| Qualifying Industrial Zones (QIZs) |
 |
Overview
The QIZ protocol is a trade arrangement between Egypt and the US granting all
products manufactured by public or private, small or large factories, located
within the seven designated qualifying industrial zones in Egypt, and
satisfying the required rules of origin, an immediate free access to the US
market without any custom duties or quota restrictions. The QIZ protocol was
signed in December 2004 and its implementation phase started in February
2005.
There are currently 7 QIZs located within 3 geographical areas namely:
- Greater Cairo (South Giza, Nasr City, 10th of Ramadan City, 15th of May
City)
- Alexandria (Alamreya - Borg Alarab)
- Port-Said.
For a product to qualify for such preferential agreement, the project must be
located within the 7 designated qualified zones and 35% of its final product
must be produced locally. Any project located within these 7 designated zones
may or may not export to the US under this protocol depending on the owners'
preference. QIZs are expected to drive further an already robust textile and
garment industry and to encourage its feeding sectors.
Protocol Advantages:
Duty free access to the US Market - Simple requirements to benefit from the
free access - All products benefit from the free access - Flexible application
of the requirements - No quotas on exported products - Open ended validity of
the protocol.
While this protocol is a non-reciprocal arrangement between Egypt and the
United States, it is expected to be a step towards a Free Trade Agreement (FTA)
between the two countries.
For more details, you may refer to
www.qizegypt.gov.eg
|