ARAB REPUBLIC OF EGYPT

LAW No. 15 OF 2017

Issuing the Law on Facilitating the Granting of Licenses for Industrial Establishments

قانون بإصدار قانون تيسير منح تراخيص المنشآت الصناعية

Issued 3 May 2017  ·  Published in the Official Gazette, Issue No. 17 bis (d), 3 May 2017  ·  In force from 4 May 2017

Abdel Fattah El-Sisi — President of the Republic

 

The House of Representatives has passed the following Law, which we hereby issue:

Translator’s Note

Unofficial working translation prepared for internal use. The Arabic text published in the Official Gazette is the sole controlling source; where the English and Arabic differ, the Arabic governs.

This renders the Law as originally issued in 2017. It does not incorporate any later amendments, nor the implementing instruments issued under it — for example the Executive Regulation (Ministerial Decree 1082/2017), the licensing-conditions decree (461/2018), or the heavy-industry auction rules (Cabinet Decree 47/2020) — each of which is a separate document held elsewhere in the corpus.

Text in square brackets […] is clarification supplied by the translator. Key Arabic legal terms are given in parentheses on first use. “The Law” refers to the annexed Law; “this Law” follows the usage of the Arabic text within each provision.

Title: within its own chapter headings the enacted Law names itself ⁨قانون تيسير إجراءات منح تراخيص المنشآت الصناعية⁩ — “Law Facilitating the Procedures for Granting Licenses for Industrial Establishments” — whereas the issuing decree uses the shorter form omitting ⁨إجراءات⁩ (“procedures”). Both are in circulation; the heading above uses the shorter form.

 

Issuance Articles  (⁨مواد الإصدار⁩)

Issuance Article 1

The provisions of the accompanying Law shall apply to all industrial establishments and industrial premises (⁨المنشآت والمحال الصناعية⁩), whether inside or outside industrial zones — including Free Zones and Investment Zones — and to the establishments annexed to them referred to in Article (27), without prejudice to the provisions of the Law on Economic Zones of a Special Nature issued by Law No. 83 of 2002, and Law No. 14 of 2012 on the Integrated Development of the Sinai Peninsula.

The provisions of Law No. 453 of 1954 concerning industrial and commercial premises and other premises that are disturbing to comfort, harmful to health, and dangerous, and any provisions set out in any other law that conflict with the regulation contained in the accompanying Law, shall not apply to the establishments and premises referred to in the preceding paragraph.

Issuance Article 2

The provisions of the accompanying Law shall not affect the licenses of industrial establishments and premises that are valid at the time it comes into force. The said establishments and premises shall be obliged to reconcile their status (⁨توفيق أوضاعها⁩) and to fulfil the conditions prescribed under the provisions of the accompanying Law, in accordance with the procedures and within the deadlines specified by the Executive Regulation of the accompanying Law.

Issuance Article 3

The General Authority for Industrial Development (⁨الهيئة العامة للتنمية الصناعية⁩) shall grant temporary operating permits (⁨تصاريح تشغيل مؤقتة⁩) to unlicensed industrial establishments and premises existing at the time the accompanying Law comes into force, for a period of one year from the date it comes into force, so as to enable those establishments and premises to reconcile their status in accordance with its provisions, pursuant to the rules, procedures, and controls determined by a decision of the Minister competent for industry affairs issued on the basis of the accompanying Law. The Minister competent for industry affairs may, upon the proposal of the General Authority for Industrial Development, renew the permits provided for in the preceding paragraph for a further similar period.

Issuance Article 4

The First Chapter of the First Part of Law No. 21 of 1958 on the Organization and Encouragement of Industry (⁨تنظيم الصناعة وتشجيعها⁩) is hereby repealed.

Issuance Article 5

The Executive Regulation of the accompanying Law shall be issued by a decision of the Minister competent for industry affairs within three months from the date it comes into force. Until the Executive Regulation and the decisions implementing the accompanying Law are issued, the regulations and decisions currently in force shall remain valid to the extent they do not conflict with the provisions of the accompanying Law.

Issuance Article 6

This Law shall be published in the Official Gazette and shall come into force from the day following the date of its publication. This Law shall be stamped with the Seal of the State and shall be enforced as one of its laws.

