Legal frame – Import and export in Egypt

In recent years, the Egyptian government has always sought to regularize and govern activities of Import and export to the highest extent, this is due to the fact that the said activities are playing a pivotal role in the Egyptian economic scheme.

Whereby, importation and exportation activities are deemed vital activities that might attract incoming investors to invest in the Arab Republic of Egypt, consequently increasing its gross domestic product.

As a matter of law, the Egyptian legislator sets out some terms and conditions in connection with practicing the importation and exportation activities, additionally, the Egyptian Organization for Export and Import Control (G.O.E.I.C) has the exclusive jurisdiction to issue, write off and/or renew the importation and exportation licenses as permitted by law.

It is well established that it is prohibited to practice the activities of importation and/or exportation in Egypt, unless after being duly registered in the concerned registers in the G.O.E.I.C, namely, the importers’ register and the exporters’ register.

Additionally, the applicant is required to strictly abide by all terms and considerations concerning the registration in the Importers’ or Exporters’ Register.

Applicable Egyptian Laws to Import and Export

In an effort to regulate the activity of importation in the Arab Republic of Egypt, the Egyptian government has promogulated law No. 7 of 2017(the “New Law”) regarding the amendment of law No. 121 of 1982 (the “Old Law”) in relation to the Importers Register.

Moreover, the New Law has been issued on March 5th,2017, published in the official gazette, and entered into force as of the day following its publication.

It is worth mentioning that the New Law has amended numerous focal points to ease some obstacles arising out of the Old Law, as well as the registration in the Importers’ Register entails a set of requirements and terms, which should be fulfilled to the utmost extent possible.

Requirements for registration in the Importers’ Register

On the legal front, the following requirements and terms shall be fulfilled entirely prior to applying to the Importers’ Register for the following entities as follows:

• Individual Entities (IE).
• Limited Liability Companies (LLC).
• Joint Stock Companies (JSC).

In consideration of the registration in the aforementioned register, the minimum paid-up capital of either IE or LLC shall not be less than an EGP 2,000,000 or its equivalent in a foreign currency, in return, the minimum paid-up capital of JSC shall be not less than and EGP 5,000,000 or it’s equivalent in a foreign currency, additionally, such amounts shall be explicitly stated in the commercial register (CR), in the same vein, the importation purpose shall be expressly duly stated in the CR.

Most importantly, the Egyptian shareholding structure shall not be less than 51% of the company’s capital, regardless of the legal form of the applicant company.

Furthermore, one of the vital requirements in this respect is that the manager in charge of the importation shall be an Egyptian national and the latter shall be of sound reputation.

In addition to the foregoing requirements and terms, the applicant company shall abide by depositing the determined insurance amount in the manner set forth in the New Law, whereby, the Insurance Amount is prescribed in the amount of EGP 200,000 and such an amount may be paid through the following means as follows:

• It may be paid in cash.
• A letter issued by a licensed bank in Egypt evidencing the deposit of the abovementioned amount.
• Unconditional and irrevocable letter of guarantee directed to the G.O.E.I.C.

Last but not least, the registration shall not be taken place, unless the lapse of one calendar year as of the entity’s registration in the commercial registry office prior to the registration process.

Moreover, the registration documentation shall be supported by a tax return in the amount of EGP 5,000,000 at least.

Requirements for registration in the Exporters’ Register

On the other side, the requirements and terms that shall be fulfilled entirely before applying to the Exporters’ Register for either an individual entity or any other form of a company are as follows:

Initially, for the sake of registering an individual entity in the Exporters’ Register, the minimum paid-up capital shall not be less than EGP 10,000 or its equivalent in a foreign currency in the case of productive projects and EGP 25,000 for other projects.

These amounts, in addition to the exportation purpose, shall be explicitly stated in the CR of the company.

In return, for the purpose of registering any other legal forms of companies, the minimum paid-up capital shall not be less than EGP 20,000 or its equivalent in a foreign currency in the case of productive projects and EGP 50,000 for other projects.

Eventually, the term of the importation and/or exportation license(s) shall be issued for five renewable years.

Law firm role in Import and Export

Our experienced lawyers will also assist with customs classification and economic rules. We are specialized in international trade lawyers who will also assist in obtaining the appropriate license from the Egyptian Export Development Authority.