NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994

Egypt

The following communication, dated 17 February 2025, has been received from the delegation of Egypt.

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Pursuant to Article 22.2 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, Egypt is notifying that the Customs Law No. 207 of 2020 and Minister of Finance Decree No. 430 of 2021 Promulgating the Executive Regulations of the aforementioned Customs Law replace :

·_        The Customs Law No. 66 of 1963;

·_        The Executive Regulations of the Customs Law, promulgated by Minister of Finance Decree No. 10 of 2006.

The relevant Customs Valuation text (unofficial translation) of Articles 16, 63 and 64 of Egypt's Law No. 207 of 2020, and Article 1, paragraphs 15-19 and Articles 30-52 of the Minister of Finance Decree No. 430 of 2021 are attached.[1]

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Customs Law No. 207 of 2020

Article (16)

Subject to the provisions of international agreements to which the Arab Republic of Egypt is a party, the value to be declared for customs purposes in the case of imported goods shall be the actual value of the goods to which are added all actual costs and expenses paid in connection until the arrival at the port of destination in the Republic territories, provided that the declaration shall include the detailed elements of the goods and the value related thereto for customs purposes.

If the value of the goods is defined in foreign currency, it shall be estimated on the basis of the exchange rate as announced by the Central Bank of Egypt on the date of registering the customs declaration, or the exchange rate announced by virtue of a decree by the Minister.

The Executive Regulations of this Law shall determine the terms, conditions and rules of application of this article.

Article (63)

The concerned party (consignee) may apply for a complaint for determining the type of the cargo, its origin or value. Committees shall be formed at the authority to decide upon the complaint where the decision of the committee shall be made pursuant to a decision issued by the Minister or his designee under the presidency of one of the employees of the authority that in the least is a general manager and the membership of two of the employees of the authority. The concerned party (consignee) or his representative may attend before the committee. The committee shall decide upon the complaint within seven working days as of the date of submission of the complaint application with a decision accompanied by the reasons for issuing same. If the concerned person accepts the decision of the committee within seven days of notification, minutes shall be issued in that regard and the authority shall commit to execution of the said decision.

The executory regulation to this law shall determine the regulations and business procedures of these committees.

Article (64)

Bearing in mind the provisions of the arbitration law in the civil and commercial articles issued by law No.27 for the year 1994, if the dispute continues between the authority and the concerned person and the latter person or his representative requested to refer the dispute to arbitration and the Minister or his designee approved, the dispute shall be referred to an arbitration panel formed under the presidency of one of the members of the judicial authorities or organizations who in the least shall be a counselor or one of the professors of the faculties of law who is registered in the arbitration schedule of the Ministry of Justice and the membership of an arbitrator of the authority to be chosen by the Minister or his designee together with another arbitrator chosen by the concerned person.

The arbitration panel shall issue its decision accompanied by the reasons for issuing same in the majority of votes provided that the decision shall include a statement of who shall bear the arbitration expenses. The panel decision shall be final and binding to both parties which is unappealable except for in the cases stipulated in the arbitration law in the mentioned civil and commercial articles.

The executory regulations to this law shall determine the expenses, rules and business procedures before the arbitration panels and remuneration of their members.

Minister of Finance's Decree No. (430) of 2021,

Promulgating the Executive Regulations of the Customs Law, Promulgated by

 Law No. 207 of 2020

Article (1)

For the purpose of implementing the provisions of the present Executive Regulations, the terms and expressions herein below shall have the meaning adjacent thereto:

15. Transaction value: The price actually paid or payable (the total payment made or to be made by the buyer to or for the benefit of the seller) for the goods when sold for export to Egypt.

16. Identical goods: Imported goods for which their contractual value has been previously accepted and identical in all aspects, including physical characteristics, quality, and standards. Without any effect on minor differences in appearance.

17. Similar goods: Imported goods for which their contractual value has been previously accepted and that have similar physical characteristics and components that enable them to perform the same functions and be commercially interchangeable with each other, taking into account quality, commercial reputation, and whether or not they bear a trademark, even if they are not similar in all aspects.

18. Reduced value: A method for evaluating imported goods based on the unit selling price at the largest total quantity according to the importer's records of the goods being evaluated or identical or similar imported goods, in the local market after deducting total profit and general expenses or commissions usually paid or agreed to be paid or the additions usually made for profit and general expenses in connection with sales in such country of imported goods of the same class or kind in Egypt.

