The Egyptian Customs Authority
The Egyptian Customs Authority is a vital division of the Egyptian Ministry of Finance, responsible for regulating the flow of goods into and out of the country. Its primary functions include collecting tariffs, taxes, and fees associated with imports and exports, as well as ensuring compliance with national and international trade regulations.
Main Responsibilities
The Egyptian Customs Authority has several key responsibilities:
- Collection of Fees and Tariffs: The authority oversees the collection of all applicable fees, tariffs, import and export taxes, and other levies imposed on exporters and importers as per relevant laws and tariff regulations.
- Prevention of Tax Evasion: It plays a crucial role in safeguarding public finances by preventing tax evasion and ensuring that all due fees are collected.
- Monitoring Raw Materials: The authority tracks the status of raw materials in customs-free zones, particularly in warehouses located at airports and seaports.
- Inventory Oversight: It supervises the flow of inventories in both public and private facilities authorized to hold imported goods, ensuring compliance with regulations.
- Adherence to Policies: The Customs Authority ensures that all operations conform to the policies, procedures, and standards set forth by Egyptian ministries and other governmental entities.
- Combating Smuggling: It is actively engaged in fighting smuggling operations, whether they occur domestically or across borders, through land, sea, or air channels.
Modernization Efforts
The Egyptian Customs Authority is continuously working to improve its operations. It has adopted state-of-the-art methods, such as pre-release protocols and risk management strategies, across various sectors to enhance efficiency.
NAFEZA
To streamline and optimize trade operations, the NAFEZA system was established as part of the Egyptian Customs Authority's modernization efforts.
Purpose and Functionality
NAFEZA serves as a National Single Window for Trade, allowing trade and transport partners to submit all required data and documentation for commodity import, export, and transit at a single point of entry. This system ensures that data is only exchanged digitally once for each piece of information, simplifying the process significantly.
This digital approach has gained international recognition and approval from numerous global trade organizations, including:
The World Customs Organization (WCO)
The Center for Trade and E-Business Facilitation
The United Nations Economic Commission for Europe (UNECE)
NAFEZA aims to create an integrated data platform that coordinates and streamlines data and procedures among Egyptian entities involved in foreign trade. Through an electronic portal or logistics services center, businesses can submit all customs, control, and port transactions simultaneously, fulfilling all regulatory obligations related to international trade.
The NAFEZA platform enhances the speed of product release processes by adhering to global standards and norms, facilitating Egypt's integration into a unified logistics center.
Key Components of NAFEZA
The NAFEZA system is built upon two fundamental axes:
Re-engineering Methods: Implementing innovative methods to improve operational efficiency.
System Component Development: This includes the development of a digital platform, logistics applications, and integration techniques to ensure that relevant authorities have access to a comprehensive data warehouse.
Advance Cargo Information (ACI) Pre-registration System
The Advance Cargo Information (ACI) system was implemented to further streamline the import process:
Marine Imports: The pre-registration system for all marine imports became effective on October 1, 2021.
Air Shipments: The ACI for air shipments was activated on May 15, 2022, with implementation for air freight commencing on October 1, 2022.
Postal Packages: The ACI system also covers postal parcels weighing up to 50 kg and valued at a maximum of 2,000 USD.
Import Procedures Under the New System
To import goods under the new ACI system, the following steps must be followed:
Account Creation: Importers must create an account on the NAFEZA platform to receive an electronic signature and pre-register shipment data to obtain an Advance Cargo Information Declaration (ACID) number.
Document Submission: Importers must digitally submit all necessary documentation and product details through the NAFEZA portal.
ACID Validity: The first ACID issued for a customs entry is valid for six months and is assigned to each shipment separately.
Role of Customs Brokers: Customs brokers can request an ACID number and proceed with processes based on the owner's electronic authorization.
HS CODE and Item Data: Importers must clarify the HS CODE for item data and select the appropriate part numbers according to the type of item being imported.
HBL and MBL: Each House Bill of Lading (HBL) is assigned a unique ACID number, and the Master Bill of Lading (MBL) must also reference this ACID.
Document Submission: Importers are required to digitally sign and submit all necessary documentation for customs registration via the electronic portal.
Multiple Subaccounts: If a corporation has multiple sub-accounts, each importer may provide various electronic signatures for the company.
Exporter Registration on CARGO X: The exporter's registration number on CARGO X serves as the tax or commercial registration number for single exports.
Invoice Submission: Both the invoice document (PDF) and its structural data (Excel) must be submitted digitally to the CARGO X Blockchain platform.
Electronic Envelopes: Each invoice, if multiple, is sent in a unique electronic envelope containing distinct documents and structural data. Any updates or new files must be sent in a fresh electronic envelope using the same ACID number.
Manifest and MBL Requirements: Carriers are required to include the ACID number on both the manifest and the MBL.
Required Documents for Creating an ACI File
To create an ACI file, the following documents are necessary:
Commercial Invoice
Packing List
Bill of Lading
Certificate of Origin
Shipper CARGO X Details
Additional documents as needed, to be uploaded after obtaining the ACID.
CARGO X Blockchain System
CARGO X is a blockchain platform designed to facilitate the secure transfer of ownership of documents, such as title deeds and other essential paperwork.
Key Features
Public Blockchain: The CARGO X system operates on a public and impartial blockchain, ensuring data privacy and security. It maintains an audit trail of operations that can only be accessed by participating parties.
Document Transfer Gateway: The Advance Cargo Information System's document transfer gateway utilizes CARGO X to enhance the security and efficiency of data exchange in international trade.
Steps for Exporters to Use CARGO X
Exporters to Egypt must follow these steps to use the CARGO X platform:
Registration: Exporters need to register on the CARGO X platform at Cargox. digital.
Account Verification: After selecting the CARGO X account, exporters must click on "GET VERIFIED."
Payment Selection: Exporters will select the payment package for their shipment.
Invoice Payment: An invoice from CARGO X will be sent to the exporter for payment.
Bank Transfer: Exporters must complete the payment via bank transfer to the CARGO X platform.
ID and Registration Information: After account verification, exporters must provide their ID number and registration number to the importer.
Contact Information: Exporters should supply their complete contact details (name, national ID number, phone number, and email) to the importer for registration purposes.
Obtaining ACID: The importer will provide the exporter with an ACID number from NAFEZA.
Documentation: Exporters must include the ACID number and other necessary data on all shipment documents (B/L, packing list, invoice, and certificate of origin).
Data Upload: Exporters are required to upload the structural data from the invoice to CARGO X (Excel sheet) and scan the original documents as PDF files.
Original Documents: Exporters must provide the importer with the original documents.
Understanding Electronic Signatures
An electronic signature is a digital mechanism that links identifiable data to the document signer, ensuring the integrity and authenticity of the signed document.
Benefits of Electronic Signatures
Proof of Identity: Electronic signatures provide indisputable proof of the signer's identity.
Encryption: The method employs encryption to safeguard the information in documents from unauthorized modifications during transactions.
Access Control: Only authorized individuals can access and sign digitally signed documents.
Activating the Electronic Signature Service in NAFEZA
To activate the electronic signature service within the NAFEZA system, follow these steps:
Request a Certificate: Contact an authorized provider to request an electronic signature certificate (e-Token).
Purchase the e-Token: Acquire the e-Token or electronic signature device from the provider.
Access the NAFEZA System: Connect the e-Token to your computer and access the NAFEZA system.
Sign Documents: Click the “Sign Document” button on the interface to digitally sign required documents.