Egypt is easing some of the customs restrictions imposed on imports as Finance Minister Mohamed Maait announced on Tuesday a package of exceptional measures to release goods amassing in ports in the coming days.
A severe shortage of foreign currency in Egypt — triggered by the Russian war in Ukraine and U.S. interest hikes — have pushed authorities to require banks and importers to pay for the letters of credit (L/C) in order to get their cargo released from customs.
The new package of exceptional measures is designed to help reduce commodity prices paid by Egyptian citizens, Maait added in the statement.
One of these measures will allow cargoes that have completed their customs procedures and are awaiting the Model 4 customs document to leave ports within “the next few days”, the statement read.
Model 4 is a pledge issued by commercial banks to pay the foreign exporter, as pursuant to a 2017 central bank directive.
Fines imposed on importers and investors for being late in completing customs procedures will also be suspended if caused by a lack of documents from concerned authorities, the statement added.
This measure will ease the financial burden on importers and discourage them from passing on higher prices to consumers.
