May Khattab
Climate Change and Sustainability Manager Industrial Working Groups
(+202) 3333 8486 may.khattab@ahk-mena.com
The Egyptian Customs introduced a new system regarding the pre-registration of cargo information called “Advanced Cargo Information (ACI)”, which aims to simplify and to speed up the procedures for releasing goods and moreover, which contribute to verify exporters and importers, all through a single window online portal. The trial implementation of the Advanced Cargo Information system for incoming shipments at seaports started from 01 March 2021, and the compulsory binding implementation started from 01 July 2021.
From 15th of May 2022 Air freight entered the trial period for Advance Cargo Information (ACI) system. It will be required that basic data of the ‘Supplier, Importer and the Imported Goods’ be declared through the new online portal, prior to shipment for Customs Risk Assessment.
On approval being given to import, an ACID number will be issued, which must appear on all documentation, including the Bill of Lading and Carrier Manifest.
From 1st of October 2022 this ACID reference will be mandatory. The German - Arab Chamber of Industry & Commerce recommends that all parties (importer& exporter) start registering on CargoX and Nafeza to ensure a smooth process. The Chamber would gladly assist in the ACI introduction and procedures. We wish to stay connected with you and assist you in any questions that may arise or troubleshooting that could hinder you from receiving the ACID Number.
It is to be noted that the below questions and answers are provided by the German-Arab Chamber of Industry and Commerce on best effort basis and to the best of their knowledge with no obligation to the chamber.
What does the ACID number consist of?
The ACID number consists of 19 digits (numbers only)
Is there coordination with exports and imports and the Food Safety Authority?
There is already an electronic connection to the system with each of the General Organization for Import and Export Control, the Food Safety Authority, the National Authority for Regulating Communications, the Drug Control Department, and the Department of Counterfeiting and Forgery, and the link is successively done with all other authorities.
Is there a penalty for ACID after its issuance if it is not used and a new number is created?
There are no fines for not using an ACID number.
How is the red and green path applied?
The route, whether red, green or yellow, is specified for all importers when applying to customs to record the customs declaration in the form 46.
How can one verify that the ACID number is correct? How can we guarantee that an exporter did not provide the incorrect number?
The ACID number can be verified by the Nafeza system and the importer can see its status. An ACID Number has a validity of 3months. In case shipment was not done after the 3 months, the importer will have to apply for another ACID number. And there is no penalty for not using the previous ACID number.
Will the mechanism of listing and transferring the manifest be changed from the customs website to a Nafeza?
Yes.
What is the way to deal with shipments that have no ACID number listed and will be re-shipped?
The shipment will not be off loaded and will be reshipped on exporter’s expense. The provisions of Customs Law No. 207/2020 will be applied in this case.
Will the system be applied to passengers and ferries?
At the moment, the ACI is covering Sea cargo only with a trial period for operation from the 1st of April and mandatory to be applied on all shipments starting the 1st of July. However, the Egyptian authorities are preparing a study to implement the system on passengers and ferries.
Which entity will be responsible to issue e-token and importer delegated signatures?
The companies that will provide the electronic signature are two certified companies, namely the Egypt Trust Company and the Misr Clearing Company. This service might cost around 1.000EGP for the first issue and 500EGP for annual renewal. Apply for e-Token at any of the companies authorized to provide the service. You will receive the e-Token device from the service provider. Insert the device in the computer and go to Nafeza online portal. Click on the "Sign Document" icon that will appear on different screens to sign using your own signature.
Will there be an ACI - Nafeza service charge?
No, there is no charge for ACI service.
Can an ACID number be issued to a company with suspended operations?
ACID number cannot be issued if the dealer number is suspended.
Does the system keep data such as Item and Price?
Yes, it does.
Will the system issue delivery permits/clearance electronically?
Yes, it will.
Will short routes such as Jordan and Saudi Arabia be exempted from the system? Are the marine routes exempted from the application of the system?