 

The Accompanying Law

Chapter One — General Provisions

Article 1  —  Definitions

In applying the provisions of this Law, the following words and expressions shall have the meanings indicated next to each:

  1. The Industrial Establishment (⁨المنشأة الصناعية⁩): Every establishment, company, or industrial premises, whatever its size, that carries out a physical or chemical transformation of raw material, or performs operations of change upon any product — including assembly, grading/classification (⁨التصنيف⁩), packaging (⁨تعبئة⁩), sorting (⁨فرز⁩), recycling, or other operations — in accordance with the standards and controls issued by the Minister competent for industry affairs.
  2. The Competent Administrative Authority (⁨الجهة الإدارية المختصة⁩): The General Authority for Industrial Development.
  3. The Competent Minister (⁨الوزير المختص⁩): The Minister competent for industry affairs.
  4. The Notification Licensing System (⁨نظام الترخيص بالإخطار⁩): The industrial establishment — carrying out its activity in industries that do not represent a high degree of risk — notifying the Competent Administrative Authority of the operation of the industrial establishment, using the notification form regulated under the provisions of this Law.
  5. The Prior Licensing System (⁨نظام الترخيص المسبق⁩): The industrial establishment — which represents a high degree of risk relating to security, health, safety, or the environment — obtaining prior approval from the Competent Administrative Authority before its establishment, operation, or management.
  6. The Accreditation Offices (⁨مكاتب الاعتماد⁩): The entities licensed by the General Authority for Industrial Development to work in the field of examining all technical matters and documents relating to industrial licenses, which the license applicant may resort to, in order to verify the industrial establishment’s fulfilment of the conditions and procedures legally required and necessary for its establishment or operation, and to grant it an accepted accreditation certificate (⁨شهادة اعتماد مقبولة⁩) for submission to the Competent Administrative Authority.
  7. The Entities Related to the Granting of Industrial Licenses (⁨الجهات ذات الصلة بمنح التراخيص الصناعية⁩): The entities that exercise some of the competences relating to industrial licenses; these entities shall be determined by a decision of the Prime Minister.

Article 2

The commencement by industrial establishments of industrial activity shall be either under the Notification Licensing System or the Prior Licensing System set out in this Law. Industrial establishments may not be established, managed, operated, expanded, have their industrial purpose changed, or have their location changed, except with a license from the Competent Administrative Authority and in accordance with the provisions of this Law and its Executive Regulation, without any need to obtain the approval of any other entity under any other law.

Article 3

A license issued under the provisions of this Law shall be of unlimited duration, except in the cases specified by the Executive Regulation.

Chapter Two — The Notification Licensing System

Article 4

Whoever wishes to establish or manage an industrial establishment — in premises and areas other than those provided for in Articles (8) and (9) of this Law — shall be obliged to notify the Competent Administrative Authority, using the form prepared for that purpose, accompanied by the data and documents specified by the Executive Regulation according to the nature of the activity and the risks it represents. The said Authority shall be obliged, on the same day the notification is submitted, to deliver to the notifier evidence of receipt of that notification, by way of a certified true copy of the notification form stamped with its seal or by any other means specified by the Executive Regulation; this shall be equivalent to a license producing all its effects.

Article 5

The Competent Administrative Authority shall be obliged to inspect (⁨معاينة⁩) the industrial establishment within a period not exceeding ninety days from the date of receiving the notification. If it becomes apparent to the Competent Administrative Authority that the industrial establishment violates the prescribed conditions, it shall grant the notifier a grace period not exceeding one hundred and eighty days, renewable once, to reconcile its status. The maximum limit of the grace period granted for reconciling the status of small and micro industrial enterprises shall be doubled. The Competent Administrative Authority shall issue a decision to close the establishment administratively (⁨غلق المنشأة إدارياً⁩) where the notifier fails to comply with reconciling its status in accordance with the preceding paragraph, after warning it within the period specified by the Executive Regulation.

Article 6

Licensing under the notification system shall not apply in areas where the establishment of an industrial activity is prohibited, or where the establishment of certain types of industrial activities is prohibited, in respect of those activities. These areas shall be determined by a decision of the Competent Minister after the approval of the Council of Ministers.

