information on IMPLEMENTATION and
administration
of the agreement on customs valuation
Check-list
of Issues
Egypt
The following communication, dated 17 February 2025, is being
circulated at the request of the delegation of Egypt.
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1._
Questions concerning Article 1:
(a)_
Sales between related persons:
(i)_
Are sales between related persons subject
to special provisions?
Sales between related persons are subject to article 35 and 36 of the
Customs Executive Regulation issued by the Minister of Finance's Decree No. 430
for year 2021.
(ii)_
Is the fact of intercompany prices prima
facie considered as grounds for regarding the respective prices as being
influenced?
According to Article 36 of the Minister of
Finance's Decree no. 430 for year 2021, the competent 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 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.
(iii)_
What is the provision for giving the
communication of the afore-mentioned grounds in writing if the importer so
requests? (Article 1.2(a))
According to Article 36 of the Minister of
Finance's Decree no. 430 for year 2021, 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.
(iv)_
How has Article 1.2(b) been implemented?
Article 1.2(b) has been implemented by means
of Article 36 of the Minister of Finance's Decree no. 430 for year 2021.
(b)_
Price of lost or damaged goods:
Are there any special provisions or
practical arrangements concerning the valuation of lost or damaged goods?
Although,
there are no provisions in the WTO Customs Valuation Agreement pertinent to
this subject, the Egyptian Customs treats goods replacing the previously
imported lost or damaged goods by means of article 20 (clause 5) of the Customs
Law no. 207 for the year 2020 and article 76 of the Minister of Finance's
Decree no. 430 for year 2021. This article stipulates the following:
a)_
The consignment
shall be brought by the original (main) importer whose name is stated in the
customs declaration where the original consignment is described; the customs
taxes have been paid for the original consignment; and the customs declaration
shall be accompanied by an invoice stating that the invoiced objects are a mere
replacement for damaged or missing parts related to a consignment previously
exported or refused to be accepted.
b)_
The consignment
shall be brought by the same importer, shall be at no price, and shall arrive
within one year from the arrival date of the original consignment. However, the
said period could be extended for other periods not exceeding one year, and
such extension shall be granted for serious reasons that are acceptable to the
Minister or his delegate.
c)_
The type of
incoming goods (in replacement of damaged or missing goods) shall be matched
with and reviewed based on the customs declaration documents that describe the
original consignment as regards (mark, origin and quantity). Moreover, the
customs taxes paid for the damaged or missing parts shall be identified. If the
original consignment is destroyed, the in-rem condition shall be verified based
on the goods destruction minutes' data. In all cases, it is required to confirm
that the customs taxes or other taxes or duties, which have previously been
recovered due to re-exporting or destroying the original consignment, will not
be refunded.
d)_
The competent
customs department shall verify and confirm that the original consignment has
been re-exported or destroyed under the supervision of the Customs Authority
and prior to applying the exemption prescribed for the replacement for damaged
goods. Re-exportation could take effect within a period not exceeding three
months from the date of the customs release of the incoming consignment (i.e.,
the replacement for damaged or previously rejected consignment). This is for
serious reasons that are acceptable to the general manager of the competent
customs department and after submission of one of the prescribed customs
guarantees for the outcome of the taxes and duties subject to exemption.
e)_
Exemption shall
be within the limits of the tax paid.
2._
How has the provision of Article 4 to allow
the importer an opinion to reverse the order of application of Articles 5 and 6
been implemented?
The implementation of the provision allowing
the importer an option to reverse the order of application of Article 5 and 6
has been done under the provisions of Article 41 of the Minister of Finance's
Decree no.430 for year 2021.
3._
How has Article 5.2 been implemented?
Article 5.2 has been implemented by means of
Article 42(b) of the Minister of Finance's Decree no. 430 for year 2021.
4._
How has Article 6.2 been implemented?
No specific provision has been made regarding
the implementation of this article. However, it is a generally understood
concept under the provisions of the Egyptian constitution that all of the
elements of the customs valuation agreement, having been ratified by the
Peoples' Assembly in 1995 and the relevant Presidential Decree no. 72 for year
1995 published in the Official Gazette in 15/6/1995, are considered part of the
national laws.
In addition, Article 43 (the last paragraph)
of the Minister of Finance's Decree no. 430 for year 2021 stipulates the
following:
"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."
5._
Questions concerning Article 7:
(a)_
What provisions have been made for making
value determinations pursuant to Article 7?
The
provisions that have been made for making value determinations pursuant to
Article 7 are Articles 44 and 45 of the Minister of Finance's Decree no. 430
for year 2021.
