EGYPT - Letters of Credit
We have received notification from the Egyptian-British Chamber of Commerce that with effect from 22nd February 2022, the only approved way of importing into Egypt is through Letters of Credit.
A statement came out from The Central Bank of Egypt on the 13th of February 2022 stating:
As one of the governance procedures to regulate the importation process of goods into Egypt; The decision was made to stop all import transactions through collection of documents and use bank to bank transactions instead.
The only approved way of importing is through letters of credit from importers. This was followed by announcements of exemptions of sectors to the above regulation. The Central Bank of Egypt (CBE) excluded imports of medicines, serums, relevant chemical substances, and some food commodities from the recent decision.
The food items that were excluded include: tea, meat, chicken, fish, wheat, table oil, baby formula, powder milk, bean, lentils, butter, and maize.
The exclusion decision also applies to express mail shipments and shipments that are worth up to $5,000 or an equivalent amount in other currencies.
The CBE has also directed all banks to reduce their commission for opening documentary credits to be equal to the commission paid for collection documents, as not to add financial burdens for the trader.
We are in regular contact with the Egyptian-British Chamber and will circulate updates when we receive them. If you have any questions in the meantime, please email them to l.holt@hull-humber-chamber.co.uk and we will aim to get a response for you as soon as possible.
For help with Letters of Credit, please click on the links below:
Letter of Credit advisory service
