How do I find a consignment distributor for medical products in Egypt?
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Look for a distributor that offers consignment economics in a form Egyptian law accepts. Selling goods for a foreign owner's account counts as commercial agency under Law 120 of 1982, which is reserved to registered agents that are wholly Egyptian-owned (Law 120/1982); the workable version is sell-through, where the distributor imports in its own name — for example under a documentary collection — pays duty and VAT, and pays you when the goods sell. Plan unsold stock inside the 1-year window in which Egyptian customs refunds duty on goods re-exported in kind (Customs Law 207/2020).
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 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 |
| Who can be an agent | Companies on the Commercial Agents Register must be wholly Egyptian-owned; acting as an agent without registration is a criminal offence | goeic.gov.eg | 1982 |
| Agent termination compensation | Compensation on termination or non-renewal of an agency cannot be excluded by contract (Commercial Code Arts. 188–189) | foxwilliams.com | 2025 |
| Documentary collections | Allowed again since the Central Bank of Egypt cancelled the letter-of-credit-only rule on 29 December 2022 | egypttoday.com | |
| Customs value | CIF value on the invoice; declaring a value that cuts customs tax by more than 20% 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 |
| Security over stock | 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 searches a month worldwide; 'Konsignationslager' 4,400 a month in Germany, Austria and Switzerland (Google Keyword Planner, UltraTeb measurement) | ads.google.com |
Not legal advice. The characterisation of any specific contract is for your lawyer.
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What should you check in a consignment distributor in Egypt?
| Check | Why it matters | What to ask for |
|---|---|---|
| EDA importer licence | Only a licensed importer can import medical devices; your company is added to its licence by relationship letter | A copy of the licence and the suppliers listed on it |
| Legal structure | Classic consignment is agency; a sell-through distribution agreement keeps customs, VAT and bank documents consistent | The draft agreement, and who is the importer of record |
| Payment route | Egyptian banks pay imports against the supplier invoice, the customs documents and Form 4 | How, and through which bank, you will be paid |
| Transfer price | The price per SKU should equal the customs value and the amount you receive per unit sold | A price list per SKU in the agreement |
| Stock reporting | You need to see stock by lot and every sale | A sample monthly statement and access to stock data |
| Traceability and vigilance | Importers and distributors must keep lot traceability and a named safety officer | Their vigilance procedure and the safety officer's name |
| Unsold stock and expiry | The duty refund window closes after 1 year; short-dated goods lose value | The return, expiry and write-off terms |
| Sales channels | Private hospitals, labs, clinics and public tenders buy differently | Current customer segments and UPA supplier registration |
Is consignment legal in Egypt?
Consignment is a commercial arrangement, but who sells the goods matters. Egypt's commercial agency law covers anyone who sells for a producer's account, even in their own name, and reserves that work to registered agents that are wholly Egyptian-owned (Law 120/1982). A registered agent also gains compensation rights on termination that cannot be excluded by contract. That is why workable structures are distribution agreements: the Egyptian company imports and resells for its own account, and the contract makes your payment follow the sales.
Who pays duty and VAT on consigned goods?
The importer of record, at clearance. Duty is charged on the CIF value; VAT at 14% — or 5% for medical devices used to provide a service since 29 July 2026 — on the duty-paid value (VATupdate). In our sell-through model we pay both when the goods land.
When are you paid?
As the goods sell, on a monthly statement of units sold. Public tender sales follow the buyer's payment: since 1 July 2025 the requesting hospital pays the supplier directly under a three-party contract with UPA (MoF Circular 94 of 2025), so a tender sale is paid once that hospital has paid.
How do you protect your stock?
Ask for segregated, labelled stock, monthly stock reports by lot, audit rights and physical counts, and insurance of the goods in storage. Ask your lawyer whether a security right should be registered on Egypt's movable-collateral registry (Law 115 of 2015).
Where do you find candidates?
Trade fairs, export-promotion agencies and B2B directories list distributors; run the checks above on every candidate before you ship. Our guide on how to find distributors abroad covers the channels, and our agreement checklist covers the contract.
“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
How does UltraTeb Market Access work as your sell-through distributor?
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One transfer price per SKU
The same value for customs and for what you receive per unit sold.
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Import in our name
Under a documentary collection; we pay duty and VAT on arrival.
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Stock you can see
Lot and expiry tracking, and full visibility of stock and sales.
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Paid when it sells
A monthly statement of what sold and the amount due to you.
Frequently asked questions
Do Egyptian distributors accept consignment stock?
Classic consignment — selling your goods for your account — is commercial agency under Law 120 of 1982, with registration and ownership conditions. A sell-through distribution agreement gives you payment when goods sell while customs, VAT and bank documents follow Egyptian rules. UltraTeb Market Access works this way.
Who owns the goods in Egypt?
In our sell-through model we import the goods in our own name under a documentary collection. The agreement sets out title, risk and when your payment falls due.
When 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 happens to stock that does not sell?
The agreement sets it out. Customs refunds duty on goods re-exported in kind within 1 year of payment (for goods lacking similar local products), so return decisions are planned inside that year.
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, built for Egyptian rules
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