (bottle)  8.0  15.0  30.0  
 WT/TPR/M/367/Add.1  
 
- 117 - 
 
  The government has essentially increased prices to reduce the wedge between the retail price of 
petroleum products and cost. We have implemented three rounds of fuel price adjustments since 
2014 resulting in savings of more than 3% of GDP. The prices of diesel  and gasoline were raised 
by more than 200% cumulatively. We also raised the prices of fuel oil and natural gas sold to the 
different industries.  
 
As for Electricity, the government has a multi -year plan to eliminate electricity subsidies by 2020; 
of which , four adjustments have already been implemented since 2014.  
Food Subsidies  
 
The food subsidies scheme has been totally revamped and overhauled to switch from in -kind 
subsidies to cash transfers. We are enhancing the efficiency of social programs by moving  to 
better targeted programs like takaful and Karama and cash and semi -cash transfers.  
 
Also, the government is in efforts to filter the list of beneficiaries to insure that no double counting 
occurs and that the list of citizens receiving the transfer is updated on a regular basis and 
according to valid data and information. Going forward the Ministry of Supply introduced criteria 
for the issuance of new cards that is also based on studies, surveys and valid information, to 
contribute in the efforts of cre ating a more efficient subsidy scheme, ultimately creating more 
savings and fiscal space.  
 
3.1 National Development and Economic Growth Goals  
Page 5 (3.4)  
"Other specific targets of the national economic vision intended by 2030 include reducing public 
debt to 50% of GDP, to reduce the national budget deficit to no more than 5% of GDP, targeting at 
least a 7% average rate of economic growth, to reduce unemployment to no more than 5% of the 
workforce and to lower overall energy intensity by 2030 in Egypt by at least 14%."  
 
Page 5 (3.5)  
"Finally, with regards to the national economic vision, a proactive performance monitoring system 
with a high frequency of periodic reporting at the highest levels of government is intended to 
ensure that the vision is realized. The spirit of national expectations arising from socioeconomic 
developments in Egypt since 2011 is embedded within the mechanics of how the vision will be 
achieved, with a focus on using indicators that help make certain that genuine economic 
inclusiveness occurs tangibly, in line with the social justice objective of the 2030 SDS."  
 
Question [18]:  has the CBE any ongoing program of financial education to avoid excessive 
indebtedness upon greater financial inclusion?   
Reply:  
The CBE considers finan cial education as an important pillar to achieving financial inclusion; 
therefore, programs are developed in coordination with relevant stakeholders in this regard.  
 
3.3 Investment Policy  
Page 6 (3.14)  
"Within the context of the near -term 2030 SDS, therefore, Egypt has taken a very robust approach 
to investment, both in terms of public and private investment. Government spending on very 
large-scale national infrastructure projects has been a hallmark of Egypt's economic revitalization 
since 2014."  
 
Question [19]:  how will the Egyptian government manage to decrease public debt while spending 
to develop large -scale national infrastructure projects?  
 
Reply:  
Despite the ambitious fiscal consolidation efforts, the government is keen to continue in 
implemen ting the reform program that is pro -growth and that is targeted towards creating real job 
opportunities in the economy. The government is working on re -prioritizing its spending and 
investing more on capital spending rather than current. This in turn will contribute positively to the 
economy and increase economic activity and therefore boost growth and improve GDP. As a result, 
debt to GDP ratios will decrease overtime allowing for more fiscal space and consolidation.  
 WT/TPR/M/367/Add.1  
 
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  Page 6 (3.15)  
"A series of regulatory  packages have been put into force between 2015 and 2017, including a new 
Investment Law that replaced previous legislation. The new law guarantees reciprocal national 
treatment, consolidates several procedural elements involved in the application process for various 
licenses, including using e -systems, further empowers key institutions to provide the full panoply 
of required services in a single location supported by Investors' Service Centers (ISCs) and within 
pre-defined time limits for several processes , institutionalizes and strengthens dispute resolution 
systems and considerably improves the facilitation of temporary residency documentation for non -
Egyptians attached to entities licensed under the new investment legislation".  
 
Question [20]:  Does this new law provide equal treatment to domestic and foreign capital 
invested in financial institutions? If not, what are the main differences established in this law?  
 
Reply:  
Yes , according to the new investment law 72/2017 article (3) which clearly stated th at all 
investments established within the Arab Republic of Egypt shall receive fair and just treatment and 
the state shall ensure to the foreign investor the same treatment given to the national investor. 
This applies for any investor including the financi al institutions.  
 
3.4 Entrepreneurship Policy  
Page 7 (3.20)  
"The Central Bank of Egypt (CBE) has also allocated a facility of LE 200 billion between 2016 and 
2021 for onward lending to banks licensed in Egypt with a two -tier structure of soft credit terms 
accessible only to MSMEs to support entrepreneurship and MSME economic activity. Incentives are 
also in place to encourage banks to allocate up to 20% of their lending portfolio to 
entrepreneurship and MSMEs".  
 
Question [21]:  How does the CBE control the p ercentage of lending portfolio to entrepreneurship 
and MSMEs? Does the CBE assume any risk for these investments?  
 
Reply:  
Kindly note that the CBE has required banks in January 2016 to allocate at least 20% percent of 
their loan portfolios to micro, small and medium enterprises (MSMEs) by the year 2020, being 
controlled through regular reporting by off -site supervision and inspections of on -site supervision. 
As for the risk accompanied to financing SMEs, evaluating this risk is primarily the responsibility of 
the financing bank through their credit studies and proper due diligence. However, the CBE has set 
a credit guarantee program as a tool to mitigate banks' risks when lending SMEs in cooperation 
with the Credit Guarantee Company.  
 
Page 13 (5.24)  
"Financ ial Services: The share of foreign banks in Egypt (foreign -controlled and branches of 
foreign banks) has risen from 15.4% in 2005 to 27% in 2015".  
 
Question [22]:  given this perspective of increasing importance of foreign control over financial 
institution s, what measures have been taken by CBE to mitigate risk transmission from the parent 
companies to branches and subsidiaries located in Egypt?  
Reply:  
Country and counterparty limits of banks exposures:  
The CBE issued a regulation regarding setting exposure  limits to countries, financial institutions 
and financial groups; related mainly to bank's capital base, countries' ratings and their GDP.  WT/TPR/M/367/Add.1  
 
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  THAILAND  
Replies to questions from Thailand  
 
PART I: QUESTIONS RE GARDING THE SECRETAR IAT REPORT  
2.4 Investment Regime  
(Page 34)  
2.51. The Companies Law supplements the Civil and Commercial Codes of Egypt. The companies 
incorporated under this Law and their shareholders are exempted from all duties and taxes. The 
shares of the companies emanating from this incorporation or the shares issued as counterpart of 
the capital of the incorporated companies may become negotiable directly on their issue (Article 
133). The Law was amended several times to improve the business climate in Egypt. Law No. 
68/200 9, for example, eliminated the minimum capital requirement for limited liability companies. 
The authorities indicated that a draft law is currently being examined to introduce a new form of 
establishment for companies that will allow a single investor to e stablish a company.  
 
Question:  
Does Egypt set the duration for obtaining tax privilege through all duties and taxes exemptions for 
companies established under the Companies Law?  
 
Reply:  
There is no tax privileges for any companies established under the co mpanies law, as the tax privileges 
and incentives are only granted to companies established under the new investment law No. 72/2017.  
 
(Page 36)  
2.56. Private investment, including in free zones, whether foreign or domestic, is managed by the 
General Autho rity for Foreign Investment and Free Zones (GAFI), established by Presidential 
Decree No. 284/1997. The GAFI is the main regulator of the investment regime. Its Board of 
Directors comprises GAFI's Chairman, the chief executive officer (CEO), CEO Deputies, three 
representatives of relevant entities, and one expert in private investment and another in law.24 
The GAFI is responsible for following up the implementation of the new Investment Law as well as 
its regulations contained in Prime Minister Decree No. 2 310/2017. Thus, the GAFI is entitled to 
take all necessary measures to stop violations of this Law. The GAFI is the competent authority to 
provide all establishment and post -establishment services, including liquidation, to companies 
engaged in activities cited in the investment law or subject to the law regulating joint -stock 
companies and shareholding companies. To establish a new company, the applicant must: create 
an account on the GAFI's official website; complete an application and pay the fees of 
establishment; and provide certain documents that vary according to the type of the company. 
Throughout this process, the project requires several approvals to start production. However, in 
the case of a project considered strategic by the Cabinet of Minister s, a single approval will be 
issued including all necessary licences to start production. Companies benefitting from the 
Investment Law are required to submit an annual statement to the GAFI including information 
regarding the capital of the company, the p artners and the workers.  
 
Question:  
To start doing business, what are strategic investment project's criteria eligible for a single approval for 
all necessary licenses?  
 
Reply:  
In Egypt we have 2 phases, Start -Up phase includes all establishment services in One Stop Shop 
(Investor Service Centre) during 24 hours - 72 hours according to the type of the company.  
 
However, in the other phase after establishment the project requires several approvals and licenses to 
operate (start to produce for the ma rket); and not to start as legal business form. This phase which 
takes a lot of time due to the regulations of other entities, that is responsible for the economic activities 
of projects. Therefore, the new Investment Law tries to solve this problem and im prove business 
environment through many methods such:  
 
* Investor Service Centre shall be established in the Authority and its branches which will receive the 
investors' applications for approvals, permits, and allocation of real -estate properties, and lic ense types 
required for the set up or management of the Investment Projects.  WT/TPR/M/367/Add.1  
 
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  * Accreditation offices  
 
According to the new investment law 72/2017 , article (20) stated that according to a decree issued by 
the cabinet of ministers , the companies incorporat ed to conduct strategic or national projects that 
contribute in attaining the development or partnership projects between the private sector and the 
state, in the areas of public utilities and infrastructure , new or renewable energy or the roads, 
transpor tation or ports may be granted one approval for the establishment , operation , and 
management of the project , including the building licenses and allocation of the real estate required 
for the project .Therefore, the strategic projects criteria shall be revealed by the cabinet for the 
projects which participate in the continuous development of the country according to Egypt vision 
2030. However, the cabinet did not issue it yet.  
 
3.1.1.3 Customs Valuation  
(Page 46)  
3.32. According to the ECA, the procedures prescribed by the Customs Valuation Agreement are 
followed in cases of undervaluation. If the difference between the declared value and the assessed 
correct value of the goods exceeds 20%, a fine equalling 15% of the customs duty is payable on 
the price differential, in accordance with Article 118 of the Customs Law No. 66/1963.  
 
Question:  
It is unclear that how ECA determine "accessed correct value". What criteria does ECA use to acquire 
that value?  
 
Reply:  
i. The ECA does not accept the transaction value if there are solid grounds that prove that the 
declared value is incorrect. One of the reasons that cause the ECA to refuse the declared value 
is forged documents.  
ii. According to the WTO valuation agreement, if it is difficult to apply the transaction value 
method, the identical or similar goods methods are to be adopted in respective order. These 
methods, allow the customs administration to use the referential prices of identical or similar 
goods within six mont hs from the date of importation for guidance.  
iii. To give an illustration for the interpretation of this article, allow us to explain through a 
practical case the ECA is currently working on. There are more than 300 certificates of origin 
(EURO 1) that were s ent from the EU during 2017. Initial verification of certificates showed 
some blurred seals. The ECA notified the issuing authorities of the 14 -member countries; only 
2 countries responded. The association agreement grants a period of 10 months for reply. 
Given that the ECA has prepared for the verification of origin and value through a common 
application with the EU but the latter did not declare the commencement of exchange. 
Accordingly, it is not possible to accept the transaction value and release takes  place through a 
letter of guarantee, until the final determination of the transaction value.  
iv. It has been acknowledged that the discounts during business practices could reach up to 20%. 
Any excessive discounts are not acceptable in international commerci al practices.  
v. The 15% customs fine is calculated on the difference between the declared value and the 
estimated value reached through using one of the alternative methods and not on the whole 
value for customs purposes.  
vi. Let's assume that the customs valu e was $100 and the importer tried to evade 20%, which is 
equal to $20, accordingly, the ECA shall collect the 15% which is equal to $3 only.  
 
3.1.3.3 Bound tariffs  
(Page 53 -54) 
3.51. Egypt has bound 99.3% of its tariff lines, consisting mostly of ad valore m rates ranging 
from 0% to 3,000% and some non -ad valorem tariffs (for tobacco products). The general simple 
average bound tariff is 37.2%. The simple average bound rate on agricultural products (WTO 
definition) is 96.4%, whereas the rate for non -agricultu ral products is 28.7%. Some 40 tariff 
lines at the HS 8 -digit level remain unbound, consisting mainly of rubber and rubber articles, 
natural and cultured pearls, machinery and mechanical appliances, electrical equipment, and 
vehicles.  
 
3.52. Although appl ied MFN rates are in most cases considerably lower than bound rates, in the 
2017 tariff some 46 lines exceeded their bindings . In some cases this was due to the recent 
tariff increases contained in the Presidential Decrees (Table A3.2).  
 WT/TPR/M/367/Add.1  
 
- 121 - 
 
  Question:  
Since there are 46 bound lines that have the applied MFN rates exceed the bound rates, does Egypt 
have any plan to conform with WTO rules?  
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another  as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound tariffs of which were wrongly transposed and the appropriate procedures will 
be taken in the context of the Committee on Market Access.  
 
It should also  be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law . Hence, in cases were the applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in pre paring the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members set at the bound rate levels or below.  
 
3.1.4 Import prohibitions, restrictions, and licensing  
(Page 59)  
3.67. Egypt has not submitted any notifications with respect to its import licensing regime to the 
WTO. The authorities indicated that import prohibitions and restrictions are maintained for 
economic, environmental, health, religious, safety, sanitary, and phytosanitary r easons.  
 
Question:  
According to article 3.1.4, there are several import prohibitions, restrictions, and licensing imposed by 
the Government of Egypt. To achieve the Government's strategy in terms of improving trade 
facilitation, are there any plans or pol icies regarding the development or simplification of import 
procedures and regulations, especially for supporting the production of targeted industrial secto rs and 
its international trade?  
 
Reply:  
The government of Egypt is regularly reviewing and assessin g its measures and regulations that 
affect imports and trade in general with the ultimate goal of enhancing the business environment 
and facilitating trade. This is apparent from the various trade facilitating measures that have been 
undertaken and which h ave been described in the government and secretariat reports.  
 
PART I: QUESTIONS RE GARDING THE SECRETAR IAT REPORT  
3.77 In accordance with Ministerial Decree No. 43/2016, imports for commercial purposes of a 
number of products will be allowed into Egypt only if they are produced by manufacturing plants or 
imported from the companies owing the trademarks or their distribution centres registered in the 
relevant established Register in the GOEIC.  
 
Question:  
(1) Is there any definite timeline for registratio n process once all required documents have been 
submitted to GOEIC?  
 
(2) In case there is no definite timeline for registration process within which the concerned 
authority should process, then, usually how long does it take for the registration started from 
submission of all documents until getting the approval (on the assumption that all documents are 
completed)  
Reply for 1 & 2:  
The time limit for the registration process is subject to the verification of documents. Once the 
verification of submitted do cuments is done by the General Organization for Export and Import 
Control (GOEIC), the Minister competent for Foreign Trade issues the relevant decree stipulating 
the registration within an average period of two -three weeks.  
 
(3) Is there any mechanism to ensure the transparency of thi s factory registration process?  WT/TPR/M/367/Add.1  
 
- 122 - 
 
  Reply:  
To ensure transparency, the approved manufacturing plants and the companies owning the 
trademarks that have been approved are duly informed of their registration . Furthermore the list 
of companies is made available at GOEIC's database for reference by economic operators.  WT/TPR/M/367/Add.1  
 
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  RUSSIAN FEDERATION  
Replies to questions from the Russian Federation  
 
QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/367)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.2 Trade facilitation  
3.23, p. 44  
The WTO's Trade Facilitation Agreement (TFA) was approved by the Egyptian Par liament on 
22 June 2017 and ratified by Presidential Decree No. 149/2017. However, as of early November 
2017, the instrument of acceptance of the TFA had still to be deposited in the WTO. Egypt 
submitted its Category "A" commitments in January 2015 (Table 3.2). The authorities have 
indicated that they are currently working on category "B" and "C" commitments.  
 
Question 1:  Could Egypt provide the information regarding the implementation of the Trade 
Facilitation Agreement (TFA)? When does Egypt plan to noti fy the ratification of TFA and the 
obligations under the categories B and C of TFA?  
Reply:  
Great efforts were exerted to ratify the TFA, Trade Facilitation department (TFD) under the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry went  through all the 
complicated domestic procedures required for the completion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Review Committee at the 
Ministry of Foreign Affairs. TFD responded to all inquiries related to the agreement and its 
provisions, explained the vitality of TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessions of the Economic Committee of the 
parliament and hence presented to the plenar y session that approved to ratify TFA on 
22 June 2017 and ratified by Pr esidential Decree No. 149/2017.  
 
