Category: Article

Due to the “COVID-19” outbreak that has devastated the world and has recently infected thousands of people; “EGgate” offers you a piece of information about acid fruits’ importance in the face of that virus.

 

It is known that the human body could not automatically produce vitamin C & get it only from external sources. Vitamin C strengthens the immune system by stimulating the body to produce white blood cells that fight the virus and its resulting .infections

so, eating fruits that is rich in vitamin C such as “ Tangerine, Oranges, Lemon & Grapefruit” is essential for better health.

What are sweet potatoes ?

Sweet potatoes are some of the most consumed vegetables around the world, from the shade plant species such as eggplant, and the potato origin goes back to South America, especially the Andes region, as they can have their delicious taste and thin multi-colored veneers ranging from yellow, orange, red, and purple, which vary in color depending on the climate and soil in which they grow.

Sweet potato types

Sweet potatoes have different varieties of flavor, size and shape, but all are similar in nutritional value and can be divided into 3 types:-

Purple color: These potatoes are soft in color and are tasty, and are covered with orange crust and are frequently grown in the United States.

Orange color: One of the sweet potato types found in pink or red crust, along with steel strength.

White color: This type may have a pale copper cortex that tends to be golden or brown, and has more taste of it than other species.

The Uses of sweet potato

Sweet potatoes are vegetables rich in simple carbohydrates and complex carbohydrates, and they are a rich source of nutrients and many vitamins useful to the body, which may be used to prepare a wide range of dishes in many countries around the world.

In China, roasted potatoes are popular, served as a sweet and honey-side, and are also essential in Japanese, Taiwanese and Korean cuisine, in India they are a sacred thing after religious fasting, and in the United States the sweet potato pie is a popular dessert.

Sweet potatoes are also used for purposes other than cooking. In South America, the juice extracted from them is mixed with the juice to prepare the textile dye, as well as serving as animal feed, while researchers are experimenting with the production of potato varieties used in the production of biofuels.

From the production side, sweet potatoes have been growing since 2014, with China being one of the first  producing countries, more than 70 million tons in 2014.

• China 70,000, 526,000
• Nigeria 3,689,696
• Tanzania 3,470,304
• Indonesia 2,386,729
• Uganda 810,000
• Ethiopia 1,782,725
• Mozambique 1568575
• Vietnam 1,358,175
• Angola, 749199
• India 1,132,40

On the continental level, sweet potatoes are produced in Asia by (75%), because of huge production in China, while Africa is second only 20% of world production, and the Americas contribute about 4%, while Europe has received only a small percentage of world production of 0.05%.

The percentage of sweet potato production in the European market is still relatively small, Europe has imported 124,000 tons of sweet potato and even more imports in the past years, with the United States the largest supplier with a share in the European market of 70%, while those exports are destined for both the Netherlands and the United Kingdom.

Exporting Sweet potatoes from Egypt 

Sweet Potatoes are grown in Egypt during April and March and can be grown late in May and June. Egypt may have the advantage of achieving all the conditions of agriculture and irrigation, so that a good crop of sweet potatoes can be produced should be grown in a good, light, salt-free yellow soil. 

The most famous of the Egyptian sweet potato is “Abis, Bioregard, Mabrouka, Puerto Rico, Nancy Hall”.

Egyptian sweet potato has become increasingly popular with the world’s countries, especially the Gulf countries and Russia, many of which go to the European market, as the Export Council for Agricultural crops revealed that sweet potato exports rose to 56 thousand tons during the export season 2018-2019 to reach more than 30 million dollars.

Here is an illustration of Egypt’s exports to the European market in recent years:

• 2013: European imported about 96,000 tons of Egyptian sweet potato
• 2014: exports of sweet potatoes to the European market have reached 10,000 tons
• 2017: the Egyptian export market to the European market is “the Netherlands, the United Kingdom, France, Germany, Belgium”.

At the beginning of 2020, the percentage of sweet potato exports of the “Biorigard” quality rose to more than 11.1 billion dollars compared to last year, as a result of the drop in prices of Egyptian potatoes compared to others in the world market, one box with 6 kilograms of potatoes could be sold at 5.25 euros in the European market. High quality.

We are therefore in “EG Gate”to ensure that our products has all the requirements that are in conformity with European specifications, as we export “sweet potato” from our farmers or use some suppliers, as we have exported it to a number of European countries, led by the Holland, along with some Arab countries.