Article 7

Articles (19) to (21) of the Environment Law issued by Law No. 4 of 1994 shall not apply to industrial establishments subject to the notification licensing system, except in respect of the industrial establishments determined by a decision of the Competent Minister based upon the proposal of the Minister competent for environmental affairs.

Chapter Three — The Prior Licensing System

Article 8

Industrial establishments representing a high degree of risk relating to security, health, safety, or the environment, and listed in the schedule (⁨الجدول⁩) annexed to the Executive Regulation, may not be established, managed, or operated without a prior license from the Competent Administrative Authority.

Article 9

Industrial establishments may not be established, managed, or operated in the geographic areas determined by a decision of the Competent Minister after the approval of the Council of Ministers, without a prior license from the Competent Administrative Authority.

Article 10

The application for obtaining the license shall be submitted to the Competent Administrative Authority accompanied by evidence of payment of the fees and fulfilment of all the conditions for granting licenses, as well as the documents specified by the Executive Regulation. The Competent Administrative Authority shall give its opinion on whether the application fulfils the said documents within a period not exceeding fourteen days from the date of its submission. Where the documents are complete, the Competent Administrative Authority shall decide upon the license application within a period not exceeding thirty days from the date the documents are completed. If the Competent Administrative Authority considers that the documents of the license application are incomplete, it shall notify the license applicant of the documents that must be completed, within a period not exceeding seven days from the date of expiry of the period referred to in the second paragraph; the date of submission of the application shall then be deemed complete [as of the completion of the documents]. The Executive Regulation shall specify the means of notifying the license applicant of the documents required to be completed. The Competent Administrative Authority shall decide upon the application within a period not exceeding fourteen days from the date of receipt of the said documents. If the period specified for deciding the license application expires without a response, the license applicant may resort to the grievances committee (⁨لجنة التظلمات⁩) provided for in Article (37) of this Law. In the event of refusal to grant the license, the decision must be reasoned (⁨مسبباً⁩), and the concerned party shall be notified of it in writing within fourteen days from the date of its issuance.

Article 11

If the industrial establishment does not fulfil some non-essential conditions (⁨الاشتراطات غير الجوهرية⁩) that do not affect its safety or its fitness for operation, the Competent Administrative Authority shall grant the license applicant a temporary license for a period of one year, renewable, and not exceeding three years, pending fulfilment of the remaining conditions.

Chapter Four — Licensing in Industrial Zones

Article 12

By a decision of the Prime Minister, based upon the proposal of the Competent Minister, industrial zones (⁨مناطق صناعية⁩) may be established, the administration of each zone or of several zones being undertaken by a board of directors. A decision of the Competent Minister, based upon the proposal of the Competent Administrative Authority, shall be issued forming the board, determining its competences and its system of operation. The board of directors of the zone may license private-sector companies to establish, develop, manage, or promote those zones, in accordance with the controls set by the Competent Administrative Authority.

Article 13

By way of exception to the provisions of the Prior Licensing System contained in Articles (8), (9), (10), and (11) of this Law, the Competent Administrative Authority may apply the Notification Licensing System to the industries established in these zones, whenever the conditions specified by the Executive Regulation have been observed in their planning and establishment.

Chapter Five — Licensing Conditions

Article 14

A committee to be called the “Licensing Conditions Committee” (⁨لجنة اشتراطات منح التراخيص⁩) shall be established at the Competent Administrative Authority. This committee alone — without others, and without being bound by the rules and systems provided for in any other law — shall undertake the following:

  1. Determining all conditions necessary for obtaining licenses in accordance with the provisions of this Law, including the conditions of civil defence (⁨الدفاع المدني⁩), industrial security (⁨الأمن الصناعي⁩), safety and occupational health (⁨الصحة المهنية⁩), and the environment.
  2. Classifying these conditions according to the degree of risk represented by the industrial activities.
  3. Determining the conditions and codes for buildings (⁨اشتراطات وأكواد المباني⁩) designated for industrial activities.
  4. Determining the non-essential conditions that do not affect the safety of the industrial establishment or its fitness for operation.

