The Egyptian Customs Authority is currently facing a challenge related to the detention of approximately 13,000 cars of various categories in different ports since the middle of last month, and the official reasons for this detention have not been disclosed.

According to importers and members of the automobile division of the Federation of Chambers of Commerce who spoke with “Eqtisad Al-Sharq with Bloomberg”, this crisis began in mid-May when car import companies discovered that the Advance Cargo Information (ACI) registration system was not working.

Finance Minister Mohamed Maeit was contacted by Amir Hilali, head of the importers’ committee in the automobile division, and the minister confirmed the existence of a technical malfunction that is currently being addressed.

Implementing the Advance Registration System

The Advance Cargo Information system was implemented in Egypt in 2020 and became mandatory in October of the following year. This system relies on submitting shipment data and documents at least 48 hours before shipping, allowing the importer to obtain a shipment identification number (ACID) through the government’s “Nafeza” platform.

The head of the Customs Authority, Al-Shahat Ghatwari, indicated that the reason for the detention is due to “some governance procedures,” without disclosing the details of these procedures or a timeline for their completion.

Reports indicate conflicting reasons leading to the detention of approximately 13,000 cars. Amir Hilali, head of the importers’ committee in the automobile division, indicates that the reasons may be the result of a technical malfunction in the advance cargo information system, while it is mentioned that verbal instructions were issued by the head of the Customs Authority prohibiting the importation of personal and commercial vehicles and those designated for people with special needs.

Also, Osama Abu al-Majd, head of the Car Dealers Association, confirms that there has been a suspension on car imports for more than a month, and warns of a “new catastrophe” in the car market if the detained cars are not released and imports are not resumed.

Importing companies are seeking to resolve the crisis by changing the customs item for cars in the advance cargo information system, but they have been prevented from doing so.

The head of one of the car importing companies confirmed that they received warning messages from the “Nafeza” platform stating that if cars are registered under an incorrect item, they will not be able to amend the item and release the cars, but rather they will be returned abroad or legal action will be taken against them.

Abu al-Majd explains that in the past they were able to amend the registration of imported cars in case of an error, but now this has been prevented, and this will lead to a significant rise in car prices, without it being the result of merchant greed as is rumored.

Car Sales in the Egyptian Market