April 17, 2024

Temporary Entry of Free Zone Equipment and Tools

 On the 25th of March 2024, the Cabinet of Ministers issued Decree No. 24 of 2024 (“Decree“) allowing free zone companies to have its tools, supplies, machines, equipment, devices, and means of transportation (“Equipment“) exit the free zone and enter the other parts of the territory of Egypt. Such entry can be for the company’s personal use to carry out its licensed activities or for leasing to third parties.

In case of personal use, the entry of the Equipment shall be subject to the following conditions:

  1. The maximum duration for the exit of the Equipment is six months. This duration can be extended one time by virtue of an approval from the Head of the Customs Authority.
  2. The free zone company must obtain a certificate from GAFI that the exit of the Equipment from the free zone is necessary for carrying out its activities.
  3. An undertaking from the free zone company that it will not use the Equipment in any business other than its licensed activities.
  4. An undertaking from the General Authority for Investment and Free Zones (“GAFI”), or the Supreme Council of Media for the Media Free Zone, that it will bear the due customs and value added tax (VAT) in case the Equipment is not duly returned to the free zone.

In case of the Equipment will be operated for the benefit of a third party outside the free zone, VAT will be due, and in case of renting the Equipment to third parties, customs tax will be due.

For more information or if you need help with your free zone company, please contact Dr. Fatma Salah.

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