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Businesses lobby for another extension for ACI registration deadline

The delay will allow importers and their agents to go through the system’s “complex” registration procedures before it becomes fully mandatory

By: Business Today Egypt

Mon, Aug. 23, 2021

Businesses are once again asking for an extension to the government’s deadline to register on the upcoming ACI system for pre-registration of customs shipments, already previously rescheduled to October.

Despite already being delayed after the Federation of Egyptian Chambers of Commerce’s (FEDCOC) exporters and importers division and businesses complained about the original July 1 deadline, Hapi Journal reported that importers need more time to get ready for the new system.

The delay will allow importers and their agents to go through the system’s “complex” registration procedures before it becomes fully mandatory, said Hamada Agawany, member of the importers division.

Some complained that the new ACI system’s registration formalities need to be reworked, and that the face issues while registering.

With many importers not accustomed to such technologies nor are tech-savvy, the new system, which includes filing shipping documents and cargo data digitally ahead of its arrival via the ACI, is difficult, says Osama Gaafar, a member of the importers division.

This also includes the length of the process, including three different steps to complete the pre-registration customs procedures for a shipment, he added.

Egypt’s Finance Minister, Mohamed Maait, has previously stressed on the consequences of not registering on the system before its deadline, stating that the government will ban the entry of unregistered cargo starting July [before the extension] in its move to develop Egypt into a more modern and global logical zone.

He recently explained that demand for registering on the ACI system was high, with the number of registered companies reaching more than 15,000 companies. In June, the minister announced that 1.5% of importers registered on ACI System.

Maait has previously mentioned to multiple press outlets that the new system aims to reduce the time of customs release and reduce the cost of the import and export process, enabling ports to only be a transit gateway to expedite moving goods and improving Egypt's ranking in international competitiveness indicators, facilitating trade movement, and stimulating investment.

Under new amendments to the upcoming Custom Authority’s new Advance Cargo Information (ACI) system, importers and their agents will be able to postpone paying 70% of importing taxes and fees until their cargo’s arrival.

To register on Nafeza, another name for the ACI system, businesses must create an account on the digital platform and issue an e-signature either through Misr for Central Clearing, Depository and Registry (MCDR) or Egypt Trust.

Importers will then have to file for a request online to obtain a shipment identification number — valid for three months — within 48 hours, according to head of the Customs Authority El Shahat Ghatoury.