As for depositing the instrument, Egypt already communicated with the WTO Secretariat and the 
legal department concerning TFA instrument of acceptance.  Egypt is about to deposit the 
instrument in accordance with the model document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be attached or annexed to the Marrakech Agreement.  
Category B and C commitments will be notified soon, Egypt is already undertaking all the 
necessary preparations with different stakeholders to come up with commitments in Category (B) 
and their corresponding indicative dates needed for implementation of the provisions. As well as, 
discussi ng within the framework of the National Trade Facilitation Committee the needs and 
technical assistance required to implement the commitments established in accordance with 
Category (C) under the TFA.  
3.1.5 Anti -dumping, countervailing, and safeguard measu res 
3.1.5.3 Safeguards  
3.92, p. 67  
Since its last TPR in 2005, Egypt has initiated 14 safeguard investigations, imposed provisional 
measures in all of them and final safeguard measures on three products: blankets, steel rebar, 
cotton and mixed yarns (Table 3.19). Although few final measures were adopted, the application of 
provisional measures could have acted as a deterrent to trade.  
 
Question 2:  Egypt is an active user of safeguard measures, whether provisional o r final ones. 
Pursuant to footnote 2 of Article 9 of the WTO Agreement on Safeguards Egypt provides 
notifications to the WTO Secretariat regarding the non -application of safeguard measures to 
imports from developing countries. However, these notifications do not specify developing 
countries, which are exempted from the application of safeguard measures. We would be grateful 
if Egypt provided the full list of countries, which it considers developing for the purpose of 
application of Article 9 of the WTO Agre ement of Safeguards.  
 WT/TPR/M/367/Add.1  
 
- 124 - 
 
  Reply:  
There is no formal defined list of "developing" or "developed" countries in The WTO, however The 
WTO defines only members countries that least developed and for which should also apply special 
conditions to grant preferences under its multilateral agreements i ncluding "Safeguard 
Agreement".  
 
The Egyptian Investigating Authority applies Article 9 of the WTO Agreement of Safeguards on the 
developing countries that declared themselves a "developing country" when they joined the W TO. 
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.1 Agriculture  
4.1.1.2 Policy developments  
4.1.1.2.2 Support to farming  
4.19, p. 108  
As mentioned above, the GASC buys a share of the wheat crop at administered prices so as to 
guarantee a revenue to farmers and orient planting decisions, as well as to build up public stocks 
of basic foodstuff to be processed and sold to the general population at subsidized prices. The 
State fixes the guaranteed price and purchases the crop from farmers befo re the planting date, so 
that the farmer can make a decision on whether or not to produce wheat. Table 4.8 shows the 
evolution of the farm gate (guaranteed) price for wheat, the price of imported wheat and the 
quantity purchased from farmers by the Governm ent through the GASC in the 2005 -16 period. The 
authorities have indicated that purchases from the Government represent some 35% of the total 
crop. Also, the GASC is responsible for close to half of total imports, which are made for the 
subsidized wheat pr ogramme. A FAO study shows that the Government's share of imports has 
been declining, partly as a result of the increased procurement of domestic wheat.  
 
Question 3:  Please provide the amount of market price support for wheat.  
 
Reply:  
There is no market pr ice support for wheat as the prices declared by the government for the 
marketing of wheat is determined based on the cost of production per feddan in addition to the 
cost of transport and storage without referencing international prices. In fact the price declared by 
the government might be higher than the international prices for wheat or below them as has been 
the case for the years 2007,  2008,  2009, 2012, 2014 shown in table 4.8 of the secretariat report . 
It was also below international prices in 2017.  
 
Question 4:  Could Egypt clarify the reasons why market price support for wheat was not included 
in notification G/AG/N/EGY/3?  
 
Reply:  
 
It was not included because there is no market price support for wheat as the prices declared by 
the government for the  marketing of wheat is determined based on the cost of production per 
feddan in addition to the cost of transport and storage without referencing international prices. In 
fact the price declared by the government might be higher than the international pric es for wheat 
or below them as has been the case for the years 2007,  2008,  2009, 2012, 2014 shown in table 
4.8 of the secretariat report . It was also below international prices in 2017.  
 
Question 5:  Please describe the mechanism of determination of subsidi zed prices at which 
imported products are further sold on the market.  
 
Reply:  
The government of Egypt has moved towards a cash based food subsidy program whereby the 
subsidy is 50 L.E. /beneficiary to spend on 44  selected food products redeemable in State -owned 
shops or partnered private shops. The products are sold at market prices  not at subsidized prices.  
The only subsidized product is bread five loaves of bread per day at a EGP  0.05 per loaf. Yet, 
beneficiaries can convert their unused "bread quota" into points to spend on other products. The 
government has stopped subsidizing f lour used in bakeries selling subsidized bread. Instead, the 
subsidies are tied to the actual bread purchased by beneficiaries, estimated to save EGP  8 billion 
(US$447 million) on 2017/18 food subsidies.  WT/TPR/M/367/Add.1  
 
- 125 - 
 
  4.22, p. 109  
Investment in agriculture remains limi ted: funds directed to agriculture represented only 2.8% of 
total government investments and 5.3% of total private investment in 2015/2016. Similarly, funds 
devoted to agricultural extension and research are relatively low by international standards, havin g 
reached LE 285.9 million in 2015/2016. To facilitate access to funds, the Government is 
encouraging the development of rural credit and agricultural insurance. According to information 
provided by the authorities, credit may be granted at preferential in terest rates. Access to 
insurance must be requested by the farmer: it may cover pests, catastrophes and diseases, but 
not price fluctuations.  
 
Question 6:  Please provide the amount of subsidy supported preferential interest rate for 
agricultural products.   
Reply:  
The amount of subsidy support preferential interest rate for agriculture products was included in 
table DS: 2 (investment subsidies to low -income agriculture producers) in notification 
G/AG/N/EGY/3.  
 
Question 7:  Could Egypt clarify the reasons why preferential interest rate support was not 
include d in notification G/AG/N/EGY/3?  
Reply:  
The amount of subsidy support preferential interest rate for agriculture products was included in 
table DS: 2 (investment subsidie s to low -income agriculture producers) in notification 
G/AG/N/EGY/3.  
 
4.1.1.2.3 Market access  
4.24, p. 110  
Egypt currently imposes export duties on sugar and feed components. Pursuant to Minister of 
Commerce and Industry Decree No. 469/2017 of 30 March 2017, a fee of LE 3,000 per ton was 
imposed on exports of sugar. Pursuant to article 7 of Law No. 118/1975, the exportation of certain 
commodities can be prohibited or restricted by ministerial decree under certain circumstances. The 
Government did so for rice between 2008 and 2014.  
 
Question 8:  Could Egypt list the circumstances under which the Government could prohibit or 
restrict the exportation of certain commodities?  
Reply:  
Egypt introduces export restrictions in accordance with provisions of Article X I or Article XX of 
GATT 1994 such as in case of threat of shortage of foodstuff or for the conservation of natural 
resources.  
 
4.1.1.2.4 The Food Subsidy Programme  
4.26, p. 111  
4.26. As mentioned above, in view of the increasing gap between population growth and that of 
domestic agricultural production and for historical and social reasons, the Government subsidizes 
the prices of basic foodstuffs such as bread, wheat, rice, sugar  and edible oils, including in certain 
instances (wheat/bread) subsidies to food processors. The number of beneficiaries of bread 
subsidies is 82.2 million.  
 
Question 9:  Please provide the amount of market price support for bread, rice, sugar and edible 
oils. 
 
Reply:  
The government of Egypt has moved towards a cash based food subsidy program whereby the 
subsidy is 50 L.E. /beneficiary to spend on 44  selected food products redeemable in State -owned 
shops or partnered private shops. The products are sold at market prices not at subsidized prices.  
 
The only subsidized product is bread five loaves of bread per day at a EGP  0.05 per loaf. H owever, 
beneficiaries can convert their unused "bread quota" into points to spend on other products. The 
government has stopped subsidizing flour used in bakeries selling subsidized bread. Instead, the WT/TPR/M/367/Add.1  
 
- 126 - 
 
  subsidies are tied to the actual bread purchased by be neficiaries, estimated to save EGP  8 billion 
(US$447 million) on 2017/18 food subsidies.  
Question 10:  Could Egypt clarify the reasons why market price support for these products was 
not included in notification G/AG/N/EGY/3?  
 
Reply:  
As explained, there is no market price support for these products. We recognize that the food 
subsidy program falls under the green box and hence should be notified accordingly. Currently, we 
are taking stock of all the trade related measures in the area o f Agriculture to assess them, 
prepare the necessary notifications and submit them in the Committee in Agriculture.  WT/TPR/M/367/Add.1  
 
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  DOMINICAN REPUBLIC  
Replies to questions from the Dominican Republic  
 
Document WT/TPR/S/ 367 
QUESTIONS  
SUMMARY  
Page12  
Paragraph 15:  "Egypt has prohibitions and restrictions on imports for economic, environmental, 
health, religious, security, sanitary and phytosanitary reasons. These prohibitions and restrictions 
affect all trading partners. Import prohibitions apply, among others, to chicken offal and 
extremities, poultry livers, goods bearing religious marks, and several pesticides and hazardous 
chemicals. In addition, the used products are subject to import restrictions, which must satisfy 
certain conditions. There are a number of go ods subject to quality control at the time of import, 
and a relatively large number of products whose import is subject to "special conditions" and 
requires a license, such as motor vehicles for the transport of people, shoes, clothing, home 
textiles, carp ets, vehicle parts, household appliances, spectacles and watches, petroleum products, 
milk and dairy products, oils and fats, pasta and soap. Finally, the importation of certain products 
is subject to specific administrative procedures and requires governm ent permits as in the case of 
wheat grain, corn used for the feed industry and soybeans for oil extraction. Egypt has not 
submitted any notification to the WTO about its licensing regime."  
 
Question 1 : Are these measures compatible with the Agreement for the Import Licensing 
Procedure that came into effect on January 1, 1995, which, according to Art. 7.3, provides for 
notification of the measures adopted. When Egypt plans to make such notifications?  
 
Reply:  
Yes, the aforementioned measures are compatible w ith the Import Licensing Agreement.  
We are currently taking stock of all the trade related regulations that have not been previously 
notified in order to prepare and submit the appropriate notifications in the context of the relevant 
WTO committees. Howeve r, this task requires huge human and technical capacities.  
 
2. COMMERCIAL POLICIES AND PRACTICES, BY MEASURES  
3.1 Measures that Directly Affect Imports  
3.1.1 Customs Procedures and Requirements and Customs Valuation  
3.1.1.1 Customs Procedures  
Page 43  
Parag raph 3.3  "The work of the Customs Authority complies with several international 
conventions and commitments, including Egypt's membership of the World Customs Organization 
(WCO), its use of the Harmonized System and its commitments under the WTO. In Januar y 2008, 
Egypt adhered to the revised Kyoto Convention for the simplification and harmonization of the 
WCO customs procedures (Presidential Decree No. 334/2007). The Egyptian Parliament approved 
on June 22, 2017 the Trade Facilitation Agreement (TFA) of the  WTO, which was ratified by 
Presidential Decree No. 149/2017. However, at the beginning of November 2017, the TFA 
acceptance instrument had not yet been deposited with the WTO. "  
 
Question 2 : When does Egypt plan to deposit the instrument of Acceptance of the Trade 
Facilitation Agreement (TFA) in the Secretariat of the World Trade Organization (WTO)?  
 
Reply:  
Great efforts were exerted to ratify the TFA, Trade Facilitation department (TFD) under the 
auspices of Trade Agreements Sector, Ministry of Trade and Industry went through all the 
complicated domestic procedures required for the completion of ratification process. The 
agreement was discussed through the Foreign Affairs and Contracts Review Committee at the 
Ministry of Foreign Affairs. TFD responded to a ll inquiries related to the agreement and its 
provisions, explained the vitality of TFA to obtain domestic support required to ratify the 
agreement, then TFA was ratified through two sessions of the Economic Committee of the 
parliament and hence presented to the plenary session that approved to ratify TFA on 22 June 
2017 and ratified by Pr esidential Decree No. 149/2017.  
 WT/TPR/M/367/Add.1  
 
- 128 - 
 
  As for depositing the instrument, Egypt already communicated with the WTO Secretariat and the 
legal department concerning TFA instrument of acceptance. Egypt is about to deposit the 
instrument in accordance with the model document set by the WTO Secretariat which is unified for 
all Member States confirming that TFA will be attached or annexed to the Marrakech Agreement.  WT/TPR/M/367/Add.1  
 
- 129 - 
 
  ECUADOR  
 
Replies to questions from Ecuador  
 
Report of the Secretariat  
Question 1 : According to page 44, point 3.8: Should the accompanying documents for imports be 
certified or authenticated by the Egyptian authorities in order to allow the entry of goods from 
abroad? 
 
Reply : 
Yes, the accompanying documents for imports should be certified or authenticated by the Egyptian 
authorities in order to allow the entry of goods from abroad . 
 
The purpose of authentication is to keep a record of the entities exporting to Egypt  in order to 
easily access their information in the Egyptian embassies abroad in case of doubt in the 
documents.  
 
However it should be noted that in the case of origin certificate and its accompanying documents 
joint ministerial decree no. 573/2008 allows for non -authentication of these certificates for the 
countries with which Egypt had signed trade agreements and provided that it is on reciprocal 
basis.  
 
Question 2 : According to page 45, point 3.9: What information should be included in the single 
admini strative document? Are you replacing some import documents or is it an additional one?  
Reply:  
The issuance of Single Administrative Document SAD by the Minister of Finance's Decree  No. 
40/2017. It is the new electronic form of the customs declaration. It h as replaced the old customs 
declaration form as part of moving forward towards digitalization of customs documents. It is a 
customs release document that combines both the administrative requirements of the customs 
administration and the control authoritie s. 
 
The information contained in this document are as follows:  
A- General Information (type of customs regime, importer's information, declarant information, 
customs office, etc…).  
B- Manifest Data.  
C- Invoice Data.  
D- Control authorities' information (results of examination & inspection).  
E- Customs Release information for exit gates.  
 
Question 3 : According to page 46, paragraph 3.16: "The GOEIC can perform quality control of the 
imported goods within a week from the date of importation [¼]. If the examined samples d o not 
comply with the regulations, the GOEIC can examine up to 2% of the remaining packages before 
rejecting the shipment. The rejected goods must be re -exported or destroyed. In the case of food, 
all imports are subject to inspection with no exception."  
 
Could Egypt indicates how the inspection of perishable goods is performed within the framework of 
GOEIC control, how is the inspection prioritized and what treatment is given to that merchandise?  
Reply:  
The inspection of perishable goods is performed with in the framework of GOEIC control, and the 
priority of inspection and treatment which is given to these are stated in Articles (85, 86) of The 
Executive Regulation on Imports and Export  (770/2005).  
 
Question 4 : According to page 50, paragraph 3.32: "If the  difference between the declared value 
and the estimated correct value of the goods exceeds 20%, a fine equivalent to 15% of the 
customs duty on the price difference will be imposed."  
 
Could you inform us how the difference between the declared value and the value that is 
considered correct is determined, for the purpose of paying the 15% fine?On what system, price, 
cost or value that determination is made, according to the WTO Customs V aluation Agreement?  
 WT/TPR/M/367/Add.1  
 
- 130 - 
 
  Reply:  
1) The ECA does not accept the transaction value if there are sol id grounds that prove that the 
declared value is incorrect. One of the reasons that cause the ECA to refuse the declared 
value is forged documents.  
2) To give an illust ration for the interpretation of this article,  allow us to explain through a 
practical case the ECA is currently working on.  
3) There are more than 300 certificates of origin (EURO 1) tha t were sent from the EU during  
4) 2017. Initial verification of certificates showed some blurred seals. Th e ECA notified the 
issuing authorities of the 14 -member countries; only 2 countr ies responded. The 
association agreement grants a period of 10 months for reply. Given that the ECA has 
prepared for the verification of origin and value through a common application with the EU 
but the latter did  not declare the commencement of exchange. Accordingly, it is not 
possible to accept the transaction value and release takes place through a letter  of 
guarantee, until the fina l determination of the transaction value.  
5) According to the WTO valuation agreement, if it is difficult to apply the transaction value 
method, the identical or similar goods methods are to be adop ted in respective order. 
These methods, allow the customs administration to use the referential prices of identical or 
similar goods within six months from the date of importation for guidance.  
6) It has been acknowledged that the discounts during busine ss practices could reach up to 
20%.  Any excessive discounts are not acceptable in international commercial practices.  
7) The 15% customs fine is calculated on the difference betw een the declared value and the 
estimated value reached through using one of the alternativ e methods and not on the 
whole value for customs purposes.  
8) Let's assume that the customs value was $100 and the impo rter tried to evade 20%, which 
is equal to US$20, accordingl y, the ECA shall collect the 15 % which is equal to $3 only.  
 
Question 5 : In accordance with page 58, par agraph 3.52: "Although in most cases the applied 
MFN rates are considerably lower than the bound rates, in the 2017 tariff there are 46 lines which 
are levied higher than the bound rates. In some cases, this is due to the recent tariff increases 
establishe d by the presidential decrees."  
 
Could Egypt indicate what measures would be taken to adjust these levels to its consolidated 
ceilings, in accordance with its Schedule of Concessions annexed to the WTO. Could Egypt tell us 
what those 46 tariff lines would be? 
 
Reply:  
Egypt is currently reviewing the transposition of its schedules of commitments from one HS 
version to another as it has been discovered that there is a need for rectification for a number of 
tariff lines the bound tariffs of which were wrongly transposed and the appropriate procedures will 
be taken in the context of the Committee on Market Access.  
 