The committee may set special conditions suited to the nature of medium, small, and micro enterprises. A decision of the Competent Minister shall be issued with the conditions referred to in the two preceding paragraphs, to be applied — to the exclusion of others — when issuing the license. The committee shall also exercise the other competences specified by the Executive Regulation.

Article 15

The Licensing Conditions Committee shall be formed under the chairmanship of the head of the Competent Administrative Authority or his delegate, and shall include as members a sufficient number of legally accredited specialized experts (⁨المتخصصين المعتمدين قانوناً⁩), and one or more representatives of the Federation of Egyptian Industries (⁨اتحاد الصناعات المصرية⁩). A decision of the Competent Minister shall be issued forming the committee, its system of operation, and the financial treatment of its chairman and members. Representatives of the concerned entities shall be invited to the committee’s meetings so that their opinion may be sought, each in the matter concerning it, without their having a counted vote (⁨صوت معدود⁩) in the deliberations. The committee may, in exercising its competences, seek the assistance of the local and international expertise necessary to become acquainted with the best international practices in this field. The committee shall be obliged to review the conditions necessary for obtaining licenses within a period not exceeding three months from the date the provisions of this Law come into force.

Article 16

All entities concerned with the granting of licenses shall be obliged to provide the committee provided for in Articles (14) and (15) of this Law with the conditions in force prior to the entry into force of the provisions of this Law, and with the decisions related to the granting of licenses for the establishment or management of industrial establishments. The Competent Administrative Authority shall likewise be obliged to make the conditions available to all, in accordance with the means specified by the Executive Regulation.

Chapter Six — Accreditation Offices and License-Extraction Service Companies

Article 17

The license applicant may entrust the examination of the documents relating to the establishment, management, or operation of the industrial establishment, and the determination of the extent of its fulfilment of the necessary conditions and other procedures provided for in this Law, to the accreditation offices licensed for that purpose by the Competent Administrative Authority. The license shall be issued to accreditation offices that possess the expertise necessary to practise this activity, in accordance with the conditions, rules, and procedures issued by a decision of the Competent Minister — including the cases in which they must conclude an annual insurance policy (⁨وثيقة تأمين سنوية⁩) to cover the risks and damages resulting from the activities carried out by these offices, and the bases for determining the consideration for the services they provide. A special register shall be established at the Competent Administrative Authority in which the licensed accreditation offices are entered. The license shall be renewed annually, and the license for accreditation offices shall be for a fee not exceeding twenty thousand pounds, whose categories shall be specified by the Executive Regulation. The same fees prescribed for granting licenses shall apply to the renewal of the license.

Article 18

The accreditation offices shall issue, on their own responsibility, to the license applicant, an accepted accreditation certificate stating the industrial establishment’s fulfilment of all or some of the necessary conditions in accordance with the provisions of the Law, in the manner specified by the Executive Regulation, and shall send a copy thereof to the Competent Administrative Authority. The competent administrative authorities shall not recognize the certificates submitted to them after the lapse of one year from the date of their issuance.

Article 19

The certificate issued by the accreditation offices entered in the register referred to in Article (17) of this Law, concerning the industrial establishment’s fulfilment of the license conditions required by the Law, shall be accepted before the Competent Administrative Authority and before all other administrative authorities.

Article 20

The Competent Administrative Authority may assign the accreditation offices to examine the extent of the continued compliance of the licensed industrial establishments with the conditions, in accordance with the procedures and rules specified by the Executive Regulation, without prejudice to the right of the Competent Administrative Authority to examine those establishments in accordance with the provisions of this Law, in the cases and according to the procedures issued in implementation of the provisions of this Law.

Article 21

The accreditation offices shall, in exercising their work, be bound by the rules of professional liability (⁨المسؤولية المهنية⁩) set by the Executive Regulation of this Law, and in particular:

  1. Compliance with the provisions of the laws and related decisions.
  2. Exercising due diligence (⁨العناية الواجبة⁩) in examination, fulfilment, and accreditation.
  3. Avoidance of conflicts of interest (⁨تعارض المصالح⁩).
  4. Preserving the confidentiality and privacy of the information specific to accreditation applicants.
  5. Compliance with notifying the Competent Administrative Authority of the prices of the services it provides to those dealing with it.

