This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 CAIRO 009546 
 
SIPDIS 
 
PLEASE PASS USTR FOR SAUMS 
COMMERCE PASS TO ITA/MAC/AMESA/TSAMS/MTALAAT 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EG WTRO
SUBJECT: EGYPT'S NEW IMPORT-EXPORT REGULATIONS 
 
¶1.  (U) The Egyptian Ministry of Foreign Trade and Industry 
(MOFTI) recently implemented new, more transparent and 
liberalized import/export regulations to facilitate trade and 
further integrate Egypt into the global economy.  These 
regulations were developed with the private sector to give 
industry and consumers quicker and easier access to traded 
goods, while simplifying the process of exporting Egyptian 
goods. 
 
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Changes in the Regulations 
-------------------------- 
 
¶2. (U) Key reforms in the new regulations include: 
 
-- Reduction in the number of imported goods subject to 
inspection by the General Organization for Export and Import 
Control (GOEIC); 
 
-- Acceptance of importer-provided certificates of conformity 
from any internationally accredited laboratory inside or 
outside of Egypt for those goods still subject to inspection 
by the GOEIC; 
 
-- Exclusion from inspection of imported goods manufactured 
in accordance with internationally recognized quality marks; 
 
-- Elimination of the requirement in the import-export 
regulations that perishable products have at least one-half 
of their shelf life remaining at the time of import; 
(Comment:  For this change to take effect, a particular shelf 
life standard must also be amended by the Egyptian Office of 
Standards.  This standard is being amended and the process is 
expected to be complete in the near future.  End comment.); 
 
-- Elimination of the registration requirement for garment 
imports; 
 
-- Introduction of a mechanism for enforcing intellectual 
property rights at the border as a way to increase Egypt's 
compliance with WTO TRIPS requirements; 
 
-- Extension of the preferential inspection treatment given 
to inputs for manufacturing to inputs in the service industry. 
 
¶3. (U) Additional reforms include: 
 
-- The transfer of responsibility for issuing and reviewing 
certificates of origin from GOEIC to the Egyptian Customs 
Administration; 
 
-- Clarifying previously vague rules for registering as an 
exporter, which were often abused by companies wanting to 
take advantage of the incentives provide to exporters without 
actually engaging in export activity.  Under the new rules, a 
potential exporter has to obtain an export license and is 
required to provide proof of its export activity; 
 
-- Requiring bar codes for all imports; 
 
-- Increasing the value of goods that can be imported as 
samples; 
 
-- Explicitly listing chemicals that cannot be imported into 
Egypt, thus clarifying a previously ambiguous procedure. 
 
------------------------ 
Further Efforts Required 
------------------------ 
 
¶4.  (U) Having issued the new regulations, the MOFTI is now 
seeking to further improve Egypt's trade and business 
environment through a three-pronged process: 
 
-- First, the Ministry is taking additional measures to 
ensure that the new regulations are implemented effectively. 
This will include issuing a number of implementing decrees, 
particularly in the areas of IPR border control, recognition 
of international conformity assessment reports and quality 
marks, and traceability of food and agricultural products. 
MOFTI will also be providing training to its staff and a 
public awareness campaign on the new provisions; 
 
-- Second, the Ministry is seeking to address concerns that 
have been expressed by the private sector over unnecessary 
restraints on business activity.  A particular focus will be 
to improve government quality control systems, and to make 
registering, financing, and operating small businesses much 
easier; 
 
-- Third, the Ministry will also be working with other 
ministries and organizations to address remaining trade and 
industrial policy concerns.  This is particularly important 
for sanitary and phytosanitary standards and inspection of 
food products to ensure WTO-compliance and prevent duplicate 
inspection, especially with the Ministries of Health and 
Agriculture. 
 
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Comment 
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¶5.  (U) According to the "Trading Across Borders" section of 
the World Bank's 2005 Doing Business Report, Egypt fares 
slightly better than its regional peers with regard to export 
and import transactions, but still falls considerably below 
others in OECD performance ratings.  Although faced with the 
challenges of certain entrenched bureaucratic interests that 
do not welcome further liberalization, Minister of Foreign 
Trade and Industry Rachid continues to profess his intention 
to move ahead.  Rachid says he will continue working to 
create opportunities for competition in the Egyptian economy 
through the lowering of barriers. 
 
JONES