It should also be noted that according to the Egyptian Legislation, WTO schedules of Commitments 
are superior to National Law. Hence, in cases were t he applied tariff exceeds the bound tariff, the 
bound tariff is applied to imports from WTO members. In addition, in preparing the new applied 
tariff in accordance with HS 2017, Egypt will ensure a unified tariff for both WTO members and 
non-WTO members se t at the bound rate levels or below.  
 
Question 6 : In accordance with pages 68 and 69, Table 3.16:"Goods imported under special 
conditions, in relation to the conditions imposed for the importation of shoes, leather bags, 
clothing, garments, etc." It is det ermined that the name of the producer, the country of origin, the 
type of fabric, the percentages of the cloth mixture and the name of the importer should be 
printed on the fabric, at equal intervals, except for these varieties: (a) goods classified in the  
Chapter 58 of the SA; (b) synthetic mink; (c) thick and opaque curtains; (d) cases approved by 
the Appeals Committee.  
 
Could Egypt inform us what legitimate objectives are behind the measure, and how that 
requirement would not be affecting the sale, purchase, transport, distribution and use of these 
imported products in the domestic market, under the principle of no discrimination?  
 
Reply:  
The objective of those measures is to ensure the conformity of the imported goods with the 
standards and regulati ons approved by the Egyptian organization for Standardization and Quality WT/TPR/M/367/Add.1  
 
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  especially that Egypt lacks an appropriate market surveillance mechanism. Furthermore, the 
measures aim at protecting the consumers from deceptive practices.  
These measures are non - discriminatory in nature since the domestic producers are 
mandated to abide by the same Egyptian standards in this respect namely:  
 * ES no. 7266, part 1," safety and health criteria and labelling for textile products  
   part 1 : dyeing yarns"  
 * ES no. 7266, part 2," safety and health criteria and labelling for textile products  
   part 2 : dyed, printed or finishing fabric"  
 * ES no. 7266, part 3," safety and health criteria and labelling for textile products  
   part 3 : apparel and home textil e " 
  * ES no. 7266, part 4 " safety and health criteria and labelling for textile products  
   part 4 : Clothing "  
  * ES no. 7266, part 5" safety and health criteria and labelling for textile products  
   part 5 : carpets and rugs "  
 
In accordance with pag es 70 and 71, paragraph 3.75 and table 3.17: Main categories of products 
subject to inspection fees.  
 
In this regard, the inspection is a service that applies to all imports regardless of the type of 
merchandise. In that sense, Could you tell us why there are different rates for the same service. 
How that difference of values of the rate between one product and another is adjusted to the 
approximate cost of the inspection for the different types of merchandise without it being able to 
constitute an indirect  protection to the domestic producers of those goods? Additionally, because 
the calculation of this rate is produced by weight, does Egypt consider that the measure could be 
more a tax than a service?  
 
Reply:  
As stated in the secretariat report in paragrap h 3.75 "Inspection fees are not significant, Table 
3.17 contains examples of them." Those fees are proportionate to the rendered services thus they 
are not taxes and are not imposed to protect the domestic producers. Quality control is necessary 
to ensure the conformity of the imported goods with the standards and regulations approved by 
EOS. 
 
Question 7: In accordance with page 71 Paragraph 3.76, in relation to the Ministerial Decree No. 
24/2017 that includes the regulation of Decree No. 2992/2016, provides for the necessary 
procedures to import strategic agricultural products.  
 
"According to this Decree, the importation of such products is prohibited without the prior written 
authorization of the GOEIC, except in the case of products imported by pub lic authorities. To 
obtain that approval, the goods must undergo an inspection before shipment. This inspection must 
be carried out by international inspection companies registered with GOEIC, after obtaining 
accreditation from the Egyptian Accreditation C ouncil; and there are currently 10 companies of 
that type. This inspection does not necessarily exclude inspections that the GOEIC can perform 
when goods arrive in Egypt. The importer is the one who must assume all the expenses."  
 
Could Egypt inform us how  this requirement complies with the provisions of non -discrimination 
when the sale and supply of these goods in the internal market would be affected, and thus 
affecting the normal conditions of competition of the imported products with  similar national 
products?  
 
Reply:  
The goods stated in prime minister decree and the ministerial decree are strategic products that 
affect the health and safety of our people. Hence, it was imperative to regulate their importation.  
Prime Minister Decree No. 2992/2016 Organizing Imports of Strategic Agricultural Commodities 
and Ministerial Decree No.24/2017 set out the import permit requirements for the strategic 
agricultural commodities wheat grains; corn used for the feed industry; and soya bean seeds. The 
importation  of these commodities is prohibited without an import permit from the General 
Organization for Export and Import control (GOEIC) however this does not apply to commodities 
imported by governmental bodies.  
 WT/TPR/M/367/Add.1  
 
- 132 - 
 
  GOEIC is the sole authority to inspect the consign ments upon their arrival according to the 
specified Egyptian standards and the other requirements set by Plant Quarantine. The importer 
may request that the goods be subject to pre -shipment inspection, in this case pre -shipment 
inspection should be carried  out by one of the international surveillance and inspection companies 
registered at the GOEIC. Yet, pre -shipment inspection does not preclude inspection at the port of 
entry.  
 
Food Safety:  
Question 8: In accordance with page 99; section 3.3.3; paragraph 3.1874: Law No. 48/1941, as 
amended by Law No. 281/1994, specifies the different types of fraud and deception and 
establishes the sanctions applicable to deception in relation to food, animal feed and medicines. 
This Law prohibits the importation of food, animal feed and deteriorated medicines. Law No. 
10/1966 includes the Regulation of Food Control and Distribution and specifies that the distribution 
of food is prohibited when they do not comply with the norms of Egypt, when they are unfit for 
human consum ption or when they are mixed with harmful food additives, toxic substances, etc.).  
 
Is there a list of harmful food additives and toxic substances which are considered harmful to food 
products?  
 
Reply:  
The Available list is for approved food additives and there is no specific list for harmful food 
additives and toxic substance which are considered harmful to food products,  as any other 
additives not enclosed in the national food additives list are tacitly considered not permissible.  
 
Question 9 In accordanc e with page 99; section 3.3.3; paragraph 3.176: The GOEIC's traceability 
system for agricultural products allows exporters to record all data, from the beginning of the 
agricultural production process to the export of the product.  How is the issue of trace ability in 
livestock products handled?  
 
Reply:  
GOEIC previously ha d a project to establish a trace bility system for Agricultural products. 
However, this project was suspended due to lack of technical capacity and the complexity of the 
supply chain.  
 
Animal  Health:  
Question 1 0: According to page 98, paragraph 3.171 it is mentioned that "The consignment must 
be accompanied by a veterinary certificate issued by the competent authority of the country of 
origin and authenticated by the corresponding Egyptian consulate." Now, if the  veterinary export 
certificates are issued by the Veterinary Authority of the Country based on compliance with the 
animal health requirements established by the exporting country, what would be the objective of 
authenticating it by the corresponding Egypti an Consulate?  
 
Reply:  
Authentication is considered as a reference in case of problems appeared during the 
exporting/importing process.  
 
Question 1 1: Pursuant to page 98, paragraph 3.172., it is mentioned: "During the period under 
review, the GOVS has adopted various sanitary and phytosanitary measures, such as "zoning"in 
imports of one -day birds from countries where avian influenza has been detected and the 
application of controls for the importation of live cattle from countries where bluetongue disea se 
has been detected. These measures entail the sanitary isolation of animals in disease -free areas, 
testing and vaccination of animals. "In this sense, the doubt is highlighted because only two (2) 
certifications are established for cattle, however in the  Terrestrial Animal Health Code of the World 
Organization for Animal Health in Chapter 8.3. "Infection with the bluetongue virus", in article 
8.3.8. "Recommendations for imports from countries or zones infected with the bluetongue virus". 
There are six san itary certifications to which countries can mention for trade in livestock 
merchandise, so that this numeral presented only limits to two possibilities and therefore it is 
omitting the other guidelines which can be used for certification for the export of live bovines.  
 
In this regard, we request clarification of this point and we urge that the Egyptian regulations 
consider each of the guidelines of the OIE Terrestrial Animal Health Code.  
 WT/TPR/M/367/Add.1  
 
- 133 - 
 
  Reply:  
General organization for veterinary services kindly request t he Ecuadorian government to revise 
the formulation of this questions in order for GOVS to respond to the above mentioned question 
properly.  
 
Plant Health:  
According to page 91, paragraph 3.169: "One of the phytosanitary measures that have just been 
adopted  is the temporary suspension of the importation of ornamental plants and fruit tree 
seedlings from the countries where Xylellafastidiosa  has been detected". In the light of this 
comment, we inform you that the aforementioned pest is found in our list of Quarantine Pests not 
present in Ecuador regulated by Resolution 122 of September 15, 2017, 
(http://www.agrocalidad.gob.ec/wp - content / up loads / 2017/10 / resolution_122_PC.pdf); and 
we would like to know the repercussions of having taken this measure with the following 
questions:  
 
Question 1 2: By suspending imports, wouldn't Egypt be blocking trade with this measure?  
 
Reply:  
As Xyllela fastidiosa is a devastating pest Egypt has banned the trade on it as an emergency action 
from all infected countries for all host plants until conducting a quick PRA as well as regional PRA 
with NEPPO. The PRA initially indicated that there is a high proba bility of introduction of this pest 
so risk is high. However, the ban was removed on host plant not intended for cultivation where 
trade was suspended only for propagation material.  
 
Question 1 3: For the adoption of the measure, was an ARP developed?  
 
Reply: 
Currently a prolonged and comprehensive PRA is under development to propose risk mitigation 
measures if any to regulate trade.  
 
Question 1 4: Did the affected countries have any objections?  
 
Reply:  
No State had objected to the decision of Egypt. The economic, social and environmental impact of 
this pest is scientifically proven by many nations in order to achieve the acceptable level of 
protection.  
 
General Topics:  
Question 1 5: What are the activities related to the monitoring and controlling of plant  pests that 
the Egyptian ONPF (NPPO) executes?  
 
Reply:  
The NPPO regulates monitoring, controlling and surveillance of plant pest activities with the 
Research Institutes .A joint committee is established to conduct surveillance. The work between 
the NPPO and Research Institutes is managed through signed agreement with a clear delegation of 
tasks. An annual action plan is established to handle survey for strategic crops, emerging pests as 
well pests of quarantine concern reported in neighbo uring countries o r trading partners.  
 
Question 1 6: What type of treatment is applied to the wood packaging material that is imported 
into Egypt?  
 
Reply:  
Egypt complies with ISPM 15 which was notified under G/SPS/N/EGY/2 in September 2005.  
 
Egypt Report:  
Question 1 7: Paragraph 4.9 indicates that, since 2015, the Government of Egypt has reduced 
"the number of documents necessary for importation and exportation". Similarly, paragraph 5.10 
indicates that "No tariff quota or import restriction applies to agricultural produ cts, with the 
exception of sanitary and phytosanitary requirements compatible with WTO rules".  
 
What is the registration and qualification process that must be done to export flowers to Egypt?  WT/TPR/M/367/Add.1  
 
- 134 - 
 
  Reply:  
 The registration is obtained from the Agriculture Crops Seeds Committee.  
 The documentation required to import flowers are as follows:  
1. Import permit  
2. Invoice  
3. Certificate of origin  
4. Bill of lading  
5. Phytosanitary certificate.  
 
Question 1 8: Regar ding paragraph 5.1 which states that: "Egypt continues to play an active role 
on the multilateral scene with regard to the harmonization of its general approach to the national 
quality infrastructure system in a manner compatible with the major internation al agreements."  
How does the national quality infrastructure system work and what are the 
policies which have been implemented?  
Reply:  
 
The Egyptian National Quality infrastructure (NQI) is based on the best practice approach using 
Standards, Metrology, Accreditation, Conformity assessment and market surveillance as the basis 
for the NQI. Egypt has taken vast strides in the development of its building blocks of the NQI, 
however, there are areas that need further development such as market surveillance.  
 
Policies and measures implemented in respect of developing the NQI aim  at increasing the 
competitiveness of the Egyptian products in the international and regional markets along with 
consumers  and environment protection.  
 
On standardization, the Egyptian Organization for standardization and Quality (EOS), a semi -
autonomous body affiliated with the Ministry of Trade and Industry, is the competent and official 
body responsible for standardization activities, quality control and industrial metrology. EOS has 
exerted great efforts towards the alignment of Egyptian standards with international ones as 
apparent from the secretariat rep ort. 
On Metrology activities, the National Institute of Standards (NIS ) was  created in 1963 to 
become responsible for realizing an d disseminating the basic units of measurements and 
advancing measurement standards and technologies to enhance the performance of the national 
economy. It is worth mentioning that since 2000, NIS is a signatory to CIPM Mutual recognition 
Arrangement.  
On A ccreditation, t he Egyptian Accreditation Council (EGAC), was established by Presidential 
Decree No. 312/1996 and re -organized by Presidential Decree No. 248/2006. The EGAC is the sole 
national body for the assessment and accreditation of conformity assessm ent bodies and 
laboratories in Egypt performing testing and calibration, inspection and certification activities for 
products, systems and personnel.  The EGAC provides accreditation services in accordance with 
accepted established principles of quality ass urance and the internationally agreed requirements 
and recommendations for the operation of accreditation systems. In this respect, the EGAC 
operates in accordance with International Accreditation Forum (IAF) and International Laboratory 
Cooperation (ILAC)  guidelines and ISO/IEC 17011:2004.  
 
On Conformity Assessment, Egypt possess conformity assessment bodies - both public and 
private sector - accredited by the EGAC. Accreditation is conducted according to the requirements 
of the following international sta ndards: (a) testing and calibration including sampling: ISO/IEC 
17025; (b) quality systems certification: ISO/IEC 17021; (c) product certification: ISO/IEC Guide 
65; (d) personnel certifiers: ISO/IEC 17024; and (e) inspection bodies: ISO/IEC 17020.  
 
It is also worth mentioning that for product certification, EOS is responsible for granting the 
Egyptian Quality and conformity marks and certificates for industrial products, and the Halal Mark.  
 
For system certification, the companies working as certification bodies of management system 
standards are private companies, and those companies are accredited by EGAC.  
 WT/TPR/M/367/Add.1  
 
- 135 - 
 
  On control and market surveillance, although Egypt does not possess a sophisticated market 
surveillance system, Egypt adopts pre -market surveillance through the Industrial Control Authority 
(ICA), which inspects products at the factories level.  
 
For market surveillance, it is a multi -sector task ca rried out by numerous agencies including the  
Ministry of Supply and Internal Trade, Egyptian Organization  for Standardization and Quality 
(EOS), the General Organization For Veterinary Services  (GOVS), the Central Administration For 
Plant Quarantine(CAPQ), the Chemistry administration (affiliate body to the Ministry of Industry 
and Trade), the Ministry of Hea lth & Population, the Ministry of Communication and Information 
technology, the Ministry of  Housing and Urban Communities.  
 
However, for food products the National Food Safety Authority was established according to Law 
No. 1/2017. It shall solely undertake  the functions of control and handling of food to prevent 
health hazards arising from human consumptio n of food through formulating necessary regulations 
and taking the necessary measures to protect human health.  
 
Noting that the Egyptian market surveillan ce system has not reached the appropriate level of 
sophistication, Egypt applies mandatory quality control requirements at the border as per 
Ministerial Decree No. 770/ 2005 on the Executive Regulation to Implement Import and Export 
Law No.118/ 1975 as wel l as Inspection and Control Procedures of Imported And Exported Goods.  
The General Organization for Import and Export Control (GOEIC) i s the umbrella under 
which all relevant regulatory authorities (Ministry of Agriculture, Ministry of Health … etc.) are i n 
charge of inspection and conformity assessment of imported agricultural, food products and 
industrial products . 
 
GOEIC possess accredited testing laboratories, however with the aim of facilitating trade, GOEIC 
also recognizes a number of private inspecti on bodies.  
 
  WT/TPR/M/367/Add.1  
 
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  MALAYSIA  
Replies to questions from Malaysia  
 
SECRETARIAT REPORT  
3.3.6  Government Procurement  
Paragraph 3.215, P.95  
The Secretariat reports that, the two main procedures for public procurement of goods and 
services in Egypt are public tender and public reverse auction.  
 
Question :  
1. Appreciate if Egypt can provide the threshold for public tender and public reverse 
auctions.  
 
Reply:  
In general, all the government entities identify their needs and requirements at the beginning of 
each fiscal year according to the government annual plan and strategy. Hence, associated prices 
and required tenders are determined and as a  result, the budget of each government agency is 
approved. Given these circumstances, it is hard to define specific threshold for different sectors of 
the economy.  
 
In urgent cases,  according to amended article (7 ) of Law 89/1998 and its regulations  by the 
presidential decree 82/2013: “ It is permissible in urgent cases which cannot tolerate applying the 
tender or the practice (negotiating) procedure in all their types, that contracting would take place 
by way of direct agreement according to permit from : 
 
a- The Head of the Authority, or the Head of the Administration, and whoever has his 
 authorities in other entities: L.E 500,000, in connection with the purchase of movables, or 
 receiving of services or consultancy studies or technical works or transport enterprises.  
b- 1,000,000 for cont racting works and real estates.  
c- The competent Minister, and whoever shall be delegated his authorities, or the Governor, in 
 relation to what shall not exceed in value L.E 5,000,000 in relation to the purchase of 
 movables or receiving of services, or consultancy studies, or technical works, or transport 
 contracting works, and the amount of 10,000,0000 pounds in relation to enterprising 
 contracting works.  
-  
In cases of vaccines and medicines of strategic nature and  baby formula in accordance with the 
terms and conditions of emergency cases, the Minister of Health is exempted from the above -
mentioned thresholds as prescribed by their executive regulations.  ‎ 
 
2. Is there any bid complaints mechanism should bidders want to file a complaint on 
procedures that are non -compliance to the Tender Laws? If yes, appreciate if Egypt 
could provide information on the mechanism.  
 
