Customs evasion on the rise

Sara Aggour
2 Min Read
The mining port in Safaga to be launched next March, head of the Technical Affairs Sector at the General Authority for Industrial and Mining Projects said. (AFP Photo)
The first half of 2013 saw 915 cases of customs evasion, a 50% increase compared to the same period last year, according to a report by the Customs Authority Division. (AFP Photo)
The first half of 2013 saw 915 cases of customs evasion, a 50% increase compared to the same period last year, according to a report by the Customs Authority Division.
(AFP Photo)

The first half of 2013 saw 915 cases of customs evasion, a 50% increase compared to the same period last year, according to a report by the Customs Authority Division.

Division head Ahmed El-Saman said in a statement the value of the fines reported are estimated to be EGP 487m, yet only EGP21m had been collected.

El-Saman explained that many times the cases reported have an unidentified owner or holder, causing the low collection rate.

“The responsibility must be placed, prior to delivery, either on an identified owner or on the transporting division,” he added.

The report detailed 57 cases of tobacco smuggling, of the EGP 62m taxes due only EGP 1.3m was collected.

Eight cases of evasion were reported for Tramadol, prescription drugs and other performance enhancing substances. Of fines totalling EGP 72m, however, nothing has yet been collected.

Fireworks cases also represented uncollected fines of EGP 81m.

“Generally the taxes on alcoholic beverages for tourism purposes are 300% of their value, however, in smuggling cases, taxes are 3000% of the value,” El-Saman said.

The report said fines collected in the cases of alcohol totalled EGP 860,000.

In the first half of 2012, there were 617 reported cases of customs evasion and violations, with total fines of EGP 249m. The amount of money collected so far from these cases is EGP18 m.

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