Recommended Policy Reforms
Difficulty in compliance with some EU technical regulations and standards:
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Modernization and upgrade of the EU–Egypt Association Agreement to include other areas such as services sector and updated technical regulations.
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Continue the negotiations on EU- Egypt Sustainable Investment Facilitation Agreement (SIFA), which will greatly enhance Egypt’s transparency and good governance standing.
Distrust of the Private Sector:
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Differentiation between compliant and high-risk firms.
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Simplify documentation requirements and reduce redundant inspections.
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Strengthen public–private dialogue mechanisms.
Government Orientation: Import Restriction vs. Export Promotion:
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A fundamental policy shift — from an orientation of 'import prohibition' toward ‘export promotion’.
Incentives for green and sustainable industrial investment:
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A Green Industrial Investment Code (tax incentives for EU backed clean energy and water efficiency projects, or any investments in the highly potential sectors).
Investment procedures and licensing processes:
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A real “one stop shop”.
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Convert the one stop shop procedures into a fully digital, legally binding single system.
Problem:
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Recommended Reform Measure
Judicial processes and contract enforcement mechanisms:
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Fast track commercial and investment dispute resolution.
Ministry of Finance vs. Trade Development Misalignment:
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Institutional coordination mechanism.
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Align customs, taxation, and trade policies with Egypt’s broader industrial and export promotion strategy.
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Joint policy committees to evaluate the trade and industrial impact of fiscal measures before implementation.
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Introduce KPIs linked to export growth and trade facilitation alongside revenue targets.
Inconsistency Between Ports:
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Unified operating guidelines.
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Digitize and integrate port systems.
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Establish transparent benchmarks for processing times and service standards.
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Enhance coordination among customs authorities, port operators, and regulatory agencies.
Lack of Stakeholder Consultation:
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Institutionalize stakeholder consultation mechanisms.
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Conduct pilot testing phases with private sector participation.
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Establish permanent feedback channels.
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Increase transparency regarding policy/ measure/ regulation objectives, implementation timelines, and technical requirements.
Local Testing Infrastructure:
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Invest in certified WP29-compliant testing laboratories to enable local certification for export.
Security/NTRA Inspection:
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Assign permanent representatives at major ports; enable electronic fee payments; set firm time-frames.
NAFEZA Platform:
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Make system user-friendly; allow edits; accept photocopies; auto-fill from documents; fix field size limitations.
IDA Per-Shipment Approval:
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Streamline IDA licensing; implement Law 15/2017 for low-risk activities; expand digital capabilities of IDA staff.
Problem:
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Recommended Reform Measure
Letter of Credit / Currency:
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Cancel CBE mandatory LC decree; prioritize hard currency for intermediate goods.
CargoX Monopoly:
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Allow alternative digital corridor services for foreign suppliers; reduce per-transaction cost.
Risk Management:
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Implement risk-based customs clearance (green/yellow/red tracks) from new Customs Law.
Full Digitization (4IR):
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Deploy AI, machine learning, and big data for end-to-end automated, intelligent trade process.
Stakeholder Consultation:
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Institutionalize regular private sector consultation in trade policy design and system updates.
Market Controls:
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Strengthen internal market surveillance to combat counterfeit and mis-declared automotive parts.
Requiring physical movement of samples and documents between ports and Cairo:
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Implement fully electronic approval mechanisms.
Lack of transparency regarding procedures, fees, required documents, and processing timelines:
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Publish updated procedural guidelines, fees, and service standards on official digital platforms.
Multiple and uncoordinated pre-import registration requirements across GOEIC, IDA, GAFI, and Customs, requiring repeated submission of the same documents:
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A unified registration system.
Problem:
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Recommended Reform Measure
Industrial licensing delays at IDA:
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Accelerate the implementation of Law 15/2017.
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Establish expedited approval mechanisms for industrial projects.
Mandatory sample testing and security approvals for chemical products (10 days on average):
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Establish accredited laboratories at major ports.
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Digitize the transmission of test results.
Redundant approvals from multiple authorities, including separate approvals from the General Security Authority and the Civil Defense Authority:
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Consolidate overlapping approvals into a single integrated clearance process.
Delays and bottlenecks in customs classification disputes (15–20 days or longer to resolve due to centralized decision-making by the Chemistry Administration:
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Decentralize classification decisions.
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Introduce time-bound dispute-resolution procedures.
Heavy congestion at certain ports (particularly Ain Sokhna) resulting in inspection and clearance delays:
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Expand inspection capacity.
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Invest in infrastructure upgrades.