19. Calculated value: A method for evaluating imported goods based on the total costs of the product in the country of production, with the aim of selling them for export to the Arab Republic of Egypt. This includes the cost of materials and manufacturing involved in producing the imported goods, as well as profit margins, general expenses, transportation costs, insurance, shipping, unloading, and handling up to the port of arrival in the Arab Republic of Egypt.

Article (30)

Without prejudice to the provisions of the implementation of Article (7) of the General Agreement on Tariffs and Trade (Customs Valuation Agreement), Subject to the provisions of Articles (38), (50) of these Regulations, the Customs Authority has the right to not recognize any statement, documents, instrument or declaration provided to it for valuation, if it has reasons raising suspicion on the validity and correctness of such data or documents or the value declared for customs purposes.

Article (31)

The value of imported commodities or goods, which are to be declared for customs purposes, shall be their actual value. The main basis for determining such a value shall be the contract value of the transaction (transaction value), after adding the costs actually paid by the purchaser and not included in the price actually paid or to shall be paid for the imported goods. The actual costs and fees indicated in the first paragraph of this article include:

a)_    The following items, which are calculated based on the amounts borne by the purchases but not included in the price paid or due for imported commodities:

1._  Commissions and brokerage charges, except for purchase commissions.

2._  Packing cases costs, which are, jointly with the goods' costs, deemed one unit for the customs valuation purposes.

3._  Packaging and wrapping costs (either packaging works or packaging materials).

b)_    The value of the following commodities and services rendered by the purchaser, directly or indirectly, free of charge or at low costs, to produce the imported commodities, as much as this value has not been forming part of the paid price or the price to be paid:

1._    The materials, components, parts and similar elements, which form part of the imported goods.

2._  The tools, morsels, molds and similar types of goods used to produce imported goods.

3._  Materials consumed to produce imported goods.

4._  Engineering, development, technical and designing works, plans and drawings prepared in a country other than Egypt and required to produce the imported goods.

c)_    Returns, licensing charges, payments made for patents, registered trademarks and publicity rights, and royalties related to imported goods, which are paid by the importer directly or indirectly as a condition for sale, provided that such payments shall not form part of the sale price paid or the price to be paid.

d)_    The value of any entitlements due to the seller out of the proceeds of sale, distribution, disposal or use of the imported commodities, whether these entitlements are direct or indirect if they represent one of the sale conditions.

e)_    he costs of transporting or handling the imported commodities, the costs of shipping, security, unloading and other services related to transporting the commodities until unloaded in the port of arrival. With respect to the freight and insurance, if no related documents are provided, the peer prices prevailing on a current date shall apply.

Article (32)

When adding the elements and costs set forth by the Article(31), such elements and costs shall be calculated based on objective and quantitative data.

No amounts shall be added to the actually paid or the price to be paid when determining the customs value except under the provisions of the Article(31) unless they represent a sale condition.

Article (33)

The customs value shall not include the following encumbrances (charges) and costs, provided that they shall be distinguished and separated from the actually paid price or the price to be paid for imported commodities:

a)_    Transport costs after importation.

b)_    Taxes and duties imposed in Egypt.

c)_    Expenses and encumbrances for construction, building, assembly, maintenance and technical assistance services provided after importing the commodities.

d)_    Purchase commission.

e)_    Costs of marketing activities performed in Egypt and related to marketing of the imported goods.

f)_     Costs of engineering works, plans, drawings, technical activities performed in Egypt and related to the imported goods subject to valuation.

g)_    Costs related to the right to reproduce imported commodities in Egypt.

h)_    Interest accrued from the finance contract that are paid by the purchaser.

i)_     Dividends paid by the purchaser to the seller.

Article (34)

To accept a transaction value for customs purposes, the following conditions shall be met:

a)_    There are no restrictions on the disposal and use by the purchaser of the commodities. However, the following cases shall not be deemed restrictions:

1._    Restrictions imposed by the Law or the public authorities in Egypt.

2._    Restrictions having no impact on the value of the commodities.

3._    Restrictions determining the geographic areas where the commodities can be resold.

b)_    The sale process or sale price shall not be subject to a condition or consideration, the value of which cannot be determined, regarding the goods subject to valuation.

c)_    The seller is not entitled to part of the proceeds of resale, distribution, disposal or use by the purchaser of the commodities in a subsequent phase, whether directly or indirectly, unless the value of these proceeds can be determined and added to the commodities value.

d)_    There is no relationship between the seller and the purchaser, which affects the value of the transaction, whether they are natural or juridical persons.

