Wedoany.com Report-Dec.26, Egypt's Ministry of Investment and Foreign Trade has decided to maintain an export duty on scrap and waste of stainless steel alloys under customs tariff heading 7204.21. The Egyptian Customs Authority issued a statement confirming this decision.

The export duty is set at EGP 9,000 per metric tonne (approximately $189.47 per metric tonne). This measure will apply for one year, taking effect the day after the previous ministerial decision expires.

The ministry has specified that the duty does not apply to shipments intended for investment projects located in free zones within Egypt. Such exemptions are limited to quantities approved by the competent authority responsible for investment and free zones.

This policy continues a protective approach toward domestic stainless steel scrap resources. Stainless steel scrap serves as a key raw material for local steel producers, particularly in recycling and remelting processes. By applying the export duty, authorities aim to ensure adequate supply for domestic industries while regulating outbound shipments.

The decision reflects ongoing efforts to support Egypt's industrial base, including steel manufacturing and related downstream sectors. Maintaining sufficient scrap availability helps stabilize input costs for local mills and supports production continuity.

Exemptions for free zone projects recognize the special status of these designated areas, which operate under distinct investment and trade regulations. Free zones attract foreign and domestic investment by offering incentives, and the exemption ensures that approved projects can access necessary materials without additional duty burdens.

The measure aligns with broader economic objectives to strengthen domestic manufacturing capabilities and optimize resource utilization within the country. It also provides a framework for consistent application over the one-year period, giving market participants clarity on trade conditions.

Industry stakeholders, including scrap traders, steel producers, and investors in free zones, can plan accordingly under this renewed policy. The fixed duty rate and clear exemption criteria contribute to predictable trade flows for stainless steel scrap.

This continuation of the export duty demonstrates a balanced approach to managing trade in strategic materials. It supports local industry needs while allowing flexibility for investment-driven projects in designated free zones. The policy is expected to remain in place until the end of the one-year validity period, unless further adjustments are announced.

Overall, the decision reinforces Egypt's commitment to safeguarding essential industrial inputs and fostering a stable environment for both domestic production and targeted foreign investment.