Egypt reimposes Temporary Tariffs on Billet and Rebar for Three Years

Good news for Egypt's integrated steel manufacturers as country's Ministry of Trade and Industry has announced that it will once again impose temporary import fees of 16% on iron billets and 25% on steel rebar for three years.

The decree includes the imposition of 25% fees on rebars used in construction during October 12 to April 11 2020, 21% from April 12 2020 - April 11 2021, and 17% during the period from April 12 2021 - April 11 2022.It also features the imposition of a step-by-step safeguard fee on semi-finished products of iron or billet steel by 16% during April 11 to October 12 2020, 13% during 12 April 2020 to 11 April 2021, and 10% from April 12 2021 - 11 April 2022.

Since the beginning of this year, Egypt's iron industry has been subjected to a legal battle started by integrated steel plants and hot rolled steel manufacturers after the Ministry of Trade and Industry issued a resolution in April, imposing a temporary import tariff of 15% on iron billets and 25% on steel rebar, set for 180 days ending in October.

The ministry's decision was challenged by hot rolled steel manufacturers, who resorted to the administrative court, which overturned the decision. In turn, the factories challenged the verdict, but they were rejected and resorted to the Supreme Administrative Court, which has rejected all pending appeals to bring back a 15% import duty on iron billets. However, the ministry appealed the decision and a higher court has yet to rule.

Despite this ministry said in a statement that its investigation had concluded that a rise in imports was hurting the local industry, thus it re-implemented the tariff, which has taken effect on last Saturday i.e. 14 October 2019.

The crisis in Egypt's domestic steel sector dates back to November 2018 after the ministry received a complaint from local steel manufacturers. It called on the government to implement anti-dumping measures, in the wake of the global oversupply of billets, due to the tariffs imposed by US President Donald Trump on iron and steel products.