Egypt's Imports of Christmas Gifts Fell 50% in 2019

Egypt's imports of Christmas gifts fell by about 50% in 2019 compared to the same period last year.

The bill for Egypt's imports of gifts and stationery during 2019 amounted to about $ 80 million, of which  Christmas gifts represent $5 million, according to the Stationery Division of the Federation of Egyptian Chambers of Commerce.

The pision attributed the decline in imports to the high cost of customs on luxurious goods including gifts, reaching 60%, in addition to the decline in purchasing power of citizens for unnecessary during the current period, which led to a recession in the gift market.

Non-oil imports to Egypt also decreased during the first quarter of the current fiscal year 2019-2020 by $322.7 million to record about $12.9 billion during the period  from July to September compared to $13.2 billion during the same quarter of last FY.

The prices of Christmas gifts are stable at the same rates as last year. Christmas tree prices start from EGP 50 to EGP 5,000, depending on its size. The price of decorations including bells start from EGP 5 and up to EGP 100 pounds, according to the length and the material used in manufacturing.

Concerning the possibility of manufacturing these products locally, Barakat Safa, a member of the Division’s Board of Directors said that the manufacture of Christmas gifts and all children's toys are easy to manufacture locally, however, procedures and some laws impede this, despite the state's support and encouragement to deepen local manufacturing.

He pointed out that in the case of assembling products inside Egypt, customs calculate production inputs, especially on children's toys, as if they are a fully manufactured abroad. "Customs account for 60%, in addition to 14% Value Added Tax (VAT), which leads to the reluctance of traders to collect locally," Safa added.

He explained that the local grouping is considered one of the labor-intensive industries, calling on the government to reconsider customs and taxes on the inputs of industrial production.