ministry of industry & trade and smes. qiz background

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Ministry of Industry & Trade and SMEs

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Page 1: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

Page 2: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Background

Page 3: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Definition

QIZ are industrial parks housing manufacturing operations in Jordan and Egypt.

They are a special FTA established in collaboration with neighboring Israel to take advantage of the free trade agreements between the United States and Israel.

Under the trade agreements goods produced in QIZ-notified areas can directly access US markets without tariff or quota restrictions, subject to certain conditions.

To qualify, goods produced in these zones must contain a small portion of Israeli input. In addition, a minimum 35% value to the goods must be added to the finished product

Page 4: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

HISTORYReinforcing peace in the Middle East through regional

economic partnerships

12/1996

US issued the decree 6955 authorizing duty-free entry into the US for industrial products originating in Egypt and manufactured jointly with Israel, in compliance with the international rules of origin. 

1999, Jordan signed a QIZ protocol

14/12/2004

Egypt signed the QIZ Protocol with the US and Israel. The Protocol allows for duty-free entry into the US for products manufactured by qualified companies operating within designated geographic locations in Egypt which satisfy the currently agreed upon Israeli content of 11.7%.

Page 5: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

QIZ Overview

Section 7 of the U.S. – Israel Free

Trade Area Implementation Act Presidential

Proclamation 6955

Protocols between Egypt

and Israel

1-Increase employment

opportunities in

2-Stimulate participating economies

3-Promote collaboration

between Egypt and Israel

Page 6: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ General information

Page 7: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

US Requirements

The article is a “new and different article of commerce” produced in QIZ

It is “imported directly” into the United States

The sum of the cost or value and the direct costof processing in Egyptian QIZ and Israel is not less than 35%of the article’s US entered value

Up to 15% of the article’s value may be U.S inputs that contribute to the total 35% requirement. Page 7

Egypt – Israel Protocol Requirements

The remainder of the 35% can come from West Bank, Gaza Strip, Israel,

the QIZ, or as mentioned, the

U.S.

The Israeli components must contribute 10.5%

Egyptian manufacturer

in the QIZ must contribute one third (11.7%) of

the 35% content

requirement

QIZ Requirements

Page 8: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

The Accurate factory should get a QIZ certificate issued from the Joint Committee to start work

Current lists http://www.qizegypt.gov.eg/images/attachment.ashx.pdf

QIZ joint committee, comprises of

representatives from Egypt and Israel.

Provide lists of QIZ companies whose

products are eligible for QIZ treatment

Page 8

Participating Factories

Page 9: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

QIZ Map

Page 9

Page 10: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Greater CairoGizaShubra Al Kheima,Nasr City,10th Ramadan City15th May City ,Badr City

6th October City ,Obour CityKalyoub City andIndustrial Area in Gesr El Suez.

Alexandria

Middle Delta GharbiaDakahlyaKafr El-sheikhKafr El-Dawar City

MonofiaDamiettaDemanhour City

Suez Canal Area Port SaidIsmailiaSuez

Upper Egypt Al MinyaBeni suef

Geographic Coverage Area

Page 11: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Companies Profile

Page 12: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Distribution of listed companies by location * till end of July, 2015

Location Freq.Alexandria 13110th of Ramadan 93Shoubra El Kheima 54Port Said 33 Nasr City 29Other Cairo Area 36Gharbeyya Govr. 38 6th of October 23Ismailia 18 South Giza 16 Monofeya Govr. 21 El Obour 2015th May 8Kalioub 13Gesr Suez 7Giza 12 Suez 4 Dakahleyya Govr. 5Badr City 2Damietta Govr. 2Beni Suef Govr. 18Minya Govr. 14Qualifying Factory 3

Grand Total 600

Page 13: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 13

Distribution of listed companies by labor (Total no. of workers) * till end of July, 2015

Worker.Category Freq. More than 300 206 Less than 50 101 50 - 99 96 100 - 149 70 150 - 199 38 N.A 31 200 - 249 30 250 - 299 28

Grand Total 600

Page 14: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 14

Distribution of listed Export companies by location in 2014

Location Freq.Alexandria 4410th of Ramadan 21Port Said 16Other Cairo Area 10 El Obour 9Ismailia 8Shoubra El Kheima 8 Monofeya Govr. 5 South Giza 5 Nasr City 4 6th of October 4Minya Govr. 3Kalioub 3Beni Suef Govr. 2Gharbeyya Govr. 215th May 2Qualifying Factory 1 Dakahleyya Govr. 1Gesr Suez 1Giza 1 Suez 1

Damietta Govr. 1

Grand Total 152

Page 15: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 15

Distribution of listed companies by Capital & Investment (EGP) * till end of July, 2015

Distribution of listed companies by capital (EGP)

Distribution of listed companies by investments (EGP)

Page 16: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Exports & Imports

Page 17: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 17

Export & Import Progress by Quarter* From 2014 till end of 1st Quarter 2015

Page 18: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Export & Import Progress by Year* till end 2014

Page 18

Page 19: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 19

QIZ Statistics

Exports and Imports Value From 22/2/2005 Until 31/03/2015*(value in Million US$)

Textile & RMG Exports Value

Products

Food Value Exports Products

Total Exports ValueTotal

Imports Value

Total 2005 288.3 0.207 288.6 36.0Total 2006 636.0 1.155 637.2 73.7Total 2007 688.3 0.553 688.8 80.4Total 2008 743.4 0.954 744.4 78.6Total 2009 761.1 2.392 763.5 80.3Total 2010 855.7 2.508 858.2 90.4Total 2011 924.1 7.511 931.6 97.5

Total 2012 880.6 4.1 884.7 93.0

Total 2013 820.4 3.2 823.6 77.7Total 2014 816.7 7.5 824.3 89.7Q1 2015 213.6 1.7 215.2 21.5

Grand Total 7,628.2 31.9 7,660.1 818.9

Page 20: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 20

QIZ Exports by Products

Page 21: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 21

Top 10 US Buyers …

Page 22: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

10.5% Israeli Content Imports

Page 23: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 23

Imports from Israel by Products

Page 24: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

Future of the QIZ Protocol

Page 25: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

New strategy of QIZ Unit

Page 25

Expanding the QIZ Protocol

Horizontal

Adding

New companies in Upper Egypt

Joining

New Areas In Delta and

other northern Governorates

Sectoral

Diversifying

the benefiting Industrial sectors from the QIZ by

Add food sector & Leather sector

Page 26: Ministry of Industry & Trade and SMEs. QIZ Background

Ministry of Industry & Trade and SMEs

QIZ Unit

Ministry of Industry & Trade and SMEs

Page 26

Distribution of listed companies by sector