DETERMINATION AND PAYMENT OF

THE SUEZ CANAL DUES

(1) The Suez Canal dues rates determined on the basis of Special Drawing Right's Units (Special Drawing Rights means Special Drawing Right).

(2) Dues calculated on this basis are payable in one of the hard currency declared by the Exchange Control according to rated of currencies in relation, to Special Drawing Rights as declared by the International Monetary Fund.

(3) Following are the acceptable currencies for payment of dues:

The Sterling Pound The U.S. Dollar
The Canadian Dollar The Danish Kroner
The Swedish Kroner The Norwegian Kroner
The Belgian Franc The French Franc
The Italian Lira The Deutsche Mark
The Japanese Yen The Florin (Netherlands Guilder)
The Austrian Schilling The Swiss Franc

(4) Canal dues may be paid in Egyptian pounds in the following conditions:

(a) Vessels under Egyptian flag.

(b) The owner's nationality is Egyptian - Meanwhile he is not subject to any of the investment laws.

(c) If the time charter, is Egyptian, in this case chartering agreements must be introduces.

(5) Accordingly, ship owners, charterers or agents dealing with Suez Canal Authority are requested to include in the Statistical Declaration submitted to the Authority by dues payers a statement of the kind of currency in which dues will be paid.

(6) The Central Bank of Egypt, Cairo, shall furnish Suez Canal Authority, Ismailia, every day with a list of rates of hard currency in relation to Special Drawing Rights according to the bulletin of the International Monetary Fund taking into consideration that the latter does not issue bulletin on Special Drawing Rights on Saturdays and Sundays due to official and weekly holidays, as well as on official holidays of the International Monetary Fund.

Accordingly, rated given in the latest International Monetary Fund bulletin notified to Suez Canal Authority by the Central Bank of Egypt shall be applied. This, consequently calculating dues on Saturday, Sunday, Monday of every week as well as on the International Monetary Fund holidays. Therefore, the basic rule is to apply the latest bulletin of currency rates in relation to Special Drawing Rights Units, issued by the International Monetary Fund and furnished of the Authority by the Central Bank of Egypt.

(7) Transit dues and services related to, have to be paid in any of the hard currency fixed for the payment of dues by the debit of the following accounts:

(a) Accounts for the Suez Canal transit dues.

(b) External non-resident accounts in foreign currency.

(c) Free non-resident accounts in Egyptian Pounds.

(8) Accounts for payment of transit dues-which are permissible for Banks to open.

Banks can open the following accounts in foreign currency for the payment of transit dues and for services related to:

(a) Transit dues accounts:

These accounts are opened in the name of non-resident for owners or charterers of foreign ships or in the name of their consignees in Egypt. They bear no specific quality and are fed by any acceptable hard currency in which dues are payable.

Re-transferring from these accounts abroad at the request of their owners of their agents in Egypt, is possible.

(b) Accounts of advance payments for paying transit dues:

These accounts are opened in the name of Suez Canal Authority and are fed by funds credited in hard currency for paying the Canal transit dues, for the account of non-resident foreign ship owners and charterers.

These accounts are used for payment of transit dues and related services due on foreign vessels belonging to these owners.

It is possible to retransfer any balances of these accounts according to the request of the Suez Canal Authority in the same currency received from abroad to feed them.

(9) Exemption of Canal Dues:

The following vessels May be exempted from Canal dues:

(a) Vessels belonging to the Egyptian Government, on condition that it did not carry any cargo or passenger.

(b) Vessels belonging to United Nations, Multi-National Troops.

(c) Vessels under 300 tons Suez Canal Gross Tonnage (Small Craft) in condition that:

i - She is not carrying any passengers or cargo.

ii - She is not replacing any ship or any small craft subject to pay Canal dues.

(d) Motor boats belonging to Canal Shipping Agents, on condition that she is not carrying passengers.