Samalouti: The chamber has proposals that contribute to a radical solution to the crisis
Bilal: The factories for shoes and leather products operate at 20% of their capacity
The Chamber of Leather Industry of the Federation of Industries called for an urgent meeting with Nevin Jama, Minister of Industry, to solve the crisis of increasing random imports.
The chamber said in a statement that the import threatens to stop 17,600 establishments in the footwear and leather products sector as a result of their inability to compete with imported products that do not conform to standard specifications.
Jamal Al-Samalouti, President of the Chamber of Leather Industry, said that the aim of the meeting with the Minister of Industry is to discuss the crisis of increasing imports and find quick solutions for it to protect the local industry and the consumer, and the chamber has proposals that contribute to solving the crisis from its roots.
Al-Samalouti demanded the inclusion of shoes (alfundi) in the list of items subject to inspection by the Export and Import Control Authority for factories that have a needs card, and at the same time the necessity of tightening control over customs ports.
Tariq Bilal, Vice President of the Chamber of Leather Industry, said that the factories of shoes and leather products are currently operating at 20% of their production capacity due to the increase in imports and the outbreak of the Corona virus, which led to a significant decline in sales and an increase in the inventories of the manufacturers.
Bilal added that all shoes and leather products sold on the sidewalks are smuggled, do not conform to specifications, and harm the consumer, and markets must be monitored to face this phenomenon.
He explained that the Chamber previously submitted a memorandum to the Minister of Industry to stop importing shoes, similar to the decision to stop importing ceramics for a period of 3 months, which came within the framework of the system of measures taken by the Ministry to regulate the import of consumer goods at this stage, which is witnessing the global outbreak of the Corona pandemic.
He stressed the necessity of stopping imports to save the shoe industry and local leather products, especially since Egypt has sufficient production capacity for the local market, provided that the decision is reviewed periodically according to what will happen in the next phase.
Osama Al-Toukhi, a member of the Chamber of Leather Industry’s board of directors and head of the Leather Products Division, revealed that a number of importers resorted to importing footwear production inputs from face, sole and brushes, and collecting them only in Egypt and thus does not achieve any added value.
The Chamber of Leather Industry had demanded in a memorandum to the Minister of Industry a number of solutions to curb smuggling and random import, including the need to tighten control over customs ports while including officials from customs officers in security ambushes on public roads to verify that there are no cases of smuggling.
And it called for a review of exemptions for imports of free zones and Port Said from the requirement of examining consignments imported to them.
She indicated the importance of the customs authorities verifying the validity of the origin data before customs release, limiting the transit trade to tight containers with one closed roof to limit smuggling, and the necessity to oblige the importing companies to attach to the shipping documents a list of actual prices and criminalize the importer who submits false invoices.
In the memorandum, the Chamber stressed the need to follow up on anti-smuggling devices such as the General Administration of Crimes of Public Funds by following up and examining the work of the extractors to verify the authenticity of the documents and customs release documents for the released letters, and a subsequent follow-up procedure on the outlets selling leather products by examining the purchase invoices (retailer – Wholesaler – Importer) to ensure that the offered goods have been released to customs in accordance with the rules governing importation and after payment of customs duties and value added tax on them in order to limit smuggling.
The Chamber of Leather Industry demanded the necessity to oblige the customs ports to estimate the value of imported consignments at the indicative prices set by the Chamber for shoes and leather products.
The article “Leather” requests an urgent meeting with the Minister of Industry to discuss “random import” was written in the Al Borsa newspaper.