Central bank could impose fines on importers who abandon their goods at ports

Importers abandoning their goods at ports could be slapped with fines: The Central Bank of Egypt (CBE) is looking into imposing fines on importers who refuse to move their goods from ports even after receiving the required FX to do so, Al Mal reports, citing sources it says are in the know.

That’s not all: The CBE is also looking into blacklisting the importers who don’t clear their goods from ports — issuing instructions to have their bank accounts monitored, Al Mal added.

Still early stages: The central bank is yet to take any official steps regarding the matter, a government source told Enterprise, adding that each case will be evaluated individually.

Why would an importer not collect their goods? Some importers have declined to receive their goods as they wait for the USD-EGP rate to further depreciate, which will in turn mean a cheaper customs bill — importers can store their goods at local ports for up to a month without paying any fees or fines, according to the current regulations. Meanwhile, some importers of foodstuff have abandoned their imports that have been stuck at ports for some time now while the FX crisis get resolved as a way to avoid paying hefty storage costs and fees, especially knowing that there is a high chance their goods have gone bad and won’t be sellable, our source said.

Remember: The government has cleared some USD2.8 bn worth of goods from the country’s ports thanks to the recent spate of foreign currency injections as of late March. Some remaining USD 1.7 bn of goods have had their paperwork completed and secured the required FX through the banking system, but these goods remain unclaimed by their importers, Prime Minister Moustafa Madbouly said two weeks ago.

And if they remain unclaimed? The goods are set to be confiscated, Madbouly previously said, adding that they will be subject to the laws and regulations of abandoned and unclaimed goods. The goods will then be sold at auctions.

This got importers moving: There has been a noticeable shift in the rate at which importers are collecting their goods since Madbouly unveiled the government’s plan to confiscate neglected goods, our source tells us.