Unique market access
Duty Free Market Access
The Qualifying Industrial Zones (QIZ) Protocol was established by the U.S. Congress in 1996 to build economic ties between Israel and its neighbors, which allows products jointly manufactured by Egypt and Israel duty-free entry into the U.S. Egypt is one of a few countries which can promise duty free access to the US, the world’s largest consumer market, for all products manufactured in its Qualifying Industrial Zones (QIZ). The tariff exemption applies to all products.
Simple and Flexible Requirements
As per the rules of origin, manufacturers must ensure that 35% of the product’s value be manufactured in an Egyptian QIZ.
Competitive Factor Costs
Operating in Egypt affords investors/ manufacturers economic input costs relative to other countries with similar market access.
No export quotas
Exports are neither limited by minimum/maximum quotas on quantities, nor by seasonal requirements. There are over 1,000 registered QIZ companies, of which the vast majority produce textiles and clothing items. Because U.S. tariffs on textile and apparel goods are relatively high, production of these goods in QIZs is particularly attractive.
QIZ exports made up 35% of Egypt’s total exports to the U.S. and 53% of non-oil exports. In 2018, QIZ exports totaled USD 877.9 million, a 17% year-on-year increase from USD 751.7 million in 2017.
Textile and clothing exports represented 96% of all of Egypt’s QIZ exports in 2018. Egypt is aiming to increase QIZ exports by nearly 15% to USD 1 billion in 2019.
