The Government of Egypt, through its Egyptian Customs Authorities, has made mandatory Advance Cargo Information (ACI) declarations with its new Egyptian Customs law #207 for all cargo inbound to Egypt starting on 1 July 2021. The process is managed through the National Single Window for Foreign Trade platform  (NAFEZA), built by Misr Technology Systems (MTS), and CargoX is authorized as the blockchain document transfer gateway service provider.

Nafeza single window platform by MTS

Misr Technology Services “MTS” set up the National Single Window for Foreign Trade platform (Nafeza) under the mandate of the Ministry of Finance of Egypt in 2020. MTS has now been mandated to design an ACI documentation process, and the CargoX Platform for Blockchain Document Transfer (BDT) has been authorized as the blockchain service provider for immutably registering and transferring the shipping documents with Ethereum technology.

MTS implemented a national platform that covers Egyptian airports, seaports, land ports, dry ports, and free zones in compliance with international standards and best practices.

The National Single Window for Foreign Trade Facilitation “NAFEZA” is an integrated information platform. It was built to integrate and coordinate procedures and information exchange between all parties involved in Egypt’s foreign trade system. It allows the business and the trade community to submit all documents and transactions for customs, control authorities, and ports.

The data is submitted only once through an online portal to fulfill all regulatory requirements related to the release of goods. The platform operates in accordance with the international standards of trade-related procedures and customs requirements for the clearance of goods, to convert Egypt into “One Logistical Area”. ACI filing is just one of the numerous services provided by NAFEZA.

Captain Ossama Al Sharif, CEO and Chairman of MTS said, “Egypt is proud of its maritime heritage, and we see technological advancements as a driving force of global trade and shipping security, and digitalization and data visibility are essential for better efficiency and transparency.

These two leading technological companies working hand in hand will offer a revolutionary solution for the whole region,” Al Sharif explained.

Mr. Stefan Kukman, CEO of CargoX said, “We are proud to have been chosen by MTS as a strategic partner to provide the key neutral blockchain technology for improving security in the global trade lanes that run through Egypt,” and added, “we believe this is the beginning of a great partnership.”

Mr. Gamal Kotb, General Manager of Misr Technology Systems said, “We have built the single window system (Nafeza) for trade facilitation in record time, relying on technology and service providers such as CargoX.”

Kotb added: “We believe blockchain technology is changing many industries at once – and we are proud that Egypt is yet again a global innovator and a key reference for modernization.”

Mr. Vjeran Ortynski, Chief Business Development Officer at CargoX said, “Governments and companies with a strong digitalization agenda are showing the way for all the rest to follow while gaining a strategic advantage.”

Ortynski continued “The Advance Cargo Information functionality builds on the immutability and tamper-proof concept of our public blockchain technology while providing real-time transparency and auditability where it naturally fits – in moving goods between countries or continents”.

Egypt leading the way

Egypt, the most populous country in the Middle East, has traditionally been a key state in the global shipping industry. It provides a vital artery to global trade, namely the Suez Canal. The country is strategically developing its maritime transport sector with the most advanced modern technologies to serve the average container port throughput of approximately 6.5M TEU.

The Government of Egypt is one of the first in the world to implement ACI with the use of blockchain technology in such a way to exhibit unparalleled dedication to technological advancement in the maritime shipping industry and customs clearance technology.

ACI processing with the CargoX Platform

CargoX has upgraded its award-winning CargoX Platform for Blockchain Document Transfer (BDT) with Advance Cargo Information manifestation capabilities according to the requirements of the WCO SAFE Framework-compliant process, as introduced by the Government of Egypt.

For the needs of the Egyptian Customs Authority and in partnership with MTS, CargoX will act as a gateway for blockchain document transfer, including ACI declaration envelopes, bills of lading, and other original documents required.

Using the CargoX Platform for ACI allows customs authorities to stop relying on declarations from importers. Instead, each document can be easily traced back to its origin, directly to the issuer, thanks to the CargoX technology based on the public blockchain.

ACI filing price shall be set at USD 50.00, with a grace period until the end of April 2021, and the fee applying as of May 1st, 2021.

Egypt ACI requirement provisions

The Egyptian Customs Authority, part of the Ministry of Finance, has put into effect the new Egyptian Customs law #207 in November 2020.

The ACI declaration shall be made mandatory as of 1 July 2021. Once registered on the NAFEZA platform, companies involved in the shipping process can receive the Advanced Cargo Information Declaration number (ACID). The ACID shall be stipulated on all shipping documents sent through the CargoX Platform, as well as the identification numbers of the parties to the bill of lading.

If the ACID is not included in the shipping documents, the goods will not be cleared and will be returned without discharge at the Egyptian ports.