1)     Your suggestions to include more items to the attached lists below which will be exempted from custom duties according to the sequence mentioned below;

مقترحاتكم بشأن إضافة أية بنود جمركية للقوائم المرفقة و ذلك لتحرير الجمارك الخاصة بالمنتجات التى سيتم تصديرها وفقاً للجدول التالى

2)     Any non-tariff barriers that hinder our exports to Mercosur Countries like transportation, Quality Certificates, etc.

أية عوائق من شأنها إعاقة عملية التصدير لدول الميركوسور (مثل الشحن ، شهادات الجودة...)

Please review attached list of products, sorted by HS codes, Engineering Sector HS codes are highlighted in yellow, Noting that the 4 lists were divided based on the following criteria:

List 1 (Mercosur List One):    Will receive 100% exemption of custom duties upon signing the trade agreement; including:

§  Current top exported items from Egypt to Mercosur Countries.

§  Current Egyptian products with annual export value over 1 million USD and are being imported at a large scale my Mercosur Countries.

This list represent 83.5% of current Egyptian export to Mercosur Countries

List 2 Mercosur List Two):    Will receive 25% annual custom reduction to reach 0% customs in 4 years (75% year 1, 50% year 2, 25% year3 then 0% year 4); including:

§  Current Egyptian products with exports between US$ 500,000 – 1 million and are being imported at a large scale by Mercosur Countries.

This list represent 10.5 % of current Egyptian export to Mercosur Countries.

List 3 (Mercosur List Three):    Will receive 12.5% gradual exemption over 8 years; including:

§  Egyptian products with exports less than US$ 500,000 and are being imported by Mercosur Countries.

This list represent 1.1 % of  current Egyptian export to Mercosur Countries.

List 4 (Mercosur List Four):    Will receive 10% gradual exemption over 10 years; including all remaining items

 The following step will be working on preparing our suggested negative lists to protect some strategic products and industries for a period of time.

For information on Mercosur Countries, kindly find attached Mercosur Study.