Article (35)

To apply the provisions of Clause (d) of the Article(34), any persons shall be deemed to have a relationship with each other in the following cases:

To apply the provisions of Clause (d) of the Article(34), any persons shall be deemed to have a relationship with each other in the following cases:

a)_    If either of them acts as an employee or manager of the other(s).

b)_    If they are legally recognized as work partners.

c)_    If they act on a master-servant basis.

d)_    If either of them or both of them, directly or indirectly, own or have an interest of 5% or more of the shares or equities and, accordingly, has the right to vote on the boards of each other.

e)_    If either of them supervises the other, directly or indirectly.

f)_     If both of them fall, directly or indirectly, under the supervision of a third party.

g)_    If both of them supervise, directly or indirectly, a third party.

h)_    If they are relatives up to the fourth degree of kinship.

The persons who have a business relationship, whereby either of them acts as a sole agent, sole distributor or sole franchisee for the other, shall be deemed to be linked with each other if they meet the standards referred to hereinabove.

Article (36)

If one of the relationships set forth by Article (35) of these Regulations is available, the customs department shall review circumstances that surround the transaction to confirm that such a relationship has no impact on the price of the commodity subject to valuation. The customs department, after consultation with the executive customs manager, could request the importer to provide information, documents or justifications and shall grant the importer a grace period of no more than fifteen days for response.

If the customs department still opines that such a relationship has an impact on the price, the importer or his delegate could, within fifteen days, prove that the relationship has no such impact and that the declared value is not less, except within the limits of 10%, than the following values:

a)_    Contractual values of identical or similar commodities imported by and between non- associated parties and exported to Egypt within sixty days prior to or after the exportation date of the commodity subject to valuation.

b)_    A customs value of identical or similar commodities, which has been determined based on the provisions of Articles (39) and (40) of these Regulations. When applying the above tests, it is required to consider:

1._      The differences in commercial and quantitative levels.

2._      The costs and expenses elements set forth by Article (31) of these Regulations.

The above tests shall be used at the initiative of the importer and for valuation purposes only. The test values shall not replace the declared values.

The transaction value shall be accepted, if the relation has not impact on the price, and the Customs Authority has not any objective doubts in accepting this price.

Article (37)

The transaction value of commodities and goods, according to Article (31) of these Regulations, shall not apply in the following cases:

a)_    The types of goods received for personal use.

b)_    If some types of goods are stated in an invoice but do not reflect or form part of the actual value, while the person of concern cannot support such value by documents acceptable to the Customs Authority.

c)_    The incoming commodities are to be used as presents, gifts, samples or advertising materials.

d)_    The incoming goods are to be used for lease or be kept in trust(consignment).

e)_    Types of goods received for account of a supplier, which come from their origin to a branch.

Article (38)

In case of doubts regarding the correctness of the declared value, it is required to consider the following:

a)_    If the Customs Authority has reasons whereby it has doubts regarding the correctness of data or documents provided or value declared by a person of concern or his delegate, the competent customs department shall notify the concerned person or his agent of these reasons with a request for clarification or additional documents proving the correctness of the declared value. However, the person of concern or his agent shall be granted a grace period to respond. Such a grace period shall not exceed fifteen days from the date of submission of the related request.

b)_    If the documents and data provided and the justification given by the person of concern, regarding the correctness of the value are satisfactory to the competent customs department, the transaction shall be accepted. However, if they are not satisfactory or if the grace period expires without response, a decision shall be issued to determine a value to be accepted by the competent customs department.

Article (39)

If it is not possible determine the value of commodities subject to valuation according to the provisions of the above Articles, the value for customs purposes shall be the contractual value of identical commodities sold for exportation to Egypt and received within a period of sixty days prior to or after the exportation date of the commodities subject to valuation. However, such identical commodities shall further be at the same commercial level or in approximately similar quantities.

If the commercial or quantitative level or both levels are different, the value of the identical goods sold at a different commercial or quantitative level or both levels shall be used after making modifications to consider the different commercial or quantitative level or both. However, such modifications shall apply based on evidence proving their accuracy, whether they lead to increasing or decreasing the value of such identical goods. Moreover, the difference in costs and encumbrances stated in Paragraph (E) of Article (31), regarding distances and means of transport, shall be duly considered. Moreover, the following elements shall be considered:

a)_    If there is more than one contractual value of identical commodities, the lowest value shall be used for valuation of the customs value of the imported goods subject to valuation.

b)_    The identical commodities shall not include commodities representing or reflecting the engineering works, development works, technical works, design works, plans and drawings, which are not added to the value of the imported commodities for having been prepared in Egypt.

c)_    Commodities shall not be deemed identical unless they are produced by the same country that produced the commodities subject to valuation. No commodities produced by another producer in the same country, where the commodities subject to valuation are produced, shall be considered unless there are no identical commodities produced by the same producer of the commodities subject to valuation.