EG Gate’s Packing & Packaging Producers For Sweet Potato 

• Type: Sweet potatoes.
• Grade: First.
• Color: Red – White.
• Size: 100 to 600 g.
• Fill: “Carton box”.
• Standardization of weight: Starting at 5 kg / at the customer’s request.
• Shipping: 40 ft container of 20:25 tons based on packing.

Egypt’s agriculture exports have shown a noticeable rise during the last few years especially “Egyption onions ”,  as the Egyptian product may be characterized by high quality that made the countries of the world race to get it and thus opening their markets to Egyptian vegetable and fruit products. Onions may grow in most land types such as good yellow, grass-free land and salts, which also have a calcium ratio of 10%.

The onion is cultivated at different times of the year, in the upper face of the countries it is best cultivated from the beginning of October to the end of November, while it is cultivated in the lower face of the countries from mid-November to early January, which may result in different onion sizes.

Onion varieties used in the import and export world vary from:-

• Giza 6: It is cultivated in the early hours in Upper Egypt .
• Giza 20: It is being planted late in lower Egypt .
• Red Giza.
• White Giza.
• Italian red

Egypt’s production of “red-yellow” onions is close to 3 million tons, making it one of the top 10 countries producing onions around the world, with Saudi Arabia heading the first countries importing onions, followed by Russia, Kuwait, Britain, Jordan, and the United Arab Emirates. Egypt’s exports of onions reached 550,000 tons with a value of more than 200 million dollars for 2019.

The red onion is widely imported by the external consumer, especially the Saudi market, which accounts for 70 to 80% of the amount of the red onion exports, while the yellow onions are widely imported by the Russian market.

The second biggest producer in the world resorts to import onions from Egypt

India is the second largest producer and source of onion around the world after China, but bad weather and continued rainfall in most East Asian countries have led to increased demand for onion due to its high quality, price and low cost for local product.

About 2121 tons of Egyptian onions were exported in late 2019, so onion demand increases day after day, which contributes to solving the onion rise crisis there. The Egyptian onion is compatible with the red tone and onion diameter, which ranges from 60mm to 85mm and is compatible with the Indian market.

EG Gate On Top of Egyption Onions Exports

In 2020, “EG Gate” company  began exporting large shipments of Egyption onions to India and Bangladesh, second in terms of the most internationalization products in the foreign market after citrus, given the company’s commitment to the new export duties of onion station and processing centers.

On the other hand, the agricultural quarantine applies the system of following up export products during the stages of agriculture, production, packaging and export, which is a confirmation measure to preserve the reputation of Egyptian agricultural exports.

EG Gate’s Packing & Packaging Producers For Onion Crop

The crop is phased in to ensure that it is in conformity with quality specifications, as the onion crop is placed on the container crop production until the sorting operation is carried out at counting stations, filling stations and centers approved by the agricultural reservation, to export the proper fruit and also according to the size to be exported and special specifications. The sorting role is gradual, with the onions reaching four sizes as follows:-

• Type: Onion
• Sizes:-

• “A big onion” is greater than 6 cm.”
• “4.5 to 6 cm” medium onion”
• “3.5 to 4.5cm” small onion”
• “Less than 3.5 cm” shimmering onion.”

 

• Pack type: : / Meshbag / Baske
• Fill: 5-10-15-20-25-50 kg.
• Weight: As requested by the customer.

Three Ways That Lead To Increasing Egypt’s Exports

Egypt has concentrated its efforts in the last years toward export its wealth, as a result of the return of its export power as before during the last five years, the rate of exports rose from 25 to 55 billion dollar, as a result of its dependance of these factors :-

•  Exporters rely on international quality standards and specifications, making Egyptian products eligible for competition in foreign markets, and the agricultural quarantine checks all the requirements established by each country to grant the shipment the export authority, if these conditions are not met, the export operation is not carried out.
• Not to rely on exporting surplus of domestic production and thus to focus on the industrialization strategy for export, which makes it focus on a range of industries with high export opportunities, the greatest evidence of which is India and Bangladesh’s accession to Egypt’s export markets. As a result of Egypt’s enjoyment of a price advantage compared to its competitors internationally.
• The interest of Egyptian export companies in developing the capabilities and skills necessary for external promotion, thus developing shipping lines and establishing direct shipping lines for a large number of African markets.

