Newly Proposed Amendments by the Prime Minister Cabinet regarding Lifting Current Importation Restrictions in Egypt

The Prime Minister’s Cabinet proposed a new law regarding lifting current importation restrictions introduced by Law no.121 of 1982 (the “Importers’ Register Law”). The proposed law is based on the Minister of Foreign Trade Affairs proposal on amending some provisions of the Importers’ Register Law, to allow the registration of foreign investors, as part of the state’s efforts to attract foreign investments.

Pursuant to the current provisions of the Importers’ Register Law, any individual wishing to register in the Importers’ Register is required to be an Egyptian national. Meanwhile, for companies to undertake importation activities the Egyptian ownership quota must be 51% for all types of companies.

The proposed amendment stipulates that the following are permitted entry in the Importers’ Register:

1. Joint-stock companies;
2. Partnerships limited by shares;
3. Limited liability companies; or
4. Partnerships.

The proposed law also removes the Egyptian ownership quota previously introduced by the Importers’ Register Law.

The total registration term shall not exceed 10 years from the date of enforcement of the new proposed law. Registration may be extended for another term of 10 years pursuant to a decision issued by the Prime Minister’s Cabinet based on a proposal from the Minister of Foreign Trade Affairs.