Egypt to set­tle EGP 700m worth dis­pute be­tween cus­toms, Mercedes-Benz im­porter

Mercedes-Benz looks for­ward to re­sume ac­tiv­ity, pro­duce new mod­els in Egypt soon: Sch­ef­fer

The Daily News Egypt - - News - By Fatma Elkholosy

A com­mit­tee from the min­istry of fi­nance has been formed to set­tle the in­vest­ment dis­pute be­tween the Egyp­tian Cus­toms Author­ity (ECA) and a lo­cal agent of Mercedes-Benz re­gard­ing the eval­u­a­tion of the im­ported ve­hi­cles, ac­cord­ing to a state­ment from the min­istry.

The Min­is­ter of Fi­nance, Mo­hamed Moeit, said that an agree­ment has been reached about the mech­a­nism of solv­ing the dis­pute which was worth more than EGP 700m.

He stressed the min­istry’s keen­ness to set­tle any tax or cus­toms dis­pute with the aim of sta­bil­is­ing the fi­nan­cial and tax po­si­tions of com­pa­nies op­er­at­ing in Egypt.

Moeit pointed out that this agree­ment comes within the frame­work of Egypt’s ap­proach to solve the prob­lems of ex­ist­ing in­vestors, at­tract­ing new for­eign and do­mes­tic in­vest­ments, and im­ple­ment­ing the po­lit­i­cal lead­er­ship’s in­struc­tions to im­prove the busi­ness cli­mate.

The rep­re­sen­ta­tive of Mercedes-Benz agent in Egypt said his com­pany will con­tinue in­ject­ing in­vest­ments in Egypt and cre­at­ing jobs op­por­tu­ni­ties.

The his­tory of this dis­pute goes back when Mercedes-Benz de­clared in 2015 the sus­pen­sion of its ve­hi­cle assem­bly ac­tiv­ity in the Egyp­tian mar­ket, and would be eco­nom­i­cally in­ef­fi­cient on the long-term due to the im­ple­men­ta­tion of the Egyp­tian-Euro­pean As­so­ci­a­tion Agree­ment which was signed in 2001.

The agree­ment stip­u­lates that Egypt will ap­ply a 10% re­duc­tion of cus­toms du­ties an­nu­ally on cars im­ported from the Euro­pean Union start­ing from 2010, so the Egyp­tian Ger­man Au­to­mo­tive Com­pany and Daim­lerAG saw that the assem­bly ac­tiv­ity in the Egyp­tian mar­ket will be eco­nom­i­cally in­ef­fi­cient.

They be­lieve that this agree­ment will not keep up with the global change in the mod­els to turn from the cur­rent gen­er­a­tion to the next one in 2014 and 2015.

Markus Sch­ef­fer, head of the in­ter­na­tional pro­duc­tion sec­tor at Mercedes-Benz, said dur­ing a meet­ing on Fri­day with the Egyp­tian Prime Min­is­ter Mostafa Mad­bouly that the com­pany is look­ing for­ward to re­sum­ing its ac­tiv­ity in Egypt soon, not­ing that they are con­sid­er­ing the pro­duc­tion of new mod­els in Egypt.

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