Article (40)

If it is not possible to determine the value for customs purposes of commodities subject to valuation according to the provisions of the above Articles, the value for customs purposes shall be the contractual value of similar commodities sold for exportation to Egypt and the provisions of Article (39) of these Regulations shall apply thereto.

Article (41)

If is not possible determine the value for the customs purposes of the imported commodities, according to the provisions of the above Articles, the customs value shall be determined based on the provisions of the following two Articles (42), (43) unless the importer requests that the following order be arranged otherwise. If it becomes clear to the Customs Authority that it is impossible to determine the value according to Article 43, Article 42 of these Regulations shall be used to determine the value, if this is possible.

Article (42)

Without prejudice of the provisions of the article (41) of these regulations, the value for the customs purposes is the deducted value as following:

a._     If the imported commodities or the identical or similar imported commodities are sold in their condition when imported, the value of imported commodities for customs purposes shall be determined under this Article by applying the following:

1._  The unit price used to sell the imported commodities or the identical or similar commodities in their condition when imported, in the local market and in the largest total quantity, within sixty days prior to or after the date of arrival of the commodities subject to valuation to Egypt in favor of persons who are not associated to the persons who purchased these commodities. However, the following deductions shall apply:

-_      The commissions that are usually paid or agreed to be paid by the exporter to the importer or are paid according to prevailing trade usages or the total profits and general expenses of commodities of the same category or type which apply in Egypt.

-_      The usual costs of transport, insurance and the related costs incurred in Egypt.

-_      The customs taxes, other taxes and duties imposed in Egypt, related to the import or sale of commodities.

2._  If no sale transactions are carried out in the local market for imported commodities or identical or similar commodities in their condition when imported and within the period referred to in Clause (a/1) herein, the unit price of sale in the local market during a period not exceeding ninety days from the date of arrival of the commodities subject to valuation shall apply. This is without prejudice to any other provisions set forth by Clause (a/1).

b._     If the imported commodities or the identical or similar commodities are sold in their condition when received by the local market, the value for customs purposes shall, if requested by the importer, be determined based on the unit price used to sell the imported goods after the preparation thereof in the largest total quantities to non-associated persons. However, the value added due to preparation shall be deducted jointly with the other deductions set forth by Clause (1/a) of this Article.

The deduction of the additional value for preparation of imported goods shall conditionally rely on objective and quantitative data supported documents and data derived from registers, such that this data reflects the preparation costs accurately.

c._      When applying this Article, the following conditions shall be met:

When determining the unit sale price hereunder, no sale transaction shall be considered if made to a person who directly or indirectly, free of charge or at low costs, provides any of the elements stated in paragraph (b) of Article (31) of these Regulations for use in the production of imported goods.

The unit sale price applied to local markets for imported commodities shall be obtained from the registers and books of the importer of the commodity subject to valuation or from the importers of identical or similar commodities.

The deductions applied to the unit sale price to reach the value for customs purposes shall be determined based on objective and quantitative principles.

The quantum of the totally deductible profits and general expenses shall be determined based on the information to be provided by the importer or his delegate. However, such information shall conform to the information derived from the sales of commodities of the same category or type. The commodities of the same category or type include the commodities imported from the same country from which the commodities subject to valuation is obtained and the commodities imported from other countries. The term "general expenses" includes the direct or indirect costs of marketing the commodities subject to valuation.

The accounting rules and trade usages to be used as guidance to apply the provisions of this Article shall be the rules applied in Egypt.

Article (43)

Without prejudice to the provisions of the above Article (41) of these regulations, the customs value shall be the value calculated according to the following elements:

a)_    The costs or value of the materials that form a part of the manufacturing process, the manufacturing costs, the costs of preparation work, which are involved in the production of the imported commodities.

b)_    The quantum of profits and total general expenses, which customarily equal the profits and expenses of sales of commodities of the same category or type as the commodities subject to valuation and are manufactured in the country of production for exportation to Egypt.

c)_    The costs or value of all other expenses related to transport, handling, shipping, insurance and unloading.

