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Viewing cable 08CAIRO2589, Four Egyptian Companies suspended for Violating QIZ

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Reference ID Created Released Classification Origin
08CAIRO2589 2008-12-31 10:06 2011-08-24 16:30 UNCLASSIFIED Embassy Cairo 
VZCZCXYZ0003
RR RUEHWEB

DE RUEHEG #2589 3661006
ZNR UUUUU ZZH
R 311006Z DEC 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 1256
INFO RUCPDOC/USDOC WASHDC 0439
 
UNCLAS CAIRO 002589 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ETRD ECON IS EG
SUBJECT: Four Egyptian Companies suspended for Violating QIZ 
Regulations 
 
1.  Four Egyptian companies were suspended earlier this month by the 
Joint Egyptian Q Israeli committee for a period of thee months for 
violating Qualifying Industrial Zones regulations.   Ali Awni, QIZ 
unit chief, stated that three companies, Misr Company for Industrial 
and Textile Investments, International Textile House of Egypt, and 
Egyptian Company for Dyeing and Finishing (Azghaltex), did not meet 
the 10.5 percent Israeli content requirement.  The fourth company, 
El Nenaiea Company for Industries and Trading, did not present its 
exports documents for review by the QIZ unit. 
 
2.  Under the rules, companies found to be in violation of the rules 
are suspended for three months for the first violation, six and 
twelve months for the second and third violations respectively. 
Egypt and Israel signed the QIZ agreement in December 2004 to take 
advantage of the U.S. government Qualifying Industrial Zone program; 
the U.S. waives duties on imports from Egypt containing 10.5 percent 
Israeli content.  A total of 733 Egyptian companies are currently 
registered to export under the program. 
Scobey