Egypt CargoX, NAFEZA, ACID

According to Egypt’s Resolution 2021/328, starting from October 1, all goods exported to Egypt need to use the ACI system (CargoX platform) for pre-registration of goods, also known as ACID. El-Shahat Ghaturi, Director General of the Egyptian Customs Administration, said that the implementation of this resolution is aimed at importers, customs brokers and companies exporting to Egypt to join the ACI system for pre-registration of shipments. The system processes shipment data based on the “pre-shipment” stage of the exporting country. The system helps to reduce the number of documents so that all procedures for goods can be completed before arrival at the port.

Registration steps:

1. 1. Egyptian local importers register in the NAFEZA system
      If the original import qualification requirements are met, local importers must register in the NAFEZA system
   2. Exporters register on the CARGOX platform.
      Notes:
      (1) The company address of the exporter must be consistent with that on the business license, otherwise the certification cannot be passed.
      (2) The generated blockchain file must be saved, as it will be needed for uploading files later.
   3. Exporters recharge on the CARGO X platform
      After registration, click buy unit on the balance interface to obtain a Pro-forma Invoice and pay. This is automatically generated by the system and will be sent to your registered email address.
      Notes:
      (1) Payment can only be made from the registered company’s account, and other companies are not accepted for payment.
      (2) The minimum recharge amount is US$150, but it is said that the minimum after October 14 is US$400. Because there is a handling fee of more than US$20, the arrival fee will be a little less.
   4. The exporter completes the account verification on the CARGO X platform
      Click get verified to enter the verification interface and complete the verification. The business license to be verified needs to be in English.
      Notes:The business licenses of many foreign trade enterprises in my country are in Chinese, which will lead to certification failure. The English translation of the business license is required, and it must be an official translation. Therefore, the solution is to make a notarized translation of the business license.
   5. Importers apply for ACID number
      Egyptian importers make import declarations in the NAFEZA system based on the invoice and packing list information provided by the exporter before shipping the goods, and apply for ACID number. After NAFEZA accepts the declaration, it will send the ACID number to the email addresses of both the importer and the exporter.
   6. The exporter creates an envelope on the CARGO X platform, enters the ACID number and scans and uploads the documents with the ACID number to the platform.
      Four mandatory documents need to be submitted in the envelope: Draft of Bill of Lading, Packing List, Commercial Invoice, Certificate of Origin.
      Notes:
      (1) The ACID number must be added to each document, especially the bill of lading.
      (2) Once the ACID declaration is completed, the information of the shipper and consignee cannot be modified, so you must carefully confirm the information of the shipper and consignee before declaring.
      (3) The ACID number is currently valid for 3 months.
      (4) You need to apply for an ACID number for each shipment.

Vehicle export pre-shipment inspection certificate CoI

Introduction to CoI Inspection Certificate
In order to improve the quality of imported products and protect the personal and property safety of the public, on December 30, 2015, the Egyptian Ministry of Trade and Industry promulgated Decrees No. 991 and No. 992, which mandatory requirements: From March 1, 2016, the 24 types of controlled products specified in the decree must obtain an inspection certificate issued by a third-party inspection agency authorized by the Egyptian government (hereinafter referred to as the COI certificate). At the same time, the manufacturer or trademark holder of the controlled product must complete the registration with the relevant Egyptian authorities before it can be sold in the Egyptian market.
CoI is the abbreviation of Certificate of Inspection. The Egyptian CoI certification is a mandatory inspection and certification required by the Egyptian Import and Export Control Organization (GOEIC) for products exported to Egypt. For products within the scope of the list of controlled products, importers must provide a certificate of inspection and certification by a third-party notified body authorized by GOEIC when clearing customs.
CoI certification mode: Type test (product test report that meets the requirements) + pre-shipment inspection

Documents required for CoI:
·Certification application (ACID number required)
·Pro forma invoice
·Third-party product test report
·Packing list
·Exporter’s statement (including manufacturer’s name and address)
·Final invoice

COI operation process
The first step is to submit an application:
Application form, packing list, invoice, product test report; and photos of the actual product.
The most important thing is the test report. Egypt’s product evaluation is mainly based on its own ES standards, so most products must provide English test reports of EOS/ES standards.
The second step is to review the information:
After the information is fully prepared, submit the information to the authorized third-party agency. The third step is to arrange inspection:
After the information review is passed, the agency arranges a third-party inspector to conduct on-site inspection; after meeting the requirements, a COI inspection report is issued. The fourth step is to issue a COI certificate, stamp the invoice, and upload the certificate to the GOEIC official website.
Note: Only after both the information and the inspection are qualified, will the electronic file certificate be issued.
COI focus:
Complete various product evaluations and related tests before mass production.
The product must meet the relevant product performance and safety requirements in the Egyptian national standards, and ensure that it is an English test report of the EOS/ES standard or ISO standard.
The product label and packaging mark must contain Arabic.
When confirming the draft of the COI certificate, it is recommended to send it to the importer for inspection. Inconsistencies in the certificate information will cause the importer to be unable to clear customs smoothly.

Other information: Both importers and exporters in Egypt need to register and register websites

Importers—Egyptian local importers register in the NAFEZA system

1. 1. If the original import qualification requirements are met (with an import license), local importers must register in the NAFEZA system. The registration website is http://www.nafeza.gov.eg/
   2. The ACID number is applied for by the importer

Exporters—Register on the CARGOX platform

1. 1. The registration website is https://cargox.digital/
   2. For the registration and usage flow chart, please refer to https://help.cargox.digital/en/egypt-aci/egyptian-aci-filing/
   3. Exporters top up on the CARGO X platform (minimum 400USD)
   4. Exporters complete account authentication on the CARGO X platform

Summary: Vehicles exported to Egypt require Egyptian importers to register an account and apply for ACID, and exporters need to register an account and complete pre-shipment CoI inspection.

The following is the information compiled in the early stage and is for reference only.

Correct understanding of Egyptian customs code HS

1 Pay attention to Egypt’s automobile customs code
1.1 Egypt’s automobile HS code is different from ours
1.2 Use the domestic HS when declaring exports; but the HS on the customs clearance documents when importing into Egypt must comply with the requirements of the Egyptian customs, otherwise the HS of the specific product cannot be found in the customs system or the HS does not match, which will lead to customs clearance obstruction
1.3 For example: Egypt HS 8703601010
The defined products are: other automobiles, equipped with two propulsion engines, an internal combustion engine with a piston ignited by sparks and an electric motor, the cylinder capacity of the gasoline engine is up to 1200 cm3, which can be charged by connecting it to external power. There is no HS code for what we call plug-in hybrid models (less than 1200CC displacement) in China.
1.4 The tax rates of the plug-in hybrid models listed above (less than 1200CC displacement): import tax 30%, value-added tax 14%, consumption tax 1%
1.5 Different displacements have different import tax rates. 1.6 Egypt’s classification of automobile displacement is different from our country. Our country is ≤ 1000, 1000-1500, 1500-2000, etc., and is divided according to 500CC. Egypt is ≤ 1200, 1200-1600, 1600-2000, etc., and is divided according to 400CC. The lowest division point is different.

