Ministry of Supply Amends Decision

On 11 January 2018, the Egyptian Gazette published decision No. 330 0f 2017 issued by the Ministry of Supply and Internal Trade on 13 December 2017 (the “Decision 330/2017”).[1] Decision 330/2017 amends an earlier decision that had obligated companies to clearly print the price of produced, imported and packaged food commodities on each item. The new decision mandates that producers, importers, and manufacturers of food products instead issue sale invoices that contain clear data showing factory price, the suggested price for the consumer, as well as product quantity and facts in accordance with the rules of tax invoicing under the applicable laws.

Background

On 10 October 2017, the Egyptian Gazette published decision No. 217 of 2017 issued by the Minister of Supply and Internal Trade on 31 July 2017 (“Decision 217/2017”).[2] Decision 217/2017 had obligated all entities that produce, import, or package food commodities to clearly type the price on each item in Arabic in a manner that may not be erased or removed. Entities that handle the trade, distribution, or storage of these goods were prohibited from handling items which do not contain clear indication of selling price. Said entities were given a grace period (ending on 31 December 2017) to comply with this decision or face penalties under Law No. 163 of 1950 on Compulsory Pricing Law.

Decision 330/2017

In addition to amending the obligation of food manufacturers and importers from price-printing to issuing sales invoice containing true data for each product – including factory price, and suggested consumer sale – Decision 330/2017 amends Article (2) of Decision 217/2017. It states that outlets and points of sale and are now obliged to reveal the consumer sale price clearly in the Arabic language so that the prices are clearly visible on all food items. In addition, it obligates these outlets to sell at the announced price. Pricing must not be erasable and could be on the package itself or its wrapping, or using stickers. A new Article in Decision 330/2017 requires retailers and distributors of local and imported goods to retain all documentation that proves how they have come to be in possession of the goods (i.e. the source of the goods, whether they were obtained from another distributor, and importer or directly from the manufacturer etc.). Decision 330/2017 further prohibits the sale of goods the origin of which is unknown or for which there is no supporting documentation. Furthermore, suppliers are required to present to the distributor, retailer, or consumer an invoice proving the manner in which they have been contracted to handle the product, where the date of said contracting, the price of the commodity, its quantity and nature are explicitly identified. Finally, Article (4) of Decision 217/2017 was amended. Instead of stating that any violation of the decision will be punishable in accordance to Article (9) of Law No. 163 of 1950 on Compulsory Pricing, Decision 330/2017 now states that any violation will be punishable “in accordance with the applicable laws”. Interestingly, Decision 330/2017 states that it is to come into effect starting 1 January 2018. However, Article (3) of the original Decision 217/2017 has not been amended and it still reads that the grace period for applying the new rules ends on 31 December 2017. It is therefore not entirely clear if there is another grace period for the implementation of the decision after amendment as has been announced in the media.   [1] Minister of Supply and Internal Trade Decision No. 330/2017 amending certain provisions of Decision No. 217/2017 obligating all bodies and companies that produce, import, or package food commodities to clearly type the price on each item in Arabic in a manner that may not be erased or removed, Egyptian Gazette, Issue No. Issue No. 9, 11 January 2018. [2] Minister of Supply and Internal Trade Decision No. 217/2017 obligating all bodies and companies that produce, import, or package food commodities to clearly type the price on each item in Arabic in a manner that may not be erased or removed, Egyptian Gazette, Issue No. 227, 10 October 2017.