GLOBAL / COUNTRY STUDY AND REPORT ON COSMETIC INDUSTRY OF EGYPT Submitted to L.

J INSTITUTE OF COMPUTER APPLICATIONS IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide DISHA MEHTA Submitted by PRATIK LATHIGARA [Batch : 2010-12, Enrollment No.:107300592008] ANIKET PATEL [Batch : 2010-12, Enrollment No.:107300592026] SWATI THAKKAR [Batch : 2010-12, Enrollment No.:107300592002] MEHUL MOCHI [Batch : 2010-12, Enrollment No.:107300592036] NIKHILESH PARMAR [Batch : 2010-12, Enrollment No.: 107300592030] RONAK PANCHAL [Batch : 2010-12, Enrollment No.:107300592040] MBA SEMESTER-IV L.J INSTITUTE OF COMPUTER APPLICATIONS MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad MAY,2012

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ACKNOWLEDGEMENT As the Students of Management, we take the opportunity to thank Gujarat Technological University for introducing the course of Masters of Business Administration, to make the students more efficient and perfect manager of tomorrow. It gave us a real time Opportunity and Experience, to gather the information and work on the Country of Egypt, hence preparing the Global Country Report. We shall be failing in my duty if we do not acknowledge our Sincere Thanks to Faculty Guide, for providing guidance and directing us on this project. We also express my gratitude to all those people, who have provided us all the necessary information throughout the infrastructure to carry out the project and people who were directly and indirectly instrumental in enabling us to stay committed for the project.

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PREFACE The Country of Egypt- mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world. Covering an area of about 1,010,000 square kilometers, Egypt is bordered by the Mediterranean Sea to the north, the Gaza Strip and Israel to the northeast, the Red Sea to the east, Sudan to the south and Libya to the west. Egypt is one of the most populous countries in Africa and the Middle East. The great majority of its over 81 million people live near the banks of the Nile River, in an area of about 40,000 square kilometers, where the only arable land is found. The large areas of the Sahara Desert are sparsely inhabited. About half of Egypt's residents live in urban areas, with most spread across the densely populated centres of greater Cairo, Alexandria and other major cities in the Nile Delta. The following Report gives insight to the detailed aspect of the Cosmetic industry of the country.

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EXECUTIVE SUMMARY Egypt- most of it lies within the wide band of desert that stretches eastwards from Africa's Atlantic Coast across the continent and into southwest Asia. It has a historical past, which droves right from the Pre-historic period, Ancient period, rolling to the present Modern Egypt. Initial part of Report covers all the minute details on the Socio-cultural, Legal, Political aspect of Egypt, giving an eye to Business customs and practices held over there. Touching upon the Cosmetic Industry of the country let us know about policies like Import policy, Export policy and also structure and functions of the industry. We also know about recent developments about industry and Expansion plans about the industry and also about required documentation for import and exports.

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Students Declaration We, Pratik Lathigara, Aniket Patel, Swati thakkar, Mehul Parmar, Nikhilesh Parmar and Ronak Panchal, hereby declare that the Global Country Report entitled Cosmetic Industry Of Egypt is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged.

Date:Place:Pratik Lathigara Aniket Patel Swati thakkar Mehul Mochi Nikhilesh Parmar Ronak Panchal

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Institutes Certificate Certified that this Global Country Report on egypt work and research has done under my supervision. I also certify further, that the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the Faculty Guide

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TABLE OF CONTENT
Number Particular PART I SEM 3 History Geography of Egypt Cultural analysis Religion and aesthetics of Egypt Introduction about the economy of Egypt Development in science and technology Economic analysis External affair Foreign investment Media PART II SEM 4 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 History of Cosmetics Industry in Egypt Indian Cosmetic Industry Trends Future trend for Cosmetic Industry In India Political Effect How to Start Business in Egypt Import and Export Policies of Egypt Finance Trade Regulations Custom Taxation Foreign Trade Logistics Present Trade Barriers Result and Conclusions 31 34 36 38 39 43 47 48 49 50 53 8 9 10 13 16 19 20 23 25 26 Page number

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10

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PART I SEMESTER 3

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CHAPTER-1 HISTORY
HISTORY THE NAME EGYPT The English name Egypt was borrowed from Middle French Egypte, from Latin Aegyptus, from ancient Greek. Egyptian history can be roughly divided into the following periods: 1st Prehistoric Egypt 2nd Ancient Egypt 3rd Greco-Roman Egypt 4th Islamic Egypt 5th Modern Egypt

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GEOGRAPHY OF EGYPT The Geography of Egypt relates to two regions: Southwest Asia and North Africa. Location Egypt is predominantly desert. Only 35,000 km2 - 3.5% - of the total land area is cultivated and permanently settled. Most of the country lies within the wide band of desert that stretches eastwards from Africa's Atlantic Coast across the continent and into southwest Asia.

Natural regions Egypt's geological history has produced four major physical regions: Nile Valley and Nile Delta Western Desert (also known as the Libyan Desert) Eastern Desert (also known as the Arabian Desert) Sinai Peninsula

Climate The Climate in Egypt is generally moderate. It is mostly hot or warm during the day, and cool at night. In the coastal regions, temperature daytime temperatures range between an average of minimum 14 C (57.2 F) in winter and average of maximum 30 C (86 F) in summer.

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CULTURAL ANALYSIS:1.) FAMILY The extended families that are often found in Egypt do not follow the traditional patterns in which genealogically related persons of two generations live together or in which married siblings form one household. Rather, extended families are based on the incorporation of unmarried relatives into a family. Widows, divorcees (especially those with no children), and bachelors do not live separately and would be stigmatized should they make this choice.

2.) EDUCATION In 1966, illiteracy in Egypt was estimated at more than 70%; in 1995, it was 48.6% (males, 36.4%; females, 61.2%). For the year 2000, projected adult illiteracy rates stand at 44.7% (males, 33.4%; females, 56.3%). In 1952, primary schools had space for only about half the school-age children. However, marked progress has been achieved since then. By 1998 there were 7,499,303 students and 310,116 teachers in primary schools. At the secondary level, there were 4,385,938 students in general education, with 259,618 teachers. The pupilteacher ratio at the primary level was 23 to 1 as of 1999. In the same year, 93% of primaryschool-age children were enrolled in school, while 80% of those eligible attended secondary school.

3.) POLITICAL SYSTEM OF EGYPT Political Structure Official Name: Arab Republic of Egypt Legal system: Based on the constitution of 1971. Sources of revenue and Expenditure Sources of Revenue

Currently the Egyptian economy is undergoing a economic reform program. The major sources of income are the Suez Canal, tourism and gas and oil. Spinning, weaving, metal engineering & food are the major manufacturing. The major crops in Egypt are cotton, wheat, corn and rice.

