Cablegate: Four Egyptian Companies Suspended for Violating Qiz

VZCZCXYZ0003
RR RUEHWEB

DE RUEHEG #2589 3661006
ZNR UUUUU ZZH
R 311006Z DEC 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 1256
INFO RUCPDOC/USDOC WASHDC 0439

UNCLAS CAIRO 002589

SIPDIS

E.O. 12958: N/A
TAGS: ETRD ECON IS EG
SUBJECT: Four Egyptian Companies suspended for Violating QIZ
Regulations

1. Four Egyptian companies were suspended earlier this month by the
Joint Egyptian Q Israeli committee for a period of thee months for
violating Qualifying Industrial Zones regulations. Ali Awni, QIZ
unit chief, stated that three companies, Misr Company for Industrial
and Textile Investments, International Textile House of Egypt, and
Egyptian Company for Dyeing and Finishing (Azghaltex), did not meet
the 10.5 percent Israeli content requirement. The fourth company,
El Nenaiea Company for Industries and Trading, did not present its
exports documents for review by the QIZ unit.

2. Under the rules, companies found to be in violation of the rules
are suspended for three months for the first violation, six and
twelve months for the second and third violations respectively.
Egypt and Israel signed the QIZ agreement in December 2004 to take
advantage of the U.S. government Qualifying Industrial Zone program;
the U.S. waives duties on imports from Egypt containing 10.5 percent
Israeli content. A total of 733 Egyptian companies are currently
registered to export under the program.
Scobey

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