Article 22

The certificate issued by accreditation offices shall be regarded as an official document (⁨محرراً رسمياً⁩) for the purposes of applying the provisions of the Penal Code. The issuance of this certificate contrary to the truth shall entail the entitlement to the insurance value and its disbursement to the beneficiaries thereof. Where gross violations (⁨مخالفات جسيمة⁩) are proven in respect of the issuance of the certificate, the violating office shall be struck off (⁨يشطب⁩) the register for a period not exceeding three years by a decision of the board of directors of the Competent Administrative Authority, all without prejudice to the civil or criminal liability resulting therefrom, as the case may be. In the event of repetition of the gross violation, the striking-off from the register shall be final.

Article 23

Companies for the services of extracting licenses (⁨شركات لخدمات استخراج التراخيص⁩) may be established, their purpose being to directly conduct all the procedures necessary for obtaining licenses for industrial establishments in accordance with the provisions of this Law, as well as directly conducting the procedures for allocating the industrial land necessary for establishing the industrial project. These companies shall act on behalf of the industrial investor in directly conducting all the procedures before the concerned entities for its establishment, management, or operation. A special register shall be established at the Competent Administrative Authority in which these companies are entered, and a decision of the Competent Minister shall be issued with the conditions, rules, and procedures necessary for entry in this register. Where a company violates the conditions of entry, the company’s entry shall be struck off the register for a period not exceeding three years, by a decision issued to that effect by the board of directors of the Competent Administrative Authority; and in the event of repetition of the violation, the striking-off shall be final. The Competent Administrative Authority shall be obliged to make available to these companies all the information relating to the rules and procedures for granting licenses and to the available industrial land, in the manner specified by the Executive Regulation.

Chapter Seven — Miscellaneous Provisions

Article 24

The meaning of medium, small, and micro projects for the purposes of applying the provisions of this Law shall be determined by a decision of the Competent Minister.

Article 25

All concerned entities shall be obliged to provide the Competent Administrative Authority with the decisions determining the areas in which the establishment of industrial activities is prohibited. These entities shall make this data available to the concerned parties, in the manner specified by the Executive Regulation.

Article 26

By a decision of the Competent Minister, the establishment of certain industrial activities, or their expansion, in certain geographic areas may be prohibited, in accordance with the controls and rules specified by the Executive Regulation.

Article 27

The provisions, rules, and procedures of licenses prescribed in this Law shall apply to the warehouses (⁨المخازن⁩), sales outlets (⁨منافذ البيع⁩), and exhibitions (⁨المعارض⁩) annexed to the industrial establishment.

Article 28

No substantial modification (⁨تعديل جوهري⁩) may be made to the licensed activity except by following the procedures prescribed for the licensing system to which the industrial activity is subject, in accordance with the provisions of this Law. The Executive Regulation shall specify the cases in which a modification of the activity is deemed a substantial modification.

Article 29

Assignment (⁨التنازل⁩) of a license subject to the provisions of this Law is permitted, provided that the assignee submits an application to transfer the license to his name, using the form issued by a decision of the Competent Minister, and that the assignment contract — authenticated as to the signatures of both its parties at one of the notary/documentation offices (⁨مكاتب التوثيق⁩) — is attached to the application. The application to transfer the license must be submitted within two months from the date of assignment. In the cases in which the Law requires the availability of certain conditions in the licensee, those conditions must be available in the assignee; and if the license is not transferred within two months from the date of assignment, or if those conditions are not available in the assignee, the Competent Administrative Authority shall have the right to close the industrial establishment or to seize it (⁨ضبطها⁩) by the administrative route.

Article 30

In the event of the death of the licensee, those to whom ownership of the industrial establishment has devolved shall notify the Competent Administrative Authority, within two months from the date of death, of their names and the name of the person acting on their behalf. That latter person shall be responsible for implementing the provisions of this Law and the decisions issued in implementation thereof. They shall take the procedures necessary to transfer the license to them within six months from the date of death; otherwise the industrial establishment may be closed or seized by the administrative route.

