Circular dated May 3, 2018 regarding some procedures to facilitate import operations

Cairo: May 3, 2018

Dear Mr. Chairman of the Board of Directors Bank

Greetings,

With reference to the letter from the Governor of the Central Bank of Egypt dated December 21, 2015, regarding the controls on import operations and its subsequent circulars, I would like to inform you that in order to facilitate import procedures, the following has been decided:

First:
Cancellation of the instructions contained in item (1) of the aforementioned circular, which stipulated that "Import operations carried out on the strength of collection documents received directly by banks through banks abroad are limited to...". Instead, it is permitted to carry them out through the receipt of collection documents directly by customers for all imported goods.

Second:
With respect to the definition issued on: March 5, 2017, and its subsequent instructions and directives, regarding micro, small, and medium-sized companies and establishments (according to the definition) operating in the field of importing basic foodstuffs only, the cash insurance on import operations for trade purposes that are opened to finance the import of goods on behalf of commercial companies or on behalf of government entities is cancelled, as well as in the case of enhancing customs clearances submitted on the strength of supplier facilities for these goods on behalf of those entities, or to meet any obligations on the Bank, including issuing guarantee letters

Third:
Regarding import operations on behalf of traders and government entities, the ratio applied is currently replaced with 10%, taking into account the credit study conducted by each bank.

Please be so kind as to alert regarding taking the necessary action to work in accordance with the above.

Accept my highest respect and appreciation

Gamal Najm