Egypt imposes safeguard duties on imported hot-rolled steel.

The Trade Remedies Department (Ministry of Industry and Trade) has received information that Egypt has issued a decision to apply official safeguard measures against imported hot-rolled flat steel (HRC and/or HRFS) products.

Specifically, the products to which this applies are: Hot-rolled steel sheets (HRC/HRFS), under HS codes: 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.40, 7208.51, 7208.52, 7208.53, 7208.54, 7208.90, 7211.14, 7211.19, 7225.30, 7225.40, 7226.91, 7226.990010. The investigation period is from January 2021 to December 2024. Date investigation commenced: April 22, 2025

According to the Trade Remedies Department, the Egyptian investigating authority concluded that there was a sharp increase in imports causing serious damage to the domestic industry. Imports increased by 50% in 2022 and are expected to continue to rise sharply by 31% in 2024.

Despite increased market demand, the domestic industry's market share (accounting for 100% of production in 2024) decreased by 21% for two consecutive years, 2023-2024. Notably, profits plummeted by as much as 70% in 2024. - Unforeseen developments: The investigating authority believes the increase in imports is due to global steel overcapacity and increased protectionist measures in the US (Section 232), the UK, and the EU, causing trade flows to be diverted to the Egyptian market.

Egypt applies an ad valorem (tax) based on a percentage of the value of goods, combined with a minimum tax rate that gradually decreases over a three-year period as follows: From April 2, 2026 to September 13, 2026: 13.6% and a minimum of US$76/ton. From September 14, 2026 to September 13, 2027: 13.5% and a minimum of US$75/ton. From September 14, 2027 to September 13, 2028: 13.4% and a minimum of US$74/ton.

To respond to the issue and protect legitimate interests, the Trade Remedies Department recommends that associations and manufacturing and exporting businesses review the exclusion list: This measure does not apply to hot-rolled steel sheets with a thickness > 20mm and a width > 1600mm, or steel with a carbon content ≤ 0.02% used for enamel coating technology (ED/IF steel). Businesses need to carefully verify their product specifications to request tax exemptions when processing procedures, if applicable.

Since safeguard duties are gradually reduced in stages, businesses should plan their exports to align with the liberalization roadmap to optimize tax costs. With a minimum duty of up to $76/ton, export costs to Egypt will increase significantly. Businesses need to proactively adjust their selling prices and seek alternative markets or focus on high-quality product lines that are not subject to the duty.

* On the same day, the Trade Remedies Department ( Ministry of Industry and Trade ) also received notification from the Egyptian Safeguards Committee regarding the formal application of global safeguard measures against imported steel billets. Specifically, the product subject to these measures is semi-finished steel products made from iron or non-alloy steel (steel billets) under HS code: 7207. Investigation period: from 2021 to 2024. Initiation date of investigation: September 10, 2025.

In its announcement, the Safeguard Committee stated that there was an increase in imports during the investigation period, specifically that imports of steel billets into Egypt surged by 643% in 2022 and are projected to increase by a further 107% in 2024 compared to 2022.

The increase in imports has caused serious damage to the domestic manufacturing industry, as evidenced by a 99% (2022) and 22% (2024) decrease in domestic sales; a 59% decrease in market share in 2024. Profits of the steel billet manufacturing industry plummeted by 56% in 2024.

The increase in imports is attributed to unforeseen developments. Specifically, the global steel industry is currently experiencing a significant accumulation of excess production capacity and supply exceeding demand. This has led to trade flows being diverted to Egypt, considered one of the least protected markets in the world .

This situation is further exacerbated by the rapid increase in protectionist policies and measures for various steel products. Major steel markets worldwide, such as the United States, the European Union, Vietnam, Pakistan, China, and the United Kingdom, have all been strengthening trade protection measures for steel products, including tariffs, anti-dumping duties, countervailing duties, and safeguard measures. Simultaneously, global trade tensions and import restrictions have exacerbated the oversupply of steel in the international market.

The aforementioned factors have led to a diversion of trade to other countries, including Egypt. Exporters have shifted their focus to exporting the product under investigation (steel billets) instead of finished steel products in order to avoid anti-dumping duties applied to rebar imported into Egypt.

Because steel billets are semi-finished products accounting for approximately 85% of the value of steel bars, and given that the Egyptian market does not impose import duties or protectionist measures on this product, Egypt has become a "safe haven" for excess capacity and export flows globally.

Egypt has announced the application of a mixed tariff (% of value and minimum tax) in three phases (from April 2, 2026 to September 13, 2026) as follows: Phase 2/4/2026 - September 13, 2026: 13.12% and a minimum of US$70/ton. Phase 2/4/2026 - September 13, 2027: 12% and a minimum of US$64/ton. Phase 14/9/2027 - September 13, 2028: 11% and a minimum of US$59/ton.

To respond to this measure, the Trade Remedies Department recommends that relevant parties assess the export situation: Review all steel billet export contracts to Egypt. With a minimum tariff of 59-70 USD/ton, businesses need to recalculate their business efficiency and competitiveness compared to domestic Egyptian steel billets or those from tariff-exempt sources.

Monitoring periodic reviews: Egypt will conduct annual reviews of the measures. Businesses need to maintain contact with their import partners in Egypt to gather information on market conditions, thereby providing evidence to the Trade Remedies Department to recommend that Egypt ease or terminate the measures earlier than scheduled if their industry has recovered.

In the context of many countries implementing safeguard measures on steel billets, businesses should proactively expand into markets with FTAs ​​with Vietnam to benefit from tariff preferences, avoiding over-reliance on a single market.

Source: https://baotintuc.vn/kinh-te/ai-cap-ap-thue-tu-ve-voi-thep-can-nong-nhap-khau-20260422185324586.htm