What are the policy advantages of TEDA-Royar bonded warehouse being approved for operation?

What are the policy advantages of TEDA-Royar bonded warehouse being approved for operation?
A few days ago, the Egyptian General Administration of Customs officially approved, allowing TEDA-Royal bonded warehouse to engage in empty, heavy box storage, bonded goods storage business. In other words, Egypt's first Chinese-funded bonded warehouse project was approved for official operation in the TEDA Cooperation Zone.

According to Egypt's "Special Economic Zone Law", the Suez Canal Economic Zone establishes a special customs mechanism, and as an engine project in the zone, the TEDA Cooperation Zone implements the special customs mechanism of the Suez Canal Economic Zone announced in Decision No. 76 of 2020.

General requirements of the mechanism

1, the customs mechanism to implement the special economic zone taxes and fees.

2. For the goods released according to the special customs mechanism of the economic zone, the taxes and fees payable shall be temporarily shelved until the re-export or the reason for release is over. At this point, the goods are called taxes, exports, and regulatory outstanding goods. As a result, the goods remain under customs control after release. The owner of the goods may not dispose of them himself until he has notified the Customs and the General Directorate of the completion of customs formalities.

3. To release goods from the bonded area of the economic zone, the bonded area of the economic zone shall do the following work through customs formalities:

Collection of tax payable.

Enforcement of import and export rules.

Release supervision.

4. According to the set conditions and requirements, complete the customs formalities for the import and export of goods in the economic zone with the mechanism of pre-release.

5. For goods imported from the economic zone, the invoice and packing list of the goods imported from the economic zone shall indicate the implementation of the special economic zone tax rate.

Specific advantages of the mechanism

1. The implementation of taxes and fees is temporarily shelved and paid when the goods are finally produced or become commodities in the domestic market. The special customs mechanism is implemented under Act No. 83 of 2002 and its amendments, and the General Directorate of the Suez Canal Economic Zone, in coordination with other government agencies and departments, is responsible for regulating and supervising the implementation of this mechanism.

2, the use of electronic means of information exchange and preservation, in order to facilitate the rapid implementation of procedures.

3. Taking into account the provisions of international agreements, the mechanism stipulates the principle of issuing domestic certificates of origin for products of projects in the region.

4. When the goods arrive at the main port, they will not be unpacked or unpacked, and will be directly transported to the bonded area of the economic zone outside the port or the project site in the economic zone for inspection, so as to save time and cost and solve the problem of goods stranded in the port.

5. Allow the transfer of goods between projects in the same area, and only need to notify the information center of the customs development service center of the economic zone after the transfer is completed without the need for stylized procedures.

6. The mechanism allows goods to move between different economic zones through simplified procedures to complete industrial or trade processing.

7. The mechanism allows projects in the economic zone to use emerging technologies and build digital platforms to facilitate customs operations.

8. The mechanism allows the products produced or imported by projects operating in the economic zone to be released to the country, and then enter the economic zone after some industrial processing.

9. The mechanism allows domestic market projects to temporarily enter the economic zone from the domestic market for maintenance, processing, and then export or return to the country.

10. The law establishing the Economic Zone and establishing its special customs mechanism allows the project to sell its goods to the domestic market within the scope, quantity proportion and period decided by the Council of the General Directorate of Economic Zones, after paying only taxes and fees on the foreign components used in the goods.

11. The mechanism allows the project to dispose of corner waste and residual waste on its own.

12. Use risk management and merit-based mechanisms in the release of goods, work to build mutual trust between the management department and the operating projects in the Suez Canal Economic Zone, and implement internationally accepted customs mechanisms.

13. The mechanism is based on the highest international standards and reconstructs the new management of quality supervision-the Supreme Council of Customs.

14, the mechanism believes that it is necessary to learn from the world's most advanced testing mechanism in advanced laboratories for mandatory testing.

15. The mechanism allows the customs development service center of the economic zone to provide customs services to operators outside the economic zone without considering the arrival of goods at the customs. However, the inspection of the goods shall be carried out on arrival at customs.

In general, the special customs mechanism of the Suez Canal Economic Zone, which benefits TEDA-Royar bonded warehouses, innovates the principles and procedures for the import and export of goods, thus making it easier and more convenient to overcome the various administrative obstacles faced in the import of goods, the circulation of projects and the export from the economic zone to foreign or domestic markets. The time cost and economic cost of cross-border trade will be reduced, and products that choose to TEDA-Royar bonded warehouses will be more competitive in the market.