FILE PHOTO - Parked cars are pictures at the car terminal at the port of Valencia, Spain May 29, 2018. Picture taken May 29, 2018. REUTERS/Heino KalisCAIRO – 6 December 2018: Disputes have spread amongst Egyptians about the prices of European cars after the final exemptions of customs in January.The custom cuts of European cars come after Egypt started implementing the trade cooperation agreement with the European Union in 2010 as part of the Egyptian-European Agreement, so European car customs have begun to decline gradually.The agreement, which came into force in mid-2004, stipulates establishing a free trade area during a transitional period of 12 years. It also liberalizes the Egyptian imports of industrial goods with European origins in a period of up to 16 years.Egypt used the right to postpone the reduction twice in the previous year and by the start of 2019, customs will be reduced to hit 0 percent for all cars and Europe’s supply of all engine capacities.Egypt Today reviews factors that determine the final sale price of cars in Egypt After cutting customs on European cars, including taxes and fees.These factors include the dollar rate, the custom dollar, schedule taxes, development fees and most importantly agents’ profit margins.The price of imported cars depends on the exchange rate of the US dollar against the Egyptian pound, as the dollar is the currency of the international settlement of all external obligations of countries. 147 of 1984 concerning the imposition of a fee for the development of the state's financial resources, including imported cars, on the basis of the value of the car, in addition to the customs tax and value added tax and other taxes and fees.This margin has no rules or constants because it is subject to the rules of supply and demand in the local market, so it is a relative factor determined by the agent only.

Source: Egypt Today December 06, 2018 10:52 UTC