It is reported that Egypt's Ministry of Trade and Industry has reduced the 10 percent import duty on flat steel products to five percent.
The ministry originally imposed the 10 percent import duty on flat products, effective as of February 15 this year, with the aim of stabilizing the local market price following the influx of cheap imports.
SteelOrbis previously reported that the measure in question had been criticized by dissatisfied parties in the market, especially end-users.
On the other hand, the ministry said that it is not considering the imposition of an import tax on rebar. Egypt's producers had asked the government to impose an import duty on rebar to protect the domestic steel market.
The official announcement is not disclosed yet.
Meanwhile, Egypt's Ministry of Trade and Industry is said to be supporting local producers by paying the value added tax and five percent customs duty when a re-roller exports cold rolled coils and sheets processed from imported materials. If the exported merchandise has been processed from local material, the producer will be paid the value added tax.
In addition, if it is declared that the material will be processed into cold rolled coil and sheet from imported hot rolled products, the firms will not be paid the customs duty and value added tax, but rather will be issued a bank guarantee that is to be returned after the material has been processed and re-exported.
Full details of the government incentive in question have yet not been announced.