Reply:  
Yes, there is bid complaints mechanism.  
Article(41) of law  89/1998 and its executive regulation, st ipulates that: "an office, in Ministry of 
Finance, shall be set up to monitor and follow up the government contacts, the assignment and 
task of which shall be to receive the complaints related to any violation of the provision of this law. 
A decree from th e Prime Minister shall be promulgated, organizing it, and determining its 
competencies, and the operating rules and procedures thereof".  
 
Article 42 of law 89/1998 and its executive regulation stipulate that: "the two contracting parties 
may – in case a di spute shall arise during the implementation of the contract – agree to settling it 
through arbitration, with the approval of the competent Minister, providing that each party shall be 
committed to continue implementing its obligations arising from the cont ract".  
 
Paragraph 3.216, p.95  
The Secretariat reports that, limited tenders are used where the nature of the product requires 
participation by selected available suppliers in Egypt or abroad that are considered to have 
technical and financial competence and a good reputation.  WT/TPR/M/367/Add.1  
 
- 137 - 
 
  Question : 
3. Appreciate if Egypt could explain how limited tenders are identified and how the 
suppliers are notified.  
 
Reply:  
Article (3)   of Tender Law 89/1998 and a rticle (34), (35)  of its e xecutive  regulation stipulate  the 
condition of limited tenders which is "contracting shall be by way of l imited tenders in cases whose 
nature require the restriction of participation in tender to certain suppliers or contractors, 
consultants, technicians, experts, whether in Egypt or abroad, provided that they have the 
technical and financial efficiency as well as good reputati on provisions  and track record . 
 
The required information is published on Government Procurement Agency E -tender portal, which 
is www.etenders.gov.eg .  
 
Prime Minister’s decrees No.  1033/2010 and No. 463/2012 were issued to mandate entire 
government entities to use this portal for the procurement transactions along with its entire life 
cycle, except the ones pertinent to  national security and defence.  
 
Paragraph 3.71, p.60 
The Ministry of Health prohibits the importation. The legal basis for this prohibition is the decision 
taken by the Technical Committee of the Drug Control Commission on 19 February 2009. However, 
these items may be marketed in Egypt through local manufact ure under licence, or by sending 
ingredients and premixes to a local pharmaceutical firm to be prepared and packed in accordance 
with Ministry of Health specifications. Until recently, only local factories were allowed to produce 
food supplements, and to i mport raw materials used in the manufacturing process. However, 
Egypt is currently allowing importation of certain food supplements as bulk -type registered 
products that are subsequently packed in Egypt according to market needs  
 
Question :  
4. Can Egypt expla in the reasoning behind the decision taken by Technical Committee 
of the Drug Control Commission which  restricts the importation of natural 
products, vitamins, and food supplements in their finished form?  
 
Reply:  
Prohibiting the importation of natural products, vitamins, and food supplements in their finished 
form protects the market from products imported with no reference, considering that these 
products are not essential pharmaceutical products. However, as ment ioned in the question above, 
Egypt allows importation of bulk and premixes products which undergo further manufacturing 
steps as dividing and final packaging.  
 
3.1.4  Import prohibitions, restrictions, and licensing  
Para 3.67, p.59  
 
Egypt has not submitted any notifications with respect to its import licensing regime to the WTO. 
The authorities indicated that import prohibitions and restrictions are maintained for economic, 
environmental, health, religious, safety, sanitary, and phyto sanitary reasons.  
 
Question:  
5. Can Egypt share with us when she intends to update her notifications on import 
licensing regimes?  
 
Reply:  
The general principle is that imports are not subject to import licensing procedures. However, it 
may be applied to ensure the appropriate application of SPS, national security and environmental 
measures.  
 
We are currently taking stock of all the trade related regulations that have not been previously 
notified in order to prepare and submit the appropriate notifications  in the context of the relevant 
WTO committees. However, this task requires vast human and technical capacities.  
 
 
 WT/TPR/M/367/Add.1  
 
- 138 - 
 
  GOVERNMENT REPORT  
 
4.1 Trade Policy Objectives  
Para 4.2, p.9  
 
4.2. Within the context of the 2030 SDS, Egypt’s near -term trade policy objectives seek to ensure 
that exports contribute to 25% of the annual GDP growth rate, that exports increase year -on-year 
by at least 10% and that the balance -of-trade deficit is redu ced to 4% of GDP by 2030.  
 
Question:  
6. What measures are envisioned to lower Egypt’s balance -of-trade deficit to achieve 
the target leading up to 2030?  
 
Reply:  
In pursuance of lowering Egypt’s balance of trade deficit, Egypt’s trade policy objectives aim at 
increasing exports and its share in GDP through adopting a number of policies and measures 
including, inter  alia: 
 
- The establishment of the Export De velopment Authority (EDA) which  is an Egyptian 
governmental entity under the Ministry of Trade and Industry. The EDA is responsible for 
the development of export strategies; providing comprehensive market research and 
export strategies for projects in parallel with technical assistance and business 
development services to help Egyptian products comply with the international standards 
and market entry requirements.  
- Reviewing the legislations regulating import and export law and the executive regulation ;  
- Simplifying export and import proc edures through reviewing and reengineering  and 
automating the process;  
- Enhancing the competitiveness of the Egyptian products through the provision of 
specialized technical services in various areas including energy saving , and improvement 
of production and technology methods ;  
- Improving the quality infrastructure including the establishment of accredited laboratories 
; 
- Developing a Logistics network in cooperation with the private sector;  
- Fully utilizing the existing network of preferential trade agreements to which Egypt is a 
party;  
- Enhancing the marketing and promotion of Egyptian exports.  
 
4.3 Trade Facilitation  
Para 4.7, p.10  
 
4.7. A new WTO Enquiry Point has been established in support of the newer WTO arrangements 
that include the TFA. The GoE has also activated a Single Administrative Document (SAD) system 
for import and export processes in this context. The introduction of the SAD system was carried 
out in 2017 to continue improving trade facilitation processes, with a special emphasis on digital 
modalities to reduce costs and time for all parties to a transaction. This is a preliminary step 
towards the eventual implementation of an electronic single -window system.  
 
Question : 
7. Can Egypt share information on how much time and costs will be r educed due to 
the SAD system?  
 
Reply:  
The SAD form incorporated all the data fields needed for customs purposes and regulatory 
controls. SAD is not only a from but rather it is a first step towards several interventions needed 
from the relevant governmental and non -governmental agencies so that the clearance process 
goes smoothly one way forward; i.e., no back and forth.  
 
Egypt now is establishing its National Single Window. A thorough, comprehensive and all -inclusive 
Business Processes Reenginee ring (BPR) is being carried out now in order to adopt a business 
model that guarantees a flexible yet strong automated clearance system encompassing all 
concerned entities. The expectations are as follows:  WT/TPR/M/367/Add.1  
 
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  In terms of time : Parallel processing for a consig nment will save the time needed in the traditional 
practice of doing those steps sequentially. The time saved will depend on the number of involved 
agencies. For instance, if health and phytosanitary controls are due, time will drop to the half; and 
so for th. 
 
In terms of money : Cost related to issuing licenses and getting prior and/or post approvals and the 
associated cost of logistics will drop dramatically. The exact amount and the targeted 
improvements will be among the studies of  establishing the single window.  
 
Secretariat Report & Government Report  
 
Para 3.77, page 64 -65 and Para 4.11, page 10  
 
Secretariat Report Page 64 -65 
3.77.  In accordance with Ministerial Decree No. 43/2016, imports for commercial purposes of a 
number of products will be allowed into Egypt only if they are produced by manufacturing plants or 
imported from the companies owning the trademarks or their distribut ion centres registered in the 
relevant established Register in the GOEIC.33 Registration in, or striking off from this Register is 
decreed by the Minister of Foreign Trade who also has the authority to allow for an exemption from 
some or all the requiremen ts for registration. To register in the relevant registry in the GOEIC, 
manufacturing plants must produce evidence of the trademarks and the trademarked products 
produced under licence from the trademark owners. They must also certify that the producer 
maintains a quality control system. The certificate must be issued by entities accredited by ILAC or 
the International Accreditation Forum (IAF) or an Egyptian or foreign governmental entity 
approved by the Minister of Foreign Trade. In the case of companies owning trademarks, 
registration requires a certificate stating the registration of the trademark and the trademarked 
goods produced, as well as a certificate from the trademark owning company containing the 
distribution centres that are entitled to supply the products bearing the trademark. Likewise, a 
certificate that the trademark owning company maintains a quality control system issued by 
entities accredited by ILAC or IAF or an Egyptian or foreign governmental entity approved by the 
Minister of Foreign Trade must be produced  
 
Government Report Page 10  
4.11. In line with Egypt’s policy of continuous improvement in trade facilitation, the GoE is 
currently preparing to finalize new rules before 2019 that would reduce the number of documents 
required to carr y out import or export transactions to be not more than 3 in total.  
 
Egypt through a Ministerial Decree No.43 issued on 2 February 2016 makes it a mandatory 
requirement for all foreign factories to be registered with the Egyptian General Organisation for 
Export and Import Control (GOEIC) before exporting to Egypt. The Decree took effect since 16 
March 2016, where all Malaysian factories exporting their products to Egypt are obligated to a one -
off online registration with GOEIC on its website and the applic ation must also include the following 
documents:  
 
 A certificate of the legal status of the factory and the production license  
 A statement of the products produced by the factory and the trademarks  
 The trademark of the product and the trademark used under l icense from the owner  
 A certificate to prove that the factory implements a quality control system. Such certificate 
shall be issued from the International Laboratory Accreditation Cooperation (ILAC), the 
International Accreditation Forum (IAF) or from any Egyptian or foreign government entity 
approved by the Minister of Foreign Trade Egypt  
 
Completed applications must be submitted to the Egyptian Embassy in Kuala Lumpur for 
authentication and have to be submitted by -hand to GOEIC by the factory’s (applicant ) legal 
representative or agent. Although MATRADE representative in Cairo has been accorded with the 
status as ‘agent’ as per required in the said decree, our exporters/ manufacturers still consider the 
requirement is a bureaucratic hassle which is impeding  trade processes.  
With regard to trade facilitation improvements, where the GOEIC is currently preparing to finalize 
new rules before 2019 that would reduce the number of documents required to carry out import or 
export transactions, we note that the intro duction of Ministerial Decree No.43 issued on 2 February 
2016 on a mandatory requirement for all foreign factories to register with the Egyptian General WT/TPR/M/367/Add.1  
 
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  Organisation for Export and Import Control (GOEIC) before exporting to Egypt is n ot in line with 
this o bjective.  
 
Questions :  
8. Malaysia would like to seek clarification whether the new rules applied in the 
GOEIC 2019 will further improve the current requirement of Ministerial Decree 
No.43 and how this measure is in line with Egypt’s commitment under WTO ((e. g. 
Trade Facilitation Agreement and Agreement o n Import Licensing Procedures)?  
 
Reply:  
It is important to highlight that Ministerial Decree no. 43/2016 is rather administrative in nature; it 
only requires registration through the submission of documents that already exist in any credible 
entity. However, Egypt regularly reviews its trade related measures and regulations with a view to 
enhancing the business envir onment and facilitating trade. Changes to such measures and 
regulations are duly published.  
 
9. How do the measures in GOEIC’s 2016 rules as per Ministerial Decree No.43 have assisted 
Egypt to safeguard its market against counterfeit products and protecting the interests of 
both consumers and trade mark owners ? 
 
Reply:  
Ministerial Decree no.43/2016 ensures that the entities including manufacturing plants and 
companies owning trademarks  exporting to Egypt maintain a quality control system to ensure that 
the products specified in the Decree and that are used by natural persons are the outcome of a 
quality controlled production process. Furthermore, among the registration requirements for the 
companies owning trademarks the following documents are required:  
 
- A certificate stating the registration of the trademark and the trademarked goods 
produced.  
- A certificate from the trademark owner company containing the distribution centers that 
are entitled to supply the products bearing the trademark.  
 
Such requirements will limit counterfeit goods which will in turn protect the consumers against 
deceptive practices and trademark owners.  
 
10. Malaysia would appreciate if Egypt could elaborate on the trade facilitation 
improvement plans as explained in para 4.11 in the Government Report.  
 
Reply:  
As apparent from the Secretariat and Government reports, Egypt has indeed take huge 
strides in the area of trade facilitation. Yet, it is Egypt’s strong belief that enhancing trade 
facilitation is an unceasing process which requires the regular review and assessment of existing 
trade related measures and regulations with a view to enhancing the business environment and 
facilitating trade. Hence,  changes to trade related measures and regulations are duly published.  
  WT/TPR/M/367/Add.1  
 
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  TURKEY  
Replies to Questions from Turkey  
SECRETARIAT REPORT  
1.2 RECENT ECONOMIC DEVE LEOPMENTS P.16, 1.10  
 
It is highlighted in the Secretariat Report that that “The second wave of reforms is under way 
(November 2017) and aims to improve governance and the investment climate.”  
 
Q1. Could Egypt provide the details of these reforms?  
 
Reply:  
 
As part of our compre hensive reform program, several key measures have been applied and 
others in the pipeline, geared toward improving the investment climate, enhancing competition 
and opening markets for the private sector and strengthening governance. The following is a 
detailed outline of reform measures (November 2017 and beyond).  
Both the  Industrial Land and Licensing Law and the New Investment Law have both been 
enforced (Law and executive regulations).  
 
1) Reforms geared towards improving the investment climate by enhancin g 
competition, opening markets for the private sector, financial inclusion, providing 
access to finance  
 
a. Amendments to the Companies Law: (approved by Parliament in January 
2018)  
 Aims to keep pace with global developments in corporate regulation while 
encouraging SMEs.  
 Grants the ability to establish a limited liability company with only one 
person as a member, with a separate legal entity for the protection 
personal assets from risks.  
 Grants the shareholders the right to sue the management for the dama ges 
that arise as a result of netting contracts.  
 Grants the sharehold ers who own  10% of the company the right to call for 
an extraordinary general assembly without any restrictions.  
 Organize and maximize the performance of the proprietorship sectors, by 
providing ease of decision making and management man oeuvrability.  
 
b. Bankruptcy law: (approved by Parliament in January 2018)  
 Amends the current bankruptcy system.  
 Speeds up the liquidation of non -viable companies, which will increase 
recovery amounts.  
 Allow s for out -of-court company restructurings, permits a standstill on 
creditors that allows a viable company to reorganize and provides safety 
nets for creditors.  
 Reduces the liquidation period for a nonviable company to nine months, 
instead of the current av erage of more than two years.  
 Provides legal alternatives enabling companies to go through debt 
restructuring bankruptcy.  
 Simplify bankruptcy and liquidation procedures to encourage investments 
and risk taking that is often cited as one key constraint for doing business 
in Egypt.  
 Preserve shareholders’ interests  
 
c. Natural Gas Law (executive regulation issued in February 2018)  
 The law and its executive regulation authorize the establishment of an 
independent regulatory body for the Natural Gas Market.  
 The la w will permit for the first time the issuance of licenses for imports 
and distribution of natural gas by the private sector.  
 WT/TPR/M/367/Add.1  
 
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  d. Feed -in tariff program has been approved with more than 30 transactions 
reaching financial closure  
 The program aims to develop 4.0  GW of renewable energy by the private 
sector by 2022.  
 The program has been successful in attracting private sector investors (30 
firms) to the Benban solar complex in Upper Egypt with committed private 
investments worth US $1.8 billion.  
 The project is attracting financing from IFC, EBRD, AIIB among other 
financial institutions.  
 The Egyptian Electricity Transmission Company (EETC) has signed a power 
purchase agreement with a consortium to develop US $250 mn wind power 
station in the Gulf of Suez, within t he feed -in tariff (FiT) program.  
 
e. IPO program  
 The Prime Minister issued a decree in October 31 2017 that explains and 
elaborates the mandate of the IPO inter -ministerial committee along with 
its objectives and targets;  
 The Committee is to approve and anno unce a plan by January 2018 to 
divest stake in at least 5 -6 public entities by end of June 2019; This 
program aims to enhance private sector ownership, enhance governance of 
these public companies, improve financial management, enhance capital 
market capit alization, and raise additional revenues for the Government.  
f. Ongoing work on a plan to financially restructure Egyptian Electricity Holding 
Company  in order to improve financial soundness of the company and enable it to 
engage in commercial transactions w ithout Government guarantee and/or support. 
(Ministry of Finance and Ministry of Electricity would announce the plan by March 
2018)  
 
g. Financial Inclusion initiative by the CBE  
  A unified definition for MSMEs  
 MSMEs initiatives  
 Mortgage finance initiative for  low and middle -income classes  
 Mini-branches regulation  
 Internet banking regulation  
 Mobile payment regulation  
 
h. Engage private sector in transport upgrading plan , public transportation such 
as buses and railways, roads, bridges, and ports.  
 
i. Enhance the role, effectiveness and ability of Egypt’s Competition 
Authority (ongoing)  
 
j. Microfinance law  
 
k. Movable Capital Law  
 
 Executive regulations issued in December 2016  
 Establishing an electronic collateral registry that is geographically unified 
and a llows creditors to search, amend and cancel collaterals online.  
l. Capital markets (amendment)   
 
 Setting up a framework for companies and  the government to issue sukuk.  
 Allowing for trading of futures contracts and the opening of an exchange 
for futures.  
 Allowing for the establishment of a commodities exchange as well as 
privately -owned stock exchanges.  
 Allows for flexibility in listing fees to encourage small companies  
 
m. Financial leasing and factoring  
 Develops and improves the regulation and use of non -banking financial 
services with the aim of improving economic activity   
 First of its kind in Africa  WT/TPR/M/367/Add.1  
 
- 143 - 
 
  2) Reforms geared towards  strengthening governance  
 
a. The Parliament approves Egypt new modern procurement law  by November 
2018 
 modern features  
 effective role and tasks taken by the Government Procurement Agency 
would  
 Measures to enhance operational and commercial practices  
 Measures introduced to enhance Accountability and Integrity  
 
b. Publish by January 2018 main economic aut horities’ final accounts for 
FY 2016/2017  to provide information about operations and financial performance  
 
c. GAGS (General Authority for Government Services) to prepare annual 
procurement plan for FY 2018/2019 by June 2018  
 
d. Adopt a plan to automate Government transactions and services ; streamline  
procedures for government services, including though automated transactions, 
online signature and e -payment  
 
2.4  INVESTMENT REGI ME PG. 38, 2.46  
 
It is stated in the Secretariat Report that  “In the World Bank's Ease of Doing Business Index 2017, 
Egypt ranks 122 out of 190 economies, up from 165 out of 175 in 2007. Despite this considerable 
improvement, numerous challenges to the investment environment remain. Notably, it is 
considered that Egy pt made trading across borders more difficult by making the process of 
obtaining documents more complex and by imposing a cap on foreign exchange deposits and 
withdrawals for imports.”  
 
