Regulatory Alerts2016-02-22
Added · Updated
Circular dated February 22, 2016 regarding adding some exceptions to the import operations instructions
The Central Bank of Egypt amends import operation instructions to restrict documentary collections to direct bank-to-bank channels, granting banks a one-month grace period from December 21, 2015, while exempting branches of foreign companies, live animals, air freight of raw materials and spare parts, all air freight goods, and computer software and hardware. Additionally, the requirement for 100% cash insurance is waived for basic goods and products, including essential food items, production equipment, medical supplies, and pharmaceuticals.
Cairo on: 22 February 2016
Dear Sir, Chairman of the Board of Directors, Bank
Greetings,
Further to the letter from the Governor of the Central Bank of Egypt dated December 21, 2015, regarding the amended import operations controls, as modified by the circular dated January 27, 2016, and based on inquiries from banks and ongoing discussions with concerned parties, I would like to inform you as follows:
The first item included in the aforementioned instructions is amended to read as follows:
For import operations conducted via documentary collections, the execution of such operations through incoming documentary collections directly to banks via foreign banks is limited, and incoming documentary collections directly to customers are not accepted. Banks are granted a period of one month from the date of December 21, 2015, to implement this, taking into account that the following import operations are exempted from the above:
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Branches or subsidiaries of foreign companies.
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Live birds and animals.
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Raw materials, production supplies, and spare parts for factories via air freight.
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All goods and products via air freight (new item).
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Software, applications, and computer devices and their accessories (new item).
Regarding the second item concerning import operations conducted via non-secured documentary collections, basic goods and products are exempted from the requirement of 100% cash insurance, which includes:
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Essential food and supply goods, including powdered milk and infant milk.
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Machinery, production equipment, and spare parts.
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Intermediate goods, production supplies, and raw materials, including medical devices, equipment, and supplies, software, applications, and computer devices and their accessories.
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Medicines, vaccines, and their special chemicals.
Please be so kind as to alert your staff to take the necessary action to implement the above.
Accept my highest regards and appreciation,
Gamal Naguib