1. Imported cars must be of the current model year or at most the previous year.
Cars should be new or used in good condition.
Egypt’s environmental and safety regulations must be followed.
Purchase invoices and certificates of origin are required.
Make sure all duties and taxes are paid.
2. Egypt: New law allows Egyptian expatriates to import private cars without paying customs duties
On October 27, 2022, Egyptian President Abu Fattah el-Sisi approved Law No. 161 of 2022, which regulates the import of private cars by Egyptian expatriates. The new law, a first for Egypt and valid for only four months, allows Egyptian expatriates to bring their private cars back to Egypt after returning from abroad without paying any duties and taxes. The Egyptian Cabinet approved a draft law on Wednesday that allows Egyptians living abroad or their families to ship one personal car to Egypt without paying duties or taxes, including value-added tax (VAT). (Article 9 of the Law Exempting Egyptian Expatriates from Import Duties on Cars.
Content of the Law
The new law provides that Egyptian expatriates who wish to import private vehicles may deposit a cash amount (in US dollars or euros) in a certificate of deposit at an Egyptian bank in lieu of paying taxes and duties for a period of five years, after which the expatriate can withdraw the cash deposit in Egyptian national currency. (Article 1, paragraph 2.
This foreign currency cash deposit will be equal to 100% of all taxes and duties that must be paid to import the car into Egypt. (Article 1. Under the new law, expatriates who fail to import the car within one year from the date of the deposit have one year to withdraw the foreign currency cash deposit. (Article 4, paragraph 2.
In addition, the law provides that Egyptian expatriates living abroad must provide Egyptian authorities with proof of legal residence in a foreign country in order to import private vehicles into Egypt. (Article 2, paragraph 1. It also requires that expatriates who wish to bring private cars back to Egypt must be at least 16 years old. (Article 2, paragraph 2. 2. In addition, expatriates must have an overseas bank account for at least three months. (Article 2, paragraph 3. Finally, the law requires that imported private cars must not be older than three years. (Article 3.
Reaction to the law
Hussein Mostafa, executive director of the Automobile Manufacturers Association, who supports the new law, believes that it provides a good opportunity for Egyptian expatriates to bring their private cars to Egypt at a price lower than the local car prices in the country.
Similarly, Khaled Saad, secretary general of the Automobile Manufacturers Association, claimed that the law will help reduce car prices by increasing the supply in the Egyptian car market.
Automobile expert Ahmed Bahaa Eddin said that the new law will help combat the “high price phenomenon” of cars in the Egyptian market.
In addition, Finance Minister Mohamed Maait said that the law will help increase Egypt’s foreign exchange reserves.
On the other hand, Egyptian car market expert Amro al-Habal claimed that the new law will not completely solve the current shortage of cars in the Egyptian market, reportedly , which is due to the new import procedures applied by the Central Bank, which has led to a decrease in imported cars. In his opinion, the shortage can only be permanently resolved if there is enough foreign exchange available. Currently, Egypt is facing a foreign exchange crisis. Due to the increase in Egypt’s foreign debt and its interest, the country’s foreign exchange reserves have been depleted. Therefore, foreign exchange for imports is scarce. News reports say that there is no prospect of resolving the foreign exchange crisis in the short term.

3. Egyptian expatriates can deposit the value of duties and taxes they paid to release their cars from customs into the Egyptian Ministry of Finance as a five-year bank deposit, a statement from the cabinet reads.
After five years, expatriates will be able to withdraw Egyptian pounds at the local currency value at the time of withdrawal, the statement notes.
Egypt has been suffering from a depreciation of its currency in recent months in light of the war in Ukraine, which has put pressure on the currency and slowed imports.
According to data from the Central Bank of Egypt, Egypt’s foreign exchange reserves fell in the past few months before increasing by $56 million in September to $33.198 billion at the end of September.
The statement stressed that exemptions under the new draft law will only be allowed within a four-month period from the date the law comes into effect, during which time expatriates must make a deposit with the government.
Egyptian expatriates willing to transport cars without customs duties should be at least 16 years old and have legal residence abroad.
They must also have an overseas bank account for at least three months. The statement added that spouses or children of expatriates are not subject to this requirement.
Used cars must be less than three years old for the new law to apply, the statement added.
Under the law, if expatriates fail to import their cars within a year of depositing money with the Treasury, they will be able to withdraw foreign currency immediately.
Minister of Immigration and Expatriate Affairs Soha Samir El-Gindy said in a televised speech that the draft law will be sent to parliament for approval. El-Gindy said bank deposits must be in U.S. dollars and expatriates will be able to withdraw the full value after the deposit matures. The minister added that imported cars must be less than three years old to avoid harming the environment.

4. As Egypt shifts to electric vehicles (EVs), it faces ambitions and challenges that highlight its readiness for this transition.
Egypt ranks 28th in the 2023 Global Electric Vehicle Readiness Index (GEMRIX), categorized as a “starting market” with a score of 32 out of 100, and ranks 10th out of 13 countries in the MENA region.
Egypt’s ranking highlights the country’s ambitious and promising electric vehicle landscape, marked by government initiatives aimed at promoting a more sustainable transport sector.
The Egyptian government has demonstrated a strong commitment to promoting electric vehicles as part of its Vision 2030 strategy, which includes a ban on conventional gasoline and diesel vehicles by 2040.
The government’s ambitious regulatory framework aims to reduce greenhouse gas emissions from the energy sector by 10% by 2030.
These goals reflect a broader commitment to sustainable development and environmental responsibility.
In addition, one of the most significant upcoming developments is the production of Egypt’s first locally assembled electric vehicle. This initiative, in partnership with a Chinese manufacturer, will work to increase local production capacity and reduce reliance on foreign imports from China. The government is currently in talks with two Chinese companies to partner with El Nasr Automotive, with plans to finalize contracts by March 2025.
El Nasr Automotive will seek to produce the first domestically produced electric vehicles, marking a substantial step towards developing a self-sufficient electric vehicle ecosystem.
Financial forecasts indicate that Egypt’s electric vehicle market is expected to grow. By 2030, the market is expected to generate revenues of approximately $20.08 billion (EGP 1 trillion), with an expected annual growth rate of 12.03%.
However, the path to widespread electric vehicle adoption is fraught with challenges.
The upfront costs of electric vehicles significantly exceed those of conventional vehicles, with many costing more than EGP 1 million (USD 19,915).
By comparison, most car sales in Egypt typically cost between EGP 300,000 (USD 5964.18) and $600,000 (USD 11924.87).
The price difference poses a significant barrier to consumer adoption, especially given the financial constraints faced by many Egyptians; the high cost of electric vehicles (EVs) compared to conventional cars makes it difficult for a large segment of the population to consider making the switch.

In addition, the regulatory environment remains a significant barrier. The licensing and registration process for EVs is fraught and lacks a permanent framework. Currently, only a limited number of EVs can obtain license plates each month, complicating the ownership experience for potential buyers.

The Egyptian Ministry of Interior has been providing temporary license plates and registrations for EV owners, but this is far from a sustainable long-term solution to meet the need for vehicle identification and legal access to EVs.

As Khaled Saad, Secretary General of the Egyptian Automobile Manufacturers Association, noted, the situation is further complicated by the lack of a clear framework for assessing tariffs on imported EVs without conventional engines.

