ministry of industry & trade and smes. qiz background
TRANSCRIPT
Ministry of Industry & Trade and SMEs
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
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%.
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
Ministry of Industry & Trade and SMEs
QIZ General information
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
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
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Participating Factories
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
QIZ Map
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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
Ministry of Industry & Trade and SMEs
QIZ Companies Profile
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
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
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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
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
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)
Ministry of Industry & Trade and SMEs
QIZ Exports & Imports
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
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Export & Import Progress by Quarter* From 2014 till end of 1st Quarter 2015
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
Export & Import Progress by Year* till end 2014
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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
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
Page 20
QIZ Exports by Products
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
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Top 10 US Buyers …
Ministry of Industry & Trade and SMEs
10.5% Israeli Content Imports
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
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Imports from Israel by Products
Ministry of Industry & Trade and SMEs
Future of the QIZ Protocol
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
New strategy of QIZ Unit
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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
Ministry of Industry & Trade and SMEs
QIZ Unit
Ministry of Industry & Trade and SMEs
Page 26
Distribution of listed companies by sector