WORLD TRADE  
ORGANIZATION  TN/TF/W/69 
24 October 2005 
 
 (05-4893) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM EGYPT 
  
 The following communication, dated 21 October 2005, is being circulated at the request of 
the Delegation of Egypt. 
 
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REFORMING CUSTOMS AUTHORITY, FIGHTING CORRUPTION,  
AND THE USE OF COMPUTERS 
 
Egypt's National Experience
 
  
1. The Egyptian Customs Authority launched a m odernization process to reform all customs 
systems and procedures two years ago. 
2. The overlapping and the complexity of the procedures, the large number of required 
signatures, the absence of coordination between Customs and other control authorities were 
eliminated which helped greatly in reducing the clearance average and time of imported shipments to 
2-6 hours (unless there are inspections by the other control authorities) instead of 22 days as was the 
case in the past. 
3. The structure of the customs tariff was amended by virtue of Presidential Decree 
Nos. 300/2004, and 410/2004.  As a result of this am endment the tariff rates were reduced to 6 rates 
instead of 27 rates ranging from 2% - 40% (2%, 5%, 12%, 22%, 32% and 40%). 
4. Most tariff distortions were eliminated throug h maintaining a consistent escalation of the 
tariff rates of raw materials;  semi finished goods and finished goods. 
5. The disputes and arbitration cases between customs and its dealers became less than 1% 
instead of 35% as was the case in the past. 
6. The most important international systems applied by the Egyptian customs are: 
A. T
HE SINGLE WINDOW  
7. The Single Window aims at improving and simplifying the procedure cycle and reducing the 
clearance time of imported shipments which leads to lessening costs borne by the importers such as 
ground and storage fees.  This system depends on other systems such as: 
- The use of the risk management programme. 
- Adopting post clearance audit system. TN/TF/W/69 
Page 2  
 
 - The use of an advanced database to achie ve transparency between customs and its 
dealers. 
- The developed procedures are done accordi ng to the one-stop shop system, i.e., the 
procedures go through one way by identifying release channels. 
- Green channel means documentary check, pa ying off the duties, receiving the release 
order unless there are inspections by the other control authorities. 
- Yellow channel means some documents need to be completed. 
- Red channel means a review of the documents  and coordination with the other control 
authorities will be conducted. 
 
B. P
RE-ARRIVAL RELEASE  
8. This system is considered to be one of the most modern systems and practices, which meets 
the importers' needs, which consequently lead s to facilitate international trade movement. 
9. The philosophy of this system is based on launching the documentary procedures on the 
goods that are being shipped and before its arriva l at the country as the shipment will be released 
through documents. 
10. Upon the actual arrival of the shipment, the goods  will be released through the contact points 
located in the customs sectors, thus the clearance time is reduced as is the cost of the imported articles 
which eventually is in favour of the consumers. 
(a) Pre-arrival customs procedures 
- Inserting the data into computers. 
- Submitting the originals obtained from fr eight forwarders, banks, etc., and a 
commitment to pay for any difference occurred. 
- Determining the release channel (green, yellow or red channel). 
- Payment of the accrued taxes and duties. 
- Getting an initial release order of three copies (one for the client or his representative, 
another for the file, and a third for the gate). 
- Sending the release order, the invoices and th e packing list to the contact point of the 
releasing customs via fax or scanner. 
 (b) Post-arrival customs procedures 
- The importer submits to the head of the contact point the original and the copy of the 
release order, and the other documents. 
- The declaration will be then recalled from the terminal according to the release 
channel. 
- Verify the goods with the submitted documents and, in case of matching, the goods 
will be released after obtaining the permits of the other control authorities, if any. 
- In case of discrepancy, the shipment will be inspected and the accrued differences will 
be calculated.  Issue the final release order of three copies (one for the client or his representative, another for the customs file, and a third for the gate). 
 C. A
CCOUNT MANAGEMENT SERVICE (AMS) 
11. This service is provided for large importers w ho have no record of infractions and who are 
being compliant with customs systems and pro cedures that is only ensured by applying risk 
management and post clearance audit systems and acco rding to the customs data base.  The Account  TN/TF/W/69 
 Page 3 
 
 
 Management Service is one of th e best practices which are being applied in the modern customs 
authorities. 
12. The US authorities applied a system based on accounting in the year 1984 which enabled 
them to: 
- Achieve a higher level of compliance with Customs and other control authorities. 
- Provide a statistical database which would help in planning and decision making. 
- Have more flow for international trade. 
- Standardize the importation process and the quick release. 
 13. The Account Management Service aims at serving the importers and speeding up the 
clearance process, and at enhancing complia nce of trusted importers with customs. 
(a) Objectives of the Account Management Service 
1. To align the clearance process with th e accounts instead of transactions. 
2. To establish transparency in the accounts and import clearance. 3. To improve import processes and customer service. 
 
(b) Required changes 
1. Enhance the compliance with import rul es with a view to facilitate trade. 
2. Empower the customs authority with the required authorities for the clearance 
process. 
3. Use the networks to minimize corruption. 
4. Establish a client-focused service to e nhance the communication between customs 
and its clients. 
5. Encourage communications with public and private sectors in international trade. 
 
