Circular No. 10 of 2017 Regarding Procedures at Non-Mechanized Customs Sites and Stopping Parallel Issuance of Form 4

Cairo, August 30, 2017

Dear Chairman of the Board,

Bank Tahya Egypt,

With reference to our letter dated June 5, 2017, regarding the necessity for banks to ensure that the value of imports exceeding USD 50,000 is paid in foreign currency through available payment methods, and the content of the letter from the Customs Affairs Department regarding the transition of financing form number 4 from paper to electronic format, and thus completely stopping the issuance of paper forms, as well as your response dated July 2, 2017, committing banks to issuing financing form number 4 electronically from the date of implementation of Article 3 of Minister of Trade and Industry Decision No. 835 of 2017 dated May 30, 2017.

In light of the approaching deadline for implementation by the end of August 2017, please be advised to stop the parallel issuance of the form in both its paper and electronic versions and rely solely on issuing the electronic form and delivering a printed copy stamped with the bank's seal to the client, starting from September 5, 2017, on the day after the Eid holiday.

And in light of the documents attached to your letter, please follow the instructions issued by the Customs Affairs Department No. 10 of 2017 regarding procedures at non-mechanized customs sites or sites facing linkage problems with the Customs Affairs Information Network, and for addition.

And from Nadia Fakhry, please note that in the event of the existence of errors regarding the new electronic system, the following should be followed:

1. In the event of errors concerning data of parties dealing with Customs Affairs, they can be addressed via the following numbers:

   • Central Administration for Commercial Community Affairs - Alexandria - 034810230
   • General Administration for Serving Parties - Cairo - 4 - Aviation Street - 0224024459.

2. In the event of technical errors, coordination will be done with the banks' IT departments on line .19293.

Please be advised to take the necessary steps to comply with the above.

Accept our highest respect and appreciation,

Gamal Naguib

Customs Affairs - Systems and Procedures Sector - Central Administration for Customs Policies and Procedures Circular No. 10 of 2017

After reviewing:

• The Customs Law No. 16 of 1963 and its amendments and executive regulations.
• The International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention).
• The Import and Export Law No. 118 of 1975 and its executive regulations issued by Ministerial Decision No. 770 of 1975 and their amendments.
• The Importers Register Law No. 1020 of 1986 and its amendments.
• Minister of Trade and Industry Decision No. 835 of 2017 amending some provisions of Import Resolution No. 1005/1975.
• Import Circular No. 16 and Export Circular No. 9 of 2017 announced by Minister of Trade and Industry Decision No. 835 of 2017.

And until border ports and crossings finalize their status and implement linkage with the Customs Affairs Information Network or resolve linkage problems and unify customs procedures at non-mechanized customs sites or sites facing linkage problems, the following shall apply:

1. In the event of goods arriving at a non-mechanized customs site or a site facing linkage problems with the Customs Affairs Information Network, the concerned parties are obliged to proceed to register the import customs declaration for the purpose of production or trade at the nearest customs site automated with the Customs Affairs Information Network under the coordinated release system, and it shall be recorded in a separate ledger.

2. The registration customs officer shall link the customs declaration with the electronic import financing form, verify documents and import rules, and collect due taxes and fees according to documents (settlement sheet) and print the customs declaration (SAD):

   • And the concerned party or his representative shall be given a copy of the release declaration and a copy of the presentation points attached with a true copy of (declaration documents) invoices, packing list, and waybill with recording the electronic import financing form number, to proceed to the arrival site to complete procedures and the release process.

3. The release customs officer shall carry out necessary adjustments, collect them, verify documents and import rules, and supervisory bodies for actual inspection and examination and settle the debt with the customs declaration number (24 K.M) and voucher number and date.

4. The release customs officer shall, after completing the release process, notify the Central Administration concerned with the registration customs officer of documents (inspection, examination, supervisory bodies, and release documents) to settle its entries and carry out necessary automatic adjustments, if any.

5. An import customs declaration for the local market for trade or production shall not be registered from general or private free zones that are not mechanized and not linked to the Customs Affairs Information Network. The customs declaration shall be registered at the nearest mechanized site until its status is regularized in accordance with Article 3 of Minister of Trade and Industry Decision No. 835 of 2017.

6. The customs declaration shall not be registered at the Customs Affairs Information Network to regularize its status within three months in accordance with Article 4 of Minister of Trade and Industry Decision No. 835 of 2017 as a grace period, and the customs declaration shall be registered at the nearest mechanized site.

7. All administrative sites are obliged to implement these instructions and work to execute them. Any violation shall be referred for legal prosecution.

Issued on: 2017/8/20

General Manager of the General Administration Central Administration for Customs Policies and Procedures

Mr. Hassan El-Baladi Deputy General Manager