The accounting rules and trade usages to be used as guidance to apply the provisions of this Article shall be the rules applied in the country of production. These rules and usages shall be evidenced by any available information sources.

The use of the calculated value method is strictly limited to cases where the purchaser and seller are associated, and the producer is ready to provide the necessary cost and provide facilities for any verification that could be required later.

Article (44)

If is not possible determine the customs value of imported commodities based on the above Articles, such value shall be determined using the same methods set forth by these Articles with a degree of flexibility and other convenient methods conforming to the principles and general provisions of the WTO Agreement on Customs Valuation and the data available to the importing country. The following cases of flexibility could apply according to the provisions of this Article:

a)_    If there are no identical or similar commodities exported to Egypt within the periods scheduled by the above Articles, the value for customs purposes shall rely on identical or similar commodities exported to Egypt within a period of One Hundred Twenty days prior to or after the exportation date of the commodities subject to valuation.

b)_    If there are no imported commodities that are identical or similar to the commodities subject to valuation, the customs value of identical or similar commodities of another product coming from the same country of origin shall be recognized. If not available, the customs value of identical or similar commodities coming from another origin shall be recognized.

c)_    The value for customs purposes, which have been determined for identical or similar commodities under Articles (42) and (43) of these Regulations, could be recognized.

d)_    If there is no sale price for the imported commodities subject to valuation or the identical or similar commodities in the local market within the periods scheduled in Article (42) of these Regulations, the value for customs purposes could rely on the unit sale price in the local market within a period not exceeding One Hundred Eighty days from the importation date.

The importer will be notified, as per his request, of the customs value and the method applied to determine the same.

Article (45)

According to the provisions of the Article (44) of these regulations, the customs value shall not be determined based on the following:

a) A sale price of a locally produced unit in the local market.

b)  A system providing for the acceptance for customs purposes of the higher of the two alternative values.

c)  A sale price of commodities in the local market of the country of export or production.

d) A production cost other than the accounting value determined for identical or similar commodities according to Article (43) of these Regulations.

e)  A price applied to export to a country other than Egypt.

f)  The lowest customs value.

g) Random or fictitious values.

Article (46)

Used cars, which are received for personal or private use or are permitted to be imported for trading during the period from the first of October of the model year up to the end of September of the next year, shall be granted a discount of 10% of the (FOB) value. However, such used cars shall have met all the import rules.

The cars referred to hereinabove, which arrive after the said date, shall be granted a discount of 5% for every subsequent year. Such a discount shall be calculated as of the first of October of every year, without prejudice to the discount and conditions referred to in the above paragraph.

The discount percentages stated in the above shall not exceed 50% of the (FOB) value.

Article (47)

The importer or his legal representative shall submit electronically the following documents:

a) A data-complete declaration of value, accompanied by an original purchase invoice, all valid documents related to shipping and insurance costs and expenses, and all statements of expenses and encumbrances resulting from importing the goods up to unloading the same on the port of arrival.

The purchase invoice shall include complete data, including the names of the seller and purchaser, the total price actually paid or due to be paid, a full description of the imported goods, and the terms of contracting.

b) The contracts, correspondence, documentary credits and other documents required to prove the validity and correctness of the transaction value as requested by the Customs Authority if the value determination process requires so.

Article (48)

Upon a request of the importer, after submission of a financial guarantee covering the value of the customs tax and other taxes and duties, the goods could be released if the customs tax base will, in order to be determined, require time for submission of documents or clarifications for the purpose of valuation.

Article (49)

The Customs Authority shall treat all the information that is confidential by nature or is submitted on a confidentiality basis for customs valuation purposes as strictly confidential. The Customs Authority shall not disclose this information without permission from the person or entity that provided the same, except within the limits required for legal actions or court proceedings.

Article (50)

Upon a written application to be submitted to the head of the customs post, the importer could obtain written clarification from the Customs Authority regarding the means for determining, for customs purposes, the value of the commodities subject to valuation.

Article (51)

The importer or his representative shall have the right to file a grievance against any decision issued by the competent customs valuation committee. Such grievance shall be first raised to the customs manager or general manager or to the head of the competent Central Directorate prior to filing the same before the grievances committees or resorting to arbitration.

Article (52)

If the value of a commodity is determined by a foreign currency, such value shall be converted into Egyptian currency. This is according to the closing rate announced by the Central Bank for foreign currencies on the last business day preceding the date of registration of the customs declaration or the rate announced by the Minister on the date of registration of the customs declaration.

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