Article 31

The employees holding the capacity of judicial control officers (⁨مأموري الضبط القضائي⁩) at the Competent Administrative Authority shall, to the exclusion of others, have the right to establish the violations committed in breach of the provisions of this Law and to take the procedures prescribed by law. A decision of the Minister of Justice, in agreement with the Competent Minister, shall be issued determining these employees, and the Competent Administrative Authority shall issue the controls governing their dealings with industrial establishments and the procedures for examining the violation.

Article 32

Save in the cases provided for in Article (44) of this Law, industrial establishments may not be closed or seized by the administrative route in implementation of the provisions of this Law except by a decision of the Minister competent for industry affairs or his delegate, and in accordance with the controls and procedures specified by the Executive Regulation.

Article 33

Subject to the provision of Article (36) of this Law, the Competent Administrative Authority shall collect a fee of a maximum of twenty thousand pounds on the prior license, and five thousand pounds on the notification of activity. The Executive Regulation shall determine the categories of these fees and the procedures for their collection. The licensee shall pay annual follow-up fees (⁨رسوم متابعة سنوية⁩) of the same category as the fees prescribed for granting the license. The same shall apply to the assignment of the license and the modification of the activity, at the same fees prescribed for granting the license. By a decision of the Competent Minister, after obtaining the opinion of the Federation of Egyptian Industries, the maximum limit of the fees provided for in this Article may be increased by a percentage not exceeding five percent (5%) annually. Small and micro industrial enterprises shall be exempt from half of the fees prescribed in this Article.

Article 34

The following decisions shall be annotated (⁨التأشير⁩) in the Industrial Register (⁨السجل الصناعي⁩):

–  Cancellation of the license of the industrial establishment.

–  Closure of the industrial establishment, or its seizure, or its retention (⁨التحفظ⁩) by the administrative route.

–  Decisions on reconciliation of status issued in accordance with the provisions of this Law.

The Executive Regulation shall specify the procedures for the annotation and its controls, and the procedures for removing the annotation and its controls upon the removal of the causes of the violation.

Article 35

The license of the industrial establishment shall be cancelled in any of the following cases:

  1. If the licensee ceases work at the industrial establishment and has informed the Competent Administrative Authority of that.
  2. If work at the industrial establishment is ceased for a period exceeding two years without an acceptable justification.
  3. If the industrial establishment has been removed.
  4. If a substantial modification is made to the licensed activity without obtaining a license for that in accordance with the provisions of this Law.
  5. If the industrial establishment becomes unfit for operation, or its continued management comes to constitute an imminent danger to health, security, or the environment, or serious harm to health or safety that cannot be remedied.
  6. If the industrial establishment ceases to fulfil the essential conditions (⁨الاشتراطات الجوهرية⁩) and the continuation of its operation would cause serious harm to health, safety, the environment, or security.
  7. If a final judgment (⁨حكم بات⁩) is issued for the final closure of the industrial establishment or its removal.
  8. If it is proven that the concerned party has failed, without a reasonable cause, to establish the industrial establishment, or to commence its operation, expand it, or change its industrial purpose, in breach of the grace period contained in the license.
  9. If the licensee fails to renew the license granted to him within two months from the date of its expiry.

The cancellation of the license of the industrial establishment shall be by a reasoned decision (⁨قرار مسبب⁩) issued by the Competent Administrative Authority. This decision may not be implemented except after the lapse of fourteen days from the date of notifying the concerned party of the reason for cancellation, by registered letter with acknowledgment of receipt (⁨كتاب موصى عليه بعلم الوصول⁩), and the concerned party’s failure to remove the causes of the violation during that period, or to commence taking the procedures specified for him by the Competent Administrative Authority. The party subject to the decision may grieve this decision before the grievances committee provided for in Article (37) of this Law, within two weeks from the date of his notification of the decision.

In the cases of cancellation of the license of the industrial establishment set out in items (4) and (6) of this Article, the cancellation decision shall be deemed as if it had never been (⁨كأن لم يكن⁩) if the concerned party corrects his status within a period not exceeding six months from the date of the issuance of this decision. The Executive Regulation shall specify the procedures for correcting the status in this case.