• AMS offers specific benefits to Customs, other control authorities (OCAs) and the 
importers that will raise standards and levels of service 
 
• AMS benefits to Customs and OCAs 
 
- Account compliance with import requirements. 
- Pre-arranged inter-authority agreem ents that facilitate clearance. 
- Eliminates burdensome and sequential inspection process at port. 
- Increases throughput at sea ports, with capability of expanding service to airports. 
- Focused port level resources on high-risk ship ments rather than repetitive, low-risk 
shipments. 
- More in-depth knowledge of customer and goods imported. 
- Enhanced risk assessment and risk mitigation capabilities. 
- Standardized procedures across ports. 
- Ability to collect revenues earlier and more predictably. 
- Reduced reliance on multiple personal relati onships for predictable and expedited 
service. 
 
• AMS benefits to importers 
 
- Expedited clearance processing time. 
- Improved ability to manage inventory, resu lting in decreased costs to importer and 
across the supply chain. TN/TF/W/69 
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 - Lowers need for demurrage, resulting in lessened demurrage costs. 
- A dedicated Accounts Manager who will represen t importer interests and facilitate the 
clearance process. 
- Standardized and consistent service across ports. 
- Pre-arranged inter-authority agreem ents that facilitate clearance. 
- System of data capture that establis hes compliance and facilitates trust. 
- Reduced reliance on multiple personal relati onships for predictable and expedited 
service. 
- Establishing a system for data collection which will help to enhance compliance and 
trust among customs and dealers. 
- Reduced reliance on multiple personal re lationships for expedited service. 
 D. A
DVANCED CUSTOMS CENTRES  
14. For the purpose of developing customs proce dures and reducing clearance time which would 
consequently contribute in lessening the release cost s, the Alexandria Advanced Customs Centre and 
Suez Advanced Customs Centre have been establis hed and equipped with a ll means (such as personal 
computers, plasma displays, appropriate lightening systems, air conditioning, appropriate training for 
personnel, etc.) which will help to accomplish work efficiently with the least possible release time. 
15. Work has started and the results contain the following statistics: 
- Shipments are released under the risk mana gement system (Green line) in a time 
ranging from 30 minutes to 46 minutes (less than an hour). 
- Shipments are released under the risk manage ment system (Red line) in a time ranging 
from 47 minutes to 100 minutes (less than two hours). 
- The number of signatures on the customs declaration in the Green line system are 3 
signatures. 
- The number of signatures on the customs declaration in the Red line system are 5 
signatures. 
 (a) Steps taken by the Customs Authority to provide facilitation for the client (trade facilitation) 
- Service fees have been eliminated by virt ue of the Ministry of Finance Decree 
No. 1230 for the year 2004. 
- The Ministerial Decree No. 1858 for the year 2004 concerning elimination of 
collecting any additional fees on imports and exports during official working hours has 
been issued. 
- The certificates of origin and the documents  accompanying the imported goods in the 
framework of GAFTA (Greater Arab Free Trade Area), COMESA (Common Market For Eastern and Southern Africa), EU-Egypt Association Agreement, and the bilateral 
agreements in case of reciprocity are not required to be approved by virtue of 
Ministerial Decree No. 1859 for the year 2004. 
- Some articles of the Customs Law have been  amended, approved by the Parliament on 
15 June 2005, and issued in the Official Journal No. 24 bis on 21 June 2005. 
- The Executive Regulation of the new cu stoms law has been prepared.  The 
amendments of the Customs Law and the Executive Regulation have been done after 
taking into consideration the views of all th e authorities concerned with customs work 
such as different associations, business comm unities, law professionals, and university 
professors. 
- Law No. 8 for the year 2005, concerning th e amendments of some of the articles of 
Customs Exemption Law No. 186/1986 has been issued in the Official Journal No. 13 
on 31 March 2005.  TN/TF/W/69 
 Page 5 
 
 
 - The Executive Regulation of the Customs Ex emptions Law has been prepared taking 
into consideration simplifying procedures,  and establishing trust and transparency 
among the customs authority, the other contro l authorities and the customs dealers. 
- In addition, there is a project to apply ri sk management on the national level among the 
Ministry of Finance (represented by the Customs authority) and other ministries and 
authorities by preparing a comprehensive databa se to link all the ministries and country 
institutions with the purpose of international trade facilitation to place Egypt among the developed countries in that field, and to achieve transparency and justice between all customs clients. 
- Apply e-customs declaration via Internet. 
- To achieve transparency with all clients, customs tariff explanatory notes have been 
prepared which consist of four books, ta king into consideration that the Egyptian 
Customs Authority is the first among the Arab  countries to issue these notes in its final 
format.  In addition, the Egyptian Customs Law has been prepared in its final format in 
both Arabic and English languages. 
- Activating a Customs website on the Internet  by publishing all laws, regulations, and 
decisions that concern all clients, whethe r in Egypt or abroad.  The website is 
www.customs.gov.eg. 
- The customs service project on the Internet was launched via Internet  to enable 
customs clients or their representatives to inser t the import declaration or the manifest.  
To join this service, the importer should cont act the management of the project in order 
to get a free username and p assword.  This service has b een announced in the customs 
complexes. 
- The payment of customs duties and taxes using "Visa cards" has been implemented. 
  
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