Starting January 1, 2025, travelers entering Egypt with more than one mobile phone equipped with a foreign SIM card may face on-the-spot high tariff payments. According to Egypts latest official regulations, each passenger can only bring one duty-free phone for personal use. Exceeding this limit requires immediate payment of a 38.5% tariff based on the phones value, or the device will be barred from entry. While this policy currently applies only to mobile phones and not tablets or laptops with communication modules, it will directly impact?Foreign trade?professionals, business travelers, and tourists alike.

However, after the regulation was announced, the head of Cairo International Airport Customs introduced a new exemption: in addition to one duty-free personal phone, travelers may bring one new phone for gifting purposes, provided it is registered at customs and completed on the Telephony app developed by Egypts Telecom Regulatory Authority. Many traders and businesspeople noted that this two-phone exemption offers compromise but requires advance preparation to avoid hassles at ports.

Why is Egypt implementing this new rule? In recent years, Egypt has been aggressively developing its local mobile manufacturing industry, aiming for at least 40% localization of components and attracting foreign brands like Samsung, Xiaomi, and OPPO to set up local factories. Statistics show Egypts phone imports plummeted from $1.6 billion in 2021 to $1.65 million in H1 2024. To further industrial upgrading and tax governance, Egypt must crack down on smuggling. Official data indicates only 5% of imported phones enter through formal channels, with the remaining 95% being informal imports, causing massive tax losses.

Additionally, Egypt faces significant foreign reserve pressures. Chronic dollar shortages have prompted efforts to reduce reliance on imported phones through localized manufacturing, positioning Egypt to claim a larger share of Africas electronics supply chain. The governments Egypt Made Electronics (EME) initiative aims to boost economic growth via policies favoring phones and appliances.

Beyond stricter phone import controls, Egypts Telecom Regulatory Authority developed the Telephony app, mandating online registration for all foreign phones entering the country with a 90-day tax-free grace period. After this period, unregistered phones will be disconnected. Phones valued below EGP 15,000 (≈￥2,170) are exempt, but others face a 38.5% tariff based on market value.

For exporters targeting Egypt, this policy may have greater implications than for tourists. Some clients or friends occasionally ask exporters to bring phones into Egypt, but this seemingly simple favor now carries high tax risks. With localization efforts intensifying, Egypt is transitioning from an import-dependent market to a manufacturing hub and regional player, emerging as Africas electronics manufacturing rising star. This suggests compliance and policy barriers for phone exports to Egypt may further increase in the near future.