Egyptian Export and Investment Support Program

Believing in the importance of encouraging and developing Egyptian exports and supporting the industrial sectors (furniture, cosmetics, packaging, marble, granite, textiles, medical supplies, leather, spinning, engineering industries, soap and detergents, glass products, clothing and related accessories and furnishings, food industries, and chemicals), upon which the Egyptian economy is based, Egypt is constantly working to ensure the development of exports in Egypt, thereby increasing the size of the economy, opening new markets, and encouraging companies to export and disseminate Egyptian products abroad.

Therefore, the Export Development Support Fund was established, aiming to increase the volume of exports in Egypt and expand its scope. Exemptions and export support were also provided for companies that join the fund, and this was codified by Law No. 155 of 2002, which we will explain below:

What is the Export Development Fund?
It is a legal entity affiliated with the Ministry of Trade and Industry. It works to increase the opportunities for Egyptian products to spread in global markets and enhance the value of Egyptian industrial exports, thus supporting the Egyptian economy and achieving Egypt's Vision 2030.

What is the Egyptian state's goal in establishing an Export Development and Support Fund in Egypt?

1. Encouraging national products in foreign markets.

2. Assisting producers in increasing their export capacity by conducting technical and marketing research, establishing testing laboratories, a technical specifications certification center, and marketing research institutes.

3. Developing an electronic communication network with importing markets, national development institutions, organizations working to promote exports, and other entities operating in this field.

4. Reducing the financial burdens on exporters to achieve equality with competitors in global markets.

5. Strengthening exporters' marketing and promotion capabilities in the areas of commodity and service exports.

The importance of exports lies in their being a major source of income for both Egypt and other countries, by opening new markets for their products. This is evidence of the quality of the industries, agriculture, and other sectors in these countries, and increases the national income and foreign currency reserves in the country.

8 requirements and documents required to facilitate the export process abroad:

1. A certified copy of the commercial invoice.

2. A certified copy of the shipping agency's bill of lading.

3. A commercial register, tax card, and industrial register.

4. Proof of receipt of the export value from an accredited bank (letter of guarantee).

5. A certified copy of the export certificate.

6. Completion of the export.

7. The latest tax budget submitted and certified by a certified public accountant.

8. A certificate of origin.

Export Refund Controls:

The value-added tax rate must not be less than 40% for all exports benefiting from the fund for all export sectors, with the exception of the handicrafts sector.
Free zones must receive a support rate equal to 50% of the basic rate received by exporting companies in the interior regions for all programs.
Support is disbursed to companies according to the following ratios: 40% in cash, 30% in Ministry of Finance dues, and 30% in infrastructure.

Who are the companies eligible to register for the Export Support Program?

Small companies, which are those whose annual exports do not exceed $1 million, receive an additional 2% subsidy.
Medium companies, which are those whose annual exports range between $1 million and $10 million, receive an additional 1% subsidy.
Large companies, which are those whose annual exports exceed $10 million.

Entities eligible to receive export support:

Any establishment that exports goods and has an export development program may apply for support from the Export Development Fund, provided that the following is met:

1. The value-added percentage of the product or category of products exported by the company is no less than 40%.

2. The establishment requesting export support must have a quality certificate, provided that the following is met:

- The entity issuing the certificate must be registered with the Egyptian Organization for Standardization and Quality.

- The certificate obtained by the establishment must be registered with the Egyptian Organization for Standardization and Quality. The expiration date of the quality certificate is monitored.

3- For commercial companies engaged in exporting non-agricultural goods (export offices), the following requirements apply:

- Commercial companies wholly owned by the producing company or part of a group of companies are treated the same as the producing company, and supporting documents are provided.

- In the event of leasing production lines, these companies are required to be treated as producing companies. There must be a notarized contract between the company and one of the licensed factories, and proof that the factory has obtained a quality certificate and is accredited is required.

4- For other non-commercial companies, the following requirements apply:

- For new companies that have not engaged in export activities or existing companies that have not exported for three years and have previously dealt with the Export Support Fund, the export support due to them will be disbursed. These companies are required to submit a return of the disbursed amount if the budget is not submitted and the Fund does not match it with the tax return.

The invoice attached to the export certificate must be accompanied by the invoice of the company producing the exported goods, provided that there is no suspension of dealings with the producing company.

What documents are required to obtain export support for the first time?

1. The company's commercial register.

2. The company's tax card.

3. The exporters' register (for companies subject to the provisions of the Investment Law, a letter from the General Authority for Investment and Free Zones stating that the company complies with the provisions of the Investment Law must be submitted).

4. The industrial register for factories, or a letter from the General Authority for Industrial Development stating that the application for registration in the register has been accepted.

5. For companies operating in free zones, a true copy of a valid decision to practice the activity issued by the General Authority for Investment must be submitted.

6. A copy of a valid quality certificate (the expiration date of the quality certificate must be monitored).

7. A letter from the Egyptian Organization for Standardization and Quality confirming the registration of the quality certificate with the organization.

8. The company's most recent balance sheet and a copy of the full tax return submitted to the Tax Authority for the same fiscal year.