Chapter Eight — Heavy Industries Licenses

Article 36

In the heavy industries (⁨الصناعات الثقيلة⁩) and other industries determined by a decision of the Council of Ministers, the licenses for their establishment, or for the expansion of existing ones, may be offered (⁨طرح⁩) to investors qualified technically and financially who wish to obtain them, in accordance with the rules, controls, and procedures determined by that decision. In this case, the Council of Ministers may — based on the economic feasibility (⁨الجدوى الاقتصادية⁩) and on the studies presented by the Competent Minister — determine a lump-sum value (⁨قيمة مقطوعة⁩) to be paid in consideration for obtaining the license, in addition to the fees legally prescribed. Where there is competition (⁨التزاحم⁩) among the applicants qualified technically and financially to obtain the said licenses, a comparative evaluation (⁨مفاضلة⁩) shall be conducted among them to determine the most worthy of the offers from the economic standpoint, in light of the study containing the statement of economic feasibility presented by the Competent Minister to the Council of Ministers. The Council of Ministers shall approve the result of that comparative evaluation.

Chapter Nine — Grievance

Article 37

At the Competent Administrative Authority, one or more committees shall be formed to consider grievances (⁨التظلمات⁩) against the decisions issued in application of the provisions of this Law, pursuant to a decision of the Chairman of the Board of Directors of the Competent Administrative Authority. Each committee shall be chaired by one of the Vice-Presidents of the State Council (⁨نواب رئيس مجلس الدولة⁩), delegated by the President of the Council, with the membership of each of:

–  A representative of the General Authority for Industrial Development, chosen by the head of the Authority.

–  A representative of the related administrative authority.

–  A representative of the Federation of Egyptian Industries, chosen by the head of the Federation.

The committee shall hold its meetings at the headquarters of the Competent Administrative Authority. For the validity of the committee’s convening, the attendance of the majority of its members is required, provided that the chairman is among them. The committee’s decisions shall be taken by the majority of those present, and in the event of a tie, the side on which the chairman is shall prevail. The committee may seek the assistance of one or more experts from among the specialists according to the nature of the grievance, without their having a counted vote in the deliberations.

Article 38

The grievance committees established in accordance with the provision of Article (37) of this Law shall be competent to consider all grievances submitted concerning licenses or accreditation offices and relating to the application of the provisions of this Law, and in particular the following:

–  The refusal of the Competent Administrative Authority to receive the documents submitted by the license applicant or the notifier.

–  The grievances relating to a request to complete documents differing from what the Law requires.

–  The lapse of the period specified for deciding the license application without a response.

–  The refusal of the license application.

–  The cancellation of the license or its suspension.

–  The grievances relating to the violations recorded by the judicial control officers.

This committee may, where reasonable justifications exist and for the reasons it deems fit, grant exception from some of the non-essential conditions, and in particular in respect of medium, small, and micro industrial activities. It may grant the grievant a grace period to reconcile his status or correct it, not exceeding one hundred and eighty days, other than the periods prescribed in this Law.

Article 39

The deadline for grieving against a decision of the Competent Administrative Authority shall be within fifteen days from the date of notification of, or knowledge of, it. The grievance shall be decided within the following fifteen days, except in cases of urgency (⁨الاستعجال⁩), where the decision shall be made within seven days from the date of submitting the grievance. The Executive Regulation shall set out the procedures for considering and deciding the grievance, and in all cases the committee’s decisions shall be reasoned. No actions for staying the implementation of such decisions or for their annulment shall be admissible before a grievance has been filed against them with the committee and the period prescribed for deciding the grievance has elapsed. The committee’s decision on the grievance shall be final (⁨نهائياً⁩), and any appeal against the decisions of the grievance committees shall be before the competent Administrative Judiciary Court (⁨محكمة القضاء الإداري المختصة⁩).

Chapter Ten — Penalties

Article 40

Everyone who establishes or manages an industrial establishment subject to the Prior Licensing System without a license, or operates it without a license, shall be punished by imprisonment (⁨الحبس⁩) for a period not exceeding one year and a fine of not less than one hundred thousand pounds and not exceeding five million pounds, or by one of these two penalties, in addition to the closure of the violating industrial establishment.

