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27/12/2017 - 18:33hs

New certificate required to sell to Egypt

The Mercosur Certificate of Origin does not eliminate the need for document certification by the Arab Brazilian Chamber of Commerce and legalization by Egypt’s embassy or consulate general.

São Paulo – With the entry into effect of the Mercosur-Egypt Free-Trade Agreement last September, Egyptian authorities now require a new type of certificate from exporting parties. This Mercosur Certificate of Origin does not, however, eliminate the need for certification by the Arab Brazilian Chamber of Commerce or for document legalization by the Embassy of the Arab Republic of Egypt in Brasília or the Consulate General of Egypt in Rio de Janeiro.

Arab Chamber CEO Michel Alaby explains that the Mercosur Certificate of Origin entitles Egyptian importers to tax breaks provided for in the trade agreement that became effective in September. “This certificate attests that at least 60% of the contents of goods shipped to Egypt from Brazil or any other Mercosur countries were sourced from one of the bloc’s four countries. This entitles importers to tax discounts,” he says. This certificate is the only way importers can pay less or no taxes, depending on the goods at hand.

On the other hand, Arab Chamber document certification as well as legalization from the Egyptian diplomatic bodies in Brazil – which predated the Mercosur-Egypt agreement – are still needed, according to Alaby. “The Arab Chamber will review 26 different aspects in each document it certifies,” he notes. “Afterwards, the Embassy in Brasília or the Consulate in Rio de Janeiro will legalize these export papers,” he explains.

According to Alaby, goods will not be cleared at Egypt’s customs without either of these papers. “One of the certificates will get you tax breaks; the other one enables goods to get into the country,” the CEO said. The Mercosur Certificate of Origin is issued by accredited organizations.

For additional inquiries, exporters can get in touch with the Arab Brazilian Chamber Certification Department at certificacao@ccab.org.br or +55 11 3154-3200.

*Translated by Gabriel Pomerancblum

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