WORLD TRADE  
ORGANIZATION  TN/TF/W/75 
15 November 2005 
 (05-5332) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM EGYPT 
  
 The following communication, dated 11 November 2005, is being circulated at the request of 
the Delegation of Egypt. 
 
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EGYPT'S NATIONAL EXPERIENCE CONCERNING  
MEASURES RELATED TO ARTICLES V, VIII AND X OF GATT 1994:   
FUTURE NEEDS AND PRIORITIES 
  
I. ARTICLE V:  FREEDOM OF TRANSIT 
A. I
NTRODUCTION  
1. This submission sets out Egypt's experience rega rding GATT Article V – Freedom of Transit, 
and the measures that have been taken to comply with  the GATT obligations of Article V.  It explains 
Egypt's plans to modernize the transit system in the future.  Transit systems contribute substantially to 
international goods movements provided that simple procedures are put in place that meet customs and other regulatory requirements and facilitate the movement of the goods. 
B. C
URRENT TRANSIT PROCEDURES  
2. The Egyptian legislation contains legislativ e provisions, rules and procedures that are 
consistent with the provisions in the revised Kyoto Convention.  Accordingly, goods in transit are not 
subject to any constraints or unnecessary barriers, not are they subject to any taxes or customs duties. 
3. Egypt's current transit system is a paper based  system with a data processing element.  The 
process begins with the customs broker keying the data required for a transit declaration into the 
customs computer  and printing off a hard copy which he signs.  The declaration and accompanying 
documents, including a guarantee, are submitted to the customs reception office.  The goods are released unless they are sent for examination.  The gu arantee is provided in the form of either a Letter 
of Guarantee (LG) or a cash deposit based on the estimated amount of Egyptian import duties.  The majority of the traders present LGs.  Our average clearance time is 30 minutes provided no 
examination of the goods is necessary.  However, goods in transit are rarely examined, and only on 
the basis of customs' suspicion of fraud.  For certai n types of goods that pose a threat to society or are 
prohibited in Egypt, a customs official and a police escort are required to accompany the goods to the 
port of departure.  Egypt also believes that th ese goods transit movements should be timed and the 
route specified.  At the port of departure the tr ansit movement is completed when the goods and 
transit documents are presented to customs, the Letter of Guarantee is rendered void and the cash 
deposit is repaid immediately. TN/TF/W/75 
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 4. On arrival in Egypt, if the goods are secured by  commercial or customs seals and are intact no 
Egyptian customs seal is applied.  However, if th e goods are not secured by seals, or customs decide 
to examine the goods, Egyptian customs' seals will be  applied to secure the goods to the border/place 
of departure.  The goods are released provided th at the seals are intact and there is no evidence of 
tampering.  The LG is rendered void by returning a copy of the transit declaration to the office of 
arrival and the cash deposit is immediately repaid. 
C. F
UTURE VISION  
5. In the future we hope to introduce an electroni c system that removes paper handling to the 
extent possible, and provides interconnectivity be tween customs offices in order to facilitate the 
movement of goods in transit through Egyptian port s.  This will be based on the most recent world 
customs systems in this regard.  Technical assistance and support will be needed to develop an 
effective and efficient system that meets Egypt's requirements. 
6. We are developing a risk management system that will be linked to the electronic transit 
system.  This will help to identify consignments c onsidered to be high risk and reduce inspections of 
legitimate consignments to a minimum. 
7. Egypt believes that establishment of a cross border cooperation mechanism is fundamental to 
the assistance of neighbouring and landlocked countri es and that this can be arranged on a regional 
level.  The Egyptian Government is party to a number of regional arrangements with Arab League 
countries, but has not entered into any special arrange ments with these countries in relation to transit.  
These arrangements are at a very early stage of development. 
II. ARTICLE VIII:  FEES AND FORMALITIES CONNECTED WITH IMPORTATION 
AND EXPORTATION 
A. INTRODUCTION  
8. This submission sets out Egypt's experience  regarding GATT Article VIII – Fees and 
Formalities Connected with Importation and Exportati on, and the measures that have been taken to 
comply with the GATT obligations of Article VIII.   This submission would increase predictability for 
importers and exporters.  Article V III establishes certain obligations regarding fees and charges.  It 
authorizes only those that are limited to the approxi mate cost of the services rendered, and prohibits 
the fees and charges that are aimed directly at protecting domestic products or that have a fiscal purpose. 