Infrastructure development is another key aspect of this transition. The Egyptian government plans to invest at least EGP 450 million ($8 million) to build a network of charging stations, with industry leader Infinity to install 6,000 charging points at 3,000 charging stations across the country.
Currently, charging stations are limited in number and are mainly located in suburbs such as New Cairo and Sheikh Zayed, with no charging stations in central Cairo.
To address this gap, industry leader Infinity will install 6,000 charging points at 3,000 charging stations across the country, aiming to ensure that electric vehicle users have convenient access to charging facilities.
Despite these advances, consumer awareness remains a major challenge. Many potential buyers remain unaware of the long-term benefits of electric vehicles, including lower operating costs, reduced maintenance, and positive environmental impacts.
Educational campaigns are critical to changing public perceptions and fostering interest in electric vehicle technology.
The COVID-19 pandemic has highlighted the importance of emergency preparedness and adaptability, making it critical that consumers understand the benefits of electric vehicles in times of crisis.
In the face of these challenges, the Egyptian government is considering measures to stimulate demand.
Conditional tariff exemptions on new and used electric vehicle imports are being considered, which could make electric vehicles more financially accessible.
In addition, the government has pledged to subsidize the cost of the first 100,000 locally produced electric vehicles, offering incentives of up to 50,000 Egyptian pounds ($993.14) per vehicle, provided they can travel more than 400 kilometers on a single charge. These measures could significantly increase the attractiveness of electric vehicles to the average consumer.
Ministerial Resolution No. 255/2018 exempts electric vehicles (EVs) from customs duties and allows the import of EVs that are no more than three years old. While Egyptian regulations generally prohibit the import of used vehicles, an exception was made for EVs in order to promote the adoption of EVs and improve the future market prospects of the industry.
In summary, while Egypt is taking substantial steps to become a significant player in the EV market, it faces significant challenges that require attention.
5. Egypt is one of the countries most vulnerable to climate change, facing the risk of acute weather events such as water shortages, droughts, heat waves and sea level rise, which could cause considerable damage to the national economy. With the urgent need to reduce carbon emissions and address climate change, Egypt is positioning itself as a regional leader in adopting sustainable transportation solutions. This article takes a deep dive into the current state of electric vehicles in Egypt, drawing insights from recent news to illuminate the progress and challenges of this transformational journey.
The State of Electric Vehicles in Egypt in 2024 Vehicle Emissions in Egypt
The State of Electric Vehicles in Egypt in 2023 Government Policies and Measures Local Production of Electric Vehicles
Electric Vehicle Charging Infrastructure The Future of Electric Vehicles in Egypt
Electric Vehicles in Egypt: References Vehicle Emissions in Egypt
Air pollution is one of the top five risk factors for disease and premature death in Egypt. In Greater Cairo, the transport sector accounts for 26% of total particulate matter ≤ 10 μm in diameter (PM10), over 90% of carbon monoxide (CO), 90% of hydrocarbons, 22% of sulfur oxides (SOx), and 50% of nitrogen oxides (NOx) (1). According to its first two-year update report, Egypt emitted approximately 325,614 Gg of CO2 equivalent in 2015 alone (2). The transport sector is the second largest contributor to greenhouse gas emissions, accounting for 15% of total emissions, with private cars accounting for over 50% of all vehicles in Egypt, most of which are located in the capital.

In addition to the environmental and health issues caused by vehicle emissions, the World Bank estimates that Egypt’s annual CO2 emissions cost the country an estimated $141.7 million per year (3).

Electric Vehicles in Egypt in 2023
Egypt’s electric vehicle landscape is still in its infancy, but it is full of potential. According to the recent 2023 Global Electric Vehicle Readiness Index (GEMRIX), the country ranks 28th and is classified as a “starting market” with great potential for early infrastructure development. Industry professionals estimate that there are 3,500 to 4,000 electric vehicles on the road, up from about 1,000 to 1,800 in 2021. Recent reports highlight the growing number of electric vehicles on Egypt’s roads as a sign of the country’s shift toward a cleaner, more sustainable future.
Electric vehicles in Egypt have received attention as a strategy to:
Reduce greenhouse gas emissions;
Improve air quality;
Reduce dependence on oil;
Increase energy security amid growing global demand for cars.

Government Policies and Measures
Egypt hosted the COP27 United Nations Climate Change Conference in November and has banned traditional gasoline and diesel vehicles by 2040. The ban is part of the country’s Vision 2030 strategy, which aims to reduce greenhouse gas emissions from the energy sector, including oil and gas, by 10% by 2030.
Ministerial Decision No. 255/2018 exempts electric vehicles from customs duties and allows the import of electric vehicles that are no older than three years. Egyptian regulations do not allow the import of used vehicles. However, electric vehicles are an exception to encourage their use and increase future market opportunities for the sector.
On September 17, 2020, the President issued a decree (#549/2020) aimed at encouraging the local assembly of electric vehicles, including expanding the list of eligible importers to include companies involved in the manufacturing and assembly of electric vehicles.
The Egyptian government announced that it would provide an additional subsidy of up to EGP 50,000 (approximately $2,500) for the purchase of locally manufactured electric vehicles.
Local production of electric vehicles
Several automotive experts have recommended localizing electric vehicle manufacturing as the most effective policy to increase electric vehicle penetration. The Egyptian government has also worked to establish a local manufacturing base for electric vehicles. As early as 2021, the state-owned El Nasr Automobile Manufacturing Company and Dongfeng signed a memorandum of understanding. In addition, Chinese automaker Geely has also signed a memorandum of understanding with the National Military Production Organization to produce electric vehicles locally. Foton Motor also signed an agreement with the Ministry of Military Production in April 2020 to produce 2,000 electric buses over four years. However, so far, none of these agreements have succeeded in delaying the adoption of electric vehicles in Egypt.
As part of efforts to improve local production, the Egyptian parliament approved the establishment of a new regulatory body, the Supreme Committee for Automobile Manufacturing, which will be responsible for formulating new policies for the local automotive industry in July 2023. In October 2023, the Minister of Finance stated that the government will bear 35% of the production costs of electric vehicles per vehicle to support local manufacturers. With these new proactive interventions, Egypt’s electric vehicle market looks positive in the coming years.
EV Charging Infrastructure
Revolta Egypt continues to build a network of charging stations in more than 18 cities in Egypt. So far, Infinity EV has built a network of 135 charging stations with more than 500 charging points. In less than two years, the number of users of its app has increased from 2,000 to 4,000.
Schneider Electric has been helping companies provide monetizable charging hardware for public charging solutions. YoCharge, through its white label EV charging software and services, is helping companies launch, operate and expand their own EV charging networks in Egypt.

