Technical Assistance for Policy Reform II

The project's work program aimed to streamline and reform customs procedures to support the development of Egypt's international trade. A new Customs Law conforming to international standards and best practices was a key initiative undertaken by TAPR II. The project's customs advisors analyzed the deficiencies of the current Customs Law and Executive Regulations, and recommended the preparation of a completely new Customs Law. The advisors assisted the Egyptian Customs Authority (ECA) Legal Committee in drafting the new law, which was compatible with the World Customs Organization's "Convention on the Harmonization and Simplification of Customs Procedures" (the "Revised Kyoto Convention"). The final revised draft of the new Customs Law was completed and presented to the Minister of Finance in late summer 2008 for review and presentation to the National Assembly. The implementation of streamlined customs procedures was also a key focus of the project. TAPR II supported the development and implementation of automated clearance processes through modern Customs centers and logistics centers at major customs clearance sites in Egypt. These centers provided one-stop customs services and electronic presentation of documents and electronic payment to banks, dramatically reducing clearance times and increasing declaration processing and revenue collection. The project also supported the development and implementation of an interim process for the presentation of electronic manifests to the ECA and other government agencies, simplifying the presentation and processing of shipping data and leading to improved accuracy and more effective enforcement targeting. The project also supported the reorganization and capacity building of the ECA. The ECA was reorganized into a simplified functionally-organized management structure, allowing for greater delegations of authority and increased managerial accountability. TAPR II supported the technical and ethical development of the ECA workforce, providing training in areas such as delegation of authority, business ethics, IT, English language, customs procedures, intelligence and enforcement, customs valuation, tariff classification, and rules of origin administration. The project also supported the development of a curriculum of courses for the National Customs Training Institute (NCTI) in Alexandria. Improved enforcement techniques were also a key focus of the project. TAPR II supported the development of better enforcement techniques in the ECA, including the development of automated risk management techniques and improving on-site inspection techniques. National practical training programs and overseas study tours were undertaken by TAPR II in support of this initiative, providing training for both the traveler and commercial streams. The project's achievements were significant, with the World Bank rating Egypt's improvement in Doing Business across Borders from 86th among countries rated in 2006 to 24th in 2008. However, there were still several streamlined customs procedures that were not yet fully implemented, including enhanced post-clearance audit programs, release on minimum documentation, advance clearance procedures, and advance rulings. These initiatives would need to be followed up on and assessed, especially after the passing of the new Customs Law and the introduction of the National Customs Information System (NCIS).