In short
- Machinery duty depends on your regime: a unified 2% customs duty for inland projects, exemption in free zones, and 0% on materials and tools for construction and operation in SCZone.
- VAT on machinery imported for industrial production is deferred for a year and waived if the machines are used in production during that time.
- Every shipment needs an ACID number from Egypt's advance cargo system (Nafeza) before it is shipped.
What this stage involves
Construction or fit-out. Build to the permit from Stage 6 and keep to the land milestones from Stage 5 — on IDA land, foundations within 12 months and construction within 18. If you bought or leased an existing factory, plan the fit-out around the machinery layout and the utility capacity you confirmed in Stage 6.
Importing machinery — duties. Under the Investment Law, inland projects pay a unified 2% customs duty on machinery and equipment. Free-zone projects import machinery and inputs free of customs duties and taxes. SCZone projects pay 0% customs on the materials and tools needed for construction and operation.
Importing machinery — VAT. Under Article 28 bis of the VAT Law (No. 67 of 2016), VAT on machinery imported for licensed industrial production is deferred for one year from customs release, extendable once. If the machines are used in production during that period, the tax is waived; if they are sold or put to other use within five years, the tax becomes due. You will need a certificate from the technical authority confirming the machines are for licensed industrial production.
Advance cargo registration (ACI). Under Minister of Finance Decision No. 38 of 2021, the importer registers each shipment on the Nafeza platform and receives a 19-digit ACID number before shipping; the foreign supplier uploads the invoice, packing list and certificate of origin on the CargoX platform. The ACID must appear on the bill of lading. A customs broker can do this for you.
Used machinery. If you plan to import second-hand machines or production lines, check the current rules with the authorities before you buy.
Contractors and agents. Choose contractors with industrial experience, and machinery agents who can install, train your technicians and stock spare parts locally.
Your checklist
Tick as you goWho you deal with
| Organisation | What they help with | Official site |
|---|---|---|
| Egyptian Customs Authority | Customs clearance and duties | — |
| Nafeza (national single window for trade) | Advance cargo registration and ACID numbers | — |
| Egyptian Tax Authority | VAT deferral on industrial machinery | — |
How long it takes
Typical, not guaranteedCommon questions
Do I pay VAT on imported machines?
For machinery imported for licensed industrial production, VAT is deferred for a year and waived if the machines are used in production.
What is an ACID number?
A 19-digit number your shipment must have before it is shipped to Egypt; without it, the goods cannot be cleared.
Can Egytex manage the build?
Yes. The Full Setup package includes coordinating contractors, machinery agents and clearance.
Sources & review
- Andersen Egypt — Investment Law No. 72 of 2017 summary (2% unified duty)
- Middle East Briefing — Egypt's public free zones explained (29 Aug 2025)
- DLA Piper — Investment considerations in the Suez Canal Economic Zone (4 Feb 2026)
- Andersen Egypt — Tax deferral and exemption for imported machinery (17 Jul 2024)
- AHK Egypt — FAQs on the Advanced Cargo Information system
- Ahram Online — Egypt's 1st industrial land offering (land milestones)