Egypt announced that the exceptional customs exemption for mobile phones imported with a passenger will end on January 21, 2026.<\/p>\n
Egypt will end the customs exemption for mobile phones brought into the country by passengers at midday on 21 January 2026<\/strong>, the customs authority and the National Telecommunications Regulatory Authority said in a joint statement. The change removes a temporary waiver that has allowed travellers to carry one phone without paying import taxes since January 2025.<\/p>\n The measure is designed to support local manufacturing after 15 global phone makers set up production lines in Egypt, lifting annual output to 20 million devices<\/strong>1<\/a><\/sup>. That volume now exceeds domestic demand, the statement said, and the latest models are sold at competitive prices through official retail networks. From next January every phone carried across the border will be subject to the same duties and taxes as commercial shipments.<\/p>\n The delivered cost of a mid-range smartphone will rise by roughly a third. Egypt\u2019s import taxes on electronics combine a 20 % customs duty, a 14 % value-added tax applied to the duty-inclusive value, and a 1 % development fee, producing an effective rate of 36.8 %<\/strong> on the declared value2<\/a><\/sup>. A phone valued at $300 will therefore attract about $110 in taxes, payable through digital wallets or the government\u2019s \u201cTelephony\u201d app within 90 days of first use.<\/p>\n The waiver was introduced in January 2025 as part of a \u201cmobile-phone governance system\u201d that aimed to curb grey-market imports while local production ramped up1<\/a><\/sup>. It allowed each passenger to bring one phone free of duty, provided the device was for personal use. The rule did not apply to commercial shipments, which have always faced the full tax schedule.<\/p>\n Egyptian residents returning from abroad and tourists were given a separate 90-day exemption that remains in place. That concession is capped at one phone per person and is not affected by the January deadline. The customs authority said the distinction is intended to avoid disrupting tourism and to ease the transition for citizens who travel frequently.<\/p>\n Egypt uses a 12-digit national tariff code to classify every import. Mobile phones fall under HS chapter 85, where the standard duty rate is 20 %2<\/a><\/sup>. The taxable value is the cost of the phone plus international freight and insurance (CIF), even if the purchase was made on FOB terms. Importers who declare only the invoice value without adding freight and insurance face penalties and cargo holds.<\/p>\n Value-added tax is then applied to the sum of the CIF value and the customs duty. At 14 %, this produces an effective VAT rate of 16.8 % on the original goods value when the duty is 20 %2<\/a><\/sup>. A development fee of 1 % is added for most electronics, bringing the total tax burden to 36.8 % of the CIF value.<\/p>\n The passenger is responsible for paying the tax before the phone can be activated. Payment can be made through the \u201cTelephony\u201d app, bank transfers, or digital wallets within 90 days of first use1<\/a><\/sup>. The authorities have also introduced an instalment plan that will be rolled out in the coming months. Failure to pay within the grace period will trigger regulatory action, including possible disconnection.<\/p>\nThe exemption that is ending<\/h2>\n
Life of the passenger waiver<\/h4>\n
How the tax is calculated<\/h2>\n
The parts of the 36.8% tax burden<\/h4>\n
Who pays and how<\/h2>\n
Passenger and commercial importer<\/h4>\n