Unifying procedures only partial solution to woes
Egypt, Economics, 5/15/2002

The would-be exporter at present has to fight his way through the red tape no less than eight government bodies before any goods leave the country. A new draft bill will change all that. The bill was approved by the Cabinet last week, and is due to be submitted to the People's Assembly (PA).

Minister of Foreign Trade Youssef Boutros Ghali said that the new law would create one, and only one body to deal with export procedures. The General Authority for Export and Import Control will be responsible for inspection services, documentation and fees that are still the preserve of the eight separate authorities at present.

Presidential Decree No. 106/2000 was issued to bring authorities entrusted with the tasks of inspecting exported or imported merchandise under one umbrella, Minister Ghali said, adding that the legislation would solve a problem that has drawn much complaint from producers who import raw materials and other production supplies to re-export them as finished goods.

"The law makes provision for the establishment of a new unit that would work with the Ministry of Finance handling problems arising from customs procedures, which affect the whole import-export business," he said.

Such a unit will to make life easier for importers of production supplies. If duty has been paid, it can be reclaimed. In some cases, imported supplies may be exempt of customs dues.

Businessmen's associations will welcome the new law as a significant step towards the elimination of obstacles in the way of export procedures. This in turn would be a tremendous boost for the export trade.

Chairman of the Egyptian Businessmen's Association (EBA), Said el-Tawil urged for the swift passing and enforcement of the law.

"By passing the law, the government will have played its part, and it will be up to the business community to make the most of the new facility," el-Tawil said.

Do we really need new legislation to give impetus to exports? Is the problem of Egyptian exports due to the absence of such laws? These questions, posed by an economic weekly magazine, were not intended to belittle legislation of the last few years to stimulate Egypt's economy. Previous experience shows that problems of Egyptian exports could not be solved by laws and ministerial decrees. "The law will change, but will those responsible for enforcing change?" the magazine said, and proposed that the quality of our products should improve in accordance with international standards."

Meantime, experts note that government's action is always a necessity but insufficient condition for the promotion of exports. Laws that are sought by the business community, labor and consumer advocates should be implemented as a first step. With each of these groups promoting and following up on its own interests through lobbying and awareness campaigns, supported by an active press that will bring these issues to light to keep the government, business, the workers and consumers as honest and active participants in the promotion of their individual interests, and that will help produce a good government and a good economy that can produce exportable products and will also be able to take advantage of export opportunities provided by the public and private sector efforts.

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