B. C
URRENT SITUATION  
1. General Disciplines on Fees/Charges Imposed in Connection with Importation and 
Exportation 
(a) Specific Parameters for Fees/Charges 
9. The Egyptian Government carried out a review of customs duties, fees and charges related to 
importations and exportations in 2004.  As a result,  a Presidential Decree w as issued on 9 September 
2004 which reduced duty rates and eliminated a number of customs fees and charges at importation. 
10. Consular fees and invoices were phased out by a Ministerial Decree earlier this year, and the 
consular fees were abolished in the context of our  Association Agreement w ith the EU partnership, 
COMESA, and GAFTA.  TN/TF/W/75 
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 11. Although there has been no detailed cost analysis carried out, it is evident that the fees and 
charges raised represent only a fraction of the actual costs of the services provided. 
(b) Publication/Notification of Fees/Charges 
12. The customs fees and charges are published in  the customs manuals and will be on the 
website.  The other fees and charges imposed by o fficial bodies are covered by decrees, published in 
the Official Gazette, and are available in GOEIC local offices. 
(c) Prohibition of Collection of Unpublished Fees and Charges 
13. Egypt publishes all decrees, regulations and procedures relating to any fees and charges 
imposed by official bodies prior to implementation. 
(d) Periodic Review of Fees/Charges 
14. Egypt carried out a major review in 2004 which included fees and charges, and a number of 
customs fees were eliminated by Presidential Decree on 9 September 2004.  We are assessing the 
impact of these changes and will not be carrying out any further review of fees and charges until this 
has been completed. 
2. Disciplines on Formalities and Docume ntation Requirements Connected with 
Importation and Exportation 
(a) Periodic Review of Formalities and Requirements 
15. Egypt has an effective trade consultation m echanism in place.  This is done through: 
- Commodity Councils and the Indust ries Union composed of businesses 
including importers, exporters and interested parties that meet regularly with Government officials to discuss and exchange views or concerns that have 
arisen. 
- In addition, traders can address thei r views and concerns to Heads of 
department within customs using a we bpage.  Customs respond to individual 
comments and review all of them on a 6-monthly basis with the view of improving the service provided to the trade. 
(b) Reduction/Limitation of Formalities and Documentation Requirements 
- Tariff headings were reduced from over 13,000 to less than 6,000 in the past 
year thus meeting the UN and WTO commitments. 
- Egypt now conforms to the 6 digit Harmonized System. 
- Egypt's new automated import system will streamline customs procedures.  
Exports will be included in the near future, followed by the transit system. 
- Egypt is developing new computer systems that will streamline customs 
procedures and reduce customs cl earance times to 2-6 hours. TN/TF/W/75 
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 - Customs and other Government depa rtments and agencies are working 
together to achieve a more efficient, c oordinated approach to the clearance of 
goods at importation and exportation. 
- The new Risk Management System will help free up the release of legitimate 
consignments and allow us to concentrate our resources on high risk 
consignments. 
C. F
UTURE VISION  
16. In the near future, Egypt is planning to carry out a further review of the fees and charges 
relating to importation and exportatio n with a view to simplifying and minimizing them in order to 
further speed up the movement of goods through Egyptian ports, airports and points of entry.  In 
addition, customs is now in the phase of streamlin ing its import procedures and introducing the first 
stage of an electronic declaration system.  Cust oms also is introducing an Account Management 
System that will identify compliant traders and provide facilitation, thus speeding up the release of their goods.  This will allow more resources to be spent on targeting less compliant traders. 
17. Egypt is also developing a computerized risk management system.  It is drawing on the 
experience, expertise and best practice of countries that already have robust systems in place. 
III. ARTICLE X:  PUBLICATION AND ADMINISTRATION OF TRADE 
REGULATIONS 
A. I
NTRODUCTION  
18. This submission sets out Egypt's experience in  the area of Publication of Trade-Related 
Regulations and the measures that have been taken to comply with GATT Article X obligations.  The 
Egyptian customs administration is currently undertak ing a number of reforms in order to streamline 
customs procedures and improve the flow of goods  through its ports and other places of import and 
export.  It recognizes that the information needed by businesses involved in importation and exportation about the regulatory requirements sh ould be available and easily accessible.  The 
Government is moving progressively to expand th e development of computer systems to handle 
customs declarations and to maximize the use of websites to publicise its laws, regulations, 
procedures and rulings relating to trade in goods betw een Egypt and the rest of the world.  Egypt has 
taken positive steps to take advantage of the benef its that information technology has to offer, but 
recognizes that there is still a long way to go. 
