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Amending Factory Registration Requirement for Exporting to Egypt

Resolution No. 195 of 2022

Import and export activities contribute significantly to the development of international trade worldwide, as they encourage a process of commercial circulation between importing and exporting countries, with the former receiving items it lacks in resources, in exchange for the latter exporting products that it is rich in. The overall purpose of each country is to improve their respective economies and provide a wider range of products for their population, at fair prices.

One of the many byproducts of the post-pandemic global economy has been severe delays in this vital activity, leading to an accumulation of goods at ports worldwide that cannot enter their respective countries for trading.
Resolution No. 43 of 2016 governing the registration of factories eligible to export their products to Egypt, was often viewed as a hindrance to importers since it necessitated, a decision issued by the Minister of Foreign Trade, to add or remove traders from the relevant register. This in turn caused substantial delays in procedures (such as registration and licensing), and the registration of only a small percentage of exporters, who would then monopolize their sectors, and charge the end customer a higher price for their goods.

To resolve the above, Resolution No. 195 of 2022 was recently issued amending the aforementioned decision, and removing the need to obtain approval from the Minister of Foreign Trade. Additionally, this decision specifies a clear time frame for registration on the importer’s register, which in turn has resulted in a fairer market, and a reduction in the price of goods by 10 % -15 %.

The new time frame proposed by the resolution for registration in the Exporters’ Register is a maximum of 15 days from submission of all the relevant documents and verification of their authenticity by the competent authority.
Other notable developments include the possibility to submit the registration documents through the embassies and consulates affiliated with the exporting countries, and the capability to renew the valid documents within a maximum period of 30 days from the date of their expiry.
Moreover, the Resolution has established a mechanism for complaints regarding delays or removal from the register, provided that the grievance is decided within a maximum period of 15 days from the date of its submission, and the complainant shall be notified of the reasons for rejection or removal, and the corrective measures that must be taken on his part to re-register.

To conclude this article aims to highlight the remarkable efforts made by the state to facilitate procedures for the business community, increase the flow of imports and exports, and tackle monopolistic practices, all with the purpose of obtaining higher quality products at better prices for the end customer.

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Written By

Maher Iskander - Managing Partner / Noor Mahdy - Attorney at Law

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