Q2. Could Egypt explain what measures that Egypt plans to take in ord er to overcome the 
obstacles related to ease of doing business?  
 
Reply:  
 
Recently, Egypt has taken a bundle of measures across several fronts to improve our assessment 
with regard to “Ease of Doing Business”, among which is the continuous reform and amendment of 
several regulations like for example the issuance of the new Investment law 72/2017, and 
implementation of Single Administrative Document (SAD) which is underway, and amending the 
Import & Export Regulation no. 770/2005. The establishment of a  new authority for Food Safety, 
which aims at unifying all issues related to food safety in one authority.  
 
As regards, the new Investment law provides for an administrative unit “Investor Service Centre”; 
in GAFI; which shall provide electronic services s ystem for the company within the Competent 
Authority. This system will provide all the documents, forms, and statements, and linking their 
working systems and databases with the GAFI’s electronic services’ system and database; accept 
the electronic signatu res and  electronic payment of all of their payments. Additionally, this law 
provides a unified national number to be used for all the Investor’s dealings with all the different 
entities in order to facilitate all the dealings with the differen t authorities  within the State.  
 
Moreover, SAD aims at simplifying the procedures and reducing the number of documents required 
for imports and exports and allowing their submission electronically.  
 
COMMENT  
 
According to WTO Secretariat calculations (W/TPR/S/367, p. 8 1) the number of national standards 
aligned with international standards (2002 -2016) is less than %50 of all national standards in 
engineering, chemical, food, measurement, textile, documentation sectors. WTO report (3.151, p. 
83) states, " If relevant mandatory standards have been issued by the Egyptian Authorities, GOEIC 
must conduct the inspection in accordance with national standards". This would cause financial 
burden to the firms and take additional time. As well known, the recognition and adoption of 
international standards are vital because the widespread use of international standards can 
provide a common language among the buyers and sellers. Turkey kindly reminds Egypt that WT/TPR/M/367/Add.1  
 
- 144 - 
 
  according to Article 2.4 of the TBT Agreement, "where techn ical regulations are required and 
relevant international standards exist or their completion is imminent, Members shall use them, or 
the relevant parts of them, as a basis for their technical regulations except when such international 
standards or relevant  parts would be an ineffective or inappropriate means for the fulfilment of the 
legitimate objectives pursued, for instance because of fundamental climatic or geographical factors 
or fundamental technological problems." In this context, Turkey would like t o request Egyptian 
authorities to take into account the comments of Turkey and consider increasing conformity with 
the relevant international standards.  
 
Reply:  
 
 Egypt is fully compliant with the provisions of the TBT agreement. International standards 
are the main reference for Egyptian standards. However, in case of absence of 
international standards, we use other references which are referr ed to in Ministerial 
decrees No. 180/1996, No. 291/2003 which stipulate that in the case of absence of 
Egyptian stan dards, the producers and importers can use:  
- European standards (EN) in case of their absence resort to BS -DIN-NF; 
- US standards (ANS);  
- Japanese standards (JIS).  
  WT/TPR/M/367/Add.1  
 
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  ECUADOR  
Replies to follow up questions from Ecuador  
 
Informe Egipto  
 
¿Podría Egipto indicarnos cuál es el esquema de asociaciones entre los sectores público y privado? 
¿El esquema de asociaciones público y privado contiene incentivos fiscales y arancelarios? ¿Se han 
desarrollado proyectos bajo el esquema de asociaciones entre los sectores  público y privado?  
 
Reply:  
PPP is a long -term contractual relationship between the public sector and the private sector. Law 
no. 67/2010 for partnerships with the private sector in infrastructure projects & public utilities 
states the tendering procedures  and main clauses of the contract between t he Government & 
private sector.  
 
The fundamental aspects of  Egypt’s PPP policy framework are the use of performance -based 
for Public Utilities  contracts under which the private sector participates in project imple mentation 
through its participation in one or aspects of the project’s development and implementation, 
including such project phases as project design, finance, build, operate, manage and/or maintain, 
provided that the public sector repay for those service s after start of operation.  
 
Under the PPP Contract, The Government retains strategic control on the service, secures new 
infrastructure projects which generally reverts back to the Public Sector at the end of the Contract 
Duration, and allocates project a nd performance risks to the party(ies) best able to manage or 
mitigate these risks.  The PPP Central Unit dealing with best experienced firms for Structuring of 
Projects, Technical &  Financial Studies and drafting of contracts and tendering documents to sta rt 
from a point where others ends.  
 
Major projects are implemented or planned for implementation within the framework of public -
private partnership can be described as follow:  
 
1- Awarded PPP Projects  
 
(in million)  
Sector/projects  Project details  Tendering  
authority  Investment 
capital 
(L.E)  
1. New Cairo 
waste water 
plant Construction, financing, operation & 
management of a new Wastewater 
treatment plant with a total capacity of 
250,000 m3/d to treat wastewater.  Ministry of Housing, 
Utilities & Urban 
Develo pment  
 - New Urban 
Communities 
Authority NUCA.  786 WT/TPR/M/367/Add.1  
 
- 146 - 
 
  Sector/projects  Project details  Tendering  
authority  Investment 
capital 
(L.E)  
2. Alexandria 
University 
Mowassat 
Specialized 
Hospital  Construction of a 224 bed hospital with 
Centers of Excellence for the Provision 
of highly specialized services in 
Neurosurgery,  Urology, Nephrology and 
Kidney Transplant University Hospital.   
 
 
 
 
 
Ministry of Higher 
Education - 
Alexandria 
University  775 
3. Alexandria 
University 
Smouha 
Maternity 
Hospital and 
Blood Bank  Construction of a 200 bed Gynecology, 
Obstetrics University Hospital &  a Blood 
Bank located as part of the New 
Smouha Hospital Complex which 
includes the Pediatric and Emergency 
Hospitals.  805 
 
2- Tendered PPP Projects  
 
(in million)  
Sector/p rojects  Project details  Tendering 
authority  Investment 
capital (L.E)  
1. Commercial  
Registry Offices 
Development and 
Automation PPP 
Project  Rollout & Automation of the 
Commercial Registry Offices for 88 
offices around the country 
involving the finance, design, 
develop, automate, operate and 
maintain the offices, and transfer 
back at the end of the contract 
duration.  Ministry of Supply 
and Internal Trade  
- Internal Trade 
Development 
Authority (ITDA)  600 
2. Notarization Offices 
Development and 
Automation PPP 
Project  Rollout & Automation of the 
Notarization Offices for 400 offices 
around the country involving the 
finance, design, develop, 
automate, operate and maintain 
the offices, , and transfer back at 
the end of the contract duration.  Ministry of Justice - 
Ministry of Comm. &  
IT 800 
3. Nile River Bus Ferry  The Nile River Bus Ferry : T he 
required services are as follow :  
1. Purchase, finance and operate 
the River Transport Fleets.  
2. Develop 16 current terminals 
and add 15 new terminals General 
Transportation 
Authorization in 
Cairo / Cairo 
Governorate  900 WT/TPR/M/367/Add.1  
 
- 147 - 
 
  Sector/p rojects  Project details  Tendering 
authority  Investment 
capital (L.E)  
including: Design, Build, Finance, 
Operate and Maintain.  
Transaction & Financial Advisor: 
E&Y  (Abou  Dhabi)  
Technical Advisor: WSP (UK) & 
Dorsch (Egypt)  
Legal Advisor: Eversheds (Abou 
Dhabi)) & Arab Legal Consultants 
(Egypt).  
3. 6 of October dry 
Port PPP Project  Development, finance, design, 
build and operation of a new dry 
port in 6 of October city d ivided to 
2 phases, phase one is located on 
400 feddans - 100 feddans for the 
project and 300 feddans for future 
value added logistics center  
A contract of 30 years, for inland 
custom clearance depot for 
containers imported through the 
various ports on both the 
mediterranean and Red Sea Gener al Authority 
for land and dry 
ports GALDP  1.8 
4. New Schools PPP 
project (phase 1)  Construction of 54 of  the planned 
total of 1000 schools as the 1st 
phase of the National Project for 
Building and Operation of 
Advanced PPP Language Schools.  
The project involve the Design, 
financing, construction, furnishing, 
maintenance and provision of 
Educational services and all the 
other non -core services such as 
facility management and in 
support of the operation of the 
Schools for the new schools in 
selected Governorates as first 
phase.  
Transaction & Financial Advisor: NI 
Capital  
Technical Advisor: Engineering 
Consultancy Dept., Military 
Technical College  
Legal Advisor: Sarie - Eldin & 
Partners  The Ministry of 
Education and 
Vocational Education  1.500  
 Total Capital Investments for Tendered PPP Projects  5.600  
 WT/TPR/M/367/Add.1  
 
- 148 - 
 
  3- PPP Projects under preparation to be Tendered in 2018  
 
(in million)  
Sector /projects  Project details  Tendering authority  Investment 
capital (L.E)  
1. Safaga 
Industrial Port  Development & Upgrade of 
Safaga mining port that 
includes 2 phases:  
1st Phase: includes the 
establishment of the 
infrastructure and 
terminals needed for the 
industry and export of 
liquid bulk (phosphoric 
acid), Solid fertilizer - 
Livestock with meat 
processing, Grain storage 
and milling (silos), 
Agribulk (rice, sugar and 
soybean oilseeds).  
2nd Pha se: reserved for 
Activities of  golden triangle 
Master Plan.  The Executive 
Organization For 
Industrial  & Mining 
Projects / Ministry of 
Industry & Foreign 
Trade  4000 (Phase 1 1500 
Industrial Activities  
2500)  
2. New building for 
faculty of 
commerce - Ain 
shams University  Finance, build, operate and 
maintain a new building for 
Faculty of Commerce - Ain 
shams University in obour 
city on 13300m m2 land 
allocated for the project  Ministry of Higher 
Education represented 
by Ain shams Un iversity  400 
3. Phase 2 for the 
PPP new Schools 
Project  Construction of 100 other 
schools as phase 2 of the 
planned total of 1000 
schools after the signature 
of 1st phase of the 
National Project for 
Building and Operation of 
Advanced PPP Language 
Schools.  
 
The project involve the 
Design, financing, 
construction, furnishing, 
maintenance and provision 
of Educational services and 
all the other non -core 
services such as facility 
management and in 
support of the operation of 
the Schools for the new 
schools in s elected 
Governorates as first 
phase.  The Ministry of 
Education and 
Vocational Education  still under study  
 Total Capital Investments for Projects to be Tendered  1.900  
 
 
 WT/TPR/M/367/Add.1  
 
- 149 - 
 
  4- PPP Pipeline Projects under Feasibility Studies  
 
(in million)  
Sector/ projects  Project details  Tendering 
authority  Investment capital 
(L.E)  
1. Phase 3 for 
the PPP new 
Schools Project  Construction of phase 3 of the 
planned total of 1000 schools 
after the signature of 2nd 
phase of the National Project 
for Building and Operation of 
Advanced PPP Language 
Schools.  
The project involve the Design, 
financing, construction, 
furnishing, mai ntenance and 
provision of Educational 
services and all the other non -
core services such as facility 
management and in support of 
the operation of the Schools  The Ministry 
of Education 
and 
Vocational 
Education  TBD 
 
21. De conformidad con la página 7, párrafo 3.15. - Objetivos nacionales de desarrollo y 
crecimiento económico. […] La nueva Ley garantiza el trato nacional recíproco, refunde varios 
elementos  del proceso de solicitud de diversas licencias, en particular mediante la utilización de 
sistemas electrónicos, confiere nuevas facultades a instituciones clave para que presten toda la 
gama de servicios necesarios en un solo lugar, con el apoyo de los Ce ntros de S ervicios para los 
Inversores  
 
¿Podría Egipto explicarnos cómo funciona este sistema electrónico? ¿Cómo esta Ley garantiza un 
trato nacional recíproco?  
 
Reply:  
 
An administrative unit named the ‘Investor Service Centre’ shall provide the company 
incorporation services and establishment of company branches, approval of the minutes of the 
Board of Directors and General Assemblies, increase of capital, change of activity, liquidation 
procedures, and other corporate -related matters.  
 
The Centre shall also receive the investors’ applications for approvals, permits, and allocation of 
real-estate properties, and license types required for the set up or management of the Investment 
Projects, and shall decide on such applications in accordance with the laws  and regulations within 
the date prescribed in this Law.  
 
The Centre shall convert its services to automated services gradually and as early as possible as 
determined by the Implementing Regulations through the electronic linkage networks and other 
technic al means needed.  
 
Regarding the guarantee of national treatment, the new investment law instructs in its 3rd article 
that “all the investments established within the Arab Republic of Egypt shall receive fair and just 
treatment”. Hence, the State shall ensure that the foreig n investor is granted the same treatment 
given to the national investor.  
 
Additionally, an exception can be made by granting the foreign investors a preferential treatment 
in application of the principle of reciprocity, as stipulated under a decree issued  by the Council of 
Ministers.  
 
22. De conformidad con la página 7, párrafo 3.17. La función principal de esta política es pues 
fomentar las operaciones comerciales de valor añadido en todas las escalas e impedir al mismo 
tiempo que los fallos del mercado e xcluyan las oportunidades de innovación, las oportunidades de 
creación de empleo, la formalización de las actividades económicas en micro escala o en pequeña 
escala nuevas o existentes, o la expansión y ampliación de las pequeñas y medianas empresas ya 
establecidas.  WT/TPR/M/367/Add.1  
 
- 150 - 
 
  ¿Podría Egipto informarnos a través de qué instrumentos la política nacional de fomento de la 
iniciativa empresarial promueve o fomenta la I+D+i?  
 
Reply:  
 
Micro, Small and Medium Enterprises a nd Entrepreneurship development  is the second  pillar in 
the “Industry and Trade Development 2016 -2020 Strategy” which comprises five main pillars.  
 
The Micro, Small and Medium Enterprises and Entrepreneurship Development pillar comprises six 
main projects:  
 
-The Legislative and Institutional Development Project;  
- The Electronic Interactive Platform for Service Provision and Decision -Making support project ; 
- Business Development Services Project ; 
- Encouraging Entrepreneurship Project;  
- Facilitating Access to Finance Project;  
- Governance and Performance monitoring and evaluation of the Sector’s Developmental Initiatives 
Project.  
 
In this context, the government of Egypt’s objective in laying down a national programme for the 
development of MSMEs, underpinned by a business -enabl ing environment, and focused on the 
promotion of entrepreneurship, research and innovation culminated in April 2017 in Prime Minister 
Decree on the establishment of the MSME Development Authority as the competent authority 
responsible for enterprise develo pment.  
 
MSMEDA mandate consists of: (i) formulating MSMEs development pol icies and strategic plans; 
(ii) stablishing appropriate coordination mechanisms among relevant a gencies and initiatives; 
(iii) devising necessary programmes to achieve the adva ncement of this sector such as human 
resources capacity and skills development programmes, programmes for linking and integrating 
enterprises to supply chains, and capacity building programmes for boosting marketing locally and 
internationally.  
 
MSMEDA is also entrusted with:  (i) designing incentives systems for MSMEs and self -employment 
promotion; (ii) facilitating collective negotiations for the procurement of raw material from reliable 
sources and at reasonable prices; (iii) assisting with the preparatio n of market and feasibility 
studies and availing them to enterprises; (iv) accessing enterprises to start -up capital and to 
additional loans; (v) facilitating and streamlining license -issuance procedures to start activity; and 
(vi) creating a database for MSMEs.  
 