6. Cairo – November 3, 2024: The Central Bank of Egypt (CBE) has reportedly instructed banks for the first time in two months to allocate US dollars for letters of credit (LCs) related to non-essential goods whose imports require prior approval.
According to six unnamed bankers who spoke to Asharq Business, the decision is aimed at addressing a backlog of import requests over the past two years.
Since March 2022, the CBE has imposed strict regulations on the financing of non-essential goods, which include items such as cars, mobile phones and electronic products. The regulations were enacted to manage the country’s limited foreign exchange reserves amid rising economic pressures.
The last directive of the CBE on non-essential imports was issued in August, after which US dollar arrangements for these goods were stopped.
Under the current policy, banks must consult the CBE for specific approval when financing items in 13 categories of non-essential goods, including luxury goods such as cars, mobile phones, electronic products and children’s toys, as well as certain agricultural products such as seeds and fresh fruits.
If the sources are correct, the restoration of dollar allocations means these restrictions may be eased, although it remains uncertain whether the change will be permanent.
Banking executives said the CBE’s latest directive requires institutions to process accumulated non-essential requests dating back to 2022, 2023 and early 2024, which could provide much-needed support to importers who have had difficulty obtaining foreign exchange due to previous restrictions.
7. The Central Bank of Egypt (CBE) has issued instructions to banks requiring importers of 13 non-essential items, including cars, to provide the funds needed to open letters of credit to pay for their purchases without prior approval.
The move is aimed at easing import backlogs and increasing the supply of goods in the local market. It also reflects an improvement in foreign exchange availability.
The CBE imposed strict rules on import financing of non-essential items such as cars, mobile phones, electronics, food plants and seeds, fresh fruits, cocoa, and jewelry and pearls in March 2022 to manage the country’s limited foreign exchange reserves under growing economic pressure.
Automotive experts believe that the recent CBE directive to allow imports of non-essential goods will not have a significant impact on the automotive market, which is struggling with a slowdown.
“The problem with automotive imports in Egypt is not just about obtaining foreign exchange, although that is one of the challenges,” Amir Helali, head of the Importers Committee at the Chamber of Commerce’s automotive department, told Al-Ahram Weekly.
He explained that there is no clear mechanism outlining how to obtain the Advance Cargo Information Declaration (ACID) number that importers need to obtain through the Egyptian customs platform NAFEZA at least 48 hours before the imported goods are shipped from the export market, which is a key part of the customs release process for new cars entering Egyptian ports.
“This remains a real challenge for automotive imports in Egypt,” Helali told the Weekly.
MontasSer Zeytoun, a member of the Chamber of Commerce’s automotive department, said the registration process on the ACID number platform has been suspended.
According to data from the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt’s passenger car imports have declined recently. In August this year, car imports were valued at $156.08 million, down from $217.64 million in August 2023, a drop of $61.55 million.
Talking to local media, Zeytoun predicted that the recent CBE directive may be enacted soon and the Ministry of Finance decides to reopen registration for the ACID number platform, but until then, importers will still be unable to take action.
Helali added that reduced supply and rising prices coincide with weak demand due to inflationary pressures.
According to the Automotive Marketing Information Council (AMIC), car sales in Egypt fell 5% month-on-month to 9,500 units in September, down from 10,000 units in August. This is the second consecutive month of decline in car sales after a record 11,400 units in July.
Ahmed Al-Mazahi, an automotive expert, attributed the high July figures to the fact that July is a peak sales season as it coincides with the Egyptian expatriate summer vacation.
“Two months ago, people were trying to manage their expenses to pay for school and university, and now they don’t have the necessary liquidity. This should be coupled with the situation of Egyptians leaving Egypt after the holidays. Therefore, no demand is expected in the coming months,” Al-Mazahi told the Weekly.
According to the AMIC report, Chinese brand Chery topped the Egyptian automotive market in September with a 25% market share, a significant increase compared to 17% in the same month last year. It was followed by Korean brand Hyundai, which increased its market share from 14% to 20%.
Al-Mazahi pointed out that both brands are locally assembled and therefore attract a lot of demand due to their affordable prices. “Unfortunately, most automotive investors in Egypt are traders rather than businessmen, which is why they prefer to import fully manufactured products for faster profits. However, a sustainable solution for the market lies in investing in the localization of the industry through strategic partnerships with global agents,” he concluded.

8. Relaxation of automotive import restrictions: What it means for the Egyptian economy Understanding the Central Bank’s decision
The Central Bank of Egypt (CBE) recently made a major decision to relax import restrictions on automobiles, a move that has attracted considerable attention within and outside the automotive industry. The measure is in response to the various economic challenges facing the country, especially those affecting the import industry. In recent years, Egypt has experienced increasing pressure on its currency and a growing need to stimulate economic activity by increasing consumers’ access to imported goods.
One of the main factors driving the CBE’s decision stems from the difficulties faced by local automotive manufacturers, mainly due to dependence on imported parts. The restrictions previously imposed not only hindered the import of complete vehicles, but also the import of parts required for assembly in the domestic market. As a result, local manufacturers experienced a production slowdown, limiting their output and adversely affecting competitiveness. By relaxing these restrictions, the CBE aims to ease some of these pressures and ultimately promote a stronger local automotive industry.
In addition, this policy shift is expected to lead to increased consumer choice and lower prices, as the influx of imported vehicles is likely to lead to more competitive pricing models between local and international manufacturers. The Central Bank’s objectives include stabilizing the market, promoting trade, and improving the overall economic environment. By expanding access to vehicle imports, it seeks to stimulate consumer spending, which is critical to economic growth.
Given these factors, the impact of easing import restrictions is not limited to the automotive industry and may affect broader economic trends. The CBE’s decision is likely to result in a more diversified market landscape, reflecting a strategic approach aimed at supporting Egypt’s economic recovery.
Impact on the Automotive Market
The easing of restrictions on automotive imports in Egypt will have a significant impact on the automotive market, creating a more dynamic environment for consumers and industry players. With the increased ease of importing vehicles, the supply of vehicles is expected to increase significantly. The influx of vehicles into the market provides consumers with a wider range of choices, including a variety of models and brands that were previously unavailable or difficult to obtain. As a result, consumers may experience better choices in terms of price, features, and specifications, ultimately enhancing their buying experience.
In addition, the introduction of more imported cars could lead to changes in pricing dynamics. Competition from foreign manufacturers would exert downward pressure on car prices, making cars more affordable for the average consumer. As competition increases, local dealers and manufacturers may also adjust their pricing strategies to remain attractive, further benefiting consumers. This situation could lead to a gradual normalization of car prices in Egypt, which has long been known for limited availability leading to higher car costs.
Local car manufacturers and dealers will also need to respond effectively to these market changes. Some manufacturers may see this situation as an opportunity to innovate and improve their products, thereby improving product quality and customer service to maintain market share. In addition, the possibility of establishing new partnerships with international car manufacturers may emerge, allowing local companies to benefit from technology transfer and sharing expertise. Such cooperation may promote a stronger automotive industry in Egypt, ultimately contributing to the economy.
In conclusion, the easing of import restrictions presents significant opportunities for the Egyptian automotive market. The influx of cars will increase consumer choice, potentially lower prices, and encourage local manufacturers to adapt to the new competitive landscape.
Consumer Impact and Market Dynamics
The recent decision to ease import restrictions on cars in Egypt will have a significant impact on consumers across the country. One of the most immediate impacts of these new import policies is the potential for a drop in car prices. With the influx of foreign models, competition between manufacturers and dealers is likely to drive down prices, making new cars more accessible to a wider range of people. This increased affordability could not only increase sales, but also improve consumer satisfaction by providing more choices across a wide range of price ranges.
In addition, the variety of models available to Egyptian consumers is expected to increase significantly. With easier market entry for international manufacturers, a wide variety of vehicles—covering different makes, models, and specifications—can cater to different consumer preferences. This influx of choice enables consumers to choose a vehicle that better suits their lifestyle and financial capabilities, promoting a sense of empowerment in their purchasing decisions.
In addition to affecting new car sales, the easing of import restrictions is also likely to affect the secondary market for used cars. As more new cars enter the market, the supply of used cars is likely to increase, potentially reducing their prices. This shift may encourage consumers to consider buying used cars, knowing that they may find better deals and higher-quality options as inventory increases. Moreover, the reshaping of consumer behavior in line with these changes may reflect a greater emphasis on value and quality, rather than a sole focus on brand prestige.
In conclusion, the easing of restrictions on automobile imports heralds an era of increased consumer choice, affordability, and evolving market dynamics in Egypt’s automotive industry. As consumers become more informed and discerning, their purchasing power is likely to grow, leading to beneficial outcomes for individuals and the economy as a whole.
Future Forecasts and Future Challenges
The recent easing of restrictions on automobile imports in Egypt is expected to pave the way for significant developments in the automotive industry. With increased accessibility to a wider range of vehicles, the consumer market is expected to strengthen, driven by diversified preferences and potentially lower prices. As a result, automobile sales are likely to rise, contributing positively to the country’s overall economic growth. However, while initial responses may be promising, several challenges must be addressed to ensure continued progress.
A key challenge is the potential impact on the trade balance. While changes in import policies may lead to an increase in vehicle imports, this could have an adverse impact on domestic manufacturing. If local producers are unable to compete effectively with imported vehicles, this could lead to a decline in local production capacity, ultimately hurting the economy in the long run. To keep the automotive sector strong, strategies to strengthen local manufacturing processes are essential.
Market saturation is another issue. As more vehicles enter the Egyptian market, there is a risk of oversupply, which could drive down prices, potentially hurting profitability across the industry. Therefore, producers must tread carefully and balance consumer incentives with the sustainability of market health.
In addition, ongoing geopolitical factors and volatile economic conditions will have a significant impact on the automotive landscape. Disruptions in global supply chains, inflationary pressures, and shifting foreign investment patterns could all pose challenges to the industry. Companies in the automotive sector must be agile and adjust their strategies to effectively navigate these complex dynamics.
In conclusion, the future prospects for Egypt’s automotive industry are mixed, characterized by potential growth opportunities coupled with considerable challenges. Stakeholders must collaborate to foster a resilient environment conducive to sustainable development in this important economic sector.

