Egyptian State Brings Credit Force to Imports

Egyptian state imposes credit obligation on imports

According to information from our country's Cairo Trade Consultancy, under the Egyptian Central Bank's Decision of February 13, 2022, the vesaik equivalent payment method will not be used in imports starting in March, instead the Credited Payment Method It was stated that he would be accepted.

Although the Union of Egyptian Chambers of Commerce (FEDCOC) and some professional organizations have received reports of objections, but the practice has actually begun.

EgyptIn April 2021, also in order to facilitate customs procedures and to become a regional and global trade center under the 'Egypt 2030 Vision', we would like to introduce 'Pre-Inform the Sender'.Advanced Cargo Information (ACI-ACIDHe had started the "number" app. It was announced that the app would be mandatory by July 1, 2021, but was later postponed to October 1. NAFEZA (Egyptian National Single Window System for Cross Border Trade) and export information and documents prior to the ship's date of departure blockchain Based CargoX Reaching the receiver through it. However, it appears that the credit was made compulsory from March, before this system could be fully established.

The most commonly used payment methods in Turkey's foreign trade in 2021 were; for both imports and exports, first place goods and second place in advance. Total imports of our country in 2021 amounted to USD 271.3 Billion and exports to USD 225.3 Billion, while imports from Egypt amounted to $2.21 billion and exports to Egypt amounted to $4.52 billion.

In advance and method of payment of goods, as of use, are fairly simple methods, not subject to any set of rules. However Vesaik Muqabili And for letter of credit payments, the situation is different. ICC-International Chamber of Commerce (The International Chamber of Commerce) has brochures of uniform rules regarding these payment methods. 'An Example Rules for Transactions / Vesaik Uniform Rules for Collections – URC 522 An Example Procedures and Practice Rules for ‘letters of credit’ when applying Uniform Customs and Practice for Documentary Credits – UCP600 The brochures are based.

UCP 600, ‘International Standard Banking Practice Rules on letters of credit' ISBP International Standard Banking Practices – ISBP 745 It is evaluated together with. In unconfirmed credit, the exporter may not find the principal bank's obligation to pay sufficient. In this case, with a confirmed credit, the confirmation bank will also have an obligation to pay in a form independent of the principal bank's responsibility.

While the worldwide use of credited payment has declined over the years, it is also a method of payment that protects the credit importer. However, the functioning of the credit and the rules under which it is subject need to be well known. In this sense, the greatest risk is the inability to provide credit-appropriate vesaic. Therefore, the issue is important for our small and medium-sized businesses, who have not used the credited payment method before, without experience in this regard.

Egypt's obligation to use credit T.C. Ministry of Trade, Statement of the General Directorate for Trade Research and Risk Assessment, and links to a report in the foreign press Ministry of Trade, The State of the Enterprise Nation

For credit advice, please Contact Go ahead.

Gökhan EROL
e: gerol@inovakademi.com
g: 05337611934
t: 02167097332
f: 08505223403