International agreements cost the state LE11 bln annually, economic yields redress
Tender of inspection devices worth $65 mln completed and delivery in February
Customs office inside Samsung in Beni Sueif
Fouad el-Khabaty, Head of Egyptian Customs Authority, said the country’s strategy is to strike a balance between toughening control to combat smuggling and simplifying customs procedures, dealing transparently with all clients to encourage investment and facilitate international trade, while honoring the state’s general policy and keeping away from the low income bracket.
El-Khabaty unveiled in an exclusive interview with Amwal Al Ghad that there wouldn’t be an increase in tariff, which may lead to deflation. The international agreements are also important to Egypt in terms of reciprocal export advantages obtained by Egyptian producers.
He said international agreements cost the state roughly LE11 billion annually, accounting for 50 percent of targeted proceeds estimated at LE21 billion this fiscal year, citing that economic repercussions are greater as exemptions increase volume of trade. Egyptian exports also get preferential treatment, which is in the best interest of the national economy.
El-Khabaty stressed the role of inspection ray devices in combating smuggling, noting that his authority seeks to provide all required equipment to develop customs offices nationwide. To this end, the finance minister agreed to repair 10 devices by direct orders without a tender to avert governmental red tape. Repairs will be done by an international company specialized, adding that there are 20 devices operating in all customs offices.
As for the tender of inspection ray devices financed by a US grant worth $65 million, el-Khabaty said it was completed and specialized international companies are competing, and bids will be opened on November 26, forecasting the devices will be delivered by February.
El-Khabaty said the levy totaled LE3.147 billion in the first quarter (Q1), accounting for 14 percent of the targeted figure this year, expected at LE21 billion, against LE17 billion the previous year. He noted that his authority has collected LE5.4 billion for the Tax Authority.
He said the authority has agreed to establish a customs office inside Samsung factory in Beni Sueif, staffing a committee of 15 employees for full technical supervision.
The move aims at facilitating the company’s operations, helping it to pump more investments, which is an objective of the Customs Authority.
