Egypt recently passed a bill that will simplify customs procedures by reducing costs and the time it takes to release cargo, according to a Sept. 18 report from the Hong Kong Trade Development Council. The bill, which must first be signed by the Egyptian president before becoming law, would create an electronic cargo tracking system and a “risk management system,” and improve settlements for customs disputes by allowing “tariff payers” to file appeals before heading to arbitration. The bill would also introduce duty exemptions for medical supplies imported by government and university hospitals, and create a temporary customs warehouse system to store goods at entry points and prevent backlogs. Other provisions will help certain importers more easily pay customs fees, reduce clearance times for certain items and establish a ceiling for service fees payable to the country’s customs authority.
Nigeria will stop collecting container deposit fees from importers by the end of the first quarter of 2021, the Hong Kong Trade Development Council reported Aug. 25. The Nigerian Shippers Council is in talks with the National Insurance Corporation of Nigeria to include the fee with “marine insurance offerings.” Nigerian importers pay more than $4.45 million (U.S. dollar value) annually in container deposits, which has “increased the financial burden” on them and led to a higher cost of doing business, the report said. They can collect a full or partial refund only after the container is returned to an authorized redemption center.
The United Arab Emirates tax authority issued a guidance clarifying the value-added tax treatment of e-commerce sales, KPMG posted Aug. 26. The guidance explains “place-of-supply rules,” VAT collection measures and requirements for exports eligible for zero VAT rates, KPMG said. The exporter must retain a certificate issued by UAE customs “or a similar document evidencing the export.” If the exporter cannot provide that document, “the application of the zero VAT rate could be challenged by the tax authorities,” KPMG said. Companies that cannot provide the document can apply for an “administrative exception for alternative export documentation.”
Dubai Customs will soon introduce an artificial intelligence-driven security system at ports to protect against illegal or “hazardous” shipments, the Hong Kong Trade Development Council reported Aug. 18. The system, announced Aug. 5, will include surveillance cameras, “state-of-the-art inspection technologies,” drones, “round‑the‑clock rapid intervention teams” and a “security vessel” that can track and take “control of ships before they reach port,” the report said. The system is aimed at boosting trade by improving the flow of “legitimate goods” into Dubai, the HKTDC said. Officials expect to implement the technologies at all ports within the United Arab Emirates. Dubai Customs reported that in 2019, customs authorities seized close to 4,450 illegal shipments entering at its ports.
Three African economic blocs recently adopted guidelines to decrease supply chain disruption and improve trade and transport services to combat the effects of the COVID-19 pandemic, according to an Aug. 11 report from the Hong Kong Trade Development Council. The guidelines -- adopted by the Common Market for Eastern and Southern Africa, the East African Community and the Southern African Development Community -- will give priority to the movements of agricultural, hygiene, medical and fuel products, the HKTDC said. The measures will also standardize screening and testing requirements for drivers at border checkpoints and encourage member states to waive port and border handling fees for essential goods. The guidelines are meant to harmonize procedures among the member states of the three economic blocs, which each have their own “distinct” set of regulations, and in some cases, membership in more than one bloc, the report said.
The United Arab Emirates revised its list of export controls to reflect changes agreed to during meetings at multilateral control bodies, including the Wassenaar Arrangement and the Australia Group, a UAE government June notice and a July 30 EU Sanctions post said. The UAE placed controls on a range of dual-use goods, the post said, including technologies for “nuclear materials, sensors, avionics, navigation systems and telecommunication systems.” The controls also apply to military and riot control vehicles, marine systems and “unmanned conversion kits.”
The East African Community introduced several revisions to its import duty measures, including “duty remissions” for industrial imports and tariff exemptions on a range of medical goods, the Hong Kong Trade Development Council said in a July 22 report. The measures also allow EAC member states -- Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda -- to impose higher duty rates on garments, textiles, leather products, metal products, meat and tea imports to protect domestic production against cheaper imports. Member states can also issue “stays” of the EAC’s common external tariff application, which allow the states to defer imposing the CET rates for one year.
Egypt’s trade ministry recently suspended imports of refined and raw sugar for three months, a July 15 U.S. Department of Agriculture Foreign Agricultural Service report said. The measure, which took effect in early June, may be renewed and includes an exemption for imports of white sugar for the pharmaceutical industry. USDA said Egypt's sugar imports come primarily from Brazil and the European Union, with small quantities from China. It produces 80% of its domestic sugar demand.
Kenya’s new finance bill includes several provisions that may be a disincentive to imports, including a new customs fee, additional duties and the removal of certain exemptions, the Hong Kong Trade Development Council said in a July 15 report. The bill, which took effect June 30, changed the import declaration fee for goods imported under the East African Community Duty Remission Scheme from a flat fee of $93 (U.S. dollar equivalent) to1.5% of the import's customs value. The new rate also “is chargeable regardless of the goods’ final destination,” unlike the flat-rate fee that applied to “imported goods that were subsequently destined for the Kenyan market.” The bill also removed fee exemptions for imports of certain aircrafts and other goods used for “promoting investments” or for “framework arrangements with the government.” Another measure will impose an additional 2.5% duty on certain goods imported for domestic use by companies in an “Export Processing Zone.” Kenya’s Parliamentary Budget Office has warned the bill may affect the competitiveness of the Port of Mombasa, which is used by other countries in the region, the report said. It is the largest port in East Africa.
The South African Development Community recently approved official guidelines for cross-border movement of goods during the COVID-19 pandemic, a July 3 Hong Kong Trade Development Council report said. The guidelines detail mandatory procedures for truck drivers and other transportation crews that are moving goods, including virus testing requirements, checkpoint management, hygiene practices, personal protective equipment requirements, loading procedures and record keeping.