Sources of Expenditure

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Egypt main expenditure on defence and healthcare facility provide to the peoples. Egypt has relaxed many price controls, reduced subsidies, reduced inflation, cut taxes, and partially liberalized trade and investment. Manufacturing had become less dominated by the public sector, especially in heavy industries. A process of public sector reform and privatization has begun to enhance opportunities for the private sector.

4.) BUSINESS CUSTOMS AND PRACTICE Introduction: There are Craftsmen in ancient Egypt were usually trained and skilled laborers. They were often well-respected in the community and had a comfortable lifestyle. Yet every craftsman's lifestyle and social standing depended on the quality of his skills and experience. Thus, some craftsmen had more difficult lives than others.

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5.) LEGAL SYSTEM

Criminal Code Egypt based its criminal codes and court operations primarily on British, Italian, and Napoleonic models. Criminal court procedures had been substantially modified by the heritage of Islamic legal and social patterns and the legacy of numerous kinds of courts that formerly existed. The divergent sources and philosophical origins of these laws and the inapplicability of many borrowed Western legal concepts occasioned difficulties in administering Egyptian law.

6.) SOCIAL ORGANIZATION Social classes in ancient Egypt Social class is one of the most hotly contested categories in the study of society (compare race). For ancient Egypt the heat of the issue may be diffused by the vocabulary of structure and self-perception: in what ways does a society divide itself into separate segments, and how does it perceive its own internal divisions? Much as the issue of race or ethnicity concerns the external boundaries of a society, so class involves its internal boundaries. Study may focus on the boundaries observed by the researcher, or on the boundaries perceived and expressed by the society, or on the contrast between the two.

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RELIGION AND AESTHETICS OF EYGPT Religion The country of Egypt has population which is almost uniformly spreaded across the nation. Islam forms the major religion of Egypt, followed by Christianity and other minor groups. About 6 percent are Christians, who are indistinguishable in other respects from the Muslims. Majority of the Christians belong to the ancient and historic Coptic Orthodox Church, having the membership between 6 and 11 million. Out of them, there were the groups of Catholics, Protestants and the others derived from churches of Levant (Maronite, Greek Orthodox, Greek Catholic). Apart from the major religions, the others are Judaism, Ahmadiyya Islam- Ahmadiyya, Bah' Faith. The religious beliefs of the ancient Egyptians influenced the growth and development of Culture of country to a great extent. The ancient myth, nature of worship, the numerous deities had a deep impact on the Egyptian faith. To explain the same, a divine hierarchy and the formation of the earth was created. Arts Egypt has developed several art forms like sculpture, drawing, inscriptions, etc. These art forms were used for decorating the temples and tombs of Egypt. Hence, with the varied art form, Egypt got different types of architectures like royal tombs, temples, dams, etc. Alexandria Lighthouse, a splendid architecture and one of the wonders of the world is a brilliant example of Egyptian art form.

Plastics This form of art consists of manipulating plastic material by modeling or moulding in the form of sculpture and ceramics.

PublicArt The mixture of observation of nature and geometric regularity is the feature Egyptian Art forms. of

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The combination of geometric regularity and keen observation of nature is characteristic of all Egyptian arts. Egyptian crafts in all the statues, paintings, jewelry and pottery seem to fall into place.

Graphics

(Frabic Design : Peacock and Dragon)

(Morris Tulip and Willow Design)

(Revival of Gothic style in Graphic Design)

Colors The basic colors used in Ancient Egyptian art forms are:- White, Black, Red, Yellow, Blue and Green. These colors held different meanings, likeWhite - representing purity, power and greatness, a sacred color. Black - representing death and the night. Red - representing life and victory, also conveyed anger. Yellow - often used to represent gold. The eternal color depicted the sun god. Blue - representing water, the sky, life, fertility and re-birth. Green representing the color of vegetation and represented new life.

Music Egyptian music is a rich combination of native Egyptian, African and Western influences. The Pop music and folk music forms the integral part of the culture of Egypt. The Pop music is vital for the youth and the folk played during the weddings and other festivals.

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Performing arts It has different forms of dance, music, theatre, magic, circus arts, spoken word and musical theatre. Out of which, Puppet theatre (which included hand puppets, shadow plays and marionette productions) is the most famous and Live passion plays known as taziya, reflected the Muslim history. Ballet is a prime art. It is closely related to the royal court, but after the Revolution of 1952, it has become a must to adopt cultural development. The first company was The Cairo Ballet Company that depended on classic one-act shows. Later, the Company introduced contemporary ballet by Egyptians, such as El-Somoud (Steadfastness) by Abdel-Moneim Kamel; depicting the Egyptian peoples stand in the wake of the 1967 war. Folklore expresses peoples values and culture as much as it expresses their hopes and aspirations. It is relating the mythologies which resulted from the deeply-rooted belief of Ancient Egyptians. This belief is reflected in the extended inevitable relationship between their worldly and heavenly lives.

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ECONOMY OF EGYPTINTRODUCTION ABOUT THE ECONOMY OF EGYPT The economy depends heavily on agriculture, tourism and cash remittances from Egyptians working abroad, mainly in Saudi Arabia and the Gulf countries. However, rapid population growth and the limited amount of arable land is straining the country's resources and economy.

FACTS Full name: Arab Republic of Egypt Population: 84.5 million (UN, 2010) Capital: Cairo Area: 1 million sq km (386,874 sq miles) Major language: Arabic Major religions: Islam, Christianity Life expectancy: 69 years (men), 73 years (women) (UN) Monetary unit: 1 Egyptian Pound = 100 piastres Main exports: Petroleum, petroleum products and cotton GNI per capita: US $2,070 (World Bank, 2009) International dialling code: +20

The "Day of Revolt" on 25 January, 2011 in Cairo Ethnic minorities in Egypt include the Bedouin Arab tribes of the Sinai Peninsula and the eastern desert, the Berber-speaking community of the Siwa Oasis and the Nubian people clustered along the Nile in the southernmost part of Egypt. There are also sizable minorities of Beja and Dom.

Migration rate Migration entry includes the figure for the difference between the number of persons entering and leaving a country during the year per 1,000 persons (based on midyear population), The net migration rate indicates the contribution of migration to the overall level of population change. High levels of migration can cause problems such as increasing unemployment and potential ethnic strife (if people are coming in) or a reduction in the labor force, perhaps in certain key sectors (if people are leaving).

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Economical and Statistical Activity : Gross Domestic Product: Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living. Gross domestic product is related to national accounts, a subject in macroeconomics.

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The distribution of GDP in the major sectors are as follows:

SECTOR PERCENTAGE Agriculture 13.5% Industry 37.9% Services 48.6%

Personal Per Capita Income: Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. It does not attempt to reflect the distribution of income or wealth. Per capita income is often used as a measure of the wealth of the population of a nation, particularly in comparison to other nations. It is usually expressed in terms of a commonlyused international currency such as the Euro or United States dollar, and is useful because it is widely known, easily calculated from readily-available GDP and population estimates and produces a straightforward statistic for comparison.

