Egypt cancels protection fees on sugar importsStaff writer ▼ | February 13, 2016
Minister of Trade and Industry Tarek Qabil ordered the cancellation of the protection fees imposed by the ministry on white sugar imports in April 2015.
Food rules The Ministry of Trade:
Qabil said the investigations found that it was not necessary to impose protection fees on white sugar imports and decided to refund all temporary fees paid by the importers during the period of investigations.
The decision came a few days after the government decided to raise the customs tariff on raw sugar imports from 2% to 20%, and from 10% to 20% on refined sugar imports, according to a presidential decree issued at the beginning of January.
According to a source in the Ministry of Trade, some companies import cheap raw sugar in big quantities and then refine it in Egypt to sell it at lower prices than the local sugar products. This prompted the ministry to raise the customs on raw sugar imports to avoid the negative consequences on the local sugar industry.
The domestic production of sugar is estimated at about 2.4m tonnes and the consumption is estimated at about 3.1m tonnes per year, with a supply gap of about 700,000 tonnes per year. Last year, the imports amounted to 1.5m tonnes. ■