The decision to pre-register shipments applies to all shipments inbound at seaports, and there are no exemptions according to the Minister of Finance Decision No. 38 of 2021.
If the exporter and the importer are the two parties that upload files and information on the Nafeza system, then what is the role of the freight broker or customs broker in this process?
First of all, the exporter does not enter data on the Nafeza System. All data that are entered to the system are via the importer. The importer adds the data of his exporter in the system along with the items listed in the proforma invoice to generate the ACID Number. The Egyptian importer can give authorization to the customs broker or freight broker to carry out pre-registration procedures for shipments. An authorization / power of attorney from the importer must be signed and uploaded on the system to guarantee correctness of procedures.
What happens if an item is received in excess of what was declared applying for the ACID Number?
The text of Article (73) Customs Law No. 207 of 2020 shall be applied.
Is the ACI system valid for industrial goods?
The Advanced Cargo Information System applies to all industrial goods.
Are data entered once or are data included on every shipment?
Data and documents are recorded on all shipments, each shipment separately.
Through the Nafeza platform, can all the historical shipments be recalled, in terms of commercial invoice value, customs, taxes...etc?
The system stores data such as item, description and price.
Do forwarders also have to register to Nafeza?
The customs broker or freight broker can carry out pre-registration procedures for shipments under an authorization / power of attorney from the importer.
Forwarding of receipt documents from another party in CargoX is free of charge?`
Yes
Who pays the fees on Cargox, the importer or the exporter?
All fees incurred at Cargox must be paid by the exporter.
What is an ACI envelop on Cargox?
An ACI envelope is the set of documents that an exporter upload on cargox. This usually includes a draft B / L, invoice, packing list and COO.
Which of the following options should the exporter choose from for an ACI Filing: “No blockchain support – free of charge”, “partial blockchain support”, and “full blockchain support”?
Exporters can't choose between these types of blockchain supports because the ACI envelope requires partial support = USD 3 / document. This is pre-set in the ACI envelope, No document of title is part of the ACI envelope as this is mandated by Egyptian customs (and user cannot change that). Please find the link for the explanation of different levels of blockchain involvement with documents: https://help.cargox.digital/en/user-manual/documents-and-pricing/document-types/
Why does the exporter need to hand in the documents via CargoX (not via E-mail)?
We are dealing with the International Trade business and since the world is moving away from using documents and paper environment, accordingly, digitalization is the opportunity. Digitalization is important to secure the transfer of data, documents and the privacy of the companies. This is international trade and there’s competition, so it is important to rely on technology and a secure platform (blockchain) to ensure authenticity of the sender, storage of data and smooth receipt of documents to the importer. Hence, avoid tampering with documents.
If ACID was per multiple B/L will this mean that form 46 will be opened for the multiple B/L?
Yes, of course.
Paying VAT/customs duties via the CPS/E-finance will be also connected to Al Nafeza payment, or one has to make 2 separate payments (1 VAT/Customs payment, and 1 to Nafeza payment)?
It’s one payment only that takes it all.
It was mentioned that ACI system will classify products and use the prices recorded on the system as an index, however, there are products of which the prices are defined through global stock markets, such prices may vary.
The customs officers have access to the internet and can go online to check on the prices of commodities whenever they arrive for importation.
According to the European DsGVO, is the data protected? Where are these data stored? Who has access to it? Can we please have a statement.
CargoX maintains a very strict, GDPR-aligned policy, available at https://cargox.io/privacy-policy/. All personal data is stored in the EU. Cargox do not share any identifiable data on the blockchain (be it personal or content-wise) and do not share any personal information with any outside company without explicit user permission. The content is always encrypted.
Does the electronic signature apply to the customs broker or importer?
The electronic signature is required by the Egyptian government and applies to any user who deals with the Nafeza system, whether it is the importer, customs broker, or government employee. This is for Egyptian citizens or residence in Egypt only.
Does the new system contribute to reducing complaints and injustice acts?
