Distributing a product

Evolution of the sector

It is possible to carry out direct sales in Egypt; nevertheless most of the foreign companies prefer to rely on a local partner company. This choice has the advantage of being closest to the market and consumer expectations. The sales agents, distributors and wholesalers are registered for the most part with the Ministry of Industry and Foreign Trade. Most of these intermediaries remain generalists. The franchises have also had an unprecedented boom. If in the past they were kept mainly for the restaurant trade (Mc Donald's, Pizza Hut, Baskin & Robin, KFC), they are expanding into new sectors including hotel business, clothing industry, beauty salons, distribution and services.

Market shares

The market is still dominated by a large number of small family-run stores. The development of mass distribution is a rather recent trend and it only caters to a small fraction of the population having sufficient income. Many private mini-markets having a store space exceeding 100 m2 (Sunny Supermarket, ABC, ALPHA MARKET, METRO) have opened. In addition, several supermarkets have burgeoned in the country and from this point of view the Carrefour group with five supermarkets dominates the field. A more recent trend: the advent of discount supermarkets. For example, the Awlad Ragab group or the Khir Zaman chain. In terms of market shares, the supermarkets and hypermarkets represent 30% of sales compared to 70% for the small family-run stores.

Organizations in the retail sector

For further information, please refer the country guide of Buy USA info
For further information, please refer the Egyptian International Trade Point website

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal

Main International economic cooperation

There is a cooperation agreement with the European Union in force since 2004. It allows industrial goods to enter duty free within Europe. A free trade agreement was signed with 4 countries of EFTA (European Free Trade Association) in 2007 and with Turkey in 2005. The agreement of Agadir between Egypt, Morocco, Jordan and Tunisia entered in force since April 2007.

Egypt is part of the Greater Arab Free Trade Area (GAFTA), a pact of the Arab League entered into force in January 2005 which aims to form an Arabic free trade area. Egypt also belongs to the East African circle with the common market of eastern and southern Europe (COMESA) which should lead to a customs union.

The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Non tariff barriers

There is no licensing system, although importing some products requires the prior authorization of the Treasury Department.
One of the difficult principles governing imports is the obligation to ship the goods directly from the country of origin (decree 619/98, November 1998), thus preventing the goods from being regrouped. This law has however been relaxed for companies having subsidiaries in other countries by permitting them to ship from the country of their registered office or from their overseas subsidiaries. Together with this the obligation to get the certificates of origin legalized in the country of origin of the goods has been introduced.
In fact, some products are still banned, especially in the field of textiles and poultry, and automobiles must be imported in the year of their manufacture.
Packaged goods must have an Arabic instruction booklet and all handling instructions must be written in English and Arabic.

Customs duties and taxes on imports

The weighted average customs duty is 6.9%

Customs classification

Egypt applies the Harmonized Customs System.

Import procedures

There are significant documentary restrictions; the original sales invoice and two copies of it, the original certificate of origin and two copies of it are required. These two documents must be certified and authenticated by the Egyptian consulate in the country of origin. For the certificate of origin, it is necessary to specify that the information given is exact and accurate. Further, the package list, the bill of lading with the name and address of the sender and the number of bills of lading sent are required. Since 1999, The Central Bank of Egypt informed national banks that all the letters of credit should be paid 100% in cash by the importer. A complete description of the product content is also required for products for which analyzes are compulsory.

Importing samples

The Customs accept the entry of samples exempt from all duty for the purpose of sales promotion or exhibition. The value of these samples must not exceed 500 EGP or it should not be possible to sell them as such. These conditions must be repeated specifically in the accompanying documents. If they do not meet these conditions, a deposit must be made to the Customs with a file which will ensure a re-export of the product. The deposit will be returned on proving the re-export of the goods. For medical samples, health conditions must be met.

For further information

Website of the Egyptian customs office (under construction in English)
Official website of the European commission delegation in Egypt.
MFA
MOED

We can indicate you which are the customs duties applied to your product.

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

Egypt has embarked on a modernization process of its transport infrastructures. Thus, many highway projects were launched and some of them have been finished successfully like the highway linking Cairo to Ain Sokhna. In the same way, Egyptian airports are under full-fledged renovation. Cairo International Airport is part of a construction project for a new terminal. In fact, the shipping sector at this time experiences new perspectives with the construction of a container project to Port Saïd east.

Ports

Information on the ports of Egypt

Airports

List of Egyptian airports

Sea transport organizations

Official website of the shipping transport sector in which the web addresses of all the Egyptian port authorities are found

Air transport organizations

Civil Aviation website

Road transport organizations

The General Authority for Roads, Bridges & Land Transport (in Arabic only)

Rail transport organizations

Egyptian national railways' website

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate

Identifying a supplier

Type of production

The manufacturing sector contributes to more than 17% of the GDP. It is showing growth thanks to the number of foreign investments especially in the pharmaceutical, chemical, gas, oil, agricultural food, automobile sectors....

Business directories

Yellow Pages
Egtrade

Manufacturers associations of the main industries

Association of plastic makers and exporters
Association of makers and importers of the automobile industry

Trade Agencies and their representations abroad

Federation of Egyptian Chambers of Commerce

Enterprises federation

Association of Egyptian Businessmen

Standards

National standards organizations

EOS
NIS

Integration in the international standards network

Egypt recognizes the ISO standard. It also accepts the European standards, British, Japanese and American standards. When there is no national standard for a product, Egypt normally uses the ISO standard, the IEC or the codex alimentarius.

Classification of standards

EGP then a number / year.

Online consultation of standards

The Egyptian standards can be accessed from the EOS website on payment.

Certification organizations

EOS
EGAC

Find out the standards and labelling requirements that apply to your products

Intellectual Property

National organizations

Patents are protected by the Patents' Office which reports to the Education Department. Designs and trademarks are protected respectively by the Office of Designs and Models and Office of Trademarks which are departments of the Trade Register, an administrative service which comes under the Ministry of Trade and Industry. 
It is possible to obtain licenses for using patents and trademarks, but the agreements to use patents which involve payments outside the country must be authorized by the General Authority for Investment (GAFI). As for copyrights, they are handled by authors' societies.

Regional organizations

No regional regulation bodies for intellectual property.

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)