1. Basic situation

The Arab Republic of Egypt (Egypt for short) is located in northeastern Africa, located at the transportation hub of Europe, Asia and Africa, and is a shortcut to the sea route between the Atlantic Ocean and the Indian Ocean. Cairo, the capital of Egypt, has a land area of approximately 1 million square kilometers. According to statistics from the International Monetary Fund, Egypt's GDP in 2024 will be US$380 billion, with a growth rate of 3.5%. The population is about 107.3 million, and the per capita GDP is US$3570. China is Egypt's largest trading partner. According to statistics from China Customs, in 2024, the bilateral trade volume between China and Egypt will be US$17.38 billion, a year-on-year increase of 9.9%. Among them, China's exports to Egypt were US$16.80 billion, a year-on-year increase of 12.5%; China's imports from Egypt were US$580 million, a year-on-year decrease of 34.5%. In recent years, China has firmly established its position as Egypt's largest trading partner and is also one of the countries with the most active and fastest-growing investment in Egypt. The Suez Canal Economic Zone is an important destination for China companies to invest and develop businesses in Egypt.

Egypt's main resources are oil, natural gas, phosphates, iron, etc. In addition to manganese, coal, gold, zinc, chromium, silver, molybdenum, copper and talc. Egypt's proven oil and natural gas reserves rank fifth and fourth among African countries respectively. The average daily output of crude oil reaches 711,500 barrels, and the daily output of natural gas reaches 168 million cubic meters. The amount of natural gas consumed domestically accounts for 70% of the total natural gas output, and the remaining 30% is for export.

2. Automobile market situation

Egypt is a left-hand car country, with about 70 cars owned by 1,000 people. According to statistics, new car sales in Egypt in 2024 will be 102,000, a year-on-year increase of 13.16%. The five most popular brands in Egypt are Chevrolet, Nissan, Renault, Hyundai and Fiat.

In recent years, the Egyptian government has continuously promoted the development of the new energy vehicle industry. At present, the Egyptian government has begun to implement the plan for mass production of electric vehicles in 2024, striving to achieve nearly 100% of locally purchased components in the next two years. The Egyptian government has also introduced measures to invest about US$1.5 billion to expand the country's electric vehicle manufacturing plants and charging stations. At present, Egypt's electric vehicle industry is still in its infancy, and the penetration rate of electric vehicles is relatively low. With the Egyptian government's implementation of the localization policy of electric vehicles and the gradual improvement of infrastructure, Egypt's electric vehicle market is expected to usher in rapid development period.

2017-2024 New car sales in Egypt in 2009

Data source: China Automobile Industry Information Network

3. Policies and regulations on used car import

1. Import policy

Egypt only allows the import of left-hand vehicles, and entities importing used cars must obtain commercial registration (importer) or professional license (individual). In terms of imported vehicles, passenger cars are only allowed to import hybrid used cars, pure electric used cars and used passenger cars for disabled people equipped with medical equipment produced in the past three years. Commercial vehicles, except for large transport vehicles, can be older than 10 years old. In addition, other commercial vehicles require a vehicle age of less than 10 years. Starting from July 1, 2021, used cars exported to Egypt must complete CargoX registration, otherwise, used cars will be returned and fined. At the same time, in order to encourage the development of new energy vehicles, Egypt exempts tariffs on imported pure electric used vehicles.

2. Tax policy

Different types of used cars in Egypt are subject to different taxes and fees. The specific taxes and fees are as follows:

(1)Pure electric used vehicles: exempt from tariffs, development fees, planning taxes and other tax items, and only 14% value-added tax is levied.

(2)Hybrid used cars: Different taxes and fees are levied depending on the engine displacement.

(3)Special vehicles for disabled people: exempt from value-added tax, customs duties, etc., and only pay 3% of the development fee.

(4)Commercial vehicles: Tariffs ranging from 3% to 60% are levied based on factors such as vehicle type and vehicle age. Other tax items such as value-added tax are also required.

3. Documents required for import

● Import license number

● Business ID

● Tax ID

● Business tax registration certificate

● Registered as a trader at the customs

● The invoice and certificate of origin are certified by the Egyptian Ministry of Foreign Affairs, Embassy and other relevant departments

Source: "China's Used Car Export Country Guide 2024"

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