What a QIZ factory is, and why we only use them
A QIZ factory is an Egyptian factory inside one of the country's Qualifying Industrial Zones that meets the QIZ rules. Its goods can enter the United States duty-free. Not every Egyptian factory qualifies, so we only source from factories that meet QIZ requirements, and every US order we ship qualifies.
| Condition | Requirement |
|---|---|
| Where it is made | A registered facility in one of Egypt's six QIZs: Greater Cairo, Alexandria, Suez Canal, Central Delta, Beni Suef and Al Minya |
| Value added | At least 35% of the product's appraised value when it enters the United States |
| Egyptian content | 11.7% of the value of materials, from the QIZ |
| Israeli content | 10.5% of the cost of materials |
| The remaining 12.8% | From the Egyptian QIZ, Israel or the United States |
What a QIZ is
Qualifying Industrial Zones are designated areas in Egypt created under a trade protocol with the United States and Israel. Goods made there that meet the protocol's content rules enter the United States without paying duty. Egypt has six zones: Greater Cairo, Alexandria, Suez Canal, Central Delta, Beni Suef and Al Minya.
Why not every Egyptian factory qualifies
A factory has to be registered in one of the zones, and what it ships has to meet the content rules. Goods from a factory outside the zones pay the normal US duty. So before you compare prices from Egyptian suppliers, ask which factory will make your order and whether it is a QIZ factory.
Why we only use QIZ factories
It takes the question off the table. You never have to check which factory your order went to, or whether it qualified. Every factory we use meets QIZ requirements, whatever its price or capacity, and the QIZ documentation ships with every US order.
What it means for your landed cost
Most clothing pays a meaningful normal duty when it enters the United States. A QIZ garment enters duty-free, so the saving shows up in your landed cost, not in the FOB price. Compare suppliers on the cost at your warehouse, not the price at the port.
How to check any supplier's QIZ claim
- Ask for the name of the factory that will make your order
- Ask which of the six zones it is in
- Ask for the QIZ documentation that will ship with your goods
- Have your customs broker confirm the treatment for your HS code before the first shipment
The same run can serve the EU
We also require the fabric to be made in Egypt. That keeps a QIZ production run eligible for 0% duty into the EU with a EUR.1 certificate, so one factory and one fabric booking can serve both markets.
Questions
Is every Egyptian factory a QIZ factory?
No. Only factories registered in the designated zones that meet the QIZ rules qualify. We only source from those.
Do QIZ goods pay US duty?
No. Goods that meet the QIZ requirements enter the United States duty-free, according to the U.S. International Trade Administration.
Can I see which factory made my order?
Yes. We name the producing factory on your order, and it appears on the export documents.
Can QIZ goods also go to the EU duty-free?
Yes, when the EU origin rule is met: fabric made in the Pan-Euro-Med zone and the garment sewn there. We require Egyptian-made fabric, so a EUR.1 can be issued.