 

 

 

Import duties are a paid tax on imports and some exports in a country and may also be known as “customs duties, import tax”, which is geared toward increasing income to the local government, as well as giving a benefit to locally grown or produced goods that are not subject to import duties.

The duties to be paid may vary with the goods imported and the country of origin but account must be taken of the lower cost of domestically produced goods than the imported goods, giving producers the competitive advantage.

From the selection of the goods or service you want to import from abroad on which an import license is obtained, and then an application is made to the exporter to supply your products.

Customs clearance, the last stage at which the goods are subject, may be held by any port in each country in the world to complete the necessary legal procedures, and these laws and regulations vary by country, shipping containers and port. This makes a customs clearance specialist called the “customs intermediary” between the exporter and the importer, which ends all legal transactions and then extracts goods from the port and gives them to the importer.

Custom clearance procedures

Customs clearance is limited to the provision of certain services to goods beyond the state’s borders that the state cannot meet the needs of consumers, and this applies to imports and exports from the state It also imposes a certain price on the goods but, after evaluating them, it also imposes a mandatory amount for customs clearance, but in case they are not paid, there will be late fines.

Customs clearance may be due to the GATT, through which customs regimes within the world are unified without exception and operate in unified systems, which has led to the unification of import and export procedures among most of the world’s countries. The law was also regulated by a World Trade Organization decision “WTO” through a global convention.

The Role of a Customs Brokers:

The person responsible for customs clearance is called “customs Brokers ” a comprehensive survey of shipment of imported and exported goods, ensuring that all entering and exiting is authorized within the country, and is fully aware of everything being exported or imported making it easier to get goods out of the ports 

Here are some of basic rules make the customs clearance process smooth for your shipment :-

• Documents  to be available.
• Monetary insurance
• Authorizations.
• Categories for which clearance is extracted.
• Models.

The presence of customs brokers is one of the most important import and export fundamentals, as it is important to keep up with the latest rule, regulation and taxes, and to bring all necessary documents for the easy of movement of goods to and from the country, so it is difficult to customer to keep up with theses laws and to keep up with their updates on a regular times 

In this vein the customs brokers is responsible for obtaining the necessary document and then submitting them to government agencies for shipment of goods, the preparation of document to prevent delay in arrival of goods, calculating and ensuring the payment of customs duties “import duties” and also tracking the movement of goods arrivals.

The customs broker knowledge of the latest law and regulations has made it positive to help importer and exporter develop strategies on profitable and unprofitable markets. So that the companies trade without worrying about their punishment for breaking laws   

CUSTOMS CLEARANCE DOCUMENTS:

There are also some customs clearance documents that make it easy to complete import and export process and that are divided into :- 

 

• Document for the export of goods are: 

 

• Certificate of origin: It shall be certified by the Embassy.
• Commercial Invoice: It is required to be certified by the Chamber of Commerce.
• Bill of lading.
• Pack statement.
• Certificates for the quality of goods, such as 

1. Health certificates in the case of goods being foodstuffs.
2. Agricultural certificates in case the goods are agricultural materials

 

• Documents for the import of goods (provided by the importer) are:-

 

• Commercial or industrial record.
• Import card.
• Tax Card.
• Customs Card.
• Form (4) incoming funding request: Issued by the transferring bank through which the shipment amounts are to the supplier and the value transferred is written in addition to the type of contract.
• General authorization of the customs intermediary.

 

Given that the Mandarin has different kinds of “Tangerine , clementine ,satsuma” some are confused by the fact that Tangerine  are another name for Mandarin, but in fact, Mandarin versus Tangerine, there are some differences that characterize each other

Mandarine: the main type & the other falls under its categories. The most important are:-

( Tangerine – clementine – satsuma) there is a distinctive description foreach: 

 

– Mandarine

 

•   Smaller in size relative to tangerine.
•   Less sweeter. 
•   Flexible peel.

 

– Tangerine 

 

 

• Typically sour.
• A red or orange color. 
• Contain seeds.

 

 

– Clementine 

 

• It is a subcategory of tangerine.
• Easy to peel .
• More sweeter. 
• Seedless; to be a perfect choice for kids. 

 

– Satsuma 

 

• That category stems from Japan. 
• Seedless. 
• A thin easy peel. 