It certainly does, as pre-registration of shipments and the initiation of pre-clearance procedures will help decision-makers in completing procedures before the shipment arrives. The main idea behind the system is to check shipments prior to arrival to ensure the correctness of the transaction, avoid fraud and smuggling of goods. The ACI system abides by the WTO rules and regulations.
Regarding appendix 1 & 3, are they implemented on all items prior to shipment?
Appendices are executed on pre-entered data.
Are the components of the ACID number fixed for everyone or differ according to commercial, industrial, etc.?
There is no difference in the components of the number from one sector to another.
Is there a website to review the data?
Of course, through the Nafeza portal, it is possible to review all the different transactions recorded.
Is there a hotline for inquiries?
Yes, there is currently a hotline for customer service and respond to all inquiries on 15460.
Does this system apply to shipments of iron ships?
Yes, the system is applied to all incoming shipments at seaports according to the Minister of Finance Decision 38/2021.
How can ACI manage the express timing of air freight procedures such as perishable goods that take hours rather than days in transit?
The ACID is issued instant upon request. However, the ACI filing needs to be done 8 hours before the flight.
In case of a master B\L that includes (3) house B\Ls, does each B\L need an ACID?
In this case there will be a master ACID and 3 house ACIDs.
As foreign company exporting to Egypt - what do I need to do?
As a foreign company located outside of Egypt, all you need to do is register on the CargoX Platform. As for your buyer - an Egyptian company importing your goods needs to register and use the Nafeza platform.
Has the site been updated to be able to carry more than 10,000 companies on the server at the same time, or will we face the same problem that we faced with sea freight after using this system?
Yes, the server has been updated and has been working smoothly for sea freight.
What is the role of the airline in this new process?
The airline will be responsible for:
- Ensuring that Importer and Exporter IDs and vat numbers are included.
- It shall be included on the messaging system as well to ensure its transmission electronically to the clearance.
- The manifest shall be uploaded upon take off or in two hours if it’s a long flight.
- Issuance of delivery permission via Nafeza.
What is the minimum weight and value that will apply to proceed shipping without ACI?
Express shipment is exempted from the ACI process, express is defined according to the international agreement and definition of express shipments (max. of 50 kilos and not exceeding 2000USD).
Can the original documents be submitted at the logistic center through a customs clearance officer with an authorization from the concerned person registered on the system?
Yes, as long as the importer or his agent approved the documents, the shipment is carried out using an electronic signature, and the customs release procedures are carried out according to a certificate of origin received electronically.
Can the customs clearance upload data on behalf of the Egyptian company on Nafeza?
Yes, based on the authorization made from the person/company concerned to the clearance company or electronic authorization.
What is the status of goods received from free zones?
They will go through the procedures of ACI filing.
What is the time frame for obtaining the ACID number after sending the application?
The ACID is issued instantly after the request.
Does it apply to orders as small as 200, 300 or even 500 USD shipped by air?
It is exempted in addition to shipments of private use up to 2000 USD and of 50 kilos weight.
Does the HS code need to be placed on invoices?
Yes, according to the executive regulations of Customs Law No. 207 of 2.
Is there coordination with exports and imports and the Food Safety Authority?
There is already an electronic connection to the system with each of the General Organization for Import and Export Control, the Food Safety Authority, the National Authority for Regulating Communications, the Drug Control Department, and the Department of Counterfeiting and Forgery, and the link is successively done with all other authorities.
Has the time and cost of release been compared in countries such as North Africa, the Middle East and neighboring countries?
Yes, comparative studies have been conducted prior to launching the system on air freight.
Companies who are using ACI for sea freight, do they need to create new accounts for air freight?
The existing account can be used for both sea and air freight.
What is the way to deal with shipments that have no ACID number listed and will be re-shipped?
The shipment will not be off loaded and will be reshipped on exporter’s expense. The provisions of Customs Law No. 207/2020 will be applied in this case.
