Advanced Cargo Information (ACI) and “Nafeza” Single Window System
Egypt’s Ministry of Finance issued Decree 38/2021 on pre-shipment registration - Advanced Caro Information (ACI) – that established a new single window system seeking to modernize and automate customs administration, simplify procedures, and reduce clearance times. The decree, released on February 1, 2021, requires that consignment documentation for Egyptian agencies at ports of entry be submitted through this new single window system (called “Nafeza” – the Arabic word for window) 48 hours prior to shipment arrival. Misr Technology Services (MTS) administers the single window system.
ACI uses an integrated information platform to coordinate shipping information between foreign exporters and Egyptian importers. This system requires importers to submit all necessary shipping documentation and transaction data (customs duties, import controls, port of entry, etc.) via an online “e-portal” to facilitate the release of the importers’ goods from ports in Egypt. The Egyptian Customs Authority hopes this platform will bring the GoE in line with international standards of trade-related procedures and customs requirements for the clearance of goods. The GoE is also working to harmonize port charges and other fees between the various ports of entry.
The single window system applies a risk-based inspection approach to all commodities and assigns different inspection pathways to commodities according to the identified risk. For example, a commodity assigned a “green” pathway does not require sampling and inspection, and shipments will receive expedited clearance. However, imports that are granted “green” pathway are subject to random audits to maintain their risk categorization.
The Egyptian Customs Authority launched the pilot phase of its single window system at the Port of Alexandria in April 2021. During the pilot phase, Egyptian importers began using the system to seek clearance for their inbound shipments. Beginning in October 2021, use of the system became obligatory. The new system was applied first at seaports, then at airports and inland ports. Complaints of extensive delays in the clearance process, including document checks, sampling, inspection, and the final release of consignments, are being addressed by the Egyptian authorities.
The Egyptian importer of an inbound shipment must sign into the online e-portal and submit the required shipping documents. Upon successful submission, the Egyptian importer will be issued a unique Advanced Cargo Information identification number (ACID). Either the Egyptian importer, or a customs broker acting on behalf of the importer, may access the online e-portal to request issuance of the ACID number for a particular shipment. According to officials, the proposed customs process will be as follows:
Importers input shipment data into the new ACI customs system.
The Customs authority issues shipment identification numbers (ACID) within 48 hours.
Customs authority notifies importers and exporters of the ACID.
Exporters electronically transmit shipment documentation and data, ensuring ACID is referred to on all documentation.
Importer certifies and acknowledges the correctness of the data sent by the exporter.
Vessel is loaded with shipment and departs the exporting country.
Importers pay import taxes and fees.
Vessel arrives at Egyptian port and shipment is offloaded.
Joint committee at Egyptian port inspects shipment.
Egyptian customs clear the shipment.
Exporters, suppliers, and shipping companies can obtain information about the new ACI customs system. Exporters should work closely with their clients in Egypt to ensure their consignments comply with import requirements.
Letters of Credit (LCs)
In February 2022, the Central Bank of Egypt halted all documentary operations and obligated banks to issue Letters of Credits for imports to curb U.S. dollar and hard currency outflows from the country. These left goods sitting at port for months after arrival.
In October 2022, the Central Bank of Egypt decided to gradually cancel the use of Letters of Credit and once again allow the acceptance of collection documents.
Documentation Requirements
For Egyptian Customs to accept an imported shipment, the shipment must have the following documents:
Commercial Invoice: Two copies plus the original document are required. Legalization by the Egyptian consulate in the country of origin is required in most cases.
Certificate of Origin: Two copies plus the original document are required. The Certificate of Origin must be authenticated by the Egyptian Consulate in the country of origin. Natural products are considered to originate in the country where the goods are extracted. The Certificate of Origin must bear a statement that the information given is true and correct to the best of the shipper’s knowledge.
Packing List: A packing list may be required by the consignee and is recommended in most cases.
Bill of Lading: A bill of lading must show the name of the shipper, the address, and the number of bills of lading issued. There are no regulations specifying the form or number of bills of lading required for shipment. The number of bills of lading required depends upon the carrier.
Pro Forma Invoice: This is an invoice required by the importer for submission along with the import license. It must show the country where the goods were manufactured.
Letter of Credit (L/C): The Central Bank of Egypt advises all banks operating in Egypt that L/Cs must be covered 100 percent in cash by the importer, except for some food items. This replaces the previous procedure whereby banks and their clients reached their own agreements and usually covered 10-20 percent of an L/C’s value. In general, the exporter may not ship the goods before the Egyptian bank has provided notification of the opening of a L/C. If the goods are shipped before the L/C is opened, the importer runs the risk of being fined up to the maximum value of the goods. If the importer does not bear the cost, then the exporter will have lost the value of such a shipment, and in the case of products with a limited shelf-life, the delay at Customs can mean that even if the exporter (e.g. an American company) wanted to take back the shipment, it’s no longer of any use. According to new regulations, the U.S. exporter must submit the invoice as well as export documentation to his bank and the U.S.