Import of used machinery to Egypt and Turkey

Project LogisticsImport of used machinery to Egypt and Turkey

Used industrial machinery and plants “made in Germany” are internationally high in demand. So as is the case in Turkey and Egypt. As specialist for both trade lanes, Karl Gross realizes transport solutions for used machinery, industrial plants and entire factories to both countries.

In many countries it is generally not allowed to import used goods – or is subject to tight restrictions. Same applies to Turkey and Egypt. “Background to such regulations is to prevent the import of ‘junk’”, Philipp Küffner, Deputy Branch Manager of Karl Gross Bremen, says.

Before Philipp Küffner took up his position in Bremen, he worked as a representative for Karl Gross in Egypt for several years. “In Egypt, however, used industrial machinery and plants are to a large extent excluded from import bans on used goods. They may be imported with the approval of the appropriate authority and in some cases even free from any restrictions.” But that is just the import perspective. The export of used industrial machinery and plants from Germany is usually also subject to approval – the keyword is here Federal Office of Economic and Export control.

 

 

 

Used equipment and machinery are partly tax-advantaged in Egypt.

Egypt: incentives for the import of second-hand machinery and industrial equipment

Second-hand industrial machinery and plants ex Germany contributes to Egypt’s industrial development. That is why even particular incentives for imports may apply. “Partly, they may be favored for tax purposes or there may be a reduced customs duty and import VAT rate”, Philipp Küffner says. “Whether a favorable rate can be applied depends on the type of machinery. Currently, for example, the import of machinery and equipment for the road construction industry is promoted“, Philipp Küffner continues. “However, from my own experience I can say that the Egyptian customs very closely check the import of used machinery to make sure that it is really not ‘junk’ that is imported”, he remembers from his time in Egypt.

May it be machinery and equipment for the road construction industry or entire production lines for the automotive industry – the Karl Gross teams in Germany as well as our exclusive local agent Blue Flag Freight Logistics have already shipped a broad range of used industrial machinery and plants from Germany to Egypt – door-to-door.

Turkey: no rule without exception

In Turkey, things are handled stricter than in Egypt. Here, it is generally not allowed to import used industrial machinery and plants. Though: the Turkish buyer can apply for an appropriate permit and licenses when it comes to importing ‘complete systems’. “Logistics solutions for the export of second-hand industrial furnaces, press lines and wood incineration plants are regularly on our to-do list – and have been for more than ten years”, Esin Balta, Head of the Turkey Department at Karl Gross Bremen, says. “We also shipped a complete paper mill to Turkey.”

Karl Gross service goes far beyond just planning and organizing the shipments. “In this regard we offer our customers a 360° service. Often we are already contacted when the plant still is at its original place of work. We then organize the dismantling of the plant and subsequent reassembly at the final destination in Turkey. Also, we take care of sea worthy packing.

Several containers and break bulk lots are not uncommon.

May it be Turkey or Egypt – customs handling is a key issue

For large-scale shipping projects such as the transport of entire industrial factories, the project scope can easily amount to several months. “A shipment consisting of several hundred containers and diverse break bulk lots with oversize and overweight is not uncommon”, Esin Balta says. “Decisive is the communication with the customs agent of the recipient in Turkey, the tariff classification and the preparation of customs documents. This is especially the case when a second-hand industrial plant is customs-wise imported as ‘complete system’, but is actually shipped in several part lots over a longer period of time, as is often the case with large industrial plants and entire factories.”

 

In Egypt there are two options of handling the customs clearance for imports.

Same applies to shipments to Egypt. “The exact tariffing of the individual components and exact monitoring of the customs documents over the entire transport period is decisive for the success of the project”, Philipp Küffner says. “In contrast to Turkey, in Egypt we have two options for handling import customs clearance: either via the customs agent of the consignee or ‘single-handedly’ with our exclusive agent Blue Flag Freight Logistics. “

And what about shipments consisting of several partial shipments? “In Egypt, it is generally possible to import used industrial plants in part lots – also for free circulation. However, certain custom-related steps are to be adhered or proof must be provided”, Philipp Küffner says.

“All in all, we advise our customers to take us on board for such projects at an early stage – even at the beginning of the planning phase. The devil is often in the details and a comprehensive pre-planning – especially with regard to “customs” – is crucial for a successful project“, Philipp Küffner and Esin Balta agree.

January 2020


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