Egypt expands list of exports requiring advance foreign currency payment

Daily News Egypt

22-06-2025

The Ministry of Trade and Industry has issued Ministerial Decree No. 273 of 2025, expanding the list of export goods that require full advance payment in convertible foreign currency. The decree, issued by the Foreign Trade and Agreements Sector and delivered to the Egyptian Customs Authority on January 18, 2025, was published in Issue No. 236 of the Egyptian Gazette.
Under the new directive, exporters must ensure that payments are settled in full prior to shipment using approved methods, including documentary credit (covering the full value), pre-shipment bank transfers, or other secure financial instruments. A bank certificate confirming receipt of funds must also be submitted to the customs authority before the goods are cleared for export.
The Customs Authority has been instructed to circulate the decree across all customs ports for immediate enforcement.
Commenting on the development, Ahmed Zaki, Head of the Exporters Division, affirmed that verifying export payments through Egyptian banks is a long-standing and essential requirement—particularly for companies seeking access to government export subsidies. 'This policy ensures transparency and confirms that the proceeds from exports are properly returned to Egypt's banking system,' Zaki said.
He noted that the scope of this regulation has recently been widened to include a broader array of goods, with the aim of curbing financial leakage and ensuring the repatriation of foreign currency generated through exports. 'The goal is simple: to guarantee that export revenues contribute directly to Egypt's economy, rather than being held in offshore accounts. This is vital for maintaining economic stability.'
Zaki clarified that the regulation is not intended to restrict trade but rather to reinforce integrity within the export sector and combat fraudulent practices such as phantom exports—where goods are reported as shipped without any actual financial return to the country. 'This is not a trade barrier,' he stated. 'It is a safeguard to ensure that Egypt reaps the full benefits of its export performance. It is both reasonable and necessary for any country to ensure that its export earnings are channeled back into its economy.'
The updated measure aligns with global standards in trade finance and is part of a broader strategy to support Egypt's ongoing economic reforms. By enhancing oversight of foreign exchange flows, the regulation aims to promote currency stability, strengthen financial transparency, and ensure that export activities serve the national interest.