A few months after the entry into force of the ACI system, the Egyptian government introduces a new rule
On February 13, 2022, the Central Bank of Egypt (CBE) made a decision regarding the governance of import operations to complement the activation of the Advance Cargo Information System (ACI), with the aim of raising the quality level of goods imported from abroad, as well as the governance of the foreign trade system and the protection of industry national sovereignty.
The Central Bank of Egypt decided to stop dealing with collection documents (CAD – cash against documents) and to work with a letter of credits/LG only.
On March 1, 2022, Egypt will require all import shipments, both sea transport and air freight, to be processed under a Bank Letter of Credit. This process change will need to be coordinated and set up between the supplier and the importer.
In a letter to banks operating in the country, the CBE explained that branches of foreign companies and their subsidiaries will be exempted from this decision, while allowing banks to accept documentary collections for goods that were already shipped before the issuance of this decision.
CBE has also excluded goods imports valued at less than US$5,000, as well as essential products such as vaccines, tea, meat and poultry, fish, wheat, oil and milk powder.
The list of goods exempted from L / C is extended, cf. Fresh exemptions from filing L/Cs for some imports + central bank exempts some foodstuffs from cash cover for another year
Further information at the following link: FAQs on CBE decision for LCs (ahk.de)
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