26 July - 1 August 2001
Issue No.544
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Al-Ahram Weekly Online 26 July - 1 August 2001 Issue No.544 |
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Reducing the burden
Egyptian industrialists claim to know the secret to increasing the country's exports. Shaimaa Labib was there when they tried to enlist the support of the Customs Authority
According to industrialists, high tariffs on raw materials and capital goods are hindering the competitiveness of Egyptian exports. Towards increasing exports, the Ministry of Industry and Technological Development last week hosted a meeting attended by industrialists and Customs Authority officials to discuss the assessment of customs duties on production inputs.
"Radical solutions need to be found to the problems stemming from custom procedures that negatively impact on export activities," said Mustafa El- Rifa'i, minister of industry and technological development.
Participants agreed that the high valuation of customs duties on raw materials and capital goods used for manufacturing products for export is one of the main obstacles facing industrialists. Attendees, who included Mohamed El- Ghamrawi, head of the General Authority for Investment (GAFI); Mohamed Abu Sheisha'i, head of the Customs Authority, and a number of Egyptian businessmen and exporters exchanged ideas concerning ways to reduce manufacturers' customs bills.
"A tripartite committee will be established comprising representatives from the Customs Authority, the General Authority for Export and Import Control and the Industry Information Centre, which will represent the Ministry of Industry. This committee will be responsible for settling disputes arising between the Customs Authority and industrialists over duties on raw materials and capital goods which are used to manufacture goods for export," El- Rifa'i said.
Some participants suggested that duties should be assessed on the basis of the purchase invoice of these goods.
But matters concerning customs duties were not the only topics on industrialists' minds. El-Rifa'i announced that he will discuss the details of the Egyptian industry modernisation programme with the Investors Division of the Egyptian Federation of Chambers of Commerce in the next few weeks.
"The programme's costs are estimated at LE112 billion. The European Union (EU) will, under the Egypt-EU Partnership Agreement, provide 6.61 billion euros of this amount in the first and second phases of the implementation of the 10-year programme," he said.
Although the partnership will only come into effect when the agreement is ratified by Egypt, the EU member- states and the EU, the Egyptian government is pressing ahead with its programme. With a budget of LE17.8 billion, the first phase, comprising four years, focuses on upgrading technology in factories and restructuring public industries. Approximately 4,000 industrial entities will be overhauled during this first phase.
Ambitious targets have been set for improving industrial performance. In terms of output, manufacturers will strive to increase this from LE165 billion to LE317 annually by the time the programme ends. Over the next decade industry will aim to bring its annual exports from LE8 billion to LE75.6 billion.
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