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Simplification of Industrial Licens

Simplification of Industrial Licenses: The Minister of Industry and the Chairman of the Industrial Development Authority Support Decentralization
In the first week of January of this year, two decrees were issued by the Minister of Trade and Industry and by the Chairman of the Industrial Development Authority (respectively Number 1055 of 2008 and 353 of 2008). The first was entitled “Decree for the Simplification of Procedures to Deal with the International Financial Crisis”, but has little to do with it. In fact, both Decrees provide for simpler procedures for issuing industrial licenses. The process needs to be understood with reference to a previous decree issued by the Minister of Trade and Industry in October of last year (Number 825 of 2008, see October 2008 Egypt Legal Update) which allowed for cer­tain industrial approvals to be issued within one week of submitting the required documents. According to the new rules, the fast-track procedure will apply not only to the Industrial Approval but to the Industrial License and Industrial Registration as well, although only with respect to certain basic industries and provided they are undertaken within industrial zones. Moreover, these approvals and licenses will be issued by all offices of the Industrial Development Agency as well as by those belonging to the Investment Authority (GAFI).
Conclusion
Irrespective of the title of the Ministerial decree which unnecessarily refers to the international financial crisis, both Decrees are quite important and useful. The reason is that in spite of the efforts undertaken in the last few years to simplify investment procedures – especially by the Investment Authority’s One-Stop-Shops since early 2005 – the issuance of industrial licenses remains a major problem, as expressed by investors as well as international ranking reports. The two new decrees provide some relief at least with respect to certain industrial activities. How well the new system is applied in the near future could have a big impact on doing business procedures in Egypt.
In the first week of January of this year, two decrees were issued by the Minister of Trade and Industry and by the Chairman of the Industrial Development Authority (respectively Number 1055 of 2008 and 353 of 2008). The first was entitled “Decree for the Simplification of Procedures to Deal with the International Financial Crisis”, but has little to do with it. In fact, both Decrees provide for simpler procedures for issuing industrial licenses. The process needs to be understood with reference to a previous decree issued by the Minister of Trade and Industry in October of last year (Number 825 of 2008, see October 2008 Egypt Legal Update) which allowed for cer­tain industrial approvals to be issued within one week of submitting the required documents. According to the new rules, the fast-track procedure will apply not only to the Industrial Approval but to the Industrial License and Industrial Registration as well, although only with respect to certain basic industries and provided they are undertaken within industrial zones. Moreover, these approvals and licenses will be issued by all offices of the Industrial Development Agency as well as by those belonging to the Investment Authority (GAFI).
Conclusion
Irrespective of the title of the Ministerial decree which unnecessarily refers to the international financial crisis, both Decrees are quite important and useful. The reason is that in spite of the efforts undertaken in the last few years to simplify investment procedures – especially by the Investment Authority’s One-Stop-Shops since early 2005 – the issuance of industrial licenses remains a major problem, as expressed by investors as well as international ranking reports. The two new decrees provide some relief at least with respect to certain industrial activities. How well the new system is applied in the near future could have a big impact on doing business procedures in Egypt.