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Egypt imposes export fee on fabric scrap
Dec '15
In response to the demands from textile manufacturers, the Egyptian government has imposed an export fee of LE 3,500 per tonne on fabric scrap, according to Egyptian media reports.

The decision was taken to support the domestic textile industry and to avoid shortage of scrap in the local market, minister of trade and industry Tarek Qabil said while announcing the decision.

A similar previous decision to levy export fee of LE 2,500 per tonne is set to expire by the end of 2015. The Cotton and Textile Industries Holding Company and the Egyptian Textile Export Council Holding Company had requested the Ministry of Trade and Industry to retain the fee.

The Home Textile Export Council had also recommended imposing fee as fabric scrap can be recycled to produce thick yarn for use in the textile industry, particularly by small-scale manufacturers and small and medium enterprises. The Egyptian Businessmen's Association had suggested increasing the fee by 25 per cent.

Fabric scrap export from Egypt has grown in recent years from mere 43 tonnes in 2013 to 93 tonnes in 2014. This year, nearly 300 tonnes of fabric scrap has already been exported, according to the minister. (RKS)

Fibre2Fashion News Desk – India

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