January 30, 2022

Egypt Increases the Customs Tariff on Solar Panels – Is It 5% or 2%

According to Article 5 of Decree No. 419 of 2018 regulating Customs Tariff (“Customs Tariff Decree”), renewable energy machines and equipment (solar and wind) are subject to a flat rate of 2% or the regular customs tariff rate set out in the customs schedules whichever is less. The customs schedule used to exempt “photosensitive semi-conductor devices, including photo voltaic cells whether or not assembled in modules or made up into panels, light-emitting diodes (LED)”.

Presidential Decree No. 558/2021 was issued in November 2021 (“Presidential Decree”) to amend the Customs Tariff Decree and provide, among others, that the customs tariff on photosensitive devices and photovoltaic cells will be 5% rather than being exempted.

The Presidential Decree did not amend or cancel Article 5 of the Customs Tariff Decree. Therefore, renewable energy (solar and wind) machines and equipment will be subject to the rate of 2% in accordance with Article 5 of the Customs Tariff Decree given that it is less than the regular rate of 5% set out in the custos schedules.

If you have any questions or comments, please contact Fatma Salah.

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