Egypt on Wednesday ended the year-long grace period that allowed travellers to bring one mobile phone into the country free of customs duties, enforcing a tariff system officials say aims to protect domestic manufacturing and curb smuggling.
The exemption expired at noon, the Egyptian Customs Authority and the National Telecommunications Regulatory Authority confirmed, completing the rollout of a handset governance and registration system that began in January 2025.
From now on, any mobile device entering the country with a traveller will be subject to a one-time 38.5 per cent charge of the device's cost covering customs and taxes.
Only foreign tourists and Egyptians residing abroad remain exempt for 90 days per visit; after that period they must pay.
The device is registered and fees are paid exclusively through digital channels such as the Telephony mobile application, the Finance Ministry’s e‑gateways and licensed banking apps.
Customs offices will no longer register phones manually at airports, the authority said.
Make phones locally
Authorities describe the move as part of a broader effort to consolidate Egypt’s fast-growing electronics manufacturing base.
Egypt's handset market was estimated at $2.5 billion in 2025 and is estimated to almost double to $4.8 billion by 2031, according to Fitch Solutions in May.
According to a statement in January 2025 from Sherif Kilany, a tax policy official at Egypt's Finance Ministry, 95 per cent of mobile phones that entered Egypt in 2024 were illegally sourced.
This line had been repeated by numerous government officials since 2024, with President Abdel Fattah El Sisi saying in a speech in October of that year that the import bill for mobile phones had amounted to $9 billion “over the past decade”.
At the time, Mr El Sisi called on manufacturers to produce more mobile phones locally to cut the import bill and conserve precious foreign exchange.
The customs authority on Tuesday said the end of the exemption “coincides with the success of the local mobile phone industry”, which now includes more than 15 global manufacturers producing about 20 million devices a year – more than domestic demand.
Plants run by companies including Samsung in Beni Suef, OPPO in 10th of Ramadan City, Xiaomi in 6th of October City, and Egypt's SICO and Nokia (HMD Global) in New Assiut export to regional markets and use mostly Egyptian labour.
Officials say the growth of these factories has created roughly 10,000 direct jobs and expanded access to international models assembled locally under global quality standards.
The decision also aligns with a broader fiscal tightening across government.
Tax revenues have risen by more than 30 per cent annually since 2023, according to Finance Ministry data.
Finance Minister Ahmed Kouchouk has attributed the increase to improved enforcement rather than new levies.
However, many business owners insist that a lot of tariffs, such as the one on mobile phones, are new.
The 38.5 per cent tariff on imported phones replaced a 10 per cent duty at the start of 2025 under the “Egypt Makes Electronics” initiative to strengthen local output and reduce pressure on foreign currency reserves.
'Why pay again?'
The end of the waiver met intense backlash online, particularly among Egyptians abroad who had benefitted from the personal use exemption. Many voiced anger at having to pay duties on devices they had already bought and paid tax on overseas.
One widely circulated comment on X asked why expatriates should “pay again” on a personal phone or one purchased as a gift, questioning what service the state offered in exchange.
Others estimated the new charges could exceed 28,000 Egyptian pounds ($591) on higher end smartphones − calling the policy unfair to those who rarely buy phones in Egypt or those who want to buy brands that aren’t made locally.
Because of the new tariff, the price of certain models of iPhone in Egypt has exceeded 100,000 Egyptian pounds, which is equivalent to several months’ rent in a middle-class Cairo neighbourhood.
Apple's iPhones are among many popular models that are not manufactured domestically.
In Parliament, Justice Party leader Abdelmonem Imam lodged an inquiry with Prime Minister Mostafa Madbouly and House Speaker Hisham Badawi, arguing that the measure unfairly equates expatriates with tourists and was introduced without adequate economic assessment.
He also urged the government to clarify how revenues from the new tariff would be used and whether co-ordination occurred with the Foreign Ministry before implementation.
Industry support
Many business and manufacturing representatives, however, welcomed the decision.
Ihab Saeed, head of the telecoms division at the Federation of Egyptian Chambers of Commerce, said the move closes loopholes that had allowed roughly 90 per cent of devices to reach consumers illegally before 2025.
He called it “a turning point for market order”, adding that it should restore fair competition for firms operating publicly inside Egypt.
Mr Saeed downplayed fears of higher prices, saying rising local output and competition among brands produced locally − including Samsung, OPPO, Xiaomi, Vivo, Nokia (HMD Global) and Infinix − have stabilised costs and ensured steady availability across price tiers.
He argued that transparent customs collection would increase fiscal revenues while safeguarding legitimate manufacturers from the effects of smuggling.
In a Tuesday statement, Infinix praised the NTRA’s IMEI-based “device governance system” − or IMEI lock − which authenticates each handset connected to Egyptian networks.
The Chinese phone manufacturer said the mechanism has “virtually eliminated smuggled, non‑compliant phones”, estimating that 99 per cent of devices in circulation now come through legal channels.
Infinix credited the policy with bolstering investor confidence and pledged further expansion of its local assembly lines.
While critics argue that the government has failed to explain the rationale or timing clearly, risking public resentment at a moment of high costs of living and currency strain, officials show no sign of reviewing the decision.
The government seems steadfast in its position that the tariffs are essential to support factories that now supply most devices sold domestically – and to make “Made in Egypt” phones not just a slogan, but a central plank of the country’s industrial growth strategy.