9. A copy of the company's most recent social insurance certificate indicating the number of insured persons.

10- A declaration from the source (for companies, signed by the Chairman of the Board of Directors, the General Manager, or the legal representative) authorizing the review of the original documents related to the transactions submitted to the Fund at the banks with which it deals. The authenticity of the signature shall be verified by a bank or real estate registry.

The documents required to obtain export support for each transaction are:

1- A completed support request form signed by the interested party or by a person authorized to sign under the commercial register or by an official power of attorney, accompanied by a declaration from the Chairman of the Board of Directors, the General Manager, or the legal representative.

2- A certified copy of the customs certificate (13KM export certificate), the unified export declaration (SAD), the free zone transit certificate, or any other certificates specified by the Customs Authority, stamped with the Egyptian Republic's seal and the code number from the relevant customs office, indicating the export has been completed. The certificate must be addressed to the Foreign Trade Sector or the Export Development Fund. Any computerized certificates issued by the Customs Authority in the future in this regard will be accepted within the framework of the automated procedures implemented by the Customs Authority.

3- A copy of the customs invoice, certified by the Customs Authority and stamped with the Egyptian Republic's seal and the code number, indicating the FOB value. If the invoice does not include this, the CIF value is considered, and the exporter is obligated to submit a freight invoice to be deducted from the value stated on the customs invoice.

4- A bank document proving the transfer from abroad.

5. A copy of the bill of lading certified by the carrier or carrier's agent. If a sub-bill is submitted, a copy of the original (master) bill of lading must be attached. For land transportation, proof of the means of transport data on the export certificate is sufficient.

6. A freight invoice or a receipt for freight payment from the carrier or carrier agent must be submitted when requesting transportation support.

7. For commercial companies engaged in exporting non-agricultural goods, in addition to the documents listed above, an invoice from the factory producing the product must be attached, provided that the producing factory does not have to suspend operations.

8. To prove the use of local production supplies, the exporter must submit a purchase invoice issued by a company registered for sales tax, indicating the name of the producing factory. This is required when requesting support based on inputs from a local producer. For companies manufacturing more than one stage, an internal invoice and a certificate from the Industrial Development Authority must be submitted, in addition to a value-added tax certificate.

The documents required to be submitted at the end of each fiscal year are:

Companies requesting export support are required to submit the following information to the Export Development Fund:

1. Annual financial statements certified by the auditor, along with all supplementary explanations and the company's board of directors' report, and a certified copy of the full tax return submitted to the Egyptian Tax Authority. The certified public accountant must be accredited by the Ministry of Finance.

2. An analytical statement of annual sales, detailing export and domestic sales.

3. An analytical statement of the company's workforce and wage growth.

4. A statement of the company's capital (production) investments and future expansions.

5. A detailed statement, certified by the auditor, of local purchase invoices, specifying the name of the factory producing each invoice.

6. A data completion form prepared for this purpose, approved by the company's chairman of the board of directors or legal representative and the auditor.

10 documents required from companies to obtain export support for Egyptian industrial components, including:
1. Service application form.

2. Power of attorney or bank authorization.

3. Proof of identity.

4. Original valid industrial registration certificate for the company seeking export support, and commercial registration if the company is a free zone.

5. A list of imported components for the product unit, certified by the company, accompanied by supporting import invoices at the CIF value.

6. A list of local components for the product unit, certified by the company, accompanied by supporting documents from entities holding a valid industrial registration certificate (invoices, supply orders, contracts), if there is a local supplier.

7. Technical specifications and manufacturing processes for the product.

8. The company's latest approved budget, showing the cost of raw materials and components used in manufacturing the product for which support is requested.

9. Receipt of payment of standard costs.

10- Registering for ISO9001 certification, accredited by the Egyptian Organization for Standardization and Quality.

How do exporting companies obtain export support for exported products?
A specific percentage is calculated based on the total value of products sold abroad. The percentages specified for each sector are determined by the company's local component or the higher the added value achieved.

An automated system has been created for the Export Support Program to assist companies in registering, receiving complaints, disbursing the value of the support allocated to exporters, and tracking the request digitally until the required service is received, as part of efforts to promote digital transformation.

In his recent meeting with the Minister of Finance, the Prime Minister discussed the most important efforts made, in coordination with various relevant authorities, to implement the Egyptian Export Support Initiative during the period from 2019 to 2024. The meeting concluded that:

Six phases of the initiative were implemented between 2019 and 2023, benefiting more than 2,351 companies, with total support amounting to EGP 54.15 billion. Implementation of the seventh phase, which saw 900 companies benefit during 2023/2024, with support amounting to EGP 8 billion, has begun. It is currently being completed, with an additional 300 companies scheduled to benefit during 2024/2025, with support amounting to EGP 3 billion.

Are you looking for specialized legal advice in the field of international trade and export support?
Saadani & Partners Law Firm offers comprehensive legal services to facilitate export and import operations, starting from obtaining the required legal documents such as the commercial register and tax card, to providing consultations on export exemptions and legal obligations in accordance with the Egyptian Export Support Law. With a team of lawyers specializing in commercial and investment legislation, we ensure legal compliance and enhance your chances of success in global markets.

Contact us today and become your legal partner on your journey towards international expansion!