Leather market - Creative Commons via Pixabay/Monica Volpin
CAIRO – 15 June 2017: Prices of leather products are expected to decline following a recent decision to control product exports, as it will prevent smuggling and will eventually lead to more revenues for producers, CEO of Zalat Shoes, Yehia Zalat said Thursday.
Egypt’s economic reform measures, which included floating the local currency and price hikes of production input, caused an increase in leather prices from LE 10 to LE 40 per ounce, Zalat told Egypt Today.
As a result, prices of leather shoes hiked 40 percent, added Zalat, who is also undersecretary of the leather manufacturing chamber at the Federation of Egyptian Industries.
Minister of Industry and Foreign Trade Tarek Kabil issued decree number 879 for the year 2017 earlier this week to tighten regulations of product examination.
Under the new decree, raw leather will not be exported before being examined by the General Organization for Export and Import Control (GOEIC), which should be done upon the request of exporters.
The decree also stipulated the waiver of examination of imported leather industries tools and accessories, which are to be used for manufacturing purposes.
Last month, Kabil approved new export duties on crest leather at rates ranging from LE 5.7 to LE 250 (approximately $0.31 to $13.80).
As per that decree, further export tariffs will be imposed on buffalo leather and cowhide at LE 250, LE 150 on calfskin, LE 15 on sheepskin, LE 5.7 on goatskin and LE 150 on camel leather.