How to Calculate Duties and Taxes on Imports to Egypt is a critical question for international traders. The final cost of your shipment depends on the product's classification (HS Code), its customs valuation, and the country of origin. In Egypt, commercial imports are generally subject to duties and taxes from the first Egyptian Pound (EGP), as there is no general de minimis threshold. All import procedures are managed through the digital Nafeza platform under the supervision of the Egyptian Customs Authority (ECA). Understanding the Cost, Insurance, and Freight (CIF) valuation basis is key to accurately estimating your landed cost.
Import duties in Egypt are calculated as an ad valorem tax, meaning they are a percentage of the customs value of the imported goods. The specific duty rate is determined by the product's classification under the Harmonized System (HS) code. Egypt uses an extended HS structure, with import tariff codes that can extend up to 12 digits for national classification, providing a high level of detail for duty assessment. Correctly identifying the 12-digit import tariff code is the essential first step in the calculation process, as misclassification can lead to delays, fines, or overpayment of 'customs duties in Egypt'.
To accurately 'calculate import tax in Egypt' and the total landed cost, importers must first establish the Customs Value. Egypt adheres to the Cost, Insurance, and Freight (CIF) valuation method. This means the dutiable value is the total of the goods' price (Cost), the cost of shipping the goods to the Egyptian port (Freight), and the cost of insuring the goods during transit (Insurance). This CIF value forms the base for calculating the Customs Duty.
Once the Customs Duty is calculated, the total is then used to determine the Value-Added Tax (VAT) and any applicable Excise Tax (Schedule Tax). The standard VAT rate is 14%, but a reduced rate of 5% may apply to certain machinery and equipment for industrial production. The VAT base is the CIF value plus the Customs Duty and any other taxes (like Excise Tax). This cascading calculation is why an 'import tax calculator Egypt' must use the CIF value as its starting point.
For commercial shipments, the concept of a duty or tax de minimis threshold is generally not applied, meaning all commercial imports are subject to the full calculation of duties and taxes. Importers must use the Nafeza platform, which includes the Advance Cargo Information (ACI) system, for digital customs declarations, a mandatory step to streamline the process and reduce clearance time. Leveraging Free Trade Agreements (FTAs) with partners like the EU or COMESA can significantly reduce or eliminate the Customs Duty rate based on the product's certified country of origin, which is a key factor in determining 'how import duty is calculated in Egypt'.
Determine the Customs Value: Use the Cost, Insurance, and Freight (CIF) value of the goods (Cost + Insurance + Freight) in Egyptian Pounds (EGP).
Classify the Goods: Identify the correct 12-digit import tariff code (HS Code) to find the applicable Customs Duty rate and any Excise Tax (Schedule Tax).
Calculate Customs Duty: Multiply the CIF Value by the Customs Duty rate (e.g., CIF Value x Duty Rate). Apply any preferential rates from Free Trade Agreements.
Calculate VAT: The VAT Base is the CIF Value + Customs Duty + Excise Tax. Multiply this base by the standard VAT rate (14%) or the reduced rate (5%) for specific goods (e.g., VAT Base x 14%).
Commercial Shipment (Above De Minimis): A shipment of commercial goods with a CIF value of EGP 10,000 will be subject to full Customs Duty, VAT (14%), and any applicable Excise Tax, as there is no commercial de minimis threshold.
Personal Exemption: A returning Egyptian citizen or emissary may be granted an exemption from customs taxes on personal goods up to a value of EGP 40,000, provided the items are for personal use and not for trade.
Incorrect HS Code: Using a 6-digit or 8-digit code instead of the full 12-digit import tariff code can lead to incorrect duty rates and customs delays.
Ignoring CIF Valuation: Failing to include the cost of Freight and Insurance in the dutiable value will result in an under-declaration and potential fines.
Overlooking Excise Tax: Certain products are subject to an additional Excise Tax (Schedule Tax) which must be included in the VAT base calculation.
Egypt operates several special regimes that affect import calculations. The Nafeza system is mandatory for all importers, facilitating the Advance Cargo Information (ACI) process. For industrial projects, the customs tax due on machinery and equipment may be paid in installments over a period not exceeding one year. Furthermore, foreign tourists departing Egypt may be eligible for a VAT refund on purchases of taxable goods, provided the value in a single invoice is not less than EGP 1,500.
The Egyptian Customs Authority (ECA) uses the official Customs Tariff Schedule, which is integrated into the Nafeza digital platform, to calculate duties and taxes based on the CIF value and the 12-digit HS code.
For commercial shipments, there is generally no de minimis threshold for duties or taxes; all imports are subject to calculation from the first EGP. A specific personal exemption of up to EGP 40,000 is granted for personal effects to returning citizens/emissaries.
The standard Value-Added Tax (VAT) rate applied to imports in Egypt is 14%.
The customs valuation basis in Egypt is Cost, Insurance, and Freight (CIF). This means the value used to calculate duties includes the cost of the goods, the insurance, and the freight charges to the port of entry.