CBP Memorandum Announces New Egyptian Web Site on Egyptian QIZs
U.S. Customs and Border Protection (CBP) has posted a memorandum to its Web site announcing that the Egyptian Ministry of Foreign Trade and Industry has a Web site on the newly established Egypt-Israel Qualifying Industrial Zones (QIZs).
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(On December 29, 2004, the Office of the U.S. Trade Representative (USTR) issued a notice designating the Greater Cairo zone, Alexandria zone, and the Suez Canal zone in Egypt as QIZs eligible for benefits under the U.S.-Israel Free Trade Area Implementation Act (IFTA). At that time, the USTR stated that these three designations were effective on December 29, 2004, and are applicable to goods shipped from these QIZs after December 29, 2004. Prior to these three designations, QIZs had only been in Jordan. See ITT's Online Archives or 12/30/04 news, 04123015, for BP summary of the USTR's notice.)
Egyptian Web Site Includes QIZ Overview, FAQs, Etc.
According to CBP, this new Egyptian Web site includes the following information:
an overview;
the text of the Egypt-Israel QIZ agreement;
the original November 14, 1996 Presidential Proclamation establishing QIZs (i.e., Proclamation 6955);
answers to frequently asked questions (FAQs);
QIZ locations; and
Egyptian contact information.
Goods Manufactured in Egyptian QIZs May Be Eligible for Preferential Tariff Treatment
CBP states that goods manufactured within the above-listed Egyptian QIZs by companies approved by the QIZ Joint Committee may be eligible for preferential tariff treatment under this program. Before claiming preferential tariff treatment for goods manufactured in an Egyptian QIZ, the importer should ensure that both the goods and the supplier qualify. According to CBP, importers must comply with the requirements of HTS General Notes 8 and 3(a)(v).
CBP adds that a February 10, 2005 memorandum, which concerns the designation of the three QIZs in Egypt, should also be referred to for a list of additional requirements.
(That memorandum states, among other things, that in order for goods to qualify for preferential tariff treatment under this program, in general terms: the goods must be the growth, product or manufacture, or become a new or different article of commerce in the Greater Cairo QIZ, the Alexandria QIZ, the Suez Canal QIZ or Israel; as the producer must be a qualifying company, importers are advised to contact their Egyptian or Israeli supplier to determine their eligibility; the goods must meet a 35% direct cost of processing requirement; 15% of the direct cost of processing may be of U.S. origin; and each article must be imported directly from Israel or an Egyptian QIZ.)
(See ITT's Online Archives or 02/14/05 news, 05021410, for BP summary of a CBP administrative message announcing that the Automated Commercial System (ACS) had been programmed to accept IFTA claims when Egypt is country of origin.)
| Robert Abels | (textile-related questions) | (202) 344-1959 |
| Seth Mazze | (all other questions) | (202) 344-2634 |
CBP memorandum (dated 05/02/05) available at http://www.customs.gov/linkhandler/cgov/import/international_agreements/free_trade_area/industrail_zone.ctt/industrail_zone.doc
Egyptian Ministry of Foreign Trade and Industry Web site on QIZs available at http://www.qizegypt.gov.eg/
CBP's February 10, 2005 memorandum available at http://www.cbp.gov/linkhandler/cgov/import/international_agreements/free_trade_area/portions_of_egypt.ctt/portions_of_egypt.doc