How does consignment-style sell-through work for exporters to Egypt?
Last verified:
Consignment stock means the supplier's goods sit at the seller's premises and the supplier is paid only for what sells — the model German exporters call a Konsignationslager. In Egypt, selling another company's goods for its account counts as commercial agency under Law 120 of 1982, so UltraTeb Market Access uses a sell-through structure: we import the goods in our own name under a documentary collection, pay duty and VAT, store, market and sell them, and the agreement makes your payment due when they sell. You get consignment economics, with documents built the way Egyptian customs, tax and banking work.
What are the facts behind consignment in Egypt?
| Fact | Value | Source | As of |
|---|---|---|---|
| Classic consignment | The exporter keeps title until the goods are sold and is paid only after sale; the exporter carries the risk while goods sit abroad | legacy.export.gov | 2025 |
| Commercial agency in Egypt | Selling on behalf of producers, merchants or distributors — including in one's own name for their account — is agency work reserved to registered commercial agents | goeic.gov.eg | 1982 |
| Customs value | CIF value on the invoice; under-declaring by more than 20% of the tax triggers a fine of half the tax at risk | kadmar.com | 2020 |
| Duty refund on returned stock | Refunded only if goods lacking similar local products are re-exported in kind within 1 year of paying the tax | kadmar.com | 2020 |
| Bank payment routes | The 2022 letter-of-credit-only rule was cancelled on 29 December 2022; documentary collections are allowed again | egypttoday.com | |
| Security over goods | Egypt's Movable Collateral Law 115 of 2015 created an electronic registry for security rights over movable assets, including inventory | eg.andersen.com | 2018 |
| Search demand we measured | 'consignment stock' 3,600 a month and 'consignment agreement template' 1,600 worldwide; 'Konsignationslager' 4,400 a month in Germany, Austria and Switzerland (Google Keyword Planner, UltraTeb measurement) | ads.google.com |
How a specific contract is characterised under Egyptian law is a question for an Egyptian lawyer. Last verified 2026-09-25.
Last verified:
How does classic consignment compare with sell-through in Egypt?
| Question | Classic consignment | Sell-through (UltraTeb Market Access) |
|---|---|---|
| Who owns the goods in Egypt? | You, until sale | We import in our own name under a documentary collection |
| Legal status in Egypt | Treated as commercial agency: registration and agency-law rules apply | A distribution agreement with sale-or-return and sell-through payment terms |
| Who pays duty and VAT? | Someone must — often argued over | We do, on arrival |
| Who pays for storage, marketing and selling? | Usually the seller, from its commission | We do |
| When are you paid? | After the goods sell | When the goods sell, on a monthly statement |
| What about unsold stock? | Returned at your cost | Handled as set in the agreement, planned inside the 1-year customs refund window |
| What can you see? | Whatever the seller reports | Full visibility of your stock and sales |
How does the sell-through model work, step by step?
-
Agree a price per SKU
One transfer price per product = the customs value = the amount you receive for each unit sold.
-
Ship
After EDA registration and the import approval; you upload your documents via CargoX.
-
Documentary collection
Your bank sends the shipping documents; we accept them and clear the goods in our name.
-
We land and store
We pay duty and VAT and store the goods with lot and expiry tracking.
-
We market and sell
To private hospitals, lab chains, clinics and — where it fits — public tenders.
-
Monthly statement
Units sold, stock by lot, and the amount due to you.
-
You are paid for what sold
Private sales on the monthly statement; tender sales once the paying hospital has paid.
What should a consignment or sell-through agreement cover?
- Products and the transfer price per SKU (which must match the customs value).
- Title and risk: when ownership passes and who bears loss or damage.
- Insurance of the stock while it is stored.
- Storage conditions, lot and expiry tracking.
- Reporting: monthly sales and stock, by lot.
- Payment timing and currency.
- Audit rights and physical stock counts.
- Expiry, damaged goods and returns — and who pays return freight.
- Term, exclusivity, and what happens to stock and registrations at the end.
- Governing law and dispute resolution.
What is a Konsignationslager, and is this the same thing?
A Konsignationslager is a consignment warehouse: the supplier's stock sits with the customer or distributor and is invoiced only when withdrawn. The sell-through model gives you the same result — you are paid for what sells — while the goods are imported in the Egyptian partner's name so customs, VAT and bank documents line up.
Why not a classic consignment in Egypt?
Because Egypt's commercial agency law covers anyone who sells for a principal's account, including in its own name (Law 120/1982). A classic consignment brings the agency register, ownership conditions and agency-law consequences into play, and can raise tax questions for the manufacturer.
Is sale-or-return the same as consignment?
Close: under sale-or-return the buyer takes the goods and may return what it cannot sell. The sell-through agreement combines this with payment when the goods sell.
Is my stock protected if the distributor fails?
Ask your lawyer. Egypt has an electronic registry for security over movable assets (Law 115 of 2015), and retention-of-title and security rights generally need to be registered to count against third parties.
“It is an import with a documentary collection, but contractually consignment: we do everything, give full access, and only make money once we sell.” — Mohamed Dabees, founder, UltraTeb
UltraTeb Market Access is a zero-upfront-fee route into Egypt's medical market: UltraTeb registers, imports, markets, stores and sells your product, shares the risk, and pays you when it sells.
What does UltraTeb Market Access carry in a sell-through deal?
-
All the landing costs
Registration, import, duty and VAT, storage — funded by us.
-
The selling
Marketing and sales to private hospitals, lab chains, clinics and tenders.
-
Full visibility
Stock by lot and every sale, visible to you, with a monthly statement.
-
Payment when it sells
You receive the agreed price for every unit sold.
Frequently asked questions
What is consignment stock?
Goods owned by the supplier but held by a distributor or customer; the supplier is paid only for what is sold or withdrawn.
Is consignment legal in Egypt?
Selling goods for another's account is commercial agency under Law 120 of 1982, with registration and ownership conditions. That is why we use a sell-through distribution structure instead.
When exactly am I paid?
For private sales, on the monthly statement of units sold. For public tender sales, once the paying hospital has paid us.
What price do I receive?
The transfer price per SKU agreed in advance — the same value used for customs.
What happens to stock that doesn't sell?
The agreement sets it out. Customs refunds duty on goods re-exported within 1 year, so return decisions are planned inside that year.
Do I pay storage or marketing costs?
No upfront fees: storage, marketing and selling are funded by us.
Can I see my stock?
Yes — full visibility of stock by lot and every sale, plus a monthly statement.
Is there a consignment agreement template?
Our agreement checklist lists every clause to cover; have a lawyer draft the final text for your deal.
Consignment economics, Egyptian paperwork done right.
Zero upfront fees. We import, pay duty and VAT, store, market and sell — you're paid when we sell.