9
National Automotive Development Plan (AIDP) Automotive Industry Development Plan
The National Automotive Industry Development Plan (AIDP) was launched during the Intra-African Trade Fair 2023 IATF event held from November 9 to 15, 2023.
The plan is a comprehensive integrated policy for the automotive industry and its supply industries, which provides a stable system that complies with all international commitments. The plan relies mainly on the private sector as the engine of the development process, while the government provides an enabling environment to promote the long-term prosperity of the automotive industry by linking it to the global production and trade system.
The state also aims to localize and deepen the automotive industry, especially the electric vehicle industry, in view of the world’s current growing interest in combating the phenomenon of climate change.
– The initial coverage of vehicles to be classified under the plan will include passenger cars, SUVs, vans and vans.
– The scheme provides a special package of incentives for the localization of the electric vehicle industry, stimulating demand for electric vehicles in three areas, as well as incentives granted to electric vehicle manufacturers and advantages enjoyed by owners of these vehicles, the most important of which are cash incentives of up to 50,000 pounds for consumers of all locally manufactured electric vehicles, exemption from license tax (already applied for), exemption from the National Resource Development Fee (already applied for), and the requirement for real estate developers to provide charging points at specific rates in residential and commercial projects.
– The incentive and regulatory framework of the scheme includes investment incentives and tax benefits for automobile manufacturers under Law No. 72 of 2017, as well as the introduction of a tariff system to ensure simplified customs release processes and support new investments in local manufacturing processes by OEMs, and the shift of aggregators to CKD assembly (industrial assembly system), thereby creating more jobs and strengthening the national economy. – The scheme is mainly related to local value addition, which is the fulcrum of the scheme’s work, and on the other hand, this value is also related to the localization of component industrial technology, in a simpler sense. In order to achieve maximum momentum for vehicle factories, it is necessary to work on deepening industrialization in both horizontal and vertical directions; while the concept of (vertical direction of industry localization of
industry localization) refers to deepening industrialization within currently manufactured parts, while (horizontal direction of industry localization of industrial direction) aims to attract investment in the manufacturing of new parts.
2 – Establishment of the Automotive Industry Unit of the Ministry of Commerce and Industry
The unit is responsible for developing detailed certification and qualification guidelines for automakers, creating application forms for new manufacturers/models to join the National Automotive Industry Development Program (AIDP), developing detailed instructions on how to calculate production incentives, creating models for this purpose, and establishing a detailed information system for local value-added calculation tables applicable to production incentives for automakers or local parts suppliers, and establishing an information system and detailed forms for declaration of imported parts, which includes all parts and materials used in manufacturing.
The department is also responsible for developing controls and mechanisms to manage incentives due to manufacturers, in addition to developing memoranda and information publications for investors, engaging with target sectors to explain the program and answer inquiries, and working on the Automated National Automotive Industry Development Program (AIDP).
3 – Establishment of the Supreme Council for the Automotive Industry
– At the end of October 2022, President Abdel-Fattah El-Sisi signed Law No. 162 of 2022, establishing the Supreme Council for the Automotive Industry and the Environmentally Friendly Automotive Industry Financing Fund.
The decision published in the Official Gazette by the President of the Republic stipulates that the Council shall be established under the chairmanship of Prime Minister Dr. Mostafa Madbouly, with the Minister of Industry as Deputy Prime Minister, the Ministers of Planning, Finance and Transport, and the Minister of State for Military Production, as well as the nominations of 4 experienced persons.
The official decision states that these 4 persons will be selected from experienced persons, nominated by the Minister of Industry, and they will sign a 4-year contract, which can only be increased once, to develop Egypt’s automotive industry.
– The Supreme Council of the Automotive Industry is responsible for approving the general policies, plans and strategies required for the development of the Egyptian industry and following up on their implementation.
– The Council is responsible for developing the general framework of legislative and administrative reforms in the automotive sector, taking all measures it deems necessary to create a better atmosphere, in addition to studying appropriate solutions to the obstacles facing the industry, and working to sign agreements and exchange experiences with leading countries in this field.
– The Supreme Council of the Automotive Industry was established on February 15, 2023, at the first meeting of the Council, chaired by Prime Minister Dr. Mostafa Madbouly. The establishment of the Council was established by Resolution No. 2986 of 2022, as follows:
Dr. Ahmed Abdel Wahab, Vice Chairman of the African Automobile Manufacturers Association.
Eng. Hossam Mohamed Abdel Aziz, CEO of Industrial Project Development Company.
Eng. Ehab Awad Al-Cloth, Boysen Company of Germany, responsible for manufacturing Shaman.
Michael Wingold, President of Nissan Egypt and Africa.
4 – Environmentally Friendly Automobile Industry Support Fund
In order to achieve its objectives, it may undertake all necessary tasks and capabilities, including financing the development of the environmentally friendly automobile industry, in particular in the establishment of technical centers and research areas necessary for the development of this industry, and working to encourage and develop innovation to improve the competitiveness of the environmentally friendly automobile industry, in addition to developing incentive programs and systems for the development of these automobiles and reducing the negative impact of harmful emissions.
According to the decision on the establishment of the Environmentally Friendly Automobile Industry Financing Fund, its Board of Directors shall approve the incentive program and system for the development of the environmentally friendly automobile industry, as well as its payment rules and procedures to ensure the development of this industry, while establishing the necessary control measures to prevent violations of the conditions and rules of the incentive system and program.
According to the requirements and controls of the National Automobile Industry Development Plan, the due incentives are granted in the form of vouchers (coupons), which are paid every three months from the expiration date, provided that the vouchers paid to the beneficiaries are used for government settlement, and these obligations continue throughout the validity period of the National Automobile Industry Development Plan, that is, seven years, provided that they are reviewed in the sixth year to decide to restart or suspend their work.
Agreements signed in this field:
* Attracting Nissan, General Motors and Stellantis to manufacture cars in the industrial city of “Ibaz” east of Port Said.
* Attracting Volkswagen to start a complex for the production of automotive painting materials in the city of Ibaz.
* Attracting Malaysia’s Proton to open a plant with an annual production capacity of 50,000 cars in Ain Sokhna.
* Attracting Ghabbour and Itamco to start producing cars in their factories in Sadat, producing 100,000 cars per year.
* Signing a binding agreement with Global Auto to produce cars in its Egyptian factory.
* Attracting Qatar’s Almana to set up a factory to produce cars for one of the main Chinese brands.
* Attracting three brands to produce cars in the Tarboul Industrial City.
・ Negotiations with Japan’s Toyota to start a car production plant with an annual production capacity of 100,000 vehicles.
* The Egyptian government has made plans to manufacture the first car and electric bus in Egypt by merging a company called “El Nasr Automobiles”. Perhaps the first of these steps is the decision made by the Public Commerce Ministry two years ago related to the new project of El Nasr Automobile and Engineering Automotive Company to manufacture cars and electric buses of 14 passengers. The Ministry decided to merge El Nasr Automobile Company with El Engineering Automotive Company to integrate the technological expertise between them and increase manufacturing capabilities, especially since the two companies came from one company, the past El Nasr Motors Company.