 

 

 

 

 

 

Onions… belong to the kingdom of plants whose leaves are shaped like tubular, beside its fragrant scent and strong flavor, and may be considered a year_round ancient plant so it is the most used vegetables in the world, where there are at least 175 countries that plant it, We can say that the onion is the most common vegetables among the countries of the world.

TYPES OF ONION: 

 The onion is different in shape, size and color, and these are the most common types:-

• White/sweet onion: Is the most common species of onion and It has white interior and gold exterior color accents as well as his signature flavor
• Red onion: it is the right alternative to the white onion with  purple external cover 
• Scallion : An immature onion, which can be identified with long green leaves.

ONION IN HISTORY:

The Pharaohs sanctity the onion and their name appeared on the walls of the temples and the papyrus, as they put him with the dead, thinking that he helps them breathe, if they come back to life again.

It also gave Egypt a competitive advantage that would make it the top export market for onions, and with high export orders from foreign countries… “EG Gate” company seeks  to meet the needs of the global market and the highest quality.

The Greeks used onion for weather forecasts , if his leaves were numerous and thin, winter was harsh, as was the main medicine for many diseases, and on the other hand, the “Chicago” Indians called him to be similar with force and greatness.

ONIONS IN MEDICINE :

• From a physiotherapy perspective, it has many uses as a treatment for cold and coughs due to its superior ability to adapt to intestinal worms and various viruses.
• In terms of physiotherapy perspective. Onions contain ‘sulfur’ that increase insulin levels in the blood and thereby lower blood sugar levels, as well as many vitamins and antioxidants that strengthen the immune system.
• In research, there are several scientific researches showing how much onion is needed, and researchers at Wisconsin University have found that it can prevent the accumulation of blood platelets that cause cardiovascular disease.

Onions in Import and Export:

 Onion-producing countries:-

China produces about 9,793,000 tons of onions annually, making it the world’s number one, followed by India 5,500, The United States 3,346, Turkey 2,220, Pakistan 1,764, Russia producing 1,758,000 tons of onions, followed by South Korea at 1,750, Japan 1,637′, Egypt’ 1.302′, Spain’ 1,149′ thousand tons.

Onions in Import and Export

Onion consumption increases day after day, as it is the main ingredient in preparing many meals, About 90% of onion is consumed by the original country, as it is the third largest fresh vegetables consumption in the United States of America, and is therefore considered the most heavily traded agricultural product in the world of import and export.

Holland  is the largest exporter of onions with 20.2, followed by India with 18.6, followed by China with 9.5, Egypt exporting 5.5 %percent, Mexico with 5.0%, America 4.8% and Spain 2.4%.

In terms of onion-importing countries, America came in first with 7.4%, followed by Malaysia 6.5%, England 5.2%, UAE 4.4%, Saudi Arabia 4.4%, Japan 4.2%and Germany 3.4%.

The importance of import and export is that they are complementary processes, and they aren’t just companies but also important to individual consumers.  They can benefit from some products or components that are not locally produced but available for online purchase, and help national economies grow and expand continuously.

The importance of importing is therefore :-

1. Adding new products to the market 
2. Cost reduction 
3. Increase 
4. Helps Small and Medium-Sized Enterprises grow and expand through access to larger markets abroad

The importance of exporting is therefore:-

1.  Increase potential sales 
2. Increase profits 
3. Increase profits of medium- and large-scale companies.

 

Guidance & Instructions of Export and import process To be completed

The field of import and export is one of the most important areas of today, as it is the sale or purchase of products between companies outside the country’s borders, and there are some Guidance & Instructions of Export and import process To be completed, the most important of which are:-

1. Ensure the quality of the product by requesting samples and presenting them to the concerned authorities, to be checked and matched with the import conditions and rules, in order to avoid any fees or fines from customs.
2. Make sure the correctness of the company data being deal with it through its Governmental agencies in addition to verifying the validity of its information 
3. The company that you deal with doesn’t Manipulate By quality standards and if you have doubt about its truthfulness you can hire a quality inspection company so that it is not rejected by customs in addition to  the imposition of fines. 
4. The importance of mentioning the source of the origin country such as “Made in Egypt ” in order to not be rejected.
5. Dealing in small quantities to implement quickly and Change immediately, reduce funding costs and improve financial  management.
6.  Ensure that the shipment papers are complete and documented and it is best to contract with a reliable customs clearance company, in order to clear your papers and avoid any fines such as container delay fees.
7.  Good study of the product and the market and full knowledge of customs rules,   and the possibility of relying on one of the companies that provide studies in the framework in order to achieve more success

 

Trade terms used in import and export

 

• Bill of loading 

 

It is a transfer contract between the exporter and the carrier، It     shows the port of shipment, the port of arrival, the means of transport, freight

 

• Airway Bill

 

It is the carrier’s confirmation of receipt and readiness to transport the goods.

