The Central Bank of Egypt and Trade and Industry Ministry could allow importers who are not able to retrieve a Form 4 customs document to pay six-month open letters of guarantee in exchange for the immediate release of their shipments, two unnamed governmental sources told Bloomberg Asharq.
The people said that the two sides are currently discussing the move, which would be the latest in a series of measures designed to ease pressure on importers brought on by the central bank’s import restrictions introduced earlier this year to keep foreign currency in the country.
Form 4? Form 4 is an important customs document importers submit to banks to release their goods. The paper represents a pledge to pay, allowing the bank to provide either a letter of credit (L/C) or to finalize the process of documentary collection.
What this would mean for importers: Should the central bank and the Trade Ministry reach an agreement, goods still stuck in Egypt’s ports will be released with banks required to provide FX to pay for the shipments within six months, the business newswire said. Clearing the ports will likely take between two and three months, Alaa Ezz, secretary-general of Federation of Egyptian Chambers of Commerce (FEDCOC), told Kelma Akhira’s Lamees El Hadidi last night (watch, runtime: 6:52).