Article 41

Everyone who establishes or manages an industrial establishment subject to the Notification Licensing System without prior notification to the Competent Administrative Authority, or operates it, shall be punished by a fine of not less than ten thousand pounds and not exceeding two hundred thousand pounds, and the court may order the closure of the establishment. Everyone who establishes or manages an industrial establishment subject to the Notification Licensing System shall be punished by a fine of not less than five thousand pounds and not exceeding one hundred thousand pounds if the notification form contains incorrect data (⁨بيانات غير صحيحة⁩).

Article 42

Everyone who manages an industrial establishment which has been ordered to be closed or removed, or which has been closed, seized, or retained by the administrative route, shall be punished by imprisonment and a fine of not less than two hundred thousand pounds and not exceeding ten million pounds, or by one of these two penalties, and the closure of the violating industrial establishment.

Article 43

The person against whom closure has been ordered may submit an application to the court that issued the judgment, by an order on a petition (⁨بأمر على عريضة⁩), to reopen the establishment in the event of reconciling or correcting its status, in accordance with the procedures for reconciling or correcting the status specified by the Executive Regulation. The concerned parties may likewise submit an application to reopen the industrial establishment to the Competent Administrative Authority if the retention or closure was carried out administratively and the establishment has reconciled or corrected its status in accordance with the procedures for reconciling or correcting its status.

Article 44

In the cases of violations where the continued opening of the industrial establishment entails a serious danger (⁨خطر جسيم⁩) to the environment, health, security, or safety, the violating activity shall be stopped or the establishment closed, as the case may be, and the seals (⁨الأختام⁩) placed upon it. The seizure report (⁨محضر الضبط⁩) shall be presented to the competent judge to consider confirming or cancelling the closure decision within three days from the date of closure or retention. In all cases in which the violating activity is stopped or the establishment is closed administratively, the concerned parties may appeal against the closure decision before the competent Administrative Judiciary Court in accordance with the general rules.

Article 45

In cases other than the violations provided for in Article (44) of this Law, the judicial control officers shall warn the violator to remove the violation within the period specified by the Executive Regulation, and shall prepare a report of the procedures taken. The report shall not be sent to the competent entities except after the expiry of that period, accompanied by the procedures carried out by the violator upon the expiry of the said period.

Article 46

The employee competent to receive the notification-based license application shall be punished, if he abstains — without an acceptable justification — from delivering to the notifier evidence of receipt of the notification, in breach of the text of Article (4), by a fine of not less than five thousand pounds and not exceeding fifty thousand pounds. The breach by a public employee, or by those working at the State’s administrative authorities, of the provisions of this Law shall be deemed a gross breach of the duties of the office (⁨إخلالاً جسيماً بواجبات الوظيفة⁩).

Article 47

A public employee and those working at the State’s administrative authorities shall be punished by a fine of not less than five thousand pounds and not exceeding one hundred thousand pounds if they deliberately (⁨عمداً⁩), and without legal justification, commit any of the following acts:

  1. Preventing or obstructing an industrial establishment licensed under the provisions of this Law from conducting its industrial activity.
  2. Exercising the judicial seizure functions (⁨مهام الضبطية القضائية⁩) over establishments licensed under the provisions of this Law, in breach of its provisions.

If any of these acts occurs due to the negligence or neglect of the public employee or those working at the State’s administrative authorities, the fine shall be reduced, in both its limits, to half.

Article 48

Everyone who deals with the establishments subject to the provisions of this Law in the capacity of an accreditation office, or who issues an accreditation certificate, without being licensed for that by the Competent Administrative Authority, shall be punished by a fine of not less than ten thousand pounds and not exceeding one hundred thousand pounds, without prejudice to any penalty provided for in any other law.

Article 49

The Competent Minister or his delegate may reconcile (⁨التصالح⁩) with the violator in respect of the violations provided for in this Law, if the causes of the violation are removed or he reconciles or corrects his status in accordance with the provisions of this Law. Reconciliation before the filing of the criminal action shall be in consideration of the payment of an amount equal to half of the minimum limit of the fine, and after the filing of the action and before the issuance of a final judgment therein, in consideration of the payment of an amount equal to double the minimum limit of the fine. The criminal action (⁨الدعوى الجنائية⁩) shall be extinguished by the reconciliation.

— End of Law No. 15 of 2017 —