Egypt Raises Customs Duties to Curb Imports

Egypt has sharply raised customs duties on more than 300 goods, to 60% for many items, to encourage domestic production and curb a ballooning trade deficit, part of a broader government effort to reform the ailing economy, Reuters reported. The finance ministry said in a statement that the tariff increases on 320 categories of goods targeted manufactured products that are also made locally, such as carpets, ceramics and cosmetics. Tariffs on carpets doubled to 60% from 30%. Duties were also raised on goods that were deemed non-essential, including items such as fresh fruit, shampoo and toothbrushes. The finance ministry said the new tariffs would boost customs revenues by six billion Egyptian pounds ($339 million) a year, if imports remained at current volumes. Duties on cosmetics, dairy products, air conditioners, fans, refrigerators, microwave ovens and a host of other goods were increased to 60% from 40%. The ministry said that the increases, which take immediate effect, were in compliance with World Trade Organization standards.