10. Vehicle Approval Process
1. The manufacturer finds a suitable local agent,
2. The agent (or manufacturer) completes registration at GOEIC,
3. The manufacturer obtains the country’s CoC (E-Mark) certificate: the manufacturer submits this certificate to EOS for review, and after paying the fee, EOS will issue a CoC certificate to prove that the model can be sold in Egypt,
4. The manufacturer submits the registration certificate obtained from GOEIC, the CoC certificate issued by EOS, and information proving that the model can adapt to the Egyptian climate to the Egyptian Customs to obtain entry permission.
6. After the certification is completed, the manufacturer can sell the certified model in Egypt with the help of the agent.

11 EOS website
11-1 Approval process for the entire electric vehicle The technical documents displayed by the company include
– E-MARK certificate or international test report of the component (for imported components)
– Battery inspection report issued by the General Administration of Import and Export Control (GOI EC).
– Speedometer calibration certificate issued by a national calibration institute (in the absence of a test report from an accredited international institute)
– Vehicle approval and validity certificate issued by an institute acceptable to EOS.
– Test reports issued by an institution acceptable to the Authority confirming that the vehicle complies with the requirements of the relevant standard specifications for dynamic performance, safety and road mobility
As follows:
1. Vehicle turning ability and deviation tracking test
2. Vehicle level parking performance test
3. Vehicle acceleration test
4. Vehicle maximum speed assessment
5. Vehicle lane change test
6. Braking system performance effectiveness test

11-2 Vehicle and vehicle component development projects
Necessary procedures for the implementation of Egyptian standards for domestic and domestic products as stipulated in Ministerial Decree No. 32/2010 1- Obtaining a certificate of conformity for domestic products:
* Domestic manufacturers submit a certificate of conformity (E_Mark) for each single component or complete vehicle If an Egyptian standard is issued in this regard, provided that the certificate shall be issued by an authorized conformity certification body for the above-mentioned components and included in the list issued by the United Nations available on the EOS website http://www.eos.org.eg
EOS shall send a copy of the issued certificate to the issuing body (UN recognized certification body) by email to check the authenticity of the certificate issued for the product in accordance with its relevant standards
After paying the standard fee, EOS Certificate of Conformity shall be issued based on (E_Mark) certificate 2-A Local Products Obtaining Test Report:
* Domestic manufacturers shall submit a Certificate of Conformity (E_Mark) for each single component or complete vehicle, provided that the certificate shall be issued by an authorized conformity certification body for the above-mentioned component and included in the list published by the United Nations, which can be consulted on the EOS website
http://www.eos.org.eg
* EOS shall check the authenticity of the certificate issued for the product in accordance with the relevant standards by sending a copy of the certificate issued by it to (the awarding body recognized by the United Nations) by email. EOS shall issue a Certificate of Conformity based on the test report (E-Mark) after paying the normative fee.
3- Local Products Not Obtaining Certificate of Conformity or Test Report:
* In case no Certificate of Conformity or Test Report is submitted
: The customer submits the component to EOS for testing of the component in accordance with the relevant Egyptian standards published for each single component or complete vehicle.
* Pay the prescribed fee in this regard.
* After the customer selects the testing body, the samples are sent to the testing body registered with EOS, and a Certificate of Conformity will be issued based on the test report.
Egyptian Standards , standards related to vehicles and their components for which Ministerial Decree No. 32/2010 has been issued.

12
12-1 The Egyptian government announced strict new regulations aimed at organizing the local car market, imposing restrictions on the import of personal vehicles. According to a decision published in the Official Gazette by the Ministry of Investment and Foreign Trade, each importer can only import one car every five years. The regulations will come into effect on Friday, December 29, 2024.
Conditions for importing new cars
The government has outlined a set of conditions governing the import process of new private cars. According to the decision, each importer can only import one car in five years. Importers must provide a bank statement proving that they can afford to purchase the vehicle and use an approved bank payment method through an Egyptian bank.
In addition, importers must fill in the approved Form No. 4, with the exception of diplomatic vehicles or cars belonging to Egyptians working abroad.
Exemptions from restrictions on car imports Vehicles shipped or arriving at Egyptian ports before the date of implementation of the decision.
Vehicles for which a documentary credit was opened or its value transferred before the implementation of the decision.
Vehicles shipped to foreign embassies and international organizations are exempted under international agreements.
What are the exceptions to the conditions for the import of new cars in 2025?
The government has exempted certain cases from restrictions imposed on car imports. These exemptions include vehicles that have already been shipped or for which a documentary credit existed before the decision came into effect, as well as cars shipped to foreign embassies and international organizations in accordance with the provisions of international agreements.
12-2 New regulations for the import of private cars in Egypt
The Egyptian Official Gazette published Decision No. 319 of the Ministry of Investment and Foreign Trade of 2024 in issue 289 of “Follow-up” on December 26, 2024, which outlines the conditions for importing cars for personal use. The decision is based on Law No. 118 of 1975 and its supplementary regulations, as well as the ministry’s vision for organizing the Egyptian automotive market.
Key conditions for the release of vehicles
The decision includes several conditions that must be met for the release of imported vehicles for personal use:
Each importer can only import one car within a five-year period.
Submission of financial statements proving the financial solvency of the importer.
Payment for vehicles must be made through approved banking methods in the Arab Republic of Egypt (filling in form number “4”), with the exception of vehicles belonging to diplomats and Egyptians working abroad, which can be paid from abroad.
Exempt cases
The provisions of this decision shall not apply to the following cases:
Vehicles shipped or arrived at Egyptian ports before the effective date of the decision.
Vehicles for which letters of credit were opened or transferred before the effective date of the decision.
Vehicles imported for foreign embassies, international organizations and experts working in Egypt in accordance with international agreements and applicable regulations. Implementation date of the decision
The decision will take effect the day after its publication in the Egyptian Official Gazette.

