Chinese-made, Egypt-assembled: Shoe imports to Türkiye soar 12-fold
Footwear imports from Egypt to Türkiye rose more than 12-fold in December 2024, as companies began importing shoes assembled in Egypt using components originally produced in China, according to Berke Icten, chairman of the Footwear Industrialists Association of Türkiye (TASD).
The surge has raised concerns among industry leaders, who warn that manufacturers are exploiting free trade agreements (FTAs) and low-cost labor abroad—particularly in Egypt—to circumvent Türkiye’s customs duties.
With production costs in Türkiye rising sharply in recent years, especially for labor and energy, many companies have shifted their operations abroad. What began in the ready-to-wear clothing sector is now taking hold in the footwear industry, Icten remarked.
“Production in Türkiye has become unmanageable,” Icten told business-focused ekonomigazetesi.com. “Many firms are now relocating to Egypt and exporting assembled products back to Türkiye.”
These exports often involve uppers and soles imported from China, which are assembled in Egypt and then shipped to Türkiye with reduced or no tariffs—despite minimal transformation during production.
The main concern is “origin fraud”—where products are largely manufactured in China but undergo minimal processing in Egypt, just enough to benefit from the Egypt-Türkiye FTA.
“This kind of assembly doesn’t meet international standards for a change in origin,” Icten said. “Yet the products are being imported as if they are Egyptian-made, avoiding full customs duties.”
“For a product to be classified as Egyptian, substantial manufacturing must occur there — not just simple assembly,” Icten explained. “What we are seeing is an abuse of trade rules that undermines local industry and creates unfair competition.”
Under current regulations, footwear imports into Türkiye face customs duties as high as 60% to 70%, depending on reference pricing. Yet companies assembling products in Egypt are able to avoid nearly all of these charges.