(b)_
What is the provision for informing the
importer of the customs value determined under Article 7?
The provision
for informing the importer of the customs value determined under Article 7 is
Article 44 of the Minister of Finance's Decree no. 430 for year 2021.
(c)_
Are the prohibitions found in Article 7.2
delineated?
Yes,
they are under Article 45 of the Ministerial Decision no. 430 for year 2021.
6._
How have the options found in Article 8.2
been handled? In the case of f.o.b. application, are ex-factory prices also
accepted?
Options
found in Article 8.2 have been handled by means of Article 31 of the
Ministerial Decision no. 430 for year 2021. This case is not applicable because
Egypt doesn't use the F.O.B.
7._
Where is the rate of exchange published, as
required by Article 9.1?
The
rate of exchange is published in the national gazette as per the Central Bank
closing rate of exchange of the respective foreign currency on the last working
day prior to the date of registration of the Customs declaration, and this is
according to Article 16 of Law No. 207 for the year 2020 issuing the Customs
Law and Article 52 of the Minister of Finance's Decree no. 430 for year 2021.
8._
What steps have been taken to ensure
confidentiality, as required by Article 10?
The
protection of confidential information as required by Article 10, is conferred
upon by Article 49 of the Minister of Finance's Decree no. 430 for year 2021.
9._
Questions Concerning Article 11:
(a)_
What rights of appeal are open to the
importer or any other person?
The
right of appeal (grievance) are open to the importer or his representative
according to Article 51 of the Minister of Finance's Decree no. 430 for year
2021 and Article 63 and 64 of Law No. 207 for the year 2020, against any
decision issued by the competent Customs valuation committee to the customs
manager or general manager or head of competent central directorate, prior to filing
the same before the grievances committees or resorting to arbitration.
(b)_
How is he to be informed of his right to
further appeal?
The right of
appeal is to be informed to the importer according to Article 51 of the
Minister of Finance's Decree no. 430 for year 2021, and Articles 63 and 64 of
Law No. 207 for the year 2020.
10._
Provide information on the publication, as
required by Article 12, of:
(a)
(i)_
The relevant national laws;
They are published in the
Official Gazette and the Egyptian Customs website (www.customs.gov.eg).
(ii)_
The regulations concerning the application
of the Agreement;
They are
published in the Official Gazette and the Egyptian Customs website (www.customs.gov.eg).
(iii)_
The judicial decision and administrative
rulings of general application relating to the Agreement;
The judicial decisions and
administrative rulings are not generally published.
(iv)_
General or specific laws being referred to
in the rules of implementation or application.
See above.
(b)_
Is the publication of further rules
anticipated? Which topics would they cover?
No, at the
moment they are not anticipated.
11._
Questions concerning Article 13:
(a)_
How is the obligation of Article
13 (last sentence) being dealt with in the respective legislation?
The obligation of Article 13 (last sentence)
is being dealt with by Article 48 of the Minister of Finance's Decree no. 430
for year 2021.
(b)_
How is the obligation of Article
13 (last sentence) being dealt with in the respective legislation?
No, there are no additional explanations.
12._
Questions concerning Article 16:
(a)_
Does the respective national legislation contain a
provision requiring customs authorities to give an explanation in writing as to
how the customs value was determined?
Yes, a
provision requiring customs authorities to give an explanation in writing as to
how the customs value as determined is stated in Article 50 of the Minister of
Finance's Decree no. 430 for year 2021which reconfirms the right of the
importer to be informed in writing.
(b) Are
there any further regulations concerning an above-mentioned request?
No, there are no further regulations concerning the above-mentioned
request.
13._
How have the Interpretative Notes of the
Agreement been included?
No specific
provision has been made regarding the implementation of this article. However,
it is a generally understood concept under the provisions of the Egyptian
constitution that all of the elements of the customs valuation agreement,
having been ratified by the Peoples' Assembly in 1995 and the relevant
Presidential Decree no. 72 for year 1995 published in the Official Gazette in
15/6/1995, are considered part of the national laws.
14._
How have the provisions of the Decision on
the Treatment of Interest Charges in the Customs Value of Imported Goods been
implemented?
The provisions of the Decisions on the Treatment of Interest Charges in
the Customs Value of Imported Goods have been dealt with in Article 33 (h) of
the Minister of Finance's Decree no. 430 for year 2021.
15._
For those countries applying paragraph 2 of
the Decision on the Valuation of Carrier Media Bearing Software for Data
Processing Equipment, how have the provisions of this paragraph been
implemented?
The decision is not reflected in
the Egyptian regulations and laws, as Egypt does not apply paragraph 2 of the
said Decision.
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