Furthermore, the project on encouraging entrepreneurship involves inter-alia: 
 
- Accredited entrepreneurship curricula to be taught in regular, technical, professional 
schools and universities, as well as specialized programs for training and mentorship.  
- Promotional campaign to boost entrepreneurship culture and change the risk aversion 
behavior.  
- Business incubators and accelerators in targeted sectors; developing current incubators in 
accordance with the latest international systems. Graduates  will have the priority in taking 
appropriate places in industrial zones and clusters.  
- Comprehensive supportive packages for the Egyptian youth to start their own innovative 
projects that have potential for growth (e.g: training, Mentorship, guidance, micro -
financing, technical support, information, etc.).  
  WT/TPR/M/367/Add.1  
 
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  EGYPT'S FOLLOW UP AN SWERS TO QUESTIONS S UBMITTED  
BY THE REPUBLIC OF M OLDOVA  
 
Para 3.34. Between January 2013 and September 2017, 6,675 decisions of the ECA were 
appealed at both the primary and the higher arbitration levels, most of which concerned valuation 
(Table 3.3). About two thirds of the appeals were settled in primary arbitrati on. Most cases of 
arbitration dealt with imports of clothing and textiles, tyres, household articles and electric cables.  
 
Question 4 : Can Egypt clarify frequency of appeals concerned valuation, as well as its 
concentration on certain sectors?  
 
Reply:  
In 2017 the total number of import declarations was 547.000 declaration, compared to 711.000 in 
2016.  
 
The total of import declarations for the period 2013 - 2015 was 750000 declarations. Accordingly, 
the total number of declarations for the period (2013 -2017)  is 2.008000. So, declarations sent for 
arbitration, 6675, in comparison to the total number of declarations are relatively small 
(0.00000332 %). 
 
The data reveals that electrical devices, clothing, textiles and tires witness the most cases of 
arbitration.  
  WT/TPR/M/367/Add.1  
 
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  EGYPT'S FOLLOW UP AN SWERS TO QUESTIONS S UBMITTED  
BY NEW ZEALAND  
 
SECTION 4  TRADE POLICIES BY SECTOR  
(4.2.3) Electricity  
WT/TPR/S/367, Section 4.2.3, p.120, paras 4.68 -4.76 
 
Section 4.2.3 of the Secretariat's Report, page 120, para 4.72, notes that “Egypt continues to be 
committed to a gradual phase -out of all energy subsidies via annual price increments so as to 
adjust energy pri ces to cost recovery levels”. Summary of the Secretariat's Report, paras 3, 9, 27 
acknowledge the heavy toll energy subsid ies have had on Egypt’s public finances and the 2014 
reform programme aimed a t stimulating economic growth.  
 
Question:  
 
New Zealand welcomes Egypt’s actions over recent years to phase -out subsidies on fossil 
fuels.  Given the benefits of fossil fuel subsidy  reform to unlock investment opportunities as 
identified in Egypt’s report (WT/TPR/G/367), is Egypt considering further measures beyond 2022 
to ensure the enduring elimination of harmful fossil fuel subsidies?  
 
Reply:  
Egypt already removed part of energy subsidies over the past 2 years, and still plan to remove the 
rest gradually on all petroleum products. Such a sovereign decision can take time and it also takes 
into consideration many aspects such as social conditions.  
  WT/TPR/M/367/Add.1  
 
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  EGYPT'S REPLIES TO FOLLOW UP QUES TIONS  
FROM THE P.R. CHINA  
Part I. Questions based on Report by the Secretariat (WT/TPR/S/367)  
Summary, Para 30  
“Egypt has a liberal aviation policy with few restrictions. All domestic airlines are privately owned 
and foreign investment plays a large role in some of them. Except for two management contracts, 
airports remain publicly owned and managed and third -party handling is not allowed.”  
 
Question:  
3. Please introduce the administrative system of Egypt’s airports, including the approval system of 
airport construction and the operation and management mode, etc.  
 
Reply:  
Egypt airports that serve commercial flights are state owned; they are operated by na tional 
companies. Some airports are operated by other management system like (Build -operate -transfer 
BOT). According to the Egyptian regulation and ICAO requirement, all international airports shall 
be certified, and before commence any change in airport f acilities, airport operator is obligated to 
have CAA acceptance.  
 
4. Please give a brief introduction to the allowance, subsidies which the government provides to 
the airports, and the related tax and charge policies.  
 
Reply:  
The Egyptian Government does not provide any preferable allowance or subsidies to the airports 
related taxes and charges.  
 
II Other Questions:  
6. Are there access restrictions on foreign investment in civil aviation transport services, such as 
transport aviation, gene ral aviation, airport, air traffic control, aircraft maintenance, ground 
service, aviation fuel and computer reservation system? If there are, what are the measures? Is 
there any plan or timetable for further opening up?  
 
Reply:  
Any foreign investment is subject to the Egyptian investment law, all other information is provided 
in details within the report of the fourth trade policy review of Egypt.  
  WT/TPR/M/367/Add.1  
 
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  EGYPT'S REPLIES TO F OLLOW UP QUESTIONS  
FROM THE EUROPEAN UN ION, THE UNITED STAT ES AND INDONESIA  
 
First: Follow up Questions from the EU:  
3.1.1.1 Customs procedures  
Paragraphs 3.10 -3.13, page 41 (Law 7/2017 amending the Importers Register)  
 
EU question No 9:  Could Egypt explain why the minimum capital required to be registered as 
importer was significantly increased (LE 500,000 instead of LE 10,000 for natural persons and to 
LE 2 million instead of LE 15,000 for companies with limited liability), coupled with  the obligation 
to provide a cash guarantee of LE 50,000 for natural persons or  LE 200,000 for a legal person?  
 
Reply:  
The minimum capital requirements have been set at those limits to take into account the 
depreciation of the Egyptian pound and to ensure that the limits that were in Law 121/1982 are 
updated to maintain their main purpose that is to ensure the credibility of natural persons or 
companies involved in import activities.  
 
EU follow -up question to EU Q9:  
The EU considers that its original quest ion has not been replied. Therefore, as the minimum capital 
required of natural persons was increased by 4900% and for companies by 13233% and it cannot 
be justified by the devaluation, as it exceeds by far the effect of devaluation (around 
125%  depreciat ion), the EU would invite Egypt to submit a detailed answer to its initial question.  
 
Reply:  
In Egypt’s initial reply, the reference to depreciation was not confined to the recent floatation of 
the exchange rate. In fact, by depreciation of the Egyptian pound we refer to its depreciation over 
the period 1980 -2017. The value of the Egyptian pound has gone down by around 3900% against 
the US dollar in that period.  
 
Hence, the increase in the minimum capital requirement was to take into account the depreciat ion 
of the Egyptian pound together with the current conditions of the Egyptian market. Appropriate 
limits for companies with limited liability were necessary to restrain the formation of dummy 
companies that negatively affect the market and make traceabili ty of products more complicated.  
 
It is Egypt’s belief that in order for a business to participate in international trade it should possess 
the appropriate minimum capital to ensure its credibility and the traceability of imports, as 
necessary, in accordan ce with the requirements stipulated in Law 7/2017 amending the Importers 
Register.  
 
EU question No 10:  Could Egypt explain why it introduced a requirement to the effect that natural 
persons must have had a volume of business of at least LE 2 million and co mpanies at least LE 5 
million the previous year prior to registration ? How is it possible for new importers to fulfil this 
requirement?  
 
Reply:  
The purpose of this amendment like other amendments is to ensure the credibility of natural 
persons or companies  involved in import transactions. It also ensures that the natural persons and 
companies involved in import activities have a sound understanding of the mechanisms of the 
Egyptian market including its regulations and requirements and their rights and oblig ations.  
 
EU follow -up question to EU Q10:  
Could Egypt better explain the link between the volume of business requirements and the sound 
understanding of the mechanisms of the Egyptian market?  
 
Could Egypt please answer to its initial second question that i s: how it is possible for new 
importers to fulfil the requirements?  
 
Reply:  
The values stated for the volume of business requirements in the year prior to registration are 
considered appropriate values, given the market conditions, in order to ensure that the applicant is 
credible This requirement allows Egypt to prevent registration of false importers or importers that WT/TPR/M/367/Add.1  
 
- 155 - 
 
  intend to operate for a short per iod of time and then disappear.  In addition, this  requirement 
ensures that importers possess the appropriate expertise in business activities and understands 
the mech anisms of the Egyptian market.  
 
Furthermore, this is not the only requirement to ensure a sound understanding of the Egyptian 
market. Law 7/2017 amending the Importers Register included a  new requirement that the 
applicant should pass a training program on regulations and measures g overning the import 
activities.  
 
New importers are allowed into the market provided they have had a previous business record in 
the Egyptian market and satisfy the volume of business requirement. Thus, a new importer 
wishing to enter the importation activity should be first involved in th e trading business internally 
in the Egyptian market.  
 
Paragraph 3.18, page 42  
EU question No 12:  Could Egypt indicate in relative terms the difference of treatment for these 
operators in terms of rapidity of custom clearance and why after about 18 years o f implementation 
there are only 245 operators that were processed through the green channel and given that about 
97% of the shipments are put on the red channel?  
 
Reply:  
The Egyptian Customs Administration (ECA) agrees to the figures declared for the years  2014-
2016.  
 
In 2017, 36 % of imports were released through the green channel (visual verification for security 
purposes) for Alexandria, Dekhila, Port Said ports and Cairo airport (these ports represent 90 % of 
the Egyptian imports). In addition, 64 % of the imports were released through red channel for the 
purpose of withdrawing samples for control authoritie s and customs control purposes.  
 
Moreover, importers may prefer to process through the red channel as they are confident their 
imports will be declar ed, unlike if they went through green channel and some customs violations 
were found . 
 
EU follow -up question to EU12  
The EU considers that its initial question remained unanswered; therefore, the EU would ask Egypt 
to indicate the difference of treatment f or the operators in terms of rapidity of custom clearance.  
Reply:  
The following table shows the difference between those operators in terms of clearance release 
time. 
 
Import release time from the main ports for the year 2017  
Reference: ECA automated system, 2017 statistics  
Red channel 
procedures  Green 
channel 
procedures  Red 
channel  Green 
channel  Other During the 
third day  During the 
second day  During 
one day  During 
two 
hours  Port 
Customs 
inspection 
and drawing 
samples from 
GOIEC  Visible 
verification 
for the 
shipment 
and the 
documents  60.42  39.78  23.85  36.39  21.5 15.05  3.68 Alexandria  
  58.72  41.28  13.13  45.59  24.69  13.37  3.22 Dekhila  
  66.05  33.96  26.39  39.12  19.09  13.48  1.43 Port Said  
  67.48  32.28  25.31  42.17  12.14  14.40  5.74 Cairo 
  63.1675  36.825  22.305  40.8175  19.2325  14.075  3.5175  General 
Average  
 
Paragraph 3.30, page 45 - customs valuation  
EU question No 15:  Could Egypt explain why it does not follow the procedures of the Customs 
Valuation Agreement in case of imported cars and car parts?  WT/TPR/M/367/Add.1  
 
- 156 - 
 
  Reply:  
The customs accepted value for cars all over the world is the price declared from the factory of the 
manufacturing in the country of origin. These prices are announced on the first of October 
annually. The other costs are added to this price (transportation costs from the factory to the port, 
maritime fre ight, maritime insurance, etc.).  
 
Egypt does not use the retail p rice as a basis for calculations. The retail price is only used if the 
deductive or computed methods are applied as per the WTO Agreement if it is difficult to reach the 
announced prices for the cars from the manufacturing company. The retail price is comp ared in 
both the country of origin and the country of importation for the purpose of reachi ng fairness in 
the application.  
 
EU follow -up question to EU15  
Could Egypt clarify the difficulties encountered in using the pr ices set from the manufactures?  
 
Reply:  
Egypt’s initial answer shows clearly that it follows the customs Valuation Agreement and 
evaluation methods in their respective order.  
 
The exception shown in this answer is not an exception from following this agreement, but it 
rather shows when Eg yptian Customs resorts to alternative valuation method, always in order.  
 
As per our initial answer, the difficulty is not about using a price list set by a manufacturer; it is 
about reaching those lists. These prices reflect the prices "payable" for the g oods when sold for 
export to the country of importation. If these price lists are available, Egyptian Customs will use 
them. If they are not available, Egyptian Customs will resort to an adequate alternative valuation 
method as per the Customs Valuation Ag reement.  
 
3.3.3 Sanitary and Phytosanitary (SPS) Issues  
Paragraph 3.169, page 87 (and also G/367 – section 5.2  
Egypt's policy on ergot in imported wheat has varied from zero -tolerance to applying the CODEX 
maximum limits. The current rules, notified as G/S PS/N/EGY/83, foresee that shipments with a 
ergot content below CODEX limits are accepted but also that any detection below those limits 
entails a further treatment under government supervision.  
 
EU question No 33 : Does Egypt have any evidence that such low-levels of ergot represent a risk to 
human or plant health that would justify the additional costs?  
Reply:  
Wheat represents almost 10 percent of the total value of agricultural production and about 20 
percent of all agricultural imports. Egypt is also o ne of the world’s biggest wheat importer and the 
General Authority for Supply Commodities (GASC) of the Ministry of Supply and Internal Trade of 
Egypt (MoSIT) alone is the world’s biggest wheat purchaser. It is thus understandable that wheat 
is a product o f paramount importance to Egypt and wheat policy is a priority for the government. 
(Egypt Wheat sector review - FAO/EBRD cooperation)  
 
It is a well -known fact that the volume of trade is a predetermine factor when considering the risk 
of any pest of quaran tine concern.  
 
"Clavispes purpuria" is the causative agent which is spread in many neighbouring countries and 
the probabilities of introduction is high in consideration to the huge volume of imports. Also 
referring to the surveillance conducting on the grain crops in all over the country it is highlighted 
that the pest is not present in Egypt.  
 
It is highly important also to highlight the challenges that Egypt faces in logistical arrangements 
which imposes risk of i ntroduction and spread of pests.  
 
Also while considering the phytosanitary risk another important aspect that was considered jointly 
with the relevant authorities responsible for the imports of wheat is the health impact that is 
directly related to the rate of consumption in Egypt. For centurie s, wheat has been a central 
component of the typical diet of the country’s inhabitants. Per capita consumption of this cereal is WT/TPR/M/367/Add.1  
 
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  amongst the highest in the world. Many countries have  adopted lower tolerance levels than 
defined by the CODEX according t o their population consumption.  
 
Egypt imports approximately 12 million tons/year and produces 300 million bread/day. 80 % of 
the wheat is used in the production of baladi bread and 20% is considere d to be losses or animal 
feed. The higher consumption with whea t infected or contaminated with ergot poses a huge risk in 
human as well as animal health.  
 
EU follow -up question to EU33:  
Regarding the risk in human and animal health alluded to in Egypt's reply, has a risk analysis been 
performed, or can Egypt share any  scientific evidence or statistics supporting that position?  
 
Reply:  
Decree No.1761/ 2017 issued by the Minister of Agriculture and Land Reclamation reconfirms the 
limits set by Codex of 0.05%; tolerating the presence of the fungal disease ergot at the 0.0 5 
percent level or less in its imports of foreign wheat. This decree reconfirms Egyptian Standard No. 
1601-1/ 2010, which is in line with Codex and reflects the acceptance of the Egyptian Ministry of 
Health for such a tolerance level.  
 
Recognizing that Erg ot is considered as a quarantine pest which Egypt is free from according to the 
Egyptian plant quarantine, and that the per capita consumption of wheat in Egypt is amongst the 
highest in the world, (180 kg) per capita compared to developed countries (60 to  70 kg), in 
addition to the fact that Egypt is adopting policies of expanding the cultivated areas by the 
reclamation of new areas and cultivating some areas with host plant of the pathogen causing 
ergot, it was important to take measures to avoid the spre ad of this quarantine pest to the 
Egyptian territories. Such measures include the treatment of consignments in which the ergot is 
present within the accepted tolerance levels after they have been accepted and allowed to enter 
into the Egyptian territories.  Such measures are applied in a non -discriminatory and a non -
arbitrarily manner.  
 
As recognized in the introductory paragraph to EU question No. 33, Egypt applies the maximum 
levels of ergot in conformity with the CODEX standard. Pursuant to Article 3.2 of  the SPS 
Agreement, a measure that conforms to an international standard is presumed to be in accordance 
with the relevant obligations in that Agreement, including the obligation in Article 5.1 to conduct a 
risk assessment. In this respect, it bears recall ing that CODEX international standards are adopted 
pursua nt to a proper risk assessment.  
 
At the domestic level, studies are still under development to cope with the new policies and many 
data is available on the presence of the pest in neighbouring countr ies with similar weather 
especially in those lands under reclamation. Consequently, the potential of risk of entry and 
establishment is present and the National Plant Protection Organization of Egypt cannot discard 
the indicators of the risk especiall y with huge amounts of imports.  
 
Paragraph 3.179, page 89 - SPS measures/infant milk  
EU question No 37:  Could Egypt explain why it applies the list of 'reference countries' used for 
imports of pharmaceutical products to imports of infant milk formula which, according to Egyptian 
law, is not a pharmaceutical product?  
 
