Egyptian customs, FEDCOC adopt UN TIR system to boost transit trade
The TIR system and its TIR Carnet operate under the UN Customs Convention, overseen by the UN Economic Commission for Europe (UNECE), while the International Road Transport Union (IRU) serves as the operational partner and issues the carnet.
The IRU, a member of FEDCOC that also signed the agreement, is a global federation representing bus, coach, taxi, and truck operators. It advocates simpler border crossings, promotes sustainable and safe global trade and green mobility, and manages the TIR system.
The system serves as an international customs declaration document and guarantee, allowing goods to move across multiple borders on multimodal journeys while reducing the need for repeated customs inspections.
Customs authorities at border crossings will be able to verify that the TIR seal on a container remains intact, eliminating the need to physically inspect the cargo. Egypt's customs authority will also establish an executive department to implement the TIR system.
Minister of Finance Ahmed Kouchouk and Minister of Investment and Foreign Trade Mohamed Farid Saleh attended the signing.
This comes after the US-Israeli war on Iran, which began on 28 February, prompted major transport companies to seek alternative trade routes, including the Suez Canal. The gradual return of shipping traffic to the canal despite attacks near the Red Sea, most recently on Monday, helped its revenues recover, rising by 23 percent in FY2025/2026 to $4.67 billion.
The conflict between the United States and Iran resumed last week, with repeated missile and drone attacks between Washington and Tehran leading to the closure of the Strait of Hormuz until further notice.
The TIR system will also help Egypt speed up freight movement, reduce transport costs, shorten truck waiting times at ports, and improve the efficiency and competitiveness of customs services, ports, border crossings, and transport companies.
According to the IRU, the TIR system reduces border transit times by up to 92 percent and transport costs by up to 50 percent.
It will also provide Egyptian exporters and transport companies with greater access to Arab, European, and African markets as part of Egypt's plan to become a global transport and logistics hub by enhancing multimodal transport.
Egypt aims to increase annual exports to $115.8 billion by 2030 and raise non-oil exports by 15–20 percent annually through 2030.
The agreement also comes as Egypt seeks to deepen partnerships with local and foreign private-sector companies to strengthen the economy while facing temporary capital-flow pressures and disruptions to international supply chains since the start of the conflict.
The signed agreement is part of the state's legislative and procedural reforms to improve the business environment, as trade is a key driver of economic growth and supports production and industry, the investment minister said.
Egypt's trade deficit widened by 24.6 percent to $47.8 billion during the first nine months of FY2025/2026, one month after the outbreak of the US-Israeli war on Iran. Nevertheless, non-oil exports rose by $1.7 billion to $27.3 billion, while oil exports increased by $55 million to $4.22 billion.
Finance Minister Ahmed Kouchouk said the tax and customs facilitation measures introduced by the government continue to facilitate trade and stimulate investment by simplifying procedures and reducing customs clearance times.
As part of these reforms, Egypt has implemented the Advance Cargo Information (ACI) system, which allows customs procedures for transit shipments passing through ports to be completed without prior registration. Egypt has also exempted services provided to transit goods moving between Egyptian ports from value-added tax (VAT).
Moreover, the TIR system could reduce land transport costs by 25-40 percent and cut the time needed for goods in transit and customs procedures by up to 80 percent, positively affecting trade and increasing investment, Minister Saleh said.
The finance and investment ministries are also developing a more advanced risk management system to ensure faster customs clearance. Egypt is already considered a logistics hub, with its transit trade growing by 40 percent since March 2026.
Egypt’s transit trade volume previously surged by 35 percent year-on-year during the first quarter of 2026.
The TIR system also ensures that customs duties and taxes at risk during transit operations are covered, providing authorities with a secure and internationally recognized framework for managing transit operations.
According to the investment minister, the success of the guarantee and insurance system associated with the agreement depends on the availability of accurate and comprehensive data, enabling the necessary guarantees to be provided and improving risk management throughout all stages of trade operations.