Throughout history, Egypt has always enjoyed a privileged geographical position that made it a major player in Middle Eastern politics and economics. Facing both the Mediterranean Sea and the Red Sea, Egypt is uniquely placed to enjoy a network of business connections with both Europe and the Middle East, though the political unrest it has experienced in recent years has been a significant setback to the nation’s wealth and its relations with nearby countries.
The EU is Egypt’s main business partner, with Italy enjoying a leading position both as a destination of Egyptian exports and as a supplier. As of 2013, Italy ranked first among Egypt’s most frequent client countries and sixth among its suppliers. Overall, export shipments from Italy to Egypt far exceed import, with the main imported products being oil and raw materials ranging from metals to natural fibers, and the most prominent exports consisting of refined oil products and machinery.
Although major rating agencies consider investing in Egypt a high-risk choice and opening a business on Egyptian soil may prove a complex endeavor due to the many bureaucratic steps to complete, this data is evidence of a long-standing business connection that may have suffered from recent historical events, but still offers a number of opportunities.
If you intend to ship cargo to Egypt, however, there are rules with which you must comply. Here is a brief overview.
The correct procedure for maritime shipments to Egypt has undergone some significant changes in recent times, so let us offer you a breakdown of the process.
First, keep in mind that, with the exception of medicine and a limited number of chemicals and foodstuffs, the Central Bank of Egypt has stopped the usage of documentary collection for all imports into the country, leaving letters of credit as the only acceptable method for payment.
Second, in accordance with the new Advance Cargo Information procedure (ACI for short), any Italian exporter wanting to ship to Egypt must go through the following steps:
– Register on the CargoX website and pass the verification procedure;
– Provide the Egyptian importer with full shipment information including the complete company name, VAT number, and the CargoX ID obtained from the website;
– Wait for the Egyptian importer to generate a unique 19-digit ACID code (Advance Cargo Information Declaration) through the NAFEZA website;
– Provide the ACID code upon booking the shipment;
– Load the full shipment documentation (Bill of Lading, EUR1 certificate, certificate of origin, invoice and packing list) onto the CargoX website within 48 hours of the ship’s arrival to its destination.
If your business is affected by these changes in any way, we at Global Shipping hope you found this brief guide useful and that you will continue to give us your valued support in the future.