B. S
COPE OF ARTICLE  X 
19. This Article obliges contracting parties to publish laws, regulations, judicial decisions, 
customs procedures and administrative rulings of ge neral application relating to imports and exports 
of goods including classification, valuation, appli cation of duty rates, taxes or other charges, 
prohibitions and restrictions and ot her requirements.  Agreements betw een contracting parties or their 
agencies should also be published. 
20. Paragraph 2 prohibits the enforcement of any measure impacting on imports before it is 
officially published. 
21. Paragraph 3 requires a contracting party to admini ster its laws and regulations in an impartial 
and fair manner and to have in place an independe nt appeals system for individuals and businesses to 
challenge official decisions relating to customs matters.  TN/TF/W/75 
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 C. CURRENT SITUATION  
1. Publication and Availability of Information 
(a) Publication of Trade Regulations 
(i) Publication of Laws, Regulations, Decisions, Rulings and Guidelines 
22. In Egypt all laws and decrees are required to be  published in Arabic in the Official Gazette 
prior to implementation.  These can be purchased by any person. 
23. The Customs Tariff and Customs Manuals are available in paper form.  These contain 
information on import and export re quirements, goods classification, valuation, duties and taxes and 
customs procedures, including the appeals procedures. 
24. Other Government departments and agencies, e. g., the General Office for Export and Import 
Controls (GOEIC) publish their own manuals and pr ocedures and these are available in local GOEIC 
offices.  Furthermore, the GOEIC has started to est ablish a website to be used in the near future. 
(ii) Publication on Website 
25. The Egyptian Government is planning to have all the information relating to importation and 
exportation available on the website.  Customs are currently carrying out the experimental phase of 
placing the Customs Manuals on the customs website. 
(iii) Decisions and Judicial Reviews 
26. Egypt has an independent appeals system.  At the end of the appeals process a decree is 
published in the Official Gazette explaining the decision. 
(iv) Enquiry Points 
27. Egypt has established enquiry points at the major ports, airports and points of entry to provide 
personal assistance and advice to importe rs and exporters free of charge. 
28. Furthermore, the "comments" page on the webs ite performs a similar, additional function.  
Comments and enquiries are addressed to the Head of  the appropriate office and will be answered.  
There is a 6-monthly review of all the comments with a view to improving customs procedures. 
29. Our embassies and representative offices abroad  also provide information, advice and 
assistance to businesses wishing to trade with Egypt. 
(b) Publication of Penalty Provisions 
30. Egypt publishes the penalties that may be im posed, and the basis for the penalties, in the 
Official Gazette and Customs Magazine.  They will be available on the website in the near future. 
2. Time Period between Publication and Implementation 
(a) Interval between Publication and Entry into Force 
31. Decrees are published in the Official Gazette from variable periods prior to their 
implementation on a case-by-case basis. TN/TF/W/75 
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 (b) Consultation and Commenting on New and Amended Rules 
(i) Prior Consultation and Commenting on New and Amended Rules 
32. Egypt has an effective system for trade consultation with the regulatory bodies through 
meetings with exporters, importe rs and other interested parties in Commodity Councils and the 
Industries Union.  Although the meetings are not or ganized on a regular basis, consultation with these 
bodies takes place when new regulations and proce dures are being proposed and they are provided 
with the opportunity to influence the final outcome. 
33. In addition, there is a comments page on the customs website where traders are invited to 
comment on any aspect of customs rules and proce dures and to ask questions.  These comments are 
directed to the Head of the custom s department responsible for the issu e in question.  A review of all 
the issues raised is carried out every 6 months w ith the view of improving the law and procedures. 
(c) Publication/Notification of Fees/Charges 
34. In Egypt all fees and charges imposed by o fficial bodies are covered by decrees and are 
published in the Official Gazette. 
D. F
UTURE VISION AND CONCLUSION  
35. Egypt recognizes the need to have information available and easily accessible to assist foreign 
traders to trade with Egypt and Egyptian businesses to  trade in other countries.  Publication of trade-
related regulations and procedures on the WTO website in one of the WTO official languages would 
greatly assist businesses seeking to expand their market s.  Egypt hopes that it will receive adequate 
technical assistance and support needed to expand the use of the website and to translate the 
publications into one of the WTO official languages. 
 
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