A ministerial decree regulating exports and imports is welcomed by businessmen, report Mona El-Fiqi and Sherine El-Madany Last week Rachid Mohamed Rachid, minister of foreign trade and industry, issued an executive decree regulating import and export procedures. The new decree, which will be appended to the export and import law, aims at raising the standard of exports as well as imports. Although the charter simplifies entrance procedures for imports -- including ready-made clothes and automotives -- it protects local industry by imposing some conditions, all of them in line with Egypt's commitments to the World Trade Organisation (WTO). Imported ready-made garments, for instance, now have to carry care instruction labels -- including brand name and country of origin -- in Arabic. Under WTO regulations Egypt has the right to impose the labelling to prevent dumping and the entry of second-hand clothes. "The charter balances the interests of both consumers and local manufacturers," says Mohamed Qassem, deputy chairman of the Chamber of Textile Industries at the Federation of Egyptian Industries. The local ready-made garment market has long been monopolised by local producers and procedural obstacles to the import of clothes, combined with high customs duties, had resulted in the smuggling of large quantities of clothes. Implementing the import and export charter, believes Qassem, will open up the market to imported clothes, allowing customers more choice. Not that local producers should feel overly threatened -- ready-made clothes will continue to attract a 40 per cent import tariff. Nonetheless, Qassem believes the greater access accorded to imported items will lead to improvements in domestic standards, raising standards and lowering prices. The charter, which went into effect last Friday, also regulates the import of automotives, annulling Decree 619 which stated that automotives could only be imported from their country of origin. "Only products that can be easily counterfeited should be restricted in such a way. With the charter shipping processes will be much simpler," said a press release issued by the ministry. Easier entry for automotives to the Egyptian market was welcomed by local manufacturers and dealers. Samir El-Afas, general manager of Soeudi Company for Automotives said that as long as local dealers followed the regulations he could foresee no problems. The only people likely to suffer from the new regulations, he pointed out, are dealers who already operate outside the law. He does not, however, expect the new regulations to have much of an impact on prices. Lower prices will come about only if customs duties are decreased. Announcing the new charter at a press conference Rachid explained that the charter simplified technical procedures and requirements that might otherwise impede trade. The ministry, he revealed, will assist the Customs Authority to compile a database of importers and exporters so that those which have consistently abided by regulations can be easily identified and relieved of any additional supervision. The charter, in addition, requires exporters to be aware of trade requirement practices and in possession of a certificate of accreditation. To this end the ministry will, said Rachid, be providing exporters with free training sessions and hold seminars explaining trade procedures and techniques. The new charter also promotes the adoption of the international bar coding system which tracks products and specifies origins and price in order to reduce counterfeiting. Moreover, the charter fully complies with intellectual property right treaties and protects the copyright of publications and artistic works, trademarks, industrial designs and patents.