Distribution of family income - Gini index: This index measures the degree of inequality in the distribution of family income in a country. The index is calculated from the Lorenz curve, in which cumulative family income is plotted against the number of families arranged from the poorest to the richest. The index is the ratio of (a) the area between a country's Lorenz curve and the 45 degree helping line to (b) the entire triangular area under the 45 degree line. The more nearly equal a country's income distribution, the closer its Lorenz curve to the 45 degree line and the lower its Gini index, e.g., a Scandinavian country with an index of 25.

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DEVELOPMENT IN SCIENCE AND TECHNOLOGY FILTRATION AND SEPARATION: THE COST-EFFECTIVE COMPLETE RANGE Filter solutions for particle filtration Filter solutions for oil-from-water separation Filter solutions for oil mist separation Mechanical Wellbore Clean-up (MWCU) Technology advancement, the engine for E&P Despite the slight increase of oil prices, swinging at the $60 per barrel edge, after the dramatic fall down, service companies have modified their pricing strategy to cope with the current market conditions and ensure the spread of their technologies

Egypt Economy: Trade Relations Egypts economy is largely dependent on petrochemical exports to European nations. The country has healthy trade relations with African nations, the Middle East countries and EU members. Egypt is a member of the Arab League and the WTO. It has significant bilateral relations with several EU nations, and relies on the US as it key security ally, and since the 1979 peace treaty with Israel, it has been able to focus on economic growth, however uneven that growth has been.

Egypt Economy: Major Statistics Here are some key statistics about the Egyptian economy in 2010: GDP: $498.1 billion GDP Growth: 5.259% GDP Per Capita: US$ 6,367.43 Population: 78.238 million Population Growth: 2% Labor Force: 25.8 million Unemployment Rate: 9.2% Inflation Rate: 11.703% Current Account Balance: -US$4.318 million Gross Government Debt (% of GDP): 74.216 %

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ECONOMIC ANALYSIS:(A)MINERALS AND RESOURCES (B)TRANSPORTATION MODELS: Road Systems Railways Water Ways Pipelines Ships Aviation

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AVAIBILITY:Road system Railways Railway links to adjacent countries Libya - railways under construction Sudan - no - Break-of Israel - defunct Palestine - defunct Ports and harbours Mediterranean Sea Alexandria Port - Port Authority Port Said Port - Port Authority Damietta Port - Port Authority Marsa Matruh

Red Sea Red Sea Ports Authority Suez Port Petroleum Dock Port Adabieh Port Sokhna Port Hurghada Port - Al Ghardaqah Safaga Port - Bur Safajah Noueibah Port Al-Tour Port

Nile River Aswan Asyut Merchant marine

TOTAL: 180 ships (with a volume of 1,000 gross register tons (GRT) or over) totaling 1,348,148 GRT/2,014,483 metric tons deadweight (DWT)
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Ships by type bulk carrier: 25 cargo ship: 63 container ship: 1 Liquified Gas Carrier: 1 passenger ship: 57 petroleum tanker: 14 roll-on/roll-off ship: 16 short-sea passenger: 3 (1999 est.) Airports Cairo International Airport is used by numerous international airlines, including Egypts own Egypt Air. In 2003, about 4.2 million passengers were carried on scheduled domestic and international flights. As of 2004, Egypt had an estimated 87 airports. In 2005 a total of 72 had paved runways, and there were 2 heliports. Heliports 3 (2007 est.)

PRINCIPAL INDUSTRIES: Automobiles Chemicals Consumer electronics and home appliances Steel industries Textiles and clothing Banking & insurance

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EXETERNAL AFFAIRS EgyptIndia relations are bilateral relations between Egypt and India. Modern EgyptIndia relations go back to the contacts between Saad Zaghloul and Mohandas Gandhi on the common goals of their respective movements of independence.[citation needed] In 1955, Egypt under Gamal Abdul Nasser and India under Jawaharlal Nehru became the founders of the Non-Aligned Movement. During the 1956 War, Nehru stood supporting Egypt to the point of threatening to withdraw his country from the British Commonwealth. In 1967, following the ArabIsraeli war, India supported Egypt and the Arabs. In 1977, New Delhi described the visit of President Anwar al-Sadat to Jerusalem as a "brave" move and considered the peace treaty between Egypt and Israel a primary step on the path of a just settlement of the Middle East problem.

Economic relations Oil Power Investment

CHANNELS OF DISTRIBUTION Oil According to the Oil and Gas Journals January 2011 estimate, Egypts proven oil reserves stand at 4.4 billion barrels, an increase from 2010 reserve estimates of 3.7 billion barrels. In 2010, Egypts total oil production averaged 660,000 (bbl/d), of which approximately 540,000 bbl/d was crude oil. Despite new discoveries and enhanced oil recovery (EOR) techniques at mature fields, crude oil production continues its decline.

Natural Gas Egypts natural gas sector is expanding rapidly with production quadrupling between 1998 and 2009. According to the Oil and Gas Journal, Egypts estimated proven gas reserves stand at 77 trillion cubic feet (Tcf), an increase from 2010 estimates of 58.5
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Tcf and the third highest in Africa after Nigeria (187 Tcf) and Algeria (160 Tcf). In 2009, Egypt produced roughly 2.3 Tcf and consumed 1.6 Tcf. With the ongoing expansion of the Arab Gas Pipeline, and LNG facilities, Egypt will continue to be an important supplier of natural gas to Europe and the Mediterranean region.

Suez Canal / SUMED Pipeline Suez Canal

The Suez Canal is located in Egypt, and connects the Red Sea and Gulf of Suez with the Mediterranean Sea, spanning 120 miles. Year-to-date through November of 2010, petroleum (both crude oil and refined products) as well as liquefied natural gas (LNG) accounted for 13 and 11 percent of Suez cargos, measured by cargo tonnage, respectively. Total petroleum transit volume was close to 2 million bbl/d, or just below five percent of seaborne oil trade in 2010.

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Crude Oil

The majority of crude oil flows transiting the Canal travel northbound, towards markets in the Mediterranean and North America. Northbound canal flows averaged approximately 428,000 bbl/d in 2010. The SUMED pipeline accounted for 1.15 million bbl/d of crude oil flows along the route over the same period. Combined, these two transit points were responsible for over 1.5 million bbl/d of crude oil flows into the Mediterranean, with an additional 307,000 bbl/d travelling southbound through the Canal.

Foreign Direct Investment Reforms enacted by the Egyptian Government since July 2004 has played a crucial role in improving the investment climate. Consequently, local, Arab and foreign investments have risen, resulting in continued high growth and the creation of more jobs. Reform efforts, especially in the facilitation of investment procedures, had a positive role in increasing the number of newly established companies and the expansion of existing firms, in addition to the noticeable rise in FDI. Below is an overview of trends in net FDI from FY 2004/05 to 2010/11.

