A republican decision to modify the customs tariff

09/18/2020 Egypt

[ad_1]

Subscribe to receive the most important news

President Abdel Fattah El-Sisi issued Resolution No. 549 of 2020 that modifies some categories of the customs duty.

The first article of the decree published in the Official Gazette establishes that the text of the fourth paragraph of article 5 of the aforementioned Presidential Decree No. 419 of 2018 will be replaced by the following text: A customs tax of 2% of the value or the tax of prescribed entry, whichever is less, on imports of equipment for the supply of electricity or natural gas to vehicles, components for the conversion of vehicles to operate solely on electricity or natural gas, environmental monitoring equipment and its spare parts, new and renewable energy equipment and components “wind energy – solar energy” and their spare parts, according to the terms and conditions dictated by Decision of the Minister of Finance.

The second article establishes that the text of subsection “b” contained in article 6 of the aforementioned Presidential Decree No. 419 of 2018 will be replaced by the following text:
(B) If the percentage of local manufacturing reaches 10% or more, imported foreign parts are subject to the kind of import tax decided on the finished product after reducing it by the rates indicated in the following table and up to a maximum of 90%, or the import tax is levied on its own articles, whichever is less, for each Party of them separately, when the percentage of local manufacture reaches 60%, and these percentages may be reduced to 40% by decision of the Minister of Commerce and Industry.

The percentage of local manufacturing is calculated on the basis of the percentage of the contribution of the assembly line, which is determined by decision of the Minister of Commerce and Industry for each assembly industry separately, in addition to the percentage of parts manufactured locally over the total of pieces of the finished product, as determined by the Industrial Development Authority in light of the license issued to establish the project.