Permanent Undersecretary Central Department of Technical Office Affairs Translation Unit

Given Issuing the COP-27 Simplified Customs Procedures Manual by MoF, Dr. Mohamed MaaitAnnounces:

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In the context of current preparations to facilitate customs and taxes procedures for the Climate Change Conference (COP 27), the Minister of Finance Dr.Mohamed Maait issued the simplified customs procedures and Value Added Tax (VAT) refund manual. COP27 will be hosted by Egypt next November in Sharm El Sheikh with big international participation.

The Minister confirmed that the said manual was drawn up in both Arabic and English languages. It includes identification of import customs procedures under the temporary release system, cargo temporary release for exhibition and re-exports procedures and VAT refund procedures for foreign departing passengers.

The said manual was circulated, uploaded, and published on the COP27 official website, MoF website, and other related authorities’ websites. This manual includes many procedural facilitations for customs system dealers, inter alia: all import shipments coming COP27 are exempted from Advance Cargo Information (ACI) registration at all customs ports; all cargo arriving at Sharm El Sheikh International Airport will not be declared through the NAFEZA system;simplified procedures are provided to proceed with the temporary release for cameras and media equipment of foreign press and media correspondents, Dr. Maait added.

According to a statement issued by the Ministry of Finance, the Climate Change Conference (COP 27) participant delegations will enjoy taxes and customs exemptions and benefits. Passengers, upon arrival to Egypt, must declare to competent authorities theamount of foreign currency they hold, tradable financial or commercial bonds, or any other above the allowed limit other than personal use items. Non-Egyptian passengers departing Egypt are allowed to travel with the remaining amounts providing they were declared to customs at the time of arrival. Passengers are obliged not to accompany any prohibited itemsunder the law, the said statement indicated.

The Head of Customs Authority, El– ShahatGatouri, stated that exemptions from customs duties or VAT will be applied by Customs Authority. He also clarified that the Minister of Finance approved receiving letters of undertaking provided by companies(freight forwarders) to execute a release for COP27 import items and cargoes under the temporary release basis for exhibition and re-export procedures provided that the freight forwarder shall guarantee such undertakings of re-exporting these items outside the state instead of delivering letters of bank guarantee or cash guarantee. The aforementioned comes because ofmaking customs procedures much easier.

As a result, the minister also approved establishinga bonded area at Sharm El Sheikh International Airport to facilitate cargo customs procedures. All examination, inspection, and valuation processes will be carried out in the said bonded area. Coordination was handled with the competent cargo examination authorities to nominate their representatives who are authorized to give feedback and take decisions to facilitate the customs release process of consignments.A central operations room was formed at the Cairo International Airport to monitor and immediately remove any impediments to customs release, Gatouriclarified.

Head of The Egyptian Tax Authority Mokhtar Tawfik, stressed that the State departing foreign passenger who visits Egypt for a period not exceeding three months shall be entitled to refund the value of VAT he/she previously paid to the registered seller for his/her purchases of taxable goods, provided that the value of his/her purchases in one single invoice is not less than EGP one thousand and five hundred (EGP 1500). The departing passenger shall accompany his/her purchases by himself/herself or by any other means when he/she leaves the State.

In addition, the tax shall be refunded if purchasing is made from one of the shops that issue a tax invoice stating a description of the purchased goods in terms of type, number, amount, and value of VAT. In case the seller has an electronic system, the passport data shall be recorded on the invoice by the seller. Purchases are, upon departure, presented to the responsible customs official in the customs port. This is to make an inspection of the purchased goods and match them on the reply form, and approve the supporting purchase evidence (purchase invoices). Thus, the refund will promptly be made in foreign currency to the bank cards of departing passengers who deserve tax refundsinstead of depending on cash, Mr. Tawfik asserted.

A series of meetings were held with the Central Bank of Egypt, National Bank of Egypt, and BanqueMisr to discuss the proposed work cycle to facilitate VAT refund to foreign departing passengers. The said work cycle was agreed upon and a cooperation protocol was signed in this regard, Tawfik added.

A ministerial decree, issued by the Minister of Finance Dr. Mohamed Maait, to set up a committee composed of the Egyptian Tax Authority and Customs Authority senior officials to facilitate the procedures of cargo customs release and Value Added Tax (VAT) refund to Egypt’s guests at the climate summit (COP27). This committee is competent to take the necessary procedures to facilitate temporary customs release of all equipment and machines accompanying the UN secretariat, official delegations, or international media briefing delegations that will participate in the Climate summit, clarified Dr. Maait.  

This Committee undertakes the responsibility for identifying the proactive procedures to be followed for the temporary release of equipment, machines, devices, and all import items to the Climate Summit and notifying the competent authorities. The said committee is also responsible for coordination with the competent officials of the Ministry of Environment and the Ministry of Foreign Affairs to release such equipment, other items related to the United Nations Climate Conference Secretariat, items accompanying foreign correspondents who will provide media coverage, and items accompanying the delegations participating in COP27.

Moreover, coordination with the relevant ministries and authorities to define focal points to ensure smooth execution of import items to the climate summit is also one of the committee’s responsibilities. In addition, the said committee will identify any problems that may impede the cargo release or tax refund process. It will also take the necessary actions to immediately overcome any problems and propose any ideas to facilitate the customs release procedures of consignments and tax refund.

After handling coordination with the heads of taxes and customs authorities, the said committee has been granted all the necessary powers to be able to complete its functions on time. A fortnightly report will be developed by the committee on the results of its work to be reported to the Finance Minister until the end of the conference, departure of all delegations, and termination of all procedures.

Reham Tahoun         22-9-2022

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