Mohamed Maait, Minister of Finance, reviewed with Al-Shahat Ghattouri, Head of the Customs Authority, the efforts exerted to strengthen governance in coordination with the various concerned agencies in the country, to ensure that customs exemptions that stimulate production reach those who truly deserve them.
In a statement issued today, the Ministry of Finance confirmed that the state is taking several measures to stimulate local production and manufacturing, including the recent amendments to the customs tariff in terms of reducing the import tax category on more than 150 items of production requirements and inputs, intermediate goods and primary raw materials, machinery and equipment. This aims to encourage investors to expand their productive activities.
It explained that the state has succeeded, through continuous coordination between its various agencies, including the Customs Authority and the Industrial Control Authority, and in cooperation with the Administrative Control Authority, in dealing with the so-called brokers of production requirements in the black market who import production requirements under the pretext of manufacturing. Through this, they aim to benefit from the difference between taxes to import a complete product and import production requirements, which amount to 58%. Later, they trade these goods to make profit. However, these entities were exposed, as they were importing under the names companies and factories that do not exist.
For his part, Al-Shahat Gattouri, Head of the Customs Authority, said that the advanced digital systems contribute to strengthening governance at customs ports so phantom entities can be detected. He pointed out that 51 reports were filed against Phantom with a value of EGP 17.5bn of tax dues, after it was found that they imported raw materials and equipment for the purpose of trading not manufacturing. They aimed to get exemptions and facilitations for the import of these goods.
Ghattouri confirmed that the Customs Authority is fully coordinating with the Industrial Control Authority to arrange field visits to all factories and importing companies in order to make sure that there are no violations.
He pointed out that the tightening of customs procedures in the concerned departments in various ports will prevent factories from circumventing import rules.