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Total 29,305,151 14,425,977 43,731,128 67.01 32.99<br />

Source: Obtained from www.capmas.gov.eg.<br />

3.1 Summary of interviews<br />

Twenty-two firms belonging to seven main sectors were asked about their experience<br />

with EU rules of origin. The sectors covered by the interviews included: food and<br />

beverages, textiles and ready-made garments, leather and footwear, building<br />

materials, chemicals, furniture, and engineering industries. Although it is a small<br />

sample and does not reflect the size of the manufacturing sector or the exporting firms<br />

in Egypt, the interviewed firms are the largest private sector exporters to the EU. In<br />

many cases the owners of these firms are the head of the export councils of the sector<br />

to which these firms belong. Top management and export managers in these firms<br />

were interviewed. Annex 2 includes a listing of the name of interviewed firms<br />

together with some background information such as their size in terms of capital and<br />

number of employees.<br />

A summary of the interviews follows:<br />

Certification of Origin:<br />

The majority of respondents claimed that they do not face any problem regarding<br />

certificates of origin. Several reasons could explain these responses, though it was not<br />

possible to distinguish between these:<br />

• Firms are using 100 percent domestic inputs (unlikely).<br />

• Firms do not export to the EU because they cannot access the EU market for<br />

other reasons than ROO. These reasons could include the difficulty to comply<br />

with sanitary requirements or due to price constraints or lack of knowledge<br />

about consumers’ tastes.<br />

• Some firms are approved exporters; consequently they do not worry much<br />

about certificates of origin.<br />

• Proving origin is mainly the responsibility of the importers who benefit from<br />

the preferential treatment. Exporters are only responsible for issuing the<br />

certificate of origin, which is approved by GOEIC. GOEIC does not verify<br />

origin status; it takes what exporters certify as a fact, unless something looks<br />

very suspicious 4 , or if it receives a complaint from the importing country’s<br />

customs authorities.<br />

• Tariff rates imposed on certain goods are low and therefore importers are not<br />

concerned about proving origin and are willing to pay import tariffs instead of<br />

imposing ROO requirement o exporters.<br />

• In many cases, exporters are producing goods according to direct orders from<br />

EU importers and comply with their requirements. A good example could be<br />

exporters of ready-made garments, who receive designs, fabrics, accessories,<br />

4 In one case an exporter was trying to export imported apple to an Arab country as originating in Egypt. GOEIC was suspicious because<br />

Egypt does not export apples and it was off-season.

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