 

• Analysis certificate 

 

It is a certificate issued by specialized authorities, and is used with materials that need analysis to know their components and to ascertain their quality.

 

• Brand name 

Are symbols that used to differentiate product from whats they look like, and that mark has a legal protection applied internally and externally   

• Baking list

  Is a document from an exporter in which both (shipping weight,   product specification, name of importer and commercial invoice ). 

• Certificate of surveillance or inspection 

It is a certificate issued by specialized companies in which good are assigned and inspected prior to shipment to confirm the specifications are right 

• Clearance paper 

It is a paper delivered to the captain of the ship, indicating the right to leave after confirming that the ship made its obligation

• Certificate of weight 

It is a document that show the true weight of the commodity that depend on weight such as iron product  

• Free on board a ship 

This term mean that the seller delivered the goods to the shipper at the loading port and does not include the cost of shipping  

• Cost and freight

This term mean that the seller delivered the buyer his goods at the port for arrival and the buyer paid all freight costs  

• Cost freight and insurance(CIF)

It Is Required that the price includes the cost of goods, insurance and shipping costs up to the point of arrival of the goods to the agreed importing country

• Telegraphic transfer

This term means transferring a down payment from the seller, and the rest is paid when viewing the required documents and requirement , and is one of the most preferred methods for the majority of traders, as it is more secure for them.

• Letter of credit

This term mean  how banks and each other interact 

•   Cash against documents

This term mean that paying for documents    

 

 

Import and export licenses vary by international standards depending on the product and country of the product. Such licenses are a document issued by the national government that allows the import or export of any commodity, and they are non-tariff barriers to protect the domestic industry from foreign competition.

These licenses limit the amount of allowed imports,and there are some restrictions on imports as well as on the quantity of goods and services imported from abroad, the license may be required for importers and exporters, depending on the type of product, which is divided into the following :-

Import and export licenses according to product :-

 

•  Medicines : All medicines imported by the FDA must be approved to ensure that they are within legal compliance with food, drugs and cosmetics.
• Agriculture Products: The Ministry of Agriculture organizes a inspection body for both plant and wood products to obtain an export license, but in the case of the export of live animals the veterinarian will fully inspect these animals and then sign an international health certificate to obtain export approval, and in relation to the licenses Import, local regulations of the country to which they are subject must be met.
•  Cars: It requires that some documents be sent to the Traffic Safety Department, which includes a ‘letter bearing the manufacturer’s name and address as well as providing information about the products you manufacture in order to ensure that they comply with the Global Vehicle Safety Regulations, the vehicle identification number’.
• Chemicals: If you reside within the United States, the import and export licenses are specified under the toxic Substances Control Act, administered by the Environmental Protection Agency (EPA), you must provide a positive statement that the shipment is in compliance with all TSCA regulations, and all pesticides must be registered with the agency before they are shipped to the United States.

Do i need an international import and export license

Only the United state does not request a licence to import goods, so you can import any product in full freedom unless  it is a restricted element such as firearms, and to be on the safest side you can consult your importer for all. 

You should make sure that there is a contract in which the importer is responsible for obeying the laws of the importing country and also the rules relating to agriculture, food and medicine as well as knowing the validity period of your import permit and understand all its condition, especially if there are importer product that trespass your country rights.

If your import and export licence are delayed, you can use a global carrier such as “UPS,FedEX”, which this companies act as a customs   intermediary, Shipping companies regularly ship products to different countries, so they can help you with the required documents and all procedures for delivery of products.

