The Determinants of Customs Duties Evasion in Egypt

Abstract

Following the Arab Spring in 2011, Egypt implemented policies to restrict imports to control foreign currency spending, as foreign currency reserves dwindled. This decline was driven by reduced tourism revenues and remittances from Egyptians abroad. Among the measures Egypt adopted were floating the local currency, raising the customs exchange rate (used to calculate customs duties), and increasing tariff rates on numerous goods. These actions significantly raised the cost of imports, potentially incentivizing importers to evade customs duties.

Keywords

• customs duties evasion
• average tariff rate
• imports
• tax revenues
• f13
• f53
• h20
• h26