13 Egypt Automotive Strategy 2024-2030
Egypt is preparing to promote the development of its automotive manufacturing and assembly industry, opening up prospects for meeting local demand and export revenues
The Egyptian automotive market will launch four to five new models in 2025, two of which will be produced when two new factories are established in Egypt. The remaining models will be assembled on the production lines of existing factories, Ahmed Abdel-Hafez reports.
One of the new plants will be built by Al-Qasrawi Group, while the other will be established by Ezz Al-Arab Group in partnership with Al-Sewedy and Indonesia’s Proton. Existing manufacturers such as Nissan also plan to launch new models, including an economy car of Indian origin, which will be assembled on the company’s local production line. Chinese automaker Exeed has also started assembling cars at its plant in October 6 City, according to a company statement.
Expanding car manufacturing is part of Egypt’s National Automotive Industry Strategy 2024-2030, which aims to achieve an annual production target of 400,000 to 500,000 vehicles. It envisions exporting 25% of that output, or 100,000-125,000 vehicles per year, generating $4 billion in revenue per year and raising Egypt’s profile on the global automotive manufacturing map.
A major focus of Egypt’s automotive strategy is electric vehicles (EVs), with plans to get involved in local EV manufacturing by 2025 by coordinating efforts with international companies to move their production lines to Egypt. Efforts also extend to integrating EVs into public transportation systems, including electric taxis, through a partnership between Chinese companies and Al-Nasr Automotive.

Al-Nasr said in an October statement that it plans to launch its first pilot production of passenger cars by mid-2025.

According to Ahmed Bahaa, an automotive market expert, Egypt’s best prospects for expanding automotive production lie in electric vehicles, rather than traditional fuel or gasoline-powered vehicles.

Electric vehicles are simpler and less complex than internal combustion engine vehicles, and rely primarily on battery technology, he said. Other parts of electric vehicles are also easier to manufacture locally.

Egypt has extensive experience in producing commercial vehicle parts, including small and medium-sized transport vehicles and buses of various sizes, Bahaa said.

He added that the state has demonstrated its ability to build markets and drive demand for electric vehicles, drawing on its success in creating a market for gas-powered vehicles through initiatives such as replacing older vehicles, supporting loans to switch from gasoline to natural gas, and establishing gas stations and related services.
He suggested that Egypt focus on maximizing its automotive city plans by focusing on producing basic components shared by all vehicle models. “This will make Egypt a supply chain hub and attract major manufacturers to operate in these automotive complexes,” Bahaa said.
The main challenge facing the automotive industry, he said, is to ensure it is up to the task of mass production. Using production lines for small batches drives up costs, leading to higher prices, he explained.
Bahaa also sees restrictions on car imports as an opportunity to revitalize local factories that can meet domestic demand with locally assembled cars.
In contrast, Hussein Mustafa, former executive director of the Automobile Manufacturers Association, believes that “opening the door to imports is not in conflict with promoting local production.” He called 2014 a peak sales year, when 300,000 vehicles were sold in Egypt, of which 120,000 were locally assembled. Mustafa said that similar sales patterns were seen in 2022 and 2023, despite a decline in overall sales, and he insisted on the importance of imports to meet different consumer needs. He pointed out that Egyptian factories operate at less than half of their capacity, even in years when the market has grown significantly. However, some factories have turned to exports, such as Nissan, which recently announced that it has exported 6,000 vehicles since the start of operations at its Egyptian plant. Mustafa said that the Egyptian automotive market is broad and diverse, and a harmonious balance needs to be struck between local production and imports. Most local factories produce economical passenger cars. , while there is also demand for luxury cars that are not assembled domestically.
While a single high-end model is assembled locally, the market demand for other models is still considerable.
Mustafa is optimistic about the new batch of models that will be launched in 2025, expecting that there will be price balance in the market as they will all belong to the economical passenger car segment. He also believes that the new models will increase supply, which is a key factor in regulating prices.
Alaa Al-Sabaa, member of the automotive department of the Federation of Chambers of Commerce, said it is too early to judge the future of the market based on recent developments. He said that the process of opening new factories and increasing the capacity of existing production lines to create jobs and increase local and foreign investment should be evaluated later after determining the supply, demand and pricing mechanism.
“Currently, the market demand is not strong and there is no gap between supply and demand. Around 60,000 locally assembled cars are licensed in 2023, while 46,000 cars are licensed by October 2024. We expect to reach last year’s levels by the end of December,” he said.
Al-Sabaa believes that the core challenge is to achieve quantitative production, because as production scales up, costs related to operations, energy, labor, components and raw materials decrease, thus reducing prices. Conversely, limited production will push up prices.
He predicted that the local market uptake of new models will not exceed 5,000 units and said that producers should look to export cars to increase production. He also called for the implementation of a national automotive strategy and adherence to a regular schedule for the distribution of export incentives, which will help factories reduce production costs and enhance their competitive advantage in the global market.
He also stressed the need to coordinate with the original manufacturers of models exported from Egypt. Exports without this could lead to competition with foreign partners, who cooperate in local manufacturing and provide technical expertise.
He added that if a foreign partner sees the economic viability and enhanced competitiveness of its models in the global market through local manufacturing, it is likely to support the plan.
Al-Sabaa cited Morocco’s car manufacturing model, saying its success is based on large-scale production. He pointed out that a major French carmakers achieve competitive prices by manufacturing in Morocco, enabling exports to Egypt, Saudi Arabia, Jordan and EU countries.
Morocco produces 590,000 cars of a single model per year, most of which are exported. It also produces other models for export, benefiting from a joint customs agreement that compensates for limited domestic purchasing power, low demand and a small population.
Al-Sabaa concluded that Morocco’s automotive industry now generates dollar revenues comparable to Egypt’s Suez Canal.

14
Egypt’s Minister of Trade and Industry, Nevi ne Gamea, has issued a decree outlining the conditions for customs clearance of electric vehicles entering the country.
The decision stipulates that, similar to conventional cars, electric vehicles can only be cleared if a letter of credit is issued during the model year. These vehicles must also not have been used previously.
The minister added that all conditions set out in the list of rules for the implementation of the provisions of the Law on the Regulation of Imports and Exports should be met.
In its second article, the decision provides for the cancellation of Ministerial Decision No. 255/2018 issued in this regard. This allows the import of used electric vehicles, provided that their age does not exceed three years plus the year of production until the date of shipment or ownership.
Gamea said that this decision is part of the Egyptian state’s direction to encourage the national electric vehicle industry. It hopes to start the production of this type of vehicle in cooperation with major international automotive companies.
She pointed out that Egypt has taken serious steps to provide the necessary infrastructure in expanding the charging and maintenance network of electric vehicles in Egypt. This is aimed at encouraging consumers to use this type of environmentally friendly vehicle.
The Egyptian Ministry of Trade and Industry is keen to localize the electric vehicle industry in the Egyptian market, especially because of the general global trend towards this mode of transport.
These cars have important advantages due to their environmental friendliness and reduced environmental pollution. They are also characterized by lower costs than traditional cars in terms of fuel and maintenance services.
15
Vehicle type and age restrictions: Egypt only allows the import of left-hand drive vehicles and vehicles manufactured within the last three years (electric vehicles).
Obtaining an import license: You must obtain the necessary import license from the Egyptian authorities. Please note that the requirements may vary depending on the type of electric vehicle.
Comply with Egyptian standards: Make sure your electric vehicle meets Egyptian technical standards and regulations. This includes safety and electrical compatibility standards.

