Amendment to Public Stores Licensing Regulations

January 10, 2023

Highlights

Decrees no.: 29 to 40/2022 issued by the High Committee for Licensing Public Stores (“The Committee”) directly affiliated to the Ministry of Local Development (the “MLD”) issued a total of 12 decrees aiming to regulate Public Stores Licensing.

Publication date: 7 December 2022

Entry into force date: 8 December 2022

 

Main Provisions

The Committee has issued a series of decrees regulating the operation of public stores in terms of licensing and classification, as follows:

 Decree no. 29/2022 – Amending decree no. 28/ 2022 establishing the licensing centers based in cities governmental bodies affiliate to the New Urban Communities Authority (“NUCA”);
 Decree no. 30/2022 – establishing a committee dedicated for responding to queries;
 Decree no. 31/2022 – licensing fee categories for public stores;
 Decree no. 32/2022 – managers of public stores criteria;
 Decree no. 33/2022 – accreditation offices’ licensing terms and conditions and fees;
 Decree no. 34/2022 – coding and categorizing public stores;
 Decree no. 35/2022 – licensing required documents;
 Decree no. 36/2022 – special requirements to be met by stores serving hookah;
 Decree no. 37/2022 – requirement of obtaining security approvals in connection with specific public stores activities;
 Decree no. 38/2022 – amending decree no. 1/2022 establishing licensing centers in Cairo;
 Decree no. 39/2022 – general conditions; and
 Decree no. 40/2022 – special conditions.  

(Collectively, the “Regulations”).

The Regulations were issued in a bid to implement the Public Stores Law and its executive regulations.

 

Key Provisions

I. Licensing

The Regulations allow the issuance of a temporary license to public stores built on either unlicensed premises or violating the license’s term. Said temporary license shall be valid for 5 (five) years or until the premises’ legalisation date, whichever is sooner, provided that the structural integrity of the premises is proven pursuant to a certified engineering report.

A new license centre has been established whereby increasing the licensing centres from 24 (twenty-four) to 25 (twenty-five). Under the Regulations, a committee has been established to decide on appeals and respond to queries relating to the application of the Law.

II. Classification of Public Stores

In accordance with decree no. 34/2022, activities undertaken by public stores are classified into the following two categories;

  • Activities with low risks, with a total number of (141) activities; and
  • Activities with high risks, with a total number of (175) activities.

Stores that undertake low-risk activities include clothes, various types of foods such as vegetables and fruits (wholesale or retail), electronics, delivery services, car tires and batteries, and more.

On the other hand, stores that undertake high-risk activities include hypermarkets, transportation of goods, loading and unloading, warehouses, and more.

It is worth noting that the Regulations provide that some activities not considered high-risk may be licensed through  notifying the relevant licensing centre on the relevant form only. The said process applies to some activities in various sectors such as food, clothing, furniture, construction and interior, electric and electronics, decoration, craft, delivery services, and others.

III. Security Approvals & Special Requirements

Decree no. 37/2022 provides that certain activities shall obtain security approval from the competent security administration. Such activities include, for example, stores selling used electronics, mobile phones and their accessories, delivery services, car showrooms, supermarkets, hypermarkets, public, private and transportation car garages, and more.

In addition, the Regulations set out specific requirements for stores serving hookah.

It is worth noting that the Committee has issued a recent decree under no. 68/2022, whereby it excludes 47 activities out of 83 listed under decree no. 37/2022 that require security approvals.

IV. Management

Decree no. 32/2022 provides a list of activities requiring a manager’s appointment for the public store. This decree also provides some criteria and conditions to be fulfilled by the managers, including that the manager: (i) must not be under the age of 21; and (ii) has never been convicted of a criminal offence or sentenced to prison for an offence against honour or integrity. It is worth mentioning that warehouses are not listed as activities required to appoint a manager with specific criteria under this decree.

V. General and Special Conditions

Decrees no. 39 and 40/2022 provide general and special conditions applicable on all public stores.

1. General Conditions

The general conditions include several standards to be met by public stores, including;

  1. Specifications regarding the location, grounds, walls and heights, ventilation, lighting, water and sewage, electric power, stairs, and requirements for protection against fire hazards;
  2. cameras and surveillance system; and
  3. organizational and operational matters.

2. Special Conditions

The application of the special conditions varies depending on the activity of the public stores. Special conditions include prohibiting stores undertaking transportation, loading and unloading activities from storing perishable, flammable, or explosive materials.

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