Question

What trade policy instruments does Egypt's government practice?

Example: In Brazil, a new regime was recently implemented for the
automotive sector, which requires a minimum local content of 65%, in addition to required investments in local R&D among other investments. Carmakers that comply with such rules
will be able to obtain a 30% tax break for IPI (tax on industrialized
products). IPI for companies not included in the regime range from 37% to 55%
(automobiles). The local content level will be gradually increased over the
years.It has been declared by government officials that the goal is to reach
close to 100% of local content in the automotive industry.

Answer 1

Egypt - Trade Barriers

Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.

Non-Tariff Trade Barriers

The Egyptian Minister of Industry and Trade issued a decree (992/2015) on Dec. 31, 2015, requiring foreign manufacturers of specific products to register for export with the Egyptian General Organization for Export and Import Control (GOEIC). This measure was superseded by a second decree (43/2016) on Jan. 16, 2016.

Under Decree 43/2016, listed products will only be allowed entry into the Egyptian market if they are registered by the owner of the manufacturing facility or the legal holder of the trademark in advance. This decree entered into force on Mar. 16, 2016.

Products for which registration is required:

• Milk and milk products for retail sale in packages of 2 kg or less
• Preserved and dried fruits for retail sale in packages of 2 kg or less
• Oils and fats for retail sale in packages of 2 kg or less
• Chocolate and food products containing cocoa for retail sale in packages of 2 kg or less
• Sugar confectioneries
• Pastries and food preparations of cereals, bread and bakery products
• Fruit juices for retail sale in packages of 10 kg or less
• Natural, mineral and carbonated water
• Make-up cosmetics, oral and dental care products, deodorants, toiletries and perfume preparations
• Soap and surfactants intended for use as soap, for retail sale
• Floor coverings
• Bath tubs, sinks, wash basins, toilets, toilet seats and covers thereof;
• Toilet paper, cosmetic paper, diapers, and towels
• Tableware, cutlery and kitchenware
• Table glassware
• Reinforced iron
• Household appliances (stoves, fryers, air-conditioners, fans, washing machines, blenders, heaters)
• Home and office furniture
• Regular bicycles, motorbikes, motorized bikes
• Watches
• Lighting devices for home use
• Toys
• Textiles, clothing, furnishing, carpets, blankets and footwear except personal protection equipment and medical use clothes
• Carpets
• FootwearThe product manufacturer, trademark owner or its legal representative may submit the application for registration in person or pre-check it online (GOEIC). U.S. exporters are encouraged to apply in person, through a local representative, if necessary, to ensure proper submission of the required documentation. All documents submitted must be certified by the chamber of commerce at the location of issuance, legalized/notarized by the Egyptian embassy in the country of origin, and translated into Arabic.
  In addition to the application form, the following documentation is required.

For factories:

Factories must submit a registration form together with the following documents:

• Certificate of the legal status and the license of the factory
• List of the manufacturer’s products and its trademarks
• The trademark of the product and any licensed trademarks by the trademark owner
• A certificate to prove that the factory has a quality control system, issued by a body recognized by the International Laboratory Accreditation Cooperation (ILAC) or International Accreditation Forum (IAF) or from an Egyptian or foreign governmental entity approved by the Ministry of Foreign Trade.
  

For trademark owners:

Licensees must submit a registration form together with the following documents:

• A certificate to prove registration of the trademark and a list of products manufactured under this trademark
• A certificate from the trademark owner listing the distribution centers that are authorized to distribute products with this trademark
• A certificate to prove that the trademark owner has a quality-control system, issued by an entity recognized by the International Laboratory Accreditation Cooperation (ILAC) or International Accreditation Forum (IAF) or from an Egyptian or foreign governmental entity approved by the Ministry of Foreign Trade.
  U.S. exporters of affected products must comply with all Egyptian laws and regulations to ensure customs clearance. Any products arriving after Mar. 16, 2016, will be subject to these requirements. Documents must be legalized at the local chamber of commerce and the Egyptian consulate or embassy.