Compliance and Financial Considerations
If you intend to do any of the following in Egypt, please contact Risk Services at firstname.lastname@example.org(link sends e-mail)(link sends e-mail)or 642-5141:
- Hire a local to work for you as an employee
- Purchase or lease office or research space
- Purchase or lease an automobile
- Establish a long-term (over 90 days) or ongoing project
- Conduct a clinical trial
U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS
Foreign activities may trigger many U.S. laws, including:
- Import Controls
- Export Controls
- Tax Reporting
- Foreign Bank Account Reporting
- Country Embargoes and Targeted Sanctions
- Foreign Corrupt Practices Act
- Anti-Boycott Laws
Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730(link is external)(link is external), also known as ISF 10+2.
Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here(link is external)(link is external). Go here(link is external)(link is external) for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Cuba, consult the campus Research Administration Compliance Office(link is external)(link is external) at 642-0120.
Tax Reporting. The University and its employees may be taxed in foreign countries. The tax implications for operating in Egypt may be found at the Internal Revenue Service’s United States-Egypt Income Tax Convention. For further clarification, contact the Controller’s Office at:
- email@example.com(link sends e-mail)(link sends e-mail) or 642-0031 for tax advising and unrelated business income tax coordination, or
- firstname.lastname@example.org(link sends e-mail)(link sends e-mail) or 642-1336 for foreign tax form processing
Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts(link is external)(link is external) (FinCen Report 114(link is external)(link is external)). Those needing to complete the form should contact the Controller’s Office at email@example.com(link sends e-mail)(link sends e-mail) or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.
Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control(link is external)(link is external)(OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations(link is external)(link is external)webpage contains additional information on this topic.
The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Egypt at 35 out of 100 (105th out of 180 countries reviewed).
Anti-Boycott Laws. The U.S. Department of Commerce(link is external)(link is external) is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act(link is external)(link is external) requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.
For other compliance-related issues, refer to UC’s International Compliance(link is external)(link is external) webpage.
ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY
Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at firstname.lastname@example.org(link sends e-mail)(link sends e-mail) or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group(link is external)(link is external) by the Chancellor or the Chancellor’s designee.
Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts. Foreign affiliates or operations must submit to the Real Estate Services Office(link sends e-mail)(link sends e-mail)property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.
AUTHORITIES IN EGYPT ANNOUNCE PLANS TO RESUME DIRECT FLIGHTS BETWEEN CAIRO AND MOSCOW BEGINNING SEPTEMBER 17. OTHER RESTRICTIONS IN PLACE. ALL TRAVELERS ARE REQUIRED TO COMPLETE A MONITORING CARD AND PROVIDE PROOF OF HEALTH INSURANCE TO AUTHORITIES UPON ARRIVAL. ADDITIONALLY, AUTORITIES HAVE REQUIRED THAT ALL TRAVELERS PROVIDE A NEGATIVE PCR TEST CERTIFICATE UPON ARRIVAL, THE TEST MUST BE TAKEN WITHIN 72 HOURS.
EXCERCISE INCREASED CAUTION DUE TO TERRORISM, ESPECIALLY IN THE SINAI PININSULA, THE WESTERN DESERT, AND THE EGYPTIAN BORDER.
Note: this page contains basic risk information. For more details, please contact the Risk Services Office at email@example.com(link sends e-mail)(link sends e-mail)(link sends e-mail)(link sends e-mail)(link sends e-mail).
If you are traveling to Egypt on University-related business, please sign up for the University’s travel insurance program by going here(link is external)(link is external)(link is external)(link is external)(link is external). For more information on the travel insurance program, please go here.
Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic(link is external)(link is external)(link is external)(link is external)(link is external)
Criminal Penalties: Travelers are subject to local laws. If visitors violate local laws, even unknowingly, they may be expelled, arrested, or imprisoned.
- The Egyptian legal system is different from the legal system in the United States, with significantly different standards of evidence and due process.
- Egyptian police and security forces do not require probable cause in order to stop, question, and detain individuals. Failure to carry proper identification, such as a passport, may result in detention and questioning.
- Suspects may be detained without charges or access to immediate legal counsel for months during the investigative stage of a criminal case.
- U.S. citizens have been detained for several days or more in non-criminal cases, including immigration violations.
- Local laws prohibit protesting or demonstrating without a permit.
- Punishments often can be harsher in Egypt for comparable crimes than they are in the United States. Penalties for drug offenses can be particularly severe, including life in prison or the death penalty.
Furthermore, some laws are also prosecutable in the United States, regardless of local law.
Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately.
Egyptian law considers dual nationals to be Egyptian citizens and thus the Egyptian authorities do not automatically notify the U.S. Embassy when a dual national is detained. Family members, friends, and/or traveling companions may notify the ACS Unit at U.S. Embassy Cairo if the arrested U.S. citizen is unable to do so.
LGBTI Travelers:LGBTI individuals face significant social stigma and discrimination in Egypt. Egyptian law does not criminalize same-sex sexual activity, but LGBTI persons and advocacy groups have reported harassment, intimidation, arrests, and other forms of abuse, including by police. There are also reports that authorities have used social media, dating websites, and cell phone apps to entrap persons suspected of being gay or transgender in an act of “debauchery,” which is a criminal offense that carries sentences of up to 10 years. Police have confiscated rainbow flags and sometimes detained their owners.