Exempt from embassy certification: Recent regulations have eliminated the requirement to authenticate documents at Egyptian embassies, simplifying the process for applicants. Apostille is required.
Application process: The Egyptian government has launched an application to calculate the required payment and manage their applications online. Exporter Registration and Importer ACID, etc.
Documentation:
Vehicle purchase invoice: This should clearly state the price and details of the electric vehicle purchased from the Chinese manufacturer.
Certificate of Origin: This document is used to verify the country in which the vehicle was manufactured, in this case China.

Vehicle Data Sheet: This should include detailed electric vehicle specifications, including battery capacity and motor power.

Bill of Lading: This shipping document is required for customs clearance.

Customs Import Declaration: This form must be completed for customs processing.

Certificate of Conformity: For electric vehicles, this should prove compliance with Egyptian and international safety and environmental standards.

Delivery Method & Delivery Time:

The most common way to ship a car from China to Egypt is by sea. Roll-on/roll-off or container shipping are the main options and take 30 to 40 days.

You can also choose air freight. Although in most cases it will cost more than the car itself, your car will arrive within a week.

Pre-shipment requirements:
As of July 1, 2021, all used cars (including electric cars) must complete CargoX registration before they can be imported into Egypt.

Exporter Processing
You must register your shipment through the ACI system 48 hours before arriving in Egypt. Importers handle Freight costs:
Electric car shipping from China to Egypt can range from $1,500 to $3,500.
Freight costs depend on several factors, including the size and weight of the vehicle, mode of shipping (sea or air), port chosen, time of year, and additional services such as insurance.
Best Ports in China:
Tianjin Port is a good choice in China due to its efficiency and handling capacity for car shipping.
Other major ports such as Shanghai, Ningbo, and Shenzhen are also viable options.
Best Ports in Egypt:
Damietta Port has the latest infrastructure and is a popular choice for car imports.
Alexandria Port is another important port, but it can be more congested.
Some additional tips:
Choose a reputable shipping company with experience handling electric vehicles. Consider insurance coverage that covers potential damage during shipping and customs issues.
Paying Import Duties for Electric Vehicles in Egypt
Egypt Ministerial Resolution No. 255/2018 exempts electric vehicles from various tariffs. Egypt is trying to encourage the adoption of electric vehicles as it updates its car import tax structure.
Here is a summary of the updates to Egypt’s car import duties:
Customs duties: 0%
Development fees: 0%
Planning taxes: 0%
Value added tax (VAT): 14%
If you want to import a hybrid or conventional car into Egypt, the table below shows the updated customs duties, development fees, VAT and planning taxes:

17
Egypt approves third phase of zero-tariff car import program
The Egyptian cabinet has approved the extension of the zero-tariff car import program for expatriates for another three months.
First launched in October 2022, the program allows expatriates to bring one personal car into Egypt without incurring duties or taxes, including value-added tax (VAT).

The government had set May 2023 as the expiration date for the program. In October 2023, the cabinet approved the relaunch of the program for three months, until January 30, 2024.

Under the terms of the program, participants are required to deposit the equivalent of the tariff in a foreign currency, which is then refunded to them in Egyptian pounds.

Finance Minister Mohamed Maait previously said the program raised about $763 million from 151,000 participating expatriates in its first phase.

In addition, Maait said earlier this month that demand had surged in the second phase, with registration applications tripling in the first two months compared to the same period in the first phase.

The zero-tariff initiative is one of many steps Egypt is taking to increase revenue to $191 billion by 2026, address an urgent shortage of hard currency, and tackle a growing external debt of $164.73 billion as of June 2023.

22 Zeekr enters Egypt, taps into the African car market
Zeekr 001 is Zeekr’s first model, originally launched in April 2021, and is currently priced at a starting price of 259,000 yuan ($35,510) in China.

27.02.25 | Source: cnevpost
Zeekr (NYSE: ZK) has entered the Egyptian car market, launching two models in Egypt as the Chinese electric vehicle (EV) maker continues its efforts to expand internationally.

According to today’s announcement, the company launched the Zeekr 001 shooting brake model and the Zeekr X compact SUV (sport utility vehicle) at an event in the Egyptian capital of Cairo on February 11.

Prices for the Zeekr 001 in Egypt start at 2.7 million Egyptian pounds ($53,350), and the Zeekr X starts at 2.1 million Egyptian pounds.

The Zeekr X was initially launched in China on April 12, 2023. The company launched the 2025 Zeekr X on July 1, 2024, with a starting price of 149,000 yuan. Zeekr opened its first Egyptian store in Cairo and plans to expand its local sales network to cities such as Alexandria and New Cairo.

Zeekr’s announcement noted that Egypt is the second largest electric vehicle market in Africa, and demand for such models is growing rapidly.

The company said this is Zeekr’s first stop in the African market, marking a new milestone in the company’s globalization process.

According to the company, Zeekr has entered more than 40 mainstream international markets to date.

According to data released earlier this month, Zeekr delivered 11,942 vehicles in January, down 4.75% from 12,537 vehicles in the same month last year and down 56.08% from 27,190 vehicles in December.

The monthly drop in deliveries was mainly due to seasonal factors, including the Lunar New Year holiday.

According to data compiled by CnEVPost, Zeekr’s cumulative deliveries were 430,698 vehicles by the end of January.

Others
Egypt’s used car import policies and regulations

1. Import policy Import requirements:

– Egypt only allows the import of left-hand drive vehicles, and the subject of imported used cars must obtain commercial registration (importer) or professional license (individual)

Vehicle type:
– Passenger cars: Only hybrid second-hand cars, pure electric second-hand cars and second-hand passenger cars for disabled people equipped with medical equipment produced in the past three years are allowed to be imported.
– Commercial vehicles: Large transport vehicles can be more than 10 years old, and other commercial vehicles are required to be less than 10 years old.
Cargox registration:
– From July 1, 2021, used cars exported to Egypt must complete Cargox registration, otherwise they will be returned and fined.
New energy vehicle policy:
– In order to encourage the development of new energy vehicles, Egypt exempts imported pure electric second-hand cars from tariffs.
2. Tax policy
Egypt imposes different taxes on different types of second-hand cars. The specific taxes are as follows:
Pure electric vehicles:
– Pure electric second-hand cars are exempt from tariffs, development fees, planning taxes and other tax items, and only 14% value-added tax is levied. Hybrid vehicles:
– Hybrid vehicles are subject to different taxes according to different engine displacements

Special vehicles for the disabled:
Policy:
– Exempt from VAT, customs duties, etc.
– Only 3% development fee is required.
Import requirements for second-hand vehicles for the disabled:
– Must be imported in the name of the disabled.
– Submit a statement:
(1) No customs duty exemption for medical equipment vehicles or bicycles has been enjoyed within 5 years.
(2) Provide a doctor’s certificate with a disability level of not less than 35%.
– The vehicle must be equipped in accordance with the report of the General Medical Association.
– The engine must not exceed 4 cylinders and the displacement must not exceed 1600ml.
Commercial vehicles:
Import requirements:
– The age of the vehicle must be less than 10 years.
Tariffs and other tax items:
– A tariff ranging from 3% to 60% is imposed, determined by factors such as vehicle type and age.
– Other tax items such as VAT need to be levied.
Tax rate examples:
Commercial vehicles, single-row trucks: 49.2%;
Chassis: 37.8%.
Light buses: 60.6%.
Truck head: 20.7%.
3. Documents required for import
●Import license number
●Business ID
●Tax number
●Business tax registration certificate
●Register as a trader at the customs
●Invoice and certificate of origin certified by the Egyptian Ministry of Foreign Affairs, Embassy and other relevant departments