THE DETERMINANTS OF CUSTOMS DUTIES EVASION IN EGYPT
DOI:
https://doi.org/10.2478/eoik-2025-0001Abstract
Following the Arab Spring in 2011, Egypt implemented policies to
restrict imports to control foreign currency spending, as foreign cur-
rency reserves dwindled. This decline was driven by reduced tourism
revenues and remittances from Egyptians abroad. Among the mea-
sures Egypt adopted were floating the local currency, raising the cus-
toms exchange rate (used to calculate customs duties), and increasing
tariff rates on numerous goods. These actions significantly raised the
cost of imports, potentially incentivizing importers to evade customs
duties.
This study aims to explore the determinants of customs duties eva-
sion in Egypt using a time series econometric model. Key variables
analyzed include tariff rates, customs clearance efficiency, corruption,
trade openness, and non-tariff barriers (NTBs). The analysis covers
the period from 2001 to 2023. Regression analysis and econometric
tests were conducted to validate the results. Findings suggest that cus-
toms clearance processes, tariff policies, corruption, trade openness,
and NTBs significantly influence customs duties evasion in Egypt
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