How to get import and export licence

To get import and export licence: 

• In order to conduct your import and export business, you must complete all legal procedures, to properly import and export authorized goods.
• First of all, You must extract a tax record and you can be extracted from the tax order of the region where your company is located, and you must apply for your own commercial record.
•  And then apply for import and export licences, you must obtain an importer licence from each country you plan to export to, and these may vary from country to country, so you must use a legal adviser in that country.
• You must also open a current account in a bank and it can be opened in the local currency, dollar or currency you wish to import.

  

 

 

 “Natural Resources” A famous word for importing from Egypt 

It’s easy for Egypt to export its resources to the countries of the world because its unique geographical location, Egypt is a Mediterranean country that connects the north-eastern corner of Africa to the south-western corner of Asia Through the land bridge of the Sinai Peninsula, its land borders with Libya and Sudan are linked, along with its maritime borders with Saudi Arabia, Jordan, Greece, Turkey, and Cyprus,  As well as the natural resources that make you do not hesitate for a second before import from Egypt.

From an economical perspective …Egypt is considered the largest arab country that play an effective role in “international trade” which is ranked 72nd in the most complex economy according to the Economic Complex Index (ECI) for 2017, as Egyptian exports witnessed a noticeable rise in 2019, which rose by 2.7% to reach 36 million pounds.

Oil is the essence of Egypt’s imports:

On the exports side, oil is considered the essence of Egypt’s imports, where Egypt produces 600,000 barrels a day, exporting 155000 barrels of them including ‘crude oil, petroleum gas, refined oil’.  

Italy is one of the main export destinations for Egyption goods with a ratio of 9.4 followed by the United States with 7.1% and India 6.2% Germany, Spain, China and Japan are also the largest exporters of Egyptian oil  after importing crude from Egypt and other products.

of total value of its international exports including the following :-  

• Mineral fuel, including oil:  US$7.2 billion (24.5% of total exports) 
• Plastics: $1.8 billion (6.1%)
• Electrical and equipment machinery : $1.6 billion (5.3%) 
• Precious stones and precious metals: $1.5 billion (5%)
• Fruits and nuts: $1.4 billion (4.8%)
• Fertilizer: $1.4 billion (4.7%)
• Clothing and accessories: $1.1 billion (3.6%)
• Iron and steel: $1 billion (3.6%)
• Vegetables: $911.4 million (3.1%)
• Aluminium: $673.6 million (2.3%) 

By the same token In the same context, Egypt’s exports to the world countries increased last year to a value of $1.8 billion, as Spain occupied the first position with a value of $840.67 million, followed by France with $538.3 million, Meanwhile, the United States of America imported goods from Egypt at a value of 301.5 million dollars. The United Kingdom also imported 221.5 million dollars Egyptian exports to Greece then increased to $387.2 million, followed by Turkey 1.76, Germany ‘610.5’, The Netherlands’ 464.2, and Kenya $316.2 million. 

 40.8% of Egypt’s total exports in 2018 were delivered to Asian countries, while 33.4% were sold to importers in Europe, Goods shipped from Egypt to Africa for 16.2, goods went to North America with a percentage of 6.3, and Latin America received the smallest percentage of 1.4 excluding Mexico.

2019 is a True indicative for the power of importing from Egypt

If you’re merger importer, you will be interested in knowing the source of each commodity that you import from aboard , as well as taking full care of its high quality; this is what Egypt doing especially after the economic recession that has suffered from it in the last years, which was a turning point for its progress in the world of economy

The Egyptian economy is strongly dependent on exports to foreign partners, making it a great opportunity to get a high ranking in the international summit, thus making Egypt a strong example for African countries that suffer from different economic problems.

On the historical background …in 2010 Egypt signed an trade agreement with members of the South American common Market”Mercosur” and According to the agreement, Egypt will be able to export duty-free textiles, fertilizers, agricultural products and auto parts to Argentina, Brazil, Uruguay and Paraguay, where imports reached $5.3 billion in 2016.

In 2018, Egypt exported $29.3 billion worth of products abroad to these countries:

1. Total exports to Italy came in at $2.1 billion. 
2. Total exports to turkey reached $2 billion 
3. The United Arab Emirates imported 1.8 billion dollars from Egypt.
4.  Arab countries came from the first countries importing Egyptian products by as much as 32.5, followed by Western Europe with 27.4 and Eastern European countries with 13.2.

2019 was the biggest sign of Egypt’s strong return to the economy, with total exports to the United States alone rising by 37.5 percent to $1,892 million, nearly $2 billion.