Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today, I would like to talk about Egypt’s new ACI system for import clearance.
ACI stands for Advance Cargo Information, and it is a new system introduced by the amendment of Egypt’s Customs Law. It was scheduled to be introduced in April 2021 and the operation was on 1st July 2021, but it was postponed and will start on 1st October 2021.
Daily Logistics Radio by IINO san in 24th Sep. 2021
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Two platforms needed for ACI
I would like to introduce two platforms that are key to the operation of this new system.
CargoX Platform
This platform is a document transfer tool that uses the blockchain mechanism. Simply put, blockchain refers to data that cannot be rewritten, which is the necessary technology in the coming era where information security is a priority.
You can upload B/L, Invoice, Packing List and so on to this CargoX Platform to transfer and manage these documents.
Exporters, importers and forwarders are supposed to register, but in reality, it seems that registration is not yet underway.
NAFEZA Platform (the Egyptian Single Window System for foreign trade)
NAFEZA platform must be used for the actual application for ACI.
Importers in Egypt must register with NAFEZA and enter their shipment information into this platform each time. Then, the importer obtains ACID Number, 19 digits number, and sends it to the exporter.
Information required for ACI pre-declaration
The information required for advance declaration of import in Egypt is as follows;
1. ACID Number (19 digits)
2. Importer’s VAT registration number (9 digits)
3. Exporter’s registration number
4. Exporter’s Country of Registration
This information must be sent to the shipping company along with a Shipping Instruction (S.I.).
Timing of ACI Pre-declaration
As shipping companies declare according to the law 24 hours before loading, shippers and forwarders need to submit the declaration earlier than it.
CMA and CGM announced it should be 48 hours prior to ETD and Maersk did 36 hours prior to CY cut, so please check with each shipping company.
In case that you don’t have the above information nor the information is incorrect, there is possibility of:
-Not loading
-Loading back
-Penalty
The purpose of the introduction of ACI by the Egyptian government
The reason why the Egyptian government has introduced ACI (Advance Customs Clearance), even using blockchain technology, is to speed up customs clearance.
According to World Bank, it takes a whopping 240 hours to clear import customs in Egypt. If it takes as many as 10 days to clear one import, it will be a hindrance to trade between Egypt and other countries.
The Egyptian government has set a goal to reduce the customs clearance time to less one day with the new system.
Summary
International logistics regulations are constantly being updated. ACI in Egypt is an effort by the Egyptian government to revitalize trade.
Although there may be a bit of confusion when the new system is first introduced, it will lead to better trade activities in the future.
I am personally looking forward to seeing how the Egyptian government’s new blockchain-based initiative will affect international trade in the future.