FOREIGN INVESTMENT Egypt has declared that foreign private capital is both desired and welcome and that foreign capital investment has a place in the country's economic development. Investors in approved enterprises are assured of facilities for transfer of profits, withdrawal of capital, and employment of necessary foreign personnel. In 1974, Egypt sought specifically to encourage capital investments from multinational corporations in the West, so new projects financed with foreign capital were protected, capital was freed for reexport within five years of its investment in Egypt, andinvestment profits earned within Egypt were allowed transfer abroad. In 1991, all foreign exchange transfer restrictions were lifted.

INVESTMENT OPPURTUNITY Egypt is a country that has a population of 80 million people, and as we saw in this

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revolution, a lot of them are very internet savvy and very much participants in the modern world. So I think we are seeing venture capitalists take heed of a market they had not thought much about. Looking at Egypts ability to be a tech hub is something that people are definitely looking at. If you end up having a functioning political system that has good rule of law and private equity investors have the comfort to make longer term bets, they could look at consumer discretionary, oil services and other sectors.

INVESTMENT BARRIERS Under the 1986 United States-Egypt Bilateral Investment Treaty (BIT), Egypt is committed to maintaining an open investment regime. The BIT requires Egypt to accord national and Most- Favored Nation (MFN) treatment (with certain exceptions) to U.S. investors, to allow investors to make financial transfers freely and promptly, and to adhere to international standards for expropriation and compensation. The BIT also provides for binding international arbitration of certain disputes.

LICENCING The details of joint venture or licensing agreements between Egyptians and their foreign partners are a matter of mutual agreement, defined by their contract, not by special law. Liberalized foreign exchange regulations since 1991 permit the free transfer abroad of profits and dividends. Invested capital may be repatriated without prior approval of the government's investment authority, the General Authority for Investment and Free Zones (GAFI). Foreign equity in joint ventures can be as low as a few percentage points, depending upon mutual agreement. Egyptian Law No. 8, the Investment Incentives and Guarantees Law, allows foreign investors to own any amount, up to 100%, in projects in most sectors.

MEDIA Egypt is a major regional media player. Its press is one of the most influential and widely-read in the region, and its TV and film industry supplies much of the Arab-speaking world with shows from its Media Production City.
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 Press laws allow prison sentences for libeling the president, state institutions and foreign heads of state. Nevertheless, journalists openly express their views on political and social issues, including vigorous criticism of government officials and policies.

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The press Al-Ahram - state-owned daily, the oldest newspaper in the Arab world Al-Ahram Weekly - English-language Al-Jumhuriyah - state-owned daily Al-Akhbar - semi state-owned daily Al-Misri al-Yawm - private daily, English-language edition Al-Ahali - opposition Al-Wafd - opposition Al-Messa - pro-government The Egyptian Gazette - pro-government daily The Daily News Egypt - private daily

Television Egypt Radio Television Union (ERTU) - state-run, operates domestic and satellite networks, including Nile TV International and Nile TV thematic channels Dream TV - private satellite network, operates Dream 1 targeting young viewers and Dream 2, an entertainment channel Al-Mihwar - private, via satellite

Cellular Communications Currently, there are three companies which offer cellular communication service: Mobinil, Vodafone Egypt and Etisalat Egypt. These companies are providing services surpassing voice communication such as 3G and 3.75G services Internet The government has actively encouraged internet usage, quadrupling over the last few years with around 17 million regular users in 2010, around 21 percent of the population. The internet is often used for political opposition, blogging and lively debate amongst the public and by the media which can publish stories that are prohibited in the print media. The Egyptian government does not widely censor the internet, though the

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state-run Supreme Administritive Court allowed the Ministry of Information and Ministry of Communication to close down or block websites that are a "threat to national security". However, several people have been detained for insulting Islam, state institutions and President Hosni Mubarak during prodemocracy protests, as well as government officials in cases of abuse by the security services.

Advertise agency YAT COMPUTER SERVICES UPDATE INNOVATION COMMUNICATION T N COMMUNICATIONS TAREK NOUR FOR ADVERTISING NEW SMART ADVERTISING ROYAL DESIGN ADVERTISING RAMSIS INT L CO. FOR AVIATION AND SPRAYING PULP PICTURES PROMOTERS EGYPT

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PART II SEMESTER 4

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2.1 HISTORY OF THE COSMETIC INDUSTRY IN EGYPT:

Have you ever seen pictures of the Ancient Egyptians, with their painted faces? They look very striking, dont they? Very classic. And that was the intent. It was extremely important to them that they looked and smelled good, because the old expression cleanliness is next to Godliness is that old they believed it very strongly. The Egyptians were very spiritual people, and believed their appearance was directly related to their level of spirituality. And so they needed to find ways to make their look at least presentable, if not fabulous. The Egyptians were also very resourceful people. Some of the things they came up with were very innovative, even by todays standards. And cosmetics were one of those things. They had a knack for developing natural formulas to solve their skin challenges. Would you believe that around the fifteenth to the tenth centuries BC, they had cosmetic products that would get rid of stretch marks, shrink wrinkles, get rid of scars, and make hair grow? Thats amazing, when you look at the line of products thatll do those same jobs today. And today, we seem to need all kinds of research and development programs to come up with the same thing. Perhaps theres something to be said for natural cosmetics after all. Some of the other cosmetics the Ancient Egyptians used were eye makeup, face creams and body oils, as well as a wide array of perfumes and fragrances.

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(A) The Egyptians really knew how to mix ingredients

All these cosmetics that the Egyptians used had to come from somewhere. Well, its the old story of necessity is the mother of invention. Because there was so much emphasis on looking good, Egyptian women had to find a way to do it. And one of the things they came up with was something called Mesdames. Mesdames was made of copper and lead ore not the safest thing to be constantly putting on your face, but it did the job. They applied green to their lower eyelids, then black or dark gray to their eyelashes and upper eyelids. And keeping with their spiritual beliefs, the dark colors were designed not only to enhance their appearance, but to ward off evil eyes. And an evil eye wasnt the only thing mesdemet warded off. It was a great disinfectant, as well as an insect repellant. And with life on the Nile being fairly filled with annoying insects, the eye makeup performed a dual purpose. So the combinations of ingredients that made up their cosmetics, were very diverse. In fact, many were used for all kinds of medicinal purposes, too. Now hows this for a combination: burnt almonds, oxidized copper, a couple of different-colored copper ores, lead, ash, and ochre. They called it kohl, and it came out as a dark-colored powder, which was applied with a small stick, on and around the eyes, in an almond shape. Then, to complement the fancy eye makeup, they applied a mixture of red clay and water to their lips and cheeks. And the nails werent left out, either. They used henna to dye them orange or yellow. Quite a colorful picture, dont you think? But thats exactly what they wanted back then something like today, perhaps? And the Egyptians werent good at just putting together natural products. Some research done by LOreal, along with scientists from the Louvre in Paris, revealed that the black eye makeup used back then had ingredients that had to have been chemically made, because a natural origin couldnt be found. The research also showed that mesdemet got its creamy smoothness from its 7-10% fat content.