Reply:  
"National Nutrition Institute – Ministry of Heal th" has issued the Ministerial Decree No.  5/2017, this 
decree regulates the importation of medicines and pharmaceutical raw materials and 
biotechnology, children milk and medical supplies from the reference and non -reference countries.  
Importation of medicines and  raw materials is allowed from countries that  have supervisory 
authority and recognized by international bodies such as the World Health Organization – FDA- 
EMA- and apply control standards.  
 
Egypt may import from non-reference countries, provided that the producing factories follow 
standards of Good Manufacturing Practices.  
 
Egypt may import medication from other non -reference countries provided that this medication 
traded in one of the reference countries.  WT/TPR/M/367/Add.1  
 
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  Egypt may import infa nt milk from  the reference countries where international contro l rules are 
applied, as well as  from others non -reference countries provided that those infant milk  is traded 
within one of the reference countries.  
 
EU follow -up question to EU37:  
The EU would  invite Egypt to submit a detailed answer to its initial question. In particular, as no 
explanation is given, could Egypt please clarify why certain EU countries are not on a reference list 
considering that the standards for milk formula are the same acros s the EU Member States?  
 
Reply:  
At the outset, it is important to note that Ministerial Decrees no.5/2017 and 116/2017 issued by 
the Minister of Health and Population stipulate the regulations governing the imports of 
pharmaceutical products, raw materials , biological products, infant milk formula and medical 
devices.  
The mentioned decrees state that infant milk formula imports are allowed from reference countries 
applying international control measures. Imports from non - reference countries are allowed 
provided the infant milk formula produced in those non -reference countries is traded and available 
within any one of the reference countries. Hence, it is allowed to import infant milk formula from 
non-reference EU countries if it is available in an y of the r eference countries.  
 
Egypt maintains the list of reference countries to ensure the safety of the imported products and 
to ensure that it is sourced from countries where international standards and control measures are 
applied. The Applications for the regi stration of infant milk formula are submitted to The National 
Nutrition Institute – Ministry of Health and population.  
 
FOLLOW UP QUESTIONS FROM THE UNITED STAT ES 
 
3.3.2.5 Labelling Requirements  
• In addition, could Egypt provide the reference regulation for the textile and apparel labeling 
requirements?  
 
Reply:  
The reference regulation for the textile and apparel labeling requirements is 'The Federal Trade 
Commission act protecting American consumers.  
 
Follow -up Question  
The United States notes that Egypt’s response cites a U.S. measure, not an Egyptian measure , as 
the reference regulation. Could Egypt please provide the reference for Egypt’s textile and apparel 
labeling regulations?  
 
Reply:  
Labelling requirements of textiles and apparel are present in the various parts of 
Egyptian standard ES 7266.  
 
3.3.5 State Trading, State -Owned Enterprises, and Privatization  
 
Page 93, Paragraph 3.203: The Secretariat notes that SOEs in Egypt are active in a number of 
sectors, including petroleum, transportation,  and industrial activities.  
• Does Egypt maintain a central listing of SOEs, including the se ctors in which they are active?  
• If so, Could Egypt please provide information on  how that list may be accessed?  
 
Reply:  
- Indeed Egypt maintains a central listin g of SOEs under Law 203/1991, including the sectors, 
 the financials and other areas are included in the database.  
- Access to this information is to be made through the Ministry of Public Business Sector.  
 
Follow -up Question  
 Does the Ministry of Public Bu siness Sector maintain a website or official list that is publicly 
available that contains the central list ing of SOEs under Law 203/1991?  Could Egypt please 
provide that information?  WT/TPR/M/367/Add.1  
 
- 159 - 
 
  Reply:  
The official website address is http://www.bsic.gov.eg/bs.asp , where all information on SOEs 
under Law 203/1991 is available.  
 
3.2.6 Export finance, insurance, and guarantees  
It appears that questions under  heading 3.2.6 were overlooked.  Can Egypt please provide a 
response to the following questions:  
 
3.2.6 Export finance, insurance, and guarantees  
Pages 74 -75, paragraphs 3.113: The Secretariat states that the Export Development Bank of 
Egypt (EBE) provides its own export financing throug h four programs, one of which is the 
Agricul ture Development Program (ADP).  The Secretariat also states that the ADP provides export 
loans to agricultural companies.  
 In light of Egypt’s responses to the Questionnaire, does Egypt consider the Export 
Develo pment Bank’s export financing support activities, such as the Agriculture 
Development Program, to be covered by the Nairobi D ecision on Export Competition?  
 If not, please explain why the programs are not covered by the Decision.  
Reply:  
The export financing  activities of the Export development bank are not covered by Article 1(e) of 
the Agreement on Agriculture (definition of "export subsidy) and are therefore excluded from the 
disciplines in the Nairobi Decision on Export Competition. Specifically, the expo rt financing 
activities are provided on commercial terms and market interest rates and the repayment terms do 
not exceed those stated in the Nairobi Decision on Export Competition.  
 
Pages 74 -75, paragraphs 3.114: The Secretariat states that the (EBE) provi des export financing 
through a subsidiary, namely, the Export Credit Guara ntee Company of Egypt (ECGE). The export 
financing programs mentioned include: export credit guarantees, letter s of credit, export factoring. 
Do any of these programs include coverag e of exports of agricultural products?  
Reply:  
The ECGE provides Export Credit Insurance, Export Factoring, and Debt Recovery, Buyer’s Credit 
reports to export industries and services on commercial terms without any supporting policies 
concerning pricing or  coverage. ECGE covers all non -oil Egyptian exports short term.  
 
3.3.7 Intellectual property rights (IPRs)  
3.3.7.1 Legal and institutional framework  
Pg. 99, table 3.24, Copyright and Related Rights, Selec ted Exclusions and Limitations:  The text 
states: “Any work not translated into Arabic within three years of its publication is public domain.” 
Please provide additional information about this requirement.  
 
Reply:  
Article 8 of Berne Convention indicates that the right of translation shou ld last to the full 
period of 50 years of the copyright protection. The TRIPS Agreement incorporates 
Articles from 1 – 21 of Berne and the Appendix thereof. Nevertheless, the Appendix to 
Berne Convention “Special Provisions Regarding Developing countries” provides for an 
exception to the exclusive right of translation to the favor of developing countries 
allowing them to limit the right of translation to three years. However, following the 
expiry of the three years period the original work does not fall in the public domain, 
hence, the competent authority is to be entitled to issue a license for translation to any 
third party interested in translating the work in question. The original work remains 
accorded full protection for the full 50 years.  
 
Follow -Up Q uestions  
 
The United States notes Egypt’s reference to the Berne Convention, including the Appendix on 
special provisions r egarding developing countries. The United States further notes Egypt’s 
reference to a competent authority’s entitlement to issue a license for translation.  
 
• What is the “competent authority” in Egypt that is entitled to issue licenses for translation?  
• What Egyptian legal provisions or other documents set out the procedures for the issuance 
 of such a license?  WT/TPR/M/367/Add.1  
 
- 160 - 
 
  • Does Egypt made due  provision at the national level to ensure just compensation?  If so, is 
 this contained in any Egyptian law or other instrument?  
• How does Egypt ensure a correct translation of the work?  
• Has the relevant competent authority in Egypt received any reques ts for a license?  
• Has the relevant competent authority in Egypt issued any licenses to third parties?  
Reply:  
The competent authority that is entitled to issue licenses for translation is the Ministry of Culture. 
The Egyptian IPR Law (Article 170) and the  Executive Regulation of Book Three (Copyright and 
Related Rights) of the Egyptian IPR Law (Articles 4 – 8) regulates the issue of translation and sets 
out the procedures and conditions for the issuance of the translation license for educational 
purposes, and provides for an adequate compensation to the author in cases of translation without 
obtaining authorization from the author.  
 
FOLLOW UP QUESTIONS FROM INDONESIA  
 
2 Trade and Investment Regimes  
2.2 Trade Policy Formulation and Objectives  
 
Page 28 Para. 2.18 
According to the authorities, Egypt is seeking to liberalize its trade regime on an MFN basis 
through WTO negotiations and unilateral tariff reductions, and on a preferential basis through 
reciprocal agreements with selected trading partners. In agric ulture, Egypt seeks meaningful 
multilateral liberalization. In the services sector, Egypt supports greater multilateral trade 
liberalization, most notably in mode 4, and increased participation of developing 
countries in the multilateral trading system.  
 
Question:  
1. Please elaborate the kind of support that Egypt can offer in services modes of delivery 
(especially mode 4) related to multilateral trade liberalization.  
Reply:  
Egypt is an active participant in multilateral negotiations; it has submitted its schedule of 
specific commitments and unilaterally liberalized telecommunication services in 2002. It 
further improved its specific commitments in its revised (conditional) offer that included new 
committed sectors as well as improvements in already committ ed sectors.  
 
Additionally, Egypt always seek better market access conditions from members regarding all 
modes of supply of export interest to developing countries, specifically Mode 4, as Egypt joined 
the plurilateral request on Mode 4.  
 
2 Trade and Investment Regimes  
2.3 Trade Agreements and Arrangements  
2.3.2.1  European Union  
 
Page 30 Para. 2.28  
 
The agreement between Egypt and the European Union entered into force on 1 June 2004, 
replacing the 1977 Cooperation Agreement. It was notified to the WTO in September 2004. This 
agreement is of particular importance for Egypt, as the European Union is its main trading partner 
and its principal bilateral donor. In recent years, roughly three quarters of FDI inflows to Egypt 
originated in the Europ ean Union. In addition, in accordance with information provided by the 
Egyptian authorities, the total amount of ongoing EU assistance to Egypt amounts to nearly 
€1.1 billion, provided in the form of grants. The agreement also includes provisions on political, 
scientific, technological, and cultural cooperation. It establishes an Association Council, which 
meets at ministerial level once a year, and an Association Commi ttee, which is responsible for the 
implementation of the agreement.  
 
 WT/TPR/M/367/Add.1  
 
- 161 - 
 
  Questions:  
 
2. Could Egypt please explain more detail regarding the agreement between Egypt and the 
European Union especially for scientific and technological provision?  
Reply:  
I. Association  Agreement between Egypt and the EU  was signed in 2001 and entered 
into force in 2004. It lays a foundation for cooperation between Egypt and the EU in the 
area of Scientific and Technological Cooperation. The agreement stipulates in Article (43) 
that the objectives of the cooperation in that area are:  
a) Encouraging the establishment of durable links between the scientific communities of 
the Parties, notably through:  
 The access of Egypt to Community R&D programs, in conformity with existing 
provisions concern ing the participation of third countries;  
 The participation of Egypt in networks of decentralized cooperation;  
 The promotion of synergy between training and research.  
b) Strengthening research capacity in Egypt.  
c) Stimulating technological innovation, transfer of new technologies, and dissemination 
of know -how. 
II. EU-Egypt Science and Technology Cooperation was signed in 2005, which sets the 
terms and conditions of establishing cooperation programs and projects as well as the 
participation of Egypt in different EU -funded Research programs, which contributed to 
enhancing transfer of technology and know -how between both sides especially in fields of 
common interest.  
III. Agreement for scientific and technological cooperation  was signed in 27 October 
2017. The Agreement de fines the terms for Egypt's participation in the Partnership for 
Research and Innovation in the Mediterranean Area (PRIMA) , which aims at 
developing innovative solutions in two fields of strategic importance in the Mediterranean 
area, namely water manageme nt and food security, through joint research and innovation 
projects for the next ten years. The total funding of PRIMA is 400 million Euros (200 
million from the EU and 200 million from Partner Countries).  
 
3. What did Egypt obtain from the scientific and te chnological provision from European 
Union? Are there any transfer technology?  
Reply:  
− Financing two subsequent phases of a bi -lateral Research, Development and 
Innovation Programme (RDI)  with a total EU Com mitment of €31 Million on 2 phases 
(2007 -2011 and 2011 -2019), with a view to enabling the European and Egyptian scientists 
to work together in the context of bilateral projects or multilateral research programmes.  
− EU's Framework Programme 7 for Research an d Innovation (R&I) (2007 -2013). Egypt has 
been one of the most active Southern Mediterranean participants in the program, as 129 
participants from Egypt took part in 101 projects. The EC contribution to the overall 
budget of these projects reached around €  266 Million, whereas the contribution to the 
Egyptian participants was around € 15 Million.  
− Horizon2020: It is the largest S&R pool in the world. Egypt remains one of the most active 
Southern Mediterranean participants in Horizon 2020 (the EU's Framework programme for 
R&I, running from 2014 -2020). Egyptian entities have submitted, up to October 2017, 244 
proposals and 33 contracts are signed or under preparation. The Egyptian participants 
have been most active in the "societal challenges pillar" as well as  he “Excellent Science” 
pillar, mainly in Marie SklodowskaCurie Actions and international cooperation actions under 
H2020.  
− Egypt is attaching special importance to the cooperation with the EU in the areas of R&D 
and R&I, due to the priority the Egyptian Co nstitution has assigned to the scientific 
research in the economic and social development process in compliance with the 
"Sustainable Development Strategy: Egypt Vision 2030."  
 
 
 
 WT/TPR/M/367/Add.1  
 
- 162 - 
 
  2   Trade and Investment Regimes  
2.4   Investment Regime  
Page 34 Para. 2.52  
The new Investment Law and its regulations allow investments to be registered under the Law as 
enterprises (one person) or as companies (more than one person) through modalities such as 
shareholder companies, joint -stock companies, limited liability compa nies, and partnerships. The 
Law governs "inland investments", essentially domestic investment projects, and investment in 
free zones, which are treated as being outside the domestic economy for taxation, customs, and 
trade purposes. Like the Companies Law,  the Investment Law applies to all private investment, 
(domestic or foreign); however, the latter applies only to certain specified activities or sectors, 
subject to further amendments by the Minister in charge of the activity, in coordination with other 
relevant ministries, and in accordance with the National Economic Plan (Table 2.4).  
 
Question:  
4. Could Egypt explain why the tobacco industry w as not eligible to get incentives as 
mentioned in table 2.4? What is the consideration?  
Reply:  
According to Article (9) of the Investment law, “All the Investment Projects subject to the 
provisions of this Law shall enjoy the general incentives provided for in this chapter, except for 
the projects established under the Free Zone Regime.”  
Note: It i s allowed to issue licenses for tobacco industry projects under the Free Zone Regime.  
 
3   Trade Policies and Practices by Measure  
3.1   Measures Directly Affecting Imports  
3.1.1   Custom Procedures, Valuation, and Requirements  
3.1.1.1   Customs Procedures  
 
Page 42 Para. 3.16  
Imported goods may be subject to quality control inspection by the GOEIC within one week of the 
date of importation. The GOEIC is entitled to examine a random sample of 1% of the total number 
of packages in each consignment and up to 2% of the contents of the chosen packages. The 
procedures for sampling are laid down in Ministerial Decree No. 1186/2003; as a main principle, 
customs officials must ensure that the samples examined are representative of the consignment. If 
the chosen samples are not in conform ity with regulations, the GOEIC may search up to 2% of the 
remaining number of packages in the sample before rejecting a consignment. Rejected goods must 
be re -exported or destroyed. In the case of food, all imports are inspected without exception. 
Additio nally, under Ministerial Decree No. 991/2015, a certificate of examination by an authority 
accredited by ILAC is requested for a list of industrial items prior to importation. This does not 
preclude the GOEIC from engaging in random checks of imports of th ese products. The authorities 
have indicated that the percentage of rejected consignments for food imports was of about 2.1% 
during the period between 1 January 2016 and end -September 2017. The percentage of rejected 
industrial products during the period r unning from 1 January 2017 to end -August 2017 was 1.2%.  
 
Questions:  
5. How is the mechanism for random sampling examination? Should it take per shipping or 
per batch of production or just simply check the certificate of conformity?  
Reply:  
Visual inspection and sampling are carried out according to appendices 6&7 of Annex 2 of Prime 
Minister decree no. 1186/2003.  Samples are taken per batch of production.  
 
For imported goods accompanied by a pre -shipment inspection certificate indicating the conformity 
of the  imported goods with the  mandatory specifications and standards issued or approved by the 
Egyptian Organization for Standardization and Quality, visual inspection and random sampling are 
done per batch of production with a maximum limit of 3 batches of ea ch kind of product.  
 
6. Do Egypt imposes the same regulation for domestic products?  
 WT/TPR/M/367/Add.1  
 
- 163 - 
 
  Reply:  
Egyptian products and production are subject to quality control measures similar to those applied 
to imports, yet through other governmental agencies.  
 
3   Trade Polic ies and Practices by Measure  
3.1   Measures Directly Affecting Imports  
3.1.3   Tariffs  
3.1.3.1   Overview  
 
Page 48 Para. 3.42  
“Presidential Decree No. 184/2013, published in the Official Gazette  in March 2013, announced 
changes in customs duties, which consisted mainly of higher rates on a wide range of products. 
This Decree was followed by three additional amendments, namely Presidential Decree No. 
69/2015, Presidential Decree No. 25/2016, and P residential Decree 538/2016 . Presidential Decree 
No. 25/2016, issued in January 2016, raised import tariffs on a wide range of products (11.4% of 
the tariff lines of the 2016 schedule). Presidential Decree No. 538/2016, issued in December 2016, 
further inc reased tariffs to up to 60% on certain items, some of which were already covered in the 
earlier decree. These decrees in general increased import tariffs on a substantial number of goods 
mainly for non -agricultural products (WTO definition),  and reduced ra tes on a small number of 
items (Table 3.5).”  
 
Questions:  
7. Could Egypt give more information regarding the impact of tariff increase to the national 
industry growth and to trade balance with the partner countries?  
Reply:  
It is worth noting that the determination of the level of tariffs comes within the broader 
context of economic policy including the fiscal policy. The increase in tariffs is not the only 
determinant influencing the national industry growth and trade balance with partner 
countries. Th ere are a number of other factors that have affected the Egyptian economy 
including, inter alia:  
− The floatation of the Egyptian Pound;  
− The legislative reforms in the area of industry such as the industrial licensing Law  
and the amendments made to the indu strial land allocation Law ;  
− The strong commitment to trade facilitation including the reduction in number of 
documents required to implement import transactions.  
8. Please provide us with information on the latest (most recent to date) MFN tariff and 
Bound tariff?  
Reply:  
For MFN tariffs:  
− The Egyptian tariff for 2017 t is based on HS2012 version of the Harmonized Commodity 
Description and Coding System. 9 9.7% of the tariff lines carry ad valorem duties. There are 
21 tariff lines (tobacco products) equivale nt to 0.3% of all tariff lines. No tariff quota access is 
provided on an MFN basis, but there are preferential tariff quotas.  
− The 2017 simple average applied MFN tariff rate was 19.1%. However, if alcoholic beverages 
(subject to customs duties of between  600% and 3,000%) are excluded from the calculation, 
the 2017 simple average applied MFN ta riff rate comes down to 12.3%.  
− Worth mentioning is that Egypt is currently transposing  its applied ta riffs according HS2017 
version of the Harmonized Commodity Description and Coding System, the new applied tariffs 
will be duly issued and published.  In this context Egypt will take into consideration the 
continued efforts of simplifying its tariff structure.  
 
For Bound tariffs:  
- Egypt has bound 99.3% of its tariff lines, consisting mostly of ad valorem rates ranging from 
0% to 3,000% and some non -ad valorem tariffs (for tobacco products). The general simple 
average bound tariff is 37.2%. The simple average bound rate on agricultural products (WTO WT/TPR/M/367/Add.1  
 
- 164 - 
 
  definition) is 96.4 % (including alcoholic beverages and tobacco), whereas the rate for non -
agricultural products is 28.7%.  
3   Trade Policies and Practices by Measure  
3.1   Measures Directly Affecting Imports  
3.1.3   Tariffs  
3.1.3.4 Tariff Exemptions and Reductions  
 
Page 54  Para. 3.56  
 
Besides temporary tariff exemptions, Presidential Decree No. 184/2013 (Article 6) allows for the 
reduction of customs duties on intermediate goods if the final product has a certain percentage of 
local inputs. Under this concession, the custom s duty rate assessed based on the final product may 
be reduced by rates ranging from 10% if the local content of the final product is less than 30%, up 
to a maximum of 90% if the local content exceeds 60%. The exemptions granted to the assembly 
industries under this Decree during 2013 -2014 reached approximately LE 202.9 million, while 
during 2014 -15 they totalled LE 112.1 million.  
 
Questions:  
9. How is the mechanism to calculate the local content values for the final product? Are there 
any technical regulatio n that can be informed to us?  
Reply:  
The method of calculating the local content values for the final products is based on the originating 
direct and indirect production costs as a percentage of the ex -factory price of the final product. 
The required docum ents are submitted by the l ocal manufacturer  and studied by a special 
technical committee in order to decide upon the relevant reduction rate of customs duties on 
intermediate goods.  
 
10. How did Egypt convince that the local content policy does not violate the TRIMs -WTO 
provisions?  
Reply:  
Since 2004 when the government of Egypt adopted the bold tariff reforms including tariff 
simplification and reduction, the impact of customs tariff reductions in proportion to the 
percentage of use of local content in assem bly industries has been de facto nullified exc ept for 
some minor industries. Further tariff reforms in this respect are planned.  
3   Trade Policies and Practices by Measure  
3.1   Measures Directly Affecting Imports  
3.1.3   Tariffs  
3.1.3.6   Other Charges Affecting Imports  
 
Page 58 Para. 3.65  
 
A Value -Added Tax (VAT) was introduced by Law No. 67/2016 to replace the General Sales Tax 
(GST) governed by Law No. 11/1991. The general VAT rate was set at 13% for the fiscal year 
ending on 30 June 2017 and it was i ncreased to 14% on 1 July 2017. Machinery and equipment 
used in producing taxable or non -taxable goods or services are subject to a 5% VAT 
rate; exported goods are exempted, while services are generally zero -rated. Essential 
commodities, such as basic food s, are exempted from the tax, as are newsprint, papers 
and magazines, and some services.  The VAT applies equally to imported and domestic goods 
and VAT registration is obligatory for all persons or legal entities selling goods or services with 
gross sales equal or higher than LE 500,000 in the 12 months preceding th e date of enactment of 
the law.  
 
Question:  
 
11. Please elaborate the cause of a 5% VAT rate applied to machinery and equipment used in 
producing taxable or non -taxable goods or services. In what perc entage VAT applied to 
services modes that imported to produce non -exported goods?  WT/TPR/M/367/Add.1  
 
- 165 - 
 
  Reply:  
The value -added tax is a consumption tax  that is placed on a product whenever value is added at a 
stage of production and at the point of  retail sale . The amount of VAT that the user pays is on the 
cost of the product, minus any of the costs of materials used in the product that  have already been 
taxed. By design, the VAT system promotes production and manufacturing as it decreases the tax 
burden on manufactures, by offering input tax deduction and redemption on materials and 
machinery used to add value to the product in its prod uction chain.  
In addition, to even lower the tax burden on producers and manufactures, machinery and 
equipment used in producing taxable or non -taxable goods or services are subject to a lower tax 
rate of 5%, giving more incentive to companies and factori es to purchase machinery, used to the 
potential production of goods, whereas increasing the level o f productivity in the economy.  
The new VAT law applies a unified tax rate of 14% on all goods and services with an exception to 
certain schedule 1 goods. Exc ise taxes apply equally to domestic and imported products.  
 Both domestic and imported products are treated equally under the new VAT Law whereas,  
o The value to be used as a basis for determining the tax on the sales of goods and 
services provided in Schedu le 1 is as follows:  
 Sales of local goods and services: The value actually paid or payable in any 
form of payment plus the schedule 1 excise tax.  
 Sales of Imported goods: the value taken as a basis for determining the 
customs tax plus customs taxes, other taxes, fees, and schedule 1 excise 
tax. 
3   Trade Policies and Practices by Measure  
3.1   Measures Directly Affecting Imports  
3.1.4 Import prohibitions, restrictions, and licensing  
 
Page 64 Para. 3.77  
In accordance with Ministerial Decree No. 43/2016, imports for commercial purposes of a number 
of products will be allowed into Egypt only if they are produced by manufacturing plants or 
imported from the companies owning the trademarks or their distributi on centers 
registered in the relevant established Register in the GOEIC. Registration in, or striking 
off from this Register is decreed by the Minister of Foreign Trade who also has the 
authority to allow for an exemption from some or all the requirements for registration.  
To register in the relevant registry in the GOEIC, manufacturing plants must produce evidence of 
the trademarks and the trademarked products produced under licence from the trademark owners. 
They must also certify that the producer mainta ins a quality control system. The certificate must 
be issued by entities accredited by ILAC or the International Accreditation Forum (IAF) or an 
Egyptian or foreign governmental entity approved by the Minister of Foreign Trade. In the case of 
companies own ing trademarks, registration requires a certificate stating the registration of the 
trademark and the trademarked goods produced, as well as a certificate from the trademark 
owning company containing the distribution centers that are entitled to supply the  products 
bearing the trademark. Likewise, a certificate that the trademark owning company maintains a 
quality control system issued by entities accredited by ILAC or IAF or an Egyptian or foreign 
governmental entity approved by the Minister of Foreign Tra de must be produced.  
 
Question:  
12. To follow up (on Egypt’s response to Indonesia’s advanced written question) on the fact 
that there is no registration fees, and that the amount of 300 L.E. is the cost of services 
rendered (that is, to cover the cost of veri fication and processing of documents), Indonesia 
would like to verify on the presence of additional services cost – i.e. the amount of 1,000 
US$/1,000 EUR/10,000 L.E. – on top of the above -mentioned 300 L.E. when this 
registration has been delegated to an authorized third party?  
Reply:  
As previously indicated the only charges collected are the 300 L.E. that are approximate to the 
services rendered including the verification and processing of documents. It might be the case that 
the authorized person (privat e normal person of no relation to GOEIC) is the one receiving the 
additional cost referred to in the question.  WT/TPR/M/367/Add.1  
 
- 166 - 
 
  3   Trade Policies and Practices by Measure  
3.2   Measures Directly Affecting Exports  
3.2.5   Free Zones and Special Economic Zones  
 
Page 74 Para . 3.110  
There are some restrictions on investment activities in free zones in the case of heavy or explosive 
industries. In 2015, further limitations were introduced for energy -related free zone investments, 
and licenses are no longer granted in free zones  for projects in the following sectors: fertilizers; oil 
and steel; petroleum; natural gas production, liquefaction n and transport; or other energy -
intensive industries.  
 
Question:  
13. Why Egypt applied some restrictions on investment activities in free zones  that categorized 
as an energy -intensive industries sector? What is the consideration?  
Reply : 
“There are some restrictions on investment activities in free zones, further licenses are no 
longer granted in free zones for projects in the following sectors: oil processing, fertilizer 
industries, iron and steel, natural gas processing, liquidation, and  transport, and the energy 
heavy industries which are defined by a decision issued by the Supreme Council of Energy, the 
spirits and alcoholic beverage industries, guns, ammunitions, and explosives industries, and 
other industries associated with the natio nal security.”  
An energy -intensive industries sector has restrictions according to article no. (34) “Without 
prejudice to the provisions of Law No. 133 of 2010 On the Licensing of the Oil Refining Projects 
to operate under the Free Zones’ Regime, and taki ng into consideration the legal status of the 
companies licensed to conduct projects under the Free Zone Regime on the date this Law 
enters into force, licenses may not be issued to conduct projects under the Free Zones’ Regime 
in the areas of oil processi ng, fertilizer industries, iron and steel, natural gas processing, 
liquidation, and transport, and the energy heavy industries which are defined by a decision 
issued by the Supreme Council of Energy, the spirits and alcoholic beverage industries, guns, 
ammunitions, and explosives industries, and other industries associated with the national 
security.”  
 
3   Trade Policies and Practices by Measure  
3.3   Measures Affecting Production and Trade  
3.3.2   Standards and Other Technical Requirements  
3.3.2.3   Other Quality Control Measures  
 
Page 83 Para. 3.150  
 
Egypt has mandatory quality control requirements for a number of imports listed in Annex 8 of the 
Executive Regulations (Ministerial Decree No. 770/2005) of the Import and Export Law No. 
118/75. These products , which must be inspected by the GOEIC, include foodstuffs, handbags, 
furniture, electronic products, spare parts, consumer products, live animals, iron tubes and pipes, 
ceramic sanitary ware, stoves and heaters, steam boilers, washing machines, electrical  equipment, 
motor vehicle parts, pencils, and textiles (Table A3.3). An inspection fee is charged in all cases. 
The authorities indicated that similar measures are applied to equivalent domestic products.  
 
Question:  
14. Could Egypt give some explanations, why  Egypt requires inspection of the goods which 
contained in Annex 8 although the goods already obtain certificate of conformity to the 
mandatory standards set by Egypt?  
Reply:  
It is worth noting that in such cases where the goods according to the Egyptian regulations are 
required to be accompanied by an accredited certificate of conformity to the mandatory Egyptian 
standards, the goods are subject to random inspection.  
 
 
 WT/TPR/M/367/Add.1  
 
- 167 - 
 
  Page 83 Para. 3.151  
 
If relevant mandatory standards have been issued by the Egyptian authorities, the GOEIC must 
conduct the inspection in accordance with those standards. However, the GOEIC's inspection can 
be based on standards from other countries if there is no relevant Egyptian mandatory standard. 
When products are imported into Egypt , they are required to undergo verification of conformity. 
Products are held either at customs compounds or sealed on the premises of the importer, until 
testing is completed.  
 
Questions:  
15. Could Egypt please explain more the list of mandatory standards that Egypt adopt from 
other countries ? 
Reply:  
The List of Egyptian mandatory standards are published on the EOS website: 
(http://www.eos.org.eg  ) for each  sector separately.  
Egyptian standards are based on International standards or other countries standards.  Mandatory 
standards are applied in a non -discriminatory manner to both domestic and imported goods. The 
General Organization for Export and Import C ontrol(GOEIC) conducts inspection in accordance to 
those mandatory standards.  
In case of absence of the mandatory standard GOEIC use other references which included in the 
Ministerial decrees No. 180/1996, No. 291/2003, which stipulate that in the case of  absence of 
Egyptian standards, the producers and importers can use:  
- International standards (ISO / IEC)  
- European standards(EN) in case of their absence resort to BS -DIN-NF; American 
Standards (ANSI) and American Society for Testing and Materials (ASTM) st andards  
- Japanese standards (JIS) and JASO specification  . 
- The International Code of Food Code (CODEX).   
- The standards of the American Automobile Engineers Association (SAE).  
- Standards of the American Petroleum Institute (API).  
 
16. Is there any time limit set when goods are inspected in customs until the testing is 
completed?  
Reply:  
 
− Article 85 of Decree no.770/2005 issuing the executive regulation to implement import and 
export law no. 118/1975 as well as inspection and control procedures of imported and 
expor ted goods,  stipulates that the final inspection results  shall be issued no later than 7 
days from the date that the last sample was taken except for canned food and bottled water 
as well as goods subject to dioxin testing  for which the final results sha ll be released no later 
than 15 days after the first sample was taken . As for literary and artistic works imported for 
the first time , the final results of inspection shall be declared in one month as of the date of 
sample taking .  
− Furthermore, the time  limits for the final results inspection and testing processes are subject 
to the time periods set for the tests as specified according to the standards or the relevant 
regulations including Prime Minister Decree no. 1186/2003   .   
 
17. What are the impacts if the inspection test time exceeds the time limit specified?  
Reply:  
As explained the time limits for test results is dependent on the relevant standards and 
regulations. In practice, the time limits are not exceeded. However, it should be noted that 
the consignments could be conditionally released and transported outside the customs area to 
the storage under custody and conditional to the supervision of the competent authorities.  
 
 
 
 WT/TPR/M/367/Add.1  
 
- 168 - 
 
  4   Trade Policies by Sector  
4.4   Services  
4.4.4   Transport Services  
4.4.4.1   Air Transport Services  
 
Page 136 Para. 4.158  
 
Egypt's regime regarding auxiliary services (aircraft repair and maintenance, computer reservation 
services (CRS) and selling and marketing) is in practice quite liberal, although Egypt has not 
undertaken any GATS commitments in this area. In the case of m aintenance and repair, national 
planes may be maintained and repaired in both domestic and foreign maintenance outlets, 
provided these facilities are approved by the ECA (rules ECA 43 and 145). The establishment in 
Egypt of foreign maintenance, repair and overhaul providers is permitted only for line 
maintenance and defect rectification and on the basis of reciprocity  
 
Question:  
18. Please elaborate the cause of Egypt's regime regarding auxiliary services that has not 
undertaken any GATS commitments. Is there a ny international standard which must be 
obeyed by foreign providers to perform auxiliary services in Egypt?  
Reply:  
Egypt has extended conditional commitments in its revised offer to include auxiliary services. 
International standards that are followed in this regard are ECAR 145 and ECAR 43, which is 
based on ICAO Annexes.  
GOVERNMENT REPORT  
 
4   Trade Policy Framework  
4.1   Trade Policy Objectives  
 
Page 9 Para. 4.1  
 
Egypt’s overall long -term trade policy is to further integrate deeply into the multilateral  trade 
system as an indispensible hub for the innovation, manufacture and export of high -technology 
value -added goods, as well as a regional leader for the development, provision and distribution of 
highly -skill-based services across all four modes of deli very. 
 
Question:  
19. Please elaborate the policy about the distribution of highly -skill-based services that 
correlated with any GATS commitments.  
Reply:  
Until now no correlated GATS commitments exist, while studies and assessments are being 
undertaken on the national level.  
 
5   Trade Policy Developments Since 2005  
5.8   Developments in Services Sectors  
 
Page 14 Para. 5.27  
 
Transport:  Since 2005, there has been extensive investment in and development of the  
road transport infrastructure, increasing the national network of paved roads by thousands of 
kilometers. This has paved the way for increasing trade, both with neighboring countries as well as 
internally, to ports and airports, therefore strengthening the export model. A new regulatory 
framework gove rning road transport was promulgated in 2012.  
 
Question:  
 
20. Please elaborate the new regulatory framework governing road transport related to the 
distribution of all four modes of services delivery.  
 WT/TPR/M/367/Add.1  
 
- 169 - 
 
  Reply:  
Article 4 from the law  Establishing the Organization of Land Transport Services for Passengers 
and Goods on Public Roads between Governorates and International Transport Services states 
that : - 
 
To achieve its goals, the Organization shall take all the necessary actions and perform required 
works; including the following in particular:  
- Developing policies and a comprehensive plan for improving the land transport of 
passengers and goods on public roads between the governorates and international 
transport, studying the land transport needs and requ irements regionally and 
internationally and investigating plans of meeting transport demands pursuant to the rules 
established by Ministry Of Transport to ensure target revenues and service improvement.)  
 
__________