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Thats just the same as many of the eye cosmetic products on the market today. Are we really advanced, or just living in the past? The purpose of cosmetics hasnt really changed over the years Way back I mean, way back like in 10,000 BC, cosmetics were used to enhance the beauty of the female countenance. And by the way, men used them, too. Back then, all Egyptians bathed either in the river or from a basin at home. They used cosmetic cleansers made from vegetable or animal oil mixed with powdered lime and perfume probably not much different from some of the soaps we use today. Also, the air was very hot and dry in those days and the people needed something to keep their skin soft. So they used one of a number of perfumed oils to protect themselves from the climate. As time progressed, through invasions and migrations, cultures merged, and that had a profound effect on the value of cosmetics. Remember, the Egyptians held a strong connection between their cosmetic makeup and their spirituality. However, when the much more liberal Greeks moved in, ideas about cosmetics changed. The actual use of cosmetics didnt decrease at all, but their connection with spirituality did. The Greeks use of cosmetics was predominantly well, cosmetic. They were still interested in looking good, but not for the gods for each other. So they adopted the Egyptian cosmetic practices and products. But then, centuries later, the Romans moved in, with their life of frivolity and debauchery. The Egyptians cosmetic formulas were used for even less spiritual purposes, like aphrodisiacs. However, vanity was still an issue, so cosmetics still had a place on the face and on the rest of the body, too. It was said by one Roman, a man named Platus, that a woman without paint is like food without salt. So, men, look back and thank the ancient Egyptians for their sometimes weird formulas they used to enhance the beauty of their women. Many of their ideas have lived through the ages. And now you get to enjoy those ideas as theyve culminated into the cosmetics of today. And all you can do is greet your special lady, with her perfectly-applied cosmetics, and say, Wow!
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2.2 - INDIAN COSMETIC INDUSTRY TRENDS: The size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched, industry body ASSOCHAM said. With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will grow to around 1.4 billion dollars from current level of 950 million, ASSOCHAM said in a press release. It said despite high penetration of cosmetic items and new foreign brands foraying into the country, India's consumption of cosmetic and toiletries is far less than other Asian countries. The per capita consumption in Hong Kong is 50 times that of India, while Japan's consumption is 18 times. Domestic cosmetics and toiletries industry has been growing at 15-20 per cent over the last few years, but India is a price sensitive market. Companies need to work out innovative strategies to establish a foothold here, it said. "India's per capita consumption of cosmetics and toiletries for well-known branded products stands at 0.68 dollars as against 40 dollars in Hong Kong, 10 dollars in Malaysia and Taiwan, 12 dollars in Japan and 1.5 dollars of China," ASSOCHAM President Venugopal Dhoot said. Hong Kong has the highest per capita consumption for cosmetics and toiletries products since it is the launching pad for such products for most Asian countries, he said. He said 20 million consumers in India use branded products by Unilever, Procter & Gamble, Godrej and Dabur. The reason for low penetration of international brands in India is the price differential due to which foreign brands constitute only 20 per cent of the market. According to our latest industry monitory report "Cosmetics Trends", nano particles are nowadays increasingly being used (especially sun care and anti-aging segments) to enhance cosmetics products quality and efficiency. In view of the fact, that an increasing number of companies are manufacturing products containing nano particles, regulatory bodies are developing new regulations to address the growth of
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nanotechnology in cosmetics. So, personal care industry and some independent research institutes are doing research in this field to come up with new results and applications. Moreover, at present cosmetics industry is focusing on launching organic cosmetic products because people are now becoming more and more conscious about the chemicals and their harmful effects in the cosmetics. In addition, a new concept of Herbal Medicine' is paving its way to the skin care industry. Players are globally exploring the markets to tap the hidden growth potential. Regulatory bodies are also ensuring that consumers have full knowledge about the ingredients of products and hence focusing on labelling.

For instance, The Food and Drug Administration (FDA) (USA) plans to issue the first new regulations for sunscreen in October 2010. The proposed changes, may implement new testing and labeling practices to clear up the confusion over the reliability of the sun protection factor (SPF), and whether products actually do what they advertise.

Our report has also evaluated the emerging male grooming segment as more and more men are becoming concerned about their looks and appearances. The cosmetic industry is utilizing this paradigm shift and launching new products exclusively for men. As a result, the global male skin care market which was only worth about US$ 193 Million in 2009 is now growing at a substantial rate of about 16% annually.

"Cosmetics Trends" apart from providing a deep insight into the Cosmetics industry, has discussed various strategies adopted by the governments of many countries that will propel the future growth of this industry.

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Structure, Functions and Business Activities of Cosmetic Industry.

Egypt, a country having rich market for cosmetics have more MNCs operated in cosmetic sector. Structure of the cosmetic industry is such that any new company can easily operate in the market. There are few cosmetics manufacturer in Egypt, mostly they are importing cosmetic products, i.e hair colour, face wash, body lotion, sun screen lotion etc. Companies have their head quarter in Cairo and operated in pan Egypt area is normal for any MNCs of cosmetics. They are mainly focus on distribution and wholesale part of the business. Their manufacturing units are mostly outside Egypt. Though Egypt have less regulation for starting new venture, political factors are responsible to make companies their manufacturing outside Egypt and focus on distribution and resale part in Egypt. There are many opportunities available for cosmetics industry as they organise many expos and events which provides platform for local manufacturer to expose their products to the local market

2.3 - FUTURE TREND FOR COSMETIC INDUSTRY IN INDIA: The Indian division of global certification body Ecocert says that an increasing number of Indian companies are looking to get involved in the organic cosmetic market. Increasingly, Indian companies are getting involved in the supply of organic certified ingredients to the $7bn global industry, while there is equally scope amongst more affluent middle class consumers for the products in the country. Speaking at a recent convention at the Taj President in Mumbai, Dr Selvam Daniel, managing director of Ecocert India said that an increasing number of Indian companies are looking at business plans that focus on the market.

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(A) Tapping into huge global growth

The mind-blowing growth in the global organic cosmetic industry continues with the number of product launches increasing from 615 products in 2002 to about 2,000 products last year, said Dr. Daniel. He went on to explain that the US, the UK, France, Canada and Japan are the top five markets for organic certified cosmetic and personal care products. All of these are highly developed markets where the potential for further growth is limited, but in India, where the middle class is rapidly expanding, the scope for future growth should prove to be enormous.

(B) Longer-term consumer prospects look good

For the moment the market for organic personal care products in the country is still very small, as most wealthier Indians tend to buy these type of products when they travel abroad, but the longer-term prospects look good for the development of organic products. Despite the immediate scope being more limited for the consumer market, Indian suppliers to the personal care industry are in a strong position because of extensive resources and cost advantages. Although gaining certification remains a challenge, more and more ingredients suppliers are taking the plunge in an attempt to muscle in on the market and Ecocert India wants to encourage more to take up the challenge.

(C) Ecocert India gaining ground on certification

Ecocert India is a division of Ecocert France and has worked on certifying companies in the areas of processing, exportation and farming, having now certified a total of 300,000 hectares of land in the country. After China, India is the most bio-diverse country and today every kind of natural solvent is available in the India market, said Dr. R Govinaragan, principle scientist at the Himalaya Drug Company.

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The situation is fast improving for players in the Indian organic cosmetic industry. They are in a position to command higher margins while increasing their global and India market share rapidly.

2.4 - POLITICAL EFFECT ON COSMETIC INDUSTRY: -

(A) ARAB SPRING REVOLUTIONS EFFECT ON COSMETIC INDUSTRY: The 2011 Arab Spring revolutions in North Africa have had profound effects on the industries in those countries affected. Megan Detrie reports from Egypt and Kaci Racelma reports from Algeria on how the cosmetics industry has held up. The impact of the Arab Spring revolution has rattled though North Africa, leaving no economic sector unscathed, including the cosmetics industry. Despite the fact that the growth of cosmetics markets in countries like Tunisia, Egypt and Libya remains limited in lieu of the year of demonstrations and political upheaval, efforts are currently being made to boost the industry. Comparatively peaceful Morocco has also seen steady development in its personal care market. The export market for North Africa overall has seen spectacular growth in recent years, led by a surge in exports of French personal care product exports to the region, says French industry association FEBEA (Fdration des Entreprises de la Beaut), and a broadening of international brand product lines appearing on the market. In its 2010 figures, FEBEA reported an increase in French personal care product exports to African countries. While the annual report called the market modest in scale, compared with some other regions, it noted a rapidly increasing demand for personal care products amongst consumers in Egypt (a 70% increase from 2009), Tunisia (+22.8%), Morocco (+18%) and Algeria (+14%). Multinationals such as Unilever, Procter & Gamble, Oriflame, Avon and Henkel along with LOral have all established a dominant presence in the region, while local manufacturers continue to command the lower income market.

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Still, as the Arab Spring revolution leaves newly democratised countries with unstable economies and wary foreign investors, market consultants and distributors remain hesitant ate bout entering the market. While most of the cosmetics trade in the region consists of Europe and the UK exporting cosmetics to North Africa, the UKs Cosmetic Toiletry & Perfumery Association (CTPA) noted in its 2010 sector report that the Middle East and North Africa was also starting to sell cosmetics back to Britain. Indeed that year there were 19.7m (US$30.9m) worth of MENA personal care products sold in Britain; a 0.7% rise from the previous year, though still a small portion of the 2.7bn annual imports of personal care products to the UK. However, British exports to the region declined 5.9% in 2010 to 154.2m ($242m). The majority of UK exports to North Africa and the Middle East consist of perfumes, beauty products and oral care products, while imports from the region are largely made up of hair products. As for French exports, Anne-Marie Breton, FEBEAs international regulations specialist, says companies must take a different approach for North Africa, going into the future. Morocco must be approached differently than Algeria, but the countries are very important to our industry, its definitely a growing market, she says.

2.5 - HOW TO START BUSINESS IN EGYPT?

(A) Check the company name: GAFI Assiut sends a fax to the central commercial registry in Cairo. The commercial registry will check that the desired company name is not in use and respond within a few hours. Time : 1 day No cost

(B) Obtain a certificate from an authorized bank: There are no bank branches within the Assiut one stop shop as there are in Cairo and Alexandria so applicants may go to their own bank. The bank certificate is free of charge but the account opening fees range from EGP 200 to 500 depending on the bank. Upon an agreement between GAFI and the Central Bank of Egypt
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regarding the bank certificate, there is no longer the need to submit the company contract and the certificate clarifying that the name of the company is not in use to any bank. Time : 1 day No cost

(C) Submit documents to the Companies Department and obtain invoice: The entrepreneur needs to submit the approved company contract, along with the rest of the required documentation: the certificate issued by the commercial registry regarding the name of the company and the power of attorney. The entrepreneur presents the documents at the reception desk where they are reviewed immediately by a lawyer. The employee of the division reviews the documents and issues an invoice detailing the costs below, which should be paid at once, with the exception of legal fees. Notary Public Office: 0.25% of capital capped at EGP 1,000 with a minimum of EGP 125 Establishment fees: 0.1% of the capital capped EGP 1,000 with a minimum of EGP 100 as per article 17 D of the Company Law Service charge: 0.1% of the capital capped at EGP 10,000 with a minimum of EGP 1,000 for services rendered by the Companies department Commercial syndicate fee: EGP 125 if the capital is less than or equal to EGP 500,000, if the capital is more than EGP 500,000 the fee is EGP 250 Publication: EGP 150 for Arabic, EGP 300 for Arabic and English Chamber of commerce fees: 0.2% of the capital capped at EGP 2,000 with a minimum of EGP 100 Commercial registration: EGP 56.2 Issuance of operation certificate: EGP 30.80 Ratification of lawyers signature at lawyer's syndicate: 0.5% of capital capped at EGP 5,000 with a minimum of EGP 100 plus EGP 20 for the stamp tax paid to the Egyptian bar association. All corporations under both Law 8/1997 and Law 159/1981 assume legal responsibility as soon as they are registered in the commercial registry, and do not have to wait 15 days like in the past, unless GAFI decides otherwise; with exceptions for specific activities mentioned in the decree. Time :1 day Cost : EGP 1,811

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(D) Pay fees: Fees are paid at the bank. Time :1 day Cost :EGP 40

(E) Notarize the company contract: The notarization can be done at the notary counter in the one-stop shop. No stamp duty has to be paid as per the amendments of July 1, 2006 to the Stamp Duty Law No. 111 of 1980. The required documents are the original copy of the company contract and the power of attorney. Time :1 day Cost : No cost

(F) Obtain the notification of incorporation: Once the company contract has been submitted, the competent authority must ratify it and give the applicant a certificate confirming the receipt of all required documents. This certificate allows for the registration of the company in the commercial registry and is issued within 24 hours following the submission of the notarized contract. The applicant receives also the approval of the chamber of commerce. The company assumes legal responsibility and judicial personality on the date of registration. Where the competent authority has no objection, the Companies department is thereafter responsible for publishing the company notice in the Investment Gazette at the expense of the company. Time :1 day No cost

(G) Register for taxes: Tax registration, including obtaining the tax card can be completed at the tax counter at the one-stop shop once incorporation is completed. Unlike in Cairo, the tax card is not issued immediately in Alexandria. Instead, the applicant receives a temporary document, which is valid for 1 month. The tax authority in Cairo processes and sends the applicant the final tax card within one month. Doing Business
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assumes that it takes 2 days to process the request for the tax card (as it does in Cairo) and 5 days to mail it to the applicant in Alexandria. The company can also register for sales tax at this point. Companies may also choose to register for sales tax only once they have started production. Companies are only obliged to register for sales tax once they reach at least EGP 54,000 in sales for industrial activities and EGP 150,000 for commercial activities. The required documents include the bank confirmation of the authenticity of the signature that the manager issues on behalf of the company in favor of the person working on the matter, the tax card, an original extract from the commercial registry of the company and the original copy of the lease agreement of the premises of the company. Time : 7 days No cost

(H) Register employees with the National Authority of Social Insurance: Social insurance provides disability and retirement pensions and compensation for unemployment and work-related injuries. This procedure is required by law; otherwise the employer may be subjected to sanctions. The following documents shall be submitted to the competent authority office: a. Lease agreement of the premises of the employer; b. Tax card of the employer; c. A copy of the identification card, birth certificate, and the graduation certificate of the employee as well as the employer; d. Application forms number 1 and 2, issued by the authority completed with the required information. Time : 2 days No cost

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2.6 - IMPORT EXPORT POLICIES OF EGYPT: -

(A) IMPORTS REGULATIONS:

The Arab Republic of Egypt classifies its imports according to the harmonized commodity description and coding system. The negative list includes105 products and all the products that are not listed in it are imported duty-free. The negative list consists of textiles, apparel, and poultry. Unsalable commercial samples or those samples valued at less than five Egyptian pounds are admitted duty-free. Saleable samples worth more than five Egyptian pounds may be imported temporarily duty-free under deposit or bond. Small quantities of printed advertising material, such as catalogues, price lists and films are admitted free of duty. Customs duties are payable in Egyptian pounds. At import level the following documents are required: Commercial invoice: The original or at least two copies usually are required. Legalization by the Egyptian Consulate is required. If the instructions of the letter of credit do not specify that legalization is required, exporters should follow the advice of their importers. The Egyptian Consulate will legalize the certificate of origin only after it has been notarized and certified. Certificate of origin: The original or at least two copies are often required. The same formalities for the commercial invoice apply to the certificate of origin. Natural products are considered as originating in the country where the goods are grown or extracted. The certificate of origin must bear a statement that the information given is true and correct to the best of the shippers knowledge. Packing list: packing list may be required by the consignee and are recommended in case. Bill of lading: The number of bills of lading required depends upon the carrier. Therefore there are no regulations specifying the form or number of bills of lading

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required for shipments. A bill of lading must show the name of the shipper, the name and address of the consignee, port of destination, description of the good, listing of the freight and other charges, the number of the bills of lading in full set and the date and the signature of the carriers official acknowledging receipt on board of the goods for shipment. The airway bill replaces the bill of lading on air cargo shipments. Pro forma invoice: The pro forma invoice is required by the importer for submission along with the import license. It must show the country of manufacture of goods.

(B) EXPORTS REGULATIONS:

In compliance with the Export regulations, the following documents must be produced: Sanitary certificate: an official certificate indicating that they are free of wood pests and insects must accompany Wooden-packing materials. Fresh meat requires a sanitary certificate stating that the locality of origin has been free of contagious diseases for at least three months prior to slaughter as well as a certificate attesting that slaughter was done according to Islamic rites. Canned meat requires a sanitary certificate showing that the health authorities control slaughtering operations. Used clothing: a certificate indicating that goods have been sterilized must accompany used clothing. Radiation certificate: many agricultural imports including tallow for the manufacture of soap and other detergents are subject to a random inspection upon arrival and may require a statement that the products are not contaminated by radioactivity.

Free sale certificate: Many imports of pharmaceuticals, foodstuffs, and wood

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products require a free sale certificate certifying that the commodities are in free circulation in the country of Export. The free sale certificate must be legalized and certified. Disinfection certificate: A special disinfection certificate is required for the shipments of shaving brushes and bristles. Food additives: Imports of food additives and other materials used in food processing must be accompanied by a certificate issued by an inspection authority specifying their precise chemical composition and stating that the products are authorized for use in the exporting country. Shipping restrictions: Nationalization of the insurance industry and of importing agencies virtually has eliminated use of foreign insurance services for imports by the Government. Insurance for private commercial imports depends upon the contract between buyer and seller.

(C) OTHER FORMALITIES AND DOCUMENTS:

Commercial agents must register their agency with the Ministry of Economy and Foreign Trades Commercial Registry Department giving basic facts about the agreement including the amount of commission to be received on sales. Commission rates vary with the volume of sales; they range between 1 to 10%. Commission rates must be noted in the commercial registry documents signed by the Egyptian agents. Many foodstuffs, household appliances, transformers and consumer goods are subject to quality inspection on entry into Egypt. Pharmaceutical products including cosmetics, medical soaps, medicated pastilles and toothpaste must be registered with the Ministry of health. Information on chemical composition must be provided. There are quality standards for the manufacture, import and sale of edible vegetables and animal and oil greases, preserved tomatoes, tomato pulp, sauces and juices, molasses, salt and alcoholic beverages. Special regulations also affect the importation of butter, raw wool, cod liver, whiskey, fruit, potatoes, preserved green vegetables, plants and seeds.A special permit is required for insecticides.

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The importation of cotton plants, ginned or unginned cotton, cottonseed and cotton stems is prohibited. Wooden containers are subject to possible fumigation upon arrival in Egypt if any signs of woodborer infestation are found. Labeling: packaged items must be labeled in Arabic bearing the name of the product, its trademark, and its brand name, the products technical data and mode of operation, international marks and information that should be observed during transportation and handling, country of origin, production and expiry dates and the manufacturers name. Marking: Standard international shipping and handling symbols should be used, but any special handling instructions should be marked both in English and in Arabic. Packing: Goods should be packed to withstand rough handling, extreme heat and high humidity and packing boxes should be waterproofed. All containers entering into Egypt should be treated.

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2.7- FINANCIAL REGULATIONS OF FOREIGN TRADE OPERATIONBanking system: As to June 30, 1996, the Egyptian banking system was made up of the Central Bank of Egypt and of the following banks: 28 commercial banks of which four public sector banks, and 24 Private and Joint Venture Banks which respectively form 866 and 288 branches; 32 business and investments Banks of which 11 Private and Joint Venture Banks, 21 Off-Shore Banks which respectively own 88 and 41 branches; 4 Specialized Banks of which 1Industrial Development Bank, (14 branches), 2 Real Estate Banks (21 branches), and one Principal Bank For Development and Agricultural Credit (967 branches). Besides, the bank density is of about 27 per1,000 individuals and the number of banks reached 2,267 most of which are located in Cairo, Giza and Sharkia. Foreign exchange system: There are no restrictions on the import of provided it is declared on an official customs form. The Export of foreign currency is limited and may not exceed the imported amount. The import and Export of local currency is limited to E 100. Methods and means for international settlement: Import payment in foreign exchange by the private sector is effected though the commercial banks licensed non-bank dealers, Port Said or through importers own foreign exchange resources. Imports by the Government are effected within the provisions of the foreign exchange budget. Payment between Egypt and its partners with which it has not concluded any bilateral payments agreements may be made in any convertible currency or in Egyptian pounds.

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2.8 - CUSTOMS TAXATION: Applicable duties and taxes: Customs duties: Customs duties range between 5 percent and 70 percent, but rates on luxury items including cigarettes, alcohol, and automobile may exceed 150 percent. Ad-valorem duties: most items are taxed on an ad-valorem basis. The tariff rate in effect on the date of assessment is applied to the C.I.F. value of the goods. Generally, the invoice price is used as the basis for duty assessment if its coincides with the fixed selling price. The fixed price is based on the commercial invoice accompanying a product the first time it is imported. If the invoice price is lower than the fixed price, customs value is the fixed price and the importers may be subject to penalties for under-voicing. Preferential duties: Egypt is a member of the League of the Arab States and its major institutions, including the Arab Economic Unity Council. Member States concluded an agreement aiming at establishing The Arab Common Market. They agreed to remove customs duties on agricultural products, animals and natural resources in trade among themselves. Customs surcharges and indirect taxes: Imported items are assessed a surcharge to cover inspection, listing, classification, and re-examination of goods. The applicable rates are 3 percent for goods dutiable at 30 percent or less than 6 percent for goods dutiable at more than 30 percent. The Government had decided to eliminate this surcharge by July1995. Sale taxes: Sales taxes are levied at rates ranging from 5 percent to 25 percent. Excise duty is collected on the imports of alcoholic beverages, benzene, coffee, cotton yarn, and several other products. There is an additional excise duty on brandy, cognac, gin, and whiskey.

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Special provisions: Fines of 10 percent to 30 percent of the invoice value may be imposed on undervalued goods. Contraband goods are confiscated and the importer prosecuted. The owner, the owners agent or an authorized customs clearing agent may execute customs formalities for the entry of goods. General cargo (products other than tea, petroleum products, and tobacco) is permitted eight days of free storage, after which considerable demurrage charges accrue. Goods unclaimed after three months will be sold to recover storage expenses. Egypt is establishing anti-dumping regulations.

2.9 - FOREIGN TRADE LOGISTIC:

International transports: Maritime transports: The main ports are Alexandria, Port Said and Suez. There is a hydrofoil service linking Hurghada with Sharm el-sheikh in Sinai. There are two new ferries operating a daily ferry service. Nile cruises operate between Luxor and Aswan. Air transports: The main international airports are Cairo International 22.5 km. Northeast of the city (CAI) at Heliopolis, Alexandria International and Nuzhah International (Aly) 7km southeast of Mayden Al Tahir (Alexandria), and at Luxor Airport (LXR)is 5.5 km from Luxor. Egypt operates daily flights between and Alexandria, Luxor, Aswan, Abu Simbel, New Valley and Harghada. Besides, Air Sinai operates services on the following routes: Cairo-Tel Aviv, Cairo-El arish, Cairo-St Catherine and Eilat, Cairo-Ras el Nakab, Cairo-Luxor and CairoSharm El Sheikh. Land transports: Railways: The rail network links Sallom on the Libyan border to Alexandria and Cairo and operates along the Nile to Luxor, Aswan and Abu Simbel. There are also links to Port Said and Suez. There are frequent trains between Cairo - Alexandria - Luxor - Aswan.

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Road networks: There are paved roads along Mediterranean and Africa Red Sea coasts. Telecommunications: Automatic telephones are available in the large cities. Telex and telegram services exist in Cairo and at the big hotels.

Distribution system:
Foreign firms can sell directly to Egyptian firms if they are registered to make direct sales. A few foreign firms use free zones or bonded warehouses to store goods, then hire their own employees to sell door-to-door. Most foreign firms resort to Egyptian companies for whole sale and retail distribution. Egyptian law requires that all commercial agents and importers have Egyptian nationality.

2.10 - PRESENT TRADE BARRIER : Registration compulsory for imported cosmetics from April next, DCGI issues guidelines. With the Union Health Ministry making the registration of all imported cosmetics compulsory from April 2011, the Drugs Controller General of India has issued guidelines to be followed by the importers in this regard. The new guidelines issued by the DCGI, who is the appropriate authority for giving permission, follows the notification by the ministry in May effecting amendment in the Drugs & Cosmetics Rules to stipulate mandatory registration of all cosmetics imported. According to the guidelines, one importer can file single application in Form42 for different brands and products by the same company. However, registration fee for one brand has been fixed equal to 250 US dollars each. Brand owner is the manufacturer who can manufacture the product at his own manufacturing site or under contract manufacturing and can provide power of attorney to his authorized agent in India who will be filing import registration application on his behalf, the guidelines said.

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The brand for import registration purpose can be a mother brand, e.g. Brand XYZ is brand name for range of products coming under this brand. This range of products could be skin creams, skin toner, skin moisturiser cream, vanishing cream etc. under each of these products, there could be many variants. For registration purpose, a fee of 250 US dollars should be paid for registration of Brand XYZ but product details as provided in attached checklist must be included in the dossier for each product within the mother brand, the guidelines said.

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Cosmetic products which are imported to India as bulk for repackaging for 100 per cent export to other countries are out of scope of this new regulation and need not require registration. But the details of the products and countries should be intimated to the DCGI office, as per the guidelines. In May this year, the ministry had issued the notification amending the Rule 129 of the D&C Rules, 1945. Rule 129A is about the form and manner of application for registration certificate while Rule 129B says about registration certificate for the import of cosmetics manufactured by one manufacturer. The registration authority will issue the certificate in Form 43 subject to the conditions, as per Rule 129C. The registration is being given for a period of three years.

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2.11 - The Results and Conclusions Report: Egypt is a country where we found people who are very caring about their looks. The climate is such like people have to take care of their skin. Use of cosmetics has their roots from ancient Egypt when people used their own cosmetic ingredients. Cosmetics like, face wash, hair colours, sun screen lotion, hair oil have big market in Egypt. The political factors are not such favourable these days for trade in Egypt, though tradeshows organised there gives scope for companies operated in India to trade with Egypt. Egyptians are not using herbal and ayurvedic cosmetic products, Indian companies like Himalaya and Vicco have great opportunities to explore Egyptian market for herbal products. Himalaya herbal care Pvt. Ltd. has their outlets